Burgemeestersbrief/mayor’s letter 7 October 2021
BURGEMEESTERSBRIEF, 7 OKTOBER 2021 (please see English below this text)
Tydens voorbereidings vir die 2021-22 konsepbegroting het dit duidelik geword dat George se behoeftes vir grootmaat-infrastruktuur die beskikbare kapitaalbefondsing sou oorskry.
Samesprekings is toe tussen myself as burgemeester, die munisipale bestuurder, die hoof finansiële beampte en senior lede van die Direktoraat Siviele Ingenieursdienste se personeel gehou. Daar is toe besluit om Nasionale Tesourie te nader om hulle advies en hulp te win om addisionele befondsing te bekom om die nodige uitbreidings aan die infrastruktuur aan te pak. Hierdie gesprek het George se groei oor die afgelope dekade in ag geneem. Die konstruksiebedryf se projekte (insluitend die op regeringsbefondsde behuising) in hierdie tydperk het druk op die beskikbare watersuiweringswerke en rioolsuiweringswerke se kapasiteit geplaas.
Na hierdie gesprekke gehou is, is daar aanbeveel dat die munisipaliteit vir ‘n infrastruktuur-befondsingsfasiliteit aansoek doen wat gewoonlik net toeganklik sou wees vir die groot metropolitaanse stede.
Na aanleiding hiervan is ‘n komplekse befondsingsaansoek vir R1102m met behulp van kundige adviseurs saamgestel met die klem op grootmaatwaterinfrastruktuur. Die aansoek behels opgraderings om die waterwerke se daaglikse suiweringskapasiteit te vehoog van 40Ml tot 60Ml. Tesame met ander verwante werke beloop hierdie opgraderings ‘n bedrag van R924m. Die verdere konstruksie vir projekte in Thembalethu en Pacaltsdorp behels R178m oor ‘n tydperk van vier tot vyf jaar. Hierdie aansoek word as die “miljaard-rand aansoek” beskryf.
Tesame met hierdie aansoek, is navorsing op ander projekte ook gedoen en met voornemende befondsers bespreek.
Die beoordeling van hierdie miljaard-rand aansoek is reeds vir die afgelope maande aan die gang. Die munisipaliteit is onlangs versoek om toe te sien dat beplanning in diepte gedoen word en dat die voorsieningskanaalprosesse in plek gesit word om die projekte te begin. Terwyl die besluit eers oor ‘n maand of twee bekend gemaak sal word, is daar kennis gegee dat ‘n toekenning van R81m binnekort oorbetaal gaan word. Hierdie toekenning word beskou as die aanvanklike befondsing vir die projek.
Tydens die bespreking oor die aansoek is daar beklemtoon dat George ekonomiese groei moet bevorder. Die 50% vehoging in beskikbare watersuiweringskapasiteit tesame met soortgelyke verhogings by die rioolsuiweringsaanlegte sal groei in konstruksie-aktiwiteite vir die volgende dekade aanmoedig.
Die vordering wat tot dusver gemaak is om infrastruktuurkapasiteit te verhoog sal toesien dat die kapitaalbegroting van die munisipaliteit heroorweeg moet word om voorsiening te maak vir verdere spandering op elektrisiteit, paaie, stormwater en ander belangrike infrastruktuur. Ons glo dat hierdie spandering op infrastruktuur, nuwe beleggings in George sal bevorder asook addisionele werkverskaffing verseker. Tans is ons alreeds bewus van beleggings wat in die landbou, hospitaal en administrasie bedrywe gemaak gaan word. Hierdie werksgeleenthede is van kritiese belang vir ons inwoners.
Alderman Leon van Wyk
Uitvoerende Burgemeester van George
***
MAYOR’S NEWSLETTER: 4 OCTOBER 2021
In March 2021 during preparations for our draft budget for 2021-22, it became apparent that George’s needs for capital infrastructure exceeded the capital funding sources available to the municipality.
In the engagements between myself as mayor with the municipal manager, the chief financial officer and senior staff from Civil Engineering Services Directorate, we decided to approach National Treasury to seek their advice and assistance to secure additional funding to undertake essential infrastructure expansions required in George. The ensuing discussion focussed on the growth that has taken place in George over the past decade and how additional construction activity (including on subsidised housing) had placed pressure on the existing available water treatment and waste-water treatment capacity.
Flowing from this constructive meeting, we were advised to apply for an infrastructure financing facility normally reserved for the big metropolitan cities.
This led to the development of a sophisticated funding application focussing on water infrastructure to the value of R1102m that was compiled with the assistance of specialist advisers. The application proposed upgrades to the water treatment works from a daily treatment capacity of 40Ml to 60 Ml along with associated plant upgrades for R924m and the construction of additional water infrastructure for Thembalethu and Pacaltsdorp amounting to R178m over a 4-5 year period. This application has been termed the “billion rand application”.
In addition to this application, project proposals for other infrastructure have also been prepared and discussed with prospective funders.
In the meantime, this billion-rand application for grant funding has progressed to the stage where the municipality has been requested to ensure that detailed planning and supply chain processes are put in place to commence implementation of the project. While the outcome is expected to be announced in the next month or two, there has been notification that a grant allocation of R81m will be made available soon. This allocation is seen as funding for the initial start-up phases of the project.
In the application submission the importance of George pursuing a path of economic growth was stressed. A 50% increase in available water treatment capacity along with similar increases envisaged for the waste-water treatment plants, will cater for growth in construction activity over the next decade.
The progress that has been made to increase infrastructure capacity will ensure that capital budgets for the municipality can be re-examined to cater for spending on electricity, roads, stormwater and other essential infrastructure. We believe that this infrastructure spending will drive investment into George and lead to additional job creation. In this regard we are already aware of investments taking place in agriculture, hospitals and in the business processing outsourcing sectors to critically provide employment opportunities for our citizens.
Alderman Leon van Wyk
Executive Mayor of George