1. Report on Conditional Grants
Province of the
EASTERN CAPE
Department of Roads & Transport
Report on Conditional Grants
4th Quarter
2005/2006 Financial Year
“Quality Service Delivery through Transportation Excellence”

2. Presented by the Hon MEC for Roads and Transport on 05 May 2006
To The
Select Committee on Finance
National Parliament
Cape Town
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

3. Kraai River

4. Presentation outline Purpose of the Conditional Grant managed by
the department in terms of the DORA
2. Expenditure trends on Conditional Grants for the MTEF period 2003/04 – 2005/06
3. Management & monitoring of Conditional Grants
Achievements in 2005/2006 expenditure
5. Challenges faced in management of grants
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

5. Purpose of this Conditional Grant
To accelerate construction and rehabilitation of new and existing Eastern Cape Provincial road infrastructure
Accelerate implementation of the Provincial Growth Development Plan.
The grant require us to focus on the application of labour intensive methods in order to maximise job creation and skills development.
Enhance capacity to deliver infrastructure
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

7. Purpose of this Conditional Grant :Conditional Grant managed by the Department
Provincial Infrastructure Grant
Measurable objectives:-
- Construction and rehabilitation of Provincial roads
- Number of job opportunities created
-Use of local labour and resources
- Number of persons participating in training
programs and learnerships under the EPWP
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

8. Ugie (PGDP flagship)

9. Expenditure Trends CG Provincial Infrastructure Grant
Financial assistance
2003/04
R’000
2004/05
2005/06
Budget
457,128
609,002
675,330
Expenditure
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

10. Expenditure Trends - Roads Infrastructure (Total)
Sub-programme
2003/04
R’000
2004/05
2005/06
Financial Assistance
457,128
609,002
675,330
Total roads spending
1,433,672
1,811,663
1,368,964
% Conditional grant 32 34 49
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

11. Major Achievements 2005/2006 EASTERN CAPE
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

13. Future budget trends:MTEF
2005/06
R’000
2006/07
2007/08
2008/09
Financial Assistance
675,330
742,057
984,943
1,055,321
Total roads budget
1,377,782
1,481,819
1,794,991
1,916,512
% Conditional
grant of
roads budget 49 50 55
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

14. Future budget trends: MTEF
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

15. Sterkspruit opening

16. Management & Monitoring mechanism
Departmental officials attend monthly site progress meetings
In addition the CFO and programme manager conduct random site visits on the progress of the contracts
The Department submits a detailed quarterly report, which captures the full details of the projects
including the allocation for the year, the expenditure for the period in question and outputs
achieved.
Specific reports are submitted on progress with respect to social indicators such as employment,
BEE, local resources etc
Monthly In-Year Monitoring reports are also submitted to the provincial treasury to monitor the
expenditure.
SANRAL(SA National Roads Agency) implements 3 projects on behalf of the department in terms
of a Service Level Agreement monitored by Departmental staff.
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

17. Major Achievements 2005/2006 Kilometers road contracts 427 Km
Total value of contracts R2,7 billion
Expenditure 2005/06 R 675 million
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

18. Labour intensive

19. Major Achievements 2005/2006 Labour Statistics
Males 715
Females 453
Youth ,156
Disabled
Total ,326
Value R37 million
Local resources R108 million
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

20. Challenges
Prevailing Provincial conditions, backlogs, climatic, geological etc.
Capex outweighs maintenance allocation (R841mill) currently capex 57 % of total roads budget (R1,481mill).
Lack of adequate funding for roads, currently normal maintenance only 35% of needs for adequate service delivery.
Improving Internal technical capacity
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

21. Flood damage

22. Challenges Long and resource hungry procurement cycle
Equal quarterly transfers from National Treasury do not match actual project cash flows.
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence

23. Old and new Idutywa

24. We would like to thank you…
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence
We would like to thank you…
“The Moving Link”