Tabel of content

1Introduction

1.1Problem Statement

1.2Gaps resulting in unsustainable service delivery

1.3Objectives of the guideline on sustainable municipal infrastructure provision and service delivery

2Vision

2.1Economic growth for improving the lives of the poor South Africans

2.2Alleviating poverty

3Definition of municipal infrastructure provision and service delivery

4The developmental role of local government

5Roles and responsibilities

6Integrated Development Planning (IDPs)

7Asset Management

8Financing

9Infrastructure Implementation

10Monitoring and evaluation

11Communications

12Infrastructure maintenance and operations

13Cross cutting measures

14Policy Principles for the sustainable delivery of services

15Conclusion

1

GUIDELINES

Sustainable Municipal Infrastructure Provision and Service Delivery

1Introduction

South Africa has a long and often difficult path for service delivery to all its peoples. It is a process with clear goals and based on principles embedded in the history of the development and betterment of all the people of the country. Through the Freedom Charter and the Reconstruction and Development Plan (RDP), a practical dispensation has evolved for the delivery of services and specifically the provision of access to basic infrastructure to all households in South Africa.

The cornerstone for infrastructure provision and service delivery is still the RDP which clearly articulated the Government’s vision upon which the current policy and legislative dispensation is founded. The RDP sets a vision stating that an “integrated process of transformation must ensure that the country … becomes a prosperous society, having embarked upon a sustainable and environmentally friendly growth and development path…“ (RSA,1994).

To fulfil government’s constitutional obligation of providing services, municipalities are mandatedto provide access to basic municipal services. The Local Government: MunicipalSystems Act, Act No. 32 of 2000, Chapter 1, defines basic municipal services, as a service that is necessary to ensure an acceptable and reasonable quality of life and which if not provided, would endanger public health, safety and the environment.

Sector departments have respective sector policies and strategies that specify what should be implemented and the technical standards and norms.

1.1Problem Statement

It has been established that municipalities are not delivering infrastructure service in a sustainable manner. This is exacerbated by the lack of matching capital operations and maintenance funds. Most of the challenges mentioned above are due to planning, implementation and monitoring systems failure.

In light of the above, it was deemed appropriate to assess the policies and principles developed over the past years on infrastructure and municipal services delivery.

The first assessment of existing policies confirmed that South Africa has policies to ensure the sustainable delivery of infrastructure and services. The provision of unsustainable municipal infrastructure services therefore could not be attributed to lack of legislation.

Further assessments revealed that municipalities do not comply with basic principles for sustainable service delivery which were confirmed during several consultations with municipalities.

1.2Gaps resulting in unsustainable service delivery

The lack of delivery of sustainable infrastructure services can be attributed to the following gaps:

(i)The lack of clarification of the roles and responsibilities of stakeholders in infrastructure provision. As a corrective measure, the dplg, as a coordinating department, shall develop the roles and responsibilities for infrastructure provisioning across all spheres of government.

(ii)The lack guidelines on municipal infrastructure and services support. To address this gap, the dplg in collaboration with sector departments developedguidelines on the multi-dimensional targeted approach to support municipalities to respond to the challenges. Flowing from this guideline document, Sector departments should develop their sector specific supportstrategies to address the challenges.

(iii) The lack of organisational capacity of municipalities especially in specialised fields such as engineering and accounting. It is clear that municipalities with different types of requirements need to be supported differently to correct inefficiencies in the administration of municipalities. To address this challenge, National Government shall deployengineers and other experts through existing programmes.

(iv)The lack of clear common principles on sustainable infrastructure services delivery – This guiding document articulates these principles in one reference document to assist both politicians and officials in understanding the requirements for sustainable municipal infrastructure and service delivery.

1.3Objectives of the guideline on sustainable municipal infrastructure provision and service delivery

The policy assessment process confirmed that key policy principles on sustainable municipal infrastructure provision and service delivery are found in various policies and legislation without having a single reference point. In light of the above, there is a need to have a single reference point to guide and:

(i)Express the common understanding of the vision of sustainable municipal infrastructure provision and service delivery.

(ii)Provide the common understanding and instil the objectives and principles of sustainable municipal infrastructure provision and service deliverywith stakeholders to assist with compliance when infrastructure is delivered.

(iii)Serve as a basis for the development of various strategies to meet the demand in sustainable municipal infrastructure provision and service delivery.

2Vision

Municipal Infrastructure provision is aimed at providing all South Africans with the necessary access to municipal services to its communities in a sustainable manner. An integral part of municipal Infrastructure provision is government’s drive to alleviate poverty and to assist in creating the base for economic growth.

2.1Economic growth for improving the lives of the poor South Africans

Economic growth as a vehicle for improving the quality of life for all South Africans has always been a key priority in government policy and strategy. From the highest level through BEE and affirmative action right down to practical issues such as of labour intensive construction methods, government has strived to improve economic conditions in the Country. Very strict fiscal policy under written by programmes such as GEAR has lead to a stable and prosperous economy.

In order to capitalise on the good fundamental conditions Government remains committed to maximise the economic benefits of development to all people. In a briefing by the Deputy President after the announcement of ASGISA, she stated that, “the core objective of this government as set out in 2004 is to halve poverty and unemployment by 2014.

The provision of basic household infrastructure is the central contribution made by local government to social and economic development. This should take place through empowerment of the local and previously disadvantaged groups such as youth, women and the disabled for example enhancing Black Economic development, establishment of networks of small business to provide services, engaging communities in labour-intensive construction methods, encourage community investment groups, purchasing of locally manufactured products and facilitating for active trading within municipalities and external environment.

2.2Alleviating poverty

According to ASGISA, without interventions directly addressed at reducing South Africa’s historical inequalities, growth is unsustainable. Interventions to address deep-seated inequalities and that target the marginalised poor are interventions to bridge the gap with the second economy, ultimately eliminating the second economy. (RSA, February 2006:8)

Poverty is also not a static component in development. The distribution and extent of poverty do change over time and it should be accommodated in any poverty alleviation programme. Analysis shows that the poverty burden in the metropolitan areas is rapidly increasing. This increase is accompanied by large scale migration to the metropolitan areas. This is particularly challenging for the local resource bases of the metropolitan areas and the development support strategies of Government.

As indicated earlier on, infrastructure provision will not necessarily alleviate poverty but it is necessary to create the required base conditions for economic growth and the redistribution of wealth through strong and continuous economic growth. The extent of poverty calls for realistic approaches and well planned and tested policies. The burden of the total system should be discounted and redistribution is not a sustainable option if it is not accompanied by continued and sustainable economic growth.

3Definition of municipal infrastructureprovision and service delivery

The municipality as the service authority would, in order to deliver services, require adequate infrastructure to meet the requirements as set out in Section 73 (2) of the Municipal Systems Act. Therefore, infrastructure is a tool to deliver on municipal services. The Municipal Finance Management Act defines infrastructure as capital assets which can either be movable or immovable in nature.

In this regard, municipal infrastructure is defined in broad terms as ‘the capital works required to provide municipal services. It includes all the activities necessary to ensure that the works are delivered effectively, such as feasibility studies, project planning and capacity building to establish sound operational arrangements for the works.

The term ‘works’ is taken to exclude readily movable assets such as specialised vehicles and equipment and land not directly required for the construction of municipal infrastructure. This definition excludes vehicles whether these be conventional trucks or specialised vehicles such as fire engines. But it includes the mechanical and electrical equipment that is required for, amongst others, water and wastewater treatment works.

The capital costs which are associated with the provision of municipal infrastructure include the cost of providing new infrastructure and rehabilitating such infrastructure which has reached the end of its design life. Maintenance of such infrastructure, which is associated with repairs undertaken during the design life of the infrastructure - repairs which are not associated with replacing major components of the infrastructure - is not a capital item.

A municipal service is the service provided by a municipality as it is experienced by the consumer. Many, but not all, municipal services require infrastructure, notably, water supply, sanitation, roads and stormwater, and electricity[1]. In all cases the service does not only involve the provision of the capital works associated with infrastructure; sound operation and maintenance arrangements, including customer interface arrangements, are also required for the proper provision of the service.

4The developmental role of local government

Local government is centrally placed close to communities with the vision of working with local communities to find sustainable ways to meet their needs and improve the quality of their lives.

The constitution provides that local government should:

  • Provide democratic and accountable government for local communities;
  • Ensure that the provision of services to the community in a sustainable manner;
  • Promote social and economic development
  • Promote safe and healthy environment; and
  • Encourage the involvement of communities and community organizations in the matters of local government

It is emphasised in the Constitution that municipalities should strive for the above objectives within their financial and administrative capacity.

It means that a municipality must ensure that the municipality services are:

  • Equitable and accessible;
  • Provided in a manner that is conducive to –
  • The prudent, economic, efficient and effective use of available resources and
  • The improvement of standards of quality over time.
  • Financially sustainable;
  • Environmentally sustainable
  • Regularly reviewed with a view to upgrade, extension and improvement.

It requires that the powers and functions of local government be exercised in a way that has a maximum impact on the social development of communities, in a particular meeting the needs of the poor and on the growth of the local economy.

5Roles and responsibilities

Although there is some distinctiveness amongst the spheres of government, there is a level of interdependence to allow for effective concurrence, interrelation and dependencies. These affirmations of these types of relationships are more critical for the development of bulk infrastructure and for complementary administrative capacity to enable service delivery.

It is important for:

  • All spheres of government and organs of state to cooperate with one another in mutual trust and good faith by assisting and supporting one another;
  • National and provincial governments, by legislation and other measures, to support and strengthen the capacity of municipalities to manage their own affairs, to exercise their power and to perform their functions.
  • National and provincial governments by agreement assist municipalities in building the capacity of municipalities for efficient, effective and transparent financial management.

Therefore,

  • The dplg must ensure that the local government system is functional to enable the delivery of infrastructure and municipal services.
  • The provincial local government departments must monitor the performance of local government and also support it in discharging its functions.
  • Municipalities must ensure the sustainable delivery of infrastructure and municipal services to all its citizens. It should also ensure the efficient coordination of service providers so as to achieve the desirable development effort.
  • National sector departments should ensure the development of respective sector infrastructure policies, support municipalities with the planning, implementation, monitor and evaluate the implementation of sector programmes, audit and regulate the compliance with technical standards and norms.

6Integrated Development Planning (IDPs)

The infrastructure delivery journey starts with a vision which is long term (plus minus 25 years). This vision is based on the objectives of national government which is to ensure that all South Africans have access to infrastructure.

All the plans at a municipal level converge into the IDP. The IDPs is the principle strategic planning tool that guides and informs all planning, development and decision-making in a municipality. It is a mechanism to enable prioritisation processes. It is a process through which a municipality establishes short and medium term plans within the long term plan of a municipality.

Municipalities must be multi-sectoral in their approach to integrated development planning. It implies that the IDPs must include the plans of different sector departmentsAlthough municipalities are obliged to participate in national programmes, sector departments must provide sectoral leadership and guidance on what (product and quality) is to be delivered. Sector departments must develop and update sector micro plans of municipalities.

The preparation of an IDP must be developed in line with the guidelines provided by dplg and must include the following:

  • The municipal council’s long term vision;
  • The existing level of development by identifying communities that do not have access to basic infrastructure and municipal services;
  • Municipal council’s development priorities and objectives including its local economic development aims and internal transformation needs;
  • Municipal councils’ developmental strategies which must be aligned with any national or provincial sectoral plans and planning requirements binding on the municipality in term of legislation;
  • A spatial development framework which includes the provision of basic guidelines for land use management system for the municipality;
  • The council’s operational strategies;
  • Financial plan which must include budget projections; and
  • Key performance indicators and performance targets.

In order to satisfy the outcome for a financial plan from the IDP, the associated cost for infrastructure within the IDPs, municipalities should develop the Comprehensive Infrastructure Plans. These plans are defined as a plan that provides a holistic overview of the levels of infrastructure access, demand for services, performance of existing services (functionality), a vision of future performance scenarios, the risks, priorities, funding and tariff implications as a strategic input into IDPs. The plan will enable municipalities to:

  • Rank and prioritise projects and determine budget based on a holistic views of local needs and priorities;
  • Access optimum funding arrangements;
  • Determine capital and operation budget; and
  • Demonstrate their ability to effectively manage and maintain infrastructure investments.

7Asset Management

There is a need to manage our infrastructure assets. In order to manage the assets effectively, municipalities must develop:

  • Asset management policies which provide overarching principles and organizational objectives for managing the municipality’s infrastructure to give effect to it’s vision;
  • Asset Management Strategies which indicate the process the organization will use to put the policy into effect, providing criteria, measures to be taken to manage risks;
  • Infrastructure Asset Management Plans which set out the sector needs and priorities, levels of service, future demand, capital works and operations and maintenance programmes and strategies and funding plans.
  • Comprehensive Infrastructure Plans (CIPs) which consider cross sector priorities and issues, and presents a holistic long term plan for a municipality’s infrastructure assets;
  • Infrastructure Asset Management Systems which provides for the day-to-day operations of infrastructure asset.
  • Infrastructure Asset Management Registers to keep record of all information of assets in a municipality. Over the long term this should be an electronic system and will also be able to refer to the geographical location of assets and possible their functionality.

The CIP embraces both infrastructure asset management and infrastructure investment planning processes. One of the most important outcomes of the CIP is an infrastructure capital budget that is factored into the three-year capital plan that municipalities are expected to submit to National Treasury by 30 June of each year. The infrastructure capital budget should be divided into capital and operational budgets. Hence, it is expected of the Council of a municipality to spend money on a capital project only if money for the project is appropriated in the capital budget. Municipalities must consider the projected cost covering all financial years until the project is operational and the future operational costs and revenue on the project, including municipal tax and tariff implications

Municipalities must develop Infrastructure Asset Management Policy Strategy, Infrastructure Asset Management Plan including registers. The objective of managing the infrastructure assets should be to provide affordable levels of service that have been agreed with customers in the most cost-effective way for present and future customers. This involves life-cycle decision-making, meaning that:

  • Municipalities must have strategies for managing assets across the lifecycle i.e. constructing and ignoring them until they dismally fail is not accepted.
  • Lifecycle strategies take into account continuous audit of the functionality of assets and employ risk management strategies so as to manage these to minimize exposure over the infrastructure asset lifecycle.
  • Decisions are made on when to create, operate, maintain.

8Financing