The Committee pointed out that, for example, the grant frameworks for the indirect components of grants such as the Rural Household Infrastructure Grant (RHIG) and the Municipal Water Infrastructure Grant (MWIG) contain clauses that provide for Service Level Agreements to be concluded between transferring national departments and receiving municipalities. In particular, the Service Level Agreements specify and call for skills transfer and capacity building to be part of the grant implementation process. The Committee emphasized that the main concern was the efficacy of these stated requirements in the grant frameworks and the need to ensure that the principles of capacity building and skills transfer find expression in all indirect grant allocations.