DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT JOINT BUDGET COMMITTEE 5 NOVEMBER 2002

DPLG MISSION AND MANDATE Develop and promote systems and structures of effective governance Develop and promote a system of integrated government between the spheres of government CORE LEGISLATIVE MANDATE: Derived from Chapters 3 and 7 of the Constitution and relevant local government legislation

STRATEGIC PRIORITIES Providing leadership and guidance to the process of local government transformation Providing direct technical and material support to provinces and municipalities in fulfilling their constitutional roles and functions Coordinating the implementation of the Integrated Sustainable Rural Development Programme (ISRDP) and the Urban Renewal Programme (URP) Establishing a policy framework for government wide integrated development planning

MTBPS CHALLENGES Basic Services and Infrastructure Investment Consolidating Local Government Coordinating the URP and ISRDP

MTEF SUMMARY MTEF BASELINE- 2002/3: R6.4bn 2003/4: R7.8bn 2004/5: R8.4bn 2005/6: R9.0bn Above confirms the relative increase of funding allocated to the provincial and local government spheres over the MTEF period

MTEF SUMMARY LG Equitable Share- 2002/3: R3.8bn 2003/4: R5.0bn 2004/5: R5.5bn 2005/6: R5.8bn Conditional Grants: Prov.- (CMIP & Capacity Building) 2002/3: R275m 2003/4: R271m 2004/5: R261m 2005/6: R277m

MTEF SUMMARY Conditional Grants: Local Government- 2002/3: R2.1bn 2003/4: R2.3bn 2004/5: R2.5bn 2005/6: R2.7bn Above grants: CMIP, LED Fund, Municipal Systems Improvement Grant

BASIC SERVICES AND INFRASTRUCTURE INVESTMENT CMIP OBJECTIVES: Ensure that all South Africans gain access to affordable services through the provision of capital grants for internal bulk and connector, internal infrastructure and community services and facilities OUTPUTS: Increases: 2002/3 - R1.6 to 2005/6 - R2.6bn Consolidate the merger of LED Fund and CMIP (2003) Strengthen link between IDP and infrastructure investment

OVERVIEW OF BACKLOGS FOR MUNICIPAL SERVICES Households below basic levels: 10% of urban households and 39% of rural households have a below basic service level for water; 26% of urban households and 76% of rural households have a below basic service level for sanitation; and 21% of urban households and 68% of rural households have a below basic service level for electricity

BASIC SERVICES AND INFRASTRUCTURE INVESTMENT CAPITAL GRANT CONSOLIDATION: Objective to improve impact of infrastructure investment by government through rationalisation OUTPUTS: phased consolidation of CMIP, Water & Sanitation, CBPW, NEP, Urban Transport Fund Major component be allocated through a transparent, multi-year formula Establish Programme Management Units within municipalities

BASIC SERVICES AND INFRASTRUCTURE INVESTMENT FREE BASIC SERVICES: Additional funds allocated to the LG Equitable Share for this purpose Water sector: good progress Electricity sector: pilots currently undertaken throughout the country FBS is dependent on infrastructure (imp of capital infrastructure grants) MIIU playing an important support role

CONSOLIDATING LOCAL GOVERNMENT Dec 2000 - 284 new municipalities Three phased approach to building developmental local government (establishement, consolidation, sustainablity) PCC - Dec 2001 adopted key resolutions to support LG transformation process Priorities: creating viable financial base (e.g. Property Rates Bill, augmenting institutional capacity (e.g. 35 PIMS centres, Capacity Building Grant), establish IDP Nerve Centre, finalised powers and functions of Bs & Cs, SA Cities Network established

URBAN RENEWAL PROGRAMME OBJECTIVE: To champion and facilitate sustainable development in the (initial) 8 urban nodes by implementing an innovative mode of planning, budgeting, delivery and governance PROGRESS AND PLANS: Basic institutional arrangements established across all three spheres Anchor projects identified - support mobilised Finalising national implementation framework Finalise a national urban policy

URBAN NODES

INTEGRATED SUSTAINABLE RURAL DEVELOPMENT PROGRAMME OBJECTIVE: To champion and facilitate sustainable development in the (initial) 13 rural nodes by implementing an innovative mode of planning, budgeting, delivery and governance PROGRESS AND PLANS: Institutional arrangements in place and support role of IDT Over 120 anchor projects identified - is some implementation in all nodes Allocated extra funds from CMIP & Equitable share Finalising national implementation framework

RURAL NODES

CONCLUSION Programmes to accelerate infrastructure investment are in place Progress on Free Basic Services Local government is key to the developmental efforts of the state generally - moved into the consolidation phase with increase and focussed support URP and ISRDP: key poverty alleviation frameworks for government coordination and good progress made

THE END THANK YOU ...