PUBLIC TRANSPORT AND SYSTEMS FUND (PTIF) Department of Transport 2006 DORA 1 ST QUARTER REPORT TO NCOP SELECT COMMITTEE ON FINANCE 13 OCTOBER 2006

Contents  Background  Context  PTIF Requirements  PTIF Projects  Role of DOT  Breakdown  Monitoring And Evaluation  Responding to challenges  Concluding Remarks Department of Transport

Background  Established March 2005 as public transport conditional grant.  Focus on infrastructure investments to to prioritise and ensure improved priority and better operations for public transport and NMT.  2005/06 – R241,7m; 2006/07 – R700m*; 2007/08 – R1800m; 2008/09 – 1000m, TOTAL = R3.74bn  Beneficiaries are municipalities and service delivery agencies.  With regard to local government funds are transferred in terms of DORA mechanisms. * R700m = R519 (for municipalities) + R180m (SARCC) + R1m (CBRTA) Department of Transport

Context  Main purpose of the fund: to improve public transport infrastructure and systems in the country.  In the earlier years leading to year 2010 the focus will be to fund projects that have an impact on the hosting of the WC  For 2005/06 and 2006/07 allocation was based on potential host venue cities in terms of the WC Bid Book.  Ultimate aim is to cover the whole country with regard to transport improvements/ investments. Department of Transport

Key Requirements for PTIF Funding  Projects should –prioritise public transport, –satisfy both long term mobility (legacy) and event specific mobility requirements, –have continuity from planning to execution, –be executed in accordance with govt. procurement and related requirements, –be based on local IDPs and ITPs, addressing community access and mobility needs, and –be practical and implementable ahead of 2010.

PTIF Projects  Request areas predominantly road and rail public transport and non-motorised transport  Project types include planning, physical infrastructure and systems  Planning includes transport planning, detailed project plans and designs  Infrastructure and systems projects include:  Public transport road infrastructure  Public transport interchange facilities  Rail upgrades  Inter-modal facilities  HOV lanes  BRT systems  ITS infrastructure and systems  NMT infrastructure  Inner-city mobility systems  Call centre systems  Public transport vehicles  Airport- City links Department of Transport

Role of DOT  Coordination.  Draft and co-sign MOUs based on business plans and/or priority statements – to facilitate funding transfers.  Provide technical support – planning and delivery management.  Monitoring and evaluation.  Reporting in terms of DORA requirements.  Guide implementation and prioritisation.  Identify and where possible remove barriers Department of Transport

Allocation Breakdown (1) BeneficiaryTotal Amt.Paid to date Nelson Mandela Bay Municipality 69m30m Mangaung Local Municipality29.5m19m Ekurhuleni Metropolitan Municipality 27.7m0** City of Johannesburg184m60m City of Tshwane11m Department of Transport

Allocation Breakdown (2) BeneficiaryTotal Amt.Paid to date West Rand District Municipality 1.5m eThekwini Metropolitan Municipality 11.8m Polokwane Local Municipality10.5m Mbombela Local Municipality0.83m Sol Plaatjie Local Municipality1.5m0** Department of Transport

Allocation Breakdown (3) BeneficiaryTotal Amt.Paid to date Potchefstroom Local Municipality 1m0** City of Matlosana (Klerksdorp) 30.5m0** City of Cape Town120m40m Stellenbosch Local Municipality 20m10m ** municipalities that have not signed MOU’s Department of Transport

Monitoring and Evaluation  A Monitoring and Evaluation team has been appointed.  Key findings so far:  Serious capacity challenges at local level.  Cumbersome procurement processes.  Need for dedicated technical support.  General lack of understanding of PTIF spending and reporting requirements  Increasing demand in the civil and construction industries likely to increase costs and ‘choke up’ these industries; as all cities earnestly start with implementation programmes. Department of Transport

Responding to challenges  In and attempt to address identified challenges the DOT will:  Ensure everybody sign the MOU’s and abide thereby.  Appoint a team of project and programme managers to provide technical support to municipalities – to ensure adequate planning and proper delivery management.  Drive the implementation of the Transport Action Plan that incorporates local transport plans in preparation for WC  Develop an Inter-sphere Implementation Framework  Use a “hands on” intervention approach  Expand role of provinces in supporting municipalities

Concluding Remarks  The PTIF came at the right time when the country prepares for hosting the WC  Even though there were ‘teething problems’ the Department has managed to address most of them and the fund is being managed properly. (may need rephrasing)  Cannot over-emphasise that projects must begin, and funds must be spent  Oversight to beneficiaries, and appropriate interventions, where necessary, remain key determining factors for success.

Thank You Department of Transport