PROGRAMME 3: URBAN AND RURAL DEVELOPMENT MS Y. SILIMELA 18 May 2005

1. PRESENTATION TO THE SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATION PROGRAMME 3: URBAN AND RURAL DEVELOPMENT MS Y. SILIMELA 18 May 2005

2. CONTENTS 1. Branch Introduction 2. Key Objectives & Principles 3. Broad progress in 2004/05 4. Progress against key interventions 5. Challenges 6. Priorities for 2005/06 7. Budget 2005/06 1

3. 1. THE BRANCH 2

4. RURAL NODES 3

5. URBAN NODES 4

6. CONTEXT FOR ISRDP & URP IN 2005/06 • ISRDP/URP Intent: Maximization of expenditure & investment impact of all spheres of government, gear private sector support and mobilise social capital in the 21 nodes, • SoNA May 21st 2004: located the 21 nodes at the core of addressing the 2nd economy challenges. • SoNA February 11th 2005: Early warning that there is a capacity & implementation challenge in respect of ISRDP/URP. 5

7. 2. KEY PROGRAMME OBJECTIVES • To address poverty alleviation and underdevelopment, • To achieve equity, • To ensure inter-sphere and inter-sectoral integration and coordination, • To attain social cohesion, • To enhance local government capacity to deliver. 6

8. PRINCIPLES • Shared decision-making (IGR) • Poverty Targeting • Demand-driven Development • Partnerships 7

9. 3. PROGRESS IN 2004/05 • New national political champions confirmed – reporting system and expectations formalised, marked improvement in nodal engagements . • Process of confirming provincial political champions finalised – multi sphere political interventions and engagements • Technical champions in place across the 3 spheres. • Guidelines developed for how national & provincial departments should participate in ISRDP & URP. 8

10. PROGRESS … • Nodal anchor projects are showing steady progress – attempts underway to track all government interventions in the nodes, not just anchor projects. • Nodal anchor projects are showing balance between the economic and social content. • Baseline statistics, based on the 2001 census, available for the urban nodes. • Draft financing protocol submitted and further work underway. • All relevant national departments audited to determine their investment in the nodes. Work has also commenced with SOE’s. 9

11. 4. PROGRESS AGAINST KEY INTERVENTIONS: 2004/05 • CDW: CDW learnership still underway. • Skills development programmes: Dept of Labour has signed an MOU with Alexandra to the value± R23 million over a three year period. All urban nodes currently undertaking skills audits with a view to entering similar MOUs. In rural nodes 750 learner contractors trained in 2004 & SETA-FET (Further Education & Training) recruited 100 entrepreneur learnerships 2004 linked to EPWP. • EPWP: Was launched in all provinces with a focus on the nodes (Galeshewe, Khayelitsha and Mitchell’s Plain). Flagship EPWP projects being undertaken in all nodes. • Social Cohesion and Moral regeneration: Social Cohesion paper developed by HSRC, project development currently being formulated. All urban nodes have crime prevention strategies in place, the challenge is still with the implementation of these. 10

12. PROGRESS … • M&E - Draft M&E Framework in place • - Nodal baselines in place • - Nodal profiles finalized • - Development of best practice book underway • Communication - Communication plans for the nodes are in place and are being operationalized in conjunction with dplg. Regular newsletters produced at nodal and national levels. • ICT - All nodes are being successfully prioritized for ICT infrastructure, such as cyber labs, public information terminals and community radio stations. Youth ICT project provide IT skills to nodes in rural areas- 40 youth. 3318 ICT learnerships were implemented in the nodes. 11

13. PROGRESS ON URP RESOURCE TARGETING • In 2004/2005 R2.2 bn was allocated to the six municipalities with URP nodes, compared to R1.6 bn in 2003/04. • Of this, R 1.3bn was the Equitable Share. • Of this R1.3bn, ± R80 million was earmarked as a special allocation for the nodal programmes, to build local capacity and implement projects. • Various programmes have prioritized the nodes, i.e MIG ±R741 million to the 6 cities with urban nodes. • Of the MIG, at least R114million is directly allocated to the nodes. 12

14. PROGRESS ON ISRDP RESOURCE TARGETING • In 2003/4 – 2004/05, LED funding to the nodes amounted to R26 million. • The Municipal Infrastructure Grant (MIG) allocation to the nodes was R1.3 billion. • The total allocation to the nodes through equitable share and conditional grants amounted to R3.6 billion. • Of the above amount, R1.9 billion was Equitable Share. 13

15. 5. CHALLENGES • Predictability in resource allocation remains a challenge. The principles of the financing protocol speak directly to this; • Inadequate project mngt & implementation capacity and capability at nodal level – project consolidate seeks to address this; and • Integrated planning between & across spheres of government; the IGR Framework Bill will begin to address this. 14

16. PRIORITIES FOR 2005/6 • To enhance nodal capacity & integrate programmes into “Project Consolidate”. • To maintain current ISRDP & URP initiatives and tailor them towards addressing the challenges of the 2nd Economy. • To finalize and operationalize the nodal financing protocol. • To align IDPs, PGDSs & NSDP and embed ISRDP & URP within these instruments. • To communicate & market ISRDP & URP across the 3 spheres. • To coordinate Monitoring & Evaluation of ISRDP & URP across the 3 spheres. 15

17. 6. 2005 / 2006 BUDGET ALLOCATION Thank you 16