Consolidated Municipal Infrastructure (CMIP) and Municipal Infrastructure Grant (MIG)

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Consolidated Municipal Infrastructure (CMIP) and Municipal Infrastructure Grant (MIG). DPLG PRESENTATION TO THE P O RTFOLIO COMMITTEE ON LOCAL GOVERNMENT Budget review 10 March 2003. Municipal Infrastructure Grant (MIG). PROBLEM STATEMENT. - PowerPoint PPT Presentation

Transcript of Consolidated Municipal Infrastructure (CMIP) and Municipal Infrastructure Grant (MIG)

  • Consolidated Municipal Infrastructure (CMIP) and Municipal Infrastructure Grant (MIG)

    DPLG PRESENTATION TO THE PORTFOLIO COMMITTEE ON LOCAL GOVERNMENTBudget review10 March 2003

  • Municipal Infrastructure Grant

    (MIG)

  • PROBLEM STATEMENTSupply vs demand driven approach not responsive to community needs-unsustainableCentralised disbursement from different depts- admin burdenInequitable allocations to municpalitiesNo clear spending accountabilityProgramme not supportive municipal capacity and development

  • OVERVIEW (C0NT)Infrastructure is key to social security and economic developmentDecentralization recognises municipalities as primary agency for infrastructure deliveryMIG approach seek to to enhance accountability in terms of policy outcomes and outputsNational and provincial departments provide support and capacity to municipalities

  • BROAD OVERVIEWLast 7 years focused on addressing the needs of the underserved communities estimated at 15,2 million in 1994Approximately over 5 million (61%) have access to water, and an estimated 3,4 (66,1)million has access to electricityLevels of under-servicing remains high and requires an integrated strategy to addressInfrastructure delivery remains governments key priority

  • PRINCIPLESEquity in the allocation and use of fundsDecentralization of spending authorityEfficient use of fundsPromote integrated development objectives of the three spheresPredictability and transparency

  • OBJECTIVESFully subsidize the capital costs of providing basic services to the poorDistribute funding for MI in an equitable, transparent and efficient mannerAssist developmental capacity of municipalities through multi-year planningCoordinated pursuit of national policy and priorities.Increased job creation through higher investment in public infrastructure

  • INSTITUTIONAL ARRENGEMENTSMulti-departmental accountability fund- DPLG take financial accountabilityPolicy making and regulatory functions of each of the national depts. Remains intactMIPTT- for policy decisionsTMITT-for operational coordination

  • MIG BUDGET

  • PROCESSPilot phase 2003/04 financial yearInfrastructure transfers will go directly to local government in support of IDPsThe Grant will be consolidate from CMIP, LED,WSCG,CBPWP,UTG,BS&R and NEP (post restructuring)Largely formula driven to ensure proper targeting and windows for innovations

  • Pilot sitesNodal areas were identified as key Ethekwini (U) Nelson Mandela(U)Sekhukhuni (R) Bohlabela (R)Kgalagadi (R) Alfred Nzo (R)OR Tambo ( R) Maluti-A-phofung (R)Mangaung

  • CHALLENGESMIG only provides basic servicesNeed for concession for poor municipalities with no revenue baseNo guarantees for proper O&M implementation capacity ( sustainability)Lack of Technical support for mostly rural municipalities to deliver infrastructure

  • Consolidated Municipal Infrastructure Grant(CMIP)

  • Progress Since inception approximately 2,5 million households benefited from CMIP1760 projects completed value R 2345mCurrently 936 projects under construction value R2335m

  • Consolidated Municipal Infrastructure Programme

  • URBAN RENEWAL PROJECTSALLOCATION R70 MILLION

    INTERGRATED SUSTAINABLE RURAL DEVELOPMENT PROJECTSALLOCATION R230 MILLIONCMIP : ACHIEVEMENTS - 2002/2003

    Sheet1

    Number of projects implemented in UR nodes56

    Number of projects in the construction phase14

    Number of projects completed0

    Number of projects implemented in ISRDP nodes

    Number of projects in the construction phase

    Number of projects completed

    Sheet2

    Sheet3

    Sheet1

    Number of projects implemented in UR nodes56

    Number of projects in the construction phase14

    Number of projects completed0

    Number of projects implemented in ISRDP nodes204

    Number of projects in the construction phase80

    Number of projects completed19

    Sheet2

    Sheet3

  • CMIP BUDGET

  • CMIP : OUTPUT DELIVERABLES - 2003/2004

  • CMIP : PROJECTED OUTPUT DELIVERABLES - 2004/2005 & 2005/2006

  • CMIP CHALLENGESLack of technical capacity at municipal sphereLack of monitoring capacity by municipalitiesToo lengthy procurement procedures followed by municipalitiesLife cycle costing for O&M by municipalities

  • THANK YOU