Post on 15-Jan-2016
description
South Africa’sSouth Africa’sMunicipal Infrastructure Municipal Infrastructure
Investment UnitInvestment Unit
Operations, Budget
& Future Direction
Ms. Gugu Moloi
MIIU CEO
Operational OverviewOperational Overview
The MIIUThe MIIU
A government intervention to: Facilitate private sector investment in
municipal services – on a controlled, sustainable basis
Help create a market in MSP services to provide advice to local governments
The Project Preparation Unit:The Project Preparation Unit:How Does it Operate?How Does it Operate?
Municipality applies for MIIU aid Questionnaire helps conceptualise project MIIU assesses chances for success & development
impacts Formal grant agreement signed Municipality contributes partial funding MIIU provides quality control
The Project Development The Project Development ProcessProcess
1. Assess feasibility of MSP options
2. Council decision on option (with MIIU advice)
3. Prepare bid documents, draft contract
4. Selection of public or private partner
5. Negotiate & sign contract
6. Financial close -- begin implementation
7. Initiate contract compliance monitoring
Completed MSPs:Completed MSPs:Total ValuesTotal Values
Contracts Values O&M R 142 m O&M plus Capex R 4,575 m Divestiture R 414 m Corporatisation R 50 m
---------- Total R 5,181m
Benefits for the Disadvantaged:Benefits for the Disadvantaged:Direct Benefits to Households:Direct Benefits to Households:
Project Households Harrismith water 14,222 Thabazimbi waste 3,000 Nelspruit water 42,667 Tzaneen waste 12,000 Jnb Metro Gas 6,000 Jnb Bus 355,556 Total 433,445
Benefits for the Disadvantaged:Benefits for the Disadvantaged:Indirect Service Efficiencies:Indirect Service Efficiencies:
Jnb Info Tech Dolphin Coast water Nelspruit water Jnb Fleet Jnb Market Jnb bus Eastern Cape IT
Benefits for the Disadvantaged:Benefits for the Disadvantaged:Environmental Improvement:Environmental Improvement:
Thabazimbi waste Robertson waste WMLC waste Nelspruit water
Dolphin Coast water Tzaneen waste Jnb Metro Gas
Benefits for the Disadvantaged:Benefits for the Disadvantaged:More Revenue for Services to Poor:More Revenue for Services to Poor:
Jnb Metro Gas Jnb Rand airport Richards Bay airport Pretoria airport Nelspruit water Dolphin Coast water Jnb Parking
Budget OverviewBudget Overview
Budget StructureBudget Structure
1. Revenues(DPLG capital, MTEF, donors, interest income)
Budget StructureBudget Structure
1. Revenues(DPLG capital, MTEF, donors, interest income)
minus
2. Administrative Expenditures(BOD expenses, DBSA mgmt fee, office admin.)
Budget StructureBudget Structure
1. Revenues(DPLG capital, MTEF, donors, interest income)
minus
2. Administrative Expenditures(BOD expenses, DBSA mgmt fee, office admin.)
minus
3. Project Expenditures(costs of investigating & preparing MSP projects)
MIIU Budget 1998-2000MIIU Budget 1998-2000
Goals: Establish MIIU pipeline, begin disbursements Establish financial mgmt, reporting, auditing
procedures & policies Complete MPPP projects Acquire & allocate USAID funding to projects
MIIU Budget 1998-2000MIIU Budget 1998-2000
Revenues: 98-99
MPPP transfer 10,690
DCD capital 12,000
MTEF allocation 0
USAID grant 0
Interest 2,806
Padco reimburse 0
TOTAL 25,496
MIIU Budget 1998-2000
Revenues: 98-99 99-00
MPPP transfer 10,690 0
DCD capital 12,000 8,000
MTEF allocation 0 0
USAID grant 0 5,400
Interest 2,806 2,744
Padco reimburse 0 0
TOTAL 25,496 16,144
MIIU Budget 1998-2000
Revenues: 98-99 99-00 00-01
MPPP transfer 10,690 0 0
DCD capital 12,000 8,000 0
MTEF allocation 0 0 4,006
USAID grant 0 5,400 2,400
Interest 2,806 2,744 2,745
Padco reimburse 0 0 141
TOTAL 25,496 16,144 9,292
MIIU Budget 1998-2000
Admin Expend.: 98-99
BOD expenses 13
DBSA admin fee 1,542
General admin 307
TOTAL 1,862
MIIU Budget 1998-2000
Admin Expend.: 98-99 99-00
BOD expenses 13 26
DBSA admin fee 1,542 1,053
General admin 307 475
TOTAL 1,862 1,554
MIIU Budget 1998-2000
Admin Expend.: 98-99 99-00 00-01
BOD expenses 13 26 26
DBSA admin fee 1,542 1,053 1,435
General admin 307 475 556
TOTAL 1,862 1,554 2,017
MIIU Budget 1998-2000
Project Expend.: 98-99
MPPP projects 6,712
MIIU pipeline 1,619
TOTAL 8,331
MIIU Budget 1998-2000
Project Expend.: 98-99 99-00
MPPP projects 6,712 1,135
MIIU pipeline 1,619 5,887
TOTAL 8,331 7,022
MIIU Budget 1998-2000
Project Expend.: 98-99 99-00 00-01
MPPP projects 6,712 1,135 360
MIIU pipeline 1,619 5,887 15,023
TOTAL 8,331 7,022 15,383
MIIU Budget 1998-2000
Summary: 98-99 99-00 00-01
Revenues 25,496 16,144 9,292
MIIU Budget 1998-2000
Summary: 98-99 99-00 00-01
Revenues 25,496 16,144 9,292
Admin. Expend. 1,862 1,554 2,017
Project Expend. 8,331 7,022 15,383
MIIU Budget 1998-2000
Summary: 98-99 99-00 00-01
Revenues 25,496 16,144 9,292
Admin. Expend. 1,862 1,554 2,017
Project Expend. 8,331 7,022 15,383
Surplus/shortfall 15,303 22,871
TOTAL 15,303 22,871 14,763
MIIU Budget 2001-2004
Goals: Maintain MIIU pipeline, accelerate
disbursements Confirm MTEF funding Find new donor funding New activities: interns, success fees, etc. Target disbursements by category
MIIU Budget 2001-2004
Revenues: 01-02
MTEF allocation 7,000
Interest 2,250
Padco reimburse 90
Success fees 1,425
Donor grant 0
TOTAL 10,765
MIIU Budget 2001-2004
Revenues: 01-02 02-03
MTEF allocation 7,000 7,000
Interest 2,250 500
Padco reimburse 90 90
Success fees 1,425 2,000
Donor grant 0 15,000
TOTAL 10,765 24,590
MIIU Budget 2001-2004
Revenues: 01-02 02-03 03-04
MTEF allocation 7,000 7,000 7,000
Interest 2,250 500 200
Padco reimburse 90 90 90
Success fees 1,425 2,000 1,675
Donor grant 0 15,000 0
TOTAL 10,765 24,590 8,965
MIIU Budget 2001-2004
Admin Expend.: 01-02
BOD expenses 28
DBSA admin fee 1,579
General admin 1,768
TOTAL 3,375
MIIU Budget 2001-2004
Admin Expend.: 01-02 02-03
BOD expenses 28 31
DBSA admin fee 1,579 1,735
General admin 1,768 2,293
TOTAL 3,375 4,059
MIIU Budget 2001-2004
Admin Expend.: 01-02 02-03 03-04
BOD expenses 28 31 34
DBSA admin fee 1,579 1,735 1,900
General admin 1,768 2,293 2,508
TOTAL 3,375 4,059 4,443
MIIU Budget 2001-2004
Project Expend.: 01-02
MIIU pipeline 19,025
MIIU Budget 2001-2004
Project Expend.: 01-02
MIIU pipeline 19,025
Concessions 29%
Metros 26%
Dist. councils 25%
Other local councils 20%
MIIU Budget 2001-2004
Project Expend.: 01-02 02-03
MIIU pipeline 19,025 17,550
Concessions 29% 29%
Metros 26% 12%
Dist. councils 25% 47%
Other local councils 20% 12%
MIIU Budget 2001-2004
Project Expend.: 01-02 02-03 03-04
MIIU pipeline 19,025 17,550 8,500
Concessions 29% 29% 34%
Metros 26% 12% 0
Dist. councils 25% 47% 53%
Other local councils 20% 12% 13%
MIIU Budget 2001-2004
Summary: 01-02 02-03 03-04
Revenues 10,765 24,590 8,965
MIIU Budget 2001-2004
Summary: 01-02 02-03 03-04
Revenues 10,765 24,590 8,965
Admin. Expend. 3,375 4,059 4,443
Project Expend. 19,025 17,550 8,500
MIIU Budget 2001-2004
Summary: 01-02 02-03 03-04
Revenues 10,765 24,590 8,965
Admin. Expend. 3,375 4,059 4,443
Project Expend. 19,025 17,550 8,500
Surplus/shortfall 14,763 3,128 6,109
TOTAL 3,128 6,109 2,131
MIIU Budget 1998-2004
Conclusions: Steady pipeline growth Strong, early capitalisation created financial
foundation Importance of consistent MTEF allocations Critical need for new donor funding Administrative costs rise as technical transfer
begins, offset by success fees
Lessons Learned &Lessons Learned &Future DirectionFuture Direction
Lessons Learned – Lessons Learned – toward a comprehensive strategytoward a comprehensive strategy
Need for private investment to supplement govt infrastructure finance
PPPs vs. bonds vs. grants – needed linkages Measuring/monitoring govt performance Sustaining MIIU’s value to local govt:
-- internships & more local staff
-- success fees & revolving fund
-- exit strategy & succession planning
MIIU into the Future:MIIU into the Future:MSPs after DemarcationMSPs after Demarcation
The Municipal Reform Challenge Developmental local governance Financial sustainability Service delivery for all Coping with a changing environment
Municipal Reform StrategyMunicipal Reform Strategy1. Planning
- IDPs, action plans
2. Restructuring - Utilities, agencies, PPPs
3. Performance Management - Performance-based contracting
4. Capacity Development - Learning to supervise, not implement
RestructuringRestructuring Budget Analysis
- Match actual revenues & costs
Organisational Redesign - Match structure & function
Partnerships- Assess partnership options
- Find public & private partners
The MIIU Role in ReformThe MIIU Role in Reform Discuss reform strategies in IDPs Brief clients on reform requirements Inform clients re other support
programmes Ensure MSPs fit restructuring needs
• Thorough feasibility investigations• Consider all options • Use performance-based contracts
Strategic IssuesStrategic Issues
1. Free Water policy• Linkages between the three spheres of
government
• Monitoring of municipal infrastructure investments
• Financial support to the unit to increase impact and capacitate local governance
Strategic Issues - cont.Strategic Issues - cont.2. Implementation of applicable legislation:
• The Municipal Systems Act• The Municipal Structures Act• Pending regulations
3. Communication about MSPs (private and public)
4. Linkages with strategic programmes of govt• Integrated rural strategy• Urban renewal programme
SummarySummary Best-practice procedures & policies R5.2 billion in completed MSP projects 53 active projects Lessons learned – the need for MSPs in
infrastructure finance The role of MSPs in municipal reform
Thank You.For more information visit…
http://www.miiu.org.za