Limpopo Province Department of Roads Transport Conditional Grants

Limpopo Province Department of Roads & Transport Conditional Grants, Capital and Transfer Expenditure Presenter: Makibelo M M HOD

Road Agency Limpopo q 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.

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 aren’t 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.

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.

Road Agency Limpopo, cont…… q 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

BUDGET ALLOCATION 2004/05. Budget Expenditure Item Capital 2005/06. Expenditure R'000 Budget 2006/07. Expenditure R'000 Budget Expenditure R'000 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, 331 264, 359 291, 786 146, 786 Infrastructure (Transfers) 412, 919 566, 378 495, 714 157, 314 832, 858 828, 295 1, 079, 270 1, 070, 523 1, 075, 686 421, 840 TOTAL Conditional Grant 2006/07 – First No of Archieve quarter achievements Type of Work Projects Targets d Project cost KMs Kms R'000 Exp. 1 st Q. Exp. 2 nd Q Total Exp 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 4, 059 76, 263 197, 718 Administration Total 35, 000 89 1, 764 922 2, 550, 999 121, 455

Allocation of Capital , Infrastructure and Grant q Capital: q The budget for equipment has been R 26, 9 m during 2004/05 which constituted of R 16, 8 m for buildings and R 7, 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 70 m par annum for the MTEF.

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 R 100 million which the department do not have. § The increase was the following: -Transfers to the Airport (R 20 m & R 44 for 2004/05 m for 2005/06) - Increase on Bus operators.

Transfers, cont…. q. The challenges : § The Airport need to be developed to be economically viable for bigger aircraft to land which need additional R 200 million. § This will give farmers opportunities to export their products and to improve economically. § Other investors has shown interest in investing at the Airport.

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 R 146 million Transferred, the total amount paid is R 121, 4 million. • Major projects (25) undertake are as per the next three slides:

oject o 155 rojects Project name TOTALS: Stage - Municipali ty Number of Kilomet ers Type project details - 3, 243 - 55 Upgrading from gravel to tar Road D 19: Polokwane. Matlala. Tibane Constructi on 50% AL/T 34 2 Road D 3756: Mavambe to Thohoyandou Constructi on started Thulamela AL/T 34 3 Road D 1200: Bochum to Steilloop Constructi on 75% Blouberg AL/T 34 4 Roads D 4050/D 158 3: Mafefe to Sekororo Constructi on 50% Lepelle. Nkumpi Roads D 4040/D 4005/D 40 30/D 4032: Ch uenespoort to Boyne Constructi on 25% Roads D 3840/D 318 7/D 3981: Giyani to Phalaborwa Constructi on 75% Road D 3641: Thomo to Altein to Shangoni KNP Gate Design AL/T 34 1 AL/T 34 5 AL/T 34 6 AL/442 AL/T 34 7 A Roads D 4100/D 425 0/D 4191/D 41 90: Flag Aganang Polokwane 12 72 48 39 Start dade Actual 27 September 2005 Duratio n in months Target 25 Project cost R 5, 390, 681 R 109, 000 Payment todate R 126, 103 R 5, 803 R 72, 204 R 198, 307 R 2, 048 R 7, 851 Upgrading from gravel to tar 20 Upgrading from gravel to tar 05 August 2005 Upgrading from gravel to tar 10 October 2005 21 18 R 60, 000 R - R 139, 000 R 8, 374 R 6, 229 R 182, 000 R 4, 500 R 5, 767 R 0 R 14, 603 R 10, 267 26 R 78, 000 R - R 3, 356 Greater Giyani 61 Upgrading from gravel to tar 10 August 2005 18 R 121, 000 R - R 8, 408 Greater Giyani 15 Upgrading from gravel to tar 24 R 58, 000 R - R 0 Constructi on 50% Makhudutha maga 28 Upgrading from gravel 04 August 2005 25 R 87, 000 R 9, 910 R 719

AL/T 34 8 A AL/T 34 8 B AL/T 34 9 A AL/T 34 9 B AL/T 36 9 AL/T 35 0 AL/T 35 1 Roads D 3747/ D 3749: Majozi/ Nkuza Constructi on 75 % Roads D 3150/ D 3827: Mamail a to Mahatl ani Constructi on 50 % Road D 4: Vuwani to Malam ulele Constructi on 75 % Makhado 11 9 Upgrading from grav el to tar 23 August 2005 Upgrading from grav el to tar 10 October 2005 R 10 R 3, 00 3 32, 535 R 4, 406 R 7, 409 R 11 R 2, 63 2 29, 000 R 1, 359 R 3, 991 Thulamela 37 Upgrading from grav el to tar R 11 August 2005 25 R 7, 10 6 81, 744 R 6, 507 R 13, 613 Road D 4: Vlyfont ein to Bandeli erkop (N 1) Constructi on 25 % Road D 3708: Mukula to Mhinga Constructi on 75 % D 3500/D 4380 : Ga. Kgabud i to Mapela Constructi on 50 % Road D 3110: Ga. Seleka to Shongo Makhado 17 Upgrading from grav el to tar 19 October 2005 10 R 43, 000 R R - 833 R 833 Constructi on 50 % Thulamela Mogalakwena Lephalale 33 86 30 Upgrading from grav el to tar 24 August 2005 Upgrading from grav el to tar 22 August 2005 R 8 R 2, 35 9 83, 000 R 983 R 3, 342 R 21 R 4, 71 3 118, 000 R 3, 691 R 8, 404 R 24 R 71, 000 4, 71 3 R 3, 022

RAL/T 37 6 RAL/T 35 2 RAL/T 35 3 RAL/T 35 5 B RAL/T 35 6 RAL/T 37 5 Roads D 4285/D 42 80/D 4284/D 4239: Maserumol e/Nebo to Kromdril Constructi on 50% Road D 1589: Schierimoni koog to Kromhek Constructi on 75% Road P 277/1: Makonde to Masisi Constructi on 50% Roads D 3981/D 38 10: Thomo/Altei n (Shangoni Gate) to Phalaborwa Constructi on started Road D 3681: Donald Fraser Hospital to Phiphidi to Tshisaulu (Road P 98/1) Constructi on 25% Road D 21: Sekororo to The Oaks Constructi on 75% Makhud uthamag a 38 Upgrading from gravel to tar 03 August 2005 30 R 120, 000 R 10, 078 R 3, 484 R 13, 562 Blouber g 68 Upgrading from gravel to tar 05 August 2005 21 R 100, 000 R 10, 811 R 3, 566 R 14, 377 Thulame la 55 Upgrading from gravel to tar 05 October 2005 26 R 105, 000 R 8, 841 R 388 R 9, 229 Greater Giyani Upgrading from gravel to tar 32 R 118, 000 R 238 R 1, 197 R 1, 435 Thulame la 9 Upgrading from gravel to tar 31 August 2005 19 R 139, 000 R 1, 133 R 1, 431 R 2, 564 Marulen g 30 Upgrading from gravel to tar 28 September 2005 23 R 65, 000 R 3, 789 R 4, 125 R 7, 914

The additional allocation will fund the following ongoing projects. v Makonde -Masisi v Donald Fraser- Phiphidi v Gakgabudi – Mapela v Flag. Boshielo-Veeplaas v Chuenespoort-Boyne v Maseremole –Mamphogo v Schiermonniksoog-Kroonhoek R 21 million R 20 million R 18, 5 million R 26 million R 19, 9 million R 32, 6 R 14, 2 million • 2007/08, plans are ready for implementation.

Conditional Grants, cont…. Challenges: • Projects do not move as expected during summer because of heavy rains in the Provice.

Infrastructure spending • The actual half year expenditure on infrastructure for the department is R 264 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.

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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