PUBLIC%20HEARINGS

1
KwaZulu-Natal Department of Transport
Conditional Grants and Capital Expenditure
PUBLIC HEARINGS November 2006
2
Road Network

• In keeping with Governments mandate to achieve
  equity the KwaZulu-Natal Department of Transport
  is progressively working towards its minimum road
  equity of 42,025 kilometres.
• However, despite the budget increases received
  over the past years and the increases proposed
  over the MTEF period the department remains
  woefully under funded for the execution of its
  mandate.

3
Road Network cont..

• The Department requires additional funding to
  address the road network equity.
• The road network has two components
• Restoring the network to its true asset value by
  increasing the level of maintenance and renewal
  expenditure.
• Providing access to all community facilities and
  supporting the Provincial Spatial Development
  Strategy
• A ten year strategy has been developed which
  indicates an estimated under funding of R12,8
  billion and to implement this would required an
  annual additional budget of R1,28 billion

4
Access

• Access remains the key challenge to service
  delivery. The demand for pedestrian bridges and
  access roads is huge particularly in the rural
  areas of KwaZulu-Natal.

Programme Total Value of Projects 2006/07 Budget Budget Shortfall (R000)
Community Road Upgrading R 1 175 000 R 67 500 R 1 107 500
Access Roads R 574 300 R 574 300
Pedestrian Bridges R 173 750 R 17 500 R 156 250
Total R 1 923 050 R 85 000 R 1 838 050
5
Access cont
6
Transport Corridor Development

• Economic development particularly at a local
  level still remains a focal point in the
  government agenda. Transport corridor development
  as a flagship project as outlined by the Premier
  continues to receive our attention and support as
  the Department.
• This project focuses on continued support for
  the Lebombo Spatial Development Initiative that
  is linked to the construction of Main Road 700.
  The revitalisation of the rail link in the area
  of P700 will lead to spin-offs similar to those
  seen on the M4 to Mpumalanga. Importantly, the
  corridor has the potential of linking Richards
  Bay and Vryheid.

7
Transport Corridor Development cont..

Indeed there is hope for the weak in
KwaZulu-Natal when there is partnership and
collaboration amongst the different spheres of
government for the general good.
8
Transport Corridor Development cont..
In response from business representatives and
community based organisations the KwaZulu-Natal
Department of Transport is considering for
proposals for the upgrading of provincial roads
that are of strategic national importance namely
Projects Budget Rmillions
Sipofu 50
Impendle 100
Sani Pass 240
Cecil Max Pass 90
John Ross Highway 450
Inanda to Pinetown 560
Ulundi to Vryheid 200
Dube Trade Port 555
Total 2,245
9
Cross Border Demarcation

• The Department has inherited the Umzimkhulu
  District Municipality from the Eastern Cape in
  terms of the Cross Border Demarcation changes
• The Department has conducted a needs assessment
  study with regard to the road infrastructure
  which identified a serious shortage of new
  infrastructure, maintenance and renewal needs in
  the Umzimkhulu Municipality, at a estimated cost
  of R1,6 billion.

10
Government Led Initiatives and Programmes

• It is of critical importance to ensure that the
  ideals of a seamless government are upheld.
• To this end, the Department of Transport pledges
  its support for all government led programmes as
  per the mandates of the government of the day.
• Operation Mbo, Project Consolidate, the
  Accelerated Shared Growth Initiative of South
  Africa (ASGISA), Provincial Spatial Development
  Strategy amongst others are such programmes that
  this department will advocate for.

11
2010 Soccer World Cup

• The success of the 2010 World Cup is at the
  forefront of our planning in the Department of
  Transport amidst budgetary constraints.
• Road Infrastructure development, Integrated
  Transport Planning, a safe, regulated, affordable
  and efficient public transport system as well as
  overall safety on our roads are the critical
  issues that we have embarked upon a drive to
  ensure that KwaZulu-Natal and South Africa as a
  whole is ready to host the 2010 Soccer World Cup.
  
• A report has been submitted to the National
  Department of Transport detailing the road
  infrastructure needs for the 2010 World Cup which
  is approximately R3 billion.

12
Collaboration with the National Department of
Transport

• I would be failing in my duty if I do not
  acknowledge the contribution of the National
  Department of Transport to infrastructure
  development to change the lives of the people of
  this Province.
• The John Ross Highway Project, the Isikhwebezi
  River Bridge, the nKobide Interchange, the Road
  to eQhudeni, to mention but a few are evidence of
  this collaboration with the national Department
  of Transport

13
Collaboration with the National Department of
Transport cont..

• Indeed there is hope for the weak in
  KwaZulu-Natal when there is partnership and
  collaboration amongst the different spheres of
  government for the general good.

14
KwaZulu-Natal Department of TransportSummary of
Infrastructure Expenditure Trend
Outcome Outcome Outcome Budget Medium-Term Estimates Medium-Term Estimates Medium-Term Estimates
Audited Audited Audited Budget Medium-Term Estimates Medium-Term Estimates Medium-Term Estimates
2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010
Capital              
New Construction 288,549 128,351 341,412 347,292 416,751 429,414 486,400
Rehabilitation/ Upgrading 509,827 598,371 614,215 670,276 846,732 1,025,363 1,055,398
Provincial Infrastructure Grant 200,121 282,594 315,121 348,194 448,190 479,007 479,007
     
Sub Total Capital 998,497 1,009,316 1,270,748 1,365,762 1,711,673 1,933,784 2,020,805

Current 51,190 289,790 476,976 459,728 513,792 691,853 722,986
             
Total Expenditure 1,049,687 1,299,106 1,747,724 1,825,490 2,225,465 2,625,637 2,743,791

Conditional Grant 19 22 18 19 20 18 17
15
Slide 1

• As can be seen for the attached slides the
  Department of Transport Infrastructure Budget has
  grown from R1,050 million since 2003/04 to R2,744
  million in the 2009/10 financial year.
• The Provincial Infrastructure Conditional Grants
  have increased from R200 million to R479 million
  which equates to between 17 and 22 as a
  percentage of the budget.

16
KwaZulu-Natal Department of TransportSummary of
Infrastructure Expenditure2006/07 Financial Year
Capital 2006/07 Budget Cumulative Analysis - Quarter ending September 2006 Cumulative Analysis - Quarter ending September 2006 Cumulative Analysis - Quarter ending September 2006 of Budget Spent
Cash flow projection Actual expenditure Variance
New Construction   347,292   142,000 143,916 1,916   41
Rehabilitation /Upgrading 670,276 188,000  201,284 13,284 30 
Provincial Infrastructure Grant 348,194  175,000  180,226 5,226 52 
Sub Total Capital 1,365,762 505,000 525,426 20,426 38

Current 459,728 207,000  211,900 4,900  46

Total 1,825,490 712,000  737,326 25,326 40 
 
17
Slide 2

• In the 2006/07 financial year the Infrastructure
  budget is R1,825 million and the Provincial
  Infrastructure Conditional Grant is R348 million
  which equates to 19 of the total infrastructure
  expenditure.
• I am pleased to report that for this 2nd Quarter
  the department has spent 40 of the
  Infrastructure Budget which is above the Cash
  Flow Projection for the quarter ending September
  2006.

18
KwaZulu-Natal Department of TransportCONDITIONAL
GRANTProject Schedule 2006/07 Financial Year
Project Region Region Project Project 2006/2007 2006/2007 Cumulative Actuals - Quarter ending September 2006 Cumulative Actuals - Quarter ending September 2006
name Region Region details details 2006/2007 2006/2007 Cumulative Actuals - Quarter ending September 2006 Cumulative Actuals - Quarter ending September 2006
  Region Region     Budget Outputs Expenditure Outputs
  Region Region     Budget Outputs Expenditure Outputs
Local Roads Empangeni Region Empangeni Region New Gravel Roads New Gravel Roads 17,500 59 14,444 21
Local Roads Ladysmith Region Ladysmith Region New Gravel Roads New Gravel Roads 10,500 35 8,748 30
Local Roads Pietermaritzburg Region Pietermaritzburg Region New Gravel Roads New Gravel Roads 10,000 34 9,337 11
Local Roads Durban Region Durban Region New Gravel Roads New Gravel Roads 10,194 35 9,749 21
ARRUP All Regions All Regions Upgrading from gravel Upgrading from gravel 300,000 55 137,948 13
Projects All Regions All Regions to surfaced road to surfaced road 300,000 55 137,948 13
                 
Total Total Total Total Total 348,194 218 180,226 96

19
Slide 3

• As can be seen from the slide that 52 of the
  Provincial Infrastructure Grant has been spent by
  the end of the 2nd Quarter, indicating that the
  Department is well on track to meet its
  milestones that were set for the financial year
  with regards to outputs and budgets .

20
Conclusion

• In summary the Department requires an additional
  budget of R18,483 billion. If this is funded
  over a 5 year period it amounts to R3,670 billion
  per annum.
• As can be seen from the figures presented this
  department, we have enough capacity and
  appropriate monitoring and evaluation systems in
  place to deliver on our mandate.
• If additional funding can be sourced the
  Province of KwaZulu-Natal will write its own
  history and it will be a history of Glory and
  Dignity, as we continue "Defending the Weak"
  through the provision of more transport
  infrastructure such as pedestrian bridges, access
  roads, a safer road environment and an effective
  and efficient public transport system.

21
Conclusion cont..

• Massification of our rural growth and
  sustainable economic growth and development is
  not possible unless it is supported by
  appropriate transport infrastructure. Transport
  the world over is seen as a catalyst for change
  and improved service delivery.

22

• Thank you