Compiled by Strategic Management Unit

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SUMMARY:DPW 2009/10 – 2011/12 STRATEGIC PLAN

PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS

Compiled by Strategic Management Unit

09 June 2009

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STRATEGIC CONTEXT

The 2009/10 – 2011/12 Strategic Plan of the department is informed by thefollowing government strategic documents:

• Current Medium Term Strategic Framework – annually revised.

• Fifteen Year Review – outlined the performance of government.

• 2009 Development Indicators – published annually by the Presidency.

• Medium Term Budget Policy Statement and the Budget vote.

• Millennium Development Goals.

• May 2009 Cabinet Lekgotla decisions


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Public Works Strategic Goals:

• Provide strategic leadership for effective and efficient asset management.

• Establish an enabling environment for the creation of both short and sustainable work opportunities for the unemployed.

• Contributing to the National Goal of Job Creation and Poverty Alleviation.

• Transformation and regulation of the construction and property industries to ensure economic growth and development.

• Ensure effective and efficient implementation of project management in the construction and property management environments .

• Effective stakeholder management for enhanced implementation of the Department’s mandate.

• Ensure effective corporate governance processes and sound resources management.

• Improved service delivery to meet clients expectations.


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Key Policy Priorities of Government: MTSF

Strategic priority 1: Speeding up growth and transforming the economy to create decent work and sustainable livelihoods

• Minimise the impact of economic downturn on the country’s economic base (productive capacity, jobs, poverty alleviation measures)

• Transform the economy and build up national economic capability to accelerate growth to an average rate of 5% by the 2nd half of the mandate period

• Create jobs on a massive scale

• Strengthen competitiveness and promote SMMEs as cornerstone for growth of the economy and creation of self employment and other work opportunities

Public Works response / Programmes:

- EPWP Phase 2

- National Contractor Development Programme

- Develop and implement a Construction Strategy

- Implement Construction Charter


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Key Policy Priorities of Government: - Continued

Strategic priority 2: Massive programme to build social and economic infrastructure

• To reach a Gross Fixed Capital Formation ratio of 25% of GDP by 2014, Government will ensure sustained public investment growth of at least 10% over the medium term.

• Creatively access resources from various sources to continue with economic infrastructure programme in a manner that supports growth and employment creation, at the same time ensuring that the infrastructure strategy is planned for and implemented in an integrated manner.

• Continue programmes to provide and maintain health, education, library, recreation and other social infrastructure

Public Works response / programmes:

• DPW is implementing eradication of mud schools and unsafe structures

• Explore opportunities to leverage the R787 billion to further upscale EPWP

• Through National Infrastructure Maintenance Strategy DPW will focus on public infrastructure


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Key Policy Priorities of Government: MTSF (continue)

Strategic priority 3: Comprehensive development strategy linked to land and agrarian reform and food security

• Aggressive implementation of land reform policies: Overhaul land reform and ensure that strategically located land is released for the most appropriate use without any delay.

• To improve service delivery and ensure quality of life in rural areas, Government will increase investment in the delivery of services through various programmes in education. health, housing, water, sanitation and energy

• Develop physical infrastructure in rural areas to support social and economic development (storage facilities, roads for transportation of produce, schools, health, etc)

• Revitalization and development of rural towns to serve as service centres for rural economies.

Public Works response/ programmes:

• As a custodian of the state immovable assets, Public Works will:

Prioritize rural areas using its asset foot print Align disposal policy to support rural development and land reform Through inner-city programme – rural areas will be prioritized.


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Strategic priority 4: Strengthen our skills and human resource base (major renewal of our skills and education system

• Ensure that training and skills development initiatives in the country respond to the requirements of the economy, rural development challenges and social integration

Public Works response/ programmes:

• Public Works has identified a number of HRM initiatives namely: Learnerships Internships

• Review of Built Environment Policy will enhance skills needed in construction and property sectors.


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Strategic priority 6: Intensifying the fight against crime and corruption • Establishment of a border management agency to manage migration, customs and

land borderline control services and to efficiently coordinate services of other departments in the ports of entry

• Urgently combat the scourge of corruption in the public and private sector and in society in general

Public Works response/ programmes:• Continue to implement the Border Control Coordinating Committee decisions.• Accelerate provision of correctional facilities and police stations.


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Strategic priority 8: Pursuing African advancement and enhanced international cooperation

• Continued prioritization of African continent• Improving political and economic integration of the SADCPublic Works response/ programmes:• Working with DFA, currently building to PAP and Embassies to advance the

African agenda. Strategic priority 9: Sustainable resource management and use• Encourage sustainable resource management by focusing on the transition to

renewable energy alternatives and energy efficiency• Sustainable water use and preserving quality of drinking waterPublic Works response/ programmes:• Energy efficiency;• Water efficiency;• Design and development of green buildings.


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Strategic priority 10: Building a developmental state including improvement of public services and strengthening democratic institutions

• Improving the capacity and efficacy of the state: Strengthen the capacity for medium to long term planning and M&E at the centre of government; integrate SOEs into planning processes; strengthen HRM&D components in departments; etc

• Improving the delivery and quality of public services • Entrenching a culture and practice of transparent, honest and compassionate public

servicePublic Works response/ programmes:• Public Works has the following entities reporting to it. Planning within the

department is done jointly with these public entities• M & E function has been established. • Utilize IDIP tool and GIAMA to realise the objectives of the developmental state.


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Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year

Implementation of Government Immovable Asset Management Programmes:

• Valuations and condition assessment of all state properties• Energy Efficiency and Water Efficiency• National and Provincial Implementation of the Government Immovable Asset

Management Act (GIAMA• Operational Implementation of the GIAMA Guidelines• Operational Implementation of UAMP and CAMP.

• The implementation of the Construction and Property Charters.


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Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year

Implementation of Government Immovable Asset Management Programmes:

• In relation to the Property Charter, the implementation of the Property Reform Strategy.

• Asset Register Enhancement Programme for properties under the custodianship of National Government Immovable Assets.

• HRD initiatives in the built environment sector.

• The National Contractor Development Programme: as one of the initiatives to transform the construction sector.


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Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year (continue)

Departmental Strategic Programme:• Refurbishment and maintenance of Land Ports of Entry (BCOCC project), as

part of 2010 initiatives (Lebombo, Skilpadshek, Golela) and enhancement of border security.

• Building of Pan African Parliament (PAP).

• Implementation of the National Infrastructure Maintenance Strategy (NIMS).• Inner-City Regeneration- renovation of public buildings.

Expanded Public Works Programme (EPWP):

• Implementation of EPWP – Phase 2. Some of the programmes are:

.


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Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year (continue)

• Municipalities reporting on expanded public works programme: targets and support provided by Public Works;

• New job opportunities created through eradication of mud and inappropriate structures and targets set for the EPWP;

• Environmental Rehabilitation;

• Implementation of the National Youth Service (NYS) by the three spheres of government.

• Accesibility to National government department buildings for people with disabilities This is a compliance matter.

• Rehabilitation of underutilized and unutilized government buildings.• Ups-caled home based care and early childhood development.• Vuk’uphile programme.


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DETAILED PRESENTATION OF THE STRATEGIC PLAN


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Key Programmes:

• Administration.

• Provision of Land and Accommodation.

• National Public Works Programme.

• Auxiliary and Associated Services.

• Property Management and Trading Account.


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Asset Management Branch:

Key deliverables over the medium-term include the following:• Improve service delivery (Service Delivery Standards).• Enter into Service Level Agreements with clients and monitor implementation

effectively.• Accelerate delivery and improve planning for Capital Works and

Maintenance.• Marketing of DPW mandate and policies to client departments.• GIAMA implementation through:• - updating of User Asset Management Plans (UAMS).• - development of Client Asset Management Plans (CAMPS).• - develop structure for GIAMA and NIMS.• Ensure that all land ports of entry are well maintained and have adequate

facilities.


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Asset Management Branch Projects: - Continued

• Assess, monitor and update Asset Register regularly.• Implement Property performance standards and guidelines.• Implement energy and water efficiency measures in government buildings.• Reduce backlog on government building not accessible to people with disabilities• Implement disposal policy. • Accelerate implementation of rehabilitation of unused/ underutilized buildings• Ensure that Capital Works and maintenance budgets contribute towards EPWP

targets.• Implement Option Analysis.• Undertake valuation of state property portfolio.


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Inner City Regeneration Projects:

• Assessment of Spatial Development Frameworks for municipalities and User Asset Management Plans (UAMPS) for client departments to determine needs.

• Develop option analysis for client departments and agree on sites identified for accommodation purposes.

• Create precincts for client departments accommodation needs on identified sites and improve on site acquisition.

• Develop and implement building programme for client departments’ construction and maintenance project.


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Inner City Regeneration Projects: - Continued

• Advance provision of job opportunities for youth, women and the disabled as well as BEE contractors.

• Develop and implement facilities management packages for client departments.

• Capacity building and development of project managers.


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Operations Branch Projects:

• Roll out Contractor Incubator Programme at 30% of construction budget.

• Identify and implement projects above R100m for sub-contracting to BEE contractors.

• Increase number of BEE entities to participate in the property industry through PIP.

• Improve prioritization of unplanned maintenance.

• Finalize disposal strategy as part of GIAMA requirements.

• Continuous update of Asset Register to enhance quality of data in PMIS in consultation with Asset Management.

• Improve efficiency on rental debtors management.

• Rehabilitation of state buildings as identified by Asset Management.


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EPWP Branch Projects:

• Manage and monitor implementation of incentive conditional grant through DoRA.• Design and implement accountability and performance management mechanism for

all spheres of government.• Revise current Management Information System (MIS) to take into account the

conditional grant interface.• Review M&E framework for implementation by all stakeholders.• Intensify marketing of EPWP.• Review and redefine the programme management role for EPWP units, sectors and

spheres of government.• Develop and implement training funding strategy with DoL, SETAS and NT.• Develop and facilitate the implementation of a generic training policy (in

collaboration with DoL).


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EPWP Branch Projects - Continued

• Develop enterprise development best practice for implementation at sub-programme level.

• Review current conditions of employment jointly with DoL to improve ability of EPWP to reach its targets.

• Capacity building for project management implementers.

• Implement Community Works and non-state sector programmes.

• Review and refine methodologies and targets for infrastructure sub-programme.

• Provide support to Provincial Road Departments, public bodies implementing large projects as well as municipalities.

• Implement NYS programme.


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EPWP - Continued

• Support and implement provincial Vukuphile building programme.

• Identify and implement EPWP projects within the DPW infrastructure programme.

• Enhance internal capacity for EPWP

• Identify and explore new areas of expansion.


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Policy Branch:

• Conduct research on construction and property sectors to identify areas where there is a need for intervention.

• Implement functional reporting framework on empowerment in the construction and property sectors.

• Increase number of BEE enterprises the sectors.

• Finalise and implement skills development strategy.

• Implement operational monitoring and evaluation system to assess performance of industries.

• Review legislation governing DPW Public Entities.

• Develop and implement the GIAMA Implementation Plan including operations guidelines.

• Amendment of Expropriation Policy.


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DG’s OFFICE

• Co-ordinate DPW contribution to PoA (ASGISA, MDG as well as Havard research group).

• Capacitate the DPW-wide M&E unit.

• Create awareness of M&E within DPW.

• Monitor operations of business units for improved service delivery.

• Develop working group responsible of M&E comprising of officials at programme level.

• Develop and implement functional web-based M&E system.

• Implementation of DPW Strategic Plan.

• Align DPW programmes with government PoA.

• Ensure alignment between DPW strategic planning and the budgeting processes.


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DG’s OFFICE

• Roll out implementation of Knowledge Management Strategy.

• Establish DPW Knowledge Innovation Centre.

• Develop and implement integrated risk management policy and framework.

• Identify and determine potential areas of socio-economic intervention and optimization.

• Build capacity of the Strategic Management Unit.


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Corporate Services Branch:

• Develop and implement the Corporate Services Framework for improved service delivery.

• Mainstream gender in all programmes of the Department.

• Establish a stakeholder forum to ensure that sector entities mainstream gender and disability.

• Manage relations between spheres of government relating to DPW mandate in terms of relevant Act and existing procedures.

• Provide integrated, holistic business / operational systems in line with the needs of DPW.

• Ensure a reduction in adverse Court orders and litigation risk.

• Manage and co-ordinate international relations by optimizing the impact of bilateral and unilateral co-operation entered into with international partners.

• Implement an integrated HR Plan.


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Finance and Supply Chain Management Branch:

• Improve the Department’s budget management and expenditure control.

• Provide risk management and improved internal controls that will enable the department to maintain a clean audit.

• Provide effective supply chain management services that is responsive to the department’s needs and geared towards promoting BBBEE.

• Create an enabling environment for promoting experiential learning through internship and learnership programmes.

• Enhance compliance with PFMA, PPPFA and the enabling Acts of Entities.

• Provide effective support to entities of the department.


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Insufficiently Funded Programmes

• Roll out of GIAMA to provinces and municipalities

• Energy efficiency

• Valuation of state properties

• Implementation of Property and Construction charters

• NIMS

• Asset Register

• Condition surveys

• Maintenance backlog

• Roll out Inner City Programme to all nine provinces

• Water Efficiency


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PRESENTATION OF THE

2009/10 – 2011/12MTEF


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Budget Allocation 2009- 2012

2009/10 2010/11 2011/12

Baseline 2008/09 4 769 993 5 161 059 5 356 467

Additional Funds Allocated to Baseline

167 137 304 568 680 707

Adjustment to baseline (Efficiency Savings)

(42 321) (163 184) (61 320)

Inflation Adjustment (62 009) (71 505) (81 581)

Additional Funds (EPWP Conditional Grants)

465 200 1 367 800 2 291 100

New Baseline 5 298 000 6 598 738 8 185 373

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The additional funding received was for the following activities:

2009/10 2010/11 2011/12

Compensation of employees 28 085 29 236 30 490

Payments for Capital Assets 49 052 95 332 115 217

Energy efficiency 35 000 75 000 120 000

State function: Inauguration 15 000 - -

Expanded Public Works Program 25 000 50 000 50 000

Infrastructure: BCOCC - - 300 000

Infrastructure: Accessibility 15 000 15 000 15 000

Scarce skills capacity interventions - 40 000 50 000

Total Additional Funding 167 137 304 568 680 707

Less Efficiency & Inflation savings 104 330 234 689 142 901

Net additional funding received 65 807 69 879 537 806

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Breakdown of the inflation savings Programmes 2009/10 20010/11 2011/12

Compensation of employees 5 786 9 136 9 766

Goods and services 51 283 54 878 63 960

Transfers :PMTE Augmentation 4 289 6 495 6 816

CIDB 418 643 666

CBE 170 258 273

SETA (CETA) 16 24 25

Parliamentary Villages 47 71 75

Grand total deduction 62 009 71 505 81 581

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Budget Allocations per Economic Classifications:

Programmes 2008/09

R’000

2009/10 % Increase

2010/11 2011/12

Compensation of employees

828 261 878 680 6% 1 001 104 1 072 544

Goods and service 783 833 973 927 24% 1 002 193 1 164 735

Transfers and subsidies

1 512 706 2 182 230 44% 3 226 499 4 253 029

Buildings and other fixed structure

1 177 102 1 263 063 7,3% 1 368 942 1 695 065

Total 4 301 992 5 298 000 23% 6 598 738 8 185 373

Compensation as a % of the total budget = 16%,15%,13%

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Explanations• Compensation of Employees The compensation of employees allocation is not sufficient to

both filled and vacant posts. With the current allocation of R 887 million it is projected that the department will be over spending with more than R 100 million.

• Goods & Services includes accommodation charges which accounts for almost 40% of the budget

• Transfers & Subsidies includes conditional grants and transfers to entities of the department

• Buildings and other fixed structure relates to funding allocated for capital projects undertaken by the department including the acquisition of land and property.

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Budget Allocation per Programme

Programmes 2009/10 2010/11 2011/12 Average growth % (Nominal)

Prog 1. Administration 777 972 780 984 881 260 6.5%

Prog 2. Provision of Land an Accommodation

3 709 274 4 062 055 4 591 796 7.4%

Prog 3. National Public Works Programme

768 511 1 726 850 2 681 736 13,2%

Prog 4. Auxiliary and Associated Services

42 243 28 849 30 581 5.9%

Grand total 5 298 000 6 598 738 8 185 373 7.6%

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Conditional Grants EPWP Incentive Bonus Allocation

Devolution of Property Rates2009/10

R’000

2010/11

R’000

2011/12

R’000

TOTAL

R’000

EPWP INCENTIVE GRANT 465,200 1,367,800 2,291,100 4,124,100

DEVOLUTION OF PROP RATES

996,538 1,096,192 1,161, 964 3, 254 694

TOTAL CONDITIONAL GRANTS

1,461,738 2,463,992 3,453,064 7,378,794

Systems are in place to ensure effective monitoring and management of the conditional grants as captured in the

DORA.

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Property Management Trading Entity (PMTE)

2009/10 Budget

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Projected Revenue & Expenditure for the PMTE

Revenue R’000

– Accommodation charges 2 546 161– Private leases 2 122 568– Management fees on MS 79 150– Augmentation from NT 608 411

Total Revenue 5 356 290

Expenditure – Maintenance 2 535 242– Private leases 2 122 568– Property Rates (National) 538 600– Cleaning and Gardening 119 780– Admin 40 100

Total Expenditure 5 356 290

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Client Capital for projects undertaken by DPW on their behalf

R’000

• Land Affairs 4 411• Agriculture 15 155• Home Affairs 31 097• Defence 103 732• Arts & Culture 127 958• Justice 386 055• DCS 807 022• SAPS 864 138

Total 2 339 568

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I Thank You

Compiled by Strategic Management Unit

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