DOT HEARINGS: PTI AND PTNO APPLICATION 10 SEPTEMBER 2013

PRESENTATION OVERVIEW Executive Summary Polokwane IRPTS Current context and response Full network design Transit oriented land use Institutional arrangements with Province Management capacity, political support and stakeholder buy-in 2012/13 Progress and Spending PTI allocations, rollover and spending 2013/14 Progress and Spending Current year progress on spending Plans for 2014 MTEF Worst-case scenario Best case scenario

POLOKWANE: CITY OF THE STARS

THE DUAL APPROACH Phase 4 Phase 2 Phase 3 Phase 1 Phase 3 & 4 – Intervention Focus Build on current systems Restructure Public Transport Operational Grant (PTOG) & achieve industry transformation Provide reliable, safe, scheduled, public transport BUT not entrench current spatial and mobility patterns Phase 1 &2 – Intervention Focus: High quality public transport system facilitated by dedicated infrastructure Regenerate the CBD High density development Promote spatial in-filling Phase 2 Phase 1 BRT High Quality PT

EXCITEMENT IS GROWING

Increase in our institutional capacity PROJECT CHALLENGES Projected expenditure More pictures Increase in our institutional capacity tChallenges experienced, appropriately and strongly responded, approach has garnered strong buy in PIRPTS is a big project for Polokwane (small city, initial limited capacity), taken time to build up capacity and skills to take on new PT mandate Establishment of dedicated capacity in for the form of the directorate Strongly capacitated, 5 year appointments of Panel of Consultants Strong support at political level Various administrative process issues resolved (ie. supply chain procurement, etc.) High up-swing in expenditure reflective of above progress (*refer later on in presentation*), construction will begin this year (*graph of expenditure up tick*) Last year we surrendered funds and told you that we would be back when we would be ready *Excitement*

Phase 4: North West/ Koloti WHY WE ARE HERE MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R456 R261 R211 R299 R171 R148 PTNO R0 R44 R151 R202 TOTAL R199 R301 R362 R447 R342 R350 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

PIRPTS DESCRIPTION

POLOKWANE CURRENT CONTEXT Population: 630 000 Mean Monthly HH Income: R2000 Summary: Low income, mixed density, mixed urban - rural Large number of rural remote settlements connected by subsidised buses & MBTs Residential pop. concentration in NW (10km - 20km out) Fast growing urban area with strong CBD 20km 40km

POLOKWANE CURRENT CONTEXT Public transport provides an opportunity to address our urban and spatial planning challenges

THE DUAL APPROACH Rapid Transit Phase 2 Phase 1 Phase 1 &2 – Intervention Focus: High quality public transport system facilitated by dedicated infrastructure Regenerate the CBD High density development Promote spatial in-filling Phase 2 Phase 1

THE DUAL APPROACH Restructured Transit Phase 4 Phase 3 Phase 3 & 4 – Intervention Focus Build on current systems Restructure Public Transport Operational Grant (PTOG) & achieve industry transformation Provide reliable, safe, scheduled, public transport BUT not entrench current spatial and mobility patterns

TRANSIT ORIENTED LAND USE Essential services in rural areas Development of stand alone urban hub Infilling between Seshego and CBD The Dual Approach Phase 1 & 2: Rapid transit system encourages spatial infilling between Seshego & CBD Phase 3: Establishes Mankweng as an economic hub, while linking it with the CBD Phase 4: Provides essential service to city

PHASE 1 & 2 – SYSTEM DESCRIPTION PIRPTS System Description Trunk & Trunk Extension Design 80% of route residential, 54,000hh 20,000 pax/peak period 80% of hh within 500m of PIRTN 4 million vehicle kms/year 12.5 million passenger trips/year E Phase 1 Phase 2 Moving into more detail on the phasing… Some key operational indicators for Phase 1 and 2 Combination of trunk with trunk extension Dense corridor, transporting 20,000 passengers per peak period PIRPTS Vehicles 151 x solo buses (65 capacity) 35 x midi buses (25) Total: 186

PHASE 1 & 2 - INFRASTRUCTURE PIRPTS Infrastructure 12 km trunk lane 6.6 km of trunk dedicated lane 7 trunk extensions 5 feeder routes 6 trunk stations Church Street pedestrianized & dedicated to public transport 2 Depots E Phase 1 Phase 2 Infrastructure for Phase 1 and 2. A key distinguishing feature is the use of trunk extensions, which allows vehicles to move directly into the community from the trunk, reducing system costs and avoiding the requirement for interchange (associated feeder and trunk system). The system is not a full BRT, but rather an appropriately designed, integrated rapid system.

PHASE 1 & 2 – DEDICATED LANE ASSESSMENT Current Situation Dual carriage way to CBD Main access road with increasing congestion Recommendation: Two Dedicated Lanes Travel time advantage A differentiated service Lower enforcement challenges Lower safety risks Lower costs C Interventions Explored: Mixed Traffic (no dedicated lane) An Off-Peak Contra-Flow Lane Single Median Bus Way Two Dedicated Lanes (B to C) Full trunk dedicated lanes Full trunk, strengthened dedicated lanes B

PHASE 3 – MANKWENG DESIGN MANKWENG CENTRAL NODE Focus: Formalise and integrate current Mini-Bus Taxi (MBT) & Bus Services Use existing vehicles Offering operational efficiencies Improve connectivity, peak & off-peak availability Safe and reliable Restructuring current PTOG contracts Integrated Fare Management 60 Standard Buses providing 15 000 pax trips per day on Polokwane to Mankweng trunk route. Design: Feeders to centralised Mankweng interchange Trunk route running to CBD

PHASE 4 - NW/KOLOTI DESIGN Restructure existing 25 Buses + 35 MTB’s to feed into transfer terminal of PIRPTS at Moletjie. Approx. 4500 pax trips per day. Focus: Formalise and integrate current Mini-Bus Taxi (MBT) & Bus Services Use existing vehicles Offering operational efficiencies Improve connectivity, peak & off-peak availability Safe and reliable Restructuring current PTOG contracts Integrated Fare Management Design: Feeders to Koloti Interchange or to edge of Perskebuilt Trunk route through running to CBD To Moletjie

CITY WIDE NMT Cycle and Pedestrian Networks Urban Greening

ACCESS DESIGN The initial draft Universal Design Access Plan will be available at the end of September. Thereafter, a Universal Design Workshop will be held for all team members and stakeholders to introduce the concepts of Universal Design and Accessibility. Engagement of local organisations and groups of Passengers with Categories of Special Needs is being planned.

Public Transport Restructuring Stream IMPLEMENTATION PIRPTS Full Network F Phase 1: Seshego - CBD 6 000 vehicle seats 42 000 pax/day 1 2 Moletjie- CBD 3 000 vehicle seats 21 000 pax/day Rapid Transit Stream 3 Mankweng - CBD 5 000 vehicle seats 20 000 pax /day 4 North West – CBD 5 000 vehicle seats 20 000 pax/day Public Transport Restructuring Stream 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Year 1 2 3 4 5 6 7

Public Transport Restructuring Stream IMPLEMENTATION PIRPTS Full Network F Dual rollout approach sees parallel implementation of the Rapid Transit system and the Restructured Public Transport system Phase 1: Seshego - CBD 6 000 vehicle seats 42 000 pax/day 1 2 Moletjie- CBD 3 000 vehicle seats 21 000 pax/day Rapid Transit Stream 3 Mankweng - CBD 5 000 vehicle seats 20 000 pax /day 4 North West – CBD 5 000 vehicle seats 20 000 pax/day Public Transport Restructuring Stream 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Year 1 2 3 4 5 6 7

Public Transport Restructuring Stream IMPLEMENTATION PIRPTS Full Network F Allows for the establishment of the full network, over a relatively short period Supports rapid service improvement and delivery to the public Facilitates a smooth transformation and transition process with the industry Phase 1: Seshego - CBD 6 000 vehicle seats 42 000 pax/day 1 2 Moletjie- CBD 3 000 vehicle seats 21 000 pax/day Rapid Transit Stream 3 Mankweng - CBD 5 000 vehicle seats 20 000 pax /day 4 North West – CBD 5 000 vehicle seats 20 000 pax/day Public Transport Restructuring Stream 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Year 1 2 3 4 5 6 7

INSTITUTIONAL ARRANGEMENTS WITH PROVINCE Partnership with Provincial government Agreement on responsibilities for the PIRPTS To lead to possible Inter-Government Agreement (IGA) Significant effects on Great North Transport (GNT) Requires restructuring following introduction of the PIRPTS Phase 3 and 4 affects 2 private bus operators contracted to Province (under PTOG subsidy) The contracts will need to be devolved to Municipality and restructured Cooperation around operating licenses

MANAGEMENT CAPACITY AND SUPPORT PIRPTS Management Unit has been established Significant capacity created Diverse skills sets and background Supported by strong and capacitated municipal administration Strong political buy-in and support Dedicated political structures MMC is the IRPTN political champion Personal attention and priority of Executive Mayor Extensive industry engagement Frequent industry engagements (monthly with each association) Provincial leadership structures engaged (ITEEC) Successful study tour Industry strongly informed and involved A dual approach of technical and institutional -transformation rollout Lessons from elsewhere in SA that institutional / transformation issues delay successful rollout

CAPITAL COST SUMMARY Phase 1 : Seshego Infrastructure build Phase 2: Moletji Infrastructure build Bus purchases will be financed through debt and repaid with PTI over 5 years Phase 3 : Mankweng Infrastructure build Phase 4: NW Infrastructure build Vehicle Repayments for Seshego buses & Moletji buses

PIRPTS PROGRESS 2012/13

CHALLENGES & RESOLUTIONS 2011 - 2013 FINANCIAL YEAR Challenges Internal Capacity, Procurement Delays & Late Appointments, Limited Contract Periods, Project Communications, Under-Expenditure. Alignment of Workstreams, Extension of Contracts, Project Office, Under-Expenditure, Terms of Reference limitations. Resolutions Establishment of Transportation Directorate, Clear Project Structure, Project Office, Internal Capacity Building, Contract Extensions, Procurement Priority Appointment of Panel of Experts over 5 year period, Annual Performance Review of every Workstreams and annual setting of scope of works, Full commitment of funds.

PROJECT TECHNICAL PROGRESS 2012/13 Workstream Description Progress Systems & Operational Planning Technical Operational Plan Phase 1 & 2 detailed plan Phase 3 & 4 concept plan Business & Financial Planning Business and Financial Plan Detailed full financial model Costs and revenues over 12 years Business structures and contractual arrangements Organizational, capacity and governance requirement Marketing & Communications Integrated Marketing and Communications Strategy Project Brand complete to be approved by Council in June Website and other key branding material Industry Transition & Engagement Industry Transformation and Engagement Process Extensive engagement over past 12 months (local and provincial level) MOU signed between Municipality and Taxi Associations Highly successful study tour to JHB, NM and CPT completed Bi-Monthly Progress Meeting with General Membership of the Taxi Industry Institutional Establishment of the Transportation Directorate Directorate established and staffed Council approval of TOP and IMCS s33 process completed, s78 Investigation underway Appointment of all required service providers completed

2012/13 PIRPTS FINANCIALS FINANCE DETAILS 2012/13 R (million) TOTAL PTI transferred to July 2012 49.070 TOTAL Expenditure to July 2012 14.792 Expenditure % to July 2012 30 2012/13 Rollover requested to 2012/13 34.276 PTI transferred in 2012/13 48.703 TOTAL PTI in 2012/13 82.979 TOTAL Expenditure in 2012/13 (incl. commitments) 81.029 Expenditure % in 2012/13 98 2013/14 Rollover requested to 2013/14 40.546

2012/13 PIRPTS FINANCIALS Poor expenditure to July 2012, for various reasons related to slow start-up on the project FINANCE DETAILS 2012/13 R (million) TOTAL PTI transferred to July 2012 49.070 TOTAL Expenditure to July 2012 14.792 Expenditure % to July 2012 30 2012/13 Rollover requested to 2012/13 34.276 PTI transferred in 2012/13 48.703 TOTAL PTI in 2012/13 82.979 TOTAL Expenditure in 2012/13 (incl. commitments) 81.029 Expenditure % in 2012/13 98 2013/14 Rollover requested to 2013/14 40.546

2012/13 PIRPTS FINANCIALS FINANCE DETAILS 2012/13 R (million) TOTAL PTI transferred to July 2012 49.070 TOTAL Expenditure to July 2012 14.792 Expenditure % to July 2012 30 2012/13 Rollover requested to 2012/13 34.276 PTI transferred in 2012/13 48.703 TOTAL PTI in 2012/13 82.979 TOTAL Expenditure in 2012/13 (incl. commitments) 81.029 Expenditure % in 2012/13 98 2013/14 Rollover requested to 2013/14 40.546 PTI allocation in 2012/13 was R 99m. Municipality requested this allocation be reduced by R 50m to reflect ability to spend

Includes R 40.546m committed funds, to be spent by October 2013 2012/13 PIRPTS FINANCIALS FINANCE DETAILS 2012/13 R (million) TOTAL PTI transferred to July 2012 49.070 TOTAL Expenditure to July 2012 14.792 Expenditure % to July 2012 30 2012/13 Rollover requested to 2012/13 34.276 PTI transferred in 2012/13 48.703 TOTAL PTI in 2012/13 82.979 TOTAL Expenditure in 2012/13 (incl. commitments) 81.029 Expenditure % in 2012/13 98 2013/14 Rollover requested to 2013/14 40.546 Includes R 40.546m committed funds, to be spent by October 2013

2012/13 PIRPTS FINANCIALS FINANCE DETAILS 2012/13 R (million) TOTAL PTI transferred to July 2012 49.070 TOTAL Expenditure to July 2012 14.792 Expenditure % to July 2012 30 2012/13 Rollover requested to 2012/13 34.276 PTI transferred in 2012/13 48.703 TOTAL PTI in 2012/13 82.979 TOTAL Expenditure in 2012/13 (incl. commitments) 81.029 Expenditure % in 2012/13 98 2013/14 Rollover requested to 2013/14 40.546 Dramatic improvement in expenditure in 2012/13, reflecting pro-active steps taken by the municipality

Rollover of committed funds from 2012/13, to be spent by October 2013. 2012/13 PIRPTS FINANCIALS FINANCE DETAILS 2012/13 R (million) TOTAL PTI transferred to July 2012 49.070 TOTAL Expenditure to July 2012 14.792 Expenditure % to July 2012 30 2012/13 Rollover requested to 2012/13 34.276 PTI transferred in 2012/13 48.703 TOTAL PTI in 2012/13 82.979 TOTAL Expenditure in 2012/13 (incl. commitments) 81.029 Expenditure % in 2012/13 98 2013/14 Rollover requested to 2013/14 40.546 Rollover of committed funds from 2012/13, to be spent by October 2013.

PIRPTS PROGRESS 2013/14

MILESTONES 2013/14 Technical Specifications ITS, Control Centre & Vehicle Specifications completed by March 2014 Technical Specifications Full network Business & Financial Plan to be completed by June 2014 Full Network Business Plan Industry transition engagements across all phases with minibus and bus industry, negotiations begin June 2014 Negotiations Begin The PIRTN brand is finalised by June 2014 and official brand launch Brand Finalization Designs for Mandela Drive dedicated lane (B to C) to be completed in Nov 2013 and construction to begin in Mar 2013 Mandela Drive Designs for full Trunk Designs for the full Ph 1 & 2 be completed by Jan 2014 and the tender for construction be awarded by Mar 2014

STAKEHOLDER ENGAGEMENT

% of Total Funds received EXPENDITURE 2013/14 Expenditure item Amount (R‘m) % of Total Funds received Total expected expenditure to end June 2014 R 199m 100% Planning costs R 50m 25% Detailed Design & Construction R126m 63% Stakeholder and industry engagement R 23m 12%

% of Total Funds received EXPENDITURE 2013/14 Expenditure item Amount (R‘m) % of Total Funds received Total expected expenditure to end June 2014 R 199m 100% Planning costs R 50m 25% Detailed Design & Construction R126m 63% Stakeholder and industry engagement R 23m 12% Municipality has already committed the full PTI allocation for 2013/14 COMMITTED FUNDS TO DATE R 198m 99%

Achievements in 2013/14 Since July 2013 SLAs signed and funds committed Technical design underway – Phase 1 & 2 Household survey almost complete Conceptual design of Phase 3 & 4 Launch of PIRPTS completed Extensive Industry capacitation programme in place Market survey in implementation Engagements with Province and Bus companies

PIRPTS PLAN FOR 2014 - 2016 MTEF

WORST CASE SCENARIO Worst case scenario = ZERO allocations in 2014/15 and 2015/16 Unlikely that the project can continue if outer year funding not secured to keep progress going Extent of funding received can vary, but PIRPTS is not viable if zero allocation remains

BEST CASE SCENARIO: PTI AND PTNOG MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

BEST CASE SCENARIO: PTI AND PTNOG Phase 1 Trunk, extension and feeder roadway works Stations and stops Depots Control centre MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

BEST CASE SCENARIO: PTI AND PTNOG Phase 1 No PTNO requirements in 2014/15 MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

BEST CASE SCENARIO: PTI AND PTNOG Phase 1 Trunk, extension and feeder roadway works Stations and stops Depots Control centre IFM, ITS and Security equipment MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

BEST CASE SCENARIO: PTI AND PTNOG Phase 1 Industry compensation Entity establishment VOC establishment Auxiliary contracts (ITS, IFM) MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

BEST CASE SCENARIO: PTI AND PTNOG Phase 2 Trunk, extension and feeder roadway works Stations and stops Phase 1 Principle debt on vehicle fleet MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

BEST CASE SCENARIO: PTI AND PTNOG Phase 1 Interest on vehicle purchase Industry compensation Entity establishment VOC establishment Auxiliary contracts (ITS, IFM) MTEF R’m 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PTI R 199 R396 R218 R208 R299 R160 R135 PTNO R0 R27 R117 R108 R118 R142 TOTAL R199 R245 R325 R407 R278 R277 Current 1 2 3 4 5 6 Year Phase 1: Seshego Phase 2: Moletji Phase 3: Mankweng Phase 4: North West/ Koloti

THANK YOU