Roads and Works, Ignatius Jacobs
12 June 2007
Comrade Speaker and Deputy Speaker
Comrade Premier and MECs
Honourable MPLs
Representatives from Local Government
Heads of departments, government officials and leaders of our parastatals and
agencies
Leaders from the public transport industry and from commuter
organisations
Leaders from the construction industry
Business and community leaders
Distinguished guests
The people of Gauteng
Introduction
Honourable MPLS and the people of Gauteng, on 8 January every year, the
President of the African National Congress (ANC) which is the ruling party in
government, including in the Gauteng Provincial Government, publicly releases
the political party's policy statement for the year. Each year the statement
reflects a main political theme against which all priorities and imperatives
are driven. This year's statement describes 2007 as "The year to intensify the
struggle against poverty, as we advance in unity towards 2012 - phambile!" I
want to assure you at the very onset of this speech, that the Budget allocated
to my department for the 2007/08 Financial Year will indeed be utilised to
"intensify the struggle against poverty".
Honourable Premier, when you delivered your State of the province Address on
the 19 February 2007, you spoke extensively about the successes of Gauteng
Provincial Government in their third term of democratic governance. You said
that these successes show that a "better Gauteng is in the making". I also want
to assure you that our utilisation of the 2007/08 Budget allocated to us will
tangibly reflect a "better Gauteng in the making".
Honourable Members of the Executive Council, like you, I am duty-bound by
virtue of my party political affiliation and allegiance and my general
political commitment to the public when taking up office, to work tirelessly to
create a better life for all - regardless of race, colour, creed, religion,
gender, disability, etc. And as we all know, this "Better Life for All" can
only be created through real, tangible shared economic growth and development.
We also know that shared economic growth and development can only occur of we
effectively bridge the gap between the first and second economies, reduce
unemployment and create long-term jobs and alleviate poverty.
President Thabo Mbeki reminded us of this fact in his State of the Nation
Address delivered on 9 February 2007 to the National Assembly, when he quoted
part of what we said at our Freedom Day celebrations in 2004; namely:
* None of the great social problems we have to solve is capable of
resolution outside the context of the creation of jobs and alleviation and
eradication of poverty.
* We pledge to transform South Africa into a democratic, peaceful, non-racial,
non-sexist and prosperous country, committed to the noble vision of human
solidarity.
* The work to create that South Africa has begun, that work will continue
during our second decade of freedom.
* The struggle to eradicate poverty has been and will continue to be a central
part of the national effort to build the new South Africa.
The People of Gauteng, in delivering this 2007/08 Budget Speech to you, I am
committing to continue the work that we have started towards transforming this
province and South Africa as whole. Thus you will see that job creation and
alleviation of poverty is a central part of all the policies and programmes of
my department. I am also committing to delivering to you tangible and realistic
results that will allow you to experience a democratic, peaceful, non-racial,
non-sexist and prosperous Gauteng in your daily lives.
Today I will explain to you how my department will work towards pushing back
the frontiers of poverty and ensuring shared economic growth and development
and today, I am committing myself and my department to further accelerate
dealing with these challenges. You may recall that the Premier, in his State of
Province Address this year, launched a mid-term review of the provincial
government's successes in this 3rd term of governance. This report also
highlighted the challenges that we in Gauteng Provincial Government (GPG) have
to address to successfully deliver on our five (5) political priorities for
this term of governance.
I want to use this opportunity to reaffirm the achievements of the Gauteng
Department of Public Transport, Roads and Works, over the past two and a half
years. We have, amongst other successes, established Project Management
Resource Groups which has assisted the department to fast-track and focus its
implementation of all CAPEX projects. We have also introduced Master Planning
of all CAPEX Projects which has ensured integrated infrastructure development.
We have developed and piloted a wide range of transport related strategies,
policies and programmes which has laid the foundation for the provision of an
accessible, affordable, reliable, integrated and environmentally sustainable
public transport system.
We have also improved implementation of Extended Public Works Programme
(EPWP) projects which has resulted in job creation and skills development
amongst marginalised sectors of our society. And we have practiced accountable,
transparent, people-centered and people driven governance through our
consistent and regular stakeholder engagements such as Imbizos, the commuter
indaba, infrastructure summit, MEC's breakfasts, MEC outreach programme, women
in construction programme and the formation of the Gauteng Commuter
Organisation. These successes, which dovetail with Gauteng Provincial
Government's priorities as well as the political imperatives of ANC, clearly
reflect the contribution of my Department:
* to liberating people from poverty and all its manifestation including any
remaining elements of colonialism and apartheid
* to acting in pursuit of the interests of the people and lifting the economy
to a higher growth rate.
Overview of Gauteng Department of Public Transport, Roads and Works (GDPTRW)
budget for 2007/08
Members of this Legislature, you have entrusted my department with a budget
allocation of R6,460 900 billion for the 2007/08 financial year - a noteworthy
increase from last year's allocation of R6,2 billion. Of the total 2007/08
allocation, R4,529 411 billion is earmarked for the continued implementation of
the Gautrain project. The remaining R1,931 489 billion will be utilised for our
programmes in respect of Transport, Public Works which includes Expanded Public
Works Programme (EPWP), Financial Management and Corporate Support
Services.
Our budget allocation to the Transport Branch of the department, inclusive
of the R4,5 billion for Gautrain, amounts to just over R5,5 billion. The
Transport Branch is tasked with ensuring the provision of transport
infrastructure and transport systems as part of integrated social and economic
development planning that is designed to create a better life for all. Our
Public Works Branch is tasked with ensuring that:
* social infrastructure developed with government's financial investment in
the form of capital works is constructed, maintained and upgraded towards
sustaining its quality and long-term utilisation as well as creating a better
life for all
* government's property assets are well managed, maintained and utilised in a
way that increases provincial revenue
* the Expanded Public Works Programme (EPWP) is developed and implemented
across the province, in a manner that creates jobs, develops skills and
provides much-needed infrastructure.
This Branch receives a budget allocation of R634,302 million. R227,659
million of our budget is allocated to the Administration Programme area which
essentially includes financial management and corporate support services.
However, it is important to remember that the budget of my department cannot be
looked at in the context of the funds allocated for Vote 9 only, but in the
context of the wider services that it provides to its client department and
other agencies of government. In our role as the implementing agent of all of
GPG's CAPEX programmes, the Department of Public Transport, Roads and Works
actually manages expenditure and delivery of services of a budget totalling of
R12,4 billion.
The R12,4 billion comprises of our department's budget allocation in terms
of Vote 9 which is R6,5 billion, client department's budgets for CAPEX projects
that amount to R1,9 billion, implementation of infrastructure related special
projects such as Blue IQ, Dinokeng and Cradle of Humankind that amounts to R209
million, administration of license fees and related expenditure transactions to
the value of R2,2 billion, administration of trading accounts namely,
Impophoma, Government Motor Transport, Emoyeni and Urban Transport Fund with
income and expenditure transactions to the value of R550 million and
Administration of bus subsidies totalling R1 billion.
A better Gauteng in the making - increasing transport and mobility
Comrade Speaker, the key programme areas that our Transport Branch will
focus on in this financial year are Gautrain Transport Infrastructure
Development for 2010 and the provision of an integrated inter-modal public
transport system including for 2010.
Gautrain
The Gautrain Management Agency (GMA) has been established by an Act of the
Gauteng Provincial Legislature (GPL). The GMA is primarily tasked with
day-to-day implementation of the Gautrain project. The department will monitor
and evaluate delivery and project implementation against milestones, compliance
to contractual obligations, financial disbursements and expenditure (invoices).
The department will keep abreast of technical delivery by monitoring
construction milestones, installations and commissioning, application of
technical norms and standards and status of actual/planned major technical
elements accounts against milestones. In terms of socio-economic impact, the
department will monitor delivery of Broad-Based Black Economic Empowerment
(BBBEE), job creation and other socio-economic development targets and overall
risks.
The Department will also advise the GMA on alignment of the province's
public transport plans and infrastructure development in respect of all modes,
and that can serve as feeders to and from Gautrain stations. Gautrain will be
part of the integrated ticketing system, the inter-modal facilities and
stations and the centralised passenger information that are important
components of a public transport system. The envisaged efficiency and speed of
Gautrain, in conjunction with the feeder transport system will greatly
contribute to reducing the time and costs of travelling for many of Gauteng's
residents that use the train as part of an inter-modal system to get them to
places of work and/or recreation and social life.
The People of Gauteng
I have consistently assured you that Gautrain will result in increased
socio-economic growth in the province. This growth will be seen in the direct
and downstream jobs created from Gautrain construction and resulting mixed-used
development in the environs of Gautrain. It is with great pride that I inform
you that construction of Gautrain has, thus far, brought back a total of 39
South Africans, 37 of which are construction professionals. Of the 37
Construction professionals, 20 are historically disadvantaged individuals (HDI
- classified as african, coloured, Indian) and this group includes white
females. They have been recruited through various initiatives like Woza Ikhaya
and Careers for Africa. The 37 construction professionals have returned from
the United Kindom (UK). We have brought back civil engineers, quality surveyors
and construction foremen. All with underground rail experience.
Continued implementation of Gautrain in the 2007/08 financial year will
contribute to the employment of at least 5 445 local people in direct jobs. A
direct job is defined as a person employed by Bombela and/or its
sub-contractors for a period of a year. Furthermore, Gautrain implementation
and expenditure this year will contribute about R1,1 billion towards
Broad-based black economic empowerment (BBBEE) and small, medium and micro
enterprise (SMME) development. At least R600 million of Gautrain's expenditure
in 2007/08 will be directed at procurement from and subcontracting to BBBEE;
R70 million to procurement from and subcontracting SMMEs and approximately R450
million to procurement of South African materials, plant and equipment.
These figures exclude the jobs that will be created, the SMMEs that will be
developed and the extent to which BBBEE will be promoted through the upmarket
hotel, retail and office space mixed development that is already under
construction in Rosebank. This R623 million project funded by Old Mutual has
been made possible by the demolition of five buildings and excavation for
Gautrain. This project is part of a phased precinct strategy by Old Mutual
aimed at taking advantage of the opportunities presented by having a Gautrain
station as part of their offering.
In Sandton, approximately 150 000 square metres of new office, retail and
hotel developments is scheduled for completion in the Sandton Central Business
District (CBD) over the next two years. Another 50 000 square metres of space
in existing commercial buildings is in the process of being refurbished. The
expected influx of additional office workers to the Sandton CBD will no doubt
create more demand for both rental and owner-occupied residential
accommodation. A significant increase in high-density residential developments
in Sandton over the next decade is expected.
Finally, the Gautrain Kids' Station, the website dedicated to informing
children about public transport and Gautrain has received international
recognition. It has been judged by the International Association of Public
Transport's (UITP) Youth Project Awards as a project which, on a global scale,
best improves the image of public transport amongst the youth. The UITP rewards
creativity and innovation in public transport initiatives targeted at young
people, including new processes to involve and engage them. A jury composed of
relevant experts from all over the world made the selections during February
2007.
Honourable Premier, Gautrain is not even in operation yet and it is already
making South Africa proud by reaping in international awards. Members of the
Legislature, Transport Infrastructure Development for 2010, the department's
budget for transport infrastructure continues to reflect a 70:30 ratio for
construction of new road infrastructure over maintenance, thus covering the
transport infrastructure needs in respect of the 2010 World Cup. The actual
budget allocation for the 2007/08 financial year for this key programme area
amounts to R877 090 million. In line with GPG's decision that all
infrastructure development for 2010 must lead to long-term sustainable
development of the province, GDPTRW will include the needs of 2010 in all its
other public transport initiatives.
In terms of the FIFA 2010 Soccer World Cup, the department is responsible
for the provision of transport infrastructure to and from stadiums; transport
infrastructure at match stadia and practice venue precincts, provision of
public transport services for spectators, traffic demand management, etc.
Infrastructure development of match stadia and practice venue precincts has
begun and will continue to be implemented in the 2007/08 financial year. These
projects include upgrading of a taxi rank in Mogale City and integrating the
rank with the economic hub; upgrading of Mogale City and Shamdor Railway
Stations, integration/redevelopment of railway line between Magaliesberg,
Hartebeespoort and Pretoria and development of terminals at these, upgrade of
Lanseria Road to Mogale City.
The department has also drafted a 2010 Transport Plan, based on the
modelling of transport demands and transport factors in respect of the World
Cup event. The Plan identifies the need for the development of a specific 2010
operating licensing strategy that will include public transport vehicle
positioning and monitoring. Other public transport measures such as integrated
ticketing, passenger information systems and call centres; redeveloping
facilities at Park
Station, Springs, Mabopane, Kliptown, Stretford (Orange Farm), Crown Mine and
New Canada Stations into inter-modal facilities and training law enforcement
officers on public transport issues, are key initiatives contained in the
Plan.
In terms of rail access, the plan proposes accelerated investment in the
2010 defined South African Rail Commuter Corporation (SARCC)/Metrorail
corridors; revitalisation of identified Shosholoza lines and improved rail and
road access to and from airports. Immediate access to and from match stadia and
practice venues will be facilitated through implementation of park-ride sites
close to the identified World Cup Stadia; upgrading of transport infrastructure
around main practice venues; and construction of the necessary transport
infrastructure at the Nasrec, Ellis Park and Loftus precincts. The proposed
improved road signage and road marking navigational system and the development
of new tourism signs for 2010 will also assist with management of traffic and
travel arrangements.
This month, the department will finalise and begin implementation of the
province's Strategic Public Transport Network (SPTN). This is an important
milestone in respect of 2010 because implementation of most the 2010 transport
specific activities that I have already mentioned, are dependent on the SPTN in
terms of integrated development and spatial planning.
Comrade Premier, provision of an integrated inter-modal public transport
system including for 2010. In the past two and a half years, the department has
made noteworthy progress towards the provision of an integrated inter-modal,
accessible and affordable transport system. The taxi recapitalisation project
has been implemented, taxi permits have been processed and partnerships have
been built with taxi associations to support them to operate more
professionally. Transformation of the bus sector and bus subsidy system has
begun. The department has continued to assess and approve the Integrated
Transport Plans (ITPs) of local government. The Germiston Station
Accessibility
Project has been completed. Public Transport Month which includes
implementation of the national initiative called "Car Free Day" was launched. A
Gauteng Commuter Organisation (GCO) was established and the process of creating
transport authorities in each metropolitan and district municipality has
begun.
The Department will spend R128 610 million in 2007/08 towards strengthening
and consolidating these initiatives. More importantly the Department will begin
to pilot and implement a number of its new planned initiatives such as an
integrated ticketing system; travel demand management and provision of
accessible passenger information. It is envisaged that the integrated
inter-modal public transport system of the province will be the backbone of the
transport services provided during the 2010 World Cup. Thus, the transport
legacy that the Department will develop as part of 2010 will in fact be the
long-term public transport system of the province. Undoubtedly, GPG's
investment into this strategic area will provide multiple benefits of
supporting economic growth activities and access to these, increasing access to
social and recreational activities, promoting Gauteng as a Global City Region
and positioning the province to bid for and host other major international
events.
Comrade Premier and Members of the Legislature, in presenting my 2006/07
Budget Speech to this very House last year, I said and now quote again "The key
challenge we continue to face regarding transport is developing transport
infrastructure and implementing a transport system that will be responsive to
and support the envisaged economic growth of the province, as well as meet the
needs of the vast majority of our people to access, by means of transport, the
social and economic opportunities that exist within Gauteng since the advent of
democracy in 1994. We are wary of developing infrastructure and systems that
address each of these needs separately although some may argue that it would be
an easier and quicker option. Our response to this is a resounding "no" because
we remain committed to the fundamental principle of integrated, holistic,
sustainable socio-economic development and the understanding that transport
planning and development cannot be divorced from overall spatial and
socio-economic development and planning. We also say "no" because we are
committed to ensuring that we use our limited financial resources for maximum
benefit and firmly believe that the separate approach will inevitably result in
a duplication of costs and other resources"
I quote further form the same speech "From 2004 to date, we have put in
place all the necessary strategies and frameworks to turn around transport
infrastructure planning and provision of services so that it tangibly begins to
contribute to shared economic growth and development in Gauteng. This we have
done within the existing constitutional arrangement that divides certain
transport powers and functions between all three spheres of government. Our
focus from this financial year onwards will be on implementation on matters
over which we have direct powers and functions and increased facilitation and
co-operation with other spheres of government over matters that fall within
their jurisdiction. I also said in the same speech that "the current public
transport system in the province is rail and road based and Gautrain is one of
our initiatives to improve its rail-based passenger system and services as part
of a broader inter-modal public transport system"
Comrade Premier, last week on 8 June you made a statement to the Legislature
on the Proposed Monorail Project. I wish to reiterate your comments that the
proposed Monorail is part of part of the province's economic growth strategy in
that it is a private sector investment that will result in growth and job
creation in key economic sectors. As you indicated, the Monorail investment is
in line with our commitment to investing in strategic economic infrastructure
which can improve our economic performance and stimulate further private sector
investment.
Members of the Legislature, it is in this context that my department engaged
Malaysian investors who had offered to invest R12 billion into the development
of a Monorail from Soweto to Johannesburg. We take account of the concerns that
the announcement of the Project raised and have thus agreed with the National
Department of Transport to put on hold the Monorail Project until we have been
provided with the necessary approvals by the National Department. In the next
few months we will be ensuring that the business case we present to the
national department clearly explains Monorail as part of the strategy to
provide an integrated public transport system, and its location as part of the
rail system in particular. We will undertake the necessary consultations in the
preparation of this business case.
In addition to 2010, the department will prioritise road construction
activities that increase accessibility and mobility from previously
disadvantaged areas and revitalise existing roads to accommodate priority lanes
for public transport. The actual construction of roads is done in partnership
with developers skilled in this area of work. In this financial year, the
department plans to increase the number of partnerships it establishes for road
construction. These partnerships will contribute to SMME development and
increase the pace of delivery and quality of construction. Some of the projects
that we will implement in this financial year are:
* doubling the existing road between Fourways and Diepsloot
* completing the link of Dobsonville Road between K15 and Main Reef Road
* construction of a dual carriageway between Protea Glen and Leratong
* construction of the Pinehaven interchange
* construction of K29 between Cosmo City and the N14, as well as the link
from the N14 to the access road for Lanseria Airport (also needed for
2010)
* continue with the upgrading of gravel roads within the 20 identified
townships as part of the scaling up of EPWP implementation.
This year, we will also investigate availability and use of alternative road
building materials, begin implementation of the province's Freeway Improvement
Scheme and Better Roads Plan and finalise our Freight Logistics Strategy.
Members of the Provincial Legislature, our province continues to be
confronted by the challenge of diminishing freeway system capacity, which is
threatening rapid and free mobility between business centres themselves,
business centres and residential areas and to tourist destinations. The
Provincial Freeway Improvement Scheme will address this challenge as well as
those related to Insufficient road space relative to transport demand,
increasing usage of and reliance on private vehicles, marginalisation and
under-utilisation of public transport, systematic under-investment in the rail
system; and insufficient public funds to increase road space and improve
existing road space management.
The Provincial Freeway Improvement Scheme also promotes Gauteng as a Global
City Region (GCR). Transport infrastructure provision is a key success element
of a GCR. Some of the current initiatives of the Department already pave the
way for Gauteng as a GCR, namely: consolidation of inter-city movement along
the North-South corridor through the Gautrain, linking of the eastern and
western parts of Gauteng to the central activity areas, the definition of
Strategic Public Transport Networks to facilitate home to node and node to node
linkages, linking historically marginalised townships and settlements in the
urban periphery with economic centres and discouraging urban sprawl through the
densification of the urban form. The planned launch of the Gauteng Transport
Authority later this year represents another important measure that promotes
the province as a GCR.
The Better Roads Plan complements the Freeway Improvement Scheme in that the
primary thrust of the Roads Plan is the development of a network system that
will expand existing roads and freeways and build new roads towards
facilitating economic node connections and public transport corridors. The
Better Roads Plan is aligned to the national Department of Transport's "Road
Infrastructure Strategic Framework for South Africa" (RIFSA) which was
developed in July 2005; and to the Gauteng Transport Inter-governmental Charter
(GTIC) which sets out province wide objectives and outputs for transport
infrastructure and identifies the roles and responsibilities of each sphere of
government in this regard. The GTIC was developed in December 2005. We will
also implement other public transport friendly measures and address outstanding
links in the road network especially in respect of freight congestion and
hazardous traffic intersections.
This will, together with South African National Roads Agency Ltd (SANRAL),
see a further injection of 20 billion into our Freeway Improvement Plan. There
is no doubt in my mind, that our provincial Freeway Improvement Plan will
contribute to the growth of the economy, reduce congestion in our road,
encourage rider-sharing and create High Occupancy Vehicle (HOV) lanes. The
process leading towards implementation of the Plan includes engaging all
relevant stakeholders such as municipalities and SANRAL to explore
institutional modelling and financial modelling.
The People of Gauteng, by the end of 2007/08, we would have made significant
progress in implementing bus, taxi and rail operational integration through the
identification of routes compatibility across all the modes, the scheduling of
compatibility routes across modes; establishing fares systems mechanisms,
implementing passenger information systems and finalising technical
specifications for integrated ticketing system. Our plans for transformation of
the bus sector includes integrating large scale operators, securing stakeholder
buy-in, negotiating subsidy distribution, developing and implementing a new
model for contracting with bus operators and developing and implementing a
service quality monitoring framework.
On 31 March 2007, I launched the next stage of the Taxi Recapitalisation
Project. This phase of taxi recap involves finalising conversion to operating
licenses; the scrapping process, introducing the new taxi vehicles and securing
stakeholder buy-in. At the time of the launch, over 2000 operators had already
received their Operating licenses and no less than 50 Old Taxi Vehicle's were
ready for scrapping with immediate effect. In addition more than 50 000 had
applied to have their radius based permits converted into route based operating
licenses (OLs) - this figure represent 99,99% of Gauteng based operators and
40% of the total national picture. Fifty percent (50%) of these applications,
i.e. 25 000 are valid and active permits. We are currently processing 2 800
applications a week.
We will pilot the integrated ticketing system, identify areas for
development as rank facilities, park and ride facilities; identify areas that
require safety and security measures e.g. sheltered bus-stops; continue
implementation of public transport month and car free day and continue to
support the Gauteng Commuter Organisation. Worldwide, efficient and effective
transport management from public transport, to use of private vehicles to
freight and logistics is made possible by the use of Intelligent Transport
Systems (ITS) as it is commonly known. For example, ITS enables us to monitor
the road network to identify incidents, effectively manage them and
pro-actively inform the public of these events to alter their trip planning.
ITS also makes it possible to redirect traffic to other routes by means of
Variable Message Signs, Travel Time Estimation, etc.
I am proud to announce that we successfully piloted the use of ITS during
the Car Free Month in the province. Based on the success of this Pilot, we
will, in this financial year, implement I3S at the R24 and R21 road reserves,
driver learner testing solutions at the Roodepoort Driver Learner Training
Centres (DLTC), Driver Learner 24 hour solution at Nasrec and establish a
central control room at the Loveday VIP Garage. The implementation process
includes installation of cameras and variable messaging boards along R24 and
R21 and installation of traffic count, speed control and character recognition
software in all cameras.
We are utilising ITS to resolve the driver license training crisis (bookings
and testings) by implementing intelligent alternatives to the testing and
booking systems. We are also implementing an ITS based driver testing pilot at
Roodepoort/Florida DLTC, implementation of new number plates framework and
systems and automating all testing stations for vehicles and drivers. The
department is in the process of formalising the establishment of the Urban
Transport Fund (UTF) as an implementing agent, to manage implementation of the
province's ITS in its totality. Through the UTF, we will also establish new
DLTCs in the 20 identified townships. The plan in respect of DLTCs is that they
will also operate as Client Service Centres that will provide services until
21h00 at night and also operate on Saturdays and Sundays.
The new series of vehicle number plates will be ready for implementation by
August 2007. Consultations with key stakeholders and users will begin next
month and run for six months. Full-scale implementation is scheduled for the
1st of January 2008. The new number plate series is linked to the provincial
crime reduction strategy, in that the series has security mechanisms on the
number plates that link each vehicle to its owner, and that there will be
accreditation of all number plate manufacturers and distributors. We estimate
that road construction activities in 2007/08 will lead to the creation of 14
146 jobs, of which 4 244 will go to women, 2 122 to youth and 283 to people
with disabilities and that road maintenance activities will result in 2043
jobs, of which 613 will go to women, 307 to youth and 41 to people with
disabilities.
Members of the Executive Council
A better Gauteng in the making - increased infrastructure development
Infrastructure development for 2010 will increase in this financial year. I
have already mentioned the transport related infrastructure that we will begin
developing. We will begin with the second phase of upgrading of the Sinaba and
HM Pitje practice venues, and the first phase of upgrading the George Thabe
stadium. In addition we will complete at least 68 other infrastructure
development projects across the sectors of health, social development,
agriculture and environment, sports, recreation, arts and culture and public
works. These projects include a community heath clinic in Phamolong
(Johannesburg) and a clinic in Hillbrow (Johannesburg), both of which will be
handed over to each respective department on completion.
Three (3) of the 21 health infrastructure development projects in the City
of Tshwane are community health clinics; namely the Bophelong Clinic in
Atteridgeville, the Boikhutsong Clinic in Soshanguve and the Eersterus Clinic.
The Eersterus clinic will be handed over to the health department on
completion. The upgrade of the Pretoria Academic Hospital will continue as will
the alterations being done to the Soshanguve Hospital. Construction of anew
clinic in Orange Farm (Sedibeng), and a new social development care facility in
Johannesburg will begin in this financial year. All in all, construction of an
additional 20 infrastructure development projects will begin in 2007/08.
We will continue, in this financial year, to improve the construction and
management of CAPEX Projects in terms of quality and time; transforming the
construction industries to be more representative and with promoting BB BEE. We
will also conduct condition based assessments to assist with planning and
budgeting in a more structured and focused way and continue utilising the
expertise of our Project Management Resource Groups (PMRGs).A key challenge
that the Department will begin to address in this financial year, in terms of
CAPEX and EPWP, is establishing the necessary systems and processes to ensure
integrated and holistic infrastructure development planning at an operational
level. These systems and processes will begin to enforce integrated,
people-centred, people-driven and long-term sustainable development at an
operational level and thereby fulfil the policy and strategic position in this
regard.
We estimate that our contribution to job creation through implementation of
CAPEX projects will be similar to that of the current financial year. From
April 2006 to December 2006, CAPEX project implementation contributed to the
creation of approximately 10 000 jobs. Of these, 1 571 jobs went to women, 3
181 to youth and 222 to people with disabilities.
The People of Gauteng, my department and I remain committed to ensuring that
implementation of the Expanded Public Works Programme (EPWP) in the province
results in the delivery of much-needed infrastructure at the same time as
creating job opportunities, skills development, responding to the social needs
of communities, building sustainable communities, promoting sustainable
livelihoods and facilitating social cohesion. In this financial year, we will
implement the following measures to improve implementation of all our EPWP
projects:
* strengthen the structure of the Directorate responsible for EPWP
* establish a Gauteng EPWP Fund that already has commitments from the private
sector to contribute to the Fund
* establish processes to identify and implement additional community based EPWP
projects in conjunction with local government role-players
* establish and launch a provincial EPWP multi-sectoral network comprising of
public sector, private sector and civil society role-players.
The establishment of the Fund and Network in particular entrench the
principles of volunteerism; "a people's contract to create work and fight
poverty", increasing participation of our people in the struggle against
poverty and all sectors of society working in co-operation towards a common
goal. The EPWP Fund will work in close collaboration with the Gauteng Economic
Propeller (GEP) which is the SMME development agency of the province. The EPWP
Unit in the Department will also begin to implement the national government
proposal entitled "scaling up the Expanded Public Works Programme - roads, jobs
and skills development". The Proposal identifies the following areas and
mechanisms that can be implemented to increase the scale and impact of
EPWP:
* increasing the size of labour intensive, roads-related projects and
programmes
* national government to increase funding to provinces. provinces to submit
proposals on how additional funding would be used. Municipalities to submit
proposals to province
* generally introducing more large scale projects and programmes with a minimum
value of R30 million in terms of capital expenditure programmes
* increasing EPWP in the maintenance of infrastructure, especially of roads
and
* through the social responsibility funds of the private sector
In this financial year, unemployed participants in EPWP will be provided
with additional accredited and non-accredited training during the road,
construction, gravelling and re-surfacing projects in the 20 identified
townships. Furthermore, we estimate that we will create approximately 20 000
jobs through our EPWP projects in 2007/08. This estimation is based on the
creation of 30 to 35 jobs in each EPWP project and approximately 600 projects
by all GPG departments, being implemented in this financial year.
Of the projected 20 000 jobs created through EPWP, the Department hopes to
meet the following targets in terms of job creation for vulnerable groups: 40%
to women, 30% to youth and 2% to people with disabilities. As we celebrate,
during youth month the role of young people in the struggle against apartheid,
we also celebrate their role and continued contribution to fight poverty and
unemployment, and the construction of a "better life for all". Notwithstanding
what has been done until now, the time has arrived to take youth development to
a higher level of co-ordination and implementation. The need for a
developmental youth revolution cannot be postponed; it is an idea whose time
has arrived. President Mbeki announced in the State of the Nation address in
February this year, the planned participation of 10 000 within the Built
Environment through the Expanded Public Works Programme. This can be translated
into 5 000 youth involved within the national Department of Public Works, and a
further 5 000 within all the provinces. This means that Gauteng's quota is 500
youth.
In Gauteng, my department is tasked with implementation of this national
initiative. It is an important initiative that creates an opportunity to
provide additional measures of vocational, or on the job skills training
programmes for youth that are not enrolled in school. We will target unemployed
youth, aged between 18-35, who have an interest in a built environment artisan
career, reside close to our project locations and meets our Grade 10/Standard 8
entry requirements for training. In addition unemployed built environment
graduates and learners with qualification requirements (university,
technikons,further education and training colleges) will also be considered.
However it should be noted that the number of youths that will participate in
this programme, will be in accordance and in line with the budget allocation
for each of the projects. All programmes will be a integrated model that
harness the potential of youth to become active citizens that contribute to
social development as they gain skills within each of the areas of activities
that they were trained in
We will engage a minimum of 500 youth, in the 2007/08 financial year for the
programme. These youth will be trained as carpenters, plumbers, bricklayers,
tilers, site agents, clerks of works, estimators, project managers, quantity
surveyors, etc. Within EPWP, we will target projects such as Driver Learner
Training Centres (DLTCs), government buildings namely, Government Precinct,
Heritage Projects and Road Engineering for the participation and training of
youth co-operatives. We will also, in our role as provincial coordinator for
EPWP, engage municipalities on youth ring-fenced projects prioritised for
2007/08.
Comrade Speaker, my department is tasked with ensuring proper utilisation
and management of GPG's property portfolio and assets. In the last financial
year, we developed a property management strategy that will maximise
functional, social and financial value and returns to provincial government. We
envisage that the strategy will be finalised and operationalised in this
financial year. The property management function which previously resided in
the finance branch of the department has been more appropriately located in the
Public
Works Branch. Currently, we have entered into a partnership with Inter-site to
manage GPG's property and assets.
The key activities that the department will implement in 2007/08 with regard
to this function will lay the foundation for full-scale implementation of the
property management strategy as well as continue to address identified
weaknesses in current practices, such as development of an asset register. This
will be done in partnership with Intersite. The property management function
includes the Kopanong (Government Precinct) Special Project. In this financial
year, we will also implement the PROS asset management module, extend the
application of PROS to regional offices, identify opportunities in respect of
facilities management for implementation of EPWP with a focus on Construction
Industry Development Board (CIDB) levels 1 to 4 contractors, finalise the
devolution of the function of payment of rates and taxes, in respect of
utilities management , from national Department of Public Works to our
provincial department, verify state properties located in Gauteng, compile a
database of all state properties in Gauteng and classify all state properties
according to 12 municipal areas of jurisdiction.
Members of the Legislature, you are fully aware that the department's Audit
Report for the 2005/06 financial year received a disclaimer. The
Attorney-General (AG)'s report for that period identified insufficient controls
in respect of revenue, expenditure, assets, human resources and supply chain
within the department. The report also identified a lack of supervision and
capacity within the Department which has compounded the situation. I view these
findings of the AG's report in a serious light and have therefore embarked on a
comprehensive Turn-around Strategy that focuses on mitigating the issues raised
by the AG as well as on improving the efficiencies and effectiveness of the
department to ensure enhanced delivery of public transport and public works
services to the public.
The department has contracted the services of an external service provider
to implement its turn-around strategy, over a two-year period. The strategy
comprises of short, medium and long-term intervention. The short-term
interventions will focus on issues those issues and queries that require
immediate attention to mitigate the findings of the AG, the medium
interventions will being to embed compliance to policies, procedures and
processes and will re-engineer processes if so required and the long-term
interventions will improve overall efficiency in the way the department
conducts its business.
The solutions offered by the strategy focus on people, processes and
technology. It is also focused on making the transition from the notion of
public administration to that of public governance. Traditionally, public
administration has been executed as a static, uninvolved running, supervision,
and administering of paperwork to implement government decisions. The very use
of the word "administration" lends itself to such interpretation and execution.
It also lends it self to a false distinction and separation between political
decisions and leadership and the implementation thereof. Our democratic
government, however, understands that implementation of government decisions
involves a process of governance which includes administrative activities as a
mechanism or tool to achieve the desired result. In other words political
results can only be achieved through political leadership and public governance
which incorporates the all important principles of:
* improving service quality and efficiency
* reinforcing and expanding capacity in the public service, strengthening
governance and accountability in government
* maintaining the integrity of pubic funds
* providing sound stewardship of public resources
* setting strategic direction, establishing effective controls and performing
effective monitoring.
As a result of the turn around strategy the draft financial statements of
the department and its four trading entities were competed 15 days before the
submission date of 31 May 2007. The quality of these financial statements was
improved tremendously. All prior years reported matters were reviewed in the
short term and some were earmarked for medium and long-term processes. One of
the key objectives of this process is the issue of skills transfer by the
consultants to the employees of the department. This process is guaranteed to
give us improved audit results. The fixed asset register has been updated with
movable and immovable assets (including road infrastructure) - the register now
has to be corrected in terms of opening balances in the improvement project.
The accuracy of the accruals and the contractual commitment figures has been
improved and receivables balances and the recoverability issues relating to
debtors have been properly disclosed.
The other key activities that the department will implement towards
improving its operational efficiencies are:
* better management of its bursary schemes
* finalisation of its organisational structure that has been recently
reviewed
* implementation of the revised organisational structure on approval including
the urgent filling of critical core function vacancies
* the development and implementation of a staff retention strategy
* a departmental policy and framework that will guide internal co-operation,
study tours, etc
* the development and implementation of a management meetings programme of
quarterly meetings, meetings programme with Members of the Mayoral Committee
(MMCs) and Minister and MECs (MINMEC) meetings.
In the spirit of open, transparent and good governance, we will keep you
regularly appraised of how we execute our areas of responsibility and deliver
on our mandate and other departmental commitments. This we will do through
implementation of our comprehensive 2007/08 Communication Plan and our
centralised stakeholder engagement and partnership building plan. We have
created a specific Project Management Unit (PMU) as a fifth branch of the
department, with the aim of improving our project and knowledge management of
all departmental projects in terms of implementation targets, milestones and
indicators and in terms of incremental socio-economic impact and contribution
to the province's GDS targets. The functions of the PMU, which will utilise
PROS which is an information technology (IT) based Public Resource Optimisation
System, include:
* implementation of measures to improve capacity for CAPEX delivery on time,
on budget and to scale
* managing the provincial geographical information system (GIS) capacity on
behalf of GPG
* managing the departmental roster of service providers
* provision of a holistic and integrated operational management system with
reliable information and enhanced service delivery capabilities
* improving the operational efficiencies and thus the customer satisfaction of
the department
* improving infrastructure planning and resource management including
monitoring of high value materials and resource
* optimising and integrating processes and faster decision-making in that it
provides timeous access to information.
Conclusion
Comrade Speaker and Members of the Legislature, I thank you for opportunity
to present, to the people of Gauteng, my budget speech for the 2007/08
financial year. In my speech I have highlighted only the key programmes that we
will be implementing. The full scope of our work and responsibilities is much
more and much deeper then the key programme areas. Our entire Programme of
Action for 2007/08 consolidates and enhances the principles of integrated,
holistic, people-centred, people-driven and sustainable development. These
processes and mechanisms will have the additional benefits of contributing to
effective co-ordination and implementation of government policies and
programmes, continuous monitoring and evaluation of impact and ensuring that
policies and programmes are informed by the needs, interests and views of
people.
In other words, Comrade Premier, the department's Programme of Action for
2007/08 is designed to ensure all our activities contribute to "a better
Gauteng in the making" and that 2007 does succeed as "The year to intensify the
struggle against poverty, as we advance in unity towards 2012 - phambile!"
Comrade Premier and my colleagues in the Executive Council, thank you once
again for your ongoing strategic support, advice and commitment to the goal and
objectives of my department. Members of the Legislature and especially those of
the standing committees that my department accounts to, thank you for your
critical but unwavering support and advice. We understand and appreciate that
your constructive criticism and engagement with us helps us to improve our own
efficiencies and accountability.
To our many stakeholders in the transport and public works sectors, it is a
known fact that our successes and achievements would be less than what they are
if we did not have you as equal partners that work in close collaboration with
us. We thank you for this. And lastly, I thank my Head of Department, my Deputy
Directors-General and all other department officials who remain committed and
dedicated to delivering on our goal, objectives and mandates, regardless of the
challenges they experience.
Comrade Speaker and the people of Gauteng, we as the Gauteng Department of
Public Transport, Roads and Works, in formally tabling my Budget Speech for the
2007/08 Financial Year, commit to fulfilling our duties.
Thank You
Issued by: Department of Public Transport, Roads and Works, Gauteng
Provincial Government
12 June 2007
