Intergovernmental

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Intergovernmental Fiscal Review
2001 Infrastructure development 15 October 2001
2
Overview

• Context
• Overall provincial infrastructure development
• Spending trends
• 1997/98 to 2000/01
• MTEF period
• Roads
• spending trends 1997/98 to 2003/04
• Looking ahead
• Challenges to accelerating infrastructure delivery

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Context

• Considerable backlogs
• in education, health facilities, roads, housing
• Uneven spread
• high concentration in parts of former republic
• unavailability in historically black areas
  former homelands
• Makes prioritisation much harder
• non-maintenance leads to escalating cost
• not extending to previously neglected areas has
  equity implications

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Overall infrastructure development
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Spending trends

• Pre-1997/98 period
• strong growth largely fuelled by clinic school
  building programmes
• 1997/98 to 2000/01
• spending declined by 23 in 1998/99
• marginal recovery of 3 in 1999/00 followed by
  strong growth in 2000/01 of 19
• MTEF period
• average annual growth of 22,6
• strong growth in all areas
• education 61
• heath 38

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Sources of funding
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CAPEX spend by function
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Observations

• Past trend shows slowdown in spending
• But downward trend in spending clearly reversed,
  moving forward
• 2003/04 set for R14 billion, more than double
  1999/2000
• success hinges on improving service delivery
  mechanisms

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Achievements

• Education
• 25 000 new classrooms
• schools without sanitation 55 to 17
• schools without water 40 to 34
• schools without power 60 to 47
• Clinics hospitals have been built
• Over 500 clinics PHC centres built
• IALCH in KZN, Nelson Mandela in EC, extension of
  PTA Academic in GT
• But, over a third of public hospitals require
  renovation or replacement

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Roads
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SA road network

• Extensive network of over 500 000 km
• All three spheres of government responsible for
  maintenance, rehabilitation development
• Estimated 223 128 km fall under provinces
• 7 200 km fall under national
• the rest fall under local government
• All national and about 25 provincial roads paved

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Budget trends (1)

• Roads expenditure
• Difficult to isolate transport related activities
  in provinces as transport budgets are combined
  with other departments (like PW or Economic
  Affairs)
• Between 1997/98 and 2000/01 over R12 b was spent
  on non-toll national and provincial roads
• Data should be treated with caution at this stage
• Non-toll national roads
• funded through national transfers and user
  charges

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Budget trends (2)

• Provincial roads
• funded primarily through equitable share
• over R10 bn spent between 1997/98 and 2000/01
• spending in 2000/01 R3,1 bn, grows to R3,4 b in
  2001/02 and is expected to grow to R4,8 b in
  2003/04 (9 average real growth)
• strong growth of 30 expected between 2001/02 and
  2002/03

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Spending on roads(capex maintenance)
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Looking aheadKey challenges

• Institutional issues
• institutional arrangements, coordination
  efficacy
• capacity
• Planning
• project selection, identification evaluation
• lessons from PPP process
• Budgeting funding
• is funding still a problem?
• Implementation monitoring

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Intergovernmental Fiscal Review
2001 Infrastructure development 15 October 2001