CHALLENGES FACED IN THE DESIGN AND IMPLEMENTATION OF SOCIO-ECONOMIC DEVELOPMENT PLANS Holle Linnea Wlokas ([email protected]), Louise Tait ([email protected])

CHALLENGES FACED IN THE DESIGN AND IMPLEMENTATION OF SOCIO-ECONOMIC

DEVELOPMENT PLANS

Holle Linnea Wlokas ([email protected]), Louise Tait ([email protected])www.erc.uct.ac.za

Nomvula Dlamini ([email protected])www.cdra.org.za

2

Research group

• Low-carbon development and poverty • Poverty and mitigation (CDM, NAMA, etc.)• Clean energy for low-income households • Social implementation of technologies

Worked alongside project developers on economic development requirements of RE IPPPP

• 20 projects all over the country

Academic reflection & preparing future work with partner organisations like CDRA

ENERGY, POVERTY AND DEVELOPMENT GROUP IN THE ENERGY RESEARCH CENTRE

3

1. Review of economic development elements in RE IPPPP

2. Creating a successful socio-economic development programme: key

consideration and factors

CONTENT

Raise awareness about opportunities and challenges associated with design and implementation of SED and ED elements from a community development perspective.

OBJECTIVE OF THE PRESENTATION

4

70 %Price

30 %

Economic Development

PROJECT SELECTION

Source: South African Department of Energy

7 Economic Development Elements WeightingJob Creation 25%Local Content 25%Ownership 15%Management Control 5%Preferential Procurement 10%Enterprise Development 5%Socio-Economic Development 15%Total 100%Total points 30 points

5

Economic Development

for Local Communities

Job Creation

Ownership

Socio-Economic

Development

Enterprise Development

Number of Citizens from Local Communities employed• 12-20% of total number of

RSA Based Employees

Shareholding by Local Communities• 2.5- 5.0% of total

shareholding• Or entire ownership

requirement of 12-30%

Socio-economic development interventions• 1 - 1.5% of total project

revenue

Enterprise Development • 0 - 0.6% of total

revenue

REQUIREMENTS

6

identify needs of surrounding

communities in 50km radius

formulate strategies on how such needs

could be met

provide list of enterprises

earmarked for development

give an indication of programmes that

will be implemented with these enterprises

Socio-economic development

1 to 1.5% of revenue

Enterprise development

0 to 0.6% of revenue

Economic Development

Evaluation• Compliance with

threshold

7

UNEQUAL GEOGRAPHICAL DISTRIBUTION OF PROJECTS

Geographical distribution of preferred bidders (1st and 2nd round)

Population 1mil

8

THE CHALLENGES

Lack of guidelines for design and implementation of socio-economic and enterprise development

Lack of development expertise in project selection committee• Threshold is the only evaluated criteria

Monitoring and reporting requirement focus on monetary spending

Unequal geographical distribution of projects

9

REQUIRED NEXT STEPSStimulate communication between project developers, development practitioners & academics & local government

Exchange experiences and proposed strategies for socio-economic development

Develop shared vision for low-carbon community development

Develop resources to support developers

Influence national and international policy making with these insights

10

identify needs of surrounding

communities in 50km radius

formulate strategies on how such needs

could be met

provide list of enterprises

earmarked for development

give an indication of programmes that

will be implemented with these enterprises

OPPORTUNITY AND CHALLENGE FOR DEVELOPMENT

Up to developer to determine the impact of this spending!

11

IT COULD GO EITHER WAY…

12

CREATING A SUCCESSFUL SOCIO-ECONOMIC DEVELOPMENT PROGRAMME: KEY CONSIDERATION AND FACTORS

Pay attention to the “hardware” as well as the process - schools, clinics, vegetable gardens and small businesses are as important as where the community is in its own process of development

Sustainability into the future is essential – social, economic, ecological – notion of

sufficiency is important

Inclusive – create a space for all to come to the table as equals; share of responsibility and

rewards/benefits

COMPLEXITY OF DEVELOPMENT

Invest in relationship – engage through relationship

Build on community assets – land, skills, knowledge, money, talents, experience, etc.

Ensure ownership and commitment

Clarify and manage expectations of different role players – expectations can cause conflict

Establish channel of communication – clear system to allow engagement

Engage with leadership and power structures

ENGAGEMENT WITH COMMUNITY

Community is diverse – different groups and competing interests, power bases

Spread the financial gains/benefits

Create a formal consultative structure or mechanism

A presence in the community helps (e.g. community liaison person)

Integration of interventions (NDP, IDP, etc)

Short-term economic benefits (important for ownership and commitment)

Employment of local people and source services locally

CONSIDERATIONS

Establish systems for monitoring, reporting and accountability

Financial oversight (an ethical tone)

Develop capacity for administration/management of the trust

Clear beneficiary parameters

Support what exists (community projects and structures for community-led development)

Legitimate representatives

Ownership and commitment

COMMUNITY TRUST

THANK YOU

Holle Linnea Wlokas ([email protected]), Louise Tait ([email protected])www.erc.uct.ac.za

Nomvula Dlamini ([email protected])www.cdra.org.za