transport portfolio committee: briefing on the road maintenance funding plan

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TRANSPORT PORTFOLIO COMMITTEE: BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN 02 November 2010

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TRANSPORT PORTFOLIO COMMITTEE: BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN. 02 November 2010. Presentation Outline. Background SA road network Road maintenance allocations Budget & expenditure for CAPEX and maintenance per province for EPWP EPWP Up Scaling Allocations per Province - PowerPoint PPT Presentation

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Page 1: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

TRANSPORT PORTFOLIO COMMITTEE: BRIEFING ON THE ROAD

MAINTENANCE FUNDING PLAN

02 November 2010

Page 2: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Presentation Outline

Background SA road network Road maintenance allocations Budget & expenditure for CAPEX and maintenance

per province for EPWP EPWP Up Scaling Allocations per Province Challenges

Progress Strategic interventions Resolutions of the road construction and

maintenance summit Conclusion

Page 3: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

BACKGROUND

Page 4: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

South African Road Network

Un-Proclaimed Roads = Public roads not formally maintained by any Authority

Authority Paved Gravel Total

SANRAL 16,170 0 16,170

Provinces - 9 48,176 136,640 184,816

Metros - 9 51,682 14,461 66,143

Municipalities 37,691 302,158 339,849

Total 153,719 453,259 606,978

Un-Proclaimed (Estimate)   140,000 140,000

Estimated Total 153,719 593,259 746,978

(Status Quo of roads)

Page 5: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

SUMMARY OF ROAD NETWORK (Status Quo of roads)

Very Poor (km)

Poor (km)

Fair (km) Good (km)

Very Good (km)

Total km with Data

% Network With Data

SANRAL - Paved 16,170 233 1,199 6,391 7,750 597 16,170 100Provinces - Paved 48,176 3,532 7,200 15,179 16,470 4,706 47,088 97.74Metros - Paved 51,682 421 1,256 6,707 20,104 12,250 40,737 78.82Municipalities - Paved 11,076 121 272 1,579 5,271 3,623 10,866 98.10Provinces - Gravel 136,640 19,327 33,219 35,344 13,863 1,981 103,733 75.92Metros - Gravel 14,461 2 7 55 1,722 3 1,789 12.37Municipalities - Gravel 2,051 123 485 849 557 117 2,131 103.89

Totals km 280,256 23,759 43,639 66,103 65,737 23,276 222,514Totals % 10.68 19.61 29.71 29.54 10.46 100

Authority Total Network Visual Condition Data (km)2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SANRAL - Paved

Provinces - Paved

Metros - Paved

Municipalities - Paved

Provinces - Gravel

Metros - Gravel

Municipalities - Gravel

Au

tho

rity

Percentage of Network

Very Poor (km)

Poor (km)

Fair (km)

Good (km)

Very Good (km)

Page 6: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Road maintenance allocations…..2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

R million

Outcome Pre-audited outcome

Medium term estimates

ECFSGPKZNLPMPUNCNWWC

42419236365632119780

253573

56634717182132824683

267657

668163246972328443113210656

813180777

1 855387541116253621

749296668

1516377432142288558

704289876

1 706424520142297744

723304930

1 809490546166331791

Total 3 058 3 485 3799 5 543 5 026 5 702 6 089

Maintenance as a percentage of the total provincial road and transport expenditure

ECFSGPKZNLPMPUNCNWWC

18.5%22.0%22.8%23.7%13.7%15.5%21.8%13.5%32.3%

22.5%24.1%9.9%

27.5%13.1%19.3%20.2%12.8%29.1%

22.6%11.3%10.2%27.0%11.6%24.3%19.1%10.4%28.0%

21.5%9.2%

24.4%32.2%12.8%24.9%15.8%11.0%22.5%

18.6%15.2%13.8%24.6%10.2%16.5%17.9%11.3%15.8%

17.9%15.6%24.3%29.8%10.7%20.1%16.4%10.7%25.1%

17.5%12.7%23.8%29.3%11.5%19.4%17.7%11.1%25.9%

Total 20.2% 20.3% 19.0% 21.6% 16.7% 20.2% 19.9%

Page 7: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

BUDGET & EXPENDITURE FOR CAPEX AND MAINTENANCE PER PROVINCE FOR EPWP 08/09

Province Total budget access roads Rands (’000)

Capex Budget Maintenance Budget

Target Work Opportunities

Achieved Work Opportunities

Total spent

Rands (’000) Rands (’000) Rands (’000)

EC 330,870 195,088 135,782 6563 23173 282,658FS 288,761 284,261 4,500 3296 1828 206,329GP 347,127 347,127 0 4980 3428 238,993

KZN 496,002 215,204 280,798 8229 44185 505,059LP 108,700 93,100 15,600 4444 2837 80,601MP 57,049 30,292 26,757 4681 2964 45,541NC 265,319 256,259 9,060 3093 2022 230,112NW 7,850 0 7,850 1030 858 3,899WC 378,154 122,306 255,848 2557 5370 321,799

Total 2,279,836 1,543,639(67%)

736,196(33%)

38,872 86,665 1,914,997

Page 8: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

EPWP Up Scaling Allocations per Province over the 2010 MTEF (DORA)

Province 2010/11

Rands (‘000)

2011/12

Rands (‘000)

2012/13

Rands (‘000)

Total per province

over 2010 MTEF

EC 392,707 487,829 579,506 1,460,042

FS 187,422 232,820 276,574 696,816

GP 237,828 295,436 350,957 884,221

KZN 471,881 586,181 696,341 1,754,403

LP 294,744 366,137 434,945 1,095,826

MPU 228,833 284,262 337,683 850,778

NC 152,708 189,698 225,348 567,754

NW 121,404 150,811 179,153 451,368

WC 148,051 183,912 218,474 550,437

Total 2,235,578 2,777,086 3,298,980 8,311,644

Page 9: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Challenges

DoT’s mandate is limited to working on National Roads assets

DoT as the lead Department is not sufficiently resourced Most existing roads have exceeded their design life Construction and upgrading of rural access roads is not fast

enough. The critical requirement is a decision support system

(pavement asset management system) at local and municipal level

Input into the pavement asset management system has to be ongoing

The overall level of road funding is lagging. This implies that backlogs are created rather than addressed.

Page 10: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

National Infrastructure Maintenance Strategy (NIMS) Headed by National Treasury (CIDB). The Following Challenges being addressed by

NIMS Asset Management Practices Norms and Standards Budget constraints and backlog Skills Capacity Institutional arrangements

Construction and Maintenance Summit (May 2010) Fiscal and non fiscal funding options Asset preservation – Guidelines and best practice (RISFSA) Efficiency Outcomes /Performance based Development of Women Enterprises in Transport (SANWIT) Road Safety

Minister announcement re: dedicated roads funding from fuel levy

Strategic Interventions

Page 11: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

PROGRESS

Page 12: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

RESOLUTION OF THE ROAD CONSTRUCTION AND MAINTENANCE SUMMIT:

•Delivery models•Funding and asset management systems•Capacity development•BEE and women empowerment•Road safety

Page 13: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Construction and maintenance summit resolutions and progress….

Delivery model resolutions:

Up scaling of Zibambele across the country

Up scaling funds should be directed to access roads

Creations of more jobs to attract EPWP incentive funding

Provide infrastructure cost effectively

Progress Department is developing a

flagship national programme for the creation of jobs and maintenance of infrastructure. (SSP)

Page 14: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Possible benefits from a National Rollout of Zibambele

Potential Targets RSA KZN - DOT

Existing Kilometers of roads 750,000 27,998

Number of contractors 875,000 40,000

Potential kilometers of roads 438,000 28,000

Person days of employment 84,000,000 3,800,000

Full Time Equivalents 366,000 16,700

Budget Estimates R4,945 Billion R225,6 million

Page 15: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Construction and maintenance summit resolutions and progress….

Sustainable funding:

Dedicated funding from fuel levy

Budget increases and capacity need to be phased in.

Need to ensure allocated budgets are spent on roads

Progress

Restructuring of Infrastructure Grant to Provinces process now underway providing scope for funding and budgeting process reforms to be considered including measures to address efficiency of spending by authorities

Discussions with National Treasury re: DOT responsible for the Infrastructure Grant to Provinces which should enable establishment of a fully fledged national programme, maximising decent job creation

Engagement with National Treasury: developing a framework for DOT to take full responsibility for Infrastructure Grants for Provinces in order to address the resolutions

Page 16: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Construction and maintenance summit resolutions and progress….

Asset management system resolution

Development of an asset management framework

Need to ensure that portion of budget is allocated for Preventative Maintenance

Need to ensure that portion (at least 60%) of maintenance budgets are allocated for preventative maintenance (routine and periodic)

Progress/process to date

MOU with DBSA to deal with :

- Asset management system

- Funding model

- Sector skills

- Review of roll-out of ITPN’s Implementation of NIMS -

Mechanism for enforcing through MINMEC and COTO to be developed

Page 17: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Present allocations should be streamlined to achieve effectiveness

DoT to streamline a flagship programme: Key regional economic routes / NATMAP Rural transport development Labour intensive roll-out Road safety

DoT to develop implementation proposals with provinces to seek funding

DoT to refocus from policy development to implementation coordination

Conclusion

Page 18: TRANSPORT PORTFOLIO COMMITTEE:  BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN

Thank You