City spends 92,9% of its largest capital budget in history Highlights: • Capital record spend of R5,78 billion • Roads and Transport: R2,5 billion • Utilities: R2 billion • Human Settlements: R570 million • Repairs and maintenance record spend of R2,6 billion • Record purchase orders of R11,8 billion The City of Cape Town has, for the 2012/2013 financial year, spent a record R5,78 billion, comprising 92,9% of its R6,22 billion capital budget. This demonstrates once again why Cape Town stands head and shoulders above other municipalities with regards to service provision and financial management. Capital expenditure makes a real and fundamental difference to people’s lives with the delivery of houses, roads, clinics and basic infrastructure to ensure that the lights are on and the water is running for our residents. This capital spend is R1,54 billion more than the previous year’s expenditure. The capital spend strongly supported both investment in infrastructure for economic growth and for services assisting the poor and the vulnerable. This year, the City’s pro-poor spend for both capital and operating expenditure stands at 64%. This percentage is derived from the 57% of the City’s budget which is spent on direct service provision to poor households combined with substantive rates rebates, a comprehensive free basket of services, and income forgone from the provision of extensive indigent relief. As a result of the City’s performance on capital expenditure, the number of job opportunities on the Expanded Public Works Programme (EPWP) has increased significantly. This has resulted in the creation of 37 000 work opportunities for those most in need of work, more than any other city in South Africa. In addition to creating work opportunities and helping to directly combat poverty, the success of our EPWP has resulted in a direct improvement in the roll-out of services. Another noteworthy achievement is the Capital Implementation rate of 95% for the City’s Urban Settlement Development Grant (USDG) funding. USDG funds are primarily spent on creating integrated, sustainable human settlements and on upgrading the city’s urban environment, with a particular focus on informal settlements. The high spend rate means that the City of Cape Town will not have to return any of our USDG allocation to National Treasury as all the funds have been contractually committed. This City’s performance in terms of our high capital expenditure arose out of a targeted strategy, under the direction of the Executive Mayor, who has demanded improvements to our systems to ensure a high level of spend. These include improvements in: • Supply Chain Management processes, including Tender Demand Management • Turnaround time for tender appeals • Extensive monthly monitoring systems • Project Management training • Improved due-diligence processes The SCM Department issued purchase orders of R11,86 billion for goods and services during the year, with a BBBEE spend of 77,66%. One of the key areas of expenditure that differentiates the City of Cape Town from other South African municipalities is that this metro prioritises repairs and maintenance. This equates to a visible difference in Cape Town in terms of, primarily, roads and utilities infrastructure. In this regard, we spent a record R2,6 billion for the 2012/2013 financial year. Amongst the highlights of the City’s capital spend are a range of substantive investments in critical areas, most specifically as they relate to building an Opportunity City and improving the lived reality of all citizens. Such investments include R1,37 billion on IRT operations and R1,23 billion on electricity provision as well as significant investments in broadband infrastructure and the provision of housing. Major capital projects include: DIRECTORATE PROJECT SPEND IN RANDS CITY HEALTH New health facility in Eerste River 1 681 703 CITY HEALTH Luvuyo Clinic extensions for ARV services 2 775 196 COMMUNITY SERVICES Imizamo Yethu sports complex 2 689 698 COMMUNITY SERVICES Masibambane Hall additions and alterations 2 658 468 CORPORATE SERVICES Broadband project 72 159 404 HUMAN SETTLEMENTS Happy Valley Phase 2 33 460 000 HUMAN SETTLEMENTS Ocean View 5 883 246 HUMAN SETTLEMENTS Kanonkop Atlantis (Ext. 12) Phase 1 11 495 120 HUMAN SETTLEMENTS Heideveld Duinefontein 11 644 342 HUMAN SETTLEMENTS Scottsdene – new CRU 6 600 000 HUMAN SETTLEMENTS Pelican Park 20 893 342 HUMAN SETTLEMENTS Public Housing Projects 7 543 900 HUMAN SETTLEMENTS Scottsdene Housing Project 7 543 900 SAFETY & SECURITY New Melkbosstrand Fire Station 4 764 814 SAFETY & SECURITY New and replacement emergency response vehicles 20 829 4098 TRANSPORT, ROADS & STORMWATER IRT Phase 1 590 000 000 TRANSPORT, ROADS & STORMWATER Mitchells Plain CBD Transport Interchange 11 000 000 TRANSPORT, ROADS & STORMWATER Lentegeur Station Transport Interchange 15 000 000 The capital spend, coupled with our financial responsibility, as demonstrated by our eighth unqualified audit the previous year and the highest credit rating available to local government, shows that this government has the ability to spend to improve the lives of all residents of this city. Finally, I would like to convey my appreciation to the City of Cape Town’s Executive Management team who are the driving force behind the City’s performance. This is the first full financial year under our diverse new team’s leadership and their collective and individual capability is clearly evident in the City’s 92,9% spend. To Kevin Jacoby, Tshidi Mayimele-Hashatse, Melissa Whitehead, Richard Bosman, Zandile Mahlangu-Mathibela, Japie Hugo, Anton Groenewald, Gerhard Ras, Seth Maqetuka, Gisela Kaiser, Ivan Bromfield and Lokiwe Mtwazi, my sincere thanks.
Posted on: Wed, 24 Jul 2013 11:06:15 +0000
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