Province of the Eastern Cape

The Department of Housing, Local Government & Traditional Affairs

Date: 23 February 2007Presented by MEC Kwelita, DHLG&TA

Contents

• Status Quo (2006/2007 financial year)

• 2007/2008 (Approaching the Target)

• Challenges / Recommendations

Status Quo (2006/2007)

• Initial backlog suggested 48,417 buckets• Many informal buckets included• Values verified by DWAF/Munic’s indicate

37,192 buckets• As at end 2006/2007 approx 75%

eradicated• To date R213,8 million from MIG (ring-

fenced)• To date R71 million from DHLG&TA (PIG)

2007/2008 Approaching the Target

• 9,095 buckets remaining

• Cost to eradicate is R214 million (incl. associated bulk and additional water costs of R113 million)

• Secured funding R226,3 million (DHLG&TA & BEP ring-fenced via MIG)

• Surplus of R12 million to allow for budget over-runs on projects, etc.

Challenges / RecommendationsChallenges Recommendations

Shortage of funding in some municipalities and surplus in others.

The split in allocations to municipalities needs to be rationalised prior to gazetting.

Pre-implementation timeframes, (4 to 6 months). Project implementation 6 to 8 months exceeds Dec 2007 ! (June 2008)?

Sector Dept’s and municipalities to expedite every process to ensure speedy implementation. Task team (incl. sector departments) supporting the process (before end March 2007)

Challenges / RecommendationsChallenges Recommendations

Technical and administrative capacity at municipal level

Identify level of technical support (before the end March 2007) required to implement projects. (DBSA, SAACE-Energys, etc.)

Timing and flow of allocations to municipalities and municipal budgeting cycles

Relax provisions of municipal finance legislation allowing expenditure before July 2007. “Adjustment estimate” of municipalities to be finalised ASAP.