Statement by the Executive Mayor, Alderman
Patricia de Lille
City spends 92.9% of its largest capital budget in history
Highlights:
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Capital record spend of R5.78 billion
Roads and Transport R2.5 billion
Utilities R2.0 billion
Human Settlements R570 million
Repairs and Maintenance record spend of R2.6 billion
Record purchase orders of R11.8 billion
The City of Cape Town has, for the financial year 2012/2013 spent a
record R5.78 billion, comprising 92.9% of its R6.22 billion capital budget,
demonstrating once again why Cape Town stands head and shoulders
above other municipalities with regards to service provision and financial
management.
Capital expenditure makes a real and fundamental difference to people’s
lives with the delivery of houses, roads, clinics and basic infrastructure to
ensure that the lights are on and the water is running for our residents.
This capital spend is R1.54 billion more than the previous year’s
expenditure.
The capital spend strongly supported both investment in infrastructure for
economic growth and for services assisting the poor and the vulnerable.
This year, the City’s pro poor spend for both capital and operating
expenditure stands at 64%. This percentage is derived from the 57% of
the City’s budget which is spent on direct service provision to poor
households combined with substantive rates rebates, a comprehensive
free basket of services and income forgone from the provision of
extensive indigent relief.
As a result of the City’s performance on capital expenditure, the number
of job opportunities on the Expanded Public Works Programme has
increased significantly. This has resulted in the creation of 37 000 work
opportunities for those most in need of work, more than any other City in
South Africa.
In addition to creating work opportunities and helping to directly combat
poverty, the success of our EPWP programme has resulted in a direct
improvement in the rollout of services.
Another noteworthy achievement is the Capital Implementation rate of
95% for the City’s Urban Settlement Development Grant (USDG) funding.
USDG funds are primarily spent on creating integrated, sustainable
human settlements and on upgrading the City’s urban environment with a
particular focus on informal settlements.
The high spend rate means that the City of Cape Town will not have to
return any of our USDG allocation to National Treasury as all the funds
have been contractually committed.
This City’s performance in terms of our high capital expenditure arose out
of a targeted strategy, under the direction of the Executive Mayor, who
has demanded improvements to our systems to ensure a high level of
spend.
These include improvements in:
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Supply Chain Management processes, including Tender Demand
Management
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Turnaround time for tender appeals
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Extensive monthly monitoring systems
•
Project Management training
•
Improved due-diligence processes
The SCM Department issued purchase orders of R11.86 billion for goods
and services during the year, with a BBBEE spend of 77.66%
One of the key areas of expenditure that differentiates the City of Cape
Town from other South African municipalities is that this Metro prioritises
repairs and maintenance.
This equates to a visible difference in Cape Town in terms of, primarily,
roads and utilities infrastructure. In this regard, we spent a record R2.6
billion for the 2012/2013 financial year.
Amongst the highlights of the City’s capital spend are a range of
substantive investments in critical areas, most specifically as they relate
to building an opportunity city and improving the lived reality of all
citizens.
Such investments include R1.37 billion on IRT operations and R1.23
billion on electricity provision as well as significant investments in
broadband infrastructure and the provision of housing.
Major capital projects include:
DIRECTORATE
CITY HEALTH
CITY HEALTH
COMMUNITY
SERVICES
COMMUNITY
SERVICES
CORPORATE
SERVICES
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
HUMAN
SETTLEMENTS
SAFETY & SECURITY
SAFETY & SECURITY
TRANSPORT,
ROADS &
STORMWATER
TRANSPORT,
ROADS &
STORMWATER
TRANSPORT,
ROADS &
STORMWATER
PROJECT
New health facility in
Eerste River
Luvuyo Clinic extensions
for ARV services
Imizamo Yethu sports
complex
Masibambane Hall
additions and alterations
Broadband project
SPEND IN RANDS
1 681 703
Happy Valley Phase 2
33 460 000
Ocean View
5 883 246
Kanonkop Atlantis (Ext.
12) Phase 1
Heideveld Duinefontein
11 495 120
Scottsdene – new CRU
6 600 000
Pelican Park
20 893 342
Public Housing Projects
7 543 900
Scottsdene Housing
Project
New Melkbosstrand Fire
Station
New and replacement
emergency response
vehicles
IRT Phase 1
7 543 900
Mitchell’s Plain CBD
Transport Interchange
11 000 000
Lentegeur Station
Transport Interchange
15 000 000
2 775 196
2 689 698
2 658 468
72 159 404
11 644 342
4 764 814
20 829 4098
590 000 000
The capital spend, coupled with our financial responsibility, as
demonstrated by our 8th unqualified audit the previous year and the
highest credit rating available to local government, shows that this
government has the ability to spend to improve the lives of all residents
of this city.
Finally, I would like to convey my appreciation to the City of Cape Town’s
Executive Management team who are the driving force behind the City’s
performance.
This is the first full financial year under our diverse new team’s leadership
and their collective and individual capability is clearly evident in the City’s
92.9% spend.
To Kevin Jacoby, Tshidi Mayimele-Hashatse, Melissa Whitehead, Richard
Bosman, Zandile Mahlangu-Mathibela, Japie Hugo, Anton Groenewald,
Gerhard Ras, Seth Maqetuka, Gisela Kaiser, Ivan Bromfield and Lokiwe
Mtwazi, my sincere thanks.