North West Local Government on Municipal Infrastructure Grant
delivery

North West ups municipal delivery

22 January 2007

Mafikeng: The North West provincial government is heading for a new record
on municipal infrastructure expenditure. The province is currently second to
Western Cape in the expenditure of the Municipal Infrastructure Grant (MIG) for
this financial year. It has already spent more than R300 million on various
projects involving water reticulation, sanitation, roads, storm water, solid
water, community lighting and facilities. The total allocation for this year
was R525,57 million. This is equivalent to 57,5% of the total allocation.

Three municipalities, Mafikeng, Ventersdorp and Kgetleng Rivier have already
spent their entire grants for this financial year to the total value of R25,1
million. They are followed by Maquassi Hills which has spent 97% of its R27,5
million. MEC for Developmental Local Government and Housing, Phenye Vilakazi,
has congratulated the three municipalities that have already spent their
grants. He said he was confident that there will be great improvement in the
MIG expenditure come end of the financial year. "It is very impressive to see a
municipality such as Maquassi Hill performing immensely well," said
Vilakazi.

Other municipalities that have already spent more than 70% of their grants
are Madibeng at 84%, Dr Modiri Molema at 79%, Greater Taung at 74%, Ditsobotla
at 72% and Potchefstroom which has spent 70% of its grant. At least 60% of the
municipalities have spent more than 50% of their grants and seem on track to
complete or at least spend most of their grants.

Municipalities that are still struggling to spend their Municipal
Infrastructure Grants include Moretele, Rustenburg, Kagisano, Mamusa,
Bophirima, Ramotshere Moiloa, Tswaing, Naledi, Lekwa-Teemane and Merafong, all
of which have spent less than 50% of their grants.

Many observers have attributed this trend to Vilakazi's new approach of
monitoring municipal expenditure. Towards the end of the last financial year,
Vilakazi advised all the municipalities to start planning their projects as
early as possible and make sure that at the end of each financial year, they
have spent all their budgets. The municipalities seem to have heeded this call,
hence the positive results.

But Vilakazi says it is not time for celebrating yet. He says more effort
will have to be put to assisting the municipalities that are still struggling.
"Although we must congratulate the municipalities that are doing well, we must
not forget to strive towards ensuring that all our municipalities perform well
in all respects," said Vilakazi.

The municipal infrastructure grant is a financial support arrangement that
combines all existing funding programme for municipal infrastructure into a
single consolidated grant. Its vision is to provide communities with at least a
basic level of services by the year 2013 through the provision of grant finance
aimed at covering the capital cost of basic infrastructure for the poor.

Each municipality was allocated R2,57 million and R69,23 million from this
fund, depending on their needs. This programme is focused in improving the
capacity of local government and out of 21 municipalities, 12 have at least
managed to spend 50% of their MIG allocation.

For further information, please contact:
Mandla Mathebula
Departmental Spokesperson
Tel: (018) 387 3813
Cell: 083 282 6133

Issued by: Department of Developmental Local Government and Housing, North
West Provincial Government
22 January 2007

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