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Gauteng Provincial Government Pr33/2015 Isbn ECE.indd 1 ESTIMATES OF CAPITAL EXPENDITURE OF CAPITAL ESTIMATES GAUTENG PROVINCIAL GOVERNMENT PR33/2015PR33/2015 ISBN: 978-0-621-43363-0ISBN: 978-0-621-43363-0 GAUTENG PROVINCIAL GOVERNMENT 2/20/15 8:39:20 AM ESTIMATES OF CAPITAL EXPENDITURE ECE.indd 2 ECE.indd 2 2/20/15 8:39:202/20/15 AM 8:39:20 AM ECE.indd 1 2/20/15 8:39:20 AM Estimates of Capital Expenditure ESTIMATES OF CAPITAL EXPENDITURE i Estimates of Capital Expenditure The Estimates of Capital Expenditure 2015 report is compiled using the available information from different sources. Some of this information is subject to revision. To obtain additional copies of this document, please contact: The Head of Treasury Gauteng Provincial Government Private Bag X091, Marshalltown, 2107 Tel: 011 227 9004 PR33/2015 ISBN: 978-0-621-43363-0 Title of Publication : Estimates of Capital Expenditure 2015 - Gauteng Provincial Government ii Estimates of Capital Expenditure TABLE OF CONTENTS Foreword v Executive Summary vii VOTE 4: HEALTH 1 VOTE 5: EDUCATION 53 VOTE 6: SOCIAL DEVELOPMENT 101 VOTE 8: HUMAN SETTLEMENT 116 VOTE 9: ROADS AND TRANSPORT 175 VOTE 11: AGRICULTURE AND RURAL DEVELOPMENT 205 VOTE 12: SPORT, RECREATION, ARTS AND CULTURE 215 VOTE 15: INFRASTRUCTURE DEVELOPMENT 223 iii Estimates of Capital Expenditure iv Estimates of Capital Expenditure Foreword Gauteng is not only the most populous province in South Africa, but also the most industrialised and the biggest contributor to the country’s Gross Domestic Product (GDP). This has naturally led to inward migration, which places strain on social amenities as well as physical infrastructure. This is therefore the reason why now more than ever before, it is important that the Gauteng Provincial Government (GPG) and the rest of the Gauteng City Region redouble efforts \ investment in infrastructure. The theme of investing in infrastructure, both social and economic, has been a recurring one for the past few years. Economic infrastructure — incorporates Barbara Creecy the physical structures from which goods and associated services are produced MEC: Finance that enter as common inputs to many industries, and which play a large part \ communications networks as well as power, water supply and sewerage facilities commonly fall into this category. Social infrastructure — includes the facilities and equipment directed at satisfying society’s needs in terms of education, health and community services. Infrastructure spending will increase over the 2015 Medium Term Expenditure Framework (MTEF) to give expression to the Transformation, Modernisation and Re-industrialisation (TMR) agenda, while at the same time addressing the socio- economic imperatives of the day, increase spending on infrastructure to give expansion to the TMR to address the economic and social discrepancies of the Gauteng provincial economy. To this end the GPG will be spending over R38. 2 billion on infrastructure investments over the 2015 MTEF period, consisting of provincial equitable share funding and conditional grant funding. A notable increase of over R5.8 billion compared to the 2014 MTEF budget of R32.4 billion is due to the high value of infrastructure projects that would be under construction stage of the normal project life-cycle. Increase in the budget is also explained by the re-allocation of funds that were unallocated during the 2014 MTEF as a result of the introduction of the new performance based criteria \ Grants by National Government. The GPG infrastructure programme has predominantly focused on social infrastructure. This is in response to pressing societal challenges as well as addressing issues of equity. In the aftermath of the global economic slowdown, \ stimulate the economy as well as be a catalyst for job creation. Barbara Creecy MEC: FINANCE v Estimates of Capital Expenditure vi Estimates of Capital Expenditure EXECUTIVE SUMMARY The Gauteng Provincial Government (GPG) has allocated R38 billion for the delivery of infrastructure over the 2015 Medium Term Expenditure Framework (MTEF) period. This allocation will fund infrastructure projects in line with the overall strategic objectives of the province. The Estimates of Capital Expenditure allows GPG to communicate infrastructure investments and projects to be planned and implemented over the 2015 MTEF period. Table 1 below which summarises the budget allocation by vote over 2015 MTEF show that the Department of Human Settlements is allocated a budget of R16.7 billion (44%), followed by Department of Education with an allocation of R8 billion (21%), the Department of Roads and Transport with R6.3 billion (17%) and the Department of Health with R5.4 billion (14%). Table 1: Summary of GPG Infrastructure Programme by Department Department 2015/16 2016/17 2017/18 Medium Term Estimates Health 1 395 720 1 885 618 2 088 372 Education 2 606 399 2 599 522 2 819 498 Social Development 160 250 186 125 195 431 Human Settlement 5 370 034 5 587 280 5 783 942 Roads & Transport 2 028 675 2 153 100 2 271 176 Agriculture & Rural Development 18 512 17 655 18 538 Sport, Arts, Culture & Recreation 245 830 15 600 - Infrastructure Development 253 291 251 300 263 865 Total 12 078 711 12 696 200 13 440 822 GPG infrastructure is funded through conditional grants and Provincial Equitable Share. Over the 2015 MTEF, a total of R23.2 billion is funded from conditional grants of which R15.7 billion is for Human Settlements !"#$&'*+;<#=>#?\ a budget of R20.6 million is allocated to drive the job creation initiatives through the Expanded Public Works Programme (EPWP). Table 2: Summary of GPG Infrastructure Programme by Category Infrastructure Category 2015/16 2016/17 2017/18 R thousand Medium Term Estimates New Infrastructure 7 183 202 7 694 199 8 694 499 Existing Infrastructure 4 895 509 5 002 001 4 746 323 Upgrading and Additions 1 537 926 1 839 594 2 234 787 Rehabilitation and Refurbishment 1 382 198 1 250 245 294 595 Maintenance 1 975 385 1 912 162 2 216 941 Total 12 078 711 12 696 200 13 440 822 Over the 2015 MTEF, R38 billion is allocated across various investment categories. A budget of R23.6 billion is allocated towards new infrastructure mainly for construction of new houses, schools, clinics and hospitals. These include investment in the provision of smart schools, construction of new clinics and upgrading of existing clinics to comply with the National Health Insurance (NHI) requirements, revitalisation of District hospitals, and development of sustainable human settlements through various Mega projects, expansion of the existing provincial road network and public transport facilities to support the Gauteng City-Region 2030 vision enshrined within the Transformation, Modernisation and Reindustrialisation (TMR) programme. The estimated budget allocation for rehabilitation and refurbishment is R2.9 billion, upgrading and additions of existing facilities R5.6 billion is and R6.1 billion is allocated for maintenance. vii Estimates of Capital Expenditure viii Vote 4 - Health VOTE 4 DEPARTMENT OF HEALTH Infrastructure Amount to be appropriated by Vote R1 395 720 000 Responsible MEC MEC for Health Administering Department Department of Health @ J 1. STRATEGIC OVERVIEW OF INFRASTRUCTURE PROGRAMME The purpose of this programme managed and implemented by the Department of Health (GDOH) is to facilitate the delivery of quality infrastructure-related services to the citizens of Gauteng. This entails constructing new service platforms, upgrading and improving the standard of existing facilities, and ensuring optimum and effective utilisation of healthcare-related facilities. The department also undertake life cycle management of immovable assets through maintenance of all facilities. The main objectives of the infrastructure programme are to enable effective provision of healthcare and promote faster economic growth, as well as contributing to the provincial outcomes on extended employment and skills development through the Expanded Public Works Programme (EPWP). The programme is also implementing national infrastructure priorities through the Infrastructure Development Improvement Plan (IDIP) and the Government Immovable Asset Management Act (GIAMA). Legislative mandate The infrastructure delivery programme complies with the requirements laid down in the Public Finance Management Act, No. 1 of 1999 (PFMA) and the Division of Revenue Act (DORA). Further legislation that is KQ U Architectural Profession Act, 2000 U Built Environment Profession Act, 2000 U Children’s Act, No. 38 of 2005 U Construction Industry Development Board Act, 2000 U Criminal Procedures Act, No. 51 of 1977 U Engineering Profession Act, 2000 U Government Immovable Asset Management Act, No. 19 of 2009, referred to as GIAMA U Intergovernmental Relations Framework Act, No. 13 of 2005 U Landscape Architect Profession Act, 2000 U National Building Regulations Standards Act, 1982 U YZ[@#&&\ U Occupational Health and Safety Act, No. 85 of 1993 U Probation Service Act, No. 116 of 1991 U Public Service Act, No. 111 of 1994 U Prevention and Treatment of Drug Dependency Act, No. 20 of 1992 U Project and Construction Management Act, 2000 U Property Valuers profession Act, 2000 U Quantity Surveyors Profession Act, 2000 U Skills Development Act, 1998 1 Estimates of Capital Expenditure 2. FUNDING OF INFRASTRUCTURE #KK;<#$>#=\;<#=^Z '_`K{|^'`};<#$>#=\"#\ KKK"#~\\ the maintenance work that needed to be done. Over the 2015 MTEF, the budget grows from R1.4 billion in ;<#=>#?"#&;<#?>#\\";#;<#\>#\K infrastructure projects to be implemented within this period. Table
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