Kwadukuza IDP 2011 - KZN Development Planning

6.7. Skills Development 486.8. Youth Development 486.10. KwaDukuza Tourism Development Strategy 486.11. KwaDukuza Tourism Vision 496.12. KwaDukuza Tourism Marketing Strategy 506.13. Transformation and Social Tourism Strategy 516.15. Tourism Product Development Strategy for KwaDukuza 57CHAPTER 7: Sustainable Infrastructure Development7.1. KwaDukuza Basic Infrastructure Development Programme 607.2. KwaDukuza Basic Service and Infrastructure Backlogs 607.3. Cemeteries 607.4. Waste Disposal Sites 607.5 Water Provision 607.6. Sanitation 607.6.1. Water and sanitation projects by Ilembe District 61Municipality and Siza Water7.7. Roads & Storm Water Management 627.8. Electricity 657.9. Sports and Recreation Backlog 837.10. Housing Backlog 84CHAPTER 8: Financial Planning & Budget8.1 Introduction 908.2 Operating and Capital Budget Estimates 908.3 Budget Assumptions: 908.4 Significant External Factors 918.5 Basis and Methodology for Forecasting Budget Projections 918.6 Alignment with GRAP 918.6.1 Benchmarks for Key Performance Indicators 918.7 Budget Estimates 928.8 Debt Management Framework 948.9 Grants 958.10 Financial Strategy 968.11 General Strategies 968.11.1 Social Responsibility 968.11.2 Increasing the Level of Confidence in Investors 968.11.3 Financial Framework 988.11.3.1 Revenue Adequacy and Certainty 988.12 Asset Management Strategies 998.13 Financial Management Strategies 998.13.1 Borrowing Costs 998.13.2 Assets 998.13.3 Budgets 998.13.4 Financial Statements 998.14. Financial Management Policies 1008.14.1 Budget Policy 1008.14.2 Credit Control and Debt Collection Policy 1008.14.3 Indigent Policy 1008.14.4 Tariff Policy 1008.14.5 Rates Policy 1008.14.6 Long Term Financial Planning Policy 1008.14.7 Guiding Principles 1018.14.8 Free Basic Services 1018.14.9 Payment Points 1018.15 Investment Policies 1028.16 Borrowing Framework Policy & Guidelines 1028.17 Policy on Infrastructure Investments and Capital Projects 1038.18 Asset Management Policy 1038.19 Accounting Policies 1048.20 Supply Chain Management Policy 105CHAPTER 9: KwaDukuza Performance Management System9.1 Introduction 1089.2. Overview of Policies Guiding Performance 110Management in the Kwadukuza Municipality9.2.1. Policy Framework 1109.2.2. Phase 1 – Performance Planning 1159.2.3. Phase 2 – Performance Coaching 1169.2.4. Phase 3 - Reviewing 1169.2.5. Phase 4 - Rewarding 1169.3. Challenges 1179.4. Conclusion 118Ward 6 122ANNEXURE A: WARD NEEDS

CHAPTER1Executive Summary7

Chapter 1Executive Summary1.1. KwaDukuza Powers and FunctionsThe following are the powers and functions assigned to KwaDukuza:• Air & Noise Pollution• Beaches and Amusement Facilities• Billboards & Display of Advertisements inPublic Places• Building, Trading Regulations, Liquor &Public, Nuisance Control• Cemeteries, Funeral Parlours & Crematoria• Child Care Facilities• Cleansing & Trade Areas• Electricity Reticulation• Fencing and Fences• Fire Fighting Services Licensing, Facilitiesfor Accommodation, Care & Burial ofAnimals• Local Tourism• Local Amenities• Local Sport Facilities• Markets Stalls / Trade Areas• Municipal Abattoirs• Municipal Planning• Municipal Public Transport• Municipal Parks and Recreation• Municipal Roads• Pontoons, Ferries, Jetties, Piers &Harbours• Storm Water Management• Pounds• Public, Nuisance Control FireFighting Services• Public Places• Refuse Removal, Refuse Dumps &Solid Waste• Street Trading• Traffic and Parking• Storm Water Management1.2 KwaDukuza long-term visionKwaDukuza is a city in the making, a municipality with one ofthe fastest growing economies in South Africa. It is situatedalong eThekwini-iLembe-uMhlathuze Corridor and it is situatedless than 50km outside of the King Shaka Airport (MOS Zungu’ 1KwaDukuza Municipal Manager, 2010). The long term vision ofKwaDukuza Municipality seeks to ensure that the Municipalityis governed within acceptable government principles whichwill contribute in turning KwaDukuza Municipality into aneconomic powerhouse.The broad vision of KwaDukuza Municipality is to build a stronglocal economy through the creation of an environment that willentice both domestic and foreign investors to come to the Cityof KwaDukuza. The long term vision of KwaDukuza Municipalityis based on five principles of Sustainable Development, whichare: economic development; social development;environmental development; physical developmentand good governance. In year 2000, KwaDukuzaMunicipality adopted its long term vision which wanted tocreate KwaDukuza as an economic powerhouse within iLembedistrict. This vision stated that “By 2010 KwaDukuzawill, through unity and good governance be aneconomic powerhouse, delivering services inan affordable and sustainable manner withina safe and healthy environment”.As part of the revision of its five-year strategic plan, theintegrated development plan, KwaDukuza Municipality hasconducted a SWOT analysis which suggests that it possessesan opportunity to play a big part in the global economy. Itis against this background that KwaDukuza Municipalityhas resolved to review its long term vision. Like the visionthat was adopted in year 2000, the new long-term vision isgeared towards achieving the mandate of local government asenshrined in the Constitution of the Republic of South Africa,Act 108 of 1996, Section 152, suggests the following as themandate for local government:o To promote democratic and accountable localgovernment;o To ensure the provision of services to communities ina sustainable manner;o To promote social and economic development;o To promote a safe and healthy environment; ando To encourage the involvement of communities andcommunity organizations in the matters of localgovernmentIt must be mentioned that KwaDukuza Municipality has resolvedto adopt economic development and infrastructuredevelopment as the drivers of its 2011/2016 IntegratedDevelopment Plan. KwaDukuza Municipality believes thatin order for it to build a vibrant economy, it must get itsinfrastructure right. The new vision of KwaDukuzaMunicipality shall therefore be as follows:” By 2030, KwaDukuza shall be a vibrant citycompeting in the global village both economically,socially, politically and in a sustainable manner.’KwaDukuza long term vision is divided into three phases,namely,1st Phase: (2011 – 2019):During this period KwaDukuza Municipality shall be attending toinfrastructural backlog through ensuring the provision of water,roads, electricity, housing, amenities, etc. This period shall also bededicated to enticing both domestic and foreign investment tocome to KwaDukuza. This will be done through putting togethergood investment packages and tax incentives for would be1KwaDukuza Municipality: The City in the making: A paper prepared by Mr. MOS Zungu.8KwaDukuza Municipality Integrated Development Plan - 2011/16

investors. During this period KwaDukuza Municipality shallalso ensure that infrastructure development and domesticand foreign investment deals, brings about decent work forthe community of KwaDukuza. As a result, the rates base ofKwaDukuza will be strengthened. All of above will contributeto building a vibrant local economy of KwaDukuza and inturning the City of KwaDukuza into a competitive playerin the global economy. It is the objective of KwaDukuzaMunicipality to ensure that during this period it is able tobring about social cohesion for the people of KwaDukuza.At the forefront of all this, shall be the understanding thatin order for the intentions of KwaDukuza Municipality to beacceptable, there shall be a creation of sustainable economyfor the future generation of KwaDukuza.2nd Phase: (2019 – 2024):This period is very crucial for KwaDukuza Municipality toentrench its position as a global economic player throughgiving priority in delivering local economic development(LED); delivering a high standard of essential services;encouraging the people of KwaDukuza to participate inshaping KwaDukuza for better. The second phase will beused to reflect on the achievements of the period between2011 and 20193rd Phase: (2024 – 2030):The period between 2024 and 2030 shall be dedicated toconsolidation and entrenching City of KwaDukuza as a playerin the global economy.1.3. KwaDukuza MissionThe mission of the KwaDukuza Municipality is to achievehighest economic status through:• Driving local economic development;• Delivering a high standard of essentialservices;• Encouraging public participation;• Overcoming debt and achieving costrecovery on services provided.1.4. KwaDukuza Development Strategiesa. Ensuring economic development and job creation;b. Ensuring strict credit control;c. Attraction of investment;d. Ensuring Good Governance;e. Ensuring Service Delivery Excellence;f. Ensuring Customer care and makingBatho Pele a reality;g. KwaDukuza Main Town regeneration;h. Accelerating the fight againstHIV & AIDS pandemic;i. Ensuring safe and secure environment;j. Provisioning of sustainable human settlement; andk. By-law enforcement and crime prevention;l. Clearing of slums;m. Providing for the indigents;n. Improving service delivery;o. Improving relationships;p. Address poverty and unemployment;1.5. ILembe at GlanceKwaDukuza Municipality forms part of the iLembeDistrict Municipality area (DC29), and lies on theeast coast of KwaZulu-Natal, between the eThekwiniMetro in the south and the Tugela River mouth in thesouth. At 3 260m², iLembe District Municipality is thesmallest of the 10 KZN district municipalities. ILembeDistrict consists of four Local Municipalities, i.e.Mandeni, KwaDukuza, Ndwedwe and Maphumulo.The latter two of the four Local Municipalities areboth Project Consolidate municipalities (DPLG, 2005).Land tenure within the District generally dictatesthe land usage and the District is made up of 45Traditional Authority areas where settlement iscontrolled by Traditional Authorities according to atraditional system of land allocation by the iNkosi tothe families of his tribe. These Traditional Areas coverapproximately 63% of the total area where the Stateand the Ingonyama Trust own the majority of the landwithin Municipality of Maphumulo, the lower reachesof Ndwedwe (69%) and coastal and inland reaches ofMandeni (49%).Traditional Areas are generally characterized bysubsistence farming activities, harsh topographicalconditions and the worst of agricultural potentials.Large areas are under-utilized with traditionalsettlement patterns and low densities, which arenot conducive to the provision of infrastructuralservices. Smaller rural nodes, such as trading storesor clinics are scattered through the Traditional Areas.Traditional housing dominates, but there is a range ofother formal and informal structures proliferating inthese predominantly rural areas.The northern areas of Ndwedwe, the central corridorof Mandeni and KwaDukuza Municipality arethe commercial farming hubs of the District. Thecommercial farming areas of KwaDukuza, Mandeniand Ndwedwe (31% of the ILembe District) aremainly under privately owned sugar cane. Areas ofurbanization in the District comprise of KwaDukuza,Mandeni, the Dolphin Coast and Nkwazi. Land useswithin these areas are typically urban mixed uses withhigh levels of infrastructural and service developmentand an adequate provision of social facilities andservices to support the resident populations. Industrialdevelopment is concentrated in KwaDukuza, Isithebeand Darnall, most notably the Gledhow and Darnallsugar milling operations at Stanger and the SappiPaper mills at Mandeni.Informal settlements with limited facilities orinfrastructural services occur on the periphery of thedeveloped areas and within the towns of ILembe.Village centres such as Maphumulo and Ndwedwe inthe west and Nyoni and Mbizimbelwe in the northcomprise of commercial and service development inthe rural areas. (ILembe DM, IDP)They largely exist in association with a magistrate’scourt, clinic, pension pay point, health, education andChapter 19

welfare office or similar state service. Wholesale commercial activities have expanded and these villages have emerged as supply centresand transportation hubs to the remote rural areas of ILembe. The ILembe District is bordered by economic powerhouses to the north andsouth. Despite this, the ILembe District features sufficient unique selling points to prosper within its own niche market on the followingbasis:• Location between Africa’s two great ports, i.e.Durban and Richards Bay and its excellent transport infrastructure.• Potential to capitalize on targeted spill over fromthe major initiatives planned for Durban such asthe Dube Trade Port.• Pristine beaches and a relatively unspoilt naturalenvironment, undermines the claim of being“The Jewel of the Kingdom of the Zulu”.• Centrally located to the province’s other majorassets, i.e. Game Reserves, St. Lucia WorldHeritage Site, Berg, Battle Fields and Durban.This places this District within a two-hour drive ofmany of KZNs natural attractions and two WorldHeritage Sites.• International and local recognition and interest inKing Shaka and Zulu culture and history. Thisdiverse and rich cultural heritage has potential forgrowing and broad international appeal.• Strong cultural and historical links to India, theUnited Kingdom and Mauritius.• A sub-tropical climate positions it as an all yearround tourism destination.• A warm ocean provides comfortable bathing allyear round.• Unique quality of the District’s agriculturalattributes of soil types, climatic diversity andrainfall.1.6. KwaDukuzaBroad Geographical ContextKwaDukuza Municipal area of jurisdiction is approximately 734.971km² in extent. The KwaDukuza municipal area stretches from theZinkwazi River in the north to the UThongathi River in the South. It borders four Municipalities, viz, eThekwini, Ndwedwe, Maphumuloand Mandeni. It is one of the four municipalities that make up the ILembe District Municipality. KwaDukuza functions as the districtnode and dominant commercial centre in the ILembe District. KwaDukuza Municipality occupies a coastal and inland stretch ofapproximately 52.3 km in length and 23 km in width, a variety of clustered and ad hoc settlements and small towns exist and arelinked with a well-developed network of roads and rail infrastructure. The key feature of KwaDukuza is the N2 Development Corridorthat runs through it.10KwaDukuza Municipality Integrated Development Plan - 2011/16

The name KwaDukuza epitomizes the historicalbackground of the area being the home to King ShakaGravesite and Memorial. The town KwaDukuza is built onthe original site of King Shaka’s Royal settlement calledDukuza. The KwaDukuza museum is situated oppositethe site of King Shaka Memorial and is dedicated to thesugar industry and colonialism, the cultural heritage ofthe early settlers of the town Stanger. The populationdynamics of KwaDukuza Municipality is highly diversedue its multi-racial composition and rich settlementhistory. KwaDukuza has a distinct eastern flavour andis linked to the earlier settlement of Indian families whowere imported to work on the sugar cane farms of the bigsugar barons such as Sir Liege Hullet.In terms of settlements, the existing urban developmentis located in the formally established towns ofKwaDukuza, Ballito, uMhlali, Shaka’s Kraal, Prince’sGrant, Blythedale Beach, Tinley Manor, Zinkwazi aswell as portions of Groutville. Peri-urban to semi-ruralsettlement occurs throughout much of the centre of themunicipality, extending from the northern boundary viaKwaDukuza, Groutville and uMhlali to the southern edgeabutting eThekwini. It must be noted that densities anddevelopment qualities vary significantly. Although somerural settlement occurs in the Groutville area, much ofthe rural and traditional settlement is concentrated in thenorth-western Ingonyama Trust areas. A variety of newhousing areas are in the process of being establishedthroughout the municipality from Ballito in the south toDarnall in the north.• KwaDukuza has a significant number ofgazetted land claims that occur in bandfrom Blythedale Beach to KwaDukuza Townand westwards, which may influence thepotential phasing of development;• Most of the social facilities are locatedin urban and peri-urban areas, with theexception of basic education facilities, thereis expected to exist a backlog in the ruralareas;• Commercial local level activities are locatedin all urban and peri-urban areas; the majorcommercial development is located in theKwaDukuza and Ballito areas;• Industrial manufacturing investments inKwaDukuza include the Stanger Sappi PaperMill and Sugar Mills in Darnall and Gledhow.The Isithebe Industrial Estate in theMandeni area is of significance in the northand the uThongathi/Maidstone industrialareas in eThekwini in the south. Smallerscale light industrial activities exist north ofBallito and in the Groutville area;• Agriculture is the dominant economic sectorin KwaDukuza contributing 23% of thetotal gross domestic product. The dominantagricultural product is sugar cane. There arehowever also other agricultural productssuch as vegetables, flower and sub-tropicalvegetables. The majority of the commercialfarming areas consist of large-scale activities.The municipality also accommodates areasof afforestation and related paper mills atMandeni and KwaDukuza; and• Recreation has significant potential andthe municipality has identified the need toenhance and extend the sector. Primary factorsattracting tourist to the area include beaches,culture and wildlife.Chapter 111

1.7. Opportunities Offered byKwaDukuza MunicipalityThe strategic location of KwaDukuza Municipality betweenthe two major ports of Durban and Richards Bay Ports offersgood investment opportunities. This alone gives KwaDukuzaan advantage of strategically re -aligning the district into acompetitive and attractive investment destination. The closeproximity of the Dube Trade Port is also an added advantageto the area in terms of investment attraction.KwaDukuza Municipality represents the development engineof ILembe and it contributes the highest percentage in theeconomy of the iLembe district. KwaDukuza Municipalityalso occupies the majority of the iLembe coastline as well asthe coastal development corridor. KwaDukuza Municipalityhas developed a Spatial Development Framework (2009,reviewed: 2011) which provides strategic guidance for thefuture physical and spatial development of the municipality.KwaDukuza Spatial Development Framework also reflectsthe social, economic, environmental etc, development issuesin line with KwaDukuza IDP.The tourism sector has enormous potential in the KwaDukuzaarea and the KwaDukuza municipality has identified the needto improve and enhance the tourism sector. The KwaDukuzaarea has many tourist sites, which will be identified. Theprimary factors that attract tourists to this province are itsbeaches, visits to family and friends, the wild life and Zuluculture. The KwaDukuza area is very rich in Indian heritageand this can be felt in the Stanger area particularly as well asShakaskraal. The KwaDukuza area also has a rich heritage inthe form for the Zulu culture. It has a diversity of rich coloursand cultures. The North Coast (Dolphin Coast) Ballito, SaltRock, Dolphins, Shaka and Zimbali are some of the termsassociated with this up-market “beach tourism Mecca”of the Zulu Kingdom of KwaZulu-Natal. Some of the touristsites in KwaDukuza are Tinley Manor Lagoon, King Shaka’sMemorial Monument, and the Chief Albert Luthuli Museum.Tourism sites, within the municipality, are regarded as across-sectoral Industry as they represent linkages with theretail, manufacturing, transport, electricity and financialsectors. The retail sector; tourists will be purchasing goodssuch as memorabilia, food and clothing that is characteristicof the KwaDukuza area. The transport sector forms anintegral aspect as a result of the associated tours. In thisregard transportation services are essential in providingaccessibility to the various tourist sites. Manufacturing ofcrafts and souvenirs are essential in tourism. Electricity is abasic service required by all tourists for daily activities and forwhich businesses rely for production of goods and servicesThe economy of this region is dominated by agriculture(primarily sugarcane), light industry (engineering, woodproducts, paper and packaging) and tourism. The area ofBallito has a number of well-established and popular tourismand residential developments, catering largely for the higherincomeearners and tourists. Holiday letting and exclusivehigh income residential and golf estate developments aresome of the high prized unique selling propositions of thissubtropical region. The Ballito area, with its extensive housingdevelopments, is currently one of the fastest growing realestate regions along the South African coast. In addition, anincreased number of visitors and the additional industrialdevelopment associated with the Durban InternationalAirport in La Mercy. However, the municipality finds itincreasingly difficult to provide funding and other resourcesto develop the required infrastructure to adequately exploitthe opportunities offered by these developments. The areaalso experiences limited bulk electricity supply that couldnegatively affect industrial development. However, Eskomthe national electricity utility has indicated that it plans toincrease its capacity in the area. The KwaDukuza Municipalityhas also developed its Energy Master plan which will allowit to effectively address issues relating to the provision ofelectricity.The dominant land-use outside of the urban areas of theKwaDukuza Municipality is sugar cane plantationsinterspersed along the coast and in some inland areaswith forestry plantations. Land taken up by other formsof agriculture is limited. The primary rural landform isagriculture with farmhouses, compounds and smaller ruralsettlements dispersed throughout the area. The only majortraditional settlement within the area is located in the northwestportion of the Municipal Area.Agriculture is an important niche for the KwaDukuzaMunicipality’s economy and even more important to the localculture. The municipality needs to consider the impacts onagriculture from all other economic activity and identify waysto preserve and strengthen this sector as a viable economicmainstream. There are various levels at which the stimulationof this sector can target. The stimulating of agriculturalpractices for the purposes of commercial production, thisaims at creating sustainable livelihoods and developingeconomic capacity. The agricultural sector in the KwaDukuzacontributes 23% to the local economy. The KwaDukuza areabenefits heavily from the agricultural sector for economicgrowth. The products that dominate the area are sugarcane, fruit and vegetables. There is a need to diversify theseagricultural products into more sustainable products such asdry fruit, juices etc that will ensure economic spin offs for thelocal economy.The King Shaka Airport and the Dube Trade Portare situated within the close proximity of KwaDukuzaMunicipality. The King Shaka Airport addresses thechallenges within logistics, exports, tourism and spatialdevelopment and therefore it makes a significant economiccontribution to KwaZulu-Natal province and South Africa asa whole. The Dube Trade Port creates a highly competitiveoperating environment that will attract a wide range ofinvestors, operators, users and tenants and it is expected toprovide economic benefits for the area of KwaDukuza and itssurroundings.12KwaDukuza Municipality Integrated Development Plan - 2011/16

1.8. KwaDukuza Strength, Weaknesses, Opportunities and Threats AnalysisStrengthsWeaknessesChapter 1• It is close to major cities and towns in the province• Strong cultural and historical links to India, UnitedKingdom and Mauritius• Quality of natural endowments, beaches, climate• High concentration of prime agricultural land in thehands of large commercial sugar cane farmers• The N2 corridor from Durban to Maputo, whichalready transports a host of tourists through theregion• The well established tourism industry• Ballito is a major tourism attraction along the coastand has got an up-market, village image and offersideal climatic conditions for holiday makers• Gledhow and Sappi are prominent sugar mills• Excellent transport linkages within the KwaDukuzaarea• High percentage of young people• The backlog of basic services such as water,sanitation, electricity• HIV/AIDS and its impact on the local municipality• Access to land and legal framework surroundingsuch access• Lack of access to adequate and appropriateservices• The clear divide between rich coastal and poorhinterland areas• The cultural experiences based on the Zulu Heritageis not exploited properly• The area suffers from brand confusion “The DolphinCoast’ “North Coast-Jewel of Zulu Kingdom’• The core beach attractions and natural assets notyet developed to its full potentialOpportunities• The Dube Trade Port will have many spin offs forthe KwaDukuza area• Increasing investment in high income residentialproperties in areas like Ballito and Zimbali• The tourist industry in KwaDukuza is constantlybeing expanded• There are opportunities for emerging farmers in thesector especially agri-processing value chainsThreats• Road infrastructure needs upgrading on a continuouslevel due to tourist attractions• HIV/AIDS represents serious economic threat• Failure to pay for services especially in rural areas• Transport costs and crime• The general lack of networking, communication andlinkages between businesses in the area.• The sugar price fluctuations• There is a low level of skills• There are no tertiary institutions of FET Colleges inKwaDukuza• There are high levels of poverty and unemploymentresulting in high service demands of existing assets• There are high levels of poverty and unemploymentresulting in high service demands of existing assets• A significant challenge facing KwaDukuza is theextensive housing development taking place in theregion, with limited resources to provide the requiredinfrastructure development• Water, sanitation, storm water infrastructure is ageingand this needs urgent attention.• There is a high demand for middle/affordable housingin KwaDukuza.13

Municipal Accounting. It must be noted that KwaDukuzaMunicipality, has received an unqualified reports for fiveconsecutive years.c. Performance Management Reporting:For the 2009/10 Financial Year, KwaDukuza Municipalityintroduced a comprehensive performance managementsystem in accordance with Chapter 6 of the MunicipalSystems Act of 2000 and the Planning and PerformanceRegulations of 2001.d. Audit Committee:KwaDukuza Municipality has a fully fledged an InternalAudit Unit which has also been instrumental in putting inplace the Audit Committee. The Audit Unit reports to theAudit Committee on the implementation of the InternalAudit Plan and matters relating to, internal audit, internalcontrols, accounting procedures and practices, risk andrisk management, performance management, loss controland compliance with Municipal Finance Management Act,no. 56 of 2003 and the Annual Division of Revenue Actand any other legislation.e. Organizational Structure:The Municipal Manager heads the administrative structureof KwaDukuza Municipality and is assisted by five Headsof Departments (Executive Directors/ ED’s). Depending oneach department, each is further divided into a particularnumber of sub directorates headed by Directors. The EDheaded departments are Finance, Corporate Services,Economic Development and Planning and developmentfacilitation, Municipal Services & Technical Services. In2008, the council also approved the establishment of aCorporate Governance Department, will incorporate IDP,PMS, Internal Audit and Public Participation.Municipalities are faced with a very challenging task ofensuring that they implement the developmental mandatethat they have been tasked with. To implement the objectivesof the local government as they are clearly spelt out in theWhite Paper on Local Government, requires a very strongorganization with dynamic and charismatic leadership thatis able to provide a clear direction for the success of theorganization as well as to help the organization to achievewhat it exists for. This also requires a vision and missionthat will serve to steer the KwaDukuza Municipality inthe desired direction with positive outputs. To realize thisvision Council has to place much effort in fast-trackingand fine-tuning KwaDukuza operational strategies andprogramme. This will be done through the IntegratedDevelopment Plan (IDP) which is one of the key tools forlocal government to cope with its developmental role andassist municipalities to arrive at decisions on issues such asthe municipal budget, land management, promotion of localeconomic development and institutional and organizationaltransformation in a systematic, strategic and consultativemanner. The organizational structure was reviewed during2006/7 Financial Year to a leaner and more cost effectivestructure. Job descriptions were compiled and submittedto the Principal Job Evaluation Committee for evaluationpurposes. The organizational structure consists of thefollowing directorates:a. Office of the Municipal Manager:The Office of the Municipal Manager’s Office deals withstrategic planning issues, which include the IntegratedDevelopment Planning, Policy and Advisory Services,Internal Audit, Performance Managementb. Economic Development & Planning:Local Economic Development, Development Planningand Human Settlementsc. Municipal Services:Traffic and Protection Services, Health Services andOperations, Waste Managementd. Finance:Revenue Management, Expenditure Management, ProcurementManagemente. Technical Services:Technical Services is primarily responsible for the construction,maintenance and upgrading of municipal infrastructure and servicedelivery. It consists of three technical departments vizElectrical Engineering ServicesThis section is responsible for the provision and maintaining of a safe,economical and reliable electricity infrastructure to all citizens through theeffective utilization of allocated resources.The strategic objectives of this section are as follows:• To ensure that all citizens have an electricity service connection• To provide an acceptable level of lighting to all major roads, publicopen spaces and sportsfields• To upgrade the MV network and substations to allow for naturalexpansion of demand and new developments• To upgrade the Low Voltage network to allow for naturalexpansion of demand• To ensure that customers get good value for money.Civil Engineering ServicesTo provide and maintain safe roads and storm water infrastructure and civicbuildings through the effective utilization of allocated resources.Strategic objectives:• To maintain and upgrade the existing roads infrastructure• To maintain and upgrade the existing storm water infrastructure.• To ensure that municipal buildings are properly maintained.• To construct new civil engineering infrastructureFleet Management ServicesTo provide and maintain a safe, economical and reliable municipal vehiclefleet through the effective utilization of allocated resources to ensuretimeous availability of vehicles. The strategic objectives of this sectioninclude:• To ensure that municipal fleet is reliable and economical.• To ensure that vehicle are available for service delivery.• To ensure that obsolete vehicles are replaced timeously.f. Corporate ServicesCorporate Services Department comprises of the following sub-directorates:Human Resources, Corporate Communication, Information Technology andAdministrationThe goal of Corporate Services Department is to demonstrate improvedinstitutional development levels through the establishment of cost effective andefficient institutional administrative and staff fu nction support service tothe Council, community and line - function departments.The objective of Corporate Services is to actively support the Municipality’scommitment to the provision of the highest quality of staff function servicesto its constituencies and to ensure that all the strategies and objectives areadhered to, resulting in a productive and sustainable Municipality by:• Providing a service that support and assist Council in meeting its legalobligations;• Rendering a reliable and well recorded administrative function;• By providing both an electronic and written communication function;• This will be achieved through utilization of a well designed organizationalstructure that is developmental, cost effective and meets thedetermined transformation objectives.Chapter 115

CHAPTER2KwaDukuzaSituational Analysis17

Chapter 2KwaDukuza Situational Analysis2.1. Population StatisticsKwaDukuza population is estimated at 250 000 and to300 000 during the peak season.2.2. Age of the populationThe high number of potentially economically active personscreates a growing labour pool. The constant availability oflabour is an essential element in economic growth, which isconsidered as being important development opportunity forestablishing a more balance urban area and local economicbase. The KwaDukuza youth segment of the population hasa large base, and total number of people under the age of19 years accounts for 37.8% of the total population, andthe percentage of the population that is 34 years or youngercomprises 68.4% of the total population. The age group 65+represents only 6% of the total population. It is interestingto note that the Male component in the age group 65+comprises a very small percentage of the total population,i.e. only 1.8%.2.3. Education and SkillsApproximately 26% of the population in KwaDukuzaMunicipality have a Standard 10/Grade 12 or HigherEducation Qualification. Eighty percent (80%) of thepopulation of KwaDukuza has some form of schoolingbetween the primary and tertiary education levels. This ispositive for the municipality as it provides a skills base forthe area that requires minimum training.The challenge that KwaDukuza Municipality is facing is thatthere is no institution for higher learning in KwaDukuza area.The nearest institutions are further south in eThekwini orfurther north at MandeniIn KwaDukuza, approximately 33% of the population isemployed under the elementary occupation with 10% ofthe employed falling under service workers. In the districtand local level the majority of the employed fall under theelementary occupation. A number of people have basicemployment with 33% in KwaDukuza and 31% in theIlembe district.2.4. Employment ProfileThe employment profile of KwaDukuza Municipality indicatesthat the employed population from the economically activeaccounts for 66%. The remaining 34% of the population areunemployed. The bulk of the population of KwaDukuza iseconomically active.2.5. Income LevelsApproximately 61% of the KwaDukuza Municipalitypopulation does not earn an income. This category includeschildren and housewives. Studies also show that 13% of theemployed earn between R401 – 800. There are high levels ofpoverty in KwaDukuza as studies indicate that about 90%of the employed ear below R1600 which is the poverty line.2.6. HIV & AIDS PrevalenceHIV & AIDS poses a serious threat to the economy ofKwaDukuza Municipality. The statistics are as follows:Populationsegment HIVPositive %ILembe 14.2 13.2KwaDukuza 14.5 14.22.7. Environmental ContextAverage Annualgrowth in HIVand segment –1996-2004 %The fast pace of development in KwaDukuza placesunprecedented pressure on the environment. The findingsof the KwaDukuza Strategic Environmental Assessment(research) suggest that the coastal strip of KwaDukuzaMunicipality requires the greatest attention, as thedevelopment is greatest in this area. This is one of the areasof greatest environmental concerns.2.8. Biophysical ContextThe majority of the land within KwaDukuza Municipality ishighly transformed. Several rivers flow through the area ina west – east direction into the Indian Ocean, these include,from the South to North, the uThongathi, the uMhlali, theuMvoti, Zinkwazi and on the northern boundary of uThukelaRiver which is the largest river in KwaZulu Natal,A number of land use related factors (especially related tosugar cane cultivation) have caused extensive degradationof wetlands and rivers. This has severely affected both thebiological and ecological functioning of these ecosystems inthe KwaDukuza area. The coastline of KwaDukuza compriseof sandy beaches, dune forests and rocky headlands,The demand for sandy beaches and the pressure to providespace, adjacent to bathing beaches and other amenities,both for recreational activities and parking is growing.Degradation of the coastline has negative connotations tothe tourism industry, which is considered crucial for economicdevelopment in KwaDukuza. The Beach Recreational UsePlan highlights important coastal areas that still have intactecological biodiversity worthy of preservation.18KwaDukuza Municipality Integrated Development Plan - 2011/16

There are no proclaimed nature reserves in KwaDukuza, butthere is a privately owned Natural Heritage Site (SANHS 166)which encompasses the uMvoti Estuary and is deemed anImportant Birding Area (IBA, No. 73) and considered criticalfor conservation action. Two conservancy areas exist withinthe KwaDukuza Local Municipality, namely, the AddingtonConservancy and the other is a joint protection of naturalareas between Rodger Stewart and Prince’s Grant Golf Estate(the latter the subject of a DFA application).Remnant patches of riparian vegetation and coastal forestexist, along with limited examples of coastal grassland. Theseare important for conservation. Three fragments of NgoyeForest and Grassland should be proclaimed as reserves in ajoint exercise with Ndwedwe Local Municipality and with theassistance of SANBI and eZemvelo KZN Wildlife.Most areas/resources that have not been developed ortransformed are inaccessible or difficult to develop. Fragmentsof remaining natural areas/resources are separated bylarge tracts of transformed land and therefore may not beable to support and sustain themselves without intensivemanagement and intervention. There is increasing pressurefrom land use impacts on biodiversity from land use (e.g.drainage and cultivation of commercial crops, poor burningpractices, alien invasive plants, head cut/donga erosion, sandwinning, poor livestock grazing management, poor veldmanagement in upstream catchments, forestry, high demandfor coastal residential development urbanization, and roads).Alien invasive vegetation poses an increasing threat toremaining natural areas and resources, as does injudiciousburning and utilization of the grasslands and the forests as asource of muthi and grazing for livestock.The establishment of the uMvoti Community Protected Areaand Marine Protected Area has been proposed for the areabetween UMvoti River Mouth inland and the MnyundwiniRiver near Groutville. Some of the benefits that will emanatefrom this initiative include eco-tourism initiatives andecological protection.2.9. Infrastructural ContextInfrastructure refers to basic physical systems, facilities,services and installations needed for functioning of acommunity or society. These are considered essential forenabling productivity on the economy. The KwaDukuzamunicipal area is characterized by areas where major servicebacklogs exist. This is in comparison with areas where thefull range of services exists. The backlog in needs vary frompredominantly a need for safe drinking water, sanitationand electricity in the more rural to peri-urban areas, to basicsanitation and housing in the more urban informal and periurbanareas. The perception amongst stakeholders is thatbudget is available for new infrastructure and upgrading ofexisting infrastructure, with little focus on maintenance. TheMunicipality have therefore, realized the need to addressthe backlogs, whilst also maintaining the acceptable level ofservices in the already developed areas.2.10. TransportationKwaDukuza Municipality has strong North-South linkages viathe N2 and Provincial road R102. These roads provide a basisfor linking the main coastal nodes and the main Provincialeconomic hubs (eThekwini and uMhlathuze).There are also distinct East-West linkages via the R74and R614, these serve as a basis for connection ofinland and coastal nodes, as well as other municipalitieswithin the iLembe District. Metrorail is the backbone ofpublic transport in KwaDukuza with approximately half(49%) of the population (mainly inland) not havingaccess to any formal mode of transportation.An integrated transportation plan has been developedby ILembe District Municipality; access into the area maybe boosted by the development of King Shaka Airportand related tourism projects. Poor condition of roads dueto poor standard of storm-water management and lackof maintenance are some of our concerns. An importantcomponent of the structuring of the future developmentof the area should focus on locating activities in areasof accessibility, within the various corridors, wherehigher accessibility exists. The KwaDukuza Municipalityhas since developed its’ roads and storm water masterplan to address constraints related to its infrastructure.2.11. Priority NeedsSome of our priority needs are from the huge disparityof provision of services and major service backlogsexperienced, the lack of maintenance of existinginfrastructure and the KwaDukuza Municipality hasidentified the provision of basic services to poorcommunities and the improvement of service deliveryas critical developmental challenges. A good Workingrelationship with sector departments and stakeholdersis considered important in addressing these challengesand there are areas in which the issues of landrestitution and redistribution have not yet beenresolved. The Municipality needs to work together withthe Department of Land Affairs to resolve these matters.2.12. Current Use of LandSettlement within the municipal area is generallyfragmented by cultivated land (Sugar cane fields) withresidential land uses focused along the coastal stripas well as a main residential centre with associatedcommercial/industrial land use inland along the mainarterial road, north-west of the main N2 freeway.Industrial uses are concentrated in KwaDukuza andDarnall, most notably the Gledhow and Darnall Sugarmilling operations at Stanger and the Sappi Paper Millsin the adjacent Municipality of Mandeni.The main inland town in KwaDukuza-Stanger that,together with residential land use has a significant areaof commercial and industrial use and the manufacturingsector in the cluster has been in serious decline sincethe recall of the industrial development incentives in1992. Smaller rural nodes, such as trading stores orclinics are scattered through the tribal authority areas.The Southern portions of the coastline are formallydeveloped and include areas such as Zimbali, Ballito,Shakas Rock, and Salt Rock. Developments in theseareas are generally focused on the middle to highincome (up-market) holiday makers and the coastlineto the north of Salt Rock is relatively underdevelopedwith only smaller coastal settlements such as SheffieldBeach, Tinley Manor Beach, Blythedale Beach andZinkwazi.Chapter 219

CHAPTER3Good Governance &Community Participation21

3.4. Role of local community and ward councillors in integrated developmentplanning processKwaDukuza Municipality ensures involvement oflocal community and the traditional leadership in thedevelopment of its IDP. Residents, communities andstakeholders (civil society) including traditional leadersshould represent interests and contribute knowledgeand ideas in the planning process by:i. Participating in the IDP Representative Forum to:• inform interest groups, communities andorganisations, on relevant planning activities andtheir outcomes;• analyse issues, determine priorities, negotiate andreach consensus;• participate in the designing of project proposalsand/or• assess them;• discuss and comment on the draft IDP;• ensure that annual business plans and budgets• are based on and linked to the IDP; and• Monitor performance in implementation of the IDP.ii. Conducting meetings or workshops with groups,communities or organisations to prepare for andfollow-up on relevant planning activities.3.4.1. Procedures to be followed bymunicipality to ensure active participation oflocal community in the integrated developmentplanning process:A municipality is required to disseminate information onprocesses and procedures that will allow the communityto express itself on any matter of concern that affectsit. Transforming this general requirement tothe integrated development planning process meansthat a municipality has to follow at least the followingprocedures:Ward committees including stakeholderassociations and any other recognisedcommunity organisations.b) Councillors have to inform the communitieswithin the area of the ward, through a publicconstituency meeting/imbizo.c) The Representative IDP Forum has to beinvolved at least once in each major stage ofthe drafting process.d) The community and stakeholderrepresentatives have to be given adequatetime (2-4 weeks) to conduct meetingsor workshops with the groups,communities or organisations theyrepresent, before the issue is dealt withby the Representative IDP Forum. This is togive a fair opportunity for legitimaterepresentative participation, but doesnot necessarily have to involve themunicipality in community or stakeholderlevel workshops.e) Draft planning documents have to beaccessible to every resident, andeverybody has the right to submit writtencomments. There must be a time periodof at least four weeks for wardcommittees, stakeholder associations,interest groups and residents to discussthe draft document publicly, and tocomment on it before the RepresentativeIDP Forum deals with the draft.Chapter 3a) Residents to be informed on the integrateddevelopment planning process as a wholeincluding, on crucial public events related tothat process through:Public announcements (appropriate media tobe determined in the “work plan”);23

3.5 Co-Operative GovernanceOne of the critical components in formulating a credible IDP is the levelof participation by all three spheres of government. This is importantas it ensures co-operative governance; this is core in our democraticsociety. It is important to acknowledge that the communities that weserve, view government as a single uniform structure, there is littleregard for jurisdiction and the autonomous nature of thesespheres. It is thus critical to establish effective inter-governmentalrelations; this is perhaps the most critical component of achievingefficient and effective service delivery.The KwaDukuza Municipality has, over the years, advocated forgreater synergy between all spheres of government providingservices within its’ municipal area. The municipality has heldsuccessful engagements with provincial departments in anattempt to align municipal and provincial strategies in a mannerthat is responsive to the needs of the community. The culmination ofthese concerted efforts by the different spheres will be the realizationof the targets set by government in 2004; namely:• Reducing unemployment by half through new jobs, assistanceto small business, opportunities for self - employment andsustainable community livelihood;• Reducing poverty by half through economic development,comprehensive social security, land reform and improvinghousehold and community assets;• Creating a compassionate government service to the people,national, provincial and local representatives who are accessible;and citizens who know their rights and insist on fair treatmentand effective service;• Accelerating the delivery of basic services and increasing accessto services is a core priority for the term of government.It must be noted that even though there are challenges that exist inensuring all departments are represented in these engagements, thesituation has improved over the years and the level of contributionshas also been increasing. The multi-sectoral engagements thatthe municipally facilitates, as part of the IDP process, offers sectordepartments with an opportunity to interact with the communitiesthey serve.Ensuring effective intergovernmental relations is not just a“nice to have” but it’s a legislative requirement in terms of theIntergovernmental Relations Framework Act of 2005. This act patentlystates that; for government to address the pervasive challenges ofpoverty, underdevelopment, and marginalization there is a need forco-operation and integration of actions by the various spheres ofgovernment.The issue of alignment between financial years for all three spheresof government still poses some difficulty in terms of sourcing projectinformation linked to budget allocation. Below is a brief synopsis ofthe departments, that we interact with, and the programmes andprojects envisaged for KwaDukuza for the 2011/12 financial year.24KwaDukuza Municipality Integrated Development Plan - 2011/16

Chapter 325

CHAPTER4KwaDukuza EnvironmentalManagement27

Chapter 4KwaDukuza Environmental Management4.1 KwaDukuza MunicipalityEnvironmental ManagementAt the beginning of the 21st century, environmental issueshave emerged as a major concern for the welfare of peopleand the past few years have witnessed an extensive changein the attitudes, approaches and policies of most people whoare involved in development planning. This major change inattitudes of people is aiming at strengthening the conceptof sustainability principles in all development planningactivities. In line with the National Framework Documentfor the Department of Agriculture, Environmental Affairs andRural Development (DAEA&RD), KwaDukuza Municipalityhas recognized the need to formulate environmental policiesthat will assist in addressing the issues of sustainablesocial, economic and environmental development. Theintention of this framework is to strengthen sustainabilityin the Integrated Development Planning of municipalities.KwaDukuza Municipality has developed a StrategicEnvironmental Assessment which seeks to ensure that theunprecedented pressure placed by the development in themunicipality does not compromise the state of natural goodswithin KwaDukuza.KwaDukuza Municipality uses its Strategic EnvironmentalAssessment and the Provincial and National Policies onEnvironmental Management to inform developmentalplanning and approval of major projects that supportsustainable development within the Municipal area.This Municipality strives to be an environmentallysustainable municipality that anticipates, manages,and reduces its vulnerability to potential global andlocal environmental shocks and works consistentlywith the department of environmental affairs todrastically reduce the impact of its built environmentand urban processes on the broader envelope ofnatural resources.KwaDukuza Municipality ensures that global environmentalissues such as climate change, natural disasters as well asglobal warming are part of developmental planning. Moreemphasis is being placed on activities that are regardedas having the potential of perpetrating acceleration ofglobal climate change. The formulated EnvironmentalPolicy Framework for KwaDukuza Municipality incorporatesthe Municipal Status Quo Analysis, Municipal StrategicEnvironmental Assessment, Municipal EnvironmentalManagement Plan, Municipal Open Space Systems andGeographic Information Systems based on Spatial DecisionSupport Tools.4.2. White paper on NationalEnvironmental ManagementAct, 1998The White Paper on Environmental Management provides thefoundation for South Africa’s environmental policy. Amongstother things, the White Paper on Environmental Managementlays down the following policy directives:• Development must be sustainable so thatthe needs of the present generation are metwithout compromising the ability of futuregenerations to meet their own needs;• Equitable access to environmental resources,benefits and services to meet basic human needsand ensure human well being must be pursued;• Decisions must take into account the interests,needs and values of all interested parties, andthis includes recognizing all forms of knowledge,including traditional and ordinary people4.3. Linkages with principles of NationalEnvironmental ManagementAct, (107 of 1998)KwaDukuza Municipality regards National EnvironmentalManagement Act as one of the very important tools that willassist it in achieving its long term vision, hence KwaDukuzaMunicipality consider the following principles whenimplementing its programmes and projects:1) Environmental management must place peopletheir needs at the forefront of its concern,and serve their physical, psychological, developmental, cultural and social interests equitably.2) Development must be socially, environmentallyand economically sustainable.3) a) Sustainable development requires theconsideration of all relevant factors includingthe following:i) That the disturbance of ecosystems and lossof biological diversity are avoided, or, wherethey cannot be altogether avoided, areminimized and remedied;ii) That pollution and degradation of the environment are avoided, or, where they cannotbe altogether avoided, are minimized andremedied;iii) That the disturbance of landscapes and sitesthat constitute the nation’s cultural heritageis avoided, or where it cannot be altogetheravoided, is minimized and remedied;iv) That waste is avoided, or where it cannot bealtogether avoided, minimized and re-usedor recycled where possible and otherwisedisposed of in a responsible manner;28KwaDukuza Municipality Integrated Development Plan - 2011/16

v) That the use and exploitation of non-renewablenatural resources is responsible and equitable, andtakes into account the consequences of the depletionof the resource;vi) That the development, use and exploitation ofrenewable resources and the ecosystems of which theyare part do not exceed the level beyond which theirintegrity is jeopardized;vii) That a risk-averse and cautious approach is applied,which takes into account the limits of currentknowledge about the consequences of decisions andactions; andviii) That negative impacts on the environment and onpeople’s environmental rights be anticipatedand prevented, and where they cannot be altogetherprevented, are minimized and remedied.b) Environmental management must be integrated,acknowledging that all elements of the environment arelinked and interrelated, and it must take into account theeffects of decisions on all aspects of the environment andall people in the environment by pursuing the selection ofthe best practicable environmental option.c) Environmental justice must be pursued so that adverseenvironmental impacts shall not be distributed in sucha manner as to unfairly discriminate against any person,particularly vulnerable and disadvantaged persons.Equitable access to environmental resources, benefits andservices to meet basic human needs and ensure humanwell-being must be pursued and special measures maybe taken to ensure access thereto by categories of personsdisadvantaged by unfair discrimination. Responsibility forthe environmental health and safety consequences of apolicy, programme, project, product, process, service oractivity exists throughout its life cycle.The participation of all interested and affected parties inenvironmental governance must be promoted, and all peoplemust have the opportunity to develop the understanding,skills and capacity necessary for achieving equitable andeffective participation, and participation by vulnerable anddisadvantaged persons must be ensured. Decisions musttake into account the interests, needs and values of allinterested and affected parties, and this includes recognizingall forms of knowledge, including traditional and ordinaryknowledge.d) Community wellbeing and empowerment must be promotedthrough environmental education, the raising ofenvironmental awareness, the sharing of knowledge andexperience and other appropriate means.4) The social, economic and environmentalimpacts of activities, includingdisadvantages and benefits, mustbe considered, assessed and evaluated,and decisions must be appropriate in thelight of such consideration and assessment.The right of workers to refuse workthat is harmful to human health or theenvironment and to be informed ofdangers must be respected and protected.e) Decisions must be taken in an open andtransparent manner, and access toinformation must be provided inaccordance with the law.f) There must be intergovernmentalco-ordination and harmonization ofpolicies, legislation and actions relating tothe environment.g) Actual or potential conflicts of interestbetween organs of state should beresolved through conflict resolutionprocedures.h) Global and international responsibilitiesrelating to the environment must bedischarged in the national interest.i) The environment is held in public trustfor the people, the beneficial use ofenvironmental resources must servethe public interest and the environmentmust be protected as the people’s commonheritage.j) The costs of remedying pollution,environmental degradation andconsequent adverse health effects andof preventing, controlling or minimizingfurther pollution, environmental damageor adverse health effects must be paid forby those responsible for harming theenvironment.k) The vital role of women and youth inenvironmental management anddevelopment must be recognized and theirfull participation therein must bepromoted.l) Sensitive, vulnerable, highly dynamicor stressed ecosystems, such as coastalshores, estuaries, wetlands, and similarsystems require specific attention inmanagement and planning procedures,especially where they are subject tosignificant human resource usage anddevelopment pressure.Chapter 429

4.4. Environmental Management Tools:KwaDukuza Municipality uses the adopted environmentalmanagement tools as a way of supporting the precautionaryprinciple approach which serves as a guide to prevent theoccurrence of environmental degradation within municipalarea of jurisdiction. The Precautionary Principle approachhas many advantages since it encompasses the belief thatthe developers together with society should seek to avoidenvironmental damage by careful planning and stoppingpotentially harmful activities and promote sustainability ofMunicipal resources.Environmental awareness programmes need to be extendedto all areas within the municipality. Notwithstanding the factthat the general public is becoming increasingly aware of theenvironmental issues such as global warming, sustainabledevelopment activities, renewable energy, greenhouse effects,water and air pollution, only a few are knowledgeable onwhat to do in preventing environmental degradation. Duringthese programmes, the following tools will be used4.6. Involvement of EnvironmentalNGO/NPOsKwaDukuza Municipality has a good working relationshipwith the local environmental NGOs and their input inthe strategic planning of the municipal developmentprogrammes is always taken into consideration by themunicipality. Caring for the environment is a joint venturewithin the municipality which includes local communitiesand all relevant stakeholders. Issues of global climatechange are taken very seriously and NGOs are playing acrucial role in ensuring that the municipality adhered toenvironmental sustainability principles as are outlined by theNEMA regulations. KwaDukuza Municipality believes thatmulti-sectoral coordination, convergence and sustainabledevelopment can be achieved with participation of NGOs.• National Environmental Management Act i.e.Environmental Impact Assessment;• Environment Conservation Act;• Water Act;• Provincial Biodiversity Act;• Strategic Environmental Assessment; EnvironmentalManagement Plan; Municipal Open Space Systems4.5. Urban Development FrameworkKwaDukuza Municipality is growing at a rapid rate in termsof spatial development and general municipal infrastructure;it is against this backdrop that the Municipality aims tostrengthen its commitment to conduct its business in linewith the vision of the Urban Development Framework. Thisframework has identified the following key programmeswhich also form the basis for the municipality’s developmentagenda:• Integrating KwaDukuza with a strategic focuson integrated development planning and endingsegregation and inequality instituted by apartheid;• Improving housing and infrastructure to build habitableand safe urban communities, and increase access tofinancing and encouraging investment in housing;• Promoting urban economic development to enhancethe capacity of urban areas to build on local strengthsto generate greater local economic activity and alleviateurban poverty30KwaDukuza Municipality Integrated Development Plan - 2011/16

Sustainability framework - KwaDukuza Strategic Environmental AssessmentNatural SystemKey ResourcesDescription• Has a favorable climatecondition• Bio-climatic profile issustainable for certain types ofagricultural production such assugar cane and timberObjectives forSustainabilityStrategy forSustainabilityUse the Air Quality Act 39of 2004Responsibility /LegislationThe District MunicipalityClimate /Air Quality• Need to avoidenvironmentaldegradation andpollution• Air quality to conformto standards% of licensed industrieswhich did not comply withthe license conditions arebeing considered.% of these industriesfor which there was anenforcement responseDEAT & IndustryUse the Atmospheric Pollution ActEnvironment ConservationAct, Road Traffic Act and theOccupational Health and SafetyAct are the current Centralgovernment sets of legislationgoverning air quality.The Atmospheric PollutionPrevention Act has been repealedwith the Air Quality Act, butthis has not been enacted bythe Minister. The AtmosphericPollution Act provides theambient air quality standardsand also the guidelines for theschedule process.Topography &Geology• Has a good agricultural soil• The varied topographyincreases the aesthetic appealof the area and providesopportunities for a wellplanned• Lo of illegal sand mining.Need to look into effectiveways of its prevention sinceit has a high potentialof disturbing the naturalenvironment. Permits need tobe monitored regularly• Need to safeguardsoil quality andquantity and reducecontamination• Land cover typologies• Agriculturalclassification• Area of contaminatedlandThe District Municipality,KwaDukuza Local MunicipalityDWAF, DAEARD, Farmers andSand MinersConservation of Agriculturalresources ActGuidelines for Agriculturalproduction Mineral & Petroleumresources development Act of2002 (Act 28 of 2002)Mining guidelinesUse Provincial Conservation planas guide.Hydrology- Rivers and Dams- Wetlands- Estuaries• All of the drainage system &wetlands of KwaDukuza areconsidered to have importantecological value due totheir inherent high levelsof biodiversity and speciescomposition which differsfrom surrounding uplandhabitats.• Water underpins localdevelopment by ensuringperennial flow of water foruses such as abstractionfor public water supply andirrigation.• They provide natural productsin the case of wetlands, andalso provide natural areaswhich can be utilized forrecreational activities andtourism as well as biodiversitypersistence.• There are different types ofwetlands hydro-geomorphicwetland located within themunicipality (valley bottom,floodplain and hill slopeseepage), each of which playsa slightly different but crucialecological function.• Minimize the loss of wetlands• Minimize level of waterpollution• Reduction in stream flow• Remove the invasivevegetation in our riparianareas• No new developmentor any change in landuse must occur withinthe boundaries, orwithin a reasonablebuffer zone of a waterresource, includingwetlands and drainagelines• Water qualitystandards set by DWAFmust be conformed to.• A water resourcesstrategy whichprevents overabstraction must beimplemented• Quantification ofwetland areas losswithin KLM• All existing cultivationwithin wetlands mustbe phased out and asuitable buffer zoneestablished.• The principles of thesustainable sugarinitiative should befollowed and promotedwith the sugar caneindustries.• Protection andpreservation ofwetlands (includerehabilitation andrestoration )• Conduct a study toquantify water thatthe municipality havein line with planneddevelopment scale• Compliance with waterquality guidelines anddischarge conditionsand associatedenforcement• Compliancewith abstractionlicense conditionsand associatedenforcement• % of wetland area lost• area of wetland/riparian habitat beingrehabilitatedThe department of WaterAffairs and Forestry is broadlyresponsible.The relevant legislation is theNational Water Act/ The Actprovides for the protection andsustainable use of all WaterResources, and seeks toPrevent water pollution.Development should in no waydisturb damage or alter thecharacteristics of water resources.In the case of river this includesthe riparian zones associatedwith them.‘Protection’ in relation to a waterresource entails: Maintenance ofthe quality of water resources tothe extent that the wateruse may be used in asustainable way;• Prevention of degradationof the water resources• The rehabilitation of thewater resourceIn addition the Conservation ofAgricultural resources Actapplies to certain aspects oferosion control and waterresource protection in the contextof the agricultural sector.31

guidelines that are introduced by the National and ProvincialDepartments.In strengthening environmental sustainability throughSustainable Waste Management, the Municipality is currentlyin the process of developing a greening policy for themunicipality which is currently on a draft stage based on thesustainable development principles.4.8. Strategies and Priorities forIntegrated Waste ManagementThe Municipality’s’ Integrated Waste Management Plan setsthe objectives and targets that will have to be achievedwithin a specific time frame. The main objective of the WasteManagement Plan is to ensure that waste is managed inan environmentally sound and integrated manner so as toprevent harm to the health of the people and the environment.The Municipality has identified three core strategies that willassist in achieving integrated waste management:1. Waste Avoidance and Minimization Strategy2. Reduction and Resources Recovery Strategy3. Management of Residual waste StrategyChapter 44.9. Waste Avoidance and MinimizationStrategyThe waste avoidance and minimization strategy is aimingat the avoidance of waste through the adoption of ecoefficiencyand waste avoidance measures. It is the most costeffective method of waste management intervention and it isbest implemented at point source. The most important thingabout waste avoidance is that it conserves natural resources,reduces the amount of waste requiring disposal to landfills,thereby increasing the airspace.4.10. Waste Reduction and ResourceRecovery StrategyThe resource recovery strategy is aiming at reducing thevolume of waste to be disposed while maximizing theeconomic value of resources during its life cycle throughre-use, recycling and reprocessing, and energy recovery inpreference to disposal. The need to pursue resource recoveryis driven by a combination of additional economic andenvironmental factors such as:• the need to conserve finite resources• the need to reduce energy consumption• the need to reduce reliance to on the landfill• The reality of increasing waste disposal costs.4.11. Management of Residual WasteStrategyIrrespective of how efficient the municipal can be, there willalways be a portion of waste stream that cannot be practicallyor economically avoided or recovered. This will result inresidual waste that ends up in the landfill site. Residual wastehas to be managed in an environmental sound manner.Information management systems, sustainable collectionservices, capacity, education and awareness programmes,robust treatment and disposal systems have to be in placeto handle residual waste in a responsible manner with theobjective of protecting human health and the environment.33

KDM Waste Management Strategic Goals and Action PlansStrategic Goal Activities Target Date Responsible Authority Financial RequirementLegislative andRegulatoryIntegrated WasteManagementBudgetingEconomicInstrumentsWasteCollectionStreet CleaningComply with the provisions of theWaste Act 59 of 20082014 KwaDukuza Municipality R1 050 000Appoint the Waste ManagementOfficer2014 KwaDukuza Municipality R 650 000Develop and Implement WasteInformation System strategy2014 KwaDukuza Municipality R 450 000Develop and Implement Wastemanagement Standards2014 KwaDukuza Municipality R 150 000Review and implement theintegrated Waste Management Annually KwaDukuza Municipality R 450 000PlanConduct and Implement the S78Study on waste Management2015 KDM/National Treasury R3 000 000Conduct and Implement Contractmanagement model in line withthe requirements of MFMA2013 KwaDukuza Municipality R0Determine and implement Capitalexpenditure and Operational 2014 KwaDukuza MunicipalityBudgetDetermine Revenue base (updatedand audited customer base)2014 KwaDukuza Municipality R 700 000Develop and implement fullcost accounting opportunitycosts (economic, social &2014 KwaDukuza Municipality R 250 000environmental) human healthimpacts.Set tariffs that consummate withthe consumption of servicesfor cleaning, waste collection 2014 KwaDukuza Municipality R 150 000(general, business, industrialwaste)Facilitate the development of thewaste recycling markets in the 2014 KwaDukuza Municipality R 35 000municipal areasDevelopment of tariff rebatesystem for waste minimization 2013 KwaDukuza Municipality R 55 000clubsDevelop an operationalIntegrated Waste Management 2014 KwaDukuza Municipality R 250 000StrategyImplement the operationalIntegrated Waste Management 2014 KwaDukuza Municipality R 150 000StrategyOptimize the collection rounds 2014 KwaDukuza Municipality R 150 000Roll out the services to the areascurrently not being serviced2014 KwaDukuza Municipality R 3 600 000Develop and implementmonitoring system for waste 2014 KwaDukuza Municipality R 150 000collectionDevelop an operationalIntegrated Waste Management 2014 KwaDukuza Municipality R 100 000StrategyOptimize the cleaning rounds 2014 KwaDukuza Municipality R0Roll out the services to the areascurrently not being serviced2014 KwaDukuza Municipality R034KwaDukuza Municipality Integrated Development Plan - 2011/16

WasteminimizationWaste disposalIntegrated WasteManagementEducation andawarenessHazardous andSpecial wasteManagementDevelop and implement wasteminimization strategyDevelop waste drop off facilities instrategic areas in the municipalityProvide waste separationinfrastructure for waste separationin all drop off facilities for storageand transport of the wasteImplement the Closure andRehabilitation Plan of ShakavilleDisposal SiteDevelop& implement the monitoringsystem for the New GuilderlandWaste disposal facilityDevelopment of education andawareness programmesRoll out the education awarenessprogrammeRecruit and appoint personnel inkey positions: Contract managementsupervisoryDevelopment of Human Resourcedevelopment plan through WorkSkills PlanDevelop or procure leadership andmanagement programmesIdentify sources of hazardous andspecial wasteRegister new and existing hazardousand special wasteMonitor disposal and contaminationin landfill site receiving hazardousspecial waste2014 KwaDukuza Municipality R02016 KwaDukuza Municipality R 500 0002014 KwaDukuza Municipality R 500 0002014 KwaDukuza Municipality R 2 000 0002014 KwaDukuza Municipality R 150 0002014 KwaDukuza Municipality R 250 0002014 KwaDukuza Municipality R02014 KwaDukuza Municipality R 1 400 0002014 KwaDukuza Municipality R 50 0002014 KwaDukuza Municipality R 50 0002014 KwaDukuza Municipality R 35 0002014 KwaDukuza Municipality R02014 KwaDukuza Municipality R0Chapter 435

Chapter 5Spatial Consideration5.1. KwaDukuza Spatial DevelopmentFramework VisionThe spatial development frameworkwill contribute to the balanced physicaldevelopment of the municipality byestablishing a spatial developmentstructure, guiding the management of futuredevelopment, accommodating developmentpressures and additional investment,maintaining and further developing theeconomic potential of the municipalitywhile protecting and integrating the naturalenvironment of the area.5.2 Legislative FrameworkSection 26 of the Municipal Systems Act (no 32 of 2000)state one the key components of the IDP is a “SpatialDevelopment Framework which must include the provisionof basic guidelines for a land use management system forthe municipality”. The KwaDukuza SDF, which was adoptedby Council in June 2009, is currently under review.5.3. Objectives of the KwaDukuzaspatial development frameworkThe following are the objectives for the KwaDukuza SDF andLUMS:• To provide strategic guidance for the future, physical/spatial development of KwaDukuza Municipal area• Ensuring that the envisaged physical/spatialdevelopment reflects the social, economic, environmentaldevelopment issues identified in the IDP, i.e. while theSDF and LUMS provides primarily guidance for theexisting and future physical / spatial development of themunicipality, such development can only be consideredappropriate if it adequately addresses the social,economic, environmental, institutional issues identifiedin the IDP.• To create a management tool for the future development,i.e. providing a municipal-wide comprehensivetown planning scheme which reflects the variousexisting development conditions and which providesdevelopment management for the first steps of realizingthe SDF.• To establish a development structure, i.e. identifyingbasic structuring elements which provide developmentguidance, certainty, growth opportunities and flexibility,• To facilitate integration, i.e. ensuring appropriatevertical and horizontal linkage of policies, intentionsand development,• To create generative systems, i.e. encouraging theestablishment of development which generatesadditional activities, variety and growth,• To promote incrementalism, i.e. acknowledgingdevelopment as a continuous process and facilitatingan ongoing development process,38KwaDukuza Municipality Integrated Development Plan - 2011/16

• To create a sense of place, i.e. building on the specificopportunities of each location and encouraging thecreation of unique environments,• To cluster development and establish a centre strategy,i.e. discouraging development sprawl, encouraging theclustering of compatible development and establishinga hierarchy of service nodes,• To identify access routes as investment lines, i.e. utilizinglevels of accessibility as guidance for the location ofdevelopment components,• To recognize natural resources as primary assets, i.e.positively integrating natural elements in the creation ofa human and sustainable environment,5.4. Alignment with the National SpatialDevelopment PerspectiveThe KwaDukuza SDF is in line with the National SpatialDevelopment Perspective. The vision of the NSDP states that“South Africa will become a nation in which investmentin infrastructure and development programmes supportgovernment’s growth and development objectives:• By focus economic growth and empowerment creationin areas where this is most effective and sustainable;• Supporting restructuring where feasible to ensuregreater competitive• Fostering development on the basis of local potential• Ensuring that development institutions are able toprovide basic services across the country5.5. Alignment with Provincial Growthand Development StrategyThe KwaZulu-Natal Provincial Growth Development Strategyis a framework that indicates areas where economicopportunities exist; it also outlines the development prioritiesof the province. Some of the main objectives of the PGDSare to:• Serve as the overarching framework for development inthe province• Guide the provincial government as well as otherspheres, sectors and role players from civil society whichcan contribute to development in the province.• Set a long term vision and direction for development inthe province.• Guide the district and metro areas’ developmentagenda.The eThekwini-uMhlathuze corridor, which is thePrimary corridor in terms of the PSEDS, traverses theKwaDukuza Municipality. The NSDP outlines variouscategories of potential; the primary corridor of KZNconsists of the following categories of potential:• Production of high value, differentiated goods• Production of labour intensive, mass producedgoods• Innovation and experimentation• Retail and private sector services• Tourism• KwaDukuza represents the development engineof the iLembe District and forms an important linkbetween eThekwini and Richards Bay.The potential for development in KwaDukuzaMunicipality can be described as follows:• Located along the coast and coastal developmentcorridor between the eThekwini Municipality, itsharbour and new airport, and the Richards BayHarbour,• Major coastal development opportunities butalso requirements for appropriate conservation;new national environmental legislation requiresa much more sensitive approach to coastaldevelopment;• Potential increased development pressures andopportunities emanating from the south alreadyvisible in terms of pressure for additional coastalaccommodation and various forms of economicdevelopment;• Potential for skewed development favouring thesouth,• Adjacent municipalities to west and north ofrural character (Maphumulo and NdwedweMunicipalities) with the potential to provideadditional agricultural and tourism activities;• PSEDS suggests concentration on opportunitiesrelating to beach coastal tourism, improved inlandlinkage, agriculture and agri-processing;• Providing some regional and district east-westlinkages.Chapter 539

5.6. KwaDukuza Infrastructure andServicesKwaDukuza accommodates a basic transportation networkconsisting of the N2, the R102, the R74, the R614 and aseries of local access roads, in particular in the coastaland central zone linkages in the west and to the westernmunicipalities are more limited. The North Coast Rail extendsthrough the length of the municipality always in proximityof the R102 providing an important complementary service.Besides some private airfields, there is no existinginfrastructure. The ILembe SDF suggests inter alia thatKwaDukuza as the local and district node should consider theestablishment of an appropriate airfield at KwaDukuza Town.The King Shaka Airport just south of KwaDukuza has had asignificant impact on the development of the municipality.The present provision of services such as water and electricitysupply, sanitation etc appears mostly adequate in the centraland eastern parts of the municipality, this, will howeverprovide constraints for the development in the near future. Inoverall terms the development implications of the local statusquo analysis suggests that:• As in most municipalities there exists a greatneed for additional appropriate accommodationand economic development, future residentialdevelopment needs to be more structuredand relate on the one hand to the creation ofemployment opportunities while on the otherhand ensuring the maintenance of a functionaland attractive natural environment• The coastal and riverine environments requirea greater level of sensitive approach andprotection, both for the retention of a goodhuman environment, a functional agriculturalsector as well as an increased tourism andrecreation development.• While the present agricultural development isat present the most significant contributor tothe economic development of the municipality,pressures for other development are likely toreduce its significance in the future. Pressure onland at present used for agricultural activities,mostly in the form of sugar cane farming, maytherefore require in future a more efficient landutilization as well as a greater diversification.• A significant number of land claims in a centralband of the municipality may have a delayingimplication on development in this region.• In overall terms, KwaDukuza has greatdevelopment opportunities through its locationand contents, in particular if it is possible tomanage development pressures and balancedevelopment better throughout the area andif the municipality develops an appropriatecapacity level for the management andpromotion of appropriate development.5.7. Development Implications forKwaDukuza• King Shaka Airport and Dube Tradeport• Although located outside of the municipality,the close proximity of the King Shaka Airportand related trade port has provided significantdevelopment opportunities for KwaDukuza.• The strategic objectives for KwaDukuza includeamong other things:• The potential for tapping into the growing tourismindustry, driving tourism growth through access tointernational flights and accommodating increasedpassenger demand• The potential for tapping into the increasinggrowth and sophistication of the Global Logisticsmarket, creating air freight logistical efficienciesand stimulating growth in competitiveness inglobal supply chains.• Supporting high value manufacturing, value addedlogistics and export perishables production withICT support and co-ordinated government servicesin one place.• Attracting a wide range of investors, operators,users and tenants, with world class facilities.• Socio-economic benefits for KwaDukuza couldinclude growing employment, increasingempowerment, alleviating poverty and providingbroad access to infrastructure.• The southern part of the KwaDukuza, the alreadyburgeoning Ballito and environs, is likely to gainadded development impetus as an establishedhigh income residential area with high endservices, industrial areas, etc. The area is likely toexperience more development pressures in thefuture which needs to managed appropriately andbalanced throughout the municipality.5.8. Development Constraints forKwaDukuza• The location and condition of the KwaDukuzaMunicipality suggests that physical developmentconstraints are limited, including:• Environmentally sensitive coastal strip which, althoughunder substantial pressure for recreational usage andaccommodation, in particular in the south, needs to bebetter protected and managed, Better protection andmanagement of the river, lagoon and wetland systemsto maintain and improve appropriate environmentalfunctionality and living conditions,• Present relatively unstructured housing development interms of location and integration into necessary socialand economic support systems,• Limitations in terms of carrying capacity of identifiedriver catchment areas,• The existence of numerous land claims in the centralportions of the municipality, although it is agreed thatthis may primarily be an issue of development phasing,40KwaDukuza Municipality Integrated Development Plan - 2011/16

• The existence of poorer and less developedcommunities in the municipalities to the west andnorth,• Present limitations in the provision of appropriatephysical and social support services to peripheralcommunities,5.9. Development TrendsPresent development trends are clear and strong andinclude:• Development pressures in the south of themunicipality, in particular the Ballito region,ranging from business and commercialdevelopment to residential and increasedtourism related activities; this has increaseddue to the development of the King ShakaInternational Airport (KSIA) and the DubeTradeport (DTP).• Development pressures on the coastal strip,again in particular in the south, primarilyfor recreational and various forms of upmarket residential development, again thishas increased due to the development of theKSIA and DTP• Pressure on land presently under agriculturalusage, this is a common feature surroundingurban and easily accessible locations andneeds to be dealt with in the context of theimportance of the agricultural sector in theeconomy of the municipality,• Pressure for providing additional housingaccommodation for middle and low incomehouseholds,• Increase in the prevalence and importanceof the informal economy.5.10. Land Use Management ContextThe KwaDukuza Municipality is at an advanced stagein the preparation of its’ Land Use ManagementScheme (LUMS). The KwaDukuza LUMS will takeguidance of the SDF further in terms of establishinga control and management tool of the land use anddevelopment of the municipality. In essence the LUMSwill not only provide a basis for the implementationof the strategic intentions of the SDF, but it will alsoprovide a framework for managing development andthe translation of land uses into zones.Chapter 55.11. Development Scenarios for KwaDukuza MunicipalityThe following series of maps attempts to build up the SDF in a series of functional steps. They also include a briefdescription of the various urban clusters within the municipality. The complete SDF is available on the KwaDukuzawebsite:http://www.kwadukuza.gov.za/docs/SDF%20-%201.pdfBALLITO / COMPENSATION NODEThis is the most Southerly Node ofKwaDukuza Municipality. It seeksto exploit opportunities offered byits close proximity to the eThekwiniMunicipality and the Dube Tradeport(King Shaka International)The KwaDukuza SDF seeks to find abalance between reasonable andrealistic development opportunitiesoffered by this node with developmentneeds and opportunities ofother parts of the Municipality.41

In terms of economic potential, this cluster is second to the Ballito/Compensation node. It is the administrativecentre of KwaDukuza with a high presence of government institutions. The KwaDukuza CBD is currently thesubject of urban renewal in line with the KwaDukuza CBD Regeneration. The KwaDukuza SDF proposes thelocation of future residential and economic development along the main arterial routes i.e. R102 and R74.The KwaDukuza urban cluster is suggested to continue accommodating agricultural activities as indicated. Thepotential for diversification and intensification should however be investigated.Chapter 5This is the most northerlynode and it borders Mandenimunicipality. The SDF recognizesthe town of Darnall as beingcentral to this node with futureeconomic opportunities beinglocated along the R102. Thisnode has strong linkages withZinkwazi, a small scale coastaltown with strong emphasis onresidential development. TheSDF proposes this node takefull advantage of its locationand exploit the strong linkagesit has with Mandeni andKwaDukuza town.43

Chapter 5Long term developmentThe suggested long term development of the municipality is suggested to continue along the major access routes, excluding theN2, a high speed route providing no direct access. This would also include more extensive development of the western part ofthe municipality, together with the nodes indicated, assuring at the same time a greater level of integration with the central andeastern development. Such integration also needs to extend beyond the western boundary of KwaDukuza.45

CHAPTER6Economic Development& Growth47

Chapter 6Economic Development & Growth6.1. BackgroundAs part of the policy thrusts contained in the DPLGNational Framework for LED (2006), it is statedthat in the promotion of LED, the primary focus ofmunicipalities should be:• provisions of infrastructure and quality andreliable services• managing spatial policies• land-use regulation and developmentapplications• managing service tariff policies• managing a progressive tax system• marketing the territoryUN-Habitat defines local economic development (LED) as aparticipatory process where local people from all sectors worktogether to stimulate local commercial activity, resulting in aresilient and sustainable economy. It is a tool to help createdecent jobs and improve the quality of life for everyone,including the poor and marginalized. Local economicdevelopment encourages the public, private and civil societysectors to establish partnerships and collaboratively find localsolutions to common economic challenges. The LED processseeks to empower local participants in order to effectivelyutilize business enterprise, labour, capital and other localresources to achieve local priorities (e.g., promote qualityjobs, reduce poverty, stabilize the local economy and generatemunicipal taxes to provide better services).KwaDukuza Municipality believes that if the abovementionedUN-Habitat definition of LED is implemented at its totality, itcan provides a comprehensive and integrated municipal localeconomic development strategy. KwaDukuza Municipalityhas developed an LED Strategy for the entire municipality.KwaDukuza Municipality’s vision for the local economicdevelopment is to develop a holistic economic developmentand growth plan which is aimed at attending to infrastructuralbacklogs (water, roads, storm water, electricity, housing, ICTetc); creation of conducive environment for the attraction ofboth domestic and foreign investment; creation of decentjob opportunities; elimination of poverty; promotion of socialcohesion as well as the creation of sustainable economy forthe future generation of KwaDukuza.From year 2000, KwaDukuza Municipality has maintainedthat it wants to build KwaDukuza as a strong economicbase for the entire region of Ilembe. To achieve this,KwaDukuza Municipality has identified local economicdevelopment (LED), together with financial managementand infrastructure development as driving forces for itsintegrated development planning. The principal objective ofKwaDukuza Municipality is to build a vibrant local economythrough creating an environment that is conducive forboth domestic and foreign investment to be attractedto KwaDukuza area which will ultimately lead to localeconomic growth and development, and the creation ofdecent job opportunities.6.2. KwaDukuza Vision for EconomicDevelopmentKwaDukuza Municipality vision for economic development isaimed at contributing to the attainment of KwaDukuza 2030Vision which seeks to ensure that KwaDukuza becomes ” avibrant city competing in the global village both economically,socially, politically and in a sustainable manner.’ KwaDukuzavision for its economic development is therefore that ofdeveloping a holistic economic development and growthplan which is aimed at:‘Building a vibrant local economy throughstrengthening and diversifying economicsectors thereby delivering sustainable andaffordable services in a safe and healthyenvironment’.This vision shall be realized through putting more focus andemphasis on the following:• Putting more resources on infrastructural developmentthrough attending to backlogs on water, roads, stormwater, electricity, housing, information, communicationand technology;• Creation of conducive environment for the attractionof both domestic and foreign investment by developinginvestor friendly policies that will enable KwaDukuza toentice both domestic and foreign investors;• Creation of decent job opportunities in line withgovernment the 2011 President’s State of the NationalAddress, New Growth Path and Extended Public WorksProgramme;48KwaDukuza Municipality Integrated Development Plan - 2011/16

KwaDukuza LED Strategy focuses on both propoorand pro-growth LED strategies. Amongstthe issues that KwaDukuza is focusing on, are:• The attraction of investment throughencouraging Industrial Development:KwaDukuza has developed working relationshipswith Trade & Industry KwaZulu Natal so thatthe latter can identify foreign investors who canbe convinced to come to KwaDukuza. But theMunicipality on its own is also encouraging localindustries to come and invest in KwaDukuza.During the next five years, KwaDukuzaMunicipality will be enhancing its businessretention & attraction strategy.• Encouraging of local procurement: This willbe done through ensuring that the municipalitybuys from local business as much as possible.• Supporting the informal sector: That will bedone through information dissemination as wellas the provision of resources & facilities wherepossible.• Promotion of Waste Recycling: KwaDukuzaMunicipality will encourage this through educatingthe communities about the opportunities providedby this sector.• Promotion of Subsistence Farming & UrbanAgriculture: KwaDukuza Municipality hasdeveloped an agricultural Development Plan whichseeks to promote agricultural and subsistencefarming. The KwaDukuza LED Directorate isstill exploring the possibility of encouraging the“1-ward-1-product” programme, the aim of this1-ward-1-product programme will be to ensurethat the ward communities are encouraged topromote one agricultural product in their ward sothat they can sell the product not only to externalmarkets but to other wards as well.• Formalization and regularization of Bed &Breakfast business throughout KwaDukuzaincluding township based tourism.6.3. KwaDukuza LED Focus AreasAs part of the broad economic vision for KwaDukuzawhich will ultimately contribute to the attainment ofKwaDukuza Vision 2030, KwaDukuza Municipalityhas identified a number of focus areas that willassist in attainment of its holistic vision for economicdevelopment. These LED focus areas further reinforceKwaDukuza vision to adopt Economic Developmentand Infrastructure Development as the main drivers forKwaDukuza Integrated Development Plan.6.4 Land and Building DevelopmentThis focus area is aimed at acquiring land for botheconomic development and housing delivery. It mustbe mentioned that KwaDukuza Municipality does nothave enough financial resources to acquire land forthis purpose, but it has already had discussions withHousing Development Agency with an aim of enteringinto agreement with HDA to buy land for KwaDukuza,especially for housing delivery. To ensure that landthat is already owned by KwaDukuza Municipalityis used wisely, in 2010, KwaDukuza Municipalityadopted a Land Banking Policy by which it wasdiscouraging the disposing off of land but encouragingthe acquiring of more land for purposes of botheconomic and housing development. It is the intentionof KwaDukuza Municipality to ensure that pockets ofland that are owned by KwaDukuza and those whichhave been purchased through Land Banking Policy,are fully serviced and ready to be utilised for economicdevelopment purposes.KwaDukuza LED strategy is also encouraging thegrowth of Small Medium and Micro Enterprises(SMME’s) by identifying the need to provide workshopsand small industrial premises especially for the benefitof the nascent SMME’s that will ultimately graduateinto big business.As part of this LED focus area, urban regenerationprogramme is already underway and this programmeis aimed at stimulating economies by developingeconomic centres around KwaDukuza. To this end,KwaDukuza Municipality has already developedKwaDukuza CBD Regeneration Study , BallitoNode Precinct Plan Shakaskraal Node Urban andDevelopment Design Framework Ballito CBD UrbanDesign Framework. Plans to develop Darnall PrecinctPlan, uMhlali Urban Design and DevelopmentFramework Plan and other similar plans are also oncards.Land suitable for agriculture shall also be used for thisfunction as Agriculture as one of the strong economicsectors in KwaDukuza.Chapter 649

6.5. Investment Package andTax Incentives:This will focus on developing and updating of aComprehensive Investment Package that will address issuesrelating to serviced sites as well as tax incentives that will bemade available to both foreign and domestic investors.6.6. Information and MarketingDuring KwaDukuza Management Committee held on 24-25 January 2011 at KwaDukuza Council Chambers, it wasresolved that KwaDukuza Municipality needs to engage ina vigorous general marketing and promotion and imagereconstruction programme that will help in enticing investorsto come to KwaDukuza. KwaDukuza Tourism Strategy thatwas completed in February 2011 has identified products andareas like beaches in Ballito, Chief Albert Luthuli Museum,King Shaka’s Pool and Cave Site as one of the6.7. Skills DevelopmentKwaDukuza IDP has identified skills gap as one of thechallenges that hinder economic growth and development forthe area of KwaDukuza. To this end, KwaDukuza Municipalityhas put aside an education site in the Newtown Area forbuilding of FET College. It must be mentioned as well thatUmfolozi FET College has already set its Campus at ChiefAlbert Luthuli Centre.6.8. Youth DevelopmentIn accordance with the National Youth Policy of 2000,KwaDukuza Municipality, will take it upon its shoulders thatthe following essential functions in regard to the developmentof young women and men of KwaDukuza: KwaDukuzaMunicipality will have to:• Nominate an elected councilor that shall takeresponsibility for overseeing council’s youth developmentpolicies and activities;• Establish a Portfolio Committee on Youth Affairs as ameans of informing, sensitizing council and to makeproposals for local youth programmes and services. Itis suggested that an EXCO Councillor responsible foryouth affairs chair this Portfolio Committee;• Undertake an audit of the youth programmes, servicesand organizations located in the local area;• Identify the priority needs and opportunities facingyoung women and men and their development;• Establish permanent mechanisms for participationby young women and men or their representativeorganizations in the planning and decision-making ofcouncil”;• Create mechanisms for young people to understand theissues of governance at local level;• Identify needs for local facilities required for youthdevelopment” ; and• Ensure that it involves the youth in formulation of theIntegrated Development Plan as a constituency.6.9. KwaDukuza EconomicGrowth NodesKwaDukuza Spatial Development Framework identifiedfour economic growth nodes within KwaDukuza area ofjurisdiction. The following are the four economic growthnodes:a) Darnall Node, which includes areas of Zinkwazi,Darnall, Nyathikazi, Sakhamkhanya, Doringkop,San Sauci , Nonoti Mouth, Princess Grant, NewGuilderland, etcb) KwaDukuza Node, which includes areas ofBlythedale Beach, Shakaville, Lindelani, StangerManor, Stanger Heights, Doctorskop, Glenhills,Shayamoya, Rocky Park, KwaDukuzaCentral, Madundube, etcc) Groutville Node, which includes areas ofNtshawini, Groutville, eTete, Thembeni, AddingtonFarm, etcd) Southern, Driefontein, Ballito Node, whichincludes areas of Driefontein, Shakaskraal, SaltRock, Tinley manor, Woodmead, Shayamoya, etc.6.10. KwaDukuza Tourism DevelopmentStrategyThe tourism sector has enormous potential in theKwaDukuza area and the KwaDukuza municipality hasidentified the need to improve and enhance the tourismsector. The KwaDukuza area has many tourist sites, which willbe identified. The primary factors that attract tourists to thisprovince are its beaches, visits to family and friends, the wildlife and Zulu culture. The KwaDukuza area is very rich in Indianheritage and this can be felt in the Stanger area particularlyas well as Shakaskraal. The KwaDukuza area also has a richheritage in the form for the Zulu culture. It has a diversity ofrich colours and cultures. The North Coast (Dolphin Coast)Ballito, Salt Rock, Dolphins, Shaka and Zimbali are someof the terms associated with this up-market beach tourismMecca of the Zulu Kingdom of KwaZulu-Natal. Some of the50KwaDukuza Municipality Integrated Development Plan - 2011/16

tourist sites in KwaDukuza are Tinley Manor Lagoon, KingShaka’s Memorial Monument.Tourism and Luthuli Museum sites are regarded as a crosssectoralIndustry because it represents linkages with theretail, manufacturing, transport, electricity and financialsectors. Tourism is a cross-sectoral industry meaning thatit has linkages with an array of sectors. The retail sectoras tourists will be purchasing goods such as memorabilia,food and clothing that is characteristic of the KwaDukuzaarea. The transport sector forms an integral aspect, asthere are tours, so bus services are essential and transportis essential in providing accessibility to the various touristsites. Manufacturing of crafts and souvenirs are essential intourism. Electricity is a basic service required by all tourists asthey require it for daily activities and for which businesses relyon for production of goods and services.KwaDukuza Tourism Development Strategy recognizestourism as LED directive that is mandated by the Constitutionof the Republic of South Africa Act 108 of 1996 and theTourism of Act of 1993. According to Schedule 4 – Section155(6) (a) and 7, Part B, local government must be organizedto deliver on the following with respect to tourism:• Developing and implementing local tourism policy thatis line with provincial tourism policies;• Urban and rural planning with the development oftourism products and services;• Provision and maintenance of public tourist sites,attractions and services;• Provision and maintenance of local infrastructure;• Health, safety, licensing and local by-law compliance;• Market and promote specific local attractions andprovide local information services; and• Facilitate the participation of local communities in thetourism industry6.11. KwaDukuza Tourism VisionThe tourism vision for KwaDukuza Municipality is ‘todevelop, market and show case an exceptional level ofbeach tourism, coupled with the unique Zulu heritageand multi-cultural sense of place of KwaDukuza forall categories of domestic and foreign tourists, sothat public private partnerships can deliver localsocio-economic benefits and transformation of thetourism sector, within a sustainable environment’.KWADUKUZA TOURISM SECTOR VISIONto DEVELOP, MARKET and showcase an exceptional level of BEACH TOURISM, unique ZULU HERITAGE and MULTICULTURAL sense of place of KwaDukuza for all categories of DOMESTIC and FOREIGN tourists, so that we can deliver,local SOCIO-ECONOMIC BENEFITS and TRANSFORMATION of the tourism sector with a SUSTAINABLE ENVIRONMENT.Chapter 6INSTITUTIONAL STRUCTURINg (ommo)Development Marketing TransformationSustainable EnvironmentBeachTourismMultiCulturalZuluCulture &Tradition}PRODUCT DEVELOPMENTSTRATEGYSub-strategies:-Cultural & Heritage- Beach Tourism- Adventure, Activities & EventsDomesticForeign}MARKETING STRATEGY- Branding- Annualised Marketing Plan- Marketing Collateral- Trade ShowsLEDSocio-Economic Benefits}TRANSFORMATIONSTRATEGY- Social Tourism- Skills Awareness Programme- Education & Training- SMME Development PlansSustainable EnvironmentS T R A T E G I C D I R E C T I O N51

KLM-LED / Tourism UnitKEY FUNCTIONS & RESPONSIBILITIESIMPLEMENTATION OF PRODUCTDEVELOPMENT STRATEGYIMPLEMENTATION OFCOMMUNICATION STRATEGYCREATE ENABLINGENVIRONMENTFUNDINGDMMORepresentationLEGALCOMPLIANCETRANSFORMATION / SOCIALTOURISMSpecific Functions & ResponsibilitiesFunctions:Responsible for themaintenance &improvements on existingtourism infrastructure, aswell as the development ofnew tourism product &infrastructure in thefollowing prioritisedTourism Sectors :1. Beach Tourism2. CulturalHeritageTourism3. Adventure &Outdoor4. Events5. BusinessTourism6. Social TourismJob Responsibility: (1) & (2)Function:Responsible forCommunication Channelsbetween:National & ProvincialTourism Authorities (SAT /KZN DEDT / TKZN)Ilembe DistrictKLM MunicipalityDMMOEnterprise IlembePrivate & Public TourismStakeholdersManage & maintain anenabling environment fortourism through thefollowing functions:• Provision andmaintenance of allpublic tourism areas &facilities• Promotion ofTourism Safety• Maintain & upgradeaccessibility &infrastructure (road,rail etc)• Maintain & upgradeBulk Services (water,electricity etc)Job Responsibility: (1) & (2)Functions:Facilitate support andinvestment for newproducts & attractionsFacilitate access tofunding for PDI’s &SMME TourismEnterprisesProvide funding fromBudget to the newlyinstituted KLM – DMMOJob Responsibility:Primarily (1)Functions:Providerepresentation onthe DMMO BoardJob Responsibility:(1)Functions:Ensure local tourismestablishments,activities and touroperators are legallycompliant – such asregistration with CTO,public liabilityinsurance etc .Ensure the productdevelopment strategy& new tourismSMME’s comply withall environmental,health & safety &tourism by-lawsJob Respon: (1)Functions:• Identifyopportunities forPDI’s to getinvolved in thelocal tourismindustry• Provide appropriateSkills & BusinessManagementTraining to selectcandidates• Provide Mentorship& Funding Supportfor PDI’s & TourismSMME’s• Provide assistance/ access to fundingsources for PDI’s &SMME’s• Identify anddevelop tourismproducts that willappeal & beaffordable to lowerincome tourismmarkets (supply &demand-side socialtourism)Job Responsibility: (3)• Representative onDMMO Board6.12. KwaDukuza Tourism Marketing StrategyDevelop a Marketing Plan for KwaDukuza Tourism Sector-Including a Destination Brand.Objectives:The core objectives for the KwaDukuza DMMO include:• Development and Consolidation of a strong TourismBrand for KwaDukuza with the application of this brandacross all marketing channels and visitor experience• Marketing (both inward and outward marketing)and promotion of the area as an attractive tourismdestination• Tourism Market Research and Intelligence• Improving communications between private and publicsector tourism stakeholders• Growing local awareness and meaningful participationin tourism• Enhancing the visitor experience to encourage repeatbusiness and positive word-of-mouth referrals• Influencing investment for the market led productdevelopment• To actively market KwaDukuza tourism sector to createconsumer awareness of the destination, grow visitorvolumes, and increase the tourism spend and extend thestay-over factor.Key Responsibilities:The KwaDukuza DMMO is responsible for implementation ofthe KwaDukuza Marketing Strategy through the preparationof the Marketing Plan.The key Functions and responsibilities of the DestinationManagement and Marketing Organization include:• Developing, Finalization and Implementation of thebranding strategy• Developing and Implementing of an Events Plans that isin line with existing and potential market demand andthe Product Development Strategy• Collaborative marketing with other tourism sectorstakeholders• Undertake market research and intelligence52KwaDukuza Municipality Integrated Development Plan - 2011/16

6.13. Transformation and Social Tourism StrategySocial Tourism PlanObjectives:• To promote transformation and local economic growthwithin the tourism sector by providing emergingtourists from both within and outside of KwaDukuzawith an affordable destination, and at the same time,employment opportunities to local communities (mustbe seen as both a market demand and a product driveninitiative).• The aim is to provide neglected or underdevelopedregions with new opportunities for generating cultural,social and economic benefits.• Provide tourism products and events that are attractiveand affordable to lower-income tourist markets andprovided by previously disadvantaged sectors of thepopulation within KwaDukuza.Key Responsibilities:The KwaDukuza Municipality Unit to:Identify areas within the local municipal area, whichwould be appropriate for social tourism initiativesand product development• Develop a project plan for the social tourism enterprises/ initiatives that could be developed at the identifiedsite(s)• Seek national / provincial funding and private sectorsupport / buy-in to develop the new social tourismproducts and eventsChapter 653

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Chapter 657

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6.15. Tourism Product Development Strategy for KwaDukuzaThe key objectives of the Tourism DevelopmentStrategy are:• To co-ordinate and facilitate tourism productdevelopment within KwaDukuza Municipality area thatis appropriate, sustainable, market-demand based andaligned to KwaDukuza tourism vision;• To facilitate access to funding for tourism productdevelopment, by KwaDukuza Municipality as well as forlocal communities involved in tourism development;• To provide strategic guidance and advice to all relevantstakeholders on tourism product development issues• To ensure that both new and existing tourism productoperates in a sustainable environment. KwaDukuza LocalMunicipality must be vigilant in enforcing environmentallaws and safeguard the municipality’s natural, scenicand heritage assets against being compromised throughinappropriate development.This should be done through:• A Biodiversity Conservation Strategy for KwaDukuzaMunicipality;• Tourism Policy which incorporates regulations ontourism development that adheres to relevant spatialand environmental planning legislation• Establishing good linkages with conservation bodies.6.15.1. The prioritized tourism productdevelopment categories for KwaDukuzaMunicipality:a. Beach tourism: KwaDukuza Beaches are consideredto be the primary attraction for visitation in the area.This attraction requires maintenance, facility upgrades,improved accessibility, environmental protection and propermanagement given its significance to local economicgrowth. It is recommended that the KLM Tourism Unitwork very closely with environment, public works and otherdepartments overseeing the Beach Zone Plan. Preserving andand/or improving the environmental quality of the beaches(attaining blue flag status), as well as appropriate facilityupgrades (such as more parking for popular beaches, publictoilets and food and drink facilities) – should be prioritizedin the product development strategy if the area is to sustainand grow a positive reputation amongst its visitors as anexceptional beach destination. The new location of Durban’sinternational airport at La Mercy also has the potential todraw fly-in tourists that would normally have visited theSouth Coast, to now holiday on the North Coast.b. Cultural Heritage tourism: KwaDukuza Municipalityhas a rich and unique Zulu cultural heritage which hasbeen identified as a primary attraction for both foreignand domestic markets. KwaDukuza Municipality offers awide range of historical and cultural sites, most notably,the birth and death place of the fearsome King Shaka, andthe grave site of liberation leader, Chief Albert Luthuli. It isrecommended that the King Shaka Route be revived withgreater emphasis on the importance of presentation andpreserving the rich cultural background of both King Shakaand the Luthuli legacies. Amafa should be contacted to assistwith reviving this route. The area has a strong multi-culturalfeel in that it has a large Indian and European influence.The marketing and cultural heritage products and eventsdeveloped around showcasing the area’s cultural heritageshould endeavor to reflect this multi-cultural influence – forexample in the choice of takeaway foods available at culturalevents, and promoting a range of festival activities such asIndian dancing or curry competitions, to braai days and Zuluweddings or ceremonial celebrations.c. Adventure, Sports and Outdoor activities:KwaDukuza Municipal area already has a wide range ofactivities from animal and crocodile farms, to horse-riding,kayaking, micro lighting, quad-biking, scuba diving, dolphin/ whale watching and hunting outfits. There are seven golfcourses in KwaDukuza Municipality’s boundaries alonewith Prince’s Grant, Zimbali and the planned BlythedaleGolf course, recognized as some of the best in the country.KwaDukuza Municipality’s activities need to be marketedheavily (can be done in the brochure, advertising, mediareleases and on the website), whilst there is potential toupgrade existing activities and further develop a range ofnew and exciting adventure, sport and outdoor activitieswithin the area.d. Events: KwaDukuza Municipality is already on themap due to some high-profile events such as the Mr. PricePro Surfing Competition and the Easter/ December Beachfestivals. KwaDukuza Municipality hosts a number ofevents but there is certainly potential for the calendar to beexpanded to include more cultural, arts and sports events.Social tourism events, which are affordable and of interestto lower-income, primarily local markets, should be includedin the events calendar. Historically lean visitor periods couldbe boosted through cultural, arts, culinary and sports events,where the event itself becomes the reason for visiting thearea outside of the traditional peak holiday periods.Events which are generally publicized and marketedwidely really help to raise the profile of an area.e. Business tourism: The new King ShakaInternational Airport located at La Mercy (just outsideof KwaDukuza Municipal’s boundary) presents asignificant opportunity to attract more businesstourists. KwaDukuza Municipality could become an attractivearea to hold business meetings, conferences or events, asits main town, Ballito, is not only closer to the airport thanDurban but it is also against the main flow of traffic on theN2 which is southbound into Durban (from the people wholive out in Umhlanga and Mount Edgecombe and travel towork in Durban each day). KwaDukuza Municipality needsto encourage those tourism establishments with the capacityand facilities to accommodate business tourists (such aslarge rooms that could host boardroom meetings or smallconferences) to upgrade or align their facilities (such asquality data projectors, offering business lunches and airporttransfers) to levels that would rival established businessvenues in other locations, most notably Durban. It is not,however, suggested that KwaDukuza Municipality competewith the Durban International Convention Centre, but ratherbe complimentary to it, with the objective of increasing thesale of bed-nights in the area. If KwaDukuza Municipalitycould establish a critical mass of business-friendly venuesand establishments, it could market itself more aggressivelyas a business destination. Receiving more business touristswould significantly help to increase week night occupancy inthe local B&Bs, guesthouses and hotels, and boost tourismrevenue during the leaner, non-seasonal periods. This wouldhelp tourism businesses to keep on top of their fixed monthlyoverheads during non-seasonal periods.Chapter 659

CHAPTER7Sustainable InfrastructureDevelopment61

Chapter 7Sustainable Infrastructure Development7.1. KwaDukuza Basic InfrastructureDevelopment ProgrammeInfrastructure development programme is one of the keydrivers that will be used to realize KwaDukuza Vision 2030.KwaDukuza Municipality wants to ensure that there is anoptimal provision of basic service and infrastructure deliverywithin the area of KwaDukuza. It is the aim of KwaDukuzaMunicipality to ensure that this delivery happens in asustainable manner, in line with KwaDukuza long term vision.This long term vision calls for all the internal departmentsof KwaDukuza Municipality to adhere to the principles ofsustainable development as called for by Natural EnvironmentManagement Act (NEMA). The primary components forKwaDukuza infrastructure development programme areelectricity, roads and transportation services, water supplyand distribution, and sanitation— wastewater collection andremoval, solid waste collection and removal and cemeteries.To achieve this programme, KwaDukuza Municipality intendsto:• Link infrastructure development with economicgrowth initiatives.• Link infrastructure finance with financial marketdevelopment.• Develop models and mechanisms for financinginfrastructure.• Use infrastructure development to create decentjob opportunities.7.2. KwaDukuza Basic Service and Infrastructure BacklogsThe strategic location of KwaDukuza along the northcoastline is attracting property development investmentto KwaDukuza. That, coupled with fact that there has notbeen much attention to the maintenance of the existinginfrastructure, the fact that KwaDukuza Municipality is stillgrappling with ageing infrastructure, the demands put bythe fact that KwaDukuza is growing as a City, has causedKwaDukuza to fall behind in terms of the provision of newand much needed infrastructure. Compared to neighbouringmunicipalities, the area of KwaDukuza provides betteropportunities for creation of both short term and long termemployment opportunities. This has resulted to the growingnumber of informal settlements which has a direct impact toservice delivery backlogs.7.3. CemeteriesThere are seven municipal cemeteries located within theKwaDukuza municipality in addition to a privately ownedcemetery. KwaDukuza still experiences informal and illegalburials in certain communities. Incorrectly sited graveyardsand informal burials have the potential to impact on humanhealth and security is a source of concern. Burial sites forfamily members next to the homesteads are consideredcommon in rural areas which gives a clear indication for theneed for new cemetery sites in the District. The district hasappointed consultants to undertake a district wide cemeteryplan and the community have raised the lack of space forgraveyards within the Municipality as a priority. KwaDukuzaMunicipality has identified a need to develop a CemeteryMaster Plan.7.4. Waste Disposal SitesKwaDukuza has recently closed down the Garden refusefacility at Shakaville that used to dispose 720 tons of wastemonthly. The Dolphin Coats Waste Management operatesa transfer station at Dolphin Coast that handles all of thewaste from Stanger and Ballito and a new regional disposalsite has been established in the New Guilderland area.7.5 Water ProvisionKwaDukuza experiences water disruptions on a regular basis.There is a huge disparity in provision of services. There isalso a major service backlog and a lack of maintenance ofexisting infrastructure. Water infrastructure is a top priorityin KwaDukuza Local Municipality with only half of thepopulation having access to water; reliance on ground watercan lead to health impacts amongst the more vulnerablesections of the population, where ground water has becomepolluted through poor land use and/or burials near watercourses. There is severe water shortage in the area which isexacerbated by new development applications. UMngeniwater, KwaDukuza and iLembe cannot meet the currentwater requirements of existing users. The water shortageneeds to be addressed at a strategic level and various bulkwater options are being considered including desalinationtreatment plants, ways of reducing inefficiencies, waste andwater loss need to be investigated.7.6. SanitationKwaDukuza Municipality experiences huge disparity inprovision of sanitation is concerned. It also experiences majorservice backlogs. Approximately 59% of households haveaccess to a basic level of formal sanitation service; however13% do not have any formal form of sanitation whilst28% uses pit latrines. This could result in ground watercontamination and could consequentially be detrimental tohuman health.There is a lack of maintenance of existing infrastructure.Infrastructure is often poorly sited and has the potential toimpact on the environment when it is not operating properly.There is one major sewer treatment works at KwaDukuzathat pumps sewerage from other smaller sewer pumps acrossthe Municipality. There is no bulk Municipal waterbornesewerage reticulation system available in areas includingBlythedale and surrounds Septic tank systems are used inmany areas for disposal of liquid waste. Due to extensivehousing developments especially along the coast treatmentworks requires upgrading, however the ILembe Municipalityhave indicated that they are not currently in a position toprovide a bulk service supply to upcoming developments.62KwaDukuza Municipality Integrated Development Plan - 2011/16

7.6.1. KwaDukuza Basic Infrastructure Development ProgrammeFocus AreaWater BacklogEradicationBulk Water SchemesBulk SanitationSchemes(All Lm’s)Siza - Water CapexProjectsPROJECTSBUDGET2011/2012 2012/2013 2013/2014Sans Sauci & Bulwer Farm R 7,500,000 0 0Nyathikazi Extension R 5,000,000 0 0Ngcebo-(KwaDukuza, Ndwedwe,Maphumulo)R 25,000,000 R 25,000,000 R 25,000,000Pipeline R5,000,000 0 0Other Capital Projects (Internal Reticulation)R 15,000,000 R 20,000,000 R 30,000,000Lower Thukela Regional Bulk WaterSchemeR 221,258,141 R 209,000,000 R 262,900,000Water Desalination Plant R 50,000,000 R 75,000,000 R 100,000,000Refurbishment of Wastewater worksR 10,000,000 R 15,000,000R 15,000,000Melville Sewer Package Plant R 7,500,000 R 7,500,000Driefontein Sewer Package Plant R 5,000,000 0Mdlebeni Sewer Package Plant R 5,000,000 0Other Capital Projects (Internal Reticulation)R 7,500,000 R 7,500,000 R 7,500,000Upgrade of existing network from ACto uPVC-Seaview Dr. Tinley ManorR650,000 0 0Palisade Fence at Shakashead ReservoirR120,000 0 0Upgrade of existing network from ACto uPVC- Main Road ShakaskraalR500,000 0 0Upgrade of existing network from ACto uPVC - Ocean View Dr. Tinley ManorR600,000 0 0Palisade Fence at Chakas Rock Reservoir- Chakas RockR130,000 0 0Upgrade of existing network from ACto uPVC - Dolphin Crescent. Chakas0 R300,000 0RockUpgrade of existing network from ACto uPVC - Knox Rd. Salt Rock0 0 R350,000RDP Pilot Project - Shakas Head/NkobongoR625,000 0 0Raise and replace Water Meters R75,000 R75,000 R75,000RDP Pilot Project - Shakas Head/NkobongoR500,000 0 0Installation of Gravity Sewer Main -Salt RockR550,000 0 0Installation of Gravity Sewer Main -Sheffield Beach0 R650,000 0Installation of Gravity Sewer Main -Tinley manor0 0 R750,000Gensets at SPS’s R300,000 R650,000 R300,00063

7.7. Roads & Storm Water ManagementKwaDukuza Municipality approved its Roads & Storm WaterMaster Plan in November 2010. The critical areas identifiedin the Master Plan are maintenance of 449 kilometers ofroads and construction of new roads. It must be noted thatthere is approximately 20kilometres of road which cameabout after a new ward (Ward 27) was incorporated intoKwaDukuza Municipality from Ndwedwe Municipality. TheMaster Plan has determined that an estimated amount ofR58 million is required in the new financial year in order toundertake the following:• Road maintenance• Road upgrades• Diversion of storm water channels from houses• Construction of new storm water channels• Construction of mid block storm water channels• Upgrade to gravel roads which include construction,regravelling, shaping and cutting of existing roads andpreparation for tarring, subject to the availability of MIGroads.It is estimated that over a five-year period this will requireabout R825 million to undertake this kind of work in thecurrent configuration of KwaDukuza Municipal boundaries.In general, the condition of these roads is summarized in thetable below:Condition Rating %1-Good 502-Medium 223-Poor 204-Bad/Very Bad 8Total 100It can be deduced from the table above that approximately70% of the roads located within KwaDukuza Municipalityare within good to medium condition category and 28% inthe poor to very bad range. This indicate that, there is still alot that needs to be done in order to meet the standards ofdeveloped countries where according to World Bank criteriaonly 5-10% should fall in the poor to very bad conditions.64KwaDukuza Municipality Integrated Development Plan - 2011/16

KwaDukuza Municipality: Roads and Stormwater Master ProjectsDESCRIPTION5 YEARTOTALESTIMATED COSTYR-2010/11 YR-2011/12 YR-2012/13 YR-2014/15 YR-2015/16DELIVERABLE 1: CRITICAL ITEMSWard 1 - Ohlanga, Sokesimbone &SakhamkhanyaR1,820,000 R660,00 R570,000 R590,000 R 0 R 0Ward 2 - Darnall, Nonoti, Mouth &ZinkwaziR11,400,000 R5,440,000 R3,390,000 R1,230,000 R650,000 R690,000Ward 3 - Nyathikazi & SakhamkhanyaR4,430,000 R 0 R 0 R4,110,000 R320,000 R 0Ward 4 - Driefontein, Ballito BusinessParkR2,700,000 R 0 R2,500,000 R 0 R 0 R 0WARD 5- Tinley Manor, UMhlali,Foxhill, Mount RichmoreR2,870,000 R1,640,000 R600,000 R470,000 R160,000 R 0Ward 6 - Ballito, Salt Rock, Chaka’s,Sheffield BeachR54,250,000 R16,390,000 R9,220,000 R4,350,000 R20,260,000 R4,030,000WARD 7 - Shakaskraal, Etete R 0 R 0 R 0 R 0 R 0 R 0Ward 8 - Shakaskraal, Nkobongo,ShayamoyaR3,170,000 R250,000 R1,430,000 R1,490,000 R 0 R 0Ward 9 - Callrup East, Mnyundwini R 0 R 0 R 0 R 0 R 0 R 0Ward 10 - Aldinville, Charlottedale,Grout Ext. 4R1,860,000 R 0 R90,000 R,390,000 R180,000 R200,000Ward 11 - Priority 1, Njekane,Grout Ext.4, Chris HaniR3,020,000 R 0 R150,000 R1,380,000 R1,490,000 R 0Ward 12 - Dube Village, Ethafeni,Blythedale Beach, NonotiR4,720,000 R690,000 R1,760,000 R980,000 R1,290,000 R 0Ward 13 - Glenhills, Lot 14, RockyParkR2,890,000 R2,090,000 R410,000 R380,000 R100,000 R 0Ward 14 - Melville, Priority 1 R7,570,000 R 0 R940,000 R5,390,000 R1,240,000 R 0Ward 15 - Ntshawini, Gledhow R12,250,000 R 0 R1,830,000 R5,120,000 R5,300,000 R 0Ward 16 - Stanger Heights, StangerManor, Highridge & Moolla IndustrialR25,270,000 R4,050,000 R7,580,000 R6,540,000 R4,250,000 R2,850,000ParkWard 17 - Stanger Manor, Mbozamo& LindelaniR12,750,000 R3,440,000 R5,550,000 R3,310,000 R450,000 R 0Ward 18 - Mbozamo, Ext. 36,ShakavilleR4,930,000 R1,000,000 R2,900,000 R670,000 R360,000 R 0Ward 19 - Stanger Central, RockyPark & ThornhillR35,100,000 R17,000,000 R6,810,000 R4,540,000 R4,870,000 R1,540,000WARD 20 - Etete R490,000 R170,000 R110,000 R210,000 R 0 R 0R191,580,000 R53,020,000 R43,430,000 R44,650,000 R40,920,000 R9,310,000DELIVERABLE 2: GENERAL MAINTENANCEWard 1 - Ohlanga, Sokesimbone &SakhamkhanyaR2,250,000 R470,000 R360,000 R400,000 R570,000 R450,000Ward 2 - Darnall, Nonoti, Mouth &ZinkwaziR9,460,000 R1,820,000 R1,590,000 R1,750,000 R2,290,000 R2,010,000Ward 3 - Nyathikazi & SakhamkhanyaR2,220,000 R420,000 R380,000 R410,000 R530,000 R480,000Ward 4 - Driefontein, Ballito BusinessParkR3,410,000 R640,000 R580,000 R630,000 R820,000 R740,000WARD 5- Tinley Manor, Umhlali,Foxhill, Mount RichmoreR2,270,000 R430,000 R390,000 R420,000 R540,000 R490,000Ward 6 - Ballito, Salt Rock, Chaka’s,Sheffield BeachR11,900,000 R2,230,000 R2,050,000 R2,240,000 R2,800,000 R2,580,000WARD 7 - Shakaskraal, Etete R 0 R 0 R 0 R 0 R 0 R 0Ward 8 - Shakaskraal, Nkobongo,ShayamoyaR4, 980,000 R1,010,000 R790,000 R880,000 R1,280,000 R1,020,00065

Ward 9 - Callrup East, Mnyundwini R1,700,000 R330,000 R280,000 R310,000 R420,000 R360,000Ward 10 - Aldinville, Charlottedale,Grout Ext. 4R3,920,000 R740,000 R670,000 R740,000 R930,000 R840,000Ward 11 - Priority 1, Njekane,Grout Ext.4, Chris HaniR1,590,000 R310,000 R260,000 R290,000 R400,000 R330,000Ward 12 - Dube Village, Ethafeni,Blythedale Beach, NonotiR6,100,000 R1,160,000 R1,040,000 R1,130,000 R1,460,000 R1,310,000Ward 13 - Glenhills, Lot 14, RockyParkR4,750,000 R910,000 R810,000 R880,000 R1,130,000 R1,020,000Ward 14 - Melville, Priority 1 R3,120,000 R580,000 R540,000 R580,000 R740,000 R680,000Ward 15 - Ntshawini, Gledhow R5940,000 R1,120,000 R1,020,000 R1,110,000 R1,420,000 R1,270,000Ward 16 - Stanger Heights, StangerManor, Highridge & Moolla IndustrialR6,520,000 R1,250,000 R1,110,000 R1,210,000 R1,550,000 R1,400,000ParkWard 17 - Stanger Manor, Mbozamo& LindelaniR6,000,000 R1,130,000 R1,020,000 R1,120,000 R1,440,000 R1,290,000Ward 18 - Mbozamo, Ext. 36,ShakavilleR3,930,000 R740,000 R670,000 R740,000 R930,000 R850,000Ward 19 - Stanger Central, RockyPark & ThornhillR7,890,000 R1,500,000 R1,330,000 R1,480,000 R1,890,000 R1,690,000WARD 20 - Etete R6,820,000 R1,300,000 R1,160,000 R1,270,000 R1,630,000 R1,460,000R94,770,000 R18,090,000 R16,050,000 R17,590,000 R22,770,000 R20,270,000DELIVERABLE 3 & 4: NEW CAPEX PROJECTS & ITEMS IDENTIFIED IN TRAFFIC STUDIES AND MEETINGS WITH THE COMMUNITYWard 1 - Ohlanga, Sokesimbone &SakhamkhanyaR47,584,000 R1,950,000 R10,514,000 R13,Ward 2 - Darnall, Nonoti, Mouth &ZinkwaziR11,510,000 R540,000 R5,560,000 R1,820,000 R2,770,000 R820,000Ward 3 - Nyathikazi & SakhamkhanyaR45,820,000 R50,000 R6,640,000 R7,990,000 R15,200,000 R15,940,000Ward 4 - Driefontein, Ballito BusinessParkR123,260,000 R117,670,000 R190,000 R630,000 R4,770,000 R 0WARD 5- Tinley Manor, Umhlali,Foxhill, Mount RichmoreR30,400,000 R160,000 R30,200,000 R40,000 R 0 R 0Ward 6 - Ballito, Salt Rock, Chaka’s,Sheffield BeachR2,810,000 R2,160,000 R 0 R650,000 R 0 R 0WARD 7 - Shakaskraal, Etete R81,660,000 R 0 R 0 R6,300,000 R4,450,000 R70,820,000Ward 8 - Shakaskraal, Nkobongo,ShayamoyaR6,330,000 R1,320,000 R710,000 R1,820,000 R2,290,000 R190,000Ward 9 - Callrup East, Mnyundwini R11,890,000 R 0 R10,590,000 R120,000 R 0 R1,180,000Ward 10 - Aldinville, Charlottedale,Grout Ext. 4R13,260,000 R190,000 R3,580,000 R4,000,000 R1,600,000 R3,830,000Ward 11 - Priority 1, Njekane,Grout Ext.4, Chris HaniR28,570,000 R640,000 R11,810,000 R5,840,000 R250,000 R10,050,000Ward 12 - Dube Village, Ethafeni,Blythedale Beach, NonotiR22,970,000 R780,000 R7,740,000 R9,020,000 R1,030,000 R4,410,000Ward 13 - Glenhills, Lot 14, RockyParkR13,030,000 R70,000 R130,000 R4,140,000 R4,120,000 R4,570,000Ward 14 - Melville, Priority 1 R9,150,000 R20,000 R3,614,000 R564,000 R4,864,000 R90,000Ward 15 - Ntshawini, Gledhow R4,610,000 R20,000 R3,500,000 R180,000 R740,000 R170,000Ward 16 - Stanger Heights, StangerManor, Highridge & Moolla IndustrialR80,000 R40,000 R 0 R 0 R 0 R 0ParkWard 17 - Stanger Manor, Mbozamo& LindelaniR8,300,000 R1,890,000 R120,000 R170,000 R6,070,000 R50,000Ward 18 - Mbozamo, Ext. 36,ShakavilleR4,130,000 R1,850,000 R960,000 R1,080,000 R120,000 R120,000Ward 19 - Stanger Central, RockyPark & ThornhillR68,520,000 R30,000,000 R33,210,000 R3,360,000 R2,050,000 R 0WARD 20 - Etete R5,170,000 R700,000 R865,000 R1,325,000 R1,465,000 R815,000R539,154,000 R160,050,000 R129,933,000 R62,509,000 R62,779,000 R123,875,00066KwaDukuza Municipality Integrated Development Plan - 2011/16

• The assessment of the infrastructure has determinedthat the age and condition of the majority of DC-Battery Charges and Batteries installed at majorsubstations and switch rooms now poses a great riskto the correct functioning of equipment protectivedevices. The DC-supply is used to energize theprotection relays and control the tripping/ closingcoils on all the 33 and 11 kV breakers.• There is a need for calibration of all 33 and 11 kVbreakers protection relays. The phenomenal growththat KwaDukuza Municipality has experienced overthe past three years has caused overload situationson various 33KV feeders. The said conditions havecaused ESKOM supply/protection relays to operateand caused the ESKOM supply to trip. On manyoccasions faults have passed through Council’sprotective devices with resultant fault trip on ESKOMsupply side.• Customer growth within the Northern networkrequires the Municipality to upgrade the 33 kVnetwork between ESKOM/Stanger point of supplyand Glenhills substation, from 19 MVA to 30MVAcurrent carrying capacity. This upgrade is essential soas to provide an alternate 33 kV supply source to theLavoipierre substation, via the ring circuit connectingthrough Industrial Area substation back to Glenhillssubstation.• In the event the cables between Point of SupplyIntake substation and Lavoipierre substation fail theexisting Oak conductor (19 MVA) connected betweenGlenhills and ESKOM Point of Supply Intake substationis not sufficiently rated to carry the transferred load. Itis therefore essential that this conductor be upgradedto Poplar conductor (30 MVA) capacity. This will costCouncil an estimated amount of R 1,760,000must be constructed in the Groutville/Priority One area as ahigh priority. The estimated cost for the construction of thenew Groutville/Priority One substation is R14, 500,000.The current Budget makes provision for R11, 730,000 inthis regard.• To release excessive load on 11 kV overhead lines/ feeders,supplied from Glenhills substation, it has been identifiedthat as an interim measure, until such time that the newGroutville/Priority One 33/11 kV substation has beenestablished, the 33 kV overhead line feeder betweenShakaskraal substation and Stanger Point of Supply, bechanged over from 33 kV supply to 11 kV supply and thatthe said overhead line be connected via 11 kV cables intothe Groutville/Priority One Switching Station.• This network upgrade will provide for greater security ofsupply to the Priority One area and will also serve as alimited back up supply to Glenhills substation in the eventof a transformer failure.• In the event of failure at Glenhills substation thisinterconnector 11 kV supply will also provide an alternatesupply source to the uMvoti Water Works. Council hasmade provision for this process of down rating the 33kV to 11 KV and allocated R400, 000 in its 2010/2011Adjustment Budget.• To release excessive load on the existing 11 kV feedercables, supplied from Lavoipierre Substation, the NetworkMaster Study confirms that new 11 kV SwitchingStations (Nodal Switch Room), require to be established/constructed, within the KwaDukuza CBD area, Saundersstreet Reservoir and Hesto Harnesses areas. It is proposedto ultimately interconnect the CBD Switch room viaSaunders Street switch room with Glenhills substation.• In order to release excessive load on 11 kV overheadlines/ feeders supplied from Glenhills substation, ithas been established that a new 33/11 kV substation68KwaDukuza Municipality Integrated Development Plan - 2011/16

Upgrade of Lt Mains in the Northern and Southern SectionsIDP DESCRIPTION 2011/2012 2012/2013 2013/2014 2014/2015 2015/20166 ELS/2010/37Ballito - Ashley/Minerva/TownsendRoads(Phase 3)R307,01822Sheffield- Summit Road(ABC Bundle)Phase 2R139,4745 & 18 Shakaville Kiosks R 35,088 R 37,193 R 39,4258/22/23 Shakaskraal - Upgrade LV Kiosks R 35,088 R 37,193 R 39,42513/26 ELS/2010/34 Upgrade Low Tensions Mains( North) R122,807 R 96,491 R100,8775/17/18 ELS/2010/35 Shakaville / Lindelani / MbozamboUpgrade of MV Networks in the Northern and Southern SectionsWARD IDP DESCRIPTION Future Budgets2011/2012 2012/2013 2013/2014 2014/2015 2015/20161/13/17/26/27 ELS/2010/39Kearsney/Dendethu Feeder(Phase 2)R 292,398 R 309,942 R 328,538 R 348,250 R 369,1453 ELS/2010/40New Guilderland Line -Overhead (Phase 3)R 292,105 R 309,632 R 328,209 R 347,902 R 368,77611 & 12 & 15 ELS/2010/43 Groutville Feeders (Phase 3) R 292,398 R 309,942 R 328,538 R 348,250 R 369,14511 ELS/2010/44Blythedale Beach ReconstructOld Feeder OHL R 292,398 R 309,942 R 328,538 R 348,250 R 369,145(Phase 2)13 & 26 ELS/2010/45 Tredals Lot 16 Line(Phase 2) R 291,228 R 0 R 0 R 03/5/16/18 ELS/2010/46Doesberg / LindelaniFeeder (Phase 2)R 291,930 R 309,446 R 328,012 R 347,693 R 368,555Upgrade of MVNetworks in the 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021Northern Section1/13/17/26/27 ELS/2010/39Kearsney/Dendethu Feeder(Phase 2)R 391,294 R 414,772 R 439,658 R 466,037 R 494,0003 ELS/2010/40New Guilderland Line -Overhead (Phase 3)R 390,903 R 414,357 R 439,218 R 465,571 R 493,50611 & 12 & 15 ELS/2010/43 Groutville Feeders (Phase 3)3/5/16/18 ELS/2010/46Doesberg / LindelaniFeeder (Phase 2)R 390,668 R 414,108 R 438,955 R 465,292 R 493,20916 ELS/2010/471 x 500kVA Mini Substation(King Shaka Street)16 ELS/2010/47Upgrade 11kV Cable(95mm sq) Hillcrest / CollegeRdUpgrade of MVNetworks in the 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026Northern Section1/13/17/26/27 ELS/2010/39Kearsney/Dendethu Feeder(Phase 2)R 523,640 R 555,058 R 588,362 R 623,663 R 661,0833 ELS/2010/40New Guilderland Line -Overhead (Phase 3)R 523,116 R 554,50369

Upgrade of MV Networks in the Southern Section (2011/2012 – 2015/2016)WARD IDP DESCRIPTION Future Budgets2011/2012 2012/2013 2013/2014 2014/2015 2015/20166 & 22 ELS/2010/48Mains Upgrading Salt Rock(Main Road) Phase 2R 169,60022 ELS/2010/50Cranbrook - Reconstruct11KV- OHL(Phase2)R 185,965 R 197,123 R 208,950 R 221,487 R 234,77611 & 22 ELS/2010/51BTinley Manor Feeder-11kOHL (Phase 3)R 386,807 R 410,015 R 434,616 R 460,693 R 488,33521 ELS/2010/51CUpgrade 5 MVA Transformer(33/11kV) Hilltop SubR 84,800ALL ELS/2010/51A Upgrade 3 x 11KV NER R 42,4004/21/22Replace stolen 185mmsq PILC cable (Imbonini /R 368,555Manor Mews)7Shakaskraal Inland (Gesla/ Simpoya / Rainfarm) - R 263,158Reconstruct 11kV Feeder21/22Compensation - (Wise /Jordan) 11kV FeederR 219,298Upgrade of MVNetworks in the 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021Southern Section6 & 22 ELS/2010/48Mains Upgrading Salt Rock(Main Road) Phase 222 ELS/2010/50Cranbrook - Reconstruct11KV- OHL(Phase2)R 248,863 R 263,795 R 279,622 R 296,400 R 314,18411 & 22 ELS/2010/51BTinley Manor Feeder-11kOHL (Phase 3)R 517,635 R 548,693 R 581,615 R 616,512 R 653,50221/22Compensation - (Wise /Jordan) 11kV FeederUpgrade of MVNetworks in the 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026Southern Section6 & 22 ELS/2010/48Mains Upgrading Salt Rock(Main Road) Phase 222 ELS/2010/50Cranbrook - Reconstruct11KV- OHL(Phase2)R 333,035 R 353,017 R 374,198 R 396,650 R 420,44911 & 22 ELS/2010/51BTinley Manor Feeder-11kOHL (Phase 3)R 692,712 R 0 R 0 R 021/22Compensation - (Wise /Jordan) 11kV FeederUpgrade of MVNetworks in the 2026/2027 2027/2028 2028/2029 2029/2030 2030/2031Southern Section6 ELS/2010/511 x 500kVA Mini Substation(Wilks Road)22 ELS/2010/50Cranbrook - Reconstruct11KV- OHL(Phase2)R 445,676 R 472,416 R 500,761 R 530,807 R 562,65570KwaDukuza Municipality Integrated Development Plan - 2011/16

Upgrade of Substations: Northern and Southern (2011/2012 – 2015/2016)WARD IDP DESCRIPTION Future BudgetsALL13ALLALLALL7ALLALLALLALLALL13ALLALLELS/2010/52Northern Section2011/2012 2012/2013 2013/2014 2014/2015 2015/2016ELS/2010/53Upgrading ofSubstations, Yardsand ChambersR 371,930 R 394,246 R 417,900 R 442,974 R 469,553Lot 14 SwitchingStation - Upgrade R 175,439CT'sELS/2010/54 Southern Section R 617,544 R 394,246 R 417,900 R 442,974 R 469,553Upgrading ofSubstations, Yards R 371,930 R 394,246 R 417,900 R 442,974 R 469,553and ChambersGrading ofprotection relays(33kV)Replacement ofDC (Batteries andChargers)Shakaskraal - 2 x11kV VT'sR 245,614UpgradeSubstationsNorthern and2016/2017 2017/2018 2018/2019 2019/2020 2020/2021SouthernUpgrading ofELS/2010/53 Substations, Yards R 497,726 R 527,590 R 559,245 R 592,800 R 628,368and ChambersGrading ofprotection relays(33kV)ELS/2010/54 Southern Section R 497,726 R 527,590 R 559,245 R 592,800 R 628,368Upgrading ofSubstations, Yards R 497,726 R 527,590 R 559,245 R 592,800 R 628,368and ChambersGrading ofprotection relays(33kV)UpgradeSubstationsNorthern and2021/2022 2022/2023 2023/2024 2024/2025 2025/2026SouthernELS/2010/52 Northern Section R 666,070 R 706,034 R 748,396 R 793,300 R 840,898Upgrading ofELS/2010/53 Substations, Yardsand ChambersLot 14 SwitchingStation - Upgrade R 666,070 R 706,034 R 748,396 R 793,300 R 840,898CT'sELS/2010/54 Southern Section R 666,070 R 706,034 R 748,396 R 793,300 R 840,898UpgradeSubstationsNorthern and2026/2027 2027/2028 2028/2029 2029/2030 2030/2031SouthernELS/2010/52 Northern SectionUpgrading ofELS/2010/53 Substations, Yards R 891,351 R 944,833 R1,001,523 R1,061,614 R1,125,311and ChambersGrading ofprotection relays(33kV)ELS/2010/54 Southern Section R 891,351 R 944,833 R1,001,523 R1,061,614 R1,125,31171

WARD IDP DESCRIPTION Future Budgets2011/2012 2012/2013 2013/2014 2014/2015 2015/16ALLUpgrading ofSubstations, Yards R 891,351 R 944,833 R1,001,523 R1,061,614 R1,125,311and ChambersALLGrading ofprotection relays(33kV)Stanger POS15 ELS/2010/56 Replace 6 x 33kVGang Links19 ELS/2010/57LavoipierreReplace 4 x 33kV R 180,000Gang Links24 ELS/2010/59Groutville Priority1 SubstationExpansion New R13,122,50033/11kV 10MVAS/S19 ELS/2010/62KwaDukuza CBD- Switch room and R 7,692,500feeders19 ELS/2010/64KwaDukuza Hesto- Switch room and R10,407,500feeders19 ELS/2010/69Saunders Street11kv Switchroom R 7,692,500and feeders19Glenhills -Upgrade of 33kV R 1,689,600OHL (Poplar)7/9/10/15/24/26 Shakaskraal / KwaDukuza Interconnector (Connect 11kV to Priority One)19Saunders Street /Glenhills 11kV R 2,715,000Feeder Cables15 ELS/2010/65Sappi - Replacethe 2x33kV R 157,895Breakers11 ELS/2010/66Nonoti MouthHousing Project- 11kv 0H SupplyR 6,823,464lineGroutville/FawselySubstation26 ELS/2010/67 Operational NewR5,821,772Switchroom andfeeders10 ELS/2010/68Thembeni 11 kVSwitchroom andR5,821,772feeders3 ELS/2010/58ChantillySiyembeziSubstationExpansion NewR3,250,000Switchroom andfeeders15 ELS/2010/70Sappi - 33kVSwitchgear Anti- Corrosion andR 500,000Silicon Coating19 ELS/2010/71GlenhillsLavoipierre -Replace 33kVCable [6]R3,600,00072KwaDukuza Municipality Integrated Development Plan - 2011/16

WARD IDP DESCRIPTION Future Budgets15 ELS/2010/7211 ELS/2010/7311 ELS/2010/74161915191971911111622 ELS/2010/9522Gledhow MillReplace 33kVGang Links/BreakersTugela/Blythedale/DoornkopSwitching StationContingencyEstablish newswitching stationat Tee offAddingtonSubstationDevelopment New33/11kV S/SIndustrialSubstation,UpgradeTransfomers to 2 x10MVA33kV Feeder BayRefit - LavoipierreSubstationGledhow Millto Lavoipierre -Replace 300mof stolen 95mmCableReplace 33kV CT's, 2 - Incomer Bay2 – GlenhillsLavoipierreSubstationReplace HVBreaker , 1 -Interconnector -Stanger IncomerShakaskraalSubstation3rd 10MVATransformerTie in TemporaryGlenhills/Industrial Busbarat Lavoipierre intothe 33kV Busbarat LavoipierreNonoti 33/11kV,1 x 10MVASubstationEstablishNonoti 33kV Turnin lines (2 x 95mmXLPE - 9km) and33kV Feeder Baysat IndustrialIndustrialSubstation3rd 10MVATransformerPalm Lakes33/11kV, 2 x10MVA SubstationEstablishPalm Lakes 33kVTurn in lines (2 x185mm XLPE -6km)2011/2012 2012/2013 2013/2014 2014/2015 2015/16R 521,250R 1,180,009R 663,447R 87,186R 207,945R9,903,750R 270,000R17,000,000R 7,500,000R 409,308 R 7,776,845R 56,924R1,081,550R 949,533 R17,091,589 R 949,533R1,458,089 R26,245,600 R1,458,089R 459,898R8,738,063R 1,316,913 R23,704,439 R1,316,913R 1,170,513 R21,069,241 R1,170,51373

WARD IDP DESCRIPTION Future Budgets7107//09/102415/24/261911 & 1515107//09/102415/24/261911 & 1515Shakaskraal 33kVFeeder Bays forPalm LakesThembeni33/11kV, 2 x10MVA SubstationEstablishNew Dual Circuit33kV Poplar OHL(5km Shakaskraalto Thembeni)Groutville PriorityOne Substation,UpgradeTransfomers to 2 x20MVANew Dual Circuit33kV Poplar OHL(3km Stanger toGroutville PriorityOne)GlenhillsSubstation3rd 10MVATransformerAddington 33kVTurn in lines (2 x185mm XLPE -8km)Sappi: Replace HVLinks , 4 - Sappi33kV BusbarBulk Suppliesin the NorthernSectionThembeni33/11kV, 2 x10MVA SubstationEstablishNew Dual Circuit33kV Poplar OHL(5km Shakaskraalto Thembeni)Groutville PriorityOne Substation,UpgradeTransfomers to 2 x20MVANew Dual Circuit33kV Poplar OHL(3km Stanger toGroutville PriorityOne)GlenhillsSubstation3rd 10MVATransformerAddington 33kVTurn in lines (2 x185mm XLPE -8km)Stanger POS 33kVFeeder Bays forAddington2011/2012 2012/2013 2013/2014 2014/2015 2015/16R 168,649R 1,395,928R3,204,334R25,126,705R 401,420R 1,096,777R 240,852R 487,492R 1,753,5852016/2017 2017/2018 2018/2019 2019/2020 2020/2021R 1,395,928R 7,626,986R20,838,760R 4,576,192R 9,262,347R31,564,532R 189,494R1,753,585R3,600,39074KwaDukuza Municipality Integrated Development Plan - 2011/16

WARD IDP DESCRIPTION Future Budgets11 ELS/2010/10011 & 2210113 & 1111191010191119101019Tinley Manor33/11kV, 2 x20MVA SubstationEstablishTinley Manor 33kVTurn in lines (2 x185mm XLPE -4km) and 33kVBays from PalmLakesThembeniSubstation,UpgradeTransfomers to 2 x20MVANonoti 132/33kV,2 x 40MVA BulkSupply SubstationEstablishNonoti 132kV Turnin lines (Dbl CctKingbird - 11km)Nonoti 33/11kVSubstation,UpgradeTransfomers to 2 x20MVALavoipierreSubstation:Replace 33kVSurge ArrestersThembeni132/11kV, 2 x40MVA SubstationEstablishThembeni 132kVTurn in lines (Dblcct Kingbird -5km)GlenhillsSubstation:Replace 33kVSurge ArrestersBulk Suppliesin the NorthernSectionNonoti 33/11kVSubstation,UpgradeTransfomers to 2 x20MVALavoipierreSubstation:Replace 33kVSurge ArrestersThembeni132/11kV, 2 x40MVA SubstationEstablishThembeni 132kVTurn in lines (Dblcct Kingbird -5km)GlenhillsSubstation:Replace 33kVSurge ArrestersR 2,061,400 R37,105,203 R2,061,400R 1,096,787 R 19,742,160 R 1,096,787R1,306,279R24,819,297R 2,169,075 R19,521,676 R19,521,676 R2,169,075R 1,961,780 R35,312,039 R1,961,780R 2,528,292R1,467,735R22,754,629R 1,001,935 R 9,017,4112021/2022 2022/2023 2023/2024 2024/2025 2025/2026R27,886,962R 631,286R22,754,629 R 2,528,292R 9,017,411 R 1,001,935R 401,49775

WARD IDP DESCRIPTION Future Budgets1515222415/24/26151516151516151515151516Sappi: Replace33kV CT's , 3 -TransformersSappi: Replace33kV Busbar ,4 - Sappi 33kVBusbarPalm LakesSubstation,UpgradeTransfomers to 2 x20MVAUpgrade GroutvillePriority OneSubstation to132/11kV 2 x40MVAGroutville 132kVTurn in lines (Dblcct Kingbird -3km)Sappi Substation:Replace 33kVSurge ArrestersStanger 33/11kV2 x 10MVAEstablishIndustrialSubstation:Replace 33kVSurge ArrestersBulk Suppliesin the NorthernSectionSappi Substation:Replace 33kVSurge ArrestersStanger 33/11kV2 x 10MVAEstablishIndustrialSubstation:Replace 33kVSurge ArrestersSappi: ReplaceSubstation Yard ,Substation YardSappi: ReplaceSubstationBuildings , Land &BuildingsSappi: ReplaceTap Changer , 3 -TransformersSappi: ReplaceTransformer , 5 -Transformer Bay 1Sappi: ReplaceTransformer , 6 -Transformer Bay 2IndustrialSubstation:Replace 33kVCT's, 4 -TransformersR 156,137R 1,590,445R 1,649,147 R 31,333,791R 2,840,789 R 25,567,101 R 25,567,101 R 2,840,789R 675,464 R 6,079,178 R 6,079,178 R 675,464R 2,649,8882026/2027 2027/2028 2028/2029 2029/2030 2030/2031R 337,924R47,697,988 R 2,649,888R 537,294R 782,057R 16,843R 120,292 R 2,285,550R 454,787 R 8,640,945R 454,787 R 8,640,945R 110,74276KwaDukuza Municipality Integrated Development Plan - 2011/16

WARD IDP DESCRIPTION Future Budgets16191915IndustrialSubstation:Replace 33kVBusbar , 3 -Industrial 33kVBus-CouplerLavoipierreSubstation:Replace 33kV CT's, 5 - TransformersLavoipierreSubstation:Replace 33kVBusbar , 3 -Lavoipierre 33kVBusbarSappi: Replace HVLinks , 4 - Sappi33kV BusbarR 112,804 R 2,143,272R 373,285R 126,746 R 2,408,181R 163,53777

Bulk Supplies in the Northern Section (2011/2012 – 2015/2016)WARD IDP DESCRIPTION Future Budgets6 ELS/2010/8122 ELS/2010/824/6/7/8/22/23 ELS/2010/8821 ELS/2010/907222222 ELS/2010/92226 & 227/22/23226 ELS/2010/7722 ELS/2010/7521/22 ELS/2010/8311 ELS/2010/846 ELS/2010/87226.2.1 SouthernSectionBallito Main-Replace 9x33kVGang LinksShakasrock -Replace 6x33kVGang LinksShakaskraal toHilltop 33kVupgrade(Tender - C)Hilltop - Replace2x33kV GangLinks33kV Breakerfor Shakaskraal/ChakasrockFeederDriefonteinSingle 33KV OHLCircuit (20km)Chakas RockSub Transformer& AssociatedEquipmentNew 10MVA(33/11kVTransformersand Breakers)SheffieldSubstation33/11kV DukuzaIntake Sub: Yard& SwitchingStation &InjectionRelocate MVMains P445InterchangeSheffield Sub /Bulk Supply JointVenture (CouncilContribution)11kV Cables fromSheffield Sub toVilla Royale S/RBallito old CBD11KV Switchroomand feedersDukuza -MunicipalTransformation- 33/11kV(2 x 10MVATransformers)Hilltop RingOperational CloseHilltop ringShayamoya 11kvswitchroom andfeedersBallito Main -Replace 3x33kVCct. BreakersDriefontein -Refurb old 33kVFeeder line(12km)2011/2012 2012/2013 2013/2014 2014/2015 2015/2016R 219,298R 307,018R 4,224,000R 5,430,000R 90,000R 33,716,045 R 7,500,000R 13,575,000R 6,800,000R 9,500,000R 210,000R 2,000,000R 2,850,000R 450,000R 194,489 R 3,695,28778KwaDukuza Municipality Integrated Development Plan - 2011/16

21 ELS/2010/942267 ELS/2010/79622227 ELS/2010/7922216 ELS/2010/81222122CartreffSubstationDevelopmentNew 33/11kVS/S (Move Hilltopto new site -Dependant onCartreff)Dukuza132/33kV, 2 x80MVA BulkSupply SubstationEstablishBallitoSubstation:Replace 33kVSurge ArrestersShakaskraal132/33kVBulk SupplySubstation,upgradeTransformers to 2x 80MVABulk Suppliesin the SouthernSectionBallitoSubstation:Replace 33kVSurge ArrestersImboniniSubstation3rd 10MVATransformer (UseTransformer fromSheffield?)SheffieldSubstation,UpgradeTransfomers to 2x 20MVAShakaskraal132/33kVBulk SupplySubstation,upgradeTransformers to 2x 80MVADukuzaSubstation,2nd 10MVATransformerCartreffSubstation2nd 10MVATransformerBulk Suppliesin the SouthernSectionBallito Main-Replace 9x33kVGang LinksDukuzaSubstation,2nd 10MVATransformerCartreffSubstation2nd 10MVATransformerZimbaliSubstation3rd 10MVATransformerR 895,786 R17,019,927R 2,239,145 R 20,152,306 R20,152,306 R2,239,145R 2,071,4422016/2017 2017/2018 2018/2019 2019/2020 2020/2021R 360,906R 516,741 R 9,818,088R 1,096,777 R 20,838,760R 18,642,975 R 18,642,975 R 2,071,442R 440,3202021/2022 2022/2023 2023/2024 2024/2025 2025/2026R 8,366,089R 494,744 R 9,400,137R 823,607 R15,648,54079

7/22/2322 ELS/2010/856 ELS/2010/817/22/23722666Shakaskraal toSheffield 3rd1 x 95mm CableUMhlali CBD-Switch room /FeedersBulk Suppliesin the SouthernSectionBallito Main-Replace 9x33kVGang LinksShakaskraal toSheffield 3rd 1 x95mm CableShakaskraalSubstation:Replace 33kVSurge ArrestersChakas RockSubstation:Replace 33kVSurge ArrestersBallitoSubstation:Replace 33kVSurge Arresters ,08 - TransformerBay 3BallitoSubstation:Replace HVBreaker , 07 -Transformer Bay 2BallitoSubstation:Replace 33kVBusbar , 05 -Ballito 33kVBusbarR 1,749,9882026/2027 2027/2028 2028/2029 2029/2030 2030/2031R 33,249,777R 929,281R 626,841R 201,234R 134,35180KwaDukuza Municipality Integrated Development Plan - 2011/16

Electrification Projects (2011/2012 – 2015/2016)WARD IDP DESCRIPTION Future BudgetsALL DME Electrification 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016ALL ELS/2010/124KWADUKUZAINFILLSR 678,400 R 719,104 R 762,250 R 807,985 R 856,46410,11,12 ELS/2010/121Ten Acre Self BuildHousing Project (incl R 3,840,000Dube Village)11 ELS/2010/131Nonoti Mouth (500units)R 920,000 R 920,000 R 920,000 R 920,000 R 920,00014/24 ELS/2010/116Groutville Priority 5(1000 units)R 1,840,000 R 1,840,000 R 1,840,00010 & 24 ELS/2010/117 Aldinville (600 units)14/24 ELS/2010/118Groutville Priority1 Phase 2,3 and 4 R 4,600,000 R 4,600,000 R 4,600,000 R 4,600,000 R 4,600,000(3000 units)14/24Groutville Priority1 Phase 5,6 and 7R 4,600,000 R 4,600,000(3000 units)5 & 17 ELS/2010/121 Lindelani (303 units) R 2,787,6005 & 18Shakaville Extension(150 Units)14/24Melville GledhowCompound (1500R 4,600,000 R 4,600,000 R 4,600,000Units)9 ELS/2010/128Mgigimbe (500units)R 2,300,000 R 2,300,00010 & 11 ELS/2010/130Charlottedale (2000units)R 4,600,000 R 4,600,000 R 4,600,000 R 4,600,00019 ELS/2010/132Thornhill (2300units)R 2,760,000 R 4,600,000 R 4,600,000 R 4,600,000 R 4,600,00016 ELS/2010/133Steve Biko Extension2 (1500 units)R 2,300,000 R 2,300,0005 & 18 ELS/2010/137MbozamoExtension(272 units)R 837,200 R 837,200 R 837,20016 & 19 ELS/2010/138Rocky Park (1000units)R 2,300,000 R 2,300,000 R 2,300,000 R 2,300,0007 ELS/2010/139Etete Phase 4 (1800units)R 4,140,000 R 4,140,000 R 4,140,000 R 4,140,000Eskom Area (notincluded in CouncilBudget. Use toR 4,000,000 R 16,000,000 R 16,000,000 R 20,000,000 R 12,000,000Secure DoE Funding)1 ELS/2010/145Sokesimbone (1000units)2 ELS/2010/146Nyathikazi (1000units)R 2,000,000 R 2,000,000 R 2,000,000 R 2,000,0003 ELS/2010/147Sakhamkhanya(2000 units)R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,0003 ELS/2010/147SakhamkhanyaPhase 2 (3000 units)R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,00021 & 22 ELS/2010/148Driefontein (1500units)R 4,000,000 R 4,000,000 R 4,000,00021 & 22Driefontein Wewe(1000 units)R 2,000,000 R 2,000,000 R 2,000,000 R 2,000,00021 & 22Driefontein Phase 1(5000 units)21 & 22Esenembe HumanSettlement Project(2000 Units)R 4,000,000 R 4,000,00081

ElectrificationProjectsALL ELS/2010/124KWADUKUZAINFILLSTen Acre Self Build10,11,12 ELS/2010/121 Housing Project (inclDube Village)11 ELS/2010/131Nonoti Mouth (500units)14/24 ELS/2010/116Groutville Priority 5(1000 units)10 & 24 ELS/2010/117 Aldinville (600 units)Groutville Priority14/24 ELS/2010/118 1 Phase 2,3 and 4(3000 units)Groutville Priority14/241 Phase 5,6 and 7(3000 units)12 ELS/2010/119 Ethafeni (850 units)19 ELS/2010/13216 ELS/2010/1339 ELS/2010/1421 ELS/2010/1452 ELS/2010/1463 ELS/2010/1473 ELS/2010/14721 & 22 ELS/2010/14821 & 2221 & 2221 & 22ALLELS/2010/12410,11,12 ELS/2010/1219 ELS/2010/1421 ELS/2010/14521 & 2221 & 22Thornhill (2300units)Steve Biko Extension2 (1500 units)Mnyundwini (1000units)Eskom Area (notincluded in CouncilBudget. Use toSecure DoE Funding)Sokesimbone (1000units)Nyathikazi (1000units)Sakhamkhanya(2000 units)SakhamkhanyaPhase 2 (3000 units)Driefontein (1500units)Driefontein Wewe(1000 units)Driefontein Phase 1(5000 units)Esenembe HumanSettlement Project(2000 Units)ElectrificationProjectsKWADUKUZAINFILLSTen Acre Self BuildHousing Project (inclDube Village)Mnyundwini (1000units)Eskom Area (notincluded in CouncilBudget. Use toSecure DoE Funding)Sokesimbone (1000units)Driefontein Wewe(1000 units)Driefontein Phase 1(5000 units)2016/2017 2017/2018 2018/2019 2019/2020 2020/2021R 907,852 R 962,323 R 1,020,063 R 1,081,267 R 1,146,143R 1,840,000 R 1,840,000R 4,600,000R 4,600,000 R 4,600,000 R 4,600,000 R 4,600,000R 4,600,000 R 4,600,000R 12,000,000 R 12,000,000 R 4,000,000 R 4,000,000 R 4,000,000R 4,000,000 R 4,000,000R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,000R 4,000,000 R 4,000,0002021/2022 2022/2023 2023/2024 2024/2025 2025/2026R 1,214,911 R 1,287,806 R 1,365,074 R 1,446,979 R 1,533,797R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,000R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,000 R 4,000,00082KwaDukuza Municipality Integrated Development Plan - 2011/16

21 & 22ALL ELS/2010/12410,11,12 ELS/2010/121Esenembe HumanSettlement Project(2000 Units)ElectrificationProjectsKWADUKUZAINFILLSTen Acre Self BuildHousing Project (inclDube Village)2026/2027 2027/2028 2028/2029 2029/2030 2030/2031R 1,625,825 R 1,723,375 R 1,826,777 R 1,936,384 R 2,052,567Private Township Projects (Refunds)WARD IDP DESCRIPTION Future Budgets9.1 Northern Section 2011/2012 2012/2013 2013/2014 2014/2015 2015/20163 ELS/2010/14916 ELS/2010/151Prince’s Grant– ElectricityReticulationDoctorskop : Phase II: Extension 31R 307,018 R 307,018 R 307,018R 0 R 307,018 R 307,0189.2 Southern Section R 1,140,351 R 921,053 R 614,035 R 0 R 06 ELS/2010/152 Avondale R 307,018 R 307,01822 ELS/2010/153 Zimbali R 307,018 R 307,018 R 307,0186 ELS/2010/154Extension 5 Ballito(Seaward Estate)6 ELS/2010/156 Extension 5 Phase 1 R 219,2983 ELS/2010/14916 ELS/2010/151Private TownshipProjectsPrince’s Grant– ElectricityReticulationDoctorskop : Phase II: Extension 31R 307,018 R 307,018 R 307,0182021/2022 2022/2023 2023/2024 2024/2025 2025/2026R 307,018 R 307,018R 307,018 R 307,0189.2 Southern Section R 0 R 921,053 R 614,035 R 0 R 06 ELS/2010/152 Avondale R 307,01822 ELS/2010/153 Zimbali R 307,018 R 307,0186 ELS/2010/154Extension 5 Ballito(Seaward Estate)6 ELS/2010/156 Extension 5 Phase 1Private TownshipProjects3 ELS/2010/14916 ELS/2010/151Prince’s Grant– ElectricityReticulationDoctorskop : Phase II:Extension 319.2 Southern Section6 ELS/2010/152 Avondale22 ELS/2010/153 Zimbali6 ELS/2010/154Extension 5 Ballito(Seaward Estate)6 ELS/2010/156 Extension 5 Phase 1R 307,018 R 307,0182026/2027 2027/2028 2028/2029 2029/2030 2030/203183

KwaDukuza Municipality Electricity ServicesWard IDP Description Future BudgetsA Electricity Services 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016All 1 Administration R 1,281,613 R 685,062 R 751,341 R 803,176 R 780,142All 2 Streetlighting R 1,048,145 R 1,111,033 R 1,177,695 R 1,248,357 R 1,323,258All 3 Upgrades LT mains R 639,474 R 170,877 R 179,726 R 0 R 0All 4Upgrades MVNetworksR 3,104,484 R 2,156,040 R 2,285,402 R 2,422,527 R 2,567,878All 5 Upgrade Substations R 1,164,912 R 788,491 R 835,801 R 885,949 R 939,106All 6 Bulk Supplies R 134,211,301 R 53,463,727 R 127,910,531 R 51,444,921 R 45,608,097All 7 Pole Replacement R 148,773 R 157,700 R 167,161 R 177,191 R 187,823All 8 Electrification Projects R 18,723,200 R 29,616,304 R 31,499,450 R 35,307,985 R 28,456,464All 9Private TownshipProjectsR 1,447,368 R 1,535,088 R 1,228,070 R 0 R 0Department Total R 161,769,270 R 89,684,322 R 166,035,179 R 92,290,106 R 79,862,769KwaDukuzaMunicipalityElectricity Services2016/2017 2017/2018 2018/2019 2019/2020 2020/2021All 1 Administration R 826,951 R 876,568 R 929,162 R 984,912 R 1,044,006All 2 Streetlighting R 1,402,654 R 1,486,813 R 1,576,022 R 1,670,583 R 1,770,818All 3 Upgrades LT mains R 0 R 0 R 0 R 0 R 0All 4Upgrades MVNetworksR 1,939,363 R 2,055,725 R 2,179,068 R 2,309,812 R 2,448,401All 5 Upgrade Substations R 995,452 R 1,055,179 R 1,118,490 R 1,185,599 R 1,256,735All 6 Bulk Supplies R 99,229,825 R 113,670,236 R 28,019,363 R 83,183,238 R 37,810,950All 7 Pole Replacement R 199,092 R 211,038 R 223,700 R 237,122 R 251,349All 8 Electrification Projects R 16,547,852 R 12,002,323 R 5,620,063 R 5,681,267 R 1,146,143All 9Private TownshipProjectsDepartment Total R 121,141,189 R 131,357,882 R 39,665,867 R 95,252,532 R 45,728,402KwaDukuzaMunicipalityElectricity Services2021/2022 2022/2023 2023/2024 2024/2025 2025/2026All 1 Administration R 1,106,647 R 1,173,046 R 1,243,428 R 1,318,034 R 1,397,116All 2 Streetlighting R 1,877,067 R 1,989,691 R 2,109,073 R 2,235,617 R 2,369,754All 3 Upgrades LT mains R 0 R 0 R 0 R 0 R 0All 4Upgrades MVNetworksR 2,072,503 R 1,462,578 R 962,559 R 1,020,313 R 1,081,532All 5 Upgrade Substations R 1,332,139 R 1,412,068 R 1,496,792 R 1,586,599 R 1,681,795All 6 Bulk Supplies R 71,541,344 R 40,099,761 R 72,380,207 R 4,339,861 R 20,048,417All 7 Pole Replacement R 266,430 R 282,416 R 299,361 R 317,322 R 336,362All 8 Electrification Projects R 1,214,911 R 1,287,806 R 1,365,074 R 1,446,979 R 1,533,797All 9Private TownshipProjectsR 0 R 1,535,088 R 1,228,070 R 0 R 0Department Total R 79,411,041 R 49,242,453 R 81,084,564 R 12,264,725 R 28,448,773KwaDukuzaMunicipalityElectricity Services2026/2027 2027/2028 2028/2029 2029/2030 2030/2031All 1 Administration R 1,480,943 R 1,569,800 R 1,663,987 R 1,763,827 R 1,869,656All 2 Streetlighting R 2,511,939 R 2,662,656 R 2,822,415 R 2,991,760 R 3,171,266All 3 Upgrades LT mains R 0 R 0 R 0 R 0 R 0All 4Upgrades MVNetworksR 445,676 R 472,416 R 500,761 R 530,807 R 562,655All 5 Upgrade Substations R 1,782,703 R 1,889,665 R 2,003,045 R 2,123,228 R 2,250,621All 6 Bulk Supplies R 83,357,639 R 26,434,378 R 201,234 R 500,031 R 2,706,068All 7 Pole Replacement R 356,543 R 377,936 R 400,612 R 424,649 R 450,128All 8 Electrification Projects R 1,625,825 R 1,723,375 R 1,826,777 R 1,936,384 R 2,052,567All 9Private TownshipProjectsR 0 R 0 R 0 R 0 R 0Department Total R 91,561,268 R 35,130,225 R 9,418,832 R 10,270,685 R 13,062,96284KwaDukuza Municipality Integrated Development Plan - 2011/16

7.9. Sports and Recreation BacklogKwaDukuza municipality regards sport as an importantcontributor towards building a social cohesion as wellas a social capital among young people and adultswithin communities of KwaDukuza area. Like in allcommunities around the globe, KwaDukuza municipalityhas over the years used sport as a practical tool to unite,organize, mobilize and engage the young people in theircommunities through sporting events, resulting in higherlevels of participation, leadership, community engagementand altruism among young people. Sport has further beenused to bridge the gender, ethnical and racial dividesamongst the people of KwaDukuza through offering equalopportunities to sport programmes regardless of gender,ethnicity and race.It is important to note that KwaDukuza municipality shallintegrate sport development to its youth developmentprogramme. Sport is generally used as an attractive activityfor young people, and it is often used as a draw card torecruit children and young people to health and educationprogrammes, and it is the intention of KwaDukuza to usesport a tool to promote healthy living styles and for fightingdiseases such as tuberculosis and HIV & AIDS. Sport willtherefore be used as a means to deliver educationalmessages to both participants and spectators. This willtherefore require that KwaDukuza municipality completesstrengthens its HIV & AIDS policy amongst other things.Indoor Center(Basketball,Badminton,Gymnastics,Boxing, TableTennis Etc)KwaDukuzaCentralOutdoorCombo Court(Netball,Volleyball,Basketball,Tennis Etc)DarnallSokesimboneSakhamkhanyaNyathikaziLindelaniShakavilleMdonivilleStanger ManorGlenhillsNtshawiniChris HaniAldinvilleEteteShayamoyaShakasheadDriefonteinMadundube/AshvilleFootball /Rugby FieldsAthleticsCricket OvalSwimming Pool(Standard /Heated)School sportsfacilitiesKwaDukuzaRecreationalGrounds(UpgradeSokesimboneDarnall (Upgrade)SakhamkhanyaNyathikaziLindelani(Upgrade)Shakaville(Upgrade)MdonivilleGlenhillsChris HaniAldinvilleEteteShayamoyaRocky ParkMadundube/AshvilleGledhow RugbyField (Upgrade)NkobongoKwaDukuzaRecreationalGroundsShakaskraalDriefonteinMadundube/AshvilleShakaskraalKwaDukuza CBDWard 12 –EThembeniEteteNonhlevu HighSchoolIziphozethu HighSchool (ComboCourt and NetballCourt)Darnall PrimarySchool SportsComplexChapter 785

7.10. Housing BacklogKwaDukuza is the economic hub of the Ilembe district andbecause of this reason that most people from other partsof the Ilembe district find it to their advantage to comeand settle in KwaDukuza in pursue of both housing andjob opportunities. The current low income housing backlogin KwaDukuza is 37 000 units, but the Municipality is inthe process of finalizing the delivery of approximately 9000units. The natural growth in the area is in the region of 4%,and together with relatively small average household sizes,it leads to a situation where demands for new housingunits are ever increasing.If housing delivery continues at its current pace, thenthe backlog will remain over a period of 10-15 years,and increase dramatically thereafter if delivery is notsignificantly increased. KwaDukuza Housing DemandDatabase suggests that the total housing backlog inKwaDukuza is sitting at 68000. This number is made outof:• 37 000: for low income housing;• 16 000: or affordable housing;• 10 000: for both social housing and communityresidential units;• 5 000: for old age rental accommodation.KwaDukuza is committed at building vibrant communitiesthroughout its area of jurisdiction. A lot has been donein as far as the provision of housing is concerned, butthere are number of factors that make the addressingof housing far from over. The following are some of thechallenges that KwaDukuza Municipality is faced with inas far as housing is concerned:• There is a scarcity of land to build houses or in caseswhere land is available, the landowners are askingfor extremely high prices.• There are landowners, who have regarded shack farmingas an income generating activity. These landowners do sowithout providing basic services like water, sanitation, roads,etc. In most instances, these people are living in very squalorconditions. This then necessitates KwaDukuza Municipalityto become proactive in providing decent living conditions forthese people.To service just the current projects on thehuman settlement programme will requirethe following financial injections:a. Land acquisition = R59 million rand over the next 4 to 5financial years; andb. Bulk, link and internal reticulation services to the valueof over R2.5 billion rand. This equates to approximatelyR69 000 per low income housing unit at today’s prices.It is especially notable how big the component ofMunicipal Contributions is in this equation.c. The current anticipated housing supply rate ofKwaDukuza Municipality is expressed in the informationprovided in the table and graph below for each of thecategories of low income and affordable humansettlement that qualify for assistance in terms ofthe Integrated Human Settlement Policy and FSC Policiesof Government.86KwaDukuza Municipality Integrated Development Plan - 2011/16

YearHousingsupply lowincomeHousingsupplyaffordableincomeRural HousingSupplyOld AgeAffordable/ MiddleIncome2011 720 168 1252012 3053 600 1252013 4100 8722014 5700 1050 2002015 3700 1050 200 6002016 3800 1950 200 6002017 2700 1750 100 5002018 2200 1600 4002019 1600 1400 2952020 1100 12002021 500 11002022 200 11002023 500Total 29373 14340 250 500 2595KwaDukuza Municipality Integrated Human Settlement Development Plan has identified various housing projectsand these projects are in different phases of development.Ward Project Name Short Term Medium Term Long Term11 CharlottedaleLand Acquisition Funding to beprovided.Tranche 1 ApprovalPDA or DFA Approval.Installation of services followedby houses construction andtransfers.21Driefontein(Three additionalproperties)Land Acquisition Funding to beprovided.PDA Approval Tranche 2ApprovalInstallation of Services followedby houses construction and handover20 eTete Phase 4Land Acquisition Funding to beprovided.Tranche 1 Approval PDAApprovalInstallation of services followedby the construction of housestransfers of properties to potentialbeneficiaries.15GledhowCompoundLand Acquisition Funding to beprovided.Sale administration process.Repairs or removal of propertiesTransfers of properties topotential beneficiaries.9 MgigimbeLand Acquisition Funding to beprovided.Tranche 1 ApprovalPDA or DFA approval. Installationof services followed by housesconstruction and transfersof properties to potentialbeneficiaries.Chapter 73 NyathikaziLand Acquisition Funding to beprovided.Tranche 1 ApprovalPDA / DFA Approval. Tranche2 & 3 approvals. Infrastructureinstallation to be followed byconstruction of houses andtransfers of properties to potentialbeneficiaries1SakhamkhanyaPhase 1Land Acquisition Funding to beprovided.Infrastructure installation.Tranche 3 ApprovalConstruction of Houses andtransfers of properties to potentialbeneficiaries13Steve Biko Phase 2Land Acquisition Funding to beprovided.Tranche 1 ApprovalPDA / DFA Approval. Tranche2 & 3 approvals. Infrastructureinstallation to be followed byconstruction of houses andtransfers of properties to potentialbeneficiaries87

27 MadundubeLand Acquisition Funding to beprovided.Tranche 1 ApprovalPDA / DFA Approval. Tranche2 & 3 approvals. Infrastructureinstallation to be followed byconstruction of houses andtransfers of properties to potentialbeneficiariesKwaDukuza Integrated Human Settlement Development Projects that are about to obtain Conditional Approval:11 CharlottedaleLand Acquisition Funding to beprovided. Tranche 1 Approval.PDA / DFA Approval. Tranche 2ApprovalInfrastructure Installation.Tranche 3 Approval followedby construction of houses andtransfers of properties to potentialbeneficiaries.7 Steve Biko Phase 2Land Acquisition Funding to beprovided.PDA Approval Tranche 2ApprovalTranche 2&3 approval.Infrastructure Installationfollowed by construction ofhouses and transfers of propertiesto potential beneficiaries.KwaDukuza Integrated Human Settlement Development Projects that are about to obtain Tranche 1 Approval:22 Mellowood Park3 Nonoti Mouth1 SokesimboneTranche 1 & 2 Approvals. Infrastructure installation. Construction of houses andtransfers of properties to potentialbeneficiaries.Tranche 1 Approval. PDA /DFAApprovalTranche 1 & 3 Approvals.Tranche 2 Approval.Infrastructure installation.Infrastructure installation to befollowed by the construction ofhouses.Tranche 3 approval to be followedby the construction of houses andtransfers of properties to potentialbeneficiaries.Construction of houses for Phase2.KwaDukuza Municipality Projects that are about to obtain Planning and Tranche 2 Approvals:24 Chris Hani21 Driefontein14 Lloyds26 Ntshawini19 Rocky Park118SakhamkhanyaPhase 1ShakavilleExtensionDFA/PDA Approval. Tranche 2ApprovalDFA/PDA Approval. Tranche 2ApprovalDFA/PDA Approval. Tranche 2ApprovalDFA/PDA Approval. Tranche 2ApprovalDFA/PDA Approval. Tranche 2ApprovalDFA/PDA Approval. Tranche 2ApprovalDFA/PDA Approval. InfrastructureInstallation.Infrastructure Installation.Tranche 3 ApprovalInfrastructure Installation.Tranche 3 ApprovalInfrastructure Installation.Tranche 3 ApprovalInfrastructure Installation.Tranche 3 ApprovalInfrastructure Installation.Tranche 3 ApprovalInfrastructure Installation.Tranche 3 ApprovalConstruction of houses andtransfers.Construction of houses andtransfers.Construction of houses andtransfers.Construction of houses andtransfers.Construction of houses andtransfers.Construction of houses andtransfers.Construction of houses andtransfers.Project completedKwaDukuza Municipality Projects that are about to commence with infrastructure installation9 Groutville Priority 2 Infrastructure Installation. Construction of houses Transfers of properties11 Groutville Priority 5 Infrastructure Installation. Construction of houses Transfers of propertiesPrivate Developments within KwaDukuza Municipality that have already obtained approval and waiting forbulk services assistance.11 Blythedale EstateInfrastructure Installation. Construction of houses followed Construction of houses followedby transfers of properties by transfers of properties11Hyde park SugarEstate11 Rocky Ridge19 Thorn HillInfrastructure Installation.Infrastructure Installation.Infrastructure Installation.Construction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesPrivate Developments within KwaDukuza Municipality that are at planning stage:Etulele EstateDFA/ PDA Approval Infrastructure Installation. Construction of houses followedby transfers of properties88KwaDukuza Municipality Integrated Development Plan - 2011/16

21Greater DriefonteinDevelopmentDFA/ PDA ApprovalInfrastructure Installation.9 Riverside Estate DFA/ PDA Approval Infrastructure Installation.516uShukela EstateDevelopmentDoctorskopMiddle HousingDevelopmentDFA/ PDA ApprovalDFA/ PDA ApprovalInfrastructure Installation.Infrastructure Installation.KwaDukuza Municipality Projects that are at Implementation stage:Construction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesConstruction of houses followedby transfers of propertiesConstruction of houses followedby transfers of properties10 AldinvilleConstruction of 144 remaininghousesSale Administration for phase 2Construction of houses.9; 10;12; 14;15 & 26Chief Albert LuthuliConstruction of 130 remaininghousesSale Administration for phase 2Construction of houses.12 Dube VillageOne house remaining to beconstructedProject CompletedProject Completed12 Ethafeni159 houses remaining to beconstructed.Project CompletedProject CompletedPrivate Developments within KwaDukuza Municipality that are at planning stage:5 Extension 3653 Properties to be transferred topotential beneficiaries.Project CompletedProject Completed24 Groutville P1 Project close-out to be completed. Project Completed Project Completed7 Etete Phase 216 Properties to be transferred topotential beneficiaries.Project CompletedProject Completed2Zinkwazi-Siyembezi P24 Shakashead P28 Nkobongo P1 & P223 Shayamoya P213 Steve Biko P118 SenzangakhonaTownship Establishment processto be completed23 houses to be constructed.Township Establishment to befinalizedProperties to be transferred topotential beneficiaries6 houses remaining to be builtand transferred to potentialbeneficiaries8 Properties to be transferredto potential beneficiariesSale Administration for 60remaining beneficiaries to befinalized. Construction of 60remaining houses.1096 Properties to betransferred to potentialbeneficiaries.Properties to be transferred topotential beneficiaries.Project CompletedProject CompletedProject Completed60 Properties to betransferred to potentialbeneficiariesProject CompletedProject CompletedProject CompletedProject CompletedProject CompletedProject CompletedChapter 789

CHAPTER8Financial Planning& Budget91

Chapter 8Financial Planning & Budget8.1 IntroductionThe five year plan reflects the municipality’s ongoingeffort to provide the highest quality of service in dailyoperations. Thus the municipality recognized that in orderfor the services to be provided at the best level possiblethe Integrated Development Plan (IDP) must be linked to afinancial plan. Furthermore, it was recognized that withoutthe financial plan, the IDP would be incomplete since thefinancial plan will give an indication of the financial abilityof the municipality. The financial plan together with the IDPis reviewed annually as per S21 of the Municipal FinanceManagement Act no 32 of 2000 and in terms of S34 of theMunicipal Systems Act no 32 of 2000 taking into accountthe realistic revenue and expenditure projections for futureyears. This annual review is as a result of the relevantregulations and the financial commitments and prioritieswhich differ from year to year.8.2 Operating and CapitalBudget EstimatesThe five year financial plan includes an Operating Budgetand the Capital Investment Programme per source offunding for the Medium Term Revenue and ExpenditureFramework ending June 2016 (5 years starting from2011/2012 to 2015/2016). The estimates are guided by aNational Treasury Gazette and Priorities from IDP.8.3 Budget Assumptions:In the compilation of the MTREF, the following influencingfactors were taken into account:• Normal inflationary increases and economicpressures, especially• Higher fuel prices• Higher unemployment rateYour attention is drawn to the section “SignificantUncertainties”, as contained in the Council item, inwhich fuel prices are stated as an uncertainty.• Zero-based and incremental budgeting for2011/2012• Zero-based budgeting is defined as a processwhere every department function is reviewedcomprehensively and each expenditures mustbe approved, rather than increased• It requires the budget request to be justified incomplete detail by each department rather thanjust increasing its expenditure from the previousyear• Property rates increase of:• 4,0% in 2012/2013• 5,8% in 2013/2014• Effect of ring-fencing of the Electricity Servicesis still awaiting approval of the tariff structure.Overall, the Council proposes a 20, 38% increase inthe Electricity tariffs.• The municipality will be implementing the incliningblock tariff structure• Bulk purchases for electricity has increased by26,71% in 2011/2012• Supply and distribution of electricity will continueunder the municipal license over duration of theMTREF• Refuse removal tariff increases as follows:• 6,5% in 2011/2012• 6,0% in 2012/2013• 7,0% in 2013/2014• Provision for a 6,0% increase for all staffremuneration costs, including MSA Section 57employees• Partnership programmes with the National andProvincial Government, the Development Bank ofSouth Africa• Primary Health Care function remains within theCouncil of KDM over the MTREF• It must be mentioned, however, that on thelist of provincial allocations to municipalitiesno allocations were made in terms of theHealth Subsidy for 2011/2012, 2012/2013 and2013/2014• The assumption is, therefore, that the functionwill no longer be a responsibility of Council,however provision has been made to coversuch costs.• There will be no major revisions to the currentorganogram during the budget year, 2011/2012• There will be no changes made to the presentpowers and functions of the KDM during the budgetyear, 2011/2012 with exception of ward 27 beingdemarcated from Ndwedwe Municipality.• The average long-term cost of borrowings is 12,66%• The impact of the global economic crisis will be shortto medium term for KwaDukuza• The municipality is able to maintain its current highdebt collection rates.• Electricity tariffs for Revenue are based onsubmissions lodged with NERSA and the municipality92KwaDukuza Municipality Integrated Development Plan - 2011/16

8.4 Significant External Factors• There is a slow recovery from the recession• Increasing fuel prices, with high Brent crude oilprices• Strong commodity demand and general investorreallocation• The repo-rate has decreased periodically during2010/2011• Currency fluctuations• Household consumption estimates in the MTREF• GDP estimates in the MTREF8.5 Basis and Methodology forForecasting Budget ProjectionsIn terms of Chapter 4, Section 16, of the MFMA, theoperational and capital budgets for the 2011/2012 financialyear, and the two subsequent years, attached hereto havebeen prepared according to the Municipal Budget andReporting Regulations as gazetted in Government GazetteNo. 32141 published on 17 April 2009.8.6 Alignment with GRAPThe draft MTREF is in line with the requirements of theGRAP standards.8.6.1 Benchmarks for Key PerformanceIndicatorsThese are benchmarks for the MTREF:KZN292 KwaDukuza - Performance indicators and benchmarksDescription of financial indicatorBorrowing Management2011/12 Medium Term Revenue & Expenditure FrameworkBudget Year2011/12Budget Year +1 2012/13Budget Year +22013/14Borrowing to Asset Ratio 20.0% 28.4% 34.3%Credit RatingCapital Charges to Operating Expenditure 5.3% 6.6% 7.9%Borrowed funding of ‘own’ capital expenditure 123.1% 113.4% 156.6%Safety of CapitalDebt to Equity 53.4% 71.1% 85.9%Gearing 256.6% 1140.8% 1816.4%LiquidityCurrent Ratio 1.3% 0.9% 0.6Current Ratio adjusted for aged debtors 1.3% 0.9% 0.6Liquidity Ratio 0.7% 0.2% 0.2Revenue ManagementAnnual Debtors Collection Rate(Payment Level %)95.9% 99.2% 96.7%Outstanding Debtors to Revenue 10.9% 11.7% 7.2%Longstanding Debtors Recovered 100.0% 100.0% 100.0%Creditors ManagementCreditors System Efficiency 100.0% 100.0% 100.0%Funding of ProvisionsProvisions not funded - % 0.0% 0.0% 0.0%Other IndicatorsElectricity Distribution Losses (2) N/A N/A N/AWater Distribution Losses (2) N/A N/A N/AEmployee costs 22.8% 23.5% 23.3%Remuneration 24.6% 25.3% 25.1%Repairs & Maintenance 0.0% 0.0% 0.0%Finance charges & Depreciation 7.9% 9.4% 9.7%IDP regulation financial viability indicatorsi. Debt coverage 14.5 12.4 13.3ii.O/S Service Debtors to Revenue 13.0% 13.7% 8.4%iii. Cost coverage 2.2 0.7 0.5Chapter 893

8.7 Budget EstimatesBelow is the Operating Budget Estimate for a five year period starting from 01 July 2011 to 30 June 2014.DescriptionBudget Year2011/122011/12 Medium Term Revenue & Expenditure FrameworkBudget Year +12012/13ESTIMATESBudget Year +22013/14Budget Year +32013/14Budget Year +42014/15Property rates 219,858,998 234,010,538 248,037,173 261,679,217.60 276,071,574.56Property rates - penalties & collectioncharges7,000,000 7,560,000 8,164,800 8,613,864.00 9,087,626.52Service charges - electricity revenue 405,405,351 437,810,623 471,907,282 497,862,182.27 525,244,602.30Service charges - water revenue - - - - -Service charges - sanitation revenue - - - - -Service charges - refuse revenue 37,806,548 40,074,941 42,880,187 45,238,597.33 47,726,720.18Service charges - other 530,000 572,400 618,192 652,192.56 688,063.15Rental of facilities and equipment 1,630,989 1,757,652 1,894,219 1,998,400.90 2,108,312.95Interest earned - external investments 16,239,668 17,375,989 18,595,673 19,618,434.5420,697,448.44Interest earned - outstanding debtors 1,600,000 1,728,000 1,866,240 1,968,883.20 2,077,171.78Dividends received - - - - -Fines 3,409,266 3,682,008 3,976,568 4,195,279.54 4,426,019.91Licences and permits 6,535,777 6,929,339 7,346,628 7,750,692.90 8,176,981.01Agency services - - - - -Transfers recognized - operational 89,923,520 79,762,000 82,972,000 87,535,460.00 92,349,910.30Other revenue 23,265,947 25,121,310 26,655,390 28,121,436.64 29,668,115.65Gains on disposal of PPE - - - - -Total Revenue (excluding capitaltransfers and contributions)813,206,065 856,384,799 914,914,352 965,234,641 1,018,322,547Expenditure - StandardGovernance and administration 118,051,104 128,923,450 142,008,709 149,819,188 158,059,243Executive and council 46,699,970 54,402,752 62,896,371 66,355,671.68 70,005,233.63Budget and treasury office 41,829,863 43,051,127 45,813,615 48,333,363.62 50,991,698.62Corporate services 29,521,271 31,469,572 33,298,723 35,130,152.54 37,062,310.93Community and public safety 132,311,666 143,630,894 152,356,046 160,735,628 169,576,088Community and social services 15,586,770 16,826,796 17,848,786 18,830,469.47 19,866,145.29Sport and recreation 46,381,345 50,883,918 53,973,445 56,941,984.60 60,073,793.75Public safety 51,818,852 55,943,432 59,346,114 62,610,150.21 66,053,708.47Housing 5,338,664 5,937,574 6,298,417 6,644,830.09 7,010,295.75Health 13,186,034 14,039,175 14,889,283 15,708,193.76 16,572,144.42Economic and environmentalservices103,497,616 104,798,293 107,801,396 113,730,473 119,985,649Planning and development 52,272,061 47,736,704 47,243,086 49,841,455.81 52,582,735.88Road transport 51,225,555 57,061,589 60,558,310 63,889,017.03 67,402,912.97Environmental protection - - - - -Trading services 459,303,475 479,008,891 512,720,642 540,920,278 570,670,893Electricity 408,354,158 424,667,454 454,599,793 479,602,781.68 505,980,934.68Water - - - - -Waste water management - - - - -Waste management 50,949,317 54,341,436 58,120,849 61,317,496.09 64,689,958.37Other - - - - -Total Expenditure - Standard 813,163,862 856,361,527 914,886,793 965,205,5671,018,291,873Surplus/(Deficit) for the year 42,203 23,272 27,559 29,075 30,67494KwaDukuza Municipality Integrated Development Plan - 2011/16

Table 3: Capital Budget estimated – Funding by standard classification – 2010/11 – 2012/13Description Budget Year 2011/12Budget Year +12012/13Budget Year +22013/14Capital Expenditure – StandardGovernance and administration 11,389,847 2,307,947 309,385Executive and council 130,000 20,000 30,000Budget and treasury office 4,303,847 937,947 229,385Corporate services 6,956,000 1,350,000 50,000Community and public safety 19,931,716 46,907,726 32,583,264Community and social services 11,074,400 9,626,620 8,199,970Sport and recreation 3,344,316 6,439,106 6,683,294Public safety 4,433,000 30,342,000 7,200,000Housing 15,000 - -Health 1,065,000 500,000 10,500,000Economic and environmental services 198,483,232 113,360,340 156,645,527Planning and development 81,400,000 48,080,000 55,000,000Road transport 117,083,232 65,280,340 101,645,527Environmental protection - - -Trading services 161,047,742 196,304,274 174,149,346Electricity 158,157,742 186,334,274 171,599,346Water - - -Waste water management - - -Waste management 2,890,000 9,970,000 2,550,000Other - - -Total Capital Expenditure - Standard 390,852,537 358,880,287 363,687,522Figure 1: IDP strategic objective and the capital budget – 2011/12Financial Year 2011 / 2012Chapter 895

Figure 2: Budgeted Funding per Department – 2011/12Draft Budget 2011 / 20128.8 Debt Management FrameworkTable 3: Debt Management Framework from 2010:2012Financial Year2011/12Financial Year +12012/13Financial Year +22013/14R R ROPENING BALANCE 78,349,786 321,570,795 473,130,835Add: Electricity Loan - Energy Master Plan 143,728,241 127,712,347 107,221,658Add: Roads Master Plan 58,020,000 - 43,430,000Add: P445 Road Interchange 46,000,000 40,000,000 35,000,000Add: other 15,907,986 16,500,000 -Total 342,006,013 505,783,142 658,782,493Repayments (20,435,218) (32,652,307) (44,177,690)Closing Balance 321,570,795 473,130,835 614,604,80396KwaDukuza Municipality Integrated Development Plan - 2011/16

8.9 GrantsSome of the KwaDukuza Municipality’s objectives are funded in the form of grants and subsidies. The Division of Revenue Bill outlinesthe equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2011/12financial year onwards.Table 4: Division of Revenue Act Allocations (DORA) from 2011:2012Below are grants which have been allocated to KwaDukuza Municipality by National, Provincial Treasury and other Governmentdepartments. Housing Grant can only be claimed when all housing related processes are met. Included are grants which rolled overfrom the 2010/11 financial year.KZN292 KwaDukuza - Transfers and grant receiptsDescription 2011/12 Medium Term Revenue & Expenditure FrameworkR thousand Budget Year 2011/12 Budget Year +1 2012/13 Budget Year +2 2013/14RECEIPTS:Operating Transfers and GrantsNational Government: 72,477,000 78,286,000 80,071,000Local Government Equitable Share 65,237,000 72,636,000 77,471,000Finance Management 1,450,000 1,500,000 1,750,000Municipal Systems Improvement 790,000 800,000 850,000NDPG 5,000,000 3,350,000Provincial Government: 6,490,000 1,476,000 2,901,000Health subsidy 4,589,000 - -Provincialization of Libraries 1,220,000 1,281,000 2,690,000Musuem Services 181,000 195,000 211,000Thusong Centre 500,000 - -District Municipality:Ilembe- Property Rates - - -Other grant providers:Rates, Museum and Libraries - - -Total Operating Transfers and Grants 78,967,000 79,762,000 82,972,000Capital Transfers and GrantsMunicipal Infrastructure Grant (MIG) 28,975,000 35,231,000 37,169,000Integrated National Electrification Programme 2,000,000 - -NDPG 15,000,000 8,000,000 -Provincial Government: 761,000 101,000 106,000Provincial Security MPCC 665,000 - -Community Library Services Grant 96,000 101,000 106,000New Library - - -District Municipality: - - -Other grant providers: - - 20,000,000Rates, Museum and Library 20,000,000Total Capital Transfers and Grants 46,736,000 43,332,000 57,275,000TOTAL RECEIPTS OF TRANSFERS & GRANTS 125,703,000 123,094,000 140,247,00097

98KwaDukuza Municipality Integrated Development Plan - 2011/16

8.10 Financial StrategyThe financial policy of KwaDukuza Municipality is toprovide a sound financial base and the resources necessaryto sustain a satisfactory level of the municipal servicesfor the community of KwaDukuza. It is the goal of theMunicipality to achieve strong financial position with theability to withstand local and regional economic impacts,adjust effectively to the community’s changing servicerequirements, and manage the municipality’s budget andcash flow to the maximum benefit of the community andprovide high level of protective services to assure publichealth and safety.KwaDukuza Municipality’s financial policies will addressthe following goals:• To keep the municipality in a fiscally sound position inboth long and short term;• Maintain sufficient financial liquidity through regularreviews and adjustments to meet normal operatingand contingent obligations;• Apply credit control policies which maximizescollection while providing relief for the indigent; and• Credit policy that recognizes the basic policy ofcustomer care and convenience.• Maintaining existing infrastructure and capital assets8.11 General Strategies8.11.1 Social ResponsibilityThe social responsibility focuses on the empowermentand transformation of the public. For example whenthe municipality is awarding tenders, they will enterinto agreements with suppliers/partners who willdemonstrate a significant and continuing contribution tothe empowerment of the previously disadvantaged localcommunities.A customer complaint, suggestions and complimentsprogramme that was introduced in the 2007/08 year is stillrunning and is consistently monitored. This is to ensurethe municipality is reaching out to its community in everypossible way.8.11.2 Increasing the Level of Confidence inInvestorsFor any investors to have their monies invested in any area,they need to see the ability that the municipality is financiallydisciplined. They want to see that their investments willbe protected and then obviously profitable. This includesadherence to statutory requirements, the assurance thatthe financial statements are prepared timeously and agood record of unqualified reports. Indeed KwaDukuzaMunicipality has displayed all of these and for five yearsin a row has produced financial statements which has leadto five unqualified reports (2005/06, 2006/07, 2007/08,2008/09 and 2009/10). This Municipality is confident thatfor the 2010/11 financial year as well they will indeed begoing for another unqualified report.Chapter 899

8.11.3 Financial FrameworkThe following are the financial resources foroperating and capital budget for the 2011/12financial year:Operating budget: Revenue• Property Rates• Property Rates – penalties imposed andcollection charges• Service charges – electricity revenue• Service charges – refuse revenue• Service charges - other• Rental of facilities and equipment• Interest earned – external investments• Interest earned – outstanding debtors• Fines• Licenses and permits• Transfers recognized – operation• Other revenue• Gains on disposals of PPEOperating budget: Expenditure• Standard Classification• Executive and council• Budget and treasury office• Corporate services• Community and social services• Sport and recreation• Public safety• Health• Planning and development• Road transport• Electricity• Waste managementCapital budget:• Grant funding/ Public contributions• Internal Funding (Council Funding) and• External Funding (Loans)• Other Funding Source8.11.3.1. Revenue Adequacy and CertaintyIt is of vital importance that the municipality hasadequate sources of revenue, from both its ownoperations and intergovernmental transfers, toenable it to carry out its functions. The Divisionof Revenue Act (DORA) has laid out the level offunding from National Government that will bereceived for the 2010/11 to 2012/13 financialyears.Knowledge of the resources of funds will illustratethe Municipality’s position more accurately.• Cash/Liquidity PositionCash management is crucial for theshort and long-term survival and goodmanagement of the organization. To assessthe financial standing of the municipality, acurrent ratio will be used which expressesthe current assets as a proportion to currentliabilities. A current ratio of more than 2:1is considered to be healthy. At the momentthe municipality is currently sitting at 2:1• SustainabilityThe municipality should ensure that thebudget is balanced – revenue is greaterthan the expenditure. Services providedat all levels should be affordable. However,subsidies need to be made available to theindigent who cannot even pay for a quarterof their service costs so that they can haveaccess to at least basic services.• Accountability, Transparency andGood GovernanceKwaDukuza Municipality is responsible tothe people who provide the resources, forwhat they do with those resources. Thebudget process and other financial decisionsshould be open to the public participation.Also, it is critical that the accurateinformation is produced within acceptabletime-frames. KwaDukuza should alsorefer to the Local Government TurnaroundStrategy to enhance its accountability.• Equity and RedistributionKwaDukuza Municipality must treat peoplefairly and justly when it comes to theprovision of services. In the same way thatKwaDukuza Municipality should be treated,equitably by the national and provincialgovernment when it comes to the intergovernmentaltransfers. KwaDukuza mustensure that redistributions are in line withthe IDP as being reviewed for the provisionof services.100KwaDukuza Municipality Integrated Development Plan - 2011/16

8.12 Asset Management StrategiesThe Municipality must ensure that the asset managementsystem is fully implemented and functional. There is a needfor the municipality to identify all the unutilized assetsso that they can be disposed of. The status of the assetregister review process and asset verification will start inMarch for the 2009/10 financial year. This is an ongoingprocess done by KwaDukuza Municipality and consultantsfrom Ducharm Consulting (Pty) to ensure we comply withrequired standards. The municipality plan to appoint theasset accountant at the end of this financial year (being2010/11) to ensure full compliance with the MFMA andGRAP/GAMAP standards.The Municipality is utilizing computerized assetmanagement software and already in the process ofinvestigation, identification and implementation of thesuitable integrated asset management system. This willalso include the capture of all assets onto the system,the maintenance of this system and the production ofa complete asset register in terms of GRAP/GAMAPrequirements.8.13 Financial Management StrategiesThe following are some of the more significant programmesthat have been identified and some are in place already:• Budget and community consultation processes• Review and implementation of internal process inrelation of GRAP/GAMAP• Review and update of asset and accounting policiesand procedures• Acquisition of an asset management software• Training and development of finance and other staffeg. Customer care training – this will help obtain therequired skills to ensure cost effective and efficientservice to the community of KwaDukuza.• Financial Management Internship Programme• Revenue Protection Unit to ensure the municipality’srevenues are collected to its maximum ability.8.13.1 Borrowing CostsMaximum average borrowings ratio is 12.66 %inclusive of projects for the next three years. Thefunding is earmarked for 5 directorates with afunding of approximately R58m in respect of theupgrade of roads in all 27 roads to implement theRoads master plan in the civil department. Theamount of R145, 6m is for Technical Services’ andit will be used for electricity infrastructure upgradein terms of the electricity master plan and R3mearmarked for council fleet in Municipal services.Included is amount of R46mto be acquired for theconstruction of the P445 which is already underconstruction. For the next three years the total forexternal loans will be R 614 million and accordingto the IDP and the MTREF the internal funding willbe approximately R230, 1m on capital allocation.8.13.3 BudgetsNational Treasury published draft budgetregulations in accordance with the relevantprovisions of the MFMA and this resulted inthe organogram changes of finance directoratein order to effectively deal with these budgetregulations, which KwaDukuza Municipalitystarted complying with during the 2009/10financial year. KwaDukuza Municipality compliedwith the National Treasury Budget and Regulationformat on its 2010/11 Budget.8.13.4 Financial StatementsWith effect from 2008/09 financial year,KwaDukuza Municipality as a High CapacityMunicipality has to fully comply with the standardsof GRAP. In order to show effective compliance withthese and other standards will also necessitate anamendment to the finance organogram. Financedepartment is planning to appoint a Director:Budget and Financial Statements to allow fullcompliance to GRAP standards.Chapter 8101

8.14. Financial Management Policies 8.14.4 Tariff Policy8.14.1 Budget PolicyThe annual budget is the central financial planningdocument that entails all revenue and expendituredecisions. It establishes the level of services to be providedby each department. The accounting officer confirms themunicipal’s priorities in the formulation of the draft and thefinal budget document proposal. A budget, as per S71 ofthe MFMA, is subject to monthly control and be reportedto Council with recommendations of action to be taken toachieve the budget’s goals. The budget is also subject toa mid-term review which might result in a revised budget,thereby resulting in the adjustments budget, which is interms of S28 of the MFMA. Unfinished capital projectbudgets shall not be carried forward to future fiscal yearsunless the project expenditure is committed or fundedfrom grant funding, which will require the rolling over ofthose funds together with the project.8.14.2 Credit Control and Debt CollectionPolicyThis policy together with the relevant work proceduremanuals provides direction in areas of credit control,collection of amounts billed to customers, proceduresfor recovery of arrear accounts. KwaDukuza Municipalityapproved the credit control in February 2008 and amendedCredit Control Policy has to be tabled to council annually.The principles supported in this policy are:• An administrative integrity of the municipality mustbe maintained at all costs. The democratically electedcouncilors are responsible for policy making, whileit is the responsibility of the Municipal Manager toensure the execution of these policies.• Consumers are required to fill in an application form,requesting the municipality to connect them to servicesupply lines.8.14.3 Indigent PolicyThe criterion for benefits under this scheme is part of thecredit control policy. An indigent is kept up to date in aform of a monthly register and a separate indigent policyhas been developed in line with this. The survey formsto qualify for the indigent support must be completedannually. The Municipality may annually as part of itsbudgetary process, determine the municipal servicesand levels thereof which will be subsidized in respect ofindigent customers in accordance with the national policybut subject to principles of sustainability and affordability.An indigent customer shall automatically be deregisteredif an audit or verification concludes that the financialcircumstances of the indigent customer have changed tothe extent that he/she no longer meets the qualifications.The indigent customer may at any time request deregistration.The purpose of this policy is to ensure that a uniform tariffis applied to the municipal area of jurisdiction.8.14.5 Rates PolicyThis has been implemented with the Municipal PropertyRates Act with effect from 1 July 2007. Policy has to bereviewed annually when the draft budget is submitted.8.14.6 Long Term Financial Planning PolicyPurposeTo determine the long term financing on needs ofKwaDukuza Municipality and identify how the IntegratedDevelopment Plan will be financed so that there will besound and sustainable development.ObjectiveDetermination of sources of funding for capital andoperating budget in the long term which may be asfollowing:Financial ResourcesSources of Funding for Capital Expenditure are:a) National Governmentb) Provincial Governmentc) External Loansd) Own Fundinge) Public Private PartnershipsSources of Funding for OperationalExpenditure are:a) Government Grantsb) Rates and Service Chargesc) Investment Incomed) Fines and Penaltiese) Licensing & TestingThis is a new policy introduced by National Treasury forthe 2011/12 financial year. KwaDukuza Municipality hascomplied with such requirement with respect that this willbe improved in the future.Funding and Reserves PolicyObjectiveThis policy intends to set out the assumptions andmethodology for estimating the following:(a)(b)(c)(d)(e)(f)Projected billings; collections & all directrevenuesThe provision for revenue that will not becollectedThe dividends the Municipality can expect toreceive from Municipal EntitiesThe proceeds the Municipality can expect toreceive from the transfer / disposal of assetsThe Municipality’s borrowing requirementsThe funds to be set aside in reserves102KwaDukuza Municipality Integrated Development Plan - 2011/16

8.14.7 Guiding PrinciplesKwaDukuza Municipality’s Funding & Reserves Policy is basedon the following principles:(a) Affordability(b) Financial Sustainability(c) Equity(d) Efficacy8.14.8 Free Basic ServicesIndigent households receive 75 KWH of electricity free eachmonth. Refuse for these low income areas are raised andcredited from equitable share. Rates on properties below acertain value receive a 100% rebate.8.14.9 Payment PointsPayment can be made electronically by debit orders, internetand stop orders. Payments can be made at any point wherethere is an easy pay sign, using the deposit slip on thestatement to pay at any First National Bank and the postoffice. KwaDukuza and Ballito municipal offices are also usedas pay points as well.Chapter 8103

8.15 Investment PoliciesEvery municipal council and its body is in terms ofSection 13(2) of the Municipal Finance Management Act(MFMA) no 56 of 2003 is required to draft the Municipal’sinvestment regulations.The primary objective of the investment policy is to gainthe highest possible return, without unnecessary risk,during periods when excess funds are not being used.For this to be achieved, it is essential to have an effectivecash flow management program. Before any monies canbe invested, the Chief Financial Officer or his/her delegatemust determine whether there will be surplus fundsavailable during the term of the investment. The term ofthe investment should be fixed and in order to do this it isessential for the cash flow estimates to be drawn up.Investment shall be made with care, skill, prudence anddiligence. Investment officials are required to adhere towritten procedures and policy guidelines, exercise duediligence and exercise strict compliance with all legislation.KwaDukuza Municipality will not invest more than 30% ofavailable funds with a single institution.The Minister of finance may identify by regulation in termsof Section 168 of the MFMA instruments or investmentsother than those referred to below in which the Municipalitymay invest:• Deposit with banks registered in terms of the BanksAct, 1990 (Act No.94 of 1990);• Securities issued by the National Government;• Investments with the Public Investment Commissionersas contemplated by the Public Deposits Act, 1984(Act No. 46 of 1984);• A Municipality’s own stock or similar type of debt;• Internal funds of a Municipality which have beenestablished in terms of a law to pool money availableto the Municipality and to employ such money for thegranting of loans or advances to departments withina Municipality, to finance capital expenditure.• Bankers, acceptance certificates or negotiablecertificates of deposits of banks;• Long term securities offered by insurance companiesin order to meet the redemption fund requirements ofMunicipalities; and• Any other instrument or investments in which aMunicipality was under a law permitted to investbefore the commencement of the Local GovernmentTransition Act, 1996: Provided that such instrumentsshall not extend beyond the date of maturity orredemption thereof.8.16 Borrowing Framework Policy &GuidelinesThe objective of the policy is to maintain interest rate andcredit risk exposure to maintain debt within specified limitsand ensure adequate for the repayment of debt and toensure compliance with all Legislation and council policygoverning borrowings of funds. The primary goal in theborrowing of funds is obtained at the lowest possibleinterest rates at minimum risk, within the parameters ofauthorized borrowings.The scope of the policy includes:a) Risk – The need to manage interest rate risk,credit control credit risk exposure and tomaintain debt within specified limits.b) Cost of Borrowings - should be structured toobtain the lowest possible interest rate, on themost advantageous terms and conditions.c) Prudence - Borrowings shall be made with care,skill, prudence and diligence.d) Ownership - All loans must be in the name ofKwaDukuza Municipality.The relevant Legislation and regulations in terms of whichborrowing decisions are governed is Local GovernmentMunicipal Finance Management Act, No 56 of 2003.Type of loans included in the policy is “vanilla” loans,structured finance loans and bonds. KwaDukuza has notissued any bonds. KwaDukuza Municipality’s externalborrowings have been mainly sourced from the followingInstitutions:• South African Registered Banks• Development Bank of Southern Africa Limited• Infrastructure Finance Corporation LimitedKwaDukuza Municipality may incur long term debt onlyfor the purpose of Capital expenditure on infrastructure,property, plant or equipment to be used for the purposeof achieving the objects of Local Government as set outin Section 152 of the Constitution. The Municipal FinanceManagement Act provides that the Municipality mayprovide security for any of its debt obligations, including thegiving of a lien, pledging, mortgaging or ceding an asset,or giving any other form of collateral. The Municipalityhas a bank overdraft facility. However, due to its soundfinancial position, this facility is not utilized.Section 46 of the Municipal Finance Management Actstipulates that the Municipality may incur long-term debtonly if a resolution of the Council, signed by the Mayor,has approved the debt agreement and the AccountingOfficer has signed the agreement or other document whichacknowledges the debt.104KwaDukuza Municipality Integrated Development Plan - 2011/16

8.17 Policy on InfrastructureInvestments and Capital ProjectsThis Policy is hereby adopted to guide KwaDukuzaMunicipality’s’ Infrastructure investments and CapitalProjects. The environment is dynamic and the policy willhave to be reviewed and refined as and when required togive effect to changing circumstances. Sources of fundingare generally scarce and needs are unlimited which willalways result in prioritization of projects.8.18 Asset Management PolicyThe objective of the asset management policy is to prescribethe accounting and administrative policies and proceduresrelating to property, plant and equipment (PPE), which arefixed assets of KwaDukuza Municipality.A summary of principles supported in this policy are:• A fixed asset is defined in GAMAP 17 as a tangibleitem of property, plant or equipment held by themunicipality for use in the production or supply ofgoods or services and which is expected to be usedduring more than one reporting period (financialyear). Thus a fixed asset is an asset either movableor immovable owned by or under the control ofthe municipality or from which the municipalityreasonably expects to derive economic benefits, orreasonably expects to use in service delivery, over aperiod extending beyond one financial year.to all departments, in regard to the control of orsafekeeping of the municipality’s fixed assets.• All fixed assets shall be carried in the fixed assetregister, and appropriately recorded in the annualfinancial statements at their original cost or fair valueless any accumulated depreciation.• Heritage assets are not depreciated as they areregarded as having an infinite life.• Every head of department shall at least once duringevery financial year, and in compliance with therelevant written directives issued by the chief financialofficer, undertake a comprehensive verification of allfixed assets controlled or used by the departmentconcerned.• Assets are eliminated from the Statement of FinancialPosition on disposal or retirement. The differencebetween the net book value of assets (cost lessaccumulated depreciation) and the sales proceedsis reflected as a gain or loss in the statement of thefinancial performance.With the verification process in running, this policy iscurrently under review and will be updated as soon as itis finalized.• The fixed asset register shall be maintained in theformat determined by the chief financial officer,which format shall comply with the requirements ofgenerally recognized accounting practice (GRAP) andgenerally accepted municipal accounting practice(GAMAP) and any other accounting requirementswhich may be prescribed.• Fixed assets are classified under the followingheadings:Land (not held as investment assets)Infrastructure assets (assets which are part of anetwork of similar assets)Heritage assets (culturally significant resources)Community assets (resources contributing to the wellbeing of the community)Investment assets (resources held for operational orcapital gain)Other assets (ordinary operational resources)• Every head of department shall be directly responsiblefor the safekeeping of any fixed assets controlledby the department in question. In exercising thisresponsibility, every head of department shall adhereto any written directives issued by the chief financialofficer to the department in question, or generallyChapter 8105

8.19 Accounting PoliciesThe following are the main accounting principles adoptedin the preparation of the financial statements:• Basis of presentation:The annual financial statements are prepared on anaccrual basis of accounting and are in accordancewith historical cost convention. The annual financialstatements are prepared in accordance withGenerally Accepted Municipal Accounting Principles(GAMAP) and Generally Recognized AccountingPractice (GRAP).• Presentation Currency:The annual financial statements are presented inSouth African Rand.• Going Concern Assumption:The annual financial statements are prepared on thegoing concern basis.• Property, plant and equipment (PPE):PPE is stated at cost less accumulated depreciationalso taking into account accumulated disposals,transfers of investment properties and infrastructureassets and work still under construction.• Investments:The accounting policies for investment include thefinancial instruments.• Inventories:Periodically, physical stock counts are carried out andany obsolete and redundant items are identified andwritten off under Council authority.• Accounts receivables:They are carried at net realizable value.• Trade creditors:They are stated at their nominal value.• Conditional grants and receipts:They are recognized as revenue and the municipalitymust comply with the terms of the agreement.• Cash and cash equivalents:Includes cash and cash on hand with the registeredbanking institutions• Unauthorized expenditure:An expenditure that has not been budgeted for• Irregular expenditure:An expenditure that is in contravention with therequirements of the Municipal Finance ManagementAct no 56 of 2003, Municipal Systems Act, PublicBearers Act no 20 of 1998 and the supply chainmanagement policy.• Fruitless and wasteful expenditure:An expenditure that was made in vain and wouldhave been avoided had reasonable care had beenexercised.• Comparative information:Annual financial statements are preparedcomparatively taking into account the current yearand the prior year.• Value added tax:VAT is payable on the receipt basis. Only once thepayment is received from the debtors is VAT paid toSouth African Revenue Services (SARS).• Unspent conditional grants:They are reflected on the Statement of FinancialPerformance as a creditor.• Intangible assets:They are recorded at a cost price and amortized overtheir expected useful life.• Revenue recognition:The municipality’s revenue is recognized from thefollowing:• Property rates• Property rates – penalties imposed andcollection charges• Service charges• Rental of facilities and equipment• Interest earned on investments• Interest earned on outstanding debtors• Fines• Licenses and permits• Government grants and subsidies106KwaDukuza Municipality Integrated Development Plan - 2011/16

8.20 Supply Chain Management PolicySection 111 of the Local Government Municipal FinanceManagement Act (MFMA) requires municipalities todevelop and implement the supply chain managementpolicy. The principle objective of the legislation has beento comply with Section 217 of the Constitution, whichamong other things states that when contracting forgoods and services the system must be fair, equitable,transparent, competitive and cost effective. Supply ChainManagement (SCM) generally refers to the managementof activities along the supply chain including the supplier,manufacturer, wholesaler, retailer and consumer. TheMFMA and its relevant regulations also identify processeswhich must be included in a SCM policy. The supply chainmanagement system is applicable for the:• Procurement by KwaDukuza Municipality of all goodsand services works.• Selection of external mechanisms for theprovision of municipal services in circumstancescontemplated in section 83 of the LocalGovernment: Municipal Systems Act.• Disposal of assets or goods no longer required.• Letting or sale of Municipal property.• KwaDukuza Municipality updated and approved itsSupply Chain Management Policy in March 2011.• The Supply Chain Management Policy is reviewedannually to meet the updated regulationsfrom national Treasury and other Governmentlegislations.• Selection of contractors to provide assistance in theprovision of municipal services.Chapter 8107

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Chapter 9KwaDukuza Performance Management System9.1. Accounting PoliciesThe Constitution of the Republic of South Africa, Chapter 7of Act 108 (1996), deals exclusively with the local sphere ofgovernment and lists the objects and developmental dutiesof municipalities. The Municipal Structures Act Section19(1) states: “A municipal council must strive within itscapability to achieve the objectives set out in Section 152of the Constitution” and Section 19(2) of the same Actstipulates: “A municipal council must annually review itsoverall performance in achieving the objectives referredto in subsection (1)”. The way that local government canmanage and ensure that its developmental objectives havebeen met, is thus through the performance managementsystem. Government, within this governance framework,gives us the tools to execute the above objects anddevelopmental duties.The White Paper on Local Government, March 1998,refers: “Integrated development planning, budgeting andperformance management are powerful tools which canassist municipalities to develop an integrated perspectiveon the development in their area. It will enable them tofocus on priorities within an increasingly complex anddiverse set of demands. It will enable them to directresource allocation and institutional systems to a new setof development objectives.”It is thus an integrated system that is best described inChapter 6 of the MSA, which specifically emphasizesthat the municipality must implement a performancemanagement system that is in line with the priorities,objectives, indicators and targets contained in theIDP. The saying “what you measure you become”is appropriate because it is only in the course ofperformance management that a municipality willknow whether it achieves its priorities through anintegrated planning and implementation process.Thus, Chapter 6 of the MSA requires local governmentto:• Set targets, monitor and review performancebased on indicators linked to the IntegratedDevelopment Plan (IDP).• Publish an annual report on performancemanagement for the councilors, staff, the publicand other spheres of government.• Incorporate and report on a set of generalindicators prescribed nationally by the Ministerresponsible for local government.• Conduct an internal audit on performancebefore tabling the report.• Have the annual performance report audited bythe Auditor-General.• Involve the community in setting indicators andtargets and reviewing municipal performance.Furthermore, the MFMA obligates a Service Delivery andBudget Implementation Plan (SDBIP) to be based onspecific targets and performance indicators derived fromthe IDP, thus linking the IDP, the performance managementsystem and the budget. Section 67 of the MSA regardsthe monitoring, measuring and evaluating of performanceof staff as a platform to develop human resources and todevelop an efficient and effective culture.In other words, good corporate citizenship is all abouthow the municipalities set their priorities throughthe performance management system as per the IDP,conduct their business as per the SDBIP and relate to thecommunity they serve through community input and publicparticipation. The purpose of the IDP is to ensure that theresources available to the municipality are directed at thedelivery of projects and programmes that meet agreedmunicipal development priorities.• Develop a performance management system.110KwaDukuza Municipality Integrated Development Plan - 2011/16

Once a municipality starts to implementits IDP it is important to monitor that:• The delivery is happening in the planned manner• The municipality is using its resources most efficiently• It is producing the quality of delivery envisagedTo comprehend the relationship between IDP review andperformance management, the following quotation fromthe Performance Management Guide for Municipalities,DPLG, 2001 (draft 2, page 16) becomes relevant: “TheIDP process and the performance management processshould appear to be seamlessly integrated. Integrateddevelopment planning fulfils the planning stage ofperformance management. Performance managementfulfils the implementation management, monitoring andevaluation of the IDP process”.Although the IDP is a five-year plan, it has to be renewedannually as prescribed in Section 34 of the MSA. The IDPhas to be handled at the highest level, hence the allocationof the responsibility to the mayor to manage the IDPprocess and to assign responsibilities to the municipalmanager. As head of the administration, the municipalmanager in turn is responsible and accountable for theformation of an efficient and accountable administrationto give effect to the IDP.The SDBIP is a key management, implementation andmonitoring tool, which provides operational content tothe end-of-year service delivery targets, set in the budgetand IDP. It determines the performance agreements forthe municipal manager and Section 57 managers, whoseperformance can then be monitored through Section 71monthly reports, and evaluated through the annual reportprocess.Municipal Performance Regulations for MunicipalManagers and Managers directly accountable to theMunicipal Manager, published in 2006 seek to set out howthe performance of municipal managers will be uniformlydirected, monitored and improved. The regulations addressboth the employment contract of a municipal managerand the managers directly accountable to the municipalmanager (Section 57 managers). A good performancemanagement model will therefore align the processes ofperformance management to the IDP processes of theorganization. It will ensure that the IDP is translated intoscorecards and performance plans that will be monitoredand reviewed.The categories of key performance areas provided by amodel should relate directly to the identified priority areasof the IDP. This process is illustrated by Diagram 30. As isindicated, the KwaDukuza Municipality’s is following acomprehensive and integrated approach that is initiatedby the approval of the IDP and Budget process plan,followed by an intense analysis and priority setting phase.The departments respond to the priorities and strategiesthrough the development of business plans and detailproject plans as facilitated by the PMS unit. After theinterrogation of both business and project plans, a draftIDP and budget is put through a transparent consultativeprocess before submission to and approval by Council. Theapproval of the IDP and budget initiates the developmentand submission of a SDBIP that culminates into amonitoring and reporting process on a monthly, quarterlyand annual basis.Chapter 9111

9.2. OVERVIEW OF POLICIES GUIDINGPERFORMANCE MANAGEMENT INTHE KWADUKUZA MUNICIPALITY9.2.1. Policy FrameworkOn 27 May 2009 the Council adopted a PerformanceManagement Framework regulating the performancemanagement system in the municipality. The frameworkprovides guidelines on the development and implementationof the organizational performance management system.An employee performance management policy wassubsequently submitted to Council and is to be resubmittedto the Executive Committee and Council for approval anda reviewed performance management framework andprocedure manual are still in development stage.a) Planning for Performance ManagementIn planning for performance management and in theprocess of reviewing its policy, KwaDukuza Municipalityhas aimed to ensure that the system complies with all therequirements set out in legislation with specific referenceto the 2001 Regulations. Amongst others the KwaDukuzaMunicipality aims to:• Show how it is going to operate and manage thesystem from the monitoring up to the stages ofperformance reporting evaluation and review;• Indicate how the various stakeholders and roleplayersincluding the community will be included inthe implementation and functioning of the system;• Clarify how it will implement the system withinthe framework of the IDP process, including anyprocedures to be followed;• Address the matter of how often reporting will takeplace and to whom; and• Link the organizational performance managementsystem to the employee performance managementsystem.KwaDukuza Municipality is in the process of ensuringbetter alignment between the IDP and the performancemanagement processes and systems. Through theIDP, KwaDukuza Municipality plans for performancemanagement, and through performance managementKwaDukuza Municipality manages monitors and evaluatesthe achievement of the IDP.b) Priority SettingThrough consultation with the community and other keystakeholders, the IDP process helps to define:• What the delivery priorities and objectives are. Theobjectives clearly identify the developmental prioritiesof the KDM. The institution expanded on the roll-outplan in the SDBIP to ensure that it is tangible andmeasurable;• What transformational initiatives will be undertakenby the institution;• Which strategic projects will be implemented toachieve the delivery priorities and objectives;• What financial resources will be used to realize thepriorities?• How KwaDukuza Municipality will measure theachievement of the objectives through clear indicators.The National Key Performance Indicators are prescribed inSection 43 of the MSA and must therefore be included inKwaDukuza Municipality’s IDP.They include:• The percentage of households with access to basiclevel of water, sanitation, electricity and solid wasteremoval• The percentage of households earning less than R1100 per month with access to free basic services• The percentage of the municipality’s capital budgetactually spent on capital projects identified for aparticular financial year in terms of its IDP.• The number of jobs created through the municipality’slocal economic development initiatives includingcapital projects.• The number of people from employment equitytarget groups employed in the three highest levelsof management in compliance with KwaDukuzaMunicipality’s approved employment equity plan.• The percentage of the municipality’s budget actuallyspent on implementing its workplace skills plan.• Financial viability which looks at debt coverage,outstanding debtors to service revenue, and costcoverageThe KwaDukuza Municipality reviews its other keyperformance indicators annually as part of the performancereview process. This is initiated through the review of theIDP, SDBIP and budget annually, and filters through to theindividual performance plans.c) Setting TargetsThe KwaDukuza Municipality continuously aims to ensurethat its targets comply with the Performance ManagementRegulations (Chapter 3, Regulation 12, 2001).Therefore the targets set in the IDP have to:• Be practical and realistic;• Measure how effective and efficient the KwaDukuzaMunicipality is, as well as what the impact it ismaking; 130• Clearly indicate who (which department) will delivera target;• Have corresponding resources;• Include the budget;• Relate to the priorities and objectives for development112KwaDukuza Municipality Integrated Development Plan - 2011/16

f) Conducting Performance ReviewsA municipality must review it performance managementsystem annually in order to:• Identify the strengths, weaknesses, opportunitiesand threats of the municipality in meeting the keyperformance indicators and performance targetsset by it, as well as the general key performanceindicators prescribed by the Municipal Systems Act 32OF 2000, Section 43.7 General KPIs): Review the key performance indicatorsset by the municipality in terms of Local GovernmentManagement Regulations 2001 input, output,outcome indicators);Through the review process it is established whetherobjectives, key performance indicators, targets and projectshave been achieved or where changes should be madewhere the municipality did not achieve on its objectives,key performance indicators, targets and projects andthereby ensures that it delivers on its service deliveryand complies with legislation. The review process startswith the review of the IDP where strategies, objectives,outcomes, outputs, targets and performance indicators arereviewed. Flowing from the review of the IDP, the SDBIPand Individual Performance Plans are reviewed to ensurethat the IDP is implemented on operational level and ismonitored, assessed, reported, evaluated and reviewed onquarterly basis. Performance review is a process wherebythe organization, after measuring its own performance,assesses whether it is doing the right thing by:• Analyzing the information to see whether targetshave been met and whether the future targets willbe realized.• Benchmarking to compare the performance of theMunicipality with other similar Municipalities• Surveys to obtain feedback from the community abouttheir views of the performance of the municipalityThe review takes place simultaneously with the IDPreview and adjustment budget phases. The KwaDukuzaMunicipality has to date applied all methods in assessingits performance, and is continuously seeking ways toimprove assessment of its performance.g) Reporting on PerformanceReporting requires that the municipality takes the prioritiesof the organization, its performance objectives, indicators,targets, measurements and analysis, and presents thisinformation in a simple and accessible format, relevantand useful to the specific target group, for review. TheService Delivery and Budget Implementation Plan (SDBIP)is the basis for the Municipality’s reporting. Generally fourreports are submitted per annum to Council.114KwaDukuza Municipality Integrated Development Plan - 2011/16

Report TypeQuarterly IDP andSDBIP reportingMid-year budget andDPLG reportPerformance reportDescriptionThe SDBIP is a key management, implementation and monitoring tool, whichprovides operational content to the end-of-year service delivery targets, set inthe budget and IDP. It determines the performance agreements for the municipalmanager and all top managers, whose performance can then be monitoredthrough Section 71 monthly reports, and evaluated through the annual reportprocess.The SDBIP information on revenue will be monitored and reported monthly by themunicipal manager in terms of Section 71(1)(a) and (e). For example, if there islower than anticipated revenue and an overall cash shortage in a particular monththe municipality may have to revise its spending downwards to ensure that it doesnot borrow more than anticipated. More importantly, such information requiresthe municipality to take urgent remedial steps to ensure it improves on its revenuecollection capacity if the municipality wants to maintain its levels of service deliveryand expenditure.Section 1 of the MFMA, Act 56 of 2003 states that the SDBIP as a detailed planapproved by the mayor of a municipality in terms of service delivery should makeprojections for each month of the revenue to be collected, by source, as well asthe operational and capital expenditure, by vote. The service delivery targets andperformance indicators need to be reported on quarterly (MFMA, 2003).Section 72 of the MFMA requires the accounting officer to prepare and submit areport on the performance of the municipality during the first half of the financialyear. The report must be submitted to the mayor, National Treasury as well as therelevant Provincial Treasury. As with all other reports this is a crucial report for theCouncil to consider mid-year performance and what adjustments should be made,if necessary.Section 46 of the Municipal Systems Act states that a municipality must preparefor each financial year, a performance report that reflects the following:Annual report• The performance of the municipality and of each external service provided• during that financial year;• A comparison of the performances referred to in the above paragraph with• targets set for and performances in the previous financial year; and• Measures to be taken to improve on the performanceThe performance report must be submitted at the end of the financial year andwill be made public as part of the annual report in terms of chapter 12 of theMFMA. The publication thereof will also afford the public the opportunity to judgethe performance of the municipality against the targets set in the various planninginstruments.Every municipality and every municipal entity under the municipality’s control isrequired by Section 121 to prepare an annual report for each financial year, whichmust include:• the annual financial statements of the municipality or municipal entity as• submitted to the Auditor-General for audit (and, if applicable, consolidated• annual financial statements);• the Auditor-General’s audit report on the financial statements;• an assessment by the accounting officer of any arrears on municipal taxes• and service charges;• particulars of any corrective action taken or to be taken in response to issuesraised in the audit reports;• any explanations that may be necessary to clarify issues in connection withthe financial statements;• any information as determined by the municipality, or, in the case of a• municipal entity, the entity or its parent municipality;• any recommendations of the municipality’s audit committee, or, in the caseof a municipal entity, the audit committee of the entity or of its parentmunicipalityChapter 9115

• an assessment by the accounting officer of the municipality’s performance• against the measurable performance objectives for revenue collection andfor each vote in the municipality’s approved budget for the relevant financialyear;• an assessment by the accounting officer of the municipality’s performanceagainst any measurable performance objectives set in terms the servicedelivery agreement or other agreement between the entity and its parentmunicipality;• the annual performance report prepared by a municipality; and• any other information as may be prescribed.Oversight reportSection 127 prescribes the submission and tabling of annual reports. In terms ofthis section:1) The accounting officer of a municipal entity must, within six months afterthe end of a financial year, submit the entity’s annual report for that financialyear to the municipal manager of its parent municipality.2) The mayor of a municipality must, within seven months after the endof a financial year, table in the municipal council the annual report of themunicipality and of any municipal entity under the municipality’s sole orshared control.3) If the mayor, for whatever reason, is unable to table in the council the annualreport of the municipality, or the annual report of any municipal entityunder the municipality’s sole or shared control, within seven months afterthe end of the financial year to which the report relates, the mayor must:(a) submit to the council a written explanation setting out the reasons forthe delay, together with any components of the annual report that are ready;and(b) submit to the council the outstanding annual report or the outstandingcomponents of the annual report as soon as may be possible.The council of a municipality must consider the municipality’s annual report (andthat of any municipal entity under the municipality’s control), and in terms of Section129, within two months from the date of tabling of the annual report, mustadopt an oversight report containing the council’s comments, which must includea statement whether the council:(a) has approved the annual report with or without reservations;(b) has rejected the annual report; or(c) has referred the annual report back for revision of those componentsthat can be revised.In terms of Section 132, the following documents must be submitted by theaccounting officer to the provincial legislature within seven days after themunicipal council has adopted the relevant oversight report:(a) the annual report (or any components thereof) of each municipality andeach municipal entity in the province; and(b) all oversight reports adopted on those annual reports. It is importantto note that the oversight committee working with these reports should bechaired by the opposition party.116KwaDukuza Municipality Integrated Development Plan - 2011/16

i) Individual PerformanceThe best type of performance management system adoptsa cascading or “rolling-down” of performance objectivesfrom top to bottom. The Department of Provincial andLocal Government (DPLG) Performance ManagementGuidelines for Municipalities (2001)(par.5.9) states: “Theperformance of an organization is integrally linked to thatof staff. If employees do not perform an organization willfail. It is therefore important to manage both at the sametime. The relationship between organizational performanceand employee performance starts from the review of theIDP that also correlates with the review of individuals onhow well they have performed during the course of thedifferent performance management phases.”The Local Government: Municipal PerformanceRegulations for Municipal Managers and ManagersDirectly Accountable to Municipal Managers (2006) setsout the parameters on how the performance of MunicipalManagers and their managers directly accountable tothem (Section 57 Employees) will be directed, monitoredand improved. Firstly, an employment contract has to beconcluded between the Council and the S57 Managerson appointment and secondly, a separate PerformanceAgreement and Plan also has to be concluded annually.9.2.2. PHASE 1 – Performance PlanningThis is about jointly identifying individual performanceexpectations and gaining the employee’s commitmentin achieving these expectations. This also entails theidentification of KPA’s and indicators, the establishmentof year-end targets and the planning for the phasing inof the year-end target into quarterly targets (cumulativelyand quarterly).a) Setting of appropriate key performanceindicators (KPI’s)During the performance management process keyperformance indicators (KPI’s) must be identified for eachof the Municipality Key Performance Areas (KPA’s). They arestatements of measurement in terms of e.g. a percentage, anumber, an index or any other recognizable unit. Indicatorsare used to indicate whether progress is being made inachieving the CKPA’s. Indicators should be measurable,simple, precise, relevant, adequate and objective. Thechoice of an indicator must be guided by the availabilityof data for its measurement and the capability to collectit. These indicators must be translated to the PerformancePlan’s of top management. The performance agreementprovides for the method upon which the performance ofthe employee must be assessed. The Performance Planconsists of two components and the employee must beassessed against both components. These componentsare the Key Performance Areas (KPA’s) and the CoreCompetency Requirements (CCR’s). KPA’s covering themain areas of work will account for 80% and CCR’s willaccount for 20% of the final assessment. The nationalKPA’s which need to be measured and to which the KDMObjectives and KPA’s subsequently need to be aligned. It ishowever important to note that 80% of the performancecovered in the Section 57 contract (performance plan)must relate to the IDP of the municipalityb) Setting of measurable performance targetsPerformance targets are the planned level of performanceor the milestones an organization sets for itself for eachidentified indicator – it is the desired level of servicedelivery for the current financial year or specified period.Baseline measurements, which are the measurementof the chosen indicator at the start of the period, mustbe set. Baseline information defines the status quo. It isimportant to know how the organization is performing atthe current moment in order to determine, after a period oftime, if any positive progress was made. This step also testswhether the chosen indicator is in fact measurable andwhether there are any problems. The targets need to berealistic, measurable and be commensurate with availableresources and capability.The setting of targets entails a two-way communication:• The councilors need to give clear direction asto the importance of the target and how itwill address the public need. Targets shouldbe informed by the development needs ofcommunities and the development prioritiesof the municipality.• Line managers need to advise as to what arealistic and achievable commitment for atarget is, given the available resources andcapability. Managers will need to advise onseasonal changes and other externalities thatshould be considered in the process of targetsetting. There must be clear timelines relatedto the set targets.Planning for performance is directly related to resources;therefore performance targets can only be set once theavailable resources, especially the approved budgets,have been identified. Planning for best performance istherefore directly related to the budget, IDP and SDBIP.However, constraints, risks and standards must also betaken into consideration and must be well documentedin advance. The targets identified in the IDP and SDBIPmust be translated to the Performance Plans of TopManagement The documented information must be takeninto consideration during the reviewing phase of theperformance management cycle.Chapter 9117

9.2.3. PHASE 2 – Performance CoachingThis is the phase of continuously tracking and improvingperformance, through feedback and reinforcementof key results and competencies. This is done with aview to timeously detect performance relapses and tosimultaneously introduce speedy remedial actions. Aprescribed record sheet is used to record evidence andremedies. During this phase, on a quarterly basis, theactual performance must be determined and be judgedagainst the quarterly obligation as well as the cumulativeperformance as well as other standards that have beenset in advance. During this phase it is also important todocument any evidence proving performance. Althoughactual measurements are done each quarter, formalcoaching only has to be done half yearly provided thedocumented performance in the first and third quarter issatisfactory.9.2.4. PHASE 3 - ReviewingThis phase involves jointly reviewing actual performanceagainst expectations at the end of the performance cycleto review and document planned vs. actual performance.The following guidelines are applicable forconducting a performance review:• The Executive Director to prepare ratings of hisperformance against key performance indicators.The rating is done by considering actual cumulativeorganizational achievement as well, the portfolio ofevidence which was documented during the coachingcycle, as well as any other relevant input. For anexposition of the five points scale and set criteria seethe glossary of terms.• Manager/supervisor to ask employee to prepare forformal appraisal by rating him/herself against theagreed key performance indicator• Manager/supervisor and employee to meet toconduct a formal performance rating with a viewto conclude a final rating. The employee mayrequest time to consider the rating. A secondmeeting may then be necessary. In the event of adisagreement, the manager/supervisor has the finalsay with regard to the final rating that is given.• The manager/supervisor should make his/her own notesduring the formal review meeting. All the criteria thathave been specified must be taken into considerationOnly those KPI’s relevant for the review period inquestion should be rated according to a five pointscale.• Only after the year-end review, do the manager /supervisor and employee prepare and agree on anindividual learning plan.• The setting of new key performance areas which willlink up to the KwaDukuza Municipality KPA’s and theidentification of the concomitant indicators for thenext financial year need to be concluded by the endof June of the current year. However the identificationof KPA’s forthcoming from the learning plans and thesetting of targets, weights and dates can only be doneafter the year-end review has been concluded.The total score is determined once all the output and inputKPI’s have been rated and scored. This is done with a viewto establish if an employee is entitled to a notch increase oran accelerated salary progression or a non-financial award.Should an employee not be achieving the KPA’s in his/herperformance agreement the manager/supervisor shouldassist the employee by managing his/her performancemore closely. It is not appropriate that the first time anemployee hears about his/her non-performance is at theformal performance review. Employees must be coachedand given feedback throughout the year.9.2.5. PHASE 4 - REWARDINGA performance bonus ranging from 5%-14% of the allinclusiveremuneration package can be paid as follows:• A score of 130%-149% is awarded a bonus of 5%-9%; and• A score of 150% and above is awarded a bon us of10%-14%.• Rewarding of performance for Section 57 employeesis to be done after the tabling of the annual report.• After the ratings have been agreed upon the scoresare calculated.118KwaDukuza Municipality Integrated Development Plan - 2011/16

9.3. CHALLENGES9.3.1 Policy FrameworkThe following is still being improved in planning processes:a. To determine and review the strategic initiativesand targets during the IDP processb. The integration of developmental targets withcore business and departmental budgetc. Understanding and managing the setting ofpriorities for the various financial years in theMTEF and their KPI’s in the context of the 5 yearterm of the IDP, i.e. managing the context ofinputs and the underlying assumptions of theinputs will achieve through processes on theoutput level.d. Aligning input and output departmentalindicators to outcome indicators in the IDPe. Integrated alignment between IDP, SDBIP,LSDBIP, budget and individual performancemanagement systemf. To verify and validate numerous departmentalindicators and to classify in terms of differenttype and categoryg. To start to develop business intelligence outof the datah. Ownership of congregated Key PerformanceIndicatorsThere is a need to report achievement against a “fixed”target as opposed to the Municipality’s administrativereality of moving targets – this is best explained againstan indicator such as % of households with access to basicor higher levels of service (NKPI). The households in aMunicipality are not static and are continually increasing– therefore within a restricted resource allocation towardsservice delivery, it might look as if eradication of servicedelivery backlogs is slow – however the backlog mightbe growing as a result of unplanned for growth due tomigration etc. When the number of households is annuallyincreased as per growth figures, it creates tension on thereporting side. Targets are set in line with the establishedneed in departmental business plans, which are to beincluded in the IDP. When the budget is finalized, however,the resource requests are not granted due to budgetaryconstraints – the impact of this is that sometimes thetargets are not changed in the IDP. The KwaDukuzaMunicipality’s performance management policy underreview makes provision for the review of organizationaland individual performance.The municipality has a number of challenges in developinga monitoring framework:• The current system does not allow for the non-financialplanning of initiatives – i.e. for developmentalinitiatives e.g. improving community skills, or focusingon target groups such as the youth or women• There are a number of Municipalitylevel databases that require developing.• The monitoring has to include ability to report onnot only the Municipality’s priorities but also onNational KPI’s or provincial indicators. This becomeschallenging when the Municipality has a priority tosupport people receiving an income of R1700 orless as indigents whereas the national regulationsmake provision for R1100 – and reporting on thepeople that the Municipality is supporting is thereforenarrower than required.Governance within the PMSA performance audit committee (PAC) has beenestablished, and meets four times a year to review thequarterly progress achieved. During the year, on an ongoingbasis the Internal Audit Department audits the portfoliosof evidence maintained by the Section 57 managers andreports back to the PAC and to the Municipal Manager.Chapter 9119

Response to the findings of the Auditor-General for 20009/10The following table shows the findings of the Auditor-General for the 2008/09 financial year on the Municipality’s PMS.The table also details the KwaDukuza Municipality’s comments and the action plan to respond to the findings.Audit FindingInconsistently reported performance informationReported performance information not relevantSource information not accurate and completeCommentsThe municipality has not reported throughout on its performancewith regard to its targets as per the approved integrateddevelopment plan. Targets in respect of low incomehousing and the amnesty meter program were excludedfrom the service delivery budget and implementation plan.In addition, no evidence could be provided for the approvalto infrastructure targets from the approved IDPThe targets relating to the housing programme were notspecific in clearly identifying the nature and the requiredlevel of performance, measurable in identifying the requiredperformance and time bound in specifying the time periodor deadline for deliveryThe source information or evidence provided with regardto the housing programme did not adequately support theaccuracy and completeness of the reported performanceinformation9.4. CONCLUSIONPerformance management is a process which stretchesright through the organization, from its vision and missionstatement, to its objectives and eventually its staff. Itapplies to the performance of an organization as well as toall persons related to it. Within the South African Municipalenvironment this also includes the political figures who areresponsible for that organization. As indicated earlier, theWhite Paper on Local Government (1997) statesthat key mechanisms to ensuring service excellence inmunicipalities include integrated development planning,performance management and community participation.As a start there are things that a municipality simply mustdo.Appropriate Key Performance Indicators must beestablished to serve as a yardstick for measuring individualand organizational performance. These key performanceindicators should include outcomes and the impact ofa performance area with regards to a municipality’sdevelopment priorities and objectives as set out in itsIDP. In light of the above, the KDM is well underway tofollowing the intent and requirements of legislation andwill soon conclude a comprehensive approach on how thesystem can fulfill obligations to the fullest extent intendedby law.It must:a. Establish a performance management systemthat is commensurate with its resources, bestsuited to its circumstances and in line with itstargets, priorities and objectives contained in itsIDP.b. Promote a culture of performance managementamong its political structures, political officebearers,councilors and administration.c. Administer its affairs in an economical, effective,efficient and accountable manner (MunicipalSystems Act, 2000).120KwaDukuza Municipality Integrated Development Plan - 2011/16

Chapter 9121

ANNEXUREAKwaDukuza NeedsAnalysis

ANNEXURE A:KWADUKUZA NEEDS ANALYSISWard 1 Ward 2 Ward 3 Ward 4 Ward 51. Sports Field atSokesimbone Area2. LED Projects3. Grazing Fields4. Rural Housing Project5. Fawsely Park/Wellvale /Dendethu _ Housing /Roads /Water1. Additional classroomsto the existing schools2. Satellite police station3. Cemetery -Zamani area.4. Resurfacing roads inDarnall and Zinkwazi5. new road to thereservoirs6. Upgrading of existingrecreational facilitiesand new sportingfacilities in Soweto7. Upgrading for thebasket project inZinkwazi8. Storm water upgrades9. Water piping to beupgraded in identifiedareas and sanitation10. Toilets on beach and inparks to be upgraded11. Bus Shelters12. Tarring of roads13. Junior Primary School14. Youth Centre15. Support Centre16. Upgrade of existingClinic17. Market place to sellnext R1021. Housing2. Recreation facilities3. Upgrading of gravelroads4. Maintenance of recentlytarred roads5. Upgrade of the existingbridge (KwaMlilo)6. Transfer electricalservice provider-Eskomto KwaDukuza7. Library8. Permanent clinic1. Cemeteries2. Improving of thequality of water3. Housing- awaitingPlanning approval4. Sports field- currentlyunder construction5. Improving ofSanitation6. Water (Sinqobile)7. Multipurpose centre8. Clinic9. Police station10. Upgrade of road(eTsheni)11. Library12. Play parks13. LED projects14. Electricity (Infills) andtransfer electricity toKwaDukuza15. Improve Publictransportation1. Recreationalfacilities(Shakashead)2. Storm watersystems(Shakashead3. Sanitation(Shakashead)4. Access road(Compensation-Ballito)5. Tarring of existingroads6. Railway station7. Hospice8. SMME support9. High SchoolWard 6 Ward 7 Ward 8 Ward 9 Ward 101. Standard brandeddirectional signage andimproved traffic signs2. Storm water outfalls onbeaches ( possible pier)3. Finalised Tourism andMarketing Strategy4. Construct PedestrianWalkway down BallitoDrive, and upgradecompensation BeachDrive and Salt Rockpavements5. 11KV substation forBallito Village Node6. 3 Taxi stops - Lifestyle,Ballito village and Saltrock7. Bus Service8. High School9. Sewer line to be movedoff Willard Beach10. Demolish andreconstruct toilets atSalt rock and ThompsonBay11. Fencing of the 2 sitesof conservation -Waterberry and Pigeonwood in Ballito12. CCTV cameras onPromenade13. Visible 24 hour policingthroughout Ward 614. Informal Trading Policyand facilities for storageand vending for beachvendors15. Removal of alienvegetation1. Crèche2. Addressing illegaldumping3. Roads tarring &maintenance4. Electricity5. Speed humps & trafficcalming (R102)6. SMME Development7. ABET8. Visible police patrol9. Water and sanitation10. Railway station11. Recreational facility12. Upgrade of existingsports field (Nxumalo)13. Electrical vendor14. Verge maintenance15. Skips16. Bus shelters (upgrade),Bus service & streetlighting in bus stops17. Mobile clinic18. Community hall19. Sportsfield (Shayamoya)20. Multi-purpose centre21. Health workers22. Dislodging of VIP toilets23. High school24. Storm water drainage25. Land for housing26. Land for agriculture27. Library28. Street names29. Play park30. Staircases31. Bridge (cemetery-Shayamoya)32. Sidewalks33. Water connections1. Additional housing2. Upgrading ofStormwater3. Upgrading of drainagesystem (Nkobongo &Shakaskraal)4. Water and sanitation5. Upgrading of sportsfield6. Primary school7. Tarring of roads8. Resourcing of resourcecentre9. Access staircases atShisampama10. Cricket ground11. Sidewalks (Nkobongo12. Health workers13. Industries-job creation14. Community hall-Proteaheights15. Banking facility16. Electrical vendor(Nkobongo)17. Old age home(Shakaskraal)18. Tarring of Circle road(Shakaskraal)19. Shopping Centre(Nkobongo)20. Housing in Shakaskraal(low and middleincome)21. Road curbing (old agehome –shell)22. Speed humps R10223. Police visibility24. Kraal-Tourism1. Improving ofsanitation2. Bus route3. Upgrading of gravelroads4. Housing project5. Fencing ofgraveyards6. Extension of ruralhousing7. Street lighting8. Sports field9. Cemetery10. Multi-purpose centre11. Gravel roads12. Bus shelters13. Play parks14. Dipping tank15. Bridges(Mahambebukwa)1. Sanitation2. Street lights3. Bush clearance(between Old AgeHome and BWVilakazi Schoolalong R1024. Upgrading ofGroutville Market5. Land for housing6. Electricity7. Tarring of roads(School road,KwaBukhosini,KwaManqele)8. Resurfacing of thegravel roads9. Upgrade of stormwater system ( BWVilakazi School)10. Waste removal11. Worship sites12. Desludging oftoilets13. Crime preventionand visibility ofpolice14. Business Centre15. Community hall(Groutville)124KwaDukuza Municipality Integrated Development Plan - 2011/16

Ward 11 Ward 12 Ward 13 Ward 14 Ward 151. Tarring ofuMkhanyakude, Congoroad, Mzimela- ChrisHani, Makhalathini,,eTsheni roads2. Multipurpose centre3. Extension of NkukwiniHall4. Renovation of MelvilleHall5. Market facility Melville6. 6 Skips7. Chief Albert Luthulihigh school8. Sports facilities9. Ward comm. Office10. Play parks11. Housing12. Clinic13. Satellite police station14. Bridge –eThembeni-Nkukhwini15. Toilets at Tinley ManorBeach1. Planning for lightindustry development ineThembeni Area2. Waste removal3. Electricity (Ten Acre)4. Upgrading of roads5. Title deeds eThafeni6. Community hall DubeVillage7. Upgrading of the tunnel8. Electricity Tem Acre9. V drains Dube toll gatearea10. Ten Acre 2 tarring ofroad11. Fencing of thecommunity hall12. Upgrade of Toll gatemarket13. Skips14. Pedestrian bridge –Dube village15. Vending machines DubeVillage1. Housing2. Upgrading of sportsfield3. Building of combocourts in Glenhills4. Completion of GlenhillsMulti Purpose Centre5. Community Hallfor Shayamoya,Mpongompongweniand Steve Biko areas6. Library7. Post office8. Public phones9. Land for housing10. Road (Steve Bikophase 211. Storm watermanagement1. Sports field2. High School3. Tarring of the roads4. Road signage5. Crèche6. Desludging of thetoilets7. Side walks8. Storm water9. Security at the hall/burglar guars10. Bus shelters1. Crèche/Pre/Primary/High Schools/(Ntshawini area)2. Link road forGledhow station &South3. Housing _ Gledhowstation4. Community Hall –Gledhow Station5. Link road _Ntshawini –Shayamoya Ward 136. Sports facilities/Playparks for children7. Road infrastructure8. Business Centre9. Sanitation & WaterWard 16 Ward 17 Ward 18 Ward 19 Ward 201. Stanger Heights bridge2. Sports facilities3. Upgrade and generalmaintenance4. Road infrastructure5. Overhead bridge byStanger Secondary6. Extension of MdonivilleHall7. Road marking8. Extended housingbenefit scheme9. Side walks1. Six road to be tarredDoesberg2. Side walks3. Extension of thecommunity hall4. Resurfacing anddressing rooms atLindelani sports field/grand stands5. Multipurpose center6. Crèche7. Bus Shelters8. Combo courts9. Old age home10. Hospice/homes for thedisabled11. Craft centre1. Sanitation2. Skills centre3. Housing4. Upgrading of YouthCentre into wellnessand fitness centre5. Upgrading of Sportsfacilities6. Renovation ofShakaville CommunityHall7. Pedestrian bridges forMbozamo River8. Speeds humps at CSection Lindelani9. Crèche facility – CSection & Mbozambo10. Dlambedlu pedestrianbridge to X 3611. Police patrol12. Road tarring Section C13. Speed humpsMbozambo14. Community hallMbozambo15. Bus shelters16. Securing of municipalbuildings1. Upgrading ofrecreational facilities2. Upgrading of Roadinfrastructure3. Upgrading ofparking areas in theCBD4. LED and job creationprojects5. Town view rockypark and CBDelectricity6. Ablution facilitiesCBD7. Containing of waterflooding river sideroad _ Townview8. Pedestrian crossing9. Pension payoutpoints (solution)10. Benches (town)1. Cemeteries2. Upgrading of roads3. Sanitation – Water4. Clinic5. Sports facilities6. Library7. Parks8. Swimming pool9. Pay points10. High School11. Tinley manor school12. Speed humps R10213. Street names14. Sidewalks15. Fencing of hall16. Bus shelter17. Worship site18. Housing19. Security _ hall20. Upgrades of gravelroad21. Ward committeeoffice equipment22. Pegging of the areaANNEXURE A125

Ward 21 Ward 22 Ward 23 Ward 24 Ward 251. Clinic2. Transport system(Buses)3. Health Services(Patients to be sent toStanger Hospital notOsindisweni)4. Mobile Police Station5. Job Opportunities (Localpeople must get firstpreference)6. Houses7. Basic Services1. Cleaning of Shakaskraaltown2. Old age home(Shakaskraal)3. Tarring of Circle road(Shakashead)4. Housing in Shakaskraal(low and middleincome)5. Road curbing (old agehome –shell)6. Upgrading of drainagesystem7. Removal of alienvegetation1. Additional houses(population hasincreased)2. Street names andAccess route from Pakito the local Cemeteryplace3. Waterborne toilets4. Road maintenance5. Crèche & Pre-School6. Signage at NkantiniArea7. Extension of Hall (forCooking & other things)8. Post Boxes1. Roads at Mphithiza2. Bridge at Mphithiza3. Safe play lot forchildren4. Site currently usedby the Gledhow millshould be used forcommunity relateduses5. Upgrade of sportsfacility- tennis court(Melville)6. Swimming pool7. Congo housingproject8. Utilization of locallabor for housingproject9. Awareness interms formingco-operatives toexploit sand miningopportunities10. Assistance with theacquisition of sewingmachines11. Crèche12. Crime at thecompound(enkopholo)13. Sewarage problemsthroughout theward, especially atBarracks14. Traffic calmingmeasures on R10215. Stormwaterproblems at MelvillePrimary Schoolchannelblocked bysand mining trucks16. Need to finalizeownership of housesat Barracks.1. Toilets2. Grazing Camps3. LED Projects (Skillsdevelopment)4. Sun source Clinic5. Signage & Speedhumps next toShekembula H.School6. Electricity at Kamu7. Ohlanga= HousesToilets, Electricity &Water8. Businesses Sites9. Combo Courts atShekembula HighSchool10. Mobile PoliceStation11. Upgrade ofsports Facilities(Equipments)12. In route roadsbetween housesWard 26 Ward 271. Roads2. Housing3. Toilets/sewerage4. Water5. Electricity6. Electrical vendingmachine7. Play parks1. Housing2. Land issue (security oftenure)3. Roads4. Sports facilities5. Clinic6. Community hall7. Mabhodweni toMkhambeni Bus route8. Bus shelters9. Mngezu Road10. Mabhodweni toThethwayo11. Qaqeni road fromMakhambeni12. Mgwaba to Nyongo Rd13. Madakeni Rd14. Gcugcwa Rd15. Maromeni to Monza Rd16. Kotshi to Khuzwayo17. Makhambeni to Monza18. Mkhambeni to Myeza19. Nsikeni Rd20. Mthembu Rd21. Nodunga sportsfield22. Mbusiswa Rd23. Ashville Rd24. Oqaqeni sportsfield25. Infills (ID Meer)126KwaDukuza Municipality Integrated Development Plan - 2011/16

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