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Skip Navigation LinksPUBLIC NOTICE - NOTICE OF IMPLEMENTATION OF ROADS CONCESSION PROGRAMME IN POLOKWANE MUNICIPALITY

Notice is hereby given in terms of the provisions of section 46 of the local Government Municipal Finance Management Act 56 of 2003 read with Section 21 of the local Government Municipal Systems Act 32 of 2000.

Polokwane Municipality has during its 2017/18 Financial Year IDP Consultation identified roads as the second priority in the Municipality. This then meant that roads in the municipality had to be prioritised for implementation.

In order to enable the municipality to cover sufficient roads in both urban and rural for rehabilitation and upgrading, a concession programme was introduced. The fees for this program will be based on the ECSA rates.

Municipality has prepared the financial model that seeks to support the project implementation of this programme and will unlock a total budget of R450 million which is going to be funded from the R300 million refinancing project loan facility as well as the R150 million contribution from the sinking fund. At the moment after detail analysis of the municipality financial resources available in the MTREF period, the affordability of this project is within the band of R450 Million over the MTREF period.

 

On road rehabilitation and upgrading programme, the impact on saving is illustrated as follows:

 

FacilityAmountPeriodInterest  payable
Project borrowingR450 000 00010 years    R  248 746 810,83
Project borrowingR300 000 00010 years     R 165 831 207,22
Savings        R 82 915 603,61

 

It is advisable that the municipality opt for the refinancing of road concession on the total value of R300 million from refinancing as opposed to R450 million because the Council will realise significant savings over the period of the tenure of the loan.

The project is funded to an extent that the council authorised accounting officer to unlock the funds through refinancing mechanisms and sinking fund contribution.

Council must first authorise the Accounting Officer to negotiate the refinancing of this project with DBSA since the maturity of the existing two loans are due to be in 2020/2021 financial year. The municipality will realise cash flow benefits because the capital repayment of this commitment will only start in 2021 financial year. Over and above this, the municipality can also withdraw funds from the sinking fund as part of the co-funding of this roads programme.

The Municipality must follow the section 46 of the MFMA read with section 21 of Municipal Systems Act before the refinancing can be concluded with DBSA. For any shortfall on the funding of this programme, the Council must authorise the accounting officer to explore the hybrid funding mix such as municipal bonds and Grant funding as part of the mechanism to fund roads in a long run.

Polokwane Municipality has to implement the upgrading of gravel to surfacing and rehabilitation of roads through concession program in all its Wards from Ward 1 to Ward 45.

For the 2018/19 financial year, a budget of R80 million is set aside to kick-start the concession programme as part of the sinking fund contribution.

Following a Mayoral Committee meeting held on the 03rd of December 2018, a resolution was taken to utilise the available budget of R80 million to implement prioritised RAL roads.

Below is the list of prioritised wards or roads to benefit from the available R80m:

  • Ward 15 (D3472)
  • Ward 5 (Nobody to Laasthoop)
  • Ward 35 (Ramakgaphola to Gilead)
  • Ward 08 (Benharries from Zebediela road to D19)
  • Ward 19 (Westernburg to Gibbon, Vervet)
  • Ward 42 (D3361 Magongwa to D19)

 

The following is a proposed list of prioritised roads from Ward 1 to Ward 45:

 

 UPGRADING OF ROADS FROM GRAVEL TO TAR
WARD No COUCILLOR DESCRIPTION OF ROAD PRIORITYKM
1Baloyi AR Upgrading of Arterial road from R37 via Thokgwaneng RDP to Silo school 12
2Maja M Upgrading of Arterial road D 4011 in Ga Thaba from D4018 Soetfontein Clinic to Ga Thaba connect D 4018 14,7
3Molepo FJ Upgrading of Arterial road D4014 in Makgoro (Sekgweng) to Makatjane 12
4Molepo RC Upgrading of arterial road from Gravel to tar –Subiaco via Nnoko to Mountain view 12
5Makwela M Upgrading of D1809 from Gamaboi joining D3040 to Laastehoop 15
6Phoshoko Upgrading of roads from gravel to tar Nobody traffic circle to Mothiba Mafiane11
7Mothapo MS Upgrading of  arterial road from Phuti to Tjatjaneng 12
8Mojapelo TSPUpgrading of street in Benharries from Zebediela road to D19 12
9Setati LR Ugrading of road D3330 Chebeng to Sengatane13
10Mothapo JE Upgrading of Blood river main road via Mulautsi high school to agriculture houses11,7
11Sivhabu NA Upgrading of internal street in Seshego zone 5 between B and E11,6
12Nkwe TUpgrading of internal street in seshego zone 4, 93Avenue 10,3
13Ramaphoko MM Upgrading of outline road in Zone1 ext (90570 to Bookelo(22/1479) street 11,3
14Mashabela MS Upgrading of internal street in Lithuli phase 1 12,3
15Makgopya TP Upgrading of  arterial road D3472 Ga-Setati to  Mashobohleng D3332 12
16Moakamedi MA Upgrading of road D3432 from Ga-Mosi(Gilead road) via Sengatane to Chebeng12
17Rapetsoa PA Upgrading of internal street in Seshego zone 1, 25th avenue (behind nelson mandela drive)10,3
18Malebana MB Upgrading of road from Leokama to Moshung12,9
19Shaikh H Upgrading of internal streets in Westerburg ext: Gibon, Vervet,Tamaran,  Quartz, Langur,Loris, Sifaka,Tarsier,Galago, Macaque, Pottos and sloth, Quenon streets and Lemur14
24Masekela MAUpgrading of road D3989  in Mathibaskraal to Nobody traffic circle 11
20Mashau TSUpgrading of Dewet from Munnik to R8110,92
25Mothiba MJ Upgrading of internal street from gravel to tar in Mankweng Unit A outline between Mamadimo Park link to Nchichane 10,4
26Skhosana KM Upgrading of internal street along Dikolobe primary school 10,9
27Mogale TJ Upgrading of road in ga Thoka from reservior to Makanye 403412
28Sekgobela MR Upgrading of Bus road from R71 to Dinokeng  between Mshongoville Gashiloane to Matshela pata11,5
29Malope MJUpgrading of arterial road from Madiga to Moduane12
30Mphekgwane KJ Upgrading of arterial road in Tshware from Taxi rank via Tshware village to mamotshwa clinic11
31Kubyana MF Upgrading of road internal street in Tlhatlaganya 12
32Manaka HS Upgrading of internal street from Solomondale  to D3997  11,6
33Dikgale SJ Upgrading of arterial road D4021 from Ga Mokgopo to Ga Makalanyane 12
34Maakamela ME Upgrading of D4036 Mongwaneng taxi route to Thune 11
35Mashiane MC Upgrading ofarterial road D3413  Ramakgaphola to Gilead road D3390 12
36Legodi NJ Upgrading of road from Ralema primary school  via Krukutje , Ga Mmasehla, Ga legodi, Mokgohloa to Molepo bottle store12
37Tsiri MMUpgrading of internal street in 54th Avenue , Seshego zone 210,2
38Moetie TF Upgrading of arterial Road in Ga Semenya from R521 to Semenya 11,5
40Maraba EL Upgrading of road D1501 from ga Kgasha via Segwahleng to Boetse 10
41Kganyago MW Upgrading of arterial road D3355 from Monotwane to Matlala clinic 15
42Matonzi MT Upgrading of arterial road D3361 in Ga-Magongoa to D19 13,2
43Mathye MV Upgrading of arterial road  D3383 in Setumong via Mahoai to Kgomo school 15
44Phaka TG Upgrading of arterial road Mabopane  to ga Seema D3394 13,8
45Mothata ML Upgrading of arterial road D3426 in Ga- Ramoshoana to Rammobola12
Total    
URBAN WARDS
WARD No COUCILLOR DESCRIPTION OF ROAD PRIORITYKM
22PretoriusIvydale roads, Ridge road - regravelling or tar  
Speed humps at entrance road Southern Gateway EXT 5  
speed humps And signage at Suid street  

 

All interested persons are invited to submit any comments, in this regard to the Municipality within 21 days of this notice.

Enquiries and comments

Contact person:                   

1. Mr Pilot Ramothwala

E-mail: pilotr@polokwane.gov.za

Tel: 015 290 2206


2. Ms Kulani Malubane

E-mail: Kulanim@polokwane.gov.za

Tel: 015 290 2241


3. Funding & Financial model:

Mr Joel Makgata

E-mail: joelm@polokwane.gov.za

Tel: 015 290 2354


4. Funding & Financial model:

Ms Zinzi Mphahlele

E-mail: zinzim2@polokwane.gov.za

Tel: 015 290 2195

 

Correspondence to: The Municipal Manager

                                                Polokwane Municipality

                                                P O B OX 111

                                                POLOKWANE

                                                0700

Physical Address:    Cnr Landrosmare & Bodenstein Street

                                                Civic Centre Building

                                                POLOKWANE

                                                0699

Submission must be clearly marked: Section 46 Road Concession loan.

Person who are physically disabled or unable to write but need to participate in the process may present themselves during office hours at 1st Floor, Civic Centre Office 110, Roads and Storm Water where they can be assisted.