DEPARTMENT OF PROVINCIAI AND LOCAL GOVERNMENT

DEPARTMENT OF PROVINCIAI AND LOCAL GOVERNMENT

REPUBLIC OF SOUTH AFRICA

PRESENTATION TO THE PORTFOLIO COMMITTEE

BRANCH: FREE BASIC SERVICES & INFRASTRUCTURE

Mr Patrick Flusk:

Deputy Director-General

1 March 2005

CONTENTS

1. Purpose of the Branch

2. Measurable Objectives

3. Strategic Role of the Branch

4. Sub Programme: Chief Directorates

4.1 Progress & Achievements 04/05

4.2 Priorities 05/06

5. Budget Allocations

1 Purpose of the Branch
Free Basic Services and Infrastructure

Provides support to local government to enable it to deliver sustainable infrastructure and increase access to basic services, including free basic services.

2 Measurable Objective

To strengthen the capacity of municipalities to deliver sustainable infrastructure and increase access to basic services, including free basic services to the poor, who are predominantly found in the under-serviced areas of South Africa.

Measurable Objective…

Subprogramme	Output	Measure/indicator	Target
Municipal Infrastructure	Information on investment in municipal infrastructure	Report to Cabinet on progress on implementing the municipal infrastructure grant	March 2006
Free Basic Services Partnerships	Increased efficiency of municipalities to provide access to free basic services to poor households	Increase the rollout of free basic water and electricity to all indigent households connected to infrastructure	30% increase from last year
Municipal Services Partnerships	Monitor compliance with chapter 8 of the Municipal Systems Act (2000) as amended	Guidelines and standardised contracts and service level agreements	September 2005
Public Participation and Empowerment	Monitor and evaluate and support the implementation of the community development worker programme	Improvement in community participation in local government affairs	Ongoing

3. Strategic role of the Branch

1. Co-ordinate infrastructure development and maintenance.

2. Co-ordinate accelerated delivery of FBS.

3. Deepen local democracy and accountability.

4. Co-ordinate Municipal Support Partnerships.

4. Data per sub-programme

DDG: Mr Patrick Flusk

Chief Director	Chief Directorate
Ms Gabi Gumbi-Masilela	FBS
Ms Molatelo Montwedi	MIG
Ms Xoliswa Sibeko	PP&E
Mr Muthotho Sigidi	MSPs

4.1 Progress & Achievement.

Municipal Infrastructure Grant (MIG)

The total amount disbursed to municipalities from dplg up to the end of January is R3 090.28 million, which is 69.60% of the total allocation.

The total expenditure on infrastructure projects up to the end of January 2005 is R2 315.70 million. This is 52.16% of the total allocation of R4 439.94 million.
1,196 million households benefited on completed MG projects up to December 2004.

3,836 million person days employment opportunities have been created up

to December 2004 (33% youth, 30% women -including female youths and disabled persons).
The percentage of women receiving accredited training on MIG projects is 21% and for youth 19%. up to December 2004.
The percentage of women receiving non-accredited training on MIG projects is 26% and for youth 25%. up to December 2004.
821 SMMEs were utilised up to December 2004.
Proper programme management practices at municipal level were implemented.

Progress...

MIG…

· Finalised DORA allocations for 2005/08 MTEF.

· Municipalities receiving MIG allocations increased from 88 to 159 both medium and low capacity municipalities targeted. MIG communication strategy implemented through workshops and meetings with municipalities and provinces.

· Macro control audit advisors commenced to advise municipalities on the implementation systems and processes and procedures for MIG.

· 78 project management units established in 2004/5 and additional 72 to be established in 2005/6 financial year.

· First round of new innovation projects are being implemented.

· MIG management information system developed, being tested and piloted. Roll out of the system to start in April 2005.

Progress…

Municipal Services Partnership & Public Participation and Empowerment

1. Alignment of MSP White Paper with MSA as amended and the MFMBA completed.

2. Guidelines and regulations on MSPs completed.

3. MSP Training to 360 councilors and officials.

4. Completion of the study on the proposed Support Unit for Public Provision of Services (SUPPS) to finalise a model on the establishment of such Unit for SUPPS.

5.. CDW stakeholders workshop report as well as CDW brochure published.

6. Provincial Stakeholders workshops on CDW program held in all 9 provinces.

Progress…

Free Basic Services

1. Finalized the Free Basic Services Study and developed an information portal to assist municipalities to report and share information.

2. 67% of households with infrastructure access free basic water.

3. 45% of households benefited from free basic electricity and 2,4 million of these were poor households served by Eskom.

4. National intervention succeeded in facilitating sound relationships between municipalities and Eskom.

5. Facilitated policy review for FBE regarding the downgrading clause.

6. Indigent Policy developed

4.2 2005/06 Priorities

1. Build capacity of struggling municipalities identified in the study ar through Project Consolidate.

2. Develop a monitoring system to measure impact of FBS.

3. Develop indicators for FBS.

4. Finalize guidelines for alternatives for FBS where no infrastructure exists.

5. Finalize the targeting framework for poor households.

6. Support the revenue enhancement capacity of municipalities.

7. Develop communications strategy for FBS.

8. Support the alignment of the FBS structures in the provinces.

9. Strengthen provincial capacity to support municipalities.

2005/06 Priorities

1. Creation of awareness to municipalities to use partnership as an option to accelerate service delivery.

2. Hold district wide information session on the importance of ring fencing the electricity business.

3. Mobilise community involvement in service delivery through Municipal Community Partnerships

Thank you