1. Sport Infrastructure Grant

2. Pre-2004 there was a national grant for municipal sports infrastructure managed by SRSA This funding was incorporated into the Municipal Infrastructure Grant (MIG) In 2011 Parliament recommended that the P- component of the MIG be ringfenced exclusively for sports and recreation infrastructure SRSA has submitted a proposal to introduce a separate grant for municipal sports infrastructure from 2014/15 Background

3. Outline of the proposal SRSA submitted a grant concept proposal in April 2013, National Treasury commented on the proposal and SRSA submitted a revised and more detailed grant proposal in July 2013 The proposed grant would be worth R1 billion in 2014/15 and would be funded through a shift of funds from the MIG Proposed grant responds to policy objectives in the NDP and National Sport and Recreation Plan with benefits for health and social cohesion Revised proposal shows extensive consultation with other stakeholders (DBE, Lottery, Sports Trust etc.) on possible synergies Projects would be assessed and selected by provinces Would build a range of facilities including: ward facilities, municipal clusters and regional sport hubs Municipalities would be funded for operations and maintenance for 3 years after a facility is constructed (10% of the grant would be used for this)

4. Minister of Finance has announced that infrastructure grants will be reviewed Context for considering the proposal: Review of the local government infrastructure grant system Households Without Access to Services in 2001 then 2011 Local Government Infrastructure Grants 2000-2012 (nominal Rand millions) Are we achieving sufficient impact?

5. Infrastructure grants review Review will be consultative and collaborative (national departments and municipalities will be invited to participate) Data and literature analysis are underway now Extensive consultations and workshops will take place in early 2014 Target is to announce the structure of a revised grant system in October 2014 (MTBPS) Implementation from 2015 Budget

6. Implications for the proposal for a Sports Infrastructure Grant Introduction of new infrastructure grants should be considered in the context of the grants review Timing of any new grant should be aligned with the outcomes of the review –Introducing a new grant in 2014 could undermine the consultation process for the review –The introduction of sector-specific grants like a sports infrastructure grant must be aligned with the broader framework for infrastructure grants emerging from the review (we don’t know yet whether the review will result in more sector-based grants or more grant consolidation). The sports infrastructure grant proposal will therefore be considered as part of the infrastructure grant review (possible implementation in 2015/16) –This also gives SRSA time to work on further improvements to the grant proposal

7. Areas to refine/improve the proposal National Treasury will provide SRSA with written advice on some of the weak points in the proposal submitted, including: Outcomes of the audit of sports infrastructure should inform the grant design More detailed work is needed on how allocations will be determined (e.g. what criteria will be used to evaluate and prioritise proposed projects?) Detail also needed on how operations and maintenance funding will work (e.g. will 10% of the grant be enough? How can we ensure a municipality can pay for it at the end of 3 years if they couldn’t at the start? Further work on proposals such as using facility management committees or roving maintenance teams) What capacity is available in SRSA to manage the grant? If provinces will have a large role in managing the grant, what is their capacity?

8. Other Developments A meeting was recently held with the Department of Mineral Affairs after several attempts to engage with the CEOs of Mining Companies yielded no positive results. The Deputy Minister of Mineral Affairs has since agreed to assist in co-ordinating the Mining companies efforts to contribute to sports development and buy into the vision of the National Sport and Recreation Plan. It has been agreed that the first programme should focus on the provision of Sport infrastructure by Mining companies in Mining towns/areas. Work has already been done on the Infrastucture plan on the proposal to consolidate the MIG Grant into one National Grant for Provision of Sport and recreation facilities, We need to customize this into a proposal targeting the Mining Companies. The Deputy Minister of Mineral Affairs will then approach and lobby these companies with a solid proposal prepared by us.

9. Further Developments The Mandate of the Task Team has now been extended to : include customizing the proposal targeting the Mining Companies. work on a comprehensive National Facilities Plan cited and based on the provisions of the National Sport and Recreation Plan.

10. SRSA/DST COLLABORATION Research, Development and Implementation Programme for the National Sport & Recreation Plan SRSA/DST Competency Area 2: Immovable Asset Management (IAM) Immovable Asset Management plays a key role in the NSRP by ensuring that South African sport and recreation is supported by adequate and well maintained facilities. To realise this vision, SRSA needs access to a facilities database incorporating information management. A National Facilities Audit (Strategic Object 10) is required to assess the ‘fitness for purpose’ and ‘fitness for service.’ For provincial and municipal facilities the Government Immovable Asset Management Act (GIAMA), Act No 19 of 2007 provides a specific framework and guidelines for immovable asset management.

11. SRSA/DST COLLABORATION The CSIR’s core competency resides in its technological and organizational capabilities. Over the years, through research and development activities undertaken in public sector infrastructure delivery and maintenance, the CSIR has developed a range of capabilities in the planning, design, development, operation and preservation of immovable assets. The Immovable Asset Management Programme of the Consulting and Analytical Services (CAS) Unit has capabilities in policy, process and systems development, as well as in the broad area of immovable asset management including strategic planning, guideline development and best practice analysis.

12. SRSA/DST COLLABORATION The capabilities developed through public sector collaborative work, include asset evaluation methodologies, asset preservation, facility management and maintenance strategies, life cycle strategic planning, costing and long term maintenance budgeting and training in performance assessment. The CSIR’s Immovable Asset Management Group will take the lead responsibility to perform the necessary performance audits and the production of a National Facilities Plan. Previous successful projects include the performance audit of government facilities (DoH – healthcare facilities) and military infrastructure (DoD).

13. NEXT STEPS Customising proposal for presentation to mining companies Signing of the business plan between the DG, SRSA and DST To Support the SRSA/DST Research, Development and Implementation Programme for the National Sport & Recreation Plan Further engagements with CSIR on the development of the National Facilities Plan

14. Thank you