Presentation to the Select Committee On Finance 08 August 2006

QUARTERLY PERFORMANCE OF THE MUNICIPAL INFRASTRUCTURE GRANT

(MIG) – 2005/06 AND 2006/07 FINANCIAL YEARS

Presentation to the Select Committee On Finance 08 August

2006

Quarterly financial progress

PART A: 2005/06 REPORT• Municipalities spent R5, 3 billion out of the total allocation of R5, 4

billion as at the end of June 2006 • Expenditure represents 97 percent of the total transferred and the

allocation • Gauteng (98,9 percent), Western Cape (99,8 percent), Eastern Cape

(98,9 percent), and KZN (98 percent) are the best performing provinces

• Municipalities had R 184 million MIG funds in their bank accounts – end June 2006

• municipal spending started lower at R400 million in the first quarter of 2005/06 and improved to R1,7 billion in the last quarter of 2005/06 financial year

• Municipal expenditure is normally lower in the first quarter of the municipal financial year

• This means that in the first quarter most municipalities are still finalising their budgets for approval by their councils before the start of the financial year

PART A: 2005/06 REPORT

PROVINCES Q1 (April-June) Q2 (July-Sept.) Q3 (Oct.-Dec.) Q4 (Jan.-March)Transf. R'000

Expend. R'000

Transf. R'000

Expend. R'000

Transf. R'000

Expend. R'000

Transf. R'000

Expend. R000

Eastern Cape 315,036 42,721 230,218 165,369 253,635 229,075 264,928 311,667Free State 103,948 47,706 100,722 55,091 95,106 81,520 135,137 126,146Gauteng 154,633 100,578 178,350 111,026 216,710 116,532 291,721 221,952KwaZulu Natal 251,774 173,441 272,856 220,064 199,083 200,003 392,565 446,358Limpopo 61,653 3,108 207,361 80,107 249,019 191,369 209,736 218,723Mpumalamga 21,324 3,330 129,343 33,141 107,435 42,331 102,404 104,367Northern Cape 39,882 5,432 31,298 25,122 20,730 22,356 80,274 55,615North West 22,679 6,832 90,398 13,426 89,939 75,446 219,238 145,520Western Cape 54,898 16,973 82,432 42,286 121,988 92,225 37,709 127,131

1,025,827 400,121 1,322,978 745,632 1,353,645 1,050,857 1,733,712 1,757,479

2005/2006 FINANCIAL YEAR

Quarterly Expenditure on MIG Funds

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Q1(April-June)

Q2(July-Sept.)

Q3(Oct.-Dec.)

Q4(Jan.-

March)

Total

Period

Exp

endi

ture

Transf. R'000 Expend. R'000

PART A: 2005/06 REPORT

• Municipalities have been spending less than what was transferred to them for all the quarters except the last quarter where municipalities spent more than what was transferred to them

• One other reason for higher expenditure in the last quarter is that most municipalities reported higher expenditure since they felt that they would loose some money if the does not spend the money

• The dplg informed municipalities of the processes to be followed in dealing with unspent funds from the 2005/06 financial year

• As at end of March 2006, municipalities reported the under expenditure of over R1,4 billion

Q5: Expenditure on under expended funds from 2005/06 financial year

Transf. R'000 Expend. R'000Eastern Cape 0 303,037Free State 0 88,115Gauteng 0 282,176KwaZulu Natal 0 54,852Limpopo 0 208,390Mpumalamga 0 149,137Northern Cape 0 44,798North West 0 150,257Western Cape 0 17,736Total 1,298,498

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Nelson Mandela 20,397 0 14,595 17,080 13,716 23,362 22,664 28,346

Makana 295 0 2,080 0 2,000 490 3,464 1,817

Ndlambe 1,762 0 1,963 545 1,403 3,081 175 1,678

Sundays River 2,318 0 1,561 0 1,410 1,085 1,385 5,589

Kouga 2,246 0 804 469 667 262 1,863 609

CacaduDM 12,261 1,005 1,300 5,537 6,603 5,198 5,632 6,379

Mnquma 2,770 0 5,046 0 4,439 4,020 2,402 10,086

Buffalo City 15,700 20,995 29,908 12,899 20,301 14,000 19,693 37,708

Ngqushwa 228 0 776 0 1,555 338 1,439 922

Amatole DM 43,653 4,836 25,565 36,920 28,111 36,499 50,929 43,679

Lukhanji 1,632 716 1,533 146 1,858 117 1,972 5,622

Engcobo 1,198 0 2,623 0 1,920 4,126 599 2,214

Chris Hani DM 43,917 558 40,111 12,831 27,296 28,666 23,679 29,964

Senqu 2,985 0 1,375 77 1,880 2,254 325 3,137

Ukhahlamba DM 27,551 8,238 23,980 11,799 28,662 9,647 11,478 20,952

Mbizana 4,161 0 2,843 1,043 1,483 765 300 404

Port St. Johns 2,951 0 1,498 266 1,366 554 0 962

King Sabata 2,436 0 2,146 0 0 0 11,429 16,011

O.R. Tambo DM 86,058 6,373 54,899 41,923 81,164 53,841 74,630 72,577

Umzimkhulu 1,433 0 2,600 0 1,300 3,662 1,510 2,820

Umzimvubu 462 0 1,156 0 3,853 3,484 2,234 2,609

Alfred Nzo DM 38,622 0 11,857 23,835 22,647 33,626 27,123 17,582

TOTAL - EC 315,036 42,721 230,218 165,369 253,635 229,075 264,928 311,666

Q1 (April-June) Q2 (July-Sep) Q3 (Oct -Dec) Q4 (Jan- Mar)

EASTERN CAPE

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Letsemeng 0 0 547 0 1,957 0 1,400 494

Mohokare 0 0 850 0 550 283 1,600 2,429

Xhariep DM 2,218 0 2,039 1,120 2,473 1,680 6,618 2,772

Naledi 225 0 225 0 1,150 692 1,400 1,594

Mangaung 25,887 25,887 10,155 10,155 16,287 16,287 27,100 24,652

Mantsopa 550 0 5,768 5,960 0 135 0 0

Motheo DM 3,200 635 171 1,026 4,250 3,563 5,624 2,858

Masilonyana 300 0 1,300 0 1,900 426 1,761 2,111

Tswelopele 5,242 1,581 1,704 2,127 0 1,449 0 1,529

Matjhabeng 8,208 0 15,008 2,419 11,308 10,963 39,743 15,147

Nala 2,700 0 7,664 3,188 6,801 6,489 7,254 8,556

Lejweleputswa DM 1,841 0 3,116 0 4,957 880 4,249 5,102

Setsoto 8,680 2,040 5,181 1,652 629 3,418 3,001 5,262

Dihlabeng 7,060 1,351 4,902 4,054 4,689 7,630 10,102 13,719

Nketoana 3,401 0 2,844 2,283 3,621 894 1,245 4,426

Maluti-a-Phofung 11,030 7,023 17,088 12,157 14,153 10,944 10,413 14,055

Phumelela 300 0 600 0 1,100 0 1,000 0

Thabo Mofutsanyana 2,300 419 3,900 1,623 3,700 3,471 3,928 475

Moqhaka 1,989 0 7,648 136 4,110 4,931 3,507 6,947

Ngwathe 9,181 5,850 3,572 3,199 3,790 3,442 3,439 3,470

Metsimaholo 6,745 2,180 3,479 2,930 3,948 2,028 0 5,611

Mafube 2,291 741 2,492 674 2,784 494 774 4,075

Northern FS DM 600 0 470 387 950 1,422 980 862

Free State Total 103,948 47,706 100,722 55,091 95,106 81,520 135,137 126,146


FREE STATE

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total ExpenditureEkurhuleni 30,436 19,208 33,822 17,457 80,819 33,636 76,974 55,512

City of Johannesburg 53,000 44,957 58,000 46,043 45,571 43,991 91,150 85,177

City of Tshwane 47,106 29,106 44,000 37,100 47,000 9,713 44,020 25,270

Metsweding DM 730 0 5,655 1,119 7,500 2,840 6,438 8,367

Emfuleni 3,370 0 3,806 2,272 11,140 1,869 27,963 3,084

Midvaal 150 0 1,450 446 551 912 4,400 524

Lesedi 600 610 400 1,611 4,055 2,100 5,942 3,219

Sedibeng DM 1,200 1,585 4,250 310 4,850 5,520 700 2,255

Mogale City 5,756 0 3,958 0 5,386 9,846 11,545 15,974

Randfontein 2,262 1,771 3,249 1,205 2,077 771 2,099 2,360

Westonaria 5,067 3,340 0 3,052 7,660 3,570 12,825 3,611

Merafong City 3,611 0 19,760 412 0 1,764 7,082 16,599

West Rand DM 1,345 0 0 0 100 0 584 0

Gauteng Totals 154,633 100,578 178,350 111,026 216,709 116,532 291,721 221,952


GAUTENG

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

eThekwini 55,943 44,418 49,532 39,067 49,244 30,011 105,591 146,814

Umdoni - - 950 72 950 1,653 3,272 3,447

Hibiscus Coast 5,386 543 273 4,642 4,700 3,667 7,212 6,569

Ugu DM 24,360 8,604 17,051 22,291 32,210 33,297 21,471 30,899

uMngeni - - 1,000 - 1,863 400 - 2,138

Msunduzi 496 - 13,253 3,848 8,629 11,494 21,868 20,368

Mkhambathini - - 300 - 249 57 1,592 47

uMgungundlovu DM 10,223 6,137 5,795 8,040 5,817 3,601 24,768 21,603

Emnambithi/Ladysmith 2,428 804 510 2,403 3,011 1,813 856 1,690

Uthukela DM 4,896 4,896 31,298 22,019 11,645 8,933 16,311 28,302

Umvoti 1,719 1,719 2,213 1,753 317 777 - -

Umzinyathi DM 31,203 29,155 22,942 20,894 11,800 11,709 11,260 14,766

Newcastle 4,861 3,015 3,581 3,804 7,303 5,151 7,790 7,799

Amajuba DM 4,568 2,580 3,875 2,309 2,629 4,876 6,452 7,573

Zululand DM 28,503 15,617 31,244 28,769 22,256 31,580 42,752 48,789

Umhlabuyalingana - - 1,880 - - - 3,410 388

Umkhanyakude DM 27,116 17,709 25,619 16,323 2,283 12,813 28,527 22,426

Mbonambi - - 480 - 957 256 2,238 1,224

uMhlathuze 2,996 2,531 8,956 9,421 9,002 8,889 4,579 4,692

Nkandla - - 911 - 730 69 3,268 4,494

uThungulu DM 29,596 21,970 15,719 16,111 11,351 13,485 21,024 26,125

KwaDukuza 1,253 774 1,580 2,059 2,000 561 4,291 (422)

Maphumulo - - 1,031 661 400 187 2,843 -

Ilembe DM 11,277 11,277 19,020 11,455 7,728 8,566 28,966 17,232

Ingwe - - 975 - 767 360 2,357 3,739

Greater Kokstad - - 1,641 - 342 1,486 1,526 371

Ubuhlebezwe - - - - - - - -

Sisonke DM 4,950 1,693 11,224 4,123 900 4,313 18,340 25,286

KwaZulu-Natal Totals 251,774 173,441 272,855 220,064 199,083 200,003 392,565 446,358


KWAZULU-NATAL

LIMPOPOMunicipality Total

Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Makhuduthamaga 1,703 - 1,482 - 3,350 970 3,600 2,381

Greater Groblersdal 1,000 - 1,800 - 2,750 1,120 2,864 2,591

Greater Sekhukhune 22,000 117 50,500 19,880 45,000 29,080 35,789 9,764

Bohlabela DM 2,700 155 26,021 16,448 32,000 21,547 34,201 39,647

Greater Tzaneen 2,122 143 5,000 900 3,700 4,666 5,633 4,213

Mopani DM - 412 28,757 21,481 36,700 32,902 32,800 26,419

Thulamela 5,232 - 7,032 3,563 6,000 8,580 2,705 7,036

Makhado 5,300 - 6,342 - 2,000 2,281 4,800 6,007

Vhembe DM - 1,276 32,443 1,660 29,750 24,377 24,544 58,791

Polokwane 7,000 482 22,000 844 25,000 5,268 15,081 17,535

Capricorn DM 14,596 522 10,000 3,591 25,000 30,277 29,228 15,403

Lephalale - - 5,761 1,012 5,604 4,053 1,274 6,416

Mookgopong - - 650 229 1,832 2,117 1,228 1,364

Bela Bela - - 744 - 1,972 1,154 1,276 2,839

Waterberg DM - - 8,829 10,647 28,361 22,912 14,712 18,233

Limpopo Total 61,653 3,108 207,361 80,254 249,019 191,302 209,735 218,638


Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Albert Luthuli 1,358 - 8,250 - 2,700 1,145 7,108 3,522

Pixley Ka Seme 1,610 - 2,217 532 2,189 - 1,550 2,278

Lekwa 1,400 - 3,700 - 2,200 782 2,825 1,960

Govan Mbeki 5,405 3,330 12,187 2,218 11,752 3,123 8,160 16,432

Gert Sibande DM - - 15,013 10,032 18,070 9,296 17,126 6,205

Delmas 1,403 - 1,403 132 1,700 877 1,105 2,034

Emalahleni - - 12,635 1,033 8,327 4,609 11,500 15,009

Steve Tshwete - - 3,735 390 2,446 261 3,957 4,339

Dr JS Moroka 3,200 - 11,968 7,822 10,188 5,506 6,041 5,487

Nkangala DM - - 15,817 1,537 10,400 5,625 8,400 16,600

Mbombela 6,477 - 16,409 5,532 20,039 5,278 15,804 13,309

Umjindi 180 - 3,500 - 2,500 169 1,862 3,751

Nkomazi 292 - 5,357 166 4,876 583 6,936 6,856

Ehlanzeni DM - - 17,153 3,748 10,048 4,477 10,030 7,185

Mpumalanga Totals 21,324 3,330 129,344 33,141 107,434 41,731 102,404 104,966


MPUMALANGA

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Ga-Segonyana 5,500 - 2,000 4,931 1,000 3,015 8,249 411

Kgalagadi DM 12,000 166 4,000 8,042 2,000 6,123 19,361 12,680

Nama Khoi 750 - 2,350 585 750 350 4,677 2,929

Karoo Hoogland - - 196 - - - - -

Khai-Ma - - 452 - 100 - 200 -

Namakwa DM 1,329 - 1,000 4 500 681 2,750 3,100

Siyancuma - - 1,500 - 1,000 718 4,032 483

Karoo DM 5,000 - 2,500 2,072 2,500 3,860 12,620 11,583

Mier - - 200 - 30 - 108 -

Kaiy Garib - - 399 - 50 - 150 362

//Khara Hais - - 1,000 - 300 - 1,700 -

Tsantsabane 2,250 - 1,250 674 500 537 3,473 2,318

Kgatelopele - - 203 - - - - -

Siyanda DM 3,000 1,188 3,500 1,590 1,500 1,700 8,873 10,644

Sol Plaatje 6,553 3,949 6,000 5,906 7,000 3,735 4,200 8,529

Dikgatlong - - 750 - 500 - 1,750 350

Phokwane 2,000 - 2,000 - 500 - 2,429 -

Frances Baard DM 1,500 129 2,000 1,318 2,500 1,636 5,700 2,225

Northern Cape Totals 39,882 5,432 31,298 25,122 20,730 22,356 80,274 55,616


NORTHERN CAPE

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Moretele - - 7,397 - - 2,132 22,000 12,122

Madibeng 210 - 11,958 1,214 19,000 9,459 33,000 6,144

Rustenburg - - - - 11,109 11,109 46,788 11,963

Moses Kotane - - 10,145 1,382 9,000 2,564 15,700 6,531

Bojanala Plat DM - - 3,439 - - 2,261 11,500 7,743

Mafikeng 2,923 - - 841 6,800 3,986 1,700 6,596

Central DM 3,750 - 13,450 - 17,430 18,897 37,000 41,595

Kagisano - - 918 840 3,300 1,783 - 1,104

Mamusa - - 944 - 700 704 1,200 1,808

Greater Taung - - 2,244 - 2,000 923 3,350 1,052

Bophirima DM - - 13,509 1,758 5,500 4,101 21,800 22,908

Ventersdorp 641 - 1,661 - 1,500 - 2,500 1,914

Potchefstroom 1,918 1,078 6,262 475 300 3,320 2,300 4,406

Klerksdorp 8,500 2,549 16,037 3,029 9,600 11,492 18,000 16,170

Maquassi Hills 569 17 1,504 2,049 3,700 2,641 2,400 3,465

Southern DM 4,168 3,188 932 1,837 - 75 - -

North West Totals 22,679 6,832 90,398 13,426 89,939 75,446 219,238 145,520


NORTH WEST

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

Total Transferred

Total Expenditure

City of Cape Town 14,215 5,562 47,500 23,484 93,949 62,831 12,138 75,926

Matzikama 220 - 1,658 33 1,201 430 - 1,183

Cederberg 950 - - - 1,935 - 1,146 1,658

Saldanha Bay 397 178 1,848 471 100 591 208 1,313

Swartland 756 - 1,429 458 1,726 1,693 686 2,446

West Coast DM 947 406 100 24 2,396 102 2,060 2,312

Drakenstein 1,120 76 - 388 3,000 2,436 5,407 4,000

Stellenbosch 200 - 4,650 611 - 2,197 5,288 2,853

Breede Valley 3,202 - 2,000 1,879 1,123 468 - 3,978

Breede River Winel 2,329 - 627 1,837 100 1,301 495 412

Cape Winelands 1,812 - 470 1,956 1,555 913 118 1,087

Theewaterskloof 1,409 182 4,004 1,394 2,586 2,442 135 4,116

Overstrand 639 - 100 289 757 97 1,507 2,226

Overberg DM 2,110 1,377 194 356 805 42 748 2,081

Hessequa/Langeberg 370 - 30 - - - - 400

Mossel Bay 404 - 1,781 373 742 1,376 550 1,727

George 5,308 4,134 1,658 574 1,239 2,157 - 1,341

Oudtshoorn 1,152 - 1,140 500 1,830 1,304 2,040 4,358

Bitou/Plettenberg Bay 3,190 - 3,081 1,801 - 1,948 - 2,522

Knysna 3,582 615 710 446 1,072 1,364 648 1,975

Eden DM 859 - 1,862 - - 621 1,582 3,444

Central Karoo DM 9,727 4,444 7,591 5,409 5,873 7,913 2,950 5,774

Western Cape Totals 54,898 16,973 82,432 42,286 121,988 92,225 37,708 127,131


WESTERM CAPE

IMPORTANT FACTS TO NOTE ON MIG EXPENDITURE

• Municipal Infrastructure Grant integrated various grants• Grants were managed by different sector departments. • Implementation earmarked to kick start from 2006/07 financial

year • Implementation brought forward with two years starting in

2004/05 • Allocations were much more than were anticipated• Resulted with a lot of challenges for municipalities• No proper arrangements were in place to phase-in municipalities

in the new arrangement of infrastructure delivery• Project Management Grant for provinces phased out• Situation has led to significant under expenditure in the first and

second years of MIG implementation • Situation has since improved during 2005/06 financial year

IMPORTANT FACTS TO NOTE ON MIG EXPENDITURE

• Majority of municipalities in Kwazwulu-Natal and Western Cape spent 100 percent of their MIG allocations by end of March

• Main contributing factor of slow spending is the different planning cycles between the national financial year and the municipal financial year.

• Municipalities start planning after their councils approve their capital budgets around end June each year

• Projects designs and procurement processes take some time• most projects start implementation from the beginning of

January the following year• Kwazulu Natal and Western Cape municipalities are good

examples regarding good planning to be able to spend MIG funds end of March each year

• However, provincial capacity depleted

PROVINCES

Transf. R'000 Expend. R'000% Exp on

Transf Balance%

balanceEastern Cape 214,850 147,449 68.6 67,401 31.4Free State 95,640 42,289 44.2 53,351 55.8Gauteng 65,072 49,531 76.1 15,541 23.9KwaZulu Natal 225,557 130,214 57.7 95,343 42.3Limpopo 93,020 48,134 51.7 44,886 48.3Mpumalamga 42,929 16,446 38.3 26,483 61.7Northern Cape 15,700 11,573 73.7 4,127 26.3North West 62,959 23,726 37.7 39,233 62.3Western Cape 58,901 41,750 70.9 17,151 29.1

874,628 511,112 58.4 363,516 41.6

Q1 (April-June)

PART B: 2006/07 REPORT

PART B: 2006/07 REPORT

• The total MIG allocation for the 2006/07 financial year is R6, 2 billion

• R875 million transferred to municipalities in the first quarter

• municipalities spent R511 million in the 1st quarter• Expenditure represents 8 percent of the total allocation and

58 percent of transferred amount• Municipalities focused on spending the remaining 2005/06

MIG funds (spent R1,2 billion)• Negative impact on spending the current allocation • Close monitoring is in place to inform the re-allocation

process

Q1- 05/06 vs Q1 – 06/07• During the first quarter of 2006/07 the amount transferred

to municipalities was less than that transferred during the first quarter of 2005/06

• some of the municipalities did not schedule any transfers during the first quarter because they had to spend the remaining funds from the 2005/06 allocation

• municipalities targeted to expend the 2005/06 funds by the end of June 2006

• expenditure in the first quarter of 2006/07 is higher than the expenditure for the same period last year

• The spending of the remaining 2005/06 funds during the first quarter of 2006/07 financial year impacted negatively on the expenditure of the 2006/07 funds.

MIG KPI REPORTMIG KPI REPORTMARCH 2006 MARCH 2006

Monitoring Process

1st April/31st MarchStart 1st Quarter end 4th Quarter3rd Quarter KPI report published

1st July/30th JuneStart 2nd Quarter end 1st QuarterAnnual report published

1st October/30th SeptemberStart 3st Quarter end 2nd Quarter1st Quarter KPI report published

1st January/31st DecemberStart 4th Quarter end 3rd Quarter2nd Quarter KPI report published

31st JulyMunicipalities to submit KPI report

15 AugustPPMU’s submit to Sector Department

31st AugustSector Department submit verified info to PPMUs

10th September PPMUs Submit Provincal report to National MI Unit

20th September National MI Unit submit National report to Executive manager

Progress as end March 2006

Water supply is the most important basic service funded through MIG to poor communities in South Africa. Water services projects registered make up 44% of the total MIG value of registered residential projects at dplg.

The next two biggest funding categories on MIG were sanitation (26%) and roads (23%) .

WaterSanitationRoadsStormwaterStreet / Community LightingSolid Waste Removal26%

23%

3% 1%3%

44%


Million %

B (basic residential infrastructure)

R17,894.27 90.29

P (public municipal service infrastructures)

R1,877.79 9.47

E (social institutions and micro-enterprises infrastructures)

R47.24 0,24

Total

R19,819.30 100,00

Since the start of MIG, R19 819.30 million (The total value of all the MIG projects, including the multi-year projects, registered on the dplg database) has been allocated to the B, P and E funding.

The bulk of the funding for registered projects in the programme is contributed from MIG and is 79.06% of the total source of funds to date.

The contribution from the public (e.g. municipality’s own funds) and private sectors are 19.31% and 1.63% respectively since the inception of MIG.

Progress as end March 2006Up to the end of March 2006, 17 584 599 person days employment opportunities have been created through MIG projects. The employment opportunities for women as a percentage was 34% of the total employment opportunities. The employment of youth was also 34% of the total employment opportunities.

Employment on MIG Projects

20.86%

43.94%

12.70%

21.61%0.33% 0.56%

Women Men Youth (Female) Youth (Male) Disabled (Female) Disabled (Male)

Progress as end March 2006Project Status of all (B-,P-& E Components) projects Up to March 06Pre-Implementation 865 Design / Tender 801 Construction 2,211 Completed 1,415 Total 5,292

Although many MIG projects are labour intensive not all are necessary EPWP projects. The dplg only recently started to register labour intensive projects that adhere to the EPWP guidelines.

Up to the end of March 2006 there were 290 registered MIG projects captured as EPWP projects with a total MIG value of R1 341.28 million.

At the end of March 2006 the total number of Small Medium and Macro Enterprises is 1 321 and 442 Black Economic Empowerment companies was involved on implemented MIG projects by the municipalities.


As at March 2006, 2 204 956 households have been serviced on completed MIG projects since the inception of MIG in April 2004.

Households serviced on Completed Projects

Up to March 05 (2004/05) 2005/06

Up to March 06 (2005/06)

Water 212,828 245,733 458,561

Sanitation 74,245 145,457 219,702

Roads 146,100 174,247 320,347

Multi purposes community halls 19,818 48,240 68,058

Multi purposes sport centre / fields 10,595 124,429 135,024

Parks and open spaces 419 20 439

Municipal Infrastructure Municipal Infrastructure Grant: CommitmentsGrant: Commitments

National Overview

2006/07 2007/08GT 100% 100%WC 95% 13%NW 93% 60%LP 83% 15%NC 81% 75%FS 80% 27%EC 80% 45%MP 73% 25%KZN 65% 13%

CHALLENGES FACING MUNICIPALITIES

GENERAL CHALLENGES FACING MUNICIPALITIES

• Planning in the context of Integrated Development Planning.

• Intergovernmental cooperation (Municipalities, provinces, and sector departments involvement in MIG implementation)

• Overlapping of financial years (National and Municipal)• Lack of capacity to manage MIG projects (Project

Management Units)• Appointing service providers (contractors who cannot

deliver)• Late payment of service providers• Council decisions take too long (approval of projects and

budgets)• Technical reports and Environmental Impact Assessment

INTERVENTIONS IN PLACE

Project Consolidate

• Operational teams including sector departments visit municipalities for hands on support

• SDF’s placed in municipalities

• Engineers graduates and students placed in municipalities

THANK YOU

Presentation to the Select Committee On Finance 08 August 2006

Documents

Transcript of Presentation to the Select Committee On Finance 08 August 2006