Expanded Public Works Programme Current Status

1
Expanded Public Works ProgrammeCurrent Status
PORTFOLIO COMMITTEE ON PUBLIC WORKS SEPT
2009 Period (1 April 2009 30 June 2009)
2
The Employment Challenge

• SA has a severe unemployment and poverty
  challenge
• Approx ¼ of labour force unemployed
• Approx 40 of population below the poverty line
• High rates of working poverty low pay
  relative to cost of living means that finding a
  job does not necessarily pull a family out of
  poverty.
• Govt has adopted targets to halve unemployment
  and poverty between 2004 2014. This can be
  seen as interim target only.

3
The Recent Employment Experience

• Formal employment began growing from 1997, at a
  health pace relative to GDP growth.
• Unemployment fell from 28 in 2004 to 23 in
  2008.
• The formal economy needs to generate an average
  500,000 net new jobs annually to halve
  unemployment. This was achieved in recent years
  not to be confused with EPWP Work Opportunities.
• The impact of the global economic crisis,
  combined with electricity rationing and until
  recently rising interest rates, reduced the rate
  of employment growth. Employment and unemployment
  did not change from Q1 2008 to Q1 2009.

4
Goal of EPWP Phase 2

• To create Equivalent 4, 5 million work
  opportunities in 5 years (i.e. 2 million Full
  Time Equivalent - FTEs) for poor and unemployed
  people in South Africa so as to contribute to
  halving unemployment by 2014, through the
  delivery of public and community services.
• (Scale up from 210 000 FTEs in Y1 to 610 000 FTEs
  in Y5
• Equivalent 4, 5 million 100-day work
  opportunities in 5 years )
• The expanded public works programme (EPWP) is an
  important part of governments capacity to
  provide employment to those who are not absorbed
  into the labour market (from FRAMEWORK FOR SOUTH
  AFRICAS RESPONSE TO THE INTERNATIONAL ECONOMIC
  CRISIS, p. 16)

4
5
The Meaning of Decent Work
Paraphrased from ILO website

• There is a high probability of earning sufficient
  income, whether through one job or multiple
  economic opportunities. The economy increasingly
  generates employment with a bias towards the
  creation of decent work opportunities and
  sustainable livelihoods DoL currently amending
  Ministerial Determination re employment
  conditions. Current minimum between R50 and R100.
  
• The majority of working people can achieve a
  sustainable and acceptable standard of living
  through the combination of earnings from work,
  private entitlements, and social protection.
• Human rights are respected in the process. This
  requires freedom for people to express their
  concerns, organize and participate in the
  decisions that affect their lives

6
EPWP Phase 2 Sectors

• Infrastructure Sector aims to create work
  opportunities through the use of labour-intensive
  methods during the construction and maintenance
  of Public funded projects
• Environment and Culture Sector aims to create
  work opportunities in public funded environmental
  programmes. Sector has also significant potential
  to keep expanding both its existing programmes
  and create new programmes that would provide
  environment-related services
• Social Sector aims to create work opportunities
  through the provision of social services. Sector
  is estimated to have the largest potential for
  expansion over the next five years
• Non-State Sector aims to create work
  opportunities through Non-Governmental
  Organisations, Community-Based Organisations and
  other Not-for-Profit Organisations (NPOs)
• The role of communities in developing their own
  local employment schemes and the role of NGOs,
  trade unions and CBOs in offering advice on
  priorities and in administering resources for and
  in running them will be promoted through
  Community Work Programmes (from FRAMEWORK FOR
  SOUTH AFRICAS RESPONSE TO THE INTERNATIONAL
  ECONOMIC CRISIS, pp. 16-17)

7
5 Year Work Opportunities Targets
Infrastructure Environmental Social Non-State Total
2009-2010 300,000 150,000 80,000 20,000 550,000
2010-2011 342,000 156,000 96,000 48,000 642,000
2011-2012 440,000 200,000 132,000 96,000 868,000
2012-2013 572,000 275,000 187,000 176,000 1,210,000
2013-2014 720,000 375,000 255,000 300,000 1,650,000
Total 2,374,000 1,156,000 750,000 640,000 4,920,000
8
Key Characteristics of EPWP Projects

• They are highly labour intensive a large
  percentage of the overall project costs are paid
  out in wages to the target group
• They employ large numbers of the EPWP target
  group
• The EPWP target group is paid wages between R50
  and R100 per day.
• The EPWP target group is employed under the
  Special Public Works Programme conditions of work
• Vulnerable group targets 55 women 40 youth
  and 2 people with disabilities

9
Funding of EPWP Programmes

• Funds for EPWP programmes are within the
  allocated budgets of national departments,
  provinces and municipalities through the normal
  budgeting process
• Over and above these budgets, those public bodies
  that are performing well will be able to access
  additional funds through the EPWP wage incentive,
  for which R 4.1 billion has been made available
  over the MTEF

10
Incentive Grant

• Over the MTEF, two incentive or performance-based
  conditional grants as well as an allocation for
  non-state sector participant employer
  organisations have been created on Public Works
  vote
• EPWP Incentive Grant provincial Infrastructure
  Sector departments will provide
• R151.419 million in 2009/10
• R400 million in 2010/11
• R800 million in 2011/12
• EPWP Incentive Grant to municipalities will
  provide
• R201.748 million in 2009/10
• R554 million in 2010/11
• R1.108 billion in 2011/12
• EPWP Incentive Grant allocation to Non-State
  Sector (primarily for paying wages to EPWP
  workers)
• R80.5 million in 2009/10
• R359.621 million in 2010/1
• R308.740 million 2011/12

11
Dec 2009 Target

• Programme expected to create 500 000 work
  opportunities between March 2009/10 and December
  2009/10.
• All public bodies from all spheres of government
  (i.e. national and provincial departments, as
  well as municipalities) and the Non-State Sector
  (supported by government incentives), required to
  deliberately optimise creation of
  labour-intensive work opportunities for
  unemployed and poor people through delivery of
  public and community services
• Public bodies should create work opportunities in
  terms of their normal mandates and budgets, e.g.
  according to allocations as per the Estimates of
  National Expenditure and grants falling under the
  Division of Revenue Act
• Training and enterprise development will be
  implemented in sector specific programmes to
  enhance service delivery, beneficiary well-being
  and skills development.

12
First Quarter Results 1

• Period April to June 2009 (see Annexures A-E)
  indicate that more than 83 900 work opportunities
  have thus far been reported
• Figure is very conservative and reflects
• poor reporting
• under-reporting
• in some cases no reporting on active projects
  across all three spheres of government.

13
Progress against 2009-2010 targets Overall EPWP
Sector Targeted work opportunities WO Work opportunities WO delivered to date 1 Ap 09 30 June 09 Work opportunities WO delivered to date 1 Ap 09 30 June 09 Work opportunities WO delivered to date 1 Ap 09 30 June 09 Work opportunities WO delivered to date 1 Ap 09 30 June 09
Sector Targeted work opportunities WO Gross Gross Net Net
Sector Targeted work opportunities WO No of targeted WO No of targeted WO
Infrastructure 300 000 59,579 20 59,579 20
Environment 150 000 13,960 9 13,960 9
Social 80 000 7,466 9 7,466 9
Non-state 20 000 2,909 15 2,909 15
Total 550 000 83,914 15 83,914 15
Source Targets Business Plan (dated January 2009) Gross Work Opportunities overall number of work opportunities that the reporting body reported on Net Work Opportunities calculated by subtracting the possible work opportunities if the projects were implemented machine intensively from the Gross Work Opportunities only applies in Infrastructure Sector 0 TOTAL Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years Source Targets Business Plan (dated January 2009) Gross Work Opportunities overall number of work opportunities that the reporting body reported on Net Work Opportunities calculated by subtracting the possible work opportunities if the projects were implemented machine intensively from the Gross Work Opportunities only applies in Infrastructure Sector 0 TOTAL Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years Source Targets Business Plan (dated January 2009) Gross Work Opportunities overall number of work opportunities that the reporting body reported on Net Work Opportunities calculated by subtracting the possible work opportunities if the projects were implemented machine intensively from the Gross Work Opportunities only applies in Infrastructure Sector 0 TOTAL Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years Source Targets Business Plan (dated January 2009) Gross Work Opportunities overall number of work opportunities that the reporting body reported on Net Work Opportunities calculated by subtracting the possible work opportunities if the projects were implemented machine intensively from the Gross Work Opportunities only applies in Infrastructure Sector 0 TOTAL Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years Source Targets Business Plan (dated January 2009) Gross Work Opportunities overall number of work opportunities that the reporting body reported on Net Work Opportunities calculated by subtracting the possible work opportunities if the projects were implemented machine intensively from the Gross Work Opportunities only applies in Infrastructure Sector 0 TOTAL Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years Source Targets Business Plan (dated January 2009) Gross Work Opportunities overall number of work opportunities that the reporting body reported on Net Work Opportunities calculated by subtracting the possible work opportunities if the projects were implemented machine intensively from the Gross Work Opportunities only applies in Infrastructure Sector 0 TOTAL Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years

• Net jobs for Q2 was as follows
• Infra 34
• Env 86
• Social17
• Econ 54

14
NET jobs per sector against total target for
2009-10 (1 Apr 2009 30 June 2009)
15
Job opportunities per sector and province
(Overall) (1 April 30 June 2009)
Province Environment Culture Infrastructure Non-state Social TOTAL
EC 851 12,834 1,070 420 15,175
FS 799 930   2,283 4,012
GP 2,651 6,874 1,121 3,324 13,970
KZN 2,034 32,384 100   34,518
LP 823 852 101 113 1,889
MP 481 1,819 166   2,466
NC 141 580   1,041 1,762
NW 1,120 1,132 351   2,603
WC 2,333 2,174   285 4,792
TOTAL 11,233 59,579 2,909 7,466 81,187
16
Full Time Equivalent performance Provincial Gov
Dept (1 April 30 June 2009)
Provincial Gov Dept 2009-10 ELIGIBILITY THRESHOLD Q1 (April - June 2009) THRESHOLD Q1 ACTUAL FTE PERFORMANCE Q1 performance
TOTAL 31,434 7,859 5,812 74
KwaZulu-Natal 6,791 1,698 2,913 172
Western Cape 2,003 501 423 84
Gauteng 2,594 648 846 130
Eastern Cape 5,836 1,459 1,167 80
Mpumalanga 2,760 690 161 23
Free State 2,407 602 22 4
Limpopo 5,208 1,302 172 13
North West 2,731 683 71 10
Northern Cape 1,103 276 37 13
17
Full Time Equivalent performance Provincial Gov
Dept (1 April 30 June 2009)
18
Full Time Equivalent performance
Municipalities (1 April 30 June 2009)
Municipalities 2009-10 ELIGIBILITY THRESHOLD Q1 (April - June 2009) THRESHOLD Q1 ACTUAL FTE PERFORMANCE Q1 performance
TOTAL 15,747 3,937 1,688 43
Eastern Cape 1,927 482 209 43
Free State 871 218 32 15
Gauteng 7,390 1,847 534 29
KwaZulu-Natal 3,593 898 719 80
Limpopo 0 0 25
Mpumalanga 0 0 59
Northern Cape 0 0 0
North West 0 0 110
TOTAL 15,747 3,937 0
19
Full Time Equivalent performance
Municipalities (1 April 30 June 2009)
20
Actions Taken to Ensure Delivery

• Minister engaged and signed protocols that
  confirm 500 000 December 2009 targets, as well as
  five year targets for provinces and
  municipalities, with Premiers and MECs of 7 out
  of 9 provinces
• DPW technical teams give support to provinces and
  municipalities to ensure that creation of work
  opportunities is prioritised in design and
  implementation of projects across government