transport portfolio committee: briefing on the road maintenance funding plan
DESCRIPTION
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 PresentationTRANSCRIPT
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 Challenges
Progress Strategic interventions Resolutions of the road construction and
maintenance summit Conclusion
BACKGROUND
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)
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)
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%
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
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
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.
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
PROGRESS
RESOLUTION OF THE ROAD CONSTRUCTION AND MAINTENANCE SUMMIT:
•Delivery models•Funding and asset management systems•Capacity development•BEE and women empowerment•Road safety
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)
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
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
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
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
Thank You