29 MAY 2012

HEARING ON FOURTH QUARTER CONDITIONAL GRANT

School Infrastructure Backlog Grant

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ASIDI BACKGROUND

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SCHEDULE 7: SCHOOL INFRASTRUCTURE BACKLOGS GRANT

• The purpose of the grant is – for the eradication of entire inappropriate schools;– provision of basic level of water, sanitation and

electricity to schools.

• The grant is also referred to as the ASIDI (Accelerated School Infrastructure Delivery Initiative)

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ASIDI Targets

The targets are as follows:

Infrastructure Category Baseline 2011/2012 2012/2013 2013/2014 Inappropriate Structures 496 50 100 346 Water 1257 188 1069 Electrification 878 164 714 Sanitation 868 354 514 Specialist Classrooms 50

MTEF ALLOCATIONS2011/12 R 7002012/13 R2 3152013/14 R5 189TOTAL R8 204

The budget allocation for the ASIDI programme over the MTEF period is R8.2 billion and allocated as indicated in the table below:

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ASIDI 2011/12 FINANCIAL BUDGET SPLIT

• In 2011/12 financial year the budget split was as follows– R420mil was allocated towards the eradication of 50

entire mud schools;– R280mil was allocated towards provision of water,

sanitation and electricity to schools

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ASIDI 2011/12 TARGETS

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Inappropriate Electricity Sanitation Water Province Eastern Cape 50 104 55 84Free State 0 26 13 32Gauteng 0 2 7 0KwaZulu Natal 0 0 83 10Limpopo 0 4 40 38Mpumalanga 0 47 0 0North West 0 0 0 0Northern Cape 0 0 16 6Western Cape 0 7 21 3Total 50 190 235 173

The following work was implemented during the 2011/12 financial year:

ASIDI IMPLEMENTING AGENTS 2011/12

• DBSA is the appointed Implementing Agent for the 50 inappropriate schools in the Eastern Cape

• However only 49 schools are being implemented, 1 school is being implemented by EC DoE and has therefore been removed from the ASIDI programme,

• Mvula Trust is appointed to implement water and sanitation projects in Limpopo and Eastern Cape

• Eskom is the appointed Implementing Agent for electrification of schools in Eastern Cape, Mpumalanga and Limpopo Provinces.

• Free State, Gauteng, KZN and Western Cape were the Implementing Agents in 2011/12 financial year.

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ASIDI ACTUAL FINANCIAL COMMITTMENTS 2011/12

• The actual commitments made in 2011/12 financial year– R841mil was committed towards the eradication of

school infrastructure (including professional fees, etc.);– R217.3mil was committed towards provision of water,

sanitation and electricity to schools

• Therefore approximately R1.058bil was committed in contracts for the ASIDI implementation during the 2011/12 financial year.

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2011/12 EXPENDITURE

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TOTAL EXPENDITURE AT 31 MARCH 2012

Description Allocation per project

Expenditure as at 31 March

2012

Deviation % Spent

R’000 R’000 R’000

Inappropriate Structures

420 000 48 353 371 647 11.5%

Sanitation 138 252 7 918 130 334 5.7%

Water 38 826 1 116 37 710 2.9%

Electricity 65 573 42 65 531 0.1%

Other 37 349 2 254 35 095 6.0%

TOTAL 700 000 59 683 640 317 8.5%

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TOTAL EXPENDITURE AS AT 23 MAY 2012

Description Allocation per

project

Expenditure as at 31

March 2012

Expenditure as at 23

May 2012

Total Expenditure

at 23 May 2012

% Spent

R’000 R’000 R’000 R’000

Inappropriate Structures

420 000 48 353 0 48 353 11.5%

Sanitation 138 252 7 918 22 097 30 015 21.7%

Water 38 826 1 116 13 969 15 085 38.9%

Electricity 65 573 42 6 378 6 420 9.8%

Other 37 349 2 254 0 2 254 6.0%

TOTAL 700 000 59 683 42 444 102 127 14.6%

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ASIDI CHALLENGES IN 2011/12

• Progress has been delayed on the construction of the 49 schools due to the following challenges:– Procurement of Implementing Agents took longer than anticipated. – Negotiations with DBSA started in April 2011. – There were delays in the finalisation of the MOA with the DBSA as the bank

had to receive approval from the Minister of Finance before the MOA could be concluded.

– Subsequently, DBE signed the MOA on the 13th June 2011 and DBSA only signed on the 06th July 2011. The DBSA submitted the implementation Plan on 03 August 2011

– DBSA planned to use PSPs to undertake scoping work which was crucial for determining the extent of scope of work.

– This process for procurement of PSP to undertake the work had to be rescinded end of August after issues of conflict of interest were discovered between the companies bidding for the PSU and Project scoping.

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ASIDI CHALLENGES IN 2011/12

– DBSA then started another process to appoint PSP’s for scoping, planning and detailed designs which was concluded on 15 September 2011 and resulted in a delay in the finalisation of scope before going out on tender in October 2011.

– A strategy adopted for procurement of contractors was to pre-Qualify contractors initially and appoint from a pool of pre-qualified contractors.

– The process halted due to a dispute by contractors from the Eastern Cape who requested consideration of Grade 6GB instead of Grade 7GB.

– Procurement of contractors resumed on the 25th October 2011 and was concluded on the 04th and 29th November for 28 of 50 schools and 22 of 50 schools respectively.

– Tenders received were based on the generic scope of work due to the delay in the development of project scoping per school.

– As a result the tendered amounts for the first 28 of 50 and 22 of 50 schools were R711 044 966.48 and R595 167 614.37 respectively. This resulted in a prolonged adjudication process and appointment of successful tenderers.

– Sites were handed over to the contractors on the 12th and 13th January 2012 for a contraction amount of approximately R675mil (excluding professional fees, etc).

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Progress Report

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ASIDI 2011/12 INAPPROPRIATE SCHOOLS PROGRESS (END APRIL):DBSA

Contractor Contract No No. Sch Sch ID School Name Building Progress Building Progress (Mean)

Armstrong RFP 29/2011-E 12 Schools

1 Qaka JPS 17.40%

11.60%

2 Ntsonyini JSS 12.70%4 Ngidini SPS 11.10%10 Ndluzula JPS 2.40%11 Nomandla SPS 16.80%15 Gcinizizwe SPS 32.10%20 Maqolo SPS 9.70%24 Jonguxolo JSS 24.90%27 Vuyani SPS 4.80%30 Sidanda SPS 7.00%36 Tembeni SPS 0.60%38 Sizwe JPS 0.60%

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ASIDI 2011/12 INAPPROPRIATE SCHOOLS PROGRESS:DBSA

Contractor Contract No No. Sch Sch ID School Name Building Progress

Building Progress (Mean)

Keren Kula Construction RFP 31/2011-I 9 Schools

5 Mpatiswa SPS 26.00%

14.10%

7 Zingisile SPS 12.30%14 Goso JPS 5.90%18 Eludikidi SPS 9.40%

25 Upper Mbange SPS 19.20%

32 Welese JSS 20.10%33 Sizane JSS 14.70%46 Nginza SPS 10.00%

50 Lower Mpako SPS 9.50%

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ASIDI 2011/12 INAPPROPRIATE SCHOOLS PROGRESS:DBSA

Contractor Contract No No. Sch Sch ID School Name Building Progress

Building Progress (Mean)

SSI Mafuri JV RFP 29/2011-F1 6 Schools

12 Manzabila SPS 17.30%

11.00%

13 Gqweza SPS 16.20%

28 Tshantshala SPS 6.00%

29 Mseleni SPS 10.30%31 Mceteni SPS 5.90%

37 Maphindela SPS 10.40%

TBP RFP 29/2011-F2 6 Schools

16 Gungubele SPS 13.50%

9.20%

21 Mahahane SPS 4.20%22 Madwaleni SPS 10.80%23 Ludeke SPS 3.80%34 Sompa SPS 9.50%35 Nkonkoni SPS 13.40%

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ASIDI 2011/12 INAPPROPRIATE SCHOOLS PROGRESS:DBSA

Contractor Contract No No. Sch Sch ID School Name Building Progress

Building Progress (Mean)

Trencon Construction RFP 31/2011-G 5 Schools

3 Notsolo SPS 18.60%

17.40%

6 Mqokolweni SPS 13.60%

9 Ndlovayiphathwa SPS 15.90%

19 Mdavuza SPS 19.10%26 Dumile SPS 19.60%

     Alfdav Construction RFP

31/2011-F x1 45 Vulindlela JPS 18.60%

Base Major Construction RFP 31/2011-H x1 40 Mazama SPS 17.50%

Cecils RFP 29/2011-C x1 48 Kwezilethu JPS 30.60%

Inyameko / Vukukahnye JV RFP 31/2011-B x1 17 Dikiso JSS 4.10%

Inyameko Deck Steel JV RFP 31/2011-C x1 41 Thabatha SPS 28.20%

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ASIDI 2011/12 INAPPROPRIATE SCHOOLS PROGRESS:DBSA

Contractor Contract No No. Sch Sch ID School Name Building Progress

Building Progress (Mean)

Ishvuyo Building Construction RFP 31/2011-E x1 44 Dakhile JSS 35.70%

Leungo Construction RFP 31/2011-D x1 43 Dumakude JPS 10.50%

Marnolda RFP 29/2011-B x1 47 Kwenxura SPS 22.30%Mauga Projects cc RFP 31/2011-A x1 8 Nogaya SPS 17.40%Setheo RFP 29/2011-A x1 39 Mandlobe SPS 15.80%Sizisa Ukhanyo RFP 29/2011-D x1 49 Nobantu JPS 28.50%

14.37%

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ASIDI 2011/12 PROGRESS ANALYSIS: INAPPROPRIATE SCHOOLS

• The programme is behind schedule on all of the schools• Contractors are behind schedule by between 16 and 77 days based on their baseline

programmes• Progress at 16 of the schools is between 0.6% and 10%• Progress at 24 of the schools is between 10.1% and 20%• Progress at 6 of the schools is between 20.1% and 30%• Progress at 3 of the schools is over 30%• Notices have been issued to contractors and recovery plans produced for the 3

contractors (SSI Mafuri JV, TBP and Armstrong).• DBSA is monitoring implementation of the plans and shall advice on subsequent steps

thereafter.• DBSA has begun the process to terminate Inyameko Vukukhanye contract• Availability of skilled labourers has proven to be a challenge.• The programme is successfully contributing towards socio-economic uplifting of the

locals as many jobs are being created.• Availability of material suppliers has been identified as a risk factor .

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ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : MVULA TRUST

PROGRESS IN LIMPOPO

• Thirty-two (32) of the 40 sanitation projects have achieved practical completion.

• Thirty-two (32) of the 38 water projects have been completed.

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PROGRESS IN EASTERN CAPE

ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : MVULA TRUST

• Forty-nine (49) of the 55 sanitation projects have achieved practical completion.

• Eighty-two of the 84 schools have been provided with Rain Water Harvesting tanks and related infrastructure. Twelve (12) of the 38 projects have been connected to municipal bulk supply. None on the 49 projects identified for borehole connections are completed yet.

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ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : KZN

• KZN is the Implementing Agent. There were 88 schools identified in this Programme, after assessments 5 schools were taken out after it was found that they were already addressed.

• Out the 83 2011/2012 projects 28 schools have been completed, 17 projects are in progress and are between 60 and 90%.

• There are 38 projects that were handed over in March and April 2012, and are between 1% and 20%

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ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : WC

• Western Cape is the Appointed Implementing Agent.• Project scope entailed upgrading of water, ablution

facilities & electrical and sanitation facilities. The targets were 7 schools for electrification, 21 schools for Sanitation and upgrading of water in 3 schools.

• All projects have achieved final completion.

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ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : GAUTENG

• Gauteng DoE is the appointed Implementing Agent.• Seven (7) sanitation projects were implemented and two

(2) electrification projects. All nine projects have achieved practical completion.

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ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : FREE STATE

• Free State DoE is the Implementing Agent.• Scope in implementation is 32 Water projects; 13

Sanitation projects and 26 Electrification projects.• Eleven (11) Water projects; 11 Sanitation projects and 22

Electrification projects have achieved practical completion.

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ASIDI 2011/12 WATER AND SANITATION SCHOOLS PROGRESS : NORTHERN CAPE

• Northern Cape is the Implementing Agent.• Scope in implementation is 6 Water projects and 16

Sanitation projects. All schools are in construction.

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ASIDI 2011/12 PROGRESS ANALYSIS: WATER AND SANITATION

• Most of the projects were completed by end of Q4.• Delays in Limpopo were mainly due to work stoppage due to non

payment which was as a result of scope change process.• Payments have been processed and anticipated completion date is

end May• Delays in EC were generally due to a delayed manufacturing of

some of the materials (e.g. Urinals)• Only one supplier is manufacturing the specified quality and

therefore had to provide large quantities of orders.• EC MT started late with the process of investigations into

alternative water source other than rain water harvesting.

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ASIDI 2011/12 ELECTRIFICATION OF SCHOOLS PROGRESS : ESKOM

ProvinceTotal Planned Connections

March Planned Connections

March Actual Connections

YTD Planned Connections

YTD Actual Connections

Eastern Cape 104 17 5 53 18Mpumalanga 18 0 0 0 0Limpopo 3 3 0 3 0Grand Total 125 20 5 56 18

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ASIDI 2011/12 PROGRESS ANALYSIS: ELECTRIFICATION

• This sub-programme is behind schedule and ESKOM is planning to complete the 125 schools by September 2012.

• Main reason sited to this is the late conclusion of the MOA and Advance payments

The following risks have been identified in the Eastern Cape:• Bush Clearing Teams - There is a shortage of registered bush

clearing teams within Eskom in the Eastern Cape Province. • Indigenous Forest -Survey to Gwexintaba SPS (500284) is

hampered by the indigenous forest. A line through the forest would mean cutting down of trees and would also cause a concern in maintenance of the line.

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2012/13 PLANS

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ASIDI 2012/13 PLANS: PROGRESS : MASTER LIST

  Inappropriate Electricity Sanitation Water

Province No of

2012/13 No of

2012/13 No of

2012/13 No of

2012/13 Schools Schools Schools Schools

Eastern Cape 424 50 317 213 345 290 619 535

Free State 30 20 129 103 26 12 99 61Gauteng 2 2 2 0 21 14 0 0

KwaZulu Natal 3 3 116 116 139 56 229 219

Limpopo 3 3 141 137 77 37 121 83

Mpumalanga 5 5 129 82 8 8 17 17

North West 2 2 41 41 33 33 13 13

Northern Cape 1 1 0 0 19 3 6 0

Western Cape 22 14 7 0 21 0 3 0

Total 492 100 882 692 689 453 1 107 928

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ASIDI 2012/13 PLANS

• The scope includes 100 inappropriate, 692 electrification, 453 sanitation, 928 water and 50 Specialist class rooms projects

• Scoping process for inappropriate schools, water and sanitation is completed and cost estimations have been made. Scoping for specialist class rooms is in progress.

• COEGA, IDT AND DPWEC have been appointed for the implementation of the 50 schools in the EC.

• Adverts are out in the Tender Bulletin (04th May) for IAs, BEPs and Contractors for implementation of the ASIDI programme in the 2012/13 to 2013/14 financial years.

• Briefing sessions were held from the 21 May 2012 to 23 May 2012

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THANK YOU

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