Select Committee on Finance (NCOP) Department of Transport Select Committee on Finance (NCOP) Budget Vote 33 7 March 2006

Content of presentation Department of Transport Content of presentation Overview of Medium Term Budget allocations Expenditure trends Conditional Grants

Recent allocation history Department of Transport Recent allocation history MTEF Cycle R’000 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2003 Baseline 6,159,709 6,451,172 6,817,522 7,226,573 + 2004 Additional 307,872 307,905 357,927 = 2004 Baseline 6,759,044 7,125,427 7,584,500 7,963,725 + 2005 Additional 476,732 658,728 1,301,364 = 2005 Baseline 7,602,159 8,243,228 9,265,089 10,087,829 + 2006 Adjusted 3,138,846 + 2006 Additional 4,627,230 4,334,223 5,425,242 = 2006 Baseline 10,741,005 12,870,458 13,599,312 15,513,071 Conditional Grants included in 2006 Baseline: Local Government: Public Transport Infrastructure Fund 241,710 519,000 624,000 1,790,000 Provincial Government: Gautrain Rapid Rail Link 3,241,000 2,151,000 1,736,000

Additional allocations in 2005/06 Adjusted Budget Department of Transport Additional allocations in 2005/06 Adjusted Budget Details R’000 2005/06 Rollovers: Aviation policy 1884 African Union Conference 5900 Oil pollution contract – unpaid invoices 4000 Set up an office in the U.K. for the IMO representative Arrive Alive – unpaid invoices 19937 Complete overload control facilities in Limpopo, North West and KZN provinces 4213 Unforeseen and unavoidable expenditure: Difference in escalation and fuel price for bus subsidies 19230 Other adjustments: Public Transport Infrastructure Fund 241710 VAT adjustment for the SARCC 126621 Reduction in SARCC budget – transfer to Safety & Security (20000) Road Acident Fund 2700000 Total 3138846

Additional allocations in 2006 MTEF Department of Transport Additional allocations in 2006 MTEF Details R’000 2006/07 2007/08 2008/09 Road Infrastructure Framework 400 000 600 000 900 000 Passenger Rail 200 000 500 000 Road Accident Benefit Scheme 14 000 Transport Regulation 5 000 10 000 15 000 Regional Indicative Strategic Development 45 000 30 000 Rural Transport Strategy PTIF: S.A. Rail Commuter Corporation 180 000 376 000 PTIF: Cross Border Road Transport Agency 1 000 Devolution of funds from Public Works 12 230 13 223 14 242 PTIF: Local Government: Public Transport Infrastructure and Systems 519 000 624 000 1 790 000 Provincial Government: Gautrain 3 241 000 2 151 000 1 736 000 Safety and Security (20 000) Total 4 627 230 4 334 223 5 425 242

Summary of 2006 Baseline Details R’000 Actual 2002/03 2003/04 2004/05 Department of Transport Summary of 2006 Baseline Details R’000 Actual 2002/03 2003/04 2004/05 Budget 2005/06 2006/07 2007/08 2008/09 Rail 2,227,419 2,360,148 2,498,550 2,844,677 3,161,140 3,775,197 4,502,717 Bus 1,846,724 2,068,500 2,172,740 2,297,753 2,415,235 2,535,997 2,789,596 Roads 1,203,064 1,290,556 1,440,789 1,752,720 2,292,075 3,041,929 3,509,964 Taxi 6,497 9,898 10,000 260,600 323,066 328,460 361,473 PTIF: Local Govt. 241,710 519,000 624,000 1,790,000 PTIF: Other 181,000 376,000 RAF 2,700,000 14,000 Gautrain 3,241,000 2,151,000 1,736,000 Other 434,480 503,441 557,789 643,545 723,942 766,729 813,321 Total 5,718,184 6,232,543 6,679,868 10,741,005 12,870,458 13,599,312 15,513,071 Growth 15,8% 9,0% 7,18% 60,8% 19,8% 5,7% 14,1%

Department of Transport Major allocations

Breakdown of major other budgets (2006/07) Department of Transport Breakdown of major other budgets (2006/07) Details R’000 % Compensation of Employees 157,678 21.8% Road Traffic Management Corporation (incl. NaTIS and Arrive Alive) 150,120 20.7% Administration 60,573 8.4% Transport Policy 13,495 1.9% RSR, SAMSA, SACAA, MRCC, MSCC, NSRI and Memberships 50,937 7.0% Oil Pollution prevention services and Watch Keeping services 65,437 9.0% Special Investigating Unit 16,625 2.3% Inspectorates, Road, Rail, Maritime and Aviation regulation 31,719 4.4% Overloading Control 24,779 3.4% Rural transport projects 38,019 5.3% Road infrastructure planning and Sani Pass (KZN DOT) 50,000 6.9% Transport planning and infrastructure projects 32,290 4.5% Freight Logistics projects and research 18,604 2.6% Public Transport, including systems to devolve bus subsidies 13,666 Total 723,942 100%

Breakdown of major other budgets (2006/07) Department of Transport Breakdown of major other budgets (2006/07) Details R’000 % 1 Compensation of Employees 157,678 21.8% 2 Road Traffic Management Corporation 150,120 20.7% 3 Oil Pollution prevention services and Watch Keeping services 65,437 9.0% 4 Administration 60,573 8.4% 5 RSR, SAMSA, SACAA, MRCC, MSCC, NSRI and Memberships 50,937 7.0% 6 Road infrastructure planning 50,000 6.9% 7 Rural transport projects 38,019 5.3% 8 Transport planning and infrastructure 32,290 4.4% 9 Inspectorates, Road, Rail, Maritime and Aviation regulation 31,719 10 Overloading Control 24,779 3.4% 11 Freight Logistics 18,604 2.6% 12 Special Investigating Unit 16,625 2.3% 13 Public Transport 13,666 1.9% 14 Transport Policy 13,495 Total 723,942 100% 180,000 1 160,000 2 140,000 120,000 100,000 80,000 3 4 60,000 5 6 7 40,000 8 9 10 11 12 20,000 13 14

Expenditure trends: Rail Department of Transport Expenditure trends: Rail 19,9% 6,0% 5,9% 13,9% 11,1% 19,4% 19,3% 2002/03: Growth of 20% due to an additional R146m for rolling stock and rail extensions and an additional R160m for subsidies 2005/06 to 2008/09: Adjustments for VAT and additional allocations for passenger rail infrastructure

Expenditure trends: Bus Department of Transport Expenditure trends: Bus 7,7% 12,0% 5,0% 5,8% 5,1% 10,0% 2003/04: Additional allocations of R 150m per year in 2003 MTEF. From then onwards, only inflationary adjustments added to baseline.

Expenditure trends: Roads Department of Transport Expenditure trends: Roads 12,7% 7,3% 11,6% 21,6% 30,8% 32,7% 15,4% 2004/05 and 2005/06: Additional allocations of R200m, R250m and R300m in 2003 MTEF and VAT adjustments in 2004 MTEF of R187m, R203m and R213m. 2006/07 onwards: Additional R400m, R600m, and R900m in 2006 MTEF.

Conditional Grants Provincial Government: Gautrain Department of Transport Conditional Grants Provincial Government: Gautrain Local Government: Public transport infrastructure and systems

Department of Transport Gautrain Cabinet endorsed the project as a key strategic PPP project of national significance, with potential to: stimulate investment in infrastructure and the economy, and to provide opportunities for public transport restructuring and transformation Payments will be made by the Province to the concessionaire in terms of the concession agreement according to the agreed milestone completion schedules The Province will draw 50% of the funds for payment from the conditional grant and 50% from the Provincial budget in 2006/07 The Receiving Department’s rights and obligations will be managed by the Gauteng Management Agency The receiving officer will submit quarterly reports to the national transferring officer, detailing payments made to the concessionaire according to the key milestone payment schedules The integration exercise was concluded

Public Transport Infrastructure and Systems Grant Department of Transport Public Transport Infrastructure and Systems Grant Progress: Developed a draft “Towards a 2010 Transport Action Agenda” Established an Interdepartmental Adjudication Committee to evaluate proposals Developed Proposed Adjudication Criteria Separate Guidelines were developed for National Transport Agencies, Cities and Provinces Transport Agencies, Cities and Provinces were invited to submit Transportation Management Priority Statements that contains candidate projects and key sustainable public transport improvements that meet both the objectives of long term mobility and support the success of the 2010 FIFA World Cup Projects amounting to R241,7 million were approved in 2005/06 Projects over the MTEF period will amount to R2,933bn for local Government and R567m for transport agencies, totaling R3,5bn.

Public Transport Infrastructure and Systems Grant (continued) Department of Transport Public Transport Infrastructure and Systems Grant (continued) Projects shall be evaluated on the extent to which they: Meet the dual objective of long term mobility and support for 2010 FIFA World Cup Prioritise public over private transport. Able to improve public transport infrastructure, systems, operations and non- motorized transport. Reinforce public transport policies The grant provides for accelerated planning, establishment, construction and improvement of new and existing public transport and non-motorised transport infrastructure and systems

Public Transport Infrastructure and Systems Grant (continued) Department of Transport Public Transport Infrastructure and Systems Grant (continued) Measurable objectives: Improved public transport facilities, construction of access roads, airport- city links, public transport priority lanes, bus stops, taxi ranks, rail systems transport plans, bicycle lanes, pedestrian lanes, signage, shelters, coaches IT solution throughout the country. Conditions include: Projects related to infrastructure have to conform to EPWP directives and guidelines. A service level agreement must be entered into with the Department of Transport BEE guidelines, preferential procurement and directives of Government will be applied Quarterly progress reports to the Department of Transport

Department of Transport Thank you