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

2. 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

3. 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

4. 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

5. 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
47 000
Local Economic Development Grant
80 459
86 944
Total

6. 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

7. OVERVIEW OF THE BRANCH PROGRAMMES
FREE BASIC SERVICES

8. 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

9. 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

10. 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

11. 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

12. 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

13. OVERVIEW OF THE BRANCH PROGRAMMES MUNICIPAL INFRASTRUCTURE GRANT (MIG)

14. 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)

15. 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.

16. 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

17. 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

18. 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

19. 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

20. 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

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

22. 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

23. 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)

24. 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

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

26. OVERVIEW OF THE BRANCH PROGRAMMES Public Participation & Empowerment

27. 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

28. 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

29. 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

30. 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

31. Public Participation & Empowerment Overview : 04/05 Business Plans

32. THANK YOU