1. Feedback on road budgets RPF November 2001

2. Contents  Background  Process  Information requested  Information obtained  Issues  Current data  Road forward

3. Background  Resolution at RPF May 2001  Data on budgets be adopted as basis and be expanded for future reports  Funded by Gautrans, Sabita and C&CI  Focused on provincial and national data in this presentation

4. Aims of the project  Provide information on:  Budgets  Selected infrastructure management aspects  Southern African road authorities  Actions taken by road authorities  Performance against budgets.

5. Process followed  Contacted road authorities – chief engineers etc  Slow response – regular communications  Other sources identified  Attempted to paint full picture  Verified with different sources

6. Responses  Positive responses re participation from  9 provinces  NRA  5/6 metros  2/5 toll concessionaires  Data for  8 provinces / NPRA  NRA  2 metros  1 toll concessionaire  SADC – appears positive – needs overall approval

7. Information required  Total budgets for department  Total road authority budgets  Breakdown of road budgets  Budgets for specific items (i.e. bitumen and cement)  Grants and transfers and non-treasury expenditure  Audited figures previous years  Changes to budgets  Quarterly performance against budget  Construction and rehabilitation programmes

8. Information obtained  Sources  Contacts in authorities  Budget speeches  Web-published data  Auditor-General reports  Treasury reports  Problems encountered  Response time  Manpower  Validity of data – only Auditor-General figures are final

9. Issues  Manpower – skills match problem  PFMA (Public Finance Management Act) – public information  More effective and efficient delivery, better value for money, improved public services  Develop capacity 2001/2002  Internal control and audit units  Departmental structures  Availability of information  Budget and management systems  Progress against budget  Discrepancies in road network lengths and budget figures from different sources

10. Example of contracts management – spreadsheet

11. Backlog cost estimates

12. Backlog issues  Estimated at R 23 billion  Basis for calculation of backlog in network  Target level of service  Target network profiles  Aspects included in backlog work  Need similar foundations for estimates to be credible

13. Current information  Budgets  Progress against budgets  Longer term budget trends  Audits  Grants  Planned expenditure  Road networks

14. “Transport” Department Budgets

15. “Roads” section budgets – 2001/2002 ?

16. Transport and Roads % of Provincial Budgets ?

17. Progress against budgets - departmental

18. Progress against budgets (capital) - departmental

19. Progress against budgets (current) - departmental

20. Progress against budgets  Data for the whole department  Capital progress not necessarily shown when funds are allocated and not yet spent  Need to ensure that similar figures are reported

21. Spending on national and provincial roads – Intergovernmental Fiscal review

22. Auditor-General information

23. Grants  Supplementary Allocation grant  Ensure credible provincial budgets and adequate provision for infrastructure and social sectors  Ensure progress in implementing budget and financial management reforms  Provincial Infrastructure grant  Fund provincial infrastructure (roads, schools, health buildings)  Fund reconstruction of 2000 flood damage

24. Grants – 2001/2002

25. Grants progress – 2001/2002

26. Actual expenditure – 1997/98 to 2000/01  Road expenditure 2000/2001- 2,9 % of total provincial expenditure  33% of road expenditure – new and major rehab 1997/1998 to 2000/01  26% of provincial expenditure – routine maintenance 1997/98 to 2000/01

27. Provincial capital expenditure on roads

28. Planned expenditure – 2001/2002  EC – Road maintenance R 69 million  WC – Major improvement projects (2000-2005) R 244 million  Gautrans – maintenance / rehabilitation 263 km in 2001/2002 (R 226 million)  Northern Province – Maintenance and construction (roads and bridges) R 266 million

29. Proposed projects 2001/2002

30. Conclusions  Need for availability of valid information – roads focus  Need similar reporting / calculation mechanisms (backlog, progress etc)  Information is “dynamic” until the Auditor General captures it  Need a team approach

31. Road forward  PFMA effect on availability of budget and progress information  Service delivery measures  2002/03 – measurable objectives, service delivery standards, targets – included in budget submissions – describe how public funds are used  Need for good management systems  Backlog calculations  Standard format for data at regular intervals