Free State Public Works, Roads and Transport
NCOP Meeting
28 NOVEMBER 2006
1
CONTENTS
•
•
•
•
•
•
•
•
Bridging the first and the second economy
Extended Public Works Program
Integrated Sustainable Rural Development
Contribution to poverty alleviation and job
creation
Empowerment through Procurement
Procedures
Projects currently undertaken
Challenges
Way forward
2
Bridging the first and the second
economy
•
•
•
•
•
•
State of the Nation Address
State of the Province address
Our Budget Speech
2014 Millennium Goals
2010 Intervention
EPWP
3
State of the Nation Address
“We cannot allow.” that government departments
become an obstacle to the achievement of the goal of a
better life for all because of insufficient attention to the
critical issue of effective and speedy delivery of
services.”
“Integration of planning and implementation across the
government spheres is therefore one of the prime areas
of focus in our programme …..”
President Thabo Mbeki – State of the Nation Address 2006
4
State of the Province address
•
•
•
•
Creation of 50 000 jobs through EPWP
Halving poverty and un-employment
Transfer of skills
Targeted procurement processes
5
Our Budget Speech
• Accelerated infrastructure delivery
• Targeted procurement
• Transformation of the construction and
property industry
• Nurturing of the incubator strategy
• Empowerment of youth, women,
disabled, etc.
6
ISRDP and Contribution to poverty
alleviation and job creation
• Makwane access road – 27 learnerships and 1800 jobs
created – R64 million
• Road infrastructure
• Selosesha – R15 million project
• Trompsburg – Jagersfontein – R78 million
• Fezile Dabi Projects
–
–
–
–
–
–
Sasolburg Interchange
N1 – Parys: 20 km
N1 – Sasolburg Currently out on tender: 24 km
Vredefort Dome road: 30 km out on tender
Koppies Dam access road 8 km out on tender
Heilbron – Petrus Steyn – Reitz : Tender Closed 3 Nov 06 : First
Phase R149 million
7
Rationale for roads upgrading
and construction
• Access to Bio-Fuel plants (Economic corridor)
and linking Free State and Vereniging /
Gauteng
• Promotion of Tourism
• Promotion of Freight Corridors
• Linkage of North-West and the Eastern Free
State
• Promote mobility, accessibility and future
growth
• Access to the Heritage site
8
102%
Key Highlights in Sep 06
Mid-term Report
All Provinces
100%
Free State
20%
Average
Spent
Personnel
Educ Cap
Health Cap
47%
45%
39%
45%
44%
54%
45%
Capital
32%
25%
40%
38%
45%
45%
48%
48%
43%
45%
47%
60%
65%
80%
55%
55%
PWR&T
WR&T Cap Own Revenue
9
2006/07 Departmental Budget
R1 066 323.00
Roads
Budget Dis tribution 06/07
PIG
R 183.4 m
17%
OIG
R 213.8 m
20%
Traffic
Own
Revenue
R 31.8 m
3%
Equitable
Share
R 637.3 m
60%
Admin, Works,
Transport, EPWP
10
2006/07 Budget Issues
State of the Budget
Budget Distribution
Roads
R 515.4 m
49%
Transport
R 19.9 m
2%
Works
R 255.7 m
24%
Admin
R 130.5 m
12%
CBPWP
R 14.2 m
1%
Traffic
R 130.6 m
12%
11
Actual Monthly Departmental Expenditure and
Projected for 2006/07
TOTAL OVER EXPENDITURE = R 261 million
180
Till 20
Nov 06
160
Actual
Projected
164
152
139
140
132
133
118
Rand Millon
120
113
96
93
100
79
60
72
72
80
50
40
20
0
'Apr06
'May06
'Jun06
'Jul06
'Aug06
'Sep06
'Oct06
'Nov06
'Dec06
'Jan06
'Feb06
'Mar06
12
MAIN INDICATORS: Economic Classification
Actual Expenditure
300
Actual Sep05
Actual Sep06
Actual Oct06
213
Rand Millon
250
200
169
179
220
157
153
165
150
123
85
100
50
2
2
2
0
Comp
Goods&S
Transf
Capital
13
Spending Outcomes and budget
06/07
Till Sep06
Till Oct06
Projected 06
Budget 06
719
800
700
515
500
3
5
16
14
0
0
1
144
130
274
14
18
30
19
100
70
80
200
117
147
134
131
300
196
284
257
400
61
75
Rand Million
600
EPWP
Theft&L
0
Admin
Works
Roads
Transp
Traff
14
Actual Monthly Roads Expenditure till
31 October 2006 and Projected for
2006/07
120
Actual
Projected
110
102
100
88
80
Rand Millon
80
79
64
60
35
40
43
43
'Aug06
'Sep06
35
29
20
12
0
'Apr06
'May06
'Jun06
'Jul06
'Oct06
'Nov06
'Dec06
'Jan06
'Feb06
'Mar06
15
Empowerment through
Procurement Procedures
• Unbundling of contracts to ensure that all
participate despite the CIDB grading
limitation.
• Maintenance and upgrading contracts
targeted for small contractors.
• Learnership contracts: Makwane road,
Monontsa Pass in Qwaqwa, Heuweltop in
Tsetseng and Route 4 in Tsetseng. The last 3
projects are yet to commence (Total cost for
these 3 is R147 million)
16
Promotion and nurturing of BEE’s
• Shortened payment cycle: Pay in 7 days on correct
invoice.
• Appointment of mentors for SMME projects:
Engineers or project managers.
• Approval of sessions and reduction of guarantees.
• Monthly project meetings and continuous
monitoring.
• Contractors in the incubator programme.
• Sustainable and continuous projects
• Targeted procurement
17
Massification of EPWP
• Various projects have been identified for
massification and youth development
• Palisade fencing projects.
• Grass cutting and road maintenance
• Possible waste management projects
• Property maintenance projects
18
Challenges
• Ownership and re-determination of roads
between provincial and local e.g. through
Parys is designated as a street instead of a
provincial road. Proclamation to be made.
• Nature reserves and resorts: Jim Fouche in
Oranjeville and Koppies dam nature reserve
leased to private sector at not market related
price. Department is currently revisiting the
processes.
• CIDB – 845 of the contractors are at the entry
level and at grade 9 are only 2
19
Challenges (Continue)
• Planning & Co-ordination and monitoring
not adequate
• Project Management still lacking
• Consultants not playing ball.
• Identify appropriate staff, engineers,
project and financial managers
• Material supplies still not transformed
• Financial Institutions not always flexible
• Transformation of the property and
construction sectors
20
In Year -Budget Pressures
• Floods
• Material supplies
• Transport Infrastructure
• Law enforcement
• Maintenance
• Accommodation
• Construction material
• Accelerated infrastructure delivery
• 2010 Infrastructure
• CIDB
• Taxi recapitalization
21
Interventions and corrective
measures
•
•
•
•
•
•
•
•
•
•
Planning procedures
Project Management
Monitoring
Consultants
Client departments
Appropriate staff for infrastructure delivery
Changed planning patterns
Fast-track payments
Streamline operations
Batho Pele: Testing stations and Revenue
Authorities
22
Learnerships
Motheo & Xhariep
23
Gravel Roads
Road S 1521 Thaba Nchu
Regraveled in Xhariep
24
Road repair
Extensive Blading
Process
Patch work
learnerships
Repair and cleaning
of rest areas
Rehabilitation
by milling
Cleaning of storm
water drainage
25
Bridges
Repair
bridge
approach
and remove
debris
Sterkspruit bridge
26
Makwane access road
bridge structure
27
MAKWANE-S1499
before and after
28
MAKWANE: S1500
before
29
MAKWANE: S1500
Construction
30
MAKWANE: S1500
After
31
PARYS N1
32
33
SELOSHESHA
34
ZASTRON BRIDGE:
Before and after
35
BRIDGE OVER THE
CALEDON RIVER AT
WEPENER
36
FLOOD REPAIR:
Bloemfontein-Zastron
37
TROMPSBURGJAGERSFONTEIN
38
Conditional Grant Spending
Business cases
• Infrastructure Plan
• Revisions to the maintenance budget to provide
for flood damage repair work;
Road S708 near Ladybrand
Road S 1521 Thaba Nchu
39
WORKS AS AN AGENT FOR CLIENT
DEPARTMENTS
CLIENT DEPARTMENTS
40
SEDERHOF
41
Clinic
Construction
42
Sectoral Issues
Works
•
•
•
•
•
Service Level Agreements with client
departments;
Payments made to contractors by PWR&T
or Client departments
Budgets payment as an advance or as
claimed by PWR&T
Reporting requirements of client or agent.
Reconciliation of data with client
departments
43
Sectoral Issues
Works
Works Project Spending 30 Sep 06
65%
50
77
30%
60
21%
3
5
15
20
12
35%
26
40
25
47%
10
R
80
87
102%
100
85
120
118
140
0
Education
Health
Environment
Client Departments
SACS&T
Budget
PWR&T
SocDev
Used
44
TOTAL EXPENDITURE
DEPARTMENT
BUDGET
EXPENDITURE
%
HEALTH
R84 849 000
R86 897 006
102.4%
EDUCATION
R117 695 000
R76 732 997
65.2%
ENVIRONMENTAL
AFFAIRS
R10 000 000
R3 483 993
34.8%
SPORT ARTS &
CULTURE
R26 000 000
R12 257 737
47.1%
SOCIAL WELFARE
R24 758 000
R5 159 770
20.8%
45
HEALTH PROJECTS
TOWN
Bloemfontein
Kroonstad
PROJECT
Pelonomi hosp Block E. Upgrade of
ICU
Boitumelo hosp contract 3 pharmacy, radiology
and theatres Block D
EXPEND
TIME PROG
COMMENTS
Temporary ICU to be
completed before
project can tender
R3.98m
89
Kroonstad
Boitumelo hosp Contract 4:
Maternity
R 1,96m
44
Kroonstad
Boitumelo hosp Contract 7:
Mechanical
infrastructure
R5,44m
67
87
Will be completed by
December 2006
Contractor has
requested to
5 complete project with
cessions. Project still
behind schedule
37
Will be completed
during June 2007
46
HEALTH PROJECTS
TOWN
PROJECT
EXPEND
Bloemfontein
Pelonomi hospital upgrade Pharmacy
block I and Fence
Upgrading
R 0,92m
13
Kroonstad
Boiutmelo hosp contract 8 Electrical
Infrastructure
R 6,19m
88
78
To be completed by
end November 2006
Jagersfontein
Diamant Hospital
Upgrading
R 3,47m
33
12
Expected completion
June 2008
Qwa-Qwa
E Ross Hospital
final phase of
upgrading
R 10.23m
TIME PROG
22
COMMENTS
Busy with
2 demolitions. Internal
work 50%
Expected
completion
27
December 2009
47
HEALTH PROJECTS
PRO
G
TOWN
PROJECT
EXPEND
Harrismith
Thebe hosp final
phase ofupgrading
R 10,63m
27
27
Expected completion
November 2008
Heilbron
Heilbron Tokollo
hosp final phase of
upgrading
R 9,24m
38
24
Expected completion
February 2008
Bloemfontein
National Hospital Paliative Care Unit
Bloemfontein
Pelonomi Hospital:
Block P New
Ortopedic workshop
R0, 75m
R 1,87m
TIME
COMMENTS
143
In process to address
76 problems which
caused delays
129
Contractor was
delayed by additional
67 requests from client
dept. Work is neat
and progress fair.
48
HEALTH PROJECTS
TOWN
PROJECT
Dealesville
New Community
Health Care Center
Odendaalsrus
Thusanong First
phase of upgrading Maternity, Theatre
complex and CSSD
Virginia
Katleho Hospital phase 1 of upgrade new maternity ward
Thaba Nchu
Moroka - MDR
Dining Hall
EXPEND
TIME
PROG
COMMENTS
133
Contractor a banded
site. Legal advise
95
sought. Discussions
with SARS
R 3,68m
66
Progress improved.
32 To be completed
August 2007.
R 0,57m
88
96
R 0,17m
117
Will be completed
ahead of schedule
Work came to a
standstill - cash flow
problems. Alternative
7
quotations received
for completion of
project.
49
HEALTH PROJECTS
TOWN
PROJECT
Bloemfontein
Pelonomi hosp Mankovs Staff
accommodation
Contract A
Bloemfontein
Pelonomi hosp Mankovs Staff
accommodation
Contract B
EXPEND
R 1,36m
R 0,97m
TIME
25
25
PRO
G
COMMENTS
Initial minor
15 problems being
managed by architect
Initial minor
problems being
15
managed by architect
50
ENVIRONMENTAL AFFAIRS PROJECTS
TOWN
PROJECT
Philip Sanders Resort
Bloemfontein
First Phase
EXPEND
TIME PROG
COMMENTS
R 0,52m
Project started.
Expected completion
November 2006
Project unbundled in
seven projects.
Tenders to be called
for in November 2006
Bloemfontein
Philip Sanders Resort
2ND Phase
R0, 39m
Gariep Dam
Gariep Dam Phase 2
R 0,16m
50
31
Expected completion
September 2007
51
SOCIAL WELFARE PROJECTS
TOWN
PROJECT
EXPEND
Bloemfontein
Tshiriletsong
Place of
Safety
R0, 16m
Documentation
completed. Wait for
client confirmation to
proceed
Welkom
One stop
service
center
R0,004m
Mine buildings need to
be purchased
Thabo
Mofutsany
ana
One stop
secure
care
center
R 2,46m
Documentation
completed. Wait for
client confirmation to
proceed
TIME
PROG
COMMENTS
52
SOCIAL WELFARE PROJECTS
TOWN
PROJECT
Thabo
Mofutsanyana
Victim Support
Center
Bloemfontein
Monument Place of
Safety Secure Care
EXPEND
TIME
PROG
COMMENTS
Documentation
will be completed
20 Feb 2007
R 2,39m
100
Contractor asked
for extension of
98
time until January
2007
53
REVENUE
54
REVENUE BUDGET = R251m
PROJECTION = R245m
Revenue collected per month on 30 September 06
35
'05/06
'06/07
21
21
12
17
Sep
21
21
18
19
Aug
21
17
22
19
20
15
10
23
16
21
16
22
20
22
14
R million
25
32
24
25
24
30
5
0
Apr
May
Jun
Jul
Oct
Nov
Dec
Jan
Feb
Mar
55
Revenue Classifications
•
•
•
•
•
•
Motor licences
Sales of goods and services non-capital
Fines, penalties and forfeitures
Interest, dividends and rent on land
Sale of capital assets
Financial Transactions in assets and
liabilities
56
REVENUE: 6 month target = R125.7m
6 month actual = R118.3m
Projected vs. Expenditure till 30 September 06
100
90
95.3
Projected
Actual
85.0
80
Rand Million
70
60
50
40
23.3 23.6
30
20
6.4 7.4
10
0.1
0.8 1.0
0.0 1.2
0
VehicleLic
Sales
Fines
Inerest&Rent
Sales Cap
Fin Trans
57
REVENUE CLASSIFICATION
CLASSIFICATION
MOTOR VEHICLE
LICENCES TAX
SALE
GOODS&SERV
PRODUCED BY
DEPT
BUDGET
ACTUAL
30Sep 06
-190,581,000
-84,961,300
45%
DRIVERS LICENCE APPLICATION FEES
-8,147,000
-4,430,297
54%
LEARNER LICENCE APPLICATION FEES
-4,000,000
-2,876,594
72%
CONV DRIVERS LICENCE - CARD TYPE
-4,000,000
-2,571,800
64%
ABNORMAL LOADS LICENCES
-3,473,000
-2,409,635
69%
RENTAL:OFFICE BUILDINGS
-8,010,000
-1,540,584
19%
TESTING ROAD WORTHY FEES
-2,000,000
-1,188,025
59%
RENTAL:PARKING COVERED&OPEN
-2,250,000
-1,185,764
53%
SPECIAL LICENCES NUMBERS
-2,000,000
-1,124,884
56%
DUPLICATE DOCUMENTS LICENCES
-1,500,000
-1,097,721
73%
PUBLIC DRIVERS PERMITS
-1,400,000
-879,483
63%
-999,000
-842,996
84%
LEARNERS CERTIFICATE
-1,300,000
-782,135
60%
ROAD WORTHY CERTIFICATE
-1,000,000
-493,109
49%
SERV REND: COMMISSION INSURANCE
-830,000
-411,373
50%
MOTOR VEHICLE REGS PERSONAL
-800,000
-400,271
50%
ACTIVITIES ON PUBLIC ROADS FEES
-400,000
-386,512
97%
DRIVERS LICENCE CERTIFICATE
-500,000
-176,460
35%
SALES:TENDER DOCUMENTS
-180,000
-168,619
94%
-2,000,000
-155,867
8%
-400,000
-155,566
39%
ITEM
MOTORVEHICLE LICENCES TAX
TEMPORARY SPECIAL PERMIT
RENEWAL DRIVERS LICENCES
MOTOR VEHICLE REGIS SPECIAL
% Collected
58
REVENUE: Classification (Continue)
ITEM
CLASSIFICATION
FINES
SALES OF LAND &
SUBSOIL ASSETS
REVENUE:
FINANCIAL ASSETS
COURT FINES
BUDGET
ACTUAL
30Sep 06
% Collected
-11,746,000
-6,324,521
54%
IMPOUND FEES
-1,000,000
-1,075,270
108%
SALES OF LAND
-1,500,000
-1,016,155
68%
REV:FA:REC OF PREV YEARS' EXP
-
-649,973
REV:FA:REC:PRV SEC:CON DEPT DEBT
-
-366,267
REV:FA:CASH SURPLUSES
-
-78,355
REV:FA:REC:PRIV S:TRANS-RES-WORK
-
-48,314
REV:FA:STALE CHEQUES
-
-11,565
REV:FA:UNALLOCATED CREDITS
-
-361
REC:FA:REC:PRIV SEC:STAFF DEBT
-
-7
59
THANK YOU
60