(AsgiSA) Annual Report 2008 - South African Government Information

Accelerated and Shared Growth Initiative for South Africa
ANNUAL REPORT
2008
At municipal level, the budget and expenditure picture is less positive. Some 32% of the 2007/08
municipal infrastructure budget was made up of conditional grants, a figure projected to rise to
36% in 2008/09.
It is increasingly apparent that, compared to a host of other factors detailed below, the availability
of finance is less of a constraint to accelerated infrastructure provision. In the face of global
recession, South Africa’s sound fiscal position has allowed the pursuit of counter-cyclical policy to
maintain infrastructure investment programmes. Thus, for example, during 2008/09, National
Treasury provided a R60-billion loan and debt guarantees totalling R176 billion to support Eskom’s
electricity infrastructure investment programme and to overcome construction cost escalations and
deteriorating credit market conditions.
5.2 Progress in each target area – achievements against targets/lessons learnt/
challenges
The significant expansions in social and economic infrastructure are outlined below, with some
comments on critical areas requiring attention.
5.2.1 Bulk water storage (dams), supply and irrigation programmes
These are the responsibility of the Department of Water and Forestry (DWAF), which budgets directly
for such projects or raises financing through dedicated agencies such as the Trans Caledon
Tunnel Authority (TCTA). The latter was created to house and manage South Africa’s bulk water
assets associated with the Lesotho Highlands Water Scheme.
In 2008/09, DWAF’s total revised budget was R6 467 million, of which R2 465 million was allocated
to the Water Resource Management Programme (mainly De Hoop Dam, Berg Water Project
Supplement Scheme, Hluhluwe Regional Water Scheme Treatment Plant, Vhembe District Water
Treatment Plant, the rehabilitation of four dams, the reconstruction of access roads to dams) and
R1 866 million to the Water Services Programme (mainly for water supply and sanitation to clinics
and households, and water services to schools, bucket eradication – formal settlements, and technical
support to local government support through deployment of technical experts) 2 .
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