98 transport corridors to the dominant economic nodes. A key challenge relates to financial restructuring of housing programmes and institutional relationships among the three spheres of government Government’s infrastructure development also notched up some important achievements with the development and approval by Cabinet of the Integrated Resource Plan and the Independent Systems Market Operator Bill, with the latter aimed to stimulate greater private investment in electricity generation. Importantly, almost 102 000 additional poor households are reported to have been given electricity connections. In addition 6 regional bulk water projects have been constructed, 8 dams have been rehabilitated and over 3000 water license applications have been finalised. In reflecting on service delivery achievements, this must be done in the context of the achievements made since 1994. In 1994 only 59% of our people had access to clean and safe drinking water. Eighteen years later, we have progressed to a national average of 94.7 % access to basic water services for all South Africans – an increase of 35.7%. The backlog now stands at 5.3%, or some 710 000 households compared to 3.9 million households in 1994. Out of the seven water resources infrastructure augmentation projects, the Vaal River Eastern Sub-System Augmentation Project (VRESAP) was completed during the reporting period. The remaining six are underway and at various stages of implementation. Four dams and two conveyance projects have been rehabilitated bringing the total of rehabilitated dams to 28 since the programme’s inception. To ensure the continued availability of bulk water, the infrastructure has to be maintained. Therefore a few augmentation projects were identified and prioritized for implementation during the medium term, 2009/10 to 2013/14 financial years. In terms of progress for the year under review, the following can be reported:  The Oliphant’s River Water Resources Development Project Phase 2A (ORWRDP), the construction of the dam wall on the far left side is already at the required height and the balustrade is being placed. The construction of the dam wall is making good progress towards completion in 2013;  The construction of the bulk distribution system (BDS) phase 2C, which is the pipeline from the dam to Steelpoort, has commenced. This phase is on track and is one of the links of the total bulk distribution system which will transfer water from the De Hoop and Flag Boshielo dams for domestic and industrial users. Its completion is still scheduled for March 2014;  The construction of the Mokolo-Crocodile water augmentation project is set to be commissioned and the water delivery is expected by the end of 2013. The implementation agreements as well as water supply agreements have been signed by Exxaro and Eskom. The water supply to the Local Municipality of Lephalale will be augmented;  The construction of the Mooi Mgeni Transfer Scheme Phase 2 began in February 2011 and it is expected to be completed in 2015. The first delivery of water was targeted for April 2013; 98