department department of transport of...

Department of Transport

Joint Budget Committee

Briefing on Departmental expenditure for 2007/08

Presentation by Ms M. Mpofu Director General: Transport

30 May 2008

Department

of Transport

1

Department

of Transport

• Background• Expenditure per Programme• Expenditure on Compensation of Employees• Expenditure on Transfer Payments• Budget challenges• Public Transport Infrastructure and Systems

(PTIS) grant projects• Expenditure for major capital and infrastructure:

• South African Rail Commuter Corporation Ltd. (SARCC)

• South African National Roads Agency Ltd. (SANRAL)

Contents

2

Department

of Transport Background

• Expenditure against budgets:• Past 7 years• Current and capital over the

past 7 years

• Adjusted Budget 2007/08

• Virements in 2007/08

3

Department

of Transport Expenditure against budgets over the last 7 years (R,000)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

Actual Final Budget Original Budget

Exp. % of final budget 97.85% 97.91% 98.95%

Exp. % of original budget 106.18% 101.05%106.85%

98.53% 96.92%

98.68% 100.93%

97.19% 98.70%

103.81% 102.97%4

Department

of Transport Expenditure against budgets over the last 7 years (continued)

Year Actual Expenditure Final Budget Percentage spent

Current Capital Current Capital

96.89% 99.93%

98.52%

99.97%

98.84%

99.88%

100.56%

99.51%

97.60%

98.71%

98.46%

96.43%

94.72%

3,443,874

97.94%

1,601,413

1,939,066

1,205,292

1,231,680

1,520,842

5,806,536

7,977,073

3,901,334

5,093,356

5,547,980

9,220,163

7,940,254

8,566,859

Current

3,336,679

3,807,892

5,027,657

5,462,493

8,890,861

7,521,357

8,390,198

(R’000) Capital

2001/02 1,600,249

1,910,292

1,204,886

1,217,375

1,519,031

5,839,085

7,938,076

2005/06

2006/07

2002/03

2003/04

2004/05

2007/08

5

Department

of Transport Adjusted Budget for 200/708

Details R’000Original budget per 2007 ENE 15,857,923

Adjusted Budget:

Funds rolled over from the previous year: 386,009

P3: Membership fee for the International Maritime Organisation 869

P4: Development of the National Land Transport Bill 2,100

P5: Consultant services to alleviate the freight congestion in the Port of Durban precinct and to determine the future of Durban International Airport after its decommissioning

2,196

P6: Marketing and communications for the taxi recapitalisation project 25,000

P6: Scrapping allowance for the taxi recapitalisation project 339,000

Total of Adjusted Budget 686 009

P7: Road Accident Fund Amendment Act regulations and communications programme and the strategy to restructure the Road Accident Fund

14,000

Unforeseen and unavoidable expenditure: 300 000

P6: Additional bus subsidies - increases in the fuel price 300 000

P7: Operationalisation of the Ports Regulator 2,844

Final budget for 2007/08 16 543 9326

Note: Under expenditure in 2006/07: R386m; Rolled over to 2007/08 R386m

Department

of Transport Virements in 2007/08 (R’000)

7

Shifted from Shifted to Amount Reason

P1 P1 12,000

P1

P1

P1

P1

P1

P7

P1

P1

P1

P1

P1

P1

P5

P5

P1

2,000

19,000

2,300

2,200

500

38,000

21,750

7,100

4,700

1,726

500

1,200

1,000

2,700

7,176

800

17,400

P2

P4

P5

P6

P7

Total

P4 Increase capacity of Flight Operations and Airworthiness Inspectors at SACAA

P1 Arrive Alive communications

P4

P1

October Transport Month, AU Conferences, World Remembrance Day

P1 Recruitment advertising and competency testing

P1 Centres of Development

P2

Total

Transport studies in the Czechoslovakian Republic

P4 Freight Logistics Databases and facilitation of Freight Logistics Forums

P4 Compensation of Employees

P4 Communications and IT projects, and to cover the cost of performance awards

Dark Grey: Within Programme

Department

of Transport

• Expenditure per programme per economic classification:

• Reasons for under / over expenditure:

• Expenditure per month:

•Programme 1•Programme 2•Programme 3•Programme 4•Programme 5•Programme 6•Programme 7

Expenditure per Programme

8

Department

of Transport

Expenditure for Programme 1:Administration

Exp for the Year

Budget Variance

55,679 57,110

120,833

0

111

158

9,165

2,132

189,509

113,697

1,431

7,136

(1,280)

(122)

23

0

57

1,280

233

135

9,165

2,075

182,264 7,245

Exp in Last Qtr

Compensation of Employees 16,724

Goods and Services 24,090

Thefts and Losses 1,277

Transfers Households 107

Transfers Departmental Agencies & Accounts

43

Totals 45,748

Transfers Universities & Technicons 3,175

Machinery & Equipment 332

Programme 1: Expenditure per economic classification (R,000)

Percentage of budget 96.18% 100.00%

Average per month 15,189 15,792 604 15,249

3.82% 24.14%

9

Department

of Transport Programme 1: Reasons for under expenditure (R,000)

Under expenditure in 2007/08 R’000Compensation of Employees – due to posts that could not be filled 1,431

7,1365,800

1,336(1,280)

(122)

Transfers Departmental Agencies & Accounts – Under spent on payments to TETA due to posts not filled

23

57

7,245

Funds were shifted for the National Land Transport Information System and Arrive Alive projects that were not funded

Goods and Services:

Other under expenditure, mainly in Information Technology infrastructure

Transfers Households - Leave pay over spentThefts and losses – historical irregular expenditure written off

Machinery & Equipment – due to posts that could not be filled

Total

10

Department

of Transport

0

5000

10000

15000

20000

25000

30000

A M J J A S O N D J F M

Programme 1: Expenditure per month (R,000)

• Expenditure increased for October to December due to expenditure on communications for October Transport Month, World Remembrance Day and Arrive Alive communications

• Expenditure increased in February and March due to Arrive Alive communications

11

Department

of Transport

Expenditure for Programme 2:Transport Policy, Research and Economic Analysis

Exp for the Year

Budget Variance

12,507 13,486

15,093

0

0

435

29,014

4,799

979

10,294

(2)

(176)

333

2

176

102

17,586 11,428

Exp in Last Qtr



Thefts and Losses 2


Totals 4,799



Percentage of budget 60.61% 100.00% 39.39% 16.54%

Average per month 1,466 2,418 952 1,600

12

Department


Under expenditure in 2007/08 R’000Compensation of Employees – due to posts that could not be filled 989

10.294Savings: Policies developed by internal resources rather than outsourced 4,301

Policy development delayed - sub standard bids and work not completed: 5,993Alignment of the Transport Sector Charters with the Codes of Good Practice 497

Socio-economic impact of the 2010 Soccer World Cup 650

Direct impact of investment in key economic transport infrastructure 495

Impact of public transport subsidies on the economy 500

Transport Performance Indicator Database 620

The microeconomic impact of fuel costs in transport 500

Anti train surfing, train suicide and related issues 417

Women and gender audit 764

1500

50

(2)(176)

333

11,428

Goods and Services:

Maritime transport policy

Thefts and losses – debts written off

Scholar transport policy

Transfers Households - Leave pay over spent


Total13

Department

of Transport

0

500

1000

1500

2000

2500



• Expenditure patterns are irregular, because expenditure is incurred and contractors are paid as milestones are achieved in policy development projects

14

Department

of Transport

Expenditure for Programme 3:Transport Regulation and Accident and Incident Investigation

Exp for the Year

Budget Variance

26,645 27,939

190,534

0

0

4,786

5,510

977

1,628

231,374

165,944

1,294

24,590

(3,823)

(21)

0

1,930

0

1,148

3,823

21

4,786

3,580

977

480

206,256 25,118

Exp in Last Qtr






1,196

Totals 90,062

Transfers Foreign Governments & International Organisations

447

Transfers Non Profit Institutions 53




Average per month 17,188 19,281 2,093 30,021 15

Department



24,590Road Transport Regulation: R5,1 million was under spent because of late invoices received of R2,3 million and savings of R2,8 million on the maintenance of the NaTIS / eNaTIS system

13,300

Under spent due to capacity constraints because posts could not be filled:

Rail Transport Regulation 2,300Accident and Incident Investigation 2,600

Aviation Regulation under spent R1,6 million on aviation security because a service provider was appointed late to develop a security system for the OR Tambo airport.

1,600

Maritime Regulation under spent R3,7 million, mainly because a lack of capacity limited the development of the Maritime Safety Coordination Centre.

3,700

Savings in Administration support 1,0903,823

(21)

Transfers Foreign Governments & International Organisations:Fees were over budgeted for and an invoice was not received from the International Maritime Organisation

1,930

1,148

25,118

Goods and Services:

Thefts and losses – historical irregular expenditure written offTransfers Households - Leave pay over spent


Total16

Department

of Transport

0

10000

20000

30000

40000

50000

60000

70000

80000



• Expenditure increased in September, November and March , due to late invoices for oil pollution prevention services paid and a prepayment in the previous financial year of R18,5 million for special investigations that was only journalised to expenditure in November 2008.

• Invoices for the development and maintenance of the eNaTIS system was paid in June (R58,7m), December (R43,2m) and February (R39,1m), of which the National portion of R52,7 million was only journalised to expenditure in March 2008, following an arrangement with Treasury to hold the provincial portion in suspense and to claim that portion back from the National Revenue Fund.

17

Department

of Transport

Expenditure for Programme 4:Integated Planning and Inter-sphere Co-ordination

Exp for the Year

Budget Variance

17,292 20,774

83,266

0

1,174,000

0

3,521,929

476,000

518

38,221

5,314,708

36,620

3,482

46,646

(7)

0

(41)

0

0

191

38,221

7

1,174,000

41

3,521,929

476,000

327

0

5,226,216 88,492

Exp in Last Qtr



Thefts and Losses 3

Transfers Prov. And Local Governments 596,333


Transfers Dept. Agencies & Accounts 810,929

Totals 1,906,663

Transfers Public Corp. & Private Ent. 476,000


0 Other fixed assets




Department



46,646Set aside for the procurement of bicycles that could not be purchased in the year 30,980National Airports Development Plan: Delays in the appointment of a service provider 7,000Projects were delayed and payments were not made for longer term projects, such as the National Transport Master Plan, development of the National Land Transport Bill, the development of guidelines and standards for monitoring of Transport Planning, and a Booklet for Minimum Requirements for an Integrated Transport Plan

8,666

Thefts and losses – Debts written off (7)Transfers Households - Leave pay over spent (41)

Machinery & Equipment – due to posts that could not be filled 191

Other fixed assets: 38,221

The budgets for the construction of the Sani Pass and overload control facilities were not included in the Division of Revenue Act, and there was uncertainty about the appropriate method of payment and ownership of the assets. The Treasury recommended that the Department should apply to roll over the funds and have the funds allocated to the Provinces

88,492

Goods and Services:

Total19

Department

of Transport

-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000


SANRAL PTIS OTHER


• The balance of budgets from the PTIS fund were only paid in March 2008 due to the poor expenditure performance of municipalities. The PTIS allocation of R476 million to the SARCC was also only made in March 2008 because no funds were yet spent by the SARCC from this allocation because of the long term capital nature of the projects.

20

Department

of Transport

Expenditure for Programme 5:Freight Logistics and Corridor Development

Exp for the Year

Budget Variance

4,344 7,976

18,340

0

65

26,381

8,590

3,632

9,750

(2)

18

2

47

12,983 13,398

Exp in Last Qtr


Goods and Services 297

Thefts and Losses 2

Totals 1,428




Average per month 1,082 2,198 1,117 476

21

Department


Under expenditure in 2007/08 R’000Compensation of Employees – due to posts that could not be filled 3,632Goods and Services: 9,750

Thefts and losses – debts written off (2)

Delays in the finalisation of agreements between the department and provinces for joint freight logistics projects, which included Freight Logistics Forums (R6 million), a National Freight Logistic Monitoring Framework (R2,6 million), and the development of Freight Data Banks (R1,2 million)


13,398Total

22

Department

of Transport

0

500

1000

1500

2000

2500

3000

3500

4000

4500



• High expenditure in June and December because expenditure is incurred and contractors are paid as milestones are achieved for longer term projects

23

Department

of Transport Programme 6: Expenditure per economic classification (R,000)

Expenditure for Programme 6:Public Transport

Exp for the Year

Budget Variance

11,366 12,512

133,977

0

3,029,411

578,000

11,798

6,791,194

133

10,557,025

108,147

1,146

25,830

(1,943)

0

6,448

8,945

0

9

1,943

3,029,411

571,552

2,853

6,791,194

124

10,516,590 40,435

Exp in Last Qtr




Transfers Provincial And Local Governments

182,650

Transfers Households 304,300

Totals 2,693,228

Transfers Non Profit Institutions 0

Transfers Public Corporations & PrivEnterprises

2,177,676




Department



Earmarked funds of R20 million for a feasibility study into rail operations and possible public private partnerships for rail operations were not spent, because the bids that were received were referred to the SARCC because the SARCC would be in a better position to manage the project

20,000

Under spent on Public Transport contract management 2,000

Under spent on other Public Transport projects 1,300

Public Transport savings in administration 2,530

Thefts and losses – historical irregular expenditure written off (1,943)

Transfers Households - Funds paid to the Taxi Scrapping Administrator could not be utilised as the scrapping process was slowed down to accommodate the available budget

6,448

Transfers Non Profit Institutions - Transfer payments to SANTACO were witheld, because SANTACO could not provide progress reports and financial statements as required in the contract

8,945


40,435Total25

Department

of Transport

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000


Gautrain Bus subsidies SARCC Other


• Gautrain paid according to payment schedule• Bus subsidies: Late payments because Gauteng contract signed late`

26

Department

of Transport

Expenditure for Programme 7:Public Entity Oversight and Economic Regulation

Exp for the Year

Budget Variance

3,490 5,859

16,710

0

0

173,173

179

195,921

773

2,369

15,937

(1)

(4)

11,144

97

1

4

162,029

82

166,379 29,542

Exp in Last Qtr


Goods and Services 268

Thefts and Losses 1



106,957

Totals 108,352




Average per month 13,865 16,327 2,462 36,117

27

Department



Earmarked funds could not be spent on the RAF restructuring because Regulations had to be developed for the RAF Amendment Act before various provisions dealing with the liability of the RAF could come into operation

14,000

Savings in other Public Entity Oversight projects 1,937

Transfers Departmental Agencies & Accounts - Transfer to the Ports Regulator could not take place because the Ports Regulator only became operational late in the financial year

11,144

Thefts and losses – Debts written off (1)

Transfers Households - Leave pay over spent (4)


29,542Total

28

Department

of Transport

0

10000

20000

30000

40000

50000

60000


Agencies Other


• Late payments to Departmental agencies because quarterly reports were not submitted on time and due to a special virement and payment of R21,75 million to the SACAA in March 2008 to enable the SACAA toappoint Flight Operations and Airworthiness Inspectors to comply with international civil aviation safety standards

29

Department

of Transport

• Expenditure per month• Structure and vacancy rate• Employment equity status• Turn over analysis

Expenditure on Compensation of Employees

30

Department

of Transport Compensation of Employees expenditure per month

0

2000

4000

6000

8000

10000

12000

14000

16000

18000


Comp Of EmployeesAverage budget

Increased expenditure in March 2008 mainly due to incentive bonuses paidto employees on levels 1 to 12

(Adjusted for claims against the RTMC)

31

Department

of Transport

• Total Establishment: 1020• 668 posts activated

• 352 posts inactive

• Vacancy rate 35.48% (as at 15 May: 30.39% i.e 465 filled posts)

• Turnover rate:10,67% (46)

• Number of internal promotions: 32

Structure and vacancy rate

32

Department

of Transport

Total Post: 668Filled: 465 (69,61%)

All LevelsBLACKS: 398 (85.59%)– African: 367 (92.22%)– Coloureds: 15 (3.76%) – Indian: 16 (4.02%)WHITE: 67 (14.40%)DISABLED: 9 (1.9%)WOMEN: 243 (52.26%)– Level 1 to 10: 173 (71,19%)– Level 11 & 12: 38 (15,63%) – Level 13 above: 32 (13,18%)

SMS onlyBLACKS: 75 (86.21%)– African: 60 (80.00%)– Coloureds: 3 (4.00%) – Indian: 12 (16.00%)WHITE: 12 (13.79%)DISABLED: 1 (0.13%)WOMEN: 33 (44%)

33

Employment equity status15 May ’08

Department

of Transport

Total posts TransfersLevels 3-8 262 24 (16.03%)

Levels 9-12 268 15 (5.6%)

Levels 13-16 138 7 (5.07%)

Total 668 46 (10.67%)

34

Turnover analysisApril 2007 to March 2008

Department

of Transport Expenditure on Transfer Payments

• Expenditure against budgets• Transfer Payments to Municipalities

from PTIS• Transfer Payments per month• Gautrain expenditure and budgets• PTIS expenditure and budgets

35

Department

of Transport

Details Actual Budget

3,688,879 3,700,046 11,144

27,260

97,774

28,862

12,919

3,521,929

158

Foreign Governments and international organisations 3,580 5,510 1,930 Membership Fees: African Civil Aviation Commission 556 668 112

300

201

3,429

912

0

27,260

97,774

28,862

12,919

3,521,929

135

298

569

2,153

4

Variance

Departmental agencies 11,167 11,144

0

Road Traffic Management Corporation 0

South African Civil Aviation Authority 0

Membership Fees: International Maritime Organisation 908

0

0

23

2

-368

1,276

Ports Regulator

Railway Safety Regulator

South African Maritime Safety Authority

South African National Roads Agency Ltd.

Transport Education and Training Authority

Membership Fees: Cospas Sarsat Contribution

Membership Fees: Indian Ocean Memorandum of Understanding

Membership Fees: International Civil Aviation Organisation36

Transfer payments (R’000)

Department

of Transport


572,220 578,111 578,000

111

4,203,411 1,174,000

3,029,411

12,775 Hamnet 53 53 0

Mountain Club of South Africa 53 53 0

53

818

11,798

571,450

381

389

4,203,411 1,174,000

3,029,411

3,830

53

818

2,853

Variance

Households other transfers 5,891 6,550

-381

Leave gratuity -278

Provinces and Municipalities 0 0

0

8,945

0

0

8,945

Taxi Scrapping Administrator

Sponsorships (Refer Annexure 1O in Financial Statements)

PTIS Grants to Municipalities

Gautrain Rapid Rail Link

Non-profit institutions

Off Road Rescue

National Sea Rescue Institute

Taxi : SANTACO

37

Transfer payments (R’000)(Continued)

Department

of Transport


7,267,194 7,267,194 2,835,997

4,431,197

9,165 4060

2825

2280

TOTAL 15,748,279 15,776,212 27,933

2,835,997

4,431,197

9,165 4060

2825

2280

Variance

Public Corporations 0 0

0

Universities and technikons 0 University of Stellenbosch 0

0

0

Bus subsidies

South African Rail Commuter Corporation

University of Pretoria

University of Kwa-Zulu Natal

38

Transfer payments (R’000)(Continued)

Department

of Transport

Municipality Trans-ferred

Spent by Municipality

% Spent

Johannesburg 329000 113624 34.54%

Tshwane 105000 4320 4.11%

Cape Town 230000 74000 32.17%

Ethekwini 125000 76040 60.83%

Klerksdorp / Matlosana 22000 5264 23.93%

Mangaung 25000 12237 48.95%

Rustenburg 33000 2319 7.03%

Tubatse 14000 2288 16.34%

55000

Nelson Mandela 132000 30715 23.27%

Polokwane 50000 18379 36.76%

Ekurhuleni 13000 9220 70.92%

Sol Plaatjie 11000 710 6.45%

21000

9000

Mbombela

1,174,000

24.00%

Amatole

13198

0

0

0.00%

363,336 King Sabata 0.00%

30.95%Total39

Transfer Payments to Municipalities from PTIS (R’000)

Department

of Transport Transfer payments per month

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000


Column 1 Average budget

40

Department

of Transport Gautrain expenditure and budgets

3,029

2,507

318

3,241 3,266

2006/07 2007/08 2008/09 2009/10 2010/11

Total budget R12,36 bn over 5 years

Actual Actual --------Medium term budgets--------

R Million

2008/09

41

Department

of Transport PTIS expenditure and budgets

241.7698.0

1,780.0

3,480.0

2,975.0

4,464.5

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Total budget R13,6 bn over 6 years (excl. monitoring & evaluation)

Actual Actual Actual ----Medium term budgets-----

R Million

2008/09

42

Department

of Transport Budget challenges

Many challenges remain in the transport system, which demands huge allocations from the fiscus, which is not always possible.

To illustrate the demands, the department requested additional funding of R44,4 billion over the last MTEF. Additional allocations amounted to R6,06 billion.

Main challenges are:

• The need to implement the public transport strategy with much less funding than required – additional funding needed for Integrated Rapid Public Transport Networks (IRPTN’s)

• High growth in number of passengers requiring bus subsidies but no additional allocations were received on the budget

• Need to transform the subsidy system without additional funds• After a slow start, the scrapping of taxis gained momentum beyond

budget allocations, forcing a deliberate slowing down of the process• Rail: Budget requirements for overhaul, upgrade and new coaches,

new rolling stock, rolling stock facilities and depots, infrastructure and mega rail projects is not affordable

• Roads: Funding is limited to address backlogs and implementation of the Road Infrastructure Strategic Framework for S.A. (RISFSA)

43

Department

of Transport

• Mangaung• Johannesburg• Cape Town• Nelson Mandela Bay• Ethekwini• Polokwane• Mbombela• Rustenburg• Tshwane• Non-2010 allocations

PTIS Projects

44

Department

of TransportProjects to be completed by 2010-Mangaung

Elizabeth Street PedestrianisationPublic Transport Interchange (Intermodal Facility) and Mangaung Activity corridor Ops planning.Integrated Rapid Transit Public Transport Network/ BRT approved in the 2008 DORA subject to submission of a detailed Operational Plan

45

Department

of TransportProgress Report

Elizabeth Street Pedestrianisation- CompletedPublic Transport Interchange (Intermodal Facility) and Mangaung Activity corridor- Phase1 (Dr. Beltcher Road upgrade is complete. Phase 2 under constructionOperational planning- 2009 Confederations Cup Ops Plan has been finalised and submitted to both LOC and DOT. 2010 Ops. Plan being finalised and will be submitted to DOT on time (11 April 2008)Integrated Rapid Transit Public Transport Network/ BRT approved in the 2008 DORA - detailed Operational Plan being finalised46

Department

of TransportProjects to be completed by 2010-Johannesburg

Rea Vaya Bus Rapid Transit Inner City Distribution System Ellis Park Precinct Nasrec Precinct2010 Transport Operational Plan

47

Department


Rea Vaya BRT- 2 contractors appointed on Design and Construct contracts for 2 sections, currently on siteInner City Distribution- Contractor on site on Edith Cavell and Joubert Park Busway, scheduled for completion in July and August 2008 respectivelyEllis Park Precinct- Contractor on site for construction of BRT route along Charlton Terrace, Bertrams and along Saratoga Road.Nasrec Precinct- Pat Mbatha Public Transport Way on final stages of completion2010 Operational Planning – currently underway, initial Precinct Plans submitted to DoT48

Department

of TransportProjects to be completed by 2010-Cape Town

N2 Airport-City Link

Klipfontein BRT Corridor

Koeberg BRT Corridor

Green Point Stadium Precinct

City-wide ITS/TDM projects

2010 Transport Operational Plan

49

Department


N2 Airport-City Link- BMT Lane completed, operational; Hospital Bend-contractor on site

Klipfontein BRT- consultants appointed, busy with Preliminary Design

Koeberg BRT- Preliminary design and Operational Planning started Jan 08, construction tenders scheduled to go out late 2008.

GreenpointPrecinct- Conceptual planning completed for 8 access roads

2010 Operational Planning – first order plan submitted to DoT in May 2008

50

Department

of TransportProjects to be completed by 2010-Nelson Mandela Bay

Khulani BRT Corridor PT Facilities and Interchanges Stadium PrecinctVarious Road UpgradesNMT( Sidewalks, Cycle Tracks, Pedestrian Bridges)2010 Transport Operational Plan

51

Department


Khulani BRT Corridor- conceptual design phase, to be completed end June 2008PT Facilities and Interchanges- preliminary design of PT facilities to support BRT CorridorNMT Infrastructure- Preliminary design of facilities, to be completed end June 2008Various Road Upgrades- Diaz Rd, Perl Rd Seyisi and Matomela Rd, all completed. More roads at Detailed Design stage2010 Operational Planning – first order plan submitted to DoT in May 2008

52

Department

of TransportProjects to be completed by 2010-Ethekwini

Warwick Junction CBD People Mover-Inner City Distribution ITS/TDM Stadium Precinct M4 Public Transport Lane2010 Transport Operational Plan

53

Department

of Transport

Warwick Junction- Contractor on site from March 2008Inner City Distribution- People Mover buses currently operationalITS/TDM- Variable Message Sign boards installed, PT Call Center operationalStadium Precinct- Conceptual planning cuurentlyunderway2010 Operational Planning – first order plan submitted to DoT in May 2008

Progress Report

54

Department

of TransportProjects to be completed by 2010-Polokwane

Upgrade of Airport Road PT Facilities and Laybyes Stadium PrecinctVarious Road UpgradesNMT( Sidewalks, Cycle Tracks, Pedestrian Bridges)2010 Transport Operational Plan

55

Department

of Transport

Upgrade of Airport(Webster) Road- contractor on site, earthworks under wayPT Facilities and Laybyes- Contractor on site, some shelters already installedNMT Infrastructure- Preliminary design of facilities, and stadium precinct2010 Operational Planning – first order plan submitted to DoT in May 2008

Progress Report

56

Department

of TransportProjects to be completed by 2010-Mbombela

Mataffin Stadium Precinct R40 HOV Lane Interchange Facilities in City Center2010 Transport Operational Plan

57

Department

of Transport

Mataffin Stadium Precinct- temporary school in the precinct that needs to be moved, prior to start of constructionR40 HOV Lane- preliminary design stage

Interchange Facilities- finalising land acquisition

2010 Operational Planning – first order plan submitted to DoT in May 2008

Progress Report

58

Department

of TransportProjects to be completed by 2010-Rustenburg

IRPTN Operational Plan Phokeng Stadium Precinct Park and Ride Facilities2010 Transport Operational Plan

59

Department

of Transport

Phokeng Stadium Precinct- preliminary design of local access roadsIRPTN Operational Plan- service provider to be appointed in June 2008Park and Ride Facilities- consultant still to be appointed 2010 Operational Planning – first order plan submitted to DoT in May 2008

Progress Report

60

Department

of TransportProjects to be completed by 2010-Tshwane

Loftus Stadium Precinct Airport Access Roads BRT Corridor2010 Transport Operational Plan

61

Department

of Transport

Loftus Stadium Precinct- preliminary design and EIA currently underwayAirport Access Roads- detailed designs currently underwayBRT Corridor- council approved, RFP issued2010 Operational Planning – first order plan submitted to DoT in May 2008

Progress Report

62

Department

of TransportNon-2010 allocations

Sol Paaltje- NMT facilities and Road UpgradesMatlosana (Klerksdorp)-various PT facility and Road upgradesEkurhuleni- NMT and PT facilitiesGreater Tubatse- Upgrade of PT lanesKSD- Upgrade of PT Lanes and FacilitiesAmathole- Intermodal and NMT facilities

63

Department

of Transport

Sol Plaatje- bicycle lanes under construction, detailed design for road upgradeMatlosana- Disagreements with Taxi Associations on Taxi Rank designs, NMT Facilities under constructionEkurhuleni- NMT facilities completed, Intermodal Facilities currently under constructionGreater Tubatse – currently under constructionKSD- MOA was signed very late by Municipality, no progress yet.Amathole- Detailed designs currently under way.

Progress Report

64

Department

of Transport SARCC’s Expenditure For 2007/08

“Accelerating the Momentum for

Change”

65

INTRODUCTION

• Public investment in rail on the increase• Well functioning rail passenger transport critical

• growing economy • congestion• rising fuel costs• Construction industry capacity• Construction industry price escalation

• Supply of building materials• Investment in Skills, Operations and

Infrastructure

66

Department

of Transport

R'000 2007/08 2008/09 2009/10 2010/11 Total1 2 3 4 (2,3,4)

Operational Subsidy 2,259,119 2,485,031 2,683,650 2,844,669 10,272,469Inflation Adjustment - SARCC 18,559 30,307 36,096 84,962Additional for Smeyl 500,000 450,000 400,000 1,350,000

Capital Grant 1,696,078 2,267,686 3,484,144 3,693,193 11,141,101Additional for SARCC 100,000 200,000 700,000 1,000,000

TOTAL 3,955,197 5,371,276 6,848,101 7,673,958 23,848,532

PTIS 476,000 210,000 450,000 0 1,136,000

TOTAL 4,431,197 5,581,276 7,298,101 7,673,958 24,984,532

MTEF (Incl. S Meyl)

67

Department

of Transport

CAPITAL EXPENDITURE AS AT 31 MARCH 2008

R'milSPENT

TO DATEANNUAL BUDGET

%SPENT

ROLLING STOCK A 1,663.18 1,356.86 122.58

INFRASTRUCTURE B 185.23 220.42 84.04

PERWAY,BRIDGES, STRUCTURES AND OTHER 155.22 67.84 228.81

ELECTRICAL 21.28 67.84 31.36

SIGNALS & TELECOMMUNICATIONS 8.73 84.74 10.30

IT & SYSTEMS + MOVEABLES C 32.00 33.90 94.40

SUB - TOTAL (A-C) 1,880.41 1,611.18 116.71

PROPERTY PORTFOLIO (Managed by Intersite) D 81.59 84.90 96.10

SUB - TOTAL (A-D) 1,962.00 1,696.08 115.68

PUBLIC TRANSPORT INFRASTRUCTURE SYSTEMS (PTIS) 2010 Projects E 137.34 656.00 20.94

GRAND TOTAL (A-E) 2,099.34 2,352.08 89.2568

Department

of Transport

Funds committed to date(not yet payable)

• The amount actually paid out on the 2010 World Cup projects as end of March 2008, amounts to R 137.34 million.

• However, with 2010 projects, commitment have been undertaken with the approval of projects by Finance Capital Committee and Board of Control amounting to R 1,348 billion.

• Regarding the above committed projects, the construction work have commenced.

69

Department

of Transport

Expenditure and funds committed as at 31 March 2008

• Approval already given on the following expenditure (amounting to R620 million):

Construction of platform heights Provision on signage at various stationsConstruction of new stationProvision of parking facilitiesProvision of lighting on platforms

• The completion date for the above projects is set for April 2009

• Construction will commence by September 200870

Department

of Transport

Medium term budgeting challenges

• Despite visible improvements, commuter rail services remain on a ‘knife edge’

–– A major incident in one region could trigger a crisis A major incident in one region could trigger a crisis in the entire system, Tshwane Train Burnings an in the entire system, Tshwane Train Burnings an exampleexample

• Lack of understanding of the financial sector of rail industry• Ability to fund and resource• Accelerating the rolling stock refurbishment programme• Lack of capacity in the rail industry• Investment in skills• Potential shortages of building materials • Price escalation in the building industry71

Department

of Transport

8000 Major Culverts and Bridges

73

CONTRACTS AWARDED2006/07

Business area R’000

Non-toll Network 2 683 150

Toll Network 829 733

Other 776 921

TOTAL VALUE 4 289 804

2005/06 2 632 138

Note: 2007/08 not available yet, await completion of Financial Statements77

TREASURY GRANT– NON-TOLL

1565.2

2292.1

3521.94160.0

0.0500.0

1000.01500.02000.02500.03000.03500.04000.04500.0

Ran

ds (M

illio

n)

2005/06 2006/07 2007/08 2008/09

78

BORROWING REQUIREMENTS: TOLL NETWORK

6498

10103

3763

0

2000

4000

6000

8000

10000

12000

Ran

ds (M

illio

n)

2008/09 2009/10 2010/11

79

Stadium: Royal BafokengCity: Rustenburg

• Improved link between JHB and North West/Rustenburg/Platinum Corridor requiredProvince: North West

• R512/PWV3 corridor upgrading proposed• Toll feasibility completed, however, time constraint• R900m (2006 Rand)• State Toll

Position Traffic 2007

% Growth over 4 yrs

T1 – Marikana Plaza

T2 - R512

8906 14.8

8531 12.2

T1

T2

80

Stadium: Peter MokabaCity: Polokwane (Pietersburg)

• Main access to stadium from eastern ring roadProvince: Limpopo

• Need to provide final link (6,5 km)• Construction of interchanges

on the existing ring road• R280m (2006 Rand)• State toll


% Growth over 5 yrs

T1 – Capricon Plaza

T2 - Nyl Plaza 7594 14.1

5581 6.2

T1

T281

Stadium: MbombelaCity: Mbombela (Nelspruit)

• Stadium access from existing N4, need provides unhindered flow to through traffic, as well as provide easier access from north and east

Province: Mpumalanga• Extension to existing Concession• 20km new road• Under construction• Est. Cost: R900 million


% Growth over 5 yrs

T1 – Machado Plaza

T2 – Nkomasi Plaza 7635 4.9

8653 8.6

T1

T2

82

N1-N2 WINELANDS TOLL HIGHWAY

• Project Description : Proposed Toll Highway PPP Concession: – N1 - Old Oak I/C (Bellville) and Sand Hills (Hex River Valley) 106 km– N2 –R300 I/C (CPT Airport) to Bot River (71 km).

• Province : Western Cape• Estimated Length : Approximately 177 km• Initial Construction Works:

– Completion of North Bore of Huguenot Tunnel (If not completed Before), Widening, Upgrade, Rehabilitation of N1 including 5 new interchanges (3 at Worcester) to replace existing at grade intersections

– Construction of N2 through Somerset West (13 km), Upgrade of Sir Lowry’s Pass, Widening of N2 Between top of Sir Lowry’s Pass to Houwhoek Pass to 4 lanes including 5 new interchanges to replace existing at grade intersections, Widening , Upgrade and Rehabilitation of the N2 as required.

• Estimated Costs : R 2 820 million incl. Huguenot tunnel (2005 Rand)• Project Development Status

– Environmental Impact Assessment: Complete (RoD February 2008)– Economic Impact Assessment: Complete– Declaration of Intent: In progress

• Way Forward:- Complete Intent to toll for submission to Board and Minister for

consideration.- Invite bids: Nov 2008

83

R44

R303

R44

Bot River

Kleinmond

Gordon'sBay

Caledon

Simon's TownN2

Worcester

Paarl

HuguenotTunnel

Wellington

Du Toit's Kloof

Hex River Valley

R43

R60/N15R45

R44

R304 R

312 R

302

R101

R307R27

R30

2

R44

R43

Stellenbosch

R45

R44

R310

M10

M58

R300

R310 R321

R43

R40

6

N1Brackenfell

De Doorns

Firgrove

Sandhills

Sir Lowry's Pass

Grabouw

Rawsonville

Villiersdorp

Houwhoek

GreytonSomerset West

Hout Bay

Cape Town

N2

M3

Bellville

N7

N7

N1

T

Malmesbury

R45

0 10 20 km

Winelands Toll Highway ProjectLocation of N1 and N2 Toll Plazas

False Bay

AtlanticOcean

Durbanville

N2 Section :R300 to Bot River (70.3km)

Start/EndN1 Section

Start/EndN1 Section

Start/EndN2 Section

Start/EndN2 Section

Proposed limits oftoll road concession

LEGEND

Road improvementsoutside concession area

DarlingRiebeek-Kasteel

R45

Wolseley

R46 Ceres

Toll PlazaT

T

T

T

N1 Section :Old Oak I/C to Hex River Valley (105.8 km)

Muizen-berg

T

T


% Growth over 5 yrs

T1 – Hugenote Plaza

T2 – R300 47118 9.1T3 – N2 Khayelitsha 70377 6.8T4 – N2 Grabouw 15524 3.9

11545 8.2

T1

T2

T3

T4

84

TSITSIKAMMA TOLL ROAD

• Project Description : Extension of the N2 TsitsikammaToll Road from Elandsbos River to Elands River.

• Province : Eastern Cape• Initial Construction Works: Upgrading of 14 km of road

to standard 13.4m cross section in an environmentally sensitive area. Upgrading of intersections and provision of service road. Incorporation of 14 km of existing upgraded National Road as Toll Road.

• Construction commenced 2007• Tender price: R391 million• Completion date: September 2009

85


% Growth over 5 yrs

T1 – Tsitsikamma Plaza 3346 2.3

T1

86

R30 BETWEEN BLOEMFONTEIN AND KROONSTAD VIA WELKOM

∙ Project Description: Rehabilitation and upgrading of the R30 between Bloemfontein and Kroonstad via Welkom

∙ Province: Free State∙ Estimated Length: 195 kilometers∙ Initial Construction Works: Upgrading of road to standard 12.4 m

cross section with climbing and overtaking lanes where required.Upgrading of intersections/ crossing where required. Pedestriancrossings and public transport lay byes. Rehabilitation/ strengthening of existing roadway to ensure asset preservation.

∙ Estimate Costs: R800 million∙ Project Development Status:

- Toll Feasibility: Completed- Environmental Impact Assessment: Completed- Economic Impact Assessment: Completed- Declaration of Intent completed87

R30 BETWEEN BLOEMFONTEIN AND KROONSTAD VIA WELKOM


% Growth over 5 yrs

T1 – Kroonstad

T2 – VerkeerdevleiPlaza

6566 5.0

T3 – BFN Bypass 11910 3.2

9148 3.7

T1

T2T3

88

N3 MARIANNHILL TOLL ROAD

∙ Project Description: Extension of the N3 Mariannhill Toll Road between Pietermaritzburg and Durban

∙ Province: KwaZulu-Natal∙ Estimated Length: Approximately a 60 kilometer extension of the existing

22 kilometer N3 Mariannhill Toll Road∙ Initial Construction Works: Additional lane per direction from Key Ridge to

Pietermaritzburg and the concrete overlaying of existing lanes. Additional lane per direction from Pinetown to Durban. Lighting of the Durban and Pietermaritzburg Ring Roads

∙ Estimated Costs: R1 200 million (2007 Rand)∙ Project Development Status

- Toll Feasibility: Completed- Environmental Impact Assessment: Commenced- Economic Impact Assessment: Not Commenced- Declaration of Intent: To follow EIA

∙ Way Forward:- Submission of updated feasibility study to Board and Minister for Consideration

89

Position Traffic 2007 % Growth over 5 yrsT1 – Mooi River Plaza

T2 – Lion Park 42506 5.9T3 – Marianhill Plaza 35175 5.3T4 – N2 I/C 54744 2.5

16582 5.1

T1

T2 T3

T4

N3 MARIANNHILL TOLL ROAD

90

N17

Project Description : Upgrading and expansion of the N17 between Springs and Ermelo

Province : Gauteng & MpumalangaApproximate Length : 160 kilometersInitial Construction Works: The existing N17 will be upgraded from a narrow

8m cross section to 12,4m cross section. Climbing/passing lanes will be provided where require. Some vertical and horizontal alignment improvements will also be done. The existing road pavement will be rehabilitated. New sections will be constructed between Leandra and Evander (21km), at Trichardt (3km) and Bethal (2km).

Estimated CostsProject Development Status• Toll Feasibility: Completed• Environmental Impact Assessment: Completed, received RoD• Economic Impact Assessment: Completed• 7 work packages• 2 awarded.Next packages to bid: 3rd quarter 200891

N17

Position Traffic 2007 % Growth over 5 yrsT1 – Dalpark Plaza

T2 – Leandra 5357 3.8T3 – Trichardt 6456 8.8

17500 8.7

T1

T2

T3

92

N2 WILD COAST TOLL HIGHWAY

• Project Description : Proposed Toll Highway PPP Concession between East London and Durban including a new 100 km greenfields section between Port St Johns and Port Edward to shorten the existing N2 by approximately 80 km

• Province : Eastern Cape and Kwazulu-Natal• Estimated Length : Approximately 560 km• Initial Construction Works:

– Upgrading, widening and rehabilitation of the existing N2 between East London (Gonubie Interchange) and Mthatha, the existing R61 between Mthatha and Nwalane (12 km from Port St Johns), new construction of approximately 17 km between Ndwalane and Ntafufu, upgrading of the existing R61 between Ntafufuand Lusikisiki, new greenfiels construction between Lusikisiki and Port Edward (approximately 79 km) and upgrading, widening and rehabilitation of the existing R61 and N2, including the existing South Coast Toll Road, between Port Edward and Durban (Isipingo Interchange).

• Estimated Costs : R 3 200 million (2005 Rand)• Project Development Status

– Environmental Impact Assessment: New EIA in progress after MoDEAT set aside previous RoD of 3 December 2003

– Economic Impact Assessment: Complete– Declaration of Intent: To commence after RoD

• Way forward– Complete new EIA.

93

PROPOSED N2 WILD COAST TOLL HIGHWAYPosition Traffic 2007 % Growth over 5 yrsT1 – East Londen

T2 – Idutywa 5292 8.7T3 – Oribi Plaza 7126 9.3T4 – Winkelspruit 23323 4.4

5259 5.6

T1

T2

T3T4

94

N2 WILD COAST TOLL HIGHWAY

Gauteng Improvement Freeway Project (GFIP)

Gauteng Improvement Freeway Project• Project Description :

Expand capacity, interchange and cross roads improvements, install intelligent transport system, electronic toll collectionsystem

• Province : Gauteng• Estimated Length : Approximately 560 km• Initial Construction Works:

180 km of expansion and upgrading of network including interchanges; install ETC

• Tender Price : R11,1 billion• Project Development Status

– Environmental Impact Assessment: Complete– Economic Impact Assessment: Complete– Declaration of Intent: Complete

• Construction Commenced: June 200895

CONCLUSION

• Investing in roadsFor sustainable economic growthLeverage procurement to transform industryMake communities economically independentCreate public value

• Knowledge based organisationRight professional skillsSupport tertiary educational institutions

• Effective delivery of road infrastructure for public transport and movement of freight

97

SANRAL: Touching Peoples Lives

“Where a road passes,

development follows right on its heels”

98

Department

of Transport

Thank you

99

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