Province of the Eastern Cape

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Province of the Eastern Cape
DEPARTMENT OF AGRICULTURE CONDITIONAL GRANT
AND CAPITAL EXPENDITURE THIRD TERM REPORT
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TABLE OF CONTENTS

• Situation Analysis - CASP
• Situation analysis Land Care
• Agricultural Disaster Management Grant
• Capital spending third term report

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SITUATION ANALYSIS - CASP

• Budget
• CASP was allocated a budget of R57 061 000 for
  the year under review. A rollover of R5 986 000
  is awaiting approval by the provincial
  legislature.
• Cash flow from National
• R45 649 000 has been transferred to the
  province.
• Expenditure
• R32 025 030 has been spent as at 31 December 2006
• _R33 938 000 has been spent as at 6 February 2007

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SITUATION ANALYSIS - CASP

• CASP funded Projects
• 170 projects have been approved across the six
  District Offices and Head Office.
• Split per project type
• Type of project Budget
  Expenditure Committed
• Fencing R 11,159,266 R 6,684,550 R 3,762,425
• Stock Water Dams R 2,057,021 R 891,440 R 785,714
• Dip Tanks R 2,090,261 R 160,447 R 168,116
• Hydroponics R 1,767,451 R 315,754 R 1,357,955
• Production Inputs R 900,000 R364,630 R 418 400

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SITUATION ANALYSIS - CASP

• Split per project type
• Type of project Budget Expenditure
  Committed
• Poultry House R 4,030,098 R 2,311,302 R
  1,216,781
• Dairies R 1,403,812 R 96,378 R 532,785
• Handling Facilities R 150,000 R 87,982 R
  83,991
• Storage Sheds R 593,220 R 177,737 R 315,483
• Shearing Sheds R 5,190,558 R 2,292,695 R
  2,897,8646
• Irrigation Schemes R 15,744,000 R 15,744,000 R 0
• Mechanization R 14,130,766 R 1,586,552 R
  12,586,552

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ANALYSIS OF CASP CATEGORIES

• The analysis shows more budget allocation for
  fencing, shearing sheds ,irrigation schemes and
  mechanization.The thrust of the province is on
  food security, which requires fencing of arable
  lands and gardens,livestock improvement through
  introduction of better rams for wool improvement,
  which requires shearing sheds for wool classing
  and baling. The province has started
  resuscitation of six large irrigation
  schemes.Provision of small and large tractors
  assists farmers on LRAD and communal areas to be
  productive both under irrigation and dry land
  food production.

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SITUATION ANALYSIS - CASP

• Challenges
• Lack of financial capacity from the developing
  contractors
• Socio-political problems within the communities
  retard the implementation of Social conflicts,
  political differences, etc.
• Lack of project management capacity from the
  developing contractors resulting in projects
  being not finished on time.

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SITUATION ANALYSIS - CASP

• Remedial Measures
• Financial Institutions are in agreement to
  provide start-up capital to the developing
  companies at the presentation of approved orders
  from the provincial department of agriculture.
• Social Mobilisation is being done to facilitate
  community involvement, participation and
  ownership where and when necessary to speed
  implementation and reduce social conflicts.
• Emerging Contractors are being capacitated on
  project and financial management through the
  Extended Public Works Programmes of the
  department of Public Works.

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SITUATION ANALYSIS LAND CARE

• Budget
• LandCare has been allocated a budget of R6 675
  000 for the 2006/07 financial year.
• R737 000 rollover from the provincial treasury is
  awaiting approval by the provincial legislature.
• An additional R4 375 000 for the implementation
  of a Land Care project in the Umzimvubu Catchment
  was approved the National Department of
  Agriculture. This amount is also awaiting
  approval by the provincial legislature.

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SITUATION ANALYSIS LAND CARE

• Cash Flow
• R5 340 000 has already been transferred to the
  province.
• Expenditure
• R5 277 000 has been spent as at 31 December 2006.

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SITUATION ANALYSIS LAND CARE

• Land Care funded projects
• 6 projects are funded by this Conditional.
• All these projects focus on the following
  objectives
• Resource planning Capacity building
• Infrastructure to enable resource planning e.g.
  Fencing
• Rehabilitation and protection resources, e.g.
  soil conservation works

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SITUATION ANALYSIS LAND CARE

• Land Care funded projects
• Split by project
• Project Budget Expenditure
• Mthatha Dam Catchment 2 000 000 1 606 000
• Dlula Bedlala 50 000 50
  000
• Camdeboo 70 000 8 000
• Sterkpruit Ward 4 2 500 000 1 780
  000
• Sidindi 2 025 000 1 806 000
• Ntseshe 30 000 27 000
• 6 675 000 5 277 000

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SITUATION ANALYSIS LAND CARE

• Challenges
• The fact that the rollovers has not been approved
  yet poses a serious threat of under spending.
• Capacity constraints to implement Land Care
• The Extension Officers of the department who are
  in constant touch with the communities are
  falling short when it come to broader capacity
  building in communities.
• The shortage of Resource Planners reduces the
  capacity of the department to effectively
  implement Land Care projects.
• The department has a serious problem to recruit
  and retain engineering staff to design the
  infrastructure and supervise construction.

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SITUATION ANALYSIS LANDCARE

• Remedial Measures
• The training of Extension Officers needs to
  extended to include community capacity building
  skills
• The department is looking to apply some
  incentives to lure the scarce skilled personnel
  to the department

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AGRIC. DISASTER MANAGEMENT GRANT

• Budget
• R12 403 000 was received as an additional funding
  from the National Department of Agriculture
  during the time of preparing for the 1st
  Adjustment Estimates
• Cash flow
• There were no cash flows for the period under
  review
• Expenditure
• No expenditure yet as this funding is caught up
  with the delayed Adjustment Estimates which are
  yet to be approved by the provincial legislature.

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CAPITAL EXPENDITURE THIRD TERM

• Item Allocation Spent Variance
  Commitments
• R000 R000 R000
  R000
• Assets 13 417 2 481 10 936
  7 109
• The capital budget of R13.417million,which is
  for computers, office furniture, office equipment
  and cabling of our offices, has experienced
  delays due to the lengthy process of procuring
  expensive capital equipment. However to date
  R9.590m has been spent and formally committed. .

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THANK YOU