13 june 2001

National Department of Public WorksRepublic of South Africa


1

13 June 2001

Presentation by the National Department Presentation by the National Department of Public Worksof Public Works

NATIONAL COUNCIL OF PROVINCESNATIONAL COUNCIL OF PROVINCES

NCOPNCOP

Mr A Sangqu

Mr M D Mokotedi

Ms L Bici



2

INDEX1. Budget Vote Information2. Programme 23. Organogram4. Source of Funds5. Project Status Codes6. Client Services7. Development Operations8. Property and Facilities Management9 State Property Holdings10. Leasing11. Municipal Expenses12. Information Services13. State Property Agency14. NPWP15. CBPWP16. CIDP



3

1.1 Total Vote : Per Programme

3 521 587Total for Vote 30

8 992Prog 4: Auxiliary and Associated Service

299 575Prog 3: National Public Works Programme

3 052 572Prog 2: Provision of Land and Accommodation

160 448Prog 1: Administration

2001/02

R’000

4 452 209

10 422

400 000

3 921 717

120 070

2000/01

R’000



4

1.2 Total Vote : Per Standard Item

3 521 587Total

1 126Miscellaneous

25 786Transfers

1 940 602Prof & Spes

1 135 754Land & Buildings

18 988Equipment

19 803Inventories

47 403Admin

332 125Personnel

2001/02

R’000

2000/01

R’000

4 452 209

5 565

18 831

3 206 154

833 000

20 282

19 803

42 811

305 763



5

2.1 Details of Programme 2

3 296 000Building Promotion Industry

40 000 000Workshops

159 501 739Unplanned

337 054 261Planned

536 556 000Maintenance

76 145 000

R3 052 572 000

Capital works (Public Works)

Provision of Land & Accommodation

2001/02

R’000

2000/01

R’000

4 900 000

50 000 000

175 200 000

340 952 000

566 152 000

1 013 915 000

R3 921 717 000

R615 997 000Total Accommodation R1 584 967 000



6

2.1 Details of Programme 2 (cont.)

R288 006 000Administration Programme 2

R2 148 583 000Total State Property Holdings

7 150 000Other

594 779 000Rates on State Properties

675 900 000Municipal Services

110 300 000Cleaning building and tending gardens

760 440 000Leasing

2001/02

R’000

2000/01

R’000

R166 000 000

R2 170 750 000

6 150 000

554 000 000

665 000 000

113 000 000

832 600 000



7

2.2 Complexity of Programme 2

R1 956 256 263Total source of funds for Capital Works and Planned Maintenance

924 153 002Voted to Client Departments

56 777 000Planned Maintenance

562 127 000Rollovers: Capital works

76 145 000

R337 054 261

Capital works

Planned maintenance

2001/02

R’000

2000/01

R’000

1 646 431 000

0

70 000 000

221 564 000

1 013 915 000

340 952 000



8

DIRECTOR GENERALMr T Sokutu

DEPUTY DIRECTOR-GENERAL

Mr MD Mokotedi

DEPUTY DIRECTOR-GENERALMs L Bici


Mr A Sangqu

CHIEFDIRECTOR

State PropertyHoldings and

AssetManagement

Ms GEMMazibuko

CHIEFDIRECTORProperty and

FacilitiesManagementMr R Samuel

CHIEFDIRECTOR

DevelopmentOperations

Mr G Damstra

CHIEFDIRECTOR

Client ServicesMr JL Vermaak

AREAMANAGER:

EAST COASTMr WM Ngcobo

AREAMANAGER:

WEST COASTMs LG

Ramncwana

AREAMANAGER:

INLANDMr TP Nchocho

CHIEF DIRECTORFinancial ManagementMr JP Bezuidenhout

CHIEF DIRECTORHuman Resources

ManagementMr J Moloto

CHIEF DIRECTORCBPWP

Mr B More

CHIEF DIRECTORConstruction Industry

Development ProgrammeMr S Hodgson



9

MINISTERMs S Sigcau

DIRECTOR-GENERALMr T Sokutu

DEPUTY MINISTERRev KM Zondi


Mr MD Mokotedi


Mr A Sangqu

DEPUTY DIRECTOR-GENERALMs L Bici



10

NATIONAL TOTAL (R ‘000) 1 956 256 263 100 %

ALLOCATION 1 956 256 263 100 % Capital Works 1 562 425 002 80 % Planned Maintenance 393 831 261 20 %

ROLL-OVER (included in above) 618 904 000 Capital Works 562 127 000 Planned Maintenance 56 777 000

4. Source of funds: National: Capital Works and Planned Maintenance



11

NATIONAL TOTAL (R ‘000) 1 562 425 002 562 127 000Department Allocation Roll-over (incl) Correctional Services 713 384 000 278 330 000 Justice 203 459 000 54 659 000 South African Police Services 195 678 000 39 950 000 Public Works 76 145 000 Nil Defence 70 826 000 19 272 000

Agriculture 36 965 000 22 851 000 Arts, Culture, Science and Tech 33 004 000 953 000 Education 2 000 000 2 000 000 Environmental Affairs 4 658 000 Nil Foreign Affairs 9 614 000 9 614 000 Home Affairs 55 548 000 38 131 000 Labour 65 603 000 36 390 000 Land Affairs 12 617 000 3 253 000 National Health 38 201 000 22 001 000 NIDS 29 723 000 29 723 000 Trade and Industry 15 000 000 5 000 000

4. Source of funds: National: Capital Works Allocation (Roll-over included)



12

NATIONAL TOTAL (R ‘000) 393 831 261 56 777 000Department Allocation Roll-over (incl) South African Police Services 120 979 085 17 944 048 Defence 79 287 560 Nil Correctional Services 66 009 555 Nil Public Works 57 555 335 33 318 125 Justice 36 607 776 5 514 827

Agriculture 10 083 284 Nil Arts, Culture, Science and Tech 9 072 018 Nil Environmental Affairs 337 443 Nil Finance 6 143 045 Nil Foreign Affairs 1 164 331 Nil Home Affairs 386 125 Nil Labour 3 191 162 Nil Land Affairs 39 302 Nil National Health 8 933 Nil State Expenditure 2 966 306 Nil

4. Source of funds: National: Planned Maintenance Allocation (Roll-over included)



13

4. Extract of the 5 Departments with the highest Budget Allocation

New Allocation R 1 000 298 002Roll over required R 562 127 000TOTAL R 1 562 425 002

Capital Works: NationalAll Departments: Allocation 2001/2002: Departments

Correctional Services46%

R 713,384,000(Roll Over required

R 278,330,000)

Other19%


R 169,916,000)

Justice13%


R 54,659,000)

Department of Defence

5%R 70,826,000

(Roll Over requiredR 19,272,000)

Public Works5%


R 0)South African Police Services

13%R 195,678,000




14

5. Extract of the 5 Departments with the highest Budget Allocation

New Allocation R 337 054 261Roll over required R 56 777 000TOTAL R 393 831 261

Planned Maintenance: NationalAll Departments: Allocation 2001/2002: Departments

Public Works15%


R 33,318,125)

Justice9%


R 5,514,827)

Other8%


R 0)

Correctional Services17%


R 0)

Department of Defence

20%R 79,287,560

(Roll Over requiredR 0)

South African Police Services

31%R 120,979,085




15

DEPARTMENT

TOTAL R1,943,471,264 R2,338,711,387 R66,138,411 3.4%

CORRECTIONAL SERVICES R779,399,555 R831,880,425 R25,075,271 3.2%

SOUTH AFRICAN POLICE SERVICES R316,904,085 R515,402,618 R11,035,099 3.5%

DEPARTMENT OF DEFENCE R150,342,560 R259,583,629 R13,838,823 9.2%

PUBLIC WORKS R126,551,335 R188,219,965 R3,723,283 2.9%

JUSTICE R238,657,776 R337,117,406 R5,917,881 2.5%

OTHER R331,615,953 R880,742,156 R6,548,054 2.0%

% Expenditure of allocated

amount

CAPITAL WORKS and PLANNED MAINTENANCE

2001/2002

Total AllocationAmount

Required

Actual expenditure up to 30 April 2001

5. Departmental expenditure to date for 2001/2002



16

6. Client ServicesOBJECTIVES

• To oversee the efficient facilitation and co-ordination of accommodation for D&O, CPJ and FA&P

• To ensure professional support to client services, internal service providers and national client departments with regard to town planning, investment analysis, building standards development and heritage asset management

• Interaction with clients and service providers

• Building programme management

• System development and subsequent updating

• To ensure the efficient and effective management of generic management tasks within the chief directorate: client services

• Conceptualisation and development of strategic initiatives



17

6. Client Services (cont.)

CHALLENGES:

Under Expenditure: Capital Works - R532 million for 2000/2001

Reasons for under-expenditure:

• Planning time frames on projects (12-18 months)

• Transfer of excessive funds by client departments

• Reprioritisation of building program by clients

• Discrepancy between estimates and tender amounts

• Contractual disputes (Litigation)

• Insufficient in-house expertise



18


Proactive steps taken to achieve high expenditure levels:

• High level of project management firms to assist Regional Managers

• All existing projects have been revisited

• Full allocation of available funds have been assigned to approved projects

• Targeting pre-selected bidders

• Training of Regional Project and Client Services Managers

• 49% of allocation under construction

• 20% of allocated funds in tender recommendation stage 2001/2002

• 31% of allocated funds in design phase



19


Rendering assistance in devolution of budgets

to clients and subsequent assistance with cost

recovery by virtue of agreements between

NDPW and clients



20

7. Development Operations

1. STRATEGIC OBJECTIVES

1.1 GLOBAL PURPOSE OF CHIEF DIRECTORATE:

To execute Planning Instructions, received from Client Services, for Capital and Planned Maintenance Projects within time, cost, quality and socio-economic objectives and to provide professional support, inter alia with reference to relevant legislation.



21

7. Development Operations (cont.)

1.2 PURPOSE OF THE DIRECTORATE: MAJOR PROJECTS

To execute Planning Instructions, received from Client Services, for Capital and Planned Maintenance Projects within time, cost, quality and social-economic objectives.

1.3 PURPOSE OF THE DIRECTORATE: PROFESSIONAL

ADVISORY SERVICES

To provide construction related professional advice to Project Managers in the Department, aimed at the creation of projects, which are technically acceptable, easy in their maintenance, of high quality, effective in their purpose and affordable in terms of space norms and cost limits.



22


1. 4 PURPOSE OF DIRECTORATE: RISK MANAGEMENT

To manage the risk to the Department (State), posed to, and by its facilities and properties by the provision of quality support, advisory and information services in terms of risk related issues pertaining mainly to Occupational Health and Safety aspects.



23


• To make full use of allocated budgets in order to convince

Treasury that more funds are required to address backlogs

• Shorter planning cycles

• Skills shortages in terms of project management

• To minimize changes in project briefs as result of Clients revising

their needs during planning phase

CHALLENGES AND PRO-ACTIVE STEPS TAKEN AT CURRENT TO ADDRESS THESE:



24


• Reduction of period of payment to Service Providers (Contractors

and Consultants)

• Increased economic involvement of black business in the

procurement muscle of the Department (Black Economic

Empowerment)

• Management of properties on problematic soil conditions (reduce

risk of loss of property)



25

8. Property and Facilities Management

Challenges

• Delivery of quality capital works on time and within budget

• Cumbersome tender procedures

• Procurement reform in line with the disbandment of the STB

• Correction perception amongst Senior Government officials that too much work is outsourced

to consultants

• Address backlog in the renewal of leases

• Backlog in maintenance. Facilities maintenance projects implemented with the aim of

addressing 25% of backlog within 3 years



26

8. Property and Facilities Management (cont.)

• Programme for accelerated project delivery implemented October 2000

• All regional offices have empowered through special approval obtained

from STB to assume the same powers as that of head office

• DPW to develop all tender procedures delegations, allocation of

powers, etc.

• Policy to be adopted in DPW to distinguish between management

consultants and professional service providers

• NB - Transfer of risk to professionals who take full responsibility

for design of bridges, roads, buildings, etc.

• Leasing project implemented

• RAMP projects initiated to the value of approximately R 500 million



27

8. Property and Facilities Management (cont.)

• Establishment of State Property Agency that operates effectively and

efficiently

• Disbandment of the STB and the formulation of tender procedures and

procurement practices that would meet the objectives of SPA/DPW

• Refinement of procedures, delegations, etc. to suit SPA model

• The continued use of consultants as a variable resource will be

continued into the SPA and the rate of appointment will depend on the

number of projects

• Adopt best practice asset management principles (key account

management)

• Roll-out facilities maintenance in SPA

• Targeted Procurement process are applied to ensure involvement of

ABE’s and APSP and are constantly monitored.



28

TOTAL 75 100% 125 100% 1,051,120,322R

To be appointed 42 23% 239,914,671R

APSP's / ABE's 37 48% 58 55% 583,011,370R

Established Enterprises

38 52% 25 22% 228,194,281R

SUB TOTAL: 1 1 100% 29 100% 342,695,005R


APSP's / ABE's 0 0% 19 76% 259,666,191R


1 100% 8 23% 77,484,051R

SUB TOTAL: 2 66 100% 61 100% 488,421,252R


APSP's / ABE's 31 52% 34 57% 278,250,681R


35 48% 15 27% 132,095,622R

SUB TOTAL: 3 8 100% 35 100% 220,004,064R


APSP's / ABE's 6 94% 5 20% 45,094,499R


2 6% 2 8% 18,614,608R

23,188,156R

21,126,119R

SU

MM

AR

Y

(33 P

RIS

ON

S)

GR

OU

P 1

:

EIG

HT

PR

ISO

NS

GR

OU

P 2

:

FO

UR

TE

EN

PR

ISO

NS

24,494,899R

-R

GR

OU

P 3

:

EL

EV

EN

PR

ISO

NS

20,172,156R

21,438,077R

1,265,921R

44,314,275R

24,494,899R

CONTRACTORS

90,247,251R

CONSULTANTS

-R

43,360,312R

46,886,939R

8. Apointment of Affirmable Business Enterprises



29

9. State Property Holdings and Asset Management

OBJECTIVES

• FORMULATION OF POLICY AND ASSET MANAGEMENT STRATEGIES

• COMPILATION OF FOREIGN ASSET REGISTER

• ESTABLISHMENT OF PROPERTY ECONOMY RESEARCH AND SERVICES

UNIT

• DISPOSAL OF SUPERFLUOUS STATE LAND AND FIXED PROPERTY

• REVIEW AND FORMULATE LEGISLATION WITH REGARD TO PROPERTY

RIGHTS



30

9. State Property Holdings and Asset Management (cont.)

CHALLENGES

• VERIFY AND IMPROVE DATA ENTEGRITY ON THE ASSET REGISTER

• FORMALISE AND IMPLEMENT A STRATEGIC ASSET MANAGEMENT FRAMEWORK

• ESTABLISH BENCHMARKS TO MEASURE THE PERFORMANCE OF THE STATE’S

PROPERTY PORTFOLIO

• EFFECTIVE AND EFFICIENT DISPOSAL OF SUPERFLUOUS STATE OWNED

PROPERTY



31

9. State Property Holdings and Asset Management (cont.)

• DEDICATED STAFF IDENTIFIED TO VERIFY AND UPDATE DATA ON THE ASSET REGISTER

• TENDER DOCUMENTATION HAS BEEN FINALISED FOR THE APPOINTMENT OF CONSULTANTS TO DEVELOP A STRATEGIC ASSET MANAGEMENT FRAMEWORK

• OFFICIALS HAVE BEEN APPOINTED TO COMMENCE WITH THE ESTABLISHMENT OF BENCHMARKS TO MEASURE THE PERFORMANCE OF THE STATE’S PROPERTY PORTFOLIO

• A DETAILED DISPOSAL PROGRAMME HAS BEEN COMPILED AND IMPLEMENTED

PRO-ACTIVE MEASURES



32

4801 Leases at 31 March 2001

Property types

Land

Offices

Quarters

Quantity Analysis

Value of Quantities

10. Leasing Portfolio Statistics



33

NATIONAL BUDGET ALLOCATION PER PROPERTY TYPE

QUARTERSR50,000,000

6%

OFFICESR701,116,717

93%

LAND R2,600,000

0%

10. Portfolio Statistics (cont.)



34

NATIONAL TOTAL (R ‘000) 753 716 717 100 %

Pretoria 283 420 223 39 % Johannesburg 105 431 694 14 % Cape Town 81 022 000 10 % Durban 75 955 000 10 % Port Elizabeth 59 125 000 7 % Nelspruit 41 028 000 5 % Bloemfontein 38 898 600 5 % Mmabatho 28 966 800 3 % Pietersburg 27 825 000 3 % Kimberley 12 044 400 1 %

10. Leasing Budget



35

JOHANNESBURGPRETORIANELSPRUITMMABATHOPIETERSBURGCAPE TOWNDURBANPORT ELIZABETHKIMBERLEYBLOEMFONTEIN

NATIONAL BUDGET DISTRIBUTIONREGIONS

J OHANNESBURG

R105,431,694

14%

PRETORIA

R283,420,223

38%

MMABATHO

R28,966,800

4%

PIETERSBURG

R27,825,000

4%

CAPE TOWN

R81,022,000

11%

DURBAN

R75,955,000

10%

PORT ELIZABETH

R59,125,000

8%

KIMBERLEY

R12,044,400

2%

BLOEMFONTEIN

R38,898,600

5%

NELSPRUIT

R41,028,000

5% TOTAL BUDGET: R753,716,717

10. Leasing Budget (cont.)



36

National distribution per property type

Land 321

Offices 1 963

Quarters 2 517

10. Properties Leased from the Private Sector



37

LAND (321)OFFICES (1,963)QUARTERS (2,517)

LAND QUARTERSOFFICES

NATIONAL DISTRIBUTION PER PROPERTY TYPE 31 MARCH 2001

NUMBER OF LEASESLAND (321)7%

OFFICES (1,963)

41%

QUARTERS (2,517)52%

TOTAL: 4,801

10. Properties Leased from the Private Sector (cont.)



38

0

50

100

150

200

250

300

350

400

450

NU

MB

ER

OF

LE

AS

ES

LEASE QUANTITY DISTRIBUTION BY PROPERTY TYPEREGIONS

LAND 20 83 95 14 10 12 6 2 77 2

OFFICES 230 259 287 261 117 158 123 98 282 148

QUARTERS 165 394 418 93 150 257 259 202 270 309

BLN CT DBN J HB KIM MPU NW NP PE PTA

10. Properties Leased from the Private Sector (cont.)



39

Achievements

Visited all properties within leasing portfolio

Uncovered over R20 million in fruitless

expenditure

Stopped monthly lease payments in access of R1

million

Built capacity within portfolio

Further objectives

Renewal and revising of leases

Continued building capacity

10. Leasing Project



40

11. Municipal Expenses1 April 2001 - 25 May 2002

No REGION

Municipal Expenses

Rates Expenses

Day-to-day Maintenance

ExpensesTOTAL

TOTAL R81,465,764 R6,777,569 R26,735,732 R114,979,066

1.0South African Police Service

R18,441,980 R1,414,021 R4,460,077 R24,316,078

2.0 Defence R18,676,960 R822,867 R10,822,849 R30,322,676

3.0 Justice R5,532,604 R330,869 R2,170,185 R8,033,659

4.0Correctional Services

R21,835,792 R92,382 R5,191,667 R27,119,840

5.0 Other R16,978,428 R4,117,429 R4,090,955 R25,186,812

1 April 2001 - 25 May 2001

Expenditure



41

12. Information Services

OBJECTIVES

• To provide information to serve as a critical tool for management decision-making through aligning of the systems to the business processes.

• To provide information services that enable the organisation to deliver service quickly and accurately.

• Integrate the current Information systems.

• Implement a new network that address the information flow needs of the department.

• Create a structure that is in line with the needs of the department.



42

12. Information Services (cont.)

KEY CHALLENGES

• HR has been asked to be more flexible on hiring practices, e.g. allowance of usage of constructors.

• A new, more realistic budget has been submitted to Finance.

CHALLENGE RESOLUTION STEPS

• Lack of resources

• Unintegrated systems



43

13. Role of DPW and State Property Agency

National Department of Public Works

State Property

Agency (SPA)

Mandate

– To regulate the build environment

– To transform the construction industry - CIDB

– To define the policy framework that shapes the use of government owned properties

– To address rural poverty through projects related to the build environment

– To facilitate the delivery of government service through delivery of the asset and accommodation requirements in accordance with the prescribed legal frameworks



44

13.Role of DPW and State Property AgencyNational Department

of Public WorksState Property

Agency (SPA)

Value

proposition

– Ensure that the build environment is effectively regulated to the benefit of the South African public

– Ensure that equity and empowerment occur in the construction industry

– Provide a clear and transparent environment in which land issues are redressed

– Leverage governments influence to impact the lives of the rural poor

– Ensure that government is meeting its accommodation requirements in a cost effective manner while addressing social objective

– Streamline service delivery by reducing the bureaucracy and leveraging best-of-breed skills and systems

– Provide value-added advisory services to ensure that accommodations improve government’s service delivery



45

13. SPA will have three pillars of excellence supported by three organisational attributes

Pillars of excellence

Supporting foundation

Client focusedClient focused

Vendor management and commercial capabilitiesVendor management and commercial capabilities

Information rich, strong financial controlsInformation rich, strong financial controls

Assetmanagement

Assetmanagement

Projectmanagement

Projectmanagement

Lease supplymanagementLease supplymanagement

State Property AgencyState Property Agency



46

13. Overall SPA Charter ILLUSTRATIVE

The SPA will provide the Government of South Africa with its core

facilities and accommodation needs through

Cost-effective, value-adding management and maintenance of its

owned portfolio

Structuring of leases with private sector owners

Construction of on-spec, on-time, on budget new facilities

Maximise the value of the property portfolio and minimise risk to

the State

It will meet its mandate with a customer focused, information rich,

commercially capable organisation that makes effective use of private

sector capabilities



47

13. Business Model

Transversal policies for use of accommodationCUSTODIAN OF STATE’S FIXED ASSETS “Landlord Role”

Option Evaluation “single interface for need”

Commercial Lease ManagementCommercial Lease Brokering

Commercial Lease Brokering

Construction - planning / tendering / management(includes APOPS / PPP)

Maintenance and Refurbishment - planning/tendering / managementRates and Taxes

Asset Register (and Balance sheet) legal requirement

Acquisition and disposal – asset management SPA

Commercial Lease Management

Municipal Services Management (water / electr. / refuse) SPA

CLIENT DEPARTMENT RESPONSIBILITIES

Transversal policies for use of accommodation

MONITORING AND BENCHMARKING

Compliance with building and maintenancestandards as owners Compliance with transversal policies

PROMOTOR PROMOTER OF CONSTRUCTION INDUSTRY PROMOTER OF PUBLIC WORKS PROGRAM



48

• Implementation• Implementation• Implementation

• Detail

• Transition strategy concept

13. High-level plan over next 12-18 months leading to successful creation of an effective and efficient SPA

•SPA design

•Building

momentum

•Improve DPW

•June 2001 •October 2001 •April 2002 •October 2002 •April 2003

•SPA Launch• Prepare

transition• Legislative process

• Develop model

• PreP-pare

• Quick wins

• Internal and external communication

• Refine and syndicate •SPA

•Act

• Design new approach, processes



49

14. NPWP Total Budget

AllocationBudgetR million

Construction I ndustry DevelopmentProgramme

23, 651

ECDP Regional Offi ces 4, 435

Community Based Public Works Programme 378, 968

Total 407, 054



50

14. CD:CIDP Business Plan2001 - 2002

“Taking forward the process of construction industry development

in South Africa”



51

14. Ambit of National Goals

• 5 years to build framework for C.I. Development based on an ongoing analysis of South African industry, Government objectives, international trends and stakeholder engagement.

ConstructionI ndustryDevelopment

South Africa’s Framework:“Reconstruction & DevelopmentProgramme”



52

14. Purpose of the CD Unit

To promote and support the• Growth, Development and Transformation of the construction

industry

for

• Enhanced infrastructure delivery in South Africa

Small specialised unit



53

16. CIDP - Structure, Purpose, Issues

Dir ect orBusiness

Development

D ir ect orPublic S ect or

Capacit y

D ir ect orT echnology

E nhancement

D ir ect orE mer ging

Cont r act orDevelopment

Chief D ir ect orCI DP

Growth, investment

Public sectordeliverycapacity

Performanceimprovement

Emerging contractordevelopment

Support to overcome constraints

Best practice Procurement reform Targeted Procurement

Improved paymentImproved skills

Public sectorspending/ Private sectorinvestment



54

16. Develop Policy/ Programmes/ Legislation/ Institutions/

• Develop Programmes - eg

- Investment, improved public sector payment

- Rollout of Targeted Procurement & best

practice to national, provincial & local authorities

- Emerging Contractor Development - staff in all

regional offices

• Develop Legislation/ Institutions - eg

- CIDB

- Professional Councils + overarching CBE

Binding public and private sector endeavor



55

16. Achievements 2000/2001

• Legislation to establish the CIDB.

• Legislation to establish the 6 professions and the Council for the Built Environment

• Emerging Contractor Development:

- over 2500 contractors registered

- increased women from 150 - 250

- launch of major training programme

• A strategy to improve delayed payment in Public Works national and provincial

• Regional Conference on Developing the Construction Industries of SADC (April 01)



56

16. Current Challenges

• Operationalise Legislation to establish

CIDB, CBE & Professions + agenda.

• Manage Minister’s legislative responsibility.

• Promote Targets (KPI’s) for growth & improvement & strategies to attain these.

• Intensify/ roll-out APP & ECDP Support Strategies to promote black enterprises + women and develop capacity through training.

• Public Sector Capacity to manage delivery with particular focus on delayed payment.



57

16. New Laws - Extra Responsibility

Council for the BuiltEnvironment Act MINISTER

ArchitecturalProfessionAct

EngineeringProfessionAct

Property ValuersProfession Act

Quantity SurveyingProfession Act

LandscapeArchitecturalProfession Act

Project/ ConstructionManagement Act

CIDB



58

16. Current Challenges

• Operationalise Legislation to establish

CIDB, CBE & Professions + agenda.

• Manage Minister’s legislative responsibility.

• Promote Targets (KPI’s) for growth & improvement & strategies to attain these.

• Intensify/ roll-out APP & ECDP Support Strategies to promote black enterprises + women and develop capacity through training.

• Public Sector Capacity to manage delivery with particular focus on delayed payment.



59

16. CIDP Total Budget

AllocationBudgetR million

Personnel and administration -Head Offi ce and Regional Offi ces (ECDP)

3, 86

Projects 6, 2

Transfers to new institutions

- Construction I ndustry Development Board

- Council f or the Built Environment11, 58 2, 0

Total 23, 65



60

16. CIDP Project Expenditure

CI DB is operationalEstimateR million

CI DB operational - Board and CEOappointedReport on the State of the I ndustryEstablish Key perf ormance indicators (KPI s)and targets f or industry perf ormanceimprovement.

Total 1.25



61


Sustainable growth of theconstruction economy

EstimateR million

Study on public sector spending andprivate sector investment.

Establish Key Perf ormance I ndicators(KPI s) and

Targets f or growth

Total 0.45



62


Improved public sectorprocurement management

EstimateR million

Convene public sector procurement workinggroup and Rollout targeted procurement Revise TPP documents in line with PPPFA Align DPW Contracts with best practice Aids awareness strategy on DPW projects

Total 0.7



63


Appoint 6 professional councils &implement legislation

EstimateR million

Support business planning and appointmentof a CEO f or the Construction & ProjectManagement Council and CBEPrepare a publication on the evolution of theprofessions in S. A. under the impact ofgovernment policies and history.

Total 1.0



64


Expand ECDP to ensure greaterpublic sector impact.

EstimateR million

Promote shared approaches through apublic sector working group.

3 public sector agencies adopt ECDPmethodology to increase work opportunity

Pilot Sakhasonke "best practice" clubsestablished in two regions f or roll-out

Survey on access to fi nance plus improveddata base management

Total 0.7



65


Improved participation of womenon DPW major contracts

EstimateR million

Concept document and targeting strategy ECDP support (mentoring and finance) to

women on major projects Roll-out plan

Total 0.25



66


Improved eff ectiveness of ECDP- particularly training

EstimateR million

CET Training to 120 contractors Tendering workshops in all provinces

reach over 1000 contractors 15 plumbers and 15 electricians

accredited

Total 0.75



67


Delayed payment - reduction ofproblem 20% National, 10% Selected provinces

EstimateR million

Establish status quo Establish provincial industry/ public

sector monitoring committees Establish strategy and measuring

mechanism

Total 0.35



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Best Practice Guidelines onlabour based construction

EstimateR million

Establish public/ private sector f ocusgroup

Develop modularised approach f ordiff erent users

Finalise guidelines f or distribution

Total 0.45



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15. Community Based Public Works Programme

RECENT HISTORY

In the 2000 calendar year, the CBPWP implemented a R1 billion worth

of projects. This massive budget had been accumulated through roll-

overs experienced in two previous financial years. However, the

programme was able to spend all the funds by the 31 March 2001.



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15. Community Based Public Works Programme (cont.)

The final close out information for 1998/1999 is as follows:

The total budget expended in this year was R271 000 million.

The total amount spent per Province excluding National Management costs:

Province Amount Spent District Council projects

• Eastern Cape R88 761 274 150

• Kwa-Zulu Natal R91 878 700 115

• Northern Province R65 999 152 72



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Projects implemented:

• 38 Labour saving

• 85 Social cohesion

• 91 Improved Access

• 109 Directly productive

• 14 Environmental protection

• A total of 29 194 people were temporary employed and 4154 sustainable jobs were created.

• Of the total 29 194 people employed 10 981 (38%) were women, 11 897 (41%) were youth and 268 (1%) were disabled.



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The total budget expended in 1999/2000 was R368 178 million.

The total amount spent per Province:



• Eastern Cape R 126 060 861 79

• Kwa-Zulu Natal R 82 912 910 65

• Mpumalanga R 61 921 324 48



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• Free State R 13 027 072 22

• North west R 13 044 921 25

• Northern Cape R 10 000 000 road project

• Gauteng R 4 427 000

• Western Cape R 1 400 000

• Northern Province R 21 946 830 19



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In total 258 District Council projects were implemented.

Projects implemented:

• 23 Labour saving

• 67 Social cohesion

• 96 Improved Access

• 58 Directly productive and

• 14 Environmental protection



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A total of 14 825 people were temporary employed and 618

sustainable jobs were created.

• 7 442 (50%) women

• 7 406 (50%) youth

• 251 (2%) disabled

A total of 14 825 people were employed



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The total budget expended in 2000/2001 was 360 365 million.

The total amount spent per Province:


• Eastern Cape were R 118 763

• Kwa-Zulu Natal R 84 494

• Mpumalanga R 15 992

• Free State R 7 949



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Amount Spent

• North West R11 845

• Northern Cape R0 allocated

• Gauteng R0 allocated

• Western Cape R0 allocated

• Northern Province R85 390

• Special projects R16 014

• Programme management fees R23 283 spent



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A total of R31 381 people were temporary employed and 1553

sustainable jobs were created.

People employed:

• 13 571 (43%) women

• 13 895 (44%) youth

• 637 (2%) disabled

A total of 31 381 people employed



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• Projects R 374 386

• Personnel expenditure R 3 342

• Administrative expenditure R 1 141

• Inventories R 9

• Equipment R 90

Total R 378 968

BUDGET IN 2001/2002



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• Eastern Cape R 111 812 094• Free state R 9 293 240• KwaZulu Natal R 99 814 302• Mpumalanga R 31 066 273• Northern Province R 79 220 603• North West R 11 803 105• Gauteng Province R 900 000• Western Cape R 3 222 222• Northern Cape R 1 500 000• National R 25 368 000• TOTAL R 374 000 000

PROVINCIAL INVESTMENTS IN IN 2001/2002



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• Programme with 27 district municipalities

Easten Cape

Free State

Kwa-Zulu Natal

Mpumalanga

Northern Province

North West

• Strategic projects in partnerships with key stakeholders and

implemented by IDT

2001/2002 PROGRAMME COMPONENTS



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• Community Production Centres – for provision of the productive

infrastructure upgrading components in co-operation with the

Department of Agriculture.

• Multi-purpose centres – one-stop shops for rural service delivery

• Clean and Green programme – a community based waste

management programme, in partnership with the South African

Breweries (SAB)

STRATEGIC PROJECTS



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• HIV/AIDS infrastructure support programme: to offset the

devastation caused by HIV/AIDS e.g. the upgrading of local

clinics which are in dire need of repair

• Youth Working for Environment Accessibility – training and

employing youth to make public properties accessible to the

disabled

• KZN Cholera Response Programme – to respond to cholera

outbreak in KZN, in partnership with KZN Department of Health

STRATEGIC PROJECTS



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• Sustainable productive assets through linkages with the

Integrated Sustainable Rural Development Strategy

• Rural roads

• Capacitation of new district municipalities

PRIORITIES IN 2001/2002



85


• 40 000 Temporary job opportunities

• 3 000 sustainable jobs

• Minimum 50% women employed

• Minimum 15% youth employed

• Between 1% and 3% disabled employed

• 400 Sustainable community assets

TARGETS FOR 2001/2002



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Being on the Medium Term Expenditure Framework (MTEF) has

enabled the CBPWP to do the following:

FORWARD PLANNING

• Sign allocation agreements with district municipalities up to the 2003/2004 financial year

• Enter capacity enhancement agreements with the European Union and the Independent Development Trust to establish a strong in-house management team

• Look for donor funding to augment MTEF project funds

13 june 2001

Documents