Department of Transport

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Department of Transport
Select Committee on Finance Public Hearings on
Division of Revenue Bill 2009/10 3 March 2009
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Contents of presentation

• Additional allocations
• List of additional allocations
  
• MTEF Overview
• Budgets per Programme
• Breakdown of major budgets
• Growth in major capital budgets
• Other budgets and major projects
  
• Conditional Grants
• Bus subsidies
• Gautrain
• Other Grants Roads, overload control rural
  transport
• Public Transport Infrastructure and Systems (PTIS)

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Additional allocations
Details (R000) 2009/10 2010/11 2011/12
SANRAL 70,047 298,928 1,062,807
PTIS SANRAL 6,559 0 0
SARCC 98,177 338,381 818,752
Compensation of employees SARCC 71,357 75,867 78,832
PTIS SARCC 14,758 0 0
Bus operations and fuel costs 483,094 624,289 720,163
PTIS Grants to Local Government 93,177 325,275 416,638
Gautrain Rapid Rail Link 325,480 23,134 0
Taxi operations 200,000 100,000 50,000
Railway Safety Regulator 3,000 5,000 5,000
Compensation of employees 5,401 5,095 5,271
Capital 1,854 3,572 4,576
Reduction in transfers to Departmental Agencies (1,103) (683) (722)
Efficiency saving (18,337) (19,099) (6,450)
Reduction in goods and services (5 per year) (30,609) (29,821) (31,284)
Total 1,322,855 1,749,938 3,123,583
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Budgets per Programme
Table 33.1 Transport R thousand 2008/09 2009/10 2010/11 2011/12
Table 33.1 Transport R thousand Adjusted Appropri-ation Medium-term estimates Medium-term estimates Medium-term estimates
Table 33.1 Transport R thousand Adjusted Appropri-ation MTEF Baseline MTEF Baseline MTEF Baseline
1. Administration 245,165 231,023 230,753 235,291
2. Transport Policy and Economic Regulation 47,211 51,592 52,083 54,766
3. Transport Regulation and Accident and Incident Investigation 432,563 195,580 207,997 224,190
4. Integrated Planning and Inter-sphere Co-ordination 8,767,012 8,855,424 11,908,301 13,444,044
5. Transport Logistics and Corridor Development 35,076 31,809 38,992 40,288
6. Public Transport 12,277,229 14,191,689 12,953,416 13,829,382
7. Public Entity Oversight and Border Operations and Control 2,688,584 177,712 88,755 92,980
Total 24,492,840 23,734,829 25,480,297 27,920,941
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Breakdown of major budgets
Details R000 2008/09 2009/10 2010/11 2011/12
SARCC 4,917,290 6,567,635 7,688,206 8,607,979
SARCC Shosholoza Meyl 500,000 450,000 400,000 424,000
Bus subsidies 2,984,131 3,531,909 3,863,033 4,153,232
SANRAL 4,072,974 5,594,986 6,964,501 8,128,314
Taxi 571,567 751,561 624,409 605,303
PTIS (2010 Soccer World Cup) 3,480,000 3,089,494 4,789,775 5,149,008
Gautrain 3,265,993 2,832,691 340,660 0
Disaster Fund Grant - Provincial roads 1,035,473 0 0 0
RAF 2,500,000 0 0 0
Other 1,165,412 916,553 809,713 853,105
Total 24,492,840 23,734,829 25,480,297 27,920,941
Growth 48.05 -3.09 7.35 9.58
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Breakdown of major budgets (Continued excl.
once off allocations in 08/09)
R000
Gautrain
PTIS Grant
2009/10
7,017,635
3,531,909
5,594,986
3,089,494
2,832,691

• Allocations for rail operations and capital
  remain the largest single budget item.

• The budget for road infrastructure overtook that
  of bus subsidies from 2007/08 onwards.

• Allocations for infrastructure from the Public
  Transport Infrastructure and Systems Grant was
  introduced in 2005/06 at R241,7m, growing to
  R3,1bn in 2009/10.

• The National contribution to the Gautrain Rapid
  Rail Link was introduced in 2006/07 at R3,241Bn,
  and declines to zero in 2011/12

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Growth in major capital budgets
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Breakdown of other budgets and major projects
Details R000 200910 2010/11 2011/12
Compensation of Employees 212,798 208,867 221,272
P1 October Month World Remembrance Day 26,362 36,575 37,515
P1 Conferences (AFI-RAN) 3,800 3,800 3,800
P1 Arrive Alive 14,250 0 0
P1 NLTIS, VPN, ECM, Recruitment 15,152 15,580 16,144
P1 Security, Skills development 8,740 8,740 8,740
P1 Centres of Development 8,178 8,669 9,189
P1 Comms BEE, events, exhibitions, web audio visual, branding 10,925 10,925 10,925
P1 Property management 14,884 16,372 17,356
P1 Other 45,236 49,166 45,897
P2 Transport Policy, Research and Economic Regulation 15,806 16,361 17,341
P2 Rail economic regulation 11,382 11,623 11,893
P3 eNaTIS 3,682 7,419 11,598
P3 Special Investigating Unit 21,235 22,439 23,785
P3 Rail Economic Regulator 4,257 4,498 4,768
P3 ICAO and IMO offices 7,365 7,785 8,251
P3 Watch Keeping services 27,109 28,644 30,363
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Breakdown of other budgets and major projects
(Continued)
Details R000 200910 2010/11 2011/12
P3 Oil Pollution prevention services 48,805 51,572 54,666
P3 Maritime Security Coordination Centre 6,559 6,930 7,346
P3 Commissioner of Civil Aviation 4,742 5,011 5,312
P3 Maritime Rescue Coordination Centre (Transfer payment) 5,236 5,533 5,865
P3 International membership fees 5,114 5,420 5,745
P3 Road Transport Regulation projects 20,800 21,980 23,299
P3 Other and Administration 5,592 5,876 6,229
P4 Transport planning and infrastructure projects 12,096 12,371 13,164
P4 Rural transport and NMT projects 52,293 55,231 58,520
P4 Road infrastructure planning 2,829 2,449 5,252
P4 Sani Pass and Overload Control 44,416 48,688 52,399
P4 2010 SWC Monitoring and Evaluation 23,750 0 0
P4 Other and Administration 4,389 4,619 4,897
P5 Transport Logistics and Corridor Development 19,475 26,593 27,151
P6 Bus contract model 4,750 0 0
P6 Project Implementation 2010 and beyond 23,750 7,600 7,600
P6 Other and Administration 11,092 11,501 12,191
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Breakdown of other budgets and major projects
(Continued)
Details R000 2008/09 2009/10 2010/11
P7 Transfers to RTMC 83,603 0 0
P7 Transfers to RSR 37,260 35,634 37,475
P7 Transfers to Ports Economic Regulator 13,603 8,832 9,361
P7 Transfers to SAMSA 8,896 9,402 9,966
P7 Transfers to SACAA 7,781 8,223 8,716
P7 Performance Management System 950 950 1,007
P7 RAF restructuring 13,300 13,300 13,300
P7 Other and Administration 4,311 4,535 4,807
Total 916,553 809,713 853,105
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Bus subsidies

• Subsidy levels have been insufficient since
  2005/06 to halt the declining levels of service,
  escalation in costs and the growth in demand
• In order to improve operational and financial
  efficiency a more focussed approach to
  determining service priorities will need to be
  developed
• Implementation Plan
• Conditional Grant to Provinces introduced
• Phased implementation in co-operation with
  Provinces
• Negotiated performance based contracts for route
  operations
• Formalisation of unscheduled Interim Contract
  services
• Define operating areas that will not be served
• Implementation of supporting infrastructure
• Continued enforcement and monitoring of all
  contracted Public Transport Operations

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Bus subsidies Interventions for achieving change
2009/10 onwards
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Bus subsidies Intervention conditions
?

• Operators that accept will sign an negotiated
  contract that includes
• KPIs
• Provision that the operator will be provided with
  an opportunity to be party to a new integrated
  contract regime for some or all of the services
  within the contract area

Operators that do not accept will continue on
month-to-month basis and their contracts will be
terminated as and when required
?
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Gautrain
Allocations from 2006/07 to 2010/11
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Gautrain

• Annual allocations are paid in terms of a payment
  schedule
• Key and General Milestones have to be achieved
  before payment
• The Provincial Support Team then checks whether
  Milestones have indeed been achieved
• The Milestones are certified by the Independent
  Certifier (IC)
• The certified claim is submitted by the IC to the
  Gauteng Management Agency to check claims for
  compliance
• The GMA then sends the claim to the Department
  with a request for payment from the DORA Grant
• The Department satisfies itself that there has
  been compliance with the DORA requirements and
  the conditions contained in the DORA Framework
• Currently, indications are that Phase 1 of the
  Project, i.e. the section between OR Tambo
  International Airport and Sandton will be
  completed in September 2010, while the rest of
  the Project will be completed in September 2011.

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Roads, Overload Control and Rural Transport Grants
R000
These grants to be introduced in 2010 budget
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Road Grants

• The grant was introduced to develop road
  infrastructure projects that promote regional
  integration, development and connectivity between
  neighbouring states
• Construction of the Sani Pass
• Phase 1 Upgrade of P318 Sani Pass (km 0 to
  13.6) - completion scheduled for April 2010.
• Phase 2 Upgrade of sections 1 and 2 (km 14 to
  25 and 25 to 33)
• Environmental Impact Assessment Studies underway
  with record of decision scheduled for
  announcement in September 2009
• Engineering designs are underway and are at
  various stages of completion by the joint venture
  consultant team
• Future road construction projects to be
  identified for inclusion in the Division of
  Revenue Act

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Overload Control Grants

• To achieve the objectives of the national
  overload control strategy, a 3-year grant has
  been developed in conjunction with National
  Treasury
• Grant funds are currently being used for
  upgrading the weighbridge infrastructure
  facilities in Mpumalanga and Limpopo
• In Mpumalanga, projects for the upgrade of
  weighbridge infrastructure were completed in
  October 2008
• Kinross Traffic Control Centre
• Ermelo Traffic Control Centre
• In Limpopo, the detailed design, planning and
  bill of quantities have been compiled, and
  construction works are set to begin in 2009/10
  on
• Rathoke Traffic Control Centre
• Mooketsi Traffic Control Centre
• Future allocations

2009/10 Gauteng R4,8m Limpopo R4,8m
2010/11 Eastern Cape R5,1m Mpumalanga R5,1m
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Rural Transport Grants

• Purpose
• To improve mobility and access in rural
  municipalities in support of Integrated
  Development Plans
• Reasons for not incorporating in equitable share
• This is a specific purpose grant mainly for the
  provision of rural transport infrastructure and
  services.
• This grant ensures that district municipalities
  are giving priority to the following rural
  transport interventions
• infrastructure construction
• maintenance, upgrading and rehabilitation
• support rural development and
• accelerated and shared growth initiatives in line
  with government priorities
• It is also used as vehicle for stimulating the
  use of labour intensive methods in large
  infrastructure programmes / projects to create
  jobs and develop required skills in terms of the
  Expanded Public Works Programme

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Rural Transport Grants

• Timeframes MTEF Allocations
• R8.9 million 2008/09,
• R9.8 million 2009/10
• R10.4 million 2010/11
• R11,1 million 2011/12.
• Details of Projects 2008/09 Allocations

DM PROJECT BUDGET
Chris Hani Intermodal Public Transport Facility R 4,1m
Thabo Mofutsanyane Upgrading of Access Road to a Thusong Service Centre R 2.0m
Dr Ruth S. Momphati Construction of 2No. Pedestrian Bridges R 2.0m
Sekhukhune Development of a Pedestrian Bicycle Paths Master Plan R0.8m
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Public Transport Infrastructure and Systems Grants

• Contents
• PTIS Background
• Allocations
• Conclusion

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Background Information

• The PTIS grant is aimed at improving transport
  infrastructure systems for 2010 and beyond
• Total PTIS grant from 2005/06 to 2010/11
  R13.639bn
• Total Host Cities PTIS grant R10.979bn which is
  80 of PTIS Grant
• Ongoing Monitoring and Evaluation of progress is
  in place, with monthly reporting
• Five Host Cities currently receiving technical
  assistance (Polokwane, Rustenburg, Mangaung,
  Mbombela and Tshwane)

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PTIS Allocations per City and/or Entity
Allocations per City / Entity Budget Budget Totals
R'000 2009/10 2010/11 Period
Johannesburg 600,214 950,471 2,831,756
Tshwane 565,245 864,180 2,068,744
Ethekwini 376,926 529,699 1,690,934
Cape Town 291,912 527,270 1,602,025
SARCC 450,000 1,315,000
Nelson Mandela 147,079 323,058 1,029,871
Mangaung 82,168 183,551 586,166
Inter-city buses 500,000 500,000
SANRAL 200,000 430,000
Mbombela 60,833 135,893 424,910
Polokwane 66,146 147,161 420,914
Non Host Cities 66,695 152,880 414,134
Rustenburg 67,782 150,337 323,776
CBRTA 1,000
Total 2,975,000 4,464,500 13,639,230
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PTIS Allocations per City and/or Entity

Total R13,64 Billion from 2005/06 to 2010/11
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Thank you
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