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01 August 2012Executive Mayor

Cacadu District MunicipalityCllr K. Kekana

Presentation to the National Council of Provinces

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CONTENTS

1. Introduction and Overview2. Service Delivery Outlook 3. Water and Sanitation4. Roads and Stormwater5. Human Settlements6. Community Services7. Conclusion

1. The Cacadu District Municipality and the Nelson Mandela Metro were created in 2001 , from the erstwhile Western District Council.

2. Prior to 2001, the Western District Council main revenue source was Regional Council levies. The funds were primarily directed to fund infrastructure in the local municipalities / towns.

3. There was a significant reduction in the revenue stream of the Cacadu DM with the revenue base being reduced by 94%.The RSC levy income reduced from R155m to R15m.

4. Operations were downsized to ensure financial sustainability in the long term. The staff establishment was reduced from 255 to 56.

5. In 2001 it became evident that CDM had to develop a credible business strategy to remain relevant and add value in the District.

6. Various strategies were adopted to make the institution viable. However bulk infrastructure services remain a major challenge.

BACKGROUND

STORMS RIVERKAREEDOUW

ST. FRANCIS BAY

HUMANSDORP JEFFREYS BAY

WILLOWMORE

KLIPPLAAT

STEYTLERVILLE

JOUBERTINA HANKEY

UITENHAGE

DESPATCH

PORT ELIZABETH

NIEU-BETHESDA

GRAAFF-REINET

ABERDEEN

JANSENVILLE

PEARSTON

KIRKWOOD

ADDO

RIEBEECK EAST

ALICEDALE

PATERSON

KENTON ON SEA

ALEXANDRIA

GRAHAMSTOWN

BATHURST

PORT ALFRED

CRADOCK

TARKASTAD

COOKHOUSE

SOMERSET EAST ADELAIDEBEDFORD

PEDDIE

SEYMOUR

FORT BEAUFORT

KEISKAMMAHOEK

MIDDLEDRIFT

ALICE

QUEENSTOWN

WHITTLESEA

CATHCART

Baviaans

DMA

Camdeboo

Ikwezi

The Blue Crane Route

Kou-Kamma Kouga

DMA

Makana

NdlambeSundays River Valley

Free State

Eastern Cape

Gauteng

Kwazulu Natal

Northern Province

MpumalangaNorth West

Northern Cape

Western Cape

AmatoleCacadu

Chris Hani

Ukhahlamba

O.R. Tambo

Alfred Nzo

Nelson Mandela Metro

LOCALITY

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• Cacadu is the largest District in the Eastern Cape, being about 58243 SQ KM in size

• Cacadu consists of 9 Local Municipalities namely: Camdeboo; Blue Crane Route; Ikwezi; Makana; Ndlambe; Sundays River Valley; Baviaans; Kouga and Kou-Kamma (30 towns and 25 settlements)

• Consequently, it has the longest road network about 8420km.• Cacadu District has a population of about 388210 (census 2001). Global

insight 420 000 (2010)

Introduction

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• Recent service economic study shows that about 38% of the population is living below minimum acceptable income level.

• 4% Population living with less than R16/day. Africans experience high poverty levels.

• Unemployment is ranging at 21%.• HIV/AIDS profile is escalating with 8% population infected.• Inequality is lower than national average but illiteracy higher compared to

the Country. There is a steady improvement in education progress.• Housing and Electrification are showing steady improvements.• Agricultural annual growth is showing a rise since recession (Global

Insight) of 2008 but still lower than the growth prior to the recession.• Manufacturing industry is very limited

ECONOMIC OUTLOOK

• Agriculture and Tourism are the main economic drivers• Agriculture consists of sheep, goat, dairy, beef, ostrich, citrus,

apples, pineapples, chicory, wool, mohair• Tourism includes National parks, game reserves, eco-

tourism, coastal, adventure, festivals• Government’s contribution to the economy cannot be

underplayed.• Lack of local economic activity in small towns affects the

ability of LMs to raise their own revenues.

ECONOMIC OUTLOOK

• 90% of the population have access to water –(18% standpipes, 1.4 % boreholes, 1.4% Natural sources)

• Ndlambe has 69% access to water.• Water demand will increase by 40% in 5 years. In Ndlambe and Kouga,

this increase will reach 82% and 64% respectively (of the current supply), due to the influx of holiday makers, if the District can maintain is competitive edge on tourism.

• Ikwezi LM has the worst water shortages since it relies on boreholes for its water source leaving the municipality very vulnerable during dry seasons.

• There is a great reliance on boreholes in the district especially in the Ikwezi, Baviaans, Blue Crane (Pearston) and the rural areas of Makana.

• All LMs are WSA/WSP’s This function is generally poorly performed and under resourced with both technical skills, financial and material resources.

INFRASTRUCTURE CHALLENGES

• Consequently, water quality is poor and a health hazard in some areas.• There is a need to focus at providing access to a basic level of service as

well as increasing the capacity of existing bulk and reticulation connector infrastructure.

• Most of the Waste water treatment works in our area are over extended.• Major upgrades in bigger town are needed e.g. Port Alfred, Humansdorp,

Jeffrey’s Bay and Somerset East.• There are still 5834 informal buckets in our area that needs to be

eradicated. These areas are Kouga, Makana, Sundays River Valley and Blue Crane Route Municipality

INFRASTRUCTURE CHALLENGES

• There is also a challenge of VIP toilets in the district that need to be upgraded to a waterborne system in Makana and Ndlambe. (This cannot be achieved unless there is a sustainable water supply.)

• All the necessary infrastructure is however not in place.• Maintenance and refurbish programme must be embanked on.• Currently a large portion of the infrastructure is beyond design life and

should have been replaced already by the Municipality.• The funds allocated to Municipalities to do maintenance work is insufficient

and this is causing acid stripping.• No funds are available to do any refurbishment within the Municipalities.

Reliance on MIG funding.

INFRASTRUCTURE CHALLENGES

MIG ALLOCATION

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Bulk requirements to address HUMAN SETTLEMENT Challenge

MUNICIPALITY HOUSING NEEDS

CHALLENGES

Kouga 11440 Water & Waste water

Makana 14026 Bucket & sanitation

Ndlambe 10026 Sewerage System

• The actual allocation on Capital Roads Projects by the Province is R76m for Cacadu 2012/13.

• This allocation is not proportional to the amount of roads in the District which is about 8420km in length.

• Roads in our District are in need of Rehabilitation and Upgrades.• The District has key strategic routes which are used by Tourists; transportation

of goods and services like Agricultural products But these roads remain gravel and receive low or no maintenance.

• A number of Provincial roads in the District remain incomplete although they were already started. eg. R75; the gravel road MR605 from N9 to Nieu-Bethesda.

• Roads listed (refer next slide) as critical condition amounts to R1.2b and this list was submitted to DRT & PW, R76m is a very small fraction to R1.2b.

Roads, Transport & Public Works

LIST OF PRIORITY ROADS

ROAD/ROUTE LENGTH IMPROVEMENT NEEDED

COST

Surfacing 74 Surfacing R370m

Gravel Road 5 Surfacing R25m

Surfacing of R337 7 Surfacing R35m

St.Georges to Addo R335 44 Overlaying wearing course

R132m

Zuurberg/Addo 20 Surfacing R100m

Steytlerville to Willowmore concrete road

40 Resurfacing R200m

Main road R389 15 Surfacing R12,5m

SANITATION & WATER PROJECTS SUMMARY

Service Delivery Needs No. of Municipalities

Estimated Cost Comments

Upgrading of Waste Water Works 6 R166, 800m No FundingAvailable

Upgrading of Sewerage Reticulation 6 R116, 663mConstruction of Bulk Sewer Pipeline 6 R122, 400mConstruction/Upgrading of Water Treatment Works

5 R170, 275m

Upgrading and Construction of Bulk Water Supply

6 R500, 119m

Upgrading of Water Reticulation 3 R106 737mRainwater Harvesting 1 R49, 950m

TOTAL R1, 182, 9, 950B

DISPOSAL SITES PROJECTS

Service Delivery Needs

No. of Municipalities

Estimated Cost Comments

Upgrading of Waste Disposal Sites

1 R18, 000m No funding

Licensing of Waste Disposal Site

1 R2, 000m No funding

Construction of Solid Waste Transfer Sanitation

1 R5, 300m No funding

Rehabilitation of Landfill Sites

1 R12, 000 No funding

TOTAL R37, 300m

ELECTRICITY PROJECTS

Service Delivery Needs No. of Municipalities

Estimated Cost

Comments

Installation of high Mast lightning 2 R5, 450m

No funding Available

Installation of LV and MV Electricity Lines

1 R15, 000m

Upgrading and Extension of Electrical Network

1 R50, 000m

Housing Electrification 1 R4, 000mTOTAL R74, 450m

Community Facilities Projects

Service Delivery Needs No. of Municipalities

Estimated Cost

Comments

Construction of Multi-Purpose Centres

3 R12, 600m

No funding Available

Construction and Upgrading of Sportsfield

4 R50,229m

Construction of Indoor Sporting Facility 1 R12, 000mUpgrading and Refurbishing of Parks and Playgrounds

2 R5, 100m

Development of New Cemetries 1 R10, 000m6 R10, 000m

TOTAL R90 929m

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CONCLUSION

* Although CDM is rated highly in terms of service ability of our communities, setting the existing infrastructure is over extended.* The existing capacities were designed in exclusion of unprecedented population growth which is a resultant of integrated human

settlement planning, migration, economic growth of middle income black communities since 1994.

* Existing infrastructure is dilapidating, reaching the end of its design life, thus maintenance costs are also escalating.

* Provincial Allocation of Roads Infrastructure is insufficient, unfair to our communities and other road users crossing the District to other Provinces.

* A massive backlog of around R3.5B is herewith submitted with details in the narrative.

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THANK YOU