DPW STRATEGIC PLAN AND BUDGET PRESENTATION TO THE

DPW STRATEGIC PLAN AND BUDGET PRESENTATION TO THE PORTFOLIO COMMITTEE 20 APRIL 2010 Strategic Management Unit 20 April 2010 1

Table of Contents • Table of Contents – – – – – Minister’s Foreword/ Priorities The Medium-Term Strategic Framework (MTSF) DPW Strategic Goals Outcomes DPW Programme structure Public Works Branches Key Branch initiatives Public Entities reporting to Public Works Budget Strategic Management Unit 20 April 2010 2

Minister’s Overview In terms of the medium-term period; the Minister has directed of the department’s senior managers to: – Review, reshape and rejuvenate; – implement the New Growth Path and – Focus on the Core. • Review, reshape and rejuvenate by ensuring: – – – – Finalize the structure of the department – to support service delivery. Service the core functions optimally. Implement the core competency model and develop skilled and capable personnel. Create centres of excellence – property management, construction management and maintenance management. Build IT capability – ensure integration of systems – effective management of immovable assets. Effective & efficient financial management – improve revenue collection & debt management. CBE; ASA; IDT & CIDB – improve delivery capability. Effective financial management – financial processes; internal controls; revenue collection and debt management. Strategic Management Unit 20 April 2010 3

Minister’s Overview • Pillars of the New Growth Path – Renew commitment on BEE – monitoring procurement spend on BEE and through programme implementation. – Strictly adhere to 30 days payment of invoices. – Skills development across the built environment – role of CIDB and CBE & external partnerships. – Transformation of both property & construction sectors – competitive; raise productivity and ensure broad-based inclusion. – Increase uptake of young people in built environment and in other fields. – Increase registration of professionals and support to emerging contractors. – Role of IDT in delivery of social infrastructure – enhance focus on rural development, poverty eradication; education and health infrastructure; job creation. – EPWP- a key response to the economic crisis; poverty alleviation and income inequality through work opportunities. Strategic Management Unit 20 April 2010 4

Minister’s Overview – EPWP continued: 4, 5 m job opportunities; R 5. 2 bn MTEF incentive allocation for various projects and R 2, 5 bn to support labour-intensive projects in the social and environmental sectors. Beneficiary of Green Strategy provided in IPAP II. – Agrement: ensure use of innovative and no-standard products through technical assessments. – Development of Green Strategy for the built environment and related codes for public buildings. – Energy efficiency for public buildings on course. • Focusing on the Core – Support the developmental state objectives and policy priorities. – Use immovable asset footprint – rehabilitate buildings to balance ownership/leasehold –finalize disposal policy. – Refurbishment of Land Ports of entry; dolomite projects; accessibility of public buildings – Review service delivery models Strategic Management Unit 20 April 2010 5

Minister’s Overview • • – Implement the PMTE – realignment of the immovable asset management business to promote and improve service delivery and strategic planning. Focus on • customer service – SLAs • Operational efficiencies: debtor’s book and revenue management. • Implement accrual system • Finalize new business model and business case. Improve on risk management and Deal with fraud and corruption decisively ! Strategic Management Unit 20 April 2010 6

Strategic Context: MTSF Priorities The following priorities were selected by Public Works to inform planning: • Speeding up growth and transforming the economy to create decent work and sustainable livelihoods; • Massive programme to build social and economic infrastructure; • Comprehensive rural development strategy linked to land agrarian reform and food security. • Strengthening our skills and human resource base. • Intensify the fight against crime and corruption; • Pursuing African advancement and enhanced international cooperation; • Sustainable resource management and use and • Building a developmental state, including improvement of public services and strengthening democratic institutions • 7

Strategic Context: DPW Strategic Goals The Department of Public Works has six (6) goals: • • • Provide strategic leadership in effective and efficient immovable asset management and in the delivery of infrastructure. Promote an enabling environment for the creation of both short and sustainable work opportunities so as to contribute to the national goal of job creation and poverty alleviation. Contribute to the building of a developmental state and a comprehensive rural development framework through state assets. Ensure transformation and regulation of the construction and property industries to ensure economic growth and development. Ensure effective corporate governance and sound resource management. Ensure improved service delivery in all departmental programmes to meet client expectations and leverage stakeholder relations. 8

Strategic Context: Outcomes The following four (4) outcomes were selected from twelve outcomes, approved by Cabinet in the January 2010 Lekgotla to be used by government to track the impact of programmes: • • Create decent employment through inclusive economic growth; Create efficient, competitive and responsive infrastructure network; Efficient and effective development-oriented Public Service and an empowered fair and inclusive citizenship and Skilled and capable workforce to support an inclusive growth path. 9

DPW Programme Structure • • • Programme 1: Administration Programme 2: Immovable Asset Investment Management Programme 3: Expanded Public Works Programme 4: Construction and Property Policy Regulation Programme 5: Auxiliary and Associate Services. NB: This is a new programme structure, approved by NT. All the other branches (see next slide), with the exception of Corporate Services and Finance and Supply Chain Mgmt, fall under Programme 2. The Public entities reporting to Public Works also fall under Programme 2. Strategic Management Unit 20 April 2010 10

Public Works Branches • The department has eight branches, located under five Programmes: – Asset Investment Management – Operations management – Special projects – Inner-city Regeneration, Project Management and Professional Services – Expanded Public Works Programme – Construction and Property Policy Regulation – Finance and Supply Chain Management – Corporate Services Strategic Management Unit 20 April 2010 11

Key Branch initiatives • Asset Investment Management Branch – Enhancement of Asset Register – Compilation of SLAs and SDS. – Facilitation of completion of User Asset Management Plans for user departments. – Compilation of Custodian Asset Management Plans. – Implementation Programmes: planned maintenance; capital works and leasing portfolio. – Implementation of GIAMA: Property Performance Standards. – Energy and water efficiency – Rehabilitation of buildings: unused and under-utilised. – Accessibility of public buildings to people with disabilities. – Valuations and NIMS. Strategic Management Unit 09 March 2010 12

Key Branch initiatives • Operations Management – Operations Management funds the implementation of acquisition, construction and maintenance of infrastructure for the Department of Public Works and client departments. The distribution of funds is governed by the compensation and administration of the unit. – The Department of Public Works has eleven (11) regional offices falling under this sub-programme. • Inner City Regeneration, Project Management & Prof. Services Branch – Development of inner city precincts (Marabastad, Salvokop, Church Sq. & Paul Kruger North) with City of Tshwane as context for Head offices of the RKTP, – Feasibility studies and confirmation of additional new Head Office projects in Tshwane, Strategic Management Unit 20 April 2010 13

Key Branch initiatives – Freedom Park Administration Building, refurbishment of HG de Witt building, – Feasibility studies to identify & inform the rollout of the program to other towns. – Development as Centre of Expertise for DPW project managers (updating of norms & standards, processes, toolkit), – Construction of 598 projects: capital (R 337 m), maintenance (R 142 m) & recoverable projects (R 1 b), – SA embassy Nigeria, Tzaneen prison, Waterkloof runway, RAMP projects. – Updating of technical norms & standards for design & construction of projects, – Dam safety monitoring, – Site identification & clearance for the development of projects, – Development of Green Building and sustainability principles – Dolomite risk management to inform planning and remedy sinkholes. Strategic Management Unit 20 Strategic Management Unit April 2010 14

Key Branch initiatives Special Projects Branch • Land Ports of Entry: Golela; Skilpadhek; Vioolsdrift and Lebombo/Ressano • Pan - African Parliament – DPW and National Treasury working on an alternative funding formula for PAP. • 2010 FIFA World Cup – redevelopment of border posts infrastructure. Strategic Management Unit 20 April 2010 15

Key Branch initiatives • Expanded Public Works Programme Branch • • • 4, 5 m multi-year targets in the various sectors, namely: social; infrastructure; economic; environmental and culture and non-state sector. Implement incentive grant EPWP to be implemented in the non-state sector) for the first time – strategic partnership with NGOs/CBOS/NPOs. Implement incentive scheme in the environment and culture and non-state sector and Community Work Programme Working with the Presidency, enhance accountability arrangements in the three spheres of government to meet targets Community Work Programme. Strategic Management Unit 20 April 2010 16

EPWP Targets per Sector The infrastructure sector, has the biggest MTEF allocation from NT: R 846 bnopportunities exist for the EPWP to upscale further. Sector Work opportunities Full Time Equivalents Infrastructure 2 374 000 900 000 Environmental 1 156 000 350 000 Social 750 000 500 000 Non-state 640 000 280 000 TOTAL 4. 5 million plus 2 million plus Strategic Management Unit 20 April 2010 17

EPWP Targets per sphere of Government Local Provincial National Non-state Totals 2009 -2010 182, 607 247, 325 100, 068 20, 000 550, 000 2010 -2011 208, 032 281, 720 104, 248 48, 000 642, 000 2012 -2013 349, 129 501, 283 183, 588 176, 000 1, 210, 000 2013 -2014 440, 721 659, 286 249, 994 300, 000 1, 650, 000 Totals 1, 448, 409 2, 060, 034 771, 557 640, 000 4, 920, 000 Strategic Management Unit 20 April 2010 18

Key Branch initiatives • Construction and Property Policy Regulation Branch • • Property and construction policy regulation Implementation of construction and property Charters. National Contractor development programme (NCDP): Contractor Incubator programme Property Incubator Programme “Extension” of GIAMA principles to local government. Policy development: asset management and other Expropriation Act State land under DPW’s custodianship - Land Affairs Board Strategic Management Unit 20 April 2010 19

Key Branch initiatives Finance and Supply Chain Branch Projects: § Ensure equitable and effective allocation of resources to all programmes. § Action plan for GAAP compliance on PMTE. § Ensure: § improved revenue collection and debtors management and PMTE management. § Improved internal controls and payment of invoices (30 days). § Improved supply chain management. § Improved management of movable assets. Strategic Management Unit 20 April 2010 20

Key Branch initiatives Corporate Services Branch Projects: • • • Enabling IT Systems Human Resource Management Plan Compliance with NIA requirements. Implement new Disability Strategy. Critical skills through international bilaterals Provide legal expertise and advice. Strategic Management Unit 20 April 2010 21

Key branch initiatives • The strategic management unit: responsible for: – Strategic Planning • development of the strategic plan of the department. • Alignment of the country’s National Plan from the National Planning Commission (NPC) in the Presidency to Public Works Strategic Plan. • Business planning: head office and regional offices. • Coordination of cluster process – ensure alignment of Cabinet cluster programme to Public Works. – Risk Management – implementation of risk management processes. – Knowledge management: implementation of knowledge management strategy in a developmental state. – Development economics: analysis of socio-economic reports and aims to undertake socio-economic impact studies, to assess the impact of Public Works programmes. 22

Key branch initiatives • Monitoring and evaluation unit: responsible for: – monitoring and evaluating the performance of Public Works programmes. – Submit departmental performance reports to the M & E unit in the Presidency. – Consolidation of DPW performance information for Auditor General and National Treasury. • Intergovernmental Relations: responsible for the coordination of national Public Works processes and programmes with the othe two spheres of government. 23

Public Entities reporting to Public Works • • The Independent Development Trust (IDT) The Construction Industry Development Board (CIDB) Council for Built Environment (CBE) Agrement South Africa (ASA) Some of the entities have presented their strategic plans to Parliament. Strategic Management Unit 20 April 2010 24

Budget Allocation over the MTEF Period (2010/11 to 2012/13) 20 April 2010 Presented by Cathy Motsisi Chief Financial Officer 25

Allocation Letter for new MTEF 2010/11 R’ 000 Baseline 2009/10 Additional Funds Allocated to Baseline Adjustment to baseline (Efficiency Savings & EPWP Grant to COGTA) Additional Funds (Incentive to Provinces) New Baseline Net Decrease to Baseline 2011/12 R’ 000 2012/13 R’ 000 6, 598, 738 8, 185, 373 8, 471, 819 40, 439 35, 518 38, 526 (249, 489) (236, 745) (264, 185) 56, 637 - - 6, 446, 325 7, 984, 146 8, 246, 160 (2, 3%) (2, 26%) (2, 67%) 26

Breakdown of the Additional funding & Adjustments to Baseline Items ADDITIONS: 2010/11 R’ 000 2011/12 R’ 000 2012/13 R’ 000 97, 076 35, 518 38, 526 Compensation of employees ( Inflation Adjustment) 30, 439 35, 518 38, 526 EPWP (Capacity) 10, 000 - - Conditional Grants to Provinces ( Social Sector) 56, 637 (249, 489) (236, 745) (264, 185) 59, 164 65, 880 93, 112 190, 325 163, 550 171, 073 ADJUSTMENTS: Efficiency Savings EPWP: CWP to Co. GTA 27

Budget Per Economic Classification 2009/10 R’ 000 2010/11 R’ 000 2011/12 R’ 000 2012/13 R’ 000 1 012 237 1 121 432 1 201 662 1 249 589 Goods & Services 601 668 570 322 724, 056 755 978 Office Accommodation 317 479 351 027 374 544 396 409 Transfers & Subsidies 2 607 897 3 029 610 3 988 799 4 169 386 Capital Infrastructure 1 462 325 1 303 945 1 634 742 Payments for Capital Assets 47 524 69 997 91 140 40 056 6, 049, 130 6, 446, 325 7, 984, 146 8, 246, 160 Comp of Employees TOTAL Current budget as a % of total budget = Compensation = 16, 73%, 17, 39%, 15, 5% ( No funds for OSD = R 24 Mil) Goods & Services= 9, 9%, 8, 8%, 9, 16% Transfers & Subsidies: EPWP = 1, 01 billion Property Rates = 1, 09 billion 28

Budget Per Programme 2010/11 R’ 000 2011/12 R’ 000 2012/13 R’ 000 TOTAL 663, 129 752, 050 790, 205 2, 205, 384 Prog 2: Immovable Asset Management 4, 250, 680 4, 787, 047 4, 898, 298 13, 936, 025 Prog 3: EPWP 1, 479, 110 2, 386, 705 2, 496, 608 6, 362, 423 Prog 4: Property & Construction Industry Policy Regulation 31, 539 35, 164 36, 710 103, 413 Prog 5: Auxiliary and Associated Services 21, 867 23, 180 24, 339 69, 386 6, 446, 325 7, 984, 146 8, 246, 160 22, 676, 631 Prog 1: Admin TOTAL 29

Earmarked Funds Items 2010/11 R’ 000 2011/12 R’ 000 2012/13 R’ 000 Office Accommodation 351 027 374 544 396 409 EPWP 278 147 315 155 322 135 1 303 945 1 634 742 CIDB 63 665 65 959 66 882 CBE 25 527 27 059 27 438 Energy Efficiency 75 000 120 000 - Non State Sector 179 811 154 370 161 471 10 515 9 180 9 602 EPWP: Incentive Grants to local Gov 622 996 1 108 000 1 163 400 EPWP: Incentive Grants to Provinces 387 641 800 000 840 000 Devolution of Prop Rates 1 096 192 1 161 964 1 220 062 Grand total 4 394 466 5 740 176 5 842 141 Infrastructure Public Works IDT 30

Conditional Grants & Specifically & Exclusive Appropriation 2010/11 R’ 000 2011/12 R’ 000 2012/13 R’ 000 Conditional Grant EPWP: Infrastructure Grant: Local Gov Prov Gov 622 996 331 004 1 108 000 800 000 1 163 400 840 000 56 637 - - 1 096 192 1 161 964 1 220 062 EPWP: Social Sector Devolution of Property Rates Specifically & Exclusively Appropriated Energy Efficiency 75 000 120 000 - IDT 10 515 9 180 9 602 179 811 154 370 161 471 EPWP Non State Sector 31

Breakdown of the Infrastructure Budget Projects 2010/2011 R’ 000 Departmental 93 595 Accessibility 15 000 Dolomite Risk Management 160 000 Land Ports of Entry 551 452 Prestige 283 898 Inner City Regeneration 200 000 Total 1 303 945 32

Breakdown of the “Land Ports of Entry” Projects Skilpadshek 2010/2011 R’ 000 278, 975, 573 Golela 43, 761, 987 Lebombo 42, 502, 112 Vioolsdrift 3, 131, 189 RAMP projects 94, 854, 403 Other Land Ports of Entry 88, 226, 736 Total 551, 452, 000 33

Breakdown of the “Dolomite Risk Management” Client Correctional Services Defence 2010/2011 R’ 000 4, 609, 857 66, 758, 744 Justice 6, 600, 534 Police 82, 030, 865 Total 160, 000 34

PMTE REVENUE & BUDGET Items 2009/10 R’ 000 2010/11 R’ 000 2011/12 R’ 000 2012/13 R’ 000 Revenue 5, 308, 319 5, 966, 758 6, 624, 630 7, 353, 819 Accommodation Charges 2, 497, 295 2, 941, 105 3, 382, 270 3, 889, 611 Private 2, 138, 463 2, 309, 540 2, 494, 303 2, 693, 848 588, 411 612, 967 630, 189 646, 849 79, 150 98, 146 112, 868 118, 512 5000 5, 308, 319 5, 966, 758 6, 624, 630 7, 353, 819 Cleaning & Gardening 119, 780 155, 714 202, 428 263, 156 Day to Day Maintenance 547, 983 602, 781 663, 059 729, 365 Private Leases 2, 138, 463 2, 309, 540 2, 494, 303 2, 693, 848 Property Rates 538, 600 592, 460 651, 706 716, 876 1, 963, 493 2, 306, 263 2, 613, 134 2, 950, 574 Augmentation Management Fees Other Expenditure Repair, Renovation & Upgrading 35

Breakdown of Client Infrastructure Budget Client Agriculture, Forestry & Fishing 2010/2011 R’ 000 24 000 Arts & Culture 151 306 Correctional Services 854 935 Defence & Military Veterans 192 844 Health Home Affairs 8 505 49 694 Justice 409 157 Labour 7 881 Rural Development & Land Reform 12 151 Police 717 230 Total 2 427 703 36

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