Kwa ZuluNatal Department of Transport Conditional Grants and

Kwa. Zulu-Natal Department of Transport Conditional Grants and Capital Expenditure PUBLIC HEARINGS November 2006 1

Road Network In keeping with Governments mandate to achieve equity the Kwa. Zulu-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. 2

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 R 12, 8 billion and to implement this would required an annual additional budget of R 1, 28 billion 3

Access remains the key challenge to service delivery. The demand for pedestrian bridges and access roads is huge particularly in the rural areas of Kwa. Zulu-Natal. Programme Community Road Upgrading R 1 175 000 2006/07 Budget R 67 500 Budget Shortfall (R’ 000) R 1 107 500 Access Roads R 574 300 Pedestrian Bridges R 173 750 R 17 500 R 156 250 R 1 923 050 R 85 000 R 1 838 050 Total 4 Total Value of Projects R 574 300

Access cont… 5

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 P 700 will lead to spin-offs similar to those seen on the M 4 to Mpumalanga. Importantly, the corridor has the potential of linking Richards Bay and Vryheid. 6

Transport Corridor Development cont. . Indeed there is hope for the weak in Kwa. Zulu-Natal when there is partnership and collaboration amongst the different spheres of government for the general good. 7

Transport Corridor Development cont. . In response from business representatives and community based organisations the Kwa. Zulu-Natal Department of Transport is considering for proposals for the upgrading of provincial roads that are of strategic national importance namely: Projects 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 8 Budget R’millions 2, 245

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 R 1, 6 billion. 9

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. 10

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 Kwa. Zulu-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 R 3 billion. 11

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 n. Kobide Interchange, the Road to e. Qhudeni, to mention but a few are evidence of this collaboration with the national Department of Transport 12

Collaboration with the National Department of Transport cont. . Indeed there is hope for the weak in Kwa. Zulu-Natal when there is partnership and collaboration amongst the different spheres of government for the general good. 13

Kwa. Zulu-Natal Department of Transport Summary of Infrastructure Expenditure Trend Outcome Audited Budget 2003/2004/2005/2006/2007/2008/2009/2010 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 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 1, 049, 687 1, 299, 106 1, 747, 724 1, 825, 490 2, 225, 465 2, 625, 637 2, 743, 791 19% 22% 18% 19% 20% 18% 17% Medium-Term Estimates Capital Total Expenditure % Conditional Grant 14

Slide 1 As can be seen for the attached slides the Department of Transport Infrastructure Budget has grown from R 1, 050 million since 2003/04 to R 2, 744 million in the 2009/10 financial year. The Provincial Infrastructure Conditional Grants have increased from R 200 million to R 479 million which equates to between 17% and 22% as a percentage of the budget. 15

Kwa. Zulu-Natal Department of Transport Summary of Infrastructure Expenditure 2006/07 Financial Year 2006/07 Budget Cumulative Analysis - Quarter ending September 2006 Capital 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 52% Sub Total Capital 1, 365, 762 505, 000 525, 426 20, 426 38% 459, 728 207, 000 211, 900 46% 1, 825, 490 712, 000 737, 326 25, 326 40% Current Total 16 Cash flow projection %of Budget Spent

Slide 2 In the 2006/07 financial year the Infrastructure budget is R 1, 825 million and the Provincial Infrastructure Conditional Grant is R 348 million which equates to 19% of the total infrastructure expenditure. I am pleased to report that for this 2 nd Quarter the department has spent 40% of the Infrastructure Budget which is above the Cash Flow Projection for the quarter ending September 2006. 17

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

Slide 3 As can be seen from the slide that 52% of the Provincial Infrastructure Grant has been spent by the end of the 2 nd 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. 19

Conclusion In summary the Department requires an additional budget of R 18, 483 billion. If this is funded over a 5 year period it amounts to R 3, 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 Kwa. Zulu-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. 20

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. 21

Thank you 22