2c8a4e5d415d242e5e69528cdfbbebc0.ppt
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PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT ON 2014 -2019 STRATEGIC PLAN AND 2014/15 ANNUAL PERFORMANCE PLAN OF THE DEPARTMENT OF PUBLIC WORKS Director-General Department of Public Works 15 July 2014
TABLE OF CONTENTS No Item Slide 1. Regulatory requirements for Strategic Plans and Annual Performance Plans 3 -4 2. Part A: Strategic overview, overall performance and outlook 5 -17 • Legislative and other mandates • Introduction and strategic context • Planned policy initiatives • Performance environment • Organisational environment 3. Part B: Strategic objectives and programme plans 18 -22 • PROGRAMME 1: ADMINISTRATION • PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT • PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP) • PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION • PROGRAMME 5: AUXILIARY AND ASSOCIATED SERVICES • PUBLIC ENTITIES 4. Part C: Long Term Infrastructure Plan 23 -25 • DPW infrastructure budget • PMTE infrastructure budget - planned maintenance 2
1 Regulatory requirements for Strategic Plans and Annual Performance Plans This section provides context to the regulatory requirements in accordance with the National Treasury Framework for Strategic Plans and Annual Performance Plans 3
NATIONAL TREASURY GUIDELINES FOR STRATEGIC PLANS AND ANNUAL PERFORMANCE PLANS • The Framework for Strategic Plans and Annual Performance Plans, issued in September 2010, provides a new format and revised timeframes for the compilation of the Strategic Plan and Annual Performance Plan. • National Treasury issued an Instruction Note (No. 33) in July 2011 on the full compliance to the mandatory requirements of the Framework for Strategic Plans and Annual Performance Plans. • A Strategic Plan covers a period of at least five years ideally from the first planning cycle following an election linked to the identified outcomes of the Presidency. • A Strategic Plan may be changed during the five year period it covers. However, such changes should be limited to revisions related to significant policy shifts or changes in the service delivery environment • The Annual Performance Plan sets out what the institution intends doing in the upcoming financial year and during the MTEF to implement its Strategic Plan. • The format of the APP (including the tables) is prescribed by the National Treasury Framework for Strategic Plans and Annual Performance Plans and aims is to link the plans, budget and performance of the Department. • Annual targets are broken up into quarterly targets where possible to ensure effective monitoring of performance on a quarterly basis 4
2 PART A: Strategic overview, overall performance and outlook This section specifies the vision, mission, values and the goals that the Department aims to achieve over a five-year period. (SP Pages 15 - 58 and APP Pages 16 -50) 5
LEGISLATIVE AND OTHER MANDATES Constitutional mandate: The Constitutional mandate is provided for in Schedule 4, Part A, of the Constitution of the Republic of South Africa: Functional Areas of Concurrent National and Provincial Legislative Competence. Legislative mandate The legislative mandate is primarily governed by the Government Immovable Asset Management Act, 2007. The Department regulates the construction industry and built environment through the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000) and the six Professional Council Acts that regulate the six Built Environment Professions (BEPs), and through the Council for the Built Environment Act (Act No. 43 of 2000) Policy mandates • DPW White Paper: Public Works, Towards the 21 st Century, 1997 • DPW White Paper: Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999 • Construction Sector Transformation Charter, 2006 • Property Sector Transformation Charter, 2007 • DPW Broad-based Black Economic Empowerment Strategy, 2006 • Property Management Strategy on BBBEE, Job Creation and Poverty Alleviation, 2007 • Green Building Framework, 2011 6
INTRODUCTION AND STRATEGIC CONTEXT Vision A service oriented Public Works Department delivering value and contributing to the national agenda for social and economic development. Mission • Provide quality accommodation and related services to our clients, • efficiently and effectively manage the immovable assets in our custodianship, • actively contribute to the national goals of job creation and poverty alleviation through the Expanded Public Works Programme, • provide expert built-environment advice to our stakeholders, • provide strategic leadership to the South African Construction and Property Industries. 7
ALIGNMENT OF THE BUDGET WITH BROADER POLICY PRIORITIES The following Government priorities form the basis of the Strategic Plan informed by the ruling party manifesto and National Development Plan (NDP) translated into the Medium Term Strategic Framework (MTSF): Key policy priorities 2014/15 Budget Outcome 4 (Chapter 3 of the NDP) - Decent employment through inclusive economic growth – The EPWP will continue to be an effective cushion for the poor and unemployed. Phase 3 of the EPWP which covers the period 2014/15 to 2018/19 aims to create 6 million work opportunities. (Detailed budget on slide 9) R 1. 951 bil Outcome 6 (Chapter 4 of the NDP) – An efficient, competitive and responsive infrastructure network – The Department will continue prioritising infrastructure requirements at the Land Ports of Entry (LPOE) to facilitate cross border trade and strengthen socio-economic development. R 233 mil R 3 mil National Infrastructure Maintenance Strategy (NIMS) is a coordinated programme of action being led by the Department and supported by the Construction Industry Development Board (cidb) to deal with infrastructure maintenance for different sectors. 8
EPWP INCENTIVES ALLOCATION Detailed budget linked to Outcome 4 2013/14 (R’ 000) 2014/15 2015/16 2016/17 2017/18 (R’ 000) EPWP Integrated grant to provinces - Infrastructure and environment and 356 915 348 947 356 574 411 798 432 388 Culture EPWP Social Sector Incentive grant 257 564 257 972 267 529 374 662 393 395 EPWP Integrated grant to municipalities - Infrastructure, Environment & Culture and Social Sector 611 274 594 575 618 966 705 997 741 297 Non-profit institutions 438 281 477 481 484 816 600 257 630 270 Total 1 664 034 1 678 975 1 727 885 2 092 714 2 197 350 9
ALIGNMENT OF THE BUDGET WITH BROADER POLICY PRIORITIES Key policy priorities 2014/15 Budget Outcome 7 (Chapter 6 of the NDP) - Comprehensive rural development – The Department will be collaborating with sector departments and rural municipalities to coordinate infrastructure planning and ensure maximum impact in rural areas. R 2 mil Outcome 12 (Chapter 13 of the NDP) - An efficient and effective R 510 mil development-oriented Public Service – Through strategic planning instruments (U-AMP and C-AMP) the Department provides accommodation to user departments that promotes integration, accessibility, sustainability, environmental sensitivity, economic growth and social empowerment. 10
ALIGNMENT OF THE BUDGET WITH BROADER POLICY PRIORITIES In addition the following priorities has also been considered as significant to the Strategic Plan: Key policy priorities 2014/15 Budget Outcome 1 (Chapter 9 of the NDP) - Quality Basic Education – The Department in collaboration with DBE will be replacing inappropriate structures at 36 schools and making aesthetic improvements to 915 schools. - Outcome 5 (Chapter 9 of the NDP) – Skilled and capable workforce to support an inclusive growth path. The Department has a number of development programmes such as the young professionals programme, internship programme, learnership programme and artisan programme providing valuable on the job experience. R 3 mil CETA funding - R 50 mil Outcome 8 (Chapter 8 of the NDP) – Sustainable human settlements and improved quality of household life. The Department will release well located land properties for development purposed to the Department of Human Settlements. 11
ALIGNMENT OF THE BUDGET WITH BROADER POLICY PRIORITIES Key policy priorities 2014/15 Budget Outcome 10 (Chapter 5 of the NDP) – Protect and enhance our environment assets and natural resources. The Department will continue implementing the Green Building Framework in line with Government’s transition to a low carbon economy. Outcome 14 (Chapter 15 of the NDP) – Nation building and social cohesion – The Department in partnership with the City of Tshwane will create a more functional and aesthetically pleasing inner city. R 107 mil 12
INTRODUCTION AND STRATEGIC CONTEXT Strategic goals Goal statement 1. An efficient, competitive and responsive accommodation infrastructure network Manage the life cycle of immovable assets under the custodianship of the Department effectively and efficiently. 2. Strategic leadership and regulation of the construction and property sectors to promote economic empowerment and skills development Provide leadership to the South African construction and property sectors whilst ensuring transformation and regulation thereof through the development of legislation and best practice guidelines. 3. Good corporate governance to support effective and efficient service delivery Provide strategic leadership in ensuring effective governance, sound resource management and integrity of the operations of the Department. 4. Decent employment through inclusive economic growth 5. Contribute towards comprehensive rural development Lead and coordinate the creation of additional employment opportunities through labour intensive delivery methods and skills programmes for the participation of the unemployed in delivering needed services and creation of assets. Improved land administration and spatial planning for integrated development in urban and rural areas. 13
PLANNED POLICY INITIATIVES The Department will review and/or develop the following policies and legislation: • Review of the Department’s White Papers: “Public Works towards the 21 st century, 1997; and Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999” towards the development of an enabling legislation • establish Agrément South Africa (ASA) as a public entity mandated to assess non-standardised and/or unconventional construction products, materials and systems fit for purpose, • develop a draft Built Environment Professions (BEP) Policy towards possible amendments to the legislative framework governing the BEPs, • promulgation of a new Expropriation Act (repealing the Expropriation Act 63 of 1975) to ensure consistency with the Constitution and uniformity in the expropriation of property by all expropriating authorities, • develop legislation to establish the Independent Development Trust (IDT) as a public entity to support the State in the delivery of social infrastructure, • develop a Green Building Policy and Strategy for the Department to give effect to Government’s green economy initiatives. 14
PERFORMANCE ENVIRONMENT Turnaround Strategy: • The Department launched a Turnaround Strategy in 2012 to address multiple issues of underperformance that ultimately resulted in progressively negative audit reports by the Auditor-General • For reasons of impact and strategic importance, 10 projects have been conceptualised from the 23 key stabilisation projects, as essential drivers of Phase 2 for the rebuilding the Department. These projects are: 1. 2. The development of a Service Delivery Framework Operationalisation of Property Management Trading Entity and establishment of the Government Component 3. Developing a complete and credible register of State immovable assets 4. Conducting a comprehensive audit of leased properties and the establishment of a leasing management framework 5. Restructuring of Supply Chain Management (SCM) to better meet business requirements 6. Improving internal efficiencies to meet the service delivery requirements of Prestige clients 7. Developing an Information Technology strategy, architecture and platform as a key enabler 8. Improving infrastructure delivery through the application of best practice in terms of processes, structures and systems (IDMS) 9. Actively combating fraud and corruption, both within the Department and in the construction and property sectors, holding transgressors accountable for their actions 10. Development and implementation of an effective change management strategy that enables a performance driven culture 15
PERFORMANCE ENVIRONMENT Turnaround Strategy Budget: Programme 1: Administration Programme 2: Immovable Asset Management Project description Business Model Project Fraud Investigations Internal Audit Support Core Turn Around Support Team Clean Audit Supply Chain Management Review Irregular Expenditure Project Total: Programme 1 Lease review Immovable Asset Register 2014 / 15 2015 / 16 2016/17 R`000 1 000 - 30 690 6 138 6 463 10 800 5 040 5 307 Total: Programme 2 Overall Total 7 990 64 291 8 805 15 000 9 311 10 000 36 481 143 262 39 000 24 771 7 900 9 121 43 199 4 100 27 070 12 636 9 604 44 010 28 505 63 771 207 033 31 170 74 369 28 505 72 515 16
ORGANISATIONAL ENVIRONMENT • The Department has reviewed the organisational structure which will be approved and implemented over the MTEF. • The Department has an approved establishment of 6 818 posts of which 5 560 are filled. • An integrated Human Resource Plan has been developed to respond to Government’s priorities and to align the Department’s workforce with the mission, vision, strategic goals and financial resources of the Department. • The Department is experiencing challenges in producing the wide range of skills required in the construction and engineering fields, in order to meet longer-term infrastructure delivery objectives. • The Department will therefore continue to implement its strategy to bring in skilled graduate professionals through development programmes. • Targeted human resource interventions in place include the recruitment of technical and professional staff to overcome short term challenges • For the 2014/15 financial year the Department has an allocation R 1. 660 billion for compensation of employees to deliver on its key priorities. • Additional funding (estimated R 3 bil shortfall) will be required in implementing the new structure over the MTEF. 17
3 PART B: Strategic objectives and programme budget This section specifies strategic objectives and their resource implications that need to be managed over the MTEF (SP Pages 59 - 97 and APP Pages 51 - 125) 18
PROGRAMME OBJECTIVES AND BUDGET Programme Strategic Objective(s) Budget Administration • Promote sound corporate governance practices within DPW. • Ensure effective and sound financial resource and corporate resource management. The Bulk of the Programme budget goes towards Office Accommodation and Corporate Services functions. The budget allocation for the Programme is R 1. 175 billion for 2014/15. Immovable Asset Management • Effective life cycle asset management of immovable assets under the custodianship of the Department. • Improved land administration and spatial planning for integrated development in urban and rural areas Expanded Public • Co-ordinate, monitor and evaluate the Works creation of work opportunities and income Programme support to the poor and unemployed, so as to contribute to national goal of job creation poverty alleviation Property and Construction Industry Policy Regulations • Promote growth and transformation of and competition in the construction and property industries. Auxiliary and Associated Services • Render auxiliary services for state functions and meet financial commitments on compensation for losses, preservations of national memorials, training and skills development • Promote uniformity and best practice in construction and immovable asset management in the public sector. The spending focus for the Programme includes the infrastructure, immovable asset register and the lease review as part of the Turnaround Strategy. The budget allocation for the Programme is R 2. 861 billion for 2014/15. The bulk of the programme’s budget goes towards the payment of performance based incentives to eligible Provinces, Municipalities and Non-Profit Organisations. The budget allocation for the Programme is R 1. 951 billion for 2014/15. The spending focus for the Programme will be on tabling the Expropriation Bill and the Agrément South Africa Bill in Parliament. The budget allocation for the Programme is R 41 million for 2014/15. The bulk of spending in this programme goes towards goods and services and transfers and subsidies for the State functions and Assistance to Organisations for Preservation of National Memorials. The budget allocation for the Programme is R 92 million for 19 2014/15.
BUDGET ALLOCATION SUMMARY PER PROGRAMME To deliver on the Department’s strategic goals and objectives, a budget of R 6. 121 billion is allocated across various Programmes: Programmes 2013/14 2014/15 2015/16 2016/17 Previous year Current year MTEF Administration 1 158 162 1 175 346 1 133 293 1 191 463 Immovable Asset Management 2 981 770 2 861 387 3 308 139 3 450 040 Expanded Public Works Programme Property and Construction Industry Policy Regulations 1 947 969 1 951 295 2 006 840 2 395 237 Auxiliary and Associated Services 50 678 91 819 53 689 56 593 Total for Programmes 6 175 261 6 121 320 6 545 342 7 139 205 36 682 41 473 43 381 45 872 20
BUDGET ALLOCATION SUMMARY PER ECONOMIC CLASSIFICATION Economic classifications Current payments Compensation of employees Goods and services Transfers and subsidies Provinces and municipalities Departmental agencies and accounts Foreign governments and international organisations Public corporations and private enterprises Non-profit institutions Households Payments for capital assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets Total economic classification 2013/14 2014/15 Previous Current year 2015/16 MTEF 2016/17 MTEF 2 853 020 2 962 023 2 956 367 3 139 563 1 473 467 1 659 885 1 753 457 1 870 541 1 379 553 1 302 138 1 202 910 1 269 022 2 543 889 2 563 353 2 654 170 3 017 922 1 225 778 1 201 520 1 243 096 1 492 486 803 694 802 761 843 363 890 769 20 510 21 741 22 741 23 946 50 000 - 438 281 477 481 484 816 600 257 5 626 9 850 10 154 10 464 778 352 595 944 934 805 981 720 676 206 510 369 844 005 885 153 91 162 79 232 84 165 89 580 10 984 6 343 6 635 6 987 6 175 261 6 121 320 6 545 342 7 139 205 21
PUBLIC ENTITIES There are four Public Entities reporting to the Department of Public Works. The Entities serve as an extension of and assist the Department in delivering on its mandate. Name of Public Entity 2014/15 Budget Construction Industry Development Board (cidb): The cidb supports the Department by providing strategic direction and developing effective partnerships for growth, reform and improvement of the construction sector; R 77 mil Council for Built Environment (CBE): The CBE implements projects and programmes that address the built environment issues and add value to the built environment professions, Government and the general public; R 42 mil Independent Development Trust (IDT): The IDT supports the Department in contributing to Government’s priorities of job creation, sector skills development, green buildings initiatives and eradication of social infrastructure backlogs. R 50 mil Agrément SA (ASA): ASA supports the Department by technically assessing R 11 mil innovative construction technologies and promoting their use to stimulate the creation of sustainable short and long-term work opportunities; Property Management Trading Entity (PMTE): Optimal utilisation of State property to meet the service delivery objectives of Government R 673 mil 22
4 PART C: Long term infrastructure plan This section considers the long term infrastructure plans (SP Pages 98 - 107 and APP Pages 126 - 135) 23
DPW INFRASTRUCTURE BUDGET SUB-PROGRAMME: INFRASTRUCTURE (DPW CAPITAL BUDGET) The acquisition of infrastructure for DPW’s own accommodation needs as well as for the prestige portfolio, land ports of entry, dolomite risk management, inner city regeneration programmes and accessibility programmes in terms of the disability policy is funded from the Infrastructure (Public Works) allocation. 1. New, replacement, upgrade and additions No of Infrastructure Outcome projects Programme Type Main Adjusted appropriation Appropriation 2010/11 2011/12 R`000 2012/13 R`000 Revised Estimate 2013/14 R`000 Medium Term Estimates 2014/15 R`000 2015/16 2016/17 R`000 95 Departmental 261, 201 285, 294 228, 106 227, 000 - 227, 000 86, 000 158, 000 204, 066 119 Accessibility 18, 978 11, 386 4, 992 25, 000 - 25, 000 11, 369 9, 005 9, 482 37 Dolomite Risk Management 11, 861 32, 167 32, 355 54, 000 - 54, 000 17, 000 141, 000 148, 473 110 Land Ports of Entry 372, 000 274, 626 233, 892 202, 206 - 202, 206 233, 000 285, 000 277, 239 17 Inner City Regeneration 145, 389 42, 059 94, 838 55, 000 - 55, 000 107, 000 101, 000 106, 353 60 Prestige 446, 445 365, 876 118, 820 113, 000 - 113, 000 56, 000 150, 000 139, 540 1 255 874 1 011 408 713 003 676 206 - 676 206 510 369 844 005 Total 24
PMTE INFRASTRUCTURE BUDGET- PLANNED MAINTENANCE 2. Maintenance and repairs (PMTE - Current) The maintenance and repair of existing state accommodation as funded by the PMTE through accommodation charges received from user departments No of Infrastructure projects Programme Type Outcome 2010/11 R`000 2088 Planned maintenance (current) 1 710 400 Main Adjusted Revised appropriation Appropriation Estimate 2011/12 R`000 1 398 391 2012/13 R`000 1 630 271 2013/14 R`000 2014/15 R`000 1 492 480 Medium Term Estimates R`000 - 1 492 480 R`000 1 600 127 2015/16 R`000 1 589 879 2016/17 R`000 2 007 856 3. Rehabilitation, renovations and refurbishment (PMTE - Capital) Major renovations and refurbishment of state accommodation funded by PMTE through accommodation charges received from user departments and augmentation received from National Treasury No of Infrastructure Outcome projects Programme Type 2010/11 R`000 1241 Planned maintenance (capital) 303 799 Main Adjusted Revised appropriation Appropriation Estimate 2011/12 R`000 721 245 2012/13 R`000 718 712 2013/14 R`000 947 593 Medium Term Estimates 2014/15 R`000 - 947 593 R`000 1 098 444 2015/16 R`000 1 451 070 2016/17 R`000 1 577 982 25
THANK YOU National Department of Public Works (NDPW) Head Office: Public Works CGO Building Cnr Bosman and Madiba Pretoria Central Private Bag X 65 Pretoria 0001 Website: http: //www. publicworks. gov. za 26