1. 1 01 August 2012 Executive Mayor Cacadu District Municipality Cllr K. Kekana Presentation to the National Council of Provinces

2. 2 CONTENTS 1.Introduction and Overview 2.Service Delivery Outlook 3.Water and Sanitation 4.Roads and Stormwater 5.Human Settlements 6.Community Services 7.Conclusion

3. 1.The Cacadu District Municipality and the Nelson Mandela Metro were created in 2001, from the erstwhile Western District Council. 2.Prior to 2001, the Western District Council main revenue source was Regional Council levies. The funds were primarily directed to fund infrastructure in the local municipalities / towns. 3.There was a significant reduction in the revenue stream of the Cacadu DM with the revenue base being reduced by 94%.The RSC levy income reduced from R155m to R15m. 4.Operations were downsized to ensure financial sustainability in the long term. The staff establishment was reduced from 255 to 56. 5.In 2001 it became evident that CDM had to develop a credible business strategy to remain relevant and add value in the District. 6.Various strategies were adopted to make the institution viable. However bulk infrastructure services remain a major challenge. BACKGROUND

4. Baviaans DMA Camdeboo Ikwezi The Blue Crane Route Kou-KammaKouga DMA Makana Ndlambe Sundays River Valley Nelson Mandela Metro LOCALITY 1

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6. 6 Cacadu is the largest District in the Eastern Cape, being about 58243 SQ KM in size Cacadu consists of 9 Local Municipalities namely: Camdeboo; Blue Crane Route; Ikwezi; Makana; Ndlambe; Sundays River Valley; Baviaans; Kouga and Kou-Kamma (30 towns and 25 settlements) Consequently, it has the longest road network about 8420km. Cacadu District has a population of about 388210 (census 2001). Global insight 420 000 (2010) Introduction

7. 7 Recent service economic study shows that about 38 % of the population is living below minimum acceptable income level. 4% Population living with less than R16/day. Africans experience high poverty levels. Unemployment is ranging at 21%. HIV/AIDS profile is escalating with 8 % population infected. Inequality is lower than national average but illiteracy higher compared to the Country. There is a steady improvement in education progress. Housing and Electrification are showing steady improvements. Agricultural annual growth is showing a rise since recession (Global Insight) of 2008 but still lower than the growth prior to the recession. Manufacturing industry is very limited ECONOMIC OUTLOOK

8. Agriculture and Tourism are the main economic drivers Agriculture consists of sheep, goat, dairy, beef, ostrich, citrus, apples, pineapples, chicory, wool, mohair Tourism includes National parks, game reserves, eco- tourism, coastal, adventure, festivals Government’s contribution to the economy cannot be underplayed. Lack of local economic activity in small towns affects the ability of LMs to raise their own revenues. ECONOMIC OUTLOOK

9. 90% of the population have access to water –(18% standpipes, 1.4 % boreholes, 1.4% Natural sources) Ndlambe has 69% access to water. Water demand will increase by 40% in 5 years. In Ndlambe and Kouga, this increase will reach 82% and 64% respectively (of the current supply), due to the influx of holiday makers, if the District can maintain is competitive edge on tourism. Ikwezi LM has the worst water shortages since it relies on boreholes for its water source leaving the municipality very vulnerable during dry seasons. There is a great reliance on boreholes in the district especially in the Ikwezi, Baviaans, Blue Crane (Pearston) and the rural areas of Makana. All LMs are WSA/WSP’s This function is generally poorly performed and under resourced with both technical skills, financial and material resources. INFRASTRUCTURE CHALLENGES

10. Consequently, water quality is poor and a health hazard in some areas. There is a need to focus at providing access to a basic level of service as well as increasing the capacity of existing bulk and reticulation connector infrastructure. Most of the Waste water treatment works in our area are over extended. Major upgrades in bigger town are needed e.g. Port Alfred, Humansdorp, Jeffrey’s Bay and Somerset East. There are still 5834 informal buckets in our area that needs to be eradicated. These areas are Kouga, Makana, Sundays River Valley and Blue Crane Route Municipality INFRASTRUCTURE CHALLENGES

11. There is also a challenge of VIP toilets in the district that need to be upgraded to a waterborne system in Makana and Ndlambe. (This cannot be achieved unless there is a sustainable water supply.) All the necessary infrastructure is however not in place. Maintenance and refurbish programme must be embanked on. Currently a large portion of the infrastructure is beyond design life and should have been replaced already by the Municipality. The funds allocated to Municipalities to do maintenance work is insufficient and this is causing acid stripping. No funds are available to do any refurbishment within the Municipalities. Reliance on MIG funding. INFRASTRUCTURE CHALLENGES

12. MIG ALLOCATION 12

13. Bulk requirements to address HUMAN SETTLEMENT Challenge MUNICIPALITYHOUSING NEEDS CHALLENGES Kouga11440Water & Waste water Makana14026Bucket & sanitation Ndlambe10026Sewerage System

14. The actual allocation on Capital Roads Projects by the Province is R76m for Cacadu 2012/13. This allocation is not proportional to the amount of roads in the District which is about 8420km in length. Roads in our District are in need of Rehabilitation and Upgrades. The District has key strategic routes which are used by Tourists; transportation of goods and services like Agricultural products But these roads remain gravel and receive low or no maintenance. A number of Provincial roads in the District remain incomplete although they were already started. eg. R75; the gravel road MR605 from N9 to Nieu- Bethesda. Roads listed (refer next slide) as critical condition amounts to R1.2b and this list was submitted to DRT & PW, R76m is a very small fraction to R1.2b. Roads, Transport & Public Works

15. LIST OF PRIORITY ROADS ROAD/ROUTELENGTHIMPROVEMENT NEEDED COST Surfacing74SurfacingR370m Gravel Road5SurfacingR25m Surfacing of R3377SurfacingR35m St.Georges to Addo R33544Overlaying wearing course R132m Zuurberg/Addo20SurfacingR100m Steytlerville to Willowmore concrete road 40ResurfacingR200m Main road R38915SurfacingR12,5m

16. SANITATION & WATER PROJECTS SUMMARY Service Delivery Needs No. of Municipalities Estimated CostComments Upgrading of Waste Water Works 6R166, 800mNo Funding Available Upgrading of Sewerage Reticulation 6R116, 663m Construction of Bulk Sewer Pipeline 6R122, 400m Construction/Upgrading of Water Treatment Works 5R170, 275m Upgrading and Construction of Bulk Water Supply 6R500, 119m Upgrading of Water Reticulation 3R106 737m Rainwater Harvesting 1R49, 950m TOTALR1, 182, 9, 950B

17. DISPOSAL SITES PROJECTS Service Delivery Needs No. of Municipalities Estimated CostComments Upgrading of Waste Disposal Sites 1R18, 000mNo funding Licensing of Waste Disposal Site 1R2, 000mNo funding Construction of Solid Waste Transfer Sanitation 1R5, 300mNo funding Rehabilitation of Landfill Sites 1R12, 000No funding TOTAL R37, 300m

18. ELECTRICITY PROJECTS Service Delivery Needs No. of Municipalities Estimated Cost Comments Installation of high Mast lightning 2R5, 450m No funding Available Installation of LV and MV Electricity Lines 1R15, 000m Upgrading and Extension of Electrical Network 1R50, 000m Housing Electrification 1R4, 000m TOTALR74, 450m

19. Community Facilities Projects Service Delivery Needs No. of Municipalities Estimated Cost Comments Construction of Multi-Purpose Centres 3R12, 600m No funding Available Construction and Upgrading of Sportsfield 4R50,229m Construction of Indoor Sporting Facility 1R12, 000m Upgrading and Refurbishing of Parks and Playgrounds 2R5, 100m Development of New Cemetries 1R10, 000m 6 TOTALR90 929m

20. 20 CONCLUSION *Although CDM is rated highly in terms of service ability of our communities, setting the existing infrastructure is over extended. *The existing capacities were designed in exclusion of unprecedented population growth which is a resultant of integrated human settlement planning, migration, economic growth of middle income black communities since 1994. *Existing infrastructure is dilapidating, reaching the end of its design life, thus maintenance costs are also escalating. *Provincial Allocation of Roads Infrastructure is insufficient, unfair to our communities and other road users crossing the District to other Provinces. *A massive backlog of around R3.5B is herewith submitted with details in the narrative.

21. 21 THANK YOU