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MTEF budget presentation

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1 MTEF budget presentation
City of Ekurhuleni IRPTN Budget Proposal MTEF budget presentation 12 September 2013 Confidential

2 Contents Situation analysis and full network plan Phase 1 rollout
Progress to date and anticipated progress Financials Integration & TOD Acronyms : CoE = City of Ekurhuleni DoT = National Department of Transport DTP&P = CoE’s Department of Transport Planning and Provision NT = National Treasury TOD = Transit Oriented Development Confidential

3 1. Situation Analysis and Full Network Plan
This section provides the problem statement and the rationale for selecting the route for Phase 1.

4 Situation Analysis - review of needs
Historically Ekurhuleni comprises of 9 towns, along the east-west mining belt and includes: the country’s highest density of passenger & freight rail network, with planned upgrades over the next two decades, servicing predominantly the mining belt and commuters along a north-south route to the west of Johannesburg; Of the population (in excess of 3 million people), the highest demand for public transport (128,629 total daily passenger trips) emanates from historically disadvantaged communities, i.e. 65% of the population, living in settlements at the four corners of the City: 24% in the Vosloorus area; and 15% in the growing Tembisa area. The supply of public transport is poor: 50,000 Rail passengers (39%); 2,237 Bus passengers, serviced by 3 municipal bus entities and 2 private subsidised bus companies (2%); with the balance of 76,392 being filled by minibus taxis (59%) In addition there is a large flow of passengers across the municipal borders to and from City of Johannesburg and City of Tshwane.

5 Main Mode Of Transport - All Trips

6 Full network plan - phasing
7 trunk routes will be implemented over a number of years, in 5 phases, depending on design, financial, operational and other considerations. Trunks Phase 1 - 5 Golden Triangle City boundary Rail Main PRASA lines Phase 1 Phase 5 Phase 4 Phase 2 Phase 3

7 2. Phase 1 Rollout Current design and planning is for full Phase 1 route. Phase 1A includes the trunk and feeder routes as well as complementary routes from Tembisa to OR Tambo International Airport. Phase 1B includes the complementary/express route and feeder routes from OR Tambo International Airport to Boksburg. Phase 1C includes the complementary/express route from Boksburg to Vosloorus. Over time, could build extra depot and extend trunk/feeder routes.

8 High-level description of route
Phase 1 – key indicators Sub- phase High-level description of route Distance (trunk) No. of stations Daily passengers (2016) Depots 1A Tembisa civic centre – OR Tambo international airport 20.45 km 22 27 000 1 1B OR Tambo international airport - Boksburg CBD (Complementary/Express) 12.5 km Only stops, no stations 1C Boksburg CBD – Vosloorus (Complementary/ Express System) 17 km 10 000 2 (holding areas) 1AA Ekurhuleni – Johannesburg Under discussion with CoJ, linked to CoJ’s Phase 1C 1AAA Ekurhuleni - Tshwane Under consideration

9 Phase 1 Operations Trunk Feeders Direct/Limited stop Rail
Links to CoJ & CoT City boundary 1 1 Depot – Tembisa Holding area – Vosloorus or Kempton Park 2 2 Articulated buses Standard buses 3 min headways in peak Total of trips per day on full system 2

10 Phase 1A Operations Trunk Feeders Complementary City boundary Rail
Tembisa Daily passenger trips between Tembisa and OR Tambo International Airport = trips OR Tambo International Airport

11 Phase 1A Infrastructure
Trunk route 20,45 km Feeder routes Complementary routes Depot – Tembisa Holding area – Kempton Park or Vosloorus Trunk stations (22) 9 double modules, 13 single Services to transfer at KP West Station to link with CoJ Phase 1C Rail 1 1 2 T T R 3 333,60 million 2

12 Phase 1B & 1C (Express Complementary) Operations
Trunk route Feeder routes Complementary routes Holding area – Kempton Park or Vosloorus Trunk stations Rail 2 Vosloorus to Kempton Park CBD Limited stops – express/complementary service between Vosloorus and Kempton Park CBD: Only stop locations provided, no IRPTN stations; Peak period headways 10 minutes initially; Service to use mixed traffic lanes between Vosloorus and OR Tambo International Airport (bus priority to be provided at traffic bottlenecks); Service to use IRPTN lanes between OR Tambo International Airport and Kempton Park CBD; Buses to turn around in Kempton Park CBD. 2

13 Phase 1 - vehicles VOC Fleet Benchmark Costs Unit Cost incl. VAT
Articulated buses R Feeder buses R Tow truck R Support vehicles R Required vehicles Artic Std Phase 1A 27 105 Phase 1B Phase 1C 40 VOC Additional Costs Once-off driver training Licence Maintenance plan Ticket validation system Tracking system Entertainment/advertising system Transaction costs for financing vehicle (incl. transaction adviser and arranger’s commission) Interest

14 3. Progress to date and Anticipated Progress

15 Overall Project: Progress to end of Aug 2013
Work-stream % Completion Comments Operations Plan Initial Refinement 100% 40% Completed in November 2012 Refinement has commenced, following the appointment of the Preliminary and Detail Design consultant. Business Plan 76% Progressing well. Communications and Marketing Current service provider completed. New tender being advertised September 2013. Household Surveys Draft report has been submitted for comment. CITP 80% Preliminary and Detailed Design 20% Project Management 90% Existing contract expires in November 2013. New Project Management Office unit to be appointed in December 2013

16 Attainment of UA targets
Measure Detail Progress 1 Universal Design Access Plan (UDAP) Development of a DoT approved plan for the municipality, for the current project phase 2 Appointment of an access consultant Appointment of a suitably qualified access consultant 3 Conforming to national legislation NLTA 2009 Building Regulations 2008 Promotion of Equality and Prevention of Unfair Discrimination Act 2000 4 Conforming with PTIS grant conditions Production or update of the approved UDAP and meeting minimum standards of Part S of the Building Regulations in all infrastructure elements 5 Conforming with the PTIS grant guidelines The requirements provided in the PTIS grant guidelines have been met Key: 0) Not achieved, 1) partially achieved, 2) halfway, 3) nearly achieved, 4) completely achieved 1 2 3 4 1 2 3 4 2 3 4 2 3 4 1 2 3 4

17 UA Problems and Mitigations
Programme Problem identified Mitigation measure UDAP Under evaluation 1 Transport planning Station positions Evaluation of options 2 Operational context Requires further detail Detail design phase 3 Marketing and communications Need for accessible media Branding intelligibility Accessible websites under development 4 Customer care No clear customer care approach Customer care system under review 5 Fare system Subsidy structures not addressed Fare structures to be evaluated 6 Passenger information Systems need development Detail systems under development 7 Vehicles No decision on vehicle formats Formats to be evaluated in the detail design phase

18 UA achievements Programme Achievement UDAP Initiated 1
UDAP Initiated 1 Transport planning Ops plan reviewed 2 Operational context 3 Marketing and communications 4 Customer care Initiated, initial feedback from stakeholders 5 Fare system 6 Passenger information 7 Infrastructure Ops plan reviewed, route assessed. 8 Vehicles Ops plan reviewed, feedback from stakeholders

19 Anticipated % completion through 2013/14
Month Status of Plans Operational Business Finance Industry Transition Operating Contracts Preliminary Design Detailed Design % complete at start of municipal financial year START OF YEAR 81 80 75 25 10 July August September October 100 November December 50 January February March April May June Planned % complete at end of municipal financial year END OF YEAR

20 Overall project plan (Phase 1)
Financial years / / /16 Q1 Q2 Q3 Q4 Project Management Business Plan Industry Transition Marketing & Comms Universal Access CITP Prelim & Detail Design Construction Bus procurement ITS & Fare System Launch Financial year Complete Business Plan. Refine Ops Plan. Design Phase 1A. Advertise & award 1A contracts. Commence with NMT and comp routes Construct Phase 1A. Systems design of full network (integration with rail, other metros). Design Phase 1B. Completion of Phase 1A. Launch Phase 1A. Advertise & award 1B contracts.

21 Progress and Anticipated Progress (up to Dec 2013)
Month Operations Plan Business and Finance Plans Industry Transition Bus Fleet Infrastructure Jul-13 VOC Financial Model and VOC input costs refined Project office set up Joint MOU agreed Aug-13 Household Survey Report approved  Further discussions with PRASA Commence engagement with bus financiers  Sep-13 Demand Model updated Money flow model finalised Affected Operators identification process commences Oct-13 Final refined Ops Plan and Agreement with PRASA Facilitator appointed Secretariat established. Bus fleet strategy finalised  Commence with construction of NMT infrastructure Nov-13 IRPTN Unit Structure approved, Business Plan finalised Negotiation Plan finalised. Bus specs finalised Preliminary Design completed Dec-13 Scenario/stress testing Roads tender drawings docs completed for selected packages 

22 Anticipated Progress (Jan 2014 – Jun 2014)
Month Operations Plan Business and Finance Plans Industry Transition Bus Fleet Infrastructure Jan-14 Selected Roads bids advertised Commence with upgrade of feeder roads Feb-14 Balance of Roads tender drawings and docs completed Mar-14 MLTF approved Affected operators verified Rest of Roads Bids advertised Apr-14 Business Plan and financial model approved  Negotiation plan approved Bus tender advertised Selected Roads bids awarded EIA approvals done May-14 Negotiation Plan agreed with affected operators. Negotiating structure agreed All other infrastructure Bids advertised Jun-14 VOC Financial Model finalised. Negotiations commence   Tender awarded “Roads” bids awarded (to start in July)

23 4. Financials

24 Financials for previous financial year
Finance details for period ending June 2013 Rands PTISG Funds received up to 30 June 2013 Rollover amount carried over from prior year Expenditure up to 30 June 2013 Balance of funds at 30 June 2013 % of grant funds spent up to 30 June 2013 73.4% Firm committed amounts CITP Preliminary & Detailed Design Industry transition advisory Business Plan Rollover requested for 2013/14 Reason for under-expenditure Primarily the high (72%) discount bid by the appointed Prelim & Detail Design Service provider Actions to ameliorate under-spending Various bids advertised for PSP’s. Early commencement of certain works planned via existing contracts

25 Projected expenditure 2013/14
(amounts in R millions) 2013 (July Sept) Q1 2013 (Oct- Dec) Q2 2014 (Jan- Mar) Q3 2014 (Mar- June) Q4 TOTAL Area Expenditure item PTI Grant Planning costs Project Management 0.20 1.50 3.60 5.50 Operations Plan (UDAP) 0.00 0.45 0.55 1.00 Business Plan 0.96 1.44 2.16 6.00 Marketing & Comms Plan 0.84 2.66 3.50 7.00 Prelim and Detailed Design 4.80 7.20 10.80 30.00 Other (Legal: Support) 0.60 0.90 1.30 2.20 5.00 Other (CITP) 2.00 4.00 Other (Town Planning – Depots) Other (ITS Service Provider) 1.35 1.65 3.00 Other (Universal Access Design) 0.06 0.09 0.13 0.22 0.50 Equipment costs Infrastructure costs NMT, Feeders/ Complementary, Selected Trunk sections 8.80 33.87 104.13 146.80 Infrastructure maintenance costs Transitional costs Industry compensation Other (Industry Transition) 3.48 5.21 6.87 10.74 26.30 Other (Capacitation – ME) 1.80 2.70 3.90 6.60 15.00 Operating costs 14.32 29.38 60.28 146.28 251.10

26 Anticipated financials for this financial year (2013/14)
Finance details for period ending June 2014 Rands PTIG Funds to be received up to 30 June 2014 Rollover amount carried over from prior year Expenditure up to 30 June 2014 Balance of funds at 30 June 2014 % of grant funds spent up to 30 June 2014 97% Anticipated firm committed amounts Rollover to be requested for 2014/15

27 Cash Flow in 2013/14

28 Projected grant expenditure in MTEF period
Area (amounts in R millions) 2013/14 2014/15 2015/16 TOTAL Expenditure item PTI Grant Planning costs 63.00 43.20 33.30 139.50 Equipment costs (AFC & APTMS) 200.00 300.00 500.00 Infrastructure costs Roadway civil works 40.20  558.00 629.00 Top structures for stations / stops 122.00 244.00 Depots 104.00 208.00 Control centre  10.00 30.00 70.00 110.00 Land and property acquisition 5.00 20.00 25.00 Other (Land Acquisition – Depot) 15.00 Other (Move/Protection services - owners) 10.00 Other (Professional fees)  3.00 23.00 Other (Feeder, Comp stops) 55.00 Other (Feeder road upgrades)  48.60 132.00 125.40 306.00 Other (Holding areas) 35.00 Other (NMT) 40.00 60.00 Infrastructure maintenance costs Transitional costs Industry compensation Other (Industry Transition) 26.30 33.80 25.80 85.90 Other (Capacitation – ME) 90.00 145.00 Operating costs 251.10

29 Project Funding: MTEF period and beyond
The City’s IRPTN planning beyond 2015/16 is dependent on a host of variables, inter alia the extent of funding received; the extent of upgrading by PRASA; etc. The plan is to implement Phase 1A of the project in the current MTEF period and then to commence with further phases in Anticipated Expenditure and Funding is indicated on the following slide. Ekurhuleni Capex funding as indicated is only for the approved MTEF period. It is possible that further funding will be made available for 2016/17 and 2017/18. If insufficient funding is allocated by NT to CoE in 2014/15 and beyond: Infrastructure contracts can not be awarded in 2013/14 (minimum allocation); The project will not be operationalised in 2015/16 contrary to communications made to communities and political directives (reduced allocation); CoE will fall further behind the other Metros, particularly its neighbours in Gauteng, in terms of IRPTN/BRT implementation, potentially negatively impacting on the communities within CoE

30 Project Funding for MTEF period & beyond (Rm) (Excluding Operational Costs/Income)
Description 2013/14 2014/15 2015/16 2016/17 2017/18 EXPENDITURE Planning 63 43 33 44 Infrastructure (Incl. ITS) 147 1 276 1 515 1 065 1 265 Entity/Transitional Costs 41 74 141 140 Vehicles (buses) 414 400 Totals: 251 1 393 2 103 1 249 1 948 FUNDING PTIG 257 1 182 1 430 1 549 Ekurhuleni Capex 211 259 Financing (buses)

31 Summary – state of readiness
We are committed to rolling the IRPTN out, and need DoT’s and NT’s continued support. All required work streams have been appointed. The status of each has been noted below: Project Management – current contract ends Nov 2013, ToR being issued for new contract; Operations Plan – final plan completed Nov 2012, currently being revised with new input; Business Plan – contracted up to Mar 2014, currently consolidating Business Plan document; Industry Transition – engaging operators through MoUs and industry transition forum, with advisors, project office and facilitator supplied by City; Communication and Marketing – contract expired Jun 2013, completed public participation and development of marketing plan; ToR for new contract in preparation Universal Access Design – appointed Jan 2013, currently developing UAD plan; Household Travel Survey – completed Jul 2013 giving us latest demand figures; Comprehensive ITP – to be concluded in Dec 2013; Preliminary & Detailed Design – appointed Apr 2013, undertaking a refinement of the Ops Plan and busy with preliminary designs. Additional work streams are envisaged as follows: Vehicle Procurement process – to start Jan 2014; Construction of NMT infrastructure – to start in Oct 2013; Construction of Phase 1 trunk infrastructure, depot and control centre – to start in Jul 2014; ITS and fare management systems procurement – to start in Jul 2014; Systems testing (pilot) – to commence end of 2015; Launch (start of operations) is scheduled for early 2016.

32 Summary – state of readiness (Committed)
INFRASTRUCTURE READINESS AS FOLLOWS: Roadway Infrastructure: Preliminary and Detail designs underway NMT: Identification of routes feeding the trunks have ben identified and construction of NMT in Tembisa and Kempton Park will start in October. TMC : site has been identified ( existing metro DEMS building) – Needs assessment for the TMC to be completed by end November and refurbishments to start early 2014. Feeder & Comp routes : Commencement of upgrades on the routes and major intersections. Land identification: for Depot and Holding areas process has commenced ( Combination of Municipal and Private owned land)

33 5. Gauteng Integration

34 Destination Of Motorised Trips Starting In Tembisa

35 Integration with MSDF and CIF
3 1 4 5 7 8 Kempton Park Tembisa Germiston Vosloorus Katlehong Boksburg Benoni Aerotropolis Windmill Park Dawn Park 2 6 Serves three Primary Nodes: Tembisa, Kempton Park and Boksburg Will serve 8 major Planned Investment Projects with “near certainty” of being built between 2013 to 2021: Aligned with the Phase 1 Densification Corridor - major housing projects and high density infill areas No. Development Name 1 Tembisa Urban Renewal 2 Nyoni Park Precinct 3 Aerotropolis 4 Jansen Park Extension 5 Balmoral Extension 6 Leeupoort 7 Extension of Windmill Park 8 Extension of Vosloorus & Tambokiesfontein

36 Rail Stations scheduled
for upgrades and TOD TOD: Kempton Park Rhodesfield Isando Residential TOD: Leralla Station Limindlela Station Tembisa Station (Oakmoor Station)

Taxi rank option B Proposed new multi-level (2-storey) intermodal on PRASA land, long distance taxi rank on CoE land Long Distance Taxi Rank- CoE Land CoE Land Taxi Rank- PRASA LAND Market Square SITE BOUNDARY LINE Pedestrianise Plantation Road New short- distance bus terminal HOLDING FACILITIES TO BE PROVIDED OFF SITE NEW FOOD COURT NEW RETAIL 2 LEVEL TAXI RANK

38 Integration with Johannesburg’s REA VAYA
Initial integration envisaged in the Tembisa / Ivory Park area affecting Johannesburg’s Phase 1C route and Ekurhuleni’s Phase 1A route. Recent engagements with the CoJ: June 2013 Meeting with CoJ officials was held to discuss Ekurhuleni planning process and need to understand Johannesburg Phase 1C program; CoE would liaise with CoJ Phase 1C consulting team led by GIBB; August 2013 (with GIBB): Start the detailed discussions of how to integrate the planning processes; Planning data and information would be exchanged to allow for the Ivory Park area to be included in the Ekurhuleni transportation planning model; Data swop has started; Interfacing of services needed to take into account the interface between the Rea Vaya high floor system and Ekurhuleni low floor system; Phase 1C planning process to be completed in April Operations interface needs to be completed by end February 2014.

39 Engagements with Gauteng Province
Ekurhuleni IRPTN is included in Gauteng’s 25-year Integrated Transport Master Plan Ekurhuleni participates in the Integrated Fare Management committee under the leadership of the Gauteng Department of Roads & Transport. Initial discussions held with officials from the Gauteng Department of Roads & Transport regarding the use of provincial routes for the provision of trunk bus routes. Further engagement to take place once plans have progressed. Operational Plan was presented to the Gauteng Province and regular feedback is given at the HODs forum meetings and MEC/MMC meetings. CoE also some of functions on transport planning to be undertaken by the proposed Gauteng Transport Commission – further engagements are in place CoE is in the process of setting up the MLTF and is also moving towards investigating the best way to set up the MRE. .

40 Capital Investment Framework AND Strategic Land Parcels in Ekurhuleni

41 CIF - IRPTN integration
IRPTN network has been incorporated into the CIF as per the Operational Plan. Phase 1A and B of the route are first priority. Phase 1A and 1B - demarcated as part of GPA 1 runs from the Tembisa Civic Centre through to the O.R. Tambo International Airport (Jones Road) and through to Boksburg. Phase 1C - demarcated as GPA 2 runs from Boksburg through to the New Natalspruit Hospital in Vosloorus. The remaining IRPTN trunk routes - demarcated as part of GPA 3, based on a 20-year timeframe for potential implementation. Blue = GPA 1 (3 years) Yellow = GPA 2 (10 years) Green = GPA 3 (20 years)

42 Proposed MSDF densities
Densities in terms of the MSDF along the BRT corridor and the PRASA stations: Proposed densities per type of node Proposed densities along corridors Road classification List of corridors Land use Density targets 2025 units per hectare (Minimum–Maximum) Transportation corridors Albertina Sisulu Corridor; Germiston Daveyton Corridor and the IRPTN Corridor - Mixed land uses at identified intersection nodal points. - Higher density residential 60 – 80 Activity corridors To be listed in RSDFs; mainly K-routes linking Primary Nodes - Local nodal development 110 – 130 Activity spine To be listed in RSDFs; mainly municipal roads linking Secondary Nodes - Residential - Business - Retail - All uses to be of a local and fine grain nature 40 – 60 Nodal Type Density targets 2025 Minimum Maximum Primary 110 * Secondary 100 160 Tertiary 90 140 Proposed densities around railway stations Distance 2025 (u/ha) Proposed density up to 500m from the station 110 – 200 Density targets between 500 m & m from the station (dwelling units per hectare (minimum – maximum) 90 – 160

43 Integration with MSDF and CIF
3 1 4 5 7 8 Kempton Park Tembisa Germiston Vosloorus Katlehong Boksburg Benoni Aerotropolis Windmill Park Dawn Park 2 6 Serves three Primary Nodes: Tembisa, Kempton Park and Boksburg Will serve 8 major Planned Investment Projects with “near certainty” of being built between 2013 to 2021: Aligned with the Phase 1 Densification Corridor - major housing projects and high density infill areas No. Development Name 1 Tembisa Urban Renewal 2 Nyoni Park Precinct 3 Aerotropolis 4 Jansen Park Extension 5 Balmoral Extension 6 Leeupoort 7 Extension of Windmill Park 8 Extension of Vosloorus & Tambokiesfontein

44 Strategic Land Parcels [for potential strategic investment opportunity]
Strategic land is defined as well-located land or land found in well-located area where development can be maximized and optimized: Tembisa Civic Centre (Iqgaqga CBD) New Natalspruit Hospital Development node/precinct (Vosloorus) Dries Niemand Stadium 6. Germiston-Boksburg mining belt (area around Comet Township in Boksburg) 7. Leeuwpoort Proper (East: Portions of R/113 Leeuwpoort 113 IR) 8. Leeuwpoort West (Van Dyk Park Township-73/113 Leeuwpoort 113 IR)


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