. The construction of clinics and hospitals in KwaZulu-Natal were delayed due to the lack of capacity of officials at the provincial Department of Public Works who acted as the implementing agent for the provincial Department of Health. The department committed itself to manage more projects than they could cope with, resulting in delays of up to five years. A service level agreement was drawn up by the provincial departments of Health and Public Works and the Ithala Development Finance Corporation, transferring various projects to them in an attempt to avoid further delays in finalising the construction of the projects. Eight of the projects with a total value of R198,6 million that were transferred, had already been delayed between one to five years. Furthermore, Ithala Development Finance Corporation also had a lack of capacity, as six programme managers were appointed to manage 29 projects for the provincial Department of Health and 230 projects for the provincial Department of Education.