SOUTH AFRICAN CITIES NETWORK
FINANCING CITY INFRASTRUCTURE
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Presentation:
Mr Y. Ramoogur
Mr R. Gangadeen
MUNICIPAL COUNCIL OF PORT-LOUIS
MAURITIUS
Republic of Mauritius
 A small island in Indian Ocean
 Formerly it was a British colony
 Independent since 1968
 Acceded to status of republic in 1992
 A democratic island state
 Population - around 1.2 million
 Official language: English
 Spoken language:French,Creole, other oriental languages
Local Government in Mauritius
 Governed by Local Government Act 1989 and Local Govt
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Act 2003 partly proclaimed
Municipal and District Council elections are held every 5
years
Ministry of Local Government which monitors and controls
Local Authorities in Mauritius
Local authorities are autonomous and Ministry acting as a
facilitator
Decentralised services provided by local authorities
Local Authorities
 MUNICIPAL COUNCILS
 5 municipal councils for urban areas
 -Municipal Council of Port Louis
 - Municipal Council of Beau Bassin/Rose Hill
 -Municipal Council of Curepipe
 - Municipal Council of Quatre Bornes
 - Municipal Council of Vacoas/ Phoenix
24 elected Councillors for each Municipal Council except
Port Louis having 30 Councillors
District Councils
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4 District Councils in Mauritius , especially rural areas
Pamplemousses /Riviere du Rempart District Council
Moka/Flacq District Council
Grand Port/Savanne District Council
Black River District Council
36 elected Councillors for each D.C.
Municipal Council of Port Louis
 Port Louis is the capital city of Mauritius
 Only port in Mauritius
 Strategic position in the Indian Ocean
 Many sea routes pass through Port Louis
 Major economic activities (banking,shipping,Central Bank)
take place in Port Louis
 It is also a historical, commercial and touristic city
 National Assembly , Prime Minister’s Office and most of the
Ministries are found in Port Louis
Meetings and proceedings
 All decisions are taken at committee level
 Standing Committees (quorum 5 members)
Finance committee
Works Committee
Public Health Committee
Welfare Committee
Committee of the Whole Council ( quorum 13 members )
 Four Quarterly council meetings also held every year
 Council may set up other committees to dispense its business
 Permits and Business Monitoring Committee set up by the Business Facilitation
Act 2006
Port Louis and its Population
 1990 population was 133,073
 2000 population dropped to 127,855
 2011 Estimated population- around 128,000
 Fall in population since 1990 explained by lack of space with
no possibility of expansion
 Rapid development of habitations outside the boundaries of
Port Louis
 City centre – mainly used as commercial, economic and
touristic activities
 A city of different cultures
Port Louis, a metropolitan city
 Daily roving population and visitors – more than 100,000 .
 Various governmental services are offered in Port Louis
 Port Louis obliged to meet people’s demand in addition to its
existing population
Port Louis and Municipal
Infrastructures
 Central Market
 Other markets and fairs
 A city for sports- ( volley ball, basket ball, handball, etc ...)
 Social and Community and day care centres
 Football grounds with lighting facilities and seating
accommodation
 swimming pools
Departments of the Council
 Chief Executive Department
 Welfare
 Works
 Health and Environment
 Planning
 Financial Controller’s
 Library
 Parks and Gardens
Duties and responsibilities of the
council
 To provide good living and working environment
 Provision of key services
 Promote welfare of citizens
 Ensure social and economic progress
Services offered to both inhabitants and roving population
and visitors, tourists etc..
Main services offered
 Collection and disposal of solid waste
 Lighting of highways /roads and public places
 Construction,, maintenance and cleaning of public infrastructures
such as roads, storm drains, canals, pavements, bridges, riverbeds
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 Resurfacing of roads
 Provision and control of public markets and fairs as well as places of
public auction
Main services offered( continued)
 Provision, management and maintenance of social amenities such as social
centres, public libraries, theatres, nurseries for infants, kindergartens ,
cemeteries, cremation grounds
 Issue of building/development permits (commercial, industrial, professional
activities)
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Control of parking spaces
Control of movement of street hawkers
Control and maintenance of bus stations
Organization of welfare, sports and leisures and artistic/cultural activities
Any undertaking approved by the Minister of Local Government
Programme-Based Budget
 All services are financed by recurrent budget
 The programme-based budget
 Funds are earmarked based on programmes/outcome
 Result oriented
 Resources earmarked accordingly
PBB- 5 programmes
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Since the year 2011, the programme-based budget used and funds
are provided with respect programmes. These programmes are:
Programme 1: Policy and Management
Programme 2: Promotion and maintenance of sound and healthy
condition in the city
Programme 3: Provision and maintenance of community-based
infrastructure
Programme 4: Promotion of sports, welfare, education and cultural
activities
Programme 5: Managing development within the Council’s
boundaries
PBB 2011
Total budget – Rs 655 million (approx. R163.5 million)
Sources of income:
Rs million
 General rates
 Tenant’s Tax
 Trade fees
 Market fees
 Other Income
 Grants-in-Aid
Total
96
68
60
22
44
365
655
Grant in Aid
Central Government finance local authorities by way of grant in aid
 Represents about 50% to 55 % of total recurrent revenue
 However as a result of recent global economic crisis , grant
in aid has been reduced
 Government policy is to reduce further the grant in aid in
the future
 Council to identify alternative source of finance
Council’s own revenue
Council’s own revenue below represents about 45% of total budget
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General rates
Tenant’s Tax
Trade fees
Market fees
Interest on investment
Rental
Bus toll
Advertisement and publicity fees
Other Income
Financing Municipal Infrastructure
 Council’s capital expenditure is financed by General Fund,
including Budgetary Surpluses, and capital grants from the
Central Government known as the Local Infrastructure
Fund.
 Since financial year 2009, the Central Government has
granted Rs 100 million (nearly R25 million) to each local
authority including the Municipal Council of Port Louis.
Local Infrastructure Fund
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Rs’million
Construction of roads and drains
30
Multipurpose complex at Residence Vallijee
11
Pont de Paris fair
11
Abercrombie Market/ Fair
19
Minor Capital Projects
10
Other upgrading works, incl. Sports grounds
19
Total
100
(Rs 100m=R25m approx.)
Projects financed by LIF and Municipal
Funds
 Reconstruction of Abercombie market/fair
Local Infrasructure Fund = Rs 34 m
Municipal Fund
=Rs 20 m
 Multipurpose complex at Residence Vallijee
Local Infrasructure Fund = Rs 11,462,000
Municipal Fund
=Rs 331,500
Project financed by grant from Central
Government and Council’s contribution
 Renovation of Port Louis Theatre =Rs 50 million
(appr. R12.5 million)
 Council injected Rs 1 million ( appr. R250,000 )
Can Government provide more funds
for infrastructures?
 If Government’s budget allows. In the past few years ,it has
various projects.
 In case of national heritage, Central Government funds can
be made available
 In the context of ‘save energy’ programme of the
Government, street lighting using solar energy should be
encouraged
 Other projects of public interest may attract Government
financing
Advantages of Government
Infrastructure finance
 Such finances are grants which are not refundable
 They often represent huge amounts which allows projects to
be easily realised
 The Municipal Council needs not contract bank loans and
hence avoid interest payment
 When Government provides funds for targeted and priority
projects , the municipal council can use its own funds to
realise other additional projects
Disadvantages of Government
Infrastructure finance
 The Government can impose its priorities and conditions
 Government priority may probably not be Council’s priority
Projects financed by budgetary
surpluses
 Financial year 2008/09 = 15 projects realised for value Rs
23.2 million
 Half year ended 31 Dec 2009=6 projects realised for value
Rs 9.8 million
 F/Y 2010 = Surplus realised Rs 35 million. More capital
projects may be realised by 90% of above sum.
 Given the surplus realised, the municipal council can sustain
borrowings to realise income generating projects
Advantage of using municipal funds
 Council can decide its priorities.
 No conditions attached
 Projects can be realised in short delays
 No interest payment applies
Borrowings
 Financing infrastructures from borrowings have often
conditions attached (guaranties ) and not in the interest of
the council
 High interest payment may apply
A New Concept
The Way Forward
 Funding through C.S.R ( Corporate Social Responsibility )
by Private Firms and Companies
 A big plus (+) towards financing Municipal Infrastructure
-Social and Sports projects
-Poverty alleviation / Economic empowerment of the poor
Conclusion
 It is in the interest of the municipal council to get financial
support from Central Goverment
 Central Government and municipal council partnership will
always be to the advantage of the citizens
 Projects requiring massive investments , such as renovation
of the Port Louis theatre, being a national heritage, could not
have been possible without Government financial support
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 Thank you.
From Mr Rajcoomar Gangadeen, Financial Controller
MrYougraj Ramoogur, Engg Assistant
Municipal Council of Port Louis, Republic of Mauritius
SACN 25 May 2011
Worshop on financing of city government services in Southern Africa