1. 1 13 -15 MARCH 2006 BUDGET PREVIEW PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS

2. 2 Key Policy Developments Affecting Budgeting Devolution of budgets and introduction of acccommodation charges GIAMA – more systematic planning, prioritisation of maintenance Envisaged devolution of Property Municipal Rates to the Provinces concerned has been delayed. It is however, envisaged that this process may still be finalised in the forthcoming financial year.

3. 3 New funding arrangements after devolution DPW Client departments, including DPW Devolved budgets: leases, maintenance, municipal rates and services Accommodation charges based on areas occupied Treasury Accommodation budget per department DPW vote Trading entity Treasury Quarterly invoices, MOU

4. 4 DPW Budget Vote Allocation for 2006/07 - Vote allocation for the 2006/07: R3 080 181 000 - Year-on year decrease as a result of budget devolution: R 2 879 599 000 - Breakdown per programme: Programme 1(Administration) : R 593 211 000 Programme 2 (Land and buildings) : R 2 369 024 000 Programme 3 (NPWP): R 98 808 000 Programme 4 (Auxilliary): R 19 138 000

5. 5 Analysis of DPW Vote Allocation by Standard Items (after devolution) (R’000) Personnel Budget R655 829 Administration R173 438 Office Rental* R150 401 Accommodation charge* R100 063 Backlog Maintenance* R450 000 Capital Works Budget R493 450 Municipal Rates on Provincial Prop R710 131 EPWP R 33 240 Facilities Management* R231 639 Transfer Payments to CIDB R 48 012 Transfer Payments to CBE R 8 000 Transfer Payment to Agreeme’nt Board R 6 840 Auxiliary Services R 19 138 TOTAL R3 080 181 *Funds to be transferred to Trading Entity

6. 6 Trading entity estimates of revenue: 2006/07 DETAILSAMOUNT RECEIPTSR’000 Accommodation Charges (State-owned)1 434 343 Operating Leases (Private Sector Leases)1 353 631 Municipal Services 1 187 486 Municipal services management fees60 000 Transfers Received450 000 Total Received4 485 459

7. 7 DETAILSAMOUNT PAYMENTSR’000 Leasing (Private Sector Landlords)1 353 631 Maintenance1 494 272 Municipal Services1 247 486 Rates on State Property390 070 Total Payments4 485 459 Trading entity estimates of expenditure: 2006/07

8. 8 Improvements in Funding Over the MTEF period, there has been a significant improvement in the baseline allocation for Property Management (including funds devolved to client departments) The maintenance allocation increased from R927 million in 2005/06 to R1 494 million in 2006/07 The following are some of the projects on which additional funds received for 2006/07 will be spent: –Expanded Pubic Works Programme: R10 million –Re Kgabisa Tshwane: R73 million –Border Control Operational Coordinating Committee (BCOCC): R190 million –Maintenance backlog: R450 million –Prestige projects of R73 million, the bulk of funds to be spent on Parliamentary Precinct Facilities Management

9. 9 Prioritised Maintenance Budget 2006/07

10. 10 THANK YOU