1. Provincial Budgets and Expenditure Review October 2005

2. Contents Overview Free State centrally placed History Spending capacity Development Pressures Traffic Transport

3. Overview Transport underpins development and is a catalyst for unlocking economical growth and social development potential. Transport should be geared toward eradicating structural and social imbalances that yielded two economies and under development in our country. It should provide access and improvement of mobility thus ensuring that people have access to social services, job creation and skills development and ensuring that the cost doing business is reduced and that the economy of the country is transformed.

4. Overview Centrality of the Free State Infrastructure as an enabler to the economy Agricultural Dominance Budget Pressures EPWP

6. Allocation on roads since 1990-2005 Sec. 100 Flood Funds R40m Decrease in Grant

7. Relationship between accidents and roads condition The kilometers of poor and very poor roads are going to increase dramatically;The kilometers of poor and very poor roads are going to increase dramatically; Because of the lack proactive maintenance, the cost of repairing a road will increase with approximately150%;Because of the lack proactive maintenance, the cost of repairing a road will increase with approximately150%; The gravel road system is on verge of total collapse.The gravel road system is on verge of total collapse. A drastic increase of claims is immanent considering the conditions of roads.A drastic increase of claims is immanent considering the conditions of roads.

8. Composition of the Department

9. Required new links in the Free State

10. Comparisons Free State with rest of Provinces Free State % of Total TOTAL for Provinces Length of Road49,116 km14%343,942 km Registered Vehicles387 8156%6 798 696 Roads BudgetR322m5%R6 353m Budget per km roadR6 555 / kmR18 471 / km % of budget spent99.3%98,9%

11. Roads Maintenance Free State% of Total TOTAL for Provinces Length of Road49 116 km14%343 942 km Length maintained 28 455 km15%193 178 km Maintenance Expenditure R192m7%R2 794m Cost per km of road maintained R6 731/ kmR14 465 / km The estimated expenditure by SANRAL on capital improvement on National roads in FS (excluding N1 & N3) is: R330/vehicle*km traveled. The budget available to be spend on provincial roads in the Free State by the Department is R33/vehicle*km

12. Revenue Collected Free State% of Total TOTAL for Provinces Registered Vehicles 387 8155.7%6 798 696 Motor vehicle licenses R150m5.6%R2 689m Collection Cost (Own Staff) R42m28%???

13. Total Revenue Collected

14. Revenue classifications

15. Vehicle License Tariffs Free State Tariffs are on average right in the middle of the 9 provinces. On average the 3 rd most expensive for light vehicles On average 6 th most expensive on trucks and busses. The Free State has to stimulate industry and agriculture.

16. Traffic Management Free State% of Total TOTAL for Provinces Length of Road49 116 km14%343 942 km Registered Vehicles 387 8156%6 798 696 Traffic Expenditure R70m 10%R1 139m Revenue Collection R43m Cost for traffic control per km of road R2 300 / kmR3 311 / km

17. Traffic Achievements Lowest fatalities in Arrive Alive Overloading control at Kroonstad, Bothaville and Senekal Traffic officials patrolling 183 km of road. Impossible to do every day. Appointed another 160 officers.

18. Weigh Bridge Success Free State% of Total TOTAL for Provinces No of Weigh Bridges 33%90 Vehicles Weighed 77 3487%1 055 438 Number found Overloaded 13 5174%303 489 Free State17% SA Average29% Effectiveness of Scanning process needs attention

19. Economic classification Free State% of Total TOTAL for Provinces % of Total CompensationR349 m44%R3 584 m28% Goods& ServR289 m36%R3 719 m29% TransfersR5 m1%R1 606 m12% CapitalR149 m19%R3 952 m31% Non compensR443 m56%R9 278 m72% Non Comp Non Cap R294 m37%R5 325 m41%

20. Budget Distribution 2005/06

21. FS PWR&T BUDGET MTEF Period: (Medium Term Expenditure Framework) Year-1Year 0Year 1Year 2Year 3 2004/052005/062006/072007/082008/09 R792 mR840 mR890 mR1023 mR1094 m Baseline Reprioritized Baseline R840 mR2071 mR2168 mR2319 m

24. Personnel vs. Total Expenditure

25. Second quarter expenditure and projections

26. Grant Allocation

27. Free State Own Roads Grant

28. Grants 2004/05: Roads Projects Provincial Conditional Grant Budget (DORA & Roll over) R 39,978 mil Utilised: R39,978 mil Remainder: R 0 mil Completed projects: –Meqheleng access road 87 local construction jobs created 13,600 man days & 3,766 female days Projects still continuing: –Oppermansgronde link road 101 local construction job opportunities 13,310 man days & 5,434 female days

29. Grant 2004/05: Roads Projects Provincial own conditional grant additional to National Grant R 91,207 mil Utilised: R91,207 mil Remainder: R 0 mil Completed projects: –Road planning and design 8 Planning, design and systems related projects –Road contracts 11 rehabilitation and maintenance projects through contractors –Gravel Road rehabilitation 18 rehabilitation of gravel road projects with own personnel

30. Roads Projects Continue Roll over Flood Funds Plus Provincial Own grant R 25,190 mil Utilised: R24,280 mil Remainder: R 0,91 mil Completed 55 projects of between R0,15 mil and R0,50 mil each. Projects still continuing: –Road signs contractor did not supply on time.

31. Development of SMME’s 16 SMME’s trained in 2003 in Smithfield to build bridge and kerbing

32. TRAINING On site survey training Classroom training Practical training

33. Successful SMME’s continued in 2004 in Oppermansgronde to build streets. Development of SMME’s