CONDITIONAL GRANTS PROGRESS AND CAPITAL EXPENDITURE 2007 2008 MEC

CONDITIONAL GRANTS PROGRESS AND CAPITAL EXPENDITURE 2007/2008 MEC DP Magadzi 22 January 2008 1

PERFORMANCE & TRENDS IN ALLOCATION/TRANSFER 2005 -2008 2005/06 Allocated & Transferred % Spent 2006/07 Allocated & Transferred % Spent 2007/08 Allocated 2007/08 Transferr ed 2007/08 Spent CASP 52, 217 m 100 50, 143 m 96 62, 921 m 50, 337 m 14, 000 m Land Care 5, 308 m 100 7, 950 m 90 7, 943 m 6, 654 m 1, 907 m IGP 60, 255 m 49 43, 767 m 94 38, 480 m - 1, 624 m 2

2007/08 CASP PROGRESS REPORT • The following activities were targeted – Deliver well planned & massified projects – Resource auditing e. g. water resource development, Soil testing – Implementation of projects found feasible – Farmer capacity building – Comprehensive planning for 2008/09 3

2007/08 PROGRESS REPORT CONT’D ACTIVITIES OUTPUTS Boreholes tested 83 Boreholes drilled 18 Irrigation Infrastructure 84 ha Complete designs, spec and Bo. Qs 45 projects Fencing 144 km Projects planned, packaged & ready for tendering (2008/9) implementation 29 projects constituting 70% of 2008/9 budget are ready for tendering 40 000 Poultry House Construction of houses started in 2006/07 8 houses completed Delivery of new houses 2 houses completed Houses in progress 1 house Farmers Trained 76 4

PROJECTED SPENDING FOR QUARTER 3 (07/08) Project Value Municipality Disbursement Jan Feb Mar Irrigation Infrastructure 8. 3 M Maruleng, Tzaneen Polokwane, Molemole Blouberg, Makhado 1, 300 000 2, 800 000 4, 200 000 Poultry Houses 6. 4 M Ba Phalaborwa Tzaneen, Polokwane 800 000 2, 200 000 3, 400 000 Juice processing & drying facilities 20. 5 M Makhado 0 0 20. 5 M Livestock infrastructure 4 M All 500 000 1, 800 000 1, 700 000 Training & Capacity building 3, 7 M All 1, 250 000 Project Planning 1. 7 M All 450000 7500000 TOTAL R 44, 650 000 4, 300 000 8, 800 000 32, 550 000 5

One of the massified poultry projects 6

2006/07 IGP projects Outcomes • 90% of the budget was spent. • 10 of 12 Poultry houses of 40, 000 capacity were completed. • 42 Microenterprises with 1247 beneficiaries were developed. • Fresh Produce Packhouse facilities were located, first seller withdrew offer. Facilities to lease in Seshego were withdrawn by Ex. Co decision. 7

IGP PROJECTS 2007/08 PROJECT BUDGET Progress Fresh Fruit &Vegetable Packhouses R 6, 700, 000 3 individual projects identified Honey Bee Production R 5, 000 1000 beehives and equipment have been delivered. Integrated Livestock R 7, 100, 000 86 of 100 km fencing done, 8 boreholes drilled & equipped. Feedlot & abbatoir site preparation. 20 crush pens under construction. Mechanization Credit Access R 20, 00 Procurement, Negotiations with Absa & Land Bank at 95%. TOTAL R 38, 800, 000 8

Land. Care Objectives 2006/7 ACTIVITY TARGET OUTPUTS Awareness creation 6 5 Capacity building 1002 1195 Institutional structures 6 6 Conservation measures 30000 6108 Clearing of alien and invader plants Job creation 300(ha) 305 5156 12911 Fence construction 253 325 Access roads 41 1515 Fire belts 265 195 9

Land. Care. Q 3 Financial Progress PROJECT BUDGET COMMITTED EXPENDITURE BALANCE MARULENG 1, 000 73, 000 R 8, 700 R 918, 300 GA-KIBI 1, 000 R 441, 528 R 185, 150 R 373, 322 LEPELLANE 1, 000 R 446, 570 R 469, 855 R 83, 575 MOGALAKWEN A 1, 000 R 279, 755 R 515, 648 R 204, 597 BOLOBEDU 1, 000 R 67, 967 R 81471 R 850, 562 KUTAMA-S 1, 000 R 203, 924 R 424, 939 R 371, 137 MPHAHLELE R 647, 666 R 201, 000 R 143, 794 R 302, 872 LEOLO R 647, 666 R 3, 000 R 47, 478 R 597, 188 MUTALENWANEDI R 647, 666 R 29, 965 R 587, 736 R 7, 943, 000 R 1, 746, 709 R 1, 907, 000 R 4, 289 TOTAL 10

TARGET vs OUTPUTS 2007/08 ACTIVITY Awareness Creation Capacity Building Institutional Structures Conservation Measures Clearing of Alien and Invader Plants Job Creation Fence Construction TARGET OUTPUT 300 11 O 470 304 12 40, 000 315 3 10, 000 0 1700 54 724 27 11

Expected Outcomes -Land. Care • All funds will be committed by end of January 2008. • Expected spending by end March 2008 will be R 6, 943 mill. • Expected to be rolled over R 1, 8 mill. 12

DEVELOPMENTAL CHALLENGES • Assessment and program review revealed the need to move from quantity to quality (economic feasibility and impact) • Late appointment of planning engineers in line with a change of strategy from delivery of minute to massification, which necessitated detailed planning, therefore very delayed implementation with both happening in the same year – performance still expected to be just over 90% (R 58, 650 000) • Managing slow conceptualization to change of strategy by both farmers and officials took over 14 months. • Engineering capacity to monitor mega projects is limited. 13

PLANS TO ADDRESS THE SHORTCOMINGS • Massified approach delivers fewer, and more sustainable projects which are cost effective to both planning and monitoring resources • Demand officials have been capacitated on the procurement processes requisite to the mega projects e. g. contract management, drawing of TOR and SLAs • Use of external engineering capacity where necessary • Current readiness for 2008/9 evident that planning will henceforth be fully completed six months ahead. 14

Challenges – IGP 2006/07 Poultry House Contracts was re-advertised in June 2006 contractors were on site. • Fresh Produce market infrastructure delays due to Montina Seller withdrawal from Purchase Offer & cancellation of Lease at Seshego by Ex. Co Decision. (Ex. Co wanted an integrated Plan with LEDET & Funding Plan = +-R 300 m) • Micro enterprises delayed due to Electricity connections but most are complete. Testing has to be done before finalizing and hand-over. 15

MONITORING CAPACITY & PROCESSES • LDA makes use of the following tools: – Monitoring tools developed (involve rigorous approval criteria) – Monthly narrative & financial reporting by Districts (with digital recording of projects status – Provincial team meetings involving Districts, municipalities & specialized agric service units – Ad hoc projects sampling and field visits. – Sharing of best practice across districts. • All demand managers have been trained on contract management in order for them to enforcement adherence to the TOR and delivery of quality products • LDA has complied with reporting requirements of Dora. 16