PRESENTATION TO THE PORTFOLIO COMMITTEE BRANCH : FREE BASIC SERVICES AND INFRASTRUCTURE

Overview : Branch Activities Chief Directorate Objectives CONTENTS Key Focus Areas Budget Allocations Main purpose Overview : Branch Activities Chief Directorate Objectives Milestone 2003/04 Challenges Overview : 2004/05 Business Plan Conclusions

FBS : KFA’s Addressing backlogs through infrastructure provision Enhanced service delivery through integration and coordination Enhanced access to basic services Full rollout of free basic services Enhanced public participation Strengthening the role of PPPs

Budget Allocations: Administration Subprogramme Expenditure Outcome Adjusted appropriation Medium-term expenditure estimate Audited Preliminary Outcome R Thousand 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 Management - 3 000 3 443 3 497 4 028 Municipal Infrastructure 7 015 6174 8 509 11 662 16 622 20 114 21 849 Free Basic Services Co ordination 267 350 935 1 260 3 247 4 085 5 415 Municipal Service Partnerships 2 294 2 420 2 541 Public Participation and Empowerment 4 094 903 1 755 3 094 3 383 3 610 5 429 Performance Management and Monitoring Systems 2 204 2 480 3 893 8 070 6 328 6 816 7 474 Total 11 376 7 427 11 199 19 016 28 989 33 726 39 262

Budget Allocations: Fiscal Transfers Subprogramme Expenditure Outcome Adjusted appropriation Medium-term expenditure estimate Audited Preliminary Outcome R Thousand 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 Provincial Transfers - Consolidated Municipal Infrastructure Programme 51 887 38 408 Municipal Infrastructure Grant 40 733 43 558 46 171 Local Government Transfers Consolidated Municipal Infrastructure Programmme 851 100 996 002 1 670 767 2 246 253 47 000 4 445 943 5 192 602 5 987 058 Local Economic Development Grant 80 459 86 944 110 565 117 000 Total 931 559 1 082 946 1 832 219 2 448 661 4 486 676 5 236 160 6 039 216

DDG : Mr. Patrick Flusk 4 Chief Directorates CHIEF DIRECTOR Ms Gabi Gumbi-Masilela FBS Ms Molatelo Montwedi MIG Ms Xoliswa Sibeko Public Participation And Empowerment Mr Muthotho Sigidi MSP’s

OVERVIEW OF THE BRANCH PROGRAMMES FREE BASIC SERVICES

Free Basic Services Coordination Objectives : Providing relief for the poor by ensuring the access to FBS Free Basic Water rolled out in 2001 Free Basic Energy/Electricity 2003/04 Free Basic Sanitation to be rolled out in 2004 Free Basic Refuse removal to be rolled out in 2005 Targeting approximately 20 million poor people with limited resources

FBS MILESTONES 2003/04 Free Basic Electricity pilot projects KZN Limpopo : Contracting the Free Basic Non Grid Energy. Rollout of the FBE by metros and bigger municipalities. Funding Agreement : Implementation of Free Basic Energy - Eskom/Municipalities/Energy concessionaries Provincial workshop with provinces and municipalities. Free Basic Services Task Team established. DPE /Eskom agreement re. financial concerns regarding the non-energy costs of providing FBS

Free Basic Services CHALLENGES Free Basic Services CHALLENGES * Poor communications between municipalities and communities * Municipal internal capacity to deliver FBS * Insufficient funding and data on actual beneficiaries * High cost of alternative FBS in areas with infrastructure shortage

Free Basic Services CHALLENGES Poor monitoring mechanisms Ability to pay vs. willingness to pay Lack of indicators of success Poor linkages with other social grants Poor metering and billing systems Poor communication

Free Basic Services Overview : 04/05 Business Plans Develop guidelines for indigent policy Develop a monitoring system to measure impact Consolidate the monitoring teams at provincial level to ensure synergy Develop capacity of municipalities to enhance deliver of FBS Develop communications guide for municipalities Review FBS policies

OVERVIEW OF THE BRANCH PROGRAMMES MUNICIPAL INFRASTRUCTURE GRANT (MIG)

Municipal Infrastructure Grant Objectives : Implement MIG Programme Main outputs: Funding basic infrastructure development Enhancing the EPWP Enhancing LED Job Creation Partnerships Inter-governmental coordination (MITT & MIT3)

MIG MILESTONES 2003/04 CMIP: R2,246 billion transferred to municipalities. 42,79% of the total allocated to nodes. Employment opportunities created Training provided (31% youth, 20% women). 336 SMME’s utilised in construction.

MIG MILESTONES 2003/04 R28.9m of the R47m utilised. MIG Policy Framework / MIG Formula Finalized MIG- DORA, cross-cutting and sector specific conditions DORA Allocations for 2004/05 determined: 96% (R4,4b) - Municipal infrastructure (includes committed DWAF and CMIP as well as uncommitted funds) 3% (R133m) SMIF (guidelines under development) 1% Program Management (R44 m) The PMU’s at municipal level have been identified MIG funding agreement completed

MUNICIPAL INFRASTRUCTURE CHALLENGES MIG management structures (PMITT, PMMUs, PMUs) Establishment of : Monitoring and Evaluation System Macro control audit for ensuring compliance at implementation level LEDF Non-infrastructure commitments Determining municipal infrastructure investment levels and grant requirements Development of MIG business processes The quantification of capital and O&M budgets of municipalities as require by DORA 2004

Municipal Infrastructure CHALLENGES Institutional Activities The full establishment of MIG unit by 31 March 2005. Establishment of MIG management structures (PPMUs & PMUs by 30 June 2004, PMITT by 31 July 2004) Monitoring and Evaluation Develop the monitoring system by 30 October 2004 and tested by 30 November 2004 Communication Technical MIG workshops to all Municipalities by 31 March 2005 Clarification of sector roles by September 2004. MIG Launch by end of July 2004 Funding Vs Modeling of Infrastructure Reviewing the costing model and also creating a GIS linkage by 31 March 2005 Develop the Municipal Infrastructure Investment Framework by 31 March 2005] Macro control Establishment of an independent macro control audit function

Overview : 04/05 Business Plans Transfer, administration and management of capital funds. Special Municipal Infrastructure Fund (SMIF) The full establishment of MIG unit by 31 March 2005. Establishment of MIG management structures (PPMUs & PMUs by 30 June 2004, PMITT by 31 July 2004) Develop the monitoring system

Municipal Infrastructure Overview : 04/05 Business Plans Communication Technical MIG workshops to all Municipalities by 31 March 2005 Clarification of sector roles by September 2004. MIG Launch by end of July 2004 Funding Vs Modeling of Infrastructure Reviewing the costing model and also creating a GIS linkage by 31 March 2005 Develop the Municipal Infrastructure Investment Framework by 31 March 2005 Macro control Establishment of an independent macro control audit function

MUNICIPAL SERVICES PARTNERSHIPS (MSP’s) OVERVIEW OF THE BRANCH PROGRAMMES MUNICIPAL SERVICES PARTNERSHIPS (MSP’s)

Municipal Services Partnerships Objectives : Create an enabling environment for the participation of the private sector in service delivery Enhance the levels of delivery by the private sector as a preferred option Encourages the sharing of capacities for efficient service delivery Established the MIIU to encourage private sector participation in service delivery

MSP MILESTONES 2003/04 National MSP Task Team established. MSP Stakeholder workshop MSP Training to 60 Councillors and officials Completion on the Support Unit for the Public Provision of Services (SUPPS)

Municipal Service Partnerships CHALLENGES Finalising MSP regulations and guidelines Further training on MSP’s Impact assessment of MSP’s Implement SUPPS model study Relationship with the MIIU HR capacity of the Chief Directorate

Municipal Service Partnerships Overview : 04/05 Business Plans Capacitate Ward Committees Strengthen CDW Program Monitoring & Evaluation system Hold provincial workshops

OVERVIEW OF THE BRANCH PROGRAMMES Public Participation & Empowerment

Public Participation & Empowerment Objectives : Facilitate effective communication between municipalities and communities Support the establishment of the Community development workers Ensures proper linkages between the Ward Committees and the CDW’s Ensures effective participation of communities in the decision making machinery of the municipalities

Public Participation & Empowerment Milestones 2003/04  CDW National Stakeholders worshop. CDW Rollout in 5 Provinces and Provincial CDW Task Teams established 740 CDW’s in learnerships

Public Participation & Empowerment CHALLENGES Intergovernmental communication and coordination Monitoring and evaluation, Funding in three provinces namely Western Cape, Free State and North West Ownership of the program by municipalities

Overview : 04/05 Business Plans Audit existing MSPs in municipalities Hold provincial MSP workshops Publicize the MSP guidelines Develop an Exit Strategy for MIIU Complete the MSP training Hold an International Conference on Service Delivery and Development

Public Participation & Empowerment Overview : 04/05 Business Plans

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