CONTENTS

1. PRESENTATION SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATIONPROGRAMME 5: FREE BASIC SERVICES & INFRASTRUCTUREMS M. MONTWEDI18 May 2005

2. 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 2

3. 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. 3

4. 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. 4

5. Measurable Objective (Cont) 5

6. 3. Strategic role of the Branch • Co-ordinate infrastructure development and maintenance. • Co-ordinate accelerated delivery of FBS. • Deepen local democracy and accountability. • Co-ordinate Municipal Support Partnerships. 6

7. 4. Details per sub-programmeDDG: Mr Patrick Flusk 7

8. 4.1 Progress & AchievementsMunicipal Infrastructure Grant (MIG) • The total amount disbursed to municipalities from dplg up to the end of end of 2004/5 financial year is R4, 439 billion, which is 100% of the total allocation. • The total expenditure on infrastructure projects up to the end of April 2005 is R3,682 billion. This is 82.% of the total allocation of R4, 439 billion. • 753 457 households (approximately 3.39 million people) were serviced in the 2004/05 financial year on completed MIG projects. 212 828 households were serviced on water projects, 74 245 households on sanitation projects and 144 582 households on road projects. 70% of the households serviced are in rural areas. 8

9. Progress - MIG • In February 2004 the President announced that 300 000 households will have access to sanitation. • The Minister for dplg in June 2004 announced that 375 00 households will have access to clean water and 300 000 will have access to basic sanitation in the 2004/05 financial year. • The targets have been exceeded in water as 391 440 households had access to water (212 828 households from MIG and 178 612 household from the housing programme). • 252 857 households had access to basic sanitation in the 2004/05 financial year (74 245 households from MIG and 178 612 household from the housing programme). This is 84% of the announced target. • Most of the projects were identified in the 2004 which is the year of implementation and delays were experienced through projects’ life cycle. Most (41%) of the projects are currently in the construction phase.

10. Progress - MIG • In the 2004/05 financial year, 5 287 655 person days of employment have been created through all implemented MIG projects • The employment opportunities for women (including female youth and disabled persons) in person days expressed, as a percentage was 30% of the total employment opportunities. The employment of youth was 33% of the total employment opportunities. • Women (including female youth and disabled persons) received 30% of the accredited training on implemented MIG projects and 20% of the accredited training was for youth. • The total number of SMME’s appointed by municipalities on MIG projects as at March 2005 is 856. • The total number of BEE’s appointed by municipalities on MIG projects as at March 2005 is 88. (BEE’s are only reported on new MIG projects.)

11. Progress - MIG • R5,4 billion allocated to municipalities in 2005/6 financial year. R200 million ring-fenced for sanitation bucket eradication. • Special Municipal Infrastructure Fund (SMIF) for 2004/5 (R32 million) implemented and R128 million for 2005/6 allocated. • Municipalities receiving MIG allocations increased from 88 to 159 both medium and low capacity municipalities targeted. • 78 project management units established in 2004/5 and additional 72 to be established in 2005/6 financial year. • MIG management information system being rolled out in a phased approach from April 2005. • General process being finalised to confirm infrastructure backlogs together with sector departments. This will assist with the determination of the budget required to redress the backlogs. 11

12. ProgressMunicipal Services Partnership • Finalised the Guidelines on MSPs. • Conducted 1 National and 9 Provincial Workshops on MSPs. • Consultation with key stakeholders on the future of the Municipal Infrastructure Investment Unit (MIIU). • MSP Training to 415 councilors and officials completed. • Developed the Implementation Strategy on the Support Unit for the Public Provision of Services (SUPPS). • Support given to Municipalities participating in RED 1. • Resuscitated discussions with Department of Health,SALGA and National Treasury on fundingof Municipal Health Services. 12

13. Progress Public Participation and Empowerment • Handbook on Community Development Workers published • 2004/05 ward survey done and published • Ward Committee resource book completed • Public participation conference held on 29 – 30 March 2005 (1000 delegates attended)

14. ProgressFree Basic Services • Finalized the Free Basic Services Study and developed an information portal to assist municipalities to report and share information. • 67% of households with infrastructure access free basic water. • 45% of households benefited from free basic electricity and 2,4 million of these were poor households served by Eskom. • National intervention succeeded in facilitating sound relationships between municipalities and Eskom. • Facilitated policy review for FBE regarding the downgrading clause. • Indigent Policy developed 14

15. 4.2 2005/06 Priorities • Build capacity of struggling municipalities identified in the study and through Project Consolidate. • Build and strengthen the programme & project management capacity of municipalities • Enhance the planning capacity of municipalities • Strengthen the participation of sector departments in the implementation of MIG • Implement MIG monitoring system 15

16. 2005/06 Priorities … • Creation of awareness to municipalities to use partnership as an option to accelerate service delivery. • Finalise and establish the Implementation Strategy for the Support Unit for the Public Provision of Services. • Finalise the future strategy of the MIIU. • Hold district wide information session on the importance of ring fencing the electricity business. • Develop Guidelines on Service Level Agreements and Contract Management. • Mobilise community involvement in service delivery through Municipal Community Partnerships. • Funding for Municipal Health Services obtained

17. 2005/06 Priorities … • Develop a programme of action on public participation taking forward the Conference resolutions. • Strengthen the functionality of ward committees • Mobilise communities to participate in ward meetings so as to hold elected institutions accountable. • Determine indicators and develop monitoring system to measure impact of FBS. • Finalize guidelines for alternatives for FBS where no infrastructure exists. • Finalize the targeting framework for poor households. • Develop communications strategy for FBS. • Support the alignment of the FBS structures in the provinces. • Strengthen provincial capacity to support municipalities. 17

18. 5. Free Basic Services and Infrastructure Budget * National Treasury – Medium Term Policy Budget Statement 2004 Thank you 18