CONDITIONAL GRANTS: 4th QUARTER

ROADS & TRANSPORT

TO INFORM THE NCOP OF THE:

Roads Conditional Grants and Capital Expenditure of the Free State Dept. of Public Works, Roads & Transport for the 2005/06 financial year, relating to Roads & Transport

PURPOSE

Background Discussion Strategic Focus Delays in infrastructure delivery

Flood damage & infrastructure Backlog Corrective measures PIG Grant allocation OIG Grant allocation Flood funds allocation Financial performance Flood damage & infrastructure backlog

CONTENTS

Challenges presented infrastructure

delivery development

Appropriate capacity and staffing

The legacy of the past

Lack of monitoring and evaluation

BACKGROUND

DISCUSSION

Role of Roads infrastructure in socio-economic

development

Accelerated infrastructure development

Major causes for delaying infrastructure delivery

Techniques employed

Review current processes

Additional technical staff

Partnership with Treasury

Improved consultation

Project Management

Policy imperatives

Value for money

EPWP principles

Socio-economic development stimulation

Enhanced turn-around times

IDIP

Limitations

Non-alignment

Silo planning

Project identification

Strategic Focus

:

Delays in Infrastructure Delivery

Inclement weather conditions for the past three months

Poor alignment of infrastructure planning to budget cycle

Lack of capacity for infrastructure planning

Slow procurement processes

Poor relations and poor communication within and between departments

:

FLOOD DAMAGE

FREE STATE ROAD NETWORK

HISTORICAL SITUATIONAL ANALYSIS

:

1988 heavy rainfalls No funding made available to redress the damage Accumulation of the backlog through the years In 2005 the road infrastructure backlog = R5,2billion Freight and transport growth in province 2006 backlog = R7,3 billion

Floods 2006: Damages to Roads & bridges

•Bridges,

•Gravel Roads

• Surfaced Roads

CAUSES

Above-average rainfall in January 2006 – saturating the soils

Even higher intensity during February 2006 – dramatic increase in surface storm waterDams broke – extensive water-damage down-stream

:

PROBLEM STATEMENT:

Approaches to bridges washed away;Bridge decks damaged;Drainage structures (pipes) exposed;Gravel wearing course washed away;Erosion damage along roads and,Underlying damage

Approaches to bridges washed awayApproaches to bridges washed away

Bridge decks damagedBridge decks damaged

Drainage structures (pipes) exposedDrainage structures (pipes) exposed

Gravel wearing course washed awayGravel wearing course washed away

Erosion damage along roadsErosion damage along roads

Underlying damageUnderlying damage due to water ingress into brittle and cracked sealsdue to water ingress into brittle and cracked seals

The total effect will only be evident in the months to come…

Underlying damageUnderlying damage due to water ingress into brittle and cracked sealsdue to water ingress into brittle and cracked seals

Resultant damages

!!!??

Caledon River-Wepener

CORRECTIVE MEASURES

Improved infrastructure delivery management

Alignment of infrastructure plans to strategic plans and to FSGDP

Participatory approach

Forward planning

Infrastructure delivery improvement plans implementation

Improved monitoring & continuous progress reporting

Construction industry development board

Populating technical capacity

PROVINCIAL CONDITIONAL GRANTS

(PIG)

19.337.5

46.0

86.0 74.9

183.4

328.7

360.2

0

50

100

150

200

250

300

350

400

R m

illi

on

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

Financial Year

PROVINCIAL CONDITIONAL GRANT: TRENDS

FREE STATE OWN GRANTS

(OIG)

85.0 95.0111.2 108.7 131.3

213.8

542.3

811.6

0

100

200

300

400

500

600

700

800

900

R m

illion

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

Financial Year

FREE STATE OWN GRANT: TRENDS

FLOOD GRANTS

60.0

23.2

2.85.6

- - -

0

10

20

30

40

50

60

R m

illion

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

Financial Year

FLOOD FUNDS: TRENDS

FLOOD DAMAGE FINANCIAL IMPLICATIONS

•TOTAL COST R 539, 682 M

This cost includes repairs to:

•STRUCTURES,•REGRAVELLING•PATCHING AND MILLING•CLEANING OF CULVERTS•VEGETATION CONTROL

SUGGESTED SOLUTIONS

– Continuous engagement for additional funding•Treasury •National•PCC

– Emergency solutions•Reduction of minimum speed limit to 60 km/h

•Convert paved roads to gravel roads

SUGGESTED SOLUTIONS

–Continuous engagement for additional funding

•Treasury •National•PCC

–Emergency solutions•Reduction of maximum speed limit to 60 km/h•Convert paved roads to gravel roads

SPENDING PATTERNS FOR 2005/06

Budget ExpenditureUnder

spending

Equitable share 644 649 (9)

FS Conditional Grant (OIG)

172 131 41

Prov Grant (PIG) 83 75 8

Flood Grant 0 0 0

Total 899 855 40

DEPARTMENTAL PERFORMANCE I.T.O. CAPITAL EXPENDITURE

Budget ExpenditureUnder

spending

Current Compensation

357 349 8

Current Goods and Services

319 337 (18)

Transfer 4 4 0

Capital 216 166 50

Total 896 855 40

ROLL-OVER REQUEST

Upgrade of Sederhouse R 0,739m Upgrading of Registration Offices: Reitz R 0,328m Constr Jagersfontein - Trompsburg Road R 44,570m Regravel in Lejweleputswa R 0,045m Roadsign Contract R 0,093m Tourism Route in Qwaqwa R 0,260m Constr of Pallisade & road to Selosesha R 0,427m R&R Odendaalsrus – Bothaville R 1,858m Reconstruct A54 R 2,761m

WE THANK YOU!