Honourable Speaker and Deputy Speaker
Honourable Premier Maureen Modiselle
Honourable Members of the Executive Council
Your worship Executive Mayor, Mayors, Dikgosi and Councillors present
Heads of department
Senior officials
Stakeholders
Distinguished guests
Comrades and friends
Ladies and gentlemen
People of the North West Province
Let me take this opportunity to pass my sincere appreciation for this precious opportunity to table the budget vote for the newly reconfigured Department of Public Works, Roads and Transport. As we all know this department resulted from the merger of two departments, i.e. former Departments of Public Works and Transport, Roads and Community Safety. The need to reconfigure was informed by the new administration’s quest to deliver services to the people better, faster and cost effectively.
Honourable Speaker, the tone set by both the President of the Republic, Honourable Jacob Zuma and the Premier of our province, Honourable Maureen Modiselle through their respective inaugural speeches point to a new era of renewal, hard work and total accountability to the multitudes of the people we are representing.
Coming fresh from the general elections in April 2009, we vividly recall the unequivocal call made by the overwhelming majority of our people that they want immediate relieve from poverty, unemployment, lack of infrastructure and economic deprivation. For this mammoth task, Honourable Speaker, the people once more placed their faith in the ruling party to deliver on their needs with a well placed hope that they shall not be failed.
It is appropriate that we should all heed the calls by our people and indeed our Honourable President, touch the ground running and ensure that the pursuit for a better life for all is achieved sooner rather than later. The challenges before us which include high expectations on delivery and the constrains of limited resources against the backdrop of economic recession, requires that we should find innovative ways of doing things, instil fiscal discipline in our civil service and ensure that we achieve more with less.
Honourable Speaker, our department is responsible for the biggest infrastructure projects in the province focusing on, amongst others, the provision and maintenance of public buildings such as hospitals, schools, government offices and road networks. It is therefore expected that this department should take lead in creating direct employment and economic opportunities for our people and thereby shielding the province and its citizens from the harsh effects of economic recession.
We intend to deliberately expand the participation of previously disadvantaged contractors and individuals in the province, with specific emphasis on providing opportunities for women and youth. We are also considering organising small contractors and nongovernmental organisations into regional or local permanent or semi permanent consortia with an intention of empowering them through sizable construction tenders or partnerships with big contractors undertaking projects in their localities.
It is about time that we share the little we have by ensuring broad participation in the opportunities provided by government. Honourable Speaker, our approach is informed by the fact that the Expanded Public Works Programme (EPWP) is a government wide intervention to create both short and ongoing work opportunities and we must give practical expression to this notion. We are also directed by the national department of public works to directly absorb unemployment by:
- Labour intensive production methods and procurement policies
- Significant expansion of the public works programmes linked to the expansion of economic infrastructure and meeting social needs with home-based care and early childhood development on a massive scale
- A much larger national youth service ensuring the linkage of industrial strategy with key youth development programmes in the form of an integrated Youth Development Strategy
- Programmes that target the employment of women.
We will, in the light of the above, start to award major government projects taking into account the commitment by the contractor to open more opportunities for other small contractors based in the locality of contracts as well as the number of direct employment opportunities they make available for local people. We must dispel the perception that government tenders benefit the few and the same companies to the exclusion of many. We will expeditiously put monitoring and evaluation systems in place to constantly assess the direct economic impact made by the tenders awarded by the department and open our doors to listen to all who have complains and suggestion on how the system can be improved to benefit more people.
Projects undertaken in the past financial year
Honourable Speaker, the department has in the previous financial year undertaken important projects which are at various stages of completion and we deem it important to report on the progress on these projects to your august house.
Hospital revitalisation programme and health building projects
The hospital revitalisation programme involves the overhaul of the hospital infrastructure and is at the centre of our government’s promise to improve public health system. Under this programme, the department embarked on five projects which were mainly undertaken on behalf of the client department, namely Health and Social Development.
We are pleased to report that construction for three projects has like, i.e. Moses Kotane Hospital worth R190 million which is expected to be completed in the next four months, Brits Hospital worth R543 million schedule to be completed by November 2011 and Vryburg Hospital worth R304 million and expected to be completed by end of this month. The remaining two hospitals, namely Bophelong Psychiatric and Lichtenburg are at the planning stage.
In addition to the projects, the department has undertaken 63 health building projects that include hospitals, clinics, community health centres and mortuaries to help the client department to expand the provision of quality health service to the people of our province. We are pleased to report that 30 of the projects are complete, while 12 are still under construction and 21 are either at planning stage or are put on hold by client department due to budgetary constraints.
School building programme
Honourable Speaker, the department is also working to assist the Department of Education to achieve its noble objective of ensuring that no learner is taught under a tree due to lack of schools. The department reported in the last financial year that about 18 schools were built in the last two years or so. We are pleased to report that we are entering another phase of delivery starting with schools building projects that were put on hold due to financial constraints.
We must report, honourable members that some of the delays in the completion projects were due to poor workmanship by some contractors. We will be clamping down on these underperforming contractors who are wasting valuable time and funds given that projects that are supposed to be handed over to client departments delayed while the communities that are supposed to use these facilities continue to suffer. Equally, we will reward hard work and cost effectiveness.
Infrastructure projects for other client departments
Honourable Speaker, the department also services other departments on their infrastructural needs and these include the traditional authorities which we all know are based in rural areas. Given the current government’s commitment to rural development, the need to provide the Traditional Leaders with decent infrastructure to carry out their functions cannot be overemphasised.
The offices of Batlhaping–Ba–Phuduhucwana and Boo Mankuroane traditional leadership were only completed last financial year due to the contractor’s cash flow problems. One more traditional office is under construction and three have been put on hold due to budget constraints.
The department has also completed the Rustenburg Secure Care Centre to be used for holding awaiting trail juveniles similar to the one in Matlosana and Mafikeng. As we all know, the facilities are also used as rehabilitation facilities for juvenile offenders before reintegration into society. The construction for the children’s place of safety in Mafikeng and the victim empowerment centre in Vryburg commenced recently.
Honourable Speaker, we are also pleased to report that the R56 million library and archives building for the Department of Sport, Arts and Culture in Mafikeng have been completed this month and the client department is currently taking occupation. An agreement has also been reached between the same client department and the Matlosana Local Municipality that the Ipeleng and Khuma community libraries will be built with funds already allocated to the municipality and as a result the department will only fund consultants’ fees.
CAPEX projects for the department
Honourable Speaker, we wish to indicate that the department is in the process of assessing the current CAPEX projects models for the former Departments of Public Works and Roads, Transport and Community projects. Depending on the assessment report, the department will consider to develop an integrated programme for synergy and cost containment.
Public Works CAPEX projects
The main focus of the CAPEX for the public works has been provision of additional office space for government departments. We are pleased to report to the house that the Garona Building project is progressing well and is expected to be completed within a month. The R137 million regional government office complex in Vryburg known as Mini Garona is progressing well.
Renovation projects
The department has also undertaken 29 major renovations projects of which 14 are already competed. The projects include the Old Parliament Building, Mmabatho Civic Centre and Convention Centre. We are expecting six more renovation projects that include Gaabomotho office building, Moretele government offices and Potchefstroom Alex Holm Hall Building to be completed this financial year.
In addition, nine new projects including Lowe Residences, Lowe Main Building, Bloemhof Road Camp, Potchefstroom and Taung Agricultural Colleges and phase two of the Old Parliament Building are to be implemented during this financial year.
Provincial Road Network
Honourable Speaker, the state of our roads is by now known by all to be in a very undesirable condition. Although the situation cannot entirely be blamed on the department, it however remains as an ugly stain on our delivery track record as government. Notwithstanding the budgetary challenges we are facing, we are committed to address this problem including declaring a full scale war on potholes.
We must indicate to the house that the outcry from our communities regarding the poor state of roads has reached the department and we are doing everything possible the respond appropriately. We are acutely aware that poor road condition results in high vehicle operating costs. This leads to either high costs of service delivery or neglect as areas become inaccessible. Thus the road network in the province plays a very critical role in the development of the province as well as social uplifting of communities.
The department is responsible for the planning, designing, construction and maintenance of the provincial road network which totals in length approximately 20 689 km. 14 191 km hereof is unpaved, i.e. of gravel or earth and the balance, 6 398 km, is paved. The network is spread across the province address different needs for different communities, for example roads in the east mostly used to support economic activities while in the western part of the province are used mostly for social activities.
The Road Network Management System (RNMS) maintained by the department shows that the conditions of our roads are steadily deteriorating both paved and gravel and this, Honourable Speaker calls for the house to consider making additional funding available to arrest the situation. We urgently need to embark on preventative maintenance as well as complete rehabilitation of some roads.
Roads CAPEX Programme
As an attempt to address the above raised concerns regarding the state of our roads, the department has in the past year upgraded 25km of gravel roads and rehabilitated 86 km of roads as well as resealed 129km of roads. The figures are less than the achievements of the previous year due to many factors.
A lot of new projects were initiated in 2008/09 and are now scheduled for completion in 2009/10, in certain cases due to tardiness on the part of the emerging contractors awarded these contracts. The cost of related commodities in the market has also posed a challenge of rise in construction costs. The construction costs per km have now gone higher than the initial R2 million resulting in more expenditure for the department.
The heavy rainfalls experience last year and early in the year also severely affected construction activities submerging some of the roads completely under water, especially in Ottosdal and Delareyville.
Honourable Speaker, we have, however, completed lots of designs for priority projects and are ready for construction once funding becomes available. Some of the projects scheduled for completion later this year are Ventersdorp to Ga-Mogopa, Tosca to Jakkalskop and Manthe to Cokonyane
Work has commenced on the rehabilitation of the roads between Koster and Lichtenburg, and Mafikeng and Lichtenburg. These roads have been perennial problems with potholing and black spots especially the section between Itsoseng and Lichtenburg. I am happy to report that work is progressing smoothly and urge all road users to be very patient with the traffic control measures in place.
The Mafikeng-Lichtenburg road is being upgraded to N4 standard where the shoulders are wide enough to allow traffic to overtake. We would have loved to have a dual carriageway but this was not possible due to high construction costs. Lichtenburg-Koster road on the other hand will be of similar standard as the road between Zeerust and Mafikeng.
The department is also continuously striving to maintain the road networks of the province but in this area as well our challenges is inadequate budget and lack of construction plant to do routine maintenance work. Despite these challenges, the department bladed 56 079 km of gravel roads and 1 784 km on shoulder along surfaced roads. These achievements are against targeted figures of 31000 km on gravel roads and 6535 km on shoulder along surfaced roads.
Honourable Speaker, we have just tabled in your august house the Road Management Agency Bill for your consideration, this will help the province a long way in addressing the road conditions as I have already stipulated the challenges.
Re phelele (EPWP)
Honourable Speaker, the department started the upgrading of access roads using the labour intensive methods. We have created our own brand, re phelele, meaning living for us. Under this programme, ten women contractors were selected so that each district has at least two contractors, and given projects. Two districts, namely Ngaka Modiri Molema and Dr Ruth Segomotsi Mompati had three contractors each.
These contractors are being given training on all facets of construction and contract management. It is hoped that by October 2009, they will produce a total of 25km of surfaced roads. Re phelele will also create about 800 jobs by October 2009. This programme is set to continue as highlighted by the President Jacob Zuma that more emphasis would be placed in Expanded Public Works Programme (EPWP) to create more jobs while improving infrastructure. Further expansion will be aligned to availability of additional funding.
Some service providers have embraced the concept while others are sceptical about the use of labour as opposed to machines. We hope to win over the sceptics though a blend of job creation and provision of good access roads. In some areas where the contractors are performing well, the communities have requested that more roads be upgraded using the EPWP principles.
A total of 1 755 jobs were created under the Capital Expenditure Programme. This number included 33 percent youth, 32 percent women, 35 percent men and 0, 2 percent people with disabilities. The EPWP programme created 6970 jobs.
Property management
Honourable Speaker, this house was informed last year that the department is getting ready to implement the Government Immovable Asset Management Act (GIAMA) which is aimed at promoting sound management of immovable assets by government departments both at provincial and national level. A lot of ground has been covered by the department in the implementation with various activities already completed including trials user asset management plans for all the ten user departments in the province.
The provincial fixed asset register is also on course for completion and is currently 80 percent functional in terms of the minimum requirements outlined by GIAMA. To ensure 100 percent compliance, the department has prioritised the search for titles for state properties, the vesting of land by the national government and the valuation of all properties. Services providers are appointed to undertake these important tasks including the challenges of obtaining titles for state asset in rural areas.
Other projects running under property management includes the devolution of municipal rates and taxes from national department to provincial department in this regard payments amounting to R58, 326 million have been effected to municipalities in the last financial year with about R66, 107 million to be paid in the current financial year.
The department is also accelerating the provision of office accommodation space for client departments and also making them accessible to everyone including people with disabilities. The challenge in this regard is limited financial resources and the department has embarked on a multi year programme approach, prioritising high occupancy buildings which are critical as public service points.
To combat this challenge, we adopted a multi year programme approach, running throughout MTEF 2007/08 to 2009/10. We have through a service provider, identified the needs throughout the province and determined the cost thereof. This exercise will assist in determining the adequacy of the available office space as well as the need for either renting additional space or construction. The project is nearing completion, and a report is expected during the first quarter of the next financial year.
The department is embarking on a drive to renew lease agreements for tenants in the Mmabatho/Mafikeng area to update occupancy records, identify illegal tenants and rental defaulters. The department is also acquiring some of the properties previously owned by the North West Development Corporation (NWDC) and some of these assets will be disposed in accordance with the policy.
Energy saving interventions
Honourable members in response to the current electricity crisis and as part of the national effort to save energy, the department launched its initiative in pursuit of short and long term solutions. We came up with interventions ranging from issuing communication to client departments on the non-technical energy saving initiatives that can be implemented, to sourcing of proposals from service providers with the relevant expertise on the matter.
In order to ensure efficient and effective implementation of this initiative, we have appointed a qualified electrical engineer from the North West University as a technical advisor. The initiative will have short term and long term initiatives to ensure that we meet the 10 percent energy saving required by Eskom.
Projects to support the 2010 FIFA World Cup
Honourable Speaker, the department is working hard to ensure that the projects earmarked for supporting the FIFA World Cup are completed in time. The excitement created by the FIFA Confederation Cup last month amongst our people is encouraging and we need to prepare adequately for the World Cup to ensure even greater success.
The department is upgrading the road linking Sun City and the stadium in Phokeng where the FIFA family will stay to ease future traffic congestion that maybe caused by mining activities around the area. The 1st phase of the upgrading of the Sun City road into a dual carriageway has been completed and the second, third and fourth phases are underway. The project is co-funded by the Royal Bafokeng Nation and we are thankful for their invaluable support.
The department has also co-funding the western by pass to Phokeng from the N4 in Rustenburg. The project is being managed by Rustenburg Municipality and is being implemented using a grant from national Department of Transport. I am happy to report that phase 1 was successfully completed and utilised by the Confederations Cup traffic.
Similarly, the road from the Kloof Interchange was also upgraded and is scheduled for completion in September 2009. It was also open to traffic during the Confederations Cup. This, Honourable Speaker, bears testimony to our state of readiness to host the 2010 Soccer World Cup. All these projects will be completed by March 2010.
Honourable members in addition to road projects supporting the 2010 World Cup, the department is also busy with the construction of two community health centres, namely Tlhabane and Rustenburg Community Health Centres. The Tlhabane Community Health Centre is under construction and Rustenburg CHC is delayed by the search for a suitable site by the local municipality.
Outlook for 2009/10 financial year
No new projects will be implemented as the budget is fully committed. We have made a request to Treasury for additional funding to cover our commitments.
Expanded Public Works Programme (EPWP) phase 2
Following on the successes of the first phase of EPWP, phase 2 will be implemented by all public bodies in the province. The strategic goal of the EPWP phase 2 is to create jobs through line function budgets of all public bodies by using labour intensive methods where possible and appropriate.
We hope to launch EPWP phase 2 in the province before the end of next month (August). May I also, Honourable Speaker, take this opportunity to announce that, Bakgatla Ba Kgafela have set aside R1,5 million for EPWP projects in their village and have approached my department for assistance. This will form part also of our broader rural development strategy. Because, as the Department of Public Works; Roads and Transport, we are responsible for providing direction, leading, supporting, coordinating and monitoring the implementation across the province both at local government and provincial level.
For this financial year the North West Province is expected to create 38, 936 job opportunities through the phase 2 of EPWP. These job opportunities would be attained or realised through the following sectors:
Provincial infrastructure sector:
It is expected to create 6 537 job opportunities through projects that will be implemented using funding from infrastructure grant for the provinces. The departments that are expected to contribute are:
- Public works, roads and transport through buildings maintenance; roads maintenance; construction of new infrastructure and access roads'
- Department of Education, through the construction of new schools and new infrastructure as well as maintenance of schools and other infrastructure
- Department of Health, through maintenance of clinics, hospitals and other infrastructure as well as construction of new clinics, hospitals and other infrastructure.
Social sector
About 8 290 job opportunities through programmes that would be funded from HIV/AIDS; Early Childhood Development grants and funding for sports programmes:
- Department of Health and Social Development is expected to contribute through home community based care programmes; early childhood development programme; social auxiliary work and love life
- Department of Education is expected to contribute through Early Childhood Development Programme; National School Nutrition Programme; Special School AIDS and Adult Basic Education and Training (ABET) skills programme
- Department of Sports, Arts and Culture is expected to contribute through Community Mass participation; Siyadlala, School Sport and Legacy programmes.
The infrastructure sector programme at local municipality level is expected to contribute as follows:
- Bojanala District and its municipalities is expected to contribute 6614 job opportunities through its municipal infrastructure grant
- The Ngaka Modiri Molema District and its Municipalities is expected to contribute 3056 job opportunities through its Infrastructure Projects that are funded through the municipal infrastructure grant
- The Dr Kenneth Kaunda District and its municipalities is expected to contribute 2515 job opportunities through its Infrastructure Projects funded through the Municipal Infrastructure Grant
- Dr Ruth Segomotsi Mompati District and its municipalities are expected to contribute 2097 job opportunities through its Infrastructure Projects funded through the municipal infrastructure grant.
The North West Department of Public Works, Roads and Transport, together with National Department of Public Works will provide Technical Support to all Public Bodies in the Province whose work is directed towards the realization of the job opportunities that must be created through the Expanded Public Works Programme.
National youth service implementation
The National Youth Service Programme forms part of the department’s implementation of the Expanded Public Works Programme. Honourable speaker we will be embarking on the process of identifying project in rural areas as part of the ruling party manifesto to develop our remote areas and youth, amongst others we will be looking fencing schools, graveyards, traditional leader’s offices, building car ports as so forth. These projects will target mostly youth, women and people with disabilities.
EPWP learnerships
The department will continue with the implementation of the 350 learnerships for the social sector of the Expanded Public Works Programme. These learnerships are funded by the Department of Labour National Skills Fund and are being implemented as part of the strategic projects of the provincial growth and development strategy of the Office of the Premier. 350 EPWP learnership programme implemented in partnership with Departments of Health, Social Development and Education have implemented 150 learnerships.
Transportation
The directorate has in the past financial year proceeded with an undertaking of Transport Planning Processes and the development of the provincial transport policy as outlined in its annual performance plan. A considerable achievement was recorded in a number of projects which will be outlined below.
The development of integrated transport plans
The planning process has been carried out with the assistance and active participation by our district and local municipalities. The process started in November 2006 and to date it has been completed in both Dr Kenneth Kaunda and Dr Ruth Segomotsi Mompati, with the two district municipalities adopting and approving their integrated transport plans at council meeting. The process has also identified critical transport projects which will enhance the infrastructure and provision of service in the local areas. The Bojanala and Ngaka Modiri Molema processes will be completed in the second quarter of this financial year.
Rural transport strategy
In November 2007, the department embarked on the development of the rural transport strategy. To date phase one and two of the project have been completed. Phase 1 focused on the compilation of the state of affairs with regard to rural mobility in the province. Phase 2 on the development of strategies/ projects profiling to address challenges as identified. Two local municipalities in each district participated and in total 31 capital and non-capital projects were identified. Out of these, 12 projects have been selected for implementation in the first phase at the total cost of R178,6 million, however this all depends on whether the additional funding will become available.
Provincial Land Transport Framework (PLTF) and National Transport Master Plan (NATMAP)
Both the PLTF and the NATMAP are in a completion phase. The PLTF has gone through public participation process and is being verified by the department for approval by the national Minister as prescribed by law.
The NATMAP, which is aimed at integrated development planning of all sectors and projecting transport development up to 2050, is at phase 3 which entails project planning for all modes of transport. The phase 3 report will be tabled at the national round table discussion to be held in this month. We will then embark on the last phase of compiling an action agenda. This phase will outline the institutional arrangement, policy, programme and projects including costs for implementation.
Provincial transport policy
We have also completed the development of a provincial transport policy. Currently it is being verified by the department.
Scholar transport
I and my colleague in education will endeavour to acquire more money for the transportation of learners. A study done in 2004 showed that approximately 200 000 learners are still walking more than 3 km to school. The cost of transporting them in vehicles amounts to approximately R1,8 billion.
Government motor fleet
The directorate is undergoing a re-engineering process where a service provider has been appointed to do a feasibility study to develop a white fleet management solution. A tender was awarded to Kguthatso Strategic Fleet Management who will find a solution aimed at operating a trading account system based on the Western Cape Fleetman System. The final report will be made at the end of the third quarter of this financial year during the month of December 2009.
Traffic and road safety management
A road safety Lekgotla was held on 26 to 27 June 2008 and the road safety strategy was developed and is at the moment still under review. This strategy was also included in the overall South African strategy as developed by the Road Traffic Management Corporation (RTMC).
Focus for the 2009/10 financial year will be mainly on reviewing the pedestrian management plan which was developed in 2002 by Council for Scientific and Industrial Research (CSIR) and ensuring its successful implementation as we are still experiencing high pedestrian fatalities, especially during the festive season.
Road safety officers were able to work jointly with traffic officers and the SAPS during the Arrive Alive peak periods. This yielded positive results as there was a decline on the number of fatalities and crashes on our roads during the festive period. There was a decrease of 12.87 percent on the number of casualties and a further decrease of 21 percent on number of fatal crashes within the province during the 2008/09 festive period.
We will further intensify our traffic law enforcement activities as well as road safety campaigns during the 2009/10 financial year. Road safety management plan for the 2010 FIFA World Cup is already in place and we are busy refining the plan to in line with the transport plan. The plan was expected to be implemented during the Confederations Cup in preparation for FIFA world cup in 2010.
Corporate support
The department of is undergoing a rigorous process of reconfiguration informed by pronouncement by the provincial cabinet of new departments. The instant spin-offs for us resulting from this realignment of departments Honourable Speaker, is that I at least have 11 women in the top management of the department three of them are Chief Directors and eight are Directors. However, the employment of people with disabilities especially at management level remains a challenge.
I am informed that the challenge arise because often people with disabilities do not apply for some of these positions. We nevertheless exploring different options to resolve this challenge, Honourable Speaker our training which include learnership, skills improvement, internship and literary programmes are once again being rolled out following on the resounding success we had in the past year.
One hundred and sixty eight newly appointed employees were inducted, 303 employees are on ABET and have completed literacy programme, 180 are currently registered for ABET levels one, two and three and the list is endless, Mr Speaker.
Honourable Speakers, I am informed that the construction and furnishing of the wellness centre has been completed and ready to be launch the services that will be rendered are: health screenings, VCT services and counselling services.
Amounts to be voted for per programme
Honourable Members, I now here and now outline the department’s budget, programme for the financial year 2009/10:
Programme: 1
Budget allocation: Administration: R211 313 000
Programme: 2
Budget allocation: public works: R522 548 000
Programme: 3
Budget allocation: roads infrastructure: R835 600 000
Programme: 4
Budget allocation: public transport: R682 262 000
Programme: 5
Budget allocation: traffic management: R208 999 000
Programme: 6
Budget allocation: EPWP: R74 128 000
Total budget allocation: R2 534 850 billion
