(AsgiSA) Annual Report 2008 - South African Government Information

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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 . 46
Accelerated and Shared Growth Initiative for South Africa ANNUAL REPORT 2008 In 2008, DWAF’s National Water Resources Strategy (NWRS) proposed various supply- and demand-side measures to manage anticipated future supply constraints, including: • Effective execution of projects: • the projects associated with Cabinet’s 2008 decision to proceed with the Lesotho Highlands Water Scheme need cost-effective execution • the 165 dams and water-transfer facilities earmarked for upgrading in DWAF’s R1,4- billion MTEF allocation • institutional realignment as outlined in the NWRS (2008): • creating and capacitating a national network of catchment management agencies and water user associations • creating and capacitating the National Water Resources Infrastructure Agency and integrating it with parts of DWAF and the TCTA • reviewing raw water pricing and allocation regime and implementing a medium-term strategy whereby water supply infrastructure ultimately becomes self-financing. 5.2.2 Water and sanitation services Water and sanitation services are the responsibility of local government. While considerable progress has been made in reducing historic backlogs, the thrust has been in improving conditions in formal settlements. Specific, targeted programme results in 2008 included the eradication of the backlog of schools and clinics with no access to sanitation. Eradication of the water backlog in schools is expected by 2010. During 2009, the special initiative to eradicate the bucket system in formal settlements will be completed. 2 DWAF (2008), http://www.pmg.org.za/report/20081021-department-water-affairs-forestry-annual-reportsbriefing-implementati 47
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(AsgiSA) Annual Report 2008 - South African Government Information

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