REPUBLIC OF SOUTH AFRICA

DIVISION OF REVENUE BILL

(As introduced in the National Assembly (proposed section 76); explanatory summary of
Bill published in Government Gazette No. 41432 of 9 February 2018)
(The English text is the offıcial text of the Bill)

(MINISTER OF FINANCE)

[B 2—2018] ISBN 978-1-4850-0443-1

No. of copies printed .........................................800

 BILL
To provide for the equitable division of revenue raised nationally among the
national, provincial and local spheres of government for the 2018/19 financial year,
the determination of each province’s equitable share and allocations to provinces,
local government and municipalities from national government’s equitable share
and the responsibilities of all three spheres pursuant to such division and
allocations; and to provide for matters connected therewith.

PREAMBLE

WHEREAS section 214(1) of the Constitution of the Republic of South Africa, 1996,
requires an Act of Parliament to provide for—
(a) the equitable division of revenue raised nationally among the national,
provincial and local spheres of government;
(b) the determination of each province’s equitable share of the provincial share of
that revenue; and
(c) any other allocations to provinces, local government or municipalities from
the national government’s share of that revenue, and any conditions on which
those allocations may be made; and

WHEREAS section 7(3) of the Money Bills Amendment Procedure and Related
Matters Act, 2009 (Act No. 9 of 2009), requires the introduction of the Division of
Revenue Bill at the same time as the Appropriation Bill is introduced,

E IT THEREFORE ENACTED by the Parliament of the Republic of South Africa,

B as follows:—

ARRANGEMENT OF SECTIONS

Sections

CHAPTER 1 5

INTERPRETATION AND OBJECTS OF ACT

1. Interpretation
2. Objects of Act

CHAPTER 2

EQUITABLE SHARE ALLOCATIONS 10

3. Equitable division of revenue raised nationally among spheres of government

4. Equitable division of provincial share among provinces
5. Equitable division of local government share among municipalities
6. Shortfalls and excess revenue
 3

CHAPTER 3

CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES

Part 1

Conditional allocations

7. Conditional allocations to provinces 5

8. Conditional allocations to municipalities

Part 2

Duties of accounting officers in respect of Schedule 4 to 7 allocations

9. Duties of transferring officer in respect of Schedule 4 allocations

10. Duties of transferring officer in respect of Schedule 5 or 6 allocations 10
11. Duties of receiving officer in respect of Schedule 4 allocations
12. Duties of receiving officer in respect of Schedule 5 or 7 allocations
13. Duties of receiving officer in respect of infrastructure conditional allocations to
provinces
14. Infrastructure conditional allocations to metropolitan municipalities 15
15. Duties in respect of annual financial statements and annual reports for 2018/19

Part 3

Matters relating to Schedule 4 to 7 allocations

16. Publication of allocations and frameworks

17. Expenditure in terms of purpose and subject to conditions 20
18. Withholding of allocations
19. Stopping of allocations
20. Reallocation of funds
21. Conversion of allocations
22. Unspent conditional allocations 25

CHAPTER 4

MATTERS RELATING TO ALL ALLOCATIONS

23. Payment requirements

24. Amendment of payment schedule
25. Transfers made in error or fraudulently 30
26. New allocations during financial year and Schedule 7 allocations
27. Preparations for 2019/20 financial year and 2020/21 financial year
28. Transfers before commencement of Division of Revenue Act for 2019/20
financial year

CHAPTER 5 35

DUTIES AND POWERS OF MUNICIPALITIES, PROVINCIAL TREASURIES

AND NATIONAL TREASURY

29. Duties of municipalities

30. Duties and powers of provincial treasuries
31. Duties and powers of National Treasury 40

CHAPTER 6

GENERAL

32. Liability for costs incurred in violation of principles of cooperative governance

and intergovernmental relations
 4

33. Irregular expenditure

34. Financial misconduct
35. Delegations and assignments
36. Exemptions
37. Regulations 5
38. Repeal of laws and savings
39. Short title and commencement

SCHEDULE 1

Equitable division of revenue raised nationally among the three spheres of government

SCHEDULE 2 10

Determination of each province’s equitable share of the provincial sphere’s share of

revenue raised nationally (as a direct charge against the National Revenue Fund)

SCHEDULE 3

Determination of each municipality’s equitable share of the local government sphere’s

share of revenue raised nationally 15

SCHEDULE 4

Part A

Allocations to provinces to supplement the funding of programmes or functions funded

from provincial budgets

Part B 20

Allocations to municipalities to supplement the funding of programmes or functions

funded from municipal budgets

SCHEDULE 5

Part A

Specific purpose allocations to provinces 25

Part B

Specific purpose allocations to municipalities

SCHEDULE 6

Part A

Allocations-in-kind to provinces for designated special programmes 30

Part B

Allocations-in-kind to municipalities for designated special programmes

SCHEDULE 7

Part A

Allocations to provinces for immediate disaster response 35

Part B

Allocations to municipalities for immediate disaster response

 5

CHAPTER 1

INTERPRETATION AND OBJECTS OF ACT

Interpretation

1. (1) In this Act, unless the context indicates otherwise, any word or expression to
which a meaning has been assigned in the Public Finance Management Act or the 5
Municipal Finance Management Act has the meaning assigned to it in the Act in
question, and—
‘‘accreditation’’ means accreditation of a municipality, in terms of section 10(2) of
the Housing Act, 1997 (Act No. 107 of 1997), to administer national housing
programmes, read with Part 3 of the National Housing Code, 2009 (Financial 10
Interventions: Accreditation of Municipalities);
‘‘allocation’’ means the equitable share allocation to the national sphere of
government in Schedule 1, a province in Schedule 2 or a municipality in Schedule
3, or a conditional allocation;
‘‘category A, B or C municipality’’ means a category A, B or C municipality 15
envisaged in section 155(1) of the Constitution;
‘‘conditional allocation’’ means an allocation to a province or municipality from
the national government’s share of revenue raised nationally, envisaged in section
214(1)(c) of the Constitution, as set out in Schedule 4, 5, 6 or 7;
‘‘Constitution’’ means the Constitution of the Republic of South Africa, 1996; 20
‘‘corporation for public deposits account’’ means a bank account of the
Provincial Revenue Fund held with the Corporation for Public Deposits,
established by the Corporation for Public Deposits Act, 1984 (Act No. 46 of 1984);
‘‘disaster’’ means a national, provincial or local state of disaster declared in terms
of section 27, 41 or 55 of the Disaster Management Act, 2002 (Act No. 57 of 2002); 25
‘‘Education Infrastructure Grant’’ means the Education Infrastructure Grant
referred to in Part A of Schedule 4;
‘‘financial year’’ means, in relation to—
(a) a national or provincial department, the year ending 31 March; or
(b) a municipality, the year ending 30 June; 30
‘‘framework’’ means the conditions and other information in respect of a
conditional allocation published in terms of section 16 or 26;
‘‘Health Facility Revitalisation Grant’’ means the Health Facility Revitalisation
Grant referred to in Part A of Schedule 5;
‘‘housing emergency’’ means a housing emergency as defined in paragraphs 2.3.1 35
(a) and (b) of the Emergency Housing Programme contained in the National
Housing Code published in terms of section 4 of the Housing Act, 1997 (Act
No. 107 of 1997);
‘‘Human Settlements Development Grant’’ means the Human Settlements
Development Grant referred to in Part A of Schedule 5; 40
‘‘Integrated City Development Grant’’ means the Integrated City Development
Grant referred to in Part B of Schedule 4;
‘‘Integrated National Electrification Programme Grant’’ means the Integrated
National Electrification Programme Grant referred to in Part B of Schedule 5 or
Part B of Schedule 6; 45
‘‘integration zone’’ means the integration zone as defined in the Built Environ-
ment Performance Plan Guideline issued by the National Treasury;
‘‘legislation’’ means national legislation or provincial legislation as defined in
section 239 of the Constitution;
‘‘level one accreditation’’ means accreditation to render beneficiary management, 50
subsidy budget planning and allocation, and priority programme management and
administration, of national housing programmes;
‘‘level two accreditation’’ means accreditation to render full programme
management and administration of all housing instruments and national housing
programmes in addition to the responsibilities under a level one accreditation; 55
‘‘Maths, Science and Technology Grant’’ means the Maths, Science and
Technology Grant referred to in Part A of Schedule 5;
‘‘medium term expenditure framework’’ means a budgeting framework applied
by the National Treasury which—
(a) translates government policies and plans into a multi-year spending plan; and 60
 6

(b) promotes transparency, accountability and effective public financial

management;
‘‘metropolitan municipality’’ means a metropolitan municipality as defined in
section 1 of the Municipal Structures Act;
‘‘Municipal Finance Management Act’’ means the Local Government: 5
Municipal Finance Management Act, 2003 (Act No. 56 of 2003);
‘‘Municipal Structures Act’’ means the Local Government: Municipal Structures
Act, 1998 (Act No. 117 of 1998);
‘‘Municipal Systems Act’’ means the Local Government: Municipal Systems Act,
2000 (Act No. 32 of 2000); 10
‘‘Neighbourhood Development Partnership Grant’’ means the Neighbourhood
Development Partnership Grant referred to in Part B of Schedule 5 or Part B of
Schedule 6;
‘‘organ of state’’ means an organ of state as defined in section 239 of the
Constitution; 15
‘‘overpayment’’ means the transfer of more than the allocated amount of an
allocation or the transfer of an allocation in excess of the applicable amount in a
payment schedule;
‘‘payment schedule’’ means a schedule which sets out—
(a) the amount of each transfer of a provincial equitable share or a conditional 20
allocation for a province or municipality to be transferred in terms of this Act;
(b) the date on which each transfer must be paid; and
(c) to whom, and to which bank account, each transfer must be paid;
‘‘prescribe’’ means prescribe by regulation in terms of section 37;
‘‘primary bank account’’, in relation to— 25
(a) a province, means a bank account of the Provincial Revenue Fund, envisaged
in section 21(2) of the Public Finance Management Act and which the
accounting officer of the provincial treasury has certified to the National
Treasury; or
(b) a municipality, means the bank account of the municipality as determined in 30
terms of section 8 of the Municipal Finance Management Act;
‘‘Provincial Roads Maintenance Grant’’ means the Provincial Roads
Maintenance Grant referred to in Part A of Schedule 4;
‘‘Public Finance Management Act’’ means the Public Finance Management Act,
1999 (Act No. 1 of 1999); 35
‘‘Public Transport Network Grant’’ means the Public Transport Network Grant
referred to in Part B of Schedule 5;
‘‘Public Transport Operations Grant’’ means the Public Transport Operations
Grant referred to in Part A of Schedule 4;
‘‘quarter’’ means, in relation to— 40
(a) a national or provincial department, the period from—
(i) 1 April to 30 June;
(ii) 1 July to 30 September;
(iii) 1 October to 31 December; or
(iv) 1 January to 31 March; or 45
(b) a municipality—
(i) 1 July to 30 September;
(ii) 1 October to 31 December;
(iii) 1 January to 31 March; or
(iv) 1 April to 30 June; 50
‘‘receiving officer’’ means, in relation to—
(a) a Schedule 4, 5 or 7 allocation transferred to a province, the accounting officer
of the provincial department which receives that allocation or a portion
thereof for expenditure through an appropriation from its Provincial Revenue
Fund; or 55
(b) a Schedule 4, 5 or 7 allocation transferred to a municipality, the accounting
officer of the municipality;
‘‘receiving provincial department’’, in relation to a Schedule 4, 5 or 7 allocation
transferred to a province, means the provincial department which receives that
allocation or a portion thereof for expenditure through an appropriation from its 60
Provincial Revenue Fund;
‘‘School Infrastructure Backlogs Grant’’ means the School Infrastructure
Backlogs Grant referred to in Part A of Schedule 6;
 7

‘‘this Act’’ includes any framework or allocation published, or any regulation

made, in terms of this Act;
‘‘transferring officer’’ means the accounting officer of a national department that
transfers a Schedule 4, 5 or 7 allocation to a province or municipality or spends a
Schedule 6 allocation on behalf of a province or municipality; 5
‘‘Urban Settlements Development Grant’’ means the Urban Settlements
Development Grant referred to in Part B of Schedule 4; and
‘‘working day’’ means any day except a Saturday, a Sunday or a public holiday as
defined in the Public Holidays Act, 1994 (Act No. 36 of 1994).
(2) Any approval, certification, decision, determination, instruction, notification, 10
notice or request in terms of this Act must be in writing.

Objects of Act

2. The objects of this Act are—

(a) as required by section 214(1) of the Constitution, to provide for—
(i) the equitable division of revenue raised nationally among the three 15
spheres of government;
(ii) the determination of each province’s equitable share of the provincial
share of that revenue; and
(iii) other allocations to provinces, local government or municipalities from
the national government’s share of that revenue and conditions on which 20
those allocations are made;
(b) to promote predictability and certainty in respect of all allocations to
provinces and municipalities, in order that provinces and municipalities may
plan their budgets over a multi-year period and thereby promote better
coordination between policy, planning and budgeting; and 25
(c) to promote transparency and accountability in the resource allocation process,
by ensuring that all allocations, except Schedule 6 allocations, are reflected on
the budgets of provinces and municipalities and the expenditure of conditional
allocations is reported on by the receiving provincial departments and
municipalities. 30

CHAPTER 2

EQUITABLE SHARE ALLOCATIONS

Equitable division of revenue raised nationally among spheres of government

3. (1) Revenue raised nationally in respect of the 2018/19 financial year must be
divided among the national, provincial and local spheres of government as set out in 35
Column A of Schedule 1.
(2) The envisaged division among the national, provincial and local spheres of
government of revenue anticipated to be raised nationally in respect of the 2019/20
financial year and the 2020/21 financial year, and which is subject to the Division of
Revenue Acts for those financial years, is set out in Column B of Schedule 1. 40

Equitable division of provincial share among provinces

4. (1) Each province’s equitable share of the provincial share of revenue raised
nationally in respect of the 2018/19 financial year is set out in Column A of Schedule 2.
(2) The envisaged equitable share for each province of revenue anticipated to be
raised nationally in respect of the 2019/20 financial year and the 2020/21 financial year, 45
and which is subject to the Division of Revenue Acts for those financial years, is set out
in Column B of Schedule 2.
(3) The National Treasury must transfer each province’s equitable share referred to in
subsection (1) to the corporation for public deposits account of the province in
accordance with the payment schedule determined in terms of section 23. 50
 8

Equitable division of local government share among municipalities

5. (1) Each municipality’s equitable share of local government’s share of revenue

raised nationally in respect of the 2018/19 financial year is set out in Column A of
Schedule 3.
(2) The envisaged equitable share for each municipality of revenue anticipated to be 5
raised nationally in respect of the 2019/20 financial year and the 2020/21 financial year,
and which is subject to the Division of Revenue Acts for those financial years, is set out
in Column B of Schedule 3.
(3) The national department responsible for local government must transfer a
municipality’s equitable share referred to in subsection (1) to the primary bank account 10
of the municipality in three transfers on 9 July 2018, 3 December 2018 and 18 March
2019, in the amounts determined in terms of section 23(2).

Shortfalls and excess revenue

6. (1) If the actual revenue raised nationally in respect of the 2018/19 financial year
falls short of the anticipated revenue set out in Column A of Schedule 1, the national 15
government bears the shortfall.
(2) If the actual revenue raised nationally in respect of the 2018/19 financial year
exceeds the anticipated revenue set out in Column A of Schedule 1, the excess accrues
to the national government, and may be used to reduce borrowing or pay debt as part of
its share of revenue raised nationally. 20
(3) A portion of national government’s equitable share or excess revenue envisaged in
subsection (2), may be appropriated through the applicable legislation envisaged in
section 12 of the Money Bills Amendment Procedure and Related Matters Act, 2009
(Act No. 9 of 2009), to make further allocations to—
(a) national departments; or 25
(b) provinces or municipalities.

CHAPTER 3

CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES

Part 1

Conditional allocations 30

Conditional allocations to provinces

7. (1) Conditional allocations to provinces for the 2018/19 financial year from the
national government’s share of revenue raised nationally are set out in—
(a) Part A of Schedule 4, specifying allocations to provinces to supplement the
funding of programmes or functions funded from provincial budgets; 35
(b) Part A of Schedule 5, specifying specific-purpose allocations to provinces;
(c) Part A of Schedule 6, specifying allocations-in-kind to provinces for desig-
nated special programmes; and
(d) Part A of Schedule 7, specifying funds that are not allocated to specific
provinces, that may be released to provinces to fund an immediate response to 40
a disaster or housing emergency.
(2) An envisaged division of conditional allocations to provinces from the national
government’s share of revenue anticipated to be raised nationally for the 2019/20
financial year and the 2020/21 financial year, which is subject to the annual Division of
Revenue Acts for those years, is set out in Column B of the Schedules referred to in 45
subsection (1).

Conditional allocations to municipalities

8. (1) Conditional allocations to municipalities in respect of the 2018/19 financial year

from the national government’s share of revenue raised nationally are set out in—
(a) Part B of Schedule 4, specifying allocations to municipalities to supplement 50
the funding of functions funded from municipal budgets;
 9

(b) Part B of Schedule 5, specifying specific-purpose allocations to municipali-

ties;
(c) Part B of Schedule 6, specifying allocations-in-kind to municipalities for
designated special programmes; and
(d) Part B of Schedule 7, specifying funds that are not allocated to specific 5
municipalities that may be released to municipalities to fund an immediate
response to a disaster or housing emergency.
(2) An envisaged division of conditional allocations to municipalities from the
national government’s share of revenue anticipated to be raised nationally for the
2019/20 financial year and the 2020/21 financial year, which is subject to the annual 10
Division of Revenue Acts for those years, is set out in Column B of the Schedules
referred to in subsection (1).
(3) If approved by the National Treasury after consultation with the national
Department of Transport, allocations for specific transport contracts for capital projects
from the envisaged conditional allocations for the Public Transport Network Grant listed 15
in Column B of Part B of Schedule 5, may not be altered downwards in the Division of
Revenue Acts for the 2019/20 financial year and 2020/21 financial year.
(4) (a) A municipality that intends to pledge a conditional allocation, or a portion
thereof, as security for any obligations in terms of section 48 of the Municipal Finance
Management Act, must, in addition to notifying the National Treasury in terms of 20
section 46(3) of that Act, notify the transferring officer and the relevant provincial
treasury of that intention and provide the transferring officer and National Treasury at
least 21 days to comment before obtaining the approval of the municipal council.
(b) A municipality must submit financial and non-financial reports, in the format and
on the dates determined by the National Treasury, for any project pledged to be partially 25
or fully funded by using a conditional allocation, or a portion thereof, as security as
envisaged in paragraph (a).

Part 2

Duties of accounting officers in respect of Schedule 4 to 7 allocations

Duties of transferring officer in respect of Schedule 4 allocations 30

9. (1) The transferring officer of a Schedule 4 allocation must—

(a) ensure that transfers to all provinces and municipalities are—
(i) deposited only into the primary bank account of the relevant province or
municipality; and
(ii) made in accordance with the payment schedule determined in terms of 35
section 23, unless allocations are withheld or stopped in terms of section
18 or 19;
(b) monitor information on financial and non-financial performance of
programmes partially or fully funded by an allocation in Part A of Schedule 4,
in accordance with subsection (2) and the applicable framework; 40
(c) monitor information on financial and non-financial performance of the Urban
Settlements Development Grant and Integrated City Development Grant
against the capital budget and the service delivery and budget implementation
plan;
(d) comply with the applicable framework; 45
(e) submit a quarterly financial and non-financial performance report within 45
days after the end of each quarter to the National Treasury in terms of the
applicable framework; and
(f) evaluate the performance of programmes funded or partially funded by the
allocation and submit such evaluations to the National Treasury within four 50
months after the end of the 2018/19 financial year applicable to a provincial
department or a municipality, as the case may be.
(2) Any monitoring programme or system that is used to monitor information on
financial and non-financial performance of a programme partially or fully funded by a
Schedule 4 allocation must— 55
(a) be approved by the National Treasury;
(b) not impose any excessive administrative responsibility on receiving officers
beyond the provision of standard management and budget information;
 10

(c) be compatible and integrated with and not duplicate other relevant national,
provincial and local systems; and
(d) support compliance with section 11(2).
(3) A transferring officer may only transfer the Urban Settlements Development Grant
or the Integrated City Development Grant to a recipient metropolitan municipality, if the 5
municipality has submitted a built environment performance plan in terms of section
14(1).

Duties of transferring officer in respect of Schedule 5 or 6 allocations

10. (1) The transferring officer of a Schedule 5 or 6 allocation must—

(a) not later than 14 days after this Act takes effect, certify to the National 10
Treasury that—
(i) any monitoring or system that is used, is compatible and integrated with
and does not duplicate other relevant national, provincial and local
systems; and
(ii) any plans required in terms of the framework of a Schedule 5 allocation 15
regarding the use of the allocation by—
(aa) a province, have been approved before the start of the financial year;
or
(bb) a municipality, shall be approved before the start of the financial
year; 20
(b) in respect of Schedule 5 allocations—
(i) transfer funds only after receipt of all information required to be
submitted by the receiving officer in terms of this Act and submission of
all relevant information to the National Treasury;
(ii) transfer funds in accordance with the payment schedule determined in 25
terms of section 23, unless allocations are withheld or stopped in terms of
section 18 or 19; and
(iii) deposit funds only into the primary bank account of the relevant province
or municipality; and
(c) ensure that all other provisions of this Act and the relevant framework for the 30
transfer of the allocation are complied with.
(2) The transferring officer must submit all relevant information and documentation
referred to in subsection (1)(a) to the National Treasury within 14 days after this Act
takes effect.
(3) A transferring officer, who has not complied with subsection (1), must transfer the 35
allocation in the manner instructed by the National Treasury, including transferring the
allocation as an unconditional allocation.
(4) Before making the first transfer of any allocation in terms of subsection (1)(b), the
transferring officer must take note of any notice in terms of section 31(1) containing the
details of the relevant primary bank accounts. 40
(5) The transferring officer of a Schedule 5 allocation to a municipality is responsible
for monitoring financial and non-financial performance information on programmes
funded by the allocation.
(6) The transferring officer of a Schedule 5 or 6 allocation must, as part of the
reporting envisaged in section 40(4)(c) of the Public Finance Management Act, submit 45
information, in the format determined by the National Treasury, for the month in
question, and for the 2018/19 financial year up to the end of that month, on—
(a) the amount of funds transferred to a province or municipality;
(b) the amount of funds for any province or municipality withheld or stopped in
terms of section 18 or 19, the reasons for the withholding or stopping and the 50
steps taken by the transferring officer and the receiving officer to deal with the
matters or causes that necessitated the withholding or stopping of the
payment;
(c) the actual expenditure incurred by the province or municipality in respect of
a Schedule 5 allocation; 55
(d) the actual expenditure incurred by the transferring officer in respect of a
Schedule 6 allocation;
(e) any matter or information that may be required by the relevant framework for
the particular allocation; and
(f) such other matters as the National Treasury may determine. 60
 11

(7) A transferring officer must submit to the National Treasury—

(a) a monthly provincial report on infrastructure expenditure partially or fully
funded by the Health Facility Revitalisation Grant, National Health Insurance
Indirect Grant, School Infrastructure Backlogs Grant or Maths, Science and
Technology Grant within 22 days after the end of each month, in the format 5
determined by the National Treasury; and
(b) a quarterly performance report of all programmes partially or fully funded by
a Schedule 5 or 6 allocation within 45 days after the end of each quarter, in
accordance with the relevant framework.
(8) The transferring officer must evaluate the performance of all programmes partially 10
or fully funded by a Schedule 5 or 6 allocation and submit such evaluations to the
National Treasury within four months after the end of the 2018/19 financial year
applicable to a provincial department or a municipality, as the case may be.
(9) The transferring officer for the Public Transport Network Grant, Neighbourhood
Development Partnership Grant or Integrated National Electrification Programme Grant 15
to a metropolitan municipality—
(a) may only transfer the grant if the municipality has submitted a built
environment performance plan in terms of section 14(1); and
(b) must take into account that built environment performance plan when
monitoring and evaluating the performance of the municipality and assessing 20
envisaged plans and allocations for the municipality.
(10) The transferring officer of the Human Settlements Development Grant may only
transfer the grant to a province after the relevant receiving officer has complied with
section 12(6)(a) and (b).

Duties of receiving officer in respect of Schedule 4 allocations 25

11. (1) The receiving officer of a Schedule 4 allocation is responsible for—

(a) complying with the relevant framework for the Schedule 4 allocation; and
(b) the manner in which the Schedule 4 allocation received from a transferring
officer is allocated and spent.
(2) The receiving officer of a municipality must— 30
(a) ensure and certify to the National Treasury that the municipality—
(i) indicates each programme partially or fully funded by a Schedule 4
allocation in its annual budget and that the Schedule 4 allocation is
specifically and exclusively appropriated in that budget for utilisation
only according to the purpose of the allocation; and 35
(ii) makes public, in terms of section 21A of the Municipal Systems Act, the
conditions and other information in respect of the allocation, to facilitate
performance measurement and the use of required inputs and outputs;
(b) when submitting the municipality’s statements in terms of section 71 of the
Municipal Finance Management Act for September 2018, December 2018, 40
March 2019 and June 2019, report to the transferring officer, the relevant
provincial treasury and the National Treasury—
(i) in respect of the Urban Settlements Development Grant and the
Integrated City Development Grant, on financial performance against its
capital budget and the measures defined in its service delivery and budget 45
implementation plan; and
(ii) in respect of any other Schedule 4 allocation, on financial performance of
programmes partially or fully funded by the allocation; and
(c) within 30 days after the end of each quarter, report to the transferring officer
and the National Treasury— 50
(i) in respect of the Urban Settlements Development Grant and the
Integrated City Development Grant, on non-financial performance for
that quarter against the measures defined in its service delivery and
budget implementation plan; and
(ii) in respect of any other Schedule 4 allocation, on non-financial 55
performance of programmes partially or fully funded by the allocation.
(3) The National Treasury must make the report submitted to it in terms of subsection
(2)(b) or (c) available to the transferring officer of the Urban Settlements Development
Grant, Public Transport Network Grant and Integrated National Electrification
Programme Grant and the accounting officer of any other national department having 60
responsibilities relating to the applicable allocation.
 12

(4) The receiving officer of a provincial department must submit to the relevant
provincial treasury and the transferring officer—
(a) as part of the report required in section 40(4)(c) of the Public Finance
Management Act, reports on financial and non-financial performance of
programmes partially or fully funded by a Schedule 4 allocation; 5
(b) a quarterly non-financial performance report of programmes partially or fully
funded by a Schedule 4 allocation within 30 days after the end of each quarter;
and
(c) a monthly provincial report on infrastructure programmes partially or fully
funded by a Schedule 4 allocation within 15 days after the end of each month, 10
in the format determined by the National Treasury.
(5) The receiving officer must report on programmes partially or fully funded by a
Schedule 4 allocation against the relevant framework in its annual financial statements
and annual report.
(6) The receiving officer must evaluate the financial and non-financial performance of 15
the provincial department or municipality, as the case may be, in respect of programmes
partially or fully funded by a Schedule 4 allocation and submit such evaluation to the
transferring officer and the relevant provincial treasury within two months—
(a) in respect of a provincial department, after the end of the 2018/19 financial
year of the provincial department; and 20
(b) in respect of a municipality, after the end of the 2018/19 financial year of the
municipality.

Duties of receiving officer in respect of Schedule 5 or 7 allocations

12. (1) The receiving officer of a Schedule 5 or 7 allocation must ensure compliance
with the relevant framework. 25
(2) The relevant receiving officer must, in respect of a Schedule 5 or 7 allocation
transferred to—
(a) a province, as part of the report required in section 40(4)(c) of the Public
Finance Management Act, report on the matters referred to in subsection (3)
and submit a copy of that report to the relevant provincial treasury and the 30
transferring officer;
(b) a municipality, as part of the report required in terms of section 71 of the
Municipal Finance Management Act, report on the matters referred to in
subsection (4) and submit a copy of that report to the relevant provincial
treasury, the National Treasury and the relevant transferring officer; and 35
(c) a province or municipality, submit a quarterly non-financial performance
report within 30 days after the end of each quarter to the transferring officer
and the relevant provincial treasury.
(3) A report for a province in terms of subsection (2)(a) must set out for the month in
question and for the 2018/19 financial year up to the end of the month— 40
(a) the amount received by the province;
(b) the amount of funds stopped or withheld in terms of section 18 or 19 and the
reason for the stopping or withholding;
(c) the actual expenditure by the province in respect of Schedule 5 and 7
allocations; 45
(d) the amount transferred to any national or provincial public entity to implement
a programme funded by a Schedule 5 allocation on behalf of a province or to
assist the province in implementing the programme;
(e) the available figures regarding the expenditure by a public entity referred to in
paragraph (d); 50
(f) the extent of compliance with this Act and with the conditions of the allocation
provided for in its framework, based on the available information at the time
of reporting;
(g) an explanation of any material difficulties experienced by the province
regarding an allocation which has been received and a summary of the steps 55
taken to deal with such difficulties;
(h) any matter or information that may be determined in the framework for the
allocation; and
(i) such other matters and information as the National Treasury may determine.
 13

(4) A report for a municipality in terms of subsection (2)(b) must set out for the month
in question and for the 2018/19 financial year up to the end of the month—
(a) the amount received by the municipality;
(b) the amount of funds stopped or withheld in terms of section 18 or 19 and the
reason for the stopping or withholding; 5
(c) the extent of compliance with this Act and with the conditions of the allocation
or part of the allocation provided for in its framework;
(d) an explanation of any material problems experienced by the municipality
regarding an allocation which has been received and a summary of the steps
taken to deal with such problems; 10
(e) any matter or information that may be determined in the framework for the
allocation; and
(f) such other matters and information as the National Treasury may determine.
(5) The receiving officer must evaluate the financial and non-financial performance of
the provincial department or municipality, as the case may be, in respect of programmes 15
partially or fully funded by a Schedule 5 allocation and submit such evaluation to the
transferring officer and the relevant provincial treasury within two months after the end
of the 2018/19 financial year applicable to a provincial department or a municipality, as
the case may be.
(6) (a) The receiving officer of the Human Settlements Development Grant must, in 20
consultation with the transferring officer, publish in the Gazette within 14 days after this
Act takes effect, the planned expenditure from the Human Settlements Development
Grant, for the 2018/19 financial year, the 2019/20 financial year and the 2020/21
financial year per municipality with level one or level two accreditation.
(b) The planned expenditure must indicate the expenditure to be undertaken directly 25
by the province and transfers to each municipality.
(c) The receiving officer of the Human Settlements Development Grant may, by
notice in the Gazette, after taking into account the performance of the municipality and
after consultation with the affected municipality and in consultation with the transferring
officer, amend the planned expenditure for that municipality published in terms of 30
paragraph (a).

Duties of receiving officer in respect of infrastructure conditional allocations to

provinces

13. (1) The receiving officer of the Education Infrastructure Grant, Health Facility
Revitalisation Grant, Human Settlements Development Grant or Provincial Roads 35
Maintenance Grant must—
(a) submit to the relevant provincial treasury a list of all infrastructure projects
partially or fully funded by the relevant grant over the medium term
expenditure framework for tabling as part of the estimates of provincial
expenditure in the provincial legislature in the format determined by the 40
National Treasury;
(b) within seven days after the tabling in the legislature, submit the list to the
transferring officer and the National Treasury;
(c) after consultation with the provincial treasury and the transferring officer,
submit any amendments to the list, together with reasons for the amendments, 45
to the provincial treasury for tabling with the adjusted estimates of provincial
expenditure;
(d) within seven days after the tabling in the legislature, submit the amended list
to the transferring officer and the National Treasury;
(e) report on all infrastructure expenditure partially or fully funded by the 50
relevant grant to the transferring officer, relevant provincial treasury and the
National Treasury in the format and on the date determined by the National
Treasury;
(f) within 15 days after the end of each month, submit to the relevant provincial
treasury and transferring officer, a draft report on infrastructure programmes 55
partially or fully funded from those grants in the format determined by the
National Treasury;
(g) within 22 days after the end of each month, submit to the National Treasury,
a final report on infrastructure programmes partially or fully funded from
those grants; and 60
 14

(h) within two months after the end of the 2018/19 financial year—
(i) evaluate the financial and non-financial performance of the province in
respect of programmes partially or fully funded by the grant based on the
infrastructure budget of the province; and
(ii) submit the evaluation to the transferring officer, the relevant provincial 5
treasury and the National Treasury.
(2) The receiving officer of the Education Infrastructure Grant or Health Facility
Revitalisation Grant must—
(a) within 22 days after the end of each quarter, submit to the transferring officer,
the relevant provincial treasury and the National Treasury, a final report on the 10
filling of posts on the approved establishment for the infrastructure unit of the
affected provincial department; and
(b) ensure that projects comply with infrastructure delivery management best
practice standards and guidelines, as identified and approved by the National
Treasury. 15

Infrastructure conditional allocations to metropolitan municipalities

14. (1) The receiving officer of a metropolitan municipality must, by 31 May 2018,
submit to the National Treasury a built environment performance plan that includes all
projects partially or fully funded by—
(a) the Integrated City Development Grant, Urban Settlements Development 20
Grant, Public Transport Network Grant, Neighbourhood Development
Partnership Grant or Integrated National Electrification Programme Grant
referred to in Part B of Schedule 5; and
(b) money allocated for the Human Settlements Development Grant received
from a province. 25
(2) The built environment performance plan, referred to in subsection (1), must—
(a) be in the format determined by the National Treasury, including information
on the project pipeline for catalytic urban development projects;
(b) demonstrate that the planned expenditure in the municipality’s integration
zones from all the grants referred to in subsection (1)(a) collectively, increases 30
annually; and
(c) be approved by the relevant municipal council.
(3) The National Treasury must, within seven days after the submission in terms of
subsection (1), make available each built environment performance plan to all affected
transferring officers and provincial departments. 35
(4) (a) The receiving officer must report in its annual financial statements on the
expenditure from each of the grants mentioned in subsection (1)(a) in each integration
zone of the municipality against its built environment performance plan.
(b) The transferring officer of the Integrated National Electrification Programme
Grant referred to in Part B of Schedule 6 must report in its annual financial statements 40
on the expenditure in each integration zone of every municipality against the built
environment performance plan of the municipality.

Duties in respect of annual financial statements and annual reports for 2018/19

15. (1) The 2018/19 financial statements of a national department responsible for
transferring an allocation in Schedule 4, 5 or 7 must, in addition to any requirement of 45
any other legislation—
(a) indicate the total amount of that allocation transferred to a province or
municipality;
(b) indicate any transfer withheld or stopped in terms of section 18 or 19 in
respect of each province or municipality and the reason for the withholding or 50
stopping;
(c) indicate any transfer not made in accordance with the payment schedule or
amended payment schedule, unless withheld or stopped in terms of section 18
or 19, and the reason for the non-compliance;
(d) indicate any reallocations by the National Treasury in terms of section 20; 55
(e) certify that all transfers to a province or municipality were deposited into the
primary bank account of a province or municipality; and
(f) indicate the funds, if any, used for the administration of the allocation by the
receiving officer.
 15

(2) The 2018/19 annual report of a national department responsible for transferring an
allocation in Schedule 4, 5 or 7 must, in addition to any requirement of any other
legislation indicate—
(a) the reasons for the withholding or stopping of all transfers to a province or
municipality in terms of section 18 or 19; 5
(b) the extent that compliance with this Act by provinces or municipalities was
monitored;
(c) the extent that the allocation achieved its objectives and outputs; and
(d) any non-compliance with this Act, and the steps taken to address the
non-compliance. 10
(3) The 2018/19 financial statements of a provincial department responsible for
receiving an allocation in Schedule 4, 5 or 7 must, in addition to any requirement of any
other legislation—
(a) indicate the total amount of all allocations received;
(b) indicate the total amount of actual expenditure on each Schedule 5 or 7 15
allocation; and
(c) certify that all transfers of allocations in Schedules 4, 5 and 7 to the province
were deposited into the primary bank account of the province.
(4) The 2018/19 annual report of a provincial department receiving an allocation in
Schedule 4, 5 or 7 must, in addition to any requirement of any other legislation— 20
(a) indicate the extent that the provincial department complied with this Act;
(b) indicate the steps taken to address non-compliance with this Act;
(c) indicate the extent that the allocation achieved its objectives and outputs;
(d) contain any other information that may be specified in the framework for the
allocation; and 25
(e) contain such other information as the National Treasury may determine.
(5) The 2018/19 financial statements and annual report of a municipality receiving an
allocation in Schedule 4, 5 or 7 must be prepared in accordance with the Municipal
Finance Management Act.
(6) The National Treasury may determine how transferring officers and receiving 30
officers must report on conditional allocations to municipalities within 30 days after the
end of each quarter to facilitate the audit of the allocations for the 2018/19 financial year.

Part 3

Matters relating to Schedule 4 to 7 allocations

Publication of allocations and frameworks 35

16. (1) The National Treasury must, within 14 days after this Act takes effect, publish
by notice in the Gazette—
(a) the conditional allocations per municipality for Part B of Schedule 5
allocations;
(b) the indicative conditional allocations per province for Part A of Schedule 6 40
allocations and per municipality for Part B of Schedule 6 allocations; and
(c) the framework for each conditional allocation in Schedules 4 to 7.
(2) For purposes of correcting an error or omission in an allocation or framework
published in terms of subsection (1)(a) or (c), the National Treasury must—
(a) on its initiative and after consultation with the relevant transferring officer; or 45
(b) at the written request of the relevant transferring officer,
by notice in the Gazette, amend the affected allocation or framework.
(3) The National Treasury may, after consultation with the relevant transferring officer
and by notice in the Gazette, amend an indicative conditional allocation in Schedule 6
published in terms of subsection (1)(b). 50
(4) Before amending a framework in terms of subsection (2), the National Treasury
must submit the proposed amendment to Parliament for comment for a period of 14 days
when Parliament is in session.
(5) An amendment in terms of subsection (2) or (3) takes effect on the date of
publication of the notice in the Gazette. 55
 16

Expenditure in terms of purpose and subject to conditions

17. (1) Despite a provision of other legislation to the contrary, an allocation referred
to in Schedules 4 to 7 may only be used for the purpose stipulated in the Schedule
concerned and in accordance with the applicable framework.
(2) A receiving officer may not transfer any portion of a Schedule 5 allocation to any 5
other organ of state for the performance of a function to be funded by the allocation,
unless before the transfer is made, the receiving officer and the organ of state agree to a
payment schedule, the receiving officer has notified the transferring officer and the
National Treasury of the agreed payment schedule and—
(a) the transfer— 10
(i) is approved in the budget for the receiving provincial department or
municipality; or
(ii) if not already so approved—
(aa) the receiving officer notifies the National Treasury that the purpose
of the transfer is not to artificially inflate the expenditure estimates 15
of the relevant provincial department or municipality and indicates
the reasons for the transfer; and
(bb) the National Treasury approves the transfer; or
(b) the transfer is for the payment for services or goods procured in accordance
with the supply chain management policy or procurement policy of the 20
relevant province or municipality and, if it is an advance payment, paragraph
(a)(ii) applies with the necessary changes.
(3) For purposes of the implementation of a Schedule 6 allocation to a municipality—
(a) Eskom Holdings Limited may receive funds directly from the transferring
officer of the Department of Energy; or 25
(b) a water board, as defined in section 1 of the Water Services Act, 1997 (Act No.
108 of 1997), may receive funds directly from the transferring officer of the
Department of Water and Sanitation.
(4) (a) For purposes of the Human Settlements Development Grant, a receiving
officer and a municipality with level one or two accreditation or functions assigned in 30
terms of section 126 of the Constitution to administer all aspects, including financial
administration of the national housing programme (herein called ‘‘assigned functions’’)
as at 1 April 2018, must, by the date determined by the National Treasury, comply with
subsection (2) by—
(i) entering into a payment schedule; and 35
(ii) submitting, through the relevant provincial treasury, the payment schedule to the
National Treasury.
(b) If a municipality receives accreditation after 1 April 2018, the National Treasury
may approve that paragraph (a) applies.
(c) If the transfer of the Human Settlements Development Grant to a municipality 40
with assigned functions is withheld or stopped in terms of section 18 or 19, the receiving
officer must request the National Treasury to amend the payment schedule in terms of
section 24.
(5) If a function which is partially or fully funded by a conditional allocation to a
province is assigned to a municipality, as envisaged in section 10 of the Municipal 45
Systems Act—
(a) the funds from the conditional allocation for the province for the function
must be stopped in terms of section 19 and reallocated in terms of section 20
to the municipality which has been assigned the function;
(b) if possible, the province must finalise any project or fulfil any contract 50
regarding the function before the date the function is assigned and, if not
finalised, the province must notify the relevant municipality and the National
Treasury;
(c) any project or contract regarding the function not finalised or fulfilled at the
date at which the function is assigned, must be subjected to an external audit 55
and the province and the municipality must enter into an agreement to
complete the project or fulfil the contract through ceding it to the
municipality;
(d) money that is retained by the province for any contract related to the function
that is not ceded to the municipality must be spent by 31 March 2019 and shall 60
not be available in terms of section 30 of the Public Finance Management Act
or section 22(2);
 17

(e) the receiving officer of the province must submit to the transferring officer and
the National Treasury a list of liabilities attached to the function, that were not
transferred to the municipality, within seven days after the function is
assigned to provide for the adjustment of the applicable allocations; and
(f) the receiving officer of the municipality must, within one month from the date 5
of the stopping of funds in paragraph (a), submit to the transferring officer a
revised plan for its planned expenditure.

Withholding of allocations

18. (1) Subject to subsections (2) and (3), a transferring officer may withhold the
transfer of a Schedule 4 or 5 allocation, or any portion thereof, for a period not exceeding 10
30 days, if—
(a) the province or municipality does not comply with any provision of this Act;
(b) roll-overs of conditional allocations approved by the National Treasury in
terms of section 22 have not been spent; or
(c) a satisfactory explanation is not given for significant under-expenditure on 15
previous transfers during the 2018/19 financial year.
(2) If an allocation is withheld in terms of subsection (1), it suspends the applicable
payment schedule approved in terms of section 23(3) until it is amended in terms of
section 24.
(3) The amount withheld in terms of this section in the case of the Health Professions 20
Training and Development Grant or the National Tertiary Services Grant listed in Part A
of Schedule 4 may not exceed five per cent of the next transfer as contained in the
relevant payment schedule.
(4) A transferring officer must, at least seven working days before withholding an
allocation in terms of subsection (1)— 25
(a) give the relevant receiving officer—
(i) notice of the intention to withhold the allocation; and
(ii) an opportunity to submit written representations as to why the allocation
should not be withheld; and
(b) inform the relevant provincial treasury and the National Treasury, and in 30
respect of any conditional allocation to a municipality, also the provincial
department responsible for local government.
(5) A notice envisaged in subsection (4) must include the reasons for withholding the
allocation and the intended duration of the withholding to inform the amendment of the
payment schedule in terms of section 24. 35
(6) (a) The National Treasury may instruct, or approve a request from, the transferring
officer to withhold an allocation in terms of subsection (1) for a period longer than 30
days, but not exceeding 120 days, if the withholding shall—
(i) facilitate compliance with this Act; or
(ii) minimise the risk of under-spending by the relevant provincial department or 40
municipality.
(b) When requesting the withholding of an allocation in terms of this subsection, a
transferring officer must submit to the National Treasury proof of compliance with
subsection (4) and any representations received from the receiving officer.
(c) The transferring officer must again comply with subsection (4) when the National 45
Treasury instructs or approves a request by the transferring officer in terms of
paragraph (a).

Stopping of allocations

19. (1) Despite section 18, the National Treasury may, in its discretion or on request
of a transferring officer or a receiving officer stop the transfer of a Schedule 4 or 5 50
allocation, or a portion thereof, to a province or municipality—
(a) in the case of—
(i) a province, if a serious or persistent material breach of this Act, as
envisaged in section 216(2) of the Constitution, occurs; or
(ii) a municipality, if— 55
(aa) a serious or persistent material breach of this Act, as envisaged in
section 216(2) of the Constitution, read with section 38(1)(b)(i) of
the Municipal Finance Management Act, occurs; or
 18

(bb) a breach or failure to comply, as envisaged in section 38(1)(b)(ii) of

the Municipal Finance Management Act, occurs;
(b) if the National Treasury anticipates that a province or municipality shall
substantially underspend on the allocation, or any programme, partially or
fully funded by the allocation, in the 2018/19 financial year; or 5
(c) for purposes of the assignment of a function from a province to a municipality,
as envisaged in section 10 of the Municipal Systems Act.
(2) The National Treasury must, before stopping an allocation in terms of subsection
(1)(a)(i) or (b)—
(a) comply with the procedures in section 18(4)(a); and 10
(b) inform the relevant provincial treasury of its intention to stop the allocation.
(3) The National Treasury must, before stopping an allocation in terms of subsection
(1)(a)(ii), comply with the applicable provisions of section 38 of the Municipal Finance
Management Act.
(4) The National Treasury must give notice in the Gazette of the stopping of an 15
allocation in terms of this section and include in the notice the effective date of, and
reason for, the stopping.
(5) (a) If—
(i) an allocation, or any portion thereof, is stopped in terms of subsection (1)(a) or
(b); and 20
(ii) the relevant transferring officer certifies in writing to the National Treasury that
the payment of an amount in terms of a statutory or contractual obligation is
overdue and the allocation, or a portion thereof, was intended for payment of the
amount,
the National Treasury may, by notice in the Gazette, approve that the allocation, or any 25
portion thereof, be used to pay that amount partially or fully.
(b) The utilisation of funds envisaged in this subsection is a direct charge against the
National Revenue Fund.

Reallocation of funds

20. (1) When a Schedule 4 or 5 allocation or a portion thereof is stopped in terms of 30

section 19(1)(a) or (b), the National Treasury may, after consultation with the
transferring officer and the relevant provincial treasury, determine the portion of the
allocation to be reallocated, as the same type of allocation as it was allocated originally,
to one or more provinces or municipalities, on condition that the allocation must be
spent by the end of the 2018/19 financial year. 35
(2) (a) When a Schedule 4 or 5 allocation, or a portion thereof, is stopped in terms of
section 19(1)(c), the National Treasury must, after consultation with the transferring
officer and the relevant provincial treasury, determine the portion of the allocation to be
reallocated, as the same type of allocation as it was allocated originally, to the affected
municipalities, on condition that the allocation must be spent by the end of the 2018/19 40
financial year.
(b) The portion of the allocation reallocated in terms of paragraph (a) is, with effect
from the notice in the Gazette in terms of subsection (3)(a), regarded as having been
converted to an allocation in Part B of the same Schedule it appears before the
reallocation. 45
(3) (a) If the transferring officer of a Schedule 6 allocation indicates in writing to the
National Treasury that a portion of the allocation is likely to be underspent, or needs to
be reprioritised to meet a priority, the National Treasury may, at the request of the
transferring officer, determine that the portion be reallocated, as the same type of
allocation as it was allocated originally, to a provincial department of another province 50
or to another municipality.
(b) Before requesting a reallocation, the transferring officer must notify the affected
provincial department or municipality of the proposed reallocation and give the
provincial department or municipality at least 14 days to provide comments and propose
changes. 55
(c) When making a request in terms of paragraph (a), the transferring officer must
submit to the National Treasury comments and proposed changes provided by the
affected provincial department or municipality in terms of paragraph (b).
(d) The reallocated portion must be spent by the end of the 2018/19 financial year.
 19

(e) The reallocated portion is regarded as having been converted to an allocation to the
relevant provincial department or municipality with effect from the date of the notice in
the Gazette in terms of subsection (4)(a).
(4) (a) The National Treasury must—
(i) give notice in the Gazette of a reallocation in terms of subsection (1), (2) or (3); 5
and
(ii) provide a copy of the notice to the transferring officer and each affected receiving
officer.
(b) The reallocation of a portion of an allocation not spent by the end of the 2018/19
financial year is eligible for a roll-over in terms of section 22(2). 10
(5) (a) When an intervention in terms of section 100 or 139 of the Constitution or
section 137, 139 or 150 of the Municipal Finance Management Act takes place, the
National Treasury may, despite subsection (1) and on such conditions as it may
determine, authorise in relation to—
(i) section 100 of the Constitution, the transferring officer to spend an allocation 15
stopped in terms of section 19 on behalf of the relevant province;
(ii) section 139 of the Constitution or section 137 or 139 of the Municipal Finance
Management Act, the intervening province to spend an allocation stopped in
terms of section 19 on behalf of the relevant municipality; or
(iii) section 150 of the Municipal Finance Management Act, the relevant transferring 20
officer to spend an allocation stopped in terms of section 19 on behalf of the
relevant municipality.
(b) An allocation that is spent by the transferring officer or intervening province
referred to in paragraph (a) must, for the purposes of this Act, be regarded as a Schedule
6 allocation from the date on which the authorisation is given. 25
(6) (a) On a joint request by the transferring officer and the National Disaster
Management Centre, established by section 8 of the Disaster Management Act, 2002
(Act No. 57 of 2002), the National Treasury may approve that a conditional allocation
in Schedule 4, 5 or 6, or a portion thereof, be reallocated to pay for the alleviation of the
impact of a disaster or the reconstruction or rehabilitation of infrastructure damage 30
caused by a disaster.
(b) Before the National Treasury approves a reallocation, the receiving officer of the
conditional allocation in Schedule 4 or 5 or the transferring officer of a Schedule 6
allocation must confirm that the affected funds are not committed in terms of any
statutory or contractual obligation. 35
(c) The reallocated funds must be used in the 2018/19 financial year in the same
sphere the allocation was originally made and for the same functional area that the
original allocation relates to.
(d) The transferring officer must determine the conditions for spending the reallocated
funds, after consultation with the National Disaster Management Centre and with the 40
approval of the National Treasury.
(e) Subsection (4) applies with the necessary changes to a reallocation in terms of this
subsection to another province or municipality.

Conversion of allocations

21. (1) If satisfied that the relevant provincial department or municipality has 45
demonstrated the capacity to implement projects, the National Treasury may, at the
request of the transferring officer and after consultation with the receiving officer,
convert any portion of—
(a) an allocation listed in Part B of Schedule 6 to one listed in Part B of Schedule
5; 50
(b) the School Infrastructure Backlogs Grant to the Education Infrastructure
Grant; or
(c) the National Health Grant listed in Part A of Schedule 6 to the Health Facility
Revitalisation Grant or the National Health Insurance Grant listed in Part A of
Schedule 5. 55
(2) The National Treasury may, after consultation with the relevant transferring
officer, receiving officer and provincial treasury, convert any portion of an allocation
listed in Part B of Schedule 5 to one listed in Part B of Schedule 6 if it is satisfied that—
(a) the conversion shall prevent under-expenditure or improve the level of service
delivery in respect of the allocation in question; 60
 20

(b) the affected national or provincial department or municipality has demon-

strated the capacity to implement projects;
(c) the transferring officer has made a demonstrable effort to strengthen the
capacity of the receiving officer to implement the allocation, but the receiving
officer is still not capable of fully meeting the requirements of the allocation; 5
and
(d) there is a history of poor performance in the previous two financial years for
allocations of the relevant grant to this receiving officer, including withhold-
ing and stopping of allocations.
(3) If satisfied that a municipality has failed to follow the procurement procedures 10
prescribed in terms of the Municipal Finance Management Act, the National Treasury
may, at the request of the transferring officer or in its discretion, after consultation with
the relevant transferring officer and receiving officer, convert any portion of an
allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6.
(4) (a) Any portion of an allocation, except the School Infrastructure Backlogs Grant, 15
converted in terms of subsections (1), (2) or (3) must—
(i) be used for the same province or municipality to which the allocation was
originally made; and
(ii) if—
(aa) possible, be used to implement the same project or projects that were 20
planned if the allocation had not been converted; or
(bb) not possible, the receiving officer must sign an agreement that defines any
new project to be funded, before it is implemented.
(b) The School Infrastructure Backlogs Grant must be used—
(i) for the same province to which the allocation was originally made; and 25
(ii) to implement the same project or projects that were planned if the allocation had
not been converted.
(5) The National Treasury must—
(a) give notice in the Gazette of a conversion in terms of subsection (1), (2) or (3);
and 30
(b) provide a copy of the notice to the transferring officer and each affected
receiving officer.
(6) A conversion in terms of subsection (1), (2) or (3) takes effect on the date of
publication of the notice in terms of subsection (5)(a).
(7) If an allocation listed in Part B of Schedule 7 is insufficient for a disaster or 35
housing emergency referred to in section 26(3)(a), the National Treasury may, after
consultation with or on the request of the relevant transferring officer, convert any
portion of—
(a) the Provincial Disaster Relief Grant listed in Part A of Schedule 7 to the
Municipal Disaster Relief Grant listed in Part B of Schedule 7; 40
(b) the Municipal Disaster Relief Grant listed in Part B of Schedule 7 to the
Provincial Disaster Relief Grant listed in Part A of Schedule 7;
(c) the Provincial Emergency Housing Grant listed in Part A of Schedule 7 to the
Municipal Emergency Housing Grant listed in Part B of Schedule 7; or
(d) the Municipal Emergency Housing Grant listed in Part B of Schedule 7 to the 45
Provincial Emergency Housing Grant listed in Part A of Schedule 7.
(8) The National Treasury must—
(a) in the notice published in terms of section 26(3)(c), include notification of the
conversion in terms of subsection (7) and the effective date referred to in
subsection (9); or 50
(b) provide a copy of the notice to the transferring officer.
(9) A conversion in terms of subsection (7) takes effect on the date that the National
Treasury approves it.

Unspent conditional allocations

22. (1) Despite a provision to the contrary in the Public Finance Management Act or 55
the Municipal Finance Management Act, any conditional allocation, or a portion
thereof, that is not spent at the end of the 2018/19 financial year reverts to the
National Revenue Fund, unless the roll-over of the allocation is approved in terms of
subsection (2).
 21

(2) The National Treasury may, at the request of a transferring officer, receiving
officer or provincial treasury, approve a roll-over of a conditional allocation to the
2019/20 financial year if the unspent funds are committed to identifiable projects.
(3) (a) The receiving officer must ensure that any funds that must revert to the
National Revenue Fund in terms of subsection (1), are paid into that Fund by the date 5
determined by the National Treasury.
(b) The receiving officer must—
(i) in the case of a provincial department, request the roll-over of unspent funds
through its provincial treasury; and
(ii) inform the transferring officer of all processes regarding the request. 10
(4) (a) The National Treasury may, subject to paragraphs (b) and (c), offset any funds
that must revert to the National Revenue Fund in terms of subsection (1), but not paid
into that Fund by the date determined in terms of subsection (3)(a)—
(i) in respect of a province, against future transfers of conditional allocations to that
province; or 15
(ii) in respect of a municipality, against future transfers of the equitable share or
conditional allocations to that municipality.
(b) Before any funds are offset in terms of paragraph (a), the National Treasury must
give the relevant transferring officer, province or municipality—
(i) notice of the intention to offset amounts against future allocations, the intended 20
amount to be offset against allocations, the intended date for the offsetting and
the reasons for the offsetting; and
(ii) an opportunity, within 14 days of receipt of the notice, to—
(aa) propose an alternative date for offsetting;
(bb) make written submissions why the full or a part of the amount should not 25
be offset; or
(cc) propose an alternative date or dates by which the amount or portions
thereof must be paid into the National Revenue Fund.
(c) The National Treasury must—
(i) accept the date or dates proposed in terms of paragraph (b)(ii)(aa) or (cc) or 30
determine a different date or dates; or
(ii) accept or reject the submissions made in terms of paragraph (b)(ii)(bb).
(5) (a) The National Treasury may amend the amount of the equitable share or a
conditional allocation offset in terms of subsection (4).
(b) If the amendment contemplated in paragraph (a) results in an underpayment to a 35
municipality—
(i) in respect of the equitable share of the municipality, the department responsible
for local government must, despite section 5(3), transfer the difference to the
municipality within 10 days; or
(ii) in respect of a conditional allocation of the municipality, the transferring officer 40
must, despite the payment schedule contemplated in section 23(3), transfer the
difference to the municipality within 10 days.
(c) If the amendment in terms of paragraph (a) results in an overpayment to a
municipality, section 25 applies.

CHAPTER 4 45

MATTERS RELATING TO ALL ALLOCATIONS

Payment requirements

23. (1) (a) The National Treasury must, after consultation with the provincial treasury,
determine the payment schedule for the transfer of a province’s equitable share
allocation. 50
(b) In determining the payment schedule, the National Treasury must take into
account the monthly expenditure commitments of provinces and seek to minimise risk
and debt servicing costs for national and provincial government.
(c) Despite paragraph (a), the National Treasury may advance funds to a province in
respect of its equitable share or a portion of it which has not yet fallen due for transfer 55
in terms of the payment schedule—
(i) for cash management purposes relating to the corporation for public deposits
account or when an intervention in terms of section 100 of the Constitution takes
place; and
 22

(ii) on such conditions as it may determine.

(d) Any advances in terms of paragraph (c) must be offset against transfers to the
province which would otherwise become due in terms of the payment schedule.
(2) (a) The National Treasury must, after consultation with the national department
responsible for local government, determine the amount of a municipality’s equitable 5
share allocation to be transferred on each date referred to in section 5(3).
(b) If an amount less than the amount approved in terms of paragraph (a) is paid to a
municipality, the difference must, despite section 5(3), be paid within 10 days after it
comes to the attention of the national department responsible for local government.
(c) Despite paragraph (a), the National Treasury may approve a request or direct that 10
the equitable share or a portion of the equitable share which has not yet fallen due for
transfer in terms of section 5(3), be advanced to a municipality—
(i) after consultation with the national department responsible for local govern-
ment;
(ii) for purposes of cash management in the municipality or an intervention in terms 15
of section 139 of the Constitution or section 137, 139 or 150 of the Municipal
Finance Management Act; and
(iii) on such conditions as it may determine.
(d) Any advance in terms of paragraph (c) must be offset against transfers to the
municipality which would otherwise become due in terms of section 5(3). 20
(3) (a) Subject to section 28(1), the National Treasury must, within 14 days after this
Act takes effect, approve the payment schedule for the transfer of an allocation listed in
Schedule 4 or 5 to a province or municipality.
(b) The transferring officer of a Schedule 4 or 5 allocation must submit a payment
schedule to the National Treasury for approval before the first transfer is made. 25
(c) Before the submission of a payment schedule in terms of paragraph (b), the
transferring officer must, in relation to a Schedule 4 or 5 allocation, consult the relevant
receiving officer.
(4) The transferring officer of a Schedule 4 or 5 allocation must provide the receiving
officer and the relevant provincial treasury with a copy of the approved payment 30
schedule before making the first transfer in terms thereof.
(5) The transfer of a Schedule 4 or 5 allocation to a municipality must accord with the
financial year of the municipality.
(6) Each transfer of an equitable share or a conditional allocation to a municipality in
terms of this Act must be made through a payment system provided by the National 35
Treasury.

Amendment of payment schedule

24. (1) (a) Subject to subsection (2), a transferring officer of a Schedule 4 or 5

allocation must, within seven days of the withholding or stopping of an allocation in
terms of section 18 or 19, submit an amended payment schedule to the National Treasury 40
for approval.
(b) No transfers may be made until the National Treasury has approved the amended
payment schedule.
(2) For purposes of better management of debt and cash-flow or addressing financial
mismanagement or financial misconduct or slow or accelerated expenditure, the 45
National Treasury may amend any payment schedule for an allocation listed in
Schedule 2, 4 or 5, after notifying, in the case of—
(a) an allocation to a province, the provincial treasury in question;
(b) an allocation to a municipality, the national department responsible for local
government; 50
(c) a Schedule 4 or 5 allocation, the relevant transferring officer.
(3) The amendment of a payment schedule in terms of subsection (1) or (2) must take
into account—
(a) the monthly expenditure commitments of provinces or municipalities;
(b) the revenue at the disposal of provinces or municipalities; and 55
(c) the minimisation of risk and debt servicing costs for all three spheres of
government.
(4) The transferring officer must immediately inform the receiving officer of any
amendment to a payment schedule in terms of subsection (1) or (2).
 23

Transfers made in error or fraudulently

25. (1) Despite a provision of other legislation to the contrary, the transfer of an
allocation that is an overpayment to a province, municipality or public entity, made in
error or fraudulently, is regarded as not legally due to that province, municipality or
public entity, as the case may be. 5
(2) The responsible transferring officer must, without delay, recover an overpayment
referred to in subsection (1), unless an instruction has been issued in terms of
subsection (3).
(3) The National Treasury may instruct that the recovery referred to in subsection (2)
be effected by set-off against future transfers to the affected province, municipality or 10
public entity in terms of a payment schedule.

New allocations during financial year and Schedule 7 allocations

26. (1) If further allocations are made to provinces or municipalities, as envisaged in

section 6(3), the National Treasury must, before the transfer of any funds to a province
or municipality, by notice in the Gazette and as applicable— 15
(a) amend any allocation or framework published in terms of section 16;
(b) publish the allocation per municipality for any new Part B of Schedule 5
allocation or the indicative allocation per municipality for any new Part B of
Schedule 6 allocation; or
(c) publish a framework for any new Schedule 4, 5, 6 or 7 allocation. 20
(2) Section 16(2) to (5) applies with the necessary changes to allocations and
frameworks published in terms of subsection (1).
(3) (a) The transferring officer may, with the approval of the National Treasury, make
one or more transfers of a Schedule 7 allocation to a province or municipality for a
disaster or housing emergency within 100 days after the date of the declaration of the 25
disaster, or the declaration of a housing emergency.
(b) The transferring officer must notify the relevant provincial treasury and the
National Treasury within 14 days of a transfer of a Schedule 7 allocation to a province
or municipality.
(c) The National Treasury must, within 21 days after the end of the 100-day period 30
referred to in paragraph (a), by notice in the Gazette publish all transfers of a Schedule
7 allocation made for a disaster.
(d) Despite the provisions of any law to the contrary, the National Treasury may
approve that funds allocated in Schedule 7 be used at any time.
(e) The funds approved in terms of paragraph (d) must be included either in the 35
provincial adjustments appropriation legislation, municipal adjustments budgets or
other appropriation legislation.

Preparations for 2019/20 financial year and 2020/21 financial year

27. (1) (a) A category C municipality that receives a conditional allocation in terms of
this Act must, using the indicative conditional allocations to that municipality for the 40
2019/20 financial year and the 2020/21 financial year as set out in Column B of the
Schedules to this Act, by 1 October 2018—
(i) agree on the provisional allocations and the projects to be funded from those
allocations in the 2019/20 financial year and the 2020/21 financial year with each
category B municipality within the category C municipality’s area of jurisdic- 45
tion; and
(ii) submit to the transferring officer—
(aa) the provisional allocations referred to in subparagraph (i); and
(bb) the projects referred to in subparagraph (i), listed per municipality.
(b) If a category C municipality and a category B municipality cannot agree on the 50
allocations and projects referred to in paragraph (a), the category C municipality must
request the relevant transferring officer to facilitate agreement.
(c) The transferring officer must take all necessary steps to facilitate agreement as
soon as possible, but no later than 60 days after receiving a request referred to in
paragraph (b). 55
(d) Any proposed amendment or adjustment of the allocations that is intended to be
published in terms of section 30(3)(b) must be agreed with the relevant category B
 24

municipality, the transferring officer and the National Treasury, before publication and
the submission of the allocations referred to in paragraph (a)(ii).
(e) If agreement is not reached between the category C municipality and the category
B municipality on the provisional allocations and projects referred to in paragraph (a)
before 1 October 2018, the National Treasury may determine the provisional allocations 5
and provide those provisional allocations to the affected municipalities and the
transferring officer.
(f) (i) The transferring officer must submit the final allocations based on the
provisional allocations referred to in paragraph (a)(i) and (ii) and (e) to the National
Treasury by 30 November 2018. 10
(ii) If the transferring officer fails to submit the allocations referred to in
subparagraph (i) by 30 November 2018, the National Treasury may determine the
appropriate allocations, taking into consideration the indicative allocations for the
2019/20 financial year.
(2) (a) The transferring officer of a conditional allocation, using the indicative 15
conditional allocations for the 2019/20 financial year and the 2020/21 financial year as
set out in Column B of the affected Schedules to this Act, must, by 1 October 2018,
submit to the National Treasury—
(i) the provisional allocations to each province or municipality in respect of new
conditional allocations to be made in the 2019/20 financial year; 20
(ii) any amendments to the indicative allocations for each province or municipality
set out in Column B of the affected Schedules in respect of existing conditional
allocations;
(iii) the draft frameworks for the allocations referred to in subparagraphs (i) and (ii);
and 25
(iv) electronic copies of any guidelines, business plan templates and other
documents referred to in the draft frameworks referred to in subparagraph (iii).
(b) When a document, referred to in a draft framework, that is submitted in terms of
paragraph (a)(iii), is amended, the transferring officer must immediately provide the
National Treasury and each receiving officer with electronic copies of the revised 30
document.
(c) The National Treasury must approve any proposed amendment or adjustment for
the 2019/20 financial year of the allocation criteria of an existing conditional allocation
before the submission of the provisional allocations and draft frameworks.
(d) The transferring officer must, under his or her signature, submit the final 35
allocations and frameworks based on the provisional allocations and frameworks to the
National Treasury by 30 November 2018.
(e) If the transferring officer fails to comply with paragraph (a) or (d), the National
Treasury may determine the appropriate draft or final allocations and frameworks taking
into consideration the indicative allocations for the 2019/20 financial year. 40
(f) (i) The National Treasury may amend final allocations and frameworks in order to
ensure equitable and stable allocations and fair and consistent grant conditions.
(ii) The National Treasury must give notice to the transferring officer of the intention
to amend frameworks and allocations and invite the submission of written comment
within seven days after the date of the notification. 45
(g) The draft and final frameworks and allocations must be submitted in the format
determined by the National Treasury.
(3) The National Treasury may instruct transferring officers, accounting officers of the
provincial treasuries and receiving officers to submit to it such plans and information for
any conditional allocation as it may determine at specified dates before the start of the 50
2019/20 financial year.
(4) (a) For purposes of the Education Infrastructure Grant or Health Facility
Revitalisation Grant in the 2019/20 financial year, the receiving officer of the relevant
provincial department must, in the format and on the date determined by the National
Treasury, submit to the transferring officer, the relevant provincial treasury and the 55
National Treasury—
(i) a user asset management plan for all infrastructure programmes for a period of
at least 10 years;
(ii) an infrastructure programme management plan including a construction
procurement strategy for infrastructure programmes and projects envisaged to 60
commence within the period for the medium term expenditure framework; and
 25

(iii) a document that outlines how the infrastructure delivery management system
shall be implemented in the province and that is approved by the Executive
Council of the province before or after the commencement of this Act.
(b) The receiving officer of the relevant provincial department must review the
document referred to in paragraph (a)(iii) and if any substantive change is made to the 5
document during the 2018/19 financial year, the amended document must be approved
by the Executive Council of the province before submission to the National Treasury
within 14 days after such approval.
(5) (a) Any category B municipality may apply to qualify for a conditional allocation,
called the Integrated Urban Development Grant, envisaged for the 2019/20 financial 10
year, by submitting an application to the Department of Cooperative Governance by 27
July 2018.
(b) The Department of Cooperative Governance must determine the form of the
application including the minimum qualifying conditions.
(c) A municipality that is informed by the Department of Cooperative Governance 15
that it will qualify for the Integrated Urban Development Grant if introduced for the
2019/20 financial year, must submit—
(i) a first draft of its three-year capital programme and the 10-year Capital
Expenditure Framework to the Department of Cooperative Governance by 30
March 2019; and 20
(ii) the final versions of its three-year capital programme and the 10-year Capital
Expenditure Framework by 31 May 2019, which must be evaluated by the
Department of Cooperative Governance after consultation with relevant
stakeholders.

Transfers before commencement of Division of Revenue Act for 2019/20 financial 25

year

28. (1) Despite sections 3(2), 7(2) and 8(2), if the Division of Revenue Act for the
2019/20 financial year has not commenced before or on 1 April 2019, the National
Treasury may determine that an amount not exceeding 45 per cent of the total amount of
each allocation made in terms of section 3(1), 7(1) or 8(1) be transferred to the relevant 30
province or municipality as a direct charge against the National Revenue Fund.
(2) If an amount of an allocation, made in terms of section 7(1) or 8(1), is transferred
in terms of subsection (1), the amount is, with the necessary changes, subject to the
applicable framework for the 2018/19 financial year and the other requirements of this
Act, as if it is an amount of an allocation for the 2018/19 financial year. 35

CHAPTER 5

DUTIES AND POWERS OF MUNICIPALITIES, PROVINCIAL TREASURIES

AND NATIONAL TREASURY

Duties of municipalities

29. (1) (a) In addition to the requirements of the Municipal Finance Management Act, 40
the accounting officer of a category C municipality must, within 10 days after this Act
takes effect, submit to the National Treasury and all category B municipalities within
that municipality’s area of jurisdiction, the budget, as tabled in accordance with section
16 of the Municipal Finance Management Act, for the 2018/19 financial year, the
2019/20 financial year and the 2020/21 financial year, except if submitted in terms of 45
any other legislation before the end of the 10-day period.
(b) The budget must indicate all allocations from its equitable share and conditional
allocations to be transferred to each category B municipality within the category C
municipality’s area of jurisdiction and disclose the criteria for allocating funds between
the category B municipalities. 50
(2) A category C municipality that is providing a municipal service must, before
implementing any capital project for water, electricity, roads or any other municipal
service, consult the category B municipalities within whose area of jurisdiction the
project shall be implemented, and agree in writing which municipality is responsible for
the operational costs and the collection of user fees. 55
(3) A category C municipality must ensure that it does not duplicate a function
currently performed by a category B municipality and must transfer funds for the
 26

provision of services, including basic services, to the relevant category B municipality

that is providing municipal services, despite the fact that—
(a) the category C municipality retains the function in terms of the Municipal
Structures Act; and
(b) a service delivery agreement for the provision of services by the category B 5
municipality on behalf of the category C municipality has not been concluded.
(4) A category B municipality which is not authorised to perform a function in terms
of the Municipal Structures Act may not extend the scope or type of services that it
currently provides, without—
(a) entering into a service delivery agreement with the category C municipality 10
which is authorised to perform the function in terms of the Municipal
Structures Act; or
(b) obtaining authorisation to perform the function in terms of the Municipal
Structures Act.
(5) (a) A category C municipality and a category B municipality must, before the 15
commencement of a financial year, agree to a payment schedule in respect of the
allocations referred to in subsection (1)(b) to be transferred to the category B
municipality in that financial year, and the category C municipality must submit that
payment schedule to the National Treasury before the commencement of the financial
year. 20
(b) A category C municipality must make transfers in accordance with the payment
schedule submitted in terms of paragraph (a).
(6) (a) The National Treasury may withhold or stop any allocation to the category C
municipality and reallocate the allocation to the relevant category B municipalities if a
category C municipality fails to— 25
(i) make allocations referred to in subsection (1)(b);
(ii) reach an agreement envisaged in subsection (2); or
(iii) submit a payment schedule in accordance with subsection (5)(a).
(b) The following provisions apply to the withholding or stopping of an allocation in
accordance with paragraph (a): 30
(i) Section 216 of the Constitution;
(ii) in the case of withholding an allocation, section 18(4)(a), with the necessary
changes; and
(iii) in the case of stopping an allocation, section 19(2)(a), (3), (4) and (5), with the
necessary changes. 35
(c) If an allocation is stopped in terms of this subsection, the National Treasury may,
after consultation with the transferring officer, determine that a portion of the allocation
that shall not be spent, be reallocated to one or more municipalities, on condition that the
allocation shall be spent by the end of the 2018/19 financial year or the 2019/20 financial
year. 40
(7) A municipality must ensure that any allocation made to it in terms of this Act, or
by a province or another municipality, that is not reflected in its budget as tabled in
accordance with section 16 of the Municipal Finance Management Act, is reflected in its
budget to be considered for approval in accordance with section 24 of the Municipal
Finance Management Act. 45

Duties and powers of provincial treasuries

30. (1) A provincial treasury must reflect allocations listed in Part A of Schedule 5 to
the province separately in the appropriation Bill of the province.
(2) (a) A provincial treasury must, on the same day that its budget is tabled in the
provincial legislature, or a date not later than 14 days after this Act takes effect, approved 50
by the National Treasury, publish by notice in the Gazette—
(i) the indicative allocation per municipality for every allocation to be made by the
province to municipalities from the province’s own funds and from conditional
allocations to the province;
(ii) the indicative allocation to be made per school and per hospital in the province 55
in a format determined by the National Treasury;
(iii) the indicative allocation to any national or provincial public entity for the
implementation of a programme funded by an allocation in Part A of Schedule 5
on behalf of a province or for assistance provided to the province in
implementing such a programme; 60
 27

(iv) the envisaged division of the allocation envisaged in subparagraphs (i)

and (ii), in respect of each municipality, school and hospital, for the
2019/20 financial year and the 2020/21 financial year; and
(v) the conditions and other information in respect of the allocations referred
to in subparagraphs (i), (ii) and (iii) to facilitate performance measure- 5
ment and the use of required inputs and outputs.
(b) The allocations referred to in paragraph (a) must be regarded as final when the
provincial appropriation Act takes effect.
(c) If the provincial legislature amends its appropriation Bill, the provincial treasury
must publish amended allocations and budgets by notice in the Gazette within 14 days 10
after the appropriation Act takes effect, and those allocations and budget must be
regarded as final.
(d) Allocations to municipalities in terms of subsection (2)(a) must be consistent with
the terms of any agreement concluded between the province and a municipality.
(3) (a) Despite subsection (2) or any other legislation, a provincial treasury may, in 15
accordance with a framework determined by the National Treasury, amend the
allocations referred to in subsection (2) or make additional allocations to municipalities
that were not published in terms of subsection (2).
(b) Any amendments to the allocations published in terms of subsection (2)(a) or (c)
must be published by notice in the Gazette not later than 8 February 2019 and take effect 20
on the date of the publication.
(4) A provincial treasury must, as part of its report in terms of section 40(4)(b) and (c)
of the Public Finance Management Act, in the format determined by the National
Treasury, report on—
(a) actual transfers received by the province from national departments; 25
(b) actual expenditure on such allocations, excluding Schedule 4 allocations, up
to the end of that month; and
(c) actual transfers made by the province to municipalities and public entities, and
actual expenditure by municipalities and public entities on such allocations,
based on the latest information available from municipalities and public 30
entities at the time of reporting.
(5) (a) A provincial treasury must—
(i) ensure that a payment schedule is agreed between each provincial department
and receiving institution envisaged in subsection (2)(a);
(ii) ensure that transfers are made promptly to the relevant receiving officer in terms 35
of the agreed payment schedule; and
(iii) submit the payment schedules to the National Treasury within 14 days after this
Act takes effect.
(b) If a provincial department and receiving institution do not agree to a payment
schedule in time for submission to the National Treasury, the provincial treasury must, 40
after consultation with the transferring officer, determine the payment schedule.
(6) If a provincial treasury fails to make a transfer in terms of subsection (5)(a), the
relevant receiving officer may request the provincial treasury to immediately make the
transfer or to provide written reasons within three working days as to why the transfer
has not been made. 45
(7) If a provincial treasury fails to make the transfer requested by the receiving officer
or provide reasons in terms of subsection (6), or the receiving officer disputes the
reasons provided by the provincial treasury as to why the transfer has not been made, the
receiving officer may request the National Treasury to investigate the matter.
(8) On receipt of a request in terms of subsection (7), the National Treasury must— 50
(a) consult the transferring officer on the matter;
(b) investigate the matter, assess any reasons given by the provincial treasury as
to why the transfer was not made;
(c) direct the provincial treasury to immediately effect the transfer or provide
reasons to the receiving officer confirming why the provincial treasury was 55
correct in not making the transfer; and
(d) advise the provincial treasury and the receiving officer as to what steps must
be taken to ensure the transfer.
 28

Duties and powers of National Treasury

31. (1) The National Treasury must, within 14 days after this Act takes effect, submit
a notice to all transferring officers containing the details of the primary bank accounts of
each province and municipality.
(2) The National Treasury must, together with the statement envisaged in section 5
32(2) of the Public Finance Management Act, publish a report on actual transfers of all
allocations listed in Schedules 4, 5, 6 and 7 or made in terms of section 26.
(3) The National Treasury may include in a report on the equitable share and
conditional allocations in terms of this Act in any report it publishes—
(a) that aggregates statements published by provincial treasuries envisaged in 10
section 71(7) of the Municipal Finance Management Act; and
(b) in respect of municipal finances.

CHAPTER 6

GENERAL

Liability for costs incurred in violation of principles of cooperative governance and 15

intergovernmental relations

32. (1) An organ of state involved in an intergovernmental dispute regarding any

provision of this Act or any division of revenue matter or allocation must, before
approaching a court to resolve such dispute, make every effort to settle the dispute with
the other organ of state concerned, including exhausting all mechanisms provided for 20
the settlement of disputes in relevant legislation.
(2) If a dispute is referred back by a court in accordance with section 41(4) of the
Constitution, due to the court not being satisfied that the organ of state approaching the
court has complied with subsection (1), the expenditure incurred by that organ of state
in approaching the court must be regarded as fruitless and wasteful. 25
(3) The amount of any such fruitless and wasteful expenditure must, in terms of the
applicable procedures in the Public Finance Management Act or the Municipal Finance
Management Act, be recovered without delay from every person who caused the organ
of state not to comply with subsection (1).

Irregular expenditure 30

33. Expenditure of an allocation in Part B of Schedule 4 or Part B of Schedule 5

contrary to this Act is irregular expenditure in terms of the Municipal Finance
Management Act, except if unauthorised expenditure in terms of the Municipal Finance
Management Act.

Financial misconduct 35

34. (1) Despite a provision of other legislation to the contrary, any wilful or negligent
non-compliance with a provision of this Act constitutes financial misconduct.
(2) Section 84 of the Public Finance Management Act or section 171 of the Municipal
Finance Management Act, as the case may be, applies in respect of financial misconduct
envisaged in subsection (1). 40

Delegations and assignments

35. (1) The Minister may, in writing, delegate any of the powers entrusted to, and
assign any of the duties imposed on, the National Treasury in terms of this Act, to an
official of the National Treasury.
(2) A delegation or assignment in terms of subsection (1) to an official of the National 45
Treasury—
(a) is subject to any limitations or conditions that the Minister may impose;
(b) may authorise that official to sub-delegate, in writing, the delegated power or
assigned duty to any other official of the National Treasury; and
(c) does not divest the National Treasury of the responsibility concerning the 50
exercise of the delegated power or the performance of the assigned duty.
 29

(3) The Minister may vary or revoke any decision taken by an official as a result of a
delegation or assignment, subject to any rights that may have vested as a consequence
of the decision.
(4) A Member of the Executive Council responsible for finance in a province may, in
writing, delegate any power entrusted to, and assign any duty imposed on, the provincial 5
treasury in terms of this Act, to an official of the provincial treasury.
(5) (a) A transferring officer may, in writing, delegate any power entrusted to, and
assign any duty imposed on, the transferring officer in terms of this Act, to an official in
his or her department.
(b) A copy of the written delegation must be submitted to the National Treasury. 10
(6) Subsections (2) and (3) apply with the necessary changes to a delegation or
assignment in terms of subsection (4) or (5).

Exemptions

36. (1) The Minister may, if good grounds exist, approve a departure from a provision
of a framework, a regulation made under section 37 or a condition imposed in terms of 15
this Act.
(2) For purposes of subsection (1), good grounds include the fact that the provision of
the framework, regulation or condition—
(a) cannot be implemented in practice;
(b) impedes the achievement of any object of this Act; 20
(c) impedes an immediate response to a disaster; or
(d) undermines the financial viability of the affected national or provincial
department or municipality.
(3) Any departure approved in terms of subsection (1) must set out the period and
conditions of the departure, if any, and must be published by notice in the Gazette. 25

Regulations

37. The Minister may, by notice in the Gazette, make regulations regarding—
(a) anything which must or may be prescribed in terms of this Act; or
(b) any ancillary or incidental administrative or procedural matter that it is
necessary to prescribe for the proper implementation or administration of this 30
Act.

Repeal of laws and savings

38. (1) Subject to subsection (2)—

(a) the Division of Revenue Act, 2017 (Act No. 3 of 2017), except sections 16 and
26, is hereby repealed; 35
(b) sections 16 and 26 of the Division of Revenue Act, 2017, is hereby repealed
with effect from 1 July 2018 or the date that this Act takes effect, whichever is
the later date; and
(c) the Division of Revenue Amendment Act, 2017 (Act No. 10 of 2017), is
hereby repealed. 40
(2) Any repeal referred to in subsection (1) does not affect—
(a) any duty to be performed in terms of any provision of an Act referred to in
subsection (1) after the end of the 2018/19 financial year; and
(b) any obligation in terms of any provision of an Act referred to in subsection (1),
the execution of which is outstanding. 45
(3) Any framework published in terms of section 16 of the Division of Revenue Act,
2017, as amended in terms of section 16 or 26 of that Act, applies to funds of a
conditional allocation approved for roll-over in terms of section 22(2) of that Act, if that
conditional allocation does not continue to exist in terms of this Act.

Short title and commencement 50

39. This Act is called the Division of Revenue Act, 2018, and takes effect on 1 April
2018 or the date of publication in the Gazette, whichever is the later date.
 30

SCHEDULE 1

EQUITABLE DIVISION OF REVENUE RAISED NATIONALLY AMONG THE

THREE SPHERES OF GOVERNMENT

Column A Column B
Spheres of Government Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
National1,2 979 181 797 1 058 577 591 1 139 321 640
Provincial 470 286 510 505 019 653 542 446 855
Local 62 731 845 68 973 465 75 683 326
TOTAL 1 512 200 152 1 632 570 709 1 757 451 821
1. National share includes conditional allocations to provincial and local spheres, general fuel
1. levy sharing with metropolitan municipalities, debt-service costs and the contingency reserve
2. The direct charges for the provincial equitable share are netted out

SCHEDULE 2

DETERMINATION OF EACH PROVINCE'S EQUITABLE SHARE OF THE

PROVINCIAL SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
(as a direct charge against the National Revenue Fund)

Column A Column B
Province 2018/19 Forward Estimates
Allocation 2019/20 2020/21
R'000 R'000 R'000
Eastern Cape 65 499 660 69 807 213 74 411 439
Free State 26 178 043 28 071 076 30 108 091
Gauteng 93 384 285 100 923 135 109 092 089
KwaZulu-Natal 99 263 681 106 363 502 113 997 676
Limpopo 55 178 775 59 187 820 63 503 149
Mpumalanga 38 467 686 41 394 597 44 554 600
Northern Cape 12 475 021 13 403 527 14 404 557
North West 32 391 895 34 788 928 37 372 220
Western Cape 47 447 464 51 079 855 55 003 034
TOTAL 470 286 510 505 019 653 542 446 855
 31

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000
EASTERN CAPE

A BUF Buffalo City 778 048 844 411 918 677

A NMA Nelson Mandela Bay 939 530 1 021 661 1 119 805

B EC101 Dr Beyers Naude 83 278 90 038 97 079

B EC102 Blue Crane Route 49 012 52 907 56 634
B EC104 Makana 85 578 92 675 100 381
B EC105 Ndlambe 88 241 95 785 104 202
B EC106 Sundays River Valley 71 971 79 108 86 898
B EC108 Kouga 113 151 124 344 137 852
B EC109 Kou-Kamma 45 406 48 983 53 004
C DC10 Sarah Baartman District Municipality 88 342 92 787 96 772
Total: Sarah Baartman Municipalities 624 979 676 627 732 822

B EC121 Mbhashe 225 391 243 648 260 961

B EC122 Mnquma 234 368 252 875 270 104
B EC123 Great Kei 38 154 41 775 44 455
B EC124 Amahlathi 97 114 103 450 110 129
B EC126 Ngqushwa 75 488 80 838 86 067
B EC129 Raymond Mhlaba 156 192 170 046 182 203
C DC12 Amathole District Municipality 785 546 833 685 899 283
Total: Amathole Municipalities 1 612 253 1 726 317 1 853 202

B EC131 Inxuba Yethemba 39 507 42 339 45 481

B EC135 Intsika Yethu 147 779 155 357 165 527
B EC136 Emalahleni 115 774 120 890 129 098
B EC137 Engcobo 136 131 144 889 154 753
B EC138 Sakhisizwe 61 718 66 602 71 145
B EC139 Enoch Mgijima 164 680 176 220 189 777
C DC13 Chris Hani District Municipality 524 527 542 195 583 613
Total: Chris Hani Municipalities 1 190 116 1 248 492 1 339 394

B EC141 Elundini 138 382 149 117 160 009

B EC142 Senqu 136 434 146 559 156 973
B EC145 Walter Sisulu 52 677 57 413 62 187
C DC14 Joe Gqabi District Municipality 258 283 273 008 295 103
Total: Joe Gqabi Municipalities 585 776 626 097 674 272

B EC153 Ngquza Hill 227 562 251 396 271 260

B EC154 Port St Johns 135 729 149 561 161 091
B EC155 Nyandeni 234 532 256 041 275 422
B EC156 Mhlontlo 165 930 179 871 191 665
B EC157 King Sabata Dalindyebo 292 112 322 658 350 127
C DC15 O.R. Tambo District Municipality 791 526 853 638 925 329
Total: O.R. Tambo Municipalities 1 847 391 2 013 165 2 174 894

B EC441 Matatiele 207 642 229 612 247 823

B EC442 Umzimvubu 193 075 212 895 228 698
B EC443 Mbizana 230 525 254 380 275 837
B EC444 Ntabankulu 108 982 119 728 128 076
C DC44 Alfred Nzo District Municipality 510 344 555 404 602 513
Total: Alfred Nzo Municipalities 1 250 568 1 372 019 1 482 947

Total: Eastern Cape Municipalities 8 828 661 9 528 789 10 296 013
 32

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

FREE STATE

A MAN Mangaung 683 500 735 867 804 822

B FS161 Letsemeng 58 082 63 091 68 025

B FS162 Kopanong 77 880 84 441 90 521
B FS163 Mohokare 61 723 67 819 73 566
C DC16 Xhariep District Municipality 40 544 43 116 45 257
Total: Xhariep Municipalities 238 229 258 467 277 369

B FS181 Masilonyana 107 442 117 395 127 406

B FS182 Tokologo 49 390 53 961 57 977
B FS183 Tswelopele 67 019 73 330 78 787
B FS184 Matjhabeng 459 037 501 919 544 687
B FS185 Nala 111 110 120 679 128 442
C DC18 Lejweleputswa District Municipality 121 164 127 452 132 806
Total: Lejweleputswa Municipalities 915 162 994 736 1 070 105

B FS191 Setsoto 173 927 190 361 205 219

B FS192 Dihlabeng 147 861 163 327 178 687
B FS193 Nketoana 87 543 96 073 104 320
B FS194 Maluti-a-Phofung 538 719 591 738 641 031
B FS195 Phumelela 68 083 74 619 80 558
B FS196 Mantsopa 74 811 81 889 88 548
C DC19 Thabo Mofutsanyana District Municipality 107 303 114 283 120 222
Total: Thabo Mofutsanyana Municipalities 1 198 247 1 312 290 1 418 585

B FS201 Moqhaka 185 144 203 848 221 685

B FS203 Ngwathe 174 340 190 804 207 217
B FS204 Metsimaholo 163 296 182 247 202 871
B FS205 Mafube 86 279 94 776 102 789
C DC20 Fezile Dabi District Municipality 149 188 154 316 159 061
Total: Fezile Dabi Municipalities 758 247 825 991 893 623

Total: Free State Municipalities 3 793 385 4 127 351 4 464 504
 33

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

GAUTENG

A EKU City of Ekurhuleni 3 145 138 3 478 292 3 848 841

A JHB City of Johannesburg 4 229 919 4 689 158 5 207 760
A TSH City of Tshwane 2 398 120 2 642 492 2 938 221

B GT421 Emfuleni 707 724 770 960 838 676

B GT422 Midvaal 97 192 107 139 118 994
B GT423 Lesedi 119 340 133 181 148 616
C DC42 Sedibeng District Municipality 258 891 268 120 276 650
Total: Sedibeng Municipalities 1 183 147 1 279 400 1 382 936

B GT481 Mogale City 369 809 408 061 451 269

B GT484 Merafong City 185 872 203 628 222 151
B GT485 Rand West City 274 916 302 974 332 695
C DC48 West Rand District Municipality 198 007 206 677 214 544
Total: West Rand Municipalities 1 028 604 1 121 340 1 220 659

Total: Gauteng Municipalities 11 984 928 13 210 682 14 598 417

 34

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

KWAZULU-NATAL

A ETH eThekwini 2 893 016 3 160 624 3 473 156

B KZN212 uMdoni 118 563 129 120 140 015

B KZN213 uMzumbe 120 566 128 029 136 372
B KZN214 uMuziwabantu 82 521 89 202 95 883
B KZN216 Ray Nkonyeni 185 324 201 851 220 992
C DC21 Ugu District Municipality 435 877 461 838 503 224
Total: Ugu Municipalities 942 851 1 010 040 1 096 486

B KZN221 uMshwathi 91 820 99 895 107 919

B KZN222 uMngeni 60 165 66 484 73 599
B KZN223 Mpofana 32 003 35 036 37 655
B KZN224 iMpendle 32 649 35 023 37 278
B KZN225 Msunduzi 505 853 544 673 597 005
B KZN226 Mkhambathini 55 546 61 448 66 718
B KZN227 Richmond 62 473 68 308 74 229
C DC22 uMgungundlovu District Municipality 483 964 525 359 573 655
Total: uMgungundlovu Municipalities 1 324 473 1 436 226 1 568 058

B KZN235 Okhahlamba 110 874 122 106 131 270

B KZN237 iNkosi Langalibalele 155 907 172 809 187 318
B KZN238 Alfred Duma 206 663 227 893 246 582
C DC23 uThukela District Municipality 397 482 431 591 468 963
Total: uThukela Municipalities 870 926 954 399 1 034 133

B KZN241 eNdumeni 41 599 46 228 50 888

B KZN242 Nquthu 122 365 134 153 144 296
B KZN244 uMsinga 145 573 160 138 173 357
B KZN245 uMvoti 112 887 125 289 137 251
C DC24 uMzinyathi District Municipality 325 057 352 683 385 919
Total: uMzinyathi Municipalities 747 481 818 491 891 711

B KZN252 Newcastle 341 408 370 044 402 930

B KZN253 eMadlangeni 27 305 29 882 32 010
B KZN254 Dannhauser 82 343 89 630 96 080
C DC25 Amajuba District Municipality 148 705 160 591 173 889
Total: Amajuba Municipalities 599 761 650 147 704 909
 35

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

B KZN261 eDumbe 66 301 72 956 78 528

B KZN262 uPhongolo 119 730 133 382 145 138
B KZN263 AbaQulusi 130 276 145 195 158 630
B KZN265 Nongoma 136 733 150 771 162 455
B KZN266 Ulundi 143 729 159 149 171 384
C DC26 Zululand District Municipality 424 766 463 503 505 418
Total: Zululand Municipalities 1 021 535 1 124 956 1 221 553

B KZN271 uMhlabuyalingana 145 676 162 295 177 240

B KZN272 Jozini 159 965 177 803 192 964
B KZN275 Mtubatuba 143 500 160 490 176 150
B KZN276 Big Five Hlabisa 94 296 105 320 114 832
C DC27 uMkhanyakude District Municipality 374 748 411 235 452 333
Total: uMkhanyakude Municipalities 918 185 1 017 143 1 113 519

B KZN281 uMfolozi 115 041 127 726 139 087

B KZN282 uMhlathuze 326 255 360 419 397 687
B KZN284 uMlalazi 165 378 181 320 195 938
B KZN285 Mthonjaneni 70 979 77 549 82 871
B KZN286 Nkandla 86 797 94 619 100 819
C DC28 King Cetshwayo District Municipality 476 842 514 705 559 228
Total: King Cetshwayo Municipalities 1 241 292 1 356 338 1 475 630

B KZN291 Mandeni 146 821 163 892 179 615

B KZN292 KwaDukuza 147 876 165 637 185 670
B KZN293 Ndwedwe 129 855 144 372 156 543
B KZN294 Maphumulo 81 102 88 689 94 568
C DC29 iLembe District Municipality 468 670 515 734 569 641
Total: iLembe Municipalities 974 324 1 078 324 1 186 037

B KZN433 Greater Kokstad 55 683 60 736 65 674

B KZN434 uBuhlebezwe 99 319 107 810 115 772
B KZN435 uMzimkhulu 169 032 184 935 199 963
B KZN436 Dr Nkosazana Dlamini Zuma 111 162 123 033 132 746
C DC43 Harry Gwala District Municipality 318 074 344 466 374 185
Total: Harry Gwala Municipalities 753 270 820 980 888 340

Total: KwaZulu-Natal Municipalities 12 287 114 13 427 668 14 653 532

 36

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

LIMPOPO

B LIM331 Greater Giyani 253 351 280 648 304 314

B LIM332 Greater Letaba 244 692 271 964 295 117
B LIM333 Greater Tzaneen 338 344 375 418 409 819
B LIM334 Ba-Phalaborwa 132 485 147 759 161 573
B LIM335 Maruleng 109 416 121 726 132 327
C DC33 Mopani District Municipality 840 762 918 021 1 005 282
Total: Mopani Municipalities 1 919 050 2 115 536 2 308 432

B LIM341 Musina 124 015 140 324 157 252

B LIM343 Thulamela 391 032 432 979 470 957
B LIM344 Makhado 316 259 349 723 381 094
B LIM345 Collins Chabane 327 068 361 343 392 029
C DC34 Vhembe District Municipality 910 477 994 153 1 091 706
Total: Vhembe Municipalities 2 068 851 2 278 522 2 493 038

B LIM351 Blouberg 167 730 182 071 195 348

B LIM353 Molemole 128 184 139 356 149 334
B LIM354 Polokwane 831 436 915 810 1 010 785
B LIM355 Lepele-Nkumpi 222 970 244 135 263 221
C DC35 Capricorn District Municipality 547 862 587 746 636 853
Total: Capricorn Municipalities 1 898 182 2 069 118 2 255 541

B LIM361 Thabazimbi 86 028 93 557 103 553

B LIM362 Lephalale 130 526 146 617 164 498
B LIM366 Bela-Bela 81 986 90 159 99 555
B LIM367 Mogalakwena 395 279 430 255 466 088
B LIM368 Modimolle-Mookgophong 100 804 109 080 118 015
C DC36 Waterberg District Municipality 122 853 129 261 135 047
Total: Waterberg Municipalities 917 476 998 929 1 086 756

B LIM471 Ephraim Mogale 129 676 141 749 153 984

B LIM472 Elias Motsoaledi 237 506 262 705 286 108
B LIM473 Makhuduthamaga 241 518 261 729 282 569
B LIM476 Fetakgomo Tubatse 361 513 405 334 446 874
C DC47 Sekhukhune District Municipality 711 481 767 769 843 333
Total: Sekhukhune Municipalities 1 681 694 1 839 286 2 012 868

Total: Limpopo Municipalities 8 485 253 9 301 391 10 156 635

 37

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

MPUMALANGA

B MP301 Chief Albert Luthuli 278 934 306 814 333 088
B MP302 Msukaligwa 154 338 171 134 189 253
B MP303 Mkhondo 209 667 232 593 255 434
B MP304 Dr Pixley ka Isaka Seme 107 567 117 944 127 450
B MP305 Lekwa 107 256 118 034 129 277
B MP306 Dipaleseng 64 569 71 204 77 865
B MP307 Govan Mbeki 257 245 284 504 315 700
C DC30 Gert Sibande District Municipality 282 406 291 654 300 301
Total: Gert Sibande Municipalities 1 461 982 1 593 881 1 728 368

B MP311 Victor Khanye 87 187 95 709 105 798

B MP312 Emalahleni 325 738 360 048 402 983
B MP313 Steve Tshwete 179 370 200 511 227 065
B MP314 Emakhazeni 58 495 62 833 68 570
B MP315 Thembisile Hani 364 153 398 455 434 938
B MP316 Dr JS Moroka 345 667 373 368 402 026
C DC31 Nkangala District Municipality 343 962 355 755 366 881
Total: Nkangala Municipalities 1 704 572 1 846 679 2 008 261

B MP321 Thaba Chweu 132 627 142 451 157 222

B MP324 Nkomazi 516 133 562 066 613 852
B MP325 Bushbuckridge 720 236 776 728 841 299
B MP326 City of Mbombela 661 329 720 518 793 825
C DC32 Ehlanzeni District Municipality 239 132 251 449 263 037
Total: Ehlanzeni Municipalities 2 269 457 2 453 212 2 669 235

Total: Mpumalanga Municipalities 5 436 011 5 893 772 6 405 864

 38

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

NORTHERN CAPE

B NC061 Richtersveld 15 473 16 937 18 422

B NC062 Nama Khoi 43 917 47 587 51 472
B NC064 Kamiesberg 20 768 22 505 24 106
B NC065 Hantam 22 818 24 628 26 505
B NC066 Karoo Hoogland 20 251 22 233 24 179
B NC067 Khâi-Ma 17 420 18 779 20 323
C DC6 Namakwa District Municipality 47 152 49 067 50 803
Total: Namakwa Municipalities 187 799 201 736 215 810

B NC071 Ubuntu 31 165 34 209 37 074

B NC072 Umsobomvu 44 259 48 914 53 423
B NC073 Emthanjeni 40 793 44 551 48 243
B NC074 Kareeberg 22 024 24 050 26 047
B NC075 Renosterberg 22 237 24 382 26 345
B NC076 Thembelihle 22 988 25 113 27 059
B NC077 Siyathemba 29 848 32 598 35 384
B NC078 Siyancuma 45 402 49 180 52 413
C DC7 Pixley Ka Seme District Municipality 47 820 50 609 53 012
Total: Pixley Ka Seme Municipalities 306 536 333 606 359 000

B NC082 !Kai !Garib 77 186 84 147 92 320

B NC084 !Kheis 23 163 25 065 26 755
B NC085 Tsantsabane 35 385 38 823 42 678
B NC086 Kgatelopele 20 469 22 242 24 365
B NC087 Dawid Kruiper 77 934 84 739 92 253
C DC8 Z.F. Mgcawu District Municipality 66 094 69 284 72 111
Total: Z.F. Mgcawu Municipalities 300 231 324 300 350 482

B NC091 Sol Plaatjie 172 437 188 812 206 040

B NC092 Dikgatlong 76 057 83 956 91 218
B NC093 Magareng 41 743 45 699 49 114
B NC094 Phokwane 94 534 103 413 111 092
C DC9 Frances Baard District Municipality 116 209 120 350 124 125
Total: Frances Baard Municipalities 500 980 542 230 581 589

B NC451 Joe Morolong 128 635 139 765 149 890

B NC452 Ga-Segonyana 141 895 157 567 174 003
B NC453 Gamagara 33 008 37 204 42 363
C DC45 John Taolo Gaetsewe District Municipality 85 253 89 326 93 411
Total: John Taolo Gaetsewe Municipalities 388 791 423 862 459 667

Total: Northern Cape Municipalities 1 684 337 1 825 734 1 966 548
 39

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

NORTH WEST

B NW371 Moretele 306 721 335 220 360 155

B NW372 Madibeng 624 943 690 643 766 832
B NW373 Rustenburg 605 006 675 452 757 430
B NW374 Kgetlengrivier 81 506 90 475 99 374
B NW375 Moses Kotane 386 730 423 082 455 591
C DC37 Bojanala Platinum District Municipality 322 202 337 917 352 586
Total: Bojanala Platinum Municipalities 2 327 108 2 552 789 2 791 968

B NW381 Ratlou 111 525 122 886 131 799

B NW382 Tswaing 102 431 113 143 121 990
B NW383 Mafikeng 226 626 252 333 274 752
B NW384 Ditsobotla 112 413 124 506 135 203
B NW385 Ramotshere Moiloa 153 173 170 214 184 185
C DC38 Ngaka Modiri Molema District Municipality 696 369 762 027 829 843
Total: Ngaka Modiri Molema Municipalities 1 402 537 1 545 109 1 677 772

B NW392 Naledi 47 260 51 788 55 858

B NW393 Mamusa 50 209 54 838 59 166
B NW394 Greater Taung 175 974 190 263 202 947
B NW396 Lekwa-Teemane 44 723 49 059 53 059
B NW397 Kagisano-Molopo 109 062 118 889 126 906
C DC39 Dr Ruth Segomotsi Mompati District Municipality 337 205 360 521 388 722
Total: Dr Ruth Segomotsi Mompati Municipalities 764 433 825 358 886 658

B NW403 City of Matlosana 392 856 428 402 465 560

B NW404 Maquassi Hills 115 571 126 946 137 180
B NW405 JB Marks 233 655 257 206 284 098
C DC40 Dr Kenneth Kaunda District Municipality 180 033 187 041 193 426
Total: Dr Kenneth Kaunda Municipalities 922 115 999 595 1 080 264

Total: North West Municipalities 5 416 193 5 922 851 6 436 662
 40

SCHEDULE 3

DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL

GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY

National Financial Year

Column A Column B
Forward Estimates
Number Municipality 2018/19
2019/20 2020/21
R'000 R'000 R'000

WESTERN CAPE

A CPT City of Cape Town 2 574 650 2 815 558 3 092 042

B WC011 Matzikama 52 340 56 519 61 132

B WC012 Cederberg 45 080 49 017 53 196
B WC013 Bergrivier 41 390 45 066 49 277
B WC014 Saldanha Bay 80 432 88 328 97 483
B WC015 Swartland 82 048 91 534 102 555
C DC1 West Coast District Municipality 88 405 92 295 95 824
Total: West Coast Municipalities 389 695 422 759 459 467

B WC022 Witzenberg 84 602 92 850 102 274

B WC023 Drakenstein 137 518 150 601 165 045
B WC024 Stellenbosch 124 176 136 177 150 331
B WC025 Breede Valley 108 977 117 997 128 040
B WC026 Langeberg 73 093 79 172 85 535
C DC2 Cape Winelands District Municipality 225 214 232 002 238 403
Total: Cape Winelands Municipalities 753 580 808 799 869 628

B WC031 Theewaterskloof 87 385 95 274 103 492

B WC032 Overstrand 96 068 106 383 117 674
B WC033 Cape Agulhas 27 606 29 861 32 338
B WC034 Swellendam 29 001 31 536 34 311
C DC3 Overberg District Municipality 67 902 71 298 74 293
Total: Overberg Municipalities 307 962 334 352 362 108

B WC041 Kannaland 25 957 27 902 29 670

B WC042 Hessequa 40 885 44 040 47 615
B WC043 Mossel Bay 85 858 93 148 101 620
B WC044 George 137 401 149 978 164 336
B WC045 Oudtshoorn 67 861 73 165 78 757
B WC047 Bitou 83 028 92 906 104 077
B WC048 Knysna 78 375 85 909 94 186
C DC4 Eden District Municipality 151 237 156 941 162 177
Total: Eden Municipalities 670 602 723 989 782 438

B WC051 Laingsburg 15 000 16 394 17 667

B WC052 Prince Albert 19 317 21 139 22 932
B WC053 Beaufort West 56 655 61 921 67 002
C DC5 Central Karoo District Municipality 28 502 30 316 31 867
Total: Central Karoo Municipalities 119 474 129 770 139 468

Total: Western Cape Municipalities 4 815 963 5 235 227 5 705 151

Unallocated - 500 000 1 000 000

National Total 62 731 845 68 973 465 75 683 326

 SCHEDULE 4, PART A

ALLOCATIONS TO PROVINCES TO SUPPLEMENT THE FUNDING OF PROGRAMMES OR FUNCTIONS FUNDED FROM PROVINCIAL BUDGETS

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Basic Education Education Infrastructure Grant To help accelerate construction, maintenance, upgrading and General conditional allocation to provinces Eastern Cape 1 479 828 1 394 253 1 547 060
(Vote 14) rehabilitation of new and existing infrastructure in education Free State 755 337 643 932 714 506
including district and circuit accommodation; to enhance Gauteng 1 373 073 1 283 691 1 424 381
capacity to deliver infrastructure in education; to address
KwaZulu-Natal 1 866 435 1 794 644 1 991 333
damage to infrastructure; to address achievement of the
targets set out in the minimum norms and standards for school Limpopo 1 011 680 1 068 836 1 275 292
infrastructure. Mpumalanga 838 551 730 112 810 132
Northern Cape 568 766 450 710 500 107
North West 1 002 988 900 412 999 095
Western Cape 1 021 076 919 146 1 019 882
Unallocated - 1 128 423 1 184 844
TOTAL 9 917 734 10 314 159 11 466 632
Health (a) Health Professions Training and Support provinces to fund service costs associated with Nationally assigned function to provinces Eastern Cape 239 707 253 131 267 053
(Vote 16) Development Grant clinical training and supervision of health science trainees on Free State 175 599 185 430 195 629
the public service platform. Gauteng 972 759 1 027 240 1 083 738
KwaZulu-Natal 351 197 370 863 391 260
41

Limpopo 139 366 147 168 155 262

Mpumalanga 114 279 120 678 127 315
Northern Cape 91 305 97 132 102 475
North West 126 107 132 452 139 738
Western Cape 574 177 606 334 639 682
TOTAL 2 784 496 2 940 428 3 102 152
Health (b) National Tertiary Services Grant Ensure provision of tertiary health services in South Africa; to Nationally assigned function to provinces Eastern Cape 942 650 995 438 1 062 132
(Vote 16) compensate tertiary facilities for the additional costs Free State 1 077 070 1 137 386 1 213 591
associated with provision of these services. Gauteng 4 390 192 4 724 843 5 041 407
KwaZulu-Natal 1 794 649 1 895 149 2 022 124
Limpopo 387 560 409 263 436 684
Mpumalanga 116 489 122 993 131 234
Northern Cape 359 754 378 323 403 671
North West 283 055 300 482 320 614
Western Cape 3 049 284 3 221 651 3 437 406
TOTAL 12 400 703 13 185 528 14 068 863
 SCHEDULE 4, PART A

ALLOCATIONS TO PROVINCES TO SUPPLEMENT THE FUNDING OF PROGRAMMES OR FUNCTIONS FUNDED FROM PROVINCIAL BUDGETS

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Social Development Social Worker Employment Grant To reduce the national backlog of unemployed social work General conditional allocation to provinces Eastern Cape 45 074 48 710 51 974
(Vote 17) graduates through appointment by provincial departments of Free State 3 519 3 803 4 058
social development. Gauteng 2 655 2 869 3 061
KwaZulu-Natal 57 855 62 522 66 710
Limpopo 50 631 54 715 58 381
Mpumalanga 16 177 17 482 18 653
Northern Cape 619 669 714
North West 7 286 7 874 8 402
Western Cape 12 967 14 012 14 951
TOTAL 196 783 212 656 226 904
Transport (a) Provincial Roads Maintenance Grant To supplement provincial investments for road infrastructure General conditional allocation to provinces Eastern Cape 1 439 241 1 391 054 1 467 354
(Vote 35) maintenance (routine, periodic and special maintenance); to Free State 1 299 602 1 235 577 1 303 349
ensure that all roads are classified as per the Road Gauteng 742 522 636 028 670 914
Infrastructure Strategic Framework for South Africa and the
KwaZulu-Natal 1 826 745 1 772 792 1 870 031
technical recommendations for highways, and the Road
Limpopo 1 124 146 1 105 360 1 165 989
42

Classification and Access Management guidelines; to

implement and maintain Road Asset Management Systems; to Mpumalanga 1 523 757 1 416 386 939 197
supplement provincial projects for the repair of roads and Northern Cape 1 111 637 1 050 720 1 108 353
bridges damaged by unforseen incidences including natural North West 960 604 904 230 953 827
disasters; to improve the state of the road network serving Western Cape 1 007 414 911 213 961 194
electricity generation infrastructure; to improve road safety Unallocated - 1 058 305 1 672 449
with a special focus on pedestrian safety in rural areas.
TOTAL 11 035 668 11 481 665 12 112 657
Transport (b) Public Transport Operations Grant To provide supplementary funding towards public transport Nationally assigned function to provinces Eastern Cape 238 745 252 115 269 007
(Vote 35) services provided by provincial departments of transport. Free State 263 954 278 735 297 410
Gauteng 2 306 888 2 436 074 2 599 291
KwaZulu-Natal 1 106 154 1 168 099 1 246 362
Limpopo 356 809 376 790 402 035
Mpumalanga 600 790 634 434 676 941
Northern Cape 53 715 56 723 60 524
North West 110 419 116 603 124 415
Western Cape 952 824 1 006 182 1 073 596
TOTAL 5 990 298 6 325 755 6 749 581
 SCHEDULE 4, PART B

ALLOCATIONS TO MUNICIPALITIES TO SUPPLEMENT THE FUNDING OF FUNCTIONS FUNDED FROM MUNICIPAL BUDGETS

Column A Column B
Vote Name of allocation Purpose City Forward Estimates
2018/19
2019/20 2020/21
1 R'000 R'000 R'000
Human Settlements Urban Settlements Development Grant Supplements the capital revenues of metropolitan municipalities in order to support the national human Buffalo City 762 992 801 772 845 886
(Vote 38) settlements development programme, focusing on poor households. City of Cape Town 1 484 790 1 560 257 1 646 104
City of Ekurhuleni 1 971 737 2 071 952 2 185 954
City of Johannesburg 1 852 262 1 946 406 2 053 499
City of Tshwane 1 605 607 1 687 214 1 780 046
eThekwini 1 966 869 2 066 837 2 180 557
Mangaung 756 216 794 652 838 374
Nelson Mandela Bay 905 664 951 696 1 004 059
TOTAL 11 306 137 11 880 786 12 534 479
National Treasury Integrated City Development Grant To provide a financial incentive for metropolitan municipalities to achieve a more compact urban spatial Buffalo City 10 003 11 494 12 134
(Vote 7) form through integrating and focussing their use of available infrastructure investment and regulatory City of Cape Town 64 362 56 921 60 092
instruments. City of Ekurhuleni 45 537 48 375 51 069
City of Johannesburg 63 536 67 496 71 255
City of Tshwane 45 013 44 464 46 940
eThekwini 45 596 52 391 55 309
43

Mangaung 7 207 11 376 12 009

Nelson Mandela Bay 12 355 17 534 18 511
TOTAL 293 609 310 051 327 319
 SCHEDULE 5, PART A

SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Agriculture, Forestry and (a) Comprehensive Agricultural Support To provide effective agricultural support services, promote Conditional allocation Eastern Cape 262 161 253 038 269 992
Fisheries Programme Grant and facilitate agricultural development by targeting Free State 179 476 174 538 186 232
(Vote 24) beneficiaries of land reform, restitution and redistribution, and Gauteng 92 333 94 648 100 989
other black producers who have acquired land through private
KwaZulu-Natal 223 975 206 650 220 496
means and are engaged in value-adding enterprises
domestically, or the export market; to address damages to Limpopo 256 521 255 569 272 692
infrastructure caused by floods. Mpumalanga 162 907 159 717 170 418
Northern Cape 252 434 123 832 132 129
North West 176 054 170 893 182 342
Western Cape 144 949 155 763 166 199
Unallocated - 281 408 300 263
TOTAL 1 750 810 1 876 056 2 001 752
Agriculture, Forestry and (b) Ilima/Letsema Projects Grant To assist vulnerable South African farming communities to Conditional allocation Eastern Cape 71 263 75 254 79 393
Fisheries achieve an increase in agricultural production and invest in Free State 66 843 70 586 74 468
(Vote 24) infrastructure that unlocks agricultural production within Gauteng 30 278 31 974 33 733
strategically identified grain, livestock and horticulture
KwaZulu-Natal 71 263 75 253 79 392
44

production areas.
Limpopo 71 263 75 254 79 393
Mpumalanga 58 242 61 504 64 887
Northern Cape 60 766 64 169 67 698
North West 66 843 70 586 74 468
Western Cape 55 662 58 779 62 012
TOTAL 552 423 583 359 615 444
Agriculture, Forestry and (c) Land Care Programme Grant: Poverty To promote sustainable use and management of natural Conditional allocation Eastern Cape 10 966 11 063 11 671
Fisheries Relief and Infrastructure Development resources by engaging in community based initiatives that Free State 7 650 8 415 8 878
(Vote 24) support the pillars of sustainability (social, economic and Gauteng 5 399 5 675 5 987
environmental), leading to greater productivity, food security,
KwaZulu-Natal 12 016 12 418 13 101
job creation and better well-being for all.
Limpopo 12 603 12 863 13 570
Mpumalanga 8 310 9 141 9 644
Northern Cape 7 753 8 166 8 615
North West 8 398 9 238 9 746
Western Cape 4 778 5 255 5 545
TOTAL 77 873 82 234 86 757
 SCHEDULE 5, PART A

SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Arts and Culture Community Library Services Grant To transform urban and rural community library Conditional allocation Eastern Cape 160 584 169 324 178 656
(Vote 37) infrastructure, facilities and services (primarily targeting Free State 159 504 168 191 177 482
previously disadvantaged communities) through a Gauteng 168 530 177 784 187 681
recapitalised programme at provincial level in support of local
KwaZulu-Natal 174 397 183 917 194 072
government and national initiatives.
Limpopo 125 643 132 314 139 500
Mpumalanga 162 479 171 389 180 910
Northern Cape 159 554 168 250 177 562
North West 136 369 143 767 151 733
Western Cape 176 624 186 263 196 526
TOTAL 1 423 684 1 501 199 1 584 122
Basic Education (a) HIV and AIDS (Life Skills Education) 7RVXSSRUW6RXWK$IULFD¶V+,9SUHYHQWLRQVWUDWHJ\E\ Conditional allocation Eastern Cape 43 062 45 455 47 878
(Vote 14) Grant providing comprehensive sexuality education and access to Free State 13 413 14 148 14 853
sexual and reproductive health services to learners and Gauteng 35 959 37 907 39 869
supporting the provision of employee health and wellness
KwaZulu-Natal 58 922 62 155 65 450
programmes for educators; to mitigate the impact of HIV and
Limpopo 27 116 29 124 31 137
45

Tuberculosis by providing a caring, supportive and enabling

environment for learners and educators; to reduce the Mpumalanga 20 819 21 919 22 994
vulnerability of children to HIV, Tuberculosis and sexually Northern Cape 5 356 5 594 5 794
transmitted infections, with a particular focus on orphaned North West 17 884 18 849 19 791
children and girls. Western Cape 20 704 21 800 22 878
TOTAL 243 235 256 951 270 644
Basic Education (b) Learners With Profound Intellectual To provide the necessary support, resources and equipment to Conditional allocation Eastern Cape 23 957 28 448 30 910
(Vote 14) Disabilities Grant identified care centres and schools for the provision of Free State 20 386 25 369 27 664
education to children with severe to profound intellectual Gauteng 26 451 30 238 32 715
disabilities.
KwaZulu-Natal 27 230 33 279 35 586
Limpopo 21 700 26 839 28 932
Mpumalanga 20 709 24 879 27 884
Northern Cape 6 508 8 268 11 260
North West 12 797 15 267 17 414
Western Cape 25 733 28 198 30 499
TOTAL 185 471 220 785 242 864
 SCHEDULE 5, PART A

SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Basic Education (c) Maths, Science and Technology Grant To provide support and resources to schools, teachers and Conditional allocation Eastern Cape 46 805 49 434 51 875
(Vote 14) learners in line with the Curriculum Assessment Policy Free State 34 349 36 277 38 714
Statements for the improvement of Maths, Science and Gauteng 53 062 56 042 58 483
Technology teaching and learning at selected public schools.
KwaZulu-Natal 61 203 64 638 67 079
Limpopo 43 364 45 802 48 239
Mpumalanga 38 206 40 354 42 794
Northern Cape 24 564 25 948 28 388
North West 36 347 38 391 40 831
Western Cape 32 583 34 416 36 856
TOTAL 370 483 391 302 413 259
Basic Education (d) National School Nutrition Programme To provide nutritious meals to targeted schools. Conditional allocation Eastern Cape 1 216 559 1 277 387 1 368 127
(Vote 14) Grant Free State 379 369 398 337 426 633
Gauteng 807 454 847 827 908 052
KwaZulu-Natal 1 534 878 1 611 622 1 726 104
Limpopo 1 229 299 1 290 763 1 382 453
46

Mpumalanga 651 036 683 588 732 147

Northern Cape 170 211 178 722 191 160
North West 456 176 478 985 513 015
Western Cape 357 097 374 952 401 586
Unallocated - 43 532 46 624
TOTAL 6 802 079 7 185 715 7 695 901
Health (a) Comprehensive HIV, AIDS and TB To enable the health sector to develop and implement an Conditional allocation Eastern Cape 2 098 633 2 301 704 2 552 300
(Vote 16) Grant effective response to HIV and AIDS and Tuberculosis; to Free State 1 199 425 1 326 643 1 471 080
fund Community Outreach Services; prevention and Gauteng 4 239 277 4 909 315 5 522 037
protection of health workers of exposure to hazards in the
KwaZulu-Natal 5 677 225 6 114 218 6 701 673
workplace.
Limpopo 1 600 516 1 764 331 1 956 421
Mpumalanga 1 744 627 1 939 243 2 150 377
Northern Cape 515 155 549 437 609 257
North West 1 315 304 1 467 366 1 627 124
Western Cape 1 531 535 1 666 738 1 848 202
TOTAL 19 921 697 22 038 995 24 438 471
 SCHEDULE 5, PART A

SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Health (b) Health Facility Revitalisation Grant To help accelerate construction, maintenance, upgrading and Conditional allocation Eastern Cape 652 071 580 753 612 694
(Vote 16) rehabilitation of new and existing infrastructure in health Free State 576 362 502 034 529 645
including, health technology, organisational development Gauteng 874 842 864 748 912 310
systems and quality assurance; to enhance capacity to deliver
KwaZulu-Natal 1 202 480 1 153 049 1 216 467
health infrastructure.
Limpopo 536 898 461 000 486 355
Mpumalanga 333 935 347 212 366 310
Northern Cape 374 391 389 281 410 692
North West 585 886 511 935 540 091
Western Cape 678 829 608 575 642 046
Unallocated - 628 386 662 947
TOTAL 5 815 694 6 046 973 6 379 557
Health (c) Human Papillomavirus Vaccine Grant To enable the health sector to prevent cervical cancer by Conditional allocation Eastern Cape 33 471 35 345 37 289
(Vote 16) making available Human Papillomavirus vaccination for Free State 11 608 12 258 12 932
grade four school girls in all public and special schools. Gauteng 27 312 28 841 30 427
KwaZulu-Natal 44 976 47 495 50 107
47

Limpopo 27 471 29 009 30 604

Mpumalanga 17 665 18 654 19 680
Northern Cape 4 634 4 894 5 163
North West 13 264 14 007 14 777
Western Cape 19 599 20 697 21 835
TOTAL 200 000 211 200 222 816
Human Settlements (a) Human Settlements Development Grant To provide funding for the creation of sustainable and Conditional allocation Eastern Cape 1 908 439 1 982 512 2 123 601
(Vote 38) integrated human settlements. Free State 1 072 422 1 111 476 1 185 866
Gauteng 5 046 583 5 236 578 5 598 471
KwaZulu-Natal 3 152 757 3 275 125 3 508 205
Limpopo 1 287 681 1 331 247 1 414 229
Mpumalanga 1 278 427 1 322 832 1 407 412
Northern Cape 474 791 487 930 512 958
North West 1 926 644 1 987 972 2 104 786
Western Cape 2 018 776 2 097 130 2 246 376
TOTAL 18 166 520 18 832 802 20 101 904
 SCHEDULE 5, PART A

SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Human Settlements (b) Title Deeds Restoration Grant To provide funding for the eradication of the pre-2014 title Conditional allocation Eastern Cape 65 583 69 250 73 056
(Vote 38) deeds registration backlog and the professional fees associated Free State 50 187 52 993 55 905
with it, including beneficiary verification. Gauteng 105 811 111 726 117 890
KwaZulu-Natal 101 422 107 140 113 028
Limpopo 22 506 23 764 25 070
Mpumalanga 51 734 54 626 57 628
Northern Cape 20 364 21 503 22 685
North West 50 687 53 521 56 462
Western Cape 50 361 53 177 56 099
TOTAL 518 655 547 700 577 823
Public Works (a) Expanded Public Works Programme To incentivise provincial departments to expand work creation Conditional allocation Eastern Cape 90 077 - -
(Vote 11) Integrated Grant for Provinces efforts through the use of labour intensive delivery methods in Free State 27 378 - -
the following identified focus areas, in compliance with the Gauteng 46 758 - -
Expanded Public Works Programme guidelines: road
KwaZulu-Natal 124 565 - -
maintenance and the maintenance of buildings; low traffic
Limpopo 25 864 - -
48

volume roads and rural roads; other economic and social

infrastructure; tourism and cultural industries; sustainable land Mpumalanga 32 816 - -
based livelihoods; waste management. Northern Cape 21 769 - -
North West 17 673 - -
Western Cape 29 136 - -
Unallocated - 451 505 476 338
TOTAL 416 036 451 505 476 338
Public Works (b) Social Sector Expanded Public Works To incentivise provincial social sector departments, identified Nationally assigned function to provinces Eastern Cape 30 831 - -
(Vote 11) Programme Incentive Grant for Provinces in the 2017 social sector Expanded Public Works Programme Free State 52 518 - -
log-frame to increase job creation by focusing on the Gauteng 14 241 - -
strengthening and expansion of social sector programmes that
KwaZulu-Natal 76 409 - -
have employment potential.
Limpopo 49 392 - -
Mpumalanga 56 241 - -
Northern Cape 35 657 - -
North West 44 812 - -
Western Cape 47 847 - -
Unallocated - 430 793 454 487
TOTAL 407 948 430 793 454 487
 SCHEDULE 5, PART A

SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES

Column A Column B
Vote Name of allocation Purpose Type of allocation Province Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Social Development (a) Early Childhood Development Grant To increase the number of poor children accessing subsidised General conditional allocation to provinces Eastern Cape 78 715 83 115 88 685
(Vote 17) early childhood development services through centre-based Free State 21 656 22 865 24 397
early childhood development services; to improve the Gauteng 62 777 66 287 70 728
registration status of centre-based early childhood
KwaZulu-Natal 107 543 113 556 121 163
development centres providing an early childhood
development programme to meet basic requirements. Limpopo 68 561 72 389 77 240
Mpumalanga 41 998 44 344 47 315
Northern Cape 18 472 19 503 20 809
North West 52 185 55 102 58 794
Western Cape 38 893 41 067 43 818
TOTAL 490 800 518 228 552 949
Social Development (b) Substance Abuse Treatment Grant To provide funding for the operationalization (including the Conditional allocation Eastern Cape 17 708 18 700 19 729
(Vote 17) purchasing of equipment) of substance dependency treatment Free State 17 708 18 700 19 728
facilities in the provinces of Eastern Cape, Free State, Gauteng - - -
Northern Cape and North West.
KwaZulu-Natal - - -
Limpopo - - -
49

Mpumalanga - - -
Northern Cape 17 709 18 700 19 728
North West 17 708 18 700 19 729
Western Cape - - -
TOTAL 70 833 74 800 78 914
Sport and Recreation South Mass Participation and Sport Development To facilitate sport and active recreation participation and Conditional allocation Eastern Cape 67 020 70 994 75 125
Africa Grant empowerment in partnership with relevant stakeholders. Free State 95 986 100 839 105 883
(Vote 40) Gauteng 85 482 91 457 97 300
KwaZulu-Natal 98 739 104 864 111 599
Limpopo 67 679 71 490 75 450
Mpumalanga 46 463 48 408 50 798
Northern Cape 31 319 32 086 32 883
North West 41 855 43 814 45 850
Western Cape 52 843 56 064 59 044
TOTAL 587 386 620 016 653 932
 SCHEDULE 5, PART B

SPECIFIC-PURPOSE ALLOCATIONS TO MUNICIPALITIES

Column A Column B
Vote Name of allocation Purpose Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
RECURRENT GRANTS
Cooperative Governance Municipal Systems Improvement Grant To assist municipalities to perform their functions and stabilise institutional and governance systems as required in the Municipal
and Traditional Affairs Systems Act and related local government legislation. - - -
(Vote 4)
Energy Energy Efficiency and Demand Side To provide subsidies to municipalities to implement energy efficiency and demand side management initiatives within municipal
(Vote 26) Management Grant infrastructure in order to reduce electricity consumption and improve energy efficiency. 215 024 227 065 239 554

National Treasury (a) Infrastructure Skills Development Grant To recruit unemployed graduates into municipalities to be trained and professionally developed, as per the requirements of the
(Vote 7) relevant statutory councils within the built environment. 141 492 149 416 157 930

National Treasury (b) Local Government Financial To promote and support reforms in financial management by building capacity in municipalities to implement the Municipal Finance
(Vote 7) Management Grant Management Act. 504 566 532 822 561 713

National Treasury (c) Municipal Restructuring Grant To assist municipalities in financial crisis to implement reforms to improve their financial sustainability.
- - 514 425
(Vote 7)
Public Works Expanded Public Works Programme To incentivise municipalities to expand work creation efforts through the use of labour intensive delivery methods in the following
(Vote 11) Integrated Grant for Municipalities identified focus areas, in compliance with the Expanded Public Works Programme guidelines: roads maintenance and the
maintenance of buildings; low traffic volume roads and rural roads; basic services infrastructure, including water and sanitation
reticulation (excluding bulk infrastructure); other economic and social infrastructuretourism and cultural industries; waste 692 878 741 917 782 918
50

management; parks and beautification; sustainable land-based livelihoods; social services programmes; community safety
programmes.
TOTAL 1 553 960 1 651 220 2 256 540
 SCHEDULE 5, PART B

SPECIFIC-PURPOSE ALLOCATIONS TO MUNICIPALITIES

Column A Column B
Vote Name of allocation Purpose Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
INFRASTRUCTURE GRANTS
Cooperative Governance (a) Municipal Disaster Recovery Grant To rehabilitate and reconstruct municipal infrastructure damaged by a disaster.
and Traditional Affairs 21 317 - -
(Vote 4)
Cooperative Governance (b) Municipal Infrastructure Grant To provide specific capital finance for eradicating basic municipal infrastructure backlogs for poor households, microenterprises and
and Traditional Affairs social institutions servicing poor communities; a Municipal Infrastructure Grant-2 funding stream is introduced in 2018/19 as a step
15 287 685 15 733 731 16 599 086
(Vote 4) towards a new funding arrangement for intermediate city municipalities to facilitate more intergrated planning and funding of capital
investments.
Energy Integrated National Electrification To implement the Integrated National Electrification Programme by providing capital subsidies to municipalities to address the
(Vote 26) Programme Grant (Municipal) electrification backlog of all existing and planned residential dwellings (including upgrading informal settlements, new and 1 904 477 2 127 928 2 244 964
normalisation of existing dwellings) and the installation of relevant bulk infrastructure.
National Treasury Neighbourhood Development Partnership To plan, catalyse, and invest in targeted locations in order to attract and sustain third party capital investments aimed at spatial
(Vote 7) Grant (Capital) WUDQVIRUPDWLRQWKDWZLOOLPSURYHWKHTXDOLW\RIOLIHDQGDFFHVVWRRSSRUWXQLWLHVIRUUHVLGHQWVLQ6RXWK$IULFD¶VXQGHUVHUYHG 601 867 621 172 654 936
neighbourhoods, generally townships.
Transport (a) Public Transport Network Grant To provide funding for accelerated construction and improvement of public and non-motorised transport infrastructure that form
(Vote 35) part of a municipal integrated public transport network and to support the planning, regulation, control, management and operations 6 253 669 6 114 248 6 450 172
of fiscally and financially sustainable municipal public transport network services.
51

Transport (b) Rural Roads Asset Management To assist district municipalities to set up rural Rural Asset Management Systems, and collect road, bridges and traffic data on
(Vote 35) 107 533 113 891 120 485
Systems Grant municipal road networks in line with the Road Infrastructure Strategic Framework for South Africa.
Water and Sanitation (a) Water Services Infrastructure Grant Facilitate the planning and implementation of various water and on-site sanitation projects to accelerate backlog reduction and
(Vote 36) enhance the sustainability of services especially in rural municipalities; provide interim, intermediate water and sanitation supply that
ensures provision of services to identified and prioritised communities, including through spring protection and groundwater
development; support municipalities in implementing Water Conservation and Water Demand Management projects; support the 3 481 056 3 669 319 3 870 972
existing bucket eradication programme intervention in formal residential areas; support drought relief projects in affected
municipalities.
Water and Sanitation (b) Regional Bulk Infrastructure Grant To develop new, refurbish, upgrade and replace ageing water and sanitation infrastructure of regional significance that connects
(Vote 36) water resources to infrastructure serving extensive areas across municipal boundaries or large regional bulk infrastructure serving
numerous communities over a large area within a municipality; to implement bulk infrastructure with a potential of addressing Water
Conservation and Water Demand Management projects or facilitate and contribute to the implementation of local Water 1 957 000 2 066 360 2 180 005
Conservation and Water Demand Management projects that will directly impact on bulk infrastructure requirements.

TOTAL 29 614 604 30 446 649 32 120 620

 SCHEDULE 6, PART A

ALLOCATIONS-IN-KIND TO PROVINCES FOR DESIGNATED SPECIAL PROGRAMMES

Column A Column B
Vote Name of allocation Purpose Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Basic Education School Infrastructure Backlogs Grant Eradication of all inappropriate school infrastructure; provision of water, sanitation and electricity to schools.
1 471 826 1 327 048 969 036
(Vote 14)
Health National Health Insurance Indirect Grant To create an alternative track to improve spending, performance as well as monitoring and evaluation on infrastructure in
(Vote 16) preparation for National Health Insurance; to enhance capacity and capability to deliver infrastructure for National Health Insurance;
to accelerate the fulfilment of the requirements of Occupational Health and Safety; to expand the alternative models for the
dispensing and distribution of chronic medication; to fund the development of and roll-out of new Health Information Systems in
2 303 859 3 038 691 3 775 194
Preparation for National Health Insurance; to develop a risk-adjusted capitation model for the reimbursement of primary health care;
to enable the health sector to address the deficiencies in the primary health care facilities systematically to yield fast results; to
expand the healthcare service benefits through the strategic purchasing of services from healthcare providers.

TOTAL 3 775 685 4 365 739 4 744 230

52
 SCHEDULE 6, PART B

ALLOCATIONS-IN-KIND TO MUNICIPALITIES FOR DESIGNATED SPECIAL PROGRAMMES

Column A Column B
Vote Name of allocation Purpose Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Cooperative Governance Municipal Systems Improvement Grant To assist municipalities to perform their functions and stabilise institutional and governance systems as required in the Municipal
and Traditional Affairs Systems Act and related local government legislation. 115 116 121 562 128 248
(Vote 4)
Energy Integrated National Electrification To implement the Integrated National Electrification Programme by providing capital subsidies to Eskom to address the
(Vote 26) Programme Grant (Eskom) electrification backlog of occupied residential dwellings, the installation of bulk infrastructure and rehabilitation and refurbishment of 3 262 031 3 432 453 3 621 488
electricity infrastructure in order to improve quality of supply in Eskom licenced areas.
National Treasury Neighbourhood Development Partnership To plan, catalyse, and invest in targeted locations in order to attract and sustain third party capital investments aimed at spatial
(Vote 7) Grant (Technical Assistance) WUDQVIRUPDWLRQWKDWZLOOLPSURYHWKHTXDOLW\RIOLIHDQGDFFHVVWRRSSRUWXQLWLHVIRUUHVLGHQWVLQ6RXWK$IULFD¶VXQGHUVHUYHG 29 353 30 997 32 702
neighbourhoods, generally townships.
Water and Sanitation (a) Water Services Infrastructure Grant Facilitate the planning and implementation of various water and on-site sanitation projects to accelerate backlog reduction and
(Vote 36) enhance the sustainability of services especially in rural municipalities; provide interim, intermediate water and sanitation supply that
ensures provision of services to identified and prioritised communities, including through spring protection and groundwater
development; support municipalities in implementing Water Conservation and Water Demand Management projects; support the 608 175 642 233 677 556
existing bucket eradication programme intervention in formal residential areas; support drought relief projects in affected
municipalities.
Water and Sanitation (b) Regional Bulk Infrastructure Grant To develop new, refurbish, upgrade and replace ageing water and sanitation infrastructure of regional significance that connects
(Vote 36) water resources to infrastructure serving extensive areas across municipal boundaries or large regional bulk infrastructure serving
53

numerous communities over a large area within a municipality; to implement bulk infrastructure with a potential of addressing Water
2 880 922 3 037 295 3 204 346
Conservation and Water Demand Management projects or facilitate and contribute to the implementation of local Water
Conservation and Water Demand Management projects that will directly impact on bulk infrastructure requirements.

TOTAL 6 895 597 7 264 540 7 664 340

 SCHEDULE 7, PART A

UNALLOCATED PROVISIONS FOR PROVINCES FOR DISASTER RESPONSE

Column A Column B
Vote Name of allocation Purpose Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Cooperative Governance
and Traditional Affairs Provincial Disaster Relief Grant To provide for the immediate release of funds for disaster response. 123 591 130 904 138 489
(Vote 4)
Human Settlements
Provincial Emergency Housing Grant To provide funding to provinces for provision of temporary shelter assistance to households affected by disasters. 260 000 276 900 294 899
(Vote 38)
TOTAL 383 591 407 804 433 388

SCHEDULE 7, PART B

UNALLOCATED PROVISIONS FOR MUNICIPALITIES FOR DISASTER RESPONSE

Column A Column B
Vote Name of allocation Purpose Forward Estimates
2018/19
2019/20 2020/21
R'000 R'000 R'000
Cooperative Governance
54

and Traditional Affairs Municipal Disaster Relief Grant To provide for the immediate release of funds for disaster response. 349 280 335 488 353 940
(Vote 4)
Human Settlements
Municipal Emergency Housing Grant To provide funding to municipalities for provision of temporary shelter assistance to households affected by disasters. 140 000 149 100 158 792
(Vote 38)
TOTAL 489 280 484 588 512 732
 55

MEMORANDUM ON THE OBJECTS OF THE DIVISION OF

REVENUE BILL, 2018

1. BACKGROUND

1.1 Section 214(1) of the Constitution of the Republic of South Africa, 1996,
(‘‘the Constitution’’) requires that an Act of Parliament must provide for—
(a) the equitable division of revenue raised nationally among the national,
provincial and local spheres of government;
(b) the determination of each province’s equitable share of the provincial
share of that revenue; and
(c) any other allocations to provinces, local government or municipalities
from the national government’s share of that revenue, and for any
conditions on which those allocations may be made.

1.2 Section 10 of the Intergovernmental Fiscal Relations Act, 1997 (Act No. 97 of
1997), requires that, as part of the process of enactment of the Act of
Parliament referred to in paragraph 1.1, each year when the annual budget is
introduced, the Minister of Finance must introduce in the National Assembly
a Division of Revenue Bill (‘‘the Bill’’) for the financial year to which that
budget relates.

1.3 The Intergovernmental Fiscal Relations Act, 1997, requires that the Bill be
accompanied by a memorandum explaining—
(a) how the Bill takes account of each of the matters listed in section
214(2)(a) to (j) of the Constitution;
(b) the extent to which account was taken of any recommendations of the
Financial and Fiscal Commission (‘‘the FFC’’) that were submitted to the
Minister of Finance or were raised during consultations with the FFC;
and
(c) any assumptions or formulae used in arriving at the respective shares of
the three spheres of government and the division of the provincial share
between the nine provinces.

1.4 In terms of section 7(4) of the Money Bills Amendment Procedure and
Related Matters Act, 2009 (Act No. 9 of 2009), when tabling the budget, a
report must also be tabled that responds to the recommendations made in the
reports by the Parliamentary Committees on Finance on the proposed fiscal
framework in the Medium Term Budget Policy Statement and the reports by
the Committees on Appropriations regarding the proposed division of revenue
and the conditional grant allocations to provinces and local government as
contained in the Medium Term Budget Policy Statement. The report must
explain how the Bill and the national budget give effect to, or the reasons for
not taking into account, the recommendations contained in the Committee
reports.

1.5 The memorandum referred to in paragraph 1.3 is attached to this Memoran-

dum and will also be attached as ‘‘Annexure W1’’ to the Budget Review, and
the report referred to in paragraph 1.4 will be tabled with the budget.

1.6 The Bill is introduced in compliance with the Constitution, the Intergovern-
mental Fiscal Relations Act, 1997, and the Money Bills Amendment
Procedure and Related Matters Act, 2009, as set out in paragraphs 1.1 to 1.4.

1.7 The allocations contemplated in section 214(1) of the Constitution are set out
in the following Schedules to the Bill:

● Schedule 1 contains the equitable shares of the three spheres of government;

● Schedule 2 sets out provincial equitable share allocations;

● Schedule 3 sets out local government equitable share allocations per

municipality;
 56

● Schedules 4 to 7 deal with grant allocations for provinces and municipali-

ties, including allocations to supplement funding of functions funded from
provincial and municipal budgets, specific purpose allocations, allocations-
in-kind (indirect transfers to provinces and local government) and the
release of funds to provinces and municipalities for immediate response to
a disaster.

2. SUMMARY OF BILL

The following is a brief summary of the Bill:

● Clause 1 contains definitions;

● Clause 2 sets out the objects of the Bill, which are to provide for the equitable
division of revenue raised nationally among the three spheres and to promote
predictability and certainty in respect of allocations to provinces and municipali-
ties as well as transparency and accountability in the resource allocation process;

● Clause 3 provides for the equitable division of anticipated revenue raised

nationally among the national, provincial and local spheres of government,
which is set out in Schedule 1;

● Clause 4 provides for each province’s equitable share, which is set out in
Schedule 2, and that it must be transferred in terms of a payment schedule;

● Clause 5 provides for each municipality’s equitable share of revenue, which is

set out in Schedule 3 and that it must be transferred on dates specified in clause
5 in amounts as determined in terms of clause 23(2);

● Clause 6 determines what must happen if actual revenue raised falls short or is
in excess of anticipated revenue for the financial year, and allows for additional
conditional and unconditional allocations to be made from the national
government’s portion of the equitable share or excess revenue;

● Clause 7 provides for conditional allocations to provinces in Part A of Schedules

4 to 7;

● Clause 8 provides for conditional allocations to municipalities in Part B of

Schedules 4 to 7;

● Clauses 9 and 10 set out the duties of a transferring national officer in respect of
Schedules 4, 5 and 6 allocations;

● Clauses 11 and 12 set out the duties of a receiving officer in respect of Schedules
4, 5 and 7 allocations;

● Clauses 13 and 14 set out the additional duties of a receiving officer in respect of
infrastructure conditional allocations to provinces and to metropolitan munici-
palities;

● Clause 15 prescribes the duties in respect of annual financial statements and

annual reports for the 2018/19 financial year;

● Clause 16 requires the publication of certain allocations and all conditional grant
frameworks in the Government Gazette;

● Clause 17 requires that spending must only be in accordance with the purpose
and subject to the conditions set out in the grant frameworks for Schedules 4 to
7 allocations, and sets out funding related arrangements if a function partially or
fully funded by a conditional grant is assigned by a province to a municipality;

● Clauses 18 and 19 provide for the withholding and stopping of allocations;

 57

● Clause 20 provides for the reallocation of funds;

● Clause 21 provides for the possible conversion of certain allocations in order to

prevent under-spending on the allocation, if the affected national or provincial
department has demonstrated the capacity to implement projects;

● Clause 22 provides for the management of unspent conditional allocations;

● Clauses 23 and 24 provide for payment schedules and their amendment;

● Clause 25 provides for the recovery of any allocation transferred in error or

fraudulently;

● Clause 26 provides for allocations not listed in the Schedules;

● Clause 27 provides for preparations for the 2019/20 and 2020/21 financial years;

● Clause 28 deals with transfers before the commencement of the Division of

Revenue Act for the 2019/20 financial year and the conditions attached to such
transfers;

● Clause 29 sets out the duties of municipalities;

● Clause 30 sets out the duties and powers of provincial treasuries;

● Clause 31 sets out the duties and powers of the National Treasury;

● Clauses 32 to 37 provide for general matters such as liability for costs incurred
in violation of principles of co-operative governance and intergovernmental
relations, irregular expenditure, financial misconduct, delegations and assign-
ments, exemptions and the power of the Minister of Finance to make regulations;

● Clause 38 provides for the repeal of laws;

● Clauses 39 provides for the short title and commencement.

3. ORGANISATIONS AND INSTITUTIONS CONSULTED

The following institutions were consulted on the Bill:

● Financial and Fiscal Commission;

● South African Local Government Association; and

● National and provincial departments.

4. FINANCIAL IMPLICATIONS TO THE STATE

This memorandum outlines the proposed division of revenue between the three
spheres of government, and the financial implications to government are limited to
the total transfers to provinces and local government as indicated in the Schedules
to the Bill.

5. CONSTITUTIONAL IMPLICATIONS

The Bill gives effect to section 214 of the Constitution.

6. PARLIAMENTARY PROCEDURE

6.1 The State Law Advisers and the National Treasury are of the opinion that this
Bill must be dealt with in accordance with the procedure prescribed by section
76(1) of the Constitution, since it provides for legislation envisaged in
Chapter 13 of the Constitution, and it includes provisions affecting the
 58

financial interests of the provincial sphere of government, as contemplated in

section 76(4)(b) of the Constitution.

6.2 Chapter 4 of the Constitution provides for the procedures that Bills must
follow in Parliament. Section 76 of the Constitution provides for parliamen-
tary procedure for ordinary Bills affecting the provinces. In terms of section
76(3) a Bill must be dealt with in accordance with the procedure established
by either subsection 76(1) or subsection 76(2) if it falls within a functional
area listed in Schedule 4.

6.3 In Stephen Segopotso Tongoane and Others v Minister for Agriculture and
Land Affairs and Others CCT100/9, [2010] ZACC 10 at paragraphs 70 and 72,
the Constitutional Court stated that the test for determining how a Bill is to be
tagged must be broader than that for determining legislative competence.
Whether a Bill is a section 76 Bill is determined in two ways: First by the
explicit list of legislative matters in section 76(3), and second by whether the
provisions of a Bill in substantial measure fall within a concurrent legislative
competence.

6.4 This test compels us to consider the substance, purpose and effect of the
subject matter of the Bill.

6.5 As already pointed out, the Bill provides for legislation envisaged in Chapter
13 of the Constitution. Furthermore, the Bill includes provisions affecting the
financial interests of the provincial sphere of government as contemplated in
section 76(4)(b) of the Constitution. We are therefore of the opinion that the
Bill must be dealt with in accordance with the procedure envisaged by section
76(1) of the Constitution.

6.6 The State Law Advisers are of the opinion that it is not necessary to refer this
Bill to the National House of Traditional Leaders in terms of section 18(1)(a)
of the Traditional Leadership and Governance Framework Act, 2003 (Act
No. 41 of 2003), since it does not contain provisions pertaining to customary
law or the customs of traditional communities.
 59

DIVISION OF REVENUE
ATTACHMENTS
Page
1. Website ‘‘Annexure W1’’ to the 2018 Budget Review:
Explanatory Memorandum to the Division of Revenue ...... 61
2. Annexure W2: Frameworks for Conditional Grants
to Provinces ........................................................................... 115
3. Annexure W3: Frameworks for Conditional Grants
to Municipalities.................................................................... 192
4. Annexure W4: Specific Purpose Allocations to
Municipalities (Schedule 5, Part B and Schedule 7,
Part B): Current Grants ......................................................... 237
5. Annexure W5: Infrastructure Grant Allocations to
Municipalities (Schedule 4, Part B and Schedule 5,
Part B).................................................................................... 244
6. Annexure W6: Allocations-In-Kind to Municipalities
(Schedule 6, Part B) .............................................................. 257
7. Annexure W7: Equitable Share and Total Allocations
to Municipalities ................................................................... 264
8. Appendix W1 to Schedule 3: Equitable Share Allocations
to Municipalities (Equitable Share Formula Allocations
+ RSC Levies Replacement + Special Support for
Councillor Remuneration and Ward Committees +
Breakdown of Equitable Share Allocations per Local
Municipality per Service for District Municipalities
Authorised for Services) ...................................................... 271
9. Appendix W2 to Schedule 5, Part B and Schedule 6,
Part B: Breakdown of Municipal Infrastructure Grant and
Water Services Infrastructure Grant Allocations
per Local Municipality for District Municipalities
Authorised for Services ........................................................ 278
10. Appendix W3 to Schedule 5, Part B: Municipal
Infrastructure Grant Ring-Fenced Funding for Sport
Infrastructure, Breakdown per Municipality ........................ 283
11. Appendix W4 to Schedule 5, Part B: Targets for
EPWP Integrated Grant for Municipalities .......................... 286
12. Appendix W5 to Schedule 5, Part B and Schedule 6,
Part B: Breakdown of Regional Bulk Infrastructure
Grant Allocations per Local Municipality per Project ......... 293
13. Appendix W6 to Schedule 5, Part A: Breakdown of
EPWP Integrated Grant for Provinces: Targets and
Allocations per Provincial Department ................................ 299
 60

14. Appendix W7 to Schedule 5, Part A: Breakdown of

Social Sector EPWP Incentive Grant for Provinces:
Allocations per Provincial Department ................................ 302
15. Appendix W8 to Schedule 5, Part A: Breakdown of
the Comprehensive HIV, Aids and TB Grant: Allocations
per Grant Component per Province ..................................... 304
16. Appendix W9 to Schedule 6, Part A: Breakdown of
National Health Insurance Indirect Grant: Allocations
per Grant Component per Province ..................................... 306
17. Appendix W10 to Schedule 6, Part A: Breakdown
of School Infrastructure Backlogs Grant: Allocations
per Province .......................................................................... 308
18. Appendix W11 to Schedule 4, Part A and Schedule 5,
Part A: Breakdown of Ring Fenced Disaster Allocations
for Provinces per Grant ........................................................ 310
19. Appendix W12 to Schedule 5, Part A: Breakdown of
the Early Childhood Development Grant: Allocations
per Grant Component per Province ..................................... 312
 61

EXPLANATORY MEMORANDUM
TO THE DIVISION OF REVENUE
(Website ³$QQH[XUHW1´to the 2018 Budget Review)
 62

W1
Explanatory memorandum to the
division of revenue

Background
Section 214(1) of the Constitution requires that every year a Division of Revenue Act determine the
equitable division of nationally raised revenue between national government, the nine provinces and
257 municipalities. The division of revenue process takes into account the powers and functions assigned
to each sphere, fosters transparency and is at the heart of constitutional cooperative governance.
The Intergovernmental Fiscal Relations Act (1997) prescribes the steps for determining the equitable
sharing and allocation of nationally raised revenue. Sections 9 and 10(4) of the act set out the consultation
process to be followed with the Financial and Fiscal Commission (FFC), including considering
recommendations made regarding the division of revenue.
This explanatory memorandum to the 2018 Division of Revenue Bill fulfils the requirement set out in
section 10(5) of the Intergovernmental Fiscal Relations Act that the bill be accompanied by an explanatory
memorandum detailing how it takes account of the matters listed in sections 214(2)(a) to (j) of the
&RQVWLWXWLRQ JRYHUQPHQW¶V UHVSRQVH WR WKH ))&¶V UHFRPPHQGDWLRQV DQG DQ\ DVVXPSWLRQV DQG IRUPXODV
used in arriving at the respective divisions among provinces and municipalities. This memorandum
compliments the discussion of the division of revenue in chapter 6 of the budget review. This explanatory
memorandum has six sections:
x Part 1 lists the factors that inform the division of resources between national, provincial and local
government.
x Part 2 describes the 2018 division of revenue.
x Part VHWVRXWKRZWKH))&¶VUHFRPPHQGDWLRQVRQWKH8 division of revenue have been taken into
account.
x Part 4 explains the formula and criteria for the division of the provincial equitable share and conditional
grants among provinces.
x Part 5 sets out the formula and criteria for the division of the local government equitable share and
conditional grants among municipalities.
x Part 6 summarises issues that will form part of subsequent reviews of provincial and local government
fiscal frameworks.
 63

The Division of Revenue Bill and its underlying allocations are the result of extensive consultation
between national, provincial and local government. The Budget Council deliberated on the matters
discussed in this memorandum at several meetings during the year. The approach to local government
allocations was discussed with organised local government at technical meetings with the South African
Local Government Association (SALGA), culminating in meetings of the Budget Forum (the Budget
Council and SALGA). An extended Cabinet meeting involving ministers, provincial premiers and the
SALGA chairperson was held in October 2017. The division of revenue, and the government priorities that
underpin it, was agreed for the next three years.

Part 1: Constitutional considerations

Section 214 of the Constitution requires that the annual Division of Revenue Act be enacted after factors in
sub-sections (2)(a) to (j) of the Constitution are taken into account. The constitutional principles
considered in the division of revenue are briefly noted below.

National interest and the division of resources

The national interest is captured in governance goals that benefit the nation as a whole. The National
Development Plan sets out a long-WHUPYLVLRQIRUWKHFRXQWU\¶VGHYHORSPHQW7KLVLVFRPSOHPHQWHGE\WKH
strategic integrated projects overseen by the Presidential Infrastructure Coordinating Council and the
14 priority outcomes adopted by Cabinet in 2014 for the 2014±2019 medium-term strategic framework. In
the 2017 Medium Term Budget Policy Statement, the Minister of Finance outlined how the resources
available to government over the 2018 medium-term expenditure framework (MTEF) would be allocated
to help achieve these goals. Cabinet¶VFRPPLWPHQWWR keeping South $IULFD¶VGHEWRQDVXVWDLQDEOHSDWK is
coupled with commitments to new national priorities that have emerged and must be accommodated in the
budget. Chapter 4 of the 2017 Medium Term Budget Policy Statement and Chapters 5 and 6 of the
2018 Budget Review discuss how funds have been allocated across the three spheres of government based
on these priorities. The framework for each conditional grant allocated as part of the division of revenue
also notes how the grant is linked to the 14 priority outcomes.

Provision for debt costs

The resources shared between national, provincial and local government include proceeds from national
government borrowing used to fund public spending. National government provides for the resulting debt
FRVWVWRSURWHFWWKHFRXQWU\¶VLQWHJULW\DQGFUHGLWUHSXWDWLRQ$PRUHGHWDLOHGGLVFXVVLRQFDQEHIRXQGLQ
Chapter 7 of the 2018 Budget Review.

1DWLRQDOJRYHUQPHQW¶VQHHGVDQGLQWHUHVWV
The Constitution assigns exclusive and concurrent powers and functions to each sphere of government.
National government is exclusively responsible for functions that serve the national interest and are best
centralised. National and provincial government have concurrent responsibility for a range of functions.
Provincial and local government receive equitable shares and conditional grants to enable them to provide
basic services and perform their functions. Functions may shift between spheres of government to better
PHHWWKHFRXQWU\¶VQHHGV, which is then reflected in the division of revenue. Changes continue to be made
to various national transfers to provincial and local government to improve their efficiency, effectiveness
and alignment with national strategic objectives.

Provincial and local government basic services

Provinces and municipalities are responsible for providing education, health, social development, housing,
roads, electricity and water, and municipal infrastructure services. They have the autonomy to allocate
resources to meet basic needs and respond to provincial and local priorities, while giving effect to national
objectives. The division of revenue provides equitable shares to provinces and local government, together
with conditional grants for basic service delivery.
 64

Growth in allocations to provincial and local government have been safeguarded to reflect the priority
placed on health, education and basic services, as well as the rising costs of these services as a result of
higher wages, and bulk electricity and water costs. Transfers to local government have grown significantly
in recent years, providing municipalities with greater resources to deliver basic services. This is in addition
WRORFDOJRYHUQPHQW¶VVXEVWDQWLDORZQ revenue-raising powers.
The 2018 division of revenue prioritises the sustained delivery of free basic services in municipalities.
New grants for emergency housing relief in both provinces and municipalities aim to improve government
response times to disasters that are outside the purview of the National Disaster Management Centre.

Fiscal capacity and efficiency

National government has primary revenue-raising powers. Provinces have limited revenue-raising capacity
and the resources required to deliver provincial functions do not lend themselves to self-funding or cost
recovery. Due to their limited revenue-raising potential, and their responsibility to implement government
priorities, provinces receive a larger share of nationally raised revenue than local government.
Municipalities finance most of their expenditure through property rates, user charges and fees. But their
ability to raise revenue varies ± rural municipalities raise significantly less revenue than large urban and
metropolitan municipalities.
/RFDO JRYHUQPHQW¶V VKDUH RI nationally raised revenue has increased from 3 per cent in 2000/01 to
9 per cent over the 2018 MTEF period. The local government equitable share formula incorporates a
revenue adjustment factor that considers the fiscal capacity of the recipient municipality (full details of the
formula are provided in part 5 of this annexure).
The mechanisms for allocating funds to provinces and municipalities are continuously reviewed to
improve their efficiency. As such, JRYHUQPHQW¶V approach to funding provincial infrastructure aims to
promote better planning and implementation, and improve efficiency in the delivery of health and
education infrastructure. To maximise the effect of allocations, many provincial and local government
conditional grants use criteria that consider the UHFLSLHQW¶VHIILFLHQF\ in using allocations in the past.

Developmental needs
Developmental needs are accounted for at two levels. First, in the determination of the division of revenue,
which continues to grow the provincial and local government shares of nationally raised revenue, and
second, in the formulas used to divide national transfers among municipalities and provinces.
Developmental needs are built into the equitable share formulas for provincial and local government and in
specific conditional grants, such as the municipal infrastructure grant, which allocates funds according to
the number of households in a municipality without access to basic services. Various infrastructure grants
and growing capital budgets aim to boost the economic and social development of provinces and
municipalities.

Economic disparities
The equitable share and infrastructure grant formulas are redistributive towards poorer provinces and
municipalities. Through the division of revenue, government continues to invest in economic infrastructure
(such as roads) and social infrastructure (such as schools, hospitals and clinics) to stimulate economic
development, create jobs, and address economic and social disparities.

Obligations in terms of national legislation

The Constitution gives provincial governments and municipalities the power to determine priorities and
allocate budgets. National government is responsible for developing policy, fulfilling national mandates,
setting national norms and standards for provincial and municipal functions, and monitoring the
implementation of concurrent functions. It also ensures that baseline reductions do not affect important
obligations that are already funded through existing provincial and local government allocations.
 65

The 2018 MTEF, through the division of revenue, continues to fund the delivery of provincial, municipal
and concurrent functions through a combination of conditional and unconditional grants.

Predictability and stability

Provincial and local government equitable share allocations are based on estimates of nationally raised
revenue. If this revenue falls short of estimates within a given year, the equitable shares of provinces and
local government will not be adjusted downwards. Allocations are assured (voted, legislated and
guaranteed) for the first year and are transferred according to a payment schedule. To contribute to longer-
term predictability and stability, estimates for a further two years are published with the annual proposal
for appropriations. Adjusted estimates as a result of changes to data underpinning the equitable share
formulas and revisions to the formulas themselves are phased in to ensure minimal disruption.

Flexibility in responding to emergencies

Government has a contingency reserve for emergencies and unforeseeable events. In addition, four
conditional grants for disasters and housing emergencies allow for the swift allocation and transfer of
funds to affected provinces and municipalities in the immediate aftermath of a disaster. Sections 16 and 25
of the Public Finance Management Act (1999) make specific provision for the allocation of funds to deal
with emergency situations. Section 30(2) deals with adjustment allocations for unforeseeable and
unavoidable expenditure. Section 29 of the Municipal Finance Management Act (2003) allows a municipal
mayor to authorise unforeseeable and unavoidable expenditure in an emergency.

Part 2: The 2018 division of revenue

The central fiscal objectives over the MTEF period are to stabilise the growth of debt as a share of GDP
and to strictly adhere to the planned expenditure ceiling (see Chapters 1, 3 and 5 of the 2018 Budget
Review). However, the most important public spending programmes that help poor South Africans,
contribute to growth and generate employment have been protected from major reductions. The 2018
division of revenue reprioritises existing funds to ensure these objectives are met despite a lower
expenditure ceiling. Parts 4 and 5 of this annexure set out in more detail how the baseline reductions affect
provincial and local government transfers.
Excluding debt-service costs and the contingency reserve, allocated expenditure shared across government
amounts to R1.32 trillion, R1.43 trillion and R1.53 trillion over each of the MTEF years. These allocations
WDNH LQWR DFFRXQW JRYHUQPHQW¶V VSHQGLQJ SULRULWLHV HDFK VSKHUH¶V UHYHQXH-raising capacity and
responsibilities, and input from various intergovernmental forums and the FFC. The provincial and local
equitable share formulas are designed to ensure fair, stable and predictable revenue shares, and to address
economic and fiscal disparities.

*RYHUQPHQW¶VSROLF\SULRULWLHVIRUWKH8 MTEF period

Following the reductions to the baseline, existing budgets need to be reprioritised WR PHHW JRYHUQPHQW¶V
policy priorities outlined in the medium-term strategic framework. Priorities over the 2018 MTEF period
that are funded through reprioritisations in the division of revenue include:
x Improving JRYHUQPHQW¶V responsiveness to housing disasters through the introduction of emergency
housing grants.
x Intensifying the role of home-based carers in improving national health through earmarked
supplementary funds from the comprehensive HIV, AIDS and TB grant.
x Protecting the school nutrition initiative by ensuring that allocations continue to feed more children.
x Providing free basic services to poor households.
x Promoting access to social housing by boosting subsidies.
 66

The fiscal framework

Table W1.1 presents the medium-term macroeconomic forecasts for the 2018 Budget. It sets out the
growth assumptions and fiscal policy targets on which the fiscal framework is based.
Table W1.1 Medium-term macroeconomic assumptions
2017/18 2018/19 2019/20 2020/21
2017 2018 2017 2018 2017 2018 2018
R billion/percentage of GDP Budget Budget Budget Budget Budget Budget Budget
Gross domestic product 4 741.2 4 699.4 5 129.2 5 025.4 5 545.5 5 390.1 5 808.3
Real GDP growth 1.3% 1.3% 2.1% 1.5% 2.3% 1.9% 2.1%
GDP inflation 6.1% 5.3% 6.0% 5.4% 5.7% 5.3% 5.5%
National budget framework
Revenue 1 242.4 1 194.6 1 351.0 1 321.1 1 471.5 1 427.8 1 542.7
Percentage of GDP 26.2% 25.4% 26.3% 26.3% 26.5% 26.5% 26.6%
Expenditure 1 409.2 1 411.9 1 522.2 1 512.2 1 652.2 1 632.6 1 757.5
Percentage of GDP 29.7% 30.0% 29.7% 30.1% 29.8% 30.3% 30.3%
1
Main budget balance -166.8 -217.3 -171.2 -191.1 -180.7 -204.8 -214.8
Percentage of GDP -3.5% -4.6% -3.3% -3.8% -3.3% -3.8% -3.7%
1. A positive number reflects a surplus and a negative number a deficit
Source: National Treasury

Table W1.2 sets out the division of revenue for the 2018 MTEF period after accounting for new policy
priorities.

Table W1.2 Division of nationally raised revenue

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Outcome Revised Medium-term estimates
R million estimate
Division of available funds
National departments 489 987 546 065 555 738 599 886 628 621 685 927 736 551
of which:
Indirect transfers to provinces 5 413 3 458 3 636 3 813 3 776 4 366 4 744
Indirect transfers to local 8 052 10 370 8 112 7 803 6 896 7 265 7 664
government
Provinces 439 544 471 424 500 384 538 160 570 997 611 758 657 455
Equitable share 359 922 386 500 410 699 441 331 470 287 505 020 542 447
Conditional grants 79 623 84 924 89 685 96 829 100 711 106 739 115 008
Local government 87 570 98 338 102 867 110 728 118 458 126 914 137 462
Equitable share 41 592 49 367 50 709 55 312 62 732 68 973 75 683
Conditional grants 35 788 38 313 40 934 43 631 43 258 44 773 47 752
General fuel levy sharing with 10 190 10 659 11 224 11 785 12 469 13 167 14 027
metros
Provisional allocation not ʹ ʹ ʹ ʹ 6 000 2 308 2 125
assigned to votes
Non-interest allocations 1 017 102 1 115 827 1 158 989 1 248 774 1 324 076 1 426 907 1 533 593
Percentage increase 7.5% 9.7% 3.9% 7.7% 6.0% 7.8% 7.5%
Debt-service costs 114 798 128 796 146 497 163 155 180 124 197 664 213 859
Contingency reserves ± ± ± ± 8 000 8 000 10 000
Main budget expenditure 1 131 900 1 244 623 1 305 486 1 411 930 1 512 200 1 632 571 1 757 452
Percentage increase 8.0% 10.0% 4.9% 8.2% 7.1% 8.0% 7.6%
Percentage shares
National departments 48.2% 48.9% 48.0% 48.0% 47.7% 48.1% 48.1%
Provinces 43.2% 42.2% 43.2% 43.1% 43.3% 42.9% 42.9%
Local government 8.6% 8.8% 8.9% 8.9% 9.0% 8.9% 9.0%
Source: National Treasury
 67

Table W1.3 shows how changes to the baseline are spread across government. The new focus areas and
baseline reductions are accommodated by shifting savings towards priorities.

Table W1.3 Changes over baseline

R million 2018/19 2019/20
National departments -2 827 4 327
Of which: Higher education 12 355 25 050
Provinces -7 617 -9 237
Local government -3 012 -5 363
Allocated expenditure -13 456 -10 273
Source: National Treasury

Table W1.4 sets out schedule 1 of the Division of Revenue Bill, which reflects the legal division of
revenue between national, provincial and local government. In this division, the national share includes all
conditional grants to provinces and local government in line with section 214(1) of the Constitution, and
the allocations for each sphere reflect equitable shares only.

Table W1.4 Schedule 1 of the Division of Revenue Bill

2018/19 2019/20 2020/21
R million Allocation Forward estimates
National1 979 182 1 058 578 1 139 322
Provincial 470 287 505 020 542 447
Local 62 732 68 973 75 683
Total 1 512 200 1 632 571 1 757 452
1. National share includes conditional grants to provinces and local government,
general fuel levy sharing with metropolitan municipalities, debt-service costs
and the contingency reserve
Source: National Treasury

The 2018 Budget Review sets out in detail how constitutional considerations DQG JRYHUQPHQW¶VSULRULWLHV
are taken into account in the 2018 division of revenue. It describes economic and fiscal policy
considerations, revenue issues, debt and financing considerations, and expenditure plans. Chapter 6
focuses on provincial and local government financing.

Part 5HVSRQVHWRWKH))&¶VUHFRPPHQGations
Section 9 of the Intergovernmental Fiscal Relations Act requires the FFC to make recommendations
regarding:
a) ³$Q HTXLWDEOH GLYLVLRQ RI UHYHQXH UDLVHG QDWLRQDOO\ DPRQJ WKH QDWLRQDO SURYLQFLDO DQG ORFDO
spheres of government;
b) ³the determination of eDFKSURYLQFH¶VHTXLWDEOHVKDUHLQWKHSURYLQFLDOVKDUHRIWKDWUHYHQXHDQG
c) ³any other allocations to provinces, local government or municipalities from the national
JRYHUQPHQW¶V VKDUH RI WKDW UHYHQXH DQG DQ\ FRQGLWLRQV RQ ZKLFK WKRVH DOORFDWLRQV VKRXOG Ee
PDGH´
The act requires that the FFC table these recommendations at least 10 months before the start of each
financial year. The FFC tabled its Submission for the Division of Revenue 2018/19 to Parliament in May
2017. These recommendations focus on urban development issues, following the ))&¶V focus on rural
development in 2017/18. The recommendations for 2018/19 cover the following areas: macroeconomic
parameters underpinning urban development; city-level productivity, competitiveness and the well-being
of residents; and local government issues, including urbanisation impacts and revenue diversification.
6HFWLRQRIWKH&RQVWLWXWLRQUHTXLUHVWKDWWKH))&¶VUHFRPPHQGDWLRQVEHFRQVLGHUHGEHIRUHWDEOLQJWKH
division of revenue. Section 10 of the Intergovernmental Fiscal Relations Act requires that the Minister of
 68

Finance table a Division of Revenue Bill with the annual budget in the National Assembly. The bill must
be accompanied by an explanatory memorandum setting out how government has taken into account the
))&¶V UHFRPPHQGDWLRQV ZKHQ GHWHUPLQLQJ WKH GLYLVLRQ RI UHYHQXH 7KLV SDUW RI WKH H[SODQDWRU\
memorandum complies with this requirement.
7KH))&¶VUHFRPPHQGDWLRQVFDQEHGLYLGHGLQWRWKUHHFDWHJRULHV
x Recommendations that apply directly to the division of revenue
x Recommendations that indirectly apply to issues related to the division of revenue
x Recommendations that do not relate to the division of revenue.

*RYHUQPHQW¶V UHVSRQVHV WR WKH ILUVW DQG VHFRQG FDWHJRULHV DUH SURYLGHG below. The relevant national
departments are considering the recommendations that do not relate to the division of revenue, and they
will respond directly to the FFC.

Recommendations that apply directly and indirectly to the division of

revenue
Chapter 2: Assessment of Integrated Urban Development Framework and Cities Support

Strengthening the Integrated Urban Development Framework and the Cities Support Programme
The FFC recommends that, ³7KH'HSDUWPHQWRI&RRSHUDWLYH*RYHUQDQFHDQG7UDGLWLRQDO$IIDLUVDnd the
National Treasury consolidate the urban development related grants (for example incorporate the
integrated city development grant into the urban settlements development grant) so as to achieve the
Integrated Urban Development Framework objectives anGDGGUHVVXUEDQGHYHORSPHQWKROLVWLFDOO\´

Government response
Government recognises the need for the progressive consolidation of conditional grants to metropolitan
municipalities. It remains committed to consolidating grants for urban municipalities as a long-term
objective, while acknowledging that several sector-specific grants, such as the public transport network
grant, will need to remain separate in the short term to fund specific programmes within cities.
Government will review spending on urban informal settlement upgrades, with a view to changing the
grant system to enable increased investment in on-site upgrades. This may have implications for the
structure of the grants mentioned in thH ))&¶V recommendation, as the urban settlements development
grant is the main source of grant funding for informal settlement upgrades in metros and the integrated city
development grant is the main grant for improved governance and spatial transformation in metros.
National departments, cities and the FFC will be invited to participate in the review.
A new integrated urban development grant will be introduced for non-metropolitan cities in 2019/20.
While this grant will initially be funded by reprioritising amounts previously allocated to qualifying cities
through the municipal infrastructure grant, it could include the consolidation of other grants in time.
Government has consistently emphasised the need to increase the proportion of own revenue in urban
PXQLFLSDOLWLHV¶ capital budgets. Reforms to conditional grants, including the proposed consolidation of
grants, must be structured to promote this objective, as it is the best way of increasing total capital
investment in urban infrastructure.
The current structure of the integrated city development grant aims to incentivise municipalities to invest
in a targeted and sequenced manner to achieve a more compact, inclusive, productive and sustainable
urban environment. The incentive is based on the performance of the metropolitan municipality as a whole,
including performance on all grants and own-revenue-funded projects. Steps to incorporate this grant into
 69

another grant will need to be structured carefully to ensure that the incentive created for holistic planning
and development across municipalities is not distorted.

Chapter 3: Cities Compaction ± An Evaluation of Legislation and Policies

Achieving compact metropolitan cities

7KH))&UHFRPPHQGVWKDW³1DWLRQDO7UHDVXU\ LQWURGXFHVDQLQFHQWLYHJUDQWVSHFLILFDOO\WDUJHWHGDWFLW\
compaction, an urban form that has the potential to remedy apartheid geography and bring the masses
closer to the opportunities of work and facilities. The spatial development grants currently accessed
through the built environment performance plans treat compaction as only a small and negligible
FRPSRQHQWRIVSDWLDOWUDQVIRUPDWLRQ´

Government response
The National Treasury agrees that there is a need for incentives to encourage targeted densification that
UHVWUXFWXUHV 6RXWK $IULFD¶V XUEDQ VSDFHV This has been identified as a key measure in the fiscal
framework, and confirmed by the local government infrastructure grant review process. A small incentive
grant has already been introduced in the form of the integrated city development grant.
Government has adopted an incremental approach to introducing performance incentives for two reasons.
First, there is a need to ensure there are objective, measurable indicators of performance in place that are
well understood by all eligible municipalities and consistent with global and national monitoring
frameworks. To accomplish this, the National Treasury and the Department of Cooperative Governance
have led the reform of outcome indicators and reporting for urban local governments ± a process that is
nearing completion. Second, there is a need to ensure that measures are taken to address countervailing
incentives to spatial restructuring, which could mute the impact of the fiscal incentives. These could
include changes to policies and regulations to ensure they do not create implicit incentives that encourage
investments in low-density developments on the edges of cities.
Incentive effects are not drawn solely from the size of financing provided, but also from the extent to
which they complement other initiatives in a coherent programme. The built environment performance
plans provide each city with a mechanism to coordinate infrastructure investment funded through grants
and own revenues that will lead to spatial transformation. Section 14(2) of the Division of Revenue Act
requires that cities invest an increasing proportion of their grant allocations in the integration zones
identified in their built environment performance plans. Several grants to metropolitan municipalities also
have an explicit focus on spatial transformation and compact cities, including the public transport network
grant, which promotes transit-oriented development along public transport corridors, and the
neighbourhood development partnership grant, which funds the development of urban hubs in townships.

Chapter 4: Transport and Mobility Consolidating Programmes

Retaining locally earned fiscal revenue and ring-fencing local income sources for public transport
7KH ))& UHFRPPHQGV WKDW ³7KH 'HSDUWPHQW RI 7UDQVSRUW VKRXOG UHYLHZ WKH public transport network
grant and investigate options to shift sources of funding towards retaining locally earned fiscal revenue
and ring-fence the local income sources for public transport use. Examples include possible retention of a
larger portion of the fuel levy generated in the municipality.
x ³Develop case studies or support pilot projects in selected municipalities to develop key potential
sources of funding including funding related to parking, developer charges and ring-fencing a portion
RIWKHIXHOOHY\´
 70

Government response
Government supports the increased use of municipal own revenues to fund public transport. Efficient and
reliable public transport is vital to the long-term economic performance of cities. Progressively increasing
the share of locally generated funds allocated to public transport is an investment in urban development.
The structure of the public transport network grant has been extensively reviewed and reformed through
the local government infrastructure grant review, in which the FFC participates. This has led to the change
from a project-based allocation methodology to one based on a formula, and the announcement that from
2019/20 an incentive component will be added to the grant. Both of these changes are intended to
encourage cities to increase investment in public transport networks from their own revenues.
While cities and the Department of Transport can research potential municipal revenue sources that could
support public transport, new municipal tax instruments can only be approved by the Minister of Finance
in terms of the Municipal Fiscal Powers and Functions Act (2007). Cities should also be encouraged to
maximise their use of existing own-revenue sources and prioritise more of these resources towards
investment in public transport.
The National Treasury has already announced its intention to amend the Municipal Fiscal Powers and
Functions Act to better regulate municipal development charges. The sharing of the general fuel levy with
metropolitan municipalities was introduced in 2008/09 as a replacement for the RSC levies previously
collected by municipalities. As such, it was allocated to metropolitan municipalities as an unconditional
transfer and it would therefore be inappropriate for national government to retrospectively ring-fence it for
a particular purpose.

Consolidation of public transport functions as defined in the National Land Transport Act
7KH))&UHFRPPHQGVWKDW³7KH'HSDUWPHQWRI7UDQVSRUWVKRXOGDSSURYHDQGSLORWWKHFRQVROLGDWLRQRI
public transport functions as defined in the National Land Transport Act within a well-capacitated city,
with supporting funding (in line with a previous Commission study). In this regard, the Department of
Transport should:
x ³Identify the most appropriate options for arrangements outside of large urban municipalities where
financial resources and capacity to take on the integrated function are more limited; and
x ³Identify the legal and institutional structures needed to properly integrate planning and management
across modes (including rail) into the broader management of municipal transport networks, which are
also adequately funded by a conditional grant.´

Government response
Government acknowledges the need to consolidate the public transport functions as defined in the National
Land Transport Act (2009). The Department of Transport is considering a pilot project in the uMhlathuze
and/or Lephalale municipalities. However, this consolidation of functions could not be funded through the
public transport network grant because it is for a specific purpose (integrated networks).
The National Land Transport Act provides that all municipalities establishing integrated public transport
networks should create intermodal planning committees and land transport advisory boards solely for
integrated planning and public transport management. Municipalities can use these existing institutions
rather than prescribing new arrangements or structures.

Approaches to integrated public transport networks that support financial sustainability

7KH))&UHFRPPHQGVWKDW³7KH'HSDUWPHQWRI7UDQVSRUWVKRuld support the development of approaches
to integrated public transport networks that support financial sustainability. These approaches should focus
on leveraging the strengths of existing services, promoting incremental improvement of public transport
based on affordability and impact, recognising the significant role that new technologies will play in
providing demand-responsive services, and considering alternative models of industry transformation.
 71

This could take the form of piloting and sharing learning from revised approaches to integrated public
transport networks in one or more urban municipalities and should be funded through the integrated public
transport network grant or a similar funding instrument.´

Government response
Government agrees with this recommendation. Municipalities are encouraged to implement integrated
public transport networks that are appropriate for their environments. Innovations are encouraged, but they
need to be costed and have a sound business case. The public transport network grant already funds
several different types of quality bus services that require substantially less infrastructure than bus rapid
transit systems (in George, Mangaung, Mbombela and Msunduzi, for example).
Several cities are exploring options to use existing minibus vehicles in their integrated public transport
networks (these include Tshwane, Polokwane, Cape Town Phase 2, eThekwini, Ekurhuleni and Nelson
Mandela Bay). The Public Transport Strategy and the framework for the public transport network grant
allow for experimentation with the incremental integration of minibus-type services into public transport
networks. The main reason there has not been more success in this area is not national policy or grant
design but the lack of political will, technical capacity, as well as regulatory and enforcement capabilities
and business development expertise at local level. However, cities are improving their capacity and it is
likely that minibus taxis will become more integrated in future.

Chapter 5: Aligning Urban Housing Supply with Unhoused Urban Population

Alignment of infrastructure delivery plans to new human settlements development

7KH ))& UHFRPPHQGV WKDW ³3URYLQFLDO GHSDUWPHQWV RI KXPDQ VHWWOHPHQWV DQG RWKHU NH\ GHSDUWPHQWV
including the provincial departments of basic education and transport should align their infrastructure
delivery plans particularly for new human settlements development. This can be done by:
x ³Establishing functional inter-sectoral coordination committees where relevant departments will meet
to discuss new infrastructure development projects relating to habitable human settlement.
x ³Ensuring that the portion of education infrastructure grant and funding from the provincial equitable
share are aligned to the portion of the human settlements development grant for new housing
GHYHORSPHQWV´

Government response
Government recognises the importance of improving the coordination of infrastructure delivery. As a
result, provincial treasuries have established infrastructure medium-term expenditure committee forums as
part of their budget processes. These structures bring together national and provincial departments to
facilitate inter-sectoral discussions on the planning and implementation of infrastructure projects. These
new forums will need to be further developed and strengthened with support from the National Treasury
and relevant national departments. Provinces need to ensure that their infrastructure investment plans are
consistent with the spatial development plans set out in municipal integrated development plans.

Chapter 6: Implications of Urbanisation Induced Learner Mobility on Education Planning

and Funding

Review of the provincial equitable share formula

The FFC recommends that, ³7KH1DWLRQDO7UHDVXU\VKRXOGLQFRUSRUDWHZHLJKWHGOHDUQHUVRFLR-economic
profiles into the education component of the provincial equitable share formula as an additional indicator
RIHGXFDWLRQQHHGV´
 72

Government response
The National Treasury is reviewing the provincial equitable share formula. This review is set to take place
over a number of years and includes assessing the continued appropriateness of all aspects of the formula.
The first phase of the review is to assess the data that informs all of the IRUPXOD¶Vcurrent components. The
Department of Basic Education has introduced an improved way of collecting learner enrolment numbers
and this will be incorporated into the equitable share formula. Subsequent phases of the review will
consider other factors such as the alignment of the formula to national sector policy, which may include an
assessment of the impact of weighted learner socio-economic profiles, as recommended by the FFC.

Demographic patterns and forecasts in provincial education infrastructure planning

7KH))&UHFRPPHQGVWKDW³%RWKWKH1DWLRQDO7UHDVXU\DQG'HSDUWPHQWRI%DVLF(GXFDWLRQPXVWHQVXUH
that the framework for the education infrastructure grant incorporates the need for provincial
infrastructure plans to take into account spatial demographic patterns and forecasts, particularly when
GHFLVLRQVWREXLOGH[SDQGRUPDLQWDLQVFKRROVDUHPDGH´

Government response
Government agrees with this recommendation. Provincial departments of basic education are required to
submit user asset management plans to the national Department of Basic Education that consider, among
others, the need to provide school infrastructure in different parts of their province. These plans must
comply with human settlements planning guidelines to ensure education facilities are accessible to new
and existing communities. They must consider the geographic distribution of existing and new school
infrastructure against the demographic distribution of beneficiaries (accounting for population dynamics
and learner movements).

Chapter 7: Industrial Diversity and Economic Performance in Urban Municipalities

Improving industrial diversity and economic growth in urban municipalities

7KH ))& UHFRPPHQGV WKDW ³7KURXJK the National Treasury, government establishes an economic
diversification plan as part of its objective to support cities in promoting spatial transformation and
economic growth. This fund can either be ring-fenced within existing grants linked to growth and spatial
transformation of cities (such as the integrated cities development grant), or specified as a minimum
spending requirement to ensure that recipient municipalities spend allocated funds towards programmes
that broaden and deepen spatial transformation and economic growth through diversification of economic
activities within their jurisdictions.´

Government response
Government acknowledges the importance of diversified local economies and the effect they can have on
spatial development in cities. However, ring-fencing grant funding to cities is not the best way to achieve
this.
Promoting economic diversification is an industrial policy issue and not a mandate of local government.
The fundamental role of municipalities in local economic development is to provide efficient and effective
basic infrastructure services and urban management regulation (including land-use planning and
management systems) that support economic activities.

Chapter 8: The Effects of Municipal Spending on Urban Employment

Redesign of the expanded public works programme integrated grant for municipalities
7KH ))& UHFRPPHQGV WKDW ³7KH 'HSDUWPHQWV RI 3XEOLF :RUNV DQG &RRSHUDWLYH *RYHUQDQFH DQG
Traditional Affairs should carry out an assessment of the expanded public works programme (EPWP)
 73

integrated grant for municipalities to ascertain how the grant can be redesigned to encourage more
VHFRQGDU\FLWLHVDQGODUJHWRZQVWRDSSO\IRUDELJJHUSRUWLRQRIWKLVJUDQW´

Government response
The Department of Public Works is working with the South African Cities Network through a reference
group, which discusses and monitors plans to expand the EPWP in cities. These reference group meetings
are also a forum where best practices are shared so that cities learn from each other. The EPWP¶V
implementation in secondary cities and large towns is also being encouraged through the provision of
technical support from the national and provincial departments of public works.
The EPWP aims to create more jobs through the labour-intensive implementation of municipal functions.
The EPWP integrated grant for municipalities is intended to act as a supplementary source of funding for
labour-intensive projects. Cities should be creating jobs through all of their activities, not only those
funded through this grant.
In 2017/18, cities and large towns accounted for 19 per cent of allocations through the EPWP integrated
grant for municipalities, which is a significant portion of the grant. A Government Technical Advisory
Centre review of the EPWP integrated grant for municipalities in 2016/17 confirmed that urban
municipalities are able to access a large proportion of this grant. Accessing the grant depends on
municipalities reporting their EPWP job creation. To get bigger allocations, secondary cities and large
towns need to report better performance.
It should also be noted that any change to bias the allocation methodology in favour of cities would mean
that less funding is available for rural municipalities. Because of the large unemployment burden in rural
areas, government does not support this aspect of the recommendation.

Chapter 10: ICT and City Governance

Funding towards municipal standard chart of accounts compliance

7KH ))& UHFRPPHQGV WKDW ³The National Treasury should ensure that allocations for assisting
municipalities with municipal standard chart of accounts implementation through the financial
management grant be ring-fenced and deliberately biased towards lesser resourced urban municipalities
who struggle under the financial burden of attaining compliance with the municipal standard chart of
DFFRXQWVILQDQFLDOUHIRUP´

Government response
Government acknowledges the financial challenges experienced by some municipalities in complying with
the municipal standard chart of accounts regulations. The financial management grant, however, is
relatively small, with municipalities allocated about R1.7 million each, on average. Allocations are biased
towards municipalities with financial management challenges identified in the Financial Management
Capability Maturity Model and/or disclaimer audit opinions. In addition to supporting the implementation
of the municipal standard chart of accounts, the grant also supports a host of other financial reforms,
including preparing funded budgets, improving asset management and ensuring audit outcomes are
consistent with Outcome 9 (a responsive, accountable, effective and efficient developmental local
government system). The amount spent on each activity must be specified and approved in the financial
management grant support plan submitted by each municipality and approved by the National Treasury.
As such, there is no need to ring-fence funds for a particular activity.
All municipalities and municipal entities should have complied with the regulations for implementation of
the municipal standard chart of accounts by 1 July 2017. It is the responsibility of those municipalities that
are not yet compliant with the regulations to ensure that they appropriately budget for its implementation
using the revenue at their disposal (including own resources and transfers). Municipalities needing
technical assistance to help with their budgeting can ask the relevant provincial treasury for support.
 74

Chapter 11: Financing of Urban Municipalities and Own Revenue Diversification

Improving access to credit markets for large cities

7KH))&UHFRPPHQGVWKDW³The National Treasury improves access to credit markets for large cities by
allowing them to use their infrastructure grant funding allocations to leverage private capital.´

Government response
Government agrees that there is a need to improve municipal access to credit markets and has been
emphasising this point in the Budget Review for several years. The National Treasury is updating the
policy framework for municipal borrowing.
While municipalities will always borrow primarily against future revenue-generating assets, government
acknowledges that infrastructure grants can provide additional certainty that enables improved access to
borrowing. To facilitate this, the 2018 Division of Revenue Bill includes a redrafting of clause 8(4), which
in previous years said DPXQLFLSDOLW\QHHGVWKH1DWLRQDO7UHDVXU\¶VDSSURYDOWRborrow funds using future
grant allocations as part (or all) of the future revenue against which they borrow. This limited the potential
revenue considered when a municipality tried to borrow capital, unless they formally pledged funds. The
changes to this section of the bill mean that the National Treasury will no longer approve the pledging of
anticipated future grant funds. Instead, any borrowing against expected future grant transfers must be done
in terms of the processes and criteria set out in the Municipal Finance Management Act, which requires
public consultation, comments from the relevant treasury and approval by the municipal council. This
provides greater flexibility for municipalities to account for anticipated future grant revenues as part of
their borrowing frameworks (and for longer than the three-year MTEF period).

Improving the flow of public-private partnerships within municipalities

The ))& UHFRPPHQGV WKDW ³7KH 3XEOLF 3ULYDWH 3DUWQHUVKLS 8QLW DW the National Treasury improves the
flow of public-private partnerships within municipalities by using the financial management grant to build
capacity within large cities in specialised skills in public-private partnership development, procurement,
QHJRWLDWLRQDQGPRQLWRULQJ´

Government response
The Public Private Partnership Unit in the Government Technical Advisory Centre provides support and
technical advice to municipalities, along with formal training courses on public-private partnerships for
any municipality wishing to build the capacity of their officials. The Government Technical Advisory
Centre also provides an extensive library of literature on public-private partnerships, including manuals,
guidelines and case studies, all of which can be accessed at www.gtac.gov.za.
As discussed above, the financial management grant is a small grant that already has a large number of
competing priorities to fund. Its allocations favour municipalities with substantial financial management
capacity needs. This grant is therefore not an appropriate source of funding for establishing new units in
cities that have substantial revenue sources of their own.

Land value capture fiscal instruments among large cities

The FFC recommends that, ³The National Treasury creates awareness of land value capture fiscal
instruments among large cities and extends the scope of the financial management grant to cater for
caSDFLW\EXLOGLQJLQWKHGHVLJQDQGLPSOHPHQWDWLRQRIODQGYDOXHFDSWXUHPHFKDQLVPV´

Government response
The National Treasury, through the Cities Support Programme, is already undertaking extensive activities
to broaden municipal access to sources of capital finance, particularly in larger cities. This includes
developing a specific toolkit on land-based financing instruments, holding a series of three technical
workshops with metropolitan municipalities and providing specific technical assistance in pilot
 75

municipalities. In addition, the National Treasury is reviewing the existing policy framework for municipal
borrowing and providing technical support to cities to develop long-term financial strategies within their
built environment performance plans. It has also announced its intention to table amendments to the
Municipal Fiscal Powers and Functions Act during 2018 to better regulate development charges so that
cities can make greater use of this revenue source.
The National Treasury does not support the recommendation that the purpose of the financial management
grant be changed to fund specific capacity building for land-based financing instruments. As discussed
above, it is a small grant with several competing priorities to fund. Its allocations are also biased in favour
of assisting municipalities with substantial financial management capacity needs. Government believes
that the use of land-value capture can be promoted through technical assistance (as is already being done),
rather than funding capacity building through conditional grants.

Part 4: Provincial allocations

Sections 214 and 227 of the Constitution require that an equitable share of nationally raised revenue be
allocated to provincial government to enable it to provide basic services and perform its allocated
functions.
National transfers to provinces increase from R538.2 billion in 2017/18 to R571 billion in 2018/19. Over
the MTEF period, provincial transfers will grow at an average annual rate of 6.9 per cent to R657.5 billion.
Table W1.5 sets out the transfers to provinces for 2018/19; a total of R470.3 billion is allocated to the
provincial equitable share and R100.7 billion to conditional grants, which includes an unallocated
R123.6 million for the provincial disaster relief grant.

Table W1.5 Total transfers to provinces, 2018/19

Equitable Conditional Total
R million share grants transfers
Eastern Cape 65 500 11 263 76 763
Free State 26 178 7 561 33 739
Gauteng 93 384 21 511 114 895
KwaZulu-Natal 99 264 19 753 119 017
Limpopo 55 179 8 544 63 723
Mpumalanga 38 468 7 937 46 404
Northern Cape 12 475 4 387 16 862
North West 32 392 7 467 39 859
Western Cape 47 447 11 904 59 351
Unallocated ± 384 384
Total 470 287 100 711 570 997
Source: National Treasury

Changes to provincial allocations

The baseline reductions discussed in Chapter 5 of the Budget Review were shared across the three spheres
of government in line with their ability to adjust to the cuts and raise their own revenue. A weaker than
expected economic and fiscal environment has meant that the budget had to be reprioritised to fund new
and changing government priorities. In 2018/19, compared with the figures published in the 2017 Medium
Term Budget Policy Statement, provincial baselines have been reduced by R5.2 billion. Of this,
27.7 per cent (R1.4 billion) was applied to the equitable share, despite it accounting for more than
80 per cent of transfers to provinces. This ensures that the basic services funded by the provincial equitable
share, such as health and education, are protected. The remaining R3.7 billion of the reduction comes from
provincial direct conditional grants. Notwithstanding the need for fiscal consolidation announced in the
2017 Medium Term Budget Policy Statement, the baselines for several grants funding essential services
such as the national school nutrition programme grant, the early childhood development grant and the
comprehensive HIV, AIDS and TB grant are preserved. The provincial equitable share grows at an average
 76

annual rate of 7.1 per cent over the MTEF period, while conditional grant allocations grow by
5.9 per cent per year. As far as possible, the provincial share of the baseline reductions has been weighted
towards conditional grants with a history of underspending or infrastructure grants that can absorb deferred
implementation.
Two new grants are introduced into the provincial framework. The first is the provincial emergency
housing grant, which should allow national government to respond to emergency housing situations
quickly and flexibly. It has a total allocation of R831.8 million over the 2018 MTEF period. The second
grant is the title deeds restoration grant, which aims to improve the property market by eradicating the
long-standing backlog in title deeds registration associated with past beneficiaries of state-subsidised
housing.
The school infrastructure backlogs grant, which was due to merge with the education infrastructure grant
in 2017/18, was extended for an additional year and will continue over the 2018 MTEF period. Although
progress under this grant has been sluggish, an assessment of its projects, both current and in the pipeline,
revealed that merging the two grants will derail progress made to date. However, given its
underperformance and the need for fiscal consolidation, the grant¶V baseline is reduced by R3.6 billion
over the MTEF period.
Accounting for all additions, reprioritisations and fiscal consolidation efforts, the net revisions to the
provincial direct conditional grants since the 2017 Medium Term Budget Policy Statement amount to a
reduction of R3.7 billion in 2018/19, R4.8 billion in 2019/20 and R5.1 billion in 2020/21.

The provincial equitable share

The equitable share is the main source of revenue through which provinces are able to meet their
expenditure responsibilities. To ensure that allocations are fair, the equitable share is allocated through a
formula using objective data to reflect the demand for services across all nine provinces. For each year of
the 2018 MTEF, the following amounts are allocated to the provincial equitable share respectively:
R470.3 billion, R505 billion and R542.4 billion. These revisions result in the provincial equitable share
increasing by 22.9 per cent (R101 billion) between 2017/18 and 2020/21.

The equitable share formula

Apart from the annual review and updates to the provincial equitable share formula to ensure that it is
informed by the most recently available information, a detailed review usually takes place every four or
five years. This ensures that it remains impartial, fair and responsive to the needs of the provinces. The
most recent, and ongoing, review started at the end of 2016. As part of the review, all components of the
formula will be assessed. This year is the first in which changes based on the review will be included in the
equitable share formula.
The first phase of the review assessed the appropriateness of the datasets that inform the equitable share
formula. The Department of Basic Education has improved the collection and tracking method it uses to
monitor scholars making use of the public education system, moving from the Schools Reality Survey to a
new tracking system for learners (Learner Unit Record Information Tracking System, or LURITS). As
such, school enrolment numbers for the country will be taken from this new system to inform the
education component of the equitable share formula. These changes will be phased in over the 2018 MTEF
period. Further details of these changes are explained in the education component section below. Changes
to any other component of the formula flowing from the review will be introduced in consultation with
provincial treasuries and all other relevant stakeholders.
For the 2018 MTEF, the formula has been updated with data from the 2017 mid-year population estimates
published by Statistics South Africa and the 2017 preliminary data published by the Department of Basic
Education on school enrolment from the LURITS database. Data from the 2016 General Household Survey
for medical aid coverage and data from the health sector and the Risk Equalisation Fund for the risk-
adjusted capitation index have also been updated. Allocation changes tend to mirror shifts in population
 77

across provinces, which result in changes in the relative demand for public services across these areas. The
effect of these updates on the provincial equitable share is phased in over three years (2018/19 to 2020/21).

Allocations calculated outside the equitable share formula

From 2018/19, all allocations provided to provinces as an equitable share but not allocated through the
equitable share formula come to an end. The last allocation of this kind was in 2017/18, which amounted
to R2 billion. This allocation previously funded adult basic education and training; a function that shifted
from national to provincial government at the start of the 2015 MTEF period.

Full impact of data updates on the provincial equitable share

Table W1.6 shows the full impact of the data updates on the provincial equitable share per province. It
compares the target shares for the 2017 and 2018 MTEF periods. The details of how the data updates affect
each component of the formula are described in detail in the sub-sections below.

Table W1.6 Full impact of data updates on the equitable share

2017 MTEF 2018 MTEF Difference
weighted weighted
average average
Eastern Cape 14.0% 13.7% -0.30%
Free State 5.6% 5.6% -0.01%
Gauteng 19.8% 20.1% 0.31%
KwaZulu-Natal 21.1% 21.0% -0.10%
Limpopo 11.7% 11.7% -0.02%
Mpumalanga 8.1% 8.2% 0.07%
Northern Cape 2.7% 2.7% 0.00%
North West 6.9% 6.9% 0.00%
Western Cape 10.1% 10.1% 0.05%
Total 100.0% 100.0% 0.00%
Source: National Treasury

Phasing in the formula

Official data used annually to update the provincial equitable share formula invariably affects each
SURYLQFH¶VVKDUHRIWKHDYDLODEOHIXQGV+RZHYHULWLVLPSRUWDQWWKDWSURYLQFHVKDYHVRPHVWDELOLW\LQWKeir
revenue stream to allow for sound planning. As such, calculated new shares informed by recent data are
phased in over the three-year MTEF period.
The equitable share formula data is updated every year and a new target share for each province is
calculated, as shown in Table W1.7. The phase-in mechanism provides a smooth path to achieving these
new weighted shares by the third year of the MTEF period. It takes the difference between the target
weighted share for each province at the end of the MTEF period and the indicative allocation for 2018/19
published in the 2017 MTEF, and closes the gap between these shares by a third in each year of the 2018
MTEF period. As a result, one-third of the impact of the data updates is implemented in 2018/19, two-
thirds in the indicative allocations for 2019/20, and the updates are fully implemented in the indicative
allocations for 2020/21.
 78

Table W1.7 Implementation of the equitable share weights

2018/19 2018/19 2019/20 2020/21
Indicative 2018 MTEF weighted shares
weighted 3-year phasing
shares from
2017 MTEF
Percentage
Eastern Cape 14.0% 13.9% 13.8% 13.7%
Free State 5.6% 5.6% 5.6% 5.6%
Gauteng 19.7% 19.9% 20.0% 20.1%
KwaZulu-Natal 21.2% 21.1% 21.1% 21.0%
Limpopo 11.7% 11.7% 11.7% 11.7%
Mpumalanga 8.2% 8.2% 8.2% 8.2%
Northern Cape 2.7% 2.7% 2.7% 2.7%
North West 6.9% 6.9% 6.9% 6.9%
Western Cape 10.1% 10.1% 10.1% 10.1%
Total 100.0% 100.0% 100.0% 100.0%
Source: National Treasury

Provincial equitable share allocations

The final equitable share allocations per province for the 2018 MTEF are detailed in Table W1.8. These
allocations include the full impact of the data updates, phased in over three years.

Table W1.8 Provincial equitable share

2018/19 2019/20 2020/21
R million
Eastern Cape 65 500 69 807 74 411
Free State 26 178 28 071 30 108
Gauteng 93 384 100 923 109 092
KwaZulu-Natal 99 264 106 364 113 998
Limpopo 55 179 59 188 63 503
Mpumalanga 38 468 41 395 44 555
Northern Cape 12 475 13 404 14 405
North West 32 392 34 789 37 372
Western Cape 47 447 51 080 55 003
Total 470 287 505 020 542 447
Source: National Treasury

6XPPDU\RIWKHIRUPXOD¶VVWUXFWXUH
The formula, shown in Table W1.9, consists of six components that capture the relative demand for
services across provLQFHV DQG WDNH LQWR DFFRXQW VSHFLILF SURYLQFLDO FLUFXPVWDQFHV 7KH IRUPXOD¶V
components are neither indicative budgets nor guidelines as to how much should be spent on functions.
Rather, the education and health components are weighted broadly in line with historical expenditure
patterns to indicate relative need. Provincial executive councils determine the departmental allocations for
each function, taking into account the priorities that underpin the division of revenue.
For the 2018 Budget, the formula components are set out as follows:
x An education component (48 per cent), based on the size of the school-age population (ages 5 to 17)
and the number of learners (Grades R to 12) enrolled in public ordinary schools.
x A health component (27 per cent), baseGRQHDFKSURYLQFH¶VULVNSURILOHand health system caseload.
x A basic component (16 per centGHULYHGIURPHDFKSURYLQFH¶VVKDUHRIWKHQDWLRQDOSRSXODWLRQ
x An institutional component (5 per cent), divided equally between the provinces.
 79

x A poverty component (3 per cent), based on income data. This component reinforces the redistributive
bias of the formula.
x An economic output component (1 per cent), based on regional gross domestic product (GDP-R,
measured by Statistics South Africa).
In 2017, Statistics South Africa fully applied its provincial demographic data. This means that the 2017
mid-year population estimates now fully reflect changes in provincial populations, leading to a substantive
revision to the estimates. As such, all components that use the mid-year population estimates mirror this
change in population numbers. To accommodate these substantial changes, the affected components will
receive additional cushioning, over and above the usual three-year phasing-in of all data updates. This will
provide stability in the provincial allocations and allow provinces to adjust to the changes. The mid-year
population estimates affect the health, basic and poverty components of the provincial equitable share
formula.

Table W1.9 Distributing the equitable shares by province, 2018 MTEF

Education Health Basic share Poverty Economic Institu- Weighted
activity tional average
48.0% 27.0% 16.0% 3.0% 1.0% 5.0% 100.0%
Eastern Cape 14.9% 13.1% 12.1% 15.6% 7.8% 11.1% 13.7%
Free State 5.3% 5.2% 5.1% 5.2% 5.1% 11.1% 5.6%
Gauteng 18.1% 22.4% 24.7% 17.7% 34.1% 11.1% 20.1%
KwaZulu-Natal 22.3% 21.5% 19.7% 22.2% 16.0% 11.1% 21.0%
Limpopo 13.1% 10.2% 10.3% 13.5% 7.2% 11.1% 11.7%
Mpumalanga 8.4% 7.4% 7.8% 9.2% 7.5% 11.1% 8.2%
Northern Cape 2.3% 2.1% 2.1% 2.2% 2.1% 11.1% 2.7%
North West 6.5% 6.7% 6.8% 8.1% 6.5% 11.1% 6.9%
Western Cape 9.1% 11.4% 11.4% 6.2% 13.6% 11.1% 10.1%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: National Treasury

Education component (48 per cent)

There is a change to this component of the formula. The methodology used to collect school enrolment
numbers is changed from 2017 onwards. Previously, learner enrolment numbers were based on annual
surveys of schools. To ensure the formula remains equitable and fair, and reflects the most recent and
officially endorsed data, it will use figures IURPWKH'HSDUWPHQWRI%DVLF(GXFDWLRQ¶Vnew data collection
system, LURITS. 7KH QHZ V\VWHP DOORZV GDWD WR EH YHULILHG DQG OHDUQHUV¶ SURgress to be tracked
throughout their school careers. It also allows for duplicates and repetitions to be detected, improving the
integrity of the numbers that are reported.
The changes will be phased in over three years to ensure SURYLQFHV¶ allocations are stable and fair. The
education component continues to have two sub-components, the school-age population (5 to 17 years),
EDVHG RQ WKH  &HQVXV DQG HQUROPHQW GDWD GUDZQ IURP WKH 'HSDUWPHQW RI %DVLF (GXFDWLRQ¶V 7
LURITS database. Each of these elements is assigned a weight of 50 per cent.
Table W1.10 shows the effect of updating the education component with new enrolment data on the
education component shares.
 80

Table W1.10 Impact of changes in school enrolment on the education component share
Age cohort School enrolment Changes in Weighted average Difference in
5 ±17 2016 2017 enrolment 2017 MTEF 2018 MTEF weighted
average
Eastern Cape 1 856 317 1 957 187 1 902 213 -54 974 15.1% 14.9% -0.21%
Free State 657 489 687 072 691 295 4 223 5.3% 5.3% 0.02%
Gauteng 2 231 793 2 310 810 2 342 025 31 215 18.0% 18.1% 0.13%
KwaZulu-Natal 2 758 594 2 873 339 2 868 598 -4 741 22.3% 22.3% -0.01%
Limpopo 1 536 294 1 764 551 1 768 125 3 574 13.0% 13.1% 0.03%
Mpumalanga 1 053 846 1 072 151 1 080 084 7 933 8.4% 8.4% 0.03%
Northern Cape 288 839 291 650 291 760 110 2.3% 2.3% 0.00%
North West 824 724 828 674 827 628 -1 046 6.5% 6.5% -0.00%
Western Cape 1 174 625 1 113 563 1 117 468 3 905 9.1% 9.1% 0.02%
Total 12 382 521 12 898 997 12 889 196 -9 801 100.0% 100.0% ±
Source: National Treasury

Health component (27 per cent)

The health component uses a risk-adjusted capitation index and output data from public hospitals to
HVWLPDWH HDFK SURYLQFH¶V VKDUH RI WKH KHDOWK FRPSRQHQW 7KHVH PHWKRGV ZRUN WRJHWKHU WR EDODQFH QHHGV
(risk-adjusted capitation) and demands (output component).
The health component is presented in three parts below. Table W1.11 shows the shares of the risk-adjusted
component, which accounts for 75 per cent of the health component.

Table W1.11 Risk-adjusted sub-component shares

Mid-year Insured Risk- Weighted Risk-adjusted shares Change
population population adjusted population
estimates index
Thousand 2017 1 2016 2017 2018
Eastern Cape 6 780 9.6% 96.9% 5 936 13.2% 12.8% -0.45%
Free State 2 864 16.7% 103.3% 2 463 5.4% 5.3% -0.06%
Gauteng 13 888 27.6% 105.4% 10 600 22.3% 22.8% 0.53%
KwaZulu-Natal 11 077 11.9% 98.9% 9 652 20.9% 20.8% -0.13%
Limpopo 5 791 9.0% 91.6% 4 829 10.5% 10.4% -0.15%
Mpumalanga 4 386 14.3% 95.7% 3 597 7.6% 7.7% 0.16%
Northern Cape 1 203 15.4% 100.7% 1 024 2.1% 2.2% 0.06%
North West 3 823 15.4% 102.2% 3 307 7.1% 7.1% -0.02%
Western Cape 6 402 24.7% 104.0% 5 015 10.8% 10.8% 0.05%
Total 56 215 46 425 100.0% 100.0% ±
1. 2017 mid-year population estimate is weighted 50-50 in 2016 and 2017
to cushion the large change between the two years
Source: National Treasury

The risk-adjusted sub-component estimates a weighted population in each province using the risk-adjusted
capitation index, which LVFDOFXODWHGXVLQJGDWDIURPWKH&RXQFLOIRU0HGLFDO6FKHPHV¶5LVN(TXDOLVDWLRQ
Fund. The percentage of the population with medical insurance, based on the 2016 General Household
Survey, is deducted from the 2017 mid-year population estimates to estimate the uninsured population per
province. The risk-DGMXVWHGLQGH[ZKLFKLVDQLQGH[RIHDFKSURYLQFH¶VKHDOWKULVNSURILOHLVDSSOLHGWRWKH
XQLQVXUHG SRSXODWLRQ WR HVWLPDWH WKH ZHLJKWHG SRSXODWLRQ (DFK SURYLQFH¶V VKDUH RI WKLV ZHLJKWHG
population is used to estimate their share of the risk-adjusted sub-component.
 81

The output sub-component is shown in Table W1.12 below.

Table W1.12 Output sub-component shares1

Primary healthcare Hospital workload
visits patient-day equivalents
Thousand 2015/16 2016/17 Average Share 2015/16 2016/17 Average Share
Eastern Cape 18 208 18 116 18 162 14.5% 5 717 5 531 5 624 14.1%
Free State 6 537 6 170 6 354 5.1% 2 022 1 925 1 973 4.9%
Gauteng 22 099 22 037 22 068 17.7% 8 523 8 931 8 727 21.9%
KwaZulu-Natal 30 872 29 211 30 041 24.0% 9 481 9 117 9 299 23.3%
Limpopo 14 357 15 269 14 813 11.9% 3 580 3 644 3 612 9.1%
Mpumalanga 9 309 9 449 9 379 7.5% 2 463 2 491 2 477 6.2%
Northern Cape 2 992 515 1 753 1.4% 755 761 758 1.9%
North West 8 185 8 010 8 097 6.5% 1 925 2 037 1 981 5.0%
Western Cape 14 151 14 413 14 282 11.4% 5 478 5 431 5 455 13.7%
Total 126 709 123 190 124 950 100.0% 39 944 39 868 39 906 100.0%
1. Some provincial numbers for patient-days and healthcare visits for 2015/16 have been restated, resulting
in small variances from numbers published in 2017
Source: National Treasury

The output sub-component uses patient load data from the District Health Information Services. The
average number of visits at primary healthcare clinics in 2015/16 and 2016/17 is calculated to estimate
HDFK SURYLQFH¶V VKDUH RI WKLV SDUW RI WKH RXWSXW FRPSRQHQW ZKLFK PDNHV XS  per cent of the health
FRPSRQHQW)RUKRVSLWDOVHDFKSURYLQFH¶VVKDUHRIWKHWRWDOSDWLHQW-day equivalents from public hospitals
in 2015/16 and 2016/17 is used to estimate their share of this part of the output sub-component, making up
20 per cent of the health component. In total, the output component is 25 per cent of the health component.
Table W1.13 shows the updated health component shares for the 2018 MTEF period.

Table W1.13 Health component weighted shares

Risk-adjusted Primary Hospital Weighted shares Change
healthcare component
Weight 75.0% 5.0% 20.0% 2017 2018
Eastern Cape 12.8% 14.5% 14.1% 13.5% 13.1% -0.35%
Free State 5.3% 5.1% 4.9% 5.3% 5.2% -0.08%
Gauteng 22.8% 17.7% 21.9% 21.8% 22.4% 0.53%
KwaZulu-Natal 20.8% 24.0% 23.3% 21.7% 21.5% -0.26%
Limpopo 10.4% 11.9% 9.1% 10.3% 10.2% -0.07%
Mpumalanga 7.7% 7.5% 6.2% 7.3% 7.4% 0.15%
Northern Cape 2.2% 1.4% 1.9% 2.1% 2.1% 0.01%
North West 7.1% 6.5% 5.0% 6.7% 6.7% -0.01%
Western Cape 10.8% 11.4% 13.7% 11.3% 11.4% 0.08%
Total 100.0% 100.0% 100.0% 100.0% 100.0% ±
Source: National Treasury

Basic component (16 per cent)

7KHEDVLFFRPSRQHQWLVGHULYHGIURPWKHSURSRUWLRQRIHDFKSURYLQFH¶VVKDUHRIWKHQDWLRQDOSRSXODWLRQ
This component constitutes 16 per cent of the total equitable share. For the 2018 MTEF, population data is
drawn from the 2017 mid-year population estimates produced by Statistics South Africa. Table W1.14
shows how population changes have affected WKHEDVLFFRPSRQHQW¶VUHYLVHGZHLJKWHGVKDUHV
 82

Table W1.14 Impact of the changes in population on the basic component shares
Mid-year Mid-year Population % Basic component Change
population population change population shares
estimates estimates change
Thousand 2016 2017 1 2017 MTEF 2018 MTEF
Eastern Cape 7 062 6 780 -282 -4.0% 12.6% 12.1% -0.57%
Free State 2 862 2 864 3 0.1% 5.1% 5.1% -0.02%
Gauteng 13 498 13 888 390 2.9% 24.1% 24.7% 0.56%
KwaZulu-Natal 11 080 11 077 -2 -0.0% 19.8% 19.7% -0.11%
Limpopo 5 804 5 791 -13 -0.2% 10.4% 10.3% -0.08%
Mpumalanga 4 328 4 386 58 1.3% 7.7% 7.8% 0.06%
Northern Cape 1 192 1 203 11 0.9% 2.1% 2.1% 0.01%
North West 3 791 3 823 33 0.9% 6.8% 6.8% 0.02%
Western Cape 6 293 6 402 109 1.7% 11.3% 11.4% 0.13%
Total 55 909 56 215 307 100.0% 100.0% ±
1. 2017 mid-year population estimate is weighted 50-50 in 2016 and 2017
to cushion the large change between the two years
Source: National Treasury

Institutional component (5 per cent)

The institutional component recognises that some costs associated with running a provincial government
DQGSURYLGLQJVHUYLFHVDUHQRWGLUHFWO\UHODWHGWRWKHVL]HRIDSURYLQFH¶VSRSXODWLRQRUIDFWRUVLQFOXGHGLQ
other components. It is therefore distributed equally between provinces, constituting 5 per cent of the total
equitable share, of which each province receives 11.1 per cent. This component benefits provinces with
smaller populations, especially the Northern Cape, the Free State and the North West, because the
allocation per person for these provinces is much higher in this component.

Poverty component (3 per cent)

The poverty component introduces a redistributive element to the formula and is assigned a weight of
3 per cent. The poor population includes people who fall in the lowest 40 per cent of household incomes in
the 2010/11 Income and Expenditure Survey. The estimated size of the poor population in each province is
calculated by multiplying the proportion of people in that province that fall into the poorest 40 per cent of
6RXWK $IULFDQ KRXVHKROGV E\ WKH SURYLQFH¶V SRSXODWLRQ ILJXUH IURP WKH 7 mid-year population
estimates. Table W1.15 shows the proportion of the poor in each province from the Income and
Expenditure Survey, the 2017 mid-year population estimates and the weighted share of the poverty
component per province.
 83

Table W1.15 Comparison of current and new poverty component weighted shares
Income Current (2017 MTEF) New (2018 MTEF) Difference
and Mid-year Poor Weighted Mid-year Poor Weighted in
Expendi- population popula- shares population popula- shares weighted
ture estimates tion estimates tion shares
Survey 2016 20171
Thousand 2010/11
Eastern Cape 52.0% 7 062 3 674 16.3% 6 780 3 528 15.6% -0.7%
Free State 41.4% 2 862 1 185 5.2% 2 864 1 186 5.2% -0.0%
Gauteng 28.9% 13 498 3 897 17.3% 13 888 4 010 17.7% 0.5%
KwaZulu-Natal 45.3% 11 080 5 020 22.2% 11 077 5 019 22.2% -0.0%
Limpopo 52.9% 5 804 3 068 13.6% 5 791 3 061 13.5% -0.0%
Mpumalanga 47.3% 4 328 2 045 9.1% 4 386 2 073 9.2% 0.1%
Northern Cape 40.8% 1 192 486 2.2% 1 203 491 2.2% 0.0%
North West 47.9% 3 791 1 815 8.0% 3 823 1 831 8.1% 0.1%
Western Cape 21.9% 6 293 1 376 6.1% 6 402 1 400 6.2% 0.1%
Total 55 909 22 566 100% 56 215 22 597 100.0% ±
1. 2017 mid-year population estimate is weighted 50-50 in 2016 and 2017
to cushion the large change between the two years
Source: National Treasury

Economic activity component (1 per cent)

The economic activity component is a proxy for provincial tax capacity and expenditure assignments.
Given that these assignments are a relatively small proportion of provincial budgets, the component is
assigned a weight of 1 per cent. For the 2018 MTEF, 2016 GDP-R data is used. Table W1.16 shows the
weighted shares of the economic activity component.

Table W1.16 Current and new economic activity component weighted shares
Current (2017 MTEF) New (2018 MTEF) Difference in
GDP-R, 2015 Weighted GDP-R, 2016 Weighted weighted
(R million) shares (R million) shares shares
Eastern Cape 290 581 7.6% 315 603 7.8% 0.17%
Free State 189 183 5.0% 205 350 5.1% 0.11%
Gauteng 1 309 552 34.3% 1 382 096 34.1% -0.22%
KwaZulu-Natal 615 607 16.1% 649 124 16.0% -0.12%
Limpopo 271 725 7.1% 289 940 7.2% 0.03%
Mpumalanga 286 295 7.5% 305 016 7.5% 0.02%
Northern Cape 80 149 2.1% 85 282 2.1% 0.00%
North West 249 724 6.5% 264 616 6.5% -0.02%
Western Cape 519 790 13.6% 552 732 13.6% 0.02%
Total 3 812 607 100.0% 4 049 760 100.0% ±
Source: National Treasury

Conditional grants to provinces

There are four types of provincial conditional grants:
x Schedule 4, part A grants supplement various programmes partly funded by provinces.
x Schedule 5, part A grants fund specific responsibilities and programmes implemented by provinces.
x Schedule 6, part A grants provide in-kind allocations through which a national department implements
projects in provinces.
x Schedule 7, part A grants provide for the swift allocation and transfer of funds to a province to help it
deal with a disaster or housing emergency.
 84

Changes to conditional grants

The overall growth in direct conditional transfers to provinces averages 5.9 per cent over the medium term.
Direct conditional grant baselines total R100.7 billion in 2018/19, R106.7 billion in 2019/20 and
R115 billion in 2020/21. Indirect conditional grants amount to R3.8 billion, R4.4 billion and R4.7 billion
respectively for each year of the same period.
Table W1.17 provides a summary of conditional grants by sector for the 2018 MTEF period. More detailed
information, including the framework and allocation criteria for each grant, is provided in the
2018 Division of Revenue Bill. The frameworks provide the conditions for each grant, the outputs
expected, the allocation criteria used for dividing each grant between provinces, and a summary of the
grants¶ audited outcomes for 2016/17.
 85

Table W1.17 Conditional grants to provinces

2017/18 2018/19 2019/20 2020/21 MTEF total
Adjusted
R m illion budget
Agriculture, Forestry and Fisheries 2 242 2 381 2 542 2 704 7 627
Comprehensive agricultural support programme 1 646 1 751 1 876 2 002 5 629
Ilima/Letsema projects 522 552 583 615 1 751
Land care programme: poverty relief 74 78 82 87 247
and infrastructure development
Arts and Culture 1 420 1 424 1 501 1 584 4 509
Community library services 1 420 1 424 1 501 1 584 4 509
Basic Education 17 154 17 519 18 369 20 089 55 977
Education infrastructure 10 046 9 918 10 314 11 467 31 699
HIV and Aids (life skills education) 245 243 257 271 771
Learners w ith profound intellectual disabilities 72 185 221 243 649
Maths, science and technology 365 370 391 413 1 175
National school nutrition programme 6 426 6 802 7 186 7 696 21 684
Cooperative Governance and Traditional Affairs 123 124 131 138 393
Provincial disaster relief 123 124 131 138 393
Health 37 570 41 123 44 423 48 212 133 758
Comprehensive HIV, AIDS and TB 17 578 19 922 22 039 24 438 66 399
Health facility revitalisation 5 684 5 816 6 047 6 380 18 242
Health professions training and development 2 632 2 784 2 940 3 102 8 827
Human papillomavirus vaccine ± 200 211 223 634
National tertiary services 11 676 12 401 13 186 14 069 39 655
Hum an Settlem ents 19 969 18 945 19 657 20 975 59 577
Human settlements development 19 969 18 167 18 833 20 102 57 101
Title deeds restoration ± 519 548 578 1 644
Provincial emergency housing ± 260 277 295 832
Public Works 781 824 882 931 2 637
Expanded public w orks programme
396 416 452 476 1 344
integrated grant for provinces
Social sector expanded public w orks 386 408 431 454 1 293
programme incentive for provinces
Social Developm ent 556 758 806 859 2 423
Substance abuse treatment 57 71 75 79 225
Early childhood development 318 491 518 553 1 562
Social w orker employment 182 197 213 227 636
Sport and Recreation South Africa 586 587 620 654 1 861
Mass participation and sport development 586 587 620 654 1 861
Transport 16 477 17 026 17 807 18 862 53 696
Provincial roads maintenance 10 754 11 036 11 482 12 113 34 630
Public transport operations 5 723 5 990 6 326 6 750 19 066
1
Total direct conditional allocations 96 879 100 711 106 739 115 008 322 458
Indirect transfers 3 813 3 776 4 366 4 744 12 886
Basic Education 2 180 1 472 1 327 969 3 768
School infrastructure backlogs 2 180 1 472 1 327 969 3 768
Health 1 633 2 304 3 039 3 775 9 118
National health insurance indirect 1 633 2 304 3 039 3 775 9 118
1. Excludes provisional allocations
Source: National Treasury
 86

Agriculture grants
The comprehensive agricultural support programme grant aims to support newly established and
emerging farmers, particularly subsistence, smallholder and previously disadvantaged farmers. The
commercialisation of black farmers with potential is central to transformation in the agriculture sector. To
this end, access to capital, a widely accepted barrier to the commercialisation of farmers, requires a co-
funding financing model to identify and help potential commercial farmers, leveraging both public and
private funds. A portion of the comprehensive agricultural support programme grant is reserved for this
financing model. At present, just under R600 million is earmarked over the 2018 MTEF period to fund the
VHFWRU¶VHIIRUWs to leverage capital for the commercialisation of black farmers.
The land care programme grant: poverty relief and infrastructure development aims to improve
productivity and the sustainable use of natural resources. Provinces are also encouraged to use this grant to
create jobs through the EPWP. Over the medium term, R246.9 million is allocated to this grant.
The Ilima/Letsema projects grant aims to boost food production by helping previously disadvantaged
IDUPLQJFRPPXQLWLHV7KHJUDQW¶VEDVHOLQHLVSURWHFWHGZLWK552.4 million allocated for 2018/19, and a
total of R1.8 billion over the MTEF period.

Arts and culture grant

The community library services grant, administered by the Department of Arts and Culture, aims to help
South Africans access information to improve their socio-economic situation. The grant is allocated to the
relevant provincial department and administered by that department or through a service level agreement
with municipalities. In collaboration with provincial departments of basic education, the grant also funds
libraries that serve both schools and the general public. Funds from this grant may also be used to shift the
libraries function between provinces and municipalities. The baseline reduction on this grant in 2018/19 is
R74.9 million. The grant is allocated R4.5 billion over the next three years.

Basic education grants

Provinces use the education infrastructure grant to construct, maintain and refurbish education
infrastructure and schools. The indirect school infrastructure backlogs grant was introduced in 2011 as a
temporary, high-impact grant for provinces. The national Department of Basic Education uses this grant to
replace unsafe and inappropriate school structures and to provide water, sanitation and electricity on behalf
of provinces. Although scheduled to end in 2017/18 by merging with the education infrastructure grant,
the school infrastructure backlogs grant continues over the 2018 MTEF period to complete projects under
way or in the pipeline. However, as part of fiscal consolidation efforts, the JUDQW¶Vbaseline is reduced by
R3.6 billion over the medium term. Moreover, as provinces work to consolidate schools, the need on the
grant eases somewhat. It is allocated R3.8 billion over the MTEF period.
The education infrastructure grant¶V EDVHOLQH is reduced by R3.6 billion over the medium term and the
total allocation for this period is R31.7 billion; R9.9 billion in 2018/19, R10.3 billion in 2019/20 and
R11.5 billion in 2020/21.
Infrastructure grant reforms to improve planning were introduced in 2013 after a decade of provincial
capacity building through the Infrastructure Delivery Improvement Programme. Under the requirements
introduced in the 2013 Division of Revenue Act, provincial education departments had to go through a
two-year planning process to be eligible to receive incentive allocations from 2016/17 onwards. To receive
the 2018/19 incentive, the departments had to meet certain prerequisites in 2016/17 and have their
infrastructure plans approved in 2017/18. The national Department of Basic Education and the National
7UHDVXU\DVVHVVHGWKHSURYLQFHV¶LQIUDVWUXFWXUHSODQVThe national departments, provincial treasuries and
provincial departments of basic education undertook a moderation process to agree on the final scores.
Provinces needed to obtain a minimum score of 60 per cent to qualify for the incentive. Table W1.18
shows the final score and incentive allocation for each province.
 87

Table W1.18 Education infrastructure grant allocations

Planning 2018/19 Final
assessment Basic Incentive Disaster allocation
results component component recovery for 2018/19
R thousand from 2017 funds
Eastern Cape 78% 1 346 255 133 573 ± 1 479 828
Free State 64% 621 764 133 573 ± 755 337
Gauteng 75% 1 239 500 133 573 ± 1 373 073
KwaZulu-Natal 80% 1 732 862 133 573 ± 1 866 435
Limpopo 46% 1 011 680 ± ± 1 011 680
Mpumalanga 61% 704 978 133 573 ± 838 551
Northern Cape 79% 435 193 133 573 ± 568 766
North West 60% 869 415 133 573 ± 1 002 988
Western Cape 88% 887 503 133 573 ± 1 021 076
Total 8 849 150 1 068 584 ± 9 917 734
Source: National Treasury

The national school nutrition programme grant seeks to improve the nutrition of poor school children,
enhance their capacity to learn and increase their attendance at school. The programme provides a free
daily meal to learners in the poorest 60 per cent of schools (quintile 1 to 3). To provide meals to more
children, while still providing quality food, growth in WKH JUDQW¶V allocations over the MTEF period
averages 6.2 per cent, with a total allocation of R21.7 billion.
The maths, science and technology grant resulted from the merging of the Dinaledi schools grant and the
technical secondary schools recapitalisation grant. This grant, in its third year, appears to be gaining some
traction, but is still underspending. As a result, R50.5 PLOOLRQ LV FXW IURP WKH JUDQW¶V EDVHOLQH RYHU WKH
2018 MTEF period, allowing these funds to be used in RWKHUSULRULW\DUHDV7KHJUDQW¶VWRWDODOORFDWLRQLV
R1.2 billion over the medium term.
The HIV and Aids (life skills education) programme grant provides for life skills training and sexuality and
HIV/AIDS education in primary and secondary schools. It is fully integrated into the school system, with
learner and teacher support materials provided for Grades  WR  7KH JUDQW¶V EDVHOLQH LV reduced by
R51.9 million over the MTEF period, with allocations of R243.2 million in 2018/19, R257 million
in 2019/20 and R270.6 million in 2020/21.
The learners with profound intellectual disabilities grant, which was introduced last year, aims to expand
access to education for learners with profound intellectual disabilities. After starting with an allocation of
R72 million in 2017/18, the grant expands its rollout in 2018/19 with an allocation of R185.5 million,
R220.8 million in 2019/20 and R242.9 million in 2020/21.

Cooperative governance grant

The provincial disaster relief grant is administered by the National Disaster Management Centre in the
Department of Cooperative Governance. It is unallocated at the start of the financial year. The grant allows
the National Disaster Management Centre to immediately (in-year) release funds after a disaster is
declared, without the need for the transfers to be gazetted first. The reconstruction of infrastructure
damaged by disasters is funded separately through ring-fenced allocations in sector grants. Mitigation
strategies against the ongoing drought have, in part, been funded by this grant.
To ensure that sufficient funds are available in the event of a disaster, section 26 of the 2018 Division of
Revenue Bill allows for funds allocated to the municipal disaster relief grant to be transferred to provinces
if funds in the provincial disaster relief grant have already been exhausted, and vice versa. The bill also
allows for more than one transfer to be made to areas affected by disasters so that an initial payment for
emergency aid can be made before a full assessment of damages and costs has been completed. Over the
2018 MTEF period, a total of R393 million has been allocated to the provincial disaster relief grant.
 88

Health grants
The national tertiary services grant provides strategic funding to enable provinces to plan, modernise and
transform tertiary hospital service delivery in line with national policy objectives. The grant operates in
33 hospitals across the nine provinces. The urban areas of Gauteng and the Western Cape receive the
largest shares of the grant because they provide the largest proportion of high-level, sophisticated services
IRU WKH EHQHILW RI WKH FRXQWU\¶V health sector. In light of previous baselines reductions, coupled with the
SUHVVXUHV WKDW WHUWLDU\ VHUYLFHV IDFH WKLV JUDQW¶V EDVHOLQH LV SUHVHUYHG RYHU WKH 2018 MTEF period. The
grant is allocated R39.7 billion over the medium term. The national Department of Health has committed
to reviewing the allocation criteria under this grant in 2018 to ensure continued fairness in allocations to
provinces.
The health facility revitalisation grant funds the construction and maintenance of health infrastructure. It
was created in 2013/14 through the merger of three previous grants. The grant funds a wide range of health
infrastructure projects, including large projects to modernise hospital infrastructure and equipment, general
maintenance and infrastructure projects at smaller hospitals, and the refurbishment and upgrading of
nursing colleges and schools. This graQW¶V EDVHOLQH LV UHGXFHG E\ 5 million in 2018/19 and by
R411 million over the remainder of the 2018 MTEF period. In spite of the reduction, R18.2 billion is
allocated to this grant over the medium term, with ring-fenced funds for disasters.
Similar to the reforms to the education infrastructure grant discussed previously, a two-year planning
process is also required for provinces to access this grant. The national Department of Health and the
National Treasury conducted an assessment of the SURYLQFHV¶ infrastructure plans, followed by a
moderation process between the national departments, provincial treasuries and provincial departments of
health to agree on the final scores. Provinces had to obtain a minimum score of 60 per cent to qualify for
the incentive. Funds for the incentive component in the outer years are shown as unallocated. Table
W1.19 sets out the final score and the incentive allocation per province.

Table W1.19 Health facility revitalisation grant allocations

Planning 2018/19 Final
assessment Basic Incentive Disaster allocation
results component component recovery for 2018/19
R thousand from 2017 funds
Eastern Cape 73% 556 932 95 139 - 652 071
Free State 60% 481 223 95 139 - 576 362
Gauteng 65% 779 703 95 139 - 874 842
KwaZulu-Natal 69% 1 107 341 95 139 - 1 202 480
Limpopo 61% 441 759 95 139 - 536 898
Mpumalanga 56% 333 935 - - 333 935
Northern Cape 53% 374 391 - - 374 391
North West 61% 490 747 95 139 - 585 886
Western Cape 88% 583 690 95 139 - 678 829
Total 5 149 721 665 973 ± 5 815 694
Source: National Treasury

The health professions training and development grant funds the training of health professionals, and the
development and recruitment of medical specialists. It enables the shifting of teaching activities from
central to regional and district hospitals. The baseline for this grant is protected over the MTEF period,
with an allocation of R8.8 billion over the medium term.
The comprehensive HIV, AIDS and TB grant supports HIV/AIDS prevention programmes and specific
interventions, including voluntary counselling and testing, prevention of mother-to-child transmission,
post-exposure prophylaxis, antiretroviral treatment and home-based care. In the 2016 MTEF, the granW¶V
scope was extended to include Tuberculosis. In the 2018 MTEF, a sub-component for community outreach
services is introduced, so that funds used to support community health workers can be explicitly
earmarked. This will help ensure that this cadre of workers is better integrated into national health services.
Moreover, to make provision for the continued expansion of antiretroviral treatment in response to the
 89

universal test-and-treat policy, R1 billion has been added to the grant in 2020/21. The JUDQW¶V total baseline
amounts to R66.4 billion over the medium term.
Last year it was announced that the national Department of Health would fund all preparatory work for
universal health coverage under the national health insurance indirect grant. This grant previously had
five targeted components, but this has been replaced by three components in the 2018 MTEF. The grant
will still cover the preparatory work, but having three components rather than five will ensure a more
integrated approach to national health insurance. The grant includes an existing component (health
facilities revitalisation) and two new integrated components (personal services and non-personal services).
Personal services will aim to test a priority set of health services and contracting modalities that would be
EHVWVXLWHGWR6RXWK$IULFD¶Vhealth sector. Non-personal services will test, and scale up when ready, the
technology platforms and information systems needed to ensure a successful transition to national health
insurance.
In 2018/19, the human papillomavirus vaccine component of the national health insurance indirect grant
will become a standalone direct grant to provinces (now called the human papillomavirus vaccine grant).
Over the course of 2017, the national Department of Health worked to ensure that provincial departments
were ready to take over the provision of this service and preserve the high coverage ratios that were
achieved under this component.

Human settlements grants

The human settlements development grant seeks to establish habitable, stable and sustainable human
settlements in which all citizens have access to social and economic amenities. Following the
2017 Medium Term Budget Policy Statement, this grant was identified for reprioritisation as part of
JRYHUQPHQW¶VILVFDOFRQVROLGDWLRQHIIRUWV$WRWDORI5 billion is reprioritised from the JUDQW¶V baseline,
while R842 million is earmarked within the grant to improve social housing by boosting JRYHUQPHQW¶V
subsidy programme.
This grant is allocated using a formula with three components:
x The first component shares 70 per cent of the total allocation between provinces in proportion to their
share of the total number of households living in inadequate housing. Data from the 2011 Census is
used for the number of households in each province living in informal settlements, shacks in backyards
and traditional dwellings. Not all traditional dwellings are inadequate, which is why information on the
proportion of traditional dwellings per province with damaged roofs and walls from the 2010 General
Household Survey is used to adjust these totals so that only traditional dwellings that provide
inadequate shelter are counted in the formula.
x The second component determines 20 per cent of the total allocation based on the share of poor
households in each province. The number of households with an income of less than R1 500 per month
is used to determine 80 per cent of the component and the share of households with an income of
between R1 500 and R3 500 per month is used to determine the remaining 20 per cent. Data used in this
component comes from the 2011 Census.
x The third component, which determines 10 per cent of the total allocation, is shared in proportion to the
number of people in each province, as measured in the 2011 Census.
In addition to the allocations determined through the formula, a total of R3 billion is ring-fenced over the
MTEF period to upgrade human settlements in mining towns in six provinces. These allocations respond to
areas with significant informal settlement challenges, with a high proportion of economic activity based on
the natural resources sector.
The human settlements development grant previously had funds ring-fenced for the eradication of the
pre-2014 title deeds registration backlog. Slow progress in the reduction of this backlog, along with the
impairment it had on the functioning on the property market, warrants the inclusion of a new grant to
accelerate the backlog eradication process. The grant has a baseline of R1.6 billion over the 2018 MTEF.
 90

A new provincial emergency housing grant is introduced in 2018/19. These funds will enable the
department to rapidly respond to emergencies by providing temporary housing in line with the Emergency
Housing Programme. However, the grant is limited to funding emergency housing following the
immediate aftermath of a disaster, and not the other emergency situations listed in the Emergency Housing
Programme. As emergency housing was previously meant to have been budgeted for in the business plans
for the human settlements development grant, the funding for the provincial emergency housing grant will
be reprioritised out of that grant. The new grant is allocated R260 million in 2018/19, R277 million in
2019/20 and R295 million in 2020/21.

Public works grants

The EPWP integrated grant for provinces incentivises provincial departments to use labour-intensive
methods in infrastructure, environmental and other projects. Grant allocations are determined upfront
based on the performance of provincial departments in meeting job targets in the preceding financial year.
The grant is allocated R1.3 billion over the MTEF period.
The social sector EPWP incentive grant for provinces rewards provinces for creating jobs in the preceding
financial year in the areas of home-based care, early childhood development, adult literacy and numeracy,
FRPPXQLW\ VDIHW\ DQG VHFXULW\ DQG VSRUWV SURJUDPPHV 7KH JUDQW¶V DOORFDWLRQ PRGHO LQFHQWLYLVHV
provincial departments to participate in the EPWP and measures the performance of each province relative
to its peers, providing additional incentives to those that perform well. The grant is allocated R1.3 billion
over the MTEF period.

Social development grants

The substance abuse treatment grant aims to build public substance abuse treatment facilities in the four
provinces that did not already have such facilities: the Eastern Cape, the Free State, the Northern Cape and
the North West. Previously, this grant was exclusively used to construct treatment centres. In 2018/19, it
now supplements the operationalisation of the newly constructed centres. No baseline reduction has been
effected on this grant. It has been allocated R224.5 million over the medium term.
The early childhood development grant is now in its second year. It SOD\V D SDUW LQ JRYHUQPHQW¶V
prioritisation of early childhood development, as envisioned in the National Development Plan. The grant
has two distinct objectives: improve SRRUFKLOGUHQ¶VDFFHVVWRHDUO\FKLOGKRRGSURJUDPPHVDQGHQVXUe that
early childhood centres have adequate infrastructure. The grant baseline totals R1.6 billion over the
MTEF period.
The social worker employment grant, also in its second year, was created to help reduce the backlog in the
number of unemployed social worker graduates while the need for social work across the country
continues to increase. The grant uses reprioritised funds that the Department of Social Development
previously used to subsidise the education of social workers. A total of R636.3 million has been allocated
to this grant over the medium term.

Sport and recreation grant

The mass participation and sport development grant aims to increase and sustain mass participation in
sport and recreational activities in the provinces, with greater emphasis on provincial and district
academies. The baseline of this grant is reduced by R99 million, with an allocation of R1.9 billion over the
MTEF period.

Transport grants
The public transport operations grant subsidises commuter bus services. It helps ensure that provinces
meet their contractual obligations and provide services efficiently. The public transport contracting and
regulatory functions may be assigned to certain metropolitan municipalities during 2018/19. If this takes
place, funds for this grant will be transferred directly to the assigned municipality. Given the pressure this
 91

sector faces, the grant¶V baseline is protected, with allocations of R6 billion in 2018/19, R6.3 billion in
2019/20 and R6.7 billion in 2020/21.
The provincial roads maintenance grant has three components. The largest component enables provinces
to expand their maintenance activities, while the other two allow provinces to repair roads damaged by
floods and rehabilitate roads that are heavily used in support of electricity production. Grant allocations are
determined using a formula based on provincial road networks, road traffic and weather conditions. These
factors reflect the different costs of maintaining road networks in each province. The grant requires
provinces to follow best practices for planning, and to use and regularly update road asset management
systems.
The performance indicators for the incentive portion of the grant, based on traffic loads, safety engineering
and visual condition indicators, came into effect in 2017/18. The total allocation for the MTEF period is
R34.6 billion.

Part 5: Local government fiscal framework and allocations

This section outlines the transfers made to local government and how these funds are distributed between
municipalities. Funds raised by national government are transferred to municipalities through conditional
and unconditional grants. National transfers to municipalities are published to enable them to plan fully for
their 2018/19 budgets, and to promote better accountability and transparency by ensuring that all national
allocations are included in municipal budgets.
Over the 2018 MTEF period, R382.8 billion will be transferred directly to local government and a further
R21.8 billion has been allocated to indirect grants. Direct transfers to local government over the medium
term account for 9 per FHQWRIQDWLRQDOJRYHUQPHQW¶VQRQ-interest expenditure. When indirect transfers are
added to this, total spending on local government increases to 9.5 per cent of national non-interest
expenditure.

Table W1.20 Transfers to local government1

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Outcom e Adjusted Medium -term estim ates
R m illion budget
Direct transfers 87 570 98 338 102 867 112 578 118 458 126 914 137 462
Equitable share and related 41 592 49 367 50 709 57 012 62 732 68 973 75 683
Equitable share formula2 36 512 44 211 45 259 51 326 56 722 62 633 69 001
RSC levy replacement 4 146 4 337 4 567 4 795 5 073 5 357 5 652
Support for councillor 935 819 883 891 937 983 1 030
remuneration and w ard
committees
General fuel levy sharing 10 190 10 659 11 224 11 785 12 469 13 167 14 027
w ith m etros
Conditional grants 35 788 38 313 40 934 43 781 43 258 44 773 47 752
Infrastructure 34 167 36 866 39 073 41 804 41 214 42 637 44 982
Capacity building and other 1 621 1 446 1 861 1 977 2 043 2 136 2 769
Indirect transfers 8 052 10 370 8 112 7 803 6 896 7 265 7 664
Infrastructure 7 800 10 119 8 093 7 699 6 780 7 143 7 536
Capacity building and other 252 251 19 103 115 122 128
Total 95 622 108 708 110 979 120 381 125 354 134 178 145 126
1. Excludes provisional allocations
2. Outcome figures for the equitable share reflect amounts transferred after funds have been
withheld to offset underspending by municipalities on conditional grants. Roll-over funds are reflected in the year
in which they were transferred
Source: National Treasury
 92

The local government fiscal framework responds to the constitutional assignment of powers and functions
to this sphere of government. The framework ± including all transfers and own revenues ± is structured to
VXSSRUWWKHDFKLHYHPHQWRIWKH1DWLRQDO'HYHORSPHQW3ODQ¶VJRDOV
The framework refers to all resources available to municipalities to meet their expenditure responsibilities.
National transfers account for a relatively small proportion of the local government fiscal framework, with
the majority of local government revenues being raised by municipalities themselves through their
substantial revenue-raising powers. However, the proportion of revenue from transfers and own revenues
varies dramatically across municipalities, with poor rural municipalities receiving most of their revenue
from transfers, while urban municipalities raise the majority of their own revenues. This differentiation in
the way municipalities are funded will continue in the period ahead. As a result, transfers per household to
the most rural municipalities are more than twice as large as those to metropolitan municipalities.

Figure W1.1 Per household allocations to municipalities, 2018/19*

Average equitable share per household
Average conditional grant per household
10

4.2
8
R thousand

4.1
6
2.5
4 2.3
2.4 6.3
5.3
2 4.0
3.1
2.3
0
Metro (8) Secondary cities Large towns (26) Small towns (99) Rural
(19) municipalities (61)

*Reflects funds allocated through Division of Revenue Bill. Allocations to district municipalities are reassigned to local
municipalities where possible.
Source: National Treasury

Changes to local government allocations

Over the next three years there is strong growth in allocations to the local government equitable share,
alongside a significant reduction in conditional grants. As a result, total direct allocations to local
government grow at an annual average rate of 6.9 per cent over the MTEF period. The changes to each
local government allocation are summarised in Table W1.21.
 93

Table W1.21 Revisions to direct and indirect transfers to local government 1

2018/19 2019/20 2020/21 2018 MTEF
Total
R million revisions
Technical adjustments 140 149 159 448
Direct transfers 140 149 159 448
Municipal disaster recovery 21 - - 21
Municial disaster relief -21 - - -21
Municipal emergency housing 140 149 159 448
Additions to baselines ± 1 500 2 413 3 913
Direct transfers ± 1 500 2 413 3 913
Local government equitable share ± 1 500 1 899 3 399
Municipal restructuring ± ± 514 514
Reductions to baseline -3 852 -5 962 -6 290 -16 104
Direct transfers -3 152 -5 212 -5 499 -13 863
Municipal infrastructure -1 500 -2 000 -2 110 -5 610
Water services infrastructure -78 -88 -93 -259
Urban settlements development -650 -750 -791 -2 191
Public transport network -329 -848 -895 -2 072
Expanded public works programme integrated -36 -39 -41 -117
grant for municipalities
Integrated national electrification programme -300 -1 200 -1 266 -2 766
(municipal)
Neighbourhood development partnership -100 -120 -127 -347
Integrated city development -15 -16 -17 -49
Rural roads asset management systems -6 -6 -6 -18
Regional bulk infrastructure -103 -109 -115 -327
Local government financial management -27 -28 -30 -85
Infrastructure skills development -7 -8 -8 -23
Indirect transfers -700 -750 -791 -2 241
Integrated national electrification programme -700 -750 -791 -2 241
Total change to local government allocations
Change to direct transfers -3 012 -3 563 -2 927 -9 502
Change to indirect transfers -700 -750 -791 -2 241
Net change to local government allocations -3 712 -4 313 -3 718 -11 743
1. Excludes provisional allocations
Source: National Treasury

Just under R3.4 billion is added to the local government equitable share over the medium term. This will
fully cover the increased municipal costs of providing free basic services to a growing number of
households, and takes account of likely above-inflation increases in the costs of bulk water and electricity.
It will also allow for faster increases in the allocations to poorer and rural municipalities through the
redistributive components of the equitable share formula.
A new conditional grant will be introduced to help municipalities in financial crisis to implement reforms
to turn themselves around. This grant receives an allocation of R514 million in 2020/21. It also has a
provisional allocation of R300 million in 2019/20, but this is not reflected in Table W1.21 because
provisional allocations are not yet confirmed. The allocation will be confirmed based on the quality of
preparatory work for the grant completed in 2018. This new grant is discussed further in Part 6.
Since the 2017 Medium Term Budget Policy Statement, large reductions to major government spending
programmes across all three spheres of government have been required, as discussed in Chapter 3, 5 and 6
of the Budget Review.
 94

A total of R13.9 billion has been cut from direct local government conditional grant allocations for the
MTEF period ahead since the 2017 Medium Term Budget Policy Statement was tabled. Indirect grants to
local government have been reduced by an additional R2.2 billion.
Not all conditional grants were reduced, and not all grants were reduced by the same amount. Cuts were
mostly made to infrastructure conditional grants, particularly the larger ones, as this was the most practical
way of making the necessary reductions. The effect on each conditional grant is discussed in more detail in
the sub-section below on conditional grants.
Technical adjustments include the shift of R448 million over the MTEF period from the provincial human
settlements development grant to establish the new municipal emergency housing grant.

The local government equitable share

In terms of section 227 of the Constitution, local government is entitled to an equitable share of nationally
raised revenue to enable it to provide basic services and perform its allocated functions. The local
government equitable share is an unconditional transfer that supplements the revenue that municipalities
can raise themselves (including revenue raised through property rates and service charges). The equitable
share provides funding for municipalities to deliver free basic services to poor households and subsidises
the cost of administration and other core services for those municipalities that have the least potential to
cover these costs from their own revenues.
Over the 2018 MTEF period, the local government equitable share, including the RSC/JSB levies
replacement grant and special support for councillor remuneration and ward committees, amounts to
R207.4 billion ± R62.7 billion in 2018/19, R69 billion in 2019/20 and R75.7 billion in 2020/21.
To help compensate for the rising costs of providing free basic services in municipalities, R1.5 billion will
be added to the local government equitable share in 2019/20 and R1.9 billion will be added in 2020/21.
This is in addition to previous increases and an above inflation growth rate for the baseline in 2020/21. As
a result the amounts available for the local government equitable share grow at an average annual rate of
10.4 per cent over the MTEF.

Formula for allocating the local government equitable share

The portion of national revenue allocated to local government through the equitable share is determined in
WKHQDWLRQDOEXGJHWSURFHVVDQGHQGRUVHGE\&DELQHWWKHYHUWLFDOGLYLVLRQ/RFDOJRYHUQPHQW¶VHTXLWDEOH
VKDUH LV GLYLGHG DPRQJ WKH FRXQWU\¶V  municipalities, using a formula (the horizontal division) to
ensure objectivity.
Following a review of the previous formula by the National Treasury, the Department of Cooperative
Governance and SALGA, in partnership with the FFC and Statistics South Africa, the current formula for
the local government equitable share was introduced in 2013/14. The formXOD¶VSULQFLSOHVDQGREMHFWLYHV
were set out in detail in the Explanatory Memorandum to the 2013 Division of Revenue.

Structure of the local government equitable share formula

7KH IRUPXOD XVHV GHPRJUDSKLF DQG RWKHU GDWD WR GHWHUPLQH HDFK PXQLFLSDOLW\¶V SRrtion of the local
government equitable share. It has three parts, made up of five components:
x The first part of the formula consists of the basic services component, which provides for the cost of
free basic services for poor households.
x The second part enables municipalities with limited resources to afford basic administrative and
governance capacity, and perform core municipal functions. It does this through three components:
- The institutional component provides a subsidy for basic municipal administrative costs.
- The community services component provides funds for other core municipal services not included
under basic services.
 95

- The revenue adjustment factor ensures that funds from this part of the formula are only provided to
municipalities with limited potential to raise their own revenue. Municipalities that are least able to
fund these costs from their own revenues should receive the most funding.
x The third part of the formula provides predictability and stability through the correction and
stabilisation factorZKLFKHQVXUHVWKDWDOORIWKHIRUPXOD¶VJXDUDQWHHVFDQEHPHW
Each of these components is described in detail in the sub-sections that follow.

Structure of the local government equitable share formula

LGES = BS + (I + CS)xRA ± C
where
LGES is the local government equitable share
BS is the basic services component
I is the institutional component
CS is the community services component
RA is the revenue adjustment factor
C is the correction and stabilisation factor

The basic services component

This component helps municipalities provide free basic water, sanitation, electricity and refuse removal
services to households that fall below an affordability threshold. Following municipal consultation, the
IRUPXOD¶V DIIRUGDELOLW\ PHDVXUH XVHd to determine how many households need free basic services) is
based on the level of two state old age pensions. When the 2011 Census was conducted, the state old age
pension was worth R1 140 per month, which means that two old age pensions were worth
R2 280 per month. A monthly household income of R2 300 per month (in 2011) has therefore been used to
GHILQH WKH IRUPXOD¶V DIIRUGDELOLW\ WKUHVKROG 6WDWLVWLFV 6RXWK $IULFD KDV FDOFXODWHG WKDW  per cent of all
households in South Africa fall below this income threshold. However, the proportion in each municipality
varies widely. If this monthly household income is to be shown in 2018 terms, this is equivalent to about
R3 350 per month. This threshold is not an official poverty line or a required level to be used by
municipalities in their own indigence policies ± if municipalities choose to provide fewer households with
free basic services than they are funded for through the local government equitable share, then their budget
documentation should clearly set out why they have made this choice and how they have consulted with
their community during the budget process.
The number of households per municipality, and the number below the poverty threshold, is updated
annually. In 2018/19 the number of households used in the formula will be updated from the 2016
Community Survey. The three-year process of phasing in the impact of the 2016 Community Survey data
began in 2017/18. In 2018/19, allocations are based on data from the 2016 Community Survey, but the
impact of the changes resulting from this updated data are cushioned through a phase-in mechanism
described below (under the correction and stabilisation component).
From 2019/20, the number of households per municipality used to calculate indicative allocations for the
outer years of the MTEF is updated based on the growth experienced between the 2001 Census and the
2016 Community Survey. Provincial growth rates are then rebalanced to match the average annual
provincial growth reported between 2002 and 2016 in the annual General Household Survey. Statistics
South Africa has advised the National Treasury that, in the absence of official municipal household
estimates, this is a credible method of estimating the household numbers per municipality needed for the
formula. Statistics South Africa is researching methods for producing municipal-level data estimates,
which may be used to inform equitable share allocations in future.
The proportion of households below the affordability threshold in each municipality is still based on 2011
Census data. This is because the 2016 Community Survey did not publish data on household incomes.
 96

Although the total number of households in each municipality is adjusted every year to account for growth,
the share of those households that are subsidised for free basic services through the formula remains
constant (but the number of households subsidised increases annually in line with estimated household
growth). In 2018/19, a total of 9.8 million households are funded through the basic services subsidy.
The basic services component provides a subsidy of R383.12 per month in 2018/19 for the cost of
providing basic services to each of these households. The subsidy includes funding for the provision of
free basic water (six kilolitres per poor household per month), energy (50 kilowatt-hours per month) and
sanitation and refuse (based on service levels defined by national policy). The monthly amount provided
for each service is detailed in Table W1.22 and includes an allocation of 10 per cent for service
maintenance costs.

Table W1.22 Amounts per basic service allocated through the local
government equitable share, 2018/19
Allocation per household below affordability Total allocation
threshold (R per month) per service
Operations Maintenance Total (R million)
Energy 73.46 8.16 81.62 9 604
Water 112.90 12.54 125.45 14 761
Sanitation 86.19 9.58 95.77 11 269
Refuse 72.25 8.03 80.28 9 447
Total basic services 344.81 38.31 383.12 45 081
Source: National Treasury

The formula uses the fairest estimates of the average costs of providing each service that could be derived
from available information. More details of how the costs were estimated can be found in the discussion
paper on the proposed structure of the new local government equitable share formula, available on the
National Treasury website. The per-household allocation for each of the basic services in Table W1.22 is
updated annually based on the following:
x The electricity cost estimate is made up of bulk and other costs. Bulk costs are updated based on the
bulk price determination approved by the National Energy Regulator of South Africa. As the bulk price
increase for municipalities for 2018/19 will only be announced after the 2018 Budget is tabled, the
8 per cent annual increase approved for the previous multi-year price determination period has been
used to calculate equitable share allocations. Other electricity costs are updated based on the National
7UHDVXU\¶VLQflation projections in the 2017 Medium Term Budget Policy Statement.
x The water cost estimate is also made up of bulk and other costs. Bulk costs are updated based on the
average increase in bulk tariffs charged by water boards (although not all municipalities purchase bulk
water from water boards, their price increases serve as a proxy for the cost increases for all
municipalities). The approved average tariff increase for bulk water from water boards in 2017/18 was
8.8 per cent. Other costs are updated basHG RQ WKH 1DWLRQDO 7UHDVXU\¶V LQIODWLRQ SURMHFWLRQV LQ WKH
2017 Medium Term Budget Policy Statement.
x 7KH FRVWV IRU VDQLWDWLRQ DQG UHIXVH UHPRYDO DUH XSGDWHG EDVHG RQ WKH 1DWLRQDO 7UHDVXU\¶V LQIODWLRQ
projections in the 2017 Medium Term Budget Policy Statement.
The basic services component allocation to each municipality is calculated by multiplying the monthly
subsidy per household by the updated number of households below the affordability threshold in each
municipal area.

The basic services component

BS = basic services subsidy x number of poor households
 97

Funding for each basic service is allocated to the municipality (metro, district or local) that is authorised to
provide that service. If another municipality provides a service on behalf of the authorised municipality, it
must transfer funds to the provider in terms of section 29 of the Division of Revenue Act. The basic
services component is worth R45 billion in 2018/19 and accounts for 79.5 per cent of the value of the local
government equitable share.

The institutional component

To provide basic services to households, municipalities need to be able to run a basic administration. Most
municipalities should be able to fund the majority of their administration costs with their own revenue.
But, because poor households are not able to contribute in full, the equitable share includes an institutional
support component to help meet some of these costs. To ensure that this component supports
municipalities with limited revenue-raising abilities, a revenue adjustment factor is applied so that
municipalities with less potential to raise their own revenue receive a larger proportion of the allocation.
The revenue adjustment factor is described in more detail later in this annexure.
This component consists of a base allocation of R6.6 million, which goes to every municipality, and an
additional amount that is based on the number of council seats in each municipality. This reflects the
UHODWLYHVL]HRIDPXQLFLSDOLW\¶VDGPLQLVWUDWLRQDQGLVQRWLQWHQGHGWRIXQGWKHFRVWVRIFRXQFLOORUVRQO\the
Minister of Cooperative Governance and Traditional Affairs determines the number of seats recognised for
the formula). The base component acknowledges that there are some fixed costs that all municipalities
face.

The institutional component

I = base allocation + [allocation per councillor * number of council seats]

The institutional component accounts for 8.2 per cent of the equitable share formula and is worth
R4.7 billion in 2018/19. This component is also complemented by special support for councillor
remuneration in poor municipalities, which is not part of the equitable share formula.

The community services component

This component funds services that benefit communities rather than individual households (which are
provided for in the basic services component). It includes funding for municipal health services, fire
services, municipal roads, cemeteries, planning, storm water management, street lighting and parks. To
ensure this component assists municipalities with limited revenue-raising abilities, a revenue adjustment
factor is applied so that these municipalities receive a larger proportion of the allocation.
The allocation for this component is split between district and local municipalities, which both provide
community services. In 2018/19, the allocation to district and metropolitan municipalities for municipal
health and related services is R9.31 per household per PRQWK 7KH FRPSRQHQW¶V UHPDLQLQJ IXQGV DUH
allocated to local and metropolitan municipalities based on the number of households in each municipality.

The community services component

CS = [municipal health and related services allocation x number of households] + [other services allocation x
number of households]

The community services component accounts for 12.3 per cent of the equitable share formula and is worth
R7 billion in 2018/19.

The revenue adjustment factor

The Constitution gives local government substantial revenue-raising powers (particularly through property
rates and surcharges on services). Municipalities are expected to fund most of their own administrative
costs and cross-subsidise some services for indigent residents. Given the varied levels of poverty across
 98

South Africa, the formula does not expect all municipalities to be able to generate similar amounts of own
revenue. A revenue adjustment factor is applied to the institutional and community services components of
the formula to ensure that these funds assist municipalities that are least likely to be able to fund these
functions from their own revenue.
To account for the varying fiscal capacities of municipalities, this component is based on a per capita index
using the following factors from the 2011 Census:
x Total income of all individuals/households in a municipality (as a measure of economic activity and
earning)
x Reported property values
x Number of households on traditional land
x Unemployment rate
x Proportion of poor households as a percentage of the total number of households in the municipality.
Based on this index, municipalities were ranked according to their per capita revenue-raising potential. The
top 10 per cent of municipalities have a revenue adjustment factor of zero, which means that they do not
receive an allocation from the institutional and community services components. The 25 per cent of
municipalities with the lowest scores have a revenue adjustment factor of 100 per cent, which means that
they receive their full allocation from the institutional and community services components. Municipalities
between the bottom 25 per cent and top 10 per cent have a revenue adjustment factor applied on a sliding
scale, so that those with higher per capita revenue-raising potential receive a lower revenue adjustment
factor and those with less potential have a larger revenue adjustment factor.
The revenue adjustment factor is not based on the actual revenues municipalities collect, which ensures
that this component does not create a perverse incentive for municipalities to under-collect potential own
revenues to receive a higher equitable share.
Because district municipalities do not collect own revenues from property rates, the revenue adjustment
factor applied to these municipalities is based on the RSC/JSB levies replacement grant allocations. This
grant replaces a source of own revenue previously collected by district municipalities and it is still treated
as an own-revenue source in many respects. Similar to the revenue adjustment factor for local and
metropolitan municipalities, the factor applied to district municipalities is based on their per capita
RSC/JSB levies replacement grant allocations. District municipalities are given revenue adjustment factors
on a sliding scale ± those with a higher per capita RSC/JSB levies replacement grant allocation receive a
lower revenue adjustment factor, while those with lower allocations have a higher revenue adjustment
factor.

Correction and stabilisation factor

Providing municipalities with predictable and stable equitable share allocations is one of the principles of
the equitable share formula. Indicative allocations are published for the second and third years of the
MTEF period to ensure predictability. To provide stability for municipal planning, while giving national
government flexibility to account for overall budget constraints and amend the formula, municipalities are
guaranteed to receive at least 90 per cent of the indicative allocation for the middle year of the MTEF
period.
The changes resulting from updating the formula with 2016 Community Survey data are phased in through
the correction and stabilisation factor over three years (2017/18 to 2019/20). The updated data results in
some significant changes to municipal allocations because the number of households in some
municipalities in the survey differs from the projected numbers used in the local government equitable
share formula (based on 2011 Census numbers, updated annually using past growth rates). Although the
projected number of households in the formula for the country as a whole differed from the
2016 Community Survey results by only about 1 000 households, or a difference of only 0.006 per cent, in
 99

some individual municipalities the differences were as high as 24 per cent. In 44 per cent of municipalities,
WKH GLIIHUHQFH EHWZHHQ WKH IRUPXOD¶V SURMHFWLRQV DQG WKH  Community Survey results was less than
5 per cent, but to preserve the stability of allocations to those municipalities with larger differences it is
necessary to phase in the updates over a three-year period.
In 2018/19, the phasing in of the 2016 Community Survey data is structured so that the municipality with
the highest percentage decrease as a result of the update receives 90 per cent of its indicative allocation for
2018/19, as set out in the 2016 Division of Revenue Act. The rest of the municipalities receive allocations
above their 90 per cent guaranteed amount that are proportional to the size of their total allocation, adjusted
to account for the percentage increase or decrease resulting from the data updates. The same methodology
was applied in 2017/18, but with the municipality with the highest percentage decrease receiving
95 per cent of its indicative allocation, giving them more cushioning in the first year. By 2019/20,
municipalities will be receiving allocations as determined by the updated formula.

Ensuring the formula balances

The formula is structured so that all of the available funds are allocated. The basic services component is
determined by the number of poor households per municipality and the estimated cost of free basic
services, so it cannot be manipulated. This means that balancing the formula to the available resources
must take place in the second part of the formula, which includes the institutional and community services
components. The formula automatically determines the value of the allocation per council seat in the
institutional component and the allocation per household for other services in the community services
component to ensure that it balances. Increases in the cost of providing basic services can result in lower
institutional and community services allocations.

Providing for bulk price increases in the outer years

As an additional safeguard in case of bulk costs for electricity or water that are higher than anticipated, or
household growth, amounts of R500 million in 2019/20 and R1 billion in 2020/21 will remain unallocated.
These funds were added to the local government equitable share through the budget process partly to offset
(VNRP¶Vmajor requested increase in electricity bulk costs, which has not been approved to date. Setting
these amounts aside as unallocated in the outer years of the 2018 MTEF period also prevents them from
being allocated to municipalities through the community services and institutional components, only to
have to reverse those increases in future if the funds have to be reprioritised into the basic services
component.

Potential future refinements to the formula

Although the local government equitable share formula has been through extensive consultations and
technical work, national government continues to work with stakeholders to improve the formula. Areas of
work include:
x Exploring the use of differentiated cost variables to take account of the cost of services in various
circumstances, including costs related to the size of the land area served and settlement types in
municipalities. SALGA and the FFC have completed a research project that provides some estimates of
these different cost factors and demonstrates how complex it would be to incorporate such details into
the formula. SALGA has undertaken to propose how aspects of this study might be incorporated into
the formula.
x Refining the methodology used to update household growth estimates, taking account of updated data
from Statistics South Africa, and possibly using district-level data.
x Improving the responsiveness of the formula to the different functions assigned to district and local
municipalities. This work depends on the availability of credible official records of the functions
assigned to each sphere of government.
 100

Details of new allocations

In addition to the three-year formula allocations published in the Division of Revenue Bill, a copy of the
formula, including the data used for each municipality and each component, is
published online (http://mfma.treasury.gov.za/Media_Releases/LGESDiscussions/Pages/default.aspx).

Other unconditional allocations

RSC/JSB levies replacement grant

Before 2006, district municipalities raised levies on local businesses through a Regional Services Council
(RSC) or Joint Services Board (JSB) levy. This source of revenue was replaced in 2006/07 with the
RSC/JSB levies replacement grant, which was allocated to all district and metropolitan municipalities
based on the amounts they had previously collected through the levies. The RSC/JSB levies replacement
grant for metropolitan municipalities has since been replaced by the sharing of the general fuel levy. The
RSC/JSB levies replacement grant¶VYDOXHLQFUHDVHVHYHU\\HDU
In the 2017 Explanatory Memorandum to the Division of Revenue it was announced that adjustments
would be made to the grant to redistribute funds to the 13 district municipalities with the smallest
allocations from this grant. These adjustments are being implemented over a two-year period, from
2017/18 to 2018/19. To fund these increased allocations, the growth rates of the 10 district municipalities
with the largest allocations were reduced so that they received two-thirds of their original growth rate in
2017/18 and they will receive one-third of their original growth rate in 2018/19. Provincial treasuries have
been asked to engage with the district municipalities that receive increased allocations to ensure that they
use these additional funds to improve services.
In the year following the completion of this adjustment (2019/20), the grant increases by 8.8 per cent a
year for district municipalities authorised for water and sanitation and 2.9 per cent for unauthorised district
municipalities. The different rates recognise the various service-delivery responsibilities of these district
municipalities and the fact that the allocations to unauthorised municipalities have an average growth rate
below inflation.

Special support for councillor remuneration and ward committees

&RXQFLOORUV¶ VDODries are subsidised in poor municipalities. The total value of the support provided in
2018/19 is R937 million, calculated separately to the local government equitable share and in addition to
the funding for governance costs provided in the institutional component. The level of support for each
municipality is allocated based on a system gazetted by the Minister of Cooperative Governance and
Traditional Affairs, which classifies municipal councils into six grades based on their total income and
population size. Special support is provided to the lowest three grades of municipal councils (the smallest
and poorest municipalities).
A subsidy of 90 per cent of the gazetted maximum remuneration for a part-time councillor is provided for
every councillor in grade 1 municipalities, 80 per cent for grade 2 municipalities and 70 per cent for
grade 3 municipalities. In addition to this support for councillor remuneration, each local municipality in
grades 1 to 3 receives an allocation to provide stipends of R500 per month to 10 members of each ward
FRPPLWWHHLQWKHLUPXQLFLSDOLW\(DFKPXQLFLSDOLW\¶VDOORFDWLRQIRUWKLVVSHFLDOVXSSRUWLVSXEOLVKHGLQWKH
Division of Revenue Bill appendices.

Conditional grants to local government

National government allocates funds to local government through a variety of conditional grants. These
grants fall into two main groups: infrastructure and capacity building. The total value of conditional grants
directly transferred to local government increases from R43.3 billion in 2018/19 to R44.8 billion in
2019/20 and R47.8 billion in 2020/21.
 101

There are four types of local government conditional grants:

x Schedule 4, part B sets out general grants that supplement various programmes partly funded by
municipalities.
x Schedule 5, part B grants fund specific responsibilities and programmes implemented by
municipalities.
x Schedule 6, part B grants provide in-kind allocations through which a national department implements
projects in municipalities.
x Schedule 7, part B grants provide for the swift allocation and transfer of funds to a municipality to help
it deal with a disaster or housing emergency.

Infrastructure conditional grants to local government

National transfers for infrastructure, including indirect or in-kind allocations to entities executing specific
projects in municipalities, amount to R150.3 billion over the 2018 MTEF period.

Table W1.23 Infrastructure grants to local government1

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Outcome Adjusted Medium-term estimates
R million budget
Direct transfers 34 167 36 866 39 073 41 804 41 214 42 637 44 982
Municipal infrastructure 14 745 14 956 14 914 15 891 15 288 15 734 16 599
Water services infrastructure 1 051 2 305 2 831 3 329 3 481 3 669 3 871
Urban settlements development 10 285 10 554 10 839 11 382 11 306 11 881 12 534
Integrated national electrification 1 105 1 980 1 946 2 087 1 904 2 128 2 245
programme
Public transport network 5 871 5 953 5 593 6 160 6 254 6 114 6 450
Neighbourhood development 590 584 592 663 602 621 655
partnership
Integrated city development 255 251 267 292 294 310 327
Regional bulk infrastructure ± ± 1 850 1 865 1 957 2 066 2 180
Rural roads asset management 75 97 102 107 108 114 120
systems
Municipal disaster recovery 190 186 140 26 21 ± ±
Indirect transfers 7 800 10 119 8 093 7 699 6 780 7 143 7 536
Integrated national electrification 2 948 3 613 3 526 3 846 3 262 3 432 3 621
programme
Neighbourhood development 30 13 15 28 29 31 33
partnership
Regional bulk infrastructure 4 005 4 858 3 422 2 974 2 881 3 037 3 204
Water services infrastructure 732 659 298 852 608 642 678
Bucket eradication programme 84 975 831 ± ± ± ±
Total 41 967 46 985 47 166 49 503 47 995 49 780 52 519
1. Excludes provisional allocations
Source: National Treasury

Municipal infrastructure grant

The largest infrastructure transfer to municipalities is made through the municipal infrastructure grant,
ZKLFK VXSSRUWV JRYHUQPHQW¶V DLP WR H[SDQG VHUYLFH GHOLYHU\ DQG DOOHYLDWH SRYHUW\ 7KH JUDQW IXQGV WKH
provision of infrastructure for basic services, roads and social infrastructure for poor households in all non-
metropolitan municipalities. AlthRXJK WKH JUDQW¶V EDVHOLQH LV UHGXFHG E\ 5 billion in 2018/19,
R2 billion in 2019/20 and R2.1 billion in 2020/21, total allocations still amount to R47.6 billion over the
2018 MTEF period and grow at an average annual rate of 1.5 per cent. The impact of this reduction will be
shared among municipalities in line with the municipal infrastructure grant formula. The IRUPXOD¶Vbase
 102

component ensures that smaller municipalities will see a much smaller cut in percentage terms than large
municipalities ± the municipality with the smallest grant allocations will receive a cut of about 2.5 per cent
in 2018/19, while the largest reduction to a municipality will be 9.5 per cent.
The municipal infrastructure grant is allocated through a formula with a vertical and horizontal division.
The vertical division allocates resources between sectors and the horizontal division takes account of
poverty, backlogs and municipal powers and functions in allocating funds to municipalities. The five main
components of the formula are described in the box below.

Municipal infrastructure grant = C + B + P + E + N

C Constant to ensure increased minimum allocation for small municipalities (this allocation is made to all
municipalities)
B Basic residential infrastructure (proportional allocations for water supply and sanitation, roads and other
services such as street lighting and solid waste removal)
P Public municipal service infrastructure (including sport infrastructure)
E Allocation for social institutions and micro-enterprise infrastructure
N Allocation to the 27 priority districts identified by government

Allocations for the water and sanitation sub-components of the basic services component are based on the
proportion of the national backlog for that service in each municipality. Other components are based on the
SURSRUWLRQ RI WKH FRXQWU\¶V SRRU KRXVHKROGV ORFDWHG LQ HDFK PXQLFLSDOLW\ The formula considers poor
households without access to services that meet sector standards to be a backlog.

Data used in the municipal infrastructure grant formula

Component Indicator used in Data used (all data is from the 2011 Census)
the formula
1
B Number of water Number of poor households that do not have adequate access to
backlogs water (adequate access defined as piped water either inside their
dwelling, in the yard or within 200 meters of their dwelling)
Number of Number of poor households that do not have adequate access to
sanitation backlogs sanitation (adequate access defined as having a flush toilet, chemical
toilet, pit toilet with ventilation or ecological toilet)
Number of roads Number of poor households
backlogs
Number of other Number of poor households that do not have access to refuse disposal
backlogs at Reconstruction and Development Programme levels of service
P Number of poor Number of poor households
households
E Number of poor Number of poor households
households
N Number of Allocated to the 27 priority districts identified by Cabinet as having
households in large backlogs. Allocation is based on total households (not poor
nodal areas households)
1. Poor household defined as a monthly household income of less than R2 300 per month in 2011 Census data

Table W1.24 sets out the proportion of the grant accounted for by each component of the formula.
The C-component provides a R5 million base to all municipalities receiving municipal infrastructure grant
allocations.
 103

Table W1.24 Municipal infrastructure grant allocations per sector

Municipal infrastructure Component Value of Proportion of
grant (formula) weights component municipal
2018/19 infrastructure
(R millions) grant per
sector
B-component 75.0% 10 413 368 68.1%
Water and sanitation 54.0% 7 497 625 49.0%
Roads 17.3% 2 395 075 15.7%
Other 3.8% 520 668 3.4%
P-component 15.0% 2 082 674 13.6%
Sports 33.0% 687 282 4.5%
E-component 5.0% 694 225 4.5%
N-component 5.0% 694 225 4.5%
Constant 5.0% 1 130 000 7.4%
Ring-fenced funding for sport 273 195 1.8%
infrastructure
Total 15 287 685 100.0%
Source: National Treasury

The municipal infrastructure grant includes an amount allocated outside of the grant formula and
earmarked for specific sport infrastructure projects identified by Sport and Recreation South Africa. These
earmarked funds amount to R273.2 million in 2018/19, R266.2 million in 2019/20 and R266.2 million in
2020/21. This allocation takes into account a reduction of R26.8 million in 2018/19, R33.8 million in
2019/20 and R33.8 million in 2020/21. In addition, municipalities are required to spend a third of the P-
component (equivalent to 4.5 per cent of the grant) on sport and recreation infrastructure identified in their
own integrated development plans. Municipalities are also encouraged to increase their investment in other
community infrastructure, including cemeteries, community centres, taxi ranks and marketplaces.
The Department of Cooperative Governance, which administers the municipal infrastructure grant,
continues to implement measures to strengthen the management and implementation of the grant in line
with the ongoing review of local government infrastructure grants. In 2018/19, two local municipalities,
Polokwane and uMhlathuze, will be used to pilot a new approach to funding infrastructure in intermediate
cities in 2018/19. These cities face spatial and urban development challenges similar to metropolitan
municipalities. The pilot project will shift the municipal infrastructure grant towards programmatic, rather
than project-based, planning and reporting requirements. This will create greater flexibility in the use of
grants to implement catalytic investments and leverage other sources of funding. From 2019/20, more
cities will be able to apply to participate in this grant structure, and a new integrated urban development
grant will be created through the reprioritisation of funds from the municipal infrastructure grant. Further
details of plans for this grant are discussed in Part 6.

Urban settlements development grant

The urban settlements development grant is an integrated source of funding for infrastructure for
municipal services and upgrades to urban informal settlements in the eight metropolitan municipalities. It
is allocated as a supplementary grant to cities (schedule 4, part B of the Division of Revenue Act), which
means that municipalities are expected to use a combination of grant funds and their own revenue to
develop urban infrastructure and integrated human settlements. Cities report their progress on these
projects against the targets set in their service-delivery and budget implementation plans. This grant helps
cities provide services to the large number of urban households living in informal settlements. At least
50 per cent of the grant must be used to fund the upgrading of informal settlements. Government will
review the performance of urban informal settlement upgrading programmes during 2018 and propose
changes to grants where necessary to improve performance. Up to 3 per cent of the urban settlements
development grant may be used to fund municipal capacity in the built environment in line with the
capacity-building guideline to be published by the Department of Human Settlements.
 104

Reporting on urban infrastructure grants, including the urban settlements development grant, will be
simplified in 2018/19, helping to reduce the reporting burden on cities. This is the result of a process led by
the National Treasury to rationalise and streamline built environment reporting for the eight metropolitan
municipalities. The National Treasury has also created a set of indicators to enable government to monitor
progress on the integrated and functional outcomes. These reforms will progressively be extended to non-
metropolitan municipalities over the medium term.
$OWKRXJK WKH JUDQW¶V EDVHOLQH LV UHGXFHG E\ 5 million in 2018/19, R750 million in 2019/20 and
R791 million in 2020/21, total allocations still amount to R35.7 billion over the MTEF period and grow at
an average annual rate of 3.3 per cent. The impact of this reduction will be shared proportionately across
the eight metropolitan municipalities.

Integrated city development grant

The grant provides a financial incentive for metropolitan municipalities to focus their use of infrastructure
LQYHVWPHQW DQG UHJXODWRU\ LQVWUXPHQWV WR DFKLHYH PRUH FRPSDFW DQG HIILFLHQW XUEDQ VSDFHV 7KH JUDQW¶V
incentive allocations were previously based on performance measures of good governance and
administration. However, an additional indicator based on an DVVHVVPHQW RI D FLW\¶V EXLOW HQYLURQPHQW
performance plan was introduced in 2017/18. Cities are required to adopt performance plans that provide a
strategic overview of their plans for the built environment, and how their infrastructure investments will
transform spatial development patterns over time. Including a peer-reviewed assessment score in the
allocation criteria for this grant provides a tangible reward for cities that improve the quality of their plans.
This is in line with the reforms emerging from the ongoing review of local government infrastructure
grants, which calls for increased use of incentives in urban grants and the use of grants to support urban
spatial transformation.
$OWKRXJK WKH JUDQW¶V EDVHOLQH LV UHGXFHG E\ R15 million in 2018/19, R16 million in 2019/20 and
R17 million in 2020/21, total allocations still amount to R931 million over the 2018 MTEF period and
grow at an average annual rate of 4 per cent. Because this grant allocates formula-determined incentives,
the reduction will mean that the incentives available for each qualifying city will be slightly smaller.

Public transport network grant

The public transport network grant, administered by the Department of Transport, helps cities create or
improve public transport systems in line with the National Land Transport Act (2009) and the Public
Transport Strategy. This includes all integrated public transport network infrastructure, such as bus rapid
transit systems, conventional bus services, and pedestrian and cycling infrastructure. The grant also
subsidises the operation of these services.
A formula-based grant allocation has been implemented since 2016/17. This increases certainty about the
extent of national funding that municipalities can expect when planning their public transport networks,
and encourages cities to shift towards more sustainable public transport investments.
Previously, a formula was used to determine 80 per cent of the grant allocations and the remaining
20 per cent provided for discretionary allocations. In practice these discretionary allocations were mostly
used to top-up amounts for smaller cities. From 2018/19, the formula includes more stable and predictable
allocations for smaller cities. A new base component will account for 20 per cent of total allocations,
divided equally among all participating cities, to ensure that smaller cities in particular have a significant
base allocation to run their transport system regardless of their size. The bulk of the formula (75 per cent)
will be allocated based on three demand-driven factors, which account for the number of people in a city,
the number of public transport users in a city (the weighting of train commuters is reduced as trains are
VXEVLGLVHG VHSDUDWHO\ WKURXJK WKH 3DVVHQJHU 5DLO $XWKRULW\ RI 6RXWK $IULFD DQG WKH VL]H RI D FLW\¶V
economy. The remaining 5 per cent is earmarked for a performance incentive, which will take effect in
2019/20 when an approach to measuring performance has been finalised. In the meantime, the Department
of Transport allocates this 5 per cent as a discretionary amount.
 105

Strict eligibility conditions are also being introduced, including requirements that cities demonstrate that
their planned public transport systems will be financially sustainable. Several cities have already revised
their planned public transport networks as a result of these new planning requirements, and further
improvements are expected.
Table W1.25 Formula for the public transport network grant
Base Demand-driven factors Subtotal: Perfomance 100%
20% 75% base and 5%
Equally Population Regional Public demand Discretiona Grant
shared component gross value transport driven ry/incentive allocations
shares added users factors R 000 R 000
component component
shares shares

Buffalo City 7.7% 3.3% 2.8% 3.1% 3.8% -152 256 95 165
Cape Town 7.7% 16.3% 15.8% 13.9% 13.0% 242 296 1 045 522
City of Johannesburg 7.7% 19.3% 25.2% 20.5% 17.8% ± 1 112 936
City of Tshwane 7.7% 12.7% 15.0% 14.0% 12.0% 62 900 808 194
Ekurhuleni 7.7% 13.8% 9.5% 14.9% 11.1% ± 694 640
eThekwini 7.7% 15.0% 15.8% 18.0% 13.7% 25 443 883 887
George 7.7% 0.8% 0.5% 0.2% 1.9% 49 813 167 674
Mangaung 7.7% 3.3% 2.4% 3.2% 3.8% ± 234 831
Mbombela 7.7% 2.6% 1.9% 2.4% 3.3% ± 203 454
Msunduzi 7.7% 2.7% 1.5% 2.4% 3.2% ± 199 104
Nelson Mandela Bay 7.7% 5.0% 4.7% 3.6% 4.9% ± 304 942
Polokwane 7.7% 2.7% 1.5% 1.3% 2.9% 22 717 205 107
Rustenburg 7.7% 2.4% 3.5% 2.3% 3.6% 78 221 298 212
Total 100.0% 100.0% 100.0% 100.0% 95.0% 329 134 6 253 669
Source: National Treasury

The grant is allocated R18.8 billion over the medium term. Its baseline has been reduced by R329 million
in 2018/19, R848 million in 2019/20 and R895 million in 2020/21. These reductions will be implemented
proportionately across all 13 participating cities. The smaller reductions in the first year of the MTEF
period allow time for the national Department of Transport and the National Treasury to assess the plans
and performance of each city and to determine whether all cities should continue implementing their
planned systems. If some cities have plans that do not fully meet the criteria of the grant (including for
sustainable public transport systems), their future allocations will be reviewed. This process may result in
some funds being released that could lessen the effect of the budget reductions on other participating cities
in 2019/20 and 2020/21.

Neighbourhood development partnership grant

The neighbourhood development partnership grant supports cities in developing and implementing urban
network plans. The aim is to create a platform for third-party public and private investment, which will
improve the quality of life in township urban hubs. Projects in towns and rural areas are implemented in
conjuncWLRQZLWKWKH'HSDUWPHQWRI5XUDO'HYHORSPHQWDQG/DQG5HIRUP$OWKRXJKWKHJUDQW¶VEDVHOLQHLV
reduced by R100 million in 2018/19, R120 million in 2019/20 and R127 million in 2020/21, total
allocations still amount to R2 billion over the 2018 MTEF period, made up of R1.9 billion for the direct
capital component and R93 million for the indirect technical assistance component. Grant reductions will
mean that the implementation of some planned projects will be delayed.

Water services infrastructure grant

This grant, administered by the Department of Water and Sanitation, aims to accelerate the delivery of
clean water and sanitation facilities to communities that do not have access to basic water services. It
provides funding for various projects, including the construction of new infrastructure and the
refurbishment and extension of existing water schemes. It has both direct and indirect components. In areas
 106

where municipalities have the capacity to implement projects themselves, funds are transferred through a
direct grant. In other areas, the Department of Water and Sanitation implements projects on behalf of
municipalities through an indirect grant. In 2018/19, the total indirect portion (R608 million) of this grant
will be allocated to projects under the bucket eradication programme. The programme funds the
eradication of bucket sanitation systems in formal residential areas. By the end of 2018/19, the Department
of Water and Sanitation expects to have eradicated all bucket sanitation systems that were in existence in
2014.
The direct component of this grant is reduced by R78 million in 2018/19, R88 million in 2019/20 and
R93 million in 2020/21, meaning that the implementation of some projects will be delayed. However, total
allocations for the direct component still amount to R11 billion over the medium term and grow at an
average annual rate of 5.2 per cent. Reductions to this grant will not impact water augmentation projects in
drought-affected municipalities. Over the MTEF period, the total allocation for the indirect portion of the
grant is R1.9 billion. This portion has not been reduced.

Regional bulk infrastructure grant

This grant supplements the financing of the social component of regional bulk water and sanitation
infrastructure. It targets projects that cut across several municipalities or large bulk projects within one
municipality. The grant funds the bulk infrastructure needed to provide reticulated water and sanitation
services to individual households. It may also be used to appoint service providers to carry out feasibility
studies, related planning or management studies for infrastructure projects. It has both direct and indirect
components. In areas where municipalities have the capacity to implement projects themselves, funds are
transferred through a direct grant. In other areas, the Department of Water and Sanitation implements
projects on behalf of municipalities through an indirect grant. A parallel programme, funded by the
Department of Water and Sanitation, also funds water boards for the construction of bulk infrastructure.
Though not part of the division of revenue, these projects still form part of the Department of Water and
6DQLWDWLRQ¶VODUJHUSURJUDPPHRIVXEVLGLVLQJWKHFRQVWUXFWLRQRIUHJLRQDOEXONLQIUDVWUXFWXUHIRUZDWHUDQG
sanitation.
In 2018/19, R440 million of the indirect portion of the grant will be ring-fenced for the bulk infrastructure
needed for the completion of the bucket eradication programme.
The direct component is reduced by R103 million in 2018/19, R109 million in 2019/20 and R115 million
in 2020/21. As a result, the implementation of some projects will be delayed. Reductions to this grant will
not impact water augmentation projects in drought-affected municipalities. The grant has a total allocation
of R15.3 billion over the medium term, consisting of R6.2 billion and R9.1 billion for the direct and
indirect components respectively.

Integrated national electrification programme grants

The aim of this grant is to provide capital subsidies to municipalities to electrify poor households and fund
bulk infrastructure to ensure the constant supply of electricity. Allocations are based on the backlog of un-
electrified households and administered by the Department of Energy. The grant only funds bulk
infrastructure that serves poor households. The national electrification programme has helped provide
91 per cent of all poor households with access to electricity, as reported in the 2016 Community Survey
(up from the 85 per cent reported in the 2011 Census). To sustain this progress, government will spend
R16.6 billion on the programme over the next three years. Of this, municipalities are allocated R6.3 billion
and Eskom is allocated R10.3 billion to spend on behalf of municipalities through an indirect grant.
The integrated national electrification programme (Eskom) grant allocation is reduced by R700 million in
2018/19, R750 million in 2019/20 and R791 million in 2020/21. In addition, the integrated national
electrification programme (municipal) grant is reduced by R300 million in 2018/19, R1.2 billion in
2019/20 and R1.3 billion in 2020/21, growing at an average annual rate of 2.5 per cent. The large
reductions to this grant in the outer two years reflect reversed additions made to the grant in the previous
 107

MTEF period. These grants are not determined using formulas, so the distribution of reductions is based on
which individual projects can be scaled back or delayed.

Rural roads asset management systems grant

The Department of Transport administers the rural roads asset management systems grant to improve
rural road infrastructure. The grant funds the collection of data on the condition and usage of rural roads in
line with the Road Infrastructure Strategic Framework for South Africa. This information guides
investments to maintain and improve these roads. District municipalities collect data on all the municipal
roads in their area, ensuring that infrastructure spending (from the municipal infrastructure grant and
elsewhere) can be properly planned to maximise impact. As data becomes available, incentives will be
introduced to ensure that municipalities use this information to plan road maintenance appropriately. The
municipal infrastructure grant stipulates that municipalities must use data from roads asset management
systems to prioritise investment in roads projects.
The Department of Transport will work with the municipal infrastructure grant administrators to ensure
that municipal roads projects are chosen, prioritised and approved using roads asset management systems
GDWDZKHUHYHUSRVVLEOH7KHJUDQW¶VEDVHOLQHLVUHGXFHGE\R6 million for each year over the medium term
and the grant is allocated a total of R341.9 million over the MTEF period.

Municipal disaster recovery grant

After the initial response to a disaster has been addressed, including through funding from the municipal
disaster relief grant discussed below, the repair of damaged municipal infrastructure is funded through the
municipal disaster recovery grant. In 2018/19, this grant is allocated R21 million for the repair of
municipal infrastructure in Merafong Local Municipality that has been damaged or made unsafe by
sinkholes. There are no allocations for this grant in the outer years of the MTEF period. However, if
further disasters occur that require recovery projects to be funded through this grant, additional allocations
may be made to it in future.

Capacity-building grants and other current transfers

Capacity-building grants KHOSWRGHYHORSPXQLFLSDOLWLHV¶PDQDJHPHQWSODQQLQJWHFKQLFDOEXGJHWLQJDQG
financial management skills. Other current transfers include the EPWP integrated grant for municipalities,
which promotes increased labour intensity in municipalities, and the municipal disaster relief grant. A
total of R6.9 billion is allocated to capacity-building grants and other current transfers to local government
over the medium term.
 108

Table W1.26 Capacity-building and other current grants to local government 1

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Outcome Adjusted Medium-term estimates
R million budget
Direct transfers 1 621 1 446 1 861 1 977 2 043 2 136 2 769
Local government financial 449 452 465 502 505 533 562
management
Municipal human settlements 300 100 ± ± ± ± ±
capacity
Expanded public works programme 595 588 664 691 693 742 783
integrated grant for municipalities
Infrastructure skills development 104 124 130 141 141 149 158
Energy efficiency and demand-side 137 178 186 203 215 227 240
Municipal demarcation transition ± 4 297 140 ± ± ±
Municipal restructuring grant ± ± ± ± ± ± 514
Municipal emergency housing grant ± ± ± ± 140 149 159
Municipal disaster relief 36 ± 118 300 349 335 354
Indirect transfers 252 251 19 103 115 122 128
Municipal systems improvement 252 251 19 103 115 122 128
Total 1 873 1 698 1 880 2 081 2 158 2 257 2 898
1. Excludes provisional allocations
Source: National Treasury

Local government financial management grant

The local government financial management grant, managed by the National Treasury, funds the
placement of financial management interns in municipalities and the modernisation of financial
management systems. This includes building in-house municipal capacity to implement multi-year
budgeting, linking integrated development plans to budgets, and producing quality and timely in-year and
annual reports. The grant supports municipalities in the implementation of the Municipal Finance
Management Act and provides funds for the implementation of the municipal standard chart of accounts.
The local government financial management grant baseline is reduced by R26.6 million in 2018/19,
R28 million in 2019/20 and R30 million in 2020/21. Total allocations amount to R1.6 billion over the
MTEF period and grow at an average annual rate of 3.8 per cent.

Infrastructure skills development grant

The infrastructure skills development grant develops capacity within municipalities by creating a
sustainable pool of young professionals with technical skills related to municipal services, such as water,
electricity and town planning. The grant places interns in municipalities so they can complete the
requirements of the relevant statutory council within their respective built environment fields. The interns
can be hired by any municipality at the end of their internship.
The JUDQW¶V baseline is reduced by R7.4 million in 2018/19, R7.9 million in 2019/20 and R8 million in
2020/21. Total allocations amount to R449 million over the medium term and grow at an average annual
rate of 6 per cent.

Municipal systems improvement grant

The municipal systems improvement grant funds a range of projects in municipalities in support of the
Back to Basics strategy, including helping municipalities set up adequate record management systems,
drawing up organograms for municipalities and reviewing their appropriateness relative to their assigned
functions, and assisting municipalities with revenue collection plans. From 2018/19, the grant also
supports intermediate cities to implement the Integrated Urban Development Framework and assists with
the completion of transitional work in municipalities affected by major boundary changes in 2016. The
 109

Department of Cooperative Governance implements the indirect grant. This grant has not been reduced,
with allocations of R115 million in 2018/19, R122 million in 2019/20 and R128 million in 2020/21.

EPWP integrated grant for municipalities

This grant promotes the use of labour-intensive methods in delivering municipal infrastructure and
services. It is allocated through a formula based on past performance, which creates an incentive for
municipalities to create more jobs. Based on a review of the allocation methodology, from 2018/19 the
categories for labour-intensity have been increased from three to seven to incentivise more municipalities
using labour-intensive methods. The formula is weighted to give larger allocations to rural municipalities.
7KHJUDQW¶VEDVHOLQHLVUHGXFHGE\55 million in 2018/19, R39 million in 2019/20 and R41 million in
2020/21. The impact of these reductions will be spread across municipalities in line with the JUDQW¶V
formula. The grant is allocated R2.2 billion over the MTEF period.

Energy efficiency and demand-side management grant

The energy efficiency and demand-side management grant funds selected municipalities to implement
energy-efficiency projects, with a focus on public lighting and energy-efficient municipal infrastructure. In
the 2018 MTEF period, the Department of Energy will monitor and verify grant-funded projects to ensure
greater consistency in the procurement of accredited verification services. The grant is allocated
R681.6 million over the medium term.

Municipal disaster relief grant

The municipal disaster relief grant is administered by the National Disaster Management Centre in the
Department of Cooperative Governance as an unallocated grant to local government. The centre is able to
disburse disaster-response funds immediately, without the need for the transfers to be gazetted first. The
grant supplements the resources local government would have already used in responding to disasters. To
ensure that sufficient funds are available in the event of disasters, section 21 of the Division of Revenue
Bill allows for funds allocated to the provincial disaster relief grant to be transferred to municipalities if
funds in the municipal grant have already been exhausted, and vice versa. The bill also allows for more
than one transfer to be made to areas affected by disasters, so that initial emergency aid can be provided
before a full assessment of damages and costs is conducted. Over the MTEF period, R1 billion is available
for disbursement through this grant. To ensure that sufficient funds are available for disaster relief, clause
20(6) of the Division of Revenue Bill allows funds from other conditional grants to be reallocated for this
SXUSRVHVXEMHFWWRWKH1DWLRQDO7UHDVXU\¶VDSSURYDO

Municipal emergency housing grant

A new municipal emergency housing grant, to be administered by the Department of Human Settlements,
is introduced in 2018/19. These funds will enable the department to rapidly respond to emergencies by
providing temporary housing in line with the Emergency Housing Programme. However, the grant is
limited to funding emergency housing following the immediate aftermath of a disaster, and not the other
emergency situations listed in the Emergency Housing Programme.
As emergency housing was previously meant to have been budgeted for in the business plans for the
human settlements development grant, the funding for the municipal emergency housing grant will be
reprioritised out of that grant. The new grant is allocated R140 million in 2018/19, R149 million in
2019/20 and R159 million in 2020/21.

Part 6: Future work on provincial and municipal fiscal frameworks

The fiscal frameworks for provincial and local government encompass all their revenue sources and
expenditure responsibilities. As underlying social and economic trends evolve and the assignment of
intergovernmental functions change, so must the fiscal frameworks. The National Treasury, together with
relevant stakeholders, conducts continuous reviews to ensure that provinces and municipalities have an
 110

appropriate balance of available revenues and expenditure responsibilities, while taking account of the
resources available and the principles of predictability and stability.
This part of the annexure describes the main areas of work to be undertaken during 2018/19 as part of the
ongoing review and refinement of the intergovernmental fiscal framework. Provinces and municipalities
will be consulted on all proposed changes to the fiscal frameworks.

Review of the provincial equitable share formula

The Constitution stipulates that provinces are entitled to a share of nationally raised revenue to deliver on
their mandates. Provincial funds are allocated using a formula that considers the spread of the burden of
service delivery across provinces. The provincial equitable share formula contains weighted elements that
reflect government priorities and incorporates elements to redress inequality and poverty across provinces.
The periodic review of the formula to assess its continued appropriateness and equity continues in 2018.
The Technical Committee on Finance and the Budget Council is consulted as part of this work.
Over the course of the year, work on the review of the equitable share will intensify. Now that the new
data-collection methodology for education is part of the formula, the next step is to interrogate the
FRPSRQHQW¶Vpolicy alignment with JRYHUQPHQW¶Veducation policy vision. Work on the disparity in costs
in the delivery of services across the country will also continue, led by the FFC. All affected stakeholders
will be invited to a colloquium to better understand these disparities. The National Treasury will work with
the national Department of Health and Statistics South Africa to fully understand health information and
the delivery of services in the health sector.

National health insurance policy work

Government is working to increase life expectancy for South Africans from 62.5 years in 2014 to at least
70 years by 2030 through interventions such as the continued expansion of antiretroviral therapy and the
implementation of national health insurance. Following extensive public consultation, government adopted
the National Health Insurance White Paper in June 2017. Since then, the national Department of Health
and the National Treasury have been working on the draft National Health Insurance Bill, which, when
promulgated, will provide the legal foundation for national coverage and establish the National Health
Insurance Fund. Over the course of the year, the two departments will focus on how to pilot the provision
and delivery of a prioritised set of health services. This will include developing and testing payment
mechanisms that prescribe, for a specified set of primary health services, a predetermined minimum price
for health service providers to serve a certain number of people each year. In addition, efforts will focus on
scaling up work initiated by the Western Cape Department of Health to develop an information system that
classifies hospital cases into categories of diagnosis, which will assist in monitoring costs.

The role of provinces in promoting economic development

Provinces and municipalities play a crucial role in advancing the economic development of their respective
precincts. Fully functional, well-equipped schools produce a vibrant and employable workforce. Smarter
KHDOWK V\VWHPV GHYHORS DQG PDLQWDLQ WKH KHDOWK RI WKH ZRUNIRUFH 3URYLQFLDO DJULFXOWXUH GHSDUWPHQWV¶
support to farmers can stimulate rural development. The provision of provincial and municipal roads and
public transport services ensures mobility for goods and workers, while basic municipal services such as
water, electricity and refuse removal, as well as business licencing and environmental health functions,
enable businesses to operate and grow. Well-managed procurement can maximise developmental impact
without compromising efficiencies.
All three spheres of government must work with businesses and other relevant stakeholders to provide an
enabling environment for faster and more inclusive economic growth. In 2018, further research into the
role of special economic and industrial development zones will be conducted to understand their effect on
development in provinces, and why their impact has stalled.
 111

Improving intergovernmental coordination on infrastructure investment

3XEOLFLQIUDVWUXFWXUHLQYHVWPHQWVFDQSOD\DPDMRUUROHLQWUDQVIRUPLQJ6RXWK$IULFD¶VVSDWLDOGHYHORSPHQW
patterns. This requires a significant improvement in intergovernmental coordination in planning and
budgeting for infrastructure. In particular, provinces need to ensure that their investments in schools, roads,
health facilities and housing are made in locations that align with the spatial development plans of
municipalities.
To facilitate improved planning alignment with municipalities, the guidelines for provincial infrastructure
require that municipalities are consulted and agree on the location and bulk services requirements of all
provincial infrastructure projects. Provincial treasuries are also to include municipalities in their
infrastructure medium-term expenditure committee meetings when selecting projects to be included in the
next budget. The National Treasury will continue to work with provincial treasuries throughout 2018 to
improve infrastructure planning in provinces.

Local government transfers

The system of transfers to local government is continuously being reviewed and refined to improve
spending efficiency and the impact achieved through these transfers. Over the period ahead, the National
Treasury will continue to examine the funding of, and budgeting by, rural municipalities and how the
transfers they rely on can be structured to improve their sustainability and performance. At the same time,
urban municipalities will be encouraged to further increase their reliance on own-revenue sources to fund
their budgets (including borrowing to fund infrastructure investments, especially in light of the reductions
to transfers announced in the 2018 Budget).
As part of the ongoing review of local government infrastructure grants, the National Treasury, the
Department of Cooperative Governance, SALGA and the FFC will work closely with the Department of
Human Settlements to explore how informal settlement upgrades can be improved.

A new integrated urban development grant

The Department of Cooperative Governance is leading the design of a new integrated urban development
grant for urban local municipalities. Initial proposals have been developed and consulted on with
stakeholders. The new grant will be introduced in 2019/20. Eligible municipalities will be invited to apply
for the grant during 2018. The application process is set out in clause 27(5) of the 2018 Division of
Revenue Bill.
This new grant will extend some of the fiscal reforms already implemented in metropolitan municipalities
to non-metropolitan cities. This aligns with the policy set out in the Integrated Urban Development
Framework approved by Cabinet in April 2016. The framework calls for a radically different, more
integrated, approach to managing urbanisation.

Principles for the new integrated urban development grant

x Municipalities take the lead in dealing with the urban challenge. Municipalities must have discretion to
identify local priorities, with due consideration to provincial and national priorities, and allocate
investment accordingly.
x Municipal differences continue to be acknowledged. Municipalities differ in terms of their context and
the Integrated Urban Development Framework has been developed to respond to the needs of urban
municipalities. Recognition and incentives must be provided to municipalities able to perform, and
support provided to improve the performance of those who do not yet qualify for recognition.
x Municipalities invest to unlock growth. Research by the FFC found that capital spending by
municipalities, particularly on core services such as water, sanitation and electricity, improves
economic growth. This positive effect is enhanced if the resulting assets are well managed. As grants
remain targeted at poor households, unlocking investment in economic infrastructure requires non-grant
sources of finance.
 112

x Infrastructure investment is made with due consideration to spatial form. Too often, infrastructure
investment has entrenched undesirable apartheid spatial forms. To prevent this, plans for investment in
new infrastructure should be aligned with well-planned spatial development frameworks.
x Municipalities are held accountable for outcomes. Municipalities will have discretion to make choices
about the allocation of infrastructure investment. With this increased discretion comes strong
accountability for what is achieved through that investment.
x The assets financed through a grant are well managed. Significant new infrastructure investments have
been made over the past 20 years. However, in too many cases this infrastructure has not been well
managed, with inadequate investments in renewal and maintenance.

Design of the new integrated urban development grant

There will be minimum conditions for accessing the grant. As previously discussed, the new grant will
place more discretion in the hands of local municipalities. The minimum conditions for entry will ensure a
degree of certainty that recipient municipalities have adequate oversight, their reporting can be trusted and
they are able to manage their existing capital programmes. It is proposed that minimum conditions cover
the following areas:
x Management stability
x Audit findings
x Unauthorised, irregular, fruitless and wasteful expenditure
x Capital expenditure
x Reporting in terms of the Municipal Finance Management Act.
To qualify, an eligible municipality will need to apply for the grant and demonstrate compliance with the
prescribed minimum conditions. Approved municipalities will then receive support in developing a capital
expenditure framework and associated three-year capital programme.
Not every urban, non-metropolitan municipality will qualify for the grant in 2018/19. Some municipalities
may take time to meet the qualification criteria, while others may choose not to apply because they are
comfortable with their existing grant structures.
The new grant will include a support programme to help urban municipalities comply with the minimum
conditions of the grant and improve performance. This support programme will also be extended to urban
municipalities not participating in the grant.
The integrated urban development grant will initially be funded through shifts of allocations from the
municipal infrastructure grant. Over time, other grants may be consolidated into the new grant.
Municipalities receiving the grant will therefore not receive significantly different infrastructure grant
allocations. The main benefit of the grant is its revised structure and rules that enable more integrated
development, not increased allocations.
The new integrated urban development grant is intended to ensure that municipalities give poor
households sustainable access to the municipal infrastructure they need in spatially transformed cities.
Based on its review of local government infrastructure grants, government and its partners aim to
consolidate such grants in the long term. This could be achieved by progressively combining most local
government infrastructure grants into the integrated urban development grant for those municipalities that
qualify. This will enable these cities to coordinate their priorities across infrastructure sectors and shift
towards a more programmatic and outcome-driven process.
Under the integrated urban development grant, municipalities will no longer require approval for
individual projects to be funded through the grant. Monitoring will be against a three-year capital
programme that is aligned with a 10-year capital expenditure framework. The framework must in turn
 113

VKRZDOLJQPHQWZLWKWKHPXQLFLSDOLW\¶Vspatial development framework. This will require a shift to a more

programmatic monitoring system, rather than a project-based system.
The grant will have an incentive component, which will use performance indicators to reward good
performance across the following three areas:
x The extent to which municipalities are making use of non-grant finance
x Sound asset management practices
x Spatial transformation.
The performance incentive will be funded through the reprioritisation of 1 per cent of the municipal
infrastructure grant. In the outer years of the 2018 MTEF period, these funds are shown as unallocated in
the municipal infrastructure grant.

A new municipal restructuring grant

The 2017 Medium Term Budget Policy Statement announced a new funding mechanism to support
recovery plans for municipalities that face a financial crisis, as provided for in section 139(5) of the
Constitution. The National Treasury will consult with national departments, provinces and SALGA on the
design of the grant and its coordination with other capacity-building programmes during 2018. The grant is
intended to be a short-term intervention that will fund the turnaround of struggling municipalities. It will
help identified municipalities that are in financial distress, but have demonstrated a commitment to
implementing the necessary reforms. If needed, the intervention powers outlined in section 139 of the
Constitution may also be used as part of the broader approach to turning around these municipalities.
The municipal restructuring grant will be made available within the parameters of the existing legal
framework and will not provide bailouts to municipalities. It will fund the implementation of specific
outputs in support of a financial recovery plan approved by a municipal council. The council must
demonstrate political buy-in by adopting such a plan, and the municipality must also commit its own
resources to implementing parts of the plan. Municipalities will be expected to demonstrate commitment to
implementing the financial recovery plan by:
x Containing employee-related costs and other rapidly escalating categories of expenditure items
x Limiting non-priority spending
x Increasing revenue collection
x Adopting funded budgets that generate surpluses.

A provisional allocation of R300 million in 2019/20 has been set aside for this proposed grant. This
allocation will be confirmed or cancelled as part of the 2019 Budget process, depending on progress made
in planning for the grant (including the willingness of municipalities to implement the necessary reforms)
and the availability of resources. The grant is allocated R514 million in 2020/21.

Reforms to local government own-revenue sources

Municipalities, especially cities and other large urban municipalities play a critical role in boosting
economic growth and providing an enabling environment for job creation by providing well-maintained
and functioning infrastructure services. However, these municipalities are finding it increasingly difficult
to meet the demand for housing, urban services and infrastructure due to rapid urbanisation.
Given the extent of the infrastructure needs in these municipalities, the National Treasury is exploring how
cities and large urban municipalities can use a broader package of infrastructure financing sources to meet
their developmental mandate. These activities include, among others, the review of the municipal
borrowing policy framework and setting rules for levying development charges.
 114

Development charges
Despite their potential as an alternative option for financing infrastructure, municipalities have not fully
used development charges due to uncertainty surrounding the regulatory frameworks. Development
charges are once-off infrastructure access fees imposed on a land owner as a condition of approving a land
development that will substantially increase the use of or need for municipal infrastructure engineering
services. They are based on the concept that urban growth and expanded land use creates the need for
additional infrastructure services, therefore the developer should pay the incidence costs. To deal with the
UHJXODWRU\ IUDPHZRUN¶V challenges, the National Treasury is amending the Municipal Fiscal Powers and
Functions Act to incorporate the regulation of development charges.

Municipal borrowing
Municipal borrowing policy has been in place since 1999. Over the years, the National Treasury has
enhanced its capacity to monitor municipal borrowing trends, while creating an enabling environment and
developing strategies that will help municipalities to attract creditors. However, there is scope for policy
adjustments to support expanded municipal borrowing. The National Treasury is exploring ways to enable
the extensive participation of financial institutions and the broad market in financing municipal
infrastructure. Areas of possible reform include the roles of multilateral development banks and
development finance institutions in urban infrastructure financing, pooled finance for local government,
and project finance instruments. These reforms target creditworthy municipalities, because a key principle
that underpins the municipal borrowing framework is that there will be no national government guarantees.
The National Treasury publishes a quarterly Municipal Borrowing Bulletin, which is available at
www.mfma.treasury.gov.za
 115

ANNEXURE W2:

FRAMEWORKS FOR CONDITIONAL

GRANTS TO PROVINCES
 116

Annexure W2: Frameworks for Conditional

Grants to Provinces

Detailed frameworks on Schedule 4, Part A; Schedule 5, Part A;

Schedule 6, Part A; and Schedule 7, Part A grants to provinces

Introduction
This annexure provides a brief description of the framework for the grants set out in
Schedule 4, Part A; Schedule 5, Part A; Schedule 6, Part A; and Schedule 7, Part A of the
2018 Division of Revenue Bill. The following are key areas considered for each grant:
x Strategic goal and purpose of the grant
x Outcome statements and outputs of the grant
x Priority outcome(s) of government that the grant primarily contributes to
x Conditions of the grant (additional to what is required in the Bill)
x Criteria for allocation between provinces
x Rationale for funding through a conditional grant
x Past performance
x The projected life of the grant
x 2018 MTEF allocations
x The payment schedule
x Responsibilities of transferring national department and receiving provincial departments
x Process for approval of business plans for 2019/20

The attached frameworks are not part of the Division of Revenue Bill, but are published in
order to provide more information on each grant to parliament, legislatures, municipal
councils, officials in all three spheres of government and the public. Once the 2018 Division
of Revenue Bill is enacted, these frameworks will be gazetted in terms of the Act.
The financial statements and annual reports for 2018/19 will report against the Division of
Revenue Act, Division of Revenue Amendment Act and their schedules, and the grant
frameworks as gazetted in terms of the Act. Such reports must cover both financial and non-
financial performance, focusing on the outputs achieved.
 117

AGRICULTURE, FORESTRY AND FISHERIES GRANTS

Comprehensive Agricultural Support Programme Grant

Transferring department x Agriculture, Forestry and Fisheries (Vote 24)
Grant schedule x Schedule 5, Part A
Strategic goal x To create a favourable and supportive agricultural services environment for the farming community, in
particular subsistence, smallholder and black commercial farmers within strategically identified grain,
livestock and horticulture production areas
Grant purpose x To provide effective agricultural support services, promote and facilitate agricultural development by
targeting beneficiaries of land reform, restitution and redistribution, and other black producers who
have acquired land through private means and are engaged in value-adding enterprises domestically, or
involved in export
x To address damage to infrastructure caused by floods
Outcome statements x Broadened access to agricultural support for black subsistence, smallholder and commercial farmers
x Increased number of sustainable and profitable black producers in horticulture, grains, livestock, and
aquaculture value chains
x Improved farming efficiency of beneficiaries of the Comprehensive Agriculture Support Programme
(CASP)
x Improved systems required for the maintenance of a Foot and Mouth Disease free status as prescribed
by the World Organisation for Animal Health
x Increased wealth creation, and sustainable employment in rural areas
x Increased access to markets by beneficiaries of CASP
x Improved household and national food security
x Reliable and accurate agricultural information available for management decision making
Outputs x Farmers supported per category and per commodity (subsistence, smallholder and commercial)
x Number of certified beneficiaries of CASP South African Good Agricultural Practice
x Number of jobs created
x Youth, women and farmers with disabilities supported through CASP
x Unemployed graduates placed on commercial farms
x On and off farm infrastructure provided and repaired, including agro-processing infrastructure
x Hectares of land under agricultural production (crop and livestock)
x Yields per unit area
x Beneficiaries of CASP trained on farming methods or opportunities along the value chain
x Beneficiaries of CASP accessing markets
x Animal identification and movement tracking system for cattle in the Foot and Mouth Disease
controlled areas of Limpopo, Mpumalanga and KwaZulu-Natal provided and maintained
x Physical boundary between the free zone and the protection zone, especially in Limpopo and KwaZulu-
Natal provided and maintained
x Number of animals vaccinated for Foot and Mouth Disease in Limpopo and Mpumalanga
x Number of extension personnel recruited and maintained in the system
x Number of extension officers deployed to commodity organisations
x Agriculture Information Management System (AIMS) implemented in all 9 provinces
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant x Outcome 5: A skilled and capable workforce to support an inclusive growth path
primarily contributes to x Outcome 7: Comprehensive rural development and land reform
Details contained in the x Outcome indicators
business plan x Outputs indicators
x Inputs
x Key activities
x Monitoring framework
x Risks and mitigation strategies
Conditions x The funding for this grant can be spent using the following prescription in support of Operation Phakisa
on Agriculture, Land Reform and Rural Development
x At most 20 per cent of project allocation to support Fetsa Tlala initiatives in partnership with the
development arm of commodity organisations (planting and/or acquisition of superior breeding
animals)
x At most 50 per cent of project allocation to support grain, livestock and horticultural production areas:
o at least 20 per cent of which should be focused on black commercial farmers in partnership with the
relevant commodity organisation
o at least 30 per cent of which should be focused on commercialisation of smallholder farmers in
partnership with the relevant commodity organisations
x Farmers supported must be linked to but not limited to black commodity organisations. The province
should have formal partnership agreements with these commodity organisations in supporting farmers
(joint support, joint funding and joint implementation as necessary)
x In cases where farmers requiring the support are outside a commodity organisation agreement, their
proposals must be approved by established committees and authorities
x All assisted farmers should be listed or registered in the provincial and national farmer registers
 118

Comprehensive Agricultural Support Programme Grant

x At most 5 per cent of project allocation on Agriculture Information Management System
x At least 10 per cent of project allocation on market access and development
x At least 6 per cent of project allocation on training and capacity building of farmers, and 4 per cent can
be used for mentorship programme
x At least 1000 unemployed agricultural graduates should be placed nationally as follows:
o Gauteng and Northern Cape must employ at least 80 graduates
o the remainder of the provinces must employ at least 120 graduates
o all graduates must be employed at a rate of R87 000 per annum
x The Department of Agriculture, Forestry and Fisheries (DAFF) will reprioritise the allocated funds on
the following basis:
o in the event of poor-spending on the part of a province where reasons for poor spending is as a
result of poor planning or failure by service provider to meet its contractual obligation
o in the event of a disaster that affects the implementation of approved plans
x A central AIMS to be implemented by eight provinces (Western Cape Province is already implementing
the system) to ensure a harmonised system that integrates and collates information to the national and
provincial level (vice versa). Eastern Cape, Free State, Gauteng, Limpopo and North West have made
their full contributions of R9 million each towards the implementation of AIMS. The following
contribution per province will be made to the National Agricultural Marketing Council (coordinating
the development of the system) for the implementation of AIMS:
o KwaZulu-Natal: R9 million
o Mpumalanga: R9 million
o Northern Cape: R4.5 million (R4.5 million contribution already made)
x Provinces must adhere to the CASP standard operating procedure framework when implementing
projects
x Provincial departments are to confirm human resources capacity to implement CASP business plan by
28 March 2018
x All receiving departments must abide by the Public Finance Management Act, Treasury Regulations
and the 2018 Division of Revenue Act when executing projects as well as for reporting purposes
x Funds will be transferred as per the disbursement schedule approved by National Treasury
x Provinces to inform the transferring officer of any changes from plans and allocations approved by the
transferring officer of Agriculture, Forestry and Fisheries, within 7 days of such change, and such
changes must be approved by the transferring officer before they are implemented
x Provincial business plans must be signed off by the heads of the provincial agriculture departments in
collaboration with Chief Financial Officers or their representatives, and must be co-signed by the Heads
of provincial treasuries
x Signed business plan must be submitted to the DAFF for approval
x Allocation for agricultural colleges must only be used to revitalise infrastructure and equipment at these
colleges as determined in the master plan
x Allocations for natural disasters must only be used for the repair of infrastructure damaged by natural
disasters declared in the Government Gazette and as assessed by the National Disaster Management
Centre (NDMC). The allocations for 2018/19, for infrastructure damaged by floods are as follows:
o Limpopo: R6.6 million
o Mpumalanga: R6.9 million
o Western Cape: R17.5 million
x The repairs to the 2010/11 flood damaged diversion walls along the Orange River in the Northern Cape
are incomplete. The funds that were allocated to complete this activity have been recovered from the
allocations to provinces that received them after they were diverted to project support in 2015/16. The
allocation for flood damage to Northern Cape in 2018/19 is R124.9 million
x Business plans for the allocated disaster funds must be in line with the post disaster verification
assessment reports, and must be submitted to the NDMC and DAFF for approval
x Quarterly performance reports on disaster allocations must be submitted to the NDMC and DAFF
Allocation criteria x The formula used to allocate funds is a weighted average of the following variables: agricultural land
area, households involved in agriculture (General Household Survey 2016 report), previous CASP
performance and current benchmarks on production and national policy imperatives
Reasons not incorporated in x Agriculture is identified as a game changer and investment in agriculture must be guided under strict
equitable share conditions to achieve aspirations of the National Development Plan
x The responsibility for the programme rests with DAFF while provincial departments of agriculture are
implementing agents
Past performance 2016/17 audited financial outcomes
x Allocated and transferred R1.6 billion to provinces, of which R1.6 billion (98.8 per cent) was spent by
the end of the national financial year
2016/17 service delivery performance
x 25 958 beneficiaries were supported from 500 implemented projects, with 392 projects completed at
 119

Comprehensive Agricultural Support Programme Grant

the end of the financial year
x 21 Agro-processing infrastructure projects initiated
x 7 894 jobs created
x 23 projects benefitted from South African Good Agricultural Practice certification programme
x 70 per cent of supported smallholder farmers had access to markets
x 26 378 farmers trained in targeted training programmes
x A total of 69 extension officers were recruited nationally, and 816 maintained in the system
x A total of 178 extension officers registered for qualification upgrading
x 10 agricultural colleges upgrading infrastructure, ongoing
x 103 farmers benefited from repair of infrastructure damaged by flood disasters (102 agricultural
infrastructure and one soil rehabilitation)
x 452 jobs created through implementation of flood disaster scheme
Projected life x Grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R1.8 billion; 2019/20: R1.9 billion and 2020/21: R2 billion
Payment schedule x Four instalments: 20 April 2018; 24 August 2018; 26 October 2018 and 25 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Agree on outputs and targets with provincial departments in line with grant objectives for 2018/19
receiving officer x Provide the guidelines and criteria for the development, approval and implementation of business plans
x Provide template for project registration and reporting
x Monitor monthly financial expenditure by provinces and conduct sampled project site visits quarterly
x Submit monthly financial reports to National Treasury 20 days after the end of the month
x Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter
x Submit annual evaluation of performance report to National Treasury within four months after the end
of the financial year
x Oversee and monitor implementation of the grant during Ministerial Technical Committee (MinTech)
on agriculture and quarterly review meetings
Responsibilities of provincial departments
x Provinces to adhere to the conditions of this framework and the 2018 Division of Revenue Act (DoRA)
x Provinces to submit detailed project list as per the Department of Agriculture, Forestry and )LVKHULHV¶
project list template
x Provinces to submit monthly financial reports 15 days after the end of each month, and quarterly non-
financial reports 30 days after the end of each quarter, and annual evaluation reports two months after
the end of the financial year on the progress and achievements of the programme
x Provinces to implement the CASP business plans as approved
x All receiving departments must abide by the PFMA, Treasury Regulations and the 2018 DoRA when
executing projects as well as for reporting purposes
x Provinces to inform the transferring officer of any changes from plans and allocations approved by the
transferring officer, within 7 days of such a change before they are implemented
x Assign and delegate officials to manage and monitor the implementation of the programme before
April 2018
x Keep record of projects supported and a farmer register
x Monitor project implementation on a quarterly basis and evaluate the impact of projects in achieving
CASP goals
x Submit quarterly performance reports on disaster allocations to the relevant Provincial Disaster
Management Centre and DAFF, within 20 days after the end of each quarter
x Submit quarterly project performance reports to the DAFF
x Provinces to adhere to the approved CASP standard operating procedure framework
Process for approval of the x Provide provincial departments with business plan format, guidelines, criteria and outputs as prescribed
2019/20 business plans by National Treasury by 30 May 2018
x Submission of provincial CASP business plans by provinces on 1 October 2018
x Engagement with provinces (pre-national assessment panel) on submitted business plans during
October/November 2018 prior to final national assessment panel meeting
x Evaluation and recommendation of business plans by national assessment panel between
November 2018 and February 2019
x Send funding agreements to provinces by February/March 2019 to be signed by Heads of Departmets,
Chief Financial Officers, and CASP coordinators
x Approval of business plans by the transferring officer before 29 March 2019
x Inform provinces of approval of the business plans in March or April 2019
x Approval by the transferring officer regarding 2019/20 business planning process compliance during
April 2019, and send to National Treasury by end April 2019
 120

Ilima/Letsema Grant
Transferring department x Agriculture, Forestry and Fisheries (Vote 24)
Grant schedule x Schedule 5, Part A
Strategic goal x To reduce poverty through increased food production initiatives
Grant purpose x To assist vulnerable South African farming communities to achieve an increase in agricultural
production and invest in infrastructure that unlocks agricultural production within strategically identified
grain, livestock and horticulture production areas
Outcome statements x Increased agricultural production of grains, livestock and horticulture at both household and national
level
x Improved household and national food security
x Improved farm income
x Maximised job opportunities
x Reduced poverty
x Rehabilitated and expanded irrigation schemes
Outputs x Vulnerability assessment surveys conducted in nine provinces
x Land under agricultural production (grains, horticulture and livestock)
x Yields per unit area
x Superior breeding animals acquired and distributed to farmers
x Jobs created
x Beneficiaries/farmers supported by the grant per category
x Hectares of rehabilitated and expanded irrigation schemes
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant x Outcome 7: Comprehensive rural development and land reform
primarily contributes to
Details contained in the x Outcome indicators
business plan x Outputs indicators
x Inputs
x Key activities
x Monitoring framework
x Risks and mitigation strategies
Conditions x 62 per cent of Ilima/Letsema grant funds should be allocated to support food production (crop and
livestock production) in support of the Fetsa Tlala initiatives
x At most 30 per cent of Ilima/Letsema funds to be used for rehabilitation of irrigation schemes in
Eastern Cape, Free State, Northern Cape, North West, KwaZulu-Natal and Western Cape provinces
x At least 8 per cent made available for the South African Vulnerability Assessments Committee to be
paid by provinces to Statistics South Africa by 29 June 2018 as follows:
o Eastern Cape: R8.6 million
o Free State: R3.5 million
o Gauteng: R1.7 million
o KwaZulu-Natal: R3.5 million
o Limpopo: R6.2 million
o Mpumalanga: R5.3 million
o Northern Cape: R2.8 million
o North West: R4.6 million
o Western Cape: R9.3 million
x Only vulnerable households and subsistence farmers should be supported with inputs and mechanisation
by this grant
x Partnerships with black commodity organisations should be prioritised for joint support, joint funding
and joint implementation
x Provincial departments to confirm human resources capacity to implement Ilima/Letsema business plans
on or before 28 March 2018
x All receiving departments must abide by the Public Finance Management Act, Treasury Regulations and
the 2018 Division of Revenue Act when executing projects as well as for reporting purposes
x All assisted farmers should be listed in the provincial and national farm registers
x Provinces to inform the transferring officer of any changes from plans and allocations approved by the
national Department of Agriculture, Forestry and Fisheries (DAFF), within seven days of such change
and such changes must be approved by the transferring officer before they are implemented
x Provincial business plans must be signed off by the Head of Department of the provincial agriculture
department in collaboration with the Chief Financial Officer or their representative, and co-signed by
Heads of provincial treasuries
x Signed business plans must be submitted to the DAFF for approval
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Ilima/Letsema Grant
Allocation criteria x The formula used to allocate funds is a weighted average of the following variables: agricultural land
available, previous homeland areas, households involved in agriculture (General Household Survey
2016), food insecure areas and national priority areas targeted for increased food production, previous
Ilima/Letsema performance
Reasons not incorporated in x The funding originated with the special poverty allocations made by national government for a specific
equitable share purpose and requires tight conditionality to achieve the national goal
x Agriculture is identified as a game changer and investment in agriculture must be guided under strict
conditions to achieve the aspirations of the National Development Plan
x The responsibility for the programme rests with the DAFF while provincial departments of agriculture
are implementing agents
Past performance 2016/17 audited financial outcomes
x Allocated and transferred R491 million, of which R488 million (99.2 per cent) was spent by the end of
the national financial year
2016/17 service delivery performance
x 13 503 jobs were created
x 30 530 subsistence farmers supported
x 19 168 smallholder farmers supported
x 2 985 black commercial farmers supported
x 68 398 households were supported with starter packs and production inputs
x 282 schools were assisted to establish food gardens
x 1 883 community food gardens were established
x 214 952 beneficiaries were supported by the programme
x 130 954 hectares of land planted
x Between 3 to 7 tons per hectare of maize produced
x Vaalharts and Makhathini irrigation schemes were revitalised
Projected life x Grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R552 million; 2019/20: R583 million and 2020/21: R615 million
Payment schedule x Four instalments: 20 April 2018; 24 August 2018; 26 October 2018 and 25 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Agree on outputs and targets with provincial departments in line with grant objectives for 2018/19
receiving officer x Provide guidelines and criteria for the development and approval of business plans
x Provide template for project registration and reporting
x Monitor monthly financial expenditure by provinces and conduct sampled project site visits quarterly
x Submit monthly financial reports to National Treasury 20 days after the end of the month
x Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter
x Submit annual evaluation of performance report to National Treasury within four months after the end
of the financial year
x Oversee and monitor implementation of the grant during Ministerial Technical Committee (MinTech) on
Agriculture and quarterly review meetings
Responsibilities of provincial departments
x Provinces to adhere to the conditions of this framework and 2018 DoRA
x Provinces to submit detailed project list as per the DAFF project list template
x Provinces must submit monthly financial reports to DAFF 15 days after the end of each month, and
quarterly non-financial reports 30 days after the end of each quarter, and annual evaluation report two
months after the end of the financial year on the progress and achievements of the programme
x Provinces to implement the Ilima/Letsema business plans as approved
x All receiving departments must abide by the Public Finance Management Act, Treasury Regulations and
the 2018 DoRA when executing projects as well as for reporting purposes
x Provinces to inform the transferring officer of any changes from plans and allocations approved by the
transferring officer, within seven days of such a change, and such changes must be approved by the
transferring officer before they are implemented
x Assign and delegate officials to manage and monitor the implementation of the programme before
April 2018
x Keep records of projects supported and a farmers register
x Monitor project implementation on quarterly basis and evaluate the impact of projects in achieving
Ilima/Letsema goals
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Ilima/Letsema Grant
Process for approval of the x Provide provincial departments with business plan format, guidelines, criteria and outputs as prescribed
2019/20 business plans by National Treasury by 31 May 2018
x Submission of provincial Ilima/letsema business plans by provinces on 28 September 2018
x Engagement with provinces at the pre-national assessment panel on submitted business plans during
October/November 2018 prior to final national assessment panel meeting
x Evaluation and recommendation of business plans by national assessment panel between
November 2018 and February 2019
x Send funding agreements to provinces by February/March 2019 to be signed by Heads of Department,
Chief Financial Officers, and Ilima/Letsema coordinators
x Approval of business plans by the transferring officer before 29 March 2019
x Inform provinces of approval of the business plans by March or April 2019
x Approval by the transferring officer regarding 2019/20 business planning process compliance during
April 2019, and send to National Treasury by end April 2019
 123

Land Care Programme Grant: Poverty Relief and Infrastructure Development

Transferring department x Agriculture, Forestry and Fisheries (Vote 24)
Grant schedule x Schedule 5, Part A
Strategic goal x To optimise productivity and sustainability of natural resources leading to greater productivity, food
security, job creation and better quality of life for all
Grant purpose x To promote sustainable use and management of natural resources by engaging in community based
initiatives that support the pillars of sustainability (social, economic and environmental), leading to
greater productivity, food security, job creation and better well-being for all
Outcome statements x Improved veld carrying capacity and livestock productivity
x Improved production potential of arable land leading to increased yield
x ,PSURYHGTXDQWLW\DQGTXDOLW\RI6RXWK$IULFD¶V water resources through maintenance and rehabilitation
in line with the water care focus area within the Land Care programme
x Improved youth participation in the agricultural sector and intergenerational transfer of skills
x Improved custodianship and stewardship of natural agricultural resources through community based
initiatives by all land users
x Improved livelihoods of rural communities within the ambit of the green economy
x Improved partnerships with private, public and community sectors
x Improved knowledge and skills base of participants for sustainable use and management of natural
resources
x Enhanced ecosystem services for current and future generations
Outputs x Hectares of rangeland protected and rehabilitated
x Hectares of arable land protected and rehabilitated
x Hectares of land under Conservation Agriculture
x Number of Junior Care participants involved in the programme
x Number of hectares of land where water resources are protected and rehabilitated
x Number of capacity building initiatives conducted for Junior Care
x Number of capacity building initiatives conducted for land carers
x Number of awareness campaigns conducted and attended by land carers
x Hectares of land where weeds and invader plants are under control
x Number of kilometres of fence erected
x Number of green jobs created expressed as full time equivalents (FTEs)
x Number of Land Care committees established
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant x Outcome 7: Comprehensive rural development and land reform
primarily contributes to x Outcome 10: Protect and enhance our environmental assets and natural resources
Details contained in the x Outcome indicators
business plan x Outputs indicators
x Inputs
x Cash flow projections and statement of work
x Key activities/implementation plan
x Monitoring and evaluation
x Risk and mitigation
x Exit strategy
Conditions x Provinces must confirm capacity to implement projects and operational funding before funds can be
transferred
x 3URYLQFLDO GHSDUWPHQWV¶ annual evaluations for 2018/19 must be submitted using an approved template
that clearly indicates measurable objectives and performance targets as per the business plans approved
by the national Department of Agriculture, Forestry and Fisheries (DAFF)
x The impact (before and after) of the Land Care programme should also be quantified during initiation,
implementation and handing over phases of the projects
x Provinces should report their financial performance per project 15 days after the end of each month in
compliance with the 2018 Division of Revenue Act (DoRA)
x Provinces should report on the number of jobs created 15 days after the end of each month. The report
should, amongst other requirements, indicate for each participant their name; surname, identity number,
gender, project name, wage and duration of employment. The number of jobs created should further be
reported on the Expanded Public Works Programme (EPWP) reporting system
x Projects should adhere to the reporting dates as stipulated in the 2018 DoRA, and furthermore adhere to
the agreed dates as approved by the natural resource management working group (NRMWG)
x Provinces should submit their portfolio of evidence (acknowledgement letters, project maps etc.) that is in
line with their quarterly and monthly reports. The evidence should be submitted together with the
quarterly report
Allocation criteria x Allocations are based on an index comprising of nodes, land capability, poverty, degradation and land
size derived from the following sources:
o nodes of the most deprived wards in comprehensive rural development programme
o land capability; total hectares class I, II and III (spatial analysis - land capability data)
o size; hectares (new boundaries from the Municipal Demarcations Board)
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Land Care Programme Grant: Poverty Relief and Infrastructure Development

o poverty; poverty gap based on food poverty line (Statistics South Africa Living Conditions Survey
2011)
o degradation in hectares (Land degradation report 2017)
o policy imperatives and development for sustainable land management
Reasons not incorporated in x The funding originated with the special poverty allocations made by national government for a specific
equitable share purpose
Past performance 2016/17 audited financial outcomes
x Allocated and transferred R69 million (100 per cent) of which provinces spent R68 million
(99.8 per cent) by the end of the financial year
2016/17 service delivery performance
x 18 349 hectares of rangeland protected and rehabilitated
x 2 246 hectares of cultivated land protected and rehabilitated
x 25 153 Junior Care participants involved in the programme
x 555 hectares of land where water resources are protected and rehabilitated
x 102 capacity building initiatives conducted for Junior Care
x 271 capacity building initiatives conducted for land carers
x 251 awareness campaigns conducted and attended by land carers
x 12 925 hectares of land where weeds and invader plants are under control
x 269 kilometres of fence erected
x 1 198 green jobs created expressed as full time equivalents (FTEs)
x 26 Land Care committees established
Projected life x This grant will be reviewed when and if the need arises to align it with changes in the EPWP, outcome
approach, national planning report and any policy development within government
MTEF allocations x 2018/19: R78 million; 2019/20: R82 million and 2020/21: R87 million
Payment schedule x Allocation to provinces will be disbursed on a quarterly basis (23 April 2018; 20 August 2018;
19 October 2018 and 23 January 2019)
x Percentage allocation per province will depend on the approved provincial business plan budget
Responsibilities of the Responsibilities of the national department
transferring officer and x Agree on outputs and targets with provincial departments in line with grant objectives for 2018/19
receiving officer x Review norms and standards for the implementation of the grant during the NRMWG meeting held
quarterly
x Provide the guidelines and criteria for the development and approval of business plans
x Monitor implementation through project site visits and provide support to provinces
x Submit quarterly performance reports to the National Treasury within 45 days after the end of each
quarter
x Submit evaluation reports to the National Treasury within four months after the end of the financial year
Responsibilities of provincial departments
x Provincial departments to ensure that procurement processes and procedures have been adhered to and
appointed service providers are in place for the implementation of Land Care projects to commence
2 April 2018
x Ensure adequate level of capacity exists in the province to implement the Land Care projects
x Provincial departments to submit signed monthly financial report 15 days after the end of the month
x Provinces should further report jobs created to the DAFF using the prescribed Department of Public
Works reporting template/format within 15 days after the end of the month
x Provincial departments to report quarterly (non-financial) 30 days after the end of each quarter on the
progress of the projects as prescribed by 2018 DoRA. Provinces should further adhere to agreements
approved by the NRMWG on performance reporting and any other matter related to natural resource
management
x Provincial departments to report monthly on jobs created as part of the EPWP. These reports should be
submitted to the Department of Public Works using the approved reporting system
x Provincial departments to submit portfolio of evidence as agreed upon with DAFF, 30 days after the end
of each quarter
x Provincial departments to implement the projects according to the approved business plans. Any
deviation should first be communicated to DAFF transferring officer in writing and approved by DAFF¶V
transferring officer before implementation
x Provinces must hold provincial assessment panels that are inclusive of relevant partners before
submission of provincially approved preliminary individual and provincial business plans to DAFF by
28 September 2018
x Provincial departments should monitor project implementation and evaluate the impacts of projects in
achieving Land Care goals
x Provinces to submit evaluation reports to DAFF two months after the end of the financial year
 125

Land Care Programme Grant: Poverty Relief and Infrastructure Development

Process for approval of the x DAFF must provide provincial departments with business plan formats, guidelines, criteria and outputs as
2019/20 business plans prescribed by National Treasury and DAFF by 30 June 2018
x Submission of signed preliminary provincial and individual Land Care business plans by provinces by
28 September 2018
x Engagement by DAFF with provinces on business plans submitted before provincial assessment panel
and prior to the national assessment panel
x Evaluation and recommendation of business plans by national assessment panel before the end of
February 2019
x Interactions with provinces on national assessment panel comments and final submission of signed
individual and provincial business plans by the provinces prior to approval by the DAFF transferring
officer. Approval of business plans by the DAFF transferring officer before the end of March 2019
x Notify provinces of the approval of business plans before quarterly transfer
x Send funding agreements to provinces by 31 March 2019 to be signed by the Heads of Department
 126

ARTS AND CULTURE GRANT

Community Library Services Grant

Transferring department x Arts and Culture (Vote 37)
Grant schedule x Schedule 5, Part A
Strategic goal x To enable the South African society to gain access to knowledge and updated information that will improve
their socio-economic status
Grant purpose x To transform urban and rural community library infrastructure, facilities and services (primarily targeting
previously disadvantaged communities) through a recapitalised programme at provincial level in support of
local government and national initiatives
Outcome statements x Improved coordination and collaboration between national, provincial and local government on library
services
x Equitable access to transformed library and information services delivered to all rural and urban
communities
x Improved library infrastructure and services that meet the specific needs of the communities they serve
x Improved staff capacity at urban and rural libraries to respond appropriately to community knowledge and
information needs
x Improved culture of reading and literacy development
Outputs x 430 000 items of library materials (books, periodicals, toys etc.) purchased
x Library information and communication technology infrastructure and systems software installed and
maintained in all provinces
x New services established for the visually impaired at 30 identified community libraries in all provinces
x 29 new library structures completed
x 10 new library services established for dual-purpose libraries
x 20 upgraded library structures
x 25 maintained library structures
x 1 924 existing contract library staff maintained in all provinces
x 50 new staff appointed for dual-purpose libraries
x 90 new staff appointed at public libraries to support the shifting of the function to provinces
x Capacity building programmes for public librarians
Priority outcome(s) of x Outcome 1: Quality basic education
government that this grant x Outcome 14: Nation building and social cohesion
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x The provincial business plans must be developed in accordance with identified priority areas
x Provincial departments may only request in writing to the transferring officer to amend the business plans at
the end of September 2018
x Provinces may not exceed 20 per cent threshold provided for variation orders on infrastructure projects
without the approval of the transferring officer
x To qualify for allocations from the grant in 2019/20 provinces must submit progress reports that detail a
phased approach towards the full funding of the function, either by assignment to municipalities or
preparation of provinces to take over the function or a combination of both. This must be done by the end of
2020/21. Grant funding must not be used to replace funding for items that provinces have previously
allocated to community libraries
x Provinces may use a maximum of 5 per cent of the total amount allocated to them for capacity building and
provincial management of the grant at the provincial department
x The details of how these funds will be used must be included in the respective business plans
x Provinces will include in their business plans, the scope of work for upgrades, including the budget to be
committed to the upgrading of existing libraries
x Provinces will include in their business plans budget for maintenance projects
x Funds earmarked to support Schedule 5 function shift in category B municipalities and to establish dual
purpose service points may only be used for that purpose. Provinces may use up to 80 per cent of their
earmarked allocations in 2018/19 financial year to address the Schedule 5 function shift imperative in
category B municipalities. At least 20 per cent of the earmarked additional allocations must be used to
establish dual purpose service points in collaboration with provincial departments of education. The detail of
how these funds will be used by provinces must be included in their respective business plans. The total
earmarked allocations per province are as follows:
o Eastern Cape: R65.7 million
o Free State: R83.3 million
o Gauteng: R89.9 million
o KwaZulu-Natal: R80.4 million
o Limpopo: R27.6 million
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Community Library Services Grant

o Mpumalanga: R62.9 million
o Northern Cape: R55.9 million
o North West: R68.3 million
o Western Cape: R80.3 million
x Service level agreements (SLAs) determining reporting protocols must be signed with receiving
municipalities within two months after the 2018 Division of Revenue Act takes effect
x The SLAs must include financial commitments over the MTEF in addition to the payment schedules to
municipalities and reporting protocols which outline measurable performance targets for each municipality
Allocation criteria x The allocation criteria is based on an evaluation report for 2016/17 conducted by the national Department of
Arts and Culture (DAC) which identified community library needs and priorities
Reasons not incorporated x This funding is intended to address backlogs and disparities in the provision and maintenance of community
in equitable share library services across provinces and to enable the DAC to provide strategic guidance and alignment with
national priorities
Past performance 2016/17 audited financial outcomes
x Allocated and transferred R1.4 billion (100 per cent of allocation) was transferred to provinces inclusive of
provincial roll-overs, of which R1 billion (93 per cent) was spent by provinces by the end of the financial
year
2016/17 service delivery performance
x 20 new libraries built
x 43 libraries upgraded
x 259 new staff appointed
x 401 067 library material procured
Projected life x The projected life will be informed by evaluation reports and should become part of the provincial equitable
share in 2020/21 if provinces have completed the function shift and completed a process that leads to the full
funding of the service
MTEF allocations x 2018/19: R1.4 billion; 2019/20: R1.5 billion and 2020/21: R1.6 billion
Payment schedule x Four instalments: 20 April 2018; 13 July 2018; 12 October 2018 and 18 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Finalise a framework for planning the allocation of library funding at the provincial level by 8 February
receiving officer 2019 that must prescribe minimum norms and standards for the provision of public libraries
x Establish an intergovernmental forum with provinces that meets at least twice a year to discuss issues related
to the provision of community library services
x Participate in at least one intergovernmental forum meeting per province between provinces and
municipalities per year
x Identify challenges and risks and prepare mitigation strategies
x Monitor and evaluate implementation
x Evaluate annual performance of the grant for the previous financial year, for submission to National
Treasury within four months after the end of the financial year
x Submit monthly financial and quarterly performance reports to the National Treasury
x Determine outputs and targets for 2019/20 with provincial departments
Responsibilities of provincial departments
x Provinces must establish intergovernmental forums with municipalities within their province that are funded
through this grant, that meet at least three times a year to discuss issues related to the provision of
community library services
x Provincial departments must establish capacity to monitor and evaluate SLAs with municipalities
x Provinces must maintain the number of staff appointed using this conditional grant
x Submit evaluation reports to the DAC within two months after the end of the financial year
x Submit signed monthly financial reports of provinces to DAC within 15 days after the end every month
x Submit quarterly performance reports to the DAC within 30 days after the end of the quarter
x Provinces must undertake a costing exercise of converting contract staff to permanent staff by the end of
June 2018
Process for approval of the x Provinces must submit a draft function shift progress report for comment to DAC by 3 August 2018. A final
2019/20 business plans report must be submitted by 3 October 2018
x Progress reports must detail at least the following:
o criteria that will be used to evaluate the capacity of municipalities to administer the function on behalf of
the province
o a policy framework for funding municipalities that administer the service
o this framework must provide for funding the service over a three-year time horizon
x Provinces to submit draft business plans to DAC by 7 September 2018. Business plans must be aligned to
their strategies for full funding of the function
x DAC to evaluate provincial business plans and provide feedback to provinces by 26 October 2018
x Provinces to submit final provincial business plans to DAC by 11 January 2019
x DAC approves business plans and submits them to National Treasury by 29 March 2019
 128

BASIC EDUCATION GRANTS

Education Infrastructure Grant

Transferring department x Basic Education (Vote 14)
Grant schedule x Schedule 4, Part A
Strategic goal x To supplement provinces to fund the provision of education infrastructure in line with the regulations
relating to minimum uniform norms and standards for public school infrastructure
Grant purpose x To help accelerate construction, maintenance, upgrading and rehabilitation of new and existing
infrastructure in education including district and circuit accommodation
x To enhance capacity to deliver infrastructure in education
x To address damages to infrastructure
x To address achievement of the targets set out in the minimum norms and standards for school
infrastructure
Outcome statements x Improved quality of education service delivery by provincial departments as a result of an improved
and increased stock of schools infrastructure
x Aligned and coordinated approach to infrastructure development at the provincial sphere
x Improved education infrastructure expenditure patterns
x Improved response to the rehabilitation of school infrastructure
x Improved rates of employment and skills development in the delivery of infrastructure
Outputs x Number of new schools, additional education spaces, education support spaces and administration
facilities constructed as well as equipment and furniture provided
x Number of existing schools¶ infrastructure upgraded and rehabilitated
x Number of new and existing schools maintained
x Number of work opportunities created
x Number of new special schools provided and existing special and full service schools upgraded and
maintained
Priority outcome(s) of x Outcome 1: Quality basic education
government that this grant
primarily contributes to
Documents to be assessed as x This grant uses an infrastructure plan that includes:
per the Performance Based o the infrastructure programme management plan (IPMP)
Approach System guidelines o the procurement strategy
o the capacitation strategy
o the infrastructure reporting model (IRM)
o the year-end evaluation report
Conditions x Provinces may use a maximum of R45.1 million of this grant in 2018/19 for the appointment of
public servants to their infrastructure units in line with the human resource capacitation circular
published by National Treasury
x The flow of the first instalment of the grant depends upon receipt by the national Department of Basic
Education (DBE) and provincial treasuries of:
o approved and signed-off infrastructure plan with tabled prioritised project lists for the 2018
medium term expenditure framework (MTEF) by no later than 30 March 2018. The infrastructure
plan must where applicable also include the implementation plans for schools affected by natural
disasters
o preventative and corrective maintenance plan for all maintenance programmes over the MTEF
period accompanied by a project list no later than 30 March 2018
x The flow of the second instalment depends upon receipt by DBE and provincial treasuries of the
approved and signed-off:
o monthly infrastructure reports in a format determined by the National Treasury and DBE
o national education infrastructure management system (NEIMS) assessment forms for the fourth
quarter of the 2017/18 financial year no later than 27 April 2018
o a report on the filling of posts on the approved establishment for the infrastructure unit in the
format approved by National Treasury for the fourth quarter of the 2017/18 financial year within
22 days after the end of the fourth quarter
x The flow of the third instalment is dependent upon receipt by DBE, the relevant provincial treasuries
and the National Treasury, on a date and in a format determined by National Treasury, of the
approved and signed-off:
o infrastructure plan for all infrastructure programmes for a period of 10 years (including the initial
list of prioritised projects) on a date specified in the performance based approach guidelines
o the 2018/19 project list must be drawn from the prioritised project list for the MTEF tabled in
2017/18
o preventative and corrective maintenance plans for all maintenance programmes over the MTEF
period accompanied by a project list on a date specified in the performance based approach
guidelines
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Education Infrastructure Grant

o monthly infrastructure reports in the format determined by National Treasury and the DBE
o NEIMS assessment forms for the first quarter of 2018/19 by 27 July 2018
o a report on the filling of posts on the approved establishment for the infrastructure unit in the
format approved by National Treasury for the first quarter of the 2018/19 financial year within
22 days after the end of the first quarter
o the conditional grant year-end evaluation report on financial and non-financial performance no
later than 31 May 2018
x The flow of the fourth instalment is conditional upon receipt by the DBE and relevant provincial
treasury of the approved and signed off:
o monthly infrastructure reports in the format determined by National Treasury and the DBE
o NEIMS assessment forms for the second quarter of 2018/19 by 26 October 2018
o IPMP for infrastructure programmes envisaged to commence within the period for the medium
term expenditure framework on a date specified in the performance based approach guidelines
o procurement strategy for infrastructure programmes envisaged to commence within the period of
the medium term expenditure framework on a date specified in the performance based approach
guidelines
o a report on the filling of posts on the approved establishment for the infrastructure unit in the
format approved by National Treasury for the second quarter of the 2018/19 financial year within
22 days after the end of the second quarter
x The flow of the fifth instalment is conditional upon receipt by the DBE and the relevant provincial
treasuries, on a date determined by National Treasury, of the approved and signed-off:
o monthly infrastructure reports in the format determined by National Treasury and the DBE
o NEIMS assessment forms for the third quarter of 2018/19 to DBE not later than 23 January 2019
o a report on the filling of posts on the approved establishment for the infrastructure unit in the
format approved by National Treasury for the third quarter of the 2018/19 financial year within
22 days after the end of the third quarter
x Provincial education departments (PEDs) must provide school governing bodies with maintenance
guidelines to conduct minor maintenance. This should be in accordance with the sector maintenance
strategy
x PEDs should allocate no less than 20 per cent of the Education Infrastructure Grant (EIG) allocation
to address preventative and corrective maintenance at schools
x Included in the baseline for the 2018 MTEF is an amount of R1.5 billion earmarked for maintenance
of schools (R300 million in 2018/19; R350 million in 2019/20 and R800 million in the 2020/21
financial year)
x In schools without section 21 responsibilities, PEDs should put in place the necessary measures to
ensure that planned maintenance at these schools occurs as per the scheduled maintenance plan for
such schools
x PEDs must provide all the necessary equipment and furniture in the spaces provided when
constructing new projects
x PEDs to submit their plans for the procurement of mobile classrooms to the DBE and that any
deviation from these plans should be approved in writing by the DBE and National Treasury
x PEDs must adhere to the prescripts of the National Treasury instruction number 2 of 2015/16, on the
implementation of the school cost norms
x Compliance with the conditions of this grant framework and the relevant clauses within the stipulated
timeframes of the 2018 Division of Revenue Act (DoRA)
x Non-compliance with any of the above conditions may result in the withholding and subsequent
stopping of transfers
Allocation criteria x Allocations for 2018/19 are based on historical allocations for this grant
x Allocations also include incentive based allocations as described in part 4 to Annexure W1 of the
2018 DoRA
Reasons not incorporated in x Funding infrastructure through a conditional grant enables the national department to ensure the
equitable share delivery and maintenance of education infrastructure in a coordinated and efficient manner, and
consistent with national norms and standards for school buildings
Past performance 2016/17 audited financial outcomes
x Of the R10.1 billion allocated, R9.9 billion (98.5 per cent) was transferred to provinces of which R9.7
billion (97.4 per cent) was spent by the end of the national financial year
2016/17 service delivery performance
x 3 237 teaching spaces, 1 214 administrative spaces, 3 533 maintenance or upgrading projects
x 368 water, 521 sanitation, 130 electricity and 843 fencing infrastructure projects
x 32 sports facilities were provided
x The sector has provided a total of 63 new and replacement schools in respective provinces
Projected life x Grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R9.9 billion; 2019/20: R10.3 billion and 2020/21: R11.5 billion
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
 130

Education Infrastructure Grant

Responsibilities of the Responsibilities of the national department
transferring officer and x Visit selected infrastructure sites in provinces
receiving officer x DBE and National Treasury to support provinces to improve infrastructure delivery capacity and
systems
x Provide guidance to provinces in planning and prioritisation
x Issue guidelines on the capacitation process of infrastructure units as well as the conditions attached
to the utilisation of the funding
x DBE and National Treasury to jointly evaluate progress with the capacitation of provincial
infrastructure units and provide feedback to all provinces in terms of the guidelines
x DBE and National Treasury must jointly evaluate and provide feedback to all provinces on the
assessment of all documents as outlined on the performance based approach system guidelines
x Assess the reports submitted by PEDs and provide feedback before transferring the instalment
x Submit reports to the National Treasury in terms of quarterly achievements by PEDs
x Comply with the conditions of this grant framework and the relevant clauses within the stipulated
timeframes of the 2018 DoRA
Responsibilities of provincial departments
x Approve monthly provincial infrastructure reports on infrastructure programmes within 15 days after
the end of each month to the relevant provincial treasury and DBE
x Submit a signed-off monthly provincial infrastructure report on infrastructure programmes within
22 days after the end of each month to the relevant provincial treasury and DBE
x Comply with the conditions of this grant framework and the relevant clauses within the stipulated
timeframes in 2018 DoRA
x Submit quarterly capacitation reports within 45 days after the end of each quarter
x Ensure that section 42 transfers as per the Public Finance Management Act are effected
Process for approval of x The process for approval for the 2019 MTEF allocations will be in line with the performance based
2019/20 business plans incentive approach guidelines published by National Treasury
 131

HIV and AIDS (Life Skills Education) Grant

Transferring department x Basic Education (Vote 14)
Grant schedule x Schedule 5, Part A
Strategic goal x Addressing social and structural drivers on HIV, sexually transmitted infections (STIs) and Tuberculosis
(TB) prevention, care and impact
x Preventing new HIV, STIs and TB infections
x To increase access to sexual and reproductive health services including HIV as well as TB services for
learners and educators, with a specific focus on schools that are located in high priority areas
Grant purpose x 7RVXSSRUW6RXWK$IULFD¶V+,9SUHYHQWLRQVWUDWHJ\E\:
o providing comprehensive sexuality education and access to sexual and reproductive health services
to learners; and
o supporting the provision of employee health and wellness programmes for educators
x To mitigate the impact of HIV and TB by providing a caring, supportive and enabling environment for
learners and educators
x To reduce the vulnerability of children to HIV, TB and STIs, with a particular focus on orphaned
children and girls
Outcome statements x Increased HIV, STI and TB knowledge and skills amongst learners, educators and officials
x Decrease in risky sexual behaviour among learners, educators and officials
x Decreased barriers to retention in schools, in particular for vulnerable learners and girls
Outputs x 20 000 educators trained to implement comprehensive sexuality education (CSE) and TB prevention
programmes for learners to be able to protect themselves from HIV and TB, and their associated key
drivers including alcohol and drug use, leading to unsafe sex, learner pregnancy and HIV infection,
prioritising schools located in areas with a high burden of HIV, TB infections
x 8 000 school management teams and governing bodies trained to develop policy implementation plans
focusing on keeping mainly young girls in school, ensuring that CSE and TB education is implemented
for all learners in schools, access to sexual and reproductive health (SRH) and TB services. A component
of training will also address multiple sexual partners among boys
x Co-curricular activities on provision of CSE, access to SRH and TB services implemented in schools
including a focus on prevention of alcohol and drug use and learner pregnancy, targeting 213 000
learners. Priority will be in schools located in high burden areas
x Care and support programmes implemented to reach 190 000 learners and 15 000 educators. Expand the
appointment of learner support agents to 3 000 to support vulnerable learners, with a specific focus on
keeping girls in school, using the care and support for teaching and learning framework
x 400 250 copies of curriculum and assessment policy statement compliant material, including material for
learners with barriers to learning, printed and distributed to schools. Printing of the school policy pack
will be prioritised over learner teacher support material (LTSM) to ensure that all schools have a copy of
the Department of Basic Education¶V (DBE) National Policy on HIV, STIs and TB for learners,
educators, support staff and officials in all primary and secondary schools in the basic education sector
x Advocacy and social mobilisation events host with 400 000 learners, educators and school community
members on the new DBE National Policy on HIV, STIs and TB to review and change societal norms
and values on the provision of CSE and access to SRH and TB services, including a focus on key risk
behaviours such as alcohol and drug use, learner pregnancy, inter-generational and transactional sex
amongst girls as well as to advocate for the integrated school health programmes including SRH services
such as contraception, STIs, pregnancy and HIV testing, condom distribution and information on safe
circumcision in secondary schools
Priority outcome(s) of x Outcome 1: Quality basic education
government that this grant x Outcome 2: A long and healthy life for all South Africans
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x Provincial education departments (PEDs) must distribute the grant allocation in accordance with the
following weights for the key performance areas:
o training and development (10 per cent)
o co-curricular activities (20 per cent)
o care and support (25 per cent)
o learning and teaching support material (10 per cent)
o advocacy and social mobilisation (20 per cent)
o monitoring and support (8 per cent)
o management and administration (7 per cent)
x PEDs must report on implementation and expenditure according to the above seven key performance
areas per quarter
x Instalments are dependent on the DBE receiving these reports, adherence to approved business plans and
attendance at the biannual inter-provincial meetings
x The above percentages are guidelines and may be deviated from in accordance with provincial needs
with the approval of the national transferring officer. However, provinces must prioritise areas with high
rates of HIV, TB and learner pregnancy
x These deviations should be informed and motivated by achievements and/or critical challenges relating
 132

HIV and AIDS (Life Skills Education) Grant

to the trends in the epidemic as relevant to respective provinces and PEDs
x PEDs must ensure that they have the necessary capacity and skills to manage the implementation of the
grant
Allocation criteria x The education component of the provincial equitable share formula, as explained in Part 4 of Annexure
W1 of the 2018 Division of Revenue Act, is used to allocate the grant amongst provinces
Reasons not incorporated in x To enable the DBE to provide overall guidance, to ensure congruency, coherence and alignment with:
equitable share o National Strategic Plan for HIV, TB and STIs (2017±2022)
o DBE National Policy on HIV, STIs and TB
x This enables DBE to exercise an oversight role in the implementation of the HIV and AIDS Life Skills
Education programme in schools
Past performance 2016/17 audited financial outcomes
x Of the R231 million allocated to provinces, R224 million (96.9 per cent) was transferred to provinces, of
which R224 million (98.5 per cent) was spent by the end of the financial year
2016/17 service delivery performance
x 2 185 master trainers, 20 511 Life Orientation educators and 11 263 educators were trained in the
integration of life skills in the curriculum
x 81 175 functional peer education programmes were undertaken, 71 858 learners trained on the learner
retention and learner pregnancy programme, 68 323 learners trained in the substance use programme and
7 520 educators trained to mentor peer education in primary schools
x 17 076 school based support teams established, 2 125 learner support agents in schools, 9 392 school
management teams trained to develop policy implementation plans, and 188 899 vulnerable learners
identified and referred for services
x 657 999 sets of learning and teaching support material delivered to 21 933 schools and 17 500 first aid
kits distributed to 17 500 schools
x Advocacy reached 243 433 learners and educators as well as 187 307 members of the school
communities and reaching 92 167 learners through advocacy activities focusing on the prevention of TB
x 13 191 schools reached through monitoring and support visits and 351 meetings held
Projected life x The grant will be reviewed on an ongoing basis to respond to the nature and trends in the HIV and TB
epidemics
MTEF allocations x 2018/19: R243 million; 2019/20: R257 million and 2020/21: R271 million
Payment schedule x Four instalments: 13 April 2018; 27 July 2018; 26 October 2018 and 25 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Identify risks and challenges impacting on provincial implementation
receiving officer x Develop risk management strategies to address these risks
x Ensure synergy with national strategies and processes aimed at reducing HIV and the related chronic
illnesses such as TB infection in the country together with their risk factors such as alcohol and drug use
x Agree on outputs and targets with PEDs in line with grant objectives and national imperatives for
2019/20 by 28 September 2018
x Provide evidence based guidance for the development of business plans based on monitoring and
findings from international and national research
x Monitor implementation of the programme and provide support to provinces
x Develop partnerships with key stakeholders
x Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter
Responsibilities of the provincial departments
x Ensure synergy with national strategies and processes aimed at reducing HIV and TB infections and all
other related issues including their risk factors such as alcohol and drug use
x Identify risks and challenges impacting on implementation
x Develop risk management strategies and implementation plans to address these risks
x Submit monthly expenditure reports, quarterly and annual performance reports to the DBE in line with
the 2018 Division of Revenue Act and Public Finance Management Act
x Agree with the DBE on outputs and targets to ensure effective implementation of the programme
x Monitor implementation of the programme and provide support to districts and schools
x PEDs to implement the projects according to the approved business plans
x Any deviation should first be communicated to and approved by the DBE before implementation
x Evaluate and submit a provincial evaluation report on the performance of the conditional grant to the
DBE by 31 May 2018
Process for approval of x Communication and meeting with provinces to inform targets for the next financial year by
2019/20 business plans 31 October 2018
x PEDs submit draft business plans to DBE for evaluation by 30 November 2018
x DBE evaluates provincial business plans from 7 December 2018
x Comments sent to PEDs to amend the plans by 8 January 2019
x PEDs submit amended and signed plans to DBE by 28 February 2019
x DBE approves provincial business plans by 29 March 2019
 133

Learners with Profound Intellectual Disabilities Grant

Transferring department x Basic Education (Vote 14)
Grant schedule x Schedule 5, Part A
Strategic goal x To ensure that learners with severe to profound intellectual disabilities access quality publicly funded
education and support
Grant purpose x To provide the necessary support, resources and equipment to identified care centres and schools for the
provision of education to children with severe to profound intellectual disabilities
Outcome statements x Improved access to quality basic education for children with severe to profound intellectual disabilities in
conditions that ensure dignity, promote self-reliance and facilitate active participation in the community
Outputs x Human resources specific to inclusive education through the provision of key additional staff on three year
contracts, such as:
o nine deputy chief education specialists as provincial project managers
o 280 transversal itinerant team members to deliver education support programmes to special care centres
consisting of one psychologist or social worker, one special needs teacher at post level 2 (PL2), one
chief education speech therapist, one chief education occupational therapist, one chief education
physiotherapist
x Database of selected schools and care centres
o information of 320 care centres that provide support and services to children with severe to profound
intellectual disabilities
x Transversal itinerant outreach team members, caregivers, teachers and officials trained
o provision of an endorsed training programme for identified teachers and caregivers of children with
severe to profound intellectual disabilities
o training of 280 outreach officials to provide outreach services as part of the district-based support teams
to care centres as well as to ordinary, full-service and special schools
o training of teachers from 79 special/full-service schools to support the special care centres and implement
the learning programme
o training of teachers at 79 identified schools to support children with severe to profound intellectual
disabilities enrolled at these schools by delivering the learning programmes
o capacity building of caregivers at 320 centres contributing towards their professionalisation
x Outreach services provided
o 6 654 learners with severe to profound intellectual disabilities utilising the learning programme
o 6 654 learners with severe to profound intellectual disabilities with access to therapeutic and psycho-
social support services that will enable them to improve their participation in learning
o learning and teaching support materials (LTSM) and toolkits provided to 320 care centres and 79 schools
annually
Priority outcome(s) of x Outcome 1: Quality basic education
government that this
grant primarily
contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
x Annual budget and resource allocation schedules
x Monitoring and reporting
x Risk management plan
x Cash flow projections
x Participating centres and schools list (separate annexure)
Conditions Grant structure and allocation
x The grant is utilised on an interventional basis and is not a general roll-out for all schools and centres
x The focus of the grant is children with severe to profound intellectual disabilities who are currently not
accessing public funded education
x A nationally approved learning programme for learners with severe to profound intellectual disabilities
should be offered at centres and schools that are targeted by the grant
x The FHQWUHV¶QHHGVDQGDOORFDWLRQRIIXQGVVKDOOEHdetermined through a criteria indicated in the framework
in partnership with provinces and the national Departments of Health (DoH), Social Development (DSD) and
other relevant departments
x Allocations to consider the number of centres and schools to ensure equitable funding
x The grant will support a total of 320 centres and 186 schools across all provinces
x The provincial funds allocation should be divided in accordance with the following guideline:
o 4 per cent for training of teachers and outreach teams
o 13 per cent for LTSM, toolkits and equipment for centres and designated schools
o 65 per cent for compensation of itinerant teams and provincial co-ordinators
o 18 per cent for administration including travel, vehicles, accommodation and subsistence
x Provinces may deviate from the prescribed guidelines provided the transferring officer approves such
deviations
x The outreach teams must consist of one special needs teacher (PL2), one chief education occupational
 134

Learners with Profound Intellectual Disabilities Grant

therapist, one chief education speech therapist, one chief education physiotherapist and one psycho-social
support specialist
x A nationally approved learning programme for learners with severe to profound intellectual disabilities
should be offered at centres and schools that are targeted by the grant. The transferring and receiving
departments must appoint or identify qualified and experienced person/s to administer, manage and
coordinate the activities of the grant in accordance with the provisions of the framework and business plan
Business planning process
x Training of teachers and outreach teams will be conducted through nationally developed training manuals and
at times as agreed upon with the DBE and will be monitored by national and provincial project coordinators
x Provinces may contract specialist training providers in consultation with the DBE to offer training that
enhances the implementation of the learning programme
x Items such as LTSM, equipment and toolkits, should be procured as per the minimum specifications as
defined by the DBE and in line with the learning programme for learners with severe to profound intellectual
disabilities. The grant also supports the training of all end-users in the utilisation of all resources provided to
a school. The grant should not be used to procure LTSM and assistive devices and technology for general use
for special schools that are already funded through voted funds
x Outreach teams will be appointed and compensated in accordance with post levels as agreed upon with DBE.
They will be appointed at district level as members of the district-based support team and could be based at
the district, circuit or school level from where they will be responsible for providing educational support to
designated care centres and targeted schools on an itinerant basis
x The support provided by the itinerant teams will consist of an assessment of learners, provision of therapeutic
programmes, training and mentoring of caregivers and teachers and monitoring the implementation of the
learning programme, as well as providing psycho-social support to learners and to families. They may also
provide support to other children in the community as and when needed
x Administrative support will include purchasing or leasing of appropriate vehicles, provision of tools of trade
(in line with the DBE guidelines), travel, and subsistence and accommodation costs when visiting distantly
located care centres
Procurement matters
x Transversal tenders will be developed with the advice of DoH as well as DSD and entered into with multiple
suppliers and provinces will be invited to participate in such procurement contracts. In the absence of a DBE
transversal tender, provinces must continue to procure on their own
x Provincial education departments (PEDs) will be included in the various bid committees for the toolkit
transversal tender
x The grant funds and implementation (procurement, delivery and payment) are to be managed at provincial
level
x Before equipment and LTSM can be transferred to schools/centres, PEDs should ensure that LTSM
management and administrative systems are in place and staff have the capacity to manage and maintain the
LTSM and equipment is available
Allocation criteria x The allocation of the grant will be in accordance with the number of schools and centres that will be
participating in the programme
Reasons not incorporated x In order to address the needs of this marginalised population of children with disabilities of whom the
in equitable share majority are not in school and not accessing educational subsidies through the educational norms applied at
schools, the funding has to be ring-fenced in the form of a conditional grant. This will enable the DBE to
provide overall guidance, to ensure congruency, coherence and alignment with the policy on the provision of
quality education and support for children with severe to profound intellectual disabilities which will be
promulgated in the course of 2018
Past performance 2016/17 financial audited outcomes
x New grant
2016/17 service delivery performance
x New grant
Projected life x The grant will be reviewed on an ongoing basis to respond to the nature and trends in the education of
learners with severe to profound intellectual disabilities
MTEF allocations x 2018/19: R185 million; 2019/20: R221 million and 2020/21: R243 million
Payment schedule x Payments will be made on a quarterly basis on 6 April 2018; 3 July 2018; 2 October 2018 and
2 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Finalise policy and learning programme for children with severe to profound intellectual disabilities
receiving officer x Develop training materials, guidelines and advocacy materials
x Coordinate training of officials on the grant activities
x Evaluate, approve and submit provincial business plans to National Treasury
x Provide the administrative services for the grant (manage, coordinate, monitor and support programme
implementation at all levels)
x Develop and provide capacity building programmes for provincial implementation teams to assist them in
implementing the grant
x Develop and distribute planning, implementation, monitoring and evaluation guidelines and/or templates
including minimum specifications for school/centre resources
x Ensure compliance with reporting requirements in line with the provisions of the 2018 Division of Revenue
Act (DoRA)
x Monitor implementation at provincial, district and school/centre level on a monthly and quarterly basis or as
and when required in line with the grant framework
 135

Learners with Profound Intellectual Disabilities Grant

x Evaluate the performance of the conditional grant and submit an evaluation report to National Treasury as per
the requirements of the 2018 DoRA
x Establish and strengthen partnerships with relevant stakeholders and government departments
x Ensure that care centres and schools are improved in terms of provision of education learning programmes for
learners with severe to profound intellectual disabilities and there is incremental enrolment of learners at
schools on an annual basis
Responsibilities of provincial departments
x Maintain provincial inter-departmental task teams with representatives from the provincial departments of
Health, Basic Education, Social Development, Public Works, Transport and other key stakeholders
x The provincial grant managers shall conduct monitoring at all levels on a monthly and quarterly basis or as
and when required
x PEDs to update and submit data of targeted care centres and schools that have enrolled learners with severe to
profound intellectual disability and those that support the care centres to the DBE to ensure equitable funding
x Develop and submit business plans approved by their accounting officer to DBE
x Ensure compliance with reporting requirements by providing consolidated quarterly reports 30 days after the
end of the quarter including other monitoring or diagnostic reports and reviews as required from time to time
x Manage and implement the programme in line with the 2018 DoRA and the Public Finance Management Act
to ensure that expenditure is on track so that scheduled transfer payments will not be withheld
x Participate in transversal tenders issued by the DBE or other provinces in order to procure goods and services
related to the outputs of the grant
x Monitor and provide support to districts/regions, circuits and schools on a monthly basis or as and when
required
x Provide human resource capacity at all relevant levels including the appointment or identification of a
qualified and experienced person/s to administer, manage and coordinate the activities of the grant in
accordance with the provisions of the framework and compliance certificates
x Appoint outreach teams and provide office facilities and furniture for them, as well as procure tools of trade
x Evaluate the performance of the grant and submit evaluation reports to DBE within two months after the end
of the financial year
x Conduct advocacy and awareness programmes on the right to education and support of children with
profound intellectual disabilities with relevant stakeholders such as community representatives, parents and
non-governmental organisations
x Ensure that children with severe to profound intellectual disability access the learning programme,
therapeutic and psycho-social services
x Provincial departments to implement the grant activities according to the approved business plans. Any
deviation should first be communicated to the DBE in writing and approved by the transferring officer before
implementation
x Provincial departments should ensure that the right systems, capacity and controls are in place to ensure the
successful delivery of this grant
Process for approval of x Communication and meeting with provinces to inform targets for the next financial year by 30 August 2018
2019/20 business plans x PEDs submit draft business plans to DBE for evaluation by 31 October 2018
x DBE evaluates provincial business plans by 16 November 2018
x Comments sent to PEDs to amend the plans by 14 December 2018
x PEDs submit amended and signed-off plans to DBE by 1 February 2019
x DBE approves provincial business plans by 20 March 2019
 136

Maths, Science and Technology Grant

Transferring department x Basic Education (Vote 14)
Grant schedule x Schedule 5, Part A
Strategic goal x To strengthen the implementation of the National Development Plan and the Action Plan 2019 by increasing
the number of learners taking Mathematics, Science and Technology (MST) subjects, improving the success
rates in the subjects and improving teacherV¶ capabilities
Grant purpose x To provide support and resources to schools, teachers and learners in line with the Curriculum Assessment
Policy Statements (CAPS) for the improvement of MST teaching and learning at selected public schools
Outcome statements x Improved learner participation and success in MST subjects in the country
Outputs x School support
x Information, Communication and Technology (ICT) subject specific resources:
o 300 schools supplied, with subject specific computer hardware in accordance with the minimum
specifications prescribed by CAPS
o 300 schools supplied with subject related software in accordance with the minimum specifications
x Workshop, equipment and machinery:
o 200 technical sFKRROV¶ZRUNVKRSHTXLSPHQWIRUWHFKQRORJ\VXEMHFWV repaired, maintained and/or replaced
in accordance with the minimum specifications
o 200 tHFKQLFDO6FKRROV¶ZRUNVKRS machinery for technology subjects repaired, maintained and replaced in
accordance with the minimum specifications
x Laboratories and workshop equipment, apparatus and consumables:
o 1 000 schools supplied with Mathematics and Science kits
o 1 000 laboratories supplied with apparatus for Mathematics and Science subjects in accordance with the
minimum specifications
o 500 laboratories and workshops supplied with consumables for Mathematics, Science and Technology
subjects in accordance with the minimum specifications
x Learner Support
o 50 000 learners registered for participation in Mathematics, Science and Technology,
Olympiads/Fairs/Expos and other events based on a structured annual calendar including support through
learner camps and additional learning, teaching and support material such as study guides
x Teacher Support
o 1 500 participants attending specific structured training and orientation for teachers and subject advisors
in subject content and teaching methodologies on CAPS for Electrical, Civil and Mechanical
Technology, Technical Mathematics, and Technical Sciences
o 1 000 teachers and subject advisors attending targeted and structured training in teaching methodologies
and subject content either for Mathematics, Physical, Life, Natural and Agricultural Sciences,
Technology, Computer Applications Technology, Information Technology, Agricultural Management
and Technology subjects
Priority outcome(s) of x Outcome 1: Quality basic education
government that this
grant primarily
contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
x Annual budget and resource allocation schedules
x Monitoring and reporting
x Risk management plan
x Cash flow projections
x Participating schools list (separate annexure)
Conditions Grant structure and allocations
x The grant is utilised on an interventional basis and is not a general roll-out for all schools
x 6FKRROV¶QHHGVDQGDOORFDWLRQRIIXQGVshall be identified through a criteria indicated in the framework in
partnership with provinces and districts in the preceding financial period
x The grant will support a total of 1000 schools across all provinces covering all MST subjects from grades
R-12
x The provincial funds allocation should be divided in accordance with the following guideline:
o five per cent for ICT resources including training of ICT integration for educators
o 40 per cent for repair/replace and maintenance of workshop equipment and machinery
o 40 per cent for laboratories and workshop apparatus and consumables
o nine per cent for learner support
o five per cent for Mathematics, Science and Technology teacherV¶ subject content training
o one per cent for grant administration, monitoring and evaluation
x Provinces may deviate from the prescribed guidelines provided the transferring officer approves all
deviations
Priorities
x All the grant outputs are prioritised in accordance with the allocation percentages unless the province has
requested a deviation
 137

Maths, Science and Technology Grant

Outputs
x ICT resource items should be procured as per the minimum specifications defined by the DBE and in line
with CAPS. Subject specific ICT resources refer to hardware and software, which are compulsory and
required by the curriculum. The grant also supports the training of all end-users in the utilisation of all ICT
resources provided to a school
x Workshop equipment and machinery items should be repaired, maintained and/or replaced where appropriate
in order to meet the minimum specifications defined by the DBE and in line with CAPS
x Laboratories and workshop equipment, apparatus and consumables:
o these items should be procured as per the minimum specifications as defined by the DBE and in line with
CAPS. This should be prioritised in line with the budget allocated to this item. These resources are
provided to improve practical teaching and learning in all MST subjects with special attention to
mathematics
x Learner support is provided to all identified learners in line with provincial needs in support of curriculum
delivery based on a structured annual calendar. This includes competition participation expenses, learner
coaching, printing, delivery and mediation of study materials. This support includes study camps for
identified learners as per the provincial programme including a focus to enhance the girl learners
x Teacher support is provided to all identified teachers in line with provincial needs in support of curriculum
delivery. Teacher training or development should be based on a structured programme, which must be
submitted to the transferring department as and when required. No ad-hoc training will be supported by the
grant
Grant administration, monitoring and evaluation
x All provincial grant managers are supported to manage, administer, monitor and evaluate the implementation
of the grant in line with the business plan. The support includes payment for expenses such as travelling,
accommodation, stationery, flight fares, subsistence and other incidental costs
Procurement matters
x The transferring officer shall develop centralised procurement processes and all provinces shall participate in
such processes. In the absence of a DBE transversal tender, provinces must continue to procure on their own
x The grant funds and implementation (procurement, delivery and payment) must be managed at provincial
level unless a transversal tender has been issued or the school has demonstrated capacity, systems and
controls to efficiently manage the processes of the grant
x Before funds can be transferred to schools, there should be assurance that systems, controls and capacity to
manage the funds, implementation and delivery processes of the grant are in place
Allocation criteria x Participating schools should be identified according to the following criteria:
o the schools must be classified between quintile 1-3
o provinces may include schools in quintile 4 and 5 subject to the approval of the transferring officer
o the average learner performance in all subjects including MST at the level below 60 per cent at
o Grade 8-12
o primary schools will be supported as feeder schools to secondary schools participating in the grant based
on the provincial needs analysis in line with the outputs of the grant
o at least 30 learners are enrolled for each grade in mathematics and sciences subjects at a general
education and training, and further education and training band, and 15 learners are enrolled for
technology subjects in further education and training band
o 50 per cent of all learners in the school must be enrolled for mathematics or technical mathematics in
cases of technical schools
Reasons not incorporated x The grant is a targeted systemic capacity improvement programme. It should therefore be noted that the
in equitable share number of schools requiring support is not proportionally distributed across the provinces. The level of
support required by schools differs across provinces
x ICT:
o 719 schools (42: Eastern Cape, 77: Free State, 207: Gauteng, 32: KwaZulu-Natal, 75: Limpopo,
136: Mpumalanga, 27: Northern Cape, 100: North West and 23: Western Cape)
x Workshop equipment, machinery and tools:
o 226 workshops (10: Eastern Cape, 30: Free State, 42: Gauteng, 32: KwaZulu-Natal, 24: Limpopo,
30: Mpumalanga, 17: Northern Cape, 19: North West and 22: Western Cape)
x Laboratories and workshop equipment, apparatus and consumables:
o 713 laboratories (70: Eastern Cape, 82: Free State, 173: Gauteng, 74: KwaZulu-Natal, 108: Limpopo,
Past performance
136: Mpumalanga, 20: Northern Cape and 50: Western Cape)
x Learner support:
o 116 105 learners (20 409: Eastern Cape, 3 000: Free State, 1 286: Gauteng, 2 402: KwaZulu-Natal,
30 794: Limpopo, 40 330: Mpumalanga, 1 886: Northern Cape, 4 982: North West, 11 016:
Western Cape)
x Teacher support:
o 28 682 Teachers (2 040: Eastern Cape, 3 446: Free State, 694: Gauteng, 3 672: KwaZulu-Natal,
2 531: Limpopo, 5 544: Mpumalanga, 3 145: Northern Cape, 432: North West, 7 178: Western Cape)
Projected life x Grant continues until 2020/21 thereafter subject to review
MTEF allocations x 2018/19: R370 million; 2019/20: R391 million and 2020/21: R413 million
Payment schedule x 11 May 2018; 17 August 2018; 16 November 2018 and 8 February 2019
 138

Maths, Science and Technology Grant

Responsibilities of the Responsibilities of the national department
transferring national x Identify and analyse areas requiring support in MST
officer and receiving x Evaluate, approve and submit provincial business plans to National Treasury
officer x Provide the administrative services for the grant (manage, coordinate, monitor and support programme
implementation at all levels)
x Develop and distribute planning, implementation, monitoring and evaluation guidelines and/or templates
including minimum specifications for school resources
x Ensure compliance with reporting requirements in line with the provisions of the 2018 Division of Revenue
Act (DoRA)
x Monitor implementation at provincial, district and school level on a quarterly basis or as and when required
in line with the grant framework
x Evaluate the performance of the conditional grant and submit an evaluation report to National Treasury as per
the requirements of the 2018 DoRA
Responsibilities of provincial departments
x Identify and analyse areas requiring support in MST
x Develop and submit approved business plans to DBE
x Provinces shall submit lists of schools to DBE as per the timeframes set by the grant framework
x Develop and submit an approved procurement plan in line with the business plan targets by the end of the
financial year
x Ensure compliance with reporting requirements by providing consolidated monthly expenditure reports,
15 days after the end of the month, and quarterly reports 30 days after the end of the quarter including other
monitoring or diagnostic reports and reviews as required from time to time
x Using a portion of the grant funding, manage and implement the programme in line with the 2018 DoRA and
the Public Finance Management Act
x Where applicable, participate in transversal tenders issued by the DBE or other provinces in order to procure
goods and services related to the outputs of the grant
x Monitor and provide support to districts/regions, circuits and schools on a monthly and quarterly basis or as
and when required
x Provide human resource capacity at all relevant levels including the appointment or identification of a
qualified and experienced person/s to administer, manage and co-ordinate the activities of the grant in
accordance with the provisions of the framework and compliance certificates
x Evaluate the performance of the grant and submit evaluation reports to DBE within two months after the end
of the financial year
x Provincial departments to implement the projects according to the approved business plans. Any deviation
VKRXOGILUVWEHFRPPXQLFDWHGLQZULWLQJDQGDSSURYHGE\'%(¶VWUansferring officer before implementation
x Submit schools business plans to DBE if funds being transferred to schools on by the end of June every year
Responsibilities of schools
x 6XEPLWVFKRROV¶QHHGVRQ067WRWKHGLVWULFWVDVUHTXLUHGE\WKHSURYLQFH
x 6XEPLWVFKRROV¶EXVLQHVVSODQVWRSURYLQFHVEHIRUHIXQGVFDQEHWUDQVIHUUHGWRVFKRROV
x Submit quarterly MST activity reports on equipment, machinery, consumables, maintenance, learner and
teaching support material and training support
x Submit learner performance data for all grades in MST subjects to the district and grant manager
x Ensure that capacity, systems and controls are in place to implement the grant, to receive funds where a
transfer to a school has been agreed upon
x Receive funds from provincial departments of education and manage the procurement, delivery and payment
processes where necessary
x Participate in relevant structures that have been put in place to support implementation of the grant such as
DQQXDOSULQFLSDOV¶PHHWLQJV
x Monitor and ensure quality of work of the service providers and sign-off on the completeness of the service
delivery processes
Process for approval of x The first draft of the consolidated provincial business plans and revised school lists to be submitted to DBE
the 2019/20 business plans for appraisal by 31 October 2018
x The DBE team will meet to evaluate the consolidated business plans by 16 November 2018
x The comments on the business plans will be sent to provinces for amendments by 14 December 2018
x Provinces will be required to submit approved deviations before submitting amended business plans on
01 February 2019
x Provinces will be required to submit the provincially approved amended business plans to DBE by
1 February 2019
x DBE will approve the final business plans by 8 March 2019
x DBE¶VWUDQVIHUULQJRIILFHU approves business plans to be submitted to the National Treasury by
20 March 2019
 139

National School Nutrition Programme Grant

Transferring department x Basic Education (Vote 14)
Grant schedule x Schedule 5, Part A
Strategic goal x To enhance learning capacity and improve access to education
Grant purpose x To provide nutritious meals to targeted schools
Outcome statements x Enhanced learning capacity and improved access to education
Outputs x 19 800 schools that prepare nutritious meals for learners
Priority outcome(s) of x Outcome 1: Quality basic education
government that this
grant primarily
contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
x Risk management plan
Conditions x Spending must be in line with national and provincial business plans
x The budget allocation must be distributed in terms of the following weightings for both secondary and
primary schools:
o school feeding: minimum of 95.3 per cent
o cooking facilities, equipment and utensils: minimum of 0.7 per cent and not exceeding R10 million
o administration: maximum of 3.5 per cent
o nutrtition education (including de-worming and hygiene practices): maximum of 0.5 per cent
x Minimum feeding requirements:
o provide nutritious meals to all learners in quintile 1 - 3 primary and secondary schools, as well as
identified special schools on all school days
o annual meal costs per learner will increase at a minimum of four per cent in all benefiting primary
schools and two per cent for all secondary schools. Far-flung farm and rural schools that are receiving
funds directly should be allocated a higher meal cost to cover higher transport costs
o pay honorarium of a minimum of R 1 188 per person for 12 months, plus R24 to the Unemployment
Insurance Fund for a food handler with a learner ratio of 1:200. Food handlers must be allocated in
line with approved sliding scales submitted with provincial business plans
o comply with approved food specifications and menu specifications consisting of meals containing:
starch, protein and fresh vegetable/fruit
o fresh vegetables/fruits must be served daily and vary between green, yellow and red
o a variety of protein-rich foods must be served in line with approved menu options. Raw sugar beans
must be packed separately from samp, not mixed in one packet
o soya mince should be served once a week and must meet approved specifications
o pilchards mackerel must be served at least once a week. High quality protein products can replace
pilchards in areas where these are not socially acceptable
o ultra-high temperature (UHT) full cream milk or pasteurised maas must be served once a week. Milk
must be approved in line with dairy standards set by Milk South Africa
o provinces must promote sustainable food production and nutrition education
x Provinces must promote local economic empowerment, including procurement of fresh produce from
smallholder farmers. The farmers should be registered with the Department of Agriculture, Forestry and
Fisheries and adhere to good agricultural practices
x Provinces that are transferring funds for meals to schools (Eastern Cape, Free State, Limpopo,
Northern Cape and North West) are required to reconcile expenditure by schools against budget transfers
on a quarterly basis
x Provincial business plans will be approved in line with the above minimum requirements and available
resources. The following variations may be approved by the transferring officer based on achievements
and/or critical challenges in each province:
o feeding days reduced to a minimum of 189 days-feeding cost below the minimum requirements,
provided the quality of meals is not compromised
o reduction in the number of learners due to learner verification
o number of learners that exceed the gazetted quintiles
o serving of processed vegetables or fruit in remote areas
o targeting of learners in quintile 4 and 5 schools
o quintile 1-3 schools that do not feed all learners (Gauteng and Western Cape) need to approved letters
from schools requesting a deviation from whole school feeding must be provided to the provincial
office and kept on record
x Provinces must conduct school needs assessments on cooking facilities, equipment and utensils as per the
equipment specifications provided by the Department of Education (DBE) before 2 May 2018
x The flow of the first instalment of the grant depends upon receipt by the DBE of:
o evidence of transfer of funds to schools in provinces that are transferring funds to schools
o submission of quarterly performance (narrative and indicators) and financial reports
x The flow of the 30 May 2018 instalment of the grant depends upon receipt by the DBE of:
o the provincial needs assessment audit reports on cooking facilities, equipment and utensils
o submission of quarterly performance (narrative and indicators) and financial reports
 140

National School Nutrition Programme Grant

x The flow of the 6 December 2018 and the 30 January 2019 instalments of the grant depend upon receipt by
the DBE of:
o evidence (copies of orders, invoices, etc.) of procured cooking facilities, equipment and utensils
including beneficiary schools
o evidence of procurement of resources to distrct offices in line with approved business plans
o submission of the approved transfer schedules for the 2019/20 financial year by provinces that are
transferring funds to schools
o submission of quarterly performance (narrative and indicators) and financial reports
x Non-compliance with any of the above conditions may result in the withholding and subsequent stopping
of budget transfers
Allocation criteria x The distribution formula is poverty-based in accordance with the poverty distribution table used in the
national norms and standards for school funding as gazetted by the Minister of Basic Education on
17 October 2008
Reasons not incorporated x The National School Nutrion Programme (NSNP) is a government programme for poverty alleviation,
in equitable share specifically initiated to uphold the rights of children to basic food and education
x The conditional grant framework enables the DBE to play an oversight role in the implementation of all
NSNP activities in schools
Past performance 2016/17 audited financial outcomes
x Of the R6.1 billion allocated to provinces, R6.1 billion (99.7 per cent) was transferred to provinces, of
which R5.8 billion (96.2 per cent) was spent by the end of the financial year
2016/17 service delivery performance
x 9 million learners were provided with meals in 20 300 primary, secondary and special schools. Primary
school learners were also de-wormed to maximize absorption of nutrients
x 55 168 volunteer food handlers prepared meals for learners
x 4 148 small medium entreprises and local cooperatives were contracted to supply food to learners
Projected life x It is envisaged that, given the levels of poverty in the country and the impact of various health conditions
such as HIV and Aids, diabetes and debilitating chronic conditions, the need for such a grant will persist
for at least another 10 years. The programme ensures learners from the poorest communities have decent
opportunities to learn
MTEF allocations x 2018/19: R6.8 billion; 2019/20: R7.2 billion and 2020/21: R7.7 billion
Payment schedule x The payment schedule will be in line with respective provincial procurement models as follows:
o provinces that transfer funds directly to all schools (Eastern Cape, Free State, North West and
Northern Cape) receive five instalments as follows: 10 April 2018; 23 May 2018; 21 June 2018;
13 September 2018 and 6 December 2018
o provinces that procure from service providers on behalf of schools receive five instalments as follows:
10 April 2018; 23 May 2018; 19 July 2018; 19 October 2018 and 30 January 2019
o the 30 May 2018 budget transfer is for cooking facilities, equipment and utensils as per equipment
specifications provided by the DBE
Responsibilities of the Responsibilities of the national department
transferring officer and x Develop and submit approved national business plans to the National Treasury
receiving officer x Evaluate, approve and submit provincial business plans to the National Treasury
x Manage, monitor and support programme implementation in provinces and districts
x Ensure compliance with reporting requirements and NSNP guidelines
x Transfer funds to provinces in line with the approved payment schedule
x Consolidate and submit quarterly performance reports to the National Treasury within 45 days after the
end of each quarter
x Evaluate performance of the conditional grant and submit an evaluation report to the National Treasury
four months after the end of the financial year
Responsibilities of provincial departments
x Develop and submit approved business plans to the DBE. The business plans should include databases
reflecting distribution of volunteer food handlers and cooking fuel per school
x Monitor and provide support to districts/regions/area project officers and schools
x Manage and implement the programme in line with the 2018 Division of Revenue Act and the Public
Finance Management Act
x Ensure that districts are resourced in line with provincial business plans to conduct effective monitoring
and support to schools in line with Goal 27 of the Action Plan to 2019, Towards the Realisation of
Schooling 2030
x Consult districts on the development and implementation of the provincial business plans
x Implement monitoring and evaluation plans
x Provide human resource capacity at all relevant levels
x Evaluate the performance of the conditional grant annually and submit evaluation reports to the DBE two
months after the end of the financial year
x Submit quarterly financial and performance reports including consolidated monitoring, reporting and
response system (MRR) reports where applicable, to DBE after the end of each quarter
x Provinces that are transferring funds to schools are required to:
o develop and submit 2018/19 transfer schedules reflecting actual dates on which funds will be
transferred to schools by 10 April 2018
 141

National School Nutrition Programme Grant

o reconcile expenditure by schools against budget transfers on a quarterly basis. Reports for June 2018
and December 2018 on actual expenditure by schools should be submitted six weeks after the end of
the quarter
Responsibilities of districts
x Monitor and support schools
x Submit monthly and quarterly reports (narrative and expenditure reports to the provincial department, as
well as reports on expenditure by schools, where applicable). This should include consolidated MRR
reports, where applicable
x Coordinate all NSNP activities in the district
Responsibilites of schools
x Implement the programme in line with the conditions of the NSNP framework
x Submit reports to districts as per the provincial reporting requirements, i.e. performance and expenditure
reports
x Safeguarding of programme resources, i.e. cooking facilities, equipment and utensils
Process for approval of x Planning meeting by 20 July 2018
the 2019/20 business x Consultation with district officials, provincial treasuries, provincial finance sections and the National
plans Treasury
x Inter-provincial meeting to be held in October 2018 to consult provinces on the 2019/20 conditional grant
framework
x Provinces submit first draft business plans to the DBE by 2 November 2018
x DBE to evaluate first draft business plans and send comments to provinces by 27 November 2018
x Provinces submit final business plans to DBE by 29 January 2019
x The transferring officer to approve national and provincial business plans by 29 March 2019
 142

School Infrastructure Backlogs Grant

Transferring department x Basic Education (Vote 14)
Grant schedule x Schedule 6, Part A
Strategic goal x The eradication of inappropriate education structures and backlogs in basic services
Grant purpose x Eradication of all inappropriate school infrastructure
x Provision of water, sanitation and electricity to schools
Outcome statements x Improved access to enabling learning and teaching environments
x Build the capacity of provinces benefiting from an indirect grant allocation to carry out this function in
the future
Outputs x Eradication and replacement of 50 inappropriate schools and provision of related school furniture
x 286 schools provided with water
x 325 schools provided with sanitation
Priority outcome(s) of x Outcome 1: Quality basic education
government that this grant
primarily contributes to
Details contained in the x This grant uses an infrastructure programme management plan (IPMP) that includes the following:
infrastructure programme o institutional framework
management plan o procurement and contract management plan
o scope management
o time management plan
o cost management plan
o risk management plan
o quality management plan
o monitoring and reporting details
o budgeting and programme accounting details
o performance management plan
o communication management plan
Conditions x This is an in-kind grant administered by the national Department of Basic Education (DBE) that may be
transferred to a province through the Education Infrastructure Grant (EIG) if the province is able to
demonstrate, through a proven track record, that it has the capacity to implement the projects
x DBE must submit an IPMP
x Programme governance will be conducted by the following committees established to ensure that various
processes are initiated within the programme:
o national steering committee
o technical committee
o project steering committee
o infrastructure bid specification and evaluation committee
o infrastructure bid adjudication committee
x The provincial planning and monitoring teams (PPMTs) or equivalent in each province should meet
monthly to ensure information flows between the stakeholders; unblock processes; monitor progress; and
enhance cooperation
x DBE must submit monthly project reports with cash flow to National Treasury 15 days after the end of
each month, that shows how actual payments and cash flow reconcile with the projected cash flow
schedule and explain any deviations from the original projected cash flow
x Assets will be transferred to custodians in the respective provinces at final completion. The provincial
Departments of Education (PEDs) must report in their annual report and describe how the schools have
been considered in their future maintenance plans
x The DBE must agree in writing with the provinces on projects that they will administer on behalf of each
province
x The department and/or implementing agents must ensure skills transfer takes place as part of the
implementation of projects
Allocation criteria x The grant allocation is based on the distribution of inappropriate structures and schools without access to
water, sanitation and electricity across provinces
x Final allocations will be based on the finalised IPMP of the DBE as approved by the transferring officer
Reasons not incorporated in x This is a specific purpose grant to eradicate the basic safety norms backlogs in schools without water,
equitable share sanitation and electricity, and to replace those schools constructed from inappropriate material including
mud schools to contribute towards improved learning and teaching. The grant will be administered by the
DBE to achieve maximum impact in the shortest time possible
Past performance 2016/17 audited financial performance
x Allocated and transferred R2 billion of which R1.1 billion (55 per cent) was spent by the end of the
national financial year
2016/17 service delivery performance
x 184 new schools built, 635 schools provided with water, 450 schools provided with sanitation and 335
schools provided with electricity
Projected Life x The grant will be reviewed on an ongoing basis to respond to the nature of the infrastructure projects and
the ability of provinces to take over
MTEF allocations x 2018/19: R1.5 billion; 2019/20: R1.3 billion and 2020/21: R969 million
 143

School Infrastructure Backlogs Grant

Payment schedule x Payments will be made according to verified invoices from service providers or advance payments in line
with approved memoranda of agreements, implementation plans and reviewed monthly cash flow
projections from implementing agents
Responsibilities of the Responsibilities of the national department
transferring officer and x Undertake planning of processes, activities, and Accelerated School Infrastructure Delivery Initiative
receiving officer (ASIDI) programme policies required to realise the outputs and identify required resources
x Undertake the necessary procurement measures to secure the services of implementing agents,
professional service providers, contractors and secondary procurement objectives to respond to the scope
of work identified in the IPMP
x Monitor and evaluate performance of the programme support unit, implementing agents, conduct project
site inspections at selected sites to verify progress and quality of the works to secure programme outputs
and deliverables
x Harness the opportunities offered through the programme to contribute towards skills development
x The DBE must submit a draft skills transfer and capacity building plan for Schedule 6, Part A allocations
to National Treasury by 29 June 2018; a final plan must be submitted to National Treasury by
31 August 2018. The skills transfer and capacity building plan must set out how the capacity of
benefiting provinces will be developed so that they can continue to perform the function after the
Schedule 6, Part A funded project ends. The plan must set measurable targets that will be achieved over
the 2018 medium-term expenditure framework. The plan must set out how existing and new capacity
building initiatives will be used to achieve these targets
x The DBE must submit an annual assessment of progress against its skills transfer and capacity building
plan to National Treasury two months after the end of the national financial year
x DBE will convene and chair meetings of the national steering committee which will:
o provide strategic direction to the ASIDI programme
o provide general oversight on the programme
o ensure that the management of the programme brings together those players responsible for different
elements of project success and ensure a holistic approach in support of the programme
o ensure that standards are in line with different prescripts e.g. norms and standards for school
infrastructure are adhered to
o facilitate the establishment of sub-programme management, their membership, reporting modalities
and their interaction with the steering committee
o establish the modalities linking the targeted PEDs with DBE
o supervise the programme and ensure appropriate coordination and cooperation between different
agencies and departments involved
o facilitate the linkages between national stakeholders such as the National Treasury (infrastructure
delivery improvement plan), Construction Industry Development Board, and the national Department
of Human Settlements, Water and Sanitation, Energy, and Public Works
o ensure ASIDI strategies and targets are in line with national goals and targets
o monitor progress in terms of national goals and targets
o assist the management of the programme in solving particular issues that may arise and that may
require the intervention of the committee
o report to the Minister of Basic Education, the Council for Education Ministers, the Heads of
Education Departments Committee, and senior management
x Develop a sector procurement strategy and procurement strategy for this grant in terms of the practice
guide prescribed by the infrastructure delivery management toolkit
x The DBE will develop a procurement strategy for this grant that will lead to the quickest possible
achievement of the grant objectives which may require the clustering of projects across provincial
boundaries
x Submit an approved IPMP including projects list to the National Treasury
x Ensure compliance with reporting requirements and adherence to projected cash flow schedules
x Consolidate and submit quarterly reports to National Treasury and National Council of Provinces within
45 days after the end of each quarter
x Conduct site visits to selected projects to assess performance
x Create the necessary organisational structures and build capacity within the department to oversee and
monitor the implementation of the grant
x The DBE must ensure that the heads of education departments committee meets at least once a month
and is provided with sufficiently detailed reports to assess project implementation and projected cash
flow schedules reconciled at the end of the month preceding the monthly meetings
x Provide an operations and maintenance manual to the PEDs
 144

School Infrastructure Backlogs Grant

Responsibilities of provincial departments
x Provide the list of schools to be included in the ASIDI programme
x Ensure that the list of schools identified includes all the schools in their entirety that were not constructed
of appropriate materials in their entirety
x Ensure that the list of schools identified includes all the schools that never had basic sanitation, water and
electricity
x Ensure that, where schools are identified for rationalisation and mergers, DBE is made aware on time, in
writing, and that all necessary supporting documents are provided
x Establish PPMTs that will provide support to the DBE when implementing projects funded by this grant
x Convene the PPMTs and report to the national steering committee
x Generate a maintenance plan from the operations and maintenance manual provided
Process for approval of the x Submission to National Treasury by DBE of the IPMP for 2019/20 projects by 15 February 2019
2019/20 Infrastructure
Programme Management
Plan (IPMP)
 145

COOPERATIVE GOVERNANCE GRANT

Provincial Disaster Relief Grant

Transferring department x Cooperative Governance and Traditional Affairs (Vote 4)
Grant schedule x Schedule 7, Part A
Strategic goal x To enable a timely response to needs after a disaster has occurred
Grant purpose x To provide for the release of funds for disaster response
Outcome statements x Consequences of disasters are mitigated
Outputs x Emergency repair of critical infrastructure
x Emergency provision of goods and services
Priority outcome(s) of x Outcome 12: An efficient, effective and development oriented public service
government that this grant
primarily contributes to
Details contained in the x Applications for funding from this grant use the National Disaster Management Centre (NDMC) disaster
business plan grant guideline which includes the following:
o copy of the classification letter in terms of the Disaster Management Act
o copy of the declaration of a state of disaster in terms of the Disaster Management Act
o number of people affected and the extent of damages and losses
o sectors affected
o total funds required for disaster response
o resources (both financially and in-kind) allocated by the province to respond and mitigate the effects
of the disaster
o resources (both financially and in-kind) allocated by other role players, including municipalities,
national departments and non-government organisations
o the affected provincial sector department must indicate funds spent or contributed towards dealing
with the disaster
o support received from non-government organisations and businesses or any other stakeholder
o copy of the applicable contingency plan and emergency procedures in use by the province (Section
35(1)(d) of the Disaster Management Act)
o cost-benefit analysis of the projects to be implemented
x Implementation plan with the following:
o details of the projects to be repaired including GPS coordinates
o cost of the project
o consolidated projects cash flow over a three months period as an annexure to the implementation
plan
x An initial funding application from the Provincial Disaster Relief Grant may be based on the initial
disaster assessment and verification (draft versions of the supporting documentation required above may
be accepted for the initial application)
Conditions x Copies of the declaration notice and classification letter in terms of the Disaster Management Act must
be submitted to the NDMC
x This grant may only be used to fund expenditure in the event that the responsible line function organ of
state is unable to deal with the effects of the disaster utilising own legislation/ guidelines and resources
x Funds from this grant must be utilised within three calendar months following the date of the transfer of
the funds to the province
x A provincial department may request the NDMC to apply to the National Treasury to approve that an
allocation be utilised more than three calendar months after the date of transfer, in terms of section
26(3)(d) of the Division of Revenue Act
x Emergency procurement system as provided for in the Public Finance Management Act should be
invoked to ensure assistance to the affected communities
Allocation criteria x The grant is allocated for declared and classified disasters based on reports from assessments conducted
by the NDMC and the relevant Provincial Disaster Management Centre (PDMC) and affected sectors of
immediate disaster relief needs. Additionally it must be established that there are immediate disaster
relief needs that cannot be met by the province through the contingency arrangements already in place.
The Accounting Officer for the relevant organ of state must indicate in their application that the total
funds required from the grant for disaster response exceed the available resources and or resources
already allocated for disaster relief. Funding may however be released in tranches, with the first tranche
based on an initial assessment, verification of the immediate disaster relief needs and the submitted cash
flow projection
Reasons not incorporated in x This grant caters for response and relief from unforeseen and unavoidable disasters
equitable share
Past performance 2016/17 audited financial outcomes
x Of the R112 million allocated, no transfers were made
 146

Provincial Disaster Relief Grant

2016/17 service delivery performance
x There were no transfers
Projected life x This grant is expected to continue over the 2018 medium term expenditure framework, but will be
subject to review
MTEF allocations x 2018/19: R124 million; 2019/20: R131 million and 2020/21: R138 million
Payment schedule x Transfers are made subject to approval by National Treasury
Responsibilities of the Responsibilities of the National Disaster Management Centre:
transferring officer and x Conduct a preliminary cost verification and submit an initial request to the National Treasury within
receiving officer 14 days of receiving a written funding request or a submission that meets the conditions
x Confirm support to be provided by relevant national sector departments to prevent duplication of support
and resources
x Seek approval from National Treasury for the disbursement of funds to provincial sector departments
within 35 days of receipt of the written funding request and submission of the preliminary report from
the PDMC
x Notify the relevant PDMC and provincial treasury of a transfer at least 2 days before transfer. Funds
must be transferred no later than five days after notification
x Provide National Treasury with written notification of the transfer within 14 days of a transfer of the
grant
x Submit financial and non-financial reports to National Treasury within 20 days of the end of each month
x Provide a performance report, within 45 days of the end of the quarter in which the funds were spent, to
National Treasury using the disaster allocation monitoring template agreed to with the National Treasury
x Together with the PDMC monitor the implementation of disaster funded projects
Responsibilities of Provincial Disaster Management Centres
x Together with the affected provincial departments, conduct initial assessments of disaster impacts to
verify the applications for initial funding within 14 days following the occurrence of a reported incident
that meets the conditions
x Conduct assessments of disaster impacts together with NDMC and the affected provincial departments,
to verify applications for funding, within 35 days of the incident while adhering to the requirements of
the Disaster Management Act
x Confirm support to be provided by relevant provincial sector departments to prevent duplication of
support and resources
x Submit requests for disaster funding, monitor projects and provide reports to the NDMC, and the
relevant provincial treasury
x Provide financial reports to NDMC within 15 days of the end of each month
x Provide a performance report which includes evidence on progress implementation of the projects to the
NDMC within 35 days of the end of the quarter in which funds are spent
x Provide a performance report, within 30 days of the end of the quarter in which the funds were spent, to
NDMC using the relevant disaster grant allocation-reporting template
x Monitor the implementation of funded disaster project by sectors
x Establish provincial project steering committees
Responsibilities of provincial departments
x Cooperate with the NDMC, PDMC and the sector department to conduct damage assessment and cost
verification
x Sector departments to submit the relevant contingency plans
x Submit initial request for funding to the PDMC within 14 days following the declaration of a disaster
x Consult with the relevant national sector departments and provincial treasuries for support on existing
resources to address the disasters
x Consult with relevant national sector department on funding request before submission to the PDMC
x Notify provincial treasury of all submitted requests for funding
x Ensure sector departments invoke emergency procurement processes to implement the immediate
disaster projects
x Report and monitor implementation of projects
x Provide a financial and non-financial report to the PDMC and relevant national sector department within
10 days of the end of each month. Include evidence in the form of invoices and pictures of the projects as
annexures
x Provide a performance report which includes evidence, and progress on implementation of the projects,
to the PDMC and relevant national sector department within 20 days of the end of the quarter in which
funds are spent
Responsibilities of the national department
x Provide support and guidance to provincial sector departments and NDMC regarding line function
related matters on assessments and costing verifications
 147

Provincial Disaster Relief Grant

x Sector departments to submit the relevant contingency plans
x Provide support and guidance to provincial sector and NDMC in the preparation of funding requests
x Provide support and guidance to provincial sector departments in the preparation of reports and ensure
compliance to the guidelines
x Monitor and evaluate implementation of projects by provincial sectors
Process for approval of x Not applicable
2019/20 business plans
 148

HEALTH GRANTS

Comprehensive HIV, AIDS and TB Grant

Transferring department x Health (Vote 16)
Grant schedule x Schedule 5, Part A
Strategic goal x The implementation of the National Strategic Plan on the HIV, Sexually Transmitted Infections
and Tuberculosis (TB) 2017 ± 2022
x There are two components to this grant that allows for the achievement of the stated strategic
goal
o Comprehensive HIV, AIDS and TB component
o Community Outreach Services component (with a separate framework)
Grant purpose x To enable the health sector to develop and implement an effective response to HIV and AIDS
and TB
x To fund Community Outreach Services
x Prevention and protection of health workers from exposure to hazards in the work place
Outcome statements x Improved coordination and collaboration in the implementation of Comprehensive HIV, AIDS
and TB grant between national and provincial government
x Improved quality of HIV and AIDS and TB services including access to:
o HIV counselling and testing
o TB case finding, screening and diagnosis
o Antiretroviral Treatment (ART)
o treatment for TB, including drug-resistant TB
o adherence monitoring and support
o prevention of TB
o prevention of mother-to-child-transmission
o medical male circumcision
x Improved health workers capacity at provincial and district levels
x Strengthened health system
Outputs x Number of new patients started on ART
x Total number of patients on ART remaining in care
x Number of male condoms distributed
x Number of female condoms distributed
x Number of exposed infants HIV positive at 10 weeks Polymerase Chain Reaction test
x Number of clients tested for HIV (including antenatal)
x Number of medical male circumcision performed
x Number of patients on ART initiated on Isoniazid Preventative Therapy
x Number of clients initiated on new generation multi-drug resistant and extensive drug resistant
regiment
x TB symptom clients screened in facility rate
x TB client start on treatment rate
x TB client treatment success rate
x TB Rifampicin Resistant confirmed treatment start rate
x TB multi-drug resistant treatment success rate
x Number of adherence clubs
x Number of patients participating in adherence clubs
x Community health workers trained
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x The following priority areas must be supported through the grant:
o ART related interventions
o care and support
o condom distribution and high transmission area interventions
o post exposure prophylaxis
o prevention of mother to child transmission
o programme management strengthening (PMS)
o regional training centres
o HIV counselling and testing
o medical male circumcision
o TB screening, prevention, treatment
 149

Comprehensive HIV, AIDS and TB Grant

Allocation criteria x Allocations are based on antenatal HIV prevalence, estimated share of AIDS cases and
population numbers post-demarcation
Reasons not incorporated in x HIV, AIDS and TB are key national priorities and require a coordinated responses for the
equitable share country as a whole and is effectively achieved through a conditional grant
Past performance 2016/17 audited financial performance
x Allocated and transferred R15.3 billion to provinces of which R15.3 billion (100 per cent) was
spent by provinces by the end of the national financial year
2016/17 service delivery performance
x 834 165 new patients that started on ART
x 3.8 million patients on ART remaining in care
x 917 million male condoms distributed
x 26 million female condoms distributed
x 151 084 of the infants exposed to HIV got a Polymerase Chain Reaction test at 10 weeks
(59 per cent)
x 14 million clients tested for HIV (including antenatal)
x 413 880 Medical Male Circumcision performed (59 per cent)
x 384 563 new patients on ART initiated on isoniazid preventative therapy (67 per cent)
x 2 997 patients on bedaquiline
Projected life x Ongoing in line with National Strategic Plan on HIV and AIDS
MTEF allocations x 2018/19: R19.9 billion; 2019/20: R22 billion and 2020/21: R24.4 billion
x Of this baseline the following is served for the Community Outreach Services component:
2018/19: R1.4 billion; 2019/20: R1.5 billion and 2020/21: R1.5 billion
Payment schedule x Monthly instalments based on the approved payment schedule
Responsibilities of the Responsibilities of the national department
transferring officer and x Visit provinces twice a year to monitor implementation and provide support
receiving officer x Report to the National Treasury on an additional set of indicators agreed upon between the two
departments
x Meet with National Treasury to review grant performance on a quarterly basis
Responsibilities of provincial departments
x Quarterly performance output reports to be submitted within 30 days following the reporting
period using standard formats as determined by the national department. Submit an electronic
version to be followed by a hard copy signed by the provincial grant receiving manager
x Clearly indicate measurable objectives and performance targets as agreed with the national
department in provincial departmental business plans for 2018/19 and over the medium term
expenditure framework
Process for approval of the x Submission of draft business plans to national Department of Health by 31 October 2018
2019/20 business plans x Submission of final business plans to national Department of Health by 28 February 2019
x Submission of final business plans to National Treasury by 29 March 2019
 150

Comprehensive HIV, AIDS and TB Grant: Community Outreach Services Component

Transferring department x Health (Vote 16)
Grant schedule x Schedule 5, Part A
Strategic goal x To improve access to community based primary health care (PHC) services
x To improve quality of services at PHC level
Grant purpose x To ensure provision of quality community outreach services through Ward Based Primary Health Care
Outreach Teams (WBPHCOTs)
x To improve efficiencies of the WBPHCOTs programme by harmonising and standardising services and
strengthening performance monitoring
Outcome statements x Improved access and quality to community based PHC services
x Improved monitoring and evaluation of WBPHCOTs
x Improved coordination and management of the programme
Outputs x Number of functional WBPHCOTs
x Number of community health workers receiving stipends
x Number of outreach team leaders employed
x Number of TB defaulters traced
x Number of HIV defaulters traced
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x Input
business plan x Output indicators
x Milestones with projected dates when this will be achieved
x Description of how the project will be managed including roles and responsibilities of national and
provincial departments
x Key activities and resource schedule
x Cash flow projections
Conditions x Completion of a business plan signed by the receiving officer and submitted to the transferring officer by
28 February 2018, and signed by transferring officer and submitted to the National Treasury by
30 March 2018
x All contracted non-governmental organisations receiving funding from this grant must have a service
level agreement with the relevant provincial department of health including performance indicators
x Provinces that have contracted implementing partners for the programme should make transfer payments
as per the stipulations of section 8.4 of the Treasury regulations and section 38(1)(j) of the Public Finance
Management Act
Allocation criteria x Allocation is based on the number of established WBPHCOTs per province which is based on the number
of people in the wards where services of community health workers are needed
Reasons not incorporated in x Community outreach services is a national priority that requires systematic, focused and monitored
equitable share implementation in order to achieve the desired outputs and outcomes across the country and to have the
desired impact of improving quality health care services
Past performance 2016/17 audited financial outcome
x New grant component
2016/17 service delivery performance
x New grant component
Projected life x Subject to policy developments that will be finalised as part of the implementation of the National Health
Insurance
MTEF allocations x 2018/19: R1.4 billion; 2019/20: R1.5 billion and 2020/21: R1.5 billion
Payment schedule x Monthly instalments based on the approved payment schedule
Responsibilities of the Responsibilities of the national department
transferring officer and x Manage, monitor and support community outreach services planning and implementation
receiving officer x Report quarterly to the National Treasury on an additional set of indicators agreed upon between the two
departments
Responsibilities of provincial departments
x Clearly indicate measurable objectives and performance targets as agreed to between the national
department and provincial departments, in the provincial departmental business plan for 2018/19 and over
the MTEF
x Provide a list of contracted non-governmental organisations to provide the service
x Provincial health departments must provide the national Department of Health with full and unrestricted
access to all records and data related to the programme and must facilitate the achievement of grant
outputs
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Comprehensive HIV, AIDS and TB Grant: Community Outreach Services Component

x Include the indicators in the provincial annual performance plans and ensure compliance with the 2018
Division of Revenue Act
x Programme to be managed as part of the HIV/AIDS & TB grant by the provincial grant manager however
each province must assign an official to manage the Community Outreach Services component
Process for completion of x Receiving officer to submit the signed business plan to the transferring officer by 28 February 2019
2019/20 business plan x Transferring officer to make these available to the National Treasury by 29 March 2019
 152

Health Facility Revitalisation Grant

Transferring department x Health (Vote 16)
Grant schedule x Schedule 5, Part A
Strategic goal x To enable provinces to plan, manage, and transform health infrastructure in line with national and
provincial policy objectives
Grant purpose x To help accelerate construction, maintenance, upgrading and rehabilitation of new and existing
infrastructure in health including, health technology, organisational development systems and quality
assurance
x To enhance capacity to deliver health infrastructure
x To accelerate the fulfilment of the requirements of occupational health and safety
Outcome statements x Improved service delivery by provincial departments as a result of an enhanced and better quality of health
services
x Improved quality and quantity of well-maintained health infrastructure (backlog and preventative
maintenance)
x Improved rates of employment and skills development in the delivery of infrastructure
x Value for money and cost effective design of facilities in line with the Standard for Infrastructure
Procurement and Delivery Management (SIPDM)
Outputs x Number of new facilities completed
x Number of facilities maintained
x Number of facilities upgraded and renovated
x Number of facilities commissioned in terms of health technology
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x The business plan for this grant consists of the following:
business plan o the user-asset management plan (U-AMP) for at least 10 years
o infrastructure programme management plan (IPMP) over the 2018 MTEF including a list of projects
o annual implementation plan (AIP)
Conditions x Projects should be initiated in terms of the control framework of the SIPDM stage 0 which requires an
initiation report. Pre-feasibility and feasibility reports are required for all projects
x With the exception of funding for costs incurred on stages 0, 1 and 2 of SIPDM, projects must be approved
by the transferring officer before funds can be released for such projects
x The management and procurement of all projects funded through this grant must follow the prescripts of
the Infrastructure Delivery Management System and SIPDM
x Annual Implementation Plans signed-off by the Head of Department, sent to the national Department of
Health (DoH) for approval by 6 March 2018
x The 2018 MTEF project list as captured in the AIP for both current and capital budgets should cover:
o maintenance of infrastructure
o renovations, upgrading and additions of infrastructure
o new and replacement of infrastructure
x Provinces may utilise a portion of grant funding for the appointment of public servants on permanent basis
to their infrastructure units in line with human resource capacitation circular published by National
Treasury
x In instances where the capacity of the provincial departments of Public Works is deemed insufficient, the
provincial department of Health will be entitled to engage alternative implementing agents, provided that
supply chain management processes as prescribed in the Treasury Regulations for appointment of service
providers are followed
x Provincial departments of health must enter into a service delivery agreement with their implementing
agents
x Appropriately qualified built environment representatives from the provincial departments¶ infrastructure
units must assist in the procurement of professional service providers and contractors by its implementing
agent, through representation as a member on the specification and evaluation committees of the
implementing agent
x As from 2018/19 financial year, new facilities will only be funded from the grant if proof of operational
budget that includes the approved organisational structure (staff structure) is submitted prior to the
approval of the clinical brief. Endorsement of the operational budget by the provincial health department
will have to be acquired as part of the approval
Allocation criteria x Allocations for 2018/19 are project and performance based
Reasons not incorporated in x Funding infrastructure through a conditional grant enables the national department to ensure the delivery,
equitable share rehabilitation, maintenance and upgrading of health infrastructure in a coordinated and efficient manner
and ensure consistency with national norms, standards and guidelines for health facilities
Past performance 2016/17 audited financial outcomes
x Of the R5.4 billion made available R5.3 billion was transferred to provinces (96.2 per cent) of which
R5.2 billion was spent (95.1 per cent) by provinces
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Health Facility Revitalisation Grant

2016/17 service delivery performance
x Number of Projects:
o planned 33
o equipped 33
o constructed 12
o maintained 31
Projected life x Health is a key government priority and given the need to continually maintain health infrastructure to
ensure that norms and standards are maintained, the grant will remain in place until at least the end of the
2018/19 MTEF
MTEF allocations x 2018/19: R5.8 billion; 2019/20: R6 billion and 2020/21: R6.4 billion
Payment schedule x Transfers are made on a quarterly basis in accordance with a payment schedule approved by National
Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Coordinate and facilitate site visits
receiving officer x Attend quarterly provincial infrastructure progress review meetings with National Treasury
x Provide guidance to provinces on planning, prioritisation and evaluating of U-AMP, IPMP, AIP, project
proposals and concept reports that provinces develop and submit
x Review if provinces comply with the SIPDM
x Issue guidelines on the capacitation process of infrastructure units, as well as the conditions attached to the
utilisation of funds
x DoH and National Treasury must jointly evaluate progress with 2018 Division of Revenue Act capacitation
of provincial infrastructure units and provide feedback to all provinces
x DoH must submit quarterly infrastructure reports to National Treasury, according to the agreed template
between National Treasury and DoH, within 45 days after the end of each quarter
Responsibilities of provincial departments
x Provincial departments must hold progress review meetings with the relevant implementing agents
x Provinces must submit to national DoH quarterly reports for all projects funded in the 2018/19 financial
year in this grant through the project management information system and infrastructure reporting model
x Provincial departments of Health must align infrastructure plans (U-AMP and IPMP) with their respective
Strategic Plans and Annual Performance Plans
x Provinces will include completed projects in their asset register
x Provinces should undertake life cycle maintenance as well as the full operation, staffing and management
of the projects in facilities completed under this grant
Process for approval of the x The process for approval for the 2019 MTEF will be in line with the performance based incentive approach
2019/20 Implementation guidelines published by National Treasury and national DoH
Plans x Provincial departments of Health must submit 2018/19 AIP signed-off by the Head of Department to the
DoH by 6 March 2019
x Submission of draft IPMPs for 2018/19 by DoH to National Treasury by 10 August 2018
x Submission of final IPMPs for 2018/19 by DoH to National Treasury by 6 March 2019
 154

Health Professions Training and Development Grant

Transferring department x Health (Vote 16)
Grant schedule x Schedule 4, Part A
Strategic goal x To contribute to the implementation of the national human resource plan for health through the clinical
training and supervision of health science trainees in designated public health facilities in South Africa
Grant purpose x Support provinces to fund service costs associated with clinical training and supervision of health science
trainees on the public service platform
Outcome statements x Progressive realisation of the national human resource plan for health
x Clinical training and supervision capacity established in designated developmental provinces (Northern
Cape, North West, Limpopo, Mpumalanga and Eastern Cape)
Outputs x To report on the number of clinical supervisors associated with clinical training and supervision of
students, funded on the public health service delivery platform:
o number of specialists
o number of registrars
o number of medical officers
o number of clinical associates
o number of post graduates
o number of clinical supervisors/trainers per category in nursing, emergency medical services (EMS)
and allied health and pharmacy
o number of grant administration staff
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x Non-financial business plan ± number of specialists, registrars, medical officers, clinical
business plan supervisors/tutors per category in nursing, emergency medical services, allied health, pharmacy and grant
administration staff funded from the grant
x Financial business plan ± allocation by economic classification to each category of clinical
trainer/supervisor
Conditions x Submission of an approved business plan in the prescribed format signed by the provincial Head of
Department to the national Department of Health by 28 February 2018, and to the National Treasury by
30 March 2018
x Cost of administration of the grant must not exceed 1 per cent of the total grant allocation
Allocation criteria x Based on historical allocations and spending patterns
Reasons not incorporated in x Provinces give effect to the national human resource strategy by the clinical training and supervision of
equitable share health science trainees on the public health service platform
x National coordination needed for health science training
Past performance 2016/17 audited financial outcomes
x Allocated and transferred R2.5 billion to provinces, of which R2.5 billion (100 per cent) was spent by the
end of the national financial year
2016/17 service delivery performance
x 285 post graduates
x 1 771 registrars
x 413 specialists
x 327 clinical supervisors
x 21 grant management
x 10 resource centre staff
Projected life x The grant is subject to review at the end of the 2018 MTEF. Its projected life will be guided by the need
for health science trainees to be trained and supervised on the public health service platform
MTEF allocations x 2018/19: R2.8 billion; 2019/20: R2.9 billion and 2020/21: R3.1 billion
Payment schedule x Monthly instalments as per approved payment schedule
Responsibilities of the Responsibilities of the national department
transferring officer and x Convene at least one annual meeting of national, provincial and facility programme managers
receiving officer x Monitor the number of health science trainers/clinical supervisors that are responsible for health science
training on the public health service delivery platform
x Conduct a minimum of two site visits to provinces and site visits to selected facilities on a rotational
basis. Provincial visits to include facilities
 155

Health Professions Training and Development Grant

Responsibilities of provincial departments
x Provinces must provide the allocated amounts for individual facilities to the relevant provincial treasury
for gazetting as per the number of agreed upon business plans per province and be facility/cluster
specific, by 26 April 2018
x Provinces must maintain a separate budget for each benefiting facility/cluster
x Each benefiting facility/cluster budget letter must be supplied by the receiving officer to the facility head
by 26 April 2018
x Provinces to monitor the following categories of health science trainers/ clinical supervisors on the
public health service delivery platform by category:
o number of specialists
o number of registrars
o number of medical officers
o number of clinical associates
o number of post graduates
o number of clinical supervisors/trainers per category in nursing, EMS and allied health and pharmacy
o number of grant administration staff
x Submission of updated specialist details funded by the grant at facility level by 30 November 2018
x Submission of updated specialist details funded on the equitable share by 30 November 2018
x Report quarterly (by economic classification) on financial and non-financial performance in the approved
expenditure areas
x Conduct a minimum of two site visits to each budgeted facility/complex per annum and submit reports of
these site visits to the national Department of Health
Process for approval of the x Draft business plans for 2019/20 must be submitted in the approved format by 31 October 2018
2019/20 business plans x Completion of an approved business plans, in the prescribed format, signed by each receiving officer by
28 February 2019 and the transferring officer by 29 March 2019
 156

Human Papillomavirus Vaccine Grant

Transferring department x Health (Vote 16)
Grant schedule x Schedule 5, Part A
Strategic goal x To reduce the incidence of cancer of the cervix through the provision of the Human Papillomavirus (HPV)
vaccination to grade four school girls in all public schools and special schools
Grant purpose x To enable the health sector to prevent cervical cancer by making available HPV vaccination for
grade four school girls in all public and special schools
Outcome statements x Increased access to HPV vaccines by grade four school girls in all public and special schools
Outputs x 80 per cent of grade four school girls aged 9 and above vaccinated for HPV
x 80 per cent of schools with grade four girls reached by the HPV vaccination team
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x The grant uses a business plan and should contain the following:
business plan o agreed upon services
o output indicators
o inputs
o key activities and allocation
o risk management plans
o cash flow management
Conditions x Completion of the business plan in the prescribed format determined by the national Department of Health
(DoH), signed and submitted by each receiving officer to the transferring officer by 28 February 2018 and
submitted to National Treasury by 30 March 2018
x Ensure provinces include HPV vaccination indicators in provincial annual performance plans
x Grant funding must also be used to strengthen capacity in provinces to manage the programme
x Social mobilisation to promote the uptake of HPV vaccination to prevent cervical cancer should be done as
part of this programme
x In the 2019/20 financial year, the target group for vaccination will be grade five girls
Allocation criteria x Allocations based on the number of grade four girls and schools with grade four from the education
management information system in each province
Reasons not incorporated x Cervical cancer is a high national priority and requires uniform implementation in order to achieve the
in equitable share minimum coverage of 80 per cent and have the desired impact of significantly reducing incidences of
cervical cancer
x To develop provincial capacity in order for provinces to assume responsibility of the programme from
2018/19
Past performance 2016/17 audited financial outcome
x Allocated R190 million and of which R190 million (100 per cent) was spent by the end of the national
financial year
2016/17 service delivery performance
x 63 per cent of eligible grade four school girls received the HPV vaccination
x 75 per cent of schools with grade four girls reached by the HPV vaccination team
Projected life x Grant will continue until 2020/21, thereafter subject to review
MTEF allocations x 2018/19: R200 million; 2019/20: R211 million and 2020/21: R223 million
Payment schedule x Payment will be made according to the approved payment schedule
Responsibilities of the Responsibilities of the national department
transferring officer and x Manage the contracts for vaccine and supporting information systems
receiving officer x Monitor and support provincial planning and implementation and meet the province twice a year to review
performance
x Meet with National Treasury to review performance of the grant on a quarterly basis
x Strengthen the capacity of provinces to deliver the HPV vaccination programme
Responsibilities of the provincial department
x Provincial health departments must provide DoH with full and unrestricted access to all records and data
related to the programme
x Assign a dedicated official the responsibility of managing the HPV vaccination programme
x Where possible utilise existing human resource and transport capacity at all relevant levels and augment
capacity where needed on a contractual basis
Process for completion of x Draft business plans for 2019/20 must be submitted in an approved format by 31 October 2018
2019/20 business plan x Final business plans signed by each receiving officer and the transferring officer by 28 February 2019 and
submitted to the National Treasury by 29 March 2018
 157

National Health Insurance Indirect Grant: Health Facility Revitalisation Component

Transferring department x Health (Vote 16)
Grant schedule x Schedule 6, Part A
Strategic goal x To ensure appropriate health infrastructure that is in line with national and provincial policy objectives
Grant purpose x To create an alternative track to improve spending, performance as well as monitoring and evaluation on
infrastructure in preparation for National Health Insurance (NHI)
x To enhance capacity and capability to deliver infrastructure for NHI
x To accelerate the fulfilment of the requirements of Occupational Health and Safety
Outcome statements x Appropriate procurement of service providers for infrastructure delivery for NHI
x Improved spending, performance, monitoring and evaluation of infrastructure projects for NHI
x Improved employment and skills development in the delivery of infrastructure for NHI
x Value for money and cost-effectively designed facilities in line with the standard for infrastructure
procurement and delivery management (SIPDM)
Outputs x Number of new facilities completed
x Number of facilities maintained
x Number of facilities upgraded, and additions
x Number of facilities renovated and refurbished
x Number of facilities commissioned in terms of health technology
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x The infrastructure programme management plan (IPMP) for the 2018 MTEF aligned to the infrastructure
business plan delivery management system and SIPDM will be submitted on 28 May 2018 and will include the
following:
o costed project lists with annual cash flow projections per project for the full duration of the projects
on the programme
o projected milestones per project for SIPDM control framework stages indicating current stage of the
project
Conditions: x The national Department of Health (DoH) must, in consultation with the provinces, have in place an
intergovernmental protocol framework covering the 2018 MTEF and outlining how the grant will operate
as well as the responsibility and functions of each sphere. Project sheets will form part of the agreement
x Should there be an amendment to an existing protocol agreement, the amended agreement should be
submitted to the National Treasury by 29 June 2018
x Prior to submitting the IPMP, each provincial department must have signed-off a project sheet for all
projects funded from the grant which list scope of work, current stage and anticipated target dates for
achieving stages of control framework, operational budgets (i.e. personnel, equipment, etc.) and
maintenance budgets
x With all new projects, DoH must comply with SIPDM processes
x For projects with a total project cost exceeding R500 million, DoH should convene a gateway review at
the end of SIPDM stage 3. National Treasury should be invited to participate in such a review
x The grant component must only be spent on projects included in the business plan and project lists signed
by provinces. Projects can only be added to the business plan as part of the adjustment budget process,
subject to National Treasury approval
x In instances where the capacity of the DoH and the provincial department are deemed insufficient, DoH
is entitled to engage alternative implementing agents, provided that supply chain management processes
as prescribed in the Treasury Regulations for the appointment of service providers are followed. In those
cases, service level agreements between DoH and the implementing agent must be in place
x Appropriately qualified built environment representatives from the national department must assist in the
procurement of professional service providers and contractors by its implementing agent
x DoH may utilise a portion of grant funding for the appointment of public servants on 36-month contracts
to their infrastructure units. The amount that can be used for this is determined in terms of the conditions
by the 2018 Appropriation Act
x DoH must convene quarterly progress review committee meetings with all project managers,
implementing agents and National Treasury for monitoring and oversight of the performance of all
funded projects
x All completed projects must have a close-out report with a documented maintenance plan
x New facilities will only be funded from the grant if proof of operational budget that includes the
approved organisational structure (staff structure) is submitted prior to the approval of the clinical brief.
Endorsement of the operational budget by the provincial department must be acquired as part of the
approval
Allocation criteria x Allocations for 2018/19 are project based
Reasons not incorporated in x Funding infrastructure through an indirect conditional grant enables the national department to ensure the
equitable share delivery and maintenance of health infrastructure in a coordinated and efficient manner that is consistent
with national norms, standards and guidelines for health facilities
 158

National Health Insurance Indirect Grant: Health Facility Revitalisation Component

Past performance 2016/17 audited financial outcomes
x Allocated R697 million of which R686 million (98 per cent) was spent by the end of the financial year
2016/17 service delivery performance
x 67 facilities maintained, repaired or refurbished in the backlog maintenance programme
x 61 doctors¶ consulting rooms constructed or partially constructed
x 20 clinics and community health centres in process that comply with gazetted infrastructure norms &
standards, either constructed or partially constructed over multiple years
x One incomplete housing project
x Total projects: 338
o initiation and planning (88);
o tendered (16);
o construction and retention (124);
o closed out (110)
Projected life x Health is a key government priority and given the need to continually maintain health infrastructure and
ensure that norms and standards are maintained, the grant will continue over the 2018 MTEF, subject to a
review
MTEF allocations x 2018/19: R891 million; 2019/20: R941 million and 2020/21: R992 million
Payment schedule x Monthly payments made according to verified and approved invoices from the services providers
Responsibilities of the Responsibilities of the national department
transferring officer and x Build and demonstrate the capacity necessary to manage this grant
receiving officer x Ensure alignment between the IPMP and the annual performance plan
x Undertake the infrastructure development cycle to the extent agreed with the provinces in the
implementation protocol agreements
x Convene progress review committees with appropriate reporting and invite National Treasury and
Provinces
x DoH must maintain an up-to-date database (project management information system), infrastructure
reporting model (IRM) with all contracts that are fully or partially funded by this grant and provide the
IRM report on a monthly basis
x Meet with National Treasury to review grant performance on a quarterly basis
x Collaboration and coordination with provincial departments of health for the full development cycle of
infrastructure development in respect of projects funded by this grant
x Provide provincial departments of health with progress of the projects under this grant for inclusion in
provincial annual reports
x DoH must submit quarterly infrastructure reports to National Treasury, according to the agreed template
between National Treasury and DoH, within 45 days after the end of each quarter
Responsibilities of provincial departments
x Provinces will include completed projects in their asset register
x Provinces should undertake life cycle maintenance as well as the full operation, staffing and management
of the projects in facilities completed under this grant by the DoH
x All immovable asset management and maintenance responsibilities of the completed projects under this
grant as prescribed by the Government Immovable Asset Management Act of 2007 rests with the
provinces
x Provinces should report on progress of the projects under this grant in their annual reports and describe
how these facilities have been considered in their future planning and budgeting. The projects must be
included in the provincial user-asset management plans
Process for approval of the x Submission of a draft IPMP to National Treasury by 31 August 2018
2019/20 annual x Submission of the final IPMP to National Treasury by 29 March 2019
implementation plans x Submission of signed implementation protocol by 28 June 2019
 159

National Health Insurance Indirect Grant: Non-Personal Services Component

Transferring department x Health (Vote 16)
Grant schedule x Schedule 6, Part A
Strategic goal x To strengthen the public healthcare system in preparation for National Health Insurance (NHI)
x To strengthen the design of NHI through innovative testing of new reforms
x To improve quality of services at primary health care facilities
Grant purpose x To expand the alternative models for the dispensing and distribution of chronic medication
x To fund the development of and roll-out of the new health information systems in preparation for NHI
x Develop a risk-adjusted capitation model for the reimbursement of primary health care (PHC)
x To enable the health sector to address the deficiencies in the primary health care facilities systematically to
yield fast results
Outcome statements x Expand the alternative dispensing and distribution model for chronic medication
x Improved quality health services in all primary health care facilities
x Build the enterprise architecture design for patient information systems, procurement and management of
health commodities
x A risk-based capitation model for the reimbursement of PHC developed
Outputs x An alternative chronic medicines dispensing and distribution model implemented
x Number of new and number of total patients registered in the programme, broken down by the following:
o Antiretroviral Treatment
o Antiretroviral with Co-Morbidities
o non communicable diseases
o number of pickup points (state and non-state)
x Number and percentage of primary healthcare facilities peer reviewed
x Number and percentage of primary healthcare facilities achieving an ideal status
x Number and percentage of facilities implementing the health patient registration systems
x Number of patients registered on the health patient registration systems
x Number and percentage of primary healthcare facilities implementing an electronic stock replenishment
system
x Number and percentage of hospitals implementing an electronic stock replenishment system
x A base capitation model for the reimbursement of PHC facilities developed
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x Input
business plan x Output indicators
x Outcome indicators
x Milestones with projected dates when this will be achieved
x Description of how the project will be managed including roles and responsibilities of national and
provincial departments
x Key activities and resource schedule
x Monitoring and evaluation plan
x Risk management plans
x Cash flow projections
Conditions x Completion of a business plan by the national Department of Health (DoH) signed by the transferring
officer by 30 March 2018 and submitted to the National Treasury by 30 March 2018
x All information systems developed and implemented under this grant component must comply with the
interoperability norms and standards as approved by the National Health Council
Allocation criteria x The alternative chronic care medication dispensing and distribution model will be implemented across the
country, with priority given to previously disadvantaged areas
x Ideal clinic sub-component allocation is based on the number of identified facilities and their needs in each
province
x Information systems sub-component is not allocated per province and will be utilised towards the
development and making sure that implementation is standardised across provinces, districts and public
health facilities, towards the establishment of a unified health information and management of health
commodities for the country
Reasons not incorporated in x The importance of central coordination in development of models and the establishment of NHI to inform
equitable share ongoing NHI designs
x Ideal clinic is a key national priority and requires systematic implementation to achieve quality health care
services
x In line with the National Health Act sections 74(1) and 74(2), the national department has to develop and
coordinate all Health Information Systems in the country. This is a complex programme with many facets
that requires an iterative process of testing and implementation in a phased manner. This situation calls for
dedicated funding which will allow for institutionalisation over time
 160

National Health Insurance Indirect Grant: Non-Personal Services Component

Past performance 2016/17 audited financial outcome
x New grant component
2016/17 service delivery performance
x New grant component
Projected life x Subject to policy developments that will be finalised as part of the implementation of NHI
MTEF allocations x 2018/19: R700 million; 2019/20: R773 million and 2020/21: R852 million
x Centralised chronic medicines dispensing and distribution: 2018/19: R360 million; 2019/20: R420 million
and 2020/21: R476 million
x Capitation 2018/19: R10 million
x Ideal Clinic 2018/19: R20 million; 2019/20: R23 million and 2020/21: R26 million
x Information Systems 2018/19: R310 million; 2019/20: R330 million and 2020/21: R350 million
Payment schedule x Payments will be made according to verified invoices or advance payments in line with approved
programme implementation plans from the service providers
x Monthly instalments which may be altered at the discretion of National Treasury based on invoices paid
Responsibilities of the Responsibilities of the national department
transferring officer and x To establish contracts with service providers for the delivery of goods as services as necessary in the four
receiving officer sub-components outlined above
x Establish the necessary organisational structures and build capacity within the DoH to implement, oversee
and monitor the execution of all approved projects using the 3 per cent administrative costs provision
x Manage, monitor and support provincial programme planning and implementation
x Meet with the National Treasury to review performance of the grant on a quarterly basis
x Strengthen the capacity of provinces to realise and maintain Ideal Clinic status
x Maintain the Ideal Clinic software
Responsibilities of provincial departments
x Facilitate the achievement of grant outputs
x Delegate a person responsible for managing the Ideal clinic programme and health patient registration
system programme
x Ensure compliance with all reporting requirements and adherence to the provisions of service level
agreements
x Provincial health departments must provide DoH with full and unrestricted access to all records and data
related to the programme and to facilities to implement systems (storage space for filing cabinets etc)
x Include performance indicators related the four sub-components in the provincial annual performance
plans
x Provinces must develop draft implementation plans to assume responsibility for the centralised chronic
medicines dispensing and distribution, Ideal Clinic and information systems
x Submit quarterly performance reports to national DoH
Process for completion of x Submission of business plan signed by the transferring officer on 29 March 2019 to National Treasury
2019/20 business plan
 161

National Health Insurance Indirect Grant: Personal Services Component

Transferring department x Health (Vote 16)
Grant schedule x Schedule 6, Part A
Strategic goal x To achieve universal health access through the phased implementation of National Health Insurance (NHI)
and to improve access to quality healthcare services
Grant purpose x To expand the healthcare service benefits through the strategic purchasing of services from healthcare
providers
Outcome statements x Implementation of strategic purchasing platform for healthcare providers
x Screen leaners and deliver primary care services where appropriate
x Finalisation of a risk-adjusted capitation model for the reimbursement of primary healthcare (PHC)
services
x Implement community based mental healthcare services
x Enhance access to healthcare services for obstetric and cancer patients
Outputs x Number of health professionals contracted (total and by discipline)
x Number of health professionals contracted through capitation arrangements
x Improved identification and management of high risk pregnancies
x Improved care of women during labour with management of complications
x Number of patients screened and treated for mental health problems
x Percentage reduction in the backlog of forensic mental observations
x Number of learners who have been referred by school health services for further assessment and
management to audiologists, optometrists, speech therapists and others
x Number of learners equipped with required assistive devices through school health services
x Percentage reduction in radiation oncology backlog
x Number of Human Papillimavirus Vaccine (HPV) DNA tests rendered
x Number of patients confirmed to have cervical cancer screened by HPV DNA
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x Number of health professionals to be contracted, including:
business plan o process of accreditation of providers
o performance monitoring requirements
o processes for the management and reimbursement of health professionals
x Output indicators, including:
o target population
o number of patients to access care
o elimination of backlogs
o key milestones with projected dates when this will be achieved
x Key activities and resource schedule
x Monitoring and evaluation plan
x Risk management plans
x Cash flow projections
x The project will be managed by the national department and will report to the National Health Council, via
the National +HDOWK&RXQFLO¶V technical advisory committee
Conditions The funding will be used for the following services:
x With respect to addressing oncology backlogs:
o provincial health departments to supply verified data on oncology backlogs and all costs of drugs,
consumables and laboratory tests to be covered by the provincial health department
x With respect to obstetric care,
o specialist and general practitioners time to support identified high-risk obstetric case management
including support to do elective and emergency caesarean sections
x With respect to school health services:
o to address the backlog of learners who have been screened to date but have not yet received the
required healthcare and to provide assistive devices for learners
x Contracting of the national health laboratory services for pathology related services including supply of
test kits submission of completed and signed-off business plan and implementation framework by the
national transferring authority by 30 March 2018 to the National Treasury
Allocation criteria x As identified in the business plan, allocations will be based on the following criteria:
o prevalence of identified conditions
o provinces with greatest needs will be prioritised
o number of health professionals contracted
o defined reduction in specified backlogs
 162

National Health Insurance Indirect Grant: Personal Services Component

o defined follow-up treatment of school health learners and provision of assistive devices
Reasons not incorporated in x The principle of a single fund is articulated in the Cabinet approved White Paper on National Health
equitable share Insurance. This situation calls for dedicated funding which will allow for institutionalisation over time as a
single NHI Fund
Past performance 2016/17 audited financial outcomes
x New grant component
2016/17 service delivery performance
x New grant component
Projected life x Remain in place until the NHI Fund is created through legislation passed by Parliament
MTEF allocations x 2018/19: R713 million; 2019/20: R1.3 billion and 2020/21: R1.9 billion
Payment schedule x Payments will be made according to verified invoices or advance payments in line with approved
programme implementation plans with the service providers
Responsibilities of the Responsibilities of the national department
transferring officer and x The national Department of Health will be responsible for the creation of the interim structures until NHI
receiving officer Fund is fully established
x A committee comprising of national Department of Health and National Treasury officials has been
established, with specific terms of reference to set up the NHI Fund
x Establishment of a steering committee comprising of the national Department of Health and the National
Treasury to oversee implementation and progress of the NHI Fund
x Submission of quarterly financial and non-financial performance reports to the National Health Council
and the National Treasury
Responsibilities for the interim structures prior to the establishment of the NHI Fund
x The interim structures, prior to the establishment of the NHI Fund will be responsible for feasibility testing
of contracting and strategic purchasing of personal health services from appropriately accredited health
care providers on behalf of the covered population:
x The Interim structure will be responsible for the following functions:
o develop mechanisms for purchasing of services funded by NHI
o develop mechanisms for procuring of goods including drugs, medical equipment and technology on
behalf of providers that will be contracted for NHI
o develop payment strategies for contracted providers at various levels of care
o process utilisation transactions received from contracted service providers
o collate utilisation data, and implement information management systems
o develop contracting and payment policies
o supervise the actual contracting with hospitals at provincial and central levels
x Submission of quarterly financial and non-financial performance reports to the national Department of
Health
Responsibilities of provincial departments
x Facilitate the achievement of grant outputs
x Ensure that the provision and funding of existing programmes and services continues and is not substituted
by the implementation of this grant
x Submission of quarterly financial and non-financial performance reports to the national Department of
Health with respect to continuation of provision and funding of existing programmes and services
x Provincial health departments must provide the national DoH with full and unrestricted access to all
records and data related to the programme and to facilities to implement systems
Process for approval of x Submission of signed business plan by the transferring officer to the National Treasury on 29 March 2019
2019/20 business plans
 163

National Tertiary Services Grant

Transferring department x Health (Vote 16)
Grant schedule x Schedule 4, Part A
Strategic goal x To enable provinces to plan, modernise, rationalise and transform the tertiary hospital service
delivery platform
Grant purpose x Ensure provision of tertiary health services in South Africa
x To compensate tertiary facilities for the additional costs associated with provision of these
services
Outcome statements x Modernised and transformed tertiary services that allow for improved access and equity to
address the burden of disease
x Accelerated modernisation of tertiary services in developmental provinces (Eastern Cape,
Limpopo, Mpumalanga, Northern Cape and North West)
Outputs x Number of inpatient separations
x Number of day patient separations
x Number of outpatients first attendances
x Number of outpatient follow-up attendances
x Number of inpatient days
x Average length of stay by facility (tertiary)
x Bed utilisation rate by facility (all levels of care)
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the x This grant uses business plans which are signed between the national Department of Health
business plan (DoH) and each province and contain the following:
o provincial and institutional allocations
o tertiary services specifications (approved YES list) funded by the grant, by facility by
province
o annual targets for inpatient separations, inpatient days, day patient separations, outpatient
first visits, outpatient follow up visits per facility per province per year
o monitoring and reporting responsibilities
o validation and revision of data
o deviations or changes to tertiary services
o referral responsibilities
o approved business plan
o approved specialists funded from the grant (approved specialist detail list)
o national guidelines on definitions of tertiary services that may be funded by the grant
Conditions x Submission of an approved business plan in the prescribed format signed by the provincial
Head of Department to the national DoH by 28 February 2018, and to the National Treasury by
30 March 2018
x The grant allocation to each central/provincial tertiary facility must not exceed a maximum of
65 per cent of the total facility budget
x Cost of administration of the grant must not exceed one per cent of the total grant allocation
x The following amounts in the allocation to Gauteng are earmarked to fund the operations of the
Nelson MaQGHOD&KLOGUHQ¶V+RVSLWDO:
o R200 million in 2018/19
o R300 million in 2019/20
o R317 million in 2020/21
x Total remuneration packages to staff at the 1HOVRQ0DQGHOD&KLOGUHQ¶V+RVSLWDO, paid from this
grant and any other sources, may not exceed Department of Public Service and Administration
approved remuneration rates; total remuneration packages must be captured and submitted to
both the provincial, and the national Department of Health
x The services offered by the 1HOVRQ0DQGHOD&KLOGUHQ¶V+RVSLWDO should be integrated into the
service delivery platform in collaboration with relevant provinces, particularly Gauteng
Allocation criteria x Based on historical allocations and spending patterns
Reasons not incorporated in x There are significant cross boundary flows associated with tertiary services that are not affected
equitable share by provincial boundaries due to their specialised nature
Past performance 2016/17 audited financial outcomes
x Allocated and transferred R10.9 billion to provinces, of which R10.9 billion (100 per cent) was
spent by the end of the national financial year
2016/17 service delivery performance
x 359 932 day patient separations
x 3 890 496 inpatient days
x 619 101 inpatient separations
x 1 182 153 outpatient first attendances
x 2 958 960 outpatient follow up attendances
 164

National Tertiary Services Grant

Projected life x Support for tertiary services will continue because of the need to sustain and modernise tertiary
services
MTEF allocations x 2018/19: R12.4 billion; 2019/20: R13.2 billion and 2020/21: R14.1 billion
Payment schedule x Monthly instalments as per payment schedule approved by National Treasury with the
exception of the 1HOVRQ0DQGHOD&KLOGUHQ¶V+RVSLWDOwhere the first payment of R100 million
will be made in April 2018. Payments of R50 million each will be made in July and October
2018 based on evidence of satisfactory performance
Responsibilities of the Responsibilities of the national department
transferring officer and x Convene at least one annual meeting of national, provincial and facility programme mangers
receiving officer x Monitor expenditure by economic classification, and patient activity and provide on-site
support to facilities/complexes and provinces
x Conduct a minimum of two site visits to provinces and a minimum of one site visit to
facilities/complexes. Provincial visits to include facilities
Responsibilities of provincial departments
x Completion of a provincial service level agreement/memorandum of understanding signed by
the receiving officer and the benefitting institution by 30 March 2018 and submission to the
national DoH by 26 April 2018 (due date for Nelson Mandela ChildUHQ¶V +RVSLWDO is
30 March 2018)
x Provinces must provide the allocated amounts for individual funded facilities/clusters to the
relevant provincial treasury for gazetting as per the number of agreed upon business plans per
province and be facility/cluster specific, by 26 April 2018
x Provinces must maintain a separate budget for each benefiting facility
x The receiving officer must supply the head of each benefiting facility/complex with a budget
letter which includes the equitable share allocation by 30 April 2018
x Conduct a minimum of two sites visit to each budgeted facility/complex per annum and submit
reports of these site visits to the national DoH
x Submission of updated specialist details funded by the equitable share at facility level by
30 November 2018
x Submission of updated specialist details funded by the grant at facility level by
30 November 2018
x Submission of service specifications funded at each facility by 30 November 2018
x Submission of quarterly reports in the approved expenditure areas in the prescribed format
x Provide patient utilisation data (inpatient separations, inpatient days, day case separations,
outpatient first visits, outpatient follow up visits and patient-day equivalents) average length of
stay (tertiary) and bed utilisation rates (all levels of care) as per the prescribed format
x Provide the number of inpatient separations for intensive care units (ICU) and neonatal ICU
quarterly
x Provide the number of inpatient days for ICU and neonatal ICU quarterly
x Provinces may request, in writing to the transferring officer, approval to amend their approved
business plan. Requests must be submitted no later than the 15 October 2018. This will be the
only time that provinces can request amendments to their approved business plan. Revised
plans will be approved by 31 October 2018
Process for approval of the x Submission of draft business plans (provincial and facility) by 31 October 2018
2019/20 business plans x Completion of a business plan, in the prescribed format, signed by each receiving officer by
28 February 2019 and the transferring officer by 29 March 2019
 165

HUMAN SETTLEMENTS GRANTS

Human Settlements Development Grant

Transferring department x Human Settlements (Vote 38)
Grant schedule x Schedule 5, Part A
Strategic goal x The creation of sustainable and integrated human settlements that enable improved quality of
household life, access to basic services and secure tenure
Grant purpose x To provide funding for the creation of sustainable and integrated human settlements
Outcome statements x The facilitation and provision of adequate housing opportunities and improved quality living
environments
x A functionally equitable and integrated residential property market
x Enhanced institutional capabilities for effective coordination of spatial investment decisions
Outputs x Number of housing opportunities created may include the following:
o number of residential units delivered in all housing programmes
o number of serviced sites delivered in all housing programmes
x Number of households in informal settlements provided with access to basic services at upgrading
of informal settlements programme level 2 standard
x Number of informal settlements upgraded on site and/or relocated
x Number of households in backyards provided with access to services/upgraded services
x Number of title deeds issued for projects completed post 31 March 2014
x Hectares of well-located land acquired and zoned to create housing opportunities
x Number of work opportunities created through related programmes
x Percentage of project value procured as per the targeted groups in the amended Preferential
Procurement Regulation 2017, issued by National Treasury
x Number of socio-economic amenities delivered in human settlements
x Number of catalytic projects planned, approved and implemented for integrated human settlements
developments
Priority outcome(s) of x Outcome 8: Sustainable human settlements and improved quality of household life
government that this grant
primarily contributes to
Details contained in the x Medium term strategic framework targets, outputs and outcomes
business plan x Project planning and facilitation
x Outputs and targets
x Cash flow projections (payment schedule)
x Quarterly reporting
x Project information
x Project readiness matrix
x Title deeds project pipeline matrix
x Infrastructure reporting model
x Informal settlements plan and National Upgrading Support Programme
x Professional fees and pre-planning
x Number of job opportunities to be created
Conditions x Funds for this grant should be utilised for the priorities as set out in the 2014-19 Medium Term
Strategic Framework for human settlements
x The transfer of the first tranche of funds is conditional upon national Department of Human
Settlements (DHS) approving provincial business plans consistent with the provisions of the
Housing Act, 2018 Division of Revenue Act (DoRA) and in compliance with the National Housing
Code
x The transfer of subsequent tranches is conditional on provinces capturing the targets and budget,
delivery statistics, and expenditure monthly on the Housing Subsidy System (HSS) and the Basic
Accounting System at sub-sub-programme level and project level, and submitting monthly
reconciliations within the required time frames
x Provinces must ensure reconciliation and alignment of financial and non-financial outputs between
the HSS and Basic Accounting System on a monthly basis
x All projects in the approved business plan must be aligned with the Integrated Development Plan
(IDP) and the spatial development framework of municipalities as well as the Built Environment
Performance Plan (BEPP) for metropolitan municipalities
x Draft and final business plans must be aligned to provincial annual performance plans
x Provincial heads of departments (HoDs) must sign-off and confirm that projects captured in their
business plans are assessed and approved for implementation in the 2018/19 financial year
x Provinces may utilise up to a maximum of 5 per cent of the provincial allocation for the operational
capital budget programme to support the implementation of the projects contained in the business
plan
x Provinces must indicate budget allocations consistent with provincial and related municipal
backlogs for adequate housing
 166

Human Settlements Development Grant

x Provinces must gazette planned expenditure for three years for the accredited municipalities in
terms of the DoRA by no later than 31 May 2018. This should specify the amount of operational
funding to be transferred to accredited municipalities
x Where municipalities have been accredited for the housing function, the provincial business plans
must reflect relevant allocations, targets and outputs as agreed and approved with the respective
municipalities
x Provinces may utilise a maximum of 2 per cent of the Human Settlements Development Grant
(HSDG) for the provision of bulk infrastructure projects for basic services in non-metropolitan
municipalities to unlock human settlement projects on condition that the funding is complementary
with commitments by municipalities in their Integrated Development Plan and municipal budget
for provision of such bulk and infrastructure with Municipal Infrastructure Grant funding. Prior
approval of the transferring officer is required
x Provinces may request in writing to the transferring officer approval to amend their approved
business plan. Requests must be submitted between 15 August and 15 October 2018. This will be
the only time that provinces can request amendment to the approved business plan. Revised plans
will be approved by 30 October 2018
x The payment schedules should be derived from the cash flows contained in the approved business
plan
x A total of R842 million is ring-fenced for the Finance Linked Individual Subsidy Programme
(FLISP). The following ring-fenced funds may only be used for planned FLISP spending as
contained in the approved business plans of each province:
o Eastern Cape: R10 million
o Free State: R14 million
o Gauteng: R616 million
o KwaZulu-Natal: R110 million
o Limpopo: R5 million
o Mpumalanga: R5 million
o Northern Cape: R2 million
o North West: R7 million
o Western Cape: R73 million
x A minimum of 30 per cent of the total must be allocated for the upgrading of informal settlements
programme with targets segregated per province in the delivery agreement
x In addition, the following funds must be earmarked to support the upgrading of informal
settlements in the area of each respective mining town. These are additional funds and may not be
used to replace existing baseline funds allocated to projects in these areas. The following funds
may only be utilised to fund projects and related infrastructure (including bulk) for housing and
human settlements developments in the following prioritised mining towns:
o Free State:
 Matjhabeng: R66.2 million
o Gauteng:
 Merafong City: R46.9 million
 Rand West City R73.4 million
 Mogale City: R31.1 million
o Limpopo:
 Thabazimbi: R32.4 million
 Elias Motsoaledi: R25.6 million
 Lephalale: R28.1 million
 Fetakgomo Tubatse: R59.1 million
 Mogalakwena: R20.0 million
o Mpumalanga:
 Emalahleni: R63.9 million
 Steve Tshwete: R37.5 million
 Thaba Chweu: R32.9 million
o Northern Cape:
 Tsantsabane: R24.8 million
 Ga-Segonyana: R25.7 million
 Gamagara: R24.7 million
 Kgatelopele: R20.9 million
 Joe Morolong R20.0 million
 Khai-Ma R20.0 million
o North West:
 Kgetlengriver: R34.7 million
 Madibeng: R79.5 million
 Moses Kotane: R71.8 million
 Rustenburg: R66.3 million
 City of Matlosana: R94.2 million
 167

Human Settlements Development Grant

x Ring-fenced funds that are underperforming in-year may be stopped and reallocated to a different
province for the same ring-fenced purpose
x Provinces must include the nationally approved human settlements catalytic projects in their
business plans as per the catalytic programme requirements. In addition provinces must allocate a
reasonable percentage of their grant allocation to the approved national priority catalytic projects in
line with their projects readiness status
x A minimum of 30 per cent of HSDG allocations should be allocated to contracts awarded to all
targeted groups as per the amended Preferential Procurement Regulations 2017, issued by National
Treasury
x At least 2 per cent of the HSDG grant should be allocated to programmes and projects for the
implementation of innovative building technologies in the human settlements implementation
delivery chain
x Provinces should ensure that the allocation for land acquisition and related purposes is included in
the business plans
x Provinces must agree with municipalities on a plan for the provision of basic services to all
households served in new housing developments
Allocation criteria x The grant is allocated through the HSDG allocation formula approved by the Human Settlements
MINMEC and National Treasury. The formula is based primarily on the share of inadequate
housing in each province but also accounts for population size and extent of poverty in each
province
x Funds for informal settlement upgrading in mining towns are allocated based on project plans as
agreed with provinces and municipalities in terms of the Presidential Mining Towns Intervention
Reasons not incorporated in x A conditional grant enables the national department to provide effective oversight and ensure
equitable share compliance with the National Housing Code
Past performance 2016/17 audited financial outcome
x Of the R18.7 billion made available, R18.3 billion (98 per cent) was transferred of which
R18.3 billion was spent by the end of the financial year
2016/17 service delivery performance
x 90 692 housing units completed
x 56 336 serviced sites completed
Projected life x This is a long term grant as government has an obligation to assist the poor with the provision of
human settlements in terms of the Constitution
MTEF allocations x 2018/19: R18.2 billion; 2019/20: R18.8 billion and 2020/21: R20.1 billion
Payment schedule x Monthly instalments as per the payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Finalise and ensure the approval of the applicable subsidy quantums per programme and the
receiving officer allocation formula for the delivery of sustainable and integrated human settlements
x Approve the final national and provincial business plans and issue national compliance certificates
x Assess and make recommendations on the credibility of provincial business plans and the readiness
of projects captured therein
x Ensure that provinces align financial and non-financial information in terms of reporting in Basic
Accounting System, HSS, provincial business plans and provincial quarterly reports
x Monitor provincial financial and non-financial grant performance and control systems related to the
HSDG
x Ensure provinces comply with the reporting requirements for the HSS in terms of frequency and
quality of the input
x Provide support to provinces and accredited municipalities with regard to human settlements
delivery as may be required
x Undertake structured and other visits to provinces and metropolitan municipalities as is necessary
x Facilitate regular interaction between DHS and provincial departments of human settlements and
accredited municipalities
x Submit an annual evaluation report for 2017/18 on the financial and non-financial performance of
the grant to National Treasury by 27 July 2018
x Evaluate the audited provincial annual reports for submission to National Treasury by
14 December 2018
x Submit quarterly performance reports to National Treasury within 45 days after the end of each
quarter
x Provide systems including HSS that support the administration of the human settlements delivery
process
x Comply with the responsibilities of the transferring officer outlined in the 2018 DoRA
x Publish approved business plans
x Ensure provinces only implement programmes that are contained in the approved business plans
 168

Human Settlements Development Grant

Responsibilities of provincial departments
x Provinces must conclude implementation protocols with the Housing Development Agency (HDA)
for the preparation and programme management of catalytic projects
x Submit 2017/18 annual evaluation reports to DHS by 30 May 2018
x Submit 2017/18 audited annual reports to the DHS by 28 September 2018
x Prioritise funds in order to build houses to meet the quota set for the military veterans
x Support accredited municipalities in carrying out delegated functions as per the accreditation
framework
x Provinces must utilise the HSS for the administration and related performance reporting of all the
human settlement delivery programmes and processes
x Projects to be funded and included in the business plan must be registered on the HSS and HSS
project number included in the business plan
x Any malicious use or non-compliance to the HSS will result in funds being withheld or stopped in
terms of the 2018 DoRA
x Provinces must ensure alignment of financial and non-financial reporting in terms of reporting in
BAS, HSS, approved provincial business plans, and provincial quarterly reports
x Ensure effective and efficient utilisation of and access to the HSS by municipalities
x Comply with the Housing Act, 2018 DoRA, Housing Code and the national delivery agreements
that have been concluded
x The monthly expenditure report, as contemplated in section 12(3) of the 2018 DoRA and section
40(4)(c) of the Public Finance Management Act, must be submitted by the 15th of every month for
the preceding month with work in progress inclusive of expenditure, monthly BAS and HSS
reconciliation as stipulated on the Practice Note dated 24 April 2015
x Provinces must report on a quarterly basis the minimum 30 per cent of the grant awarded to the
targeted group as the amended Preferential Procurement Regulations 2017, issued by National
Treasury
x Monthly expenditure and quarterly reports must be signed by both the HoD and the relevant
provincial treasury HoD
x Submit the reports on the outputs as mentioned on this framework above by the 15th of every
month for the preceding month
x There should be alignment of business plan with the gazetted allocations to accredited
municipalities
x Provinces should ensure that they only implement the programmes in the approved business plans
x Consult with municipalities on the programme and projects submitted for approval in terms of the
HSDG business plan
x Ensure all projects to be implemented are contained in the municipal IDP and Spatial Development
Frameworks of municipalities
x Ensure that the relevant amounts to be applied and transferred to municipalities are gazetted by no
later than 31 May 2018
x Provinces to align their business plan with provincial annual performance plans
x On completion of units for military veterans, provincial departments should forward the claims to
Department of Military Veterans for the top-up as agreed in terms of the memorandum of
understanding between national Department of Military Veterans and DMV
Process for approval of the x Draft provincial business plans for 2019/20 financial year and project readiness matrix to be
2019/20 business plans submitted to the national department by 31 August 2018
x The second draft business plans to be submitted by 12 October 2018
x Submit final provincial business plans, project readiness matrix, including cash flow projections
and compliance certificates for 2019/20 financial year to the DHS by 8 February 2019
x Specific approval from transferring officer should be sought, for rectification (pre and post 1994),
IDP chapters, blocked projects, community residential units (upgraded), project linked,
consolidation subsidies (blocked projects) and their allocation must appear in the draft and final
business plans
x Programmes that require ministerial approval (in terms of ministerial directives), must be submitted
in the first draft of the business plan
 169

Provincial Emergency Housing Grant

Transferring department x Human Settlements (Vote 38)
Grant schedule x Schedule 7, Part A
Strategic goal x To ensure improved quality of household life following a disaster (as defined in the Disaster Management
Act, 2002)
Grant purpose x To provide funding to provinces for provision of temporary shelter assistance to households affected by
disasters
Outcome statements x Households accommodated in adequate temporary shelter following a disaster
Outputs x Emergency and short term assistance to households affected and/or impacted by disasters, through:
o provision of temporary shelter
o temporary relocation of households to safer accommodation and/or shelter
Priority outcome(s) of x Outcome 8: Sustainable human settlements and improved quality of household life
government that this grant
primarily contributes to
Details contained in the x Applications for funding from this grant use the Emergency Housing Grant application form which
business plan includes the following:
o details of the disaster, the impact thereof and number of temporary shelters required and the number of
households affected
o total funds required for disaster response
o implementation plan
o summary of the projects
o consolidated project cash flow over a two PRQWKV¶SHULRGDVDQDQQH[XUHWRWKHLPSOHPHQWDWLRQSODQ
o a copy of the province¶V emergency procurement policy
Conditions x Province must submit an application to the national Department of Human Settlements (DHS) within 14
days of the agreement by the MEC that a housing emergency exists in terms of section 2.3.1 (a) and (b) of
the Emergency Housing Programme
x The relevant Provincial Disaster Management Centre must be informed of the application
x Provincial Heads of Departments (HoDs) must sign-off and confirm the information captured in
application
x Shelter solutions funded from the grant must comply with the National Building Regulations and utilise
materials that comply with the South African Bureau of Standards
x Funds may only be spent on items and activities included in the application approved by the transferring
officer of the national DHS
x Provincial officers must submit a report within 30 days after the end of the quarter in which the funds are
spent, outlining expenditure of the funds and documentary proof of services rendered. Thereafter monthly
reports shall be submitted to the national DHS until the funds are fully utilised
x The emergency procurement system as guided by the Public Finance Management Act (PFMA) and
Treasury Regulations should be invoked to ensure immediate assistance to the affected communities
Allocation criteria x This grant funding is intended to address the housing needs of households who for reasons beyond their
control, find themselves in an emergency housing need such as:
o existing shelter destroyed or damaged by a disaster
o displaced following a disaster
o relocation due to prevailing material (i.e. physical) conditions posing an immediate threat to the
adequacy and safety of their existing housing as a result of a disaster
x The grant is allocated to provinces on application and approval thereof by the Accounting Officer of the
national DHS
Reasons not incorporated in x A conditional grant enables the national department to respond to disasters as they arise
equitable share
Past performance 2016/17 audited financial outcome
x This is a new grant
2016/17 service delivery performance
x This is a new grant
Projected life x This grant is expected to continue over the medium term and will be subject to review
MTEF allocations x 2018/19: R260 million; 2019/20: R277 million and 2020/21: R295 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Advise and guide provinces about the existence of the Provincial Emergency Housing Grant and how it
receiving officer can be accessed
x Develop and publish the provincial Emergency Housing Grant application form template, in consultation
with National Treasury and the National Disaster Management Centre (NDMC)
x Monitor programme implementation including establishing and maintaining a register or database of
human settlements disasters
x Support provinces and municipalities to plan for potential disasters. This includes identifying
communities/households that reside in unsafe conditions posing a threat to health and safety as well as
households who live in areas prone to flooding and/or other disasters
x Monitor the planning and priority development for communities/households residing in unhealthy and life
threatening circumstances and provide implementation assistance where required
 170

Provincial Emergency Housing Grant

x Facilitate a coordinated housing assistance intervention response in circumstances where disasters affected
more than one province
x Coordinate assistance with the NDMC to ensure there is no duplication of funding with the provincial and
municipal disaster relief grants
x Seek approval from National Treasury for the disbursement of funds to provinces and municipalities within
10 days of receipt of an application for funding from this grant
x Notify the relevant provinces and provincial treasury of a transfer at least two days before the transfer of
funds. Funds must be transferred no later than five days after notification
x Transfer funds to the provincial administration with a clear stipulation of the purpose of the funds
x Provide National Treasury with written notification of the transfer within 10 days of a transfer of the grant
x Submit financial and non-financial reports to National Treasury within 20 days after the end of each month
x Provide a performance report, within 45 days after the end of the quarter in which the funds were spent, to
National Treasury using the disaster allocation monitoring template agreed to with the National Treasury
x Together with the provinces monitor the implementation of funded projects
Responsibilities of the provincial departments of human settlements
x Provinces are responsible for providing the first response in the immediate aftermath of a housing
emergency
x Conduct initial assessments of disaster impacts to verify the applications for funding within five days
following the occurrence of a reported incident that meets the conditions
x Ensure contingency plans are in place to facilitate the provision of emergency shelter in the immediate
aftermath of a housing emergency. These plans could include having standby contract in place that allow
for the rapid deployment of emergency shelter and/or identifying safe sites for temporary shelter
x Prepare and submit complete application(s) for funding in the event of disasters occurring within their
jurisdiction
x Upon approval of the application and receipt of funding, implement the intended relief measure
(emergency housing solutions) in respect of the affected households and communities
x Ensure that emergency procurement policies in line with the Public Finance Management Act (PFMA) and
Treasury Regulations are in place
x Submit required reports to the national DHS on the expenditure of funds received
x Conduct assessments of disaster impacts together with the affected municipalities, to verify applications
for funding, within 35 days of the incident while adhering to the requirements of the emergency housing
programme
x Confirm support to be provided by emergency housing programme to prevent duplication of support and
resources
x Submit requests for funding, monitor projects and provide reports to the national DHS, and the relevant
provincial treasury
x Provide financial reports to national DHS within 15 days after the end of each month
x Provide a performance report which includes evidence on progress implementation of the projects to the
national DHS within 30 days after the end of the quarter in which funds are spent
x Identify communities and/or households for temporary relocation due to an imminent disaster event
x Ensure that the shelter solutions comply with the National Building Regulations and utilise material that
comply with the South African Bureau of Standards
x Monitor the implementation of funded disaster projects by sectors
x Ensure sector invokes emergency procurement processes to implement the immediate disaster projects
Process for approval of x Not applicable
2019/20 the annual business
plans
 171

Title Deeds Restoration Grant

Transferring department x Human Settlements (Vote 38)
Grant schedule x Schedule 5, Part A
Strategic goal x The creation of security of tenure and well-functioning equitable residential property market
Grant purpose x To provide funding for the eradication of the pre-2014 title deeds registration backlog and the professional
fees associated with it, including beneficiary verification
Outcome statements x Tenure security for all recipients of government-subsidised houses
x Improved functioning of the secondary property market
x Improved quality of life
Outputs x Number of title deeds registered in favour of beneficiaries of government subsidised housing (pre 1994 and
post 1994) for projects completed by 31 March 2014
x Number of title deeds issued to beneficiaries of government subsidised housing (pre 1994 and post 1994)
for projects completed by 31 March 2014
x Number of townships proclaimed and registers opened
x Number of beneficiaries confirmed as title deed holders
x Enhanced institutional capacity of municipalities and provinces in respect of property registration
Priority outcome(s) of x Outcome 8: Sustainable human settlements and improved quality of household life
government that this grant
primarily contributes to
Details contained in the x Medium term strategic framework, medium term expenditure framework targets, outputs and outcomes
business plan x Implementation agreement between national, provincial and local government
x Proof of joint planning with municipalities
x Title deeds project pipeline matrix
x Annual and quarterly outputs and targets
x Project social facilitation plan
x Cash flow projections (payment schedule)
x Quarterly reporting
x Procurement plan, confirming the appointment of requisite service providers
Conditions x These funds cannot be used to fund title deeds for housing for projects completed after 31 March 2014
x Provinces must submit implementation business plans approved by the transferring officer by
9 February 2018
x The transfer of the first tranche of funds to be paid at the beginning of the financial year, is conditional on
approval by the national Department of Human Settlements (DHS) of provincial business plans
x The transfer of subsequent tranches is conditional on provinces submitting a detailed report on the delivery
and expenditure on the previous transfer. The said report is to include:
o agreed deliverables supported by evidence
o actual expenditure against the planned cash flows for the same period
o compliance with the housing subsidy system and the title restoration project dashboard
o cash flows for the remainder of the year
x Provinces must capture the targets and budget and delivery statistics and expenditure monthly on the
housing subsidy system (HSS), the basic accounting system, the Title Restoration Project Dashboard and
the Project Readiness Matrix
x Provincial Heads of Human Settlements Departments (HoDs) must sign-off and confirm that projects
captured in the implementation plans are assessed and approved for implementation in the 2018/19
financial year
x Provinces may only spend funds in line with the approved business plans
x Provinces must submit monthly and quarterly financial and non-financial reports to the national
Department of Human Settlements
x Provinces which do not spend 60 per cent of their transferred funds by the end of each quarter, may have
subsequent transfers stopped and reallocated in terms of sections 18 and 19 of the 2018 Division of
Revenue Act
x Provinces may request, in writing to the transferring officer, approval to amend their approved business
plan. Requests must be submitted between 15 August and 15 October 2018. Revised plans will be
approved by 30 October 2018
Allocation criteria x The grant is allocated per province on the basis of a comprehensive business plan informed by the
confirmed title deed backlog per province
Reasons not incorporated in x Funds were previously ring-fenced under the Human Settlements Development Grant
equitable share
Past performance 2016/17 audited financial outcome
x New grant
2016/17 service delivery performance
x New grant
Projected life x Three years, ending in 2020/21
MTEF allocations x 2018/19: R519 million; 2019/20: R548 million and 2020/21: R578 million
Payment schedule x Monthly instalments as per the payment schedule approved by National Treasury
 172

Title Deeds Restoration Grant

Responsibilities of the Responsibilities of the national department
transferring officer and x Assess and make recommendations on the credibility of the provincial implementation business plans and
receiving officer the readiness of projects therein
x Ensure that provinces align financial and non-financial information in terms of reporting in BAS, HSS, the
title restoration project dashboard, provincial business plans and provincial quarterly reports
x Monitor provincial financial and non-financial grant performance as well as control systems related to the
grant
x Draft an institutional enhancement capacity plan and submit to the National Treasury by
28 September 2018
x Provide technical and advisory support
x Ensure provinces comply with the reporting requirements for the HSS in terms of frequency and quality of
the input
x Undertake structured and other visits to provinces and metropolitan municipalities as is necessary
x Submit quarterly performance reports to National Treasury
Responsibilities of provincial departments
x Provinces must ensure alignment of financial and non-financial reporting in terms of reporting in BAS,
HSS, approved provincial business plans and provincial quarterly reports
x The monthly expenditure report, as contemplated in section 12(3) of the 2018 Division of Revenue Act
(DoRA) and section 40(4)(c) of the Public Finance Management Act
x The monthly DoRA expenditure and quarterly financial and non-financial reports must be signed by both
the HoD and the relevant provincial treasury HoD
x Submit the reports on the outputs as mentioned on this framework above by the 15th of every month for
the preceding month
x Facilitate regular interaction between DHS and provincial departments of human settlements and
municipalities
Process for approval of the x Draft provincial implementation plans for the 2019/20 financial year and project readiness matrix to be
2019/20 business plans submitted to the national Department of Human Settlements by 31 August 2018, with second draft plans
submitted before end of October 2018, and the final plans submitted before 15 Fenruary 2019 for
consideration
x Consideration (assessment and possible approval) of the final provincial business must finalised before
15 March 2019
x National department to assess and inform provinces by 16 November 2018, whether provinces are
allocated direct or indirect allocations in 2019/20
 173

PUBLIC WORKS GRANTS

Expanded Public Works Programme Integrated Grant for Provinces

Transferring department x Public Works (Vote 11)
Grant schedule x Schedule 5, Part A
Strategic goal x To provide funding for job creation efforts in specific focus areas, where labour intensive delivery
methods can be maximised
Grant purpose x To incentivise provincial departments to expand work creation efforts through the use of labour
intensive delivery methods in the following identified focus areas, in compliance with the Expanded
Public Works Programme (EPWP) guidelines:
o road maintenance and the maintenance of buildings
o low traffic volume roads and rural roads
o other economic and social infrastructure
o tourism and cultural industries
o sustainable land based livelihoods
o waste management
Outcome statements x Improved quality of life of poor people and increased social stability through engaging the previously
unemployed in paid and productive activities
x Reduced level of poverty
x Contribute towards increased levels of employment
x Improved opportunities for sustainable work through experience and learning gained
Outputs x Number of people employed and receiving income through the EPWP
x Increased average duration of the work opportunities created
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant
primarily contributes to
Details contained in the x The programme is implemented through provinces using incentive agreements that contain project lists
business plan and targets for the creation of full time equivalents (FTEs) and work opportunities
Conditions x EPWP projects must comply with the project selection criteria determined in the EPWP grant manual,
the EPWP guidelines set by Department of Public Works (DPW) and the ministerial determination
x Eligible provincial departments must sign a funding agreement with their final EPWP project list
attached, before the first planned disbursement of the grant
x Provincial departments must UHSRUWTXDUWHUO\RQDOOSURMHFWVYLD'3:¶V(3:3UHSRUWLQJV\VWHP
x Reports must be loaded on the EPWP reporting system within 30 days after the end of every quarter in
order for progress to be assessed
x The grant cannot be used for departmental personnel costs, however a maximum of five per cent of the
grant can be used to fund contract based capacity required to manage data capturing and on-site
management costs related to the use of labour intensive methods
x The grant can only be utilised for EPWP purposes and for the projects approved in the EPWP Integrated
Agreement signed by each eligible provincial department
x To receive the first planned grant disbursement, eligible provincial departments must:
o submit a final EPWP project list by the 26 April 2018
o sign a grant agreement with DPW
x Subsequent grant disbursements are conditional upon eligible provincial departments:
o reporting on EPWP performance quarterly within the required time frames
o reporting on all EPWP Integrated Grant funded projects
o implementing their approved EPWP project list as planned towards the agreed job creation targets
o submit, on a quarterly basis, non-financial reports by the timelines stipulated in the clauses of the
2018 Division of Revenue Act
x Reporting on EPWP Integrated Grant expenditure monthly within the required time frames
x EPWP branding must be incorporated in any existing signage as per corporate identity manual
x Provincial departments must maintain beneficiary and or payroll records as specified in the audit
requirements in the EPWP grant manual, and make these available to DPW for data quality assessment
tests
Allocation criteria x To be eligible for EPWP grant allocation in 2018/19, a provincial department must have reported at
least 13 FTEs in either the Infrastructure or Environment and Culture sector in 2016/17 financial year
x Newly reporting provincial departments must have reported 2017/18 EPWP performance (in either the
infrastructure or environment and culture sector) by 30 October 2017
x The EPWP grant allocations are based on EPWP performance in the past 18 months, number of FTEs
created per million rand, and the duration of the work opportunities created
Reasons not incorporated in x This grant is intended to fund expansion in specific focus areas as well as incentivise increased EPWP
equitable share performance
x The grant is based on performance, the potential to expand and the need for EPWP work in key
geographic regions
 174

Expanded Public Works Programme Integrated Grant for Provinces

Past performance 2016/17 audited financial outcomes
x The R402 million allocated was transferred to provincial departments and R389 million (97 per cent)
was spent by the end of the national financial year
2016/17 service delivery performance
x 205 928 work opportunities reported and 75 839 FTEs created
Projected life x Grant continues until the end of 2020/21 financial year, subject to review
MTEF allocations x 2018/19: R416 million; 2019/20: R452 million and 2020/21: R476 million
Payment schedule x Three instalments per annum: 25 per cent, 15 May 2018; 45 per cent, 15 August 2018 and 30 per cent,
15 November 2018
Responsibilities of the Responsibilities of the national department
transferring officer and x Determine eligibility and set grant allocations and FTE targets for eligible provincial departments
receiving officer x Publish on the EPWP website all documents relevant for provincial departments to understand and
implement the grant, including a grant manual, the relevant EPWP guidelines and the Ministerial
Determination
x Support provincial departments, in the manner agreed to in the funding agreement, to identify suitable
EPWP projects, develop EPWP project lists in accordance with the EPWP project selection criteria,
apply the EPWP project selection criteria and EPWP guidelines to project design, report using the
EPWP reporting system
x Monitor the performance and spending of provincial departments and assess progress towards their
implementation of EPWP project lists
x Disburse the grant to eligible provinces
x Report to National Treasury progress against FTE targets and spending against the grant allocation on a
quarterly basis
x Conduct data quality assessments on a continuous basis to support good governance and identify areas
for administrative improvement
x Manage the EPWP coordinating structures in collaboration with provincial coordinating departments to
support implementation, identify blockages and facilitate innovative solutions
x Support the sector to collect the required data, align monitoring and reporting frameworks and to report
on key outputs on the EPWP web-based system
Responsibilities of provincial departments
x Develop and submit an EPWP project list to DPW by 26 April 2018
x Sign the standard funding agreement with DPW agreeing to comply with the conditions of the grant
before receiving any grant disbursement by 26 April 2018
x Agree on the areas requiring technical support from DPW upon signing the grant agreement
x Report on all EPWP projects into the EPWP reporting system and update progress quarterly in
accordance with the reporting requirements and timelines stipulated in the grant agreement
Process for approval of the x Provincial departments must report on performance of EPWP projects for the 2017/18 financial year by
2019/20 business plans 27 April 2018 or report on 2018/19 performance by 30 October 2018 to be eligible for a grant allocation
x Provincial departments must submit draft 2019/20 EPWP project lists to DPW by 26 April 2019
x Eligible provincial departments must sign the standard funding agreement with an approved
2019/20 EPWP project list by 26 April 2019
 175

Social Sector Expanded Public Works Programme Incentive Grant for Provinces
Transferring department x Public Works (Vote 11)
Grant schedule x Schedule 5, Part A
Strategic goal x To increase job creation through the expansion of the social sector Expanded Public Works Programme
(EPWP)
Grant purpose x To incentivise provincial social sector departments, identified in the 2017 social sector EPWP log-frame
to increase job creation by focusing on the strengthening and expansion of social sector programmes that
have employment potential
Outcome statements x Improved service delivery to communities by expanding the reach and quality of social services
x Contribute towards increased levels of employment
x Improved opportunities for sustainable work through experience and learning gained
x Strengthened capacity of non-government delivery partners through increased access to funds for
training, wages and administration
Outputs x 16 975 full time equivalents (FTEs) funded through this grant
x A minimum of 16 269 people employed and receiving income through the EPWP
x A minimum average duration of 200 person days for work opportunities created
x A minimum of 60 000 households to which services are provided
x A minimum of 150 000 beneficiaries to whom services are provided
x A minimum of 1 000 beneficiaries who received training
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant x Outcome 5: A skilled and capable workforce to support an inclusive growth path
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x Provincial departments must report EPWP expenditure on the monthly In-Year Monitoring (IYM) tool in
accordance with section 32 of the Public Finance Management Act
x Financial and non-financial performance must be reported onto the EPWP reporting system
x Provincial departments must adhere to the audit requirements stipulated in the social sector EPWP
incentive grant manual
x The incentive grant allocation must be used to expand job creation programmes in the social sector
x The incentive grant allocation must be used to fund the following priority areas:
o to provide stipends to unpaid volunteers at a minimum of R88 per day and further adjustments as per
the Ministerial Determination for EPWP Workers and the prescripts of the Department of Labour
o to expand social sector EPWP programmes as identified in the EPWP social sector log-frame for
creation of additional work opportunities
x A minimum of 80 per cent of the total incentive allocation must be used to pay stipends or wages
x The balance of the overall incentive allocation must be used for administration and capacity-building at
the implementation level
x To receive the first grant disbursement, eligible provincial departments must:
o submit a signed business plan by 30 March 2018
o submit a compliant signed project list by 30 March 2018
o sign a grant agreement with DPW by 30 March 2018
x Subsequent grant disbursements are conditional upon eligible provincial departments:
o reporting all grant funded projects in the EPWP reporting system
o reporting expenditure of at least 25 per cent and 50 per cent (of the transferred amount) for the
second and third tranches, respectively
x Submit quarterly non-financial reports on a prescribed template by the timelines stipulated in the clauses
of the Division of Revenue Act
x EPWP branding must be incorporated in any existing signage as per corporate identity manual
x Maintain beneficiary and payroll records as specified in the audit requirements of the EPWP grant
manual
Allocation criteria x To be eligible for an incentive allocation in 2018/19, a provincial department must have reported
performance of 2016/17 and first two quarters of 2017/18 into the EPWP reporting system by
15 October 2017
x Departments receive a participation allocation of R1.5 million for reporting FTEs in the EPWP reporting
system for the period ending 15 October 2017
x Departments receive a performance allocation provided they have achieved at least 50 per cent
performance against their sector plan FTE targets:
o performance allocation is divided into two parts calculated based on:
o provincial GHSDUWPHQW¶VFRQWULEXWLRQWRZDUGVWKHWRWDO)7(VUHSRUWHG
o FTE achievement and compliance to sector standards (persons with disability, women, youth,
training days, duration and wages)
x Past compliance will affect future allocations. The following penalties are applied where there is non-
compliance to conditions of the grant:
 176

Social Sector Expanded Public Works Programme Incentive Grant for Provinces
o 1 per cent for non-compliance in submission of planning documents
o 0.5 per cent for late submission of each quarterly non-financial report
o 0.5 per cent for each tranche withheld
o 1 per cent for less than 100 per cent expenditure reported in the assessment period
o 1 per cent for non-achievement of FTE target given in the assessment period
Reasons not incorporated in x The incentive allocation is based on the performance of programmes in a prior financial year and use of
equitable share the allocation is specifically earmarked for EPWP programme expansion
Past performance 2016/17 audited financial outcomes
x Of the total grant allocation of R360 million, 100 per cent was transferred to all eligible provincial
departments. Expenditure of R348 million (97 per cent) of the allocation was reported
2016/17 service delivery performance
x 12 019 FTEs were created
x 371 924 beneficiaries received social services
x 30 564 households received social services
x 1 318 non-profit organisations administratively supported
Projected life x Grant continues until the end of 2019/20 financial year, subject to review
MTEF allocations x 2018/19: R408 million; 2019/20: R431 million and 2020/21: R454 million
Payment schedule x Three instalments per annum: 25 per cent, 16 April 2018; 45 per cent, 27 July 2018 and 30 per cent,
31 October 2018
Responsibilities of the Responsibilities of the national department
transferring officer and x Determine the eligibility of provincial departments, set job creation targets and performance measures
receiving officer and calculate incentive allocations
x Revise the incentive manual that will provide provincial departments with standard information on the
rules of the incentive programme, its application, monitoring and evaluation information and audit
regulations
x Develop an incentive agreement outlining the requirements of the incentive grant and ensure that each
provincial department signs the agreement by 30 March 2018
x Reach agreements with national sector departments on their roles in ensuring effective implementation of
the incentive grant by 30 March 2018
x Support provincial departments to develop plans to meet job creation targets
x Support the sector to collect the required data, align monitoring and reporting frameworks and to report
on key outputs on the EPWP reporting system
x Monitor the performance of provincial departments and the use of the incentive grant against the
conditions in the framework and report to National Treasury on monthly and quarterly progress
x Audit the final performance of provincial departments after the end of the financial year
x Issue guidelines to provincial departments on how to report expenditure by 30 March 2018
x Identify anomalies in reported data
Responsibilities of provincial departments
x Compile and sign business plans and project lists on how to achieve the incentive grant targets by
30 March 2018
x By 30 March 2018, sign the standard incentive agreement with national Department of Public Works
(DPW) agreeing to comply with the conditions and obligations of the grant before receiving any
incentive payment
x Report EPWP performance onto the EPWP reporting system and update progress monthly in accordance
with the reporting requirements in the incentive agreement
x Submit financial and non-financial reports on the use of the incentive grant on a monthly and quarterly
basis in the format and manner prescribed by National Treasury and DPW
x Submit annual evaluation report on the use of the incentive grant in the format and manner prescribed by
National Treasury and DPW
Process for approval of the x Provincial departments must have reported EPWP performance by 16 April 2018 to be eligible for an
2019/20 business plans allocation
x Provincial departments participate in the planning exercise from December to January each year and
submit their business plans, project lists and targets to DPW during this process in the format prescribed
x DPW to distribute the incentive agreements for provincial Heads of Department endorsement by end of
February every year
x Provincial departments sign the incentive agreement with DPW by 29 March 2019 and agree to comply
with the conditions and obligations of the incentive grant
 177

SOCIAL DEVELOPMENT GRANTS

Early Childhood Development Grant

Transferring department x Social Development (Vote 17)
Grant schedule x Schedule 5, Part A
Strategic goal x To increase the provision of early childhood development (ECD) services through centre-based ECD services
to poor children
Grant purpose x To increase the number of poor children accessing subsidised ECD services through centre-based ECD
services
x To improve the registration status of centre-based ECD centres providing an ECD programme to meet basic
requirements
Outcome statements x The provision of ECD services to poor children contributing towards universal access
x Improving health and safety conditions in which stimulation and early learning takes place
Outputs Subsidy component
x Number of all children attending registered ECD services in fully registered centres
x Number of all children attending ECD services in conditionally registered centres
x Number of poor children that benefit from the subsidy component of the conditional grant in fully registered
centres
x Number of poor children that benefit from the subsidy component of the conditional grant in conditionally
registered centres
x Number of days subsidised for centre based programmes
Maintenance component
x Number of ECD centres that are conditionally registered
x Number of ECD centres assessed for the maintenance component
x Number of ECD centres that moved from conditional registration to full registration as a result of the
maintenance component
Priority outcome(s) of x Outcome 1: Quality basic education
government that this x Outcome 13: An inclusive and responsive social protection system
grant primarily
contributes to
Details contained in the x The provincial departments will use a business plan issued by the national Department of Social Development
business plan (DSD) which contains the following:
o project background
o project objectives
o scope of the work
o deliverables and outputs to be achieved
o risk assessment with mitigation plan
Conditions x Conditional grant funding cannot be used to replace funding that provinces have previously allocated for ECD
subsidies
x Each province may use a maximum of R2.8 million of their conditional grant allocation for administrative
management of the grant which includes capacity to manage the grant and funding for maintenance
assessments of ECDs
Subsidy component
x Only fully registered and conditionally registered facilities offering ECD programmes will be eligible for the
subsidy
x The subsidy is targeted for children from birth until six years in ECD centres
x The provincial DSD and ECD centres will enter into service level agreements (SLAs) which stipulate the
purpose of the subsidy, the amount of the subsidy, conditions of the subsidy and obligations of both
provincial DSD and ECD centres with regards to the payment of the subsidy and the reporting requirements
x The value of the subsidy paid to each ECD centre will be calculated as follows:
o R15 multiplied by the number of days (264), multiplied by the number of qualifying children attending
the ECD centre as agreed to in the SLA
x The full value of the subsidy will be paid in equal parts in line with the SLA and any changes to the payment
schedule must be aligned to a determination of non-compliance as defined in the SLA
x Once funds are transferred to ECD centres the department may not pre-approve how the funds are to be
utilised
x All allocations must be aligned to the number of children as per the SLA and can only be reduced as per the
process outlined in the SLA. Allocations must not be changed in-year, based on how many children attend
x The subsidy must target ECD centres or qualifying children in line with the process set out below:
o an ECD centre is eligible to be subsidised if it is located in a designated municipal ward that has been
identified for universal targeting of subsidies. A ward is eligible for universal targeting if more than
80 per cent of children aged 0-6 years within the ward are child support grant beneficiaries. Children
attending these ECD centres will not be subject to an individual means test and all children in these
centres must be taken into account when calculating the subsidy for the ECD centre
o if the child is attending an ECD centre falling outside of those municipal wards that have been identified
for universal targeting of the subsidy, the subsidy will be targeted to an individual child using the means
test criteria
 178

Early Childhood Development Grant

o a child is eligible to be subsidised if KHUKLVSDUHQWV¶LQFRPHIDOOVEHORZWKH following prescribed test
x Income-based means test:
o income of parents or caregivers may not exceed R45 600 per annum if single and R91 200 per annum if
married as aligned to the means test applied for the receipt of the Child Support Grant. This is updated
each year with an increase in the grant value
o in the case of children receiving a child related social assistance grant; original, reprinted or certified
copies of proof of receipt of the child related grant (Child Support Grant or the Foster Care Grant) as
issued by South African Social Security Agency must be submitted
o In the case of children who are not beneficiaries of a child related grant the following must be submitted:
- proof of income of parents (or caregivers)
- three months bank statement of parents or guardians; or
- affidavit declaring status of income
Maintenance component
x ECD centres must be conditionally registered
x The maximum value to be spent per ECD centre for maintenance improvements is R180 000
x Provinces must conduct assessments of conditionally registered ECD centres and cost them in order to qualify
for maintenance grant funding in 2019/20 by 28 September 2018
x All maintenance projects must be recorded on the National Treasury¶V infrastructure reporting model
Allocation criteria x The provincial subsidy allocations are determined based on the gap between:
o the number of poor children that should be accessing ECD subsidy
o the number of poor children currently accessing the ECD subsidy
x The provincial maintenance allocations are determinde based on:
o the number of centres that require a minor upgrade
o the average cost of a minor upgrades
Reasons not incorporated x To allow DSD to better ring-fence expansion of ECD in the country and to facilitate compliance to the
in equitable share National Integrated ECD Policy approved by Cabinet on 9 December 2015
Past performance 2016/17 audited financial outcomes
x New grant
2016/17 service delivery performance
x New grant
Projected life x Given the nature of the programme and the drive to expand provision of ECD services, the grant will be
needed for the MTEF and subject to review
MTEF allocations x 2018/19: R491 million; 2019/20: R518 million and 2020/21: R553 million allocated as follows:
o ECD subsidies: 2018/19: R412 million; 2019/20: R435 million and 2020/21: R464 million
o ECD maintenance improvements: 2018/19: R79 million; 2019/20: R83 million and 2020/21: R89 million
Payment schedule x Quarterly instalments on 13 April 2018; 18 July 2018; 12 October 2018 and 15 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Review the standardised reporting framework and monitoring tool
receiving officer x Review the standardised format for the business plans
x Assist the provincial Departments of Social Development with their planning
x To assess and approve the business plans submitted by provinces
x Review standardised SLAs to be entered into between provincial DSDs and ECD service providers
x Develop and issue an ECD conditional registration framework that clearly outlines the criteria for conditional
registration before September 2018
x Review guidelines on the implementation of the ECD centre maintenance component
x Monitoring of project progress and compliance to conditional grant framework
x Provide continuous monitoring and support to provinces on a monthly and quarterly basis
x Submit a monthly financial report to National Treasury 20 days after the end of the reporting month
x Consolidate and submit quarterly performance reports to National Treasury within 45 days after the end of
each quarter
x Monitor the utilisation of the grant against the set outcomes and to take appropriate action in cases of non-
compliance with the framework
x Submit an annual evaluation report four months after the end of the 2018/19 financial year
x Facilitate approval of the payment schedule and approval of in-year adjustments to the payment schedule
x Develop a proposal on a short to long term management information system for ECD
x Provide provinces with a threshold cost guide for maintenance
 179

Early Childhood Development Grant

Responsibilities of provincial departments
x Submit approved business plans signed off by the HoD to the DSD by 1 March 2018
x Provinces to implement the business plan as approved by the DSD (national must approve any deviation in
writing)
x Conclude SLAs with ECD centres in a format prescribed by the DSD
x Ensure that payments are made in line with the payment schedule as per the SLAs with ECD centres
x Provinces must submit a list of all conditionally registered centres that have been assessed and that require
maintenance upgrades citing both the type of upgrade required and costs to DSD by 28 September 2018
x Provinces must provide a plan on how they will proceed with the actual maintenance upgrade of the
conditionally registered ECD centres in the 2019/20 financial year
x The reasons for conditional registration must be attached to the ECD registration certificate and kept on file
x Ensure that claims are submitted to DSD to allow for transfer of funds by DSD in line with the payment
schedule approved by the National Treasury
x Subsidies must be made into the ECD centres designated bank accounts, which must be with a registered
deposit taking institution in the Republic of South Africa
x Subsidies may only be reduced in cases of non-compliance as outlined in the prescribed SLA
x Use the information reported in the quarterly reports from ECD centres to develop and maintain a master list
of all children benefitting from the ECD subsidy
x Maintain a database on the status of registration of all ECD centres in the province that is inclusive of the
following basic information:
o registration status
o capacity of the centre
o number of children in attendance
o number of children subsidised
x Maintain a database of all ECD centres that have been assisted through the maintenance grant
x Maintain a database of all ECD centres that have improved their registration status
x Submit monthly financial reports to DSD 15 days after the end of the reporting month
x Provinces must upload all ECD maintenance projects on the Infrastructure Reporting Model and update it
monthly
x Submit quarterly performance reports to national department within 30 days after the end of each quarter
x Submit an evaluation report two months after the end of the 2018/19 financial year
Process for approval of x Engagement with provincial departments on submission of business plans between September 2018 and
the 2019/20 business February 2019
plans x Provinces to submit revised business plans and assessment of business plans to the DSD by
14 November 2018
x Submit final provincial business plan, including cash flow projections and compliance certificates signed-off
by HoDs for 2019/20 financial year to the DSD by 15 February 2019
x The transferring officer must approve provincial business plans by 1 April 2019
 180

Social Worker Employment Grant

Transferring department x Social Development (Vote 17)
Grant schedule x Schedule 4, Part A
Strategic goal x Strengthen delivery of high priority social welfare services through employment of social work graduates
who benefitted from the national Department of Social Development¶ (DSD) scholarship programme
(hereafter referred to as social work graduates)
Grant purpose x To reduce the national backlog of unemployed social work graduates through appointment by provincial
departments of Social Development
Outcome statements x Strengthen the capacity of provincial departments of Social Development to deliver quality integrated social
welfare services
Outputs x Maintain the appointment of 566 social work graduates by provincial Department of Social Development by
end of March 2019
x Updated unemployed social work graduates database by end of June 2018
Priority outcome(s) of x Outcome 13: An inclusive and responsive social protection system
government that this
grant primarily
contributes to
Details contained in the x The grant will use a business plan containing the following elements:
business plan o project background
o review of 2017/18 progress on implementation of the grant based on 2017/18 approved business plan
o needs analysis (service demands against capacity requirements, including office and tools of trade)
o project objectives
o budget allocation
o final outputs/deliverables to be achieved
o project plan linked to objectives and deliverables
o risk assessment with management plan
o project governance structure
o reporting requirements
Conditions Scope of allocation
x The grants to be used to sustain salaries of the minimum 566 social work graduates employed in 2017/18. It
may not be used to employ supervisors for any purposes or to implement social worker induction
programmes to graduates
x Tools of trade will be procured using savings accrued from the conditional grant after appointment of the
total number of social workers agreed with and the cost of employment including employment benefits
x Any savings accrued from the grant are to be used for procurement of office tools in respect of social work
graduates guided by the needs analysis report
x Regular status reports on office tools and tools of trade procured from savings from the grant must be
compiled
Status on social work graduates backlog
x Provincial Departments of Social Development to increase social work capacity by appointing additional
social work graduates through Provincial Equitable Share (PES) funding
x National Department of Social Development to update unemployed social work graduates database with
2017 graduates as additional to current backlog
x Provincial Departments of Social Development to submit lists of social work graduates employed by other
sectors (departments) and remove such names from the provincial backlog database
Monitoring and reporting
x Compliance with the conditional grant framework by all stakeholders
x Submission of signed-off reports according to the reporting framework
Allocation criteria x The overall provincial allocations for the MTEF were determined based on the proportion of unemployed
social work graduates as reported by provinces in September 2016
Reasons not incorporated x Allocations across provincial Departments of Social Development towards employment of social work
in equitable share graduates through PES are insufficient to address the backlog in employment of social work graduates.
Therefore to accelerate the absorption of social workers into the sector in a targeted manner that matches the
needs across the country, and to address the backlog in employment of social work graduates, this grant is
created to be allocated outside the general criteria used for PES
Past performance 2016/17 audited financial outcomes
x New grant
2016/17 service delivery performance
x New grant
Projected life x The grant continues until 2020/21 financial year; subject to review
MTEF allocations x 2018/19: R197 million; 2019/20: R213 million and 2020/21: R227 million
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Social Worker Employment Grant

Payment schedule x Quarterly instalments on 12 April 2018; 12 July 2018; 11 October 2018 and 14 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Develop a standardised template for the business plan
receiving officer x Assist provincial departments of Social Development in planning for the 2019/20 financial year
x Develop a standard template for reporting by provincial departments of Social Development
x Assess and approve business plans as submitted by provincial departments of Social Development
x Facilitate approval of payment schedule and approval of in-year adjustments to the payment schedule by
National Treasury
x Monitor implementation and provide support on a monthly and quarterly basis
x Submit monthly financial reports to National Treasury 20 days after the end of each month
x Monitor utilisation of the grant against set outputs and outcomes by taking appropriate action in cases of
non-compliance with the framework and payment schedule
x Consolidate and submit quarterly performance reports to National Treasury within 45 days after the end of
each quarter
x Submit an annual evaluation report four months after the end of the 2018/19 financial year
Responsibilities of provincial departments
x Provincial departments of Social Development must provide the DSD and National Treasury with a list of all
graduates employed with the grant, including (for each worker) their salary levels, type of service or sector
they are employed in, and tools of trade provided using grant funds.
x Establish provincial project governance structure to be functional for the duration of the grant
x Submit and implement signed-off business plans as approved by DSD in the standardised template
x Submit claims in the claims certificate, to DSD to allow transfer of funds in line with approved payment
schedule
x Submit signed-off monthly financial report to DSD which include expenditure against spending plans
15 days after the end of reporting month (BAS report)
x Submit signed-off quarterly performance report to DSD within 30 days after the end of each quarter
x Submit lists of 2017 social work graduates as update to 2017/18 backlog
x Submit lists of social work graduates employed by other sectors and remove such names from the provincial
database of unemployed social work graduates
x Ensure provision of supervision to newly employed social workers using provincial equitable share and
report to DSD on a quarterly basis
x Implement induction programme for newly employed social work graduates using provincial equitable share
x Submit request for approval of any amendments to approved business plans
x Submit an annual evaluation report two months after the end of the 2018/19 financial year
x Develop a costed plan for employment of the current graduates beyond the MTEF allocation
Process for approval of x Engagements with provincial DSDs through heads of social development meeting/s between
2019/20 business plans September/October 2018 for orientation on the 2019/20 framework
x Provinces to submit revised business plans by January 2019
x Submit final revised provincial business plans, including cash flow projections and compliance certificates
signed off by heads of departments by 15 February 2019
x Approval of revised provincial business plans by the transferring officer by 25 March 2019
x Approval of payment schedule by National Treasury by 01 April 2019
 182

Substance Abuse Treatment Grant

Transferring department x Social Development (Vote 17)
Grant schedule x Schedule 5, Part A
Strategic goal x To strengthen the harm reduction programme by providing treatment for substance abuse
x To improve access to public substance dependency treatment facilities
Grant purpose x To provide funding for the operationalisation (including the purchasing of equipment) of substance
dependency treatment facilities in the provinces of Eastern Cape, Free State, Northern Cape and North
West
Outcome statements x Reduction in recurrence of substance abuse
x Affordable public treatment programmes
Outputs x Four operational substance dependency treatment facilities
Priority outcome(s) of x Outcome 2: A long and healthy life for all South Africans
government that this grant
primarily contributes to
Details contained in the business x The business plan will include the following:
plan o project background
o project objectives
o scope of the work
o deliverables and outputs to be achieved
o quarterly reporting requirements
o risk assessment with mitigation plan
Conditions x The substance dependency treatment facilities are to be operationalised in compliance with the
Prevention of and Treatment for Substance Abuse Act, 2008 (Act No. 70 of 2008), its regulations and
norms and standards
x All centres must be registered as a treatment centre before commencing with operations
x Centres must comply with occupational health and safety standards
x All the facilities should adhere to the National Health Act (Act No. 61 of 2003)
x All required reports must be signed-off by the relevant delegated official within the provincial
department
x Operational business plans must be signed off by the Head of Department (HoD) of the provincial
Department of Social Development and submitted to the national Department of Social Development
(DSD) by 1 February 2018
x The flow of the first instalment of the grant depends upon receipt of the following by DSD:
o monthly progress reports via the infrastructure reporting model (IRM) including a narrative
progress report on projects
o status report on the provinces readiness to commence with operationalisation of the facility
o operational business plan signed by the HoD of the provincial DSD
o spending plan for operationalisation expenditure for the 2018/19 financial year
x The flows of the subsequent tranches are dependent upon DSD and National Treasury receiving:
o monthly financial reports
o monthly IRM reports
o quarterly statistics measuring the intake profile of service users and staff from facilities that are
operational
x Provincial DSDs to provide sustainability plans to the national DSD by 31 August 2018
Allocation criteria x Provinces were allocated funds according to the cost calculations for a standard design guideline of a
substance dependency treatment facility
Reasons not incorporated in x This grant supplements the cost of running the newly constructed public substance abuse treatment
equitable share facilities in Eastern Cape, Free State, Northern Cape and North West
Past performance 2016/17 audited financial outcome
x Of the R96 million made available, R85.5 million was transferred to provinces (88.6 per cent), of
which R14.6 million (15.1 per cent) was spent by the end of the financial year
2016/17 Service delivery performance
x Free State
o a revised construction programme was received from the contractor on 24 march 2017
o at construction phase at the end of the financial year
o clear view fence - 15 per cent
o road paving - 50 per cent
o storm water channel - 90 per cent
o sewer line started at site boundary
o superstructure brickwork to block d - 90 per cent, block c and g at 70 per cent, block f at 80 per
cent
x Northern Cape
o a revised project implementation plan has been submitted. Earthworks have been completed and
construction works are in progress
Projected life x The temporary allocation for operationalisation of the centers commenced in 2017/18 and will
continue until 2020/21; thereafter will be added to the equitable share baseline
 183

Substance Abuse Treatment Grant

MTEF allocations x 2018/19: R71 million; 2019/20: R75 million and 2020/21: R79 million
Payment schedule x Quarterly instalments on 25 April 2018; 27 July 2018; 23 October 2018 and 25 January 2019
Responsibilities of the Responsibilities of the national department
transferring officer and x Monitoring compliance to conditional grant framework
receiving officer x Develop a standardised reporting format for provinces to report on their monthly financials, as well as
quarterly statistics reports to be provided by 1 February 2018
x Monitor implementation through site visits and provide appropriate support
x Provide the guidelines and criteria for the development and approval of the operational business plan
x Submit an annual evaluation report after the end of the 2017/18 financial year, four months after the
financial year end
x Provide National Treasury with a quarterly report against the project plan 45 days after the end of each
quarter
x Facilitate a process to guide the allocation criteria of funds for operation budgets starting 2018/19
x Submit monthly financial reports to National Treasury 20 days after the end of the month
x Monitor the utilisation of the grant against the set outcomes and take appropriate action in cases of
non-compliance with the framework
Responsibilities of provincial departments
x Submit an operational business plan to national DSD in the template provided
x Provinces to implement the business plan as approved by national DSD
x Submit monthly financial reports to DSD 15 days after the end of the month
x Approve monthly IRM reports within 15 days after the end of the reporting month if construction is
being finalised
x Submit signed copies of approved IRM reports to National Treasury within 22 days after the end of
each month
x Submit quarterly performance reports to national DSD within 20 days after the end of each quarter
x Provinces to submit evaluation reports to national DSD two months after the end of the financial year
x Ensure that claims are submitted to national DSD to allow for transfer of funds by national DSD in
line with the payment schedule approved by the National Treasury
Process for approval of the x Engagement with provincial departments on submission of business plans from August 2018 to
2019/20 business plans January 2019
x Provinces submit revised business plan to the national DSD by 14 November 2018
x Submit final provincial business plan, including cash flow projections and compliance certificates
signed off by Ho'¶VIRU9/20 financial year to the national DSD by 1 February 2019
x The transferring officer approves provincial business plans by 29 March 2019
 184

SPORT AND RECREATION SOUTH AFRICA

Mass Participation and Sport Development Grant

Transferring department x Sport and Recreation South Africa (Vote 40)
Grant schedule x Schedule 5, Part A
Strategic goal x ,QFUHDVLQJFLWL]HQV¶DFFHVVWRVSRUWDQGUHFUHDWLRQ activities
Grant purpose x To facilitate sport and active recreation participation and empowerment in partnership with relevant
stakeholders
Outcome statements x Increased and sustained participation in sport and active recreation
x Improved sector capacity to deliver sport and active recreation
Outputs x School sport
o people supported to participate in the National School Sport Championships
o people participating in school sport tournaments at a district level
o people trained
o schools provided with equipment and or attire
o school sport coordinators remunerated
o school sport structures supported
Community sport and active recreation
x Community sport
o people actively participating in organised sport and active recreation events
o active recreation events organised and implemented
x Siyadlala
o youth participating at the National Youth Camp
o people trained
o indigenous games clubs participating in Indigenous Games Tournaments
o hubs provided with equipment and or attire
x Club development
o local leagues supported
o people trained
o clubs participating in the Rural Sport Development Programme
o clubs provided with equipment and or attire
x Club pilot in Limpopo and KwaZulu-Natal
o clubs trained using the toolkit
o clubs in the pilot project supported as per the service level agreement (SLA)
x Sport academies
o athletes supported by the sport academies
o sport academies supported
o people trained to deliver the sport academy programme
o sport focus schools supported
x National training centre in Free State
o construction of the national training centre
x Transversal matters
o sport and active recreation projects implemented by the provincial sports confederation
o provincial programmes implemented
o branding material procured as per specifications
x Management
o staff appointed on a long term contract
o administration standards met
Priority outcome(s) of x Outcome 14: Nation building and social cohesion
government that this grant
primarily contributes to
Details contained in the x Grant purpose
business plan x Outcome indicators
x Grant outputs
x Output indicators
x Key activities
Conditions Provincial compliance
x Provinces must ensure that:
o all structures at all levels are aligned to the 16 Sport and Recreation South Africa (SRSA) priority
codes to contribute to seamless service delivery
o 50 per cent of hubs and clubs supported must be from rural and farm areas
o performance evidence is timeously submitted irrespective of the status of the project as per the
technical indicator descriptors
o funds from this grant are not used on projects falling outside the scope of the grant unless
following a written request, approval to such effect is granted by the SRSA transferring officer
 185

Mass Participation and Sport Development Grant

x The provincial allocation is rationalised after the deduction of 10 per cent for the national training
centre and three per cent for the club development pilot project from the national grant allocation.
x The provincial allocation is then balanced out to 100 per cent in order for the respective provinces
funding to be aligned and allocated consistently
x The provincial allocation must be utilised as follows:
o school sport 38 per cent
o community sport and active recreation 35 per cent
o sport academies 11 per cent
o transversal matters 7 per cent
o management 9 per cent
x provinces based on their provincial dynamics may apply to the transferring officer to change the above
sub-allocations
School sport: 38 per cent
x Provinces must ring-fence R10 million to provide transport, attire and delivery of provincial teams to
the national school sport championships. Provincial allocation to provinces will consider funds
necessary for hosting national championship games and will include accommodation, breakfast and
dinner for the provinces that will be hosting the three national championship games this year,
(2018 autumn). Provincial allocations will already reflect the deduction of the amount for
accommodation
x The remaining school sport allocation must be allocated as follows:
o 10 per cent for training of people to deliver school sport
o 20 per cent to purchase equipment and or attire for schools below quintile 3 identified through
participation in leagues
o 40 per cent to deliver district and provincial competitions
o 15 per cent to remunerate coordinators who coordinate, support, monitor and evaluate school
sport at district and local level
o 15 per cent to support school sport structures
Community sport and active recreation: 35 per cent
Siyadlala: 17 per cent
x Youth Camps:
o provinces must ring-fence R3 million for the national youth camp to provide transport,
accommodation, meals, attire, security, public liability, medical support, stationery, and the costs
associated with plenary meetings
x The remaining Siyadlala allocation must be allocated as follows:
o 40 per cent for organising and implementing
o 20 per cent for tournament support, such as transport and catering
o 10 per cent to purchase equipment
o 10 per cent to purchase attire
o 5 per cent for ministerial outreach programmes
o 15 per cent for training
Club development: 18 per cent
x The portion of the grant ring-fenced for club development must be used as follows:
o 25 per cent to support the clubs that are participating in the Rural Sport Development Programme
o 15 per cent for training in sport administration; team management; coaching or technical
officiating
o 40 per cent for leagues
o 20 per cent to purchase sport equipment and attire
Sport academies: 11 per cent
x The allocation must be used for the establishment and development of district and provincial
academies in line with sport academies framework and guidelines of SRSA
o 10 per cent for training in the following: talent identification and scouting, coaching, medical and
scientific, life skills and counselling
o 40 per cent for resourcing in terms of equipment and remuneration of personnel of district and
provincial academies
o 35 per cent for athlete support as documented in the academy framework
o 15 per cent for sport focus schools
x The allocation must be used to provide support to accredited sport focus schools that meet the specified
requirements outlined in the sport academies framework. Provision of support to schools includes
amongst others the following:
o upgrading sport facilities
o resourcing them with a gymnasium
o putting a basic medical facility/room with basic equipment
o providing sport codes specific equipment
Transversal matters: 7 per cent
x Provincial Sport Confederation: 3 per cent
x Provinces may transfer funds to the provincial sport confederation provided:
o a transfer plan has been developed and submitted together with a signed business plan approved by
SRSA
 186

Mass Participation and Sport Development Grant

o a service level agreement has been entered into between the provincial department and the
provincial sport confederation stating clearly what is expected of the provincial sport confederation
o a monitoring mechanism is in place to monitor expenditure and performance by the sport
confederation as per the SLA
x Provincial Programmes: 3 per cent
o these are specific provincial programmes that contribute to the main purpose of the grant
x Branding: 1 per cent
o the allocation must be used to provide branding for all programmes that are funded through the
Conditional Grant. Annually there will be dedicated allocation to specified branding material
o the SRSA corporate identity manual must be utilised for all matters relating to programming and
branding
Management: 9 per cent
x Appointing staff: 6 per cent
o the portion of the grant ring-fenced for the appointment of staff must be used to appoint staff on a
three year contract. The appointed staff must implement conditional grant programmes. The
allocation is not for support staff in programmes such as finance, planning, monitoring and
evaluation or research
x Administration: 3 per cent
x provinces are expected to use this portion of allocation to ensure that all their submissions are
packaged properly (These will vary from business plans, Projects Implementation Agreement, reports
(monthly, quarterly, and annual)
Allocation Criteria x Each province is allocated a baseline of R20 million, thereafter the equitable share formula is applied
to determine the remaining amount
x The Northern Cape allocation is increased due to a need to increase participation in the rural areas,
R2 million and R3 million is deducted from Gauteng and KwaZulu-Natal to fund this. three per cent
per province is reallocated equally to Limpopo and KwaZulu-Natal for the club development pilot
x 10 per cent per province is reallocated to the Free State for the national training centre
Reasons not incorporated x The conditional grant is assisting the sport sector in implementing the National Sport and Recreation
in equitable share Plan and National Development Plan objectives
Past performance 2016/17 audited financial outcomes
x R556 million was allocated, of this R555 million was transferred to provinces, of the total
R561 million including the provincial roll-over of R5.6 million. An amount of R553 million was spent
(99 per cent) by provinces
2016/17 service delivery performance
x 342 050 people actively participating in organised sport and active recreation events
x 67 297 learners participating in school sport tournaments at district level
x 2 964 schools, hubs and clubs provided with equipment and/ or attire
x 4 358 athletes supported by the sport academy
x 38 sport academies supported
Projected life x Grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R587 million; 2019/20: R620 million and 2020/21: R654 million
Payment schedule x Four instalments: 31 May 2018; 31 August 2018; 30 November 2018 and 31 January 2019
Responsibilities of national Responsibilities of the national department
transferring officer and x Evaluate annual reports for the 2017/18 grants for submission to the National Treasury by
receiving officer 27 July 2018
x Agree on outputs and targets with provincial departments in line with grant objective for 2019/20 by
24 August 2018
x Provide the guidelines and criteria for the development and approval of business plans
x Monitor implementation and provide support
x Submit approved business plan for 2018/19 to the National Treasury on 30 April 2018
x Submit quarterly performance reports to National Treasury 45 days after the end of each quarter
x Ensure that all the conditional grant practice notes issued by National Treasury are adhered to
x Desktop monitoring: monthly and quarterly reports analysis received by provinces
x Physical verification visits to the provinces to verify what has been reported in the monthly and
quarterly reports
x Quarterly review sessions with all role players of the conditional grant from the provinces
x May implement internal mechanisms to manage the quarterly disbursements of the grant where there is
non-compliance with the conditions of the grant and this may include withholding and reallocation of
tranche payments
Responsibilities of provincial departments
x Submit the 2017/18 annual evaluation report to SRSA by 31 May 2018
x Submit monthly reports as per the requirements contained in the 2018 Division of Revenue Act
x Monitor progress of programmes delivered through the conditional grant
x Ensure that conditional grant managers attend all national conditional grant meetings
x Ensure that capacity exists to manage the grant and that there is a grant manager responsible for the
grant framework, planning, implementation and reporting
 187

Mass Participation and Sport Development Grant

x Ensure organisational capacity to deliver on the programmes that are implemented through the grant
Process for approval of x Provinces provide draft business plan to SRSA by 16 October 2018
2019/20 business plans x SRSA evaluates draft business plans by 23 November 2018
x Comments sent to provinces by 30 November 2018
x Provinces submit revised business plans to SRSA by 31 January 2019
x Head of Department approves business plan by 15 February 2019
x SRSA submits business plans to National Treasury by 29 March 2019
 188

TRANSPORT GRANTS

Provincial Roads Maintenance Grant

Transferring department x Transport (Vote 35)
Grant schedule x Schedule 4, Part A
Strategic goal x To ensure efficient and effective investment in provincial roads to implement the Road Infrastructure
Strategic Framework for South Africa LQOLQHZLWKWKH6¶KDPED6RQNHroad programme and other related
road infrastructure asset management programmes
Grant purpose x To supplement provincial investments for road infrastructure maintenance (routine, periodic and special
maintenance)
x To ensure that all roads are classified as per the Road Infrastructure Strategic Framework for South
Africa and the technical recommendations for highways, and the Road Classification and Access
Management guidelines
x To implement and maintain Road Asset Management Systems (RAMS)
x To supplement provincial projects for the repair of roads and bridges damaged by unforseen incidences
including natural disasters
x To improve the state of the road network serving electricity generation infrastructure
x To improve road safety with a special focus on pedestrian safety in rural areas
Outcome statements x Improve the condition and lifespan of provincial roads and level of service
x Improved rates of employment and community participation through labour-intensive construction
methodologies and skills development through the delivery of roads infrastructure projects
Outputs x Final Road Asset Management Plan (RAMP) and tabled project list for the 2018 Medium Term
Expenditure Framework (MTEF) in a Table B5 format by 30 March 2018
x Network condition assessment and determination of projects priority list from the RAMS
x The following actual delivery related measures against 2018/19 targets defined in the final RAMP and
annual perfomance plan (APP) for each province:
o number of m² of surfaced roads rehabilitated (quarterly)
o number of m² of surfaced roads resurfaced (overlay or reseal)
o number of m² of blacktop patching (including pothole repairs)
o number of kilometres of gravel roads re-gravelled
o number of kilometres of gravel roads bladed
o number of kilometres of gravel roads upgraded (funded from provincial equitable share)
x The following performance based on national job creation indicators
o number of jobs created
o number of full time equivalents created
o number of youths employed (18 ± 35)
o number of women employed
o number of people living with disabilities employed
x Reporting on the provinces contractor development programme
o number of small medium micro enterprises contracted
x Submission of updated road condition data (paved and unpaved) including instrumental/ automated road
survey data, traffic data, safety audit report and bridge condition report by 28 September 2018
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this grant
primarily contributes to
Details contained in the x This grant uses a RAMP, which contains the following details:
Road Asset Management o network hierarchy
Plan (RAMP) o performance management framework
o gap analysis
o information and systems, lifecycle planning
o current and future demand
o financial plan
o monitoring, reviewing and continual improvements
Conditions x This grant funds routine, periodic and special maintenance
x Provinces must show commitment by budgeting from the provincial equitable share to match or exceed
grant allocations
x Improvements, upgrading from gravel to surface roads and new facilities must be funded from the
provincial equitable share
x Provinces may use a maximum of 25 per cent of the allocation for rehabilitation activities
x The framework must be read in conjunction with the practice note as agreed with National Treasury
x The payment of the first instalment is dependent upon submission to the national Department of
Transport (DoT) and the relevant provincial treasury of the following:
o planning for the infrastructure reporting model (IRM) for 2018 MTEF by 23 April 2018
o final RAMP and tabled project list for the 2018 MTEF in a Table B5 format by 30 March 2018
o submission to DoT of the third quarter performance report of the 2017/18 financial year
x Payment of subsequent instalments is dependant upon the submission of monthly IRM and qaurterly
performance reports
 189

Provincial Roads Maintenance Grant

x The following amounts per province must be used in 2018/19 for the repair of infrastructure damaged by
floods declared in respective provincial gazettes, and as verified by the National Disaster Management
Centre (NDMC):
o Eastern Cape: R80 million
o Limpopo: R130 million
x Should the cost of repairing the disaster affected infrastructure exceed the amounts earmarked above
provinces must fund that shortfall from their provincial equitable share
x Business plans for the allocated disaster funds must be in line with the post disaster verification
assessment reports and must be submitted to the NDMC and DoT prior to the transfer of the allocation
x All new provincial roads new infrastructure projects funded through the grant must be branded on the
FRQWUDFWVLJQERDUGVZLWKWKH6¶KDPED6RQNHORJR
x 3URYLQFHV PD\ SDUWLFLSDWH LQ WKH 6¶KDPED 6RQNH programme technical support services of the DoT
through the Pulic Finance Management Act and Treasury Regulations
Allocation criteria x Allocations are based on the Public Roads Maintenance Grant formula, which takes into account the
extent of the provincial road network (gravel/paved), the traffic volumes, the visual condition indices on
the network and geo-climatic and topographic factors
x The funding for road networks supporting electricity generation infrastructure are subject to separate
allocation criteria based on the programme schedule
o Mpumalanga must allocate R501 million in 2018/19 to coal haulage road projects
x The funding for rehabilitation and repair of roads and bridges that were assessed by the NDMC is subject
to separate allocation criteria
x R1.1 billion top-up for 2019/20 will be redistributed to provinces as an incentive per level of service
efficiency achieved in road project investments, undertaken in the 2018/19 financial year as a
performance indicator
x Allocation criteria from 2018/19 onwards shall consider compliance by provinces in submitting recently
updated road condition data/reports
Reasons not incorporated in x This grant is intended to ensure that provinces give priority to road infrastructure and promote efficiency
equitable share in road investment
Past performance 2016/17 audited financial outcomes
x Of the R10.8 billion allocated, R10 billion, (93.4 per cent) was spent by provinces by the end of the
national financial year
2016/17 service delivery performance
x 31 113 m² of roads re-sealed
x 3 775 km of roads re-gravelled
x 1 534 166 m² of roads patched
x 398 113 km bladed
x 1 266 km rehabilitated
Projected life x The grant is ongoing, but will be subject to periodic review
MTEF allocations x 2018/19: R11 billion; 2019/20: R11.5 billion and 2020/21: R12.1 billion
Payment schedule x Payment will be made in accordance with a payment schedule agreed to with provinces and approved by
National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Submit quarterly performance reports to National Treasury 45 days after the end of each quarter
receiving officer x Submit a grant evaluation report to National Treasury 4 months after the end of the financial year
x Review the performance based allocation mechanism for use in determining future allocations
x Confim the correctness of submitted data by provinces by assessing a representative sample
Responsibilities of provincial departments
x Provincial departments must submit monthly infrastructure reports that comply with the IRM to DoT and
the relevant provincial treasury
x Submit completed quarterly performance report templates 30 days after the end of each quarter
x 3URYLQFLDOGHSDUWPHQWVPXVWLPSOHPHQWWKHLUSURMHFWVLQOLQHZLWKWKH6¶KDPED6RQNHDQGthe Expanded
Public Works Programme guidelines
x Ensure that approved grant funded projects are published as part of the Estimates of Provincial Revenue
and Expenditure through the provincial legislative system and processes
x Ensure projects are selected using RAMS as the primary source of information
x Design and implement projects in compliance witKWKH6¶KDPED6RQNH3ULQFLSOHVand Expanded Public
Works Programme guidelines
Process for approval of the x Provinces must submit a draft 2018/19 RAMP with a minimum of five years of planned projects selected
2019/20 Road Asset using RAMS as the primary source, by 28 September 2018
Management Plan (RAMP) x RAMPs, including 2018 MTEF prioritised project lists must be reviwed by DoT and feedback provided
by 30 January 2019
x Provinces to submit final 2018/19 RAMP to DoT, relevant provincial treasury and National Treasury by
29 March 2019
 190

Public Transport Operations Grant

Transferring department x Transport (Vote 35)
Grant schedule x Schedule 4, Part A
Strategic goal x Subsidised road based public transport services
Grant purpose x To provide supplementary funding towards public transport services provided by provincial departments of
transport
Outcome statements x The provision of public transport services in terms of contracts which are kilometre based and affordable to
the users of the services
x Improve efficiencies in public transport spending
Outputs x Number of vehicles subsidised
x Number of cumulative annual vehicles subsidised
x Number of scheduled trips
x Number of trips operated
x Number of passengers
x Number of kilometres
x Number of employees
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this grant
primarily contributes to
Details contained in the x Not applicable
business plan
Conditions x This conditional grant, which is supplementary, is a national contribution to subsidised service contracts
entered into by the provincial departments of transport and public transport operators for the provision of
affordable subsidised transport services
x The contracting authority must supervise, monitRU DQG YHULI\ WKH FRUUHFWQHVV RI WKH RSHUDWRUV¶ claim in
terms of the kilometres of service provided and provide a monthly summary report to the transferring
officer
x If the contracting function is devolved to any municipality before the 2018/19 adjustment budget, the
appropriate portion of the grant will also be devolved to the municipality. Where contracts are not
devolved provinces must continue performing the contracting function until it is assigned to a municipality
in terms of the provisions of the National Land Transport Act (NLTA) 5 of 2009
x The implementation of the devolution should be in terms of section 17 of the 2018 Division of Revenue
Act (DoRA)
x The municipality and province will have to make transitional arrangements to ensure payments to
operators meet contractual commitments. Should contracts be devolved during 2018/19, a service level
agreement between the province and the municipality must be signed and funds must flow in line with
2018 DoRA requirements. Provinces must take all reasonable measures to assist the transition within a
framework to be prescribed by the national Department of Transport (DoT) and National Treasury
x In cases where contracts are transferred in terms of section 12(1) of NLTA as part of the integrated public
transport network (IPTN) of the municipality, the funds allocated to such contracts must be ring-fenced
and transferred to the municipalities taking over the contracts from provinces
x For the purpose of planning, provinces must share relevant information with municipalities, where services
link to integrated public transport networks
x All new contracts, including dHVLJQVDQGRSHUDWRUV¶EXVLQHVVSODQVGHWDLOLQJVXEVLGLVHGVHUYLFHV, must be
approved by the Public Transport Integration Committee (PTIC), and be in line with relevant legislation
and in compliance with the public transport strategy. Where an Intermodal Planning Committee is
established at municipal level, in terms of the National Land Transport Act (NLTA), the functions of the
two committees must be consolidated to ensure integration of planning, services and modes
x Provinces must ensure that PTIC are functional and that no new contracts are paid from the grant if they
are not approved by the PTIC
Arrangements for the IC52/97 (Moloto Road Bus Contract)
x Part of *DXWHQJ¶V allocation is ring-fenced, in 2018/19, for the IC52/97 (Moloto Road Bus Contract) as
determined by National Treasury, after consultation with the national Department of Transport and the
province
x In the event that a service level agreement is signed between Gauteng and the national Department of
Transport, Gauteng must make payments to the national Department of Transport as stipulated in the
service level agreement
x Should Gauteng fail to make payment to the national Department of Transport, as per the specified terms
in the service level agreement, the National Treasury, after consultation with the national Department of
Transport, may take appropriate interventions as provided for in the 2018 Division of Revenue Act
Allocation criteria x The allocations are based on 2009 DoRA allocation baseline, weighted for the average shares of historical
contributions that supplement the grant. Provinces/contracting authorities should determine individual
RSHUDWRU¶VEXGJHWs and ensure that the operation stays within the allocation or provide supplementary funds
from the provincial budget
Reasons not incorporated in x Subsidies are earmarked for the provision of public transport services
equitable share
 191

Public Transport Operations Grant

Past performance 2016/17 audited financial outcome
x Allocated and transferred R5.4 billion to provinces of which R5.2 billion was spent by the end of the
national financial year
2016/17 service delivery performance
x Number of cumulative annual vehicles subsidised 77 831
x Number of vehicles subsidised 67 343
x Number of kilometres subsidised 242 012 716
x Subsidy per passenger R17.37
x Subsidy per kilometre operated R21.66
x Kilometres operated per vehicles 3 109
x Passengers per vehicle 3 877
x Passengers per trip operated 49
x Employees per vehicle 2
Projected life x As provided for in the National Land Transport Act 5 of 2009
MTEF allocations x 2018/19: R6 billion; 2019/20: R6.3 billion and 2020/21: R6.7 billion
Payment schedule x Monthly instalments according to a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Maintain national database with key performance indicators of public transport services as per data
receiving officer received from contracting authorities
x Advise contracting authorities regarding the design of contracted services
x Draft public transport operational subsidy policy by 2019
x In the event that a service level agreement is signed between Gauteng province and the national department
for the management of the IC52/97 contract, the service level agreement must include provision for
capacity and resources needed to administer the contract
Responsibilities of provincial departments
x Any contractual agreement entered into by a contracting authority in relation to this grant will be the
responsibility of the contracting authority
x As a supplementary grant, provincial departments remain responsible for funding any shortfall on
provision of this service funded through the provincial equitable share
x (QVXUHWKDWFRQWUDFWHGRSHUDWRUV¶FHUWLILHGFODLPVDUHSDLGZLWKLQ30 days from the date of receipt
x Certify and submit monthly performance reports to DoT within 25 days after the month following the
operation, and quarterly performance reports within 30 days after the end of each quarter using the
reporting format developed by DoT
x Provinces must inform the transferring officer of any disputes or challenges experienced with
municipalities so as to avoid service disruptions
Process for approval of the x Not applicable
2019/20 business plans
 192

ANNEXURE W3:

FRAMEWORKS FOR CONDITIONAL

GRANTS TO MUNICIPALITIES
 193

Annexure W3: Frameworks for Conditional

Grants to Municipalities

Detailed frameworks on Schedule 4, Part B; Schedule 5, Part B;

Schedule 6, Part B; and Schedule 7, Part B grants to municipalities

Introduction
This annexure provides a brief description for each grant in Schedule 4, Part B; Schedule 5,
Part B; Schedule 6, Part B; and Schedule 7, Part B of the 2018 Division of Revenue Bill. The
following are key areas considered for each grant:
x Strategic goal and purpose of the grant
x Outcome statements and outputs of the grant
x Priority outcome(s) of government that the grant primarily contributes to
x Conditions of the grant (additional to what is required in the Bill)
x Criteria for allocation between municipalities
x Rationale for funding through a conditional grant
x Past performance
x The projected life of the grant
x 2018 MTEF allocations
x The payment schedule
x Responsibilities of transferring national department and receiving municipalities
x Process for approval of business plans for 2019/20

The attached frameworks are not part of the Division of Revenue Bill, but are published in
order to provide more information on each grant to parliament, legislatures, municipal
councils, officials in all three spheres of government and the public. Once the 2018 Division
of Revenue Bill is enacted, these frameworks will be gazetted in terms of the Act.
The financial statements and annual reports for 2018/19 will report against the Division of
Revenue Act, Division of Revenue Amendment Act and their schedules, and the grant
frameworks as gazetted in terms of the Act. Such reports must cover both financial and
non-financial performance, focusing on the outputs achieved.
 194

COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS GRANTS

Municipal Disaster Relief Grant

Transferring department x Cooperative Governance and Traditional Affairs (Vote 4)
Grant schedule x Schedule 7, Part B
Strategic goal x To enable a timely response to immediate needs after a disaster has occurred
Grant purpose x To provide for the immediate release of funds for disaster response
Outcome statements x Immediate consequences of disasters are mitigated
Outputs x Emergency repair of critical infrastructure
x Emergency provision of goods and services
Priority outcome(s) of x Outcome 9: Responsive, accountable, effective and efficient developmental local government
government that this grant
primarily contributes to
Details contained in the x Applications for funding from this grant use the National Disaster Management Centre (NDMC)
business plan disaster grant guideline which includes the following:
o copy of the applicable contingency plan and emergency procedures in use by the municipality
(Section 49(1)(d) of the Disaster Management Act)
o copy of the classification letter in terms of the Disaster Management Act
o copy of the declaration of a state of disaster in terms of the Disaster Management Act
o number of people affected and the extent of damage and losses
o sectors affected
o total funds required for disaster response
o resources (both financial and in-kind) allocated by the municipality to respond and mitigate the
effects of the disaster
o resources (both financial and in-kind) committed by other role players, including provinces, the
private sector, national departments and non-government organisations
o consolidated project cash flow as an annexure
o intervention and mitigation strategies as per the disaster management plan
o cost-benefit analysis of the projects to be implemented
x An implementation plan with the following:
o details of the projects to be repaired including GPS coordinates
o costs of the project
o consolidated projects cash flow over a three month period as an annexure to the implementation
plan
x An application for a funding contribution may be based on the rapid assessment and verification (draft
versions of the supporting documentation required above may be accepted for the initial application)
Conditions x Copies of the disaster declaration and classification letter in terms of the Disaster Management Act
must be submitted to the NDMC
x This grant may only be used to fund expenditure in the event that the municipality responsible for the
provision of the affected service is unable to deal with the effects of the disaster utilising own
legislation/guidelines and resources
x Municipalities must fund a portion of the costs of the disaster response from their own budget, if
unable to do so, proof must be provided
x Funds from this grant may be utilised to reimburse municipalities for expenditure incurred which could
QRW EH DFFRPPRGDWHG ZLWKLQ WKH PXQLFLSDOLW\¶V RZQ EXGJHW. In cases where municipalities require
reimbursement of funds spent, municipalities are to consult the NDMC through the relevant Provincial
Disaster Management Centre (PDMC) for approval prior to spending the funds. Proof of expenditure in
the form of invoices must be availed to the relevant PDMC and NDMC in case reimbursement is
required. Items purchased must fall within the competency of municipalities
x Funds from this grant must be utilised within three calendar months following the date of the transfer
of the funds to the municipality
x A municipality may request the NDMC to apply to the National Treasury to approve that an allocation
be utilised more than three calendar months after the date of transfer, in terms of section 26(3)(d) of the
Division of Revenue Act
x The emergency procurement system provided for in Treasury Regulations should be invoked to ensure
immediate assistance by the affected municipalities
x A copy of the contingency plan for the relevant hazard is to be submitted with the funding request
Allocation criteria x The grant is allocated for declared and classified disasters, based on reports from assessments
conducted by the NDMC and PDMC and affected sectors of immediate disaster relief needs.
Additionally, it must be established that there are immediate disaster relief needs that cannot be met by
the municipality through the contingency arrangements already in place. The Accounting Officer for
the relevant organ of state must indicate in their application that the total funds required from the grant
for disaster response exceed the available resources and or resources already allocated for disaster
relief
x Funding may however be released in tranches, with the first tranche being based on an initial
assessment and verification of the disaster relief needs
Reasons not incorporated in x This grant provides funding for responding to and providing relief for unforeseeable and unavoidable
equitable share disasters
Past performance 2016/17 audited financial outcomes
x R270 million was allocated and R118 million was transferred to the Merafong City Local Municipality
in Gauteng Province to address damages caused by sinkholes
 195

Municipal Disaster Relief Grant

2016/17 service delivery performance
x Funding for emergency relief measures was provided to Merafong City Local Municipality for the
repair of damages caused by sinkholes
Projected life x This grant is expected to continue over the medium term, and will be subject to review
MTEF allocations x 2018/19: R349 million; 2019/20: R335 million and 2020/21: R354 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the National Disaster Management Centre
transferring officer and x Advise and guide municipalities and PDMCs about the existence of the grant and how grant funding
receiving officer can be applied for and the criteria to qualify for the grant
x Conduct a preliminary cost verification and submit this to the National Treasury for disasters that meet
criteria for funding within 14 days following receipt of the written initial funding request from the
PDMC and municipalities
x Together with the affected municipalities and provinces, conduct assessments of disaster impacts to
verify the applications for funding within 35 days following the receipt of written funding requests and
as per the requirements of the Disaster Management Act
x Submit funding request to National Treasury for consideration within 35 days following the receipt of
the written funding request from the municipalities through the PDMCs
x Confirm what support national sector departments are providing and ensure there is no duplication of
support
x Provide written advice on the timing of disbursements to municipalities and transfer these funds to
municipalities within five days of drawing the funds from the National Revenue Fund
x Notify the relevant municipality of a transfer at least one day before the transfer is made and transfer
the funds no later than five days after notification
x Notify the relevant PDMC together with the relevant sector departments, National Treasury and the
relevant provincial treasury of a transfer and reason for transfer within five days of the transfer of
funds to municipalities
x Build relationships and establish the necessary communication channels with relevant national and
provincial departments to ensure the country has a coordinated approach to disaster response
x Provide National Treasury and the relevant provincial treasury with written notification of the transfer
within 14 days of a transfer of this grant
x Provide expenditure reports to National Treasury in line with the Division of Revenue Act and the
Public Finance Management Act (PFMA) within 20 days after the end of each month
x Provide a performance report to National Treasury in the disaster allocation monitoring template
agreed to with the National Treasury within 45 days after the end of the quarter in which funds are
spent, with invoices as annexures to the report
x Together with the relevant PDMC monitor the implementation of disaster projects
Responsibilities of Provincial Disaster Management Centres
x Together with the affected municipalities and the relevant sector departments, conduct initial
assessments to verify the impact of the disaster for applications for funding within 14 days following
the occurrence of the incident
x Together with the NDMC and the affected municipalities, conduct assessments of disaster impacts to
verify the final applications for funding within 35 days following the occurrence of the disaster and as
per the requirements of the Disaster Management Act
x Confirm what support provincial sector departments are providing and ensure there is no duplication of
support
x Assist municipalities with requests for disaster funding, and monitor projects to ensure that the funds
are used for intended purposes and provide reports to the NDMC and relevant provincial treasury
x Coordinate, analyse and submit expenditure reports on progress regarding the implementation of the
projects to NDMC within 15 days after the end of each month in which funds are spent, with invoices
as annexures to the reports
x Coordinate, analyse and submit performance reports, which include evidence, on progress with
implementation of the projects to the NDMC within 35 days after the end of the quarter in which funds
are spent
x The PDMC should establish a project task team comprising of affected municipalities and sector
departments
x Monitor the implementation of disaster funds
x All reports must be signed off by the head of the PDMC
Responsibilities of municipalities
x Cooperate with the NDMC, relevant PDMC and provincial and national sector departments to conduct
damage assessment and cost verification
x Submit disaster assessment reports and funding requests to the PDMC within 14 days following the
declaration and classification of a disaster
x Municipalities must invoke emergency procurement processes provided for within the Treasury
Regulations when spending the funds allocated, to ensure immediate assistance to the affected
municipalities and must provide proof that measures were put in place to mitigate the occurrence in the
form of contingency plan for the specific hazard
x Municipalities must implement all projects approved and ensure that the funds allocated are spent for
the intended purposes
 196

Municipal Disaster Relief Grant

x Establish project task teams during the implementation of disaster projects
x Submit expenditure reports which include evidence (such as purchase invoices) of implementation
progress on the projects to the relevant PDMC within 10 days after the end of each month in which
funds are spent
x Submit a performance report which includes evidence of implementation progress on the projects to
the PDMC within 30 days after the end of the quarter in which funds are spent
x All reports must be signed-off by the Accounting Officer
Process for approval of x Not applicable
2019/20 MTEF allocations
 197

Municipal Disaster Recovery Grant

Transferring department x Cooperative Governance and Traditional Affairs (Vote 4)
Grant schedule x Schedule 5, Part B
Strategic goal x To restore functionality of municipal infrastructure following a disaster
Grant purpose x To rehabilitate and reconstruct municipal infrastructure damaged by a disaster
Outcome statements x Municipal infrastructure damaged by a disaster rehabilitated and reconstructed
Outputs x Municipal infrastructure damaged by a disaster reconstructed and rehabilitated
Priority outcome(s) of x Outcome 9: Responsive, accountable, effective and efficient developmental local government
government that this grant
primarily contributes to
Details contained in the x This grant uses the template/framework developed by the National Disaster Management Centre (NDMC)
business plan which must include a project implementation plan, highlighting:
o list of projects to be implemented in order of priority
o timeframes within which the projects will be implemented
o estimated costs of projects
o disaster risk reduction measures for the proposed reoccurrence of disaster related damage in the
future
o number of households to benefit from the projects and estimated jobs to be created
Conditions x A business plan and project implementation plan signed by the Accounting Officer aligned to the post
disaster verification assessment report must be submitted to the NDMC
x Disaster reconstruction and rehabilitation funds must only be utilised for approved projects as listed in the
post disaster verification assessment reports and approved business plans
x Monthly and quarterly financial and non-financial performance reports on disaster allocations must be
submitted to the NDMC through the relevant Provincial Disaster Management Centre (PDMC)
x Annual performance evaluation report on financial and non-financial performance to be submitted to the
NDMC through the relevant PDMC
x Municipalities must liaise and align the disaster recovery projects with the Municipal Infrastructure Grant
projects to ensure proper monitoring and reporting on the progress for implementation of the projects
x Transfers will only be made if municipalities have submitted financial and non-financial reports required
in terms of the 2018 Division of Revenue Act for this financial year and the previous financial year (if
funds for disaster recovery were allocated in that year)
x Funds will be transferred in tranches, the transfer of funds will depend on the past and current
performance of the municipalities in relation to the conditions of the grant in case funds for disaster
recovery were allocated in the previous year
Allocation criteria x The grant is allocated based on approved post disaster reconstruction and rehabilitation assessment
reports
x Only post disaster reconstruction and rehabilitation projects that have been submitted for verification
assessments within a six month time frame following a disaster will be considered
Reasons not incorporated x This grant caters for recovery after unforeseen disasters
in equitable share
Past performance 2016/17 audited financial outcomes
x R140 million was allocated and transferred (100 per cent) to municipalities
2016/17 service delivery performance
x Following disasters, the grant was provided for the repair and replacement of infrastructure in the
following municipalities:
o Umzumbe Local Municipality: repair roads and bridges
o eThekwini Metropolitan Municipality: repair roads and bridges
o Alfred Duma Local Municipality: repair storm water, roads, bridges and streetlights
o Umdoni Local Municipality: repair of roads and storm water drainage
o Nkomazi Local Municipality: repair of culverts
o Hessequa Local Municipality: repair of storm water infrastructure, municipal infrastructure and roads
Projected life x The 2018 budget only allocated funds for the 2018/19 financial year. Allocations for future years will be
considered through the budget process
MTEF allocations x 2018/19: R21 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the National Disaster Management Centre
transferring officer and x Advise municipalities about the existence of the grant and its conditions
receiving officer x Provide municipalities with a final post disaster verification assessment report that includes a project list
and projected costs for all infrastructure to be reconstructed or rehabilitated. This report must be provided
through the relevant PDMC
x Monitor the implementation of projects together with the affected municipalities and provinces
x Make payments to municipalities in accordance with the approved payment schedule
x Transfer funds only when evidence on project performance and expenditure reports are submitted
Responsibilities of the Provincial Disaster Management Centres
x Advise municipalities about the existence of the grant and its conditions
x Assist municipalities with the rapid assessment reports to be submitted to the NDMC
 198

Municipal Disaster Recovery Grant

x Provide support to municipalities with regard to the final post disaster verification report
x Ensure that the final post disaster verification report is signed-off by both the Accounting Officer in the
municipality and the provincial department
x Provide a copy of the final post disaster verification report to municipalities
x Assist municipalities with business plans incorporating the implementation plan and disaster risk
reduction measures for the proposed projects to prevent reoccurrence of disaster related damage in future
x Conduct on-site visits to monitor and report on the implementation of projects and provide reports of
progress to the NDMC
x Provide financial and non-financial reports to the NDMC within 10 days after the end of each month.
Photographs depicting the projects progress should be included as an annexure
x Provide expenditure and project performance reports including evidence to the NDMC within 35 days
after the end of the quarter in which funds are spent
Responsibilities of municipalities
x Develop and submit business plans incorporating implementation plans and disaster risk reduction
measures for the proposed projects to prevent reoccurrence of disaster related damages in future
x Conduct on-site visits to monitor and evaluate the impact of projects and provide reports which include
evidence to the NDMC through the relevant PDMC
x Utilise the funds in line with the approved post disaster verification assessment report
x Provide financial and non-financial reports to the PDMC within five days of the end of each month.
Photographs depicting the project progress should be included as an annexure
x Provide financial and non-financial performance reports signed-off by the Municipal Manager to the
PDMC within 30 days after the end of the quarter in which funds are spent
Process for approval of x Not applicable
2019/20 MTEF allocations
 199

Municipal Infrastructure Grant

Transferring department x Cooperative Governance and Traditional Affairs (Vote 4)
Grant schedule x Schedule 5, Part B
Strategic goal x Subsidise the capital costs of providing basic services to poor households
Grant purpose x To provide specific capital finance for eradicating basic municipal infrastructure backlogs for poor
households, microenterprises and social institutions servicing poor communities
x A Municipal Infrastructure Grant (MIG)-2 funding stream is introduced in 2018/19 as a step towards a new
funding arrangement for intermediate city municipalities to facilitate more integrated planning and funding
of capital investments
Outcome statements x Improved access to basic services infrastructure for poor communities
Outputs x Number of poor households impacted through the construction of new infrastructure and the upgrading and
renewal of existing infrastructure for:
o basic water and sanitation services
o central collection points for refuse, transfer stations, recycling facilities and solid waste disposal sites
o sport and recreation facilities
o street and community lighting
o public facilities
x Number of kilometres of municipal roads developed and maintained
x Number of work opportunities and Full-Time Equivalents (FTEs) created using the Expanded Public
Works Programme (EPWP) guidelines for the above outputs
Priority outcome(s) of x Outcome 9: Responsive, accountable, effective and efficient developmental local government
government that this
grant primarily
contributes to
Details contained in the MIG
business plan x This portion of the grant uses the MIG registration form as agreed with sector departments, which includes:
o project title
o sector
o timeframes for implementation
o cost of the project
MIG-2
x This portion of the grant uses a three-year capital programme that must be aligned with a 10-year Capital
Expenditure Framework
x The three-year capital programme must demonstrate alignment with the 10-year Capital Expenditure
Framework
x The three-year capital programme must provide the following detail for each sub-programme that is
partially or fully funded by MIG-2:
o classification of sub-programme as informal settlement upgrading, other new infrastructure or
infrastructure renewal
o anticipated outputs
o indication of the proportion of outputs that will be delivered in priority areas as identified in the
Spatial Development Framework (SDF)
o indication of the proportion of outputs that will benefit low-income households, high-income
households and non-residential customers
x The three-year capital programme must demonstrate appropriate co-funding for the portion of the
programme that does not benefit low-income households
Conditions MIG
x To receive the first tranche, municipalities must have followed the process for approval of 2018/19 projects
and have confirmed by 30 April 2018 with the Department of Cooperative Governance (DCoG), their
programme, project planning and implementation readiness in the form of an implementation plan that
includes cash flow projections
x Municipal allocations must be fully committed to registered projects prior to the year of implementation
and be informed by the Integrated Development Plans (IDPs) and three-year capital plans
x MIG priorities set by municipalities (as stated in their MIG implementation plans) can only be changed
in-year for other projects within the MIG project register, after municipal council approval
x MIG must be allocated and transferred directly to a category B or C municipality that has the powers and
functions for basic services referred to in section 84 of the Municipal Structures Act, to enable the
municipality to provide basic municipal infrastructure to the poor, in line with their functions
x Municipalities must prioritise MIG for eligible beneficiaries and infrastructure that includes:
 200

Municipal Infrastructure Grant

o basic residential infrastructure for the poor for water, sanitation, roads and stormwater, waste
management, street lighting, community facilities as well as associated municipal bulk and connector
infrastructure
o new or upgrading of municipal bulk, connector and reticulation infrastructure to support existing areas
and the formalisation of settlements
o renewal of eligible infrastructure servicing the poor subject to the confirmation by the relevant sector
department of the state of infrastructure and a commitment from the municipality of how on-going
operations and maintenance of the renewed infrastructure will be funded and performed
o maintenance of roads infrastructure mainly servicing the poor
x Municipalities must spend at least 60 per cent of their first transfer and comply with reporting provisions
before the second and subsequent transfers are made
x Municipalities must spend 40 per cent of their total MIG allocation by 31 December 2018
x Municipalities must comply with sector norms, standards and legislation as confirmed by sectors during the
MIG project registration processes
x Local municipalities investing in roads infrastructure must utilise data from the Rural Road Asset
Management System (RRAMS) where available, to identify and prioritise their investment on roads
projects including maintenance
x Municipalities with bucket sanitation backlogs in formal areas must prioritise the eradication of these
backlogs. Bucket eradication projects in formal areas must be planned in conjunction with provinces and
national government to ensure alignment of projects implemented by each sphere. Transfers may be
withheld or stopped if a municipality with substantial bucket sanitation backlogs does not comply with this
condition
x Ring-fenced sport infrastructure allocation:
o municipalities that have allocations gazetted as part of the ring-fenced allocation for specific sport
infrastructure projects may only spend these allocations on the projects identified by Sport and
Recreation South Africa (SRSA)
o municipalities must make use of transversal contracts approved by SRSA when implementing projects
funded from this allocation unless an exemption from this requirement is approved by SRSA
o initial transfers of funds from the ring-fenced R273 million to identified projects will be subject to
signing of a memorandum of understanding between SRSA and the beneficiary municipalities
o subsequent transfers of projects funded through the ring-fenced amount will also be subject to
approval by SRSA
x Sport infrastructure as part of the P-component:
o municipalities must submit technical reports for spending 33 per cent of their P-component allocation
on sport and recreation infrastructure projects
x All sport infrastructure plans and technical reports must be submitted as part of the normal MIG planning
process but will be reviewed and approved by SRSA to ensure they comply with norms and standards
before construction can begin
x Municipalities must ensure compliance to EPWP infrastructure guidelines in aligning their projects and
reporting the work opportunities created on the EPWP reporting system
x A municipality must consider procuring goods and services for water and sanitation projects through
nationally set up framework contracts, where available, before utilising municipal procurement processes
x Municipalities must submit monthly and quarterly reports in the prescribed national template and signed-
off by the Municipal Manager or delegated official
x Municipalities must utilise the Municipal Infrastructure Grant Management Information System (MIG-
MIS) to facilitate programme and project management and reporting
x A maximum of 5 SHUFHQWRIDPXQLFLSDOLW\¶V0,*DOORFDWLRQVPD\EHXVHGIRUSURMHFWPDQDJHPHQWFRVWV
related to grant-funded projects and only if a business plan for their Project Management Unit is approved
by 30 April 2018. If these funds (5 per cent) are not planned or spent for this purpose they must revert back
for MIG capital projects
x At least 95 per cent of municipalities' allocation must be used on eligible MIG funded projects, including
maintenance on roads mainly servicing the poor
x Withholding or stopping of transfers and reallocation or conversion of MIG allocations will be instituted
where municipalities do not comply with the conditions above
MIG-2
x Initial eligibility and qualification:
o uMhlatuze and Polokwane Local Municipalities are eligible for MIG-2 in 2018/19
x To qualify for the MIG-2 funding stream, the eligible municipalities must submit a first draft of the three-
year capital programme and 10-year Capital Expenditure Framework to the transferring officer by
30 March 2018
 201

Municipal Infrastructure Grant

x If the three-year capital programme and 10-year Capital Expenditure Framework are not in place, the
eligible municipalities will revert to the MIG funding stream
x To receive the first tranche the three-year capital programme and 10-year Capital Expenditure Framework
must have been approved through processes led by the Department of Cooperative Governance
x MIG-2 funds may be spent on:
o basic residential infrastructure for the poor for water, sanitation, roads, waste management, street
lighting, community facilities as well as associated municipal bulk and connector infrastructure
o expenditure may be on new infrastructure, upgrading existing infrastructure or renewing existing
infrastructure
o maintenance of roads infrastructure mainly serving the poor
x A maximum of 5 SHUFHQWRIDPXQLFLSDOLW\¶V0,*-2 allocations may be used for programme management
costs related to grant-funded projects and only if a business plan for their Programme Management Unit is
approved
x Municipalities must spend 60 per cent of their transferred MIG-2 funds by the end of the second quarter
x Local municipalities investing in roads infrastructure must utilise data from the RRAMS, where available,
to identify and prioritise their investment on roads projects; including maintenance
x Municipalities must submit quarterly reports in a prescribed format, signed-off by the municipal
Accounting Officer or delegated official
Allocation criteria x Part 5 of Annexure W1 to the 2018 Division of Revenue Bill sets out the MIG formula in detail, showing
how the formula incorporates backlog and poverty data
x The funds ring-fenced for sport infrastructure are allocated based on estimated costs of projects that:
o fill identified gaps and are confirmed with the provincial departments responsible for sport and the
municipalities
o align to the National Sport and Recreation Plan, National Sport Facilities Plan and transformation
imperatives
o align to priority sport codes
Reasons not incorporated x This is a specific purpose grant with conditions, objectives and distribution criteria different from that of
in equitable share the equitable share
Past performance 2016/17 audited financial outcomes
x The MIG programme was allocated R14.9 billion in the 2016/17 financial year. The full amount
was transferred and 93 per cent of this was spent
2016/17 service delivery performance
x Number of poor households impacted through the construction of new infrastructure and upgrading and
renewal of existing infrastructure for:
o 166 555 households basic water and 136 982 households sanitation services
o 105 005 households on street and community lighting
x Number of infrastructure constructed (new infrastructure and upgrading and renewal of existing
infrastructure):
o four central collection points for refuse, transfer stations, recycling facilities and solid waste disposal
sites developed
o 34 sport and recreation facilities developed
o 62 public facilities developed
x 1 145 kilometres of municipal roads developed
x 161 253 work opportunities and Full-Time Equivalents (FTEs) created using the Expanded Public Works
Programme (EPWP) guidelines for the above outputs
Projected life x The programme will continue up to 2020/21, subject to review
x The MIG-2 funding stream will be available for 2018/19 only and will be replaced by a new grant, the
Integrated Urban Infrastructure Grant in 2019/20
MTEF allocations x 2018/19: R15.3 billion; 2019/20: R15.7 billion and 2020/21: R16.6 billion
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x DCoG administers the MIG and co-ordinates its activities with all stakeholders, through appropriate
receiving officer structures. DCoG must:
o report to sector departments on outputs
o monitor expenditure and non-financial performance in collaboration with provincial DCoGs
o coordinate overall programme implementation
o provide support to municipalities in the utilisation of the MIG-MIS
o approve the final versions of the three-year capital programme and 10-year Capital Expenditure
Framework for the MIG-2 by 31 May 2018
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Municipal Infrastructure Grant

x The Municipal Infrastructure Support Agent (MISA) must:
o support municipalities that have been identified collaboratively by DCoG and its provincial
counterparts as needing assistance
o assist municipalities in the submission of asset management data where available, and provide the
necessary training on access and use of the Municipal Infrastructure Performance Management
Information System for the development of individual municipal asset registers where required
x In addition to their sector-specific responsibilities, each national sector department will be expected to:
o provide information on service delivery priorities per municipality as expressed within sectoral plans
and municipal IDPs
o fulfil a sectoral monitoring and guidance role on relevant sectoral outputs
x For the MIG funding stream, sector departments will be expected to:
o evaluate reports and provide final recommendations to the municipality by 28 September 2018
o confirm adherence to sector norms and standards for MIG funded projects through the MIG
registration process, which includes participation in the district appraisal processes
o confirm the current state of maintenance where municipalities have applied for funding of renewal
projects
o advise which sphere (provincial or national - even if different across provinces) should sign-off MIG
projects
o sign-off on project close out reports, thereby acknowledging the projects have been completed as
intended
x For the MIG-2 funding stream sector departments will be expected to participate in processes to approve
the 10-year Capital Expenditure Framework
x Department of Water and Sanitation must:
o support and monitor municipalities to prepare and implement water services development plans
o ensure alignment between the MIG programme, Regional Bulk Infrastructure Grant and the Water
Services Infrastructure Grant
o for the MIG funding stream, monitor and oversee progress on water and sanitation projects
implemented through the MIG
x Department of Environmental Affairs must support municipalities with planning and implementation of
solid waste management projects and monitor their performance and compliance with conditions applicable
to this sector
x Department of Energy must support municipalities with planning and implementation of public lighting
DQGPRQLWRUPXQLFLSDOLWLHV¶SHUIRUPDQFHDQGFRPSOLDQFHZLWKFRQGLWLRQVDSSOLFDEOHWRWKLVVHFWRU
x Department of Transport must support municipalities with planning and implementation of municipal roads
pURMHFWV LQ WHUPV RI WKH 55$06 GDWD DQG PRQLWRU PXQLFLSDOLWLHV¶ SHUIRUPDQFH DQG FRPSOLDQFH ZLWK
conditions applicable to this sector
x Sport and Recreation South Africa must:
o identify projects with targeted municipalities to be allocated funds outside of the MIG formula
o award transversal tenders for the procurement of services relating to sport infrastructure
o support municipalities with planning and implementation of municipal sport and recreation facilities
DQGPRQLWRUPXQLFLSDOLWLHV¶SHUIRUPDQFHDQGFRPSOLDQce with conditions applicable to this sector
o review, approve and sign-off all MIG projects before recommendation by the provincial sports
departments to the MIG appraisal committee
x Department of Public Works must:
o monitor compliance with the EPWP infrastructure guidelines and advise municipalities on the use of
labour intensive processes, systems, techniques and approaches
o monitor the number of work opportunities and FTEs created on MIG funded projects that contribute
towards EPWP and assist municipalities in meeting their set targets
o ensure that municipalities register their projects on the EPWP reporting system and monitor
compliance with norms and standards applicable to this sector
Responsibilities of provincial departments responsible for local government
x Coordinate technical support to municipalities
x Monitor performance of municipal Programme/Project Management Units and recommend relevant
sanctions for under-performance to DCoG
x Provide assistance to municipalities in managing municipal infrastructure projects
x Provide support to municipalities in the utilisation of the MIG-MIS
x For the MIG funding stream:
o monitor and reconcile reported expenditure with proof of payment signed-off by the municipality
o monitor the accuracy of project registration forms and coordinate monthly, quarterly and annual
reports from municipalities and forward them to DCoG
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Municipal Infrastructure Grant

o coordinate district appraisal and progress committee meetings ensuring that DCoG and relevant sector
departments are invited
o issue registration letters for projects approved by the district appraisal committees to municipalities,
copying DCoG
o monitor project implementation in collaboration with sectors and submit site visit reports to DCoG
o monitor compliance with provincial legislation and alignment to provincial growth and development
strategies through project registration
x For the MIG-2 funding stream:
o participate in processes to approve the 10-year Capital Expenditure Framework
o verify outputs and outcomes reported by municipalities on a sample of projects annually
Responsibilities of provincial sector departments
x Each provincial sector department must fulfil a sectoral monitoring and guidance role on relevant sectoral
outputs
x Provide technical advice as required by a municipality through the feasibility, planning, design, tender and
construction phases of a MIG project
x For the MIG funding stream:
o participate in district appraisal and progress committee meetings
o evaluate and provide recommendations on sector technical reports before projects are appraised
Responsibilities of municipalities
x Municipalities must ensure appropriate programme and project planning and implementation readiness
prior to the year of implementation and this must be informed by the IDP, three-year capital programme
and (for municipalities in the MIG-2 stream) the 10-year Capital Expenditure Framework
x Municipalities must monitor each project and ensure that MIG funds are spent for the intended purpose as
registered under the MIG-MIS
x The municipality must report monthly, quarterly and annually in the prescribed formats and timelines,
reports must be signed-off by the Municipal Manager or the delegated official and submitted to national
government via the provincial department responsible for local government
x Utilise the MIG-MIS to inform the content of the reports mentioned above
Process for approval of Under the MIG funding stream
2019/20 business plans x Municipalities must submit all technical reports to the sector departments responsible for water, sanitation,
solid waste, sport and recreation, roads and transport by 27 July 2018 for all projects to be implemented in
2019/20
x The responsible sector department must evaluate reports and provide final recommendations to the
municipality by 28 September 2018
x The municipality must submit all project registration forms by 1 October 2018, for the projects to be
implemented in 2019/20, to the provincial department responsible for local government
x The provincial departments must provide final recommendations to municipalities by 30 November 2018
x Projects not implemented within three-years of approval by the relevant appraisal committee will be
deregistered
x Municipalities must submit to DCoG by 31 January 2019, detailed project implementation plans for all the
projects to be implemented in the 2019/20 and 2020/21 financial years
x Such plans should include timelines regarding project designs, initiation of procurement, and
environmental impact assessment (EIA) and/or relevant permit/license approvals in the prescribed format
x Municipalities must submit updated implementation plans as mentioned above by 30 April 2019, justifying
any changes from the 31 January 2019 submission
Under the new Integrated Urban Development Grant (intermediate city municipalities)
x Eligibility for the Integrated Urban Development Grant and minimum conditions for qualification are
outlined in part 6 of Annexure W1 to the 2018 Division of Revenue Bill. Eligible municipalities who wish
to be considered for qualification must submit an application form indicating compliance with minimum
conditions by 27 July 2018
x Municipalities must submit a first draft of the three-year capital programme and 10-year Capital
Expenditure Framework to the transferring officer by 29 March 2019 and the final versions of the three-
year capital programme and 10-year Capital Expenditure Framework must be approved through processes
led by the Department of Cooperative Governance by 31 May 2019
 204

Municipal Systems Improvement Grant

Transferring department x Cooperative Governance and Traditional Affairs (Vote 4)
Grant schedule x Schedule 6, Part B
Strategic goal x An efficient and developmental sphere of government capable of delivering services to local communities
Grant purpose x To assist municipalities to perform their functions and stabilise institutional and governance systems as
required in the Municipal Systems Act and related local government legislation
Outcome statements x A responsive, accountable, effective and efficient local government
Outputs x Number of municipalities supported to develop organograms for their structures
x Number of municipalities benefitting through the integrated property and consumer database project
x Number of municipalities benefitting from the rollout and implementation of simplified revenue plans
x Number of municipalities supported through the implementation of the Integrated Urban Development
Framework (IUDF)
x Number of municipalities supported to implement the Municipal Property Rates Act
x Number of municipalities supported on gazetting of municipal by-laws
x Number of municipalities supported on municipal tariff data management and related matters
x Number of municipalities supported on transitional matters following boundary re-demarcations
x Number of municipalities supported to institutionalise the local government monitoring and evaluation
system
x Number of municipalities supported in the improvement of their records management and ICT
infrastructure
x Municipalities benefitting from the preparation of an institutional recovery plan and the implementation
thereof, where appropriate
Priority outcome(s) of x Outcome 9: Responsive, accountable, effective and efficient developmental local government
government that this
grant primarily
contributes to
Details contained in the x This grant uses the Back to Basics support plan which identifies governance and institutional weaknesses
business plan in municipalities which are planned to be addressed through the grant allocation
x This grant also uses a memorandum of understanding that includes:
o outcome indicators
o output indicators
o key activities
o inputs
o details of how the systems and practices developed will be sustained over the long-term
Conditions x The Department of Cooperative Governance and the benefitting municipality must sign a memorandum of
understanding that includes details of the activities and deliverables being funded, responsibilities of each
stakeholder, protocols for engagements and feedback, budget for each activity, and timeframes for
implementation
x Funds from this grant may be spent on building the capacity of municipalities with respect to the purpose
and outputs listed for this grant
x Technical support to municipalities must include transfer of skills to municipal officials
x The preparation of an institutional recovery plan and the implementation thereof by municipalities may
be supported, where appropriate
x Implementation of institutional reforms to address shortcomings identified in the Back to Basics
assessment report for that municipality may be supported
Allocation criteria x Priority given to municipalities classified as Back to Basics municipalities
x Priority is given to municipalities with challenges/shortcomings in processes, procedures and systems to
effectively implement the Municipal Systems Act and related local government legislation including
municipalities with a history of poor audit outcomes; municipalities with institutional challenges and
municipal tariff data management challenges; and non-metropolitan municipalities with large outstanding
debts owed to creditors
x Intermediate cities are targeted for programmes in support of the IUDF
x Municipalities affected by major boundary changes in 2016 are prioritised for transitional support
x Over the medium-term expenditure framework, funds will be allocated to some municipalities not reached
in 2018/19
x Funds may be reallocated if a memorandum of understanding is not signed
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Municipal Systems Improvement Grant

Reasons not incorporated x The grant is aimed at building the capacity of targeted municipalities to implement sound institutional and
in equitable share governance systems required in terms of the Municipal Systems Act and related local government
legislation
Past performance 2016/17 audited financial outcomes
x The grant had an allocation of R103 million of which R19 million (23 per cent) was spent
2016/17 service delivery performance
x 30 municipalities benefitted from the rollout and implementation of simplified revenue plans
x Finalised the procurement processes relating to the prototype staff establishment project
x Finalised the procurement processes relating to the integrated property and consumer database project
Projected life x The grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R115 million; 2019/20: R122 million and 2020/21: R128 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Management, monitoring and reporting of the programme
receiving officer x Agree and sign memorandum of understanding with participating municipalities
x Coordinate with the National Treasury to ensure that the capacity building activities of the two
departments are complimentary
Responsibilities of municipalities
x Agree and sign memorandum of understanding with transferring officer
x Identify municipal officials that will be recipients of skills transfer
x Ensure that municipal officials participate actively in all activities funded through this grant
x Ensure systems and practices developed through this grant are sustained as part of the operations of the
municipality
x Municipalities to submit a detailed report upon the completion of the project with a detailed expenditure
report
Process for approval of x Targeted municipalities must sign a memorandum of understanding in support of this Municipal Systems
2019/20 MTEF allocations Improvement Grant programme
 206

ENERGY GRANTS

Energy Efficiency and Demand Side Management Grant

Transferring department x Energy (Vote 26)
Grant schedule x Schedule 5, Part B
Strategic goal x To reduce electricity consumption by promoting energy efficient practices
Grant purpose x To provide subsidies to municipalities to implement energy efficiency and demand side management
(EEDSM) initiatives within municipal infrastructure in order to reduce electricity consumption and
improve energy efficiency
Outcome statements x Reduced demand for electricity
x Increased awareness of energy saving
x Skills development in energy efficiency
x Energy management capability enhanced
Outputs x Amount of electricity saved in kilowatt hours (KWh)
x Number of energy efficient street lights installed
x Number of energy efficient traffic lights installed
x Number of buildings retrofitted
x Number of units of water services infrastructure retrofitted
Priority outcome(s) of x Outcome 9: Responsive, accountable, effective and efficient developmental local government
government that this grant x Outcome 10: Protect and enhance our environmental assets and natural resources
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Projected energy savings
x Key activities
x Inputs
Conditions x Funds can only be used to implement electricity saving projects in municipal infrastructure
x The focus for implementation of energy efficiency interventions shall be limited to municipal buildings,
streetlights, traffic lights, waste water treatment works and pump stations
x Municipalities shall determine a detailed and extended electricity consumption baseline in line with
standards set by the South African Bureau of Standards (SABS)
x Municipalities must respond to the request for proposals issued by the Department of Energy (DoE) in
the format provided
x Municipalities must commit to energy savings (in KWh) to be achieved through the retrofits to the DoE
x A performance agreement with specific conditions shall be entered into between the municipality and
the DoE
x The municipality shall prepare a project work plan and business plan in the templates provided by the
DoE
Allocation criteria x The following criteria are used for selecting municipalities to receive allocations from the grant:
o municipalities that have responded to the request for proposals as issued by the DoE
o municipalities with higher electricity consumption and higher electricity saving potential
o municipalities with clearly defined objectives on energy efficiency improvements
o proposals that use proven energy efficient technologies with low pay-back periods
o municipalities that show readiness and capacity to implement EEDSM projects
o good past performance if a municipality has previously participated in the programme
o quality, viability and financial feasibility of proposed projects
Reasons not incorporated x This is a specific conditional transfer in support of the EEDSM programme
in equitable share
Past performance 2016/17 audited financial outcomes
x R186 million was allocated and transferred to participating municipalities
2016/17 service delivery performance
x An unverified total electricity saving of 12.1 GWh was reported by municipalities against the total
projected savings of 30.9 GWh. The process of verifying the savings is underway and will be concluded
in July 2018
Projected life x The grant will continue until 2020/21, subject to review
MTEF allocations x 2018/19: R215 million; 2019/20: R227 million and 2020/21: R240 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Monitoring and evaluation of the EEDSM programme including measurement and verification of
receiving officer energy savings
x Provide municipalities with guidance and support through capacity building workshops on best
practices and pricing for EEDSM projects
x Communicate to municipalities the process and requirements for obtaining EEDSM grant funds in
2019/20
x Develop a fair and open process to accredit and establish a panel of competent service providers with
technical expertise to support municipalities during the implementation of EEDSM projects
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Energy Efficiency and Demand Side Management Grant

Responsibilities of municipalities
x Submit proposals as per the request for proposals issued by DoE
x Ensure that proposals are in the format and template provided by DoE
x Implement the EEDSM programme as per the framework and contractual agreement
x In the implementation of EEDSM projects, use service providers accredited by DoE
x Submit to the DoE the monthly and quarterly reports approved by the municipal manager
x In a case where a municipality delegates the implementation of the programme to its entity (i.e.
Johannesburg City Power, Mangaung CENTLEC, etc.) such an entity shall enter into an implementation
contract with the municipality for the purposes of reporting and accountability. A copy of this
implementation contract must be shared with DoE
Process for approval of x Allocations for 2019/20 will be based on the proposals submitted in line with the request for proposal
2019/20 business plans issued by the DoE
x Proposals must be submitted by 28 September 2018 and shall be evaluated against the criteria set out in
this framework and the request for proposals issued by DoE
 208

Integrated National Electrification Programme (Municipal) Grant

Transferring department x Energy (Vote 26)
Grant schedule x Schedule 5, Part B
Strategic goal x To reduce electrification backlogs through funding of bulk infrastructure (substations and lines) to ensure
constant supply of electricity
Grant purpose x To implement the Integrated National Electrification Programme (INEP) by providing capital subsidies to
municipalities to address the electrification backlog of all existing and planned residential dwellings
(including upgrading informal settlements, new, and normalisation of existing dwellings) and the installation
of relevant bulk infrastructure
Outcome statements x A reduction in household electrification backlogs
x Universal access to electricity and improvement in distribution infrastructure reliability
Outputs x The number of connections to households per annum
x The number of bulk infrastructure installations
x Implementation of labour intensive methods on electrification projects and the number of jobs created
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this x Outcome 9: Responsive, accountable, effective and efficient developmental local government
grant primarily
contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Key activities
x Inputs
Conditions x Adhere to labour-intensive construction methods in terms of the Expanded Public Works Programme
(EPWP) guidelines for activities such as trenching, planting of poles, etc.
x Register electrification master plans for bulk infrastructure with INEP and abide by the advice or guidance of
the Department of Energy (DoE) regarding the central planning and co-ordination for such bulk
infrastructure
x Bulk infrastructure can only be funded for infrastructure serving poor households (where infrastructure
serves tariff-funded areas and poor households costs should be shared)
x Use INEP funds for the refurbishment of critical infrastructure, only upon submission of a project plan which
must be approved by the DoE
x Utilise own funding if the subsidy is insufficient (top±up funding must be available)
x Minimum size of supply of 1.2 kVA After Diversity Maximum Demand, standard installation of 20 Amp per
household connection, in line with the Suite of Supply Policy
x Municipalities may utilise up to R1.5 million of their total allocation for service fees (pre-engineering and
Eskom connection fee) if approved by the DoE in their business plans
Allocation criteria x Allocations are based on an assessment of applications from municipalities based on:
o high backlogs
o rural bias
o number of planned households for connection projects
o past performance
o integration with other programmes such as 27 priority district municipalities, the National Development
Plan, catalytic projects, and mining towns
o the financial, technical and staff capabilities to distribute electricity and expand and maintain networks
o unlicensed municipalities must appoint service providers with the required knowledge and expertise for
implementation
o consultation with communities in terms of the Integrated Development Plan process
o ensuring that universal access objectives are fast tracked
o infrastructure which is in a state of disrepair, unsafe and which prohibits further connections
o informal settlements where service delivery has been prioritised
o new and upgrading of bulk infrastructure projects that support future electrification needs, and, where
distribution network reliability (refurbishment) adversely impacts economic activity and cannot sustain
current electrification
Reasons not incorporated x This is a specific conditional capital transfer for electrification of households
in equitable share
Past performance 2016/17 audited financial outcome
x R1.9 billion was allocated and transferred to municipalities
2016/17 service delivery performance
x 94 540 households were connected including connections funded from roll-overs
Projected life x Grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R1.9 billion; 2019/20: R2.1 billion and 2020/21: R2.2 billion
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
 209

Integrated National Electrification Programme (Municipal) Grant

Responsibilities of the Responsibilities of the national department
transferring officer and x Agree with municipalities on outputs and targets
receiving officer x Continuously monitor implementation and provide support to municipalities
x Verify reports from municipalities
Responsibilities of municipalities
x Ensure that projects are implemented in line with what is reflected in the Integrated Development Plan of the
municipality
x Report accurately and timeously on the management of this grant and include invoices on their monthly
reports, when reporting to the DoE
x Municipalities need to appoint service providers to implement their projects by the end of July 2018
Process for approval of x Application forms are sent to municipalities and the evaluation of all applications and business plan
2019/20 business plans proposals received from municipalities is completed by 30 October 2018
 210

Integrated National Electrification Programme (Eskom) Grant

Transferring department x Energy (Vote 26)
Grant schedule x Schedule 6, Part B
Strategic goal x To reduce the backlogs of un-electrified households and fund bulk infrastructure to ensure constant
supply of electricity
Grant purpose x To implement the Integrated National Electrification Programme (INEP) by providing capital subsidies to
Eskom to address the electrification backlog of occupied residential dwellings, the installation of bulk
infrastructure and rehabilitation and refurbishment of electricity infrastructure in order to improve quality
of supply in Eskom licenced areas
Outcome statements x A reduction in household electrification backlogs
x Universal access to electricity and improvement in distribution infrastructure reliability
Outputs x The number of household connections per annum
x The number of bulk infrastructure installations
x Implementation of labour intensive methods on electrification projects and the number of jobs created
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this grant x Outcome 9: Responsive, accountable, effective and efficient developmental local government
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x Plans need to have undergone pre-engineering and project feasibility approval
x Projects must be prioritised by municipalities in their Integrated Development Plans (IDPs) and
supporting letters must be provided to demonstrate that municipalities are in agreement with projects to
be undertaken
x Eskom to comply with requirements to provide approved bulk projects in their business plans
Allocation criteria x Allocations to Eskom are made on behalf of municipalities based on applications from Eskom for non-
licensed municipalities according to the following criteria:
o high backlogs
o rural bias
o integration with other programmes such as 27 priority district municipalities, the National
Development Plan and other infrastructure programmes like catalytic projects and mining towns
o the cost of a project is within benchmarked norms
o the project is aligned with the IDP for a particular municipality
Reasons not incorporated x This is a specific conditional capital transfer for electrification of households and bulk infrastructure
in equitable share
Past performance 2016/17 audited financial outcomes
x The grant was allocated R3.5 billion and the entire amount was transferred to Eskom, of which
R3.3 billion (94 per cent) was spent by the end of the financial year
2016/17 service delivery performance
x 207 436 connections were completed at the end of the financial year (includes connections funded from
roll-overs)
Projected life x The grant will continue until 2020/21, subject to review
MTEF allocations x 2018/19: R3.3 billion; 2019/20: R3.4 billion and 2020/21: R3.6 billion
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Agree with Eskom on outputs and targets
receiving officer x Continuously monitor implementation
x Provide central coordination for bulk infrastructure
x Approve submissions for refurbishment of critical infrastructure
Responsibilities of Eskom
x Minimum size of supply of 1.2 KVA, after diversity maximum demand, 20 Amp per household
connection and applicable supply for clinic connections, in line with the Suite of Supply Policy
x Report to the Department of Energy and the National Treasury on monthly and quarterly expenditure for
the grant
Process for approval of x Eskom and the Department of Energy must ensure that all planned projects are in line with municipal
2019/20 business plans IDPs and priority lists
x Eskom and the Department of Energy must ensure that planned projects are feasible and have gone
through the pre-engineering process
 211

HUMAN SETTLEMENTS GRANTS

Municipal Emergency Housing Grant

Transferring department x Human Settlements (Vote 38)
Grant schedule x Schedule 7, Part B
Strategic goal x To ensure improved quality of household life following a disaster (as defined in the Disaster Management
Act, 2002)
Grant purpose x To provide funding to municipalities for provision of temporary shelter assistance to households affected
by disasters
Outcome statements x Households accommodated in adequate temporary shelter following a disaster
Outputs x Emergency and short term assistance to households affected and/or impacted by disasters, through:
o provision of temporary shelter
o temporary relocation of households to safer accommodation and/or shelter
Priority outcome(s) of x Outcome 8: Sustainable human settlements and improved quality of household life
government that this grant
primarily contributes to
Details contained in the x Applications for funding from this grant use the Municipal Emergency Housing Grant (MEHG) application
business plan form which includes the following:
o details of the disaster, the impact thereof and number of temporary shelters required and the number
of households affected
o total funds required for disaster response
o implementation plan
o summary of the projects
o consolidated project cash flow over a two-month period as an annexure to the implementation plan
o a copy of the mXQLFLSDOLW\¶V emergency procurement policy
Conditions x Municipalities must submit an application to the national Department of Human Settlements within 14
days of the agreement by the Mayor that a housing emergency exists in terms of section 2.3.1(a) and (b) of
the Emergency Housing Programme
x The relevant Provincial Disaster Management Centre must be informed of the application
x The Municipal Manager must sign-off and confirm the information captured in the application
x Shelter solutions funded from the grant must comply with the National Building Regulations and utilise
material that complies with standards set by the South African Bureau of Standards
x The transfer of the first tranche of funds is conditional on approval by the national Department of Human
Settlements of the submitted assessment/application by the municipality
x Funds may only be spent on items and activities included in the application approved by the Accounting
Officer of the national Department of Human Settlements
x Municipal officers must submit a report within 30 days after the end of the quarter in which the funds are
spent, outlining expenditure of the funds and documentary proof of services rendered. Thereafter monthly
reports shall be submitted to the national Department of Human Settlements until the funds are fully
utilised
x The emergency procurement system as guided by Public Finance Management Act, Municipal Finance
Management Act and Treasury Regulations should be invoked to ensure immediate assistance to the
affected communities
Allocation criteria x This grant funding is intended to address the housing needs of households who for reasons beyond their
control, find themselves in an emergency housing need such as:
o existing shelter destroyed or damaged by a disaster
o displaced following a disaster
o relocation due to prevailing material (i.e. physical) conditions posing an immediate threat to the
adequacy and safety of their existing housing as a result of a disaster
x The grant is allocated to municipalities on application and approval thereof by the Accounting Officer of
the national Department of Human Settlements
Reasons not incorporated in x This is a conditional grant with a specific purpose to provide for a rapid response to emergencies through
equitable share the provision of temporary housing
Past performance x This is a new grant
Projected life x This grant is expected to continue over the medium term and will be subject to review
MTEF allocations x 2018/19: R140 million; 2019/20: R149 million and 2020/21: R159 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the National Department
transferring officer and x Advise and guide municipalities about the existence of the MEHG and how it can be accessed
receiving officer x Develop and publish the MEHG application form template in consultation with National Treasury and the
National Disaster Management Centre
x Monitor programme implementation including establishing and maintaining a register or database of
human settlements disasters
 212

Municipal Emergency Housing Grant

x Support municipalities to plan for potential disasters. This includes identifying communities/households
that reside in unsafe conditions posing a threat to health and safety as well as households who live in areas
prone to flooding and/or other disasters
x Monitor the planning and priority development for communities/households residing in unhealthy and life
threatening circumstances and provide implementation assistance where required
x Facilitate a coordinated housing assistance intervention response in circumstances where disasters affect
more than one municipality
x Coordinate assistance with the National Disaster Management Centre to ensure there is no duplication of
funding with the provincial and municipal disaster relief grants and the Provincial Emergency Housing
Grant
x Seek approval from the National Treasury for the disbursement of funds to municipalities within 10 days
of receipt of an application for funding from this grant
x Notify the municipality and the relevant provincial treasury of a transfer at least two days before the
transfer of funds. Funds must be transferred no later than five days after the notification
x Transfer funds to the municipalities with a clear stipulation of the purpose of the funds
x Provide the National Treasury with written notification of the transfer within 10 days after a transfer of the
funds
x Submit financial and non-financial reports to the National Treasury within 20 days after the end of each
month
x Provide a performance report within 45 days after the end of the quarter in which the funds were spent, to
the National Treasury, using the disaster allocation monitoring template agreed to with the National
Treasury
x Together with the municipalities monitor the implementation of funded projects
x Support municipalities in accessing the MEHG
Responsibilities of municipalities
x Prepare and submit a complete application for the MEHG in the event of disaster incidents occurring
within their jurisdiction
x Upon approval of the application and receipt of funding, implement the intended relief measure
(emergency housing solutions)
x Submit required reports to the national Department of Human Settlements on the expenditure of funds
received
x Manage implementation of emergency interventions including establishing and maintaining a register or
database of human settlements disasters and emergencies in the municipality
x Plan disaster mitigation measures in collaboration with the relevant Local Disaster Management Centre;
these include:
o public awareness and community outreach initiatives in respect of disaster mitigation
o identifying communities/households that reside on inadequate land posing a threat to health and safety
o identifying households in areas prone to flooding and/or other disasters
x Facilitate the release of municipal owned land for emergency housing and resettlement purposes
x Facilitate that identified and prioritised communities and/or households are relocated and properly housed
in formalised townships that comply with human settlement development norms and standards
x Ensure that the shelter solutions comply with the municipal integrated development plan, the National
Building Regulations and utilise material that complies with the South African Bureau of Standards
x Monitor the planning and priority development for communities/households residing in unhealthy and life
threatening circumstances and provide implementation assistance where required
Process for approval of x Not applicable
2019/20 business plans
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Urban Settlements Development Grant

Transferring department x Human Settlements (Vote 38)
Grant schedule x Schedule 4, Part B
Strategic goal x To assist metropolitan municipalities to improve household access to basic services through the
provision of bulk, link and internal reticulation infrastructure, with a focus on the poor; and urban land
production to support broader urban development, spatial integration and inclusion by supplementing
the capital budgets of metropolitan municipalities
Grant purpose x Supplements the capital revenues of metropolitan municipalities in order to support the national human
settlements development programme, focusing on poor households
Outcome statements x The outcomes to be realised in order to promote integrated sustainable human settlements and improved
quality of household life are:
o increased individual household access to basic services and related infrastructure
o increased acquisition and availability of well-located land for human settlements development
o increased access of poor households to public and socio-economic amenities
o supporting densification and transit-oriented development projects connecting existing and new
housing developments
o ensure the provision of infrastructure for mixed income and mixed use developments to support the
leveraging of private and non-state sector grants and funding in support of approved human
settlements developments
o improving the sustainability of the livelihoods of poor households within each municipalLW\¶VDUHD
of jurisdiction
Outputs x The following outputs should be funded by the grant to support the improvement of the overall built
environment:
o increase in bulk infrastructure capacity
o increase in the provision of basic services to individual poor households, specifically in informal
settlements and back yards, including water, sanitation, solid waste, electricity, refuse removal,
roads and access to transport
o increase in land provision for informal settlement upgrading, subsised housing, or mixed use
developments in support of approved human settlements developments
o increase in access to public and socio-economic amenities
o improved dwelling unit densities within an improved human settlements spatial integration
framework
o increase in the number of serviced sites in informal settlements upgrading and/or on-site projects
and green-fields and/or infill developments
Priority outcome(s) of x Outcome 8: Sustainable human settlements and improved quality of household life
government that this x Outcome 9: Responsive, accountable, effective and efficient developmental local government
grant primarily
contributes to
Details contained in the x This grant uses the Urban Settlements Development Grant (USDG) performance matrix and Built
business plan Environment Performance Plans (BEPP) that are consistent with the Integrated Development Plan
(IDP), including the human settlements chapter of the IDP, and the Service Delivery and Budget
Implementation Plans (SDBIPs) of the receiving municipalities
Conditions x A minimum of 50 per cent of the USDG allocation must be spent on the provision of individual basic
services to households living in informal settlements either through on-site upgrades, relocation or
integrated development projects
x Municipalities must submit an annual BEPP, and the USDG performance matrix aligned to the SDBIP
and IDP, to the national Department of Human Settlements and National Treasury
x The flow of the first instalment is subject to:
o submission of the 2017/18 third quarter report, signed-off by the municipal accounting officer
including the performance matrix with non-financial information
o submission of the annual BEPP and USDG performance matrix for 2018/19 that is aligned to the
municipal IDP, SDBIP and national priorities by 31 May 2018
x The flow of the second instalment will be conditional upon the:
o submission of the 2017/18 fourth quarter report signed-off by the accounting officer of the
municipality including the performance matrix with non-financial information
o submission of the 2018/19 first quarter report signed-off by the accounting officer of the
municipality to the transferring officer and the National Treasury
x The flow of the third instalment will be conditional upon submission and approval of the signed-off
second quarter report by the accounting officer to the transferring officer and the National Treasury,
including the performance matrix with non-financial information
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Urban Settlements Development Grant

x Municipalities must submit an annual USDG performance matrix containing a project list with project
names, project descriptions, classification of infrastructure, Geographic Information System (GIS)
coordinates and wards in which projects are being developed. The submission should include
motivations of how the projects will benefit poor households and information on spatial targeting, co-
funding and other associated investments
x A maximum of 3 per cent of the USDG may be used to procure capacity to support the implementation
of USDG human settlements programme outputs as contained in the Medium Term Strategic
Framework (MTSF) and in line with the capacity building guideline published by the national
Department of Human Settlements
x Municipalities must indicate the amounts of their annual allocations for spending on the identified
catalytic projects in their BEPPs as approved by municipal council
x A minimum of 30 per cent of USDG allocations should be allocated to contracts awarded to targeted
groups as per the amended Preferential Procurement Regulations 2017, issued by National Treasury
Allocation criteria x The grant is allocated to all metropolitan municipalities
x The base allocation is derived from the Municipal Infrastructure Grant formula explained in part 5 of
annexure W1 of the 2018 Division of Revenue Bill
x The formula incorporates household backlogs in basic services and access to socio-economic services
and poverty-weighted data
Reasons not x This is a supplementary capital infrastructure grant with conditions, objectives and distribution criteria
incorporated in equitable (including infrastructure backlogs) aimed at improving outcomes of the application of the equitable
share share
Past performance 2016/17 audited financial outcomes
x The grant was allocated R10.8 billion, and R10.8 billion (100 per cent) was transferred to municipalities
2016/17 service delivery performance
x Delivery performance is indicated in the performance evaluation reports for 2016/17
Projected life x The programme will continue until 2020/21, subject to review
MTEF allocations x 2018/19: R11.3 billion; 2019/20: R11.9 billion and 2020/21: R12.5 billion
Payment schedule x Transfers will be made in accordance with a payment schedule approved by National Treasury
Responsibilities of Responsibilities of the national department
transferring officer x Develop indicators for the outcomes and outputs
and receiving officer x Convene a structured forum to meet with municipalities on a quarterly basis
x Monitor and evaluate the municipal financial and non-financial performance of the grant, including
quarterly summary reports on performance across municipalities
x Provide support to municipalities with regards to human settlement programmes
x Publish a guideline by 30 May 2018 on how capacity funds from this grant should be used by cities
x Ensure collaboration between provinces and municipalities to promote area-based planning, budgeting
and funding alignment as well as implementation support, where applicable
x Undertake oversight visits to municipalities as may be necessary
x Facilitate strategic and spatial planning support related to human settlements development
x Provide systems, including the Housing Subsidy System that support the administration of the human
settlements delivery process
x Coordinate and facilitate interaction between national departments, state-owned enterprises, other
relevant entities of the state, provincial departments of human settlements and participating
municipalities
x When under expenditure and under performance is identified, the department may shift funds between
municipalities in line with the 2018 Division of Revenue Act (DoRA) processes and requirements and
with the concurrence of donor and receiving municipalities
x Participate in the municipal budget benchmarking process as and when indicated by the National
Treasury
x Review and approve the USDG performance matrix
x Review BEPP guidelines
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Urban Settlements Development Grant

Responsibilities of municipalities
x Submit 2017/18 evaluation reports in terms of the USDG performance matrix, as contained in the
SDBIP, to the transferring officer on or before 24 August 2018
x Metropolitan municipalities may replace non-performing projects with performing projects providing a
similar infrastructure that fulfils the same policy objectives. This replacement should not jeopardise the
achievement of the overall MTSF targets committed to by the municipality
x Changes to the approved project list may only be made once a quarter and the metro must notify the
national Department of Human Settlement in writing and provide all the relevant details of the new
project within 30 days after the end of the quarter
x Submit monthly financial reports, as contemplated in section 71(5) of the Municipal Finance
Management Act (MFMA), within 10 working days after the end of each month indicating reasons for
deviations and remedial actions. Such reports must be submitted to the national department, provincial
departments and National Treasury
x Municipalities must report on a quarterly basis, the minimum of 30 per cent of the grant awarded to the
targeted groups as the amended Preferential Procurement Regulations of 2017, issued by National
Treasury
x Ensure that the USDG performance matrix is consistent and aligned with national priorities and
provincial human settlements plans
x Comply with the terms and conditions of the receiving officer outlined in the DoRA
x Municipalities should request the roll-over of unspent funds through National Treasury and inform the
transferring officer of all processes regarding the request
x Ensure effective and efficient utilisation of the grant and alignment to the purpose and outputs of the
grant
x Ensure compliance with required intergovernmental forums, reporting, and accountability frameworks
for human settlements
x Ensure that the USDG is used to meet municipality MTSF targets as contained in Outcome 8
Process for approval of x Municipalities must submit a comprehensive USDG performance matrix as included in the BEPP
2019/20 business plans targets aligned to the MTSF, IDP and SDBIP and a draft and/or approved municipal budget
x Municipalities must submit their first draft of the USDG performance matrix to the transferring officer
by 29 March 2019 and the final USDG performance matrix should be submitted by 31 May 2019
 216

NATIONAL TREASURY GRANTS

Local Government Financial Management Grant

Transferring department x National Treasury (Vote 7)
Grant schedule x Schedule 5, Part B
Strategic goal x To secure sound and sustainable management of the fiscal and financial affairs of municipalities
Grant purpose x To promote and support reforms in financial management by building capacity in municipalities to
implement the Municipal Finance Management Act (MFMA)
Outcome statements x Strengthen capacity in the financial management of municipalities
x Improved and sustained skills development, including the appointment of interns supporting the
implementation of financial management reforms focusing on the gaps identified in the Financial
Management Grant (FMG) support plans
x Appropriately skilled financial officers, appointed in municipalities consistent with the minimum
competency regulations
x Improved financial management maturity and capabilities
x Timely submission of financial statements and improved audit outcomes
x Improvement in municipal financial governance and oversight
Outputs x Number of municipal officials registered for financial management training
x Number of interns serving on the internship program, and permanently appointed in municipalities
x Number of municipalities that have reassessed priority modules in the Financial Management Capability
Maturity Model (FMCMM)
x Number of municipalities with established internal audit units and audit committees
x Number of municipalities that submitted their annual financial statements timeously
x Number of municipalities with disclaimers and adverse opinions that developed audit action plans
x Number of municipalities that prepared and implemented financial recovery plans, where appropriate
x Submission of FMG support plans
Priority outcome(s) of x Outcome 9: Responsive, accountable, effective and efficient developmental local government
government that this grant x Outcome 12: An efficient, effective and development oriented public service
primarily contributes to
Details contained in the x This grant uses an FMG support plan which identifies weaknesses in financial management, which are
business plan planned to be addressed through the grant allocation
Conditions x FMG funds can be used towards the following:
o strengthen capacity and up-skilling officials in the Budget and Treasury Office, internal audit and
audit committees
o at least five interns in local municipalities and three interns in metropolitan and district municipalities
must be appointed over a multi-year period. Municipalities must submit a plan for the retention of
skills developed through the internship programme
o on-going review, revision and submission of FMG support plans to the National Treasury that
address weaknesses in financial management
o acquisition, upgrade and maintenance of financial management systems to produce multi-year
budgets, in-year reports, service delivery and budget implementation plans, annual financial
statements, annual reports and automated financial management practices including the municipal
Standard Chart of Accounts (mSCOA)
o support the training of municipal financial management officials working towards attaining the
minimum competencies, as regulated in the Government Gazette 29967 of June 2007
o support the preparation and timely submission of annual financial statements for audits. Technical
support to municipalities must include the transfer of skills to municipal officials
o support the implementation of corrective actions to address the root causes of audit findings in
municipalities that received adverse and disclaimer opinions
o the preparation of a financial recovery plan and the implementation thereof, where appropriate
o implementation of financial management reforms to address shortcomings identified in the FMCMM
assessment report for that municipality
x FMG support plan must be consistent with the conditions of the grant and must be submitted timeously
x Timely submission of reports with complete information as prescribed in the Division of Revenue Act
x Expenditure must be maintained at appropriate levels
Allocation criteria x All municipalities benefit from allocations to augment their own resources in support of implementation
of the financial management reforms
x Priority is given to municipalities:
o with challenges/shortcomings in processes, procedures and systems to effectively implement the
MFMA, as identified in the FMCMM assessment
o with adverse and disclaimer audit opinions
Reasons not incorporated in x Grant provides direct support to municipalities to develop financial management and technical capacity
equitable share for the implementation of the MFMA and its regulations
Past performance 2016/17 audited financial outcomes
x R465 million was allocated and R465 million was transferred to municipalities
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Local Government Financial Management Grant

2016/17 service delivery performance
x All municipalities submitted FMG support plans
x As at 30 June 2017, 1 230 graduate finance interns were serving on the internship program in
municipalities
x Internship workshops to improve the programme and sustain reforms were concluded in seven provinces
(Free State, Gauteng, KwaZulu-Natal, Mpumalanga, Northern Cape, North West and Western Cape)
x The grant supported the following outputs:
o a total of 1252 officials received a statement of results for attaining minimum competencies
o of the 126 municipalities that utilised the FMG to prepare their 2016/17 annual financial statements,
117 (93 per cent) submitted their annual financial statements to the Auditor-General for auditing by
31 August 2017
o 50 municipalities utilised the FMG to develop audit action plans and implement corrective actions to
address 2015/16 audit findings
o 215 municipalities utilised the FMG to acquire/upgrade and maintain their financial management
systems
o 69 municipalities utilised the FMG to establish internal audit units and audit committees
Projected life x Ongoing with periodic reviews as the financial reforms are still in progress
MTEF allocations x 2018/19: R505 million; 2019/20: R533 million and 2020/21: R562 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Management, monitoring and reporting of the programme
receiving officer x Transfer funds to municipalities in terms of the 2018 Division of Revenue Act
x Undertake on-going monitoring of the municipalities
Responsibilities of the municipalities
x Submit support plans which are consistent with the conditions of the grant
x Submit reports consistent with the reporting requirements in the 2018 Division of Revenue Act
Process for approval of x On-going review, revision and submission of the FMG support plans to address weaknesses in financial
2019/20 MTEF allocations management
x The programme is based on the FMG support plans which municipalities must submit to the National
Treasury by 29 March 2018
 218

Integrated City Development Grant

Transferring department x National Treasury (Vote 7)
Grant schedule x Schedule 4, Part B
Strategic goal x The development of more inclusive, liveable, productive and sustainable urban built environments in
metropolitan municipalities
Grant purpose x To provide a financial incentive for metropolitan municipalities to achieve a more compact urban spatial
form through integrating and focussing their use of available infrastructure investment and regulatory
instruments
Outcome statements x Improved spatial targeting and sequencing of public investments in the urban built environment to achieve
a more compact, inclusive, productive and sustainable urban spatial form
Outputs x Number of infrastructure projects including public transport, roads, water, energy, housing, land
acquisition and development in implementation within identified integration zones
x Number of integrated strategic/catalytic projects planned within identified integration zones
x Number of authorised studies/strategies completed
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this grant x Outcome 8: Sustainable human settlements and improved quality of household life
primarily contributes to x Outcome 9: Responsive, accountable, effective and efficient developmental local government
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x Eligibility is restricted to metropolitan municipalities which must have:
o obtained a financially unqualified audit opinion from the Auditor-General (AG) for the 2016/17
financial year or finalised an audit action plan by 23 February 2018
o achieved acceptable levels of capital expenditure performance (reported a variance between adjusted
budgeted and actual expenditure of 35 per cent or lower to the National Treasury for the 2016/17
financial year)
x Municipalities have the authority to select preferred investments within their functional mandates and
within identified integration zones. Eligible expenditures include:
o any capital expenditure within the functional mandate of the municipality within identified integration
zones
o authorised direct operating expenditure to produce analytical or diagnostic studies, strategy
development or transaction advisory assistance related to the development or implementation of
strategies for identified integration zones
x A municipality may apply to the transferring officer, by no later than 31 August 2018 to utilise a maximum
of 15 per cent of the total annual allocation to undertake specified planning activities within integration
zones, provided that these conform to the list of eligible activities identified by the transferring officer,
including:
o property market empirical and diagnostic studies
o integrated infrastructure and spatial planning for identified integration zones
o investment pipeline development (excluding direct project preparation)
o development of infrastructure financing strategies and instruments
o development of policies, by-laws and systems for the administration of development charges
o enhanced policies and procedures for environmental and social management in infrastructure delivery
o the municipality can demonstrate the ability to implement these activities within the financial year
x The first transfer of the grant will only be released to a municipality that has submitted a council approved
Built Environment Performance Plan (BEPP) in the prescribed format by 31 May 2018 that includes:
o a pipeline of catalytic programmes that has been compiled according to a prescribed format
o built environment outcome indicators and targets for 2018/19 that have been compiled according to a
prescribed format
x The second transfer will only be released to a municipality that has submitted detailed information on the
catalytic projects, emanating from the programme and that are in the pipeline in accordance with the
standard format provided
Allocation criteria x Allocations will be made to eligible metropolitan municipalities on a population-weighted basis in order to
account for the relatively greater planning complexity and investment needs in larger metropolitan
municipalities. Final allocations are adjusted by performance against the following weighted indicators:
o BEPP evaluation score for 2017/18 (30 per cent)
o no decrease in total debt to revenue ratio in 2016/17 (15 per cent)
o no Section 57 vacancies for longer than six months in 2017 (10 per cent)
o unqualified audit opinion by AG (with or without findings) for the last financial year (25 per cent)
 219

Integrated City Development Grant

o decrease in total value of irregular, fruitless and wasteful expenditure identified by AG (20 per cent)
x For the outer years of the MTEF, allocations per metropolitan municipality have been provided without
taking into account any performance adjustments. The allocation figures for the 2019 MTEF will be
adjusted based on actual performance against the weighted indicators listed above as well as any new built
environment indicators agreed with the metros
Reasons not incorporated in x The grant provides a specific financial incentive for metropolitan municipalities to enhance the
equitable share performance of their urban built environment programmes. It reflects commitments contained in the
National Development Plan to streamline funding for urban public investments to support the restructuring
of the urban built environment
Past performance 2016/17 audited financial outcomes
x R266 million was allocated and transferred to municipalities
2016/17 service delivery performance
x All eight metropolitan municipalities submitted BEPPs timeously and identified a total of 14 integration
zones
x Municipalities also indicated 12 catalytic projects being planned and 10 projects under implementation in
these integration zones
Projected life x The grant will continue over the 2018 MTEF, subject to review
MTEF allocations x 2018/19: R294 million; 2019/20: R310 million and 2020/21: R327 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x National Treasury will review eligibility criteria and assess compliance with grant conditions prior to the
receiving officer transfer of each grant instalment
x National Treasury in consultation with the national departments of Cooperative Governance and Rural
Development and Land Reform, will facilitate engagements on the BEPPs with metropolitan municipalities
and other sector departments
x National Treasury will provide operational guidelines, facilitate peer learning and provide capacity support
through the Cities Support Programme
x National Treasury will authorise applications for the utilisation of grant funds for specified operating
purposes
x National Treasury will review the credibility and measurability of audit plans
Responsibilities of municipalities
x Submit BEPPs and in-year reports
x Ensure consistent planning in integration zones, including alignment of integrated development plans,
social housing restructuring zones, priority housing development areas and urban development zones
x Strengthen and align their own capacity to support BEPP implementation
Process for approval of x Eligible municipalities must submit their draft BEPP by 29 March 2019 in accordance with requirements
2019/20 business plans outlined in the BEPP guidelines
 220

Infrastructure Skills Development Grant

Transferring department x National Treasury (Vote 7)
Grant schedule x Schedule 5, Part B
Strategic goal x To improve infrastructure delivery management capacity within municipalities by developing a long-term
and sustainable pool of registered professionals with built environment and related technical skills in
engineering, town planning, architecture, quantity surveying, geographic information systems and project
management
Grant purpose x To recruit unemployed graduates into municipalities to be trained and professionally developed, as per the
requirements of the relevant statutory councils within the built environment
Outcome statements x Developed technical capacity within local government to enhance infrastructure provision, and service
delivery, through improved infrastructure planning, implementation, operations and maintenance
x Registered professionals with built environment qualifications (national diplomas and degrees) as per the
statutory councilV¶ requirements
x Increased number of qualified and registered professionals employed within local government
Outputs x Number of built environment graduates registered as candidates for training and professional development
as per requirements of the relevant statutory councils
x Number of graduates recognised as registered professionals by the relevant statutory councils
x Number of graduates employed as registered professionals within the built environment in local
government
Priority outcome(s) of x Outcome 5: A skilled and capable workforce to support an inclusive growth path
government that this grant x Outcome 9: Responsive, accountable, effective and efficient developmental local government
primarily contributes to
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x The business plan must demonstrate that the municipality has projects in which the graduates can be
trained, and provide the relevant complexity of work and responsibility that can support graduates to meet
the registration requirements of the relevant statutory councils
x Graduates must be seconded to an entity (public or private) if no relevant training is available to develop
the necessary competence of the graduates
x Where graduates are placed in another entity (public or private) a memorandum of agreement must be
developed and signed between the municipality and the entity, according to Infrastructure Skills
Development Grant (ISDG) guidelines. The memorandum of agreement must clearly demonstrate the
supervision requirements and the roles and responsibilities of all parties associated with the training of
graduates
x Graduates must have a national diploma or degree in the built environment from higher education
institutions i.e. Universities or Universities of Technology recognised by the statutory council
x Municipalities must provide training as per the road-to-registration requirements of the relevant statutory
council
x Mentoring must be provided by registered professionals in the same field as the graduates in training. The
full names and proof of registration of the mentor must be submitted to the National Treasury, and a
contract must be entered into with each mentor, in accordance with the ISDG guidelines
x The ISDG funding is to be utilised exclusively for costs associated with the training and professional
development process of graduates (refer to ISDG guidelines)
x The business plan of a municipality must include an absorption strategy for the graduates within the
municipality or any other municipality
x A project administrator may be appointed per municipality for the purpose of the ISDG administration if
approved by National Treasury (refer to ISDG guidelines)
x Graduates are to be placed in units to support the management, maintenance and/or implementation of
infrastructure, infrastructure related projects and accelerated service/infrastructure delivery
x Graduates must be assigned to a supervisor with experience in the same field as the graduates-in-training
x Graduates¶ training progress is to be evaluated by professionally registered mentors on a quarterly basis
and development of the required competencies of graduates is to be evaluated bi-annually
x Municipalities must submit monthly and quarterly reports timeously
x Graduate reports and/or log books must be completed in the format of the statutory council and must be
signed by the registered mentor/supervisor as required by statutory councils
x Municipalities must sign a service level agreement (SLA) with the National Treasury and such an
agreement must be adhered to
x Non-compliance with the above conditions can result in the funds being withheld, stopped or re-allocated
Allocation criteria x Allocations are based on business plans submitted and ability of municipalities to provide training and
professional development of graduates for the duration of the candidate phase as stipulated by statutory
councils
 221

Infrastructure Skills Development Grant

Reasons not incorporated in x This conditional grant is meant to develop technical skills within identified municipalities
equitable share
Past performance 2016/17 audited financial outcomes
x R130 million was allocated and transferred to 16 municipalities
2016/17 service delivery performance
x The grant has created employment and training opportunities for 502 graduates
x The following municipalities hosted graduates through the grant:
o Buffalo City (26 graduates)
o Nelson Mandela Bay (43 graduates)
o eThekwini (72 graduates)
o City of Johannesburg (28 graduates)
o Westonaria (9 graduates)
o Polokwane (27 graduates)
o Govan Mbeki (170 graduates)
o Gert Sibande (11 graduates)
o Lukhanji (8 graduates)
o Alfred Nzo (15 graduates)
o Umhlathuze (12 graduates)
o Sol Plaatjie (14 graduates)
o John Taolo Gaetsewe (7 graduates)
o King Sabata Dalindyebo (11 graduates)
o City of Cape Town (36 graduates)
o George (13 graduates)
Projected life x The grant is expected to continue over the 2018 Medium Term Expenditure Framework (MTEF), subject
to review
MTEF allocations x 2018/19: R141 million; 2019/20: R149 million and 2020/21: R158 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the National Treasury
transferring officer and x Issue guidelines and supporting documentation for the implementation of the ISDG
receiving officer x Rollout the ISDG in municipalities in compliance with the ISDG framework, guidelines and relevant
prescripts
x Manage, monitor and report on the programme
x Ensure professional development is aligned to statutory council requirements
x Monitor the registration progress of graduates with the relevant statutory councils by municipalities
x Monitor financial and non-financial performance of the ISDG
x Maintain graduates database for the ISDG
x Work with the Municipal Infrastructure Support Agent, and other stakeholders on policies, strategies and
guidelines to recruit graduates into permanent positions in local government after they have registered as
professionals
Responsibilities of municipalities
x Comply with the requirements of the Division of Revenue Act, ISDG guidelines, the service level
agreement and the requirements of the relevant statutory councils
x Municipalities must prepare a structured training plan, indicating how graduates will be exposed to
suitable projects, to ensure that graduates achieve competencies in relevant activities and are developed
professionally to meet the outcome(s) requirements for professional registration
x Seek and provide secondment opportunities/agreements with professional service providers, appointed by
the municipality, when there is no more relevant work with adequate responsibility for the candidate to
progress
x Provide the candidate with the requisite workspace, supervisor, tools of profession/trade, and logistics to
perform the recommended activities within their training plans
x Continuously review and assess the candidates¶ work and progress on the road-to-registration and make
recommendations for corrective action
x Ensure that candidates attend professional development activities in accordance with their training plans,
progress and the requirements of their respective statutory councils
x Attend all meetings and workshops convened by the National Treasury relating to this grant
x Support and supervise graduates on the road-to-registration training
x Recruit professionally registered mentors who are able to provide the skills training required and ensure
that they are adequately orientated on the registration process and its requirements
x Manage the programme and provide progress reports on a monthly and quarterly basis in the standard
reporting templates provided by the National Treasury
x Manage the utilisation of ISDG funds and report to the National Treasury
 222

Infrastructure Skills Development Grant

x The municipality must provide, and update, the list of business tools procured with ISDG funds. The
business tools must be procured in accordance with ISDG guidelines
x Municipalities must submit applications for graduates to register as candidates with the relevant statutory
councils within six months, and where not initially eligible, must complete the additional requirements for
acceptance as a candidate within 12 months of intake
x Municipalities must submit evidence of the graduateV¶ registration to National Treasury when graduates
have registered as professionals
Process for approval of x Interested municipalities must submit a three-year business plan by 31 August 2018 for assessment by the
2019/20 business plans National Treasury
x Participating municipalities must submit revised business plans to the National Treasury by 31 August
2018
 223

Neighbourhood Development Partnership Grant

Transferring department x National Treasury (Vote 7)
Grant schedule x Schedule 5, Part B and Schedule 6, Part B
Strategic goal x Eradicating spatial inequality towards the creation of liveable, sustainable, resilient, efficient, and
integrated towns and cities
Grant purpose x To plan, catalyse, and invest in targeted locations in order to attract and sustain third party capital
investments aimed at spatial transformation, that will improve the quality of life, and access to
opportunities IRUUHVLGHQWVLQ6RXWK$IULFD¶VXQGHU-served neighbourhoods, generally townships
Outcome statements x Spatially integrated cities and towns
x Diversity of public and private capital investments leveraged into targeted locations
x Improved ratio of Neighbourhood Development Partnership Grant (NDPG) to third-party capital
investment into strategic locations
x Improved municipal capacity to support infrastructure investment planning, prioritisation, and ability to
drive long-term spatial transformation
Outputs x Targeted locations with catalytic projects, defined as either:
o urban hub precincts with secondary linkages or;
o built environment upgrade projects in urban and rural townships
x Leveraged third-party capital investment into targeted locations
x The production and dissemination of toolkits, guidance and/or good practice notes and supporting
knowledge sharing events
x Enhanced municipal strategic competencies in investment targeting, implementation, and urban
management
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant x Outcome 8: Sustainable human settlements and improved quality of household life
primarily contributes to x Outcome 9: Responsive, accountable, effective and efficient developmental local government
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
Conditions x Compliance with the aims and objectives outlined in a signed memorandum of agreement or funding
agreement between the municipality and the transferring officer
x Submit cash flow schedules with budgets and timeframes for technical assistance and capital grant
(project) implementation as requested by the transferring officer
x Programme execution is dependent on a sequential and formal acceptance/approval by the transferring
officer of NDPG-related municipal plans or deliverables
x Municipalities must commit to forging partnerships with businesses, investors, communities, national and
provincial government and state-owned entities in order to leverage the third-party capital investment
required to ensure long-term and sustainable outcomes for each precinct
Allocation criteria x The grant funds the following activities in targeted locations that are defined as urban hubs:
o planning and the development of catalytic projects
o the development of built environment upgrade projects in rural townships
x Schedule 6, Part B: Technical assistance allocations support planning and professional programme
management costs for projects in targeted locations in order to attract and sustain third party capital
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x Schedule 5, Part B: Capital grant allocations are determined via a pipeline of prioritised projects that have
been identified through the planning process, in targeted locations
x $OORFDWLRQV DUH IRFXVHG RQ PXQLFLSDOLWLHV ZKRVH FLUFXPVWDQFHV DOLJQ ZLWK WKH 1'3*¶V criteria, these
include: higher population densities, diverse nature of economic activity, concentrations of poverty,
inefficient spatial-historical development, improved connectivity and mobility (in particular through
improved public transport networks)
Reasons not incorporated x This grant has a strong focus on catalytic nodal and linkage investment in targeted township locations that
in equitable share is not the focus of the equitable share
Past performance 2016/17 audited financial outcomes
x R624 million allocated in Schedule 5, Part B direct transfers to municipalities and R592 million of this
was transferred to municipalities
x R22 million allocated in Schedule 6, Part B indirect transfers to municipalities and R14 million of this
was spent by the end of the national financial year
2016/17 service delivery performance
x 61 NDPG projects under construction in 2016/17
x R5 billion in estimated third party investment leveraged (cumulative since 2007/08)
x 459 catalytic projects approved (cumulative since 2007/08)
x 18 long-term urban regeneration programmes registered (cumulative since 2013/14)
Projected life x This grant is expected to continue over the medium term, subject to review
 224

Neighbourhood Development Partnership Grant

MTEF allocations Direct transfers (Schedule 5, Part B)
x 2018/19: R602 million; 2019/20: R621 million and 2020/21: R655 million
Allocation-in-kind (Schedule 6, Part B)
x 2018/19: R29 million; 2019/20: R31 million and 2020/21: R33 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x The National Treasury funds plans and catalytic projects in targeted locations that are defined either as
receiving officer urban hubs or as built environment upgrade projects in urban and rural townships, including:
o notifying all municipalities of their allocation status, both directly and via the Neighbourhood
Development Partnerships (NDP) page on the National Treasury website
o reporting in terms of the 2018 Division of Revenue Act (DoRA)
o determining grant allocations for the Medium Term Expenditure Framework (MTEF) period
o performing the obligations as set out in the memorandum of agreement/funding agreements signed
between the municipality and the national department
o governing the acceptance or approval milestones of NDPG-related municipal plans or deliverables
o monitoring, managing and evaluating financial and non-financial performance
o overseeing and enforcing the conditions of this grant
o producing and disseminating toolkits, guidance and good practice notes that strengthen competencies
in investment targeting, implementation and urban management
x The Department of Rural Development and Land Reform is to drive rural development by supporting the
planning and infrastructure delivery of identified and agreed NDPG projects, including:
o acting as the agent of the National Treasury on identified and agreed NDPG projects
o appointing a dedicated project manager to ensure the continuity of NDPG activities
o reporting monthly to the National Treasury on the progress of NDPG projects
o providing programme and project management support to municipalities until the NDPG projects are
completed and closed
o motivating to the National Treasury for the reallocation of funding for specific municipal projects
o integrating existing project and information systems to ensure efficient and effective management of
existing NDP projects
o participating in a joint advisory committee with National Treasury to govern the direction and
coordination of the agency function
o exploring the feasibility of developing grant management capacity
Responsibilities of municipalities
x Compile and submit monthly and quarterly expenditure and progress reports in line with NDPG
requirements and as stipulated in the DoRA
x Submit a cash flow schedule with budgets and timeframes for technical assistance and/or capital grant
implementation as requested by the transferring officer
x Provide adequate human resources capacity for the successful coordination and implementation of NDPG
projects
x Coordinate the development of NDPG related municipal plans or deliverables and ensure that they are
aligned with the grant objectives against which performance will be assessed
x Manage and monitor technical assistance and/or capital grant implementation ensuring sound financial
management and value for money
x Maintain accurate and up to date grant and performance information as specified in NDPG management
information formats and systems
x Engage stakeholders so as to develop partnerships that leverage funding into the targeted locations
x Collect and provide evidence of funding leveraged into each precinct
x Mainstream and reflect the NDPG development strategies and plans across the municipality, i.e. through
the municipal:
o Spatial Development Frameworks (SDFs) and Capital Investment frameworks (as a chapter in the
municipal SDF)
o Integrated Development Plans (IDPs)
o Built Environment Performance Plans (BEPPs) - only applicable to metropolitan municipalities
Process for approval of x Submission of NDPG related municipal plans and/or deliverables within the timeframes defined in each
2019/20 business plans PXQLFLSDOLW\¶VRZQZRUNSODQV
x Plans and/or deliverables must include an indication of:
o the ability to attract and report on third-party funding leveraged
o the quality of performance and progress reporting
o the level of NDPG alignment across all municipal development strategies and plans including
coordination, targeting, and prioritisation with other related capital projects as reflected through
municipal SDFs and capital investment frameworks
 225

PUBLIC WORKS GRANT

Expanded Public Works Programme Integrated Grant for Municipalities

Transferring department x Public Works (Vote 11)
Grant schedule x Schedule 5, Part B
Strategic goal x To provide Expanded Public Works Programme (EPWP) incentive funding to expand job creation
efforts in specific focus areas, where labour intensive delivery methods can be maximised
Grant purpose x To incentivise municipalities to expand work creation efforts through the use of labour intensive
delivery methods in the following identified focus areas, in compliance with the EPWP guidelines:
o road maintenance and the maintenance of buildings
o low traffic volume roads and rural roads
o basic services infrastructure, including water and sanitation reticulation (excluding bulk
infrastructure)
o other economic and social infrastructure
o tourism and cultural industries
o waste management
o parks and beautification
o sustainable land-based livelihoods
o social services programmes
o community safety programmes
Outcome statements x Contribute towards increased levels of employment
x Improved opportunities for sustainable work through experience and learning gained
Outputs x 119 765 Full-Time Equivalents (FTEs) to be created through the grant
x Number of people employed and receiving income through the EPWP
x Increased average duration of the work opportunities created
Priority outcome(s) of x Outcome 4: Decent employment through inclusive growth
government that this grant x Outcome 9: Responsive, accountable, effective and efficient developmental local government
primarily contributes to
Details contained in the x The programme is implemented through municipalities using EPWP integrated agreements and project
business plan lists that specify the number of FTEs and work opportunities to be created
Conditions x EPWP projects must comply with the project selection criteria determined in the EPWP grant manual,
the EPWP guidelines set by the Department of Public Works (DPW) and the Ministerial Determination
updated annually on 01 November each year
x Eligible municipalities must sign a funding agreement with the DPW before the first grant
disbursement, with their final EPWP project list attached
x 0XQLFLSDOLWLHVPXVWUHSRUWTXDUWHUO\RQDOO(3:3SURMHFWVYLD'3:¶V(3:3UHSRUWLQJV\VWHP
x Reports must be loaded on the EPWP reporting system within 15 days after the end of every quarter in
order for progress to be assessed
x Municipalities must maintain beneficiary and payroll records as specified in the audit requirements in
the EPWP grant manual
x The EPWP grant cannot be used to fund the costs of permanent municipal personnel; however, a
maximum of 5 per cent of the grant can be used to fund contract based capacity required to manage
data capturing and on-site management costs related to the use of labour intensive methods
x The EPWP grant can only be utilised for EPWP purposes, for the projects approved in each
municipality's EPWP project list
x To receive the first planned grant disbursement, eligible municipalities must submit a signed integrated
agreement with a project list by 08 June 2018
x Subsequent grant disbursements are conditional upon:
o eligible municipalities reporting quarterly on EPWP performance within the required timeframes
o reporting on all EPWP Integrated Grant funded projects
o submitting on a quarterly basis non-financial reports including for the last quarter of the previous
financial year
o reporting on EPWP Integrated Grant expenditure monthly within the required time frames
o municipalities must implement their approved EPWP project list and meet agreed job creation
targets
x EPWP branding must be incorporated on any existing signage as per corporate identity manual
Allocation criteria x To be eligible for EPWP grant allocation in 2018/19, a municipality must have reported FTEs that
meet the minimum threshold in either the infrastructure or social sector or environment and culture
sector in 2016/17 financial year
x Newly reporting municipalities must have reported 2017/18 EPWP performance (in either the
infrastructure, social, or environment and culture sector) by 30 October 2017
x The EPWP grant allocations are based on:
o past EPWP performance
o the number of FTE jobs created in the prior 18 months
o past performance with regard to labour intensity in the creation of EPWP work opportunities
o service delivery information from 2016 Community Survey was used as an adjustment factor
x Allocation criteria include a rural bias
 226

Expanded Public Works Programme Integrated Grant for Municipalities

x Rural municipalities will also be prioritised in terms of technical support for implementation provided
by DPW
Reasons not incorporated in x This grant is intended to fund the expansion of labour intensity in specific focus areas as well as
equitable share incentivise increased EPWP performance. The grant is based on performance, the potential to expand
and the need for EPWP work in key geographic regions
Past performance 2016/17 audited financial outcomes
x The grant had an allocation of R664 million, 255 municipalities were eligible for the grant and 100 per
cent of the allocation was transferred to these municipalities
2016/17 service delivery performance
x 174 404 work opportunities were reported by 255 municipalities and validated on the EPWP system
x 57 786 FTE jobs were reported by 255 municipalities and validated on the EPWP system
Projected life x Grant continues until 2020/21, subject to review
MTEF allocations x 2018/19: R693 million; 2019/20: R742 million and 2020/21: R783 million
Payment schedule x Transfers are made in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Determine eligibility and set grant allocations and FTE targets for eligible municipalities
receiving officer x Publish on the EPWP website all documents relevant for municipalities to understand and implement
the grant, including a grant manual, the relevant EPWP guidelines and the Ministerial Determination
x Support municipalities in the manner agreed to in the grant agreement, to:
o identify suitable EPWP projects and develop EPWP project lists in accordance with the EPWP
project selection criteria
o apply the EPWP project selection criteria and EPWP guidelines to project design
o report using the EPWP reporting system
x Monitor the performance and spending of municipalities according to the signed incentive agreement
x Disburse the grant to eligible municipalities
x Conduct data quality assessments on a continuous basis, to support good governance and identify areas
for administrative improvement
x Manage the EPWP coordinating structures in collaboration with provincial coordinating departments
to support implementation, identify blockages and facilitate innovative solutions
x Conduct site visits to identify where support is needed
Responsibilities of the eligible municipalities
x Develop and submit an EPWP project list to DPW by 08 June 2018
x Sign the standard funding agreement with DPW agreeing to comply with the conditions of the grant
before receiving any grant disbursement
x Agree on the areas requiring technical support from DPW upon signing the grant agreement
x Ensure that reporting is done within the timelines stipulated in the grant agreement and that
information is captured in the EPWP reporting system
x Municipalities must maintain beneficiary and payroll records as specified in the audit requirements in
the EPWP grant manual, and make these available to DPW for data quality assessment tests
x Reports must be loaded within 15 days after the end of every quarter in order for progress to be
assessed
x Submission of quarterly non-financial reports by the timelines stipulated in the clauses of the Division
of Revenue Act
Process for approval of x Municipalities must report performance on EPWP projects for the 2018/19 financial year by
2019/20 business plans 31 October 2018 to be eligible for a grant allocation
x Municipalities must submit a signed EPWP integrated agreement and project list by 07 June 2019
 227

TRANSPORT GRANTS

Public Transport Network Grant

Transferring department x Transport (Vote 35)
Grant schedule x Schedule 5, Part B
Strategic goal x To support the National Land Transport Act (Act No. 5 of 2009) and Public Transport Strategy (PTS) and
Action Plan in promoting the provision of accessible, reliable and affordable integrated municipal public
transport network services
Grant purpose x To provide funding for accelerated construction and improvement of public and non-motorised transport
infrastructure that form part of a municipal integrated public transport network and to support the planning,
regulation, control, management and operations of fiscally and financially sustainable municipal public
transport network services
Outcome statements x Improved public transport network infrastructure and services that function optimally and are safe,
convenient, affordable, well managed and maintained
x Public transport systems that are accessible to an increasing percentage of the population of urban
municipalities and contribute to more spatially efficient urban areas
Outputs Network Operations Component
x Number of average weekday passenger trips carried on Public Transport Network Grant (PTNG) funded
networks
x Number and percentage of municipal households within a 500m walk to an Integrated Public Transport
Network (IPTN) station or stop that has a minimum peak period frequency of 15 minutes or better
x Percentage uptime for network opHUDWLQJV\VWHPVDVDSURSRUWLRQRIWKHQHWZRUN¶VSXEOLFRSHUDWLQJKRXUV
x Passengers per network vehicle per average weekday
Network Infrastructure Component
x Public transport network infrastructure including dedicated lanes, routes and stops/shelters, stations,
depots, signage and information displays, control centres and related information technology, fare systems
and vehicles (if the national Department of Transport (DoT) in consultation with National Treasury
approves use of grant funds to purchase vehicles), non-motorised transport (NMT) infrastructure that
supports network integration (e.g. sidewalks, cycleways, cycle storage at stations, etc.)
x Plans and detailed design related to IPTN infrastructure and operations
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this x Outcome 9: Responsive, accountable, effective and efficient developmental local government
grant primarily
contributes to
Details contained in the x This grant uses IPTN operational and related plans that include financial modelling
business plan
Conditions x Projects must be based on and form part of a strategic, municipal wide, long-term IPTN plan and strategy
approved by the municipal council
x Projects funded by this grant must be based on an operational and business plan, which must include a
multi-year financial operational plan approved by the municipal council. This multi-year financial
operational plan must cover the full duration of any contracts for each phase funded by the PTNG and
include operating and maintenance costs and universal design access plans
x Projects must support an integrated multi-modal network approach as defined in the National Land
Transport Act (NLTA) and the Public Transport Strategy and municipalities must manage operations to
progressively achieve the standard of service defined in the Public Transport Strategy within available
resources
x Projects in metropolitan municipalities must demonstrate alignment to Built Environment Performance
Plans (BEPPs)
x Payments will be conditional on the attainment of milestones specified in the grant allocation letter to each
municipality from the DoT. Milestones are based on the approved IPTN operational plans of cities and are
defined after consultation with municipalities
x All public transport infrastructure and services funded through this grant must ensure that there is provision
for the needs of special categories of passengers (including disabled, elderly and pregnant passengers) in
line with the requirements of section 11(c)(xiv) of the NLTA
x Allocations for this grant are made through two components, with separate conditions applicable to each
component as set out in the allocations criteria section below. Allocations for the Network Operations
Component will be determined by DoT once municipalities submit an annual operations plan including
financial forecasts for 2018/19 by 1 June 2018. Funds for one component can be shifted to the other if
approved by DoT
x The first tranche is subject to cities submitting, by 1 June 2018, an updated multi-year financial operational
plan if requested by DoT for the duration of the vehicle operating contract/s pertaining to any phase on
which 2018/19 grant funds will be spent
x All new Intelligent Transport Solutions (ITS) related contracts that will incur grant expenditure must be
jointly approved by DoT and National Treasury before grant funds may be spent on them
 228

Public Transport Network Grant

Network Operations Component
x Operating subsidies from this component can fund security, station management, fare collection services,
control centre operations, information and marketing, network management, insurance, compensation for
the economic rights of existing operators and maintenance of infrastructure and systems
x From the start of operations, IPTN systems must recover all the direct operating costs of contracted vehicle
operators from fare revenue, other local funding sources and, if applicable, from any Public Transport
Operations Grant contributions. These direct operating costs consist of fuel, labour, operator administration
and vehicle maintenance
x From the start of operations on a route, the grant can fund a portion of the per kilometre rate to subsidise
up to 100 per cent of the capital cost (including interest and related fees) of vehicles purchased by the
vehicle operating company
x IPTN operational plans and on-going operations management must target improved farebox cost coverage,
through minimising costs and maximising fare revenues. Municipalities operating network services are
required to supply detailed operating performance and operating cost and revenue reports quarterly in the
formats prescribed by the DoT
x Operating subsidies for any new or existing service, line, route or phase, will only be transferred after a
PXQLFLSDOLW\PHHWVWKHUHTXLUHPHQWVRI'R7¶V2SHUDWLRQDO5HDGLQHVV)UDPHZRUN
x Municipalities must enforce rules and by-laws regarding usage of dedicated lanes, fare payment, and
operator/supplier compliance with contractual provisions
x Municipalities are required to establish specialist capacity to manage and monitor public transport system
contracts and operations
x Verified data on operator revenue and profitability and draft agreements for the compensation of existing
economic rights of affected operators must be provided to DoT prior to concluding agreements on
compensation for economic rights
x Municipalities must enforce agreements that only legal operators operate on routes subject to compensation
agreements
Network Infrastructure Component
x The grant can fund all IPTN-related infrastructure, including for non-motorised transport, upgrades of
existing public transport infrastructure and for new infrastructure
x Municipalities must demonstrate in their IPTN operational plans that they have attempted to give
maximum priority to public and non-motorised transport while minimising costs through using existing
infrastructure, road space and public land
x For each phase, final network routing, service design and related financial modelling must be submitted to
DoT for review and approval before municipalities proceed with detailed infrastructure design
x IPTN projects must meet the minimum requirements of the South African Bureau of Standards (including
Part S of the Building Regulations)
x Contracted operators should finance and own vehicles unless a case for the exceptional use of limited
infrastructure funding for vehicle procurement is approved by DoT, in consultation with National Treasury.
If approval is granted, any vehicles purchased with grant funds must remain the property of the
municipality
Allocation criteria x Allocations are only made to municipalities that submit business plans in line with the above conditions,
that demonstrate sufficient capacity to implement and operate any proposed projects, and credibly
demonstrate the long-term fiscal and financial sustainability of the proposed projects
x 75 per cent of available funds are allocated according the three public transport demand factors. The three
demand factors which are equally weighted are:
o size of population
o size of economy
o number of public transport users
x 20 per cent of available funds are allocated through a base component shared equally between participating
municipalities
x 5 per cent of available funds are allocated at the discretion of DoT, however from 2019/20 this component
will be allocated as a performance incentive to operating municipalities
x Allocations for the Network Operations Component are based on municipalities¶$QQXDO2SHUDWLRQV3ODQV
(to be submitted to DoT by 1 June 2018) which indicate the amount of the 2018/19 total allocation to be
used within the rules of this component. Approval of these allocations is specified in the DoT allocation
letter to municipalities and is based on the following rules:
o DoT approval of the annual operations plan
o the network operations component can be used in each phase and sub-phase of the introduction of
services to fund up to 70 per cent of indirect operating costs for two years after the municipal financial
year in which operations start. Thereafter the grant can fund up to 50 per cent. Non-PTNG sources
must cover the remaining costs
o compensation for the economic rights of existing operators can be funded up to 100 per cent in each
phase
 229

Public Transport Network Grant

Reasons not incorporated x Infrastructure and operational costs associated with the implementation of the PTS and NLTA were not
in equitable share included in municipal budgets prior to the introduction of IPTN services
Past performance 2016/17 audited financial outcomes:
x Public Transport Network Grant: R5.6 billion was allocated and R5.6 billion (100 per cent) was transferred
to municipalities
2016/17 service delivery performance:
x Cape Town: operational MyCiTi service consists of 40 routes, 42 stations, 416 bus stop pairs, 558 drivers
in 255 peak buses, and transport 61 974 passengers on a weekday as at end June 2017
x Ekurhuleni: trunk routes 1A, 1B, 2A, 2B, 4A and 4B completed; detailed designs for main depot
completed; construction of roads and parking bays at Vosloorus interim depot completed; MOU with
Ekurhuleni Taxi Industry signed and implemented; and section 67 agreement signed to facilitate
commencement of operations of the interim service provider
x eThekwini: 24.9 km right of way roadway on route C3 95 per cent complete and bridges and structures are
completed. Routes C1A and C9 detailed designs complete and route C9 interchange 50 per cent complete
x George: 83 km of routes in mixed traffic inclusive of non-motorised transport facilities are complete. The
system transports 13 500 passengers trips per weekday with R37.3 million in annual fare revenue
x Johannesburg: 50 475 average daily passenger trips; 1 137 average number of passenger trips with special
categories of need (2 per cent of total weekday trips). 48 trunk stations in use; 272 feeder and
complementary kerbside stops in use; 82 trunk vehicles in use; and 195 complementary and feeder vehicles
in use
x Rustenburg: 5.3 km trunk in corridor A is completed; 13 km trunk in corridor B is completed; six stations
are 80 per cent complete in corridor A; five station substructures are complete in corridor B; and universal
access compliant non-motorised transport infrastructure along the Corridor A trunk is completed
x Mbombela: 6.7 km of bi-directional network completed; 2.9 km of non-motorised facilities completed;
three transfer or primary stations (hubs) and 17 secondary stations completed
x Msunduzi: construction for Phase 1A 3.7 km complete; and upgrade of 12 km of strategic feeder routes of
on-going
x Polokwane: 1.35 km of dedicated trunk completed; 2.3 km of mixed traffic trunk completed; 1.45 km of
feeder completed; 3.43 km of non-motorised facilities; and three bus stops (kerbside-no shelter) completed
x Tshwane: 0.8 km of line 2B 64 per cent constructed; 0.64 km of line 1A (WP4B) 55 per cent constructed;
and 0.9 km of line 2C 15 per cent constructed. At Belle Ombre bus depot, bulk earthworks 96 per cent
completed and civil works 94 per cent complete while Kopanong intermodal public transport facility Phase
2 is 35 per cent complete; and Park Street non-motorided infrastructure (walkways and cycle paths)
84 per cent complete
Projected life x The grant is expected to continue until 2020/21, subject to review
MTEF allocations x 2018/19: R6.3 billion; 2019/20: R6.1 billion and 2020/21: R6.5 billion
Payment schedule x Transfers are made in accordance with an agreed payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Disburse PTNG funds and monitor PTNG expenditure
receiving officer x Monitor IPTN implementation progress and operating performance in line with the NLTA and the public
transport strategy
x Verify reports from municipalities by conducting at least one site visit per annum
x Allocate funds based on stated priorities through an allocation mechanism agreed to by the DoT and
National Treasury
x Review and comment on draft compensation agreements for economic rights
x Review and comment on the network model submitted by each municipality
x Evaluate the performance of the grant annually
x Maintain the database of operational performance based on the indicators and continue to track, report and
evaluate the performance of the grant based on these measures
x Finalise the public transport subsidy policy for South Africa
x Develop cost norms for ITS and include these in the annual PTNG guidelines and requirements circulated
to municipalities by DoT
x Submit copies of allocation letters and milestones to National Treasury
x Review the Public Transport Strategy to ensure its requirements enable municipalities to develop fiscally
sustainable IPTN systems
Responsibilities of municipalities
x Ensure that projects are implemented in line with approved business plans and are also reflected in the
integrated development plan of the municipality. Additional plans that municipalities will need to complete
include:
o network operational plans, including universal design access plans
o business and financial plans (including financial modelling, economic evaluation, and operator
transition plans)
o institutional network management plans
o engineering and architectural preliminary and detailed designs
 230

Public Transport Network Grant

o public transport vehicle and technology plans
o marketing and communication plans
x Projects funded by this grant must promote the integration of the public transport networks in a
municipality, through:
o physical integration between different services within a single network
o fare integration between different services
o marketing integration with unified branding
o institutional integration between the services
o spatial integration, in conjunction with other grants directed at the built environment
x Provide budget proposals for the PTNG funding that:
o are based on sound operational and financial plans that cover direct vehicle company operating costs
from local sources at a minimum
o indicate the intended allocations between the network operations component and network
infrastructure component
x Establish a dedicated project team to plan, manage and monitor infrastructure development and
maintenance, as well as operations with an emphasis on optimising vehicle kilometres through full use of
procured Intelligent Transport System tools
x Compile and submit data that indicates the efficiency and effectiveness of operational services in the
formats and using the indicators defined by the DoT
Process for approval of x Municipalities must submit business plans based on a fiscally and financially sustainable IPTN (or an
2019/20 MTEF agreed plan to compile this), supported by credible multi-year financial operational plans by 31 July 2018
allocations x DoT and National Treasury will jointly evaluate these plans ± based on pre-determined criteria regarding
financial and fiscal sustainability and sufficient capacity ± for the municipality¶V HOLJLELOLW\ IRU DQ
allocation in the 2019/20 financial year
x Municipalities that fail to pass the eligibility criteria will be informed by 31 August 2018 and may be asked
to resubmit plans
x Municipalities must include plans for how all municipal owned bus will be integrated into the 10 year
IPTN programme
 231

Rural Roads Asset Management Systems Grant

Transferring department x Transport (Vote 35)
Grant schedule x Schedule 5, Part B
Strategic goal x Ensure efficient and effective investment in municipal roads through development of Road Asset
Management Systems (RAMS) and collection of data
Grant purpose x To assist district municipalities to set up rural RAMS, and collect road, bridges and traffic data on
municipal road networks in line with the Road Infrastructure Strategic Framework for South Africa
(RISFSA)
Outcome statements x Improved data on municipal roads to guide infrastructure maintenance and investments
x Reduced vehicle operating costs
Outputs x Road condition data (paved and unpaved)
x Traffic data
x Data on condition of structures as per Technical Methods for Highways (TMH) 19 (including bridges and
culverts)
x Prioritised project list for roads to inform Municipal Infrastructure Grant project selection
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this grant x Outcome 7: Comprehensive rural development and land reform
primarily contributes to x Outcome 9: Responsive, accountable, effective and efficient developmental local government
Details contained in the x This grant uses Road Asset Management Business Plans which contain the following details: network
business plan hierarchy, performance management framework, gap analysis, information systems, lifecycle planning,
current and future demand, financial plan, monitoring, reviewing and continual improvements including
sharing data with local municipalities
Conditions x Transfer of the first tranche is conditional on submission of an approved business plan by 28 May 2018
x Transfer of the second tranche is conditional on submission of evidence of engagements and sharing of data
with local municipalities and compliance with monthly and quarterly report submissions to the national
Department of Transport (DoT), and the relevant Provincial Roads Authorities
x Road authorities must conduct regular condition assessments for paved and unpaved roads, structure, traffic
data and any other road inventory data
x District municipalities must provide local municipalities with validated information from the condition data
collected to enable municipalities to identify and prioritise road maintenance requirements within their own
budgets, to improve the condition and extend the lifespan of road infrastructure
x District municipalities must submit the above data to the national repository by August 2018
x Data collection must be in terms of the asset management practice note issued by the DoT
x The framework must be read in conjunction with the practice note as agreed with National Treasury
x Systems developed to record data must be compatible with DoT specifications
x District municipalities must participate in grant management structures, including attending quarterly
RRAMS meetings
x A maximum of five per cent may be used for municipal costs incurred as part of coordination, project
management and reporting by the district municipality. This must not be used to appoint municipal officials
x District municipalities must appoint an independent assessor to assess a representative sample of all roads
assessed (which is about 10 per cent of their assessed network) to confirm the correctness of the assessment
made by the municipality
Allocation criteria x Allocations are based on the extent of road network and number of local municipalities within a district
municipality
x All 44 district municipalities will benefit from this grant in the 2018 MTEF
Reasons not incorporated in x This is a specific purpose grant mainly for the provision of systems to collect data on traffic and conditions
equitable share of rural roads and access bridges
Past performance 2016/17 audited financial outcomes
x Of the R102 million that was allocated, R102 million (100 per cent) was transferred to municipalities
2016/17 service delivery performance
x 52 114 kilometres of paved road network, and 170 837 kilometres of unpaved road network were assessed
by the programme in the 44 district municipalities receiving the grant
x 163 graduates were recruited into the programme
Projected life x The grant has a life span up to 2020/21, subject to review
MTEF allocations x 2018/19: R108 million; 2019/20: R114 million and 2020/21: R120 million
Payment schedule x Transfers are made in two tranches in accordance with a payment schedule approved by National Treasury
Responsibilities of the Responsibilities of the national department
transferring officer and x Monitoring implementation of RAMS together with provincial road authorities
receiving officer x Data integrity will be checked by DoT and provincial road authorities
x Provide guidance on sustainable RAMS operations and standards
 232

Rural Roads Asset Management Systems Grant

x Facilitate interaction between local municipalities and district municipalities in using RAMS outputs as
guidance in municipal road infrastructure management
x &KHFN WKH TXDOLW\ RI GDWD FDSWXUHG RQ PXQLFLSDOLWLHV¶ 5$06 LQ FROODERUDWLRQ ZLWK provincial road
authorities
Responsibilities of municipalities
x Municipalities must make provision to maintain RAMS after the lifespan of the grant
x Data for all rural roads to be updated within two years
x Recruit unemployed youth, S3 experiential training students and young graduates
x Ensure human capacity at municipalities for the operation of RAMS is built
x Road quality data on RAMS must be used for planning Municipal Infrastructure Grant (roads) investments
as well as roads maintenance funded from other sources
x Submission of updated RAMS data in TMH 18 format by 30 May 2018
Process for approval of x District municipalities must submit a Road Asset Management Plan (RAMP)/business plan annually to
2019/20 business plans DoT by 31 May 2019
x RAMP must contain the following:
o the extent of the road network in the municipality
o the proportion of municipal roads with updated data captured on its RAMS
o the condition of the network in the municipality
o the maintenance and rehabilitation needs of the municipal road network
o WKHVWDWXVRIWKHPXQLFLSDOLW\¶V5$06
o status of institutionalisation of RAMS in the district municipality
x TMH 22 RAMP guideline can be used as template
x DoT together with provincial roads authorities will evaluate the business plans and progress reports by
28 June 2019
 233

WATER AND SANITATION GRANTS

Regional Bulk Infrastructure Grant

Transferring department x Water and Sanitation (Vote 36)
Grant schedule x Schedule 5, Part B and Schedule 6, Part B
Strategic goal x Facilitate achievement of targets for access to bulk water and sanitation through successful execution and
implementation of bulk projects of regional significance
Grant purpose x To develop new, refurbish, upgrade and replace ageing water and sanitation infrastructure of regional
significance that connects water resources to infrastructure serving extensive areas across municipal
boundaries or large regional bulk infrastructure serving numerous communities over a large area within a
municipality
x To implement bulk infrastructure with a potential of addressing water conservation and water demand
management (WC/WDM) projects or facilitate and contribute to the implementation of local WC/WDM
projects that will directly impact on bulk infrastructure requirements
Outcome statements x Access to water supply enabled through regional bulk infrastructure
x Proper wastewater management and disposal enabled through regional wastewater infrastructure
Outputs x Number of regional bulk water and sanitation projects under construction
x Number of projects/project phases completed
x Number of households targeted to benefit from bulk supply
x Number of municipalities benefitting
x Number of job opportunities created
Priority outcome(s) of x Outcome 6: An efficient, competitive and responsive economic infrastructure network
government that this grant x Outcome 7: Comprehensive rural development and land reform
primarily contributes to x Outcome 9: Responsive, accountable, effective and efficient developmental local government
Details contained in the x This grant uses approved implementation readiness studies (IRS) and memorandums of understanding
business plan (MoU) which include the following:
o cash flow and implementation milestones
o details of key stakeholders and main contractors
o specific funding conditions related to the project
o outline of the roles and responsibilities of the respective parties
Conditions x The Regional Bulk Infrastructure Grant (RBIG) is intended to fund the social component of regional bulk
water and sanitation projects approved by the Department of Water and Sanitation (DWS), unless
exemptions based on affordability are recommended by DWS and approved by National Treasury
x All identified projects must be referenced to and included in the municipal Integrated Development Plan
(IDP) and Water Services Development Plans (WSDP) and show linkages to projects under the Municipal
Infrastructure Grant (MIG) and/or the Water Services Infrastructure Grant (WSIG)
x Funds may only be used for drought relief interventions based on a business plan approved by DWS
Schedule 5, Part B allocations
x The municipality must spend grant funds in line with the IRS approved by DWS
x The municipality must submit monthly financial and quarterly non-financial reports to DWS on stipulated
dates
x Grant funds must be reflected in the capital budget of the municipality
x All sources of funding for the cost of the project must be clearly outlined in the approved IRS
x The financing plan with associated co-funding agreements must be in place prior to implementation of the
project unless exemption to co-funding requirements has been approved by National Treasury
Schedule 6, Part B allocations
x This grant can be used to build enabling infrastructure required to connect or protect water resources over
significant distances with bulk and reticulation systems
x A financing plan with associated co-funding agreements must be in place prior to implementation of
RBIG funded projects
x All sources of funding for the full cost of the project must be outlined in the IRS and the MoU, which
must be signed by DWS and the benefiting municipality
x RBIG payments for Schedule 6, Part B allocations will be made WR':6¶VFRQWUDFWHGimplementing agent
based on invoices for work done
x All projects must be implemented and transferred in line with the approved IRS
Allocation criteria x Projects are assessed individually, and allocations are made by DWS on a project basis, taking into
account the following factors:
o demand and availability of water
o the overall infrastructure needs
o the strategic nature of the project
o socio-economic importance of an area
o urgency and impact of the intervention
Reasons not incorporated x Regional bulk projects are closely linked to water resource planning and development, which is a DWS
in equitable share competency
Past performance 2016/17 audited financial outcome
x Of an approved revised budget allocation (Schedule 5, Part B) of R1.8 billion; R1.8 billion (100 per cent)
was transferred
x Of an approved revised budget allocation (Schedule 6, Part B) of R3.5 billion; 98 per cent was spent
 234

Regional Bulk Infrastructure Grant

2016/17 service delivery performance
x Five project phases were completed:
o Masilonyana-Brandfort phase1
o Kalahari East to Mier pipeline
o Steytlerville Water Supply Scheme
o Noupoort Bulk Water Supply
o Gariep Dam to Norvaltspond Bulk Water Supply
x 81 project phases were in construction
Projected life x The grant will continue until 2020/21, subject to review
MTEF allocations Direct transfers (Schedule 5, Part B):
x 2018/19: R2 billion; 2019/20: R2.1 billion and 2020/21: R2.2 billion
Allocation-in-kind (Schedule 6, Part B):
x 2018/19: R2.9 billion; 2019/20: R3 billion and 2020/21: R3.2 billion
Payment schedule x Payments for Schedule 5, Part B allocations are made in terms of a payment schedule approved by
National Treasury
x Payments for Schedule 6, Part B payments are made after verification of work performed
Responsibilities of the Responsibilities of the national department
transferring officer and x Support the development of Water Services $XWKRULWLHV¶ (WSA) water services infrastructure master plans
receiving officer x Ensure every municipality benefiting from a specific project or scheme is invited to participate in the
feasibility study and IRS
x Enter into agreements with WSAs regarding the construction, ownership, funding arrangements, and
operation and maintenance of proposed infrastructure prior to the commencement of construction. These
agreements must be specified in the IRS and/or in the funding agreement
x If required, ensure the necessary authorisations including environmental impact assessment and water use
licences are obtained
x Provide detailed information on the selection criteria and conditions for the grant (RBIG Programme
Implementation Framework)
x Ensure that suitable agreements are in place between an implementing agent who will continue to operate
the infrastructure after completion and the WSA
x All drought related plans and expenditure must be shared with the National Disaster Management Centre
Responsibilities of Water Services Authorities
x Develop and regularly update water services infrastructure master plans
x Submit monthly, quarterly and annual progress reports to DWS
x Ensure that projects are appropriately linked to the municipalit\¶V water services infrastructure master
plans, their IDP and WSDP and projects funded through the MIG and WSIG
x Once a project is completed, ensure adherence to operations and maintenance plans and/or any other
requirements agreed to as part of the funding agreement, and ensure the sustainability of infrastructure
x Ensure integration of planning, funding, timing and implementation of bulk and reticulation projects
x Ensure provision of reticulation services and/or reticulation infrastructure to connect to the bulk
infrastructure funded through this grant
Process for approval of x Due to the long-term nature of projects, dates of the various processes are not fixed
2019/20 business plans x All proposed projects which comply with the RBIG criteria must be registered and listed in DWS¶V bulk
master plans
x At regional level, a coordination committee of key stakeholders to assist with planning of regional bulk
projects and the assessment of the IRS and feasibility studies must be in place
x Pre-feasibility studies must assess potential for WC/WDM interventions
x IRS and feasibility studies will be evaluated and approved by the transferring officer
x All projects are allocated a budget by DWS and submitted to National Treasury for gazetting as indicative
budget allocations
x Project funding approval letters will be issued to the benefiting municipalities
x Based on the outcome of the IRS, DWS will nominate the implementing agent for the construction phase
of Schedule 6, Part B projects and designate the owner of the infrastructure. National Treasury and
benefitting municipalities will be informed of the decisions
 235

Water Services Infrastructure Grant

Transferring department x Water and Sanitation (Vote 36)
Grant schedule x Schedule 5, Part B and Schedule 6, Part B
Strategic goal x To assist Water Services Authorities (WSAs) to reduce water and sanitation backlogs
Grant purpose x Facilitate the planning and implementation of various water and on-site sanitation projects to accelerate
backlog reduction and enhance the sustainability of services especially in rural municipalities
x Provide interim, intermediate water and sanitation supply that ensures provision of services to identified
and prioritised communities, including through spring protection and groundwater development
x Support municipalities in implementing water conservation and water demand management (WC/WDM)
projects
x Support the existing Bucket Eradication Programme intervention in formal residential areas
x Support drought relief projects in affected municipalities
Outcome statements x An increased number of households with access to reliable, safe drinking water and sanitation services
Outputs x Number of households provided with water and sanitation through:
o reticulated water supply
o on-site sanitation
o bucket systems replaced with appropriate sanitation facilities for households identified by the
Department of Water and Sanitation (DWS) in the 2015/16 verification process
o source identification
o water conservation/water demand management provision
x Number of households reached by health and hygiene awareness and end-user education
x Number of job opportunities created
Priority outcome(s) of x Outcome 7: Comprehensive rural development and land reform
government that this grant x Outcome 8: Sustainable human settlements and improved quality of household life
primarily contributes to x Outcome 9: Responsive, accountable, effective and efficient developmental local government
Details contained in the x Outcome indicators
business plan x Output indicators
x Inputs
x Key activities
x Roles and responsibilities
Conditions x All projects funded must be aligned to, and not duplicate, any existing or planned projects funded by other
conditional grants or municipalLWLHV¶ own funds
x Municipalities must demonstrate in their business plans how they plan to manage, operate and maintain the
infrastructure over the long term
Schedule 5, Part B allocations
x Municipalities must submit business plans signed off by their Accounting Officer in line with their Water
Services Development Plans (WSDPs) and Intergrated Development Plans (IDPs)
x DWS must approve the business plans before projects can be implemented
x WSAs may only spend funds in line with approved business plans
x WSAs must submit monthly financial and quarterly non-financial reports to DWS
x Funds must be reflected in the capital budget of the municipality
x Grant funds must not be spent on operations and routine maintenance
x The Project Management Unit funded through the Municipal Infrastructure Grant should be utilised to
manage the implementation of projects funded through this grant
x Funds may only be used for drought relief interventions based on a plan approved by DWS
Schedule 6, Part B allocations
x Municipal accounting officers must sign-off that business plans are in line with their WSDP/IDP. In the
case of Bucket Eradication Programme projects, a memorandum of understanding (MoU) will guide
implementation
x DWS must approve the business plans before projects can be implemented
x DWS must enter into a MoU with the relevant municipality before any project is implemented
x Service level agreements (SLAs) between DWS and the WSA must specify:
o the location of the project and communities impacted
o the consultation process that was undertaken with affected communities
o WKHDOLJQPHQWEHWZHHQWKHSURMHFWSODQDQGWKHPXQLFLSDOLW\¶V WSDP and IDP
o the interim/intermediate and/or localised infrastructure that will be built or the intervention that will be
implemented
o the cost of the project and timeframe for completion
o how maintenance of the infrastructure will be conducted and funded in future by the municipality
 236

Water Services Infrastructure Grant

o details of how the capacity of the municipality will be strengthened through the project
implementation process so that it can implement projects itself in future
o ':6¶s implementing agent
o agreement by the municipality that the project should be implemented as an allocation-in-kind
Allocation criteria x Allocations are based on the number of households with water and sanitation backlogs, prioritising the
27 priority district municipalities identified by government
x Allocations for the Bucket Eradication Programme in Schedule 6, Part B, are based on the remaining work
needed to replace bucket systems with appropriate sanitation facilities for households identified by DWS in
the 2015/16 verification process
Reasons not incorporated in x The grant is earmarked for specific projects aimed at providing access to basic water and sanitation
equitable share services
Past performance 2016/17 audited financial outcome
x Water Services Infrastructure Grant (Schedule 5, Part B):
o of the R2.8 billion allocated, R2.4 billion (83 per cent) was transferred
x Water Services Infrastructure Grant (Schedule 6, Part B):
o of the R311 million allocated, R297 million (95 per cent) was spent
2016/17 service delivery performance
x Water Services Infrastructure Grant:
o 28 200 households served
o 509 jobs created
Projected life x The grant will continue until the 2020/21 financial year, subject to review
MTEF allocations Direct transfers (Schedule 5, Part B):
x 2018/19: R3.5 billion; 2019/20: R3.7 billion and 2020/21: R3.9 billion
Allocations-in-kind (Schedule 6, Part B):
x 2018/19: R608 million; 2019/20: R642 million and 2020/21: R678 million
Payment schedule x For Schedule 5, Part B, transfers are made in accordance with a payment schedule approved by National
Treasury
x For Schedule 6, Part B, payments are made to contracted implementing agents (including water boards and
private service providers) after verification of work performed
Responsibilities of the Responsibilities of the national department
transferring officer and x Evaluate and approve the business plans for each project before funds can be transferred
receiving officer x Ensure that the conditions of the grant and approved business plans are adhered to
x Submit statutory reports (monthly financial, quarterly non-financial and annual performance) to National
Treasury
x Ensure that implementing agents submit monthly financial and quarterly non-financial reports
x In cases where DWS appoints a contractor, the contract between DWS and the appointed contractor must
be signed before the project can commence
x All drought-related plans and expenditure must be shared with the National Disaster Management Centre
Responsibilities of water services authorities
x Compile and submit signed-off business plans for each project (for the relevant financial year)
x Sustainably operate and maintain funded water and sanitation projects over their lifetime
x Ensure integrated planning for all projects funded through the different grants and programmes
x Municipalities must submit a technical report for each project to the regional office
x Ensure adequate participation and involvement of the public in each project
x Manage project implementation in line with the business plan
x Submit monthly, quarterly and annual progress reports in the format prescribed by DWS
x Comply with all the funding conditions agreed to in the business plan and MoU
Process for approval of x Municipalities must submit a technical report for each project to the regional office
2019/20 business plans x Regional offices must assess technical reports
x Municipalities must prepare business plans based on the assessed technical reports
x Business plans must be submitted to DWS by 29 March 2019
x Business plans must be approved by DWS by 1 May 2019
 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS
237

(National and Municipal Financial Years)

 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS

Energy Efficiency and Demand Side Expanded Public Works Programme Integrated
Infrastructure Skills Development Grant Local Government Financial Management Grant SUB-TOTAL: CURRENT1
Management Grant Grant for Municipalities
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

A BUF Buffalo City 8 000 10 000 10 000 10 800 10 517 11 000 1 150 1 000 1 000 4 050 - - 24 000 21 517 22 000
A NMA Nelson Mandela Bay - - - 11 834 12 229 13 300 1 000 1 000 1 000 6 711 - - 19 545 13 229 14 300

B EC101 Dr Beyers Naude - - - - - - 6 085 4 000 3 000 1 032 - - 7 117 4 000 3 000
B EC102 Blue Crane Route - - - - - - 1 770 2 235 2 667 1 000 - - 2 770 2 235 2 667
B EC104 Makana - - - - - - 2 215 2 680 3 112 1 000 - - 3 215 2 680 3 112
B EC105 Ndlambe - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
B EC106 Sundays River Valley - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B EC108 Kouga - - - - - - 1 770 1 770 1 770 1 013 - - 2 783 1 770 1 770
B EC109 Kou-Kamma - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
C DC10 Sarah Baartman District Municipality - - - - - - 1 000 1 000 1 000 1 000 - - 2 000 1 000 1 000
Total: Sarah Baartman Municipalities - - - - - - 19 195 19 435 20 595 8 045 - - 27 240 19 435 20 595

B EC121 Mbhashe - - - - - - 1 770 1 770 1 770 5 015 - - 6 785 1 770 1 770

B EC122 Mnquma - - - - - - 1 700 1 700 1 700 1 308 - - 3 008 1 700 1 700
B EC123 Great Kei - - - - - - 2 415 2 415 2 415 1 168 - - 3 583 2 415 2 415
B EC124 Amahlathi - - - - - - 1 770 2 235 2 235 1 449 - - 3 219 2 235 2 235
B EC126 Ngqushwa - - - - - - 2 415 2 880 3 312 1 480 - - 3 895 2 880 3 312
B EC129 Raymond Mhlaba - - - - - - 3 870 3 000 2 500 1 752 - - 5 622 3 000 2 500
C DC12 Amathole District Municipality - - - - - - 1 000 1 000 1 000 2 446 - - 3 446 1 000 1 000
Total: Amathole Municipalities - - - - - - 14 940 15 000 14 932 14 618 - - 29 558 15 000 14 932

B EC131 Inxuba Yethemba - - - - - - 2 215 2 680 3 112 1 456 - - 3 671 2 680 3 112
B EC135 Intsika Yethu - - - - - - 2 215 2 215 2 215 2 898 - - 5 113 2 215 2 215
B EC136 Emalahleni - - - - - - 2 415 2 880 3 312 2 022 - - 4 437 2 880 3 312
B EC137 Engcobo - - - - - - 1 700 1 700 1 700 2 160 - - 3 860 1 700 1 700
B EC138 Sakhisizwe - - - - - - 1 700 1 700 1 700 1 951 - - 3 651 1 700 1 700
B EC139 Enoch Mgijima - - - - - - 6 015 4 000 3 000 4 253 - - 10 268 4 000 3 000
238

C DC13 Chris Hani District Municipality - - - - - - 1 250 1 250 1 000 6 158 - - 7 408 1 250 1 000
Total: Chris Hani Municipalities - - - - - - 17 510 16 425 16 039 20 898 - - 38 408 16 425 16 039

B EC141 Elundini 5 000 8 000 8 000 - - - 1 700 1 700 1 700 1 777 - - 8 477 9 700 9 700
B EC142 Senqu - - - - - - 1 700 1 700 1 700 2 796 - - 4 496 1 700 1 700
B EC145 Walter Sisulu - - - - - - 4 315 3 000 2 000 1 517 - - 5 832 3 000 2 000
C DC14 Joe Gqabi District Municipality - - - - - - 1 320 1 785 1 510 2 254 - - 3 574 1 785 1 510
Total: Joe Gqabi Municipalities 5 000 8 000 8 000 - - - 9 035 8 185 6 910 8 344 - - 22 379 16 185 14 910

B EC153 Ngquza Hill - - - - - - 1 700 1 700 1 700 1 398 - - 3 098 1 700 1 700
B EC154 Port St Johns - - - - - - 1 970 2 435 2 867 1 775 - - 3 745 2 435 2 867
B EC155 Nyandeni - - - - - - 1 700 1 700 1 700 1 321 - - 3 021 1 700 1 700
B EC156 Mhlontlo - - - - - - 2 415 2 415 2 415 1 821 - - 4 236 2 415 2 415
B EC157 King Sabata Dalindyebo 8 000 6 000 6 000 6 000 6 000 6 400 2 215 2 680 2 680 3 954 - - 20 169 14 680 15 080
C DC15 O.R. Tambo District Municipality - - - - - - 2 115 2 115 2 115 4 882 - - 6 997 2 115 2 115
Total: O.R. Tambo Municipalities 8 000 6 000 6 000 6 000 6 000 6 400 12 115 13 045 13 477 15 151 - - 41 266 25 045 25 877

B EC441 Matatiele - - - - - - 1 700 1 700 1 700 3 185 - - 4 885 1 700 1 700

B EC442 Umzimvubu - - - - - - 1 770 1 770 1 770 2 476 - - 4 246 1 770 1 770
B EC443 Mbizana - - - - - - 2 215 2 215 2 215 2 335 - - 4 550 2 215 2 215
B EC444 Ntabankulu - - - - - - 1 970 2 435 2 867 1 909 - - 3 879 2 435 2 867
C DC44 Alfred Nzo District Municipality 6 000 6 000 6 000 5 400 5 000 6 200 1 865 1 865 1 790 10 844 - - 24 109 12 865 13 990
Total: Alfred Nzo Municipalities 6 000 6 000 6 000 5 400 5 000 6 200 9 520 9 985 10 342 20 749 - - 41 669 20 985 22 542

Total: Eastern Cape Municipalities 27 000 30 000 30 000 34 034 33 746 36 900 84 465 84 075 84 295 98 566 - - 244 065 147 821 151 195
 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS

Energy Efficiency and Demand Side Expanded Public Works Programme Integrated
Infrastructure Skills Development Grant Local Government Financial Management Grant SUB-TOTAL: CURRENT1
Management Grant Grant for Municipalities
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

FREE STATE

A MAN Mangaung - - - - - - 3 345 3 000 2 500 2 423 - - 5 768 3 000 2 500

B FS161 Letsemeng - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867

B FS162 Kopanong - - - - - - 1 700 1 700 2 132 1 000 - - 2 700 1 700 2 132
B FS163 Mohokare - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
C DC16 Xhariep District Municipality - - - - - - 1 320 1 785 1 510 1 029 - - 2 349 1 785 1 510
Total: Xhariep Municipalities - - - - - - 6 960 8 355 9 376 4 029 - - 10 989 8 355 9 376

B FS181 Masilonyana - - - - - - 1 970 1 970 2 402 1 000 - - 2 970 1 970 2 402

B FS182 Tokologo - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
B FS183 Tswelopele - - - - - - 1 970 1 970 1 970 1 000 - - 2 970 1 970 1 970
B FS184 Matjhabeng - - - - - - 2 215 2 680 3 112 1 000 - - 3 215 2 680 3 112
B FS185 Nala 5 000 6 000 6 000 - - - 2 415 2 880 3 312 1 000 - - 8 415 8 880 9 312
C DC18 Lejweleputswa District Municipality - - - - - - 1 000 1 000 1 000 1 000 - - 2 000 1 000 1 000
Total: Lejweleputswa Municipalities 5 000 6 000 6 000 - - - 11 540 12 935 14 663 6 000 - - 22 540 18 935 20 663

B FS191 Setsoto - - - - - - 1 700 2 165 2 165 1 517 - - 3 217 2 165 2 165

B FS192 Dihlabeng - - - - - - 1 770 2 235 2 667 1 000 - - 2 770 2 235 2 667
B FS193 Nketoana - - - - - - 1 770 2 235 2 667 1 054 - - 2 824 2 235 2 667
B FS194 Maluti-a-Phofung - - - - - - 2 215 2 680 3 112 4 120 - - 6 335 2 680 3 112
B FS195 Phumelela - - - - - - 2 415 2 880 3 312 - - - 2 415 2 880 3 312
B FS196 Mantsopa - - - - - - 2 215 2 680 3 112 1 130 - - 3 345 2 680 3 112
C DC19 Thabo Mofutsanyana District Municipality 8 000 8 000 8 000 - - - 1 320 1 785 2 217 1 180 - - 10 500 9 785 10 217
Total: Thabo Mofutsanyana Municipalities 8 000 8 000 8 000 - - - 13 405 16 660 19 252 10 001 - - 31 406 24 660 27 252

B FS201 Moqhaka - - - - - - 2 215 2 215 2 215 1 000 - - 3 215 2 215 2 215

B FS203 Ngwathe - - - - - - 2 215 2 680 3 112 - - - 2 215 2 680 3 112
B FS204 Metsimaholo - - - - - - 1 770 2 235 2 667 1 000 - - 2 770 2 235 2 667
239

B FS205 Mafube - - - - - - 2 415 2 880 3 312 - - - 2 415 2 880 3 312

C DC20 Fezile Dabi District Municipality - - - - - - 1 000 1 000 1 000 - - - 1 000 1 000 1 000
Total: Fezile Dabi Municipalities - - - - - - 9 615 11 010 12 306 2 000 - - 11 615 11 010 12 306

Total: Free State Municipalities 13 000 14 000 14 000 - - - 44 865 51 960 58 097 24 453 - - 82 318 65 960 72 097

GAUTENG

A EKU City of Ekurhuleni 14 000 13 065 15 000 - - - 1 000 1 000 1 000 25 054 - - 40 054 14 065 16 000
A JHB City of Johannesburg - - - 7 200 7 500 8 000 1 000 1 000 1 000 34 737 - - 42 937 8 500 9 000
A TSH City of Tshwane 10 000 15 000 15 000 - - - 2 650 2 250 2 250 32 013 - - 44 663 17 250 17 250

B GT421 Emfuleni - - - - - - 1 550 2 015 2 015 2 746 - - 4 296 2 015 2 015

B GT422 Midvaal - - - - - - 1 550 1 550 1 550 1 181 - - 2 731 1 550 1 550
B GT423 Lesedi 6 000 6 000 6 000 - - - 1 550 1 550 1 550 1 297 - - 8 847 7 550 7 550
C DC42 Sedibeng District Municipality - - - - - - 1 250 1 000 1 000 1 000 - - 2 250 1 000 1 000
Total: Sedibeng Municipalities 6 000 6 000 6 000 - - - 5 900 6 115 6 115 6 224 - - 18 124 12 115 12 115

B GT481 Mogale City - - - - - - 1 550 1 550 1 550 4 346 - - 5 896 1 550 1 550
B GT484 Merafong City - - - - - - 1 700 2 165 2 597 1 180 - - 2 880 2 165 2 597
B GT485 Rand West City 6 000 5 000 5 000 - - - 3 170 2 500 2 000 2 135 - - 11 305 7 500 7 000
C DC48 West Rand District Municipality - - - - - - 1 000 1 000 1 000 1 105 - - 2 105 1 000 1 000
Total: West Rand Municipalities 6 000 5 000 5 000 - - - 7 420 7 215 7 147 8 766 - - 22 186 12 215 12 147

Total: Gauteng Municipalities 36 000 39 065 41 000 7 200 7 500 8 000 17 970 17 580 17 512 106 794 - - 167 964 64 145 66 512
 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS

Energy Efficiency and Demand Side Expanded Public Works Programme Integrated
Infrastructure Skills Development Grant Local Government Financial Management Grant SUB-TOTAL: CURRENT1
Management Grant Grant for Municipalities
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

A ETH eThekwini 14 000 15 000 15 000 30 500 31 000 32 000 1 000 1 000 1 000 75 333 - - 120 833 47 000 48 000

B KZN212 uMdoni - - - - - - 4 315 3 000 2 000 1 219 - - 5 534 3 000 2 000

B KZN213 uMzumbe - - - - - - 1 900 1 900 1 900 1 526 - - 3 426 1 900 1 900
B KZN214 uMuziwabantu - - - - - - 1 900 1 900 1 900 1 213 - - 3 113 1 900 1 900
B KZN216 Ray Nkonyeni 6 000 8 000 8 000 - - - 3 600 2 500 2 000 4 061 - - 13 661 10 500 10 000
C DC21 Ugu District Municipality - - - - - - 1 865 1 865 1 800 3 250 - - 5 115 1 865 1 800
Total: Ugu Municipalities 6 000 8 000 8 000 - - - 13 580 11 165 9 600 11 269 - - 30 849 19 165 17 600

B KZN221 uMshwathi - - - - - - 1 970 1 970 1 970 1 471 - - 3 441 1 970 1 970

B KZN222 uMngeni - - - - - - 1 770 1 770 1 770 1 000 - - 2 770 1 770 1 770
B KZN223 Mpofana - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
B KZN224 iMpendle - - - - - - 1 900 2 365 2 365 1 160 - - 3 060 2 365 2 365
B KZN225 Msunduzi - - - - - - 1 700 1 700 1 700 2 890 - - 4 590 1 700 1 700
B KZN226 Mkhambathini - - - - - - 1 970 2 435 2 867 1 034 - - 3 004 2 435 2 867
B KZN227 Richmond - - - - - - 1 900 1 900 1 900 1 515 - - 3 415 1 900 1 900
C DC22 uMgungundlovu District Municipality - - - - - - 1 000 1 000 1 000 4 265 - - 5 265 1 000 1 000
Total: uMgungundlovu Municipalities - - - - - - 14 180 15 575 16 439 14 335 - - 28 515 15 575 16 439

B KZN235 Okhahlamba - - - - - - 1 900 1 900 1 900 2 432 - - 4 332 1 900 1 900

B KZN237 iNkosi Langalibalele - - - - - - 3 670 2 500 2 000 1 387 - - 5 057 2 500 2 000
B KZN238 Alfred Duma - - - 1 800 2 000 3 130 3 600 2 500 2 000 4 319 - - 9 719 4 500 5 130
C DC23 uThukela District Municipality - - - - - - 1 545 2 010 1 800 6 206 - - 7 751 2 010 1 800
Total: uThukela Municipalities - - - 1 800 2 000 3 130 10 715 8 910 7 700 14 344 - - 26 859 10 910 10 830

B KZN241 eNdumeni - - - - - - 1 770 2 235 2 235 1 000 - - 2 770 2 235 2 235

B KZN242 Nquthu - - - - - - 1 900 1 900 1 900 1 014 - - 2 914 1 900 1 900
B KZN244 uMsinga - - - - - - 1 900 1 900 1 900 4 394 - - 6 294 1 900 1 900
B KZN245 uMvoti - - - - - - 1 870 2 335 2 767 1 849 - - 3 719 2 335 2 767
C DC24 uMzinyathi District Municipality - - - - - - 1 320 1 785 1 500 5 109 - - 6 429 1 785 1 500
Total: uMzinyathi Municipalities - - - - - - 8 760 10 155 10 302 13 366 - - 22 126 10 155 10 302
240

B KZN252 Newcastle - - - - - - 1 700 1 700 1 700 3 199 - - 4 899 1 700 1 700

B KZN253 eMadlangeni - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
B KZN254 Dannhauser - - - - - - 1 900 1 900 1 900 1 000 - - 2 900 1 900 1 900
C DC25 Amajuba District Municipality - - - - - - 1 570 2 035 2 467 1 620 - - 3 190 2 035 2 467
Total: Amajuba Municipalities - - - - - - 7 140 8 070 8 934 6 819 - - 13 959 8 070 8 934

B KZN261 eDumbe - - - - - - 1 970 2 435 2 867 1 103 - - 3 073 2 435 2 867

B KZN262 uPhongolo - - - - - - 1 970 2 435 2 867 2 534 - - 4 504 2 435 2 867
B KZN263 AbaQulusi - - - - - - 1 770 2 235 2 667 1 295 - - 3 065 2 235 2 667
B KZN265 Nongoma - - - - - - 1 970 1 970 1 970 1 615 - - 3 585 1 970 1 970
B KZN266 Ulundi - - - - - - 1 870 1 870 1 870 3 854 - - 5 724 1 870 1 870
C DC26 Zululand District Municipality - - - - - - 1 000 1 465 1 200 5 908 - - 6 908 1 465 1 200
Total: Zululand Municipalities - - - - - - 10 550 12 410 13 441 16 309 - - 26 859 12 410 13 441

B KZN271 uMhlabuyalingana - - - - - - 1 900 1 900 1 900 3 047 - - 4 947 1 900 1 900

B KZN272 Jozini - - - - - - 1 970 2 435 2 867 2 751 - - 4 721 2 435 2 867
B KZN275 Mtubatuba - - - - - - 1 970 1 970 1 970 2 070 - - 4 040 1 970 1 970
B KZN276 Big Five Hlabisa - - - - - - 3 870 3 000 2 500 1 826 - - 5 696 3 000 2 500
C DC27 uMkhanyakude District Municipality - - - - - - 1 000 1 465 1 897 3 022 - - 4 022 1 465 1 897
Total: uMkhanyakude Municipalities - - - - - - 10 710 10 770 11 134 12 716 - - 23 426 10 770 11 134

B KZN281 uMfolozi - - - - - - 1 900 1 900 1 900 1 620 - - 3 520 1 900 1 900

B KZN282 uMhlathuze 6 000 10 000 11 554 5 000 5 000 5 250 2 650 2 650 2 650 5 189 - - 18 839 17 650 19 454
B KZN284 uMlalazi - - - - - - 1 770 1 770 1 770 3 212 - - 4 982 1 770 1 770
B KZN285 Mthonjaneni - - - - - - 2 850 2 850 2 850 1 808 - - 4 658 2 850 2 850
B KZN286 Nkandla - - - - - - 1 970 2 435 2 867 2 712 - - 4 682 2 435 2 867
C DC28 King Cetshwayo District Municipality - - - - - - 1 000 1 465 1 200 7 762 - - 8 762 1 465 1 200
Total: King Cetshwayo Municipalities 6 000 10 000 11 554 5 000 5 000 5 250 12 140 13 070 13 237 22 303 - - 45 443 28 070 30 041

B KZN291 Mandeni - - - - - - 1 900 1 900 1 900 2 255 - - 4 155 1 900 1 900

B KZN292 KwaDukuza 5 000 6 000 6 000 - - - 1 800 1 800 1 800 1 540 - - 8 340 7 800 7 800
B KZN293 Ndwedwe - - - - - - 1 970 2 435 2 867 1 195 - - 3 165 2 435 2 867
B KZN294 Maphumulo - - - - - - 1 900 1 900 1 900 1 157 - - 3 057 1 900 1 900
C DC29 iLembe District Municipality 7 000 10 000 15 000 - - - 1 000 1 000 1 000 1 731 - - 9 731 11 000 16 000
Total: iLembe Municipalities 12 000 16 000 21 000 - - - 8 570 9 035 9 467 7 878 - - 28 448 25 035 30 467

B KZN433 Greater Kokstad - - - - - - 1 800 1 800 1 800 1 311 - - 3 111 1 800 1 800
B KZN434 uBuhlebezwe - - - - - - 1 970 1 970 1 970 1 590 - - 3 560 1 970 1 970
B KZN435 uMzimkhulu - - - - - - 1 900 1 900 1 900 2 324 - - 4 224 1 900 1 900
B KZN436 Dr Nkosazana Dlamini Zuma - - - - - - 3 870 3 000 2 000 1 596 - - 5 466 3 000 2 000
C DC43 Harry Gwala District Municipality - - - - - - 1 000 1 000 1 000 2 518 - - 3 518 1 000 1 000
Total: Harry Gwala Municipalities - - - - - - 10 540 9 670 8 670 9 339 - - 19 879 9 670 8 670

Total: KwaZulu-Natal Municipalities 38 000 49 000 55 554 37 300 38 000 40 380 107 885 109 830 109 924 204 011 - - 387 196 196 830 205 858
 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS

Energy Efficiency and Demand Side Expanded Public Works Programme Integrated
Infrastructure Skills Development Grant Local Government Financial Management Grant SUB-TOTAL: CURRENT1
Management Grant Grant for Municipalities
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani - - - - - - 2 145 2 145 2 145 3 519 - - 5 664 2 145 2 145
B LIM332 Greater Letaba - - - - - - 2 145 2 145 2 145 1 521 - - 3 666 2 145 2 145
B LIM333 Greater Tzaneen - - - - - - 2 145 2 145 2 145 5 510 - - 7 655 2 145 2 145
B LIM334 Ba-Phalaborwa - - - - - - 2 215 2 680 3 112 1 000 - - 3 215 2 680 3 112
B LIM335 Maruleng - - - - - - 1 900 1 900 1 900 1 169 - - 3 069 1 900 1 900
C DC33 Mopani District Municipality - - - - - - 1 865 2 330 2 762 1 232 - - 3 097 2 330 2 762
Total: Mopani Municipalities - - - - - - 12 415 13 345 14 209 13 951 - - 26 366 13 345 14 209

B LIM341 Musina - - - - - - 1 900 2 365 2 797 1 040 - - 2 940 2 365 2 797

B LIM343 Thulamela - - - 1 800 2 000 3 130 1 700 1 700 1 700 6 225 - - 9 725 3 700 4 830
B LIM344 Makhado - - - - - - 1 700 1 700 1 700 1 240 - - 2 940 1 700 1 700
B LIM345 Collins Chabane - - - - - - 2 345 2 345 2 345 1 134 - - 3 479 2 345 2 345
C DC34 Vhembe District Municipality - - - - - - 1 865 2 330 2 762 1 215 - - 3 080 2 330 2 762
Total: Vhembe Municipalities - - - 1 800 2 000 3 130 9 510 10 440 11 304 10 854 - - 22 164 12 440 14 434

B LIM351 Blouberg 5 000 6 000 6 000 - - - 2 534 2 534 2 534 1 089 - - 8 623 8 534 8 534
B LIM353 Molemole - - - - - - 2 403 2 403 2 403 1 101 - - 3 504 2 403 2 403
B LIM354 Polokwane 8 000 8 000 8 000 6 500 7 300 7 300 3 048 2 500 2 500 5 742 - - 23 290 17 800 17 800
B LIM355 Lepele-Nkumpi - - - - - - 2 145 2 145 2 145 1 758 - - 3 903 2 145 2 145
C DC35 Capricorn District Municipality - - - - - - 1 000 1 000 1 000 3 642 - - 4 642 1 000 1 000
Total: Capricorn Municipalities 13 000 14 000 14 000 6 500 7 300 7 300 11 130 10 582 10 582 13 332 - - 43 962 31 882 31 882

B LIM361 Thabazimbi - - - - - - 2 215 2 680 3 112 1 343 - - 3 558 2 680 3 112

B LIM362 Lephalale - - - - - - 1 700 1 700 1 700 2 014 - - 3 714 1 700 1 700
B LIM366 Bela-Bela - - - - - - 1 700 1 700 1 700 1 154 - - 2 854 1 700 1 700
B LIM367 Mogalakwena - - - - - - 1 770 1 770 1 770 1 537 - - 3 307 1 770 1 770
B LIM368 Modimolle-Mookgophong - - - - - - 4 115 3 000 2 500 1 021 - - 5 136 3 000 2 500
C DC36 Waterberg District Municipality - - - - - - 1 000 1 000 1 000 - - - 1 000 1 000 1 000
Total: Waterberg Municipalities - - - - - - 12 500 11 850 11 782 7 069 - - 19 569 11 850 11 782
241

B LIM471 Ephraim Mogale - - - - - - 2 215 2 680 3 112 1 594 - - 3 809 2 680 3 112
B LIM472 Elias Motsoaledi 5 000 5 000 5 000 - - - 1 770 2 235 2 667 1 002 - - 7 772 7 235 7 667
B LIM473 Makhuduthamaga - - - - - - 1 770 1 770 1 770 1 004 - - 2 774 1 770 1 770
B LIM476 Fetakgomo Tubatse - - - - - - 4 115 3 000 2 500 2 035 - - 6 150 3 000 2 500
C DC47 Sekhukhune District Municipality - - - - - - 1 320 1 785 2 217 1 746 - - 3 066 1 785 2 217
Total: Sekhukhune Municipalities 5 000 5 000 5 000 - - - 11 190 11 470 12 266 7 381 - - 23 571 16 470 17 266

Total: Limpopo Municipalities 18 000 19 000 19 000 8 300 9 300 10 430 56 745 57 687 60 143 52 587 - - 135 632 85 987 89 573

MPUMALANGA

B MP301 Chief Albert Luthuli - - - - - - 1 700 1 700 2 132 1 901 - - 3 601 1 700 2 132
B MP302 Msukaligwa - - - - - - 2 215 2 680 3 112 2 006 - - 4 221 2 680 3 112
B MP303 Mkhondo - - - - - - 2 215 2 680 3 112 2 281 - - 4 496 2 680 3 112
B MP304 Dr Pixley ka Isaka Seme - - - - - - 1 770 2 235 2 667 1 259 - - 3 029 2 235 2 667
B MP305 Lekwa 6 000 6 000 6 000 - - - 1 770 2 235 2 667 1 000 - - 8 770 8 235 8 667
B MP306 Dipaleseng - - - - - - 1 970 2 435 2 867 1 537 - - 3 507 2 435 2 867
B MP307 Govan Mbeki 6 000 6 000 6 000 22 500 23 935 24 720 1 770 1 770 2 202 1 937 - - 32 207 31 705 32 922
C DC30 Gert Sibande District Municipality - - - 5 553 6 500 6 000 1 000 1 000 1 000 3 872 - - 10 425 7 500 7 000
Total: Gert Sibande Municipalities 12 000 12 000 12 000 28 053 30 435 30 720 14 410 16 735 19 759 15 793 - - 70 256 59 170 62 479

B MP311 Victor Khanye - - - - - - 1 770 1 770 1 770 1 994 - - 3 764 1 770 1 770
B MP312 Emalahleni - - - - - - 2 215 2 680 3 112 4 231 - - 6 446 2 680 3 112
B MP313 Steve Tshwete - - - - - - 1 700 1 700 1 700 4 151 - - 5 851 1 700 1 700
B MP314 Emakhazeni - - - - - - 1 970 2 435 2 867 1 184 - - 3 154 2 435 2 867
B MP315 Thembisile Hani - - - - - - 1 770 1 770 1 770 1 984 - - 3 754 1 770 1 770
B MP316 Dr JS Moroka - - - - - - 1 770 2 235 2 667 2 955 - - 4 725 2 235 2 667
C DC31 Nkangala District Municipality - - - - - - 1 000 1 000 1 000 3 626 - - 4 626 1 000 1 000
Total: Nkangala Municipalities - - - - - - 12 195 13 590 14 886 20 125 - - 32 320 13 590 14 886

B MP321 Thaba Chweu - - - - - - 2 215 2 680 3 112 1 931 - - 4 146 2 680 3 112
B MP324 Nkomazi - - - - - - 1 770 1 770 1 770 6 708 - - 8 478 1 770 1 770
B MP325 Bushbuckridge 6 000 5 000 5 000 - - - 2 215 2 215 2 647 4 447 - - 12 662 7 215 7 647
B MP326 City of Mbombela - - - - - - 3 470 2 500 2 500 8 240 - - 11 710 2 500 2 500
C DC32 Ehlanzeni District Municipality - - - - - - 1 250 1 250 1 000 3 067 - - 4 317 1 250 1 000
Total: Ehlanzeni Municipalities 6 000 5 000 5 000 - - - 10 920 10 415 11 029 24 393 - - 41 313 15 415 16 029

Total: Mpumalanga Municipalities 18 000 17 000 17 000 28 053 30 435 30 720 37 525 40 740 45 674 60 311 - - 143 889 88 175 93 394
 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS

Energy Efficiency and Demand Side Expanded Public Works Programme Integrated
Infrastructure Skills Development Grant Local Government Financial Management Grant SUB-TOTAL: CURRENT1
Management Grant Grant for Municipalities
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

NORTHERN CAPE

B NC061 Richtersveld - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867

B NC062 Nama Khoi - - - - - - 2 215 2 680 3 112 1 000 - - 3 215 2 680 3 112
B NC064 Kamiesberg - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B NC065 Hantam - - - - - - 1 970 1 970 1 970 1 345 - - 3 315 1 970 1 970
B NC066 Karoo Hoogland 3 000 5 000 5 000 - - - 1 970 2 435 2 867 - - - 4 970 7 435 7 867
B NC067 Khâi-Ma - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
C DC6 Namakwa District Municipality - - - - - - 1 320 1 785 2 217 - - - 1 320 1 785 2 217
Total: Namakwa Municipalities 3 000 5 000 5 000 - - - 13 830 16 620 19 212 5 345 - - 22 175 21 620 24 212

B NC071 Ubuntu - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867

B NC072 Umsobomvu - - - - - - 1 970 1 970 1 970 1 000 - - 2 970 1 970 1 970
B NC073 Emthanjeni - - - - - - 1 700 1 700 1 700 1 000 - - 2 700 1 700 1 700
B NC074 Kareeberg - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
B NC075 Renosterberg - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B NC076 Thembelihle - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B NC077 Siyathemba - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B NC078 Siyancuma - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
C DC7 Pixley Ka Seme District Municipality - - - - - - 1 320 1 785 1 510 1 000 - - 2 320 1 785 1 510
Total: Pixley Ka Seme Municipalities - - - - - - 18 590 21 845 24 162 9 000 - - 27 590 21 845 24 162

B NC082 !Kai !Garib - - - - - - 2 415 2 880 3 312 1 547 - - 3 962 2 880 3 312
B NC084 !Kheis - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B NC085 Tsantsabane - - - - - - 2 415 2 880 3 312 1 000 - - 3 415 2 880 3 312
B NC086 Kgatelopele - - - - - - 2 415 2 880 2 880 - - - 2 415 2 880 2 880
B NC087 Dawid Kruiper 3 000 4 000 4 000 - - - 4 115 3 000 3 000 - - - 7 115 7 000 7 000
C DC8 Z.F. Mgcawu District Municipality - - - - - - 1 000 1 000 1 000 - - - 1 000 1 000 1 000
Total: Z.F. Mgcawu Municipalities 3 000 4 000 4 000 - - - 14 775 15 520 16 816 3 547 - - 21 322 19 520 20 816

B NC091 Sol Plaatjie 7 000 5 000 5 000 3 800 4 000 4 000 1 700 1 700 1 700 3 137 - - 15 637 10 700 10 700
B NC092 Dikgatlong - - - - - - 2 415 2 880 3 312 1 084 - - 3 499 2 880 3 312
B NC093 Magareng - - - - - - 1 970 2 435 2 867 1 000 - - 2 970 2 435 2 867
242

B NC094 Phokwane - - - - - - 2 215 2 680 3 112 - - - 2 215 2 680 3 112

C DC9 Frances Baard District Municipality - - - - - - 1 000 1 000 1 000 1 113 - - 2 113 1 000 1 000
Total: Frances Baard Municipalities 7 000 5 000 5 000 3 800 4 000 4 000 9 300 10 695 11 991 6 334 - - 26 434 19 695 20 991

B NC451 Joe Morolong - - - - - - 2 215 2 680 3 112 1 447 - - 3 662 2 680 3 112
B NC452 Ga-Segonyana - - - - - - 2 215 2 680 3 112 1 000 - - 3 215 2 680 3 112
B NC453 Gamagara - - - - - - 1 770 1 770 1 770 1 235 - - 3 005 1 770 1 770
C DC45 John Taolo Gaetsewe District Municipality - - - 3 200 4 000 4 500 1 000 1 465 1 000 1 000 - - 5 200 5 465 5 500
Total: John Taolo Gaetsewe Municipalities - - - 3 200 4 000 4 500 7 200 8 595 8 994 4 682 - - 15 082 12 595 13 494

Total: Northern Cape Municipalities 13 000 14 000 14 000 7 000 8 000 8 500 63 695 73 275 81 175 28 908 - - 112 603 95 275 103 675

NORTH WEST

B NW371 Moretele - - - - - - 2 215 2 680 3 112 1 772 - - 3 987 2 680 3 112

B NW372 Madibeng - - - - - - 1 770 2 235 2 667 1 174 - - 2 944 2 235 2 667
B NW373 Rustenburg - - - - - - 1 700 1 700 1 700 3 545 - - 5 245 1 700 1 700
B NW374 Kgetlengrivier - - - - - - 2 415 2 880 3 312 1 159 - - 3 574 2 880 3 312
B NW375 Moses Kotane - - - - - - 1 700 1 700 1 700 1 000 - - 2 700 1 700 1 700
C DC37 Bojanala Platinum District Municipality - - - - - - 1 000 1 000 1 432 1 558 - - 2 558 1 000 1 432
Total: Bojanala Platinum Municipalities - - - - - - 10 800 12 195 13 923 10 208 - - 21 008 12 195 13 923

B NW381 Ratlou - - - - - - 1 940 1 940 1 940 1 448 - - 3 388 1 940 1 940

B NW382 Tswaing - - - - - - 2 415 2 880 3 312 1 632 - - 4 047 2 880 3 312
B NW383 Mafikeng 6 024 4 000 4 000 - - - 2 215 2 680 3 112 5 063 - - 13 302 6 680 7 112
B NW384 Ditsobotla - - - - - - 2 215 2 680 3 112 1 918 - - 4 133 2 680 3 112
B NW385 Ramotshere Moiloa - - - - - - 2 215 2 215 2 215 1 094 - - 3 309 2 215 2 215
C DC38 Ngaka Modiri Molema District Municipality - - - - - - 1 865 2 330 2 762 1 277 - - 3 142 2 330 2 762
Total: Ngaka Modiri Molema Municipalities 6 024 4 000 4 000 - - - 12 865 14 725 16 453 12 432 - - 31 321 18 725 20 453

B NW392 Naledi - - - - - - 1 770 2 235 2 667 1 652 - - 3 422 2 235 2 667

B NW393 Mamusa 4 000 4 000 4 000 - - - 2 415 2 880 3 312 1 098 - - 7 513 6 880 7 312
B NW394 Greater Taung - - - - - - 2 415 2 880 3 312 1 077 - - 3 492 2 880 3 312
B NW396 Lekwa-Teemane 4 000 4 000 4 000 - - - 2 215 2 680 3 112 - - - 6 215 6 680 7 112
B NW397 Kagisano-Molopo - - - - - - 3 146 3 080 2 954 2 639 - - 5 785 3 080 2 954
C DC39 Dr Ruth Segomotsi Mompati District Municipality - - - - - - 1 320 1 785 2 217 1 278 - - 2 598 1 785 2 217
Total: Dr Ruth Segomotsi Mompati Municipalities 8 000 8 000 8 000 - - - 13 281 15 540 17 574 7 744 - - 29 025 23 540 25 574

B NW403 City of Matlosana 7 000 2 000 2 000 - - - 2 215 2 680 3 112 2 037 - - 11 252 4 680 5 112
B NW404 Maquassi Hills - - - - - - 2 215 2 680 3 112 1 017 - - 3 232 2 680 3 112
B NW405 JB Marks - - - - - - 4 115 3 000 3 000 1 947 - - 6 062 3 000 3 000
C DC40 Dr Kenneth Kaunda District Municipality - - - - - - 1 000 1 000 1 000 1 151 - - 2 151 1 000 1 000
Total: Dr Kenneth Kaunda Municipalities 7 000 2 000 2 000 - - - 9 545 9 360 10 224 6 152 - - 22 697 11 360 12 224

Total: North West Municipalities 21 024 14 000 14 000 - - - 46 491 51 820 58 174 36 536 - - 104 051 65 820 72 174
 ANNEXURE W4

SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 5, PART B AND SCHEDULE 7, PART B): CURRENT GRANTS

Energy Efficiency and Demand Side Expanded Public Works Programme Integrated
Infrastructure Skills Development Grant Local Government Financial Management Grant SUB-TOTAL: CURRENT1
Management Grant Grant for Municipalities
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

WESTERN CAPE

A CPT City of Cape Town 10 000 10 000 15 000 13 605 15 935 16 000 1 000 1 000 1 000 24 266 - - 48 871 26 935 32 000

B WC011 Matzikama - - - - - - 1 550 1 550 1 550 1 630 - - 3 180 1 550 1 550

B WC012 Cederberg - - - - - - 1 620 2 085 2 085 1 819 - - 3 439 2 085 2 085
B WC013 Bergrivier - - - - - - 1 550 1 550 1 550 1 413 - - 2 963 1 550 1 550
B WC014 Saldanha Bay - - - - - - 1 550 1 550 1 550 2 055 - - 3 605 1 550 1 550
B WC015 Swartland 3 000 5 000 5 000 - - - 1 550 1 550 1 550 1 572 - - 6 122 6 550 6 550
C DC1 West Coast District Municipality - - - - - - 1 000 1 000 1 000 1 047 - - 2 047 1 000 1 000
Total: West Coast Municipalities 3 000 5 000 5 000 - - - 8 820 9 285 9 285 9 536 - - 21 356 14 285 14 285

B WC022 Witzenberg - - - - - - 1 550 1 550 1 550 1 780 - - 3 330 1 550 1 550

B WC023 Drakenstein - - - - - - 1 550 1 550 1 550 4 433 - - 5 983 1 550 1 550
B WC024 Stellenbosch - - - - - - 1 550 1 550 1 550 5 722 - - 7 272 1 550 1 550
B WC025 Breede Valley - - - - - - 1 550 1 550 1 550 3 066 - - 4 616 1 550 1 550
B WC026 Langeberg - - - - - - 1 550 1 550 1 550 1 740 - - 3 290 1 550 1 550
C DC2 Cape Winelands District Municipality - - - - - - 1 000 1 000 1 000 1 391 - - 2 391 1 000 1 000
Total: Cape Winelands Municipalities - - - - - - 8 750 8 750 8 750 18 132 - - 26 882 8 750 8 750

B WC031 Theewaterskloof - - - - - - 1 700 1 700 1 700 1 451 - - 3 151 1 700 1 700

B WC032 Overstrand - - - - - - 1 550 1 550 1 550 1 926 - - 3 476 1 550 1 550
B WC033 Cape Agulhas 5 000 5 000 5 000 - - - 1 550 1 550 1 550 1 141 - - 7 691 6 550 6 550
B WC034 Swellendam - - - - - - 1 770 1 770 1 770 1 266 - - 3 036 1 770 1 770
C DC3 Overberg District Municipality - - - - - - 1 000 1 000 1 000 1 125 - - 2 125 1 000 1 000
Total: Overberg Municipalities 5 000 5 000 5 000 - - - 7 570 7 570 7 570 6 909 - - 19 479 12 570 12 570

B WC041 Kannaland - - - - - - 2 215 2 215 2 647 1 055 - - 3 270 2 215 2 647

B WC042 Hessequa - - - - - - 1 550 1 550 1 550 1 026 - - 2 576 1 550 1 550
B WC043 Mossel Bay - - - - - - 1 550 1 550 1 550 2 337 - - 3 887 1 550 1 550
243

B WC044 George 7 000 5 000 5 000 6 000 6 500 7 000 1 550 1 550 1 550 5 466 - - 20 016 13 050 13 550
B WC045 Oudtshoorn - - - - - - 1 620 2 085 2 517 2 822 - - 4 442 2 085 2 517
B WC047 Bitou - - - - - - 1 550 1 550 1 550 2 615 - - 4 165 1 550 1 550
B WC048 Knysna 6 000 6 000 5 000 - - - 1 550 1 550 1 550 1 187 - - 8 737 7 550 6 550
C DC4 Eden District Municipality - - - - - - 1 000 1 000 1 000 1 021 - - 2 021 1 000 1 000
Total: Eden Municipalities 13 000 11 000 10 000 6 000 6 500 7 000 12 585 13 050 13 914 17 529 - - 49 114 30 550 30 914

B WC051 Laingsburg - - - - - - 1 800 1 800 1 800 1 000 - - 2 800 1 800 1 800

B WC052 Prince Albert - - - - - - 1 700 1 700 1 700 1 042 - - 2 742 1 700 1 700
B WC053 Beaufort West - - - - - - 1 700 1 700 1 700 1 285 - - 2 985 1 700 1 700
C DC5 Central Karoo District Municipality - - - - - - 1 000 1 000 1 000 1 013 - - 2 013 1 000 1 000
Total: Central Karoo Municipalities - - - - - - 6 200 6 200 6 200 4 340 - - 10 540 6 200 6 200

Total: Western Cape Municipalities 31 000 31 000 35 000 19 605 22 435 23 000 44 925 45 855 46 719 80 712 - - 176 242 99 290 104 719

Unallocated - - - - - - - - - - 741 917 782 918 489 280 1 226 505 1 810 075

National Total 215 024 227 065 239 554 141 492 149 416 157 930 504 566 532 822 561 713 692 878 741 917 782 918 2 043 240 2 135 808 2 769 272
1. Includes unallocated amounts for the Municipal Disaster Relief Grant (MDRG), Municipal Emergency Housing Grant (MEHG) and the Municipal Restructuring Grant (MRG). The MDRG is allocated R349.3 million in 2018/19; R335.5 million in 2019/20 and R353.9 million in 2020/21. The MEHG is allocated R140 million in
2018/19; R149.1 million in 2019/20 and R158.8 million in 2020/21. The MRG is allocated R514.4 million in 2020/21.
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

244

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B)

(National and Municipal Financial Years)

 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 1 OF 2

Integrated National Electrification Programme

Municipal Infrastructure Grant Regional Bulk Infrastructure Grant Water Services Infrastructure Grant Rural Roads Asset Management Systems Grant Municipal Disaster Recovery Grant
Grant (Municipal)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

A BUF Buffalo City - - - - - - - - - 6 200 22 400 32 000 - - - - - -

A NMA Nelson Mandela Bay - - - - - - - - - 25 648 32 000 32 000 - - - - - -

B EC101 Dr Beyers Naude 20 267 20 608 21 550 - - - - - - 4 500 6 400 6 400 - - - - - -

B EC102 Blue Crane Route 14 117 14 320 14 883 - - - 50 000 - - 6 000 5 120 3 200 - - - - - -
B EC104 Makana 23 976 24 399 25 570 - - - 35 000 - - 8 000 6 400 3 200 - - - - - -
B EC105 Ndlambe 26 809 27 295 28 641 - - - - - - - 6 400 5 000 - - - - - -
B EC106 Sundays River Valley 25 162 25 612 26 856 - - - - - - 16 731 12 800 16 000 - - - - - -
B EC108 Kouga 31 186 31 771 33 386 - - - - - - 10 200 6 400 6 400 - - - - - -
B EC109 Kou-Kamma 15 170 15 396 16 024 - - - - - - - 6 400 3 200 - - - - - -
C DC10 Sarah Baartman District Municipality - - - - - - - - - - - - 2 240 2 372 2 509 - - -
Total: Sarah Baartman Municipalities 156 687 159 401 166 910 - - - 85 000 - - 45 431 49 920 43 400 2 240 2 372 2 509 - - -

B EC121 Mbhashe 70 192 59 992 63 311 - - - - - - 8 946 16 000 12 800 - - - - - -

B EC122 Mnquma 61 352 62 609 66 086 - - - - - - 11 140 9 600 12 800 - - - - - -
B EC123 Great Kei 11 116 11 253 11 630 - - - - - - 6 000 6 400 6 400 - - - - - -
B EC124 Amahlathi 27 634 28 139 29 536 - - - - - - 5 000 9 600 6 400 - - - - - -
B EC126 Ngqushwa 22 122 22 504 23 560 - - - - - - 5 332 - 6 400 - - - - - -
B EC129 Raymond Mhlaba 38 486 39 233 41 299 - - - - - - 1 400 12 800 9 600 - - - - - -
C DC12 Amathole District Municipality 419 232 428 472 454 030 - - - 100 000 102 000 107 610 - - - 2 939 3 113 3 293 - - -
Total: Amathole Municipalities 650 134 652 202 689 452 - - - 100 000 102 000 107 610 37 818 54 400 54 400 2 939 3 113 3 293 - - -

B EC131 Inxuba Yethemba 15 862 16 104 16 774 - - - - - - 7 000 14 300 9 600 - - - - - -

B EC135 Intsika Yethu 42 190 43 020 45 315 - - - - - - 4 792 4 451 9 600 - - - - - -
B EC136 Emalahleni 43 902 33 524 35 246 - - - - - - - 4 400 3 200 - - - - - -
B EC137 Engcobo 37 794 38 525 40 549 - - - - - - - 12 800 21 000 - - - - - -
B EC138 Sakhisizwe 17 912 18 200 18 996 - - - - - - - 3 200 6 400 - - - - - -
B EC139 Enoch Mgijima 53 040 54 112 57 076 - - - - - - 6 162 7 600 19 200 - - - - - -
245

C DC13 Chris Hani District Municipality 280 880 287 034 304 056 162 000 25 000 26 375 50 000 108 000 113 940 - - - 3 229 3 420 3 618 - - -
Total: Chris Hani Municipalities 491 580 490 519 518 012 162 000 25 000 26 375 50 000 108 000 113 940 17 954 46 751 69 000 3 229 3 420 3 618 - - -

B EC141 Elundini 38 207 38 948 40 997 - - - - - - 25 636 19 200 19 154 - - - - - -

B EC142 Senqu 37 755 38 485 40 506 - - - - - - 5 983 3 200 5 000 - - - - - -
B EC145 Walter Sisulu 18 570 18 872 19 710 - - - - - - 5 231 5 120 6 400 - - - - - -
C DC14 Joe Gqabi District Municipality 153 554 156 868 166 034 - 40 000 42 200 59 000 84 000 88 620 - - - 2 185 2 314 2 448 - - -
Total: Joe Gqabi Municipalities 248 086 253 173 267 247 - 40 000 42 200 59 000 84 000 88 620 36 850 27 520 30 554 2 185 2 314 2 448 - - -

B EC153 Ngquza Hill 61 976 54 506 57 494 - - - - - - 12 350 8 200 9 600 - - - - - -

B EC154 Port St Johns 33 705 34 345 36 116 - - - - - - 25 940 12 800 12 800 - - - - - -
B EC155 Nyandeni 59 625 60 844 64 214 - - - - - - 18 189 16 000 6 400 - - - - - -
B EC156 Mhlontlo 43 394 44 250 46 619 - - - - - - - 12 800 6 400 - - - - - -
B EC157 King Sabata Dalindyebo 84 506 86 279 91 185 - - - - - - 19 800 22 400 12 800 - - - - - -
C DC15 O.R. Tambo District Municipality 619 684 633 395 671 322 309 707 286 727 308 437 90 000 100 000 105 500 - - - 2 937 3 111 3 291 - - -
Total: O.R. Tambo Municipalities 902 890 913 619 966 950 309 707 286 727 308 437 90 000 100 000 105 500 76 279 72 200 48 000 2 937 3 111 3 291 - - -

B EC441 Matatiele 59 690 49 255 51 926 - - - - - - 41 160 57 600 57 600 - - - - - -

B EC442 Umzimvubu 45 507 46 411 48 910 - - - - - - 31 200 25 600 19 200 - - - - - -
B EC443 Mbizana 47 416 48 362 50 979 - - - - - - 25 030 21 700 19 200 - - - - - -
B EC444 Ntabankulu 26 681 27 164 28 502 - - - - - - 51 732 32 000 38 400 - - - - - -
C DC44 Alfred Nzo District Municipality 367 914 376 009 398 401 - - - 110 000 90 000 94 950 - - - 2 290 2 425 2 566 - - -
Total: Alfred Nzo Municipalities 547 208 547 201 578 718 - - - 110 000 90 000 94 950 149 122 136 900 134 400 2 290 2 425 2 566 - - -

Total: Eastern Cape Municipalities 2 996 585 3 016 115 3 187 289 471 707 351 727 377 012 494 000 484 000 510 620 395 302 442 091 443 754 15 820 16 755 17 725 - - -
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 1 OF 2

Integrated National Electrification Programme

Municipal Infrastructure Grant Regional Bulk Infrastructure Grant Water Services Infrastructure Grant Rural Roads Asset Management Systems Grant Municipal Disaster Recovery Grant
Grant (Municipal)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

FREE STATE

A MAN Mangaung - - - - - - - - - 15 450 25 600 32 000 - - - - - -

B FS161 Letsemeng 29 949 17 149 17 882 - - - 20 000 24 000 24 201 - 3 200 4 928 - - - - - -
B FS162 Kopanong 20 201 20 540 21 478 - - - 20 000 28 000 43 300 2 000 3 200 7 382 - - - - - -
B FS163 Mohokare 17 708 17 991 18 776 38 000 20 000 10 000 48 500 30 000 28 025 500 3 200 4 914 - - - - - -
C DC16 Xhariep District Municipality - - - - - - - - - - - - 2 149 2 277 2 408 - - -
Total: Xhariep Municipalities 67 858 55 680 58 136 38 000 20 000 10 000 88 500 82 000 95 526 2 500 9 600 17 224 2 149 2 277 2 408 - - -

B FS181 Masilonyana 23 019 23 421 24 533 - - - 10 000 - - 1 000 3 200 4 914 - - - - - -

B FS182 Tokologo 16 301 16 553 17 251 - - - 10 000 - - 3 100 5 760 7 196 - - - - - -
B FS183 Tswelopele 23 837 16 488 17 181 - - - - - - - 3 200 4 914 - - - - - -
B FS184 Matjhabeng 116 581 119 070 125 955 - - - 36 825 - - 10 000 7 680 6 400 - - - - - -
B FS185 Nala 29 107 29 645 31 133 - - - - - - 3 300 5 120 4 480 - - - - - -
C DC18 Lejweleputswa District Municipality - - - - - - - - - - - - 2 281 2 415 2 556 - - -
Total: Lejweleputswa Municipalities 208 845 205 177 216 053 - - - 56 825 - - 17 400 24 960 27 904 2 281 2 415 2 556 - - -

B FS191 Setsoto 57 782 47 203 49 750 30 000 53 121 92 108 20 000 25 000 26 375 682 3 814 3 200 - - - - - -
B FS192 Dihlabeng 37 914 38 648 40 679 - - - 20 000 14 323 15 110 10 000 4 400 6 400 - - - - - -
B FS193 Nketoana 24 927 25 372 26 602 - - - - - - - 3 200 4 914 - - - - - -
B FS194 Maluti-a-Phofung 159 321 162 763 172 285 - - - 35 000 50 000 52 750 29 000 19 200 38 400 - - - - - -
B FS195 Phumelela 20 698 21 048 22 017 - - - 15 000 20 000 21 100 - 5 120 6 400 - - - - - -
B FS196 Mantsopa 32 759 19 971 20 874 17 500 30 000 - 10 000 - - - 3 200 3 200 - - - - - -
C DC19 Thabo Mofutsanyana District Municipality - - - - - - - - - - - - 2 405 2 547 2 695 - - -
Total: Thabo Mofutsanyana Municipalities 333 401 315 005 332 207 47 500 83 121 92 108 100 000 109 323 115 335 39 682 38 934 62 514 2 405 2 547 2 695 - - -

B FS201 Moqhaka 39 410 40 178 42 301 - - - 10 000 15 000 15 825 - 3 840 6 400 - - - - - -
B FS203 Ngwathe 41 164 41 971 44 202 38 000 40 000 47 500 20 000 25 000 25 000 3 000 3 840 6 400 - - - - - -
B FS204 Metsimaholo 43 786 44 652 47 045 - - - 15 000 - - 11 650 6 400 32 000 - - - - - -
246

B FS205 Mafube 22 064 22 444 23 497 - - - 15 000 10 000 - - 2 560 6 400 - - - - - -

C DC20 Fezile Dabi District Municipality - - - - - - - - - - - - 2 188 2 317 2 451 - - -
Total: Fezile Dabi Municipalities 146 424 149 245 157 045 38 000 40 000 47 500 60 000 50 000 40 825 14 650 16 640 51 200 2 188 2 317 2 451 - - -

Total: Free State Municipalities 756 528 725 107 763 441 123 500 143 121 149 608 305 325 241 323 251 686 89 682 115 734 190 842 9 023 9 556 10 110 - - -

GAUTENG

A EKU City of Ekurhuleni - - - - - - - - - 45 000 38 000 32 000 - - - - - -

A JHB City of Johannesburg - - - - - - - - - 31 298 38 000 44 800 - - - - - -
A TSH City of Tshwane - - - - - - - - - 40 000 38 000 32 000 - - - - - -

B GT421 Emfuleni 165 389 168 967 178 863 - - - 20 000 15 000 15 825 - 12 000 12 612 - - - - - -
B GT422 Midvaal 31 201 31 786 33 402 - - - 15 000 15 000 15 825 8 000 20 082 25 600 - - - - - -
B GT423 Lesedi 25 937 26 404 27 695 - - - 25 000 15 000 15 825 8 434 15 000 12 800 - - - - - -
C DC42 Sedibeng District Municipality - - - - - - - - - - - - 2 436 2 580 2 729 - - -
Total: Sedibeng Municipalities 222 527 227 157 239 960 - - - 60 000 45 000 47 475 16 434 47 082 51 012 2 436 2 580 2 729 - - -

B GT481 Mogale City 118 300 117 086 123 851 - - - 25 000 40 000 42 200 8 000 9 600 12 800 - - - - - -
B GT484 Merafong City 64 938 66 275 69 974 - - - 55 000 35 000 36 925 16 000 19 200 12 800 - - - 21 317 - -
B GT485 Rand West City 89 275 91 155 96 355 - - - 55 000 64 891 68 460 10 000 25 600 19 200 - - - - - -
C DC48 West Rand District Municipality - - - - - - - - - - - - 2 594 2 748 2 907 - - -
Total: West Rand Municipalities 272 513 274 516 290 180 - - - 135 000 139 891 147 585 34 000 54 400 44 800 2 594 2 748 2 907 21 317 - -

Total: Gauteng Municipalities 495 040 501 673 530 140 - - - 195 000 184 891 195 060 166 732 215 482 204 612 5 030 5 328 5 636 21 317 - -
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 1 OF 2

Integrated National Electrification Programme

Municipal Infrastructure Grant Regional Bulk Infrastructure Grant Water Services Infrastructure Grant Rural Roads Asset Management Systems Grant Municipal Disaster Recovery Grant
Grant (Municipal)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

A ETH eThekwini - - - - - - - - - 27 000 45 000 50 000 - - - - - -

B KZN212 uMdoni 30 118 30 678 32 228 - - - - - - 14 000 12 800 12 800 - - - - - -

B KZN213 uMzumbe 33 442 34 077 35 832 - - - - - - 14 880 7 040 9 600 - - - - - -
B KZN214 uMuziwabantu 22 940 23 340 24 447 - - - - - - 10 000 6 400 9 600 - - - - - -
B KZN216 Ray Nkonyeni 60 317 61 551 64 964 - - - - - - 14 000 12 800 19 200 - - - - - -
C DC21 Ugu District Municipality 235 888 241 038 255 284 - - - 55 000 95 000 100 225 - - - 2 663 2 821 2 984 - - -
Total: Ugu Municipalities 382 705 390 684 412 755 - - - 55 000 95 000 100 225 52 880 39 040 51 200 2 663 2 821 2 984 - - -

B KZN221 uMshwathi 27 098 27 591 28 955 - - - - - - 10 000 7 680 9 600 - - - - - -

B KZN222 uMngeni 22 646 23 039 24 128 - - - - - - 8 000 3 500 6 400 - - - - - -
B KZN223 Mpofana 11 878 12 031 12 456 - - - - - - 6 984 3 500 6 400 - - - - - -
B KZN224 iMpendle 11 572 11 719 12 124 - - - - - - - 3 000 6 400 - - - - - -
B KZN225 Msunduzi 193 316 197 516 209 136 - - - 40 000 41 000 43 255 - 6 000 7 680 - - - - - -
B KZN226 Mkhambathini 15 835 16 076 16 745 - - - - - - 8 000 3 500 6 400 - - - - - -
B KZN227 Richmond 18 149 18 442 19 253 - - - - - - 10 500 6 000 6 400 - - - - - -
C DC22 uMgungundlovu District Municipality 99 828 101 944 107 795 - - - 102 700 110 000 116 050 - - - 2 531 2 681 2 836 - - -
Total: uMgungundlovu Municipalities 400 322 408 358 430 592 - - - 142 700 151 000 159 305 43 484 33 180 49 280 2 531 2 681 2 836 - - -

B KZN235 Okhahlamba 27 795 28 304 29 710 - - - - - - 7 984 5 000 6 400 - - - - - -

B KZN237 iNkosi Langalibalele 36 949 37 661 39 632 - - - - - - 14 000 5 000 9 600 - - - - - -
B KZN238 Alfred Duma 69 946 61 683 65 104 - - - - - - 14 598 5 000 9 600 - - - - - -
C DC23 uThukela District Municipality 180 033 183 937 194 737 142 283 125 462 127 399 83 000 108 000 113 940 - - - 2 488 2 635 2 788 - - -
Total: uThukela Municipalities 314 723 311 585 329 183 142 283 125 462 127 399 83 000 108 000 113 940 36 582 15 000 25 600 2 488 2 635 2 788 - - -

B KZN241 eNdumeni 24 487 15 210 15 826 - - - - - - 6 930 6 000 9 600 - - - - - -

B KZN242 Nquthu 30 627 31 198 32 779 - - - - - - 14 035 12 000 19 200 - - - - - -
B KZN244 uMsinga 36 715 37 422 39 379 - - - - - - 17 700 12 000 16 000 - - - - - -
B KZN245 uMvoti 29 261 29 802 31 299 - - - - - - 9 329 9 000 12 103 - - - - - -
C DC24 uMzinyathi District Municipality 184 485 188 488 199 563 40 000 25 200 - 55 000 105 000 110 775 - - - 2 280 2 414 2 554 - - -
Total: uMzinyathi Municipalities 305 575 302 120 318 846 40 000 25 200 - 55 000 105 000 110 775 47 994 39 000 56 903 2 280 2 414 2 554 - - -
247

B KZN252 Newcastle 110 232 112 580 119 073 - - - 40 000 60 000 63 300 15 000 9 600 12 800 - - - - - -
B KZN253 eMadlangeni 9 247 9 342 9 604 - - - - - - 6 000 6 400 9 600 - - - - - -
B KZN254 Dannhauser 21 400 21 766 22 778 - - - - - - - - - - - - - - -
C DC25 Amajuba District Municipality 40 253 41 039 43 214 - - - 84 400 88 000 92 840 - - - 2 205 2 335 2 470 - - -
Total: Amajuba Municipalities 181 132 184 727 194 669 - - - 124 400 148 000 156 140 21 000 16 000 22 400 2 205 2 335 2 470 - - -

B KZN261 eDumbe 17 762 18 047 18 834 - - - - - - 13 300 16 000 20 000 - - - - - -

B KZN262 uPhongolo 27 794 28 302 29 708 - - - - - - 8 500 12 000 12 000 - - - - - -
B KZN263 AbaQulusi 36 434 37 135 39 075 - - - - - - 15 000 9 600 9 000 - - - - - -
B KZN265 Nongoma 31 286 31 873 33 494 - - - - - - 15 000 12 000 19 000 - - - - - -
B KZN266 Ulundi 30 335 30 900 32 463 - - - - - - 18 000 17 000 9 000 - - - - - -
C DC26 Zululand District Municipality 220 762 225 574 238 887 131 498 90 000 100 000 115 000 100 000 105 500 - - - 2 364 2 504 2 649 - - -
Total: Zululand Municipalities 364 373 371 831 392 461 131 498 90 000 100 000 115 000 100 000 105 500 69 800 66 600 69 000 2 364 2 504 2 649 - - -

B KZN271 uMhlabuyalingana 34 265 34 918 36 724 - - - - - - 18 000 15 000 15 000 - - - - - -

B KZN272 Jozini 36 687 37 394 39 349 - - - - - - 15 000 12 331 15 000 - - - - - -
B KZN275 Mtubatuba 31 166 31 750 33 364 - - - - - - 12 600 8 500 9 000 - - - - - -
B KZN276 Big Five Hlabisa 21 000 21 357 22 344 - - - - - - - 6 400 9 000 - - - - - -
C DC27 uMkhanyakude District Municipality 210 378 214 959 227 631 - - - 55 000 80 000 84 400 - - - 2 624 2 780 2 941 - - -
Total: uMkhanyakude Municipalities 333 496 340 378 359 412 - - - 55 000 80 000 84 400 45 600 42 231 48 000 2 624 2 780 2 941 - - -

B KZN281 uMfolozi 25 761 26 224 27 505 - - - - - - 11 000 7 000 7 000 - - - - - -

B KZN282 uMhlathuze 104 604 106 826 112 972 - - - 16 000 40 000 42 200 - 6 000 7 000 - - - - - -
B KZN284 uMlalazi 49 108 40 380 42 515 - - - - - - 7 000 9 500 7 000 - - - - - -
B KZN285 Mthonjaneni 17 749 18 033 18 820 - - - - - - 15 000 16 000 7 000 - - - - - -
B KZN286 Nkandla 31 945 22 834 23 911 - - - - - - 18 000 25 600 20 000 - - - - - -
C DC28 King Cetshwayo District Municipality 167 200 170 818 180 826 120 000 70 000 127 317 73 000 93 000 98 115 - - - 2 528 2 678 2 833 - - -
Total: King Cetshwayo Municipalities 396 367 385 115 406 549 120 000 70 000 127 317 89 000 133 000 140 315 51 000 64 100 48 000 2 528 2 678 2 833 - - -

B KZN291 Mandeni 34 706 35 369 37 202 - - - - - - 6 786 9 000 7 000 - - - - - -

B KZN292 KwaDukuza 50 665 51 684 54 501 - - - - - - 9 920 10 000 9 000 - - - - - -
B KZN293 Ndwedwe 29 267 29 809 31 306 - - - - - - 6 000 6 400 8 000 - - - - - -
B KZN294 Maphumulo 21 942 22 320 23 365 - - - - - - 12 000 6 400 7 000 - - - - - -
C DC29 iLembe District Municipality 188 503 192 596 203 918 75 446 - - 100 500 107 105 112 996 - - - 2 271 2 405 2 544 - - -
Total: iLembe Municipalities 325 083 331 778 350 292 75 446 - - 100 500 107 105 112 996 34 706 31 800 31 000 2 271 2 405 2 544 - - -

B KZN433 Greater Kokstad 17 049 17 318 18 062 - - - - - - 13 914 12 000 12 000 - - - - - -

B KZN434 uBuhlebezwe 26 439 26 917 28 240 - - - - - - 16 000 15 000 12 000 - - - - - -
B KZN435 uMzimkhulu 42 536 43 373 45 689 - - - - - - 15 000 16 000 12 000 - - - - - -
B KZN436 Dr Nkosazana Dlamini Zuma 26 666 27 149 28 486 - - - - - - 13 540 12 000 12 000 - - - - - -
C DC43 Harry Gwala District Municipality 196 587 200 860 212 681 70 000 50 000 67 460 80 400 98 000 103 390 - - - 2 226 2 357 2 494 - - -
Total: Harry Gwala Municipalities 309 277 315 617 333 158 70 000 50 000 67 460 80 400 98 000 103 390 58 454 55 000 48 000 2 226 2 357 2 494 - - -

Total: KwaZulu-Natal Municipalities 3 313 053 3 342 193 3 527 917 579 227 360 662 422 176 900 000 1 125 105 1 186 986 488 500 446 951 499 383 24 180 25 610 27 093 - - -
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 1 OF 2

Integrated National Electrification Programme

Municipal Infrastructure Grant Regional Bulk Infrastructure Grant Water Services Infrastructure Grant Rural Roads Asset Management Systems Grant Municipal Disaster Recovery Grant
Grant (Municipal)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani 59 473 60 688 64 049 - - - - - - 11 200 12 800 12 500 - - - - - -

B LIM332 Greater Letaba 56 460 57 608 60 783 - - - - - - 5 983 10 635 12 500 - - - - - -
B LIM333 Greater Tzaneen 92 315 94 263 99 650 - - - - - - 15 996 16 000 12 500 - - - - - -
B LIM334 Ba-Phalaborwa 31 437 32 026 33 658 - - - - - - - - 9 500 - - - - - -
B LIM335 Maruleng 26 337 26 812 28 129 - - - - - - - 6 400 6 500 - - - - - -
C DC33 Mopani District Municipality 444 492 454 295 481 413 - - - 107 000 110 000 116 050 - - - 2 207 2 337 2 472 - - -
Total: Mopani Municipalities 710 514 725 692 767 682 - - - 107 000 110 000 116 050 33 179 45 835 53 500 2 207 2 337 2 472 - - -

B LIM341 Musina 28 492 29 016 30 465 - - - - - - 15 000 22 400 19 200 - - - - - -

B LIM343 Thulamela 114 323 99 383 105 079 - - - - - - 35 000 25 600 25 600 - - - - - -
B LIM344 Makhado 87 732 89 577 94 682 - - - - - - 16 913 16 640 16 640 - - - - - -
B LIM345 Collins Chabane 80 350 82 031 86 680 - - - - - - 20 000 16 000 19 842 - - - - - -
C DC34 Vhembe District Municipality 503 646 514 768 545 536 - - - 45 000 50 000 52 750 - - - 2 249 2 382 2 520 - - -
Total: Vhembe Municipalities 814 543 814 775 862 442 - - - 45 000 50 000 52 750 86 913 80 640 81 282 2 249 2 382 2 520 - - -

B LIM351 Blouberg 43 491 44 350 46 725 - - - - - - 4 295 19 200 19 200 - - - - - -

B LIM353 Molemole 34 493 35 151 36 970 - - - - - - - - - - - - - - -
B LIM354 Polokwane 330 877 338 146 358 253 272 578 630 998 644 491 70 000 110 000 116 050 38 957 28 800 25 600 - - - - - -
B LIM355 Lepele-Nkumpi 53 003 54 074 57 035 - - - - - - 9 998 9 600 9 600 - - - - - -
C DC35 Capricorn District Municipality 225 862 230 788 244 416 - - - 78 000 105 000 110 775 - - - 2 422 2 565 2 714 - - -
Total: Capricorn Municipalities 687 726 702 509 743 399 272 578 630 998 644 491 148 000 215 000 226 825 53 250 57 600 54 400 2 422 2 565 2 714 - - -

B LIM361 Thabazimbi 32 612 33 228 34 932 - - - - - - 10 000 12 800 9 600 - - - - - -

B LIM362 Lephalale 42 800 43 643 45 975 - - - - 40 000 42 200 10 013 9 600 12 800 - - - - - -
B LIM366 Bela-Bela 37 530 25 911 27 173 - - - 40 000 45 000 47 475 15 580 12 800 12 800 - - - - - -
B LIM367 Mogalakwena 153 114 156 417 165 556 - - - 40 000 70 000 73 850 12 302 19 200 19 200 - - - - - -
B LIM368 Modimolle-Mookgophong 37 826 38 558 40 584 - - - 50 000 90 000 94 950 10 000 - - - - - - - -
C DC36 Waterberg District Municipality - - - - - - - - - - - - 2 133 2 260 2 390 - - -
Total: Waterberg Municipalities 303 882 297 757 314 220 - - - 130 000 245 000 258 475 57 895 54 400 54 400 2 133 2 260 2 390 - - -
248

B LIM471 Ephraim Mogale 32 823 33 443 35 160 - - - - - - - - - - - - - - -

B LIM472 Elias Motsoaledi 53 832 54 921 57 934 - - - - - - 9 998 12 800 12 800 - - - - - -
B LIM473 Makhuduthamaga 66 000 62 122 65 569 - - - - - - 12 012 6 400 6 400 - - - - - -
B LIM476 Fetakgomo Tubatse 82 638 84 369 89 160 - - - - - - 15 000 9 600 19 200 - - - - - -
C DC47 Sekhukhune District Municipality 464 936 475 195 503 574 - - - 65 000 70 000 73 850 - - - 2 291 2 426 2 567 - - -
Total: Sekhukhune Municipalities 700 229 710 050 751 397 - - - 65 000 70 000 73 850 37 010 28 800 38 400 2 291 2 426 2 567 - - -

Total: Limpopo Municipalities 3 216 894 3 250 783 3 439 140 272 578 630 998 644 491 495 000 690 000 727 950 268 247 267 275 281 982 11 302 11 970 12 663 - - -

MPUMALANGA

B MP301 Chief Albert Luthuli 85 281 87 072 92 025 - - - 34 674 25 000 26 375 8 334 19 200 12 800 - - - - - -
B MP302 Msukaligwa 51 669 52 710 55 590 - - - 30 000 20 000 20 000 10 075 22 400 16 000 - - - - - -
B MP303 Mkhondo 76 735 78 336 82 762 - - - 35 000 25 000 26 000 8 500 9 600 19 100 - - - - - -
B MP304 Dr Pixley ka Isaka Seme 25 956 26 424 27 717 - - - 30 000 30 000 30 000 12 375 5 120 9 600 - - - - - -
B MP305 Lekwa 30 034 28 844 30 283 - - - 20 000 30 000 31 650 - 5 120 7 680 - - - - - -
B MP306 Dipaleseng 32 380 18 816 19 650 - - - - - - 13 430 7 680 16 640 - - -
B MP307 Govan Mbeki 56 651 57 803 60 990 - - - 10 000 - - 8 000 16 000 12 800 - - - - - -
C DC30 Gert Sibande District Municipality - - - 159 440 309 631 338 407 - - - - - - 2 314 2 451 2 593 - - -
Total: Gert Sibande Municipalities 358 706 350 005 369 017 159 440 309 631 338 407 159 674 130 000 134 025 60 714 85 120 94 620 2 314 2 451 2 593 - - -
- - -
B MP311 Victor Khanye 24 477 24 912 26 113 - - - - - - - 8 320 6 400 - - - - - -
B MP312 Emalahleni 117 467 119 975 126 915 - - - 25 000 30 000 30 000 42 000 19 502 35 101 - - - - - -
B MP313 Steve Tshwete 48 740 49 716 52 415 - - - 10 000 5 000 - 9 000 14 720 9 600 - - - - - -
B MP314 Emakhazeni 17 946 18 235 19 034 - - - 20 000 20 000 21 100 9 014 5 120 12 800 - - - - - -
B MP315 Thembisile Hani 120 845 123 429 130 577 - - - 50 000 50 000 52 750 - 3 200 3 200 - - - - - -
B MP316 Dr JS Moroka 122 491 125 111 132 361 - - - - 10 000 10 550 1 550 1 920 3 200 - - -
C DC31 Nkangala District Municipality - - - - - - - - - - - - 2 180 2 308 2 442 - - -
Total: Nkangala Municipalities 451 966 461 378 487 415 - - - 105 000 115 000 114 400 61 564 52 782 70 301 2 180 2 308 2 442 - - -
- - -
B MP321 Thaba Chweu 55 457 47 382 49 940 - - - 15 000 15 000 15 000 4 935 12 800 4 480 - - - - - -
B MP324 Nkomazi 220 261 225 063 238 345 - - - 35 000 35 000 40 000 5 000 19 200 6 400 - - - - - -
B MP325 Bushbuckridge 365 988 374 040 396 314 15 000 40 000 20 000 95 000 64 000 67 520 6 000 12 800 9 600 - - - - - -
B MP326 City of Mbombela 336 980 333 753 353 595 - - - - - 18 350 31 045 32 000 32 000 - - - - - -
C DC32 Ehlanzeni District Municipality - - - - - - - - - - - - 2 352 2 491 2 635 - - -
Total: Ehlanzeni Municipalities 978 686 980 238 1 038 194 15 000 40 000 20 000 145 000 114 000 140 870 46 980 76 800 52 480 2 352 2 491 2 635 - - -
- - -
Total: Mpumalanga Municipalities 1 789 358 1 791 621 1 894 626 174 440 349 631 358 407 409 674 359 000 389 295 169 258 214 702 217 401 6 846 7 250 7 670 - - -
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 1 OF 2

Integrated National Electrification Programme

Municipal Infrastructure Grant Regional Bulk Infrastructure Grant Water Services Infrastructure Grant Rural Roads Asset Management Systems Grant Municipal Disaster Recovery Grant
Grant (Municipal)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

NORTHERN CAPE

B NC061 Richtersveld 7 287 7 338 7 479 - - - 5 000 - - 4 000 6 400 1 920 - - - - - -

B NC062 Nama Khoi 14 384 14 593 15 172 - - - 5 000 - - 4 000 3 200 1 920 - - - - - -
B NC064 Kamiesberg 11 867 7 553 7 707 - - - 6 000 - - 700 - 1 920 - - - - - -
B NC065 Hantam 9 656 9 760 10 047 44 247 21 503 7 256 7 500 - - - 3 200 1 920 - - - - - -
B NC066 Karoo Hoogland 8 020 8 087 8 274 27 000 20 000 - 5 000 - - 1 000 - - - - - - - -
B NC067 Khâi-Ma 7 712 7 773 7 940 - - - 5 000 - - 1 650 1 920 1 920 - - - - - -
C DC6 Namakwa District Municipality - - - - - - - - - - - - 2 904 3 076 3 254 - - -
Total: Namakwa Municipalities 58 926 55 104 56 619 71 247 41 503 7 256 33 500 - - 11 350 14 720 9 600 2 904 3 076 3 254 - - -

B NC071 Ubuntu 9 862 9 970 10 270 - - - 4 000 - - 1 000 3 200 1 920 - - - - - -

B NC072 Umsobomvu 11 348 11 490 11 881 - - - 10 000 - - 3 000 3 200 1 920 - - - - - -
B NC073 Emthanjeni 12 001 12 157 12 589 26 689 3 910 - 9 500 - - 4 000 3 200 3 840 - - - - - -
B NC074 Kareeberg 7 972 8 038 8 222 46 824 - - 5 000 - - 1 000 - - - - - - - -
B NC075 Renosterberg 7 426 7 480 7 630 - - - 5 500 - - 2 000 1 920 3 200 - - - - - -
B NC076 Thembelihle 9 352 9 449 9 718 - - - 6 000 - - 18 325 9 600 - - - - - - -
B NC077 Siyathemba 9 724 9 829 10 121 - - - 7 500 - - 1 100 3 200 3 200 - - - - - -
B NC078 Siyancuma 16 355 16 608 17 309 - - - 7 500 - - 5 000 2 560 1 280 - - - - - -
C DC7 Pixley Ka Seme District Municipality - - - - - - - - - - - - 3 009 3 187 3 372 - - -
Total: Pixley Ka Seme Municipalities 84 040 85 021 87 740 73 513 3 910 - 55 000 - - 35 425 26 880 15 360 3 009 3 187 3 372 - - -

B NC082 !Kai !Garib 22 036 22 416 23 467 - - - 5 000 - - - 1 920 1 920 - - - - - -

B NC084 !Kheis 10 567 10 691 11 035 - - - 4 000 - - - 3 200 - - - - - - -
B NC085 Tsantsabane 15 312 15 542 16 178 - - - 4 000 - - 1 000 - - - - - - - -
B NC086 Kgatelopele 7 975 8 042 8 225 - 12 644 40 000 5 000 - - 2 700 1 920 1 280 - - - - - -
B NC087 Dawid Kruiper 24 652 25 090 26 303 - - - 10 000 - - 14 000 5 120 5 760 - - - - - -
C DC8 Z.F. Mgcawu District Municipality - - - - - - - - - - - - 2 866 3 035 3 211 - - -
Total: Z.F. Mgcawu Municipalities 80 542 81 781 85 208 - 12 644 40 000 28 000 - - 17 700 12 160 8 960 2 866 3 035 3 211 - - -

B NC091 Sol Plaatjie 48 816 49 793 52 497 10 551 - - 17 000 - - 29 997 19 200 16 000 - - - - - -
B NC092 Dikgatlong 19 210 19 527 20 404 - - - 7 500 - - 1 000 1 280 1 920 - - - - - -
B NC093 Magareng 11 029 11 163 11 535 - - - 5 000 - - 4 000 12 800 3 200 - - - - - -
249

B NC094 Phokwane 37 092 26 265 27 548 - - - 20 000 35 000 36 925 3 200 2 560 2 560 - - - - - -
C DC9 Frances Baard District Municipality - - - - - - - - - - - - 2 521 2 670 2 825 - - -
Total: Frances Baard Municipalities 116 147 106 748 111 984 10 551 - - 49 500 35 000 36 925 38 197 35 840 23 680 2 521 2 670 2 825 - - -

B NC451 Joe Morolong 58 824 60 025 63 346 - - - 57 500 50 000 105 500 - - 1 920 - - - - - -
B NC452 Ga-Segonyana 62 793 53 302 56 218 - - - 45 000 95 000 39 675 1 000 3 200 2 560 - - - - - -
B NC453 Gamagara 13 713 11 853 12 266 21 587 31 000 51 395 20 000 25 000 26 375 18 035 35 087 35 115 - - - - - -
C DC45 John Taolo Gaetsewe District Municipality - - - - - - - - - - - - 1 983 2 100 2 222 - - -
Total: John Taolo Gaetsewe Municipalities 135 330 125 180 131 830 21 587 31 000 51 395 122 500 170 000 171 550 19 035 38 287 39 595 1 983 2 100 2 222 - - -

Total: Northern Cape Municipalities 474 985 453 834 473 381 176 898 89 057 98 651 288 500 205 000 208 475 121 707 127 887 97 195 13 283 14 068 14 884 - - -

NORTH WEST

B NW371 Moretele 112 384 114 780 121 406 - - - 60 000 80 000 84 400 - - - - - - - - -
B NW372 Madibeng 285 258 281 797 298 503 - - - - - - - 16 000 19 200 - - - - - -
B NW373 Rustenburg 230 086 235 107 248 995 - - - 60 000 88 000 92 840 10 038 19 200 32 000 - - - - - -
B NW374 Kgetlengrivier 25 392 25 847 27 105 - - - 35 000 30 000 31 650 - - - - - - - - -
B NW375 Moses Kotane 146 535 149 692 158 425 - - - 43 000 55 000 58 025 - - - - - - - - -
C DC37 Bojanala Platinum District Municipality - - - - - - - - - - - - 2 364 2 504 2 649 - - -
Total: Bojanala Platinum Municipalities 799 655 807 223 854 434 - - - 198 000 253 000 266 915 10 038 35 200 51 200 2 364 2 504 2 649 - - -

B NW381 Ratlou 28 867 29 400 30 872 - - - - - - - - - - - - - - -

B NW382 Tswaing 39 294 29 274 30 739 - - - - - - - 6 400 8 320 - - - - - -
B NW383 Mafikeng 60 004 61 230 64 624 - - - - - - - - - - - - - - -
B NW384 Ditsobotla 35 851 36 540 38 443 - - - - - - 10 000 6 400 6 400 - - - - - -
B NW385 Ramotshere Moiloa 36 453 37 154 39 095 - - - - - - 9 269 6 400 12 800 - - - - - -
C DC38 Ngaka Modiri Molema District Municipality 293 074 299 499 317 274 - - - - - - - - - 2 540 2 690 2 846 - - -
Total: Ngaka Modiri Molema Municipalities 493 543 493 097 521 047 - - - - - - 19 269 19 200 27 520 2 540 2 690 2 846 - - -

B NW392 Naledi 29 218 16 979 17 702 - - - - - - 5 825 16 000 12 800 - - - - - -

B NW393 Mamusa 15 462 15 696 16 341 - - - - - - - - - - - - - - -
B NW394 Greater Taung 46 675 47 604 50 176 - - - - - - - - - - - - - - -
B NW396 Lekwa-Teemane 14 579 14 793 15 384 - - - - - - 5 000 12 800 9 600 - - - - - -
B NW397 Kagisano-Molopo 29 521 30 068 31 581 - - - - - - - - - - - - - - -
C DC39 Dr Ruth Segomotsi Mompati District Municipality 135 482 138 393 146 444 149 150 121 693 129 660 91 557 105 000 110 775 - - - 2 444 2 589 2 738 - - -
Total: Dr Ruth Segomotsi Mompati Municipalities 270 937 263 533 277 628 149 150 121 693 129 660 91 557 105 000 110 775 10 825 28 800 22 400 2 444 2 589 2 738 - - -

B NW403 City of Matlosana 85 689 87 489 92 468 - - - 17 000 - - 22 000 25 483 28 663 - - - - - -
B NW404 Maquassi Hills 27 703 28 209 29 610 - - - 20 000 - - - - - - - - - - -
B NW405 JB Marks 65 344 66 690 70 413 - - - 20 000 - - 23 917 19 200 19 200 - - - - - -
C DC40 Dr Kenneth Kaunda District Municipality - - - - - - - - - - - - 2 460 2 605 2 756 - - -
Total: Dr Kenneth Kaunda Municipalities 178 736 182 388 192 491 - - - 57 000 - - 45 917 44 683 47 863 2 460 2 605 2 756 - - -

Total: North West Municipalities 1 742 871 1 746 241 1 845 600 149 150 121 693 129 660 346 557 358 000 377 690 86 049 127 883 148 983 9 808 10 388 10 989 - - -
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 1 OF 2

Integrated National Electrification Programme

Municipal Infrastructure Grant Regional Bulk Infrastructure Grant Water Services Infrastructure Grant Rural Roads Asset Management Systems Grant Municipal Disaster Recovery Grant
Grant (Municipal)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

WESTERN CAPE

A CPT City of Cape Town - - - - - - - - - 10 000 25 600 12 800 - - - - - -

B WC011 Matzikama 20 951 21 307 22 291 - - - 10 000 10 000 10 550 2 500 5 120 6 400 - - - - - -
B WC012 Cederberg 15 434 15 667 16 310 - - - 10 000 12 000 12 660 3 000 5 120 6 400 - - - - - -
B WC013 Bergrivier 19 754 14 548 15 124 - - - - - - 3 000 3 200 6 400 - - - - - -
B WC014 Saldanha Bay 19 101 19 415 20 285 - - - - - - 3 000 3 200 3 200 - - - - - -
B WC015 Swartland 20 945 21 301 22 285 - - - - - - 4 000 5 760 6 400 - - - - - -
C DC1 West Coast District Municipality - - - - - - - - - - - - 2 558 2 710 2 866 - - -
Total: West Coast Municipalities 96 185 92 238 96 295 - - - 20 000 22 000 23 210 15 500 22 400 28 800 2 558 2 710 2 866 - - -

B WC022 Witzenberg 22 031 22 411 23 462 9 500 19 471 - - - - 5 000 4 480 6 400 - - - - - -
B WC023 Drakenstein 34 484 35 142 36 961 - - - - - - 5 738 6 400 9 600 - - - - - -
B WC024 Stellenbosch 35 107 35 779 37 636 - - - - - - 5 000 4 480 6 400 - - - - - -
B WC025 Breede Valley 33 810 34 452 36 230 - - - - - - 5 000 4 480 19 052 - - - - - -
B WC026 Langeberg 21 612 21 983 23 008 - - - - - - 3 000 2 560 3 200 - - - - - -
C DC2 Cape Winelands District Municipality - - - - - - - - - - - - 2 689 2 848 3 012 - - -
Total: Cape Winelands Municipalities 147 044 149 767 157 297 9 500 19 471 - - - - 23 738 22 400 44 652 2 689 2 848 3 012 - - -

B WC031 Theewaterskloof 25 962 26 430 27 723 - - - - - - 5 000 7 040 6 400 - - - - - -

B WC032 Overstrand 21 639 22 010 23 036 - - - - - - 4 262 7 040 6 400 - - - - - -
B WC033 Cape Agulhas 10 874 11 005 11 367 - - - - - - 2 000 5 120 3 200 - - - - - -
B WC034 Swellendam 11 786 11 937 12 356 - - - - - - 2 000 5 120 3 200 - - - - - -
C DC3 Overberg District Municipality - - - - - - - - - - - - 2 649 2 805 2 968 - - -
Total: Overberg Municipalities 70 261 71 382 74 482 - - - - - - 13 262 24 320 19 200 2 649 2 805 2 968 - - -

B WC041 Kannaland 10 156 10 271 10 589 - - - 8 000 - - 2 000 3 071 3 200 - - - - - -

B WC042 Hessequa 13 462 13 650 14 173 - - - - - - 3 000 1 920 3 200 - - - - - -
B WC043 Mossel Bay 23 688 24 105 25 258 - - - 4 000 - - 6 000 15 172 9 600 - - - - - -
250

B WC044 George 47 888 40 104 42 223 - - - - - - 13 000 9 600 9 600 - - - - - -

B WC045 Oudtshoorn 21 382 21 747 22 758 - - - 10 000 - - 3 000 8 320 3 200 - - - - - -
B WC047 Bitou 19 842 20 173 21 089 - - - - - - 8 000 9 600 6 400 - - - - - -
B WC048 Knysna 24 594 25 031 26 240 - - - - - - 7 000 8 320 3 200 - - - - - -
C DC4 Eden District Municipality - - - - - - - - - - - - 2 425 2 568 2 717 - - -
Total: Eden Municipalities 161 012 155 081 162 330 - - - 22 000 - - 42 000 56 003 38 400 2 425 2 568 2 717 - - -

B WC051 Laingsburg 6 588 6 621 6 724 - - - 2 000 - - 2 000 4 480 3 840 - - - - - -

B WC052 Prince Albert 7 505 7 561 7 716 - - - 3 000 - - 2 500 5 120 3 200 - - - - - -
B WC053 Beaufort West 13 776 13 972 14 513 - - - - - - 10 000 9 600 9 920 - - - - - -
C DC5 Central Karoo District Municipality - - - - - - - - - - - - 1 920 2 035 2 152 - - -
Total: Central Karoo Municipalities 27 869 28 154 28 953 - - - 5 000 - - 14 500 19 200 16 960 1 920 2 035 2 152 - - -

Total: Western Cape Municipalities 502 371 496 622 519 357 9 500 19 471 - 47 000 22 000 23 210 119 000 169 923 160 812 12 241 12 966 13 715 - - -

Unallocated - 409 542 418 195 - - - - - - - - - - - - - - -

National Total 15 287 685 15 733 731 16 599 086 1 957 000 2 066 360 2 180 005 3 481 056 3 669 319 3 870 972 1 904 477 2 127 928 2 244 964 107 533 113 891 120 485 21 317 - -
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 2 OF 2

Neighbourhood Development Partnership Grant

Urban Settlements Development Grant Public Transport Network Grant Integrated City Development Grant SUB-TOTAL: INFRASTRUCTURE
(Capital)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

A BUF Buffalo City 762 992 801 772 845 886 95 165 234 464 247 020 13 250 14 120 21 210 10 003 11 494 12 134 887 610 1 084 250 1 158 250
A NMA Nelson Mandela Bay 905 664 951 696 1 004 059 304 942 298 144 314 541 - 20 000 5 000 12 355 17 534 18 511 1 248 609 1 319 374 1 374 111

B EC101 Dr Beyers Naude - - - - - - - - - - - - 24 767 27 008 27 950

B EC102 Blue Crane Route - - - - - - - - - - - - 70 117 19 440 18 083
B EC104 Makana - - - - - - - - - - - - 66 976 30 799 28 770
B EC105 Ndlambe - - - - - - - - - - - - 26 809 33 695 33 641
B EC106 Sundays River Valley - - - - - - - - - - - - 41 893 38 412 42 856
B EC108 Kouga - - - - - - - - - - - - 41 386 38 171 39 786
B EC109 Kou-Kamma - - - - - - - - - - - - 15 170 21 796 19 224
C DC10 Sarah Baartman District Municipality - - - - - - - - - - - - 2 240 2 372 2 509
Total: Sarah Baartman Municipalities - - - - - - - - - - - - 289 358 211 693 212 819

B EC121 Mbhashe - - - - - - - - - - - - 79 138 75 992 76 111

B EC122 Mnquma - - - - - - - - - - - - 72 492 72 209 78 886
B EC123 Great Kei - - - - - - - - - - - - 17 116 17 653 18 030
B EC124 Amahlathi - - - - - - - - - - - - 32 634 37 739 35 936
B EC126 Ngqushwa - - - - - - - - - - - - 27 454 22 504 29 960
B EC129 Raymond Mhlaba - - - - - - - - - - - - 39 886 52 033 50 899
C DC12 Amathole District Municipality - - - - - - 7 080 - - - - - 529 251 533 585 564 933
Total: Amathole Municipalities - - - - - - 7 080 - - - - - 797 971 811 715 854 755

B EC131 Inxuba Yethemba - - - - - - - - - - - - 22 862 30 404 26 374

B EC135 Intsika Yethu - - - - - - - - - - - - 46 982 47 471 54 915
B EC136 Emalahleni - - - - - - - - - - - - 43 902 37 924 38 446
B EC137 Engcobo - - - - - - - - - - - - 37 794 51 325 61 549
B EC138 Sakhisizwe - - - - - - - - - - - - 17 912 21 400 25 396
B EC139 Enoch Mgijima - - - - - - - - - - - - 59 202 61 712 76 276
251

C DC13 Chris Hani District Municipality - - - - - - - - - - - - 496 109 423 454 447 989
Total: Chris Hani Municipalities - - - - - - - - - - - - 724 763 673 690 730 945

B EC141 Elundini - - - - - - - - - - - - 63 843 58 148 60 151

B EC142 Senqu - - - - - - - - - - - - 43 738 41 685 45 506
B EC145 Walter Sisulu - - - - - - - - - - - - 23 801 23 992 26 110
C DC14 Joe Gqabi District Municipality - - - - - - - - - - - - 214 739 283 182 299 302
Total: Joe Gqabi Municipalities - - - - - - - - - - - - 346 121 407 007 431 069

B EC153 Ngquza Hill - - - - - - - - - - - - 74 326 62 706 67 094

B EC154 Port St Johns - - - - - - - - - - - - 59 645 47 145 48 916
B EC155 Nyandeni - - - - - - - - - - - - 77 814 76 844 70 614
B EC156 Mhlontlo - - - - - - - - - - - - 43 394 57 050 53 019
B EC157 King Sabata Dalindyebo - - - - - - - - - - - - 104 306 108 679 103 985
C DC15 O.R. Tambo District Municipality - - - - - - - - - - - - 1 022 328 1 023 233 1 088 550
Total: O.R. Tambo Municipalities - - - - - - - - - - - - 1 381 813 1 375 657 1 432 178

B EC441 Matatiele - - - - - - - - - - - - 100 850 106 855 109 526

B EC442 Umzimvubu - - - - - - - - - - - - 76 707 72 011 68 110
B EC443 Mbizana - - - - - - - - - - - - 72 446 70 062 70 179
B EC444 Ntabankulu - - - - - - - - - - - - 78 413 59 164 66 902
C DC44 Alfred Nzo District Municipality - - - - - - - - - - - - 480 204 468 434 495 917
Total: Alfred Nzo Municipalities - - - - - - - - - - - - 808 620 776 526 810 634

Total: Eastern Cape Municipalities 1 668 656 1 753 468 1 849 945 400 107 532 608 561 561 20 330 34 120 26 210 22 358 29 028 30 645 6 484 865 6 659 912 7 004 761
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 2 OF 2

Neighbourhood Development Partnership Grant

Urban Settlements Development Grant Public Transport Network Grant Integrated City Development Grant SUB-TOTAL: INFRASTRUCTURE
(Capital)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

FREE STATE

A MAN Mangaung 756 216 794 652 838 374 234 831 229 596 242 223 13 000 17 790 30 000 7 207 11 376 12 009 1 026 704 1 079 014 1 154 606

B FS161 Letsemeng - - - - - - - - - - - - 49 949 44 349 47 011

B FS162 Kopanong - - - - - - - - - - - - 42 201 51 740 72 160
B FS163 Mohokare - - - - - - - - - - - - 104 708 71 191 61 715
C DC16 Xhariep District Municipality - - - - - - - - - - - - 2 149 2 277 2 408
Total: Xhariep Municipalities - - - - - - - - - - - - 199 007 169 557 183 294

B FS181 Masilonyana - - - - - - - - - - - - 34 019 26 621 29 447

B FS182 Tokologo - - - - - - - - - - - - 29 401 22 313 24 447
B FS183 Tswelopele - - - - - - - - - - - - 23 837 19 688 22 095
B FS184 Matjhabeng - - - - - - - - - - - - 163 406 126 750 132 355
B FS185 Nala - - - - - - - - - - - - 32 407 34 765 35 613
C DC18 Lejweleputswa District Municipality - - - - - - - - - - - - 2 281 2 415 2 556
Total: Lejweleputswa Municipalities - - - - - - - - - - - - 285 351 232 552 246 513

B FS191 Setsoto - - - - - - - - - - - - 108 464 129 138 171 433

B FS192 Dihlabeng - - - - - - - - - - - - 67 914 57 371 62 189
B FS193 Nketoana - - - - - - - - - - - - 24 927 28 572 31 516
B FS194 Maluti-a-Phofung - - - - - - - - - - - - 223 321 231 963 263 435
B FS195 Phumelela - - - - - - - - - - - - 35 698 46 168 49 517
B FS196 Mantsopa - - - - - - - - - - - - 60 259 53 171 24 074
C DC19 Thabo Mofutsanyana District Municipality - - - - - - - - - - - - 2 405 2 547 2 695
Total: Thabo Mofutsanyana Municipalities - - - - - - - - - - - - 522 988 548 930 604 859

B FS201 Moqhaka - - - - - - - - - - - - 49 410 59 018 64 526

B FS203 Ngwathe - - - - - - - - - - - - 102 164 110 811 123 102
B FS204 Metsimaholo - - - - - - - - - - - - 70 436 51 052 79 045
252

B FS205 Mafube - - - - - - - - - - - - 37 064 35 004 29 897

C DC20 Fezile Dabi District Municipality - - - - - - - - - - - - 2 188 2 317 2 451
Total: Fezile Dabi Municipalities - - - - - - - - - - - - 261 262 258 202 299 021

Total: Free State Municipalities 756 216 794 652 838 374 234 831 229 596 242 223 13 000 17 790 30 000 7 207 11 376 12 009 2 295 312 2 288 255 2 488 293

GAUTENG

A EKU City of Ekurhuleni 1 971 737 2 071 952 2 185 954 694 640 679 152 716 506 75 262 42 190 72 800 45 537 48 375 51 069 2 832 176 2 879 669 3 058 329
A JHB City of Johannesburg 1 852 262 1 946 406 2 053 499 1 112 936 1 088 124 1 147 971 40 120 55 000 65 000 63 536 67 496 71 255 3 100 152 3 195 026 3 382 525
A TSH City of Tshwane 1 605 607 1 687 214 1 780 046 808 194 731 750 771 997 7 105 19 635 55 000 45 013 44 464 46 940 2 505 919 2 521 063 2 685 983

B GT421 Emfuleni - - - - - - 37 849 35 880 3 400 - - - 223 238 231 847 210 700
B GT422 Midvaal - - - - - - - - - - - - 54 201 66 868 74 827
B GT423 Lesedi - - - - - - - - - - - - 59 371 56 404 56 320
C DC42 Sedibeng District Municipality - - - - - - - - - - - - 2 436 2 580 2 729
Total: Sedibeng Municipalities - - - - - - 37 849 35 880 3 400 - - - 339 246 357 699 344 576

B GT481 Mogale City - - - - - - 18 630 24 635 55 000 - - - 169 930 191 321 233 851
B GT484 Merafong City - - - - - - - - - - - - 157 255 120 475 119 699
B GT485 Rand West City - - - - - - - - - - - - 154 275 181 646 184 015
C DC48 West Rand District Municipality - - - - - - - - - - - - 2 594 2 748 2 907
Total: West Rand Municipalities - - - - - - 18 630 24 635 55 000 - - - 484 054 496 190 540 472

Total: Gauteng Municipalities 5 429 606 5 705 572 6 019 499 2 615 770 2 499 026 2 636 474 178 966 177 340 251 200 154 086 160 335 169 264 9 261 547 9 449 647 10 011 885
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 2 OF 2

Neighbourhood Development Partnership Grant

Urban Settlements Development Grant Public Transport Network Grant Integrated City Development Grant SUB-TOTAL: INFRASTRUCTURE
(Capital)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

A ETH eThekwini 1 966 869 2 066 837 2 180 557 883 887 840 549 886 779 25 220 64 680 109 700 45 596 52 391 55 309 2 948 572 3 069 457 3 282 345

B KZN212 uMdoni - - - - - - - - - - - - 44 118 43 478 45 028

B KZN213 uMzumbe - - - - - - - - - - - - 48 322 41 117 45 432
B KZN214 uMuziwabantu - - - - - - - - - - - - 32 940 29 740 34 047
B KZN216 Ray Nkonyeni - - - - - - - - - - - - 74 317 74 351 84 164
C DC21 Ugu District Municipality - - - - - - - - - - - - 293 551 338 859 358 493
Total: Ugu Municipalities - - - - - - - - - - - - 493 248 527 545 567 164

B KZN221 uMshwathi - - - - - - - - - - - - 37 098 35 271 38 555

B KZN222 uMngeni - - - - - - - - - - - - 30 646 26 539 30 528
B KZN223 Mpofana - - - - - - - - - - - - 18 862 15 531 18 856
B KZN224 iMpendle - - - - - - - - - - - - 11 572 14 719 18 524
B KZN225 Msunduzi - - - 199 104 194 665 205 372 42 360 25 645 53 210 - - - 474 780 464 826 518 653
B KZN226 Mkhambathini - - - - - - - - - - - - 23 835 19 576 23 145
B KZN227 Richmond - - - - - - - - - - - - 28 649 24 442 25 653
C DC22 uMgungundlovu District Municipality - - - - - - - - - - - - 205 059 214 625 226 681
Total: uMgungundlovu Municipalities - - - 199 104 194 665 205 372 42 360 25 645 53 210 - - - 830 501 815 529 900 595

B KZN235 Okhahlamba - - - - - - - - - - - - 35 779 33 304 36 110

B KZN237 iNkosi Langalibalele - - - - - - - - - - - - 50 949 42 661 49 232
B KZN238 Alfred Duma - - - - - - - - - - - - 84 544 66 683 74 704
C DC23 uThukela District Municipality - - - - - - - - - - - - 407 804 420 034 438 864
Total: uThukela Municipalities - - - - - - - - - - - - 579 076 562 682 598 910

B KZN241 eNdumeni - - - - - - - - - - - - 31 417 21 210 25 426

B KZN242 Nquthu - - - - - - - - - - - - 44 662 43 198 51 979
B KZN244 uMsinga - - - - - - - - - - - - 54 415 49 422 55 379
B KZN245 uMvoti - - - - - - - - - - - - 38 590 38 802 43 402
C DC24 uMzinyathi District Municipality - - - - - - - - - - - - 281 765 321 102 312 892
Total: uMzinyathi Municipalities - - - - - - - - - - - - 450 849 473 734 489 078
253

B KZN252 Newcastle - - - - - - - 2 450 14 500 - - - 165 232 184 630 209 673
B KZN253 eMadlangeni - - - - - - - - - - - - 15 247 15 742 19 204
B KZN254 Dannhauser - - - - - - - - - - - - 21 400 21 766 22 778
C DC25 Amajuba District Municipality - - - - - - - - - - - - 126 858 131 374 138 524
Total: Amajuba Municipalities - - - - - - - 2 450 14 500 - - - 328 737 353 512 390 179

B KZN261 eDumbe - - - - - - - - - - - - 31 062 34 047 38 834

B KZN262 uPhongolo - - - - - - - - - - - - 36 294 40 302 41 708
B KZN263 AbaQulusi - - - - - - - - - - - - 51 434 46 735 48 075
B KZN265 Nongoma - - - - - - - - - - - - 46 286 43 873 52 494
B KZN266 Ulundi - - - - - - - - - - - - 48 335 47 900 41 463
C DC26 Zululand District Municipality - - - - - - - - - - - - 469 624 418 078 447 036
Total: Zululand Municipalities - - - - - - - - - - - - 683 035 630 935 669 610

B KZN271 uMhlabuyalingana - - - - - - - - - - - - 52 265 49 918 51 724

B KZN272 Jozini - - - - - - - - - - - - 51 687 49 725 54 349
B KZN275 Mtubatuba - - - - - - - - - - - - 43 766 40 250 42 364
B KZN276 Big Five Hlabisa - - - - - - - - - - - - 21 000 27 757 31 344
C DC27 uMkhanyakude District Municipality - - - - - - - - - - - - 268 002 297 739 314 972
Total: uMkhanyakude Municipalities - - - - - - - - - - - - 436 720 465 389 494 753

B KZN281 uMfolozi - - - - - - - - - - - - 36 761 33 224 34 505

B KZN282 uMhlathuze - - - - - - - - - - - - 120 604 152 826 162 172
B KZN284 uMlalazi - - - - - - - - - - - - 56 108 49 880 49 515
B KZN285 Mthonjaneni - - - - - - - - - - - - 32 749 34 033 25 820
B KZN286 Nkandla - - - - - - - - - - - - 49 945 48 434 43 911
C DC28 King Cetshwayo District Municipality - - - - - - - - - - - - 362 728 336 496 409 091
Total: King Cetshwayo Municipalities - - - - - - - - - - - - 658 895 654 893 725 014

B KZN291 Mandeni - - - - - - 10 667 - - - - - 52 159 44 369 44 202

B KZN292 KwaDukuza - - - - - - - - - - - - 60 585 61 684 63 501
B KZN293 Ndwedwe - - - - - - - - - - - - 35 267 36 209 39 306
B KZN294 Maphumulo - - - - - - - - - - - - 33 942 28 720 30 365
C DC29 iLembe District Municipality - - - - - - - - - - - - 366 720 302 106 319 458
Total: iLembe Municipalities - - - - - - 10 667 - - - - - 548 673 473 088 496 832

B KZN433 Greater Kokstad - - - - - - - - - - - - 30 963 29 318 30 062

B KZN434 uBuhlebezwe - - - - - - - - - - - - 42 439 41 917 40 240
B KZN435 uMzimkhulu - - - - - - - - - - - - 57 536 59 373 57 689
B KZN436 Dr Nkosazana Dlamini Zuma - - - - - - - - - - - - 40 206 39 149 40 486
C DC43 Harry Gwala District Municipality - - - - - - - - - - - - 349 213 351 217 386 025
Total: Harry Gwala Municipalities - - - - - - - - - - - - 520 357 520 974 554 502

Total: KwaZulu-Natal Municipalities 1 966 869 2 066 837 2 180 557 1 082 991 1 035 214 1 092 151 78 247 92 775 177 410 45 596 52 391 55 309 8 478 663 8 547 738 9 168 982
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 2 OF 2

Neighbourhood Development Partnership Grant

Urban Settlements Development Grant Public Transport Network Grant Integrated City Development Grant SUB-TOTAL: INFRASTRUCTURE
(Capital)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani - - - - - - - - - - - - 70 673 73 488 76 549

B LIM332 Greater Letaba - - - - - - - - - - - - 62 443 68 243 73 283
B LIM333 Greater Tzaneen - - - - - - - - - - - - 108 311 110 263 112 150
B LIM334 Ba-Phalaborwa - - - - - - - - - - - - 31 437 32 026 43 158
B LIM335 Maruleng - - - - - - - - - - - - 26 337 33 212 34 629
C DC33 Mopani District Municipality - - - - - - - - - - - - 553 699 566 632 599 935
Total: Mopani Municipalities - - - - - - - - - - - - 852 900 883 864 939 704

B LIM341 Musina - - - - - - - - - - - - 43 492 51 416 49 665

B LIM343 Thulamela - - - - - - - - - - - - 149 323 124 983 130 679
B LIM344 Makhado - - - - - - - - - - - - 104 645 106 217 111 322
B LIM345 Collins Chabane - - - - - - - - - - - - 100 350 98 031 106 522
C DC34 Vhembe District Municipality - - - - - - - - - - - - 550 895 567 150 600 806
Total: Vhembe Municipalities - - - - - - - - - - - - 948 705 947 797 998 994

B LIM351 Blouberg - - - - - - - - - - - - 47 786 63 550 65 925

B LIM353 Molemole - - - - - - - - - - - - 34 493 35 151 36 970
B LIM354 Polokwane - - - 205 107 179 433 189 302 35 000 35 000 35 000 - - - 952 519 1 322 377 1 368 696
B LIM355 Lepele-Nkumpi - - - - - - - - - - - - 63 001 63 674 66 635
C DC35 Capricorn District Municipality - - - - - - - - - - - - 306 284 338 353 357 905
Total: Capricorn Municipalities - - - 205 107 179 433 189 302 35 000 35 000 35 000 - - - 1 404 083 1 823 105 1 896 131

B LIM361 Thabazimbi - - - - - - - - - - - - 42 612 46 028 44 532

B LIM362 Lephalale - - - - - - - - - - - - 52 813 93 243 100 975
B LIM366 Bela-Bela - - - - - - - - - - - - 93 110 83 711 87 448
B LIM367 Mogalakwena - - - - - - - - - - - - 205 416 245 617 258 606
B LIM368 Modimolle-Mookgophong - - - - - - - - - - - - 97 826 128 558 135 534
C DC36 Waterberg District Municipality - - - - - - - - - - - - 2 133 2 260 2 390
Total: Waterberg Municipalities - - - - - - - - - - - - 493 910 599 417 629 485
254

B LIM471 Ephraim Mogale - - - - - - - - - - - - 32 823 33 443 35 160

B LIM472 Elias Motsoaledi - - - - - - - - - - - - 63 830 67 721 70 734
B LIM473 Makhuduthamaga - - - - - - - - - - - - 78 012 68 522 71 969
B LIM476 Fetakgomo Tubatse - - - - - - - - - - - - 97 638 93 969 108 360
C DC47 Sekhukhune District Municipality - - - - - - - - - - - - 532 227 547 621 579 991
Total: Sekhukhune Municipalities - - - - - - - - - - - - 804 530 811 276 866 214

Total: Limpopo Municipalities - - - 205 107 179 433 189 302 35 000 35 000 35 000 - - - 4 504 128 5 065 459 5 330 528

MPUMALANGA

B MP301 Chief Albert Luthuli - - - - - - - - - - - - 128 289 131 272 131 200
B MP302 Msukaligwa - - - - - - - - - - - - 91 744 95 110 91 590
B MP303 Mkhondo - - - - - - - - - - - - 120 235 112 936 127 862
B MP304 Dr Pixley ka Isaka Seme - - - - - - - - - - - - 68 331 61 544 67 317
B MP305 Lekwa - - - - - - - - - - - - 50 034 63 964 69 613
B MP306 Dipaleseng - - - - - - - - - - - - 45 810 26 496 36 290
B MP307 Govan Mbeki - - - - - - - - - - - - 74 651 73 803 73 790
C DC30 Gert Sibande District Municipality - - - - - - - - - - - - 161 754 312 082 341 000
Total: Gert Sibande Municipalities - - - - - - - - - - - - 740 848 877 207 938 662

B MP311 Victor Khanye - - - - - - - - - - - - 24 477 33 232 32 513

B MP312 Emalahleni - - - - - - 10 605 10 605 10 920 - - - 195 072 180 082 202 936
B MP313 Steve Tshwete - - - - - - - - - - - - 67 740 69 436 62 015
B MP314 Emakhazeni - - - - - - - - - - - - 46 960 43 355 52 934
B MP315 Thembisile Hani - - - - - - - - - - - - 170 845 176 629 186 527
B MP316 Dr JS Moroka - - - - - - - - - - - - 124 041 137 031 146 111
C DC31 Nkangala District Municipality - - - - - - - - - - - - 2 180 2 308 2 442
Total: Nkangala Municipalities - - - - - - 10 605 10 605 10 920 - - - 631 315 642 073 685 478

B MP321 Thaba Chweu - - - - - - - - - - - - 75 392 75 182 69 420

B MP324 Nkomazi - - - - - - - - - - - - 260 261 279 263 284 745
B MP325 Bushbuckridge - - - - - - - - - - - - 481 988 490 840 493 434
B MP326 City of Mbombela - - - 203 454 198 918 209 859 33 535 2 620 28 500 - - - 605 014 567 291 642 304
C DC32 Ehlanzeni District Municipality - - - - - - - - - - - - 2 352 2 491 2 635
Total: Ehlanzeni Municipalities - - - 203 454 198 918 209 859 33 535 2 620 28 500 - - - 1 425 007 1 415 067 1 492 538

Total: Mpumalanga Municipalities - - - 203 454 198 918 209 859 44 140 13 225 39 420 - - - 2 797 170 2 934 347 3 116 678
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 2 OF 2

Neighbourhood Development Partnership Grant

Urban Settlements Development Grant Public Transport Network Grant Integrated City Development Grant SUB-TOTAL: INFRASTRUCTURE
(Capital)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

NORTHERN CAPE

B NC061 Richtersveld - - - - - - - - - - - - 16 287 13 738 9 399

B NC062 Nama Khoi - - - - - - - - - - - - 23 384 17 793 17 092
B NC064 Kamiesberg - - - - - - - - - - - - 18 567 7 553 9 627
B NC065 Hantam - - - - - - - - - - - - 61 403 34 463 19 223
B NC066 Karoo Hoogland - - - - - - - - - - - - 41 020 28 087 8 274
B NC067 Khâi-Ma - - - - - - - - - - - - 14 362 9 693 9 860
C DC6 Namakwa District Municipality - - - - - - - - - - - - 2 904 3 076 3 254
Total: Namakwa Municipalities - - - - - - - - - - - - 177 927 114 403 76 729

B NC071 Ubuntu - - - - - - - - - - - - 14 862 13 170 12 190

B NC072 Umsobomvu - - - - - - - - - - - - 24 348 14 690 13 801
B NC073 Emthanjeni - - - - - - - - - - - - 52 190 19 267 16 429
B NC074 Kareeberg - - - - - - - - - - - - 60 796 8 038 8 222
B NC075 Renosterberg - - - - - - - - - - - - 14 926 9 400 10 830
B NC076 Thembelihle - - - - - - - - - - - - 33 677 19 049 9 718
B NC077 Siyathemba - - - - - - - - - - - - 18 324 13 029 13 321
B NC078 Siyancuma - - - - - - - - - - - - 28 855 19 168 18 589
C DC7 Pixley Ka Seme District Municipality - - - - - - - - - - - - 3 009 3 187 3 372
Total: Pixley Ka Seme Municipalities - - - - - - - - - - - - 250 987 118 998 106 472

B NC082 !Kai !Garib - - - - - - - - - - - - 27 036 24 336 25 387

B NC084 !Kheis - - - - - - - - - - - - 14 567 13 891 11 035
B NC085 Tsantsabane - - - - - - - - - - - - 20 312 15 542 16 178
B NC086 Kgatelopele - - - - - - - - - - - - 15 675 22 606 49 505
B NC087 Dawid Kruiper - - - - - - - - - - - - 48 652 30 210 32 063
C DC8 Z.F. Mgcawu District Municipality - - - - - - - - - - - - 2 866 3 035 3 211
Total: Z.F. Mgcawu Municipalities - - - - - - - - - - - - 129 108 109 620 137 379

B NC091 Sol Plaatjie - - - - - - 171 699 154 447 5 696 - - - 278 063 223 440 74 193
B NC092 Dikgatlong - - - - - - - - - - - - 27 710 20 807 22 324
B NC093 Magareng - - - - - - - - - - - - 20 029 23 963 14 735
255

B NC094 Phokwane - - - - - - - - - - - - 60 292 63 825 67 033

C DC9 Frances Baard District Municipality - - - - - - - - - - - - 2 521 2 670 2 825
Total: Frances Baard Municipalities - - - - - - 171 699 154 447 5 696 - - - 388 615 334 705 181 110

B NC451 Joe Morolong - - - - - - - - - - - - 116 324 110 025 170 766

B NC452 Ga-Segonyana - - - - - - - - - - - - 108 793 151 502 98 453
B NC453 Gamagara - - - - - - - - - - - - 73 335 102 940 125 151
C DC45 John Taolo Gaetsewe District Municipality - - - - - - - - - - - - 1 983 2 100 2 222
Total: John Taolo Gaetsewe Municipalities - - - - - - - - - - - - 300 435 366 567 396 592

Total: Northern Cape Municipalities - - - - - - 171 699 154 447 5 696 - - - 1 247 072 1 044 293 898 282

NORTH WEST

B NW371 Moretele - - - - - - - - - - - - 172 384 194 780 205 806

B NW372 Madibeng - - - - - - - - - - - - 285 258 297 797 317 703
B NW373 Rustenburg - - - 298 212 218 912 230 953 - - 10 000 - - - 598 336 561 219 614 788
B NW374 Kgetlengrivier - - - - - - - - - - - - 60 392 55 847 58 755
B NW375 Moses Kotane - - - - - - - - - - - - 189 535 204 692 216 450
C DC37 Bojanala Platinum District Municipality - - - - - - - - - - - - 2 364 2 504 2 649
Total: Bojanala Platinum Municipalities - - - 298 212 218 912 230 953 - - 10 000 - - - 1 308 269 1 316 839 1 416 151

B NW381 Ratlou - - - - - - - - - - - - 28 867 29 400 30 872

B NW382 Tswaing - - - - - - - - - - - - 39 294 35 674 39 059
B NW383 Mafikeng - - - - - - - - - - - - 60 004 61 230 64 624
B NW384 Ditsobotla - - - - - - - - - - - - 45 851 42 940 44 843
B NW385 Ramotshere Moiloa - - - - - - - - - - - - 45 722 43 554 51 895
C DC38 Ngaka Modiri Molema District Municipality - - - - - - - - - - - - 295 614 302 189 320 120
Total: Ngaka Modiri Molema Municipalities - - - - - - - - - - - - 515 352 514 987 551 413

B NW392 Naledi - - - - - - - - - - - - 35 043 32 979 30 502

B NW393 Mamusa - - - - - - - - - - - - 15 462 15 696 16 341
B NW394 Greater Taung - - - - - - - - - - - - 46 675 47 604 50 176
B NW396 Lekwa-Teemane - - - - - - - - - - - - 19 579 27 593 24 984
B NW397 Kagisano-Molopo - - - - - - - - - - - - 29 521 30 068 31 581
C DC39 Dr Ruth Segomotsi Mompati District Municipality - - - - - - - - - - - - 378 633 367 675 389 617
Total: Dr Ruth Segomotsi Mompati Municipalities - - - - - - - - - - - - 524 913 521 615 543 201

B NW403 City of Matlosana - - - - - - 48 485 56 475 40 000 - - - 173 174 169 447 161 131
B NW404 Maquassi Hills - - - - - - - - - - - - 47 703 28 209 29 610
B NW405 JB Marks - - - - - - - - - - - - 109 261 85 890 89 613
C DC40 Dr Kenneth Kaunda District Municipality - - - - - - - - - - - - 2 460 2 605 2 756
Total: Dr Kenneth Kaunda Municipalities - - - - - - 48 485 56 475 40 000 - - - 332 598 286 151 283 110

Total: North West Municipalities - - - 298 212 218 912 230 953 48 485 56 475 50 000 - - - 2 681 132 2 639 592 2 793 875
 ANNEXURE W5

INFRASTRUCTURE GRANT ALLOCATIONS TO MUNICIPALITIES

(SCHEDULE 4, PART B AND SCHEDULE 5, PART B) 2 OF 2

Neighbourhood Development Partnership Grant

Urban Settlements Development Grant Public Transport Network Grant Integrated City Development Grant SUB-TOTAL: INFRASTRUCTURE
(Capital)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

WESTERN CAPE

A CPT City of Cape Town 1 484 790 1 560 257 1 646 104 1 045 522 797 160 841 001 - 40 000 40 000 64 362 56 921 60 092 2 604 674 2 479 938 2 599 997

B WC011 Matzikama - - - - - - - - - - - - 33 451 36 427 39 241

B WC012 Cederberg - - - - - - - - - - - - 28 434 32 787 35 370
B WC013 Bergrivier - - - - - - - - - - - - 22 754 17 748 21 524
B WC014 Saldanha Bay - - - - - - - - - - - - 22 101 22 615 23 485
B WC015 Swartland - - - - - - - - - - - - 24 945 27 061 28 685
C DC1 West Coast District Municipality - - - - - - - - - - - - 2 558 2 710 2 866
Total: West Coast Municipalities - - - - - - - - - - - - 134 243 139 348 151 171

B WC022 Witzenberg - - - - - - - - - - - - 36 531 46 362 29 862

B WC023 Drakenstein - - - - - - - - - - - - 40 222 41 542 46 561
B WC024 Stellenbosch - - - - - - - - - - - - 40 107 40 259 44 036
B WC025 Breede Valley - - - - - - - - - - - - 38 810 38 932 55 282
B WC026 Langeberg - - - - - - - - - - - - 24 612 24 543 26 208
C DC2 Cape Winelands District Municipality - - - - - - - - - - - - 2 689 2 848 3 012
Total: Cape Winelands Municipalities - - - - - - - - - - - - 182 971 194 486 204 961

B WC031 Theewaterskloof - - - - - - - - - - - - 30 962 33 470 34 123

B WC032 Overstrand - - - - - - - - - - - - 25 901 29 050 29 436
B WC033 Cape Agulhas - - - - - - - - - - - - 12 874 16 125 14 567
B WC034 Swellendam - - - - - - - - - - - - 13 786 17 057 15 556
C DC3 Overberg District Municipality - - - - - - - - - - - - 2 649 2 805 2 968
Total: Overberg Municipalities - - - - - - - - - - - - 86 172 98 507 96 650

B WC041 Kannaland - - - - - - - - - - - - 20 156 13 342 13 789

B WC042 Hessequa - - - - - - - - - - - - 16 462 15 570 17 373
B WC043 Mossel Bay - - - - - - - - - - - - 33 688 39 277 34 858
256

B WC044 George - - - 167 675 117 667 124 139 - - - - - - 228 563 167 371 175 962
B WC045 Oudtshoorn - - - - - - - - - - - - 34 382 30 067 25 958
B WC047 Bitou - - - - - - - - - - - - 27 842 29 773 27 489
B WC048 Knysna - - - - - - 12 000 - - - - - 43 594 33 351 29 440
C DC4 Eden District Municipality - - - - - - - - - - - - 2 425 2 568 2 717
Total: Eden Municipalities - - - 167 675 117 667 124 139 12 000 - - - - - 407 112 331 319 327 586

B WC051 Laingsburg - - - - - - - - - - - - 10 588 11 101 10 564

B WC052 Prince Albert - - - - - - - - - - - - 13 005 12 681 10 916
B WC053 Beaufort West - - - - - - - - - - - - 23 776 23 572 24 433
C DC5 Central Karoo District Municipality - - - - - - - - - - - - 1 920 2 035 2 152
Total: Central Karoo Municipalities - - - - - - - - - - - - 49 289 49 389 48 065

Total: Western Cape Municipalities 1 484 790 1 560 257 1 646 104 1 213 197 914 827 965 140 12 000 40 000 40 000 64 362 56 921 60 092 3 464 461 3 292 987 3 428 430

Unallocated - - - - 305 714 322 509 - - - - - - - 715 256 740 704

National Total 11 306 137 11 880 786 12 534 479 6 253 669 6 114 248 6 450 172 601 867 621 172 654 936 293 609 310 051 327 319 41 214 350 42 637 486 44 982 418
 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
257

(SCHEDULE 6, PART B)

(National and Municipal Financial Years)

 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
(SCHEDULE 6, PART B)

Integrated National Electrification Programme Neighbourhood Development Partnership Grant

Water Services Infrastructure Grant Regional Bulk Infrastructure Grant Municipal Systems Improvement Grant SUB-TOTAL: INDIRECT
Grant (Eskom) (Technical Assistance)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

A BUF Buffalo City 18 994 19 337 30 146 250 1 200 1 200 - - - - - - - - - 19 244 20 537 31 346
A NMA Nelson Mandela Bay - - - 2 173 215 852 - - - 117 400 218 000 151 366 - - - 119 573 218 215 152 218

B EC101 Dr Beyers Naude 349 2 097 2 213 - - - - - - 5 000 2 000 15 000 2 755 1 700 1 800 8 104 5 797 19 013
B EC102 Blue Crane Route - - - - - - - - - 5 000 3 500 2 000 - - - 5 000 3 500 2 000
B EC104 Makana 2 493 3 685 3 887 - - - - - - 27 500 48 000 20 000 1 700 1 700 1 800 31 693 53 385 25 687
B EC105 Ndlambe 773 469 494 - - - - - - 5 000 - - - - - 5 773 469 494
B EC106 Sundays River Valley 1 357 7 644 8 064 - - - - - - 14 000 2 000 20 000 - - - 15 357 9 644 28 064
B EC108 Kouga 1 566 1 346 1 420 - - - - - - - - - - - - 1 566 1 346 1 420
B EC109 Kou-Kamma 2 794 1 723 1 818 - - - - - - 10 000 1 000 15 000 - - - 12 794 2 723 16 818
C DC10 Sarah Baartman District Municipality - - - - - - - - - - - - - - - - - -
Total: Sarah Baartman Municipalities 9 332 16 964 17 897 - - - - - - 66 500 56 500 72 000 4 455 3 400 3 600 80 287 76 864 93 497

B EC121 Mbhashe 117 610 44 072 46 496 - - - - - - - - - - - - 117 610 44 072 46 496
B EC122 Mnquma 55 685 46 492 49 049 - - - - - - - - - - - - 55 685 46 492 49 049
B EC123 Great Kei - - - - - - - - - - - - - - - - - -
B EC124 Amahlathi 9 901 9 699 10 233 - - - - - - - - - - - - 9 901 9 699 10 233
B EC126 Ngqushwa 3 836 6 615 6 979 - - - - - - - - - - - - 3 836 6 615 6 979
B EC129 Raymond Mhlaba 10 523 16 717 17 636 - - - - - - - - - 2 755 1 700 1 800 13 278 18 417 19 436
C DC12 Amathole District Municipality - - - - - - - - - 72 660 23 193 56 000 - - - 72 660 23 193 56 000
Total: Amathole Municipalities 197 555 123 595 130 393 - - - - - - 72 660 23 193 56 000 2 755 1 700 1 800 272 970 148 488 188 193

B EC131 Inxuba Yethemba - - - - - - - - - - - - 1 700 1 700 1 800 1 700 1 700 1 800

B EC135 Intsika Yethu 19 175 29 098 30 699 - - - - - - - - - - - - 19 175 29 098 30 699
B EC136 Emalahleni 13 446 14 703 15 511 - - - - - - - - - - - - 13 446 14 703 15 511
B EC137 Engcobo 13 344 19 560 20 636 - - - - - - - - - - - - 13 344 19 560 20 636
B EC138 Sakhisizwe 22 057 12 601 13 294 - - - - - - - - - - - - 22 057 12 601 13 294
258

B EC139 Enoch Mgijima 17 543 7 860 8 292 - - - - - - - - - 2 755 1 700 1 800 20 298 9 560 10 092
C DC13 Chris Hani District Municipality - - - - - - - - - 10 000 - - - - - 10 000 - -
Total: Chris Hani Municipalities 85 565 83 822 88 432 - - - - - - 10 000 - - 4 455 3 400 3 600 100 020 87 222 92 032

B EC141 Elundini 56 672 46 761 49 333 - - - - - - - - - - - - 56 672 46 761 49 333

B EC142 Senqu 44 556 24 169 25 498 - - - - - - - - - - - - 44 556 24 169 25 498
B EC145 Walter Sisulu - - - - - - - - - - - - 1 700 1 700 1 800 1 700 1 700 1 800
C DC14 Joe Gqabi District Municipality - - - - - - - - - - - - - - - - - -
Total: Joe Gqabi Municipalities 101 228 70 930 74 831 - - - - - - - - - 1 700 1 700 1 800 102 928 72 630 76 631

B EC153 Ngquza Hill 24 443 74 142 78 219 - - - - - - - - - - - - 24 443 74 142 78 219

B EC154 Port St Johns 33 113 30 403 32 076 - - - - - - - - - - - - 33 113 30 403 32 076
B EC155 Nyandeni 27 558 25 597 27 004 - - - - - - - - - - - - 27 558 25 597 27 004
B EC156 Mhlontlo 18 346 6 555 6 916 - - - - - - - - - - - - 18 346 6 555 6 916
B EC157 King Sabata Dalindyebo 41 734 39 405 41 572 - - - - - - - - - - - - 41 734 39 405 41 572
C DC15 O.R. Tambo District Municipality - - - - - - - - - - - - - - - - - -
Total: O.R. Tambo Municipalities 145 194 176 102 185 787 - - - - - - - - - - - - 145 194 176 102 185 787

B EC441 Matatiele 58 824 52 037 53 844 - - - - - - - - - - - - 58 824 52 037 53 844

B EC442 Umzimvubu 48 107 74 019 78 090 - - - - - - - - - - - - 48 107 74 019 78 090
B EC443 Mbizana 45 354 40 581 42 813 - - - - - - - - - - - - 45 354 40 581 42 813
B EC444 Ntabankulu 94 499 83 560 88 156 - - - - - - - - - - - - 94 499 83 560 88 156
C DC44 Alfred Nzo District Municipality - - - - - - - - - 67 000 35 000 98 000 - - - 67 000 35 000 98 000
Total: Alfred Nzo Municipalities 246 784 250 197 262 903 - - - - - - 67 000 35 000 98 000 - - - 313 784 285 197 360 903

Total: Eastern Cape Municipalities 804 652 740 946 790 388 2 423 1 415 2 052 - - - 333 560 332 693 377 366 13 365 10 200 10 800 1 154 000 1 085 254 1 180 606
 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
(SCHEDULE 6, PART B)

Integrated National Electrification Programme Neighbourhood Development Partnership Grant

Water Services Infrastructure Grant Regional Bulk Infrastructure Grant Municipal Systems Improvement Grant SUB-TOTAL: INDIRECT
Grant (Eskom) (Technical Assistance)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

FREE STATE

A MAN Mangaung 2 339 627 662 200 100 100 - - - 114 638 154 832 90 578 1 055 - - 118 232 155 559 91 340

B FS161 Letsemeng 201 62 65 - - - - 20 000 - - - - 1 700 1 700 1 800 1 901 21 762 1 865
B FS162 Kopanong 201 30 31 - - - 2 837 20 000 - 2 000 - - 1 700 1 700 1 800 6 738 21 730 1 831
B FS163 Mohokare 311 92 97 - - - - - - - - - 1 700 1 700 1 800 2 011 1 792 1 897
C DC16 Xhariep District Municipality - - - - - - - - - - - - - - - - - -
Total: Xhariep Municipalities 713 183 193 - - - 2 837 40 000 - 2 000 - - 5 100 5 100 5 400 10 650 45 283 5 593

B FS181 Masilonyana 238 79 83 - - - - - - 15 000 70 000 100 000 - - - 15 238 70 079 100 083
B FS182 Tokologo 275 78 82 - - - 29 323 - - 96 500 71 000 80 000 - - - 126 098 71 078 80 082
B FS183 Tswelopele 289 45 47 - - - - - - 20 000 20 000 - - - - 20 289 20 045 47
B FS184 Matjhabeng 68 592 4 401 4 643 - - - - - - 10 000 40 000 100 000 1 700 1 700 1 800 80 292 46 101 106 443
B FS185 Nala 276 222 234 - - - - - - - - - - - - 276 222 234
C DC18 Lejweleputswa District Municipality - - - - - - - - - - - - - - - - - -
Total: Lejweleputswa Municipalities 69 670 4 825 5 090 - - - 29 323 - - 141 500 201 000 280 000 1 700 1 700 1 800 242 193 207 525 286 890

B FS191 Setsoto 1 867 3 636 3 836 - - - 125 230 - - 207 486 - - - - - 334 583 3 636 3 836
B FS192 Dihlabeng 238 2 201 2 322 - - - - - - 5 000 20 000 23 000 - - - 5 238 22 201 25 322
B FS193 Nketoana 275 15 023 15 849 - - - 260 059 20 000 - 126 700 10 000 45 000 - - - 387 034 45 023 60 849
B FS194 Maluti-a-Phofung 275 4 671 4 928 - - - - - - 30 000 40 000 30 000 - - - 30 275 44 671 34 928
B FS195 Phumelela 4 523 4 437 4 681 - - - - - - 33 000 20 000 10 000 - - - 37 523 24 437 14 681
B FS196 Mantsopa 201 58 61 - - - - - - - - - - - - 201 58 61
C DC19 Thabo Mofutsanyana District Municipality - - - - - - - - - - - - - - - - - -
Total: Thabo Mofutsanyana Municipalities 7 379 30 025 31 677 - - - 385 289 20 000 - 402 186 90 000 108 000 - - - 794 854 140 025 139 677

B FS201 Moqhaka 3 544 4 056 3 224 - - - - - - 2 000 10 000 - - - - 5 544 14 056 3 224
B FS203 Ngwathe 276 24 25 - - - 15 828 - - 10 000 25 000 20 000 - - - 26 104 25 024 20 025
259

B FS204 Metsimaholo 276 12 13 - - - - - - 40 000 50 000 42 000 - 2 750 3 800 40 276 52 762 45 813
B FS205 Mafube 276 12 13 - - - 9 583 20 000 - 10 000 20 000 30 000 - - - 19 859 40 012 30 013
C DC20 Fezile Dabi District Municipality - - - - - - - - - - - - - - - - - -
Total: Fezile Dabi Municipalities 4 372 4 103 3 274 - - - 25 411 20 000 - 62 000 105 000 92 000 - 2 750 3 800 91 783 131 853 99 074

Total: Free State Municipalities 84 473 39 764 40 896 200 100 100 442 860 80 000 - 722 324 550 832 570 578 7 855 9 550 11 000 1 257 712 680 246 622 574

GAUTENG

A EKU City of Ekurhuleni 63 390 3 247 3 426 7 291 9 866 9 050 - - - - - - - - - 70 681 13 113 12 476
A JHB City of Johannesburg 20 632 11 981 12 639 6 167 7 700 7 700 - - - - - - - - - 26 799 19 681 20 339
A TSH City of Tshwane 2 850 10 208 10 770 7 138 1 200 2 200 - - - - - - - - - 9 988 11 408 12 970

B GT421 Emfuleni 33 365 15 392 16 238 150 1 200 1 200 - - - 233 090 298 651 402 000 - 2 750 2 000 266 605 317 993 421 438
B GT422 Midvaal - - - - - - - - - 59 800 7 000 105 000 - - - 59 800 7 000 105 000
B GT423 Lesedi - - - - - - - - - - - - - - - - - -
C DC42 Sedibeng District Municipality - - - - - - - - - - - - - - - - - -
Total: Sedibeng Municipalities 33 365 15 392 16 238 150 1 200 1 200 - - - 292 890 305 651 507 000 - 2 750 2 000 326 405 324 993 526 438

B GT481 Mogale City 21 412 802 845 200 1 200 1 200 - - - - - - 4 450 3 700 2 000 26 062 5 702 4 045
B GT484 Merafong City 48 019 801 845 - - - - - - - - - 2 750 2 000 500 50 769 2 801 1 345
B GT485 Rand West City 684 - - - - - - - - 35 409 338 400 161 924 - - - 36 093 338 400 161 924
C DC48 West Rand District Municipality - - - - - - - - - - - - - - - - - -
Total: West Rand Municipalities 70 115 1 603 1 690 200 1 200 1 200 - - - 35 409 338 400 161 924 7 200 5 700 2 500 112 924 346 903 167 314

Total: Gauteng Municipalities 190 352 42 431 44 763 20 946 21 166 21 350 - - - 328 299 644 051 668 924 7 200 8 450 4 500 546 797 716 098 739 537
 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
(SCHEDULE 6, PART B)

Integrated National Electrification Programme Neighbourhood Development Partnership Grant

Water Services Infrastructure Grant Regional Bulk Infrastructure Grant Municipal Systems Improvement Grant SUB-TOTAL: INDIRECT
Grant (Eskom) (Technical Assistance)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

A ETH eThekwini 7 757 26 590 28 052 2 950 1 900 2 400 - - - - - - - - - 10 707 28 490 30 452

B KZN212 uMdoni 50 390 27 696 29 219 - - - - - - - - - 1 055 - - 51 445 27 696 29 219

B KZN213 uMzumbe 31 084 49 617 52 346 - - - - - - - - - - - - 31 084 49 617 52 346
B KZN214 uMuziwabantu - - - - - - - - - - - - - - - - - -
B KZN216 Ray Nkonyeni 9 254 25 822 27 242 - - - - - - - - - 2 755 1 700 1 800 12 009 27 522 29 042
C DC21 Ugu District Municipality - - - - - - - - - - - - - - - - - -
Total: Ugu Municipalities 90 728 103 135 108 807 - - - - - - - - - 3 810 1 700 1 800 94 538 104 835 110 607

B KZN221 uMshwathi 13 357 1 076 1 135 - - - - - - - - - - - - 13 357 1 076 1 135

B KZN222 uMngeni - - - - - - - - - - - - - - - - - -
B KZN223 Mpofana - 9 991 10 540 - - - - - - - - - - - - - 9 991 10 540
B KZN224 iMpendle - - - - - - - - - - - - - - - - - -
B KZN225 Msunduzi 469 31 195 31 856 1 334 2 150 2 400 - - - - - - - - - 1 803 33 345 34 256
B KZN226 Mkhambathini 1 840 - - - - - - - - - - - - - - 1 840 - -
B KZN227 Richmond - - - - - - - - - - - - - - - - - -
C DC22 uMgungundlovu District Municipality - - - - - - - - - - - - - - - - - -
Total: uMgungundlovu Municipalities 15 666 42 262 43 532 1 334 2 150 2 400 - - - - - - - - - 17 000 44 412 45 932

B KZN235 Okhahlamba - 1 395 1 472 - - - - - - - - - - - - - 1 395 1 472

B KZN237 iNkosi Langalibalele 10 404 10 310 10 877 - - - - - - - - - 1 055 - - 11 459 10 310 10 877
B KZN238 Alfred Duma 83 102 39 240 41 398 - - - - - - - - - 2 755 1 700 1 800 85 857 40 940 43 198
C DC23 uThukela District Municipality - - - - - - - - - - - - - - - - - -
Total: uThukela Municipalities 93 506 50 945 53 747 - - - - - - - - - 3 810 1 700 1 800 97 316 52 645 55 547

B KZN241 eNdumeni - - - - - - - - - - - - 1 700 1 700 1 800 1 700 1 700 1 800

B KZN242 Nquthu 37 517 55 314 58 357 - - - - - - - - - - - - 37 517 55 314 58 357
B KZN244 uMsinga 64 059 2 767 2 919 - - - - - - - - - - - - 64 059 2 767 2 919
B KZN245 uMvoti 21 358 1 141 1 203 - - - - - - - - - - - - 21 358 1 141 1 203
260

C DC24 uMzinyathi District Municipality - - - - - - - - - - - - - - - - - -

Total: uMzinyathi Municipalities 122 934 59 222 62 479 - - - - - - - - - 1 700 1 700 1 800 124 634 60 922 64 279

B KZN252 Newcastle 5 052 34 439 36 333 200 200 200 - - - - - - - 2 750 2 000 5 252 37 389 38 533
B KZN253 eMadlangeni 2 010 - - - - - - - - - - - - - - 2 010 - -
B KZN254 Dannhauser 8 945 3 139 3 312 - - - - - - - - - - - - 8 945 3 139 3 312
C DC25 Amajuba District Municipality - - - - - - - - - - - - - - - - - -
Total: Amajuba Municipalities 16 007 37 578 39 645 200 200 200 - - - - - - - 2 750 2 000 16 207 40 528 41 845

B KZN261 eDumbe 1 962 6 540 6 900 - - - - - - - - - - - - 1 962 6 540 6 900

B KZN262 uPhongolo 17 857 - - - - - - - - - - - - - - 17 857 - -
B KZN263 AbaQulusi 1 021 18 519 19 537 - - - - - - - - - 1 700 1 700 1 800 2 721 20 219 21 337
B KZN265 Nongoma 380 39 597 41 775 - - - - - - - - - - - - 380 39 597 41 775
B KZN266 Ulundi 15 228 10 097 10 652 - - - - - - - - - - - - 15 228 10 097 10 652
C DC26 Zululand District Municipality - - - - - - - 24 000 - - - - - - - - 24 000 -
Total: Zululand Municipalities 36 448 74 753 78 864 - - - - 24 000 - - - - 1 700 1 700 1 800 38 148 100 453 80 664

B KZN271 uMhlabuyalingana 100 554 93 466 98 607 - - - - - - - - - - - - 100 554 93 466 98 607
B KZN272 Jozini 134 436 80 355 84 775 - - - - - - - - - - - - 134 436 80 355 84 775
B KZN275 Mtubatuba 37 801 23 798 25 107 - - - - - - - - - - - - 37 801 23 798 25 107
B KZN276 Big Five Hlabisa 27 496 18 099 19 095 - - - - - - - - - - - - 27 496 18 099 19 095
C DC27 uMkhanyakude District Municipality - - - - - - - - - 30 000 - - - - - 30 000 - -
Total: uMkhanyakude Municipalities 300 287 215 719 227 583 - - - - - - 30 000 - - - - - 330 287 215 719 227 583

B KZN281 uMfolozi 888 - - - - - - - - - - - 1 055 - - 1 943 - -

B KZN282 uMhlathuze 3 574 12 106 12 772 - - - - - - - - - 3 055 500 200 6 629 12 606 12 972
B KZN284 uMlalazi 7 726 41 329 43 602 - - - - - - - - - 1 700 1 700 1 800 9 426 43 029 45 402
B KZN285 Mthonjaneni - 538 568 - - - - - - - - - - - - - 538 568
B KZN286 Nkandla 6 620 16 807 17 731 - - - - - - - - - - - - 6 620 16 807 17 731
C DC28 King Cetshwayo District Municipality - - - - - - - - - - - - - - - - - -
Total: King Cetshwayo Municipalities 18 808 70 780 74 673 - - - - - - - - - 5 810 2 200 2 000 24 618 72 980 76 673

B KZN291 Mandeni 1 766 65 753 69 369 - - - - - - - - - - - - 1 766 65 753 69 369

B KZN292 KwaDukuza 7 200 3 242 3 420 - - - - - - - - - - - 2 750 7 200 3 242 6 170
B KZN293 Ndwedwe 58 085 72 596 76 589 - - - - - - - - - - - - 58 085 72 596 76 589
B KZN294 Maphumulo 45 704 71 674 75 616 - - - - - - - - - - - - 45 704 71 674 75 616
C DC29 iLembe District Municipality - - - - - - - - - - - - - - - - - -
Total: iLembe Municipalities 112 755 213 264 224 993 - - - - - - - - - - - 2 750 112 755 213 264 227 743

B KZN433 Greater Kokstad 9 602 - - - - - - - - - - - - - - 9 602 - -

B KZN434 uBuhlebezwe 19 288 2 982 3 146 - - - - - - - - - - - - 19 288 2 982 3 146
B KZN435 uMzimkhulu 41 085 17 135 18 077 - - - - - - - - - 1 700 1 700 1 800 42 785 18 835 19 877
B KZN436 Dr Nkosazana Dlamini Zuma 417 14 166 14 945 - - - - - - - - - - - - 417 14 166 14 945
C DC43 Harry Gwala District Municipality - - - - - - - - - - - - - - - - - -
Total: Harry Gwala Municipalities 70 392 34 283 36 169 - - - - - - - - - 1 700 1 700 1 800 72 092 35 983 37 969

Total: KwaZulu-Natal Municipalities 885 288 928 529 978 543 4 484 4 250 5 000 - 24 000 - 30 000 - - 18 530 13 450 15 750 938 302 970 229 999 293
 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
(SCHEDULE 6, PART B)

Integrated National Electrification Programme Neighbourhood Development Partnership Grant

Water Services Infrastructure Grant Regional Bulk Infrastructure Grant Municipal Systems Improvement Grant SUB-TOTAL: INDIRECT
Grant (Eskom) (Technical Assistance)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani 14 766 66 961 70 644 - - - - - - - - - - - - 14 766 66 961 70 644

B LIM332 Greater Letaba 21 691 21 832 23 033 - - - - - - - - - - - - 21 691 21 832 23 033
B LIM333 Greater Tzaneen 12 488 47 538 50 153 - - - - - - - - - - - 2 750 12 488 47 538 52 903
B LIM334 Ba-Phalaborwa 16 447 15 482 16 334 - - - - - - - - - - - - 16 447 15 482 16 334
B LIM335 Maruleng 12 349 18 219 19 221 - - - - - - - - - - - - 12 349 18 219 19 221
C DC33 Mopani District Municipality - - - - - - - - - 332 927 209 028 329 612 - - - 332 927 209 028 329 612
Total: Mopani Municipalities 77 741 170 033 179 385 - - - - - - 332 927 209 028 329 612 - - 2 750 410 668 379 061 511 747

B LIM341 Musina 12 742 28 034 29 576 - - - - - - - - - 2 755 1 700 1 800 15 497 29 734 31 376
B LIM343 Thulamela 32 222 24 253 25 587 - - - - - - - - - 3 805 2 000 500 36 027 26 253 26 087
B LIM344 Makhado 29 856 33 967 35 835 - - - - - - - - - 1 055 - - 30 911 33 967 35 835
B LIM345 Collins Chabane 25 750 - - - - - - - - - - - 2 761 1 700 1 800 28 511 1 700 1 800
C DC34 Vhembe District Municipality - - - - - - - - - 120 000 60 000 80 000 - - - 120 000 60 000 80 000
Total: Vhembe Municipalities 100 570 86 254 90 998 - - - - - - 120 000 60 000 80 000 10 376 5 400 4 100 230 946 151 654 175 098

B LIM351 Blouberg 18 146 28 636 30 211 - - - - - - - - - 1 055 - - 19 201 28 636 30 211

B LIM353 Molemole 13 699 22 126 23 343 - - - - - - - - - 2 755 1 700 1 800 16 454 23 826 25 143
B LIM354 Polokwane 61 768 70 438 74 312 200 1 083 1 200 - 100 000 187 556 - - - 3 055 500 200 65 023 172 021 263 268
B LIM355 Lepele-Nkumpi 14 182 18 230 19 232 - - - - - - - - - - - - 14 182 18 230 19 232
C DC35 Capricorn District Municipality - - - - - - - - - - 70 000 85 000 - - - - 70 000 85 000
Total: Capricorn Municipalities 107 795 139 430 147 098 200 1 083 1 200 - 100 000 187 556 - 70 000 85 000 6 865 2 200 2 000 114 860 312 713 422 854

B LIM361 Thabazimbi 128 3 653 3 853 - - - - 80 000 80 000 - - - - - - 128 83 653 83 853
B LIM362 Lephalale 9 330 71 031 74 938 - - - - 20 000 30 000 - - - - - 2 750 9 330 91 031 107 688
B LIM366 Bela-Bela 144 1 654 1 745 - - - - - - - - - - - - 144 1 654 1 745
B LIM367 Mogalakwena 39 915 95 324 100 567 - - - - - - 70 000 183 558 195 000 - - - 109 915 278 882 295 567
B LIM368 Modimolle-Mookgophong - 3 269 3 448 - - - - - - - - - 1 055 - - 1 055 3 269 3 448
261

C DC36 Waterberg District Municipality - - - - - - - - - - - - - - - - - -

Total: Waterberg Municipalities 49 517 174 931 184 552 - - - - 100 000 110 000 70 000 183 558 195 000 1 055 - 2 750 120 572 458 489 492 302

B LIM471 Ephraim Mogale 11 770 7 901 8 335 - - - - - - - - - - - - 11 770 7 901 8 335

B LIM472 Elias Motsoaledi 21 003 8 332 8 790 - - - - - - - - - - - - 21 003 8 332 8 790
B LIM473 Makhuduthamaga 40 305 60 895 64 244 - - - - - - - - - 1 700 1 700 1 800 42 005 62 595 66 044
B LIM476 Fetakgomo Tubatse 49 128 35 342 37 286 - - - - - - - - - 1 055 - - 50 183 35 342 37 286
C DC47 Sekhukhune District Municipality - - - - - - - - - 245 000 260 000 160 000 - - - 245 000 260 000 160 000
Total: Sekhukhune Municipalities 122 206 112 470 118 656 - - - - - - 245 000 260 000 160 000 2 755 1 700 1 800 369 961 374 170 280 456

Total: Limpopo Municipalities 457 829 683 117 720 689 200 1 083 1 200 - 200 000 297 556 767 927 782 586 849 612 21 051 9 300 13 400 1 247 007 1 676 086 1 882 457

MPUMALANGA

B MP301 Chief Albert Luthuli 18 029 16 744 17 665 - - - - - - - - - - - - 18 029 16 744 17 665
B MP302 Msukaligwa 15 438 7 196 7 592 - - - - - - - - - - - - 15 438 7 196 7 592
B MP303 Mkhondo 32 401 37 687 39 760 - - - - - - - - - - - - 32 401 37 687 39 760
B MP304 Dr Pixley ka Isaka Seme 11 855 3 035 3 202 - - - - - - - - - - - - 11 855 3 035 3 202
B MP305 Lekwa - 21 481 22 662 - - - - - - - - - - - - - 21 481 22 662
B MP306 Dipaleseng 1 200 46 839 49 415 - - - - - - - - - - - - 1 200 46 839 49 415
B MP307 Govan Mbeki 875 21 901 23 105 - - - - 13 000 - - - - 1 700 4 450 3 800 2 575 39 351 26 905
C DC30 Gert Sibande District Municipality - - - - - - - - - - - - - - - - - -
Total: Gert Sibande Municipalities 79 798 154 882 163 401 - - - - 13 000 - - - - 1 700 4 450 3 800 81 498 172 332 167 201

B MP311 Victor Khanye 110 4 064 4 287 - - - - - - 15 000 30 000 15 000 - - - 15 110 34 064 19 287
B MP312 Emalahleni - - - 200 1 083 1 200 - - - - - - - - - 200 1 083 1 200
B MP313 Steve Tshwete 7 363 3 202 3 378 - - - - - - - - - 2 750 2 000 500 10 113 5 202 3 878
B MP314 Emakhazeni 5 672 1 175 1 239 - - - - - - - - - 1 700 1 700 1 800 7 372 2 875 3 039
B MP315 Thembisile Hani 25 272 45 175 47 660 - - - - - - 75 000 110 000 138 366 - - - 100 272 155 175 186 026
B MP316 Dr JS Moroka 7 247 19 923 21 019 - - - - - - - - - 1 700 1 700 1 800 8 947 21 623 22 819
C DC31 Nkangala District Municipality - - - - - - - - - - - - - - - - - -
Total: Nkangala Municipalities 45 664 73 538 77 583 200 1 083 1 200 - - - 90 000 140 000 153 366 6 150 5 400 4 100 142 014 220 021 236 249

B MP321 Thaba Chweu 2 466 9 204 9 710 - - - - - - - - - - - - 2 466 9 204 9 710

B MP324 Nkomazi 26 878 23 330 24 613 - - - - - - 100 295 121 863 74 000 - - 2 750 127 173 145 193 101 363
B MP325 Bushbuckridge 59 352 143 113 149 928 - - - - - - 7 000 - - 1 700 1 700 4 550 68 052 144 813 154 478
B MP326 City of Mbombela 58 619 49 436 52 155 200 150 200 - - - 14 000 30 000 70 000 1 055 - - 73 874 79 586 122 355
C DC32 Ehlanzeni District Municipality - - - - - - - - - - - - - - - - - -
Total: Ehlanzeni Municipalities 147 315 225 082 236 406 200 150 200 - - - 121 295 151 863 144 000 2 755 1 700 7 300 271 565 378 795 387 906

Total: Mpumalanga Municipalities 272 777 453 503 477 389 400 1 233 1 400 - 13 000 - 211 295 291 863 297 366 10 605 11 550 15 200 495 077 771 149 791 355
 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
(SCHEDULE 6, PART B)

Integrated National Electrification Programme Neighbourhood Development Partnership Grant

Water Services Infrastructure Grant Regional Bulk Infrastructure Grant Municipal Systems Improvement Grant SUB-TOTAL: INDIRECT
Grant (Eskom) (Technical Assistance)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

NORTHERN CAPE

B NC061 Richtersveld - - - - - - - - - 10 000 21 782 25 000 - - - 10 000 21 782 25 000

B NC062 Nama Khoi 3 078 - - - - - 171 - - 171 - - 1 700 1 700 1 800 5 120 1 700 1 800
B NC064 Kamiesberg - - - - - - - - - - - - - - - - - -
B NC065 Hantam - 2 364 2 494 - - - - - - - - - - - - - 2 364 2 494
B NC066 Karoo Hoogland - - - - - - - - - - - - - - - - - -
B NC067 Khâi-Ma - - - - - - - - - - - - 1 700 1 700 1 800 1 700 1 700 1 800
C DC6 Namakwa District Municipality - - - - - - - - - - - - - - - - - -
Total: Namakwa Municipalities 3 078 2 364 2 494 - - - 171 - - 10 171 21 782 25 000 3 400 3 400 3 600 16 820 27 546 31 094

B NC071 Ubuntu 83 - - - - - 13 970 - - 13 970 - - 1 700 1 700 1 800 29 723 1 700 1 800
B NC072 Umsobomvu 415 403 425 - - - - - - - - - - - - 415 403 425
B NC073 Emthanjeni 64 - - - - - 195 - - 27 405 6 796 5 000 1 700 1 700 1 800 29 364 8 496 6 800
B NC074 Kareeberg - - - - - - - - - - - - - - - - - -
B NC075 Renosterberg 1 587 - - - - - 592 - - 592 - - - - - 2 771 - -
B NC076 Thembelihle - - - - - - - - - - - - 1 700 1 700 1 800 1 700 1 700 1 800
B NC077 Siyathemba 5 788 - - - - - 5 949 - - 5 948 - - - - - 17 685 - -
B NC078 Siyancuma 48 1 321 1 394 - - - 38 899 - - 50 898 15 000 12 000 1 700 1 700 1 800 91 545 18 021 15 194
C DC7 Pixley Ka Seme District Municipality - - - - - - - - - - - - - - - - - -
Total: Pixley Ka Seme Municipalities 7 985 1 724 1 819 - - - 59 605 - - 98 813 21 796 17 000 6 800 6 800 7 200 173 203 30 320 26 019

B NC082 !Kai !Garib 7 320 619 653 - - - - - - - 10 000 12 125 1 700 1 700 1 800 9 020 12 319 14 578
B NC084 !Kheis 616 - - - - - - - - - - - - - - 616 - -
B NC085 Tsantsabane 159 8 561 9 032 - - - 12 329 - - 7 329 - - 1 700 1 700 1 800 21 517 10 261 10 832
B NC086 Kgatelopele - - - - - - - - - - - - - - - - - -
B NC087 Dawid Kruiper 3 326 172 181 - - - 52 210 - - 20 000 31 422 25 000 1 055 - - 76 591 31 594 25 181
C DC8 Z.F. Mgcawu District Municipality - - - - - - - - - - - - - - - - - -
Total: Z.F. Mgcawu Municipalities 11 421 9 352 9 866 - - - 64 539 - - 27 329 41 422 37 125 4 455 3 400 3 600 107 744 54 174 50 591

B NC091 Sol Plaatjie - 16 949 17 881 200 200 200 41 000 - - - - - 2 750 2 000 500 43 950 19 149 18 581
B NC092 Dikgatlong 319 8 016 8 457 - - - - - - 5 000 - - - - - 5 319 8 016 8 457
262

B NC093 Magareng - 24 185 22 352 - - - - - - 10 137 - - - - - 10 137 24 185 22 352

B NC094 Phokwane 1 596 - - - - - - - - - - - - - - 1 596 - -
C DC9 Frances Baard District Municipality - - - - - - - - - - - - - - - - - -
Total: Frances Baard Municipalities 1 915 49 150 48 690 200 200 200 41 000 - - 15 137 - - 2 750 2 000 500 61 002 51 350 49 390

B NC451 Joe Morolong 47 910 11 549 12 184 - - - - - - - - - - - - 47 910 11 549 12 184

B NC452 Ga-Segonyana 83 853 60 782 64 125 - - - - - - - - - - - - 83 853 60 782 64 125
B NC453 Gamagara 6 340 72 358 76 337 - - - - - - - - - - - - 6 340 72 358 76 337
C DC45 John Taolo Gaetsewe District Municipality - - - - - - - - - - - - - - - - - -
Total: John Taolo Gaetsewe Municipalities 138 103 144 689 152 647 - - - - - - - - - - - - 138 103 144 689 152 647

Total: Northern Cape Municipalities 162 502 207 279 215 516 200 200 200 165 315 - - 151 450 85 000 79 125 17 405 15 600 14 900 496 872 308 079 309 741

NORTH WEST

B NW371 Moretele 22 997 16 256 17 150 - - - - - - 18 000 30 000 36 375 - - - 40 997 46 256 53 525
B NW372 Madibeng 80 312 59 322 62 585 - - - - 180 000 180 000 80 000 70 000 135 000 - - - 160 312 309 322 377 585
B NW373 Rustenburg 13 756 55 503 58 555 200 200 200 - - - - - - - - - 13 956 55 703 58 755
B NW374 Kgetlengrivier 148 128 135 - - - - - - 50 000 - - 1 700 1 700 1 800 51 848 1 828 1 935
B NW375 Moses Kotane 9 743 12 765 13 467 - - - - - - - - - - - - 9 743 12 765 13 467
C DC37 Bojanala Platinum District Municipality - - - - - - - - - - - - - - - - - -
Total: Bojanala Platinum Municipalities 126 956 143 974 151 892 200 200 200 - 180 000 180 000 148 000 100 000 171 375 1 700 1 700 1 800 276 856 425 874 505 267

B NW381 Ratlou 13 514 13 131 13 853 - - - - - - - - - - - - 13 514 13 131 13 853

B NW382 Tswaing 3 284 6 223 5 510 - - - - - - - - - 1 700 1 700 1 800 4 984 7 923 7 310
B NW383 Mafikeng 49 181 14 062 14 835 - - - - - - - - - - - - 49 181 14 062 14 835
B NW384 Ditsobotla 867 6 317 6 664 - - - - - - - - - - - - 867 6 317 6 664
B NW385 Ramotshere Moiloa 11 511 7 633 8 053 - - - - - - - - - - - - 11 511 7 633 8 053
C DC38 Ngaka Modiri Molema District Municipality - - - - - - - 145 233 200 000 103 000 98 270 80 000 - - - 103 000 243 503 280 000
Total: Ngaka Modiri Molema Municipalities 78 357 47 365 48 915 - - - - 145 233 200 000 103 000 98 270 80 000 1 700 1 700 1 800 183 057 292 568 330 715

B NW392 Naledi 148 2 157 2 275 - - - - - - - - - - - - 148 2 157 2 275

B NW393 Mamusa 13 646 20 813 21 957 - - - - - - - - - 1 700 1 700 1 800 15 346 22 513 23 757
B NW394 Greater Taung 32 403 14 119 14 896 - - - - - - - - - - - - 32 403 14 119 14 896
B NW396 Lekwa-Teemane 148 96 101 - - - - - - - - - - - - 148 96 101
B NW397 Kagisano-Molopo 22 690 29 300 30 912 - - - - - - - - - - - - 22 690 29 300 30 912
C DC39 Dr Ruth Segomotsi Mompati District Municipality - - - - - - - - - - - - - - - - - -
Total: Dr Ruth Segomotsi Mompati Municipalities 69 035 66 485 70 141 - - - - - - - - - 1 700 1 700 1 800 70 735 68 185 71 941

B NW403 City of Matlosana 1 701 2 947 3 110 150 1 200 1 200 - - - - - - - - - 1 851 4 147 4 310
B NW404 Maquassi Hills 754 2 931 3 093 - - - - - - - - - 1 700 1 700 1 800 2 454 4 631 4 893
B NW405 JB Marks 4 822 278 293 - - - - - - 12 386 50 000 - 1 055 - - 18 263 50 278 293
C DC40 Dr Kenneth Kaunda District Municipality - - - - - - - - - - - - - - - - - -
Total: Dr Kenneth Kaunda Municipalities 7 277 6 157 6 495 150 1 200 1 200 - - - 12 386 50 000 - 2 755 1 700 1 800 22 568 59 057 9 495

Total: North West Municipalities 281 625 263 981 277 444 350 1 400 1 400 - 325 233 380 000 263 386 248 270 251 375 7 855 6 800 7 200 553 216 845 684 917 419
 ANNEXURE W6

ALLOCATIONS-IN-KIND TO MUNICIPALITIES
(SCHEDULE 6, PART B)

Integrated National Electrification Programme Neighbourhood Development Partnership Grant

Water Services Infrastructure Grant Regional Bulk Infrastructure Grant Municipal Systems Improvement Grant SUB-TOTAL: INDIRECT
Grant (Eskom) (Technical Assistance)
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

Category Municipality 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

WESTERN CAPE

A CPT City of Cape Town 85 105 37 880 39 963 150 150 - - - - - - - - - - 85 255 38 030 39 963

B WC011 Matzikama - 58 62 - - - - - - 9 949 15 000 29 000 1 700 1 700 1 800 11 649 16 758 30 862
B WC012 Cederberg 8 551 14 736 15 547 - - - - - - 22 732 - - 1 700 1 700 1 800 32 983 16 436 17 347
B WC013 Bergrivier - 81 86 - - - - - - - - - - - - - 81 86
B WC014 Saldanha Bay 9 878 58 62 - - - - - - - 5 000 1 000 - - - 9 878 5 058 1 062
B WC015 Swartland 3 060 726 766 - - - - - - - - - - - - 3 060 726 766
C DC1 West Coast District Municipality - - - - - - - - - - - - - - - - - -
Total: West Coast Municipalities 21 489 15 661 16 522 - - - - - - 32 681 20 000 30 000 3 400 3 400 3 600 57 570 39 061 50 122

B WC022 Witzenberg - 110 116 - - - - - - - - - - - - - 110 116

B WC023 Drakenstein - - - - - - - - - - - - 2 750 2 000 500 2 750 2 000 500
B WC024 Stellenbosch - - - - - - - - - - - - - 2 750 3 800 - 2 750 3 800
B WC025 Breede Valley - 11 584 12 221 - - - - - - - - - - - - - 11 584 12 221
B WC026 Langeberg - 22 23 - - - - - - - - - - - - - 22 23
C DC2 Cape Winelands District Municipality - - - - - - - - - - - - - - - - - -
Total: Cape Winelands Municipalities - 11 716 12 360 - - - - - - - - - 2 750 4 750 4 300 2 750 16 466 16 660

B WC031 Theewaterskloof 13 660 5 399 4 641 - - - - - - - - - - - - 13 660 5 399 4 641

B WC032 Overstrand - - - - - - - - - - - - - - - - - -
B WC033 Cape Agulhas - - - - - - - - - - - - - - - - - -
B WC034 Swellendam - 23 24 - - - - - - - - - 1 700 1 700 1 800 1 700 1 723 1 824
C DC3 Overberg District Municipality - - - - - - - - - - - - - - - - - -
Total: Overberg Municipalities 13 660 5 422 4 665 - - - - - - - - - 1 700 1 700 1 800 15 360 7 122 6 465

B WC041 Kannaland - - - - - - - - - 25 000 47 000 45 000 - - - 25 000 47 000 45 000

B WC042 Hessequa - 110 116 - - - - - - - - - - - - - 110 116
263

B WC043 Mossel Bay 2 279 1 421 1 499 - - - - - - - - - - - - 2 279 1 421 1 499

B WC044 George - 88 93 - - - - - - - - - - 2 750 3 500 - 2 838 3 593
B WC045 Oudtshoorn - 290 306 - - - - - - 15 000 30 000 20 000 - - - 15 000 30 290 20 306
B WC047 Bitou - - - - - - - - - - - - - - - - - -
B WC048 Knysna - - - - - - - - - - - - - - - - - -
C DC4 Eden District Municipality - - - - - - - - - - - - - - - - - -
Total: Eden Municipalities 2 279 1 909 2 014 - - - - - - 40 000 77 000 65 000 - 2 750 3 500 42 279 81 659 70 514

B WC051 Laingsburg - 21 22 - - - - - - - - - 1 700 1 700 1 800 1 700 1 721 1 822

B WC052 Prince Albert - 22 23 - - - - - - - - - 1 700 1 700 1 800 1 700 1 722 1 823
B WC053 Beaufort West - 272 287 - - - - - - - 5 000 15 000 - - - - 5 272 15 287
C DC5 Central Karoo District Municipality - - - - - - - - - - - - - - - - - -
Total: Central Karoo Municipalities - 315 333 - - - - - - - 5 000 15 000 3 400 3 400 3 600 3 400 8 715 18 933

Total: Western Cape Municipalities 122 533 72 903 75 858 150 150 - - - - 72 681 102 000 110 000 11 250 16 000 16 800 206 614 191 053 202 658

Unallocated - - - - - - - - - - - - - 20 662 18 698 - 20 662 18 698

National Total 3 262 031 3 432 453 3 621 488 29 353 30 997 32 702 608 175 642 233 677 556 2 880 922 3 037 295 3 204 346 115 116 121 562 128 248 6 895 597 7 264 540 7 664 340
 ANNEXURE W7
264

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

(National and Municipal Financial Years)

 265

ANNEXURE W7

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

TOTAL ALLOCATIONS TO
EQUITABLE SHARE1
MUNICIPALITIES
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

A BUF Buffalo City 778 048 844 411 918 677 1 708 902 1 970 715 2 130 273
A NMA Nelson Mandela Bay 939 530 1 021 661 1 119 805 2 327 257 2 572 479 2 660 434

B EC101 Dr Beyers Naude 83 278 90 038 97 079 123 266 126 843 147 042
B EC102 Blue Crane Route 49 012 52 907 56 634 126 899 78 082 79 384
B EC104 Makana 85 578 92 675 100 381 187 462 179 539 157 950
B EC105 Ndlambe 88 241 95 785 104 202 123 793 132 384 141 204
B EC106 Sundays River Valley 71 971 79 108 86 898 132 636 130 044 161 130
B EC108 Kouga 113 151 124 344 137 852 158 886 165 631 180 828
B EC109 Kou-Kamma 45 406 48 983 53 004 76 340 75 937 91 913
C DC10 Sarah Baartman District Municipality 88 342 92 787 96 772 92 582 96 159 100 281
Total: Sarah Baartman Municipalities 624 979 676 627 732 822 1 021 864 984 619 1 059 733

B EC121 Mbhashe 225 391 243 648 260 961 428 924 365 482 385 338
B EC122 Mnquma 234 368 252 875 270 104 365 553 373 276 399 739
B EC123 Great Kei 38 154 41 775 44 455 58 853 61 843 64 900
B EC124 Amahlathi 97 114 103 450 110 129 142 868 153 123 158 533
B EC126 Ngqushwa 75 488 80 838 86 067 110 673 112 837 126 318
B EC129 Raymond Mhlaba 156 192 170 046 182 203 214 978 243 496 255 038
C DC12 Amathole District Municipality 785 546 833 685 899 283 1 390 903 1 391 463 1 521 216
Total: Amathole Municipalities 1 612 253 1 726 317 1 853 202 2 712 752 2 701 520 2 911 082

B EC131 Inxuba Yethemba 39 507 42 339 45 481 67 740 77 123 76 767

B EC135 Intsika Yethu 147 779 155 357 165 527 219 049 234 141 253 356
B EC136 Emalahleni 115 774 120 890 129 098 177 559 176 397 186 367
B EC137 Engcobo 136 131 144 889 154 753 191 129 217 474 238 638
B EC138 Sakhisizwe 61 718 66 602 71 145 105 338 102 303 111 535
B EC139 Enoch Mgijima 164 680 176 220 189 777 254 448 251 492 279 145
C DC13 Chris Hani District Municipality 524 527 542 195 583 613 1 038 044 966 899 1 032 602
Total: Chris Hani Municipalities 1 190 116 1 248 492 1 339 394 2 053 307 2 025 829 2 178 410

B EC141 Elundini 138 382 149 117 160 009 267 374 263 726 279 193
B EC142 Senqu 136 434 146 559 156 973 229 224 214 113 229 677
B EC145 Walter Sisulu 52 677 57 413 62 187 84 010 86 105 92 097
C DC14 Joe Gqabi District Municipality 258 283 273 008 295 103 476 596 557 975 595 915
Total: Joe Gqabi Municipalities 585 776 626 097 674 272 1 057 204 1 121 919 1 196 882

B EC153 Ngquza Hill 227 562 251 396 271 260 329 429 389 944 418 273
B EC154 Port St Johns 135 729 149 561 161 091 232 232 229 544 244 950
B EC155 Nyandeni 234 532 256 041 275 422 342 925 360 182 374 740
B EC156 Mhlontlo 165 930 179 871 191 665 231 906 245 891 254 015
B EC157 King Sabata Dalindyebo 292 112 322 658 350 127 458 321 485 422 510 764
C DC15 O.R. Tambo District Municipality 791 526 853 638 925 329 1 820 851 1 878 986 2 015 994
Total: O.R. Tambo Municipalities 1 847 391 2 013 165 2 174 894 3 415 664 3 589 969 3 818 736

B EC441 Matatiele 207 642 229 612 247 823 372 201 390 204 412 893
B EC442 Umzimvubu 193 075 212 895 228 698 322 135 360 695 376 668
B EC443 Mbizana 230 525 254 380 275 837 352 875 367 238 391 044
B EC444 Ntabankulu 108 982 119 728 128 076 285 773 264 887 286 001
C DC44 Alfred Nzo District Municipality 510 344 555 404 602 513 1 081 657 1 071 703 1 210 420
Total: Alfred Nzo Municipalities 1 250 568 1 372 019 1 482 947 2 414 641 2 454 727 2 677 026

Total: Eastern Cape Municipalities 8 828 661 9 528 789 10 296 013 16 711 591 17 421 776 18 632 575
 266

ANNEXURE W7

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

TOTAL ALLOCATIONS TO
EQUITABLE SHARE1
MUNICIPALITIES
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

FREE STATE

A MAN Mangaung 683 500 735 867 804 822 1 834 204 1 973 440 2 053 268

B FS161 Letsemeng 58 082 63 091 68 025 112 902 131 637 119 768
B FS162 Kopanong 77 880 84 441 90 521 129 519 159 611 166 644
B FS163 Mohokare 61 723 67 819 73 566 171 412 143 237 140 045
C DC16 Xhariep District Municipality 40 544 43 116 45 257 45 042 47 178 49 175
Total: Xhariep Municipalities 238 229 258 467 277 369 458 875 481 662 475 632

B FS181 Masilonyana 107 442 117 395 127 406 159 669 216 065 259 338
B FS182 Tokologo 49 390 53 961 57 977 207 859 149 787 165 373
B FS183 Tswelopele 67 019 73 330 78 787 114 115 115 033 102 899
B FS184 Matjhabeng 459 037 501 919 544 687 705 950 677 450 786 597
B FS185 Nala 111 110 120 679 128 442 152 208 164 546 173 601
C DC18 Lejweleputswa District Municipality 121 164 127 452 132 806 125 445 130 867 136 362
Total: Lejweleputswa Municipalities 915 162 994 736 1 070 105 1 465 246 1 453 748 1 624 171

B FS191 Setsoto 173 927 190 361 205 219 620 191 325 300 382 653
B FS192 Dihlabeng 147 861 163 327 178 687 223 783 245 134 268 865
B FS193 Nketoana 87 543 96 073 104 320 502 328 171 903 199 352
B FS194 Maluti-a-Phofung 538 719 591 738 641 031 798 650 871 052 942 506
B FS195 Phumelela 68 083 74 619 80 558 143 719 148 104 148 068
B FS196 Mantsopa 74 811 81 889 88 548 138 616 137 798 115 795
C DC19 Thabo Mofutsanyana District Municipality 107 303 114 283 120 222 120 208 126 615 133 134
Total: Thabo Mofutsanyana Municipalities 1 198 247 1 312 290 1 418 585 2 547 495 2 025 905 2 190 373

B FS201 Moqhaka 185 144 203 848 221 685 243 313 279 137 291 650
B FS203 Ngwathe 174 340 190 804 207 217 304 823 329 319 353 456
B FS204 Metsimaholo 163 296 182 247 202 871 276 778 288 296 330 396
B FS205 Mafube 86 279 94 776 102 789 145 617 172 672 166 011
C DC20 Fezile Dabi District Municipality 149 188 154 316 159 061 152 376 157 633 162 512
Total: Fezile Dabi Municipalities 758 247 825 991 893 623 1 122 907 1 227 056 1 304 024

Total: Free State Municipalities 3 793 385 4 127 351 4 464 504 7 428 727 7 161 812 7 647 468

GAUTENG

A EKU City of Ekurhuleni 3 145 138 3 478 292 3 848 841 6 088 049 6 385 139 6 935 646
A JHB City of Johannesburg 4 229 919 4 689 158 5 207 760 7 399 807 7 912 365 8 619 624
A TSH City of Tshwane 2 398 120 2 642 492 2 938 221 4 958 690 5 192 213 5 654 424

B GT421 Emfuleni 707 724 770 960 838 676 1 201 863 1 322 815 1 472 829
B GT422 Midvaal 97 192 107 139 118 994 213 924 182 557 300 371
B GT423 Lesedi 119 340 133 181 148 616 187 558 197 135 212 486
C DC42 Sedibeng District Municipality 258 891 268 120 276 650 263 577 271 700 280 379
Total: Sedibeng Municipalities 1 183 147 1 279 400 1 382 936 1 866 922 1 974 207 2 266 065

B GT481 Mogale City 369 809 408 061 451 269 571 697 606 634 690 715
B GT484 Merafong City 185 872 203 628 222 151 396 776 329 069 345 792
B GT485 Rand West City 274 916 302 974 332 695 476 589 830 520 685 634
C DC48 West Rand District Municipality 198 007 206 677 214 544 202 706 210 425 218 451
Total: West Rand Municipalities 1 028 604 1 121 340 1 220 659 1 647 768 1 976 648 1 940 592

Total: Gauteng Municipalities 11 984 928 13 210 682 14 598 417 21 961 236 23 440 572 25 416 351
 267

ANNEXURE W7

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

TOTAL ALLOCATIONS TO
EQUITABLE SHARE1
MUNICIPALITIES
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

A ETH eThekwini 2 893 016 3 160 624 3 473 156 5 973 128 6 305 571 6 833 953

B KZN212 uMdoni 118 563 129 120 140 015 219 660 203 294 216 262
B KZN213 uMzumbe 120 566 128 029 136 372 203 398 220 663 236 050
B KZN214 uMuziwabantu 82 521 89 202 95 883 118 574 120 842 131 830
B KZN216 Ray Nkonyeni 185 324 201 851 220 992 285 311 314 224 344 198
C DC21 Ugu District Municipality 435 877 461 838 503 224 734 543 802 562 863 517
Total: Ugu Municipalities 942 851 1 010 040 1 096 486 1 561 486 1 661 585 1 791 857

B KZN221 uMshwathi 91 820 99 895 107 919 145 716 138 212 149 579
B KZN222 uMngeni 60 165 66 484 73 599 93 581 94 793 105 897
B KZN223 Mpofana 32 003 35 036 37 655 53 835 62 993 69 918
B KZN224 iMpendle 32 649 35 023 37 278 47 281 52 107 58 167
B KZN225 Msunduzi 505 853 544 673 597 005 987 026 1 044 544 1 151 614
B KZN226 Mkhambathini 55 546 61 448 66 718 84 225 83 459 92 730
B KZN227 Richmond 62 473 68 308 74 229 94 537 94 650 101 782
C DC22 uMgungundlovu District Municipality 483 964 525 359 573 655 694 288 740 984 801 336
Total: uMgungundlovu Municipalities 1 324 473 1 436 226 1 568 058 2 200 489 2 311 742 2 531 024

B KZN235 Okhahlamba 110 874 122 106 131 270 150 985 158 705 170 752
B KZN237 iNkosi Langalibalele 155 907 172 809 187 318 223 372 228 280 249 427
B KZN238 Alfred Duma 206 663 227 893 246 582 386 783 340 016 369 614
C DC23 uThukela District Municipality 397 482 431 591 468 963 813 037 853 635 909 627
Total: uThukela Municipalities 870 926 954 399 1 034 133 1 574 177 1 580 636 1 699 420

B KZN241 eNdumeni 41 599 46 228 50 888 77 486 71 373 80 349

B KZN242 Nquthu 122 365 134 153 144 296 207 458 234 565 256 532
B KZN244 uMsinga 145 573 160 138 173 357 270 341 214 227 233 555
B KZN245 uMvoti 112 887 125 289 137 251 176 554 167 567 184 623
C DC24 uMzinyathi District Municipality 325 057 352 683 385 919 613 251 675 570 700 311
Total: uMzinyathi Municipalities 747 481 818 491 891 711 1 345 090 1 363 302 1 455 370

B KZN252 Newcastle 341 408 370 044 402 930 516 791 593 763 652 836
B KZN253 eMadlangeni 27 305 29 882 32 010 47 532 48 059 54 081
B KZN254 Dannhauser 82 343 89 630 96 080 115 588 116 435 124 070
C DC25 Amajuba District Municipality 148 705 160 591 173 889 278 753 294 000 314 880
Total: Amajuba Municipalities 599 761 650 147 704 909 958 664 1 052 257 1 145 867

B KZN261 eDumbe 66 301 72 956 78 528 102 398 115 978 127 129
B KZN262 uPhongolo 119 730 133 382 145 138 178 385 176 119 189 713
B KZN263 AbaQulusi 130 276 145 195 158 630 187 496 214 384 230 709
B KZN265 Nongoma 136 733 150 771 162 455 186 984 236 211 258 694
B KZN266 Ulundi 143 729 159 149 171 384 213 016 219 016 225 369
C DC26 Zululand District Municipality 424 766 463 503 505 418 901 298 907 046 953 654
Total: Zululand Municipalities 1 021 535 1 124 956 1 221 553 1 769 577 1 868 754 1 985 268

B KZN271 uMhlabuyalingana 145 676 162 295 177 240 303 442 307 579 329 471
B KZN272 Jozini 159 965 177 803 192 964 350 809 310 318 334 955
B KZN275 Mtubatuba 143 500 160 490 176 150 229 107 226 508 245 591
B KZN276 Big Five Hlabisa 94 296 105 320 114 832 148 488 154 176 167 771
C DC27 uMkhanyakude District Municipality 374 748 411 235 452 333 676 772 710 439 769 202
Total: uMkhanyakude Municipalities 918 185 1 017 143 1 113 519 1 708 618 1 709 021 1 846 989

B KZN281 uMfolozi 115 041 127 726 139 087 157 265 162 850 175 492
B KZN282 uMhlathuze 326 255 360 419 397 687 472 327 543 501 592 285
B KZN284 uMlalazi 165 378 181 320 195 938 235 894 275 999 292 625
B KZN285 Mthonjaneni 70 979 77 549 82 871 108 386 114 970 112 109
B KZN286 Nkandla 86 797 94 619 100 819 148 044 162 295 165 328
C DC28 King Cetshwayo District Municipality 476 842 514 705 559 228 848 332 852 666 969 519
Total: King Cetshwayo Municipalities 1 241 292 1 356 338 1 475 630 1 970 248 2 112 281 2 307 358

B KZN291 Mandeni 146 821 163 892 179 615 204 901 275 914 295 086
B KZN292 KwaDukuza 147 876 165 637 185 670 224 001 238 363 263 141
B KZN293 Ndwedwe 129 855 144 372 156 543 226 372 255 612 275 305
B KZN294 Maphumulo 81 102 88 689 94 568 163 805 190 983 202 449
C DC29 iLembe District Municipality 468 670 515 734 569 641 845 121 828 840 905 099
Total: iLembe Municipalities 974 324 1 078 324 1 186 037 1 664 200 1 789 711 1 941 079

B KZN433 Greater Kokstad 55 683 60 736 65 674 99 359 91 854 97 536

B KZN434 uBuhlebezwe 99 319 107 810 115 772 164 606 154 679 161 128
B KZN435 uMzimkhulu 169 032 184 935 199 963 273 577 265 043 279 429
B KZN436 Dr Nkosazana Dlamini Zuma 111 162 123 033 132 746 157 251 179 348 190 177
C DC43 Harry Gwala District Municipality 318 074 344 466 374 185 670 805 696 683 761 210
Total: Harry Gwala Municipalities 753 270 820 980 888 340 1 365 598 1 387 607 1 489 481

Total: KwaZulu-Natal Municipalities 12 287 114 13 427 668 14 653 532 22 091 275 23 142 465 25 027 665
 268

ANNEXURE W7

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

TOTAL ALLOCATIONS TO
EQUITABLE SHARE1
MUNICIPALITIES
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani 253 351 280 648 304 314 344 454 423 242 453 652
B LIM332 Greater Letaba 244 692 271 964 295 117 332 492 364 184 393 578
B LIM333 Greater Tzaneen 338 344 375 418 409 819 466 798 535 364 577 017
B LIM334 Ba-Phalaborwa 132 485 147 759 161 573 183 584 197 947 224 177
B LIM335 Maruleng 109 416 121 726 132 327 151 171 175 057 188 077
C DC33 Mopani District Municipality 840 762 918 021 1 005 282 1 730 485 1 696 011 1 937 591
Total: Mopani Municipalities 1 919 050 2 115 536 2 308 432 3 208 984 3 391 806 3 774 092

B LIM341 Musina 124 015 140 324 157 252 185 944 223 839 241 090
B LIM343 Thulamela 391 032 432 979 470 957 586 107 587 915 632 553
B LIM344 Makhado 316 259 349 723 381 094 454 755 491 607 529 951
B LIM345 Collins Chabane 327 068 361 343 392 029 459 408 463 419 502 696
C DC34 Vhembe District Municipality 910 477 994 153 1 091 706 1 584 452 1 623 633 1 775 274
Total: Vhembe Municipalities 2 068 851 2 278 522 2 493 038 3 270 666 3 390 413 3 681 564

B LIM351 Blouberg 167 730 182 071 195 348 243 340 282 791 300 018
B LIM353 Molemole 128 184 139 356 149 334 182 635 200 736 213 850
B LIM354 Polokwane 831 436 915 810 1 010 785 1 872 268 2 428 008 2 660 549
B LIM355 Lepele-Nkumpi 222 970 244 135 263 221 304 056 328 184 351 233
C DC35 Capricorn District Municipality 547 862 587 746 636 853 858 788 997 099 1 080 758
Total: Capricorn Municipalities 1 898 182 2 069 118 2 255 541 3 461 087 4 236 818 4 606 408

B LIM361 Thabazimbi 86 028 93 557 103 553 132 326 225 918 235 050
B LIM362 Lephalale 130 526 146 617 164 498 196 383 332 591 374 861
B LIM366 Bela-Bela 81 986 90 159 99 555 178 094 177 224 190 448
B LIM367 Mogalakwena 395 279 430 255 466 088 713 917 956 524 1 022 031
B LIM368 Modimolle-Mookgophong 100 804 109 080 118 015 204 821 243 907 259 497
C DC36 Waterberg District Municipality 122 853 129 261 135 047 125 986 132 521 138 437
Total: Waterberg Municipalities 917 476 998 929 1 086 756 1 551 527 2 068 685 2 220 325

B LIM471 Ephraim Mogale 129 676 141 749 153 984 178 078 185 773 200 591
B LIM472 Elias Motsoaledi 237 506 262 705 286 108 330 111 345 993 373 299
B LIM473 Makhuduthamaga 241 518 261 729 282 569 364 309 394 616 422 352
B LIM476 Fetakgomo Tubatse 361 513 405 334 446 874 515 484 537 645 595 020
C DC47 Sekhukhune District Municipality 711 481 767 769 843 333 1 491 774 1 577 175 1 585 541
Total: Sekhukhune Municipalities 1 681 694 1 839 286 2 012 868 2 879 756 3 041 202 3 176 804

Total: Limpopo Municipalities 8 485 253 9 301 391 10 156 635 14 372 020 16 128 923 17 459 193

MPUMALANGA

B MP301 Chief Albert Luthuli 278 934 306 814 333 088 428 853 456 530 484 085
B MP302 Msukaligwa 154 338 171 134 189 253 265 741 276 120 291 547
B MP303 Mkhondo 209 667 232 593 255 434 366 799 385 896 426 168
B MP304 Dr Pixley ka Isaka Seme 107 567 117 944 127 450 190 782 184 758 200 636
B MP305 Lekwa 107 256 118 034 129 277 166 060 211 714 230 219
B MP306 Dipaleseng 64 569 71 204 77 865 115 086 146 974 166 437
B MP307 Govan Mbeki 257 245 284 504 315 700 366 678 429 363 449 317
C DC30 Gert Sibande District Municipality 282 406 291 654 300 301 454 585 611 236 648 301
Total: Gert Sibande Municipalities 1 461 982 1 593 881 1 728 368 2 354 584 2 702 590 2 896 710

B MP311 Victor Khanye 87 187 95 709 105 798 130 538 164 775 159 368
B MP312 Emalahleni 325 738 360 048 402 983 527 456 543 893 610 231
B MP313 Steve Tshwete 179 370 200 511 227 065 263 074 276 849 294 658
B MP314 Emakhazeni 58 495 62 833 68 570 115 981 111 498 127 410
B MP315 Thembisile Hani 364 153 398 455 434 938 639 024 732 029 809 261
B MP316 Dr JS Moroka 345 667 373 368 402 026 483 380 534 257 573 623
C DC31 Nkangala District Municipality 343 962 355 755 366 881 350 768 359 063 370 323
Total: Nkangala Municipalities 1 704 572 1 846 679 2 008 261 2 510 221 2 722 363 2 944 874

B MP321 Thaba Chweu 132 627 142 451 157 222 214 631 229 517 239 464
B MP324 Nkomazi 516 133 562 066 613 852 912 045 988 292 1 001 730
B MP325 Bushbuckridge 720 236 776 728 841 299 1 282 938 1 419 596 1 496 858
B MP326 City of Mbombela 661 329 720 518 793 825 1 351 927 1 369 895 1 560 984
C DC32 Ehlanzeni District Municipality 239 132 251 449 263 037 245 801 255 190 266 672
Total: Ehlanzeni Municipalities 2 269 457 2 453 212 2 669 235 4 007 342 4 262 489 4 565 708

Total: Mpumalanga Municipalities 5 436 011 5 893 772 6 405 864 8 872 147 9 687 443 10 407 291
 269

ANNEXURE W7

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

TOTAL ALLOCATIONS TO
EQUITABLE SHARE1
MUNICIPALITIES
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

NORTHERN CAPE

B NC061 Richtersveld 15 473 16 937 18 422 44 730 54 892 55 688

B NC062 Nama Khoi 43 917 47 587 51 472 75 636 69 760 73 476
B NC064 Kamiesberg 20 768 22 505 24 106 42 750 32 938 37 045
B NC065 Hantam 22 818 24 628 26 505 87 536 63 425 50 192
B NC066 Karoo Hoogland 20 251 22 233 24 179 66 241 57 755 40 320
B NC067 Khâi-Ma 17 420 18 779 20 323 36 452 32 607 34 850
C DC6 Namakwa District Municipality 47 152 49 067 50 803 51 376 53 928 56 274
Total: Namakwa Municipalities 187 799 201 736 215 810 404 721 365 305 347 845

B NC071 Ubuntu 31 165 34 209 37 074 78 720 51 514 53 931

B NC072 Umsobomvu 44 259 48 914 53 423 71 992 65 977 69 619
B NC073 Emthanjeni 40 793 44 551 48 243 125 047 74 014 73 172
B NC074 Kareeberg 22 024 24 050 26 047 85 790 34 523 37 136
B NC075 Renosterberg 22 237 24 382 26 345 43 349 36 662 40 487
B NC076 Thembelihle 22 988 25 113 27 059 61 780 48 742 41 889
B NC077 Siyathemba 29 848 32 598 35 384 69 272 48 507 52 017
B NC078 Siyancuma 45 402 49 180 52 413 169 217 89 249 89 508
C DC7 Pixley Ka Seme District Municipality 47 820 50 609 53 012 53 149 55 581 57 894
Total: Pixley Ka Seme Municipalities 306 536 333 606 359 000 758 316 504 769 515 653

B NC082 !Kai !Garib 77 186 84 147 92 320 117 204 123 682 135 597
B NC084 !Kheis 23 163 25 065 26 755 41 761 41 836 41 102
B NC085 Tsantsabane 35 385 38 823 42 678 80 629 67 506 73 000
B NC086 Kgatelopele 20 469 22 242 24 365 38 559 47 728 76 750
B NC087 Dawid Kruiper 77 934 84 739 92 253 210 292 153 543 156 497
C DC8 Z.F. Mgcawu District Municipality 66 094 69 284 72 111 69 960 73 319 76 322
Total: Z.F. Mgcawu Municipalities 300 231 324 300 350 482 558 405 507 614 559 268

B NC091 Sol Plaatjie 172 437 188 812 206 040 510 087 442 101 309 514
B NC092 Dikgatlong 76 057 83 956 91 218 112 585 115 659 125 311
B NC093 Magareng 41 743 45 699 49 114 74 879 96 282 89 068
B NC094 Phokwane 94 534 103 413 111 092 158 637 169 918 181 237
C DC9 Frances Baard District Municipality 116 209 120 350 124 125 120 843 124 020 127 950
Total: Frances Baard Municipalities 500 980 542 230 581 589 977 031 947 980 833 080

B NC451 Joe Morolong 128 635 139 765 149 890 296 531 264 019 335 952
B NC452 Ga-Segonyana 141 895 157 567 174 003 337 756 372 531 339 693
B NC453 Gamagara 33 008 37 204 42 363 115 688 214 272 245 621
C DC45 John Taolo Gaetsewe District Municipality 85 253 89 326 93 411 92 436 96 891 101 133
Total: John Taolo Gaetsewe Municipalities 388 791 423 862 459 667 842 411 947 713 1 022 400

Total: Northern Cape Municipalities 1 684 337 1 825 734 1 966 548 3 540 884 3 273 381 3 278 246

NORTH WEST

B NW371 Moretele 306 721 335 220 360 155 524 089 578 936 622 598
B NW372 Madibeng 624 943 690 643 766 832 1 073 457 1 299 997 1 464 787
B NW373 Rustenburg 605 006 675 452 757 430 1 222 543 1 294 074 1 432 673
B NW374 Kgetlengrivier 81 506 90 475 99 374 197 320 151 030 163 376
B NW375 Moses Kotane 386 730 423 082 455 591 588 708 642 239 687 208
C DC37 Bojanala Platinum District Municipality 322 202 337 917 352 586 327 124 341 421 356 667
Total: Bojanala Platinum Municipalities 2 327 108 2 552 789 2 791 968 3 933 241 4 307 697 4 727 309

B NW381 Ratlou 111 525 122 886 131 799 157 294 167 357 178 464
B NW382 Tswaing 102 431 113 143 121 990 150 756 159 620 171 671
B NW383 Mafikeng 226 626 252 333 274 752 349 113 334 305 361 323
B NW384 Ditsobotla 112 413 124 506 135 203 163 264 176 443 189 822
B NW385 Ramotshere Moiloa 153 173 170 214 184 185 213 715 223 616 246 348
C DC38 Ngaka Modiri Molema District Municipality 696 369 762 027 829 843 1 098 125 1 310 049 1 432 725
Total: Ngaka Modiri Molema Municipalities 1 402 537 1 545 109 1 677 772 2 132 267 2 371 389 2 580 353

B NW392 Naledi 47 260 51 788 55 858 85 873 89 159 91 302

B NW393 Mamusa 50 209 54 838 59 166 88 530 99 927 106 576
B NW394 Greater Taung 175 974 190 263 202 947 258 544 254 866 271 331
B NW396 Lekwa-Teemane 44 723 49 059 53 059 70 665 83 428 85 256
B NW397 Kagisano-Molopo 109 062 118 889 126 906 167 058 181 337 192 353
C DC39 Dr Ruth Segomotsi Mompati District Municipality 337 205 360 521 388 722 718 436 729 981 780 556
Total: Dr Ruth Segomotsi Mompati Municipalities 764 433 825 358 886 658 1 389 106 1 438 698 1 527 374

B NW403 City of Matlosana 392 856 428 402 465 560 579 133 606 676 636 113
B NW404 Maquassi Hills 115 571 126 946 137 180 168 960 162 466 174 795
B NW405 JB Marks 233 655 257 206 284 098 367 241 396 374 377 004
C DC40 Dr Kenneth Kaunda District Municipality 180 033 187 041 193 426 184 644 190 646 197 182
Total: Dr Kenneth Kaunda Municipalities 922 115 999 595 1 080 264 1 299 978 1 356 163 1 385 093

Total: North West Municipalities 5 416 193 5 922 851 6 436 662 8 754 592 9 473 947 10 220 130
 270

ANNEXURE W7

EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES

TOTAL ALLOCATIONS TO
EQUITABLE SHARE1
MUNICIPALITIES
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

WESTERN CAPE

A CPT City of Cape Town 2 574 650 2 815 558 3 092 042 5 313 450 5 360 461 5 764 002

B WC011 Matzikama 52 340 56 519 61 132 100 620 111 254 132 785
B WC012 Cederberg 45 080 49 017 53 196 109 936 100 325 107 998
B WC013 Bergrivier 41 390 45 066 49 277 67 107 64 445 72 437
B WC014 Saldanha Bay 80 432 88 328 97 483 116 016 117 551 123 580
B WC015 Swartland 82 048 91 534 102 555 116 175 125 871 138 556
C DC1 West Coast District Municipality 88 405 92 295 95 824 93 010 96 005 99 690
Total: West Coast Municipalities 389 695 422 759 459 467 602 864 615 453 675 045

B WC022 Witzenberg 84 602 92 850 102 274 124 463 140 872 133 802
B WC023 Drakenstein 137 518 150 601 165 045 186 473 195 693 213 656
B WC024 Stellenbosch 124 176 136 177 150 331 171 555 180 736 199 717
B WC025 Breede Valley 108 977 117 997 128 040 152 403 170 063 197 093
B WC026 Langeberg 73 093 79 172 85 535 100 995 105 287 113 316
C DC2 Cape Winelands District Municipality 225 214 232 002 238 403 230 294 235 850 242 415
Total: Cape Winelands Municipalities 753 580 808 799 869 628 966 183 1 028 501 1 099 999

B WC031 Theewaterskloof 87 385 95 274 103 492 135 158 135 843 143 956
B WC032 Overstrand 96 068 106 383 117 674 125 445 136 983 148 660
B WC033 Cape Agulhas 27 606 29 861 32 338 48 171 52 536 53 455
B WC034 Swellendam 29 001 31 536 34 311 47 523 52 086 53 461
C DC3 Overberg District Municipality 67 902 71 298 74 293 72 676 75 103 78 261
Total: Overberg Municipalities 307 962 334 352 362 108 428 973 452 551 477 793

B WC041 Kannaland 25 957 27 902 29 670 74 383 90 459 91 106

B WC042 Hessequa 40 885 44 040 47 615 59 923 61 270 66 654
B WC043 Mossel Bay 85 858 93 148 101 620 125 712 135 396 139 527
B WC044 George 137 401 149 978 164 336 385 980 333 237 357 441
B WC045 Oudtshoorn 67 861 73 165 78 757 121 685 135 607 127 538
B WC047 Bitou 83 028 92 906 104 077 115 035 124 229 133 116
B WC048 Knysna 78 375 85 909 94 186 130 706 126 810 130 176
C DC4 Eden District Municipality 151 237 156 941 162 177 155 683 160 509 165 894
Total: Eden Municipalities 670 602 723 989 782 438 1 169 107 1 167 517 1 211 452

B WC051 Laingsburg 15 000 16 394 17 667 30 088 31 016 31 853

B WC052 Prince Albert 19 317 21 139 22 932 36 764 37 242 37 371
B WC053 Beaufort West 56 655 61 921 67 002 83 416 92 465 108 422
C DC5 Central Karoo District Municipality 28 502 30 316 31 867 32 435 33 351 35 019
Total: Central Karoo Municipalities 119 474 129 770 139 468 182 703 194 074 212 666

Total: Western Cape Municipalities 4 815 963 5 235 227 5 705 151 8 663 280 8 818 557 9 440 958

Unallocated - 500 000 1 000 000 489 280 2 462 423 3 569 477

National Total 62 731 845 68 973 465 75 683 326 112 885 032 121 011 299 131 099 355
1. Includes equitable share formula allocations, RSC levies replacement and special contribution towards councillor remuneration, but excludes the sharing of the general fuel levy
with metropolitan municipalities. (See Appendix W1)
 APPENDIX W1

APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES

(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR
271

REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL
MUNICPALITY PER SERVICE FOR DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

(National and Municipal Financial Years)

 APPENDIX W1
APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES
(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL MUNICPALITY PER SERVICE FOR
DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

Special Support for Councillor Remuneration

Equitable Share Formula RSC Levies Replacement BREAKDOWN OF EQUITABLE SHARE FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES
and Ward Committees
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 Water Sanitation Refuse Water Sanitation Refuse Water Sanitation Refuse
Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) 2018/19 R'(000) 2019/20 R'(000) 2020/21 R'(000)

EASTERN CAPE

A BUF Buffalo City 778 048 844 411 918 677 - - - - - - - - - - - - - - -

A NMA Nelson Mandela Bay 939 530 1 021 661 1 119 805 - - - - - - - - - - - - - - -

B EC101 Dr Beyers Naude 77 678 84 161 90 925 - - - 5 600 5 877 6 154 - - - - - - - - -

B EC102 Blue Crane Route 46 577 50 351 53 957 - - - 2 435 2 556 2 677 - - - - - - - - -
B EC104 Makana 79 978 86 798 94 227 - - - 5 600 5 877 6 154 - - - - - - - - -
B EC105 Ndlambe 84 115 91 454 99 666 - - - 4 126 4 331 4 536 - - - - - - - - -
B EC106 Sundays River Valley 68 670 75 643 83 269 - - - 3 301 3 465 3 629 - - - - - - - - -
B EC108 Kouga 107 138 118 034 131 245 - - - 6 013 6 310 6 607 - - - - - - - - -
B EC109 Kou-Kamma 42 971 46 427 50 327 - - - 2 435 2 556 2 677 - - - - - - - - -
C DC10 Sarah Baartman District Municipality 24 262 26 823 29 025 64 080 65 964 67 747 - - - - - - - - - - - -
Total: Sarah Baartman Municipalities 531 389 579 691 632 641 64 080 65 964 67 747 29 510 30 972 32 434 - - - - - - - - -

B EC121 Mbhashe 212 363 229 976 246 643 - - - 13 028 13 672 14 318 69 021 52 692 - 74 689 56 111 - 80 915 59 709 -
B EC122 Mnquma 221 577 239 450 256 042 - - - 12 791 13 425 14 062 72 225 55 138 - 77 879 58 507 - 84 071 62 038 -
B EC123 Great Kei 35 281 38 760 41 297 - - - 2 873 3 015 3 158 9 472 7 231 - 10 183 7 650 - 10 938 8 071 -
B EC124 Amahlathi 90 925 96 954 103 325 - - - 6 189 6 496 6 804 27 208 20 771 - 29 252 21 976 - 31 418 23 184 -
B EC126 Ngqushwa 70 713 75 828 80 821 - - - 4 775 5 010 5 246 20 522 15 667 - 22 064 16 576 - 23 699 17 488 -
B EC129 Raymond Mhlaba 146 702 160 085 171 770 - - - 9 490 9 961 10 433 45 817 34 978 - 49 618 37 276 - 53 796 39 697 -
C DC12 Amathole District Municipality 443 782 461 782 495 024 341 764 371 903 404 259 - - - - - - - - - - - -
Total: Amathole Municipalities 1 221 343 1 302 835 1 394 922 341 764 371 903 404 259 49 146 51 579 54 021 244 265 186 477 - 263 685 198 096 - 284 837 210 187 -

B EC131 Inxuba Yethemba 35 793 38 441 41 399 - - - 3 714 3 898 4 082 16 341 12 475 - 17 794 13 368 - 19 399 14 315 -
B EC135 Intsika Yethu 139 114 146 262 156 001 - - - 8 665 9 095 9 526 42 945 32 785 - 46 171 34 687 - 49 647 36 635 -
B EC136 Emalahleni 108 759 113 528 121 387 - - - 7 015 7 362 7 711 32 077 24 489 - 34 566 25 968 - 37 290 27 517 -
B EC137 Engcobo 127 573 135 904 145 340 - - - 8 558 8 985 9 413 39 514 30 166 - 42 597 32 002 - 45 974 33 925 -
B EC138 Sakhisizwe 58 181 62 891 67 259 - - - 3 537 3 711 3 886 16 566 12 647 - 17 883 13 435 - 19 327 14 262 -
272

B EC139 Enoch Mgijima 164 680 176 220 189 777 - - - - - - 66 053 50 426 - 71 854 53 981 - 78 254 57 745 -
C DC13 Chris Hani District Municipality 445 541 456 243 490 184 78 986 85 952 93 429 - - - - - - - - - - - -
Total: Chris Hani Municipalities 1 079 641 1 129 489 1 211 347 78 986 85 952 93 429 31 489 33 051 34 618 213 496 162 988 - 230 865 173 441 - 249 891 184 399 -

B EC141 Elundini 131 367 141 755 152 298 - - - 7 015 7 362 7 711 43 400 33 132 - 47 113 35 394 - 51 203 37 784 -
B EC142 Senqu 129 419 139 197 149 262 - - - 7 015 7 362 7 711 41 952 32 027 - 45 427 34 128 - 49 246 36 339 -
B EC145 Walter Sisulu 47 866 52 361 56 894 - - - 4 811 5 052 5 293 22 220 16 963 - 24 452 18 370 - 26 939 19 879 -
C DC14 Joe Gqabi District Municipality 223 895 235 587 254 427 34 388 37 421 40 676 - - - - - - - - - - - -
Total: Joe Gqabi Municipalities 532 547 568 900 612 881 34 388 37 421 40 676 18 841 19 776 20 715 107 572 82 122 - 116 992 87 892 - 127 388 94 002 -

B EC153 Ngquza Hill 214 534 237 724 256 942 - - - 13 028 13 672 14 318 71 076 54 261 - 77 709 58 380 - 85 058 62 766 -
B EC154 Port St Johns 127 653 141 086 152 216 - - - 8 076 8 475 8 875 41 588 31 749 - 45 379 34 092 - 49 573 36 581 -
B EC155 Nyandeni 221 504 242 369 261 104 - - - 13 028 13 672 14 318 74 102 56 571 - 80 671 60 605 - 87 924 64 881 -
B EC156 Mhlontlo 155 378 168 797 180 068 - - - 10 552 11 074 11 597 48 924 37 350 - 52 599 39 516 - 56 548 41 728 -
B EC157 King Sabata Dalindyebo 292 112 322 658 350 127 - - - - - - 121 777 92 967 - 133 733 100 469 - 147 032 108 497 -
C DC15 O.R. Tambo District Municipality 702 087 756 312 819 536 89 439 97 326 105 793 - - - - - - - - - - - -
Total: O.R. Tambo Municipalities 1 713 268 1 868 946 2 019 993 89 439 97 326 105 793 44 684 46 893 49 108 357 467 272 898 - 390 091 293 062 - 426 135 314 453 -

B EC441 Matatiele 197 090 218 538 236 226 - - - 10 552 11 074 11 597 67 874 51 817 - 74 236 55 771 - 81 287 59 983 -
B EC442 Umzimvubu 182 110 201 388 216 648 - - - 10 965 11 507 12 050 60 428 46 132 - 65 673 49 337 - 71 455 52 728 -
B EC443 Mbizana 217 734 240 955 261 775 - - - 12 791 13 425 14 062 72 651 55 463 - 79 961 60 072 - 88 107 65 016 -
B EC444 Ntabankulu 101 547 111 921 119 896 - - - 7 435 7 807 8 180 31 556 24 090 - 34 092 25 612 - 36 875 27 210 -
C DC44 Alfred Nzo District Municipality 455 683 495 923 537 857 54 661 59 481 64 656 - - - - - - - - - - - -
Total: Alfred Nzo Municipalities 1 154 164 1 268 725 1 372 402 54 661 59 481 64 656 41 743 43 813 45 889 232 509 177 502 - 253 962 190 792 - 277 724 204 937 -

Total: Eastern Cape Municipalities 7 949 930 8 584 658 9 282 668 663 318 718 047 776 560 215 413 226 084 236 785 1 155 309 881 987 - 1 255 595 943 283 - 1 365 975 1 007 978 -
 APPENDIX W1
APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES
(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL MUNICPALITY PER SERVICE FOR
DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

Special Support for Councillor Remuneration

Equitable Share Formula RSC Levies Replacement BREAKDOWN OF EQUITABLE SHARE FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES
and Ward Committees
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 Water Sanitation Refuse Water Sanitation Refuse Water Sanitation Refuse
Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) 2018/19 R'(000) 2019/20 R'(000) 2020/21 R'(000)

FREE STATE

A MAN Mangaung 683 500 735 867 804 822 - - - - - - - - - - - - - - -

B FS161 Letsemeng 55 647 60 535 65 348 - - - 2 435 2 556 2 677 - - - - - - - - -

B FS162 Kopanong 74 570 80 967 86 882 - - - 3 310 3 474 3 639 - - - - - - - - -
B FS163 Mohokare 59 288 65 263 70 889 - - - 2 435 2 556 2 677 - - - - - - - - -
C DC16 Xhariep District Municipality 16 882 18 677 20 074 20 841 21 454 22 034 2 821 2 985 3 149 - - - - - - - - -
Total: Xhariep Municipalities 206 387 225 442 243 193 20 841 21 454 22 034 11 001 11 571 12 142 - - - - - - - - -

B FS181 Masilonyana 103 492 113 251 123 067 - - - 3 950 4 144 4 339 - - - - - - - - -
B FS182 Tokologo 47 641 52 124 56 052 - - - 1 749 1 837 1 925 - - - - - - - - -
B FS183 Tswelopele 63 709 69 856 75 148 - - - 3 310 3 474 3 639 - - - - - - - - -
B FS184 Matjhabeng 459 037 501 919 544 687 - - - - - - - - - - - - - - -
B FS185 Nala 106 158 115 482 122 999 - - - 4 952 5 197 5 443 - - - - - - - - -
C DC18 Lejweleputswa District Municipality 33 706 37 423 40 343 87 458 90 029 92 463 - - - - - - - - - - - -
Total: Lejweleputswa Municipalities 813 743 890 055 962 296 87 458 90 029 92 463 13 961 14 652 15 346 - - - - - - - - -

B FS191 Setsoto 167 089 183 185 197 705 - - - 6 838 7 176 7 514 - - - - - - - - -
B FS192 Dihlabeng 147 861 163 327 178 687 - - - - - - - - - - - - - - -
B FS193 Nketoana 83 829 92 175 100 238 - - - 3 714 3 898 4 082 - - - - - - - - -
B FS194 Maluti-a-Phofung 538 719 591 738 641 031 - - - - - - - - - - - - - - -
B FS195 Phumelela 64 773 71 145 76 919 - - - 3 310 3 474 3 639 - - - - - - - - -
B FS196 Mantsopa 71 274 78 178 84 662 - - - 3 537 3 711 3 886 - - - - - - - - -
C DC19 Thabo Mofutsanyana District Municipality 48 648 53 903 58 210 58 655 60 380 62 012 - - - - - - - - - - - -
Total: Thabo Mofutsanyana Municipalities 1 122 193 1 233 651 1 337 452 58 655 60 380 62 012 17 399 18 259 19 121 - - - - - - - - -

B FS201 Moqhaka 185 144 203 848 221 685 - - - - - - - - - - - - - - -

B FS203 Ngwathe 174 340 190 804 207 217 - - - - - - - - - - - - - - -
273

B FS204 Metsimaholo 163 296 182 247 202 871 - - - - - - - - - - - - - - -

B FS205 Mafube 82 742 91 065 98 903 - - - 3 537 3 711 3 886 - - - - - - - - -
C DC20 Fezile Dabi District Municipality 9 131 10 142 10 988 140 057 144 174 148 073 - - - - - - - - - - - -
Total: Fezile Dabi Municipalities 614 653 678 106 741 664 140 057 144 174 148 073 3 537 3 711 3 886 - - - - - - - - -

Total: Free State Municipalities 3 440 476 3 763 121 4 089 427 307 011 316 037 324 582 45 898 48 193 50 495 - - - - - - - - -

GAUTENG

A EKU City of Ekurhuleni 3 145 138 3 478 292 3 848 841 - - - - - - - - - - - - - - -

A JHB City of Johannesburg 4 229 919 4 689 158 5 207 760 - - - - - - - - - - - - - - -
A TSH City of Tshwane 2 398 120 2 642 492 2 938 221 - - - - - - - - - - - - - - -

B GT421 Emfuleni 707 724 770 960 838 676 - - - - - - - - - - - - - - -

B GT422 Midvaal 91 179 100 829 112 387 - - - 6 013 6 310 6 607 - - - - - - - - -
B GT423 Lesedi 113 976 127 551 142 719 - - - 5 364 5 630 5 897 - - - - - - - - -
C DC42 Sedibeng District Municipality 20 338 22 554 24 444 238 553 245 566 252 206 - - - - - - - - - - - -
Total: Sedibeng Municipalities 933 217 1 021 894 1 118 226 238 553 245 566 252 206 11 377 11 940 12 504 - - - - - - - - -

B GT481 Mogale City 369 809 408 061 451 269 - - - - - - - - - - - - - - -

B GT484 Merafong City 185 872 203 628 222 151 - - - - - - - - - - - - - - -
B GT485 Rand West City 274 916 302 974 332 695 - - - - - - - - - - - - - - -
C DC48 West Rand District Municipality 34 742 38 613 41 936 163 265 168 064 172 608 - - - - - - - - - - - -
Total: West Rand Municipalities 865 339 953 276 1 048 051 163 265 168 064 172 608 - - - - - - - - - - - -

Total: Gauteng Municipalities 11 571 733 12 785 112 14 161 099 401 818 413 630 424 814 11 377 11 940 12 504 - - - - - - - - -
 APPENDIX W1
APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES
(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL MUNICPALITY PER SERVICE FOR
DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

Special Support for Councillor Remuneration

Equitable Share Formula RSC Levies Replacement BREAKDOWN OF EQUITABLE SHARE FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES
and Ward Committees
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 Water Sanitation Refuse Water Sanitation Refuse Water Sanitation Refuse
Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) 2018/19 R'(000) 2019/20 R'(000) 2020/21 R'(000)

KWAZULU-NATAL

A ETH eThekwini 2 893 016 3 160 624 3 473 156 - - - - - - - - - - - - - - -

B KZN212 uMdoni 110 899 121 078 131 593 - - - 7 664 8 042 8 422 36 593 27 936 - 40 394 30 346 - 44 561 32 883 -
B KZN213 uMzumbe 112 008 119 044 126 959 - - - 8 558 8 985 9 413 32 346 24 694 - 34 776 26 126 - 37 353 27 563 -
B KZN214 uMuziwabantu 78 395 84 871 91 347 - - - 4 126 4 331 4 536 24 176 18 456 - 26 379 19 817 - 28 764 21 226 -
B KZN216 Ray Nkonyeni 185 324 201 851 220 992 - - - - - - 83 235 63 543 - 92 476 69 474 - 102 679 75 769 -
C DC21 Ugu District Municipality 360 673 380 002 414 269 75 204 81 836 88 955 - - - - - - - - - - - -
Total: Ugu Municipalities 847 299 906 846 985 160 75 204 81 836 88 955 20 348 21 358 22 371 176 350 134 629 - 194 025 145 763 - 213 357 157 441 -

B KZN221 uMshwathi 86 220 94 018 101 765 - - - 5 600 5 877 6 154 31 546 24 083 - 34 641 26 024 - 38 015 28 052 -
B KZN222 uMngeni 55 390 61 474 68 353 - - - 4 775 5 010 5 246 32 137 24 534 - 36 264 27 244 - 40 895 30 177 -
B KZN223 Mpofana 30 005 32 939 35 460 - - - 1 998 2 097 2 195 11 050 8 436 - 12 077 9 073 - 13 192 9 734 -
B KZN224 iMpendle 30 968 33 259 35 430 - - - 1 681 1 764 1 848 8 304 6 340 - 8 952 6 725 - 9 644 7 116 -
B KZN225 Msunduzi 505 853 544 673 597 005 - - - - - - - - - - - - - - -
B KZN226 Mkhambathini 52 658 58 416 63 543 - - - 2 888 3 032 3 175 16 837 12 854 - 18 653 14 013 - 20 652 15 239 -
B KZN227 Richmond 59 585 65 276 71 054 - - - 2 888 3 032 3 175 19 419 14 825 - 21 522 16 168 - 23 838 17 590 -
C DC22 uMgungundlovu District Municipality 240 934 260 897 286 185 243 030 264 462 287 470 - - - - - - - - - - - -
Total: uMgungundlovu Municipalities 1 061 613 1 150 952 1 258 795 243 030 264 462 287 470 19 830 20 812 21 793 119 293 91 072 - 132 109 99 247 - 146 236 107 908 -

B KZN235 Okhahlamba 104 861 115 796 124 663 - - - 6 013 6 310 6 607 33 297 25 420 - 36 318 27 284 - 39 588 29 213 -
B KZN237 iNkosi Langalibalele 146 417 162 848 176 885 - - - 9 490 9 961 10 433 49 871 38 073 - 54 988 41 310 - 60 591 44 711 -
B KZN238 Alfred Duma 206 663 227 893 246 582 - - - - - - 86 683 66 176 - 95 023 71 387 - 104 100 76 817 -
C DC23 uThukela District Municipality 335 399 364 204 395 903 56 441 61 418 66 762 5 642 5 969 6 298 - - - - - - - - -
Total: uThukela Municipalities 793 340 870 741 944 033 56 441 61 418 66 762 21 145 22 240 23 338 169 851 129 669 - 186 329 139 981 - 204 279 150 741 -

B KZN241 eNdumeni 38 887 43 383 47 910 - - - 2 712 2 845 2 978 18 707 14 281 - 21 019 15 791 - 23 601 17 416 -
B KZN242 Nquthu 115 527 126 977 136 782 - - - 6 838 7 176 7 514 36 046 27 518 - 39 339 29 554 - 42 906 31 661 -
B KZN244 uMsinga 137 701 151 872 164 695 - - - 7 872 8 266 8 662 45 919 35 056 - 50 543 37 971 - 55 598 41 027 -
B KZN245 uMvoti 107 287 119 412 131 097 - - - 5 600 5 877 6 154 39 181 29 912 - 43 787 32 895 - 48 903 36 087 -
C DC24 uMzinyathi District Municipality 280 795 304 517 333 563 44 262 48 166 52 356 - - - - - - - - - - - -
274

Total: uMzinyathi Municipalities 680 197 746 161 814 047 44 262 48 166 52 356 23 022 24 164 25 308 139 853 106 767 - 154 688 116 211 - 171 008 126 191 -

B KZN252 Newcastle 341 408 370 044 402 930 - - - - - - - - - - - - - - -

B KZN253 eMadlangeni 24 870 27 326 29 333 - - - 2 435 2 556 2 677 6 275 4 791 - 6 834 5 134 - 7 438 5 489 -
B KZN254 Dannhauser 77 155 84 186 90 380 - - - 5 188 5 444 5 700 22 034 16 821 - 23 937 17 983 - 25 989 19 178 -
C DC25 Amajuba District Municipality 71 070 76 110 82 058 77 635 84 481 91 831 - - - - - - - - - - - -
Total: Amajuba Municipalities 514 503 557 666 604 701 77 635 84 481 91 831 7 623 8 000 8 377 28 309 21 612 - 30 771 23 117 - 33 427 24 667 -

B KZN261 eDumbe 63 000 69 491 74 899 - - - 3 301 3 465 3 629 19 091 14 574 - 20 884 15 689 - 22 831 16 848 -
B KZN262 uPhongolo 113 717 127 072 138 531 - - - 6 013 6 310 6 607 38 244 29 196 - 42 392 31 848 - 46 962 34 654 -
B KZN263 AbaQulusi 130 276 145 195 158 630 - - - - - - 52 754 40 274 - 58 537 43 976 - 64 912 47 900 -
B KZN265 Nongoma 128 068 141 676 152 929 - - - 8 665 9 095 9 526 37 780 28 842 - 41 330 31 049 - 45 184 33 342 -
B KZN266 Ulundi 134 002 148 942 160 694 - - - 9 727 10 207 10 690 38 216 29 175 - 41 770 31 380 - 45 626 33 668 -
C DC26 Zululand District Municipality 367 692 401 396 437 908 57 074 62 107 67 510 - - - - - - - - - - - -
Total: Zululand Municipalities 936 755 1 033 772 1 123 591 57 074 62 107 67 510 27 706 29 077 30 452 186 085 142 061 - 204 913 153 942 - 225 515 166 412 -

B KZN271 uMhlabuyalingana 138 425 154 686 169 272 - - - 7 251 7 609 7 968 46 260 35 316 - 51 512 38 699 - 57 323 42 300 -
B KZN272 Jozini 151 712 169 141 183 892 - - - 8 253 8 662 9 072 49 652 37 906 - 54 829 41 191 - 60 508 44 650 -
B KZN275 Mtubatuba 135 247 151 828 167 078 - - - 8 253 8 662 9 072 42 787 32 664 - 48 002 36 062 - 53 820 39 715 -
B KZN276 Big Five Hlabisa 88 799 99 549 108 787 - - - 5 497 5 771 6 045 26 919 20 551 - 29 972 22 517 - 33 350 24 609 -
C DC27 uMkhanyakude District Municipality 329 739 362 257 399 094 45 009 48 978 53 239 - - - - - - - - - - - -
Total: uMkhanyakude Municipalities 843 922 937 461 1 028 123 45 009 48 978 53 239 29 254 30 704 32 157 165 618 126 437 - 184 315 138 469 - 205 001 151 274 -

B KZN281 uMfolozi 107 795 120 119 131 117 - - - 7 246 7 607 7 970 32 104 24 509 - 35 675 26 801 - 39 619 29 236 -
B KZN282 uMhlathuze 326 255 360 419 397 687 - - - - - - - - - - - - - - -
B KZN284 uMlalazi 154 237 169 627 183 691 - - - 11 141 11 693 12 247 49 475 37 770 - 54 330 40 816 - 59 626 43 999 -
B KZN285 Mthonjaneni 65 482 71 778 76 826 - - - 5 497 5 771 6 045 17 379 13 268 - 18 779 14 108 - 20 280 14 965 -
B KZN286 Nkandla 81 197 88 742 94 665 - - - 5 600 5 877 6 154 23 080 17 620 - 24 837 18 659 - 26 712 19 711 -
C DC28 King Cetshwayo District Municipality 227 727 243 622 264 560 249 115 271 083 294 668 - - - - - - - - - - - -
Total: King Cetshwayo Municipalities 962 693 1 054 307 1 148 546 249 115 271 083 294 668 29 484 30 948 32 416 122 038 93 167 - 133 621 100 384 - 146 237 107 911 -

B KZN291 Mandeni 139 570 156 283 171 647 - - - 7 251 7 609 7 968 49 513 37 799 - 55 346 41 580 - 61 828 45 624 -
B KZN292 KwaDukuza 147 876 165 637 185 670 - - - - - - 86 560 66 082 - 98 461 73 970 - 111 928 82 594 -
B KZN293 Ndwedwe 121 734 135 846 147 611 - - - 8 121 8 526 8 932 38 161 29 133 - 42 127 31 648 - 46 476 34 296 -
B KZN294 Maphumulo 76 563 83 925 89 578 - - - 4 539 4 764 4 990 23 554 17 981 - 25 394 19 077 - 27 360 20 190 -
C DC29 iLembe District Municipality 382 981 422 488 468 283 85 689 93 246 101 358 - - - - - - - - - - - -
Total: iLembe Municipalities 868 724 964 179 1 062 789 85 689 93 246 101 358 19 911 20 899 21 890 197 788 150 995 - 221 328 166 275 - 247 592 182 704 -

B KZN433 Greater Kokstad 51 733 56 592 61 335 - - - 3 950 4 144 4 339 23 018 17 572 - 25 307 19 012 - 27 807 20 519 -
B KZN434 uBuhlebezwe 93 719 101 933 109 618 - - - 5 600 5 877 6 154 28 817 22 000 - 31 384 23 578 - 34 159 25 206 -
B KZN435 uMzimkhulu 160 131 175 594 190 181 - - - 8 901 9 341 9 782 53 103 40 540 - 58 342 43 830 - 64 057 47 269 -
B KZN436 Dr Nkosazana Dlamini Zuma 104 790 116 344 125 739 - - - 6 372 6 689 7 007 33 475 25 555 - 36 700 27 572 - 40 212 29 673 -
C DC43 Harry Gwala District Municipality 277 415 300 221 326 091 40 659 44 245 48 094 - - - - - - - - - - - -
Total: Harry Gwala Municipalities 687 788 750 684 812 964 40 659 44 245 48 094 24 823 26 051 27 282 138 413 105 667 - 151 733 113 992 - 166 235 122 667 -

Total: KwaZulu-Natal Municipalities 11 089 850 12 133 393 13 255 905 974 118 1 060 022 1 152 243 223 146 234 253 245 384 1 443 598 1 102 076 - 1 593 832 1 197 381 - 1 758 887 1 297 916 -
 APPENDIX W1
APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES
(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL MUNICPALITY PER SERVICE FOR
DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

Special Support for Councillor Remuneration

Equitable Share Formula RSC Levies Replacement BREAKDOWN OF EQUITABLE SHARE FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES
and Ward Committees
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 Water Sanitation Refuse Water Sanitation Refuse Water Sanitation Refuse
Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) 2018/19 R'(000) 2019/20 R'(000) 2020/21 R'(000)

LIMPOPO

B LIM331 Greater Giyani 240 560 267 223 290 252 - - - 12 791 13 425 14 062 82 188 62 744 - 90 610 68 072 - 99 807 73 650 -
B LIM332 Greater Letaba 232 313 258 972 281 509 - - - 12 379 12 992 13 608 80 606 61 537 - 88 952 66 826 - 98 075 72 372 -
B LIM333 Greater Tzaneen 338 344 375 418 409 819 - - - - - - 134 684 102 821 - 149 254 112 129 - 165 255 121 945 -
B LIM334 Ba-Phalaborwa 124 821 139 717 153 151 - - - 7 664 8 042 8 422 44 939 34 308 - 50 116 37 650 - 55 840 41 205 -
B LIM335 Maruleng 103 816 115 849 126 173 - - - 5 600 5 877 6 154 33 946 25 915 - 37 607 28 252 - 41 626 30 716 -
C DC33 Mopani District Municipality 728 080 795 402 871 995 112 682 122 619 133 287 - - - - - - - - - - - -
Total: Mopani Municipalities 1 767 934 1 952 581 2 132 899 112 682 122 619 133 287 38 434 40 336 42 246 376 363 287 325 - 416 539 312 929 - 460 603 339 888 -

B LIM341 Musina 119 063 135 127 151 809 - - - 4 952 5 197 5 443 49 336 37 664 - 56 543 42 478 - 64 745 47 777 -
B LIM343 Thulamela 374 291 415 409 452 556 - - - 16 741 17 570 18 401 141 107 107 724 - 156 037 117 225 - 172 395 127 213 -
B LIM344 Makhado 316 259 349 723 381 094 - - - - - - 124 588 95 113 - 137 790 103 516 - 152 258 112 354 -
B LIM345 Collins Chabane 312 390 345 939 375 896 - - - 14 678 15 404 16 133 112 169 85 632 - 123 688 92 922 - 136 270 100 556 -
C DC34 Vhembe District Municipality 837 253 914 472 1 005 092 73 224 79 681 86 614 - - - - - - - - - - - -
Total: Vhembe Municipalities 1 959 256 2 160 670 2 366 447 73 224 79 681 86 614 36 371 38 171 39 977 427 200 326 133 - 474 058 356 141 - 525 668 387 900 -

B LIM351 Blouberg 158 652 172 543 185 369 - - - 9 078 9 528 9 979 52 170 39 828 - 56 725 42 616 - 61 624 45 474 -
B LIM353 Molemole 121 582 132 427 142 076 - - - 6 602 6 929 7 258 39 389 30 071 - 42 773 32 133 - 46 406 34 244 -
B LIM354 Polokwane 831 436 915 810 1 010 785 - - - - - - - - - - - - - - -
B LIM355 Lepele-Nkumpi 210 591 231 143 249 613 - - - 12 379 12 992 13 608 67 551 51 570 - 73 933 55 543 - 80 847 59 658 -
C DC35 Capricorn District Municipality 335 831 357 017 386 050 212 031 230 729 250 803 - - - - - - - - - - - -
Total: Capricorn Municipalities 1 658 092 1 808 940 1 973 893 212 031 230 729 250 803 28 059 29 449 30 845 159 110 121 469 - 173 431 130 292 - 188 877 139 376 -

B LIM361 Thabazimbi 81 253 88 547 98 307 - - - 4 775 5 010 5 246 - - - - - - - - -

B LIM362 Lephalale 130 526 146 617 164 498 - - - - - - - - - - - - - - -
B LIM366 Bela-Bela 78 449 86 448 95 669 - - - 3 537 3 711 3 886 - - - - - - - - -
B LIM367 Mogalakwena 395 279 430 255 466 088 - - - - - - - - - - - - - - -
B LIM368 Modimolle-Mookgophong 100 804 109 080 118 015 - - - - - - - - - - - - - - -
C DC36 Waterberg District Municipality 32 804 36 389 39 481 83 878 86 343 88 678 6 171 6 529 6 888 - - - - - - - - -
275

Total: Waterberg Municipalities 819 115 897 336 982 058 83 878 86 343 88 678 14 483 15 250 16 020 - - - - - - - - -

B LIM471 Ephraim Mogale 123 074 134 820 146 726 - - - 6 602 6 929 7 258 39 928 30 482 - 44 175 33 187 - 48 831 36 033 -
B LIM472 Elias Motsoaledi 224 891 249 466 272 243 - - - 12 615 13 239 13 865 73 301 55 960 - 81 310 61 085 - 90 115 66 498 -
B LIM473 Makhuduthamaga 228 727 248 304 268 507 - - - 12 791 13 425 14 062 75 011 57 265 - 82 235 61 780 - 90 075 66 468 -
B LIM476 Fetakgomo Tubatse 361 513 405 334 446 874 - - - - - - 125 285 95 645 - 140 543 105 585 - 157 521 116 238 -
C DC47 Sekhukhune District Municipality 623 660 672 203 739 453 87 821 95 566 103 880 - - - - - - - - - - - -
Total: Sekhukhune Municipalities 1 561 865 1 710 127 1 873 803 87 821 95 566 103 880 32 008 33 593 35 185 313 525 239 352 - 348 263 261 637 - 386 542 285 237 -

Total: Limpopo Municipalities 7 766 262 8 529 654 9 329 100 569 636 614 938 663 262 149 355 156 799 164 273 1 276 198 974 279 - 1 412 291 1 060 999 - 1 561 690 1 152 401 -

MPUMALANGA

B MP301 Chief Albert Luthuli 268 795 296 174 321 945 - - - 10 139 10 640 11 143 - - - - - - - - -
B MP302 Msukaligwa 154 338 171 134 189 253 - - - - - - - - - - - - - - -
B MP303 Mkhondo 201 827 224 364 246 816 - - - 7 840 8 229 8 618 - - - - - - - - -
B MP304 Dr Pixley ka Isaka Seme 103 204 113 367 122 657 - - - 4 363 4 577 4 793 - - - - - - - - -
B MP305 Lekwa 107 256 118 034 129 277 - - - - - - - - - - - - - - -
B MP306 Dipaleseng 61 945 68 449 74 978 - - - 2 624 2 755 2 887 - - - - - - - - -
B MP307 Govan Mbeki 257 245 284 504 315 700 - - - - - - - - - - - - - - -
C DC30 Gert Sibande District Municipality 11 400 12 682 13 785 271 006 278 972 286 516 - - - - - - - - - - - -
Total: Gert Sibande Municipalities 1 166 010 1 288 708 1 414 411 271 006 278 972 286 516 24 966 26 201 27 441 - - - - - - - - -

B MP311 Victor Khanye 83 650 91 998 101 912 - - - 3 537 3 711 3 886 - - - - - - - - -
B MP312 Emalahleni 325 738 360 048 402 983 - - - - - - - - - - - - - - -
B MP313 Steve Tshwete 179 370 200 511 227 065 - - - - - - - - - - - - - - -
B MP314 Emakhazeni 55 185 59 359 64 931 - - - 3 310 3 474 3 639 - - - - - - - - -
B MP315 Thembisile Hani 364 153 398 455 434 938 - - - - - - - - - - - - - - -
B MP316 Dr JS Moroka 332 876 359 943 387 964 - - - 12 791 13 425 14 062 - - - - - - - - -
C DC31 Nkangala District Municipality 20 973 23 272 25 407 322 989 332 483 341 474 - - - - - - - - - - - -
Total: Nkangala Municipalities 1 361 945 1 493 586 1 645 200 322 989 332 483 341 474 19 638 20 610 21 587 - - - - - - - - -

B MP321 Thaba Chweu 127 027 136 574 151 068 - - - 5 600 5 877 6 154 - - - - - - - - -
B MP324 Nkomazi 516 133 562 066 613 852 - - - - - - - - - - - - - - -
B MP325 Bushbuckridge 720 236 776 728 841 299 - - - - - - - - - - - - - - -
B MP326 City of Mbombela 661 329 720 518 793 825 - - - - - - - - - - - - - - -
C DC32 Ehlanzeni District Municipality 74 575 82 055 89 062 164 557 169 394 173 975 - - - - - - - - - - - -
Total: Ehlanzeni Municipalities 2 099 300 2 277 941 2 489 106 164 557 169 394 173 975 5 600 5 877 6 154 - - - - - - - - -

Total: Mpumalanga Municipalities 4 627 255 5 060 235 5 548 717 758 552 780 849 801 965 50 204 52 688 55 182 - - - - - - - - -
 APPENDIX W1
APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES
(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL MUNICPALITY PER SERVICE FOR
DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

Special Support for Councillor Remuneration

Equitable Share Formula RSC Levies Replacement BREAKDOWN OF EQUITABLE SHARE FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES
and Ward Committees
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 Water Sanitation Refuse Water Sanitation Refuse Water Sanitation Refuse
Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) 2018/19 R'(000) 2019/20 R'(000) 2020/21 R'(000)

NORTHERN CAPE

B NC061 Richtersveld 13 912 15 300 16 708 - - - 1 561 1 637 1 714 - - - - - - - - -

B NC062 Nama Khoi 40 169 43 653 47 352 - - - 3 748 3 934 4 120 - - - - - - - - -
B NC064 Kamiesberg 19 207 20 868 22 392 - - - 1 561 1 637 1 714 - - - - - - - - -
B NC065 Hantam 20 820 22 531 24 310 - - - 1 998 2 097 2 195 - - - - - - - - -
B NC066 Karoo Hoogland 18 570 20 469 22 331 - - - 1 681 1 764 1 848 - - - - - - - - -
B NC067 Khâi-Ma 15 859 17 142 18 609 - - - 1 561 1 637 1 714 - - - - - - - - -
C DC6 Namakwa District Municipality 6 152 6 786 7 301 38 355 39 483 40 550 2 645 2 798 2 952 - - - - - - - - -
Total: Namakwa Municipalities 134 689 146 749 159 003 38 355 39 483 40 550 14 755 15 504 16 257 - - - - - - - - -

B NC071 Ubuntu 29 604 32 572 35 360 - - - 1 561 1 637 1 714 - - - - - - - - -

B NC072 Umsobomvu 41 824 46 358 50 746 - - - 2 435 2 556 2 677 - - - - - - - - -
B NC073 Emthanjeni 37 483 41 077 44 604 - - - 3 310 3 474 3 639 - - - - - - - - -
B NC074 Kareeberg 20 463 22 413 24 333 - - - 1 561 1 637 1 714 - - - - - - - - -
B NC075 Renosterberg 20 556 22 618 24 497 - - - 1 681 1 764 1 848 - - - - - - - - -
B NC076 Thembelihle 21 307 23 349 25 211 - - - 1 681 1 764 1 848 - - - - - - - - -
B NC077 Siyathemba 27 850 30 501 33 189 - - - 1 998 2 097 2 195 - - - - - - - - -
B NC078 Siyancuma 42 529 46 165 49 255 - - - 2 873 3 015 3 158 - - - - - - - - -
C DC7 Pixley Ka Seme District Municipality 16 854 18 637 20 076 27 616 28 428 29 197 3 350 3 544 3 739 - - - - - - - - -
Total: Pixley Ka Seme Municipalities 258 470 283 690 307 271 27 616 28 428 29 197 20 450 21 488 22 532 - - - - - - - - -

B NC082 !Kai !Garib 73 001 79 754 87 719 - - - 4 185 4 393 4 601 - - - - - - - - -

B NC084 !Kheis 21 482 23 301 24 907 - - - 1 681 1 764 1 848 - - - - - - - - -
B NC085 Tsantsabane 32 512 35 808 39 520 - - - 2 873 3 015 3 158 - - - - - - - - -
B NC086 Kgatelopele 18 908 20 605 22 651 - - - 1 561 1 637 1 714 - - - - - - - - -
B NC087 Dawid Kruiper 71 508 77 996 85 192 - - - 6 426 6 743 7 061 - - - - - - - - -
C DC8 Z.F. Mgcawu District Municipality 14 163 15 722 16 990 48 228 49 645 50 988 3 703 3 917 4 133 - - - - - - - - -
Total: Z.F. Mgcawu Municipalities 231 574 253 186 276 979 48 228 49 645 50 988 20 429 21 469 22 515 - - - - - - - - -

B NC091 Sol Plaatjie 172 437 188 812 206 040 - - - - - - - - - - - - - - -

B NC092 Dikgatlong 73 184 80 941 88 060 - - - 2 873 3 015 3 158 - - - - - - - - -
276

B NC093 Magareng 39 745 43 602 46 919 - - - 1 998 2 097 2 195 - - - - - - - - -

B NC094 Phokwane 90 584 99 269 106 753 - - - 3 950 4 144 4 339 - - - - - - - - -
C DC9 Frances Baard District Municipality 8 987 9 976 10 766 107 222 110 374 113 359 - - - - - - - - - - - -
Total: Frances Baard Municipalities 384 937 422 600 458 538 107 222 110 374 113 359 8 821 9 256 9 692 - - - - - - - - -

B NC451 Joe Morolong 121 766 132 550 142 327 - - - 6 869 7 215 7 563 - - 17 495 - - 18 640 - - 19 820
B NC452 Ga-Segonyana 136 295 151 690 167 849 - - - 5 600 5 877 6 154 - - - - - - - - -
B NC453 Gamagara 30 296 34 359 39 385 - - - 2 712 2 845 2 978 - - - - - - - - -
C DC45 John Taolo Gaetsewe District Municipality 31 989 34 391 36 880 49 561 51 018 52 398 3 703 3 917 4 133 - - - - - - - - -
Total: John Taolo Gaetsewe Municipalities 320 346 352 990 386 441 49 561 51 018 52 398 18 884 19 854 20 828 - - 17 495 - - 18 640 - - 19 820

Total: Northern Cape Municipalities 1 330 016 1 459 215 1 588 232 270 982 278 948 286 492 83 339 87 571 91 824 - - 17 495 - - 18 640 - - 19 820

NORTH WEST

B NW371 Moretele 295 993 323 960 348 361 - - - 10 728 11 260 11 794 - - - - - - - - -
B NW372 Madibeng 624 943 690 643 766 832 - - - - - - - - - - - - - - -
B NW373 Rustenburg 605 006 675 452 757 430 - - - - - - - - - - - - - - -
B NW374 Kgetlengrivier 78 381 87 197 95 942 - - - 3 125 3 278 3 432 - - - - - - - - -
B NW375 Moses Kotane 372 701 408 357 440 169 - - - 14 029 14 725 15 422 - - - - - - - - -
C DC37 Bojanala Platinum District Municipality 71 479 79 471 86 786 238 381 245 388 252 024 12 342 13 058 13 776 - - - - - - - - -
Total: Bojanala Platinum Municipalities 2 048 503 2 265 080 2 495 520 238 381 245 388 252 024 40 224 42 321 44 424 - - - - - - - - -

B NW381 Ratlou 105 402 116 457 125 062 - - - 6 123 6 429 6 737 34 906 26 648 - 37 949 28 510 - 41 229 30 424 -
B NW382 Tswaing 96 418 106 833 115 383 - - - 6 013 6 310 6 607 37 538 28 657 - 41 101 30 877 - 44 971 33 185 -
B NW383 Mafikeng 226 626 252 333 274 752 - - - - - - 98 277 75 027 - 108 536 81 539 - 119 784 88 391 -
B NW384 Ditsobotla 112 413 124 506 135 203 - - - - - - 52 821 40 325 - 58 152 43 687 - 63 976 47 209 -
B NW385 Ramotshere Moiloa 145 333 161 985 175 567 - - - 7 840 8 229 8 618 50 975 38 916 - 56 061 42 117 - 61 612 45 465 -
C DC38 Ngaka Modiri Molema District Municipality 513 318 562 834 613 320 183 051 199 193 216 523 - - - - - - - - - - - -
Total: Ngaka Modiri Molema Municipalities 1 199 510 1 324 948 1 439 287 183 051 199 193 216 523 19 976 20 968 21 962 274 517 209 573 - 301 799 226 730 - 331 572 244 674 -

B NW392 Naledi 43 134 47 457 51 322 - - - 4 126 4 331 4 536 19 244 14 691 - 21 102 15 853 - 23 124 17 063 -
B NW393 Mamusa 46 495 50 940 55 084 - - - 3 714 3 898 4 082 15 946 12 173 - 17 509 13 154 - 19 212 14 177 -
B NW394 Greater Taung 166 071 179 869 192 061 - - - 9 903 10 394 10 886 53 711 41 004 - 57 908 43 504 - 62 391 46 039 -
B NW396 Lekwa-Teemane 41 224 45 385 49 209 - - - 3 499 3 674 3 850 15 816 12 074 - 17 422 13 088 - 19 178 14 152 -
B NW397 Kagisano-Molopo 103 049 112 579 120 299 - - - 6 013 6 310 6 607 32 806 25 045 - 35 421 26 611 - 38 219 28 203 -
C DC39 Dr Ruth Segomotsi Mompati District Municipality 278 155 296 434 319 249 53 408 58 118 63 175 5 642 5 969 6 298 - - - - - - - - -
Total: Dr Ruth Segomotsi Mompati Municipalities 678 128 732 664 787 224 53 408 58 118 63 175 32 897 34 576 36 259 137 523 104 987 - 149 362 112 210 - 162 124 119 634 -

B NW403 City of Matlosana 392 856 428 402 465 560 - - - - - - - - - - - - - - -

B NW404 Maquassi Hills 111 032 122 182 132 190 - - - 4 539 4 764 4 990 - - - - - - - - -
B NW405 JB Marks 233 655 257 206 284 098 - - - - - - - - - - - - - - -
C DC40 Dr Kenneth Kaunda District Municipality 21 710 24 064 26 042 158 323 162 977 167 384 - - - - - - - - - - - -
Total: Dr Kenneth Kaunda Municipalities 759 253 831 854 907 890 158 323 162 977 167 384 4 539 4 764 4 990 - - - - - - - - -

Total: North West Municipalities 4 685 394 5 154 546 5 629 921 633 163 665 676 699 106 97 636 102 629 107 635 412 040 314 560 - 451 161 338 940 - 493 696 364 308 -
 APPENDIX W1
APPENDIX TO SCHEDULE 3: EQUITABLE SHARE ALLOCATIONS TO MUNICIPALITIES
(EQUITABLE SHARE FORMULA ALLOCATIONS + RSC LEVIES REPLACEMENT + SPECIAL SUPPORT FOR COUNCILLOR REMUNERATION AND WARD COMMITTEES + BREAKDOWN OF EQUITABLE SHARE ALLOCATIONS PER LOCAL MUNICPALITY PER SERVICE FOR
DISTRICT MUNICIPLITIES AUTHORISED FOR SERVICES)

Special Support for Councillor Remuneration

Equitable Share Formula RSC Levies Replacement BREAKDOWN OF EQUITABLE SHARE FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES
and Ward Committees
National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 Water Sanitation Refuse Water Sanitation Refuse Water Sanitation Refuse
Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) 2018/19 R'(000) 2019/20 R'(000) 2020/21 R'(000)

WESTERN CAPE

A CPT City of Cape Town 2 574 650 2 815 558 3 092 042 - - - - - - - - - - - - - - -

B WC011 Matzikama 49 215 53 241 57 700 - - - 3 125 3 278 3 432 - - - - - - - - -

B WC012 Cederberg 42 645 46 461 50 519 - - - 2 435 2 556 2 677 - - - - - - - - -
B WC013 Bergrivier 38 678 42 221 46 299 - - - 2 712 2 845 2 978 - - - - - - - - -
B WC014 Saldanha Bay 74 832 82 451 91 329 - - - 5 600 5 877 6 154 - - - - - - - - -
B WC015 Swartland 82 048 91 534 102 555 - - - - - - - - - - - - - - -
C DC1 West Coast District Municipality 16 208 17 975 19 495 72 197 74 320 76 329 - - - - - - - - - - - -
Total: West Coast Municipalities 303 626 333 883 367 897 72 197 74 320 76 329 13 872 14 556 15 241 - - - - - - - - -

B WC022 Witzenberg 84 602 92 850 102 274 - - - - - - - - - - - - - - -

B WC023 Drakenstein 137 518 150 601 165 045 - - - - - - - - - - - - - - -
B WC024 Stellenbosch 124 176 136 177 150 331 - - - - - - - - - - - - - - -
B WC025 Breede Valley 108 977 117 997 128 040 - - - - - - - - - - - - - - -
B WC026 Langeberg 68 318 74 162 80 289 - - - 4 775 5 010 5 246 - - - - - - - - -
C DC2 Cape Winelands District Municipality 2 057 2 285 2 474 223 157 229 717 235 929 - - - - - - - - - - - -
Total: Cape Winelands Municipalities 525 648 574 072 628 453 223 157 229 717 235 929 4 775 5 010 5 246 - - - - - - - - -

B WC031 Theewaterskloof 87 385 95 274 103 492 - - - - - - - - - - - - - - -

B WC032 Overstrand 90 880 100 939 111 974 - - - 5 188 5 444 5 700 - - - - - - - - -
B WC033 Cape Agulhas 25 171 27 305 29 661 - - - 2 435 2 556 2 677 - - - - - - - - -
B WC034 Swellendam 26 566 28 980 31 634 - - - 2 435 2 556 2 677 - - - - - - - - -
C DC3 Overberg District Municipality 17 925 19 852 21 456 49 977 51 446 52 837 - - - - - - - - - - - -
Total: Overberg Municipalities 247 927 272 350 298 217 49 977 51 446 52 837 10 058 10 556 11 054 - - - - - - - - -

B WC041 Kannaland 24 396 26 265 27 956 - - - 1 561 1 637 1 714 - - - - - - - - -

B WC042 Hessequa 37 137 40 106 43 495 - - - 3 748 3 934 4 120 - - - - - - - - -
277

B WC043 Mossel Bay 80 258 87 271 95 466 - - - 5 600 5 877 6 154 - - - - - - - - -

B WC044 George 137 401 149 978 164 336 - - - - - - - - - - - - - - -
B WC045 Oudtshoorn 62 673 67 721 73 057 - - - 5 188 5 444 5 700 - - - - - - - - -
B WC047 Bitou 80 316 90 061 101 099 - - - 2 712 2 845 2 978 - - - - - - - - -
B WC048 Knysna 74 012 81 332 89 393 - - - 4 363 4 577 4 793 - - - - - - - - -
C DC4 Eden District Municipality 15 987 17 715 19 187 135 250 139 226 142 990 - - - - - - - - - - - -
Total: Eden Municipalities 512 180 560 449 613 989 135 250 139 226 142 990 23 172 24 314 25 459 - - - - - - - - -

B WC051 Laingsburg 13 439 14 757 15 953 - - - 1 561 1 637 1 714 - - - - - - - - -

B WC052 Prince Albert 17 756 19 502 21 218 - - - 1 561 1 637 1 714 - - - - - - - - -
B WC053 Beaufort West 53 782 58 906 63 844 - - - 2 873 3 015 3 158 - - - - - - - - -
C DC5 Central Karoo District Municipality 12 434 13 717 14 751 13 768 14 176 14 560 2 300 2 423 2 556 - - - - - - - - -
Total: Central Karoo Municipalities 97 411 106 882 115 766 13 768 14 176 14 560 8 295 8 712 9 142 - - - - - - - - -

Total: Western Cape Municipalities 4 261 442 4 663 194 5 116 364 494 349 508 885 522 645 60 172 63 148 66 142 - - - - - - - - -

Unallocated - 500 000 1 000 000 - - - - - - - - - - - - - - -

National Total 56 722 358 62 633 128 69 001 433 5 072 947 5 357 032 5 651 669 936 540 983 305 1 030 224 4 287 145 3 272 902 17 495 4 712 879 3 540 603 18 640 5 180 248 3 822 603 19 820
 APPENDIX W2

APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: MUNICIPAL INFRASTRUCTURE GRANT (MIG) AND
WATER SERVICES INFRASTRUCTURE GRANT (WSIG)
278

(BREAKDOWN OF MIG AND WSIG ALLOCATIONS PER LOCAL MUNICIPALITY FOR DISTRICT MUNICIPALITIES
AUTHORISED FOR SERVICES)

(National and Municipal Financial Years)

 APPENDIX W2
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: MUNICIPAL INFRASTRUCTURE GRANT (MIG) AND WATER SERVICES INFRASTRUCTURE GRANT (WSIG)

(BREAKDOWN OF MIG AND WSIG ALLOCATIONS PER LOCAL MUNICIPALITY FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES)

Schedule 5, Part B Schedule 6, Part B

Breakdown of MIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities
authorised for services authorised for services authorised for services

National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

B EC121 Mbhashe 154 676 158 126 167 670 20 000 20 000 20 000 - - -
B EC122 Mnquma 143 783 146 990 155 861 15 000 15 000 17 000 - - -
B EC123 Great Kei 8 741 8 936 9 476 15 000 15 000 17 000 - - -
B EC124 Amahlathi 34 368 35 134 37 255 12 000 14 000 15 000 - - -
B EC126 Ngqushwa 28 203 28 833 30 573 15 000 15 000 15 610 - - -
B EC129 Raymond Mhlaba 44 461 45 453 48 196 23 000 23 000 23 000 - - -
Total: Amathole Municipalities 414 232 423 472 449 031 100 000 102 000 107 610 - - -
B EC131 Inxuba Yethemba 4 875 4 984 5 285 7 000 17 000 17 000 - - -
B EC135 Intsika Yethu 86 992 88 933 94 300 10 000 18 000 23 000 - - -
B EC136 Emalahleni 43 644 44 617 47 310 10 000 20 000 20 000 - - -
B EC137 Engcobo 80 572 82 369 87 341 6 000 16 000 16 000 - - -
B EC138 Sakhisizwe 19 375 19 807 21 002 7 000 23 000 23 000 - - -
279

B EC139 Enoch Mgijima 40 422 41 324 43 818 10 000 14 000 14 940 - - -

Total: Chris Hani Municipalities 275 880 282 034 299 056 50 000 108 000 113 940 - - -
B EC141 Elundini 81 885 83 711 88 763 19 000 30 000 30 000 - - -
B EC142 Senqu 56 217 57 471 60 940 20 000 35 000 35 000 - - -
B EC145 Walter Sisulu 10 452 10 686 11 331 20 000 19 000 23 620 - - -
Total: Joe Gqabi Municipalities 148 554 151 868 161 034 59 000 84 000 88 620 - - -
B EC153 Ngquza Hill 139 103 142 205 150 788 15 000 17 000 21 000 - - -
B EC154 Port St Johns 79 071 80 835 85 714 17 000 19 000 19 000 - - -
B EC155 Nyandeni 142 331 145 505 154 288 22 000 25 000 25 000 - - -
B EC156 Mhlontlo 89 303 91 295 96 805 19 000 21 000 22 000 - - -
B EC157 King Sabata Dalindyebo 164 876 168 554 178 727 17 000 18 000 18 500 - - -
Total: O.R. Tambo Municipalities 614 684 628 394 666 322 90 000 100 000 105 500 - - -
B EC441 Matatiele 88 136 90 102 95 541 - - - - - -
B EC442 Umzimvubu 89 493 91 489 97 011 110 000 90 000 94 950 - - -
B EC443 Mbizana 130 167 133 070 141 102 - - - - - -
B EC444 Ntabankulu 55 118 56 347 59 748 - - - - - -
Total: Alfred Nzo Municipalities 362 914 371 008 393 402 110 000 90 000 94 950 - - -

Total: Eastern Cape Municipalities 1 816 264 1 856 776 1 968 845 409 000 484 000 510 620 - - -
 APPENDIX W2
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: MUNICIPAL INFRASTRUCTURE GRANT (MIG) AND WATER SERVICES INFRASTRUCTURE GRANT (WSIG)

(BREAKDOWN OF MIG AND WSIG ALLOCATIONS PER LOCAL MUNICIPALITY FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES)

Schedule 5, Part B Schedule 6, Part B

Breakdown of MIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities
authorised for services authorised for services authorised for services

National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

B KZN212 uMdoni 42 176 43 116 45 719 15 000 25 000 26 000 - - -

B KZN213 uMzumbe 75 130 76 806 81 441 10 000 22 500 22 225 - - -
B KZN214 uMuziwabantu 33 631 34 381 36 456 10 000 22 500 27 000 - - -
B KZN216 Ray Nkonyeni 79 952 81 735 86 669 20 000 25 000 25 000 - - -
Total: Ugu Municipalities 230 889 236 038 250 285 55 000 95 000 100 225 - - -
B KZN221 uMshwathi 26 533 27 125 28 762 15 000 16 300 17 000 - - -
B KZN222 uMngeni 17 559 17 951 19 035 19 700 19 700 20 000 - - -
B KZN223 Mpofana 6 989 7 145 7 577 15 000 15 000 15 000 - - -
B KZN224 iMpendle 10 203 10 430 11 060 18 000 18 000 20 000 - - -
B KZN226 Mkhambathini 17 308 17 694 18 762 25 000 24 000 25 000 - - -
B KZN227 Richmond 16 236 16 598 17 600 10 000 17 000 19 050 - - -
Total: uMgungundlovu Municipalities 94 828 96 943 102 796 102 700 110 000 116 050 - - -
280

B KZN235 Okhahlamba 42 250 43 192 45 799 29 000 35 000 43 000 - - -

B KZN237 iNkosi Langalibalele 57 011 58 283 61 800 30 000 40 000 37 000 - - -
B KZN238 Alfred Duma 75 773 77 463 82 138 24 000 33 000 33 940 - - -
Total: uThukela Municipalities 175 034 178 938 189 737 83 000 108 000 113 940 - - -
B KZN241 eNdumeni 8 678 8 872 9 407 14 000 29 000 31 000 - - -
B KZN242 Nquthu 46 070 47 098 49 940 13 000 23 000 26 000 - - -
B KZN244 uMsinga 76 211 77 911 82 614 13 000 32 000 32 000 - - -
B KZN245 uMvoti 48 525 49 607 52 601 15 000 21 000 21 775 - - -
Total: uMzinyathi Municipalities 179 484 183 488 194 562 55 000 105 000 110 775 - - -
B KZN253 eMadlangeni 9 826 10 045 10 651 31 400 48 000 48 000 - - -
B KZN254 Dannhauser 25 427 25 994 27 563 53 000 40 000 44 840 - - -
Total: Amajuba Municipalities 35 253 36 039 38 214 84 400 88 000 92 840 - - -
 APPENDIX W2
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: MUNICIPAL INFRASTRUCTURE GRANT (MIG) AND WATER SERVICES INFRASTRUCTURE GRANT (WSIG)

(BREAKDOWN OF MIG AND WSIG ALLOCATIONS PER LOCAL MUNICIPALITY FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES)

Schedule 5, Part B Schedule 6, Part B

Breakdown of MIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities
authorised for services authorised for services authorised for services

National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)
B KZN261 eDumbe 14 994 15 328 16 253 9 000 14 000 19 500 - - -
B KZN262 uPhongolo 42 859 43 815 46 460 22 000 22 000 22 000 - - -
B KZN263 AbaQulusi 45 999 47 026 49 864 19 000 15 000 15 000 - 14 000 -
B KZN265 Nongoma 67 293 68 794 72 946 35 000 31 000 31 000 - 10 000 -
B KZN266 Ulundi 44 616 45 611 48 364 30 000 18 000 18 000 - - -
Total: Zululand Municipalities 215 761 220 574 233 887 115 000 100 000 105 500 - 24 000 -
B KZN271 uMhlabuyalingana 57 713 59 000 62 561 15 000 20 000 22 000 - - -
B KZN272 Jozini 69 056 70 596 74 857 15 000 25 000 25 000 - - -
B KZN275 Mtubatuba 51 845 53 001 56 200 12 000 17 000 19 000 - - -
B KZN276 Big Five Hlabisa 26 765 27 362 29 014 13 000 18 000 18 400 - - -
Total: uMkhanyakude Municipalities 205 379 209 959 222 632 55 000 80 000 84 400 - - -
B KZN281 uMfolozi 30 993 31 685 33 597 12 000 22 000 19 115 - - -
B KZN284 uMlalazi 70 602 72 177 76 533 23 000 23 000 27 000 - - -
B KZN285 Mthonjaneni 27 079 27 683 29 354 13 000 23 000 22 000 - - -
B KZN286 Nkandla 33 526 34 274 36 342 25 000 25 000 30 000 - - -
281

Total: King Cetshwayo Municipalities 162 200 165 819 175 826 73 000 93 000 98 115 - - -
B KZN291 Mandeni 40 044 40 937 43 408 20 000 27 000 27 000 - - -
B KZN292 KwaDukuza 59 986 61 324 65 025 25 000 25 000 26 996 - - -
B KZN293 Ndwedwe 41 949 42 885 45 473 30 000 30 000 27 000 - - -
B KZN294 Maphumulo 41 524 42 451 45 013 25 500 25 105 32 000 - - -
Total: iLembe Municipalities 183 503 187 597 198 919 100 500 107 105 112 996 - - -
B KZN433 Greater Kokstad 9 921 10 143 10 755 19 000 22 000 25 000 - - -
B KZN434 uBuhlebezwe 45 153 46 161 48 947 17 000 24 000 24 390 - - -
B KZN435 uMzimkhulu 92 850 94 921 100 650 23 000 25 000 26 000 - - -
B KZN436 Dr Nkosazana Dlamini Zuma 43 662 44 635 47 329 21 400 27 000 28 000 - - -
Total: Harry Gwala Municipalities 191 586 195 860 207 681 80 400 98 000 103 390 - - -

Total: KwaZulu-Natal Municipalities 1 673 917 1 711 255 1 814 539 804 000 984 105 1 038 231 - 24 000 -
 APPENDIX W2
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: MUNICIPAL INFRASTRUCTURE GRANT (MIG) AND WATER SERVICES INFRASTRUCTURE GRANT (WSIG)

(BREAKDOWN OF MIG AND WSIG ALLOCATIONS PER LOCAL MUNICIPALITY FOR DISTRICT MUNICIPALITIES AUTHORISED FOR SERVICES)

Schedule 5, Part B Schedule 6, Part B

Breakdown of MIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities Breakdown of WSIG allocations for district municipalities
authorised for services authorised for services authorised for services

National and Municipal Financial Year National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Category Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani 110 183 112 641 119 439 36 000 37 000 37 000 - - -
B LIM332 Greater Letaba 87 222 89 167 94 549 17 000 19 000 19 000 - - -
B LIM333 Greater Tzaneen 173 752 177 628 188 349 19 000 19 000 21 000 - - -
B LIM334 Ba-Phalaborwa 30 958 31 649 33 559 14 000 14 000 17 050 - - -
B LIM335 Maruleng 37 377 38 210 40 517 21 000 21 000 22 000 - - -
Total: Mopani Municipalities 439 492 449 295 476 413 107 000 110 000 116 050 - - -
B LIM341 Musina 26 985 27 587 29 252 20 000 20 000 20 000 - - -
B LIM343 Thulamela 181 868 185 924 197 146 10 000 10 000 11 000 - - -
B LIM344 Makhado 155 321 158 786 168 370 5 000 10 000 10 500 - - -
B LIM345 Collins Chabane 134 472 137 471 145 769 10 000 10 000 11 250 - - -
Total: Vhembe Municipalities 498 646 509 768 540 537 45 000 50 000 52 750 - - -
B LIM351 Blouberg 77 890 79 627 84 433 20 000 30 000 35 000 - - -
B LIM353 Molemole 51 964 53 123 56 330 20 000 30 000 35 000 - - -
282

B LIM355 Lepele-Nkumpi 91 008 93 038 98 654 38 000 45 000 40 775 - - -

Total: Capricorn Municipalities 220 862 225 788 239 417 78 000 105 000 110 775 - - -
B LIM471 Ephraim Mogale 45 656 46 674 49 491 18 000 18 000 18 000 - - -
B LIM472 Elias Motsoaledi 110 238 112 696 119 498 15 000 20 000 20 000 - - -
B LIM473 Makhuduthamaga 125 815 128 621 136 384 17 000 17 000 20 000 - - -
B LIM476 Fetakgomo Tubatse 178 229 182 204 193 201 15 000 15 000 15 850 - - -
Total: Sekhukhune Municipalities 459 938 470 195 498 574 65 000 70 000 73 850 - - -

Total: Limpopo Municipalities 1 618 938 1 655 046 1 754 941 295 000 335 000 353 425 - - -

NORTH WEST

B NW381 Ratlou 47 321 48 376 51 296 - - - - 30 000 45 000

B NW382 Tswaing 36 566 37 382 39 638 - - - - 29 000 40 000
B NW383 Mafikeng 105 744 108 103 114 627 - - - - 26 233 35 000
B NW384 Ditsobotla 43 739 44 715 47 414 - - - - 30 000 40 000
B NW385 Ramotshere Moiloa 54 703 55 923 59 299 - - - - 30 000 40 000
Total: Ngaka Modiri Molema Municipalities 288 073 294 499 312 274 - - - - 145 233 200 000
B NW392 Naledi 11 249 11 500 12 194 21 000 24 000 26 000 - - -
B NW393 Mamusa 9 600 9 815 10 407 15 000 19 000 19 775 - - -
B NW394 Greater Taung 70 033 71 595 75 916 16 000 19 000 19 000 - - -
B NW396 Lekwa-Teemane 3 884 3 970 4 210 19 557 21 000 21 000 - - -
B NW397 Kagisano-Molopo 35 717 36 513 38 717 20 000 22 000 25 000 - - -
Total: Dr Ruth Segomotsi Mompati Municipalities 130 483 133 393 141 444 91 557 105 000 110 775 - - -

Total: North West Municipalities 418 556 427 892 453 718 91 557 105 000 110 775 - 145 233 200 000

National Total 5 527 675 5 650 969 5 992 043 1 599 557 1 908 105 2 013 051 - 169 233 200 000
 APPENDIX W3

APPENDIX TO SCHEDULE 5, PART B: MUNICIPAL INFRASTRUCTURE GRANT

283

RING-FENCED FUNDING FOR SPORT INFRASTRUCTURE - BREAKDOWN PER MUNICIPALITY

(National and Municipal Financial Years)

 284

APPENDIX W3
APPENDIX TO SCHEDULE 5, PART B: MUNICIPAL INFRASTRUCTURE GRANT

RING-FENCED FUNDING FOR SPORT INFRASTRUCTURE - BREAKDOWN PER MUNICIPALITY

Ring-fenced Municipal Infrastructure Grant

allocations for sport infrastructure
National and Municipal Financial Year

2018/19 2019/20 2020/21

Category Municipality Project
(R'000) (R'000) (R'000)

EASTERN CAPE

B EC121 Mbhashe 8SJUDGLQJRI1JXPEHODVSRUWIDFLOLW\±1J[DND[KD 11 400 - -

Total: Amathole Municipalities 11 400 - -

B EC136 Emalahleni Construction of Indwe sport ground 11 000 - -
Total: Chris Hani Municipalities 11 000 - -
B EC153 Ngquza Hill Construction of a multi purpose sport field 8 550 - -
Total: O.R. Tambo Municipalities 8 550 - -
B EC441 Matatiele Construction of Cedarville sport center 11 400 - -
Total: Alfred Nzo Municipalities 11 400 - -

Total: Eastern Cape Municipalities 42 350 - -

FREE STATE

B FS161 Letsemeng Upgrading of stadium at Sonwabile in Koffiefontein 13 065 - -

Total: Xhariep Municipalities 13 065 - -
B FS183 Tswelopele Construction of a cricket pitch and a clubhouse 7 600 - -

Total: Lejweleputswa Municipalities 7 600 - -

B FS191 Setsoto Upgrading of Moemang sport and recreation facility 11 500 - -

B FS196 Mantsopa Construction of Hobhouse sport facilities 13 115 - -

Total: Thabo Mofutsanyana Municipalities 24 615 - -

Total: Free State Municipalities 45 280 - -

GAUTENG

B GT481 Mogale City Upgrading of Rietvallei sport complex 3 659 - -

Total: West Rand Municipalities 3 659 - -

Total: Gauteng Municipalities 3 659 - -

KWAZULU-NATAL

B KZN238 Alfred Duma Construction of Acaciaville sport field 9 500 - -

Total: uThukela Municipalities 9 500 - -

B KZN261 eDumbe Construction of Bilanyoni sport field 9 500 - -
Total: Zululand Municipalities 9 500 - -
B KZN284 uMlalazi Construction of Basamlilo sport field 9 500 - -

B KZN286 Nkandla Construction of Nkungumathe sport field 9 500 - -

Total: King Cetshwayo Municipalities 19 000 - -

Total: KwaZulu-Natal Municipalities 38 000 - -

LIMPOPO

B LIM343 Thulamela Upgrading of Makwarela Stadium 17 000 - -

Total: Vhembe Municipalities 17 000 - -

B LIM366 Bela-Bela Construction of Moloto Street Stadium 12 075 - -

Total: Waterberg Municipalities 12 075 - -

B LIM473 Makhuduthamaga Construction of Moroangoato sport ground 5 125 - -
Total: Sekhukhune Municipalities 5 125 - -

Total: Limpopo Municipalities 34 200 - -

 285

APPENDIX W3
APPENDIX TO SCHEDULE 5, PART B: MUNICIPAL INFRASTRUCTURE GRANT

RING-FENCED FUNDING FOR SPORT INFRASTRUCTURE - BREAKDOWN PER MUNICIPALITY

Ring-fenced Municipal Infrastructure Grant

allocations for sport infrastructure
National and Municipal Financial Year

2018/19 2019/20 2020/21

Category Municipality Project
(R'000) (R'000) (R'000)

MPUMALANGA

B MP305 Lekwa Upgrading of courts at Sakhile Stadium 1 710 - -

B MP306 Dipaleseng Upgrading of Siyathemba Stadium 13 864 - -

Total: Gert Sibande Municipalities 15 574 - -
B MP321 Thaba Chweu Construction of sports facilities and multi-purpose sport courts 9 000 - -

B MP326 City of Mbombela Construction of Masoyi sport ground 10 400 - -

Total: Ehlanzeni Municipalities 19 400 - -

Total: Mpumalanga Municipalities 34 974 - -

NORTHERN CAPE

B NC064 Kamiesberg Upgrading of Hondeklip Bay sport complex 4 370 - -

Total: Namakwa Municipalities 4 370 - -

B NC094 Phokwane Upgrading of Ganspan sport complex 11 290 - -

Total: Frances Baard Municipalities 11 290 - -

B NC452 Ga-Segonyana Upgrading of Mothibistad sport complex 10 545 - -

B NC453 Gamagara Construction of Kathu sport facility 2 009 - -

Total: John Taolo Gaetsewe Municipalities 12 554 - -

Total: Northern Cape Municipalities 28 214 - -

NORTH WEST

B NW372 Madibeng Construction of Maboloka sport facility 9 500 - -

Total: Bojanala Platinum Municipalities 9 500 - -
B NW382 Tswaing Refurbishment of Agisanang sport facility 10 550 - -

Total: Ngaka Modiri Molema Municipalities 10 550 - -

B NW392 Naledi Construction of Huhudi sport facility 12 500 - -

Total: Dr Ruth Segomotsi Mompati Municipalities 12 500 - -

Total: North West Municipalities 32 550 - -

WESTERN CAPE

Upgrading of existing Eric Goldschmidt sport ground, Velddrift. Eendekuil

B WC013 Bergrivier 5 415 - -
sport ground in Eendekuil. Pella Park sport ground in Porterville
Total: West Coast Municipalities 5 415 - -
B WC044 George Upgrading of sport facilities in Rosemore with a tartan track 8 550 - -

Total: Eden Municipalities 8 550 - -

Total: Western Cape Municipalities 13 965 - -

Unallocated - 266 166 266 166

National Total 273 192 266 166 266 166

 APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT
286

FOR MUNICIPALITIES

(National and Municipal Financial Years)

 287

APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME

INTEGRATED GRANT FOR MUNICIPALITIES

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Category Municipality
(R'000) (R'000) (R'000)

EASTERN CAPE

A BUF Buffalo City 3 200 4 050 - -

A NMA Nelson Mandela Bay 3 822 6 711 - -

B EC101 Dr Beyers Naude 98 1 032 - -

B EC102 Blue Crane Route 72 1 000 - -
B EC104 Makana 114 1 000 - -
B EC105 Ndlambe 127 1 000 - -
B EC106 Sundays River Valley 119 1 000 - -
B EC108 Kouga 145 1 013 - -
B EC109 Kou-Kamma 76 1 000 - -
C DC10 Sarah Baartman District Municipality 13 1 000 - -
Total: Sarah Baartman Municipalities 764 8 045 - -

B EC121 Mbhashe 317 5 015 - -

B EC122 Mnquma 280 1 308 - -
B EC123 Great Kei 61 1 168 - -
B EC124 Amahlathi 136 1 449 - -
B EC126 Ngqushwa 112 1 480 - -
B EC129 Raymond Mhlaba 187 1 752 - -
C DC12 Amathole District Municipality 1 838 2 446 - -
Total: Amathole Municipalities 2 931 14 618 - -

B EC131 Inxuba Yethemba 85 1 456 - -

B EC135 Intsika Yethu 218 2 898 - -
B EC136 Emalahleni 166 2 022 - -
B EC137 Engcobo 189 2 160 - -
B EC138 Sakhisizwe 100 1 951 - -
B EC139 Enoch Mgijima 282 4 253 - -
C DC13 Chris Hani District Municipality 1 290 6 158 - -
Total: Chris Hani Municipalities 2 330 20 898 - -

B EC141 Elundini 186 1 777 - -

B EC142 Senqu 197 2 796 - -
B EC145 Walter Sisulu 98 1 517 - -
C DC14 Joe Gqabi District Municipality 689 2 254 - -
Total: Joe Gqabi Municipalities 1 170 8 344 - -

B EC153 Ngquza Hill 246 1 398 - -

B EC154 Port St Johns 166 1 775 - -
B EC155 Nyandeni 272 1 321 - -
B EC156 Mhlontlo 209 1 821 - -
B EC157 King Sabata Dalindyebo 413 3 954 - -
C DC15 O.R. Tambo District Municipality 2 734 4 882 - -
Total: O.R. Tambo Municipalities 4 040 15 151 - -

B EC441 Matatiele 247 3 185 - -

B EC442 Umzimvubu 226 2 476 - -
B EC443 Mbizana 232 2 335 - -
B EC444 Ntabankulu 138 1 909 - -
C DC44 Alfred Nzo District Municipality 1 726 10 844 - -
Total: Alfred Nzo Municipalities 2 569 20 749 - -

Total: Eastern Cape Municipalities 20 826 98 566 - -

 288

APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME

INTEGRATED GRANT FOR MUNICIPALITIES

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Category Municipality
(R'000) (R'000) (R'000)

FREE STATE

A MAN Mangaung 3 150 2 423 - -

B FS161 Letsemeng 84 1 000 - -

B FS162 Kopanong 98 1 000 - -
B FS163 Mohokare 87 1 000 - -
C DC16 Xhariep District Municipality 13 1 029 - -
Total: Xhariep Municipalities 282 4 029 - -

B FS181 Masilonyana 110 1 000 - -

B FS182 Tokologo 81 1 000 - -
B FS183 Tswelopele 81 1 000 - -
B FS184 Matjhabeng 514 1 000 - -
B FS185 Nala 136 1 000 - -
C DC18 Lejweleputswa District Municipality 13 1 000 - -
Total: Lejweleputswa Municipalities 935 6 000 - -

B FS191 Setsoto 218 1 517 - -

B FS192 Dihlabeng 174 1 000 - -
B FS193 Nketoana 119 1 054 - -
B FS194 Maluti-a-Phofung 739 4 120 - -
B FS195 Phumelela - - - -
B FS196 Mantsopa 98 1 130 - -
C DC19 Thabo Mofutsanyana District Municipality 15 1 180 - -
Total: Thabo Mofutsanyana Municipalities 1 363 10 001 - -

B FS201 Moqhaka 181 1 000 - -

B FS203 Ngwathe - - - -
B FS204 Metsimaholo 200 1 000 - -
B FS205 Mafube - - - -
C DC20 Fezile Dabi District Municipality - - - -
Total: Fezile Dabi Municipalities 381 2 000 - -

Total: Free State Municipalities 6 111 24 453 - -

GAUTENG

A EKU City of Ekurhuleni 8 458 25 054 - -

A JHB City of Johannesburg 8 091 34 737 - -
A TSH City of Tshwane 7 038 32 013 - -

B GT421 Emfuleni 747 2 746 - -

B GT422 Midvaal 148 1 181 - -
B GT423 Lesedi 127 1 297 - -
C DC42 Sedibeng District Municipality 13 1 000 - -
Total: Sedibeng Municipalities 1 035 6 224 - -

B GT481 Mogale City 548 4 346 - -

B GT484 Merafong City 293 1 180 - -
B GT485 Rand West City 411 2 135 - -
C DC48 West Rand District Municipality 14 1 105 - -
Total: West Rand Municipalities 1 266 8 766 - -

Total: Gauteng Municipalities 25 888 106 794 - -

 289

APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME

INTEGRATED GRANT FOR MUNICIPALITIES

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Category Municipality
(R'000) (R'000) (R'000)

KWAZULU-NATAL

A ETH eThekwini 9 091 75 333 - -

B KZN212 uMdoni 144 1 219 - -

B KZN213 uMzumbe 162 1 526 - -
B KZN214 uMuziwabantu 113 1 213 - -
B KZN216 Ray Nkonyeni 311 4 061 - -
C DC21 Ugu District Municipality 1 058 3 250 - -
Total: Ugu Municipalities 1 788 11 269 - -

B KZN221 uMshwathi 134 1 471 - -

B KZN222 uMngeni 109 1 000 - -
B KZN223 Mpofana 62 1 000 - -
B KZN224 iMpendle 63 1 160 - -
B KZN225 Msunduzi 870 2 890 - -
B KZN226 Mkhambathini 79 1 034 - -
B KZN227 Richmond 96 1 515 - -
C DC22 uMgungundlovu District Municipality 484 4 265 - -
Total: uMgungundlovu Municipalities 1 897 14 335 - -

B KZN235 Okhahlamba 150 2 432 - -

B KZN237 iNkosi Langalibalele 175 1 387 - -
B KZN238 Alfred Duma 315 4 319 - -
C DC23 uThukela District Municipality 856 6 206 - -
Total: uThukela Municipalities 1 496 14 344 - -

B KZN241 eNdumeni 76 1 000 - -

B KZN242 Nquthu 143 1 014 - -
B KZN244 uMsinga 213 4 394 - -
B KZN245 uMvoti 148 1 849 - -
C DC24 uMzinyathi District Municipality 860 5 109 - -
Total: uMzinyathi Municipalities 1 440 13 366 - -

B KZN252 Newcastle 515 3 199 - -

B KZN253 eMadlangeni 51 1 000 - -
B KZN254 Dannhauser 103 1 000 - -
C DC25 Amajuba District Municipality 193 1 620 - -
Total: Amajuba Municipalities 862 6 819 - -

B KZN261 eDumbe 89 1 103 - -

B KZN262 uPhongolo 151 2 534 - -
B KZN263 AbaQulusi 172 1 295 - -
B KZN265 Nongoma 154 1 615 - -
B KZN266 Ulundi 179 3 854 - -
C DC26 Zululand District Municipality 1 027 5 908 - -
Total: Zululand Municipalities 1 772 16 309 - -

B KZN271 uMhlabuyalingana 186 3 047 - -

B KZN272 Jozini 192 2 751 - -
B KZN275 Mtubatuba 159 2 070 - -
B KZN276 Big Five Hlabisa 113 1 826 - -
C DC27 uMkhanyakude District Municipality 944 3 022 - -
Total: uMkhanyakude Municipalities 1 594 12 716 - -

B KZN281 uMfolozi 130 1 620 - -

B KZN282 uMhlathuze 516 5 189 - -
B KZN284 uMlalazi 211 3 212 - -
B KZN285 Mthonjaneni 98 1 808 - -
B KZN286 Nkandla 130 2 712 - -
C DC28 King Cetshwayo District Municipality 820 7 762 - -
Total: King Cetshwayo Municipalities 1 905 22 303 - -

B KZN291 Mandeni 177 2 255 - -

B KZN292 KwaDukuza 236 1 540 - -
B KZN293 Ndwedwe 140 1 195 - -
B KZN294 Maphumulo 108 1 157 - -
C DC29 iLembe District Municipality 834 1 731 - -
Total: iLembe Municipalities 1 495 7 878 - -

B KZN433 Greater Kokstad 88 1 311 - -

B KZN434 uBuhlebezwe 133 1 590 - -
B KZN435 uMzimkhulu 211 2 324 - -
B KZN436 Dr Nkosazana Dlamini Zuma 1 151 1 596 - -
C DC43 Harry Gwala District Municipality 879 2 518 - -
Total: Harry Gwala Municipalities 2 462 9 339 - -

Total: KwaZulu-Natal Municipalities 25 802 204 011 - -

 290

APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME

INTEGRATED GRANT FOR MUNICIPALITIES

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Category Municipality
(R'000) (R'000) (R'000)

LIMPOPO

B LIM331 Greater Giyani 300 3 519 - -

B LIM332 Greater Letaba 261 1 521 - -
B LIM333 Greater Tzaneen 468 5 510 - -
B LIM334 Ba-Phalaborwa 147 1 000 - -
B LIM335 Maruleng 127 1 169 - -
C DC33 Mopani District Municipality 1 931 1 232 - -
Total: Mopani Municipalities 3 234 13 951 - -

B LIM341 Musina 135 1 040 - -

B LIM343 Thulamela 499 6 225 - -
B LIM344 Makhado 392 1 240 - -
B LIM345 Collins Chabane 360 1 134 - -
C DC34 Vhembe District Municipality 2 187 1 215 - -
Total: Vhembe Municipalities 3 573 10 854 - -

B LIM351 Blouberg 200 1 089 - -

B LIM353 Molemole 161 1 101 - -
B LIM354 Polokwane 1 500 5 742 - -
B LIM355 Lepele-Nkumpi 250 1 758 - -
C DC35 Capricorn District Municipality 1 019 3 642 - -
Total: Capricorn Municipalities 3 130 13 332 - -

B LIM361 Thabazimbi 156 1 343 - -

B LIM362 Lephalale 209 2 014 - -
B LIM366 Bela-Bela 123 1 154 - -
B LIM367 Mogalakwena 678 1 537 - -
B LIM368 Modimolle-Mookgophong 174 1 021 - -
C DC36 Waterberg District Municipality - - - -
Total: Waterberg Municipalities 1 340 7 069 - -

B LIM471 Ephraim Mogale 161 1 594 - -

B LIM472 Elias Motsoaledi 243 1 002 - -
B LIM473 Makhuduthamaga 274 1 004 - -
B LIM476 Fetakgomo Tubatse 380 2 035 - -
C DC47 Sekhukhune District Municipality 2 027 1 746 - -
Total: Sekhukhune Municipalities 3 085 7 381 - -

Total: Limpopo Municipalities 14 362 52 587 - -

MPUMALANGA

B MP301 Chief Albert Luthuli 391 1 901 - -

B MP302 Msukaligwa 247 2 006 - -
B MP303 Mkhondo 359 2 281 - -
B MP304 Dr Pixley ka Isaka Seme 122 1 259 - -
B MP305 Lekwa 133 1 000 - -
B MP306 Dipaleseng 98 1 537 - -
B MP307 Govan Mbeki 267 1 937 - -
C DC30 Gert Sibande District Municipality 50 3 872 - -
Total: Gert Sibande Municipalities 1 667 15 793 - -

B MP311 Victor Khanye 130 1 994 - -

B MP312 Emalahleni 560 4 231 - -
B MP313 Steve Tshwete 262 4 151 - -
B MP314 Emakhazeni 90 1 184 - -
B MP315 Thembisile Hani 545 1 984 - -
B MP316 Dr JS Moroka 564 2 955 - -
C DC31 Nkangala District Municipality 47 3 626 - -
Total: Nkangala Municipalities 2 198 20 125 - -

B MP321 Thaba Chweu 223 1 931 - -

B MP324 Nkomazi 1 035 6 708 - -
B MP325 Bushbuckridge 1 635 4 447 - -
B MP326 City of Mbombela 1 514 8 240 - -
C DC32 Ehlanzeni District Municipality 40 3 067 - -
Total: Ehlanzeni Municipalities 4 447 24 393 - -

Total: Mpumalanga Municipalities 8 312 60 311 - -

 291

APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME

INTEGRATED GRANT FOR MUNICIPALITIES

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Category Municipality
(R'000) (R'000) (R'000)

NORTHERN CAPE

B NC061 Richtersveld 42 1 000 - -

B NC062 Nama Khoi 73 1 000 - -
B NC064 Kamiesberg 43 1 000 - -
B NC065 Hantam 57 1 345 - -
B NC066 Karoo Hoogland - - - -
B NC067 Khâi-Ma 44 1 000 - -
C DC6 Namakwa District Municipality - - - -
Total: Namakwa Municipalities 259 5 345 - -

B NC071 Ubuntu 53 1 000 - -

B NC072 Umsobomvu 60 1 000 - -
B NC073 Emthanjeni 63 1 000 - -
B NC074 Kareeberg 45 1 000 - -
B NC075 Renosterberg 43 1 000 - -
B NC076 Thembelihle 51 1 000 - -
B NC077 Siyathemba 53 1 000 - -
B NC078 Siyancuma 81 1 000 - -
C DC7 Pixley Ka Seme District Municipality 13 1 000 - -
Total: Pixley Ka Seme Municipalities 462 9 000 - -

B NC082 !Kai !Garib 113 1 547 - -

B NC084 !Kheis 57 1 000 - -
B NC085 Tsantsabane 77 1 000 - -
B NC086 Kgatelopele - - - -
B NC087 Dawid Kruiper - - - -
C DC8 Z.F. Mgcawu District Municipality - - - -
Total: Z.F. Mgcawu Municipalities 247 3 547 - -

B NC091 Sol Plaatjie 250 3 137 - -

B NC092 Dikgatlong 95 1 084 - -
B NC093 Magareng 59 1 000 - -
B NC094 Phokwane - - - -
C DC9 Frances Baard District Municipality 14 1 113 - -
Total: Frances Baard Municipalities 418 6 334 - -

B NC451 Joe Morolong 271 1 447 - -

B NC452 Ga-Segonyana 236 1 000 - -
B NC453 Gamagara 64 1 235 - -
C DC45 John Taolo Gaetsewe District Municipality 13 1 000 - -
Total: John Taolo Gaetsewe Municipalities 584 4 682 - -

Total: Northern Cape Municipalities 1 970 28 908 - -

NORTH WEST

B NW371 Moretele 23 1 772 - -

B NW372 Madibeng 1 202 1 174 - -
B NW373 Rustenburg 1 036 3 545 - -
B NW374 Kgetlengrivier 122 1 159 - -
B NW375 Moses Kotane 643 1 000 - -
C DC37 Bojanala Platinum District Municipality 20 1 558 - -
Total: Bojanala Platinum Municipalities 3 046 10 208 - -

B NW381 Ratlou 141 1 448 - -

B NW382 Tswaing 143 1 632 - -
B NW383 Mafikeng 323 5 063 - -
B NW384 Ditsobotla 178 1 918 - -
B NW385 Ramotshere Moiloa 169 1 094 - -
C DC38 Ngaka Modiri Molema District Municipality 1 279 1 277 - -
Total: Ngaka Modiri Molema Municipalities 2 233 12 432 - -

B NW392 Naledi 91 1 652 - -

B NW393 Mamusa 79 1 098 - -
B NW394 Greater Taung 213 1 077 - -
B NW396 Lekwa-Teemane - - - -
B NW397 Kagisano-Molopo 159 2 639 - -
C DC39 Dr Ruth Segomotsi Mompati District Municipality 599 1 278 - -
Total: Dr Ruth Segomotsi Mompati Municipalities 1 141 7 744 - -

B NW403 City of Matlosana 394 2 037 - -

B NW404 Maquassi Hills 130 1 017 - -
B NW405 JB Marks 305 1 947 - -
C DC40 Dr Kenneth Kaunda District Municipality 15 1 151 - -
Total: Dr Kenneth Kaunda Municipalities 844 6 152 - -

Total: North West Municipalities 7 264 36 536 - -

 292

APPENDIX W4

APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME

INTEGRATED GRANT FOR MUNICIPALITIES

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Category Municipality
(R'000) (R'000) (R'000)

WESTERN CAPE

A CPT City of Cape Town 6 439 24 266 - -

B WC011 Matzikama 109 1 630 - -

B WC012 Cederberg 89 1 819 - -
B WC013 Bergrivier 78 1 413 - -
B WC014 Saldanha Bay 107 2 055 - -
B WC015 Swartland 108 1 572 - -
C DC1 West Coast District Municipality 14 1 047 - -
Total: West Coast Municipalities 505 9 536 - -

B WC022 Witzenberg 116 1 780 - -

B WC023 Drakenstein 205 4 433 - -
B WC024 Stellenbosch 223 5 722 - -
B WC025 Breede Valley 184 3 066 - -
B WC026 Langeberg 114 1 740 - -
C DC2 Cape Winelands District Municipality 18 1 391 - -
Total: Cape Winelands Municipalities 860 18 132 - -

B WC031 Theewaterskloof 129 1 451 - -

B WC032 Overstrand 116 1 926 - -
B WC033 Cape Agulhas 60 1 141 - -
B WC034 Swellendam 65 1 266 - -
C DC3 Overberg District Municipality 15 1 125 - -
Total: Overberg Municipalities 385 6 909 - -

B WC041 Kannaland 56 1 055 - -

B WC042 Hessequa 69 1 026 - -
B WC043 Mossel Bay 130 2 337 - -
B WC044 George 239 5 466 - -
B WC045 Oudtshoorn 127 2 822 - -
B WC047 Bitou 118 2 615 - -
B WC048 Knysna 119 1 187 - -
C DC4 Eden District Municipality 13 1 021 - -
Total: Eden Municipalities 871 17 529 - -

B WC051 Laingsburg 39 1 000 - -

B WC052 Prince Albert 44 1 042 - -
B WC053 Beaufort West 74 1 285 - -
C DC5 Central Karoo District Municipality 13 1 013 - -
Total: Central Karoo Municipalities 170 4 340 - -

Total: Western Cape Municipalities 9 230 80 712 - -

Unallocated - 741 917 782 918

National Total 119 765 692 878 741 917 782 918
 APPENDIX W5

APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: REGIONAL BULK INFRASTRUCTURE GRANT
293

BREAKDOWN OF REGIONAL BULK INFRASTRUCTURE GRANT ALLOCATIONS PER LOCAL MUNICIPALITY PER
PROJECT

(National and Municipal Financial Years)

 APPENDIX W5
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: REGIONAL BULK INFRASTRUCTURE GRANT

BREAKDOWN OF REGIONAL BULK INFRASTRUCTURE GRANT ALLOCATIONS PER LOCAL MUNICIPALITY PER PROJECT

Schedule 5, Part B Schedule 6, Part B

Breakdown of regional bulk infrastructure grant allocations per local municipality per project
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Project Code Project Name Category Water Services Authority Benefitting Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

EASTERN CAPE

Nooitgedagt Bulk Water Supply A NMA Nelson Mandela Bay Metropolitan Municipality Nelson Mandela Bay Metropolitan Municipality - - - 117 400 218 000 151 366
Total: Nelson Mandela Bay Metropolitan Municipality - - - 117 400 218 000 151 366

ECR042 Ikwezi Bulk Water Supply B EC101 Dr Beyers Naude Local Municipality Dr Beyers Naude Local Municipality - - - 5 000 2 000 15 000
ECR041 Misgund Bulk Water Supply B EC109 Kou-kamma Local Municipality Koukamma Local Municipality - - - 10 000 1 000 15 000
ECR047 James Kleynhans Bulk Water Supply (BWS) B EC104 Makana Local Municipality Makana Local Municipality - - - 20 000 25 000 20 000
EC NEW Belmont Waste Water Treatment Works (WWTW) B EC104 Makana Local Municipality Makana Local Municipality - - - 2 500 15 000 -
BEP Makana Bulk Sewer B EC104 Makana Local Municipality Makana Local Municipality - - - 2 500 - -
EC NEW Mayfield Waste Water Treatment Works B EC104 Makana Local Municipality Makana Local Municipality - - - 2 500 8 000 -
ECR038 Graaf-Reinet Emergency Water Supply Scheme (WSS) B EC102 Blue Crane Route LM Dr Beyers Naude Local Municipality - - - 5 000 3 500 2 000
ECR037 Ndlambe Dam/ Albany Coast BWS (Grahanstown and Port Alfred
B EC105 Ndlambe Local Municipality Ndlambe Local Municipality - - - 5 000 - -
Augmentation)
ECR024 Sundays River - Paterson Bulk Water Supply B EC106 Sundays River Valley Local Municipality Sundays River Valley Local Municipality - - - 9 000 - -
ECR043 Kirkwood Water Treatment Works B EC106 Sundays River Valley Local Municipality Sundays River Valley Local Municipality - - - 5 000 2 000 20 000
Total: Sarah Baartman Municipalities - - - 66 500 56 500 72 000

ECR015 Xhora East Water Supply C DC12 Amathole District Municipality Mbhashe Local Municipality - - - 70 000 3 193 1 000
Sundwana Water Supply C DC12 Amathole District Municipality Mbhashe Local Municipality - - - - - 25 000
ECR006 Ibika Water Supply C DC12 Amathole District Municipality Mnquma Local Municipality - - - - - -
Ngqamakhwe Bulk Water Supply C DC12 Amathole District Municipality Mnquma Local Municipality - - - 2 660 20 000 30 000
Total: Amatole Municipalities - - - 72 660 23 193 56 000

ECR033 Cluster 4 CHDM Bulk Water Supply C DC13 Chris Hani District Municipality Engcobo Local Municipality 40 000 8 000 8 440 - - -
ECR028 Cluster 6 CHDM Bulk Water Supply C DC13 Chris Hani District Municipality Engcobo Local Municipality 20 000 5 000 5 275 - - -
ECR029 Cluster 9 CHDM Bulk Water Supply C DC13 Chris Hani District Municipality Intsika Yethu Local Municipality 75 000 7 000 7 385 - - -
294

ECR002 Xonxa Bulk Water Supply C DC13 Chris Hani District Municipality Engcobo Local Municipality 17 000 5 000 5 275 - - -
Middleburg Ground Water Supply C DC13 Chris Hani District Municipality Enoch Mgijima Local Municipality 3 000 - - - - -
Butterworth Water Transfer Scheme C DC14 Chris Hani District Municipality - - - 10 000 - -
ECR005 Hofmeyer Ground Water Supply C DC13 Chris Hani District Municipality Enoch Mgijima Local Municipality 7 000 - - - - -
Total: Chris Hani Municipalities 162 000 25 000 26 375 10 000 - -

Lady Grey Bulk Water Supply C DC14 Joe Gqabi District Municipality Senqu Local Municipality - 20 000 21 100 - - -
ECR046 Sterkspruit Waste Water Treatment Works C DC14 Joe Gqabi District Municipality Senqu Local Municipality - 20 000 21 100 - - -
Total: Joe Gqabi Municipalities - 40 000 42 200 - - -

Coffee Bay Water Treatment Works C DC15 O.R. Tambo District Municipality - 13 000 13 715 - - -
ECR019 O.R. Tambo, Mthatha, King Sabato Dalinyebo Water Supply C DC15 O.R. Tambo District Municipality King Sabata Dalindyebo Local Municipality 300 706 273 727 294 722 - - -
ECR045 O.R. Tambo, Mthatha, King Sabato Dalinyebo Sanitation C DC15 O.R. Tambo District Municipality King Sabata Dalindyebo Local Municipality 9 001 - - - - -
Total: O.R. Tambo Municipalities 309 707 286 727 308 437 - - -

ECR001 Matatiele Bulk Water Supply Scheme C DC44 Alfred Nzo District Municipality Matatiele Local Municipality - - - 2 000 - -
EC NEW Kinira Regional BWSS C DC44 Alfred Nzo District Municipality Matatiele Local Municipality - - - - - 20 000
ECR 044 Ntabankulu Bulk Water Supply C DC44 Alfred Nzo District Municipality Ntabankulu Local Municipality - - - - - 30 000
EC NEW Mount Ayliff Bulk Peri Urban Water Supply C DC44 Alfred Nzo District Municipality Umzimvubu Local Municipality - - - 65 000 35 000 25 000
EC NEW Mkemane Regional Bulk WSS C DC44 Alfred Nzo District Municipality Umzimvubu Local Municipality - - - - - 23 000
Total: Alfred Nzo Municipalities - - - 67 000 35 000 98 000

Total: Eastern Cape Municipalities 471 707 351 727 377 012 333 560 332 693 377 366
 APPENDIX W5
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: REGIONAL BULK INFRASTRUCTURE GRANT

BREAKDOWN OF REGIONAL BULK INFRASTRUCTURE GRANT ALLOCATIONS PER LOCAL MUNICIPALITY PER PROJECT

Schedule 5, Part B Schedule 6, Part B

Breakdown of regional bulk infrastructure grant allocations per local municipality per project
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Project Code Project Name Category Water Services Authority Benefitting Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

FREE STATE

Welbedacht Pipeline A MAN Mangaung Metropolitan Municipality Mangaung Metropolitan Municipality - - - 114 638 154 832 90 578
Dewetsdorp Outfall Sewer Line A MAN Mangaung Metropolitan Municipality Mangaung Metropolitan Municipality
Total: Mangaung Metro - - - 114 638 154 832 90 578

FSR002 Jagersfontein/Fauresmith Bulk Water Supply B FS162 Kopanong Local Municipality Kopanong Local Municipality - - - 2 000 - -
FSR005 Rouxville / Smithfield /Zastron Bulk Water Supply B FS163 Mohokare Local Municipality Mohokare Local Municipality 38 000 20 000 10 000 - - -
Rouxville Outfall Sewer B FS163 Mohokare Local Municipality Mohokare Local Municipality - - - - - -
Total: Xhariep Municipalities 38 000 20 000 10 000 2 000 - -

FSR011 Masilonyana Bulk Water Supply B FS181 Masilonyana Local Municipality Masilonyana Local Municipality
FS040 Masilonyana Bulk Sewer (Brandfort and Winburg) B FS181 Masilonyana Local Municipality Masilonyana Local Municipality - - - 15 000 70 000 100 000
FSR008 Tokologo Regional Water Supply 2 B FS182 Tokologo Local Municipality Tokologo Local Municipality - - - 50 000 71 000 80 000
BEP Dealesville Construction of a sewer Mains- 200mm B FS182 Tokologo Local Municipality Tokologo Local Municipality - - - 43 500 - -
BEP Hertzogville Outfall Sewer + Pumpstation B FS182 Tokologo Local Municipality Tokologo Local Municipality - - - 3 000 - -
Tswelopele Bulk Water Supply B FS183 Tswelopele Local Municipality Tswelopele Local Municipality - - - 20 000 20 000 -
FS038 Mathjabeng Bulk Sewer (Welkom) B FS184 Matjhabeng Local Municipality Matjhabeng Local Municipality - - - 10 000 40 000 100 000
Total: Lejweleputswa Municipalities - - - 141 500 201 000 280 000

FSR013 Setsoto Bulk Water Supply B FS191 Setsoto Local Municipality Setsoto Local Municipality 30 000 53 121 92 108 - - -
BEP Clocolaan Construction of a Sewer Main (200mm-400mm) B FS191 Setsoto Local Municipality Setsoto Local Municipality - - - 70 000 - -
BEP Senekal Construction of a Sewer Mains (200mm-400mm) B FS191 Setsoto Local Municipality Setsoto Local Municipality - - - 89 486 - -
BEP Fiscksburg Outfall Sewer and Pumpstation B FS191 Setsoto Local Municipality Setsoto Local Municipality - - - 48 000 - -
FSR003 Dihlabeng Bulk Water Supply B FS192 Dihlabeng Local Municipality Dihlabeng Local Municipality - - - 5 000 20 000 23 000
FSR012 Nketoana Regional Water Supply B FS193 Nketoana Local Municipality Nketoana Local Municipality - - - 20 000 10 000 45 000
FSR031 Mantsopa Bulk Sewer (Ladybrand) B FS196 Mantsopa Local Municipality Mantsopa Local Municipality - - - - - -
295

BEP RS128-Reitz and Lindley Cons Grey PL B FS193 Nketoana Local Municipality Nketoana Local Municipality - - - 13 700 - -
BEP Petrus Steyn Refurbishment of a Package Plant B FS193 Nketoana Local Municipality Nketoana Local Municipality - - - 28 000 - -
BEP Petrus Steyn Outfall Sewer B FS193 Nketoana Local Municipality Nketoana Local Municipality - - - - - -
BEP Arlington Grey Water Package Plant B FS193 Nketoana Local Municipality Nketoana Local Municipality - - - 65 000 - -
FSR007 Maluti-a-Phofung BWS Phase 2 B FS194 Maluti-a-Phofung Local Municipality Maluti-a-Phofung Local Municipality - - - 30 000 40 000 30 000
FSR006 Phumelela Bulk Water Supply B FS195 Phumelela Local Municipality Phumelela Local Municipality - - - 33 000 20 000 10 000
BEP Memel Refurbishment WWTW and Sewer B FS195 Phumelela Local Municipality Phumelela Local Municipality - - - - - -
FSR015 Mantsopa-Tweespruit, Excelsior, Hobhouse Bulk Water Supply B FS196 Mantsopa Local Municipality Mantsopa Local Municipality 17 500 30 000 - - - -
Total: Thabo Mofutsanyana Municipalities 47 500 83 121 92 108 402 186 90 000 108 000

FSR010 Moqhaka Bulk Water Supply B FS201 Moqhaka Local municipality Moqhaka Local municipality - - - 2 000 10 000 -
BEP Heilbron Sewer and Pumpstation B FS203 Ngwathe Local Municipality Ngwathe Local Municipality - - - - - -
FSR009 Ngwathe Bulk Water Supply Phase 1 (Parys) B FS203 Ngwathe Local Municipality Ngwathe Local Municipality - - - 10 000 25 000 20 000
Ngwathe Bulk Water Supply Phase 2 B FS203 Ngwathe Local Municipality Ngwathe Local Municipality 38 000 40 000 47 500 - - -
FSR039 Upgrading of Deneysville WWTW B FS204 Metsimaholo Local Municipality Metsimaholo Local Municipality - - - 40 000 50 000 42 000
FSR021 Frankfort Bulk Sewer (Mafube) B FS205 Mafube Local Municipality Mafube Local Municipality - - - 10 000 20 000 30 000
Total: Fezile Dabi Municipalities 38 000 40 000 47 500 62 000 105 000 92 000

Total: Free State Municipalities 123 500 143 121 149 608 722 324 550 832 570 578

GAUTENG

GPR001 Sedibeng Regional Waste Water Treatment Works B GT421 Emfuleni Local Municipality Emfuleni, Midvaal and City of Johannesberg - - - 67 646 197 800 152 000
GPR005 Sebokeng Waste Water Treatment Works B GT421 Emfuleni Local Municipality Emfuleni Local Municipality - - - 165 444 100 851 250 000
GPR008 Rothdene pump station and rising main B GT422 Midvaal Local Municipality Midvaal Local Municipality - - - 17 940 - -
GPR006 Meyerton Waste Water Treatment Works B GT422 Midvaal Local Municipality Midvaal Local Municipality - - - 41 860 7 000 105 000
Total: Sedibeng Municipalities - - - 292 890 305 651 507 000

GPR002 Westonaria Regional Bulk Sanitation (Zuurbekom) B GT485 Rand West City Local Municipality Rand West City Local Municipality - - - - 190 900 160 000
GPR009 Mohlakeng pump station and sewer outfall B GT485 Rand West City Local Municipality Rand West City Local Municipality - - - 35 409 147 500 1 924
Total: West Rand Municipalities - - - 35 409 338 400 161 924

Total: Gauteng Municipalities - - - 328 299 644 051 668 924

 APPENDIX W5
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: REGIONAL BULK INFRASTRUCTURE GRANT

BREAKDOWN OF REGIONAL BULK INFRASTRUCTURE GRANT ALLOCATIONS PER LOCAL MUNICIPALITY PER PROJECT

Schedule 5, Part B Schedule 6, Part B

Breakdown of regional bulk infrastructure grant allocations per local municipality per project
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Project Code Project Name Category Water Services Authority Benefitting Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

KWAZULU-NATAL

Spioenkop to Ladysmith BWS C DC23 uThukela District Municipality Alfred Duma Local Municipality 97 283 85 462 100 000 - - -
KNR010 Driefontein Indaka Bulk Water Supply C DC23 uThukela District Municipality Alfred Duma Local Municipality 45 000 40 000 27 399 - - -
Total:uThukela Municipalities 142 283 125 462 127 399 - - -

KNR008 Greytown Regional Bulk Scheme C DC24 uMzinyathi District Municipality uMvoti Local Municipality 40 000 25 200 - - - -
Total: uMzinyathi Municipalities 40 000 25 200 - - - -

KNR001 Nongoma Bulk Water Scheme C DC26 Zululand District Municipality Nongoma Local Municipality 41 498 - - - - -
KNR002 Mandlakazi Bulk Water Supply C DC26 Zululand District Municipality uPhongolo and Nongoma Local Municipalities 90 000 90 000 100 000 - - -
Total: Zululand Municipalities 131 498 90 000 100 000 - - -

KNR015 Pongolapoort Bulk Water Scheme (Jozini) C DC27 Umkhanyakude District Municipality Jozini Local Municipality - - - 30 000 - -
Total: uMkhanyakude Municipalities - - - 30 000 - -

KNR005 Greater Mthonjaneni Bulk Water Supply C DC28 King Cetshwayo District Municipality Mthonjaneni/ Nkandla Local Municipalities 70 000 40 000 57 317 - - -
KNR016 Middledrift (Nkandla) Regional Bulk Water Supply C DC28 King Cetshwayo District Municipality Nkandla Local Municipality 50 000 30 000 70 000 - - -
Total: King Cetshwayo Municipalities 120 000 70 000 127 317 - - -

KNR011 Ngcebo Regional Water Bulk (Lower Tugela) C DC29 iLembe District Municipality Maphumulo Local Municipality 75 446 - - - - -
Total: iLembe Municipalities 75 446 - - - - -

KNR007 Dr Nkosazana Dlamini Zuma and uBuhlebezwe Local

Greater Bulwer Donnybrook Water Scheme C DC43 Harry Gwala District Municipality 70 000 50 000 67 460 - -
Municipalities -
Total: Sisonke Municipalities 70 000 50 000 67 460 - - -
296

Total: KwaZulu-Natal Municipalities 579 227 360 662 422 176 30 000 - -

LIMPOPO

LPR018 Giyani Bulk Water Supply Drought Relief C DC33 Mopani District Municipality Greater Giyani Local Municipality - - - 130 000 - -
LPR027 Giyani Water Services C DC33 Mopani District Municipality Greater Giyani Local Municipality - - - 104 060 - -
Mametja Sekororo Bulk Water Supply C DC33 Mopani District Municipality Maruleng Local Municipality - - - 50 000 70 000 80 000
Bambanana Pipeline C DC33 Mopani District Municipality Maruleng Local Municipality - - - 48 867 139 028 249 612
Total: Mopani Municipalities - - - 332 927 209 028 329 612

LPR002 Nzhelele Valley Bulk Water Supply C DC34 Vhembe District Municipality Makhado Local Municipality - - - - - -
LPR016 Sinthumule Kutama Bulk Water Supply C DC34 Vhembe District Municipality Makhado Local Municipality - - - 120 000 60 000 80 000
Total: Vhembe Municipalities - - - 120 000 60 000 80 000

Polokwane Waste Water Treatment Works B LIM354 Polokwane Local Municipality Polokwane Local Municipality 191 423 430 998 440 291 - - -
Polokwane Bulk Water Supply B LIM354 Polokwane Local Municipality Polokwane Local Municipality 81 155 200 000 204 200 - - -
LPR022 Aganang Bulk Water Supply B DC35 Capricorn District Municipality Polokwane Local Municipality - - - - 70 000 85 000
Total: Capricon Municipalities 272 578 630 998 644 491 - 70 000 85 000

LPR015 Mogalakwena Bulk Water Supply B LIM367 Mogalakwena Local Municipality Mogalakwena Local Municipality - - - 70 000 183 558 195 000
Total: Waterberg Municipalities - - - 70 000 183 558 195 000

LPR019 Moutse Bulk Water Supply C DC47 Sekhukhune District Municipality Ephraim Mogale/ Elias Motsoaledi local municipalities - - - 60 000 50 000 65 000
LPR011 Nebo Bulk Water Supply C DC47 Sekhukhune District Municipality Tubatse Local Municipality/ Makhudutmahaga LMs - - - 100 000 90 000 95 000
LPR012 Mooihoek/Tubatse Bulk Water Supply C DC47 Sekhukhune District Municipality Tubatse Local Municipality - - - 70 000 120 000 -
Sekhukhune Bulk Water Supply (Moutse) C DC47 Sekhukhune District Municipality Tubatse Local Municipality - - - 15 000 - -
Total: Sekhukhune Municipalities - - - 245 000 260 000 160 000

Total: Limpopo Municipalities 272 578 630 998 644 491 767 927 782 586 849 612
 APPENDIX W5
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: REGIONAL BULK INFRASTRUCTURE GRANT

BREAKDOWN OF REGIONAL BULK INFRASTRUCTURE GRANT ALLOCATIONS PER LOCAL MUNICIPALITY PER PROJECT

Schedule 5, Part B Schedule 6, Part B

Breakdown of regional bulk infrastructure grant allocations per local municipality per project
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Project Code Project Name Category Water Services Authority Benefitting Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

MPUMALANGA

Empul/Methu/Amster Bulk Water Supply C DC30 Gert Sibande District Municipality Chief Albert Luthuli Local Municipality 20 000 52 284 100 000 - - -
Lushushwane Bulk Water Scheme C DC30 Gert Sibande District Municipality Chief Albert Luthuli Local Municipality 41 622 57 000 - - - -
Eerstehoek/Ekulindeni Bulk Water Supply C DC30 Gert Sibande District Municipality Chief Albert Luthuli Local Municipality - 20 347 30 000 - - -
Amsterdam and Sheepmore Bulk Water Scheme C DC30 Gert Sibande District Municipality Chief Albert Luthuli Local Municipality 25 000 40 000 40 000 - - -
Msukalingwa regional water supply scheme (Phase1) C DC30 Gert Sibande District Municipality Msukaligwa Local Municipality 10 000 30 000 68 407 - - -
Balfour Waste Water Treatment Works C DC30 Gert Sibande District Municipality Dipaleseng Local Municipality 42 000 10 000 - - - -
Balf/Siyat/Greyl/Willem/Nthor Bulk Water Supply C DC30 Gert Sibande District Municipality Dipaleseng Local Municipality 20 818 100 000 100 000 - - -
Total: Gert Sibande Municipalities 159 440 309 631 338 407 - - -

Upgrade of Delmas Waste Water B MP311 Victor Khanye Local Municipality Victor Khanye Local Municipality - - - 15 000 30 000 15 000
Thembisile Water Scheme (Loskop) B MP315 Thembisile Hani Local Municipality Thembisile Local Municipality - - - 75 000 100 000 105 000
MPR005 Western Highveld (Rust de Winter) Bulk Water Scheme B MP316 Thembisile Hani Local Municipality Thembisile Hani and Dr JS Moroka Local Municipality - - - - 10 000 33 366
Total: Nkangala Municipalities - - - 90 000 140 000 153 366

MPR NEWBushbuckridge Water Services (Canningmore) B MP325 Bushbuckridge Local Municipality Bushbuckridge Local Municipality 15 000 40 000 20 000 - - -
MPR NEWHoxane Bulk Water Supply (Phase 3 Extension) B MP325 Bushbuckridge Local Municipality Bushbuckridge Local Municipality - - - 7 000 - -
MPR004 MP Lowveld feasibility Study B MP326 City of Mbombela City of Mbombela - - - - - -
MPR019 Northern Nzikazi Bulk Water Supply B MP326 City of Mbombela City of Mbombela - - - 14 000 30 000 70 000
MPR018 Driekoppies Upgrading C MP324 Nkomazi Local Municipality Nkomazi Local Municipality - - - 50 295 71 863 70 000
MPR020 Sibange Bulk Water Supply C MP324 Nkomazi Local Municipality Nkomazi Local Municipality - - - 50 000 50 000 4 000
Total: Ehlanzeni Municpalities 15 000 40 000 20 000 121 295 151 863 144 000

Total: Mpumalanga Municipalities 174 440 349 631 358 407 211 295 291 863 297 366

NORTHERN CAPE
297

BEP Namakhoi B NC062 Namakhoi Local Municipality Namakhoi Local Municipality - - - 171 - -
NCR017 Bulk Water Supply to Porth Nolloth B NC061 Richtersveld Local Municipality Richtersveld Local Municipality - - - 10 000 21 782 25 000
NCR012 Loeriesfontein Bulk Water Supply B NC065 Hantam Local Municipality Hantam Local Municipality 17 247 - - - - -
Williston Bulk Water Supply B NC066 Karoo Hoogland Local Municipality Karoo Hoogland Local Municipality 27 000 20 000 - - - -
NCR016 Bulk Water Supply to Brandvlei (Hantam) B NC065 Hantam Local Municipality Hantam Local Municipality 27 000 21 503 7 256 - - -
Total: Namakwa Municipalities 71 247 41 503 7 256 10 171 21 782 25 000

Britstown Oxidation Ponds B NC073 Emthanjeni Local Municipality Emthanjeni Local Municipality 26 689 3 910 - - - -
BEP Britstown B NC073 Emthanjeni Local Municipality Emthanjeni Local Municipality - - - 195 - -
BEP Kalksloot B NC073 Emthanjeni Local Municipality Emthanjeni Local Municipality - - - 1 644 - -
BEP Pabalello B NC073 Emthanjeni Local Municipality Emthanjeni Local Municipality - - - 1 553 - -
BEP Rosedale B NC073 Emthanjeni Local Municipality Emthanjeni Local Municipality - - - 9 013 - -
NCR015 De Aar Borehole Development B NC073 Emthanjeni Local Municipality Emthanjeni Local Municipality - - - 15 000 6 796 5 000
NCR024 Van Wyksvlei Bulk Water Supply B NC074 Kareeberg Local Municipality Kareeberg Local Municipality 46 824 - - - - -
BEP Marydale B NC078 Siyathemba Local Municipality Siyathemba Local Municipality - - - 5 948 - -
NCR038 Douglas WTW Upgrading B NC078 Siyancuma Local Municipality Siyancuma Local Municipality - - - 12 000 15 000 12 000
BEP Breipaal Pumpsation B NC078 Siyancuma Local Municipality Siyancuma Local Municipality - - - 311 - -
BEP Campbell B NC078 Siyancuma Local Municipality Siyancuma Local Municipality - - - 29 487 - -
BEP Griekwastad B NC078 Siyancuma Local Municipality Siyancuma Local Municipality - - - 9 100 - -
BEP Petrusville B NC075 Renosterberg Local Municipality Renosterberg Local Municipality - - - 592 - -
BEP Victoria West B NC071 Ubuthu Local Municipality Ubuthu Local Municipality - - - 13 970 - -
Total: Pixley ka Seme Municipalities 73 513 3 910 - 98 813 21 796 17 000

NCR029 Kakamas Waste water works B NC082 !Kai !Garib Local Municipality !Kai !Garib Local Municipality - - - - 10 000 12 125
Upington Wasterwater treatment works B NC087 Dawid Kruiper Local Municipallity Dawid Kruiper Local Municipallity - - - 20 000 31 422 25 000
BEP Postdene B NC085 Tsantsabane Local Municipallity Tsantsabane Local Municipallity - - - 3 087 - -
BEP Maranteng B NC085 Tsantsabane Local Municipallity Tsantsabane Local Municipallity - - - 4 242 - -
Danielskuil Wastewater Treatment works B NC086 Kgatelopele Local Municipality Kgatelopele Local Municipality - 12 644 40 000 - - -
Total: Z.F. Mgcawu Municipalities - 12 644 40 000 27 329 41 422 37 125

Ritchie Bulk Water Scheme B NC091 Sol Plaatjie Local Municipality Sol Plaatjie Local Municipality 10 551 - - - - -
NCR020 Windsorton to Holpan Bulk Water Supply B NC092 Dikgatlong Local Municipality Dikgatlong Local Municipality - - - 5 000 - -
NCR030 Warrenton Water Treatment Works B NC093 Magareng Local Municipality Magareng Local Municipality - - - 10 137 - -
Total: Frances Baard Municipalities 10 551 - - 15 137 - -

Kathu Bulk Water Supply B NC453 Gamagara Local Municipality Gamagara Local Municipality 21 587 31 000 51 395 - - -
Total: John Taolo Gaetsewe Municipalities 21 587 31 000 51 395 - - -

Total: Northern Cape Municipalities 176 898 89 057 98 651 151 450 85 000 79 125
 APPENDIX W5
APPENDIX TO SCHEDULE 5, PART B AND SCHEDULE 6, PART B: REGIONAL BULK INFRASTRUCTURE GRANT

BREAKDOWN OF REGIONAL BULK INFRASTRUCTURE GRANT ALLOCATIONS PER LOCAL MUNICIPALITY PER PROJECT

Schedule 5, Part B Schedule 6, Part B

Breakdown of regional bulk infrastructure grant allocations per local municipality per project
National and Municipal Financial Year National and Municipal Financial Year

2018/19 2019/20 2020/21 2018/19 2019/20 2020/21

Project Code Project Name Category Water Services Authority Benefitting Municipality
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)

NORTH WEST

NWR013 Madibeng Bulk Water Supply B NW372 Madibeng Local Municipality Madibeng Local Municipality - - - 80 000 70 000 135 000
NWR NEWMoretele North Bulk Water Supply (Klipdrift) B NW371 Moretele Local Municipality Moretele Local Municipality - - - 18 000 - -
Moretele South Bulk Water Supply B NW371 Moretele Local Municipality Moretele Local Municipality - - - - 30 000 36 375
NWR NEWKoster Waste Water Treatment Works upgrade B NW374 Kgetlengrivier Local Municipality Kgetlengrivier Local Municipality - - - 50 000 - -
Total: Bojanala Platinum Municipalities - - - 148 000 100 000 171 375

NWR002 Ratlou Bulk Water Supply C DC38 Ngaka Modiri Molema Local Municipality Ratlou Local Municipality - - - 50 000 40 000 40 000
NWR014 Mafikeng South Bulk Water Supply C DC38 Ngaka Modiri Molema Local Municipality Mafikeng Local Municipality - - - 53 000 58 270 40 000
Total: Ngaka Modiri Molema Municipalities - - - 103 000 98 270 80 000

Kagisano-Molopo Bulk Water Supply C DC39 Dr Ruth Segomotsi Mompati District Municipality Kagisano-Molopo Local Municipality 34 150 21 693 29 660 - - -
NWR009 Taung/ Naledi Bulk Water Supply C DC39 Dr Ruth Segomotsi Mompati District Municipality Greater Taung/ Naledi Local Municipalities 70 000 60 000 50 000 - - -
MWR008 Greater Mamusa Bulk Water Supply C DC39 Dr Ruth Segomotsi Mompati District Municipality Mamusa Local Municipality 45 000 40 000 50 000 - - -
Total: Dr Ruth Segomotsi Mompati Municipalities 149 150 121 693 129 660 - - -

NWR016 Potchefstroom Waste Water Treatment Works upgrade B NW405 JB Marks Local Municipality JB Marks Local Municipality - - - 12 386 50 000 -
Total: Dr Kenneth Kaunda Municipalities - - - 12 386 50 000 -

Total: North West Municipalities 149 150 121 693 129 660 263 386 248 270 251 375

WESTERN CAPE

WCR018 Vanrhynsdorp Raw Water B WC011 Matzikama Local Municipality Matzikama Local Municipality - - - 5 000 5 000 14 000
WCR019 Klawer Bulk Water B WC011 Matzikama Local Municipality Matzikama Local Municipality - - - 4 949 10 000 15 000
Clanwilliam/ Lambertsbaai Regional Water Supply and Desalination B WC012 Cederberg Local Municipality Cederberg Local Municipality - - - 22 732 - -
298

West Coast Desalination B WC014 Saldanha Bay Local Municipality Saldanha Bay Local Municipality - - - - 5 000 1 000
Total: West Coast Municipalities - - - 32 681 20 000 30 000

Tulbagh Bulk Water Supply B WC022 Witzenberg Local Municipality Witzenberg Local Municipality 9 500 19 471 - - - -
Total: Cape Winelands Municipalities 9 500 19 471 - - - -

WCR009 Grabouw Waste Water Treatment Plant B WC031 Theewaterskloof Local Municipality Theewaterskloof Local Municipality
Total: Overberg Municipalities - - - - - -

WCR015 Kannaland Dam Relocation B WC041 Kannaland Local Municipality Kannaland Local Municipality - - - 15 000 20 000 15 000
WCR014 Calitzdorp and Ladismith Waste Water Treatment Works B WC041 Kannaland Local Municipality Kannaland Local Municipality - - - 10 000 27 000 30 000
WCR017 Outdtshoorn Groundwater B WC045 Outdtshoorn Local Municipality Outdtshoorn Local Municipality - - - 15 000 30 000 20 000
Total: Eden Municipalities - - - 40 000 77 000 65 000

WCR024 Beaufort West Bulk Water B WC053 Beaufort West Local Municipality Beaufort West Local Municipality - - - - 5 000 15 000
Total: Central Karoo Municipalities - - - - 5 000 15 000

Total: Western Cape Municipalities 9 500 19 471 - 72 681 102 000 110 000

National Total 1 957 000 2 066 360 2 180 005 2 880 922 3 037 295 3 204 346
 APPENDIX W6

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF EPWP INTEGRATED GRANT FOR PROVINCES:TARGETS AND
299

ALLOCATIONS PER PROVINCIAL DEPARTMENTS

(National and Municipal Financial Years)

 300

APPENDIX W6

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF EPWP INTEGRATED GRANT FOR

PROVINCES:TARGETS AND ALLOCATIONS PER PROVINCIAL DEPARTMENTS

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Province / Provincial Department
(R'000) (R'000) (R'000)

EASTERN CAPE
Cooperative Governance And Traditional Affairs 28 2 144 - -
Economic Development, Environmental Affairs And Tourism 29 2 204 - -
Education 35 2 673 - -
Health 2 245 2 225 - -
Human Settlements 33 2 500 - -
Roads And Public Works 65 5 008 - -
Rural Development And Agrarian Reform 80 2 502 - -
Social Development And Special Programmes 26 2 000 - -
Sport, Recreation, Arts And Culture 26 2 000 - -
Transport 6 685 66 821
Total: Eastern Cape 9 252 90 077 - -
FREE STATE
Agriculture And Rural Development 59 2 335 - -
Education 26 2 000 - -
Health 1 941 2 000 - -
Human Settlements 26 2 036 - -
Police, Roads And Transport 5 500 8 011 - -
Police, Roads And Transport 88 6 783 - -
Economic Development & Small Business Development, Tourism &
29 2 213 - -
Environmental Affairs
Sport, Arts, Culture And Recreation 26 2 000 - -
Total: Free State 7 695 27 378 - -
GAUTENG
Agriculture And Rural Development 55 2 621 - -
Cooperative Governance And Traditional Affairs 26 2 000 - -
Infrastructure Development 231 17 780 - -
Education 32 2 480 - -
Health 3 329 2 324 - -
Human Settlements 118 9 063 - -
Roads And Transport 2 452 6 490 - -
Social Development 26 2 000 - -
Sport, Arts, Culture And Recreation 26 2 000
Total: Gauteng 6 295 46 758 - -
KWAZULU-NATAL
Agriculture And Rural Development 142 7 308 - -
Arts And Culture 26 2 000 - -
Co-Operative Governance And Traditional Affairs 59 4 552 - -
Economic Development, Tourism And Environmental Affairs 49 3 740 - -
Education 26 2 000 - -
Health 4 515 8 896 - -
Human Settlements 149 11 484 - -
Public Works 78 6 023 - -
Sport And Recreation 26 2 000 - -
Transport 8 534 76 562 - -
Total: KwaZulu-Natal 13 604 124 565 - -
LIMPOPO
Agriculture 115 5 000 - -
Co-Operative Governance Human Settlements And Traditional Affairs 26 2 000 - -
Economic Development, Environment And Tourism 44 3 376 - -
Education 28 2 134 - -
Health 1 785 2 000 - -
Public Works, Roads And Infrastructure 4 928 7 354 - -
Sport, Arts And Culture 26 2 000
Transport 26 2 000
Total: Limpopo 6 978 25 864 - -
 301

APPENDIX W6

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF EPWP INTEGRATED GRANT FOR

PROVINCES:TARGETS AND ALLOCATIONS PER PROVINCIAL DEPARTMENTS

Expanded Public Works Programme Integrated Grant for

Municipalities
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Province / Provincial Department
(R'000) (R'000) (R'000)
MPUMALANGA
Agriculture, Rural Development, Land And Environmental Affairs 81 4 141 - -
Culture, Sport And Recreation 27 2 054 - -
Co-Operative Governance And Traditional Affairs 30 2 306 - -
Human Settlements 34 2 610 - -
Public Works, Roads And Transport 3 626 11 030 - -
Economic Development And Tourism 42 3 259 - -
Education 40 3 094 - -
Health 1 789 2 322 - -
Social Development 26 2 000 - -
Total: Mpumalanga 5 695 32 816 - -
NORTHERN CAPE
Agriculture, Land Reform And Rural Development 59 2 266 - -
Cooperative Governance, Human Settlements And Traditional Affairs 26 2 002 - -
Economic Development And Tourism 26 2 012 - -
Education 29 2 222 - -
Environment And Nature Conservation 26 2 035 - -
Health 1 523 2 907 - -
Roads And Public Works 4 422 4 154 - -
Sport, Arts And Culture 28 2 171 - -
Transport, Safety And Liaison 26 2 000
Total: Northern Cape 6 165 21 769 - -
NORTH WEST
Education And Sports Development 26 2 008 - -
Health 1 979 2 000 - -
Local Government And Human Settlements 29 2 231 - -
Public Works And Roads 3 716 5 789 - -
Rural, Environment And Agricultural Development 80 3 645 - -
Social Development 26 2 000
Total: North West 5 856 17 673 - -
WESTERN CAPE
Agriculture 47 2 154 - -
Cultural Affairs and Sport 40 3 054 - -
Environmental Affairs and Development Planning 52 3 991 - -
Transport and Public Works 3 806 12 586 - -
Western Cape Education Department 29 2 221 - -
Human Settlement 39 3 014 - -
Health 2 350 2 116 - -
Total: Western Cape 6 363 29 136 - -

Unallocated - - 451 505 476 338

Grand Total 67 903 416 036 451 505 476 338

 APPENDIX W7

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF SOCIAL SECTOR EPWP INCENTIVE GRANT FOR PROVINCES:
302

ALLOCATIONS PER PROVINCIAL DEPARTMENT

(National and Municipal Financial Years)

 303

APPENDIX W7

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF SOCIAL SECTOR EPWP INCENTIVE GRANT FOR
PROVINCES: ALLOCATIONS PER PROVINCIAL DEPARTMENT

Social Sector Expanded Public Works Programme Incentive Grant

for Provinces
National and Municipal Financial Year
FTE Target for
2018/19 2018/19 2019/20 2020/21
Province / Provincial Department
(R'000) (R'000) (R'000)

EASTERN CAPE
Education 964 23 175 - -
Health 61 1 455 - -
Safety And Liaison 137 3 298 - -
Social Development And Special Programmes 61 1 455 - -
Sport, Recreation, Arts And Culture 60 1 448 - -
Total: Eastern Cape 1 283 30 831 - -
FREE STATE
Education 370 8 893 - -
Health 521 12 529 - -
Social Development 1 233 29 626 - -
Sport, Arts, Culture And Recreation 61 1 470 - -
Total: Free State 2 185 52 518 - -
GAUTENG
Community Safety 60 1 448 - -
Education 348 8 375 - -
Health 61 1 470 - -
Social Development 62 1 485 - -
Sport, Arts, Culture And Recreation 61 1 463 - -
Total: Gauteng 593 14 241 - -
KWAZULU-NATAL
Community Safety And Liaison 429 10 321 - -
Education 1 124 27 004 - -
Health 1 006 24 182 - -
Social Development 561 13 490 - -
Sport And Recreation 59 1 412 - -
Total: KwaZulu-Natal 3 179 76 409 - -
LIMPOPO
Education 597 14 355 - -
Health 1 125 27 029 - -
Social Development 333 8 008 - -
Total: Limpopo 2 055 49 392 - -
MPUMALANGA
Community Safety, Security And Liaison 226 5 438 - -
Culture, Sport And Recreation 182 4 375 - -
Education 265 6 359 - -
Health 625 15 021 - -
Social Development 1 042 25 048 - -
Total: Mpumalanga 2 340 56 241 - -
NORTHERN CAPE
Education 264 6 335 - -
Health 559 13 423 - -
Social Development 467 11 233 - -
Sport, Arts And Culture 61 1 455 - -
Transport, Safety And Liaison 134 3 211 - -
Total: Northern Cape 1 484 35 657 - -
NORTH WEST
Community Safety And Transport Management 102 2 440 - -
Education And Sports Development 346 8 315 - -
Health 950 22 841 - -
Social Development 467 11 216 - -
Total: North West 1 865 44 812 - -
WESTERN CAPE
Community Safety 331 7 957 - -
Cultural Affairs And Sport 231 5 556 - -
Education 1 265 30 402 - -
Health 102 2 447 - -
Social Development 62 1 485 - -
Total: Western Cape 1 991 47 847 - -

Unallocated - - 430 793 454 487

Grand Total 16 975 407 948 430 793 454 487

 APPENDIX W8

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF THE COMPREHENSIVE HIV, AIDS AND TB GRANT:
304

ALLOCATIONS PER GRANT COMPONENT PER PROVINCE

(National Financial Years)

 305

APPENDIX W8

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF THE COMPREHENSIVE HIV, AIDS AND TB

GRANT: ALLOCATIONS PER GRANT COMPONENT PER PROVINCE

Health (Vote 16) Comprehensive HIV, AIDS and TB Grant

National and Municipal Financial Year
2018/19 2019/20 2020/21
Province /Components
(R'000) (R'000) (R'000)
Comprehensive HIV, AIDS and TB Grant
Eastern Cape 2 098 633 2 301 704 2 552 300
Free State 1 199 425 1 326 643 1 471 080
Gauteng 4 239 277 4 909 315 5 522 037
KwaZulu-Natal 5 677 225 6 114 218 6 701 673
Limpopo 1 600 516 1 764 331 1 956 421
Mpumalanga 1 744 627 1 939 243 2 150 377
Northern Cape 515 155 549 437 609 257
North West 1 315 304 1 467 366 1 627 124
Western Cape 1 531 535 1 666 738 1 848 202
Total 19 921 697 22 038 995 24 438 471
of which:
Community Outreach Services Grant Component
Eastern Cape 93 066 99 714 99 714
Free State 46 119 49 413 49 413
Gauteng 216 998 232 498 232 498
KwaZulu-Natal 262 426 281 170 281 170
Limpopo 292 075 312 937 312 937
Mpumalanga 153 858 164 848 164 848
Northern Cape 70 960 76 029 76 029
North West 167 729 179 710 179 710
Western Cape 96 769 103 681 103 681
Total 1 400 000 1 500 000 1 500 000
 APPENDIX W9

APPENDIX TO SCHEDULE 6, PART A: BREAKDOWN OF NATIONAL HEALTH INSURANCE INDIRECT GRANT:

306

ALLOCATIONS PER GRANT COMPONENT PER PROVINCE

(National Financial Years)

 307

APPENDIX W9

APPENDIX TO SCHEDULE 6, PART A: BREAKDOWN OF NATIONAL HEALTH INSURANCE INDIRECT

GRANT: ALLOCATIONS PER GRANT COMPONENT PER PROVINCE

Health (Vote 16) National Health Insurance Indirect Grant

National and Municipal Financial Year
2018/19 2019/20 2020/21
Province /Components
(R'000) (R'000) (R'000)
National Health Insurance Indirect Grant
Eastern Cape 111 148 174 404 244 404
Free State 142 266 188 745 183 626
Gauteng 89 574 95 888 115 888
KwaZulu-Natal 53 099 58 727 58 727
Limpopo 302 627 335 783 285 032
Mpumalanga 81 426 69 485 129 970
Northern Cape 9 713 10 742 10 742
North West 10 361 11 459 11 459
Western Cape 10 400 11 525 11 525
Unallocated 1 493 245 2 081 933 2 723 821
Total 2 303 859 3 038 691 3 775 194
of which:
Health Facility Revitalisation Grant Component
Eastern Cape 71 000 130 000 200 000
Free State 140 323 186 596 181 477
Gauteng 30 000 30 000 50 000
KwaZulu-Natal - - -
Limpopo 285 791 317 162 266 411
Mpumalanga 62 000 48 000 108 485
Northern Cape - - -
North West - - -
Western Cape - - -
Unallocated 302 245 228 949 185 738
Total 891 359 940 707 992 111
Personal Services
Eastern Cape 40 148 44 404 44 404
Free State 1 943 2 149 2 149
Gauteng 59 574 65 888 65 888
KwaZulu-Natal 53 099 58 727 58 727
Limpopo 16 836 18 621 18 621
Mpumalanga 19 426 21 485 21 485
Northern Cape 9 713 10 742 10 742
North West 10 361 11 459 11 459
Western Cape 10 400 11 525 11 525
Unallocated 491 000 1 079 984 1 686 083
Total 712 500 1 324 984 1 931 083
Non-Personal Services
Eastern Cape - - -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
Unallocated 700 000 773 000 852 000
Total 700 000 773 000 852 000
 APPENDIX W10

APPENDIX TO SCHEDULE 6, PART A: BREAKDOWN OF SCHOOL INFRASTRUCTURE BACKLOGS GRANT: ALLOCATIONS

308

PER PROVINCE

(National Financial Years)

 309

APPENDIX W10

APPENDIX TO SCHEDULE 6, PART A: BREAKDOWN OF SCHOOL INFRASTRUCTURE BACKLOGS

GRANT: ALLOCATIONS PER PROVINCE

Basic Education (Vote 14) School Infrastructure Backlogs Grant

National and Municipal Financial Year
2018/19 2019/20 2020/21
Province
(R'000) (R'000) (R'000)
Schools Infrastructure Backlogs Grant
Eastern Cape 1 133 512 1 075 327 828 591
Free State 73 257 49 466 -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo 113 046 44 689 -
Mpumalanga - - -
Northern Cape - - -
North West 976 - -
Western Cape - - -
Unallocated 151 035 157 566 140 445
Total 1 471 826 1 327 048 969 036
 APPENDIX W11

APPENDIX TO SCHEDULE 4, PART A AND SCHEDULE 5, PART A: BREAKDOWN OF RING-FENCED DISASTER:

310

ALLOCATIONS FOR PROVINCES PER GRANT

(National Financial Years)

 311

APPENDIX W11

APPENDIX TO SCHEDULE 4, PART A AND SCHEDULE 5, PART A: BREAKDOWN OF RING-FENCED

DISASTER: ALLOCATIONS FOR PROVINCES PER GRANT

Ring-Fenced Disaster Allocations

National and Municipal Financial Year
2018/19 2019/20 2020/21
Province / Grant Name
(R'000) (R'000) (R'000)
Comprehensive Agricultural Support Programme Grant
Eastern Cape - - -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo 6 581 - -
Mpumalanga 6 925 - -
Northern Cape 124 947 - -
North West - - -
Western Cape 17 483 - -
Total 155 936 - -
Education Infrastructure Grant
Eastern Cape - - -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
Total - - -
Health Facility Revitilisation Grant
Eastern Cape - - -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
Total - - -
Human Settlements Development Grant
Eastern Cape - - -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
Total - - -
Provincial Roads Maintenance Grant
Eastern Cape 80 000 66 188 -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo 130 000 140 000 -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
Total 210 000 206 188 -
 APPENDIX W12

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF THE EARLY CHILDHOOD DEVELOPMENT GRANT:

312

ALLOCATIONS PER GRANT COMPONENT PER PROVINCE

(National Financial Years)

 313

APPENDIX W12

APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF THE EARLY CHILDHOOD DEVELOPMENT

GRANT: ALLOCATIONS PER GRANT COMPONENT PER PROVINCE

Social Development (Vote 17) Early Childhood Development Grant

National and Municipal Financial Year
2018/19 2019/20 2020/21
Province /Components
(R'000) (R'000) (R'000)
Early Childhood Development Grant
Eastern Cape 78 715 83 115 88 685
Free State 21 656 22 865 24 397
Gauteng 62 777 66 287 70 728
KwaZulu-Natal 107 543 113 556 121 163
Limpopo 68 561 72 389 77 240
Mpumalanga 41 998 44 344 47 315
Northern Cape 18 472 19 503 20 809
North West 52 185 55 102 58 794
Western Cape 38 893 41 067 43 818
Total 490 800 518 228 552 949
of which:
Maintenance Component
Eastern Cape 5 988 6 321 6 745
Free State 6 028 6 363 6 789
Gauteng 5 015 5 294 5 649
KwaZulu-Natal 10 120 10 683 11 398
Limpopo 18 745 19 787 21 113
Mpumalanga 8 143 8 596 9 172
Northern Cape 10 800 11 402 12 166
North West 5 939 6 269 6 689
Western Cape 7 968 8 412 8 975
Total: Maintenance Component 78 746 83 127 88 696
Subsidy Component
Eastern Cape 72 727 76 794 81 940
Free State 15 628 16 502 17 608
Gauteng 57 762 60 993 65 079
KwaZulu-Natal 97 423 102 873 109 765
Limpopo 49 816 52 602 56 127
Mpumalanga 33 855 35 748 38 143
Northern Cape 7 672 8 101 8 643
North West 46 246 48 833 52 105
Western Cape 30 925 32 655 34 843
Total: Subsidy Component 412 054 435 101 464 253
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