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

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. CONSOLIDATING LOCAL GOVERNMENT
Dec 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

13. 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

14. URBAN NODES

15. 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

16. RURAL NODES

17. 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

18. THE END
THANK YOU ...