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1 SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS HEARINGS by Acting Director General Department of Provincial and Local Government DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (dplg) 22 - 23 February 2007

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SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS HEARINGS by Acting Director General Department of Provincial and Local Government. DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (dplg). 22 - 23 February 2007. Scope of Presentation. Background Bucket Eradication Allocation - PowerPoint PPT Presentation

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Page 1: DEPARTMENT OF PROVINCIAL  AND LOCAL GOVERNMENT (dplg)

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SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS HEARINGS

byActing Director General

Department of Provincial and Local Government

DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (dplg)

22 - 23 February 2007

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Scope of Presentation

Background Bucket Eradication Allocation Reallocation strategy/principle Beneficiary Municipalities Bucket Eradication: National Overview General observations Interventions required Recommendations

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Background

This presentation is from a MIG perspective and is therefore complimentary to the national action plan of DWAF

Cabinet took decision to eradicate all the bucket sanitation systems through out the country

State of Nation Address reflected December 2007 as the target date to have all buckets eradicated

Census 2001 estimated buckets latrines to be over 400 000 throughout the country

Backlogs have since been estimated at 252254 as at February 2005 (DWAF) Thus far 119583 buckets have been eradicated leaving a remainder of

132 671 buckets to be addressed by the end of the year. Funding required to eradicate backlogs was estimated at over R2,5 billion in

2005 (at an average unit cost of R10 000) National Treasury made R1,2 billion available over the 2005/06 MTEF plus

additional R400 million allocated for 2007/08 financial year 2005/06 – R200 million, 2006/07 – R400 million, and 2007/08 – R1 billion

Funding was ring-fenced within MIG A strategy is presented for handling low expenditures, and ensuring that

future commitments in funding projects would be met

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Bucket eradication allocations

Province Bucket Allocations

  2005/06 2006/07 2007/08

EASTERN CAPE Total  36,300,000   154,507,000 148,280,940

FREE STATE Total  72,611,000 145,663,000  600,599,867

GAUTENG Total  12,000,000  11,506,000 4,995,000

KWAZULU-NATAL Total  6,000,000  - -

LIMPOPO Total  -  - -

MPUMALANGA Total  20,250,000  - -

NORTH WEST Total 27,893,000 42,537,000 180,320,733

NORTHERN CAPE Total  17,997,000  31,061,000 34,831,760

WESTERN CAPE Total  6,949,000  14,707,000 30,971,700

Total 200,000,000 400,000,000 1,000,000,000

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Options to accelerate bucket eradication

An additional R176 million (from MIG re-allocations) will be allocated to municipalities in Free State, North West, Western Cape and Northern Cape to accelerate delivery

Municipalities are being encouraged to prioritise MIG funding to support bucket eradication to achieve the December 2007 target

Provinces must be encouraged to use their own funding to accelerate eradication of buckets, Provinces like Northern Cape, Mpumalanga and Gauteng have allocated R 69million, R55million and R 99million respectively Use normal MIG funding

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Bucket Allocation – From 2006/07 reallocations

Municipality Province Allocation

Lesedi GP 4 000

Sol Plaatje NC 9 000

Pixely DM NC 7 500

Bophirima DM NW 5 000

Maquassi Hills NW 10 003

Kannaland WC 1 500

Tokologo FS 10 703

Mohokare FS 5 000

Mangaung FS 89 225

Setsoto FS 33 575

Total 175 506

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Reallocation objective

Objectives Enforce compliance with DORA Enforce accountability by municipal accounting officers Use available funds in the most efficient manner to eradicate

backlogs, taking cognisance of sector targets Incentivise performance

Principles Identify munics with low spending where they would not be able to

spend within 2006/07 year Identify cases where such funds have not been committed Retain funds within a province, except where such funds are

required for bucket eradication Do not re-allocate funds from cross-boundary municipalities

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Reallocation Strategy

The following process was followed in re-allocating the funds The spending to date was assessed, considering the funds and

percentage spent by municipalities from April to December 2006 Monthly actual expenditure trends were used and extrapolated for the

full year This was compared with the projected expenditures submitted by

municipalities Withholding due to under expenditure implemented to about 3 times in

9 months All affected municipalities were met to consider the following:

Commitments already made by municipalities and implications thereof. Re-allocations for all the municipalities that recorded expenditure of

less than 60 percent of allocations by December 2006 The allocation was then adjusted to allow municipalities to honor

commitments, considering that new allocations would be available from April 2007

Informed municipalities of the implications for planning purposes Consulted with provinces on re-allocations and implications Final allocations submitted to Treasury for gazetting

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Beneficiary Municipalities

The following municipalities will benefit from the re-allocation process:(R584 million) Municipalities that still have a highest number of buckets backlogs

to meet the December 2007 target (R176 million) The 9 targeted municipalities from each province for immediate

service delivery (R61 million) The best MIG spending municipalities as at the end of December

2006 (R347 million) Focus on munics with smaller backlogs to eradicate water backlogs

Cross boundary municipalities would not be affected by re-allocations

All the funds to be re-allocated are ring-fenced for water and the eradication of bucket sanitation systems to help meet the targets

It is proposed that the money should remain in the province except the funds that will be allocated for the eradication of sanitation bucket programme

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Observations made

Feedback from meetings Large spending on materials to be incurred in using funds Investments in roads to show quick wins

Areas of concern OR Tambo DM

Very large allocation (R295 million), second highest after eThekwini, and higher than total allocation of Northern Cape, but spending low

Matjhabeng LM Second largest allocation in Freestate (R84 million), but none spent to

date Greater Sekhukhune DM

Largest allocation in Limpopo (R169 million), only spent 25% Buchbuckridge DM

Largest allocation in province (R91 million), only spent 16% Nelson Mandela Metro

Challenges with respect to bucket eradication projects Communication strategy

A comprehensive communication strategy needs to be formulated to ensure that all stakeholders are informed

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Expenditure – 2006/07 Financial year

Province

Expenditure 2006/07 Financial Year as at 31 January 2007

Allocation Expenditure Balance Percentage

EASTERN CAPE 154,507 46,201 108,306 29,9%

FREE STATE 145,663 90,323 55,340 62%

GAUTENG 5,910 0 5,910 0%

KWAZULU-NATAL  -    

LIMPOPO  -    

MPUMALANGA  -    

NORTH WEST 48,153 20,445 27,708 42,%%

NORTHERN CAPE 31,061 25,929 5,132 19%

WESTERN CAPE 14,707 6,926 7,781 47%

Total 400,000 189,823 210,177 47,5%

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Bucket Eradication- National Overview

Progress as at end January 2007

Status Projects Value

Registered 18 R64,1m

Design &Tender 31 R 223,9m

Construction 102 R 622,9m

Completed 48 R 117,5m

Total 199 R1028,4m

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Eastern Cape

Bucket Eradication- Provincial Overview

Status Projects Value

Registered 1 R2,5m

Design &Tender

11 R 70m

Construction 20 R 153m

Completed 19 R 41,2m

Total 51 R266,7m

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Bucket Eradication- Provincial Overview

Status Projects Value

Registered 8 R34,3m

Design &Tender

14 R 131,9m

Construction 44 R 326,9m

Completed 3 R 3m

Total 69 R496,1m

Free State

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Status Projects Value

Registered 1 R 2,4m

Design &Tender 2 R10,1m

Construction 14 R 40m

Completed 2 R 3m

Total 19 R55,5m

Bucket Eradication- Provincial Overview

Northern Cape

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North West

Bucket Eradication- Provincial Overview

Status Projects Value

Registered 2 R 7,9m

Design &Tender

1 R7,5m

Construction 9 R 46,4m

Completed 4 R 9,5m

Total 16 R71,3m

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Status Projects Value

Registered 3 R 12,3m

Design &Tender

1 R 1,2m

Construction 5 R 9,5m

Completed 6 R 8,7m

Total 15 R 31,7m

Bucket Eradication- Provincial Overview

Western Cape

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General Observations

The deployment of technical capacity and cooperation of joint interventions is making some impact (Indaka, Kungwini, Ugu etc)

The MIG projects currently being implemented

will eradicate approximately 91090 buckets. (where are they being implemented)

MIG projects that are in the planning stages show that the balance of the buckets will be eradicated

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Interventions The DBSA’s Siyenza Manje and SAICE’s programmes are bearing fruits in many

municipalities and need to be enhanced Targeted support by all key government stake holders to ensure that all programmes

give priority to bucket eradication

Dplg, provinces and sector departments are being encouraged to continue to provide support to municipalities on the following areas: Improved capital planning in the context of Integrated Development Planning. Intergovernmental cooperation with increased oversight responsibility to key

intergovernmental structures such as the PCC etc Improve project management capacity to implement MIG projects (Project

Management Units) Treasuries should assist in accelerating project implementation by providing

direct support to municipalities in respect of supply chain management

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Recommendations

Select Committee on Land and Environmental Affairs to take note of the status of the bucket eradication process

Select Committee should, through its oversight responsibility assist in addressing the constraints affecting municipalities on matters such as procurement and MFMA budget planning cycles.

Select committee to note the initiative by DWAF to accelerate general sanitation challenges facing municipalities with a focus to 2010 e.g. communities still without access to any sanitation service or facility.

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Thank you