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Report on Conditional Grants and Capital Expenditure 3 rd Quarter 2007/2008 Financial Year

Report on Conditional Grants and Capital Expenditure 3 rd Quarter 2007/2008 Financial Year. NCOP PRESENTATION 05 FEBRUARY 2008. Presentation outline. Purpose of the Conditional Grant and Capital Expenditure managed by the department in terms of the DORA

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Report on Conditional Grants and Capital Expenditure 3 rd Quarter 2007/2008 Financial Year

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  1. Report on Conditional Grants and Capital Expenditure 3rd Quarter2007/2008 Financial Year NCOP PRESENTATION 05 FEBRUARY 2008

  2. Presentation outline • Purpose of the Conditional Grant and Capital Expenditure managed by the department in terms of the DORA • Expenditure trends on Conditional Grants and Capital Expenditure for the MTEF period 2005/06 – 2007/08 • Explanation of expenditure variances. 4. Management & monitoring of Conditional Grants and Capital Expenditure • Social & EPWP indicators for new roads 2007/2008 • Results in 07/08 7. Challenges faced in management of grants and Capital Expenditure. • Future budget trends: MTEF Eastern Cape Department of Roads & Transport

  3. 1. Purpose of this Conditional Grant and Capital Expenditure • To accelerate construction and rehabilitation of new and existing Eastern Cape Provincial road infrastructure and Transport Services. • Accelerate implementation of the Provincial Growth Development Plan. • The grant requires us to focus on the application of labour intensive methods in order to maximise job creation and skills development. • Enhance capacity to deliver Road Infrastructure and Transport facilities. • Create the necessary Transport Services facilities in Municipal Areas as supported by ITP and MTABs. Eastern Cape Department of Roads & Transport

  4. DEPARTMENTAL EXPENDITURE • Expenditure as at 31/12/07 Eastern Cape Department of Roads & Transport

  5. 3. 2. Expenditure Trends CG Provincial Infrastructure Grant Eastern Cape Department of Roads & Transport

  6. 3. Explanation for expenditure variances • The variance (R53,337 000.00) or 6.36% over expenditure was due to: • The accelerated programme of the contractor on the Maclear to Mount Fletcher and Middledrift to Alice projects which will be completed three and two months before scheduled completion time, respectively. • Early start on the Mthatha Quarry Road. • However, the programme is expected to break even, come the 31 March 08. Eastern Cape Department of Roads & Transport

  7. Expenditure Trends – PIG and (Total) Capital Expenditure Eastern Cape Department of Roads & Transport

  8. PROJECT BREAKDOWN Eastern Cape Department of Roads & Transport

  9. 9. Management & Monitoring mechanism • Departmental officials attend monthly site progress meetings • In addition the CFO and programme manager conduct random site visits on the progress of the contracts. • District Roads Engineers visit and inspect projects in their particular areas. • Professional Engineering Consultants on site monitor the projects. • The Department submits a detailed quarterly report to Provincial and National Treasuries, which captures the full details of the projects including the allocation for the year, the expenditure for the period in question and outputs achieved. • Specific reports are submitted on progress with respect to social indicators such as employment, BEE, local resources etc. • Monthly In-Year Monitoring reports are also submitted to the provincial treasury to monitor the expenditure. • SANRAL(SA National Roads Agency) implements 6 projects on behalf of the department in terms of a Service Level Agreement monitored by Departmental staff. Eastern Cape Department of Roads & Transport

  10. 10. EPWP SOCIAL INDICATORS

  11. RESULTS • Launched train service between Queenstown and Molteno in October 07. • Received Testing License from Rail Safety Regulator. • Linked MaClear with Mount Fletcher with surfaced road. • Renovated Bhisho airport such that aircrafts are able to land. • Handed over to contractors the Greenville Hospital Road, Madwaleni Hospital Road and Zithulele Hospital Road. Eastern Cape Department of Roads & Transport

  12. 12. CHALLENGES • Acute shortage of road building materials . • Lack of adequate funding for roads impacts negatively on delivery of a good Road Network and Transport Services. • Ever increasing road construction costs • The construction industry CPIX is currently 24%. • Many of the Access Roads are still impassable and inaccessible. • High Ratio of Gravel to Surfaced Roads (85:15). Eastern Cape Department of Roads & Transport

  13. 14. Future budget trends: MTEF before reduction CG allocation Eastern Cape Department of Roads & Transport

  14. 16. Future budget trends:MTEF after reduction of CG allocation Eastern Cape Department of Roads & Transport

  15. 17. Future budget trends: MTEF after reduction CG allocation Eastern Cape Department of Roads & Transport

  16. 18. BUDGET SUMMARY Eastern Cape Department of Roads & Transport

  17. 19. Effect of PIG reduction Eastern Cape Department of Roads & Transport

  18. 21. Impact of Infrastructure backlogs on MTEF Eastern Cape Department of Roads & Transport

  19. 23. Estimated Cost of backlog Eastern Cape Department of Roads & Transport

  20. Province of the EASTERN CAPE Department of Roads & Transport Quality service delivery through transportation excellence I thank you… Eastern Cape Department of Roads & Transport

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