ENERGY & WATER SECTOR EDUCATION AND TRAINING AUTHORITY

byTebogo Mmotla

Chief Operations Officer14 November 2012

Presentation Outline

Representation in the Accounting AuthorityLegal Mandate and Legislative Framework EWSETA (vision, mission, values and scope of coverage)Strategic Focus areasCurrent projects for 2012/13AchievementsMajor DriversBudget AllocationChallengesConclusion

The EWSETA ConstitutionBackground And Purpose

1. The Skills Development Act, 1998 (Act 97 of 1998) makes provision for the establishment of SETAs for each national economic sector. The Minister determined the discrete Sector of the Energy and Water Sector Education and Training Authority (“EWSETA”) in terms of section 9 of the Act.

2. This Constitution was drawn up in accordance with the requirements of section 13,as further provided for in terms of section 9 (1) of the Act, and provides an institutional framework for the SETA to develop and implement national, sectoral and work – place strategies, in order to develop and improve the skills of the South African workforce.

3. The SETA pursues the development of a skilled workforce in order to provide an improved service to the people of South Africa. The SETA is inspired by the vision of an appropriately skilled workforce, who is empowered to render quality services, which are comparable with world – class standards.

4. Executive Authority1. The Executive Authority responsible for the SETA must exercise its power and responsibilities to ensure that the implementation of the

objectives and execution of the functions of the SETA comply with the Act, NSDS and the policies of the Executive Authority and government.

2. In executing its accountability and responsibility functions, the Executive Authority must exercise its powers as provided for in terms of the Act, the Constitution, the PFMA and other relevant legislation.

5. Representation on the Accounting Authority

The Accounting Authority is composed of the following organisations:

1. Trade Unions: Trade unions whose constituents carry their business in the sector, including but not limited to National Union of Metal Workers of South Africa, National Union of Mine Workers, Independent Municipal and Allied Trade Union, South African Municipal Workers and Union Solidarity Trade Union.

2. Employer Organisations: Employers and employer organisations whose main business activities fall within the standard industrial categories as outlined in the scope of coverage in Schedule 1 of this Constitution, including but not limited to ESKOM, South African Association of Water Utilities (SAAWU),SALGA, National Energy Regulator of South Africa (NERSA), THE MVULA TRUST, etc.

3. Relevant Government Departments: Relevant government departments whose main activities fall within the standard industrial classification categories as outlined in Schedule 1 of this Constitution, including but not limited to the Department of Water Affairs, Department of Human Settlements, Department of Energy and Department of Public Enterprise

Number of Representatives in the Accounting Authority

a) Organised Employers and relevant government departmentsi. Eskom who may nominate one (1) Member;ii. SAAWU, who may nominate one (1) Member;iii. SALGA, who may nominate one (1) Member;iv. Department of Water Affairs, who may nominate one (1) Member;v. Department of Energy who may nominate one (1) Member; andvi. Department of Public Enterprise, who may nominate one (1) Member

b) Organised Labouri. National Union of Mineworkers (“NUM”), who may nominate two (2) Members;ii. National Union of Metalworkers South Africa (“NUMSA”), who may nominate One (1)

Member;iii. Independent Municipal and Allied Trade Union (“IMATU”), who may nominate one (1)

Member;iv. South African Municipal Workers Union (“SAMWU”), who may nominate one (1) Member ;

andv. Solidarity Trade Union (“Solidarity”), who may nominate one (1) Member

The general objectives of the SETA (as per constitution) through the skills development levy, increase the levels of investment in skills development and improve returns on such investment;

support improved performance and productivity in the work-places in the Sector, as well as the competitiveness of employers;

support disadvantaged by unfair discrimination; the improvement of the employment prospects of persons previously in liaison with employment services, assist work seekers to gain access to work experience;

in liaison with employment services, assist retrenched workers to re-enter the labour market;

The general objectives of the SETA (as per constitution)

promote effective communication between, and participation by bodies involved in skills development — both inside and outside the Sector;

co-operate with and support the QCTO in matters relating to QCTO functions and operations referred to in section 10 of the Act; and

to cooperate with and support the functions of other agencies in matters related to skills development.

SDA – Functions of a SETA

(a) develop a sector skills plan within the framework of the national skills development strategy;

(b) implement its sector skills plan by-

– (i) establishing learnerships;

– (ii) approving workplace skills plans;

– (iii) allocating grants in the prescribed manner and in accordance with any prescribed standards and criteria to employers, education and training providers and workers; and

– (iv) monitoring education and training in the sector;

SDA – Functions of a SETA (cont.)

(c) promote learnerships by –

(i) identifying workplaces for practical work experience;

(ii) supporting the development of learning materials;

(iii) improving the facilitation of learning; and

(iv) assisting in the conclusion of learnership agreements;

(d) register learnership agreements;

SDA – Functions of a SETA (cont.)

(e) within a week from its establishment, apply to the South African Qualifications Authority for accreditation as a body contemplated in section 5 (1) (a) (ii) (bb) and must, within 18 months from the date of that

application, be so accredited;

(f) when required to do so as contemplated in section 7(1) of the Skills Development Levies Act, collect the skills development levies, and must disburse the levies, allocated to it in terms of sections 8(3)(b) and 9(b), in its sector;

SDA – Functions of a SETA (cont)

(g) liaise with the National Skills Authority on –

(i) the national skills development policy;(ii) the national skills development strategy; and(iii) its sector skills plan;

(h) submit to the Director-General–

(i) any budgets, reports and financial statements on its income and expenditure that it is required to prepare in terms of the Public Finance Management Act; and(ii) plans and reports on the implementation of its sector skills plan and service level agreement;

SDA – Functions of a SETA (cont)

(i) liaise with the employment services of the Department and any education body established under any law regulating education in the Republic to improve information –

(i) about employment opportunities; and(ii) between education and training providers and the labour market;

(j) subject to section 14, appoint staff necessary for the performance of its functions;

(jA) promote the national standard established in terms of section 30B; and

(k) perform any other duties imposed by this Act or the Skills Development Levies Act or consistent with the purposes of this Act.

Vision and Mission

Vision

– The leading facilitator of world-class skills development for the Energy and Water Sectors

Mission

– To facilitate skills development for energy and water stakeholders, through providing integrated, value added education and training services

EWSETA values

Ethical – Conduct EWSETA operations in an ethical manner and in compliance with

laws and regulations

Professionalism– Provide a quality service in a professional manner that promotes the image of

the personnel and the organisation

Customer / Stakeholder oriented – Render quality service to stakeholders that is responsive to their needs

Accountability– Commitment to provide the stakeholders with reliable, relevant, accurate

information at appropriate time

Scope of coverage

Energy

– Generation, transmission and distribution of energy• Electricity• Renewable energy• Gas

Water services

– Collection, purification and distribution of water

– Sanitation and Waste management services

Demand Water for Development Addressing Service Backlogs

Access to basic water and sanitation services for all by 2012

Engineering Skills Need for 3000 Civil Engineers -lost through high Global demand and national issues Focus is on engineering skills rather than engineers – the use of engineering technologies

in posts that require engineers as an immediate solution.

Socio Economic and Environmental Health Skills There is a need for 7200 health and hygiene/environmental health practitioners

Management Skills There is a need for approximately 23000 managers of which at least 1200 should be in

technical management positions

Artisans And Technicians Skills There is an urgent need for 4000 artisans/technicians to overcome the crippling

challenges of poor operational and maintenance of infrastructure which might deter the achievement of Millennium goals by 2015

Demand(Cont...)

Replacement Demand The large number of workers over the age of 65, is most likely composed of people who

should have retired but are irreplaceable due to the failure to transfer skills

Critical Skills(Engineers, artisans and technicians) The critical skills need to be developed through workplace learning

SupplyEWSETA: provider capacity per province

Qualifications Qualification ID Number of EWSETA – Accredited Providers

Further Education and Training Certificate: Water and Wastewater Treatment Process Control Supervisor

61709 1

National Certificate: Community Water, Health and Sanitation Monitoring 64589 1

National Certificate: Community Water, Health and Sanitation Promotion 61689 1

National Certificate: Sanitation Project Co-ordination 48908 1

National Certificate: Water and Wastewater Reticulation Services 60190 2

National Certificate: Water and Wastewater Reticulation Services 60155 1

National Certificate: Water and Wastewater Reticulation Services 60169 1

Further Education and Training Certificate: Wastewater and Water Reticulation Services 60189 1

Further Education and Training Certificate: Wastewater Treatment Process Control Supervision 61709 1

National Certificate: Community Water, Health and Sanitation Promotion 61689 1

National Certificate: Sanitation Project Co-ordination 48908 1

National Certificate: Wastewater Process Operations 22673 1

National Certificate: Water and Wastewater Process Control 60190 1

National Certificate: Water and Wastewater and Reticulation Services 60155 1

National Certificate: Water and Wastewater Reticulation Services 60169 1

National Certificate: Water and Wastewater Treatment Process Operations 58951 1

Strategic Priority Areas

Strategic focus areas as identified by the Sector Skills Plan(SSP)

Recognition of Prior Learning

SMME Development

Accelerated Artisan Development

Workplace Mentorship and Placement

Post Matric Development Programmes

Capacity building of FET Colleges

Skills shortages/ awareness road-shows

Promotion of blue and green drops status

Lack of competent engineers, scientists and technicians

Strategic Priority Areas(Cont..)

Priority Short- term interventions(Internal)o Short course in sanitation systems and alternative technologieso Short course for water purification and wastewater treatment operators

Priority Short –terms Interventions(External)o Youth: Awareness in school curriculum on water issues, including WASH(Water and

Sanitation Hygiene) and water-borne diseaseso Adults: Focused awareness programs for rural areas and informal settlements on water

issues including WASH(Water and Sanitation Hygiene) and water-borne diseaseso Awareness programs for managers: Municipal Councillors and Managers, Mine

Managers and the captains of the industry on sanitation and waste legislation, and their responsibilities and liabilities

Priority medium to long term interventionso Program to ensure enough civil engineerso Program to ensure enough artisanso Program to ensure enough sewage plants operators

Strategic Priority areas(Cont..)

o Occupationally directed learning

o Ensure linkages with WRC to facilitate focused and relevant research that will add value for the water services sector

o Bursary Programs

Partnerships with Employers: 2010-11 to dateQualifications Learners Enrolled Completions Provinces

Employed Unemployed Employed Unemployed

Further Education and Training Certificate: Waste and Wastewater Treatment Process Control Supervision ID Number - 61079

7 35

20

20 LP/WC/FS

National Certificate: Community Water, Health and Sanitation Promotion - ID Number - 61689

No Enrolments

24 3 48 WC/LP

National Certificate: Water and Wastewater Reticulation Services

24 10

97 142 NC/MP

National Certificate: Water and Wastewater Process Control

19 129 41 24 FS/NP

National Certificate: Water and Wastewater Treatment Process Operations

107 357 355 290 GP/NW/KZN

National Certificate: Sanitation Project Co-ordination

No Enrolments

No Enrolments 12 15 FS/NC/KZN/GP

Strategic Project – NVC in Sanitation Services

Nkomazi Local Municipality : • 40 learners enrolled• 33 learners completed• 4 Companies established

Current Projects 2012-13Project Annual Target Per Strategic

PlanTotal Budget

1. Sector Skills Plan is developed and approved by the Board, sector stakeholders and the DHET on an annual basis.

•Sector skills plans provide a sound analysis of the sector, articulate an agreed sector strategy to address skills needs and is accessible to stakeholder

490 1 500 000

2. Unemployed learners assisted to enter into training programmes other than artisan development

•Unemployed learners that completed training programmes other than artisan development

330

330

5 000 000

500 000

3. Unemployed learners assisted to enter into artisan development

• Unemployed learners that qualified as artisans

600

690

9 000 000

9 000 000

4. Number of agreements entered into with universities and universities of technology

•Number of students assisted to enter into priority programmes supported through bursaries, mentoring and coaching

•Number of opportunities created for graduates from universities and universities of technology (work integrate learning)

4

100

50

110 000

4 950 000

3 300 000

Project Annual Target Per Strategic Plan

Total Budget

5. Number of programmes supported to produce research that has impact on

achievement of economic and skills development goals

2 550 000

6. Number of agreements entered into with FET colleges

• Number of students assisted to enter vocational courses supported through bursaries, mentoring and coaching

• Number of opportunities created for graduates from FET (work integrated learning)

50

50

200

110 000

4 950 000

3 300 000

7. Number of unemployed Youth and Adult learners entered in foundation learning programmes that improves employability

• Number of unemployed Youth and Adult learners that completed foundation learning programmes

• Number of opportunities created for unemployed Youth and Adult learners that completed foundation learning programmes (placements)

300

165

110

3 000 000

300 000

2 178 000

8. Number of learners entered into skills development initiatives to address specific sector skills gaps

• Number of learners that completed skills development initiates to address specific sector skills gaps

600 – Qualifications4000- Skills Programmes

400 – Qualifications300 – Skills Programmes

15 000 000

1 500 000

Project Annual Target Per Strategic Plan

Total Budget

9. Number of projects established / initiated to support co-operatives

•Number of projects completed that supported co-operatives

•Number of partnership projects established to support small businesses

•Number of partnership projects completed to support small businesses

•Number of quality pilot projects established to support workers initiated projects

•Number of quality pilot projects established to support NGOs

•Number of quality pilot projects established to support community based education programmes

15

10

3

1

5

5

9

1 500 00

150 000

150 000

150 000

2 200 000

1 650 000

1 650 000

10. Number of career guides updated and distributed

•Number of impact assessment conducted career guides Learners with EWSETA qualifications Quality of WSP/ATR submitted by SDF trained

10 000

9

550 000

1 650 000

Achievements and focus areas to date

Achievements

o Financial management

o EWSETA has received unqualified audit opinions in 2 consecutive financial years

o Improved on compliance with laws and regulations from period prior to the S15 Administration

Focus areas

o Improving on the performance against targets

o Performance reporting

o General control environment within EWSETA

Major Drivers

SIP8: green energy

SIP9: includes electricity generation to support socio-economic development

SIP10: electricity distribution for allo SIP 18: Water and Sanitation addressing backlogs in

water and sanitation, maintenance of water and sanitation infrastructure and construction of sewage plants

Financial overview - Performance

Statement of financial performance     Revised

Audited outcome estimate Medium-term

estimate

R thousand 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16Revenue

Non-tax revenue 7,601 12,455 10,800 6,318 6,665 6,999 6,999

Other non-tax revenue 7,601 12,455 10,800 6,318 6,665 6,999 6,999

Transfers received 147,208 152,552 153,747 166,309 175,456 184,229 184,229

Total revenue 154,809 165,007 164,547 172,627 182,121 191,228 191,228

Expenses

Current expenses 18,831 24,983 27,351 22,570 24,317 25,273 25,015

Compensation of employees 9,931 9,673 11,923 10,419 11,075 11,729 12,268

Goods and services 8,374 14,806 14,930 11,447 12,498 12,764 11,967

Depreciation 526 504 498 704 743 780 780

Transfers and subsidies 106,094 112,616 107,072 150,057 157,804 165,955 166,213

Total expenses 124,925 137,599 134,423 172,627 182,121 191,228 191,228

Surplus / (Deficit) 29,884 27,408 30,125 – – – –

Challenges

1. Challenges for the Sector– Sewage and sanitation systems:

There is a concern to access for sanitation for informal settlements

– Sanitation: Current challenges: Management problems(national) - transfer of sanitation unit from DWA to NDHS Management problems (local) – there is inadequate national financing to address the

sanitation backlogs, particularly in small towns and rural areas

– Infrastructure and technical problems: There is a lack of clarity with regards to sanitation standards and appropriate technical

options resulting in sanitation facilities that are often not compliant with technical design standards

There is insufficient operations and maintenance of existing infrastructure

– Problems of consultation and education: There is lack of health and hygiene education which negates the impact of sanitation

provision on improved health outcomes

Challenges(Cont....)

– Gaps in service provision:

There is a lack of sanitation provision in informal settlements and rural areas

2. Challenges for EWSETA

Backlog in issuing certificates

Limited budget and unable to cover all the functions

No sound relationship between LGSETA and EWSETA

No representation of the sanitation and waste sector at the Board Level and relevant governance committees

Conclusion

• 1st draft of the updated Sector Skills Plan (SSP) has been submitted to the Department of Higher Education and Training (DHET) on the 31st August 2012

• Next Phase

Extensive consultation and engagement with stakeholders

Revise the strategic plan and annual performance plans within the context of the SSP

• Expected Outcome

SSP that clearly outline the skills development needs of the sector

Strategies focused on closing the gap between the supply and demand

Thank You