PROVISIONAL figures for the 2007/8 financial year show that the City of Cape Town has spent a record R3,1 billion (78%) on capital projects for the year ending in June 2008.

The percentage spend is also a record for the city, despite the budget having increased dramatically from previous years. In addition, of the unspent portion of the 2007/8 budget, a further R0,62 billion of committed projects (e.g. awarded tenders) will be rolled over to the 2008/9 budget, bringing the total of spend and commitment to 94% of the 2007/08 capital budget.

This record expenditure has accelerated the key delivery platform of the Multiparty Government (MPG) of the City, which is to drive economic development through infrastructure provision. Major backlogs in water and sewage systems, roadways, solid waste removal capacities and electricity distribution systems have been addressed. Housing projects have progressed. Sports facilities, parks, libraries, clinics, cemeteries, halls and beach amenities have been expanded.

The 2007/8 capital spend is 3.3 times that spent annually when the ANC ran the city. The clear trend of improved infrastructure delivery since the election of March 2006 can be seen in the graph below. 

The results underline the opening statement of Executive Mayor Helen Zille in her budget speech last year: "The prime objective behind this budget is infrastructure-led economic growth. Our job as local government is to ensure better roads, reliable electricity, adequate water and sanitation and a clean, safe public environment. By doing so, we offer the real opportunities our people need to improve their quality of life and we also encourage investment in our city. This in turn is the key to job creation, the single most important opportunity people need to escape poverty".

In response to these results, Mayoral Committee Member for Finance, Cllr Ian Neilson, said: "The tremendous efforts of the past two years of rebuilding the City organisation, improving cash flows to our services, collecting consumer debts and better project administration, is paying off in a better serviced city. We need to keep the momentum of delivery up at these levels so that we can overcome the backlogs and unlock development further."