Customised PowerPoint Presentation

1
Free State Public Works, Roads and Transport NCOP
Meeting
28 NOVEMBER 2006
2
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

3
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

4
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

5
State of the Province address

• Creation of 50 000 jobs through EPWP
• Halving poverty and un-employment
• Transfer of skills
• Targeted procurement processes

6
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.

7
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

8
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

9
Key Highlights in Sep 06 Mid-term Report
10
2006/07 Departmental BudgetR1 066 323.00
Roads
Admin, Works, Transport, EPWP
Traffic
11
2006/07 Budget IssuesState of the Budget
12
Actual Monthly Departmental Expenditure and
Projected for 2006/07 TOTAL OVER EXPENDITURE R
261 million
Till 20 Nov 06
13
MAIN INDICATORS Economic Classification
14
Spending Outcomes and budget 06/07
15
Actual Monthly Roads Expenditure till 31 October
2006 and Projected for 2006/07
16
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)

17
Promotion and nurturing of BEEs

• 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

18
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

19
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

20
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

21
In Year -Budget Pressures

• Floods
• Material supplies
• Transport Infrastructure
• Law enforcement
• Maintenance
• Accommodation
• Construction material
• Accelerated infrastructure delivery
• 2010 Infrastructure
• CIDB
• Taxi recapitalization

22
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

23
Learnerships
Motheo Xhariep
24
Gravel Roads
Road S 1521 Thaba Nchu
Regraveled in Xhariep
25
Road repair
Extensive Blading Process
Patch work learnerships
Repair and cleaning of rest areas
Rehabilitation by milling
Cleaning of storm water drainage
26
Bridges
Repair bridge approach and remove debris
Sterkspruit bridge
27
Makwane access road bridge structure
28
MAKWANE-S1499 before and after
29
MAKWANE S1500 before
30
MAKWANE S1500 Construction
31
MAKWANE S1500 After
32
PARYS - N1
33
(No Transcript)
34
SELOSHESHA
35
ZASTRON BRIDGE Before and after
36
BRIDGE OVER THE CALEDON RIVER AT WEPENER
37
FLOOD REPAIR Bloemfontein-Zastron
38
TROMPSBURG-JAGERSFONTEIN
39
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
40
WORKS AS AN AGENT FOR CLIENT DEPARTMENTS
CLIENT DEPARTMENTS
41
SEDERHOF
42
Clinic Construction
43
Sectoral Issues Works

• Service Level Agreements with client departments
• Payments made to contractors by PWRT or Client
  departments
• Budgets payment as an advance or as claimed by
  PWRT
• Reporting requirements of client or agent.
• Reconciliation of data with client departments

44
Sectoral Issues Works
65
102
30
21
47
35
45
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
46
HEALTH PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
Bloemfontein Pelonomi hosp - Block E. Upgrade of ICU       Temporary ICU to be completed before project can tender
Kroonstad Boitumelo hosp - contract 3 - pharmacy, radiology and theatres Block D R3.98m 89 87  Will be completed by December 2006
Kroonstad Boitumelo hosp - Contract 4 Maternity R 1,96m 44 5 Contractor has requested to complete project with cessions. Project still behind schedule
Kroonstad Boitumelo hosp - Contract 7 Mechanical infrastructure R5,44m  67 37 Will be completed during June 2007 
47
HEALTH PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
Bloemfontein Pelonomi hospital - upgrade Pharmacy block I and Fence Upgrading R 0,92m 13 2  Busy with demolitions. Internal work 50
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 22 27  Expected completion December 2009
48
HEALTH PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
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 R0, 75m 143 76 In process to address problems which caused delays
Bloemfontein Pelonomi Hospital Block P New Ortopedic workshop R 1,87m 129 67 Contractor was delayed by additional requests from client dept. Work is neat and progress fair.
49
HEALTH PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
Dealesville New Community Health Care Center   133 95 Contractor a banded site. Legal advise sought. Discussions with SARS
Odendaalsrus Thusanong First phase of upgrading - Maternity, Theatre complex and CSSD R 3,68m 66 32 Progress improved. To be completed August 2007.
Virginia Katleho Hospital - phase 1 of upgrade - new maternity ward R 0,57m 88 96 Will be completed ahead of schedule
Thaba Nchu Moroka - MDR Dining Hall R 0,17m 117 7 Work came to a standstill - cash flow problems. Alternative quotations received for completion of project.
50
HEALTH PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
Bloemfontein Pelonomi hosp - Mankovs Staff accommodation Contract A R 1,36m 25 15  Initial minor problems being managed by architect
Bloemfontein Pelonomi hosp - Mankovs Staff accommodation Contract B R 0,97m 25 15 Initial minor problems being managed by architect  
51
ENVIRONMENTAL AFFAIRS PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
Bloemfontein Philip Sanders Resort First Phase R 0,52m     Project started. Expected completion November 2006
Bloemfontein Philip Sanders Resort 2ND Phase R0, 39m     Project unbundled in seven projects. Tenders to be called for in November 2006
Gariep Dam Gariep Dam Phase 2 R 0,16m 50 31 Expected completion September 2007
52
SOCIAL WELFARE PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
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 Mofutsanyana One stop secure care center R 2,46m     Documentation completed. Wait for client confirmation to proceed
53
SOCIAL WELFARE PROJECTS
TOWN PROJECT EXPEND TIME PROG COMMENTS
Thabo Mofutsanyana Victim Support Center       Documentation will be completed 20 Feb 2007
Bloemfontein Monument Place of Safety Secure Care R 2,39m 100 98 Contractor asked for extension of time until January 2007
54
REVENUE
55
REVENUE BUDGET R251mPROJECTION R245m
56
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

57
REVENUE 6 month target R125.7m 6 month
actual R118.3m
58
REVENUE CLASSIFICATION
CLASSIFICATION ITEM BUDGET ACTUAL 30Sep 06 Collected
MOTOR VEHICLE LICENCES TAX MOTORVEHICLE LICENCES TAX -190,581,000 -84,961,300 45
SALE GOODSSERV PRODUCED BY DEPT DRIVERS LICENCE APPLICATION FEES -8,147,000 -4,430,297 54
SALE GOODSSERV PRODUCED BY DEPT LEARNER LICENCE APPLICATION FEES -4,000,000 -2,876,594 72
SALE GOODSSERV PRODUCED BY DEPT CONV DRIVERS LICENCE - CARD TYPE -4,000,000 -2,571,800 64
SALE GOODSSERV PRODUCED BY DEPT ABNORMAL LOADS LICENCES -3,473,000 -2,409,635 69
SALE GOODSSERV PRODUCED BY DEPT RENTALOFFICE BUILDINGS -8,010,000 -1,540,584 19
SALE GOODSSERV PRODUCED BY DEPT TESTING ROAD WORTHY FEES -2,000,000 -1,188,025 59
SALE GOODSSERV PRODUCED BY DEPT RENTALPARKING COVEREDOPEN -2,250,000 -1,185,764 53
SALE GOODSSERV PRODUCED BY DEPT SPECIAL LICENCES NUMBERS -2,000,000 -1,124,884 56
SALE GOODSSERV PRODUCED BY DEPT DUPLICATE DOCUMENTS LICENCES -1,500,000 -1,097,721 73
SALE GOODSSERV PRODUCED BY DEPT PUBLIC DRIVERS PERMITS -1,400,000 -879,483 63
SALE GOODSSERV PRODUCED BY DEPT TEMPORARY SPECIAL PERMIT -999,000 -842,996 84
SALE GOODSSERV PRODUCED BY DEPT LEARNERS CERTIFICATE -1,300,000 -782,135 60
SALE GOODSSERV PRODUCED BY DEPT ROAD WORTHY CERTIFICATE -1,000,000 -493,109 49
SALE GOODSSERV PRODUCED BY DEPT SERV REND COMMISSION INSURANCE -830,000 -411,373 50
SALE GOODSSERV PRODUCED BY DEPT MOTOR VEHICLE REGS PERSONAL -800,000 -400,271 50
SALE GOODSSERV PRODUCED BY DEPT ACTIVITIES ON PUBLIC ROADS FEES -400,000 -386,512 97
SALE GOODSSERV PRODUCED BY DEPT DRIVERS LICENCE CERTIFICATE -500,000 -176,460 35
SALE GOODSSERV PRODUCED BY DEPT SALESTENDER DOCUMENTS -180,000 -168,619 94
SALE GOODSSERV PRODUCED BY DEPT RENEWAL DRIVERS LICENCES -2,000,000 -155,867 8
SALE GOODSSERV PRODUCED BY DEPT MOTOR VEHICLE REGIS SPECIAL -400,000 -155,566 39
59
REVENUE Classification (Continue)
CLASSIFICATION ITEM BUDGET ACTUAL 30Sep 06 Collected
FINES COURT FINES -11,746,000 -6,324,521 54
FINES IMPOUND FEES -1,000,000 -1,075,270 108
SALES OF LAND SUBSOIL ASSETS SALES OF LAND -1,500,000 -1,016,155 68
REVENUE FINANCIAL ASSETS REVFAREC OF PREV YEARS' EXP - -649,973
REVENUE FINANCIAL ASSETS REVFARECPRV SECCON DEPT DEBT - -366,267
REVENUE FINANCIAL ASSETS REVFACASH SURPLUSES - -78,355
REVENUE FINANCIAL ASSETS REVFARECPRIV STRANS-RES-WORK - -48,314
REVENUE FINANCIAL ASSETS REVFASTALE CHEQUES - -11,565
REVENUE FINANCIAL ASSETS REVFAUNALLOCATED CREDITS - -361
REVENUE FINANCIAL ASSETS RECFARECPRIV SECSTAFF DEBT - -7
60
THANK YOU