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

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

3. 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
Additional
307,872
307,905
357,927
= 2004 Baseline
6,759,044
7,125,427
7,584,500
7,963,725
Additional
476,732
658,728
1,301,364
= 2005 Baseline
7,602,159
8,243,228
9,265,089
10,087,829
Adjusted
3,138,846
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

4. 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
Total

5. 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
Passenger Rail
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
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
Provincial Government: Gautrain
Safety and Security
(20 000)
Total

6. 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%

7. Department of Transport
Major allocations

8. 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%

9. 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

10. 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

11. 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.

12. 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.

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

14. 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

15. 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.

16. 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

17. 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

18. Department of Transport
Thank you