Page 224 - UGU Dstrct Mun IDP Report '21-22

Table 6.1.3.2.1: MIG Allocation per Local Municipality
Source: Ugu District Municipality Draft Budget, 2021
N.B., It means that in each LM there must be project(s) funded by MIG at minimum amounted to the amounts above, to be implemented during 2018/2019 financial year. In order to ensure efficient operations in respect of water and sanitation provision, the PMU must transfer all completed projects to Operations and Maintenance Unit of which such unit must have clear Operations and Maintenance Plan(s) for all completed projects.
6.1.3.3 Water Services Infrastructure Grant (WSIG)
The WSIG allocation for 2021/2022 financial year will be R72 350 000. This means that the projects to be implemented during 2021/2022 financial year must be limited to annual allocation of R72,350,000. The amount of R72,350,000 must equate to the service providers appointed as well. Therefore, no commitment exceeding R72,350,000 must take place. The Project Management Unit must follow the same as MIG projects above in managing projects implemented using WSIG. Also, Operations and Maintenance Unit must have a clear Operations and Maintenance Plan(s) for completed projects to ensure efficiency in water and sanitation provision. The 2022 Division of Revenue Bill as approved by Parliament together with the National Budget has broken down the WSIG allocation to uGu District Municipality to be utilised or spent at minimum per Local Municipality as follows for 2021/2022 financial year:
Table 6.1.3.3.1: WSIG Allocation per Local Municipality
Source: Ugu District Municipality Draft Budget, 2022
N.B. At least each LM must have a project(s) implemented during 2021/2022 financial year under WSIG at minimum amounts per schedule above.
6.1.3.4 Expanded Public Works Programme Targets
In terms of 2018 Division of Revenue Bill as approved by Parliament together with the National Budget, uGu has been allocated a target of 1,058 employments through EPWP.
6.1.3.5 Capital Projects Funded by Internal Revenue
Looking at the current financial situation of the municipality it is most unlikely that the municipality will be able to fund any capital project during 2021 / 2022 from internal revenue. Therefore, it is advisable that all capital projects must be funded only by allocated Capital Grants due to spending pressures facing the municipality.
Municipality
Minimum Projects Allocations
UMdoni
126 575 751.90
Umzumbe
0.00
UMuziwabantu
3 446 644.10
Ray Nkonyeni
62 725 404
Whole of the District
20 000 000
Municipality
Minimum Projects Allocations
UMdoni
2 000 000
Umzumbe
0.00
UMuziwabantu
0.00
Ray Nkonyeni
23 000 000
Whole of the District
47 350 000
222 UGU DISCTRICT MUNICIPALITY