6b. Notes on infrastructure development

1. WHAT THE GRANT SHOULD BE USED FOR:

The grant will cover the following land uses:

a) Grazing projects: fencing and livestock water requirements and handling facilities; and

b) Crop production: irrigation and water equipment, and fencing.

The funds can be utilised for the following infrastructure items where appropriate:

Fencing:

Boundaries and internal camp fencing for livestock and irrigation, including droppers and poles.

Livestock water requirements:

a) Windmills:

! windpipes;

! water tanks/reservoirs;

! crips;

! cement for dam; and

! windmill heads, bars, cylinders, and wheels.

b) Pumps

c) Pipes, pipelines and taps

Stock handling facilities:

a. loading ramps;

b. dipping tanks;

c. crush-pens;

d. sorting kraals;

e. handling kraals;

Crop production equipment:

a. boreholes;

b. water channels and dams;

c. pivots ie Centre or linear irrigators;

d. pumps ie. Centrifugal pumps; and

e. sprinkle systems: permanent/portable pumps, pipe couplers, seal couplers, valves, filters, risers, rotary sprinkler, pressure regulators, and pipe specials.

The grant cannot be used for production capital and that funds for start-up enterprises must be sought from other venues.

2. THE MAXIMUM AMOUNT OF COMMONAGE GRANT TO BE SPENT ON INFRASTRUCTURE

A ceiling has been placed on how much of the commonage grant can be made available for the infrastructure. It is proposed that this be a % in relation to the value of the land. Although this amount differs from project to project, the indication is that a maximum of 25% of the land value would cover the basic infrastructural development. This 25% should be seen as a reasonable upper limit to allocate to the infrastructure and the exact percentage allocated should be based on the assessment report.

3. LEGAL MECHANISM FOR ACCESSING THE GRANT

Act 126 does not allow for the release of funds for development. Section 10(1)(c) of Act 126 will be amended as part of the Land Affairs General Amendment Bill, 1999 (clause 5[c]). However, the Bill has not been approved and the Grants and Services document have been amended to allow for expenditure of the grant (See submission to the Minister). For detail on the amended section in the Grants and Services, see Grants and Services, Version 6.