1. 1 Free State Public Works, Roads and Transport NCOP Meeting 28 NOVEMBER 2006

2. 2 CONTENTS Bridging the first and the second economy Extended Public Works Program Integrated Sustainable Rural Development Contribution to poverty alleviation and job creation Empowerment through Procurement Procedures Projects currently undertaken Challenges Way forward

3. 3 Bridging the first and the second economy State of the Nation Address State of the Province address Our Budget Speech 2014 Millennium Goals 2010 Intervention EPWP

4. 4 State of the Nation Address “We cannot allow.” that government departments become an obstacle to the achievement of the goal of a better life for all because of insufficient attention to the critical issue of effective and speedy delivery of services.” “Integration of planning and implementation across the government spheres is therefore one of the prime areas of focus in our programme …..” President Thabo Mbeki – State of the Nation Address 2006

5. 5 State of the Province address Creation of 50 000 jobs through EPWP Halving poverty and un-employment Transfer of skills Targeted procurement processes

6. 6 Our Budget Speech Accelerated infrastructure delivery Targeted procurement Transformation of the construction and property industry Nurturing of the incubator strategy Empowerment of youth, women, disabled, etc.

7. 7 ISRDP and Contribution to poverty alleviation and job creation Makwane access road – 27 learnerships and 1800 jobs created – R64 million Road infrastructure Selosesha – R15 million project Trompsburg – Jagersfontein – R78 million Fezile Dabi Projects –Sasolburg Interchange –N1 – Parys: 20 km –N1 – Sasolburg Currently out on tender: 24 km –Vredefort Dome road: 30 km out on tender –Koppies Dam access road 8 km out on tender –Heilbron – Petrus Steyn – Reitz : Tender Closed 3 Nov 06 : First Phase R149 million

8. 8 Rationale for roads upgrading and construction Access to Bio-Fuel plants (Economic corridor) and linking Free State and Vereniging / Gauteng Promotion of Tourism Promotion of Freight Corridors Linkage of North-West and the Eastern Free State Promote mobility, accessibility and future growth Access to the Heritage site

9. 9 Key Highlights in Sep 06 Mid-term Report

10. 10 2006/07 Departmental Budget R1 066 323.00 Roads Admin, Works, Transport, EPWP Traffic

11. 11 2006/07 Budget Issues State of the Budget

12. 12 Actual Monthly Departmental Expenditure and Projected for 2006/07 TOTAL OVER EXPENDITURE = R 261 million Till 20 Nov 06

13. 13 MAIN INDICATORS: Economic Classification

14. 14 Spending Outcomes and budget 06/07

15. 15 Actual Monthly Roads Expenditure till 31 October 2006 and Projected for 2006/07

16. 16 Unbundling of contracts to ensure that all participate despite the CIDB grading limitation. Maintenance and upgrading contracts targeted for small contractors. Learnership contracts: Makwane road, Monontsa Pass in Qwaqwa, Heuweltop in Tsetseng and Route 4 in Tsetseng. The last 3 projects are yet to commence (Total cost for these 3 is R147 million) Empowerment through Procurement Procedures

17. 17 Promotion and nurturing of BEE’s Shortened payment cycle: Pay in 7 days on correct invoice. Appointment of mentors for SMME projects: Engineers or project managers. Approval of sessions and reduction of guarantees. Monthly project meetings and continuous monitoring. Contractors in the incubator programme. Sustainable and continuous projects Targeted procurement

18. 18 Massification of EPWP Various projects have been identified for massification and youth development Palisade fencing projects. Grass cutting and road maintenance Possible waste management projects Property maintenance projects

19. 19 Challenges Ownership and re-determination of roads between provincial and local e.g. through Parys is designated as a street instead of a provincial road. Proclamation to be made. Nature reserves and resorts: Jim Fouche in Oranjeville and Koppies dam nature reserve leased to private sector at not market related price. Department is currently revisiting the processes. CIDB – 845 of the contractors are at the entry level and at grade 9 are only 2

20. 20 Planning & Co-ordination and monitoring not adequate Project Management still lacking Consultants not playing ball. Identify appropriate staff, engineers, project and financial managers Material supplies still not transformed Financial Institutions not always flexible Transformation of the property and construction sectors Challenges (Continue)

21. 21 In Year -Budget Pressures Floods Material supplies Transport Infrastructure Law enforcement Maintenance Accommodation Construction material Accelerated infrastructure delivery 2010 Infrastructure CIDB Taxi recapitalization

22. 22 Interventions and corrective measures Planning procedures Project Management Monitoring Consultants Client departments Appropriate staff for infrastructure delivery Changed planning patterns Fast-track payments Streamline operations Batho Pele: Testing stations and Revenue Authorities

23. 23 Learnerships Motheo & Xhariep

24. 24 Gravel Roads Regraveled in Xhariep Road S 1521 Thaba Nchu

25. 25 Road repair Extensive Blading Process Patch work learnerships Repair and cleaning of rest areas Cleaning of storm water drainage Rehabilitation by milling

26. 26 Bridges Sterkspruit bridge Repair bridge approach and remove debris

27. 27 Makwane access road bridge structure

28. 28 MAKWANE-S1499 before and after

29. 29 MAKWANE: S1500 before

30. 30 MAKWANE: S1500 Construction

31. 31 MAKWANE: S1500 After

32. 32 PARYS - N1

33. 33

34. 34 SELOSHESHA

35. 35 ZASTRON BRIDGE: Before and after

36. 36 BRIDGE OVER THE CALEDON RIVER AT WEPENER

37. 37 FLOOD REPAIR: Bloemfontein-Zastron

38. 38 TROMPSBURG- JAGERSFONTEIN

39. 39 Conditional Grant Spending Business cases Infrastructure Plan Revisions to the maintenance budget to provide for flood damage repair work; Road S708 near LadybrandRoad S 1521 Thaba Nchu

40. 40 WORKS AS AN AGENT FOR CLIENT DEPARTMENTS CLIENT DEPARTMENTS

41. 41 SEDERHOF

42. 42 Clinic Construction

43. 43 Sectoral Issues Works Service Level Agreements with client departments; Payments made to contractors by PWR&T or Client departments Budgets payment as an advance or as claimed by PWR&T Reporting requirements of client or agent. Reconciliation of data with client departments

44. 44 Sectoral Issues Works 65% 102% 35% 47% 30% 21%

45. 45 TOTAL EXPENDITURE DEPARTMENTBUDGETEXPENDITURE% HEALTHR84 849 000R86 897 006102.4% EDUCATIONR117 695 000R76 732 99765.2% ENVIRONMENTAL AFFAIRS R10 000 000R3 483 99334.8% SPORT ARTS & CULTURE R26 000 000R12 257 73747.1% SOCIAL WELFARER24 758 000R5 159 77020.8%

46. 46 HEALTH PROJECTS TOWNPROJECTEXPEND TIMEPROG COMMENTS Bloemfontein Pelonomi hosp - Block E. Upgrade of ICU Temporary ICU to be completed before project can tender Kroonstad Boitumelo hosp - contract 3 - pharmacy, radiology and theatres Block D R3.98m8987 Will be completed by December 2006 Kroonstad Boitumelo hosp - Contract 4: Maternity R 1,96m445 Contractor has requested to complete project with cessions. Project still behind schedule Kroonstad Boitumelo hosp - Contract 7: Mechanical infrastructure R5,44m 6737 Will be completed during June 2007

47. 47 HEALTH PROJECTS TOWNPROJECTEXPEND TIMEPROG COMMENTS Bloemfontein Pelonomi hospital - upgrade Pharmacy block I and Fence Upgrading R 0,92m132 Busy with demolitions. Internal work 50% Kroonstad Boiutmelo hosp - contract 8 Electrical Infrastructure R 6,19m8878 To be completed by end November 2006 Jagersfontein Diamant Hospital Upgrading R 3,47m3312 Expected completion June 2008 Qwa-Qwa E Ross Hospital final phase of upgrading R 10.23m2227 Expected completion December 2009

48. 48 HEALTH PROJECTS TOWNPROJECTEXPEND TIME PRO G COMMENTS Harrismith Thebe hosp final phase ofupgrading R 10,63m27 Expected completion November 2008 Heilbron Heilbron Tokollo hosp final phase of upgrading R 9,24m3824 Expected completion February 2008 Bloemfontein National Hospital - Paliative Care Unit R0, 75m14376 In process to address problems which caused delays Bloemfontein Pelonomi Hospital: Block P New Ortopedic workshop R 1,87m12967 Contractor was delayed by additional requests from client dept. Work is neat and progress fair.

49. 49 HEALTH PROJECTS TOWNPROJECTEXPEND TIMEPROG COMMENTS Dealesville New Community Health Care Center 13395 Contractor a banded site. Legal advise sought. Discussions with SARS Odendaalsrus Thusanong First phase of upgrading - Maternity, Theatre complex and CSSD R 3,68m6632 Progress improved. To be completed August 2007. Virginia Katleho Hospital - phase 1 of upgrade - new maternity ward R 0,57m8896 Will be completed ahead of schedule Thaba Nchu Moroka - MDR Dining Hall R 0,17m1177 Work came to a standstill - cash flow problems. Alternative quotations received for completion of project.

50. 50 HEALTH PROJECTS TOWNPROJECTEXPEND TIME PRO G COMMENTS Bloemfontein Pelonomi hosp - Mankovs Staff accommodation Contract A R 1,36m2515 Initial minor problems being managed by architect Bloemfontein Pelonomi hosp - Mankovs Staff accommodation Contract B R 0,97m2515 Initial minor problems being managed by architect

51. 51 ENVIRONMENTAL AFFAIRS PROJECTS TOWNPROJECTEXPEND TIMEPROG COMMENTS Bloemfontein Philip Sanders Resort First Phase R 0,52m Project started. Expected completion November 2006 Bloemfontein Philip Sanders Resort 2ND Phase R0, 39m Project unbundled in seven projects. Tenders to be called for in November 2006 Gariep DamGariep Dam Phase 2R 0,16m5031 Expected completion September 2007

52. 52 SOCIAL WELFARE PROJECTS TOWNPROJECTEXPEND TIMEPROG COMMENTS Bloemfontein Tshiriletsong Place of Safety R0, 16m Documentation completed. Wait for client confirmation to proceed Welkom One stop service center R0,004m Mine buildings need to be purchased Thabo Mofutsany ana One stop secure care center R 2,46m Documentation completed. Wait for client confirmation to proceed

53. 53 SOCIAL WELFARE PROJECTS TOWNPROJECTEXPEND TIMEPROG COMMENTS Thabo Mofutsanyana Victim Support Center Documentation will be completed 20 Feb 2007 Bloemfontein Monument Place of Safety Secure Care R 2,39m10098 Contractor asked for extension of time until January 2007

54. 54 REVENUE

55. 55 REVENUE BUDGET = R251m PROJECTION = R245m

56. 56 Revenue Classifications Motor licences Sales of goods and services non-capital Fines, penalties and forfeitures Interest, dividends and rent on land Sale of capital assets Financial Transactions in assets and liabilities

57. 57 REVENUE: 6 month target = R125.7m 6 month actual = R118.3m

58. 58 REVENUE CLASSIFICATION CLASSIFICATIONITEMBUDGET ACTUAL 30Sep 06 % Collected MOTOR VEHICLE LICENCES TAX -190,581,000 -84,961,30045% SALE GOODS&SERV PRODUCED BY DEPT DRIVERS LICENCE APPLICATION FEES -8,147,000 -4,430,29754% LEARNER LICENCE APPLICATION FEES -4,000,000 -2,876,59472% CONV DRIVERS LICENCE - CARD TYPE -4,000,000 -2,571,80064% ABNORMAL LOADS LICENCES -3,473,000 -2,409,63569% RENTAL:OFFICE BUILDINGS -8,010,000 -1,540,58419% TESTING ROAD WORTHY FEES -2,000,000 -1,188,02559% RENTAL:PARKING COVERED&OPEN -2,250,000 -1,185,76453% SPECIAL LICENCES NUMBERS -2,000,000 -1,124,88456% DUPLICATE DOCUMENTS LICENCES -1,500,000 -1,097,72173% PUBLIC DRIVERS PERMITS -1,400,000 -879,48363% TEMPORARY SPECIAL PERMIT -999,000 -842,99684% LEARNERS CERTIFICATE -1,300,000 -782,13560% ROAD WORTHY CERTIFICATE -1,000,000 -493,10949% SERV REND: COMMISSION INSURANCE -830,000 -411,37350% MOTOR VEHICLE REGS PERSONAL -800,000 -400,27150% ACTIVITIES ON PUBLIC ROADS FEES -400,000 -386,51297% DRIVERS LICENCE CERTIFICATE -500,000 -176,46035% SALES:TENDER DOCUMENTS -180,000 -168,61994% RENEWAL DRIVERS LICENCES -2,000,000 -155,8678% MOTOR VEHICLE REGIS SPECIAL -400,000 -155,56639%

59. 59 REVENUE: Classification (Continue) CLASSIFICATIONITEMBUDGETACTUAL 30Sep 06 % Collected FINES COURT FINES -11,746,000 -6,324,52154% IMPOUND FEES -1,000,000 -1,075,270108% SALES OF LAND & SUBSOIL ASSETS SALES OF LAND -1,500,000 -1,016,15568% REVENUE: FINANCIAL ASSETS REV:FA:REC OF PREV YEARS' EXP - -649,973 REV:FA:REC:PRV SEC:CON DEPT DEBT - -366,267 REV:FA:CASH SURPLUSES - -78,355 REV:FA:REC:PRIV S:TRANS-RES-WORK - -48,314 REV:FA:STALE CHEQUES - -11,565 REV:FA:UNALLOCATED CREDITS - -361 REC:FA:REC:PRIV SEC:STAFF DEBT - -7

60. 60 THANK YOU