Table of Contents

1. PRESENTATION ON DPW STRATEGIC PLAN AND BUDGETTOTHE SELECT COMMITTEE ON PUBLIC SERVICES 04 MAY 2010 1

2. Table of Contents • Minister’s Overview • Strategic Context: • MTSF Priorities • DPW Strategic Goals • Outcomes • DPW Programme Structure • Public Works Branches • Key Branch Initiatives • Challenges • Interventions • Public Entities reporting to Public Works • Budget 2

3. Minister’s Overview In the 2010 to 2013 MTEC period, it is required that the Department should: • Review, reshape and rejuvenate; • Implement the New Growth Path, • Focus on the Core, • Advise on the implication of the concurrent function of DPW (Schedule 4 of the Constitution). • Review, reshape and rejuvenate by ensuring: • Finalization of 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. 3

4. 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. 4

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 ! 5

6. Minister’s Overview • EPWP continued:4,5m job opportunities; R5.2bn MTEF incentive allocation for various projects and R2,5bn to support labour-intensive projects in the social and environmental sectors. Beneficiary of Green Strategy provided in IPAP II. • Agrement SA: 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 6

7. 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 and 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, an • Building a developmental state, including improvement of public services and strengthening democratic institutions. 7

8. 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

9. Strategic Context: Outcomes From the twelve outcomes approved by Cabinet in the January 2010 Lekgotla to be used by government to track the impact of programmes, the following four (4) outcomes were selected by DPW: • 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

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

11. 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 11

12. KeyBranch initiatives • Asset Investment Management Branch: • Enhancement of Asset Register, • Compilation of SLAs and SDS, • Facilitation of completion of User Asset Management Plans, • Compilation of Custodian Asset Management Plans, • Implementation Programmes: Planned Maintenance; Capital Works and Leasing, • Property Performance Standards, • Energy and water efficiency Programmes, • Rehabilitation of unused and underutilized state-owned buildings. • Accessibility of public buildings to people with disabilities, • Valuations and NIMS. 12

13. KeyBranch initiatives • Operations Management Branch: • Ensures implementation of acquisition, construction, maintenance and property management of infrastructure for the Department of Public Works and Client Departments, through 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, 13

14. KeyBranch initiatives • Refurbishment of the vacant HG de Witt building, • Feasibility studies to identify & inform the rollout of the program to other towns. • Construction of 598 projects: capital (R337m), maintenance (R142m) & recoverable projects (R1b), • SA embassy Nigeria, Tzaneen prison, Waterkloof runway, RAMP projects. • Updating of technical norms & standards for design & construction of projects, • Site identification & clearance for the development of projects, • Development of Green Building and sustainability principles • Dolomite risk management to inform planning and remedy sinkholes. 14

15. KeyBranch 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. 15

16. KeyBranch initiatives • Expanded Public Works Programme Branch: • 4,5m 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. 16

17. EPWP Work Opportunity targets per Sector The infrastructure sector, has the biggest MTEF allocation from NT: R846bn opportunities exist for the EPWP to upscale further. 17

18. EPWP Work Opportunity targets of Government 18

19. KeyBranch 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, • Expropriation Act 19

20. Key Branch initiatives • Finance and Supply Chain Branch: • 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. 20

21. KeyBranch initiatives • Corporate Services Branch Projects: • Enabling IT Systems , • Human Resource Management Plan, • Compliance with NIA requirements, • Implement new Disability Strategy. 21

22. Key branch initiatives • The strategic management unit: responsible for: • 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, . 22

23. 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 other two spheres of government. 23

24. Key branch initiatives • Internal Audit responsible for: • Risk Management assurance, • Controls and Governance Processes, and • Fraud awareness and Investigations 24

25. CHALLENGES • Devolution of Budgets to Clients, • Scarcity of Built Environment skills, • Insufficient allocation of funds for Occupation Specific Dispensation (OSD), • Government buildings require significant rehabilitation, • Vesting (registration) of state immovable assets. 25

26. INTERVENTIONS • Devolution of Budgets to Clients: • Stakeholder meetings with National Treasury and Client Departments to agree on placement of ring fenced client budgets onto DPW allocations to enable improved service delivery. • Insufficient allocation of funds for Occupation Specific Dispensation (OSD), • Prioritization of Occupation specific Dispensation (OSD) • Government Buildings require rehabilitation: • Development and approval of a funding model • Vesting (registration) of state immovable assets: • Implementation of the National Vesting Plan by all state custodians 26

27. 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) 27

28. Un-Audited Financial Performance for the Year Ended Mar 2010 28

29. Financial Performance per Programme 29

30. Devolution of Property Rates expenditure as at 28 February 2010 30

31. Challenges and Solutions on the Devolution of Property rates • Committee established – HOD’s, SALGA, NT, COGTA & DPW • Funding Model • Interest charges • Inadequate capacity within Municipalities & Provinces • Prescription periods • Property rates on government property • Municipalities - Billing systems – Delays in invoicing 31

32. MTEF Allocation 32

33. Breakdown of the Additional funding & Adjustments to Baseline 33

34. Budget Per Programme 34

35. Conditional Grants & Specifically & Exclusive Appropriation 35

36. Breakdown of the Infrastructure Budget 36

37. Devolution of Property Rate and Taxes Grant to Provinces 37

38. Financial Performance & New Budget Allocation Client Capital budget 38

39. Thank you 39