The Municipal Infrastructure Grant Programme - MIG MIS

1 The Municipal Infrastructure Grant Programme An Introductory Guide Prepared by Department of provincial and Local Government March 2004. Municipal Infrastructure TASK TEAM. 1. Introduction The South African Cabinet approved the establishment of the Municipal Infrastructure Grant (MIG) on 5 March 2003. MIG is a new Municipal Infrastructure funding arrange- ment. It replaces all existing capital grants for Municipal Infrastructure and incorporates seven Infrastructure programmes, namely: TABLE OF CONTENTS Consolidated Municipal Infrastructure Programme ;. Water Services Projects;. 1. Introduction .. 1 Community Based Public Works Programme .

2 About this document .. 1 Local Economic Development Fund;. Building for Sports and Recreation Programme ;. 2. The vision of the MIG 2. Integrated National Electrification Programme to local government and the Integrated 3. 2 National Electrification Programme implemented by Eskom; and 4. Why have a MIG Programme ?.. 2 Urban Transport Fund. 5. Role players and stakeholders .. 2. Functions of municipalities .. 2 About this document The role of the national MIG management unit .. 3 DPLG is assigned the responsibility for managing MIG. It co-operates with other depart- ments associated with Municipal Infrastructure through the Municipal Infrastructure Task The role of the provincial administration.

3 4. Team (MITT). MITT is appointed by cabinet to co-ordinate Infrastructure delivery. The The role of national departments .. 5 participating organisations are: 6. Monitoring and control .. 6 Department of provincial and Local Government The monitoring and control framework .. 6 National Treasury How monitoring takes place .. 6 Department of Water Affairs and Forestry Department of Minerals and Energy Reports from the MIG system .. 6. Department of Transport 6 Sports and Recreation South Africa 7. Capacity 6 Department of Public Works 8. MIG funding arrangements .. 7 Department of Housing How funding will be phased in.

4 7 Department of Environment Affairs and Tourism How national funds are divided between municipalities .. 7 South African Local Government Association To ensure the effective management of MIG, the management of the MIG Programme , What MIG funding is used for .. 10. reports to MITT. Accessing MIG funds .. 10 This document provides all stakeholders with an introduction to the MIG Programme , Schedule of 11 what it is and how it works. It aims to assist councillors, Municipal officials and others Withdrawal of MIG funds .. 11 to gain a broad understanding of how the Programme works. Conditions applied to the use of funds.

5 11 More detailed information is available from the Department of provincial and Local Government (DPLG), specifically: 9. Implementation 13. Policy framework for the introduction of the Municipal Infrastructure Grant , January Planning arrangements .. 13 2004. MIG management arrangements by local government .. 13 Programme operating manual for the Municipal Infrastructure Grant , November Operation and maintenance of 17 2003. Guideline document for the establishment of Project Management Units, Draft 1, January 2004. MIG. 1. Municipal Infrastructure TASK TEAM Municipal Infrastructure TASK TEAM. 2. The vision of the MIG Programme A phased-in approach is used in the allocation of MIG.

6 The vision of the MIG Programme is to provide all South Africans with at least a basic All metros, district municipalities and high capacity local municipalities administer MIG. level of service by the year 2013 through the provision of Grant finance aimed at covering funds and manage MIG projects from the outset. The high capacity local municipalities the capital cost of basic Infrastructure for the poor. are referred to as Type 1 LMs;. Moderate and low capacity local municipalities do not administer MIG funds or manage MIG projects for the first year of the MIG Programme (2004/05). These municipalities are referred to as Type 2 and 3 municipalities.

7 District municipalities will administer MIG funds and manage MIG projects on behalf 3. Mission of Type 2 and 3 municipalities in the first year of the MIG Programme ;. The MIG Programme has been designed to achieve the following: For following years of the MIG Programme (2005/06 onwards) DPLG will establish Access to basic services; criteria for deciding on the functions of Type 2 and 3 municipalities as part of the MIG. Consolidation of funding arrangements; Programme ;. Decentralised service delivery; DPLG will develop a phased-in, capacity building approach to elevate the status of Job creation through Extended Public Works Programme ; other municipalities so that they can administer the funds; and Local economic development; National and provincial government will build the capacity of Type 2 and 3 municipali- Empowerment of municipalities; and ties to undertake MIG functions.

8 Poverty alleviation HOW WILL MIG FINANCIAL RESPONSIBILITIES BE PHASED IN? MIG financial responsibilities will be phased in as follows: 2004/05 2005/06 2006/07. 4. Why have a MIG Programme ? Allocation of MIG funds Funds paid to metros, Funds allocated to all Funds allocated to all In the past Infrastructure grants were uncoordinated, fragmented and managed by dif- district municipalities municipalities municipalities ferent departments. This defeated the purpose of cost effective and integrated service and Type 1. delivery. Municipalities were often not in control of Infrastructure projects within their municipalities only jurisdiction.

9 Further, projects were handed over to municipalities without resources for Administration of MIG Funds administered Administration Funds administered the maintenance and operation of the resulting Infrastructure . funds by metros, district of funds may be by all municipalities Hence the new demand driven approach with: municipalities and delegated to Type except Type 3 LMs. All Infrastructure grants integrated into one; Type 1 municipalities 2 LMs. only. Programme co-ordination through one structure, the MIG unit;. Funding allocations linked to Integrated Development Plans (IDPs); Management of MIG Only metros, district New Type 1 LMs may be identified to take on Communities participating in identifying projects; projects municipalities and MIG management responsibilities.

10 Infrastructure planning done by municipalities themselves; and Type 1 municipalities manage MIG projects. Predictability of capital Grant allocations. Current CMIP and CMIP and WS grants CMIP and WS grants CMIP and WS Grant Water Services Grant included on MIG included on MIG programmes no commitments. (See for allocation. allocation. longer get allocations. more on this). 5. Role players and stakeholders MIG Programme Administration of Management of MIG Management of MIG. management capacity funds for Type 2 projects for Type 2. projects for Type 3. Functions of municipalities building municipalities. Administration of Municipalities There are four key functions municipalities undertake with respect to MIG: funds for Type 3.