Date: 24 June 2008
Source: Gauteng Provincial Government
Title: SA: I Jacobs: Roads and Works Budget Speech

Comrade Speaker and Deputy Speaker
Comrade Premier and MECs
Honourable MPLs
Representatives from local government
Heads of Departments, government officials and leaders of our parastatals and agencies
Leaders from the public transport industry and from commuter organisations
Leaders from the construction industry
Business and community leaders
Distinguished guests
The people of Gauteng

Introduction

Comrade Speaker,
I hope that you, our honourable Premier, MECs, MPLs and our distinguished guests will allow me to break from tradition in delivering this final budget speech for this term of governance.

I want to start this speech by expressing my immense respect for all my staff in the Department of Public Transport, Roads and Works. It is only through their dedication, commitment and hard work that our department can boast its achievements. Thank you, Head of Department and all senior managers of the department and our entities, for your capable leadership in ensuring that we do indeed translate all of government's policies into tangible programmes that ultimately result in improving the daily lives of all in Gauteng.

Honourable Speaker and MPLs, the oversight role performed by you as the Gauteng Provincial Legislature has ensured that we remain transparent and accountable in our delivery of services. It has ensured that we practice good governance on a daily basis and has fore-grounded additional challenges that we had to address to ensure speedy, relevant and effective service delivery. For this input into the work of the department, my staff and I thank you.

The collective strategic and political leadership provided by our provincial Executive Committee served as a beacon, guaranteeing that my department contributes to reducing poverty and unemployment, creating jobs and facilitating long-term sustainable and equitable social and economic development.

Honourable Premier and fellow MECs, thank you for assisting us to prove that "Together we can and we will do more, better!" as stated in the ANCs 2004 Election Manifesto.

Honourable Premier and Speaker,

The ANCs 2004 Election Manifesto also said that we will build "a society that truly cares". It is thus with a certain heaviness in my heart that I respectfully ask us all to stand and share in a minute of silence in respect of all those who lost their lives and their homes in the recent unacceptable xenophobic violence that serves as a blot on our landscape of many achievements to date.

Minute of silence.
Thank you.

Overview of the 2008/09 budget

The People of Gauteng,
From 2004 to date, Gauteng Provincial Government has invested just over R23.3 billion for the sole purpose of increasing social and economic growth that will result in a better life for all, through the mechanisms of provision of transport, implementation of Capital Expenditure (CAPEX), Expanded Public Works Programme (EPWP) and other infrastructure development programmes. Since construction of the Gautrain began in 2006, R13,8 billion of the total allocation has been directed at this specific special project. The incremental annual increase in my department's budget from R1,7 billion in 2004 to the R 7.6 billion entrusted to us for the 2008/09 financial year is intended to ensure that "together we can and we will do more, better".

During 2008/09, my department will expand R4.7 billion on further implementation of the Gautrain project; approximately R1.6 billion on the provision of public transport and road infrastructure; a further R 1 billion on implementation of CAPEX and EPWP projects and R300 million on administrations. My department comprises of five branches and five trading entities. The collective outputs of this structure contribute to achievement of the department's six strategic objectives which is directly responsive to the political priorities set by GPG for this term of governance.

From 2004 to date: pushing back the frontiers of poverty; facilitating economic growth, job creation and employment.

Comrade Speaker and honourable MPLs,
As you know, at the beginning of this term of democratic governance, GPG committed to:
* enabling faster economic growth and job creation
* fighting poverty and building safe, secure and sustainable communities
* developing healthy, skilled and productive people
* deepening democracy and national building and realising the constitutional rights of our people
* building an effective and caring government

As we enter the last year of the current term of governance, I am honoured to report that my department has indeed delivered against each of these priorities.
In the past four years, we have created over 15 000 jobs through public works, road infrastructure and maintenance, and EPWP projects. Our job creation interventions always target the more marginalised sectors of society; namely women, youth and people with disabilities. The youth of our province benefited the majority of these jobs. Although we need to improve the number of jobs that we create for people with disabilities, I am still proud to say that our EPWP projects on their own created jobs for just over 1 200 people with disabilities.

These figures exclude the jobs created through our awarding of contracts to Broad Based Black Economic Empowerment (BBBEE) and Small, Medium and Micro Enterprises (SMMEs). One thousand six hundred and eight seven (1 687) BBBEE companies and 1 139 SMMEs were awarded contracts by the department. The value of these contracts amounts close to R4 billion in the case of BBBEE and R2 billion in the case of SMMEs. I am sure I do not need to spell out that the awarding of these contracts and the value thereof has also enabled faster economic growth on a broader level. Additionally, construction of Gautrain has, in 2007/08 alone, spent R1,89 billion in procurement and sub-contracting to BBBEEs and SMMEs.

The purchasing of South African materials, plant and equipment amounted to more than R550 million. 4 700 local direct jobs and 25 400 direct, indirect and induced jobs were created in 2007/08, from implementation of the Gautrain Project. Our job creation, SMME and BBBEE figures combined with approximately 2000 people we have trained in EPWP and public transport projects has undoubtedly contributed to enabling faster economic growth and job creation as well as to developing healthy, skilled and productive people.

The successful completion of over 80 CAPEX projects has resulted in an increased number of people in Gauteng having access to health, education, social development, sport and recreation, tourism and agricultural services. It is such infrastructure development that fights poverty and builds safe, secure and sustainable communities and that deepens democracy and national building and realises the constitutional rights of our people.

Honourable members,
The innovative management and operational systems and processes that my department established have ensured that we contribute to building an effective and caring government. All our interventions, from establishing project management resource groups to improve and speed up delivery of CAPEX projects, to the development of internal operational charters and policies, have been driven and informed by a deep seated commitment to Batho Pele and other service delivery principles that focus on the beneficiary or customer's needs. Our management and operational systems do not only reflect compliant expenditure of our budget. It also reflects the department's ability to significantly contribute to provincial coffers through the collection of taxable and non-taxable revenue in the form of license fees and rentals for leasing of GPG property.

In the past four years, our Department has collected just over R4.6 billion in revenue. This also indicates that "together we can and we will do more, better" as a caring and effective government. The numerous achievements of the Department for the past four years are reported to you every year when we table our Annual Report for each financial year. However, I take this opportunity of presenting my budget speech in the final year of this term of governance to reiterate some of our other noteworthy achievements. We have procured 22 buildings for the GPG / Kopanong Precinct; established three construction contact centres; successfully hosted an intergovernmental infrastructure summit; improved our management of GPGs property portfolio, and are in the process of completing construction of the province's 2010 stadiums, together with the Department of Sports, Arts and Culture.

Our provision of public transport services includes a fully functional public transport information call centre; the completion of a Gauteng Strategic Public Transport Network; implementation of a Public Passenger Liability Insurance, the taxi recapitalisation programme; Intelligent Transport Systems (ITS); modal integration initiatives and adoption of a Strategic Agenda for Transport.
Gautrain has been integrated into the overall provision of public transport in the province through municipal level ITPS, spatial frameworks and approved development schemes. Inter-governmental co-ordination structures and task teams have been established. The construction of Gautrain has registered remarkable progress during the 2007/08 financial year, the result of several initiatives that have been put in place to address challenges and delays experienced since the effective date of the concession agreement. For example, the Gautrain Management Agency (GMA) has been established.

The GMA is tasked specifically with project managing implementation of this important provincial growth and development project. The opening of a third production line, acquisition of a third launching girder, the introduction of additional work shifts at many constructions sites are some of the operational and management steps taken to address issues that delay construction. Road construction and maintenance has continued. Last year alone, we constructed 15 km of public transport corridors, upgraded an equal number of kilometres of gravel road to tar and constructed 22 roads in the 20 townships.

Going forward

People of Gauteng

My department and I pledge to continue building on our achievements of the past four years. We will intensify our efforts to improve and speed up our pace of delivery and we will continue to design and implement all our projects with the sole purpose of growing the economy and reducing poverty and unemployment in Gauteng province. We will continue to broaden access to constitutional rights through our public works, transport and EPWP projects. This will also be done in a way that builds safe, secure and sustainable communities.

At a Lekgotla held in April 2007, the Gauteng Provincial Executive Committee decided to prioritise three key areas from its five year plan. These are Building Gauteng as a Globally Competitive Region (GCR); implementing the Gauteng Social Development Strategy and Building the capacity and organisation of the State.

Building Gauteng as a Globally Competitive Region

The policies and projects of our transport and public works branches are already aligned to Building Gauteng as a Globally Competitive Region. An integrated transport system is an indispensable component of promoting and building Gauteng as a GCR in that integrated transport systems usually share some infrastructure elements, such as communications, navigation, and information systems. The goal of the integrated system is to economically move people and goods, on time within the service area or region. The transport system not only supports economic development. It also helps shape the use of land, and connects homes, jobs, recreation, and services equitably and basically creates a nexus between economic nodes and public transport corridors.

Honourable MPLs, the planned route for Gautrain already integrates and links the three municipal areas of Tshwane, Johannesburg and Ekurhuleni. In this financial year we will establish and launch the Gauteng Transport Management Authority (GTMA) which will serve as the province's single transport authority. Through the GTMA, we will ensure integrated planning, provision of technical assistance, resource management, financial sourcing and the setting of transport management standards that will implemented by all transport stakeholders across the province, and in the context of Building Gauteng as a GCR, across municipal boundaries. Furthermore, our Strategic Public Transport Network, implementation of Gauteng's Transport Action Agenda; the Intelligent Transport System and of the Freeway Improvement Scheme in partnership with South African Road Agency Limited (SANRAL) are all elements of the integrated transport system necessary for Gauteng to be a GCR.

The R1,6 billion allocated to the transport branch and the R4,7 billion allocated for further implementation of the Gautrain project will be utilised to entrench these initiatives. One just has to drive through the streets of Johannesburg and Tshwane to see the incredible progress we are making on Gautrain. Slowly but surely the dream is becoming a reality. You may recall that in 2006, the Gautrain Rapid Rail Project was one of four major infrastructure projects in Gauteng that succeeded in receiving grant funding form the Department of Labour's National Skills Fund (NSF). The Gautrain project was awarded a grant of approximately R23 million. In October 2007, the first tranche of this grant amounting to R3,6 million was deposited into the GPTRW's account.

The second tranche of R 6.6 million will be received in this financial year. The NSF / Gautrain project has managed to achieve the spending and training targets as specified in the original business plan despite the 12 month delay in the commencement of the project. In fact, the total number of 1506 people that have been trained exceeds the targets set in the original plan. Gautrain's training interventions has been concentrated in the construction sector. The track-laying, electrical, mechanical, operation and maintenance will be receiving increased attention from this point forward. 35 candidates have been identified in the electrical / mechanical field and their training will commence in July 2008. They will be trained in the operation and management of the feeder bus fleet.

There are also plans to co-operate with the EPWP in the training of artisans and the practical training of graduates in the various fields of civil, mechanical and electrical engineering. Bombela has currently registered 19 women learners on a 16 month learnership Certificate in Roadwork Construction accredited by the Construction and Engineering Training Authority (CETA). In association with Murray and Roberts Cementation, Bombela are currently providing learnership trade opportunities to 9 Women learners towards certificates in Blasting, Millwright/Fitting and Turning/Diesel mechanics. Gautrain has also sponsored over 90 women learners in the business management and engineering fields at various Further Education and Training (FET) and Academic Institutions in Gauteng in 2007.

Comrade Speaker,

The budget of the transport branch will also be used for related activities such as construction of new provincial roads; increasing the capacity of and maintaining existing provincial roads and piloting of the integrated ticketing system. The integrated ticketing system serves the dual purpose of preparing for 2010, and forms part of the 2010 transport plan developed by the department.
The need to ensure that the provision of transport does indeed improve the quality of people's lives remains high on the agenda of the department. We will thus continue to surface all gravel roads in the 20 identified townships, implement the revised EPWP framework that provides for road maintenance to be implemented as EPWP projects, and enhance the operations and efficiencies of the Driver License Testing Centres (DLTCs) and Vehicle Registration Authorities.

In this financial year we will begin construction of P126-1 which is the Pinehaven interchange; R558 (K15) in the Soweto area and the P66-1(N14) which leads to Laudium. Additional access and mobility from previously disadvantaged areas will be increased through construction of Road K15 between Protea Glen and Leratong, and between the Laudium and Krugersdorp freeway. We are investing R138 million in the K15 Dobsonville road which will be completed in 2009, and an amount of R112 million on the R55 from Laudium. The Laudium Road will run for the next two years to completion. The R21 million we will invest in the main road in Kyalami will bring this project to completion in this financial year.

We will further promote the use of public transport through implementation of Car Free Day and Public Transport Month; the introduction of new public transport modes and services; continued implementation of the taxi recapitalisation project; and implementation of tendered bus contracts. The negotiated contract for the sale of North West Star bus operations will be completed and we will continue to assist our local government counterparts with the planning and implementation of the Bus Rapid Transport Systems (BRTs).

Public transport infrastructure projects have been designed for Soshanguve, Pinehaven, William Nicol, Vosloorus, Olifantsfontein, Kibler Park, Soweto Tembisa, Daveyton, Sebokeng and other areas. In the past year, Metrorail has introduced the Soweto Business Express from Naledi to Park Station; and the Tshwane Business Express from Pretoria Station to Park Station. These are beginning to operate optimally. Park and ride facilities have been introduced at selected stop stations such as Dube Station in Soweto. These initiatives are contributing to the realisation of the plan to make public transport a preferred mode of choice for the people of Gauteng.

Honourable MPLS,

During the 2008/09 financial year, we will surface 66 kilometres, of which 60 kilometres will be in the 20 identified townships, and rehabilitate 8km of gravel road. This year, we have allocated R320 million for the construction of roads in the 20 identified townships. This will bring our total spend on the 20 townships roads in a three year Mid Term Expenditure Framework (MTEF) cycle, including this year, to a noteworthy R520 million. It is expected that the backlog with roads and stormwater drainage in both Atteridgeville and Soshanguve will be cleared before 2010. We are also registering significant progress in all other townships across the province.

A further 15 kilometres of the road network will be widened thus increasing the scope for public transport usage as well as reduce congestion and gridlock on the roads. Implementation of the Gauteng Freeway Improvement Scheme, albeit in a manner intended to speed up delivery of services in this regard. Our department has signed a Memorandum of Understanding (MoU) with SANRAL which essentially appoints SANRAL as the implementing agent for the upgrading and the expansion of the network. Since the signing of this MoU earlier this year, contracts to the value of R11,2 billion covering an extensive 110 kilometres of roads have already been awarded. Two more contracts will have been awarded by July 2008. We are confident that all the current work in progress will be substantially completed by May 2010 there will be no construction related disruptions on our network during the World Cup.

Routine road maintenance will be conducted on 6 000 kilometres of provincial road. We estimate the creation of 6 800 jobs by implementing the EPWP framework for road construction and maintenance. 4 400 new vehicle licenses and 8 945 taxi operating licenses will be issued. We also plan to train 100 public transport operators with the aim of empowering and increasing the professionalism of the public transport sector. A key challenge that we must address in this financial year is sourcing the funds required for proper maintenance of the province's road. There are currently 5 223 kilometres of provincial roads, of which at least 80% needs to be upgraded and maintained.

Comrade Premier,
My department contributes to implementing the Gauteng Social Development Strategy mainly through its public works and EPWP projects. The contribution of the department's transport branch and entities such as the Impophoma Infrastructure Support Entity to this strategy is primarily in the form of the jobs created and the skills development programmes. At the same time, some projects such as the ITS of which the I3S (i.e. the integrated safety and security system) contributes to the Gauteng Social Development Strategy as much as it does to building Gauteng as a globally competitive region.

The R1 billion allocated to the public works branch for 2008/09 will be utilised, amongst other things, to begin construction of a further 47 CAPEX and the upgrade of 49 projects across the sectors of health; education; sports and recreation; agriculture; social development and emergency medical services.
These projects include the upgrading of Suikerbosrand and Roodeplaat Dam Nature Reserves to accommodate larger numbers of tourists and day visitors; and the refurbishment of the province's identified 2010 match and training stadia.

Furthermore, a total of 1 000 schools, 30 hospitals, 17 clinics, six nature reserves and 20 other GPG owned infrastructure will be maintained by the department's public work branch, in the current year. The maintenance, repairs and renovation work is completed through contracts awarded to historically disadvantaged and emerging contractors. Labour intensive methods are encouraged and the EPWP principles of job creation and skills development are incorporated into all maintenance projects.

The public works branch continuously strives to improve its project management and increase the pace of delivery of its services. Over and above existing initiatives such as the Project Management Resource Groups and Master Planning, public works has established a client relations protocol and has also begun establishing and monitoring Service Level Agreements (SLAs) with client departments. By the end of the 2006/07 financial year, 40% of the client protocol was completed and financial SLAs were in place with 40% of their clients. It is envisaged that both processes will be completed in totality at the end of the current financial year. We have completed an international tender for installing 200 new lifts and elevators for the GPG Precinct and for hospitals, to the value of R80 million. The first shipments are expected to arrive in Gauteng by the end of August 2008.

Efficient management of GPGs property portfolio is also the responsibility of the public works branch. During 2008/09, this directorate of the branch will complete the valuations and verifications of all GPGs fixed assets thus finalising the Provincial Asset Register. Lease administration and revenue management of residential, commercial and vacant land will continue. The revenue management function includes devolution of rates and taxes, billing of GPG owned properties, utilities (water and electricity) management and credit management.

We plan to complete a lease audit of all GPGs residential and commercial property lease and have already developed a vacant land schedule which will be made available to public via the department's website. Implementation of the Gauteng Immovable Asset Management Act is in process with User Asset management plans (U-AMPs) and Custodian Asset Management Plan(C-AMP) having been developed in Government Immovable Asset Management Act (GIAMA) workshops.

The public works branch will also continue to provide electro-mechanical services which ensure that the GPG is energy efficient in all its operations, as it will continue with the planning, installation and maintenance of electronic communication network systems for various departments.

People of Gauteng,

Through implementation of EPWP, the department creates short-term jobs and builds social capital by involving communities in socio-economic infrastructure development in their areas. In addition, it also contributes to skills development, thus increasing job opportunities and enterprise development. EPWP projects target youth, women and people with disabilities who are provided with relevant training and productive employment opportunities such that skills and enterprises are developed and sustained, infrastructure is developed and maintained, and local economies enhanced. In October 2007, an EPWP Women's Co-operative was formed for the clean up of public transport facilities.

EPWPs plans for 2008/09 have clear targets and timelines for the Top 20 Township programme. The programme envisages creating 2 000 jobs in 2008/09 both direct and indirect (cumulative). Approximately 2 000 people will be trained in line with the EPWP framework. Training consists of the following areas: life skills, job specific training and HIV and AIDS. Three percent of the capital budget is the minimum allocation, however over and above this three percent stipends are also paid to learners. After completion of training, these learners are allocated to projects where they utilise their skills and furthermore are paid a wage.

In line with the maintenance strategy for social infrastructure the establishment of co-ops and emerging companies utilising the EPWP principles as well as the National Youth Service is currently being developed. This will ensure the transformation and inclusion of EPWP candidates in the maintenance of social infrastructure. The National Infrastructure Management Systems (NIMS) is one such programme that will be implemented in 2008/09 in line with maintenance budgets.

Building the Capacity of the State and Governance

Honourable MPLs,

We will contribute to building the capacity and organisation of the state and governance through increasing the effective and efficient functioning of our department. The R300 million allocated to our Administration Programme for the 2008/09 financial year will be expanded on activities such as continued implementation of our turn-around-strategy and of our Public Resource Optimisation System (PROS) which includes a management dash-board and a project management and document management systems. We will also continue with implementation of our integrated HIV and AIDS, STI and tuberculosis programme for both staff and the taxi industry, the employee wellness programme, the alignment of our service delivery regions to the boundaries of the six metros in the province; the development of Batho Pele Service Delivery Improvement Plans as well as our gender youth and disability projects.

Conclusion

Comrade Speaker,

I am sure that you and the honourable members of the Legislature have noted that I have not mentioned any of the challenges that we experience. This is not because there are no challenges. It is purely because I am confident that the challenges we have identified will continue to be addressed through the political leadership and guidance of my colleagues in Exco; by myself as the member of executive council responsible for the Gauteng Department of Public Transport, Roads and Works and by my capable, determined and committed staff, including my Head of Department and other senior managers.

I thank you for the opportunity to once again, present, to the People of Gauteng, my budget speech for the 2008/09 financial year. In my speech I have highlighted only the key programmes that we will be implementing and explained how these links to the three identified priority areas from GPGs five year plan.

I conclude by reminding all present today that "a better Gauteng in the making" will be realised if we acknowledge and strive to ensure that "Together we can and we will do more, better!"

Thank you.

Issued by: Department of Public Works, Gauteng Provincial Government
24 June 2008