PUBLIC TRANSPORT AND SYSTEMS FUND (PTIF)

Department of

Transport

2006 DORA 1ST QUARTER REPORT TO NCOP SELECT COMMITTEE ON

FINANCE13 OCTOBER 2006

Contents

Background Context PTIF Requirements PTIF Projects Role of DOT Breakdown Monitoring And Evaluation Responding to challenges Concluding Remarks

Department of

Transport

Background

Established March 2005 as public transport conditional grant. Focus on infrastructure investments to to prioritise and ensure

improved priority and better operations for public transport and NMT.

2005/06 – R241,7m; 2006/07 – R700m*; 2007/08 – R1800m; 2008/09 – 1000m, TOTAL = R3.74bn

Beneficiaries are municipalities and service delivery agencies. With regard to local government funds are transferred in terms

of DORA mechanisms.* R700m = R519 (for municipalities) + R180m (SARCC) + R1m

(CBRTA)

Department of

Transport

Context

Main purpose of the fund: to improve public transport infrastructure and systems in the country.

In the earlier years leading to year 2010 the focus will be to fund projects that have an impact on the hosting of the WC 2010.

For 2005/06 and 2006/07 allocation was based on potential host venue cities in terms of the WC Bid Book.

Ultimate aim is to cover the whole country with regard to transport improvements/ investments.

Department of

Transport

Key Requirements for PTIF Funding

Projects should– prioritise public transport,– satisfy both long term mobility (legacy) and event specific

mobility requirements,– have continuity from planning to execution,– be executed in accordance with govt. procurement and

related requirements,– be based on local IDPs and ITPs, addressing community

access and mobility needs, and– be practical and implementable ahead of 2010.

PTIF Projects

Request areas predominantly road and rail public transport and non-motorised transport

Project types include planning, physical infrastructure and systems

Planning includes transport planning, detailed project plans and designs

Infrastructure and systems projects include:Public transport road infrastructure Public transport interchange facilities Rail upgrades Inter-modal facilities HOV lanesBRT systems

ITS infrastructure and systemsNMT infrastructure Inner-city mobility systems Call centre systemsPublic transport vehiclesAirport- City links

Department of

Transport

Role of DOT

Coordination. Draft and co-sign MOUs based on business plans and/or priority

statements – to facilitate funding transfers. Provide technical support – planning and delivery management. Monitoring and evaluation. Reporting in terms of DORA requirements. Guide implementation and prioritisation. Identify and where possible remove barriers

Department of

Transport

Allocation Breakdown (1)

Beneficiary Total Amt. Paid to date

Nelson Mandela Bay Municipality

69m 30m

Mangaung Local Municipality 29.5m 19m

Ekurhuleni Metropolitan Municipality

27.7m 0**

City of Johannesburg 184m 60m

City of Tshwane 11m 11m

Department of

Transport

Allocation Breakdown (2)

Beneficiary Total Amt. Paid to date

West Rand District Municipality

1.5m 1.5m

eThekwini Metropolitan Municipality

11.8m 11.8m

Polokwane Local Municipality 10.5m 10.5m

Mbombela Local Municipality 0.83m 0.83m

Sol Plaatjie Local Municipality 1.5m 0**

Department of

Transport

Allocation Breakdown (3)

Beneficiary Total Amt. Paid to date

Potchefstroom Local Municipality

1m 0**

City of Matlosana (Klerksdorp)

30.5m 0**

City of Cape Town 120m 40m

Stellenbosch Local Municipality

20m 10m

** municipalities that have not signed MOU’s

Department of

Transport

Monitoring and Evaluation

A Monitoring and Evaluation team has been appointed. Key findings so far:

Serious capacity challenges at local level.Cumbersome procurement processes.Need for dedicated technical support.General lack of understanding of PTIF spending and

reporting requirementsIncreasing demand in the civil and construction industries

likely to increase costs and ‘choke up’ these industries; as all cities earnestly start with implementation programmes.

Department of

Transport

Responding to challenges

In and attempt to address identified challenges the DOT will:Ensure everybody sign the MOU’s and abide thereby.Appoint a team of project and programme managers to

provide technical support to municipalities – to ensure adequate planning and proper delivery management.

Drive the implementation of the Transport Action Plan that incorporates local transport plans in preparation for WC 2010.

Develop an Inter-sphere Implementation Framework Use a “hands on” intervention approachExpand role of provinces in supporting municipalities

Concluding Remarks

The PTIF came at the right time when the country prepares for hosting the WC 2010.

Even though there were ‘teething problems’ the Department has managed to address most of them and the fund is being managed properly. (may need rephrasing)

Cannot over-emphasise that projects must begin, and funds must be spent

Oversight to beneficiaries, and appropriate interventions, where necessary, remain key determining factors for success.

Thank You

Department of

Transport