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Chapter 11 - Sedibeng District Municipality

Chapter 11 - Sedibeng District Municipality

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funded from MIG Capital Grant allocation made to municipalities. Municipalities are<br />

expected to submit a PMU Business Plan as w ell as Project Based Business Plans to<br />

Province for approval and ratification by DPLG. It is the requirement of MIG that<br />

municipalities should meet a number of founding conditions, including:<br />

• Conformity w ith IDPs;<br />

• Limitations on operational spending;<br />

• Adequate attention to rehabilitation;<br />

• No pledging of funds to secure loan finance;<br />

• Achievement of specified basic service coverage targets; and<br />

• Poverty alleviation.<br />

There are specific conditions that apply to select sectors. Each sector may, further to<br />

the founding conditions, establish sector specific conditions.<br />

• Department of Public Works<br />

- A minimum of 10% of all projects related to rural roads, low volume<br />

municipal roads (less than 500 vehicles per day), pipelines, trenches<br />

and sidew alks have to be conducted in a labour intensive manner in<br />

terms of the Expanded Public Works Programme (EPWP) guidelines<br />

issued by the Department of Public Works. The proportion of these<br />

types of projects to be done by hand w ill increase to 80% by 2008/2009.<br />

- To issue contracts for projects of the above type only to consulting<br />

engineers and contractors who are qualified in managing labour<br />

intensive projects.<br />

• Department of Transport<br />

- The development of road infrastructure to poor households that w ould<br />

create access to trade, local economic development and essential<br />

services and to promote road safety.<br />

It is therefore critical that the SDM position itself to take full advantage of the<br />

opportunities presented by MIG.<br />

16.4 Additional Funding Measures<br />

The DPLG project that the provision of basic services to all communities w ill only be<br />

achieved by 2040 at the current rate of service delivery. The projections by the<br />

Medium Term Expenditure Framew ork are worse: communities w ill receive adequate<br />

services only in 2065. These daunting challenges of service delivery cannot be met<br />

through state intervention only but through a sustained collaboration betw een the<br />

state and the private sector. It is against this backdrop that the concepts of Municipal<br />

Service Partnerships (MSPs) and Public Private Partnerships (PPPs) w ere born.<br />

The Gautrain is an example of a PPP currently underw ay, and SANRAL also uses<br />

PPP’s to maintain and expand the national road netw ork. Attempts, through the<br />

Municipal Infrastructure Investment Unit (MIIU), are being made to explore the<br />

potential of PPPs being applied in the broader scale of providing basic services to<br />

communities. The Unit has started w ith examining the role of PPPs on the provision<br />

of municipal public transport services and infrastructure. The SDM must interact w ith<br />

the Unit.<br />

SDM w ill explore some other additional funding sources and mechanis ms, such as:<br />

SDM DITP, 2008 to 2013 214 31 Aug 2010

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