Date: 15/03/2007

Source: Eastern Cape Provincial Government

Title: Mhlahlo: Eastern Cape Roads and Transport Prov Budget Vote 2007/08

Department of Roads and Transport Budget Vote speech delivered by MEC Thobile Mhlahlo, Eastern Cape Provincial Legislature, Bisho

Madam Speaker
Honourable Premier
Honourable members
Distinguished guests
Ladies and gentlemen

"Sakha Isizwe"

It is again that time of the year, when we have to come back to this august house and present the policy priorities of the Department of Roads and Transport in the Eastern Cape.

This presentation is informed by the policy directives deriving from the President's State of the Nation Address, Eastern Cape Premier's State of the Province Address and the National Budget Statement by the Minister of Finance Trevor Manuel.

Collectively, the above statements have provided us a prompt response to the challenges that have been confronting our people for many decades. As further declared by the President through the statement made on 8 January, that 2007 is the "year to intensify the struggle against poverty as we advance in unity towards 2012," this declaration is informed by the tasks that remain in terms of implementing the popular mandate that we received in 2004 to build a people's contract to create work, and fight poverty, and the advancement towards the realisation of our election manifesto target of halving unemployment and poverty by 2014.

The central challenge that we face in this second decade of our freedom is to defeat poverty and advance social transformation. None of the great social problems we have to solve is capable of resolution outside the context of the creation of jobs and the alleviation and eradication of poverty and therefore "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 Rapid Assessment Survey of over 12 000 households in the province highlighted the challenge of poor or lack of infrastructure to facilitate access to government services.

According to the Eastern Cape Macro-social Analysis, our province has a population of 6,4million people and 54% of this figure comprises of women, which also translates into the majority of households being headed by women in the Eastern Cape.

The Provincial Transport summit that we hosted in April 2006 mandated the Department of Roads and Transport in the Eastern Cape to, amongst other things:

* accelerate the transport infrastructure provision
* ensure that our transportation system facilitates and enables the realisation of socio-economic gains and further provide movement of commuters and goods
* continue to overhaul our public transport system and introduce new solutions in preparation for 2010 FIFA World Cup.

Since then, the department had embarked on a process of analysing its strategies in an effort to find new public transport solutions that complement our Provincial Growth and Development Plan (PGDP).

The current stage of implementation of the PGDP requires a speedy response from our road infrastructure and public transport systems.

Programme one: Administration

Honourable members, we will continue to provide support to all divisions of the department to ensure optimal, transparent, effective and efficient utilisation of all resources.

Through this programme, we will provide support for the realisation of the Provincial Growth and Development Plan (PGDP), the High Impact Priority Project (HIPP) and Integrated Transportation Plan.

As part of public service transformation, the department has participated in the Khaedu Project.

The project has further maximised the principles of Batho Pele � People First; and all managers have spent some time in the districts to strengthen the understanding of service delivery challenges.

The department received, together with three other departments, the Premier's Balasela Award in December 2006. The Award was presented to the department for leadership in providing integrated transport solutions.

Honourable Members, technical skills shortage continues to haunt our young democracy, which has prompted government to embark vigorously on programmes that seek to attain such skills.

Madam Speaker, scarce skills are a major challenge, specifically in the engineering, rail, aviation, maritime and transport economics fields. The department has established partnerships with various stakeholders, particularly institutions of higher learning, for building and growing transportation skills.

We have further embarked on an accelerated recruitment programme to seek these much needed skills in order to get new blood into the system.

Similarly, an updated human resource plan with its own employment equity plan, skills development plan, recruitment and retention strategy will be implemented and closely monitored with special emphasis on addressing scarce skills which have been a challenge in the department.

Since 2003, our Maths and Science project has now enabled us to award 300 bursaries towards transport related studies with more emphasis on civil and mechanical engineering.

On that note, Madam Speaker, I would like to introduce to this house some of the recipients of our bursaries to do civil engineering, who are now working in our Rail and Maritime Section:

* Nelisa Dyani, an intern from Ezibeleni
* Asanda Magwaxaza from Willowvale, she is doing in-service training
* Acquilla Sotyato from Mthatha, who is also doing in-service training.

In our midst, we have another group of 80 bursary holders, who are currently doing their first year in courses such as civil and mechanical engineering, transport economics, information technology, traffic law enforcement and forensic investigation.

The department has fully introduced Supply Chain Management (SCM) and one of the main areas of focus will be the implementation of the Broad Based Black Economic Empowerment (BBBEE) Charter for the transportation sector.

In preparation for the national adoption of the transportation sector BBBEE charter, the department has developed the draft transportation sector charter and thus created awareness and understanding amongst the transportation industry.

Through this BBBEE charter we will further make certain that the department's operations are transformed to be wholly and totally BBBEE compliant.

To ensure a seamless supply chain management system, we have decentralised our procurement by establishing district procurement committees to streamline procurement processes and enhance access.

The campaign to stop the misuse of Government Fleet has been very successful, with 398 vehicles confiscated during the 2006/07 financial year and disciplinary actions taken by the departments concerned.

The 2006/07 financial year was the third year of the five-year Fleet Management Contract with service providers Fleet Africa Eastern Cape. The National Treasury's Public Private Partnership (PPP) Unit has just completed a diagnostic study, which will provide an informed strategic approach as part of the way forward.

Apart from the HIV and AIDS policy for the department which was launched in 2005/06, there are ongoing campaigns to ensure that the infection is contained amongst our employees and clients. In line with best practice worldwide, we have developed an employee wellness program.

As stated in my policy speech last year, we have strengthened our capacity of revenue collection. The projected revenue for the current financial year was R171,119 million and actual revenue collected as at 28 February 2007 was R253,857 million. This shows an increase of R82,738 million. The bulk of our revenue is from vehicle licence fees.

Madam Speaker, I would like to take this opportunity to announce that the licence and miscellaneous fees will increase by 12,5% as from 1 April 2007, as per the Executive Council Resolution to bring parity to these fees in line with other provinces. The agency fee that the department pays to Registering Authorities for collecting licence fees will increase by 2,5% from 15% to 17,5%.

The structure of the department which integrates Roads function and the former Department of Transport was approved in June 2006. From this structure, the department has managed to decrease the vacancy rate from 55,1% to 48,2%. Since November 2006, the department has embarked on a vigorous strategy of filling 465 vacant posts that were identified as critical.

Later today, we will launch our new website, which is a milestone in ensuring access to updated information on services that we render as a department to ensure a quick turnaround on our challenges. These are efforts that seek to widen accessibility to services by our stakeholders at all levels.

We will be establishing a video conferencing facility in an endeavour to lead by example. The facility will mean that the public will gain easier access to my office and the department. All these measures will be additional to the desired face to face interactions that we always strive to achieve with the public.

We have launched our Batho Pele service standards, which I will also table here today. These standards will be linked to our performance management system. The latter will be monitored through an electronic balanced scorecard system which cascades to individual performance. The service standards will serve as a tool by which the public will measure our performance, as well as for remedial actions taken. In December 2007, the department will publish its first citizen's report to reflect its level of compliance with these standards.

The Provincial Traffic Information Centre at Wilsonia has been repositioned to serve as client centre for the whole department. This call centre with the toll-free number of 0800 644 644, is equipped with technology to track any service delivery request, suggestions or complaints (for example road condition, quality of public transport, accidents, etc). One of the great successes of this call centre is 'Operation Pothole,' where we received and attended to complaints from members of the public about potholes in our road network.

Members of the public are encouraged to continue reporting potholes or dangerous road conditions through this toll-free number.

Programme one: Roads infrastructure

In the 2006/07 financial year, we upgraded the following gravel roads to surfaced standard:

* Cala to Lady Frere, phase two - R220 million
* Mthatha to Qokolweni - R130 million
* N2 to Kei Mouth - R230 million
* Ugie to Langeni, phase one - R240 million
* MaClear to Mt Fletcher, phase two - R140 million.

We have further reconstructed the roads between Adelaide and Fort Beaufort (R175 million) and 25 kilometres between Graaff Reinet and Jansenville.

As we speak, Honourable members, work is in progress on the following construction projects:

* MaClear to Mt Fletcher Phase 3 � R150 million
* Middledrift to Alice � R207 million
* Ugie to Langeni Phase 2 � R420 million
* Ugie to Langeni Phase 3 � R348 million
* Mount Frere to R56 Phase 1 (T15) � R347 million
* Sulenkamma Hospital Road � R240 million
* Xuka River Bridge � R9 million.

The department has further embarked upon special mega-projects that embody the principles of the Expanded Public Works Programme (EPWP). The road between the towns of Klipplaat and Jansenville is one of them. The department has assembled some of its in-house resources and teamed them up with 170 locals of these towns to upgrade 27 kilometres of gravel road to a paved surface. Twelve local women were trained through the project in sewing and they are now providing all the workers with protective clothing. Some of the residents have converted their homes into lodging facilities, namely 'Siseko Sovuyo Lodge,' to accommodate some of our staff members. Other locals are trained in various fields such as fencing, brick making and bricklaying, culvert laying and bridge construction.

Today, I am happy to announce that the department is currently at an advanced stage with the planning and implementation of a similar project in Alicedale. We will be commencing with the upgrading of the 17 kilometre stretch of road between the N10 and Alicedale in the 2007/08 financial year.

The department is ready to start with the deployment of in-house resources, along the principles of the Klipplaat to Jansenville project, as soon as the social facilitation process has been completed.

The department is still committed to initiating the following projects in the third quarter of the 2007/08 financial year:

* Fonteinskloof to Ncanarha
* Isilimela Hospital Road
* Motherwell to Addo
* East London to Kidds Beach
* Peddie to Birha River.

Numerous other projects as detailed in our Integrated Roads and Transport Infrastructure Plan, which I also table here today, will be initiated.

Since August up to November 2006 the province endured heavy rains and floods. This resulted in flood damage to the roads especially in the Cacadu District as well as various other districts. Directly or indirectly, the heavy rainfall had a depressive impact in the expenditure trends of the current financial year.

Madam Speaker, additional to the normal maintenance and construction of roads, this department had to fund the unplanned maintenance and construction of the road infrastructure as a result of damages emanated from the mentioned floods.

Honourable Members, the roads' programme has given effect and content to the overall goals of the Provincial Growth and Development Plan (PGDP) as well as to the Expanded Public Works Programme. The Capital Programme alone is likely to exceed the targeted number of employment opportunities which is 8 000.

Due to the huge increase in traffic volumes as well as heavy vehicles, the department in partnership with the South African National Roads Agency Limited (SANRAL), has commissioned a feasibility study for the tolling of the road between East London and Port Elizabeth (R72). The department, through this effort, intends to upgrade the current R72 to a dual lane standard.

Madam Speaker, the maintenance of the road network is progressing fairly well given the financial constraints that it is operating under. The fact that only two pothole cases were reported to our client centre during February 2007 (against the 97 complaints during November 2006) is probably an indication of the success since the kick-off of the campaign at the beginning of November 2006, despite the fact that we were hampered by some heavy rainfalls and extremely heavy traffic.

The total result of our pothole campaign is as follows per district:

Cacadu District

Potholes in the order of 3 654 metre-square (m2) was repaired on the Addo Road. Further repairs are still in progress. In and around Port Elizabeth, another 5 714 m2 potholes were fixed and on the Seaview Road 27 200 m2 of slurry works were completed. The total amount spent on pothole repairs during the last financial year was R7,602 million.

Amathole District

A contract to the amount of R171,000 has been issued on the coastal road (Route R72) between the Peddie junction and through the Keiskamma Pass. On another section of the R72 (Airport to Kidds Beach), 2 680 m2 of potholes were repaired at a cost of R700 000. Repairs have been completed on the road to Glen Eden and pothole repairs on the road to Kwelera Mouth are currently in progress.

Ukhahlamba District

A R2 million contract has just been completed on roads around Venterstad, Steynsburg and Burgersdorp, totalling +/- 2 400m2. Further patching and repairs will be done to these roads, as well as the road to Sterkspruit and Barkley East to Elliot at a cost of +/- R3million.

Chris Hani District

Patching and repair of +/- 3100m2 of route R397 (Sterkstroom � Molteno) has been completed at a cost of R948 000.

O.R. Tambo District

Pothole patching on route R61 (Magusheni � Bizana � Port Edward) is ongoing. An area of 731 m2 has been attended to at a cost of R235 000.

Priorities for 2007/08

Cacadu District

The department will mainly concentrate on the Addo road, the whole of the R72 and some roads in and around the Nelson Mandela Metropole.

Amathole District

The coming year will see the department continue to concentrate on sections of the Coastal road (R72), the Mount Coke Road and roads leading to the Coastal Resorts.

Chris Hani District

Work on route R397 (Sterkstroom � Molteno) will continue, with further emphasis on the roads from Queenstown to Whittlesea and Lady Frere. Roads around Dodrecht, Indwe, Elliot and Ugie will be attended to at the same time.

Ukhahlamba District

Finishing off of the current contract on roads around Venterstad, Burgersdorp and Steynsburg, being followed up with a further contract of R4,7million.

O.R. Tambo District

A contractor had been established on the R61 (Magusheni � Bizana � Port Edward). Attention will be given to the section of road between Lusikisiki and Flagstaff. Another focus area will be the road to Coffee Bay.

The department remains committed to have a rapid response to potholes, two days for temporary repair and two weeks for permanent repair.

There are currently nine Area Wide Maintenance Contracts (AWMC) and five of those were initiated in the current financial year. The maintenance programme has already yielded 1 442 new job opportunities. Madam Speaker, in line with the mission and vision of the department, the focus for the 2007/08 financial year will be in the development, restoration and maintenance of the provincial network.

The total provincial network is 43 465 kilometres of which 5 102 kilometres are surfaced and 38 363 kilometres are gravel. In response to this challenge, the department will start next financial year with a 10 year plan to change the ratio of surface to gravel roads, with 80% of the 43 465 kilometres to surface and 20% to remain gravel. Due to the scarcity of quarry material, alternative surfacing technologies will get a stronger focus in this plan. The plan will also promote labour intensive methods for job creation.

This initiative will be supported by the substantial recapitalisation of the yellow fleet over the next 10 years.

The department is busy restoring its own internal capacity through creating centres of excellence in Graaff Reinet and Grahamstown. The primary focus of these centres will be the transfer of skills to both in-house maintenance and construction units as well as to communities.

These will serve as the fountain of technical, technological and engineering advancement for both the department and communities, as they would focus on labour-intensive methods of construction (EPWP) and mentoring of internal resources.

This concept is in line with the PGDP objectives as it would give content and effect to government's overall strategic objective of developing human capital to meet the acute shortage of technical and entrepreneur skills.

The department's project and programme management capacity will be enhanced by means of undertaking structured internship and learnership programmes. The successful interns and learners will then be appointed should vacancies exist. The department's bursary holders will also get hands-on experiential training and sharpen their project management skills at these centres.

Programme three: Public transport

Honourable Members, towards realising government priorities, we have made great strides in integrating our planning vertically with the different spheres of government and horizontally with other provincial departments and national authorities operating in the province.

At national level we continue to interact through Minister and MEC's Forum (MINMEC) and its supporting structures under the national Department of Transport.

The department is responsible for administering the Urban Transport Act in the province and serves on all three metropolitan transport advisory boards established for the three declared metropolitan transport areas i.e. Nelson Mandela Bay, Buffalo City and Mthatha. Transport planning for 2010 is an important item on the agendas of these Boards' meetings.

Madam Speaker, during the year under review the Executive Council approved a submission by the department for the establishment of intergovernmental transport co-ordination structures in the province as required in terms of the National Land Transport Transition Act.

These structures recognise the important roles that transport forums at local and district level must play in our planning and implementation processes. The Transportation Forums will be implemented in co-operation with the relevant authorities in the coming financial year under Programme five.

The integration and updating of our plans to ensure that the provision and maintenance of strategic transport infrastructure responds to the most urgent needs of the travelling public is an on-going process and will remain a challenge in years to come as the needs far outweigh the available resources.

The National Land Transport Transition Act (NLTTA) stipulates that the MEC responsible for transport in each provincial government must prepare a Provincial Land Transport Framework (PLTF) for a five year period in accordance with the transport requirements prescribed by the Minister of Transport.

The main purpose of our first PLTF produced in 2002 was to guide and direct land transport planning and implementation in the province by providing a framework for preparation of Integrated Transport Plans (ITPs) required from planning authorities by the NLTTA. After completion of ITPs by the six district municipalities and the metro in the 2005/06 financial year, the department embarked on the process of updating the PLTF in the 2006/07 financial year to incorporate the information obtained from the ITPs.

The Provincial Transport summit held in East London from 20-21 April 2006, which was attended by over 600 delegates from 105 organisations and institutions, provided an ideal opportunity for input from our stakeholders and recommendations from the summit have been incorporated into the updated PLTF.

On that note, Madam Speaker, I would like to inform this House that according to the National Department of Transport, the Eastern Cape is the first province in the country to have completed its updated PLTF.

This framework was one of the key planning documents used by the department to prepare an Integrated Roads and Transport Master Plan (tabled here today) as a first attempt to integrate the infrastructure asset requirements following the merger of the roads function with transport to form the combined Department of Roads and Transport.

The plan also includes the transport related infrastructure, not directly the responsibility of the department, so that we may be in a better position to work together as different authorities for the betterment of transportation in the province. The plan will be reviewed on an annual basis as part of the department's strategic plan to take account of new and updated data and service delivery requirements.

Honourable Members, the Taxi Recapitalisation Project is progressing very well in our province. We were the third province to launch the process of scrapping old and unsafe taxi vehicles. Since 14 December 2006, 714 vehicles have been brought to the Provincial Scrapping Centre in Zwelitsha for scrapping purposes and 527 operators have already received their incentive of R50 000 per operator. This figure translates to well over R26 million that has been paid out to taxi operators.

In terms of MINMEC resolutions, as provinces we are required to assist the taxi industry in the transformation process which is aimed at fast-tracking the recapitalisation programme. In this regard, the department has allocated R2 million in the 2006/07 and again another R2 million during the 2007/08 to the provincial South African National Taxi Association Council (SANTACO) structure for their professionalisation through setting up offices in all six districts. An agreement for reporting and accounting purposes has been signed between the provincial SANTACO structure and the department.

Madam Speaker, in our midst we have the newly-elected provincial leadership of SANTACO led by Mr Goqoza.

We are co-operating with the Department of Labour in rolling out a project whereby taxi drivers will be working for salaries and in eight hour shifts. This project will bring socio-economic security to the families of such employees together with the stability in the public transport industry and completely transform public transport.

To ensure that we remove unroadworthy public transport vehicles from our roads (taxis, buses), the department has trained and appointed 25 Road Transportation Inspectors, focusing on public transport operations. These inspectors have been deployed in all our districts and we will continue to appoint more inspectors when more funds are available in the outer financial years as reflected in our department organisational structure.

With the declaration of Port Elizabeth as the main venue for 2010 FIFA World Cup, and East London and Mthatha as possible training or base camps, it means that we need to accelerate the provision of transport infrastructure that would meet world-class standards.

In an effort to concretise our integrated public transport strategy, the department will host a summit on Public Transport Readiness for 2010 at Port Elizabeth in October 2007. I would like to extend an invitation to all Honourable Members to this summit.

With regard to the establishment of Africa's Best 350, a single legal entity established by small bus operators, the department has decided to implement this project in three phases over the next three years.

The first 55 buses will arrive on 1 July 2007 and will be distributed to the Alfred Nzo and OR Tambo districts. This means 21 more routes will be opened, which have not been operated in the recent past. It will further enhance the access of the communities to job opportunities, health and education centres and other trip generators by more than 25% compared to what it is today. This phase will demand a subsidy of R30 million.

The second phase will take off in April 2008 with 56 buses that will be distributed to the Amathole and Chris Hani districts. The last phase of distribution of another 55 buses is expected in April 2009 with more buses for the Alfred Nzo and OR Tambo districts.

When all three phases of 166 routes are implemented, the subsidy would amount to approximately R73 million per annum and I would like the Honourable MEC for Finance to take note of this fact for the future.

The process of restructuring Mayibuye Transport Corporation so that it can become a viable corporation is progressing well. As part of the restructuring of the corporation, I have appointed a new Board of Directors under the Chairpersonship of Mr PLC Maseti and I would like to welcome him and his Board here today. I am also tabling the strategic plan and Annual Performance Plan of Mayibuye here today.

The department is engaged in discussions with the Buffalo City Municipality with the view to integrate Mayibuye's services with that of Buffalo City to improve the viability and sustainability of the service. All this will be done in terms of the Buffalo City Public Transport Plan.

The allocation to Mayibuye for 2007/08 amounts to R32,565 million which includes a further amount of R5 million, ring-fenced for capital expenditure. The main aim of the capital funding is to upgrade the bus fleet of the corporation. During October Transport Month in 2006, we launched seven new Mayibuye buses plus 10 auxiliary vehicles which were purchased from the capital funding provided to the Corporation last year.

The department is intimately involved with the restructuring of public transport within the Nelson Mandela Bay Municipal area in terms of their public transport plan. In broad terms this project entails close co-operation between Algoa Bus Company, Small Bus Operators in the area and the taxi industry. All the relevant parties are participating in this initiative.

Honourable Members, with regard to civil aviation I am humbled to inform this house about the progress that we have made in our efforts to restructure our Bhisho and Mthatha Airports and our airstrips through the Blue Skyway Aviation Strategy.

The objectives of this strategy are:

* to ensure adherence to the National Policy (White Paper on Civil Aviation of March 2005), where it is stated that government should not be involved with operating airports, but should encourage private sector involvement. Government, however, remains responsible for ensuring that airports contribute to the socio-economic development of the area
* to reduce the financial cost on the provincial government
* to enhance usage of our airports
* involve the private sector, particularly the small-medium and micro enterprises (SMMEs), by outsourcing services or airport's management.

The presence of the South African Police Service (SAPS) Air Wing has already improved movements and activities at the Bhisho Airport. Since the launch of the Blue Skyway Aviation Strategy in October 2006, the movements have improved at the airport from an average of 13 movements to 67 per month.

Furthermore, 43 Air School which is based at Port Alfred is expanding its training programme to Bhisho Airport. On that note Madam Speaker, I would like to welcome the management of the school and some of its trainee pilots to this house today.

Honourable Members, as a result of this move we are busy renovating and upgrading of airport. A complete renovation and upgrading of this facility is estimated to cost the Department R68 million over the Medium Term Expenditure Framework (MTEF). Working with our provincial Department of Public Works, a contractor is already on site and the upgrade of this airport is expected within 24 months.

Mthatha Airport is currently being evaluated by the national Department of Environmental Affairs and Tourism with a view of upgrading it for tourism purposes. Consultants have been appointed and we are waiting for them to complete their work. The department has purchased two new fire engines worth R2,5 million to improve the emergency capacity of the airport and to apply for Category six licence in order to attract larger aircraft, as it is currently a Category four Licence. This year, we will further procure two ambulances for the two airports as per Civil Aviation Regulations.

In an effort to promote aviation in the rural areas of our province, the department will increase its focus on the development of municipal and rural airstrips. To this end, Ndlambe Municipality will be assisted with R8 million over two years to upgrade the runway at Port Alfred. The Senqu Municipality will be assisted with the development of an airstrip at Rhodes to the value of R2 million.

Madam Speaker, today I am happy to announce that Kei Rail Passenger Service operations will be launched on 29 March 2007 and I would like to invite all Honourable Members to that important function, which will be held in Butterworth. It will cost commuters R25 each to travel between East London and Mthatha on Fridays and Sundays.

In the near future, this passenger service will feature a services train concept (similar to Phelophepha), whereby clinical or medical services, dental care and optometric services as well as other government services, will be offered. Commuters will access government information, including social grants registration, etc.

The freight service, which is a major reason for the revitalisation of the line, is expected to commence in 2008. Presently, the department is engaged in discussions with possible investors on that particular service. This coming year, the department will spend R27 million on the Kei Rail line. Of this amount R6 million will be spent on operations and R21 million on track maintenance.

We will further investigate and partially implement a daily service from Viedgesville to Mthatha on the Kei Rail line. This will be a daily commuter service for the Mthatha Area.

Honourable members, this year will see a lot of rail projects starting in this province, including the development of a Provincial Rail Plan, which will guide us in our Back to Rail Strategy this year. The department has allocated R4 million for this plan, which will look at the possibility of linking Kokstad and Mthatha by rail and introduction of rail passenger services to the Western Suburbs of Port Elizabeth and services into KwaZakhele before the 2010 World Cup.

We are still engaged in discussions with the South African Rail Commuter Corporation (SARCC) concerning the Motherwell loop in order to have it in operation well before the 2010 event. The link between Kokstad and Mthatha will be investigated as a rapid rail link which will ultimately allow a link between East London and Durban within the next 10 years.

All the lines within the Eastern Cape province will be investigated for their tourism potential. A task team has already been set up to look at the terms of reference for the service provider to assist us in this Rail Tourism Plan. We are investigating the possibility of introducing a train tourism service further up the Langkloof and in Somerset East and Graaf-Reinnet.

These projects will ultimately create the well required job opportunities.

We have allocated R10 million for the upgrading of the Narrow Gauge line (Port Elizabeth Avontuur) as we intend to commence the operations in 2008. This year, the department, in consultation with relevant stakeholders, including the Department of Sport, Recreation, Arts and Culture, will ensure that we bring back the Great Train Race in this line.

The department has further allocated R4,8 million for the revival of the East London�Alice passenger service. Of this amount, R1,8 million will be used for train operations and R3 million for infrastructure rehabilitation, including construction of stations.

This service is expected to start in June 2007, but it will be preceded by a passenger service targeting civil servants between East London and King Williams Town, which will be launched on 10 April 2007.

We will further embark on a Rolling Stock Refurbishment Process and the following budget has been allocated:

* locomotives � R6 million
* coaches � R6 million
* wagons � R6 million.

The department is also committed, through its back to rail strategy, towards the Kei Development Corridor. In this regard, the role that is played by the East London Port is critically important for the seamless integration of the first and second economies of this region. The department, in the next financial year, will actively support the Port expansion in East London.

The department will continue with its objective of enhancing the use of non-motorised transport in the Province especially in the remote and marginal rural areas that are inaccessible by conventional motorised transport.

This will be achieved through:

* promotion of non-motorised infrastructure
* distribution of non-motorised mode of transport � 5 000 bicycles worth R5 million, six animal drawn wagons worth R2,3 million.

Further research on appropriate non-motorised technology to alleviate provincial needs will be explored.

Programme four: Traffic management

Honourable Members, in order to assess the safety of our roads, road safety audits are carried out each year on different roads. We planned to audit 200 kilometres of surfaced roads in 2006 and in fact audited 236 kilometres on the R330, R331, R51, R396 and R397. A further 250 kilometres will be audited in the next financial year.

Over the years some of the speed limits posted on provincial roads have been questioned. We have a programme of checking speed limits for their applicability. In 2006 we intended to check 500 kilometres of road but in fact assessed 1 055 kilometres. In 2007 we intend to check a further 500 kilometres and implement changes where necessary.

Madam Speaker, road signs are vital for warning and regulating traffic, but also for assisting motorists in navigating safely to their destinations. In recent years, a series of tourism routes have been signposted. We completed the Wild Coast Jikeleza route and assisted the Amathole Heritage Initiative in designing their four heritage routes last year. Road signs have been replaced on an ad hoc basis in the past, but in the new financial year a sign replacement programme will commence along the provincial routes. Furthermore, we will work with the Mbashe Municipality which requested assistance with their heritage tourism signs.

As intended, a network of 21 permanent traffic counters were constructed during 2006 at a cost of R1,2 million and these are all operational. Together with these, 180 short term counts were carried out. Along with the permanent stations, a further 200 short term counts will be done in the new year as part of our programme to know the volumes of traffic using our roads.

Madam Speaker, road safety continues to be a major challenge in our province. A number of new initiatives are planned for the new financial year in conjunction with private partners. We will embark on a road safety project, which entails erecting a minimum of 150 signs with specific road safety messages along the R61 from Port St Johns to Port Edward. This will be a pilot route and we intend to roll out the programme to all provincial routes where accidents are occurring.

In order to build Road Safety capacity and improve service delivery, we will engage youth and offer a learnership programme for 37 students that will be recruited in all six districts within the province.

As a way of expanding the Maths and Science project, we will pilot a learner driver education project for Grade 12 learners so that when they leave school they already possess the required basic skills to be competent drivers with proper attitudes for driving on a public road.

Honourable Members, last year I indicated that the department intended to construct a Vehicle Testing Station at Mount Frere. We will be officially handing over this facility to Umzimvubu Municipality on 23 March 2007.

At Lusikisiki, a site has been handed over to a contractor for the construction of another Vehicle Testing Station and this is expected to be completed by March 2008 at a cost of R8,1 million. Two Grade E Drivers Licence Testing Centres were registered in 2006 and are now operational. These are at Intsika Yethu and the Sundays River Municipalities. In the coming financial year, we will upgrade testing centres in Elliot, Peddie and Sterkspruit at a cost of R6 million.

Honourable Members would recall that last year I reported that the South African Post Office had opened 31 outlets within the Nelson Mandela Bay Metro for the registration of Motor Vehicles. Today, I am pleased to report that revenue collection from this area has improved tremendously since the transfer of this function from the Municipality to the Post Office.

As a result, I intend to expand the use of the Post Office for motor vehicle registrations and licensing utilising a Best Practice Model in conjunction with Business Against Crime to another two Registering Authorities in the province this year. This Best Practice Model is to be incorporated and inclusion of Batho Pele Principles will be in the service level agreements that the department will renew with all registering authorities as from 1st April 2007. Improved service delivery will be monitored on a regular basis.

The National Traffic Information System (NaTIS) Helpdesk has been restructured to conform with this Best Practice Model. Staffs have been trained, an additional nine personnel have been appointed and the operations have improved. A training and security officer has been appointed to improve service to the public.

Honourable Members, traffic law enforcement is one of the critical prerequisites in order to provide safe passage for road users in this province, especially now that we are preparing for 2010.

Last year, I reported that thirty new traffic officers had assumed duties. Today, I am glad to report that with the addition of another 42 officers the staff complement is now up to 383. An additional 50 bursary holders are currently undergoing training which will be completed by the end of June 2007.

Madam Speaker, I would like to acknowledge the presence of 34 new female traffic officers, who received bursaries from the department and joined us in December 2006. More bursaries will be allocated to another 50 trainee traffic officers due to commence training in July 2007.

In pursuit of law enforcement, I am glad to report that we have increased the number of our speed measuring devices from 48 to 54. We intend to buy a further 24 speed measuring devices.

In addition to these, we have purchased 12 breath alcohol testers worth R960 000. An additional three K78 trailers equipped with road block resources brought this number up to twelve at R647 000. Another eight of these equipped trailers will be purchased in the new year. Six trailers of portable vehicle weighing screeners and six prolaser speed checking devices have been ordered.

With regard to our arrive alive campaign during the last festive season, in general, the campaign has been labelled as a success on both national and provincial levels due to co-operation between the different role players.

However, our province experienced several serious crashes with 96 fatalities in December 2006 and January 2007 compared to the 90 for the previous year, an increase of six. A total of 343 accidents were recorded as compared to 282 for the previous year, an increase of 21.

In the coming year the Arrive Alive Plan will endeavour to provide a seamless, national enforcement plan that responds to the demands of prevailing circumstances in an effective way.

The focal areas will be:

* driver fitness with emphasis on their documentation
* fatigue and alcohol abuse
* moving violations including illegal use of cell phones while driving
* passenger and freight transport
* vehicle fitness and registration plate enforcement
* pedestrian safety.

There will also be media campaigns with more emphasis on the use of seat belts, especially rear belts.

The department will purchase a booze bus to prosecute drunken drivers.

Programme five: Sakha Isizwe Community-Based Transportation Programme

Madam Speaker, last year I indicated that the Department of Roads and Transport would set-up a new Programme called Community Based Transportation with a budget of R84,5 million. This programme is in line with the Provincial Growth and Development Plan, Accelerated Shared Growth Initiative of South Africa (AsgiSA) and EPWP objectives, which include skills acquisition through empowerment of communities, poverty alleviation and emerging contractor development, among others.

The Programme is now known as Sakha Isizwe Community-Based Transportation Programme.

Out of R84,5 million stated above, R48 million was distributed among the six districts of the province for job creation on EPWP projects. As a result 1 759 people were employed temporarily, of which 760 of them were women, 596 youth and three persons who are physically challenged.

The remainder of the R84,5 million was spent on the following programmes:

* Sakha Isizwe Household Contractors (1 995 Household Contractors)
* Urban Renewal Programme (Motherwell, Mdantsane and Ngangelizwe)
* Integrated Sustainable Rural Development Programme (Umzimkhulu which will be handed over to KwaZulu-Natal (KZN) in the new financial year).

Honourable Members, the main aim of Sakha Isizwe Community Based Transportation Programme is to institutionalise and guarantee a more balanced transportation system throughout the Eastern Cape Province, and at the same time, to create new work and business opportunities for the disadvantaged communities.

To achieve the above, Sakha Isizwe Community Based Transportation has the following projects to implement during the new financial year 2007/08:

* transportation forums
* upscaling of EPWP projects in the roads sector
* Sakha Isizwe household contractors
* Sakha Isizwe Learnership Programme in the transport sector
* alternative means of roads surfacing
* impact assessment of projects.

Honourable members, in the new financial year the department will revive the inactive Transportation Forums as well as establishing new ones where they do not exist. Through the establishment of Transport Forums, the department recognises that the vast majority of South Africans, especially rural and peri-urban people, encounter serious barriers to participation in programmes that could result in their social and economic upliftment.

Madam Speaker and the Honourable members, I am happy to announce that this department has successfully canvassed and subsequently acquired additional funding totalling R96,88 million for Scaling up of EPWP projects in the roads sector through submission of a business plan to national government. This amount is for 2007/08 financial year and provision will be made for the two outer years as well. This allocation is in response to AsgiSA and second economy intervention in that it addresses job massification.

Through this allocation the department will be able to strike a balance between the neglected poorly serviced lower order roads and both provincial and national roads.

With a total amount of R80,6 million, the following capital projects will be implemented in the next financial year using the 'upscaling' approach:

Madwaleni Hospital Road, 13 km, R5 million
Zithulele Hospital Road (1st Phase), 10,5km, R20 million
Transkei Quarries, 3,2km, R10 million
Greenville Access Road, 13km, R7 million
Winterstrand, 4,5km, to be done next year
Mngqesha Great Place, 3km, R5 million
Debe Nek to Glenmore Road Project (1st Phase), 63km, R16,3 million
Nonkcampa to Zalara; Gobozana T-junction to Dimbaza Road, 42km, R2 million
Stutterheim via Mgwali to Tsomo Road Project (1st Phase), 90km, R0,3 million
Qacha's Nek, R8 million
Urban Renewal Lusikisiki, R7 million

With a total amount of R16,28 million, the following Sakha-Isizwe Routine Road Maintenance Programme using the 'upscaling' approach is as follows:

OR Tambo 535km: R3 million
Amathole 640km: R3 million
Chris Hani 278km: R3 million
Ukhahlamba 49km: R1,7 million
Alfred Nzo 418km: R3 million
Cacadu 350km: R2,58 million

Madam Speaker, this project has been operating in five districts in the current financial year with 1 995 household contractors. It will be extended to the sixth district which is Cacadu and it will increase the number to 5 000 household contractors for 2007/08 financial year. Present here today is a sample of the household contractors.

Honourable Members, the Learnership Programme has been developed to build capacity (Business and Professional / Technical skills) among the emerging contractors to execute the increasing amount of labour intensive work that should be part of EPWP:

* Sakha Isizwe learnership programme responds to PGDP, EPWP and Accelerated and Shared Growth Initiative for South Africa (AsgiSA)
* contributes to addressing the skills shortages in the country thereby giving effect to AsgiSA
* is a practical and empowering method to impart theory to a learner and at the same time provides the person with opportunity to gain work experience.

The learnerships referred to above are at level NQF Level 2 (Business Skills) and NQF Level 4 (Technical Supervision) of labour intensive methods of construction in civil engineering field.

Madam Speaker, out of Sakha Isizwe Learnership Programme the following has been achieved:

* establishment of 10 learner contractors and 20 supervisors in the following nodal areas
* Mdantsane Township Zone 15 near East London
* Ngangelizwe Township in Mthatha
* the programme is linked to the contractor grading system of the Construction Industry Development Board (CIDB), thus encouraging and supporting small contractors to emerge into medium sized firms (respond to SMMEs)
* Sakha Isizwe Learnership Programme has managed to recruit 100% (30) historically disadvantaged individuals, 100% (30) youth and more than 60% (18) female learner contractors
* although the learners are concentrated into Urban Renewal nodal areas (i.e. Mdantsane and Ngangelizwe Townships), the learners themselves have been selected from different areas of the province
* 220 temporary jobs have been created within this programme during the 2006/07 financial year
* this programme has created access to finance, thus facilitating development for financial track-record for the learners through ABSA. The department has a memorandum of understanding with ABSA, to continue with financial support and advice to the existing learners
* the department entered into a four months negotiated contracts with the current learnerships amounting to R8,7 million for 2006/07 for work experience.

Madam Speaker, I would like to take this opportunity to introduce to this House the beneficiaries of our learnership programme. While the Programme continues with the current learnerships, we plan to identify 45 new learners, who would be spread proportionally throughout the province.

Madam Speaker, in view of the high costs of surfacing roads, as well as the fact that appropriate materials to use as a base course in the surfacing of roads are running out, the department has decided to explore alternative cost effective methods of roads construction and maintenance by making use of soil stabilisers. This will be piloted at Eludondolo Irrigation Scheme access road in Mbhashe Local Municipality near Dutywa. All technical requirements regarding the pilot roll-out have been completed and the contractor is on site.

Honourable Members, the department has noted the number of drowning incidents that occurred at various locations in the province.

We are currently reviewing a number of options, namely:

* providing boats to cross rivers
* providing pedestrian crossing over the rivers.

We will pilot the first option in Port St Johns with two boats that would service the Mzimvubu River crossing. The second option will be piloted in the same area and Kei Lands in Cofimvaba with an amount of R6 million (with R3 million each).

Madam Speaker and the Honourable members, with all the good intensions about the programmes stated above, without assessing impact, all efforts become in vain. To address this situation the department is in the process of developing an impact assessment tool which will be used to assess the impact both socially, economically and otherwise.

The Programme plans to identify Further Education and Training (FET) colleges to develop and offer accredited technical, labour intensive methods of construction as well as business training programmes that will be offered at our Centres of Excellence (widely known as Construction Units) in Graaff-Reinet and Grahamstown.

Madam Speaker, I table here today, the following documents:

1. My policy speech 2007/08
2. The revised Strategic Plan and APP for the department
3. Mayibuye Transport Corporation's strategic plan and Annual Performance Plan
4. The Standards Manual and Service Delivery Improvement Plan of the department
5. The Integrated Roads and Transport Infrastructure Master Plan.

Issued by: Department of Roads and Transport, Eastern Cape Provincial Government
15 March 2007