PRESENTATION%20TO%20THE%20SELECT%20COMMITTEE%20ON%20PUBLIC%20SERVICES

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PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC
SERVICES

• STRATEGIC PLANNING AND BUDGET PRESENTATION
• 07 May 2008

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Context of the Presentation

• The departments strategic plan is premised on
  the Governments pledge in SONA to work together
  to realise the core aspiration of our people to
  attain a better life for all
• Consequently, in response to the Presidents call
  for business unusual the presentation attempts
  to sketch out the departments response and role
  towards the achievement of the Governments set
  out objectives.

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Format of the Presentation

• The presentation will expose the Committee on the
  departments role on the roll-out of the Apex
  Priorities
• A high level Government policy issues relating to
  the interventions towards the transformation of
  the sectors falling under the departments
  responsibilities
• A high level discussion of the departments
  programmes in general

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Policy Unit

• Objectives of the Policy Unit
• To provide strategic leadership for sustainable
  growth, development and transformation of the
  property and construction industries

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Key Performance Areas 2008-2009

• In pursuance of DPWs mandate and broader
  government objectives, the Policy Unit will
  continue to -
• provide strategic leadership for the growth,
  development and transformation of the
  construction- property industries
• regulate the construction- property industries
  and related professions
• promote best practice in the management of state
  immovable assets through roll out of the
  implementation of Government Immovable Asset
  Management Act (GIAMA)
• contribute to the National Public Works
  Programmes and the Governments Programme of
  Action and
• undertake a series of research to determine
  points of policy intervention to promote growth,
  development and transformation of both sectors

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Transformation of the Property and Industry

• As contribution to the transformation of the
  property sector, the department will establish a
  Property Incubator model to create an enabling
  environment to promote sustainable emerging
  enterprises in all the property activities of the
  department
• Emerging enterprises, selected through a
  pre-approved criteria, to be in the Incubator
  Programme for a limited number of years
• Work opportunities to be provided through
  selective procurement process as well as
  supply-side support such as access to finance,
  training, mentorship, enterprise development,
  etc.
• Targets to be set taking into account the
  baseline.
• These property activities include Facilities
  Management, lease broking, leasing, disposals.

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Transformation of the Property and Industry contd

• Quick wins to be identified
• - lease broking
• - property services such as cleaning, garden
  services with specific focus to promote women-
  and youth-owned enterprises (ensuring job
  security and quality)
• - disposal of under and or unutilised buildings
  and small pieces especially residential
  properties
• - release of land for land reform and low cost
  housing etc.
• Department will target high levels of
  participation of emerging enterprises and
  individuals in these areas to get close to
  Cabinets target of 85.

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Transformation of the Construction and Industry

• Together with provincial departments of Public
  Works, the department will roll out the
  implementation of the National Contractor
  Development Programme (NCDP) supported by CIDB
• - targeting emerging enterprises at all levels
  of the CIDP Register,-- support programmes to be
  structured in line with capacity requirements of
  the enterprises
• Strategic co-operation to be established with
  different public and private entities.
• Department will also roll-out the implementation
  of its Skills Development Strategy focusing on
  improvements through out the skills pipeline.

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Regulation of the property and construction
industries

• Recognising the developments in the property and
  construction industries, the department will
  conduct extensive reviews in the following
  policies and legislation
• - its White Papers and Public Works and
  Construction industry
• - legislation establishing the State Enterprises
  reporting to Public Works
• - Review of Expropriation Act and CBE and
  Professional Councils Legislation is underway.
• Conduct research on
• - different pieces of legislation administered
  in different spheres of government that impact
  on property development
• - different legislation administered in
  different spheres of government that regulate
  to construction industry.
• Appropriate action to be taken depending on the
  outcome.

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Best practice and uniformity in state immovable
asset management

• In driving the implementation of GIAMA throughout
  national and provincial government departments,
  the department will
• - finalise development of and publicise
  comprehensive guidelines on GIAMA for users and
  custodians
• - assist provincial custodians to ensure state
  of readiness for implementation by ensuring
  that
• gt asset registers are updated to meet the NT
  minimum requirements
• gt vesting of state land
• gt adequate capacity is developed to implement
  GIAMA
• gt development of uniform policies for property
  and asset management.

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Contribution to National Public Works Programme
(NPWP) and job creation

• Department will conduct research to assess
  current government initiatives that contributed
  to the principles of NPWP with recommendations on
  appropriate interventions
• Appoint at least 10 interns during this current
  year.

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Research

• A Research Coordinating Committee will be
  established comprising all relevant units of the
  department to establish research agenda and
  coordinate all research.
• Based on this a series of research will be
  undertaken to determine areas of intervention by
  the department.
• Releasing of publications on critical economic
  information about the state of the industries

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EPWP

• Objectives of EPWP
• Contribute towards the eradication of poverty
  through the creation of temporal work
  opportunities, income generation, skills
  development and exit opportunities where it is
  possible.

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Key performance areas Strategic Review - 2008

• FOCUS AREA 1 ENHANCING EPWP INTERNAL CAPACITY
  AND PERFORMANCE
• Enhance internal EPWP capacity
• Positive EPWP public profile
• Improve EPWP reporting/verification/integrity
• EPWP performance evaluation and action plan to
  improve qualitative performance
• FOCUS AREA 2 ENHANCING DELIVERY OF THE EPWP
• Enhance Municipal EPWP delivery capacity
• Enhance Provincial EPWP delivery capacity
• Enhance National DPW EPWP delivery capacity as
  implementer
• FOCUS ARE 3 EXPANDING AND IMPROVING BENEFICIARY
  SELF SUFFICIENCY
• Expand and improve beneficiary training
• Facilitate the implementation of the exit
  strategy approach
• FOCUS AREA 4 DEVELOPING A LONG TERM STRATEGY OF
  THE EPWP
• Develop and secure agreement for the long term
  strategy of the EPWP
• Identification of new areas for expansion
  including Environmental Sector

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KPA 1 Enhance internal EPWP capacity
Outcome Outputs
An efficient and effective nationwide institutional capacity is established that mobilises, supports, monitors and reports on the implementation of the EPWP Organisational development support provided to achieve reqd capacity review and adjust current structure Integrated management process established and maintained roles responsibilities at Provincial level resolved targets and protocols set
KPA 2 Positive EPWP Public Profile KPA 2 Positive EPWP Public Profile
Positive perceptions of the EPWP potential beneficiaries and the general public Compliance against visibility requirements promoted Communications Campaign to profile successes implemented ongoing high quality documentation of beneficiaries Constructive critical debate around the EPWP promoted Beneficiary awareness increased Information on progress of the EPWP against target communicated widely to the public including the development of tools
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KPA 3 . Improve EPWP reporting/ verification/
integrity
Outcome Outputs
Accurate, timeous and comprehensive information on EPWP activities and outcomes are available to EPWP decision makers and managers and for packaging to the public. Implementers receive timeous and appropriate reports and feedback on their EPWP performance Development and implementation of a web-based EPWP MIS Effective utilization of the EPWP MIS Ongoing verification programme

Efficiency, effectiveness and impact of the EPWP improved Review and adjust evaluation framework Specific evaluations requested and undertaken An analysis report produced into the duration of work opportunities, level of labour intensiveness and implications for training and person year targets. An analysis report produced on cost benefit of labour intensive approaches Sector and programme managers participate in a critical analysis of their data and establish strategic interventions to improve sector and provincial performance
KPA 4 EPWP performance evaluation and action
plan to improve qualitative performance
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Focus Area 2 Enhancing delivery of the EPWP

KPA 5 Enhance Municipal EPWP delivery capacity
Outcomes Outputs
EPWP Municipal targets are met and/or exceeded specified target jobs, training, SME. EPWP contributes to improved service delivery at Municipal level. EPWP mainstreamed at Municipal level. Infrastructure technical support provided to 130 prioritized Municipalities Support provided to 30 Municipalities in addition to the 130 prioritized Municipalities Excellence recognised and rewarded Support for effective social facilitation provided New Venture Learnership and Cooperatives developed and supported Social Technical support provided to six metros and two district municipalities based on investigation Large infrastructure projects implemented EPWP Waste Management Initiative implemented Vukuphile Programme implemented
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Focus Area 2 Enhancing delivery of the EPWP

KPA 6 Enhance provincial EPWP delivery capacity
Outcomes Outputs
EPWP Provincial targets are met and/or exceeded specified target jobs, training, SME. EPWP contributes to improved service delivery at Provincial level. EPWP mainstreamed at Provincial level. Support provided to the Early Childhood Development (ECD) programme Support provided to the Home Community Based Care (HCBC) programme Technical support provided to the Large infrastructure project Technical support provided to the Access Roads programme Vukuphile Programme implemented Provinces supported to identify accommodation for social sector facilities in DPW managed properties Support provided to Provinces on NYS roll out New Venture Learnership and cooperatives developed and supported Excellence recognized and rewarded Support for effective social facilitation provided Technical support to new provincial social programmes provided subject to provincial commitments
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Focus Area 2 Enhancing delivery of the EPWP
KPA 7 Enhance National DPW EPWP delivery
capacity as implementer
Outcomes Outputs
DPW demonstrates its commitment to lead and contribute to the achievement of EPWP National targets work opportunities, training, SME and improves service delivery through the EPWP. DPW mainstreams EPWP in targeted programmes DPW Capital and Building Maintenance Projects are implemented as EPWP projects National youth service NYS involved in DPWs building activities Social sector facilities accommodated in un-used DPW managed properties
Focus Area 3 Expanding and improving beneficiary self sufficiency Focus Area 3 Expanding and improving beneficiary self sufficiency
KPA 8 Expand and improve beneficiary training KPA 8 Expand and improve beneficiary training
Ability and confidence of beneficiaries to access work opportunities is enhanced DoL processes for accessing beneficiary training streamlined all processes including role of public body Prior training prioritized and implementation motivated SETA processes for accessing learnerships and skills programmes accredited training streamlined Training content is adjusted to prioritize technical skills. Training provider capacity is enhanced Capacity of public bodies to manage and facilitate training is enhanced.
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Focus Area 3 Expanding and improving beneficiary
self sufficiency

KPA 9 Facilitate the implementation of the
exit strategy approach
Outcomes Outputs
Broad based understanding obtained amongst stakeholders and implementers on the role of the EPWP in respect of beneficiaries accessing sustainable exit opportunities. Specific exit plans are developed for EPWP supported SMEs/NYS A practical, implementable and sustainable exit framework is developed by sector for the EPWP
Focus Area 4 Developing a long term strategy for EPWP Focus Area 4 Developing a long term strategy for EPWP

Long term EPWP programme design formulated and approved Finalise Mid term Review Complete Strategic Review Formulate Concept report Formulate detailed report
KPA 10 Develop and secure agreement for the
long term strategy of the EPWP
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Focus Area 4 Expanding and developing a long
term strategy of the EPWP
KPA 11 Identification of new areas for
expansion
Outcomes Outputs
New areas identified and scoped Environmental sector review and other inputs are analysed and converted into an expansion plan for the sector Health Systems Trust social sector report and other inputs are analysed and converted into an expansion plan for the sector Jobs for Growth programme reviewed and EPWP expansion plan formulated An evaluation of Infrastructure services backlogs undertaken and EPWP expansion opportunities identified An evaluation of the 2010 transport programme undertaken and EPWP expansion opportunities identified
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ASSET MANAGEMENT

• Objectives of Asset Management
• Units specific purpose is to ensure that
  immovable asset owned and/or utilised for
  delivering various government services yields
  functional, economic and social benefits to the
  State for improved service delivery

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Key Performance Areas2008 -2009

• Provide efficient and effective Asset Management
• Implementing GIAMA-contribution to poverty
  alleviation and job creation, improving service
  delivery, complying with corporate governance
  requirements
• Promoting BEE and contributing to the
  transformation of the construction and property
  industries
• Supporting Expanding Public Works Programme
• Accelerated and Shared Growth Initiative and
  (ASGISA) Joint Initiative for Priority Skills
  Acquisition (JIPSA)
• Implementation plan for the Turnaround Strategy

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National Infrastructure Maintenance Strategy

• Cabinet has recognized the importance of
  infrastructure maintenance within government and
  the role that effective maintenance will play in
  support of ASGISA.
• To this end cabinet has approved the National
  Infrastructure Maintenance Strategy (NIMS) and
  the Department of Public Works has been tasked
  with leading the implementation of the programme
  to deliver on the strategy.
• Implementation of the strategy requires
  significant coordination within government, in
  order to ensure that all the organs of state plan
  effectively for and implement maintenance of
  their strategic infrastructure.
• Infrastructure, in the form of public buildings,
  roads, water and sewerage systems, electricity
  and other services, supports quality of life and
  is the foundation of a healthy economy.
• NIMS is going to be formally launched before June
  2008

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Asset Management Plans and GIAMA Implementation

• Are assessed in relation to their performance,
  suitability, condition and the effect of the
  condition on service delivery ability and
• Assets are decommissioned in line with assessment
  recommendations.
• Asset management has completed the first set of
  User Immovable Asset Management Plans (UAMPs) and
  embarked on the second phase.
• Guidelines for the Custodian Immovable Asset
  Management Plans (CAMPs) will be completed by 30
  July 2008 and the actual CAMP will be in place
  during the 2008/09 fiscal year.

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Access for People with Disabilities (AMs APEX
Priority 1)

• Government has an obligation to make its
  buildings and facilities accessible to all its
  citizens, including people with disabilities.
• The following categories of people are affected,
  include but not limited to physically disabled
  (minor to quadriplegia), ambulatory problems
  (from temporary to problems due to age
  infirmity), blind and partially sighted, hearing
  impaired, speech impaired, intellectually
  challenged and minors and the aged.
• Although an amount of R 63 million was to be
  prioritised from the maintenance budget, it has
  since been resolved that the operations branch
  make access for people with disabilities
  mandatory in all new buildings specifications.
• The old buildings will have to be prioritised
  from respective client departments capital
  budget.

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Rehabilitation of Unutilised State Buildings
(AMs APEX Priority 2)

• With a view of enhancing the value of State
  immovable assets and improving service delivery
  to clients, the department will embark on the
  rehabilitation of State-buildings primarily for
  use by government departments.
• Priority will be given to properties that are
  strategically located to support the functions of
  the client departments.
• Also, the properties that would stimulate
  economic development in all regions in the
  country will be given a priority.
• An amount of R 233 million is required for
  2008/09, of which R 90 million from the Trading
  account augmentation has already been set aside.

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Energy Efficiency Code

• The Energy Code of conduct will, in essence,
  stand as a commitment between the Department of
  Public Works and its users to support specific
  objectives of the National Energy Efficiency
  Strategy as far as they relate to the buildings
  and facilities which are used by the DPW itself
  as well as those that are under its
  custodianship.
• Hence, in January 2008, the National Electricity
  Response Team comprising relevant national
  government departments, metropolitan
  municipalities and their agencies, Eskom and
  relevant regulatory bodies in order to align
  themselves with the goals set for improving
  energy efficiency and conserving power.
• To this end, the department of Public Works has
  established short, medium and long term
  interventions to be implemented with a major
  element of this intervention as the commitment of
  the Government immovable assets users and DPW
  lessors to implement initiatives that improves
  energy efficiency.

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Prioritisation of Capital and Maintenance

• The department annually embarks on prioritisation
  of maintenance and capital budgets with a view to
  compile an annual implementation programme.
• The department is currently developing policy and
  strategy for maintenance to facilitate
  development of maintenance planning for every
  fiscal year.
• Summarised below is the short-term prioritization
  criteria
• Statutory compliance with respect to the
  following legislation OHSA, PFMA, PPPFA, other
  Land, Environmental and Safety Legislation
  Security measures e.g. prevention of escapes and
  safe-keeping of firearms.
• MTEF Prioritisation has an added criteria viz.
  EPWP, Project consolidate, ASGISA, APEX

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Border Control Operational Co-ordination
Committee (BCOCC)

• The BCOCC portfolio aims to integrate,
  coordinate, plan and programme manage all
  physical infrastructure and ICT developments on
  land, air, sea and the rail ports of entry (the
  Border-line) on behalf of numerous departments
  (like SAPS, SARS, Home Affairs, Agriculture,
  Health and NIA).
• DPW has been mandated to chair the BCOCC
  Infrastructure Committee.
• Budget allocations for the 2008/2009 stand at
  R478 820 000. 2010 Infrastructure Projects (Ports
  of Entry) include Lebombo Port of Entry
  Redevelopment (RSA / Mozambique), Golela Port of
  Entry Redevelopment (RSA / Swaziland) and
  Skilpadshek Port of Entry Redevelopment (RSA /
  Botswana)

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Asset Register Enhancement

• A more co-coordinated approach is implemented to
  accelerate improvement of the asset register.
• The asset register enhancement project in
  2005/06, was put in place in order to improve
  data integrity of the departments asset
  register, service delivery and to facilitate
  asset and property management in the department.
• Phases 1 and 2 entail the collection, research
  and verification of property information as well
  as the capturing of new and missing verified
• Continuous identification of assets yet to be
  accounted for.
• The interoperability of Information Systems (PMIS
  and WCS)

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Condition Surveys

• The unit has embarked on the Condition Audits of
  the State owned properties that would establish
  the status quo for each building and facility has
  to be as well as all those buildings that are
  found, (via the status quo reports) to be in need
  of upgrade.
• Funds and manpower are being procured for
  investment to effect the required improvements.
• The completion of this exercise is expected to be
  31 March 2009.

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Valuations

• The department is also researching affordable
  system for property valuations that comply with
  accounting standards, in particular GAAP in a
  Trading account environment.
• Valuation standards and methodology which
  encompasses three valuation templates, namely
  depreciated replacement cost, income
  capitalisation and comparative sales method, have
  been submitted for approval by the National
  Treasury.
• This unit is on track with the completion of all
  residential portfolio and 30 remaining assets.
• For 2008/07, this is being done in-house as the
  budget allocation kicks off in the fiscal year
  2009/10 with R 30 million.

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Client Value Proposition (CVP)

• During 2007/08 DPW signed 90 of the MOUs with
  respective client departments
• Once the signing of all SLAs is complete, the
  Department will develop Client Value Propositions
  (CVPs) for all clients.
• CVPs will be constructed after finalisation of
  SLA where service delivery standards will be
  articulated and other products and services, that
  the department offers, will be clearly defined.
• It has to be noted however, that the capacity
  within KAM will need to be enhanced in order to
  handle the sophisticated expectations of the CVP.
  

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Budget Allocation 2008/9
Expenditure Item 2007/08 2008/09
Compensation of Employees (excluding EPWP) 731 567 781 482
Property Management - Accommodation Charge 276 965 286 180
Trading Entity transfer 476 000 528 000
Infrastructure (Capital Works) 863 044 1031 208
Municipal Rates 836 570 889 325
EPWP - Compensation of Employees 28 000 30 000
- Operating allocation 56 612 94 709
Transfer Payments to CIDB 49 891 41 891
Transfer payments to CBE 23 939 26 286
Transfer Payments to Agreement Board 7 613 8 070
Auxiliary Services 23 380 25 853
Administration (excluding EPWP) 385 883 398 398

Total 3 759 464 4 141 402
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Other Departments
CAPITAL Allocation 2008/09 Total
Agriculture 20,942,896.00
Arts Culture 187,582,787.00
Correctional Services 670,000,000.00
Defence 111,656,223.00
Home Affairs 37,628,846.00
Justice 513,311,811.00
Labour 46,000,000.00
Land Affairs 2,212,063.00
SAPS 650,000,000.00
  2,239,334,626.00
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BUDGET ALLOCATION SUMMARY
Programme Adjusted Medium Term Expenditure Estimate Medium Term Expenditure Estimate Medium Term Expenditure Estimate
R thousand Appropriation      
  2007/08 2008/09 2009/10 2010/11
1. Administration 647 360 687 317 767 116 843 181
2. Provision of Land 2 898 280 3 195 491 3 698 985 3 968 982
and Accommodation        
3. National Public Works 189 444 232 741 276 586 319 952
Programme        
4. Auxilliary and Associated 24 380 25 853 27 306 28 944
Services        
TOTAL 3 759 464 4 141 402 4 769 993 5 161 059
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PROGRAMME 1. ADMINISTRATION

• Over the MTEF period the budget of the
  Administration programme rises by an average of
  9.2 mainly as a result of the departments
  relocation costs as well as additional
  allocations for accommodation costs.

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PROGRAMME 2. PROVISION OF LAND AND ACCOMMODATION

• Over the MTEF period the budget of the programme
  rises by an average of 11 as a result of growth
  in the allocations for
• -Provincial Property Rates
• -Asset Management Projects
• -Augmentation of the PMTE

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PROGRAMME 3. NATIONAL PUBLIC WORKS PROGRAMME

• The budget of programme 3 grows by an average of
  19.1 over the MTEF period owing mainly to
  sizeable increases in the budget of the Expanded
  Public Works Programme, which grows by
• - R30 million 2008/09
• - R 50 million 2009/10
• - R 80 million 2010/11

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PROGRAMME 4.AUXILIARY AND ASSOCIATED SERVICES

• This programme sees a modest increase of 5.9
  mainly to cater for inflation. From
• - R25.9 million in 2008/09 to
• - R28.9 million in 2010/11

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ECONOMIC CLASSIFICATION
Economic Classification Adjusted Medium Term Expenditure Estimate Medium Term Expenditure Estimate Medium Term Expenditure Estimate
R thousand Appropriation      
  2007/08 2008/09 2009/10 2010/11
Current Payments 1 467 180 1 580 315 1 840 049 2 004 403
Transfers and Subsidies 1 412 142 1 512 706 1 705 970 1 848 190
Payments to Capital Assets 880 142 1 048 381 1 223 974 1 308 466
TOTAL 3 759 464 4 141 402 4 769 993 5 161 059
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ECONOMIC CLASSIFICATION

• In the 2008/09-2010/11 MTEF period the budget of
  the department sees the biggest growth in Capital
  expenditure in line with the broader government
  programme of the intensification of
  infrastructure development.
• Analysed by economic classification the budget
  grows as follows
• - 11 Current Payments
• - 9 Transfers and Subsidies
• - 14 Payments for Capital Assets

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MAJOR INFRASTRUCTURE ALLOCATIONS

• The following amounts have been allocated for
  both DPW and the Border Control Operational
  Co-ordinating Committee (BCOCCs) infrastructure
  budgets over the MTEF period
• R1 billion 2008/09
• R1.2 billion 2009/10
• R1.3 billion 2010/11
• BCOCC funds are utilised to improve border post
  facilities in part to facilitate preparations for
  the 2009 FIFA Confederations Cup and the 2010
  FIFA World Cup.

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MAJOR INFRASTRUCTURE ALLOCATIONS

• A number of assets will be acquired/upgraded for
  the Re kgabisa Tshwane project which aims to keep
  national government head offices within the inner
  city of Pretoria. These assets include the
• HG de Wit Building (R66 million)
• Old TPA Building for DFA (R250 million)
• Agrivaal Building for GCIS (R200 million)
• Around R1 billion will be spent on the
  upgrading, maintenance and improvement of
  immovable assets of the state.

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The End

• Thank you