The Department of Transport and Roads

Report on Conditional Grants

BACKGROUND

The Department manages a total road network of 23 698 km comprising of 7 140 km surfaced and 16 558 km gravel roads. According to the 2004 Road Network Management System report, the provincial roads have deteriorated over the past four years. It indicated that 22% of the surfaced roads and 25% of the gravel roads are in a poor or ver poor condition. The reason for the deterioration can mainly be ascribed to a lack of sufficient funds for maintenance and rehabilitation.

According to the Road Network Management System report, the Department requires approximately R1.4 billion to maintain the current network. This excludes the funding for new development, which required another R1 billion.

The funds allocated to the Department for road maintenance and development, including the conditional grant is as follows:

2004/5 R 195, 836 million

2005/6 R 241, 747 million

TRENDS IN FUNDING AND EXPENDITURE

Financial year

Conditional grant

Budget 000

Allocated 000

Expenditure 000

Balance 000

%

2003/4

Road maintenance

100, 684

100, 684

98, 506

2, 178

97, 84%

2004/5

Road maintenance

140, 937

136, 661

124, 945

15, 992

91, 42%

2005/6

Road maintenance

140, 049

23, 000

16, 992

 

73, 8%

The first allocation for this year was only received mid May 2005 resulting in the 73,8% expenditure.

MONITORING CAPACITY

CONSTRAINTS IMPACTING ON DELIVERY

The following factors hamper service delivery:


MECHANISMS TO DEAL WITH ISSUES

The following wilt address some of the issues:

BUSINESS PLANS

For a number of years now in the province all conditional grants and earmarked funds must be motivated with proper business plans. No funds are released by the Provincial Treasury if the business plans are not appraised and found viable and contributing to the development of the province, by means of the Project Appraisal Tool, as managed by the Office of the Premier. Similarly for 2005/6 plans are submitted and approved.