The Department had allocated an amount of R1.1 billion towards capital payments for the 2010/11 financial year. As of the first quarter the Department had only managed to spend R9.5 million or 24.1 per cent of capital budget. The under expenditure was due to delays in the signing of contracts between Department of Water Affairs and the service providers of certain capital projects in relation to Regional Bulk Infrastructure Grant and Accelerated Community Infrastructure Project (ACIP) for the provision of water services. The project was a rapid intervention focusing on three areas namely, Community Infrastructure, Water Conservation, Demand Management and Waste Water Infrastructure Refurbishment programme. The programme was targeting five provinces namely, Mpumalanga, Limpopo, Eastern Cape, KwaZulu-Natal and Northern Cape Province. Essentially, it targeted only those areas which had water related challenges such as cholera, water shortage, water loss, water wastage as well as the demand and supply of water in general. The bulk of this capital budget had been allocated to programmes such as Masibambane programme which provided water services in rural areas, the poverty alleviation programmes such as Working for Water, Working on Fire programme and the Municipal Drought Relief Grant.