DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (dplg)

1. SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS HEARINGSbyActing Director GeneralDepartment of Provincial and Local Government DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (dplg) 22 - 23 February 2007

2. Scope of Presentation • Background • Bucket Eradication Allocation • Reallocation strategy/principle • Beneficiary Municipalities • Bucket Eradication: National Overview • General observations • Interventions required • Recommendations

3. 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

4. Bucket eradication allocations

5. 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

6. Bucket Allocation – From 2006/07 reallocations

7. 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

8. 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

9. 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

10. 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

11. Expenditure – 2006/07 Financial year

12. Bucket Eradication- National Overview Progress as at end January 2007

13. Bucket Eradication- Provincial Overview Eastern Cape

14. Bucket Eradication- Provincial Overview Free State

15. Bucket Eradication- Provincial Overview Northern Cape

16. Bucket Eradication- Provincial Overview North West

17. Bucket Eradication- Provincial Overview Western Cape

18. 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

19. 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

20. 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.

21. Thank you