Limpopo Province Department of Roads

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Limpopo ProvinceDepartment of RoadsTransport

• Conditional Grants, Capital and Transfer
  Expenditure
• Presenter Makibelo M M
• HOD

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Road Agency Limpopo

• Why and how it was established.
• The nature of road tender specifications led to
  serious delay in the awarding of tenders in the
  department because it was not easy for the
  Province to find members who have specific
  skills.
• Road tender recommendations were in many cases
  sent back by the Provincial Tender Board due to
  lack of understanding by board members.
• The premier of the Limpopo Province on two
  occasions dismissed the tender board and
  appointed a new board, because of problems.
• The problems led the Province to resolve that
  Road Agency be established.

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Road Agency Limpopo, cont

• The department has been battling to get engineers
  and other technical personnel, because of the
  remuneration packages of the state that arent
  competitive.
• The Road Agency were able to raise the salaries
  of professional and technical personnel to a
  level slightly above that of the department,
  which enabled them to acquire more personnel.
• While the Roads function was still in the
  department bids for roads were not enjoying the
  priority they deserve as there were other
  pressures in other functions (Buildings /
  Property / GITO, etc.) that caused further delay
  and funds to had to be surrendered.

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Road Agency Limpopo, cont

• It enables RAL to generate revenue from accesses
  to provincial roads by businesses (petrol
  garages, etc.) and also from tourism and other
  advertisements.
• RAL is developing emerging contractors to take
  over some of the tasks staring with the routine
  maintenance, which will be latter be extended to
  the construction and upgrading of roads.

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Road Agency Limpopo, cont

• Why should the department Conditional Grant Funds
  to Road Agency.
• RAL is the delivery arm of the department which
  implement and manage road project efficiently.
  Regular site visit s and inspections on the
  projects by Road Agency staff is done in
  conjunction with those funded by the Grant.
• This is done to avoid duplication of functions
  blading ,pothole, repair edge breaks, crack
  sealing, bush and clearing grass,cutling
  replacing damaged signs and cleaning drainage.
• The department concentrate on routine maintenance
  and RAL is doing preventative maintenance,
  (Resealing ,rehabilitating and apply log spraying
  and upgrading

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Road Agency Limpopo, cont

• Future Plan for the Road Agency
• (Whether to discontinue with the agency or not)

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BUDGET ALLOCATION
  2004/05. 2004/05. 2005/06. 2005/06. 2006/07. 2006/07.
  Budget Expenditure Budget Expenditure Budget Expenditure
Expenditure Item R'000 R'000 R'000 R'000 R'000 R'000
Capital 26,981 26,818 36,989 35,855 23,224 3,845
Transfers 155,627 151,227 211,544 203,931 264,962 113,895
Conditional Grant 237,331 237,331 264,359 264,359 291,786 146,786
Infrastructure (Transfers) 412,919 412,919 566,378 566,378 495,714 157,314
TOTAL 832,858 828,295 1,079,270 1,070,523 1,075,686 421,840
Conditional Grant 2006/07 First quarter achievements
Type of Work No of Projects Targets Archieved Project cost Exp. 1st Q. Exp. 2nd Q Total Exp
    KMs Kms R'000 R'000 R'000 R'000
Upgrading from gravel to tar 54 1374 745 2,483,999 116,172 72,116 188,288
Repair/Reseal/ Fog spray 33 390 177 32,000 5,283 88 5,371
Administration       35,000   4,059 4,059
Total 89 1,764 922 2,550,999 121,455 76,263 197,718
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Allocation of Capital ,Infrastructure and Grant

• Capital
• The budget for equipment has been R 26,9m during
  2004/05 which constituted of R16,8 m for
  buildings and R7,6 m for vehicles.
• The allocation was based on the assumption the
  traffic vehicles are going to be outsourced.
• The department had to discontinue with the
  outsource and needed additional funds for
  purchase of traffic vehicles.
• The 2005/06 budget was the purchase of vehicle to
  address shortage of traffic vehicles. The
  current vehicle currently usage is that one
  vehicle is shared to five instead of two
  officers.
• When Roads was amalgamated with transport there
  was also a major shortage of road maintenance
  equipments.
• This will need the capital equipments to be
  increased by R 70m par annum for the MTEF.

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Transfers

• Transfers budget is for the subsidization of 19
  bus operators which are administer through three
  contract systems, the tender, negotiated and the
  interim contract system.
• In terms of the National Land Transitional Act
  (NLTTA), the department is expected to move from
  interim to either negotiated or tender contract
  system.
• The conversion need additional R100 million which
  the department do not have .
• The increase was the following
• -Transfers to the Airport (R20m R44 for
  2004/05m for 2005/06)
• - Increase on Bus operators.

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Transfers, cont.

• The challenges
• The Airport need to be developed to be
  economically viable for bigger aircraft to land
  which need additional R200million.
• This will give farmers opportunities to export
  their products and to improve economically.
• Other investors has shown interest in investing
  at the Airport.

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Conditional Grants

• Projects for the grants are executed by the Road
  Agency which is responsible for the construction
  and upgrading of roads
• The transfer from the department to the Road
  Agency is done on monthly bases in terms of their
  cash flow plan.
• 25 roads projects have started during the
  previous year and more or less 50 complete.
• 27 projects have just started this year (12 at a
  tender/planning stage) and are expected to run
  over a year or two.
• Of the R146 million Transferred, the total amount
  paid is R121,4million.
• Major projects (25) undertake are as per the next
  three slides

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Project no Project name Stage Municipality Number of Kilometers Type project details Start dade Duration in months Project cost   Payment todate    
155 Projects TOTALS - - 3,243 - Actual Target R 5,390,681   R 126,103 R 72,204 R 198,307
RAL/T341 Road D19 Polokwane-Matlala-Tibane Construction 50 Aganang 55 Upgrading from gravel to tar 27 September 2005 25 R 109,000   R 5,803 R 2,048 R 7,851
RAL/T342 Road D3756 Mavambe to Thohoyandou Construction started Thulamela 12 Upgrading from gravel to tar   20 R 60,000   R - R - R 0
RAL/T343 Road D1200 Bochum to Steilloop Construction 75 Blouberg 72 Upgrading from gravel to tar 05 August 2005 21 R 139,000   R 8,374 R 6,229 R 14,603
RAL/T344 Roads D4050/D1583 Mafefe to Sekororo Construction 50 Lepelle-Nkumpi 48 Upgrading from gravel to tar 10 October 2005 18 R 182,000   R 4,500 R 5,767 R 10,267
RAL/T345 Roads D4040/D4000/D4005/D4030/D4032Chuenespoort to Boyne Construction 25 Polokwane 39 Upgrading from gravel to tar 10 October 2005 26 R 78,000   R - R 3,356 R 3,356
RAL/T346 Roads D3840/D3187/D3981 Giyani to Phalaborwa Construction 75 Greater Giyani 61 Upgrading from gravel to tar 10 August 2005 18 R 121,000   R - R 8,408 R 8,408
RAL/442 Road D3641 Thomo to Altein to Shangoni KNP Gate Design Greater Giyani 15 Upgrading from gravel to tar   24 R 58,000   R - R - R 0
RAL/T347A Roads D4100/D4250/D4191/D4190 Flag Boshielo Dam to Veeplaats Construction 50 Makhuduthamaga 28 Upgrading from gravel to tar 04 August 2005 25 R 87,000   R 9,910 R 719 R 10,629
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RAL/T348A Roads D3747/D3749 Majozi/Nkuza Construction 75 Makhado 11 Upgrading from gravel to tar 23 August 2005 10 R 32,535   R 3,003 R 4,406 R 7,409
RAL/T348B Roads D3150/D3827 Mamaila to Mahatlani Construction 50 Makhado 9 Upgrading from gravel to tar 10 October 2005 11 R 29,000   R 2,632 R 1,359 R 3,991
RAL/T349A Road D4 Vuwani to Malamulele Construction 75 Thulamela 37 Upgrading from gravel to tar 11 August 2005 25 R 81,744   R 7,106 R 6,507 R 13,613
RAL/T349B Road D4 Vlyfontein to Bandelierkop (N1) Construction 25 Makhado 17 Upgrading from gravel to tar 19 October 2005 10 R 43,000   R - R 833 R 833
RAL/T369 Road D3708 Mukula to Mhinga Construction 75 Thulamela 33 Upgrading from gravel to tar 24 August 2005 8 R 83,000   R 2,359 R 983 R 3,342
RAL/T350 D3500/D4380 Ga-Kgabudi to Mapela Construction 50 Mogalakwena 86 Upgrading from gravel to tar 24 August 2005 21 R 118,000   R 4,713 R 3,691 R 8,404
RAL/T351 Road D3110 Ga-Seleka to Shongoane Construction 50 Lephalale 30 Upgrading from gravel to tar 22 August 2005 24 R 71,000   R 4,713 R 3,022 R 7,735
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RAL/T376 Roads D4285/D4280/D4284/D4239 Maserumole/Nebo to Kromdril Construction 50 Makhuduthamaga 38 Upgrading from gravel to tar 03 August 2005 30 R 120,000   R 10,078 R 3,484 R 13,562
RAL/T352 Road D1589 Schierimonikoog to Kromhek Construction 75 Blouberg 68 Upgrading from gravel to tar 05 August 2005 21 R 100,000   R 10,811 R 3,566 R 14,377
RAL/T353 Road P277/1 Makonde to Masisi Construction 50 Thulamela 55 Upgrading from gravel to tar 05 October 2005 26 R 105,000   R 8,841 R 388 R 9,229
RAL/T355B Roads D3981/D3810 Thomo/Altein (Shangoni Gate) to Phalaborwa Construction started Greater Giyani   Upgrading from gravel to tar   32 R 118,000   R 238 R 1,197 R 1,435
RAL/T356 Road D3681 Donald Fraser Hospital to Phiphidi to Tshisaulu (Road P98/1) Construction 25 Thulamela 9 Upgrading from gravel to tar 31 August 2005 19 R 139,000   R 1,133 R 1,431 R 2,564
RAL/T375 Road D21 Sekororo to The Oaks Construction 75 Maruleng 30 Upgrading from gravel to tar 28 September 2005 23 R 65,000   R 3,789 R 4,125 R 7,914
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• The additional allocation will fund the following
  ongoing projects.
• Makonde -Masisi R 21 million
• Donald Fraser- Phiphidi R20 million
• Gakgabudi Mapela R 18,5 million
• FlagBoshielo-Veeplaas R 26million
• Chuenespoort-Boyne R19,9 million
• Maseremole Mamphogo R 32,6
• Schiermonniksoog-Kroonhoek R 14,2 million
• 2007/08, plans are ready for implementation.

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Conditional Grants, cont.

• Challenges
• Projects do not move as expected during summer
  because of heavy rains in the Provice.

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Infrastructure spending

• The actual half year expenditure on
  infrastructure for the department is R264
  million (excluding Conditional Grant).
• 128 kms was completed during the first half of
  the year.
• 26 projects started during the previous
  financial year and are more than 50 complete.
• 31 projects are at the initial stage and are
  going to be completed in a year or two years to
  come.

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Infrastructure spending, cont.

• 2007/08 Infrastructure plan.
• The department has completed the plan July and
  has been submitted to National Treasury and the
  Provincial Infrastructure Unit.
• The plan has been aligned with the MTEF budget
• Tenders shall be advertised towards the end of
  the financial year to be ready at the begging of
  the new financial year.

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The end