Transfers and subsidies expenditure increased from R2.7 billion in 2008/09 to R3.5 billion in 2011/12, at an average annual rate of 9.2 per cent, as a result of the development of bulk water infrastructure. These included funds allocated for the construction of the De Hoop Dam and ancillary infrastructure such as distribution pipelines for the Nandoni Dam, and the rehabilitation of repair and existing bulk infrastructure.