Free State Public Works Roads and Transport NCOP
Free State Public Works, Roads and Transport NCOP Meeting 28 NOVEMBER 2006 1
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 2
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 3
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 4
State of the Province address • • Creation of 50 000 jobs through EPWP Halving poverty and un-employment Transfer of skills Targeted procurement processes 5
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. 6
ISRDP and Contribution to poverty alleviation and job creation • Makwane access road – 27 learnerships and 1800 jobs created – R 64 million • Road infrastructure • Selosesha – R 15 million project • Trompsburg – Jagersfontein – R 78 million • Fezile Dabi Projects – – – Sasolburg Interchange N 1 – Parys: 20 km N 1 – 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 R 149 million 7
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 8
Key Highlights in Sep 06 Mid -term Report 9
2006/07 Departmental Budget R 1 066 323. 00 Roads Traffic Admin, Works, Transport, EPWP 10
2006/07 Budget Issues State of the Budget 11
Actual Monthly Departmental Expenditure and Projected for 2006/07 TOTAL OVER EXPENDITURE = R 261 million Till 20 Nov 06 12
MAIN INDICATORS: Economic Classification 13
Spending Outcomes and budget 06/07 14
Actual Monthly Roads Expenditure till 31 October 2006 and Projected for 2006/07 15
Empowerment through Procurement Procedures • 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 R 147 million) 16
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 17
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 18
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 19
Challenges (Continue) • 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 20
In Year -Budget Pressures • Floods • Material supplies • Transport Infrastructure • Law enforcement • Maintenance • Accommodation • Construction material • Accelerated infrastructure delivery • 2010 Infrastructure • CIDB • Taxi recapitalization 21
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 22
Learnerships Motheo & Xhariep 23
Gravel Roads Road S 1521 Thaba Nchu Regraveled in Xhariep 24
Road repair Extensive Blading Process Patch work learnerships Repair and cleaning of rest areas Rehabilitation by milling Cleaning of storm water drainage 25
Bridges Repair bridge approach and remove debris Sterkspruit bridge 26
Makwane access road bridge structure 27
MAKWANE-S 1499 before and after 28
MAKWANE: S 1500 before 29
MAKWANE: S 1500 Construction 30
MAKWANE: S 1500 After 31
PARYS N 1 32
33
SELOSHESHA 34
ZASTRON BRIDGE: Before and after 35
BRIDGE OVER THE CALEDON RIVER AT WEPENER 36
FLOOD REPAIR: Bloemfontein-Zastron 37
TROMPSBURGJAGERSFONTEIN 38
Conditional Grant Spending Business cases • Infrastructure Plan • Revisions to the maintenance budget to provide for flood damage repair work; Road S 708 near Ladybrand Road S 1521 Thaba Nchu 39
WORKS AS AN AGENT FOR CLIENT DEPARTMENTS 40
SEDERHOF 41
Clinic Construction 42
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 43
Sectoral Issues Works 65% 102% 30% 47% 21% 35% 44
TOTAL EXPENDITURE DEPARTMENT BUDGET EXPENDITURE % HEALTH R 84 849 000 R 86 897 006 102. 4% EDUCATION R 117 695 000 R 76 732 997 65. 2% ENVIRONMENTAL AFFAIRS R 10 000 R 3 483 993 34. 8% SPORT ARTS & CULTURE R 26 000 R 12 257 737 47. 1% SOCIAL WELFARE R 24 758 000 R 5 159 770 20. 8% 45
HEALTH PROJECTS TOWN Bloemfontein Kroonstad PROJECT Pelonomi hosp Block E. Upgrade of ICU Boitumelo hosp contract 3 pharmacy, radiology and theatres Block D EXPEND TIME PROG COMMENTS Temporary ICU to be completed before project can tender R 3. 98 m 89 Kroonstad Boitumelo hosp R 1, 96 m Contract 4: Maternity 44 Kroonstad Boitumelo hosp Contract 7: Mechanical infrastructure 67 R 5, 44 m 87 Will be completed by December 2006 Contractor has requested to 5 complete project with cessions. Project still behind schedule 37 Will be completed during June 2007 46
HEALTH PROJECTS TOWN PROJECT EXPEND Bloemfontein Pelonomi hospital upgrade Pharmacy block I and Fence Upgrading R 0, 92 m 13 Kroonstad Boiutmelo hosp contract 8 Electrical Infrastructure R 6, 19 m 88 78 To be completed by end November 2006 Jagersfontein Diamant Hospital Upgrading R 3, 47 m 33 12 Expected completion June 2008 Qwa-Qwa E Ross Hospital final phase of upgrading R 10. 23 m TIME PROG 22 COMMENTS Busy with 2 demolitions. Internal work 50% Expected completion 27 December 2009 47
HEALTH PROJECTS TOWN PROJECT EXPEND Harrismith Thebe hosp final phase ofupgrading R 10, 63 m 27 27 Expected completion November 2008 Heilbron Tokollo hosp final phase of upgrading R 9, 24 m 38 24 Expected completion February 2008 Bloemfontein National Hospital Paliative Care Unit Bloemfontein Pelonomi Hospital: Block P New Ortopedic workshop R 0, 75 m R 1, 87 m TIME PROG COMMENTS 143 In process to address 76 problems which caused delays 129 Contractor was delayed by additional 67 requests from client dept. Work is neat and progress fair. 48
HEALTH PROJECTS TOWN PROJECT Dealesville New Community Health Care Center Odendaalsrus Thusanong First phase of upgrading Maternity, Theatre complex and CSSD Virginia Katleho Hospital phase 1 of upgrade new maternity ward Thaba Nchu Moroka - MDR Dining Hall EXPEND TIME PROG COMMENTS 133 Contractor a banded site. Legal advise 95 sought. Discussions with SARS R 3, 68 m 66 Progress improved. 32 To be completed August 2007. R 0, 57 m 88 96 R 0, 17 m 117 Will be completed ahead of schedule Work came to a standstill - cash flow problems. Alternative 7 quotations received for completion of project. 49
HEALTH PROJECTS TOWN PROJECT Bloemfontein Pelonomi hosp Mankovs Staff accommodation Contract A Bloemfontein Pelonomi hosp Mankovs Staff accommodation Contract B EXPEND R 1, 36 m R 0, 97 m TIME 25 25 PROG COMMENTS Initial minor 15 problems being managed by architect Initial minor problems being 15 managed by architect 50
ENVIRONMENTAL AFFAIRS PROJECTS TOWN PROJECT Philip Sanders Resort Bloemfontein First Phase EXPEND TIME PROG COMMENTS R 0, 52 m Project started. Expected completion November 2006 Project unbundled in seven projects. Tenders to be called for in November 2006 Bloemfontein Philip Sanders Resort 2 ND Phase R 0, 39 m Gariep Dam Phase 2 R 0, 16 m 50 31 Expected completion September 2007 51
SOCIAL WELFARE PROJECTS TOWN PROJECT EXPEND Bloemfontein Tshiriletsong Place of Safety R 0, 16 m Documentation completed. Wait for client confirmation to proceed Welkom One stop service center R 0, 004 m Mine buildings need to be purchased Thabo Mofutsany ana One stop secure care center R 2, 46 m Documentation completed. Wait for client confirmation to proceed TIME PROG COMMENTS 52
SOCIAL WELFARE PROJECTS TOWN PROJECT Thabo Mofutsanyana Victim Support Center Bloemfontein Monument Place of Safety Secure Care EXPEND TIME PROG COMMENTS Documentation will be completed 20 Feb 2007 R 2, 39 m 100 Contractor asked for extension of 98 time until January 2007 53
REVENUE 54
REVENUE BUDGET = R 251 m PROJECTION = R 245 m 55
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 56
REVENUE: 6 month target = R 125. 7 m 6 month actual = R 118. 3 m 57
REVENUE CLASSIFICATION MOTOR VEHICLE LICENCES TAX SALE GOODS&SERV PRODUCED BY DEPT ITEM MOTORVEHICLE LICENCES TAX BUDGET ACTUAL 30 Sep 06 % Collected -190, 581, 000 -84, 961, 300 45% DRIVERS LICENCE APPLICATION FEES -8, 147, 000 -4, 430, 297 54% LEARNER LICENCE APPLICATION FEES -4, 000 -2, 876, 594 72% CONV DRIVERS LICENCE - CARD TYPE -4, 000 -2, 571, 800 64% ABNORMAL LOADS LICENCES -3, 473, 000 -2, 409, 635 69% RENTAL: OFFICE BUILDINGS -8, 010, 000 -1, 540, 584 19% TESTING ROAD WORTHY FEES -2, 000 -1, 188, 025 59% RENTAL: PARKING COVERED&OPEN -2, 250, 000 -1, 185, 764 53% SPECIAL LICENCES NUMBERS -2, 000 -1, 124, 884 56% DUPLICATE DOCUMENTS LICENCES -1, 500, 000 -1, 097, 721 73% PUBLIC DRIVERS PERMITS -1, 400, 000 -879, 483 63% -999, 000 -842, 996 84% LEARNERS CERTIFICATE -1, 300, 000 -782, 135 60% ROAD WORTHY CERTIFICATE -1, 000 -493, 109 49% SERV REND: COMMISSION INSURANCE -830, 000 -411, 373 50% MOTOR VEHICLE REGS PERSONAL -800, 000 -400, 271 50% ACTIVITIES ON PUBLIC ROADS FEES -400, 000 -386, 512 97% DRIVERS LICENCE CERTIFICATE -500, 000 -176, 460 35% SALES: TENDER DOCUMENTS -180, 000 -168, 619 94% -2, 000 -155, 867 8% -400, 000 -155, 566 39% TEMPORARY SPECIAL PERMIT RENEWAL DRIVERS LICENCES MOTOR VEHICLE REGIS SPECIAL 58
REVENUE: Classification (Continue) CLASSIFICATION FINES SALES OF LAND & SUBSOIL ASSETS REVENUE: FINANCIAL ASSETS ITEM COURT FINES BUDGET ACTUAL 30 Sep 06 % Collected -11, 746, 000 -6, 324, 521 54% IMPOUND FEES -1, 000 -1, 075, 270 108% SALES OF LAND -1, 500, 000 -1, 016, 155 68% 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 59
THANK YOU 60
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