Department of Transport and Public Works Expanded Public Works Programme (EPWP)

1. Department of Transport and Public Works Expanded Public Works Programme (EPWP) Directorate: Provincial Coordination National Parliament: Portfolio Committee Meeting – 3 March 2010

2. EPWP: Overview Provincial Mandate: Strategic Directive Targets and Achievements (3rd quarter) Key Challenges Conclusion 2 Outline of presentation …

3. EPWP: Overview 3 “The nation will recall that during the 2009 SONA, I announced that the EPWP would create 500 000 work opportunities, by December 2009. Let me reiterate that these are not jobs created in the mainstream economy. These are job opportunities created to provide unemployed people with an income, work experience, and training opportunities” (President, Jacob Zuma: SONA, 11 February 2010) Premier, Helen Zille reminded us in the SOPA on 19 February 2010 that: “In the opportunity society, the state has a duty to do for people what they cannot be expected to do for themselves. In an opportunity society, those who take responsibility for their lives and use their chances flourish. They understand that taking control of their own lives is infinitely preferable to a lifetime of dependency on the state.”

4. 4 Background • Endorsed by National Cabinet – November 2003 • As one of government’s initiatives to half unemployment and poverty by 2014 • Aim: bring the unemployed into a temporary working environment during which time they’ll obtain skills, gain work experience and receive a stipend • To enhance their chances of future employment and or trigger their “entrepreneurial spirit” • Phase 1: 2004 – 2009 with a national set target of 1 million work opportunities (achieved during 2008 – 1 yr ahead of schedule)

5. To create 4,5 million work opportunities (equivalent to 2 million FTE’s) for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services. Phase 2:

6. Comparison between phase 1 and phase 2 of EPWP Source: EPWP Consolidated Programme Overview: Phase 2 (NDPW, January 2009)

7. Make creation of paid work the primary objective of the programme Locate clear political and administrative accountability for EPWP work creation targets across all spheres of government Align EPWP outputs with the core mandates and programmes of implementing public bodies Provide fiscal incentives to accelerate scaling up of EPWP outputs across all spheres of government Organize non-state capacity to deliver additional EPWP work opportunities On 17th February, Mr Pravin Gordhan (Minister of Finance) called on government to, “…again use this remarkable national capability to energetically and urgently address the problems of jobs, growth and poverty.” He then confirmed governments commitment to the EPWP by allocating an estimated total of R52 billion for various EPWP projects over the next 3 years and indicated that this allocation includes an additional R2.5 billion aimed largely at rural areas that will support labour-intensive projects in the social, non-state and environmental sectors. (Budget Speech, 17 February 2010 Critical Success Factors: Phase 2

8. Incentive Grant • The EPWP incentive is based on paying all public bodies that create work above a minimum threshold for the EPWP target group an incentive of R50 per person day of work created. ( Rural Municipalities have no minimum threshold). • Infrastructure - 09/10 and roll out to other sectors in 10/11 • Eligible public bodies that want to participate in the incentive will enter into an agreement with National DPW • While indicative performance targets and incentive amounts are set for each eligible public body, they will only be able to claim the incentive upon proving that work has been created • Basis for measuring EPWP performance • Number of FTE’s per million Rand of infrastructure budget • Each public body ( apart from rural municipalities) must meet a minimum eligibility threshold before they can start accessing the incentive • The incentive is not paid out for work created below the eligibility threshold, but is paid for all work created above this threshold

9. Eligibility: In order for provinces and municipalities to become eligible for the incentive they must: Report to National DPW on the EPWP ( 07/08 report used to calculate incentive amounts for the 09/10 financial year - infrastructure). Meet minimum employment creation targets based on their available budgets Meet equity targets for number of youth, women and disabled EPWP workers Agreements: Eligible public bodies will enter into agreements with National DPW which will specify: Targets to be met by the public body Amounts that can be claimed by the public body for reported EPWP work created Reporting and verification and audit requirements through the EPWP Management Information System EPWP workers may not be paid less than R50 per day Appropriation of funds Eligible public bodies should incorporate the incentive allocation into their budgeting and planning process but take into account that payment by National DPW will occur quarterly, after employment has been created

10. Department of Transport and Public Works – responsible for management of EPWP as a Lead Intervention as identified under the Provincial Growth and Development Strategy (PGDS) mandated to drive, coordinate and support: institutionalisation planning implementation compliance monitoring and reporting Provincial: Mandate

11. Background In response to the lessons learned during EPWP Phase 1 and the challenges set by the renewed approach of Phase 2 the Chief Directorate: EPWP and the Chief Directorate: Policy Implementation in the Department of the Premier developed a Strategic Directive to effect its mandate to drive, coordinate and support the institutionalizing, planning, implementation and reporting of EPWP in the province. (Approved by Provincial Cabinet on 2 September 2009 Status: Implementation in progress) Strategic Directive: EPWP Lead Intervention

12. Key objectives Provide a planning platform for EPWP per sector with a key output being a sector implementation plan; Drive accountability and accurate reporting per department and municipality on a monthly basis; Develop and document best practice; Commission relevant research, and Recommend and implement regulatory framework for Provincial EPWP Implementation Strategic Directive: EPWP Lead Intervention

13. Expanded Public Works Lead Intervention Functional Management Framework Provincial Cabinet PREMIER Steering Cabinet Committee PREMIER Economic Cabinet Committee Provincial Ministers Ministerial Top Management Meeting Minister of Transport and Public Works Departmental Senior Management Meeting Head of Department of Transport and Public Works EPWP Steering Group Chair: Assistant Executive Manager: Expanded Public Works Programme CD: Policy Implementation Support: (DotP) Secretariat: CD: EPWP Non-State Work Group Chair: To be determined Infrastructure Work Group Chair: Executive Manager: Client & Regional Services Social Work Group Chair: Departmental Representative:- Department of Social Development. Environmental and Culture Work Group Chair: Departmental. Representative Department of Environmental. Affairs & Development. Planning Members Internal & External Stakeholders EPWP Steering Group

14. Provide a platform: where provincial government and its stakeholders, where applicable, can deal with the technical aspects of all cross-cutting issues as assigned to the Economic Cabinet Committee; Serve as planning platform: where representatives from the relevant National-, Provincial Departments, municipalities and its stakeholders can be brought together in a co-operative planning and implementing partnership around specific issues, within the context of its particular expertise and/or functional contributions to engage in multi-year programme design; Create an opportunity for co-operative planning to enhance the concept of public private partnerships; Ensure that the necessary structures are in place and funds available to manage the planning, implementation and monitoring of projects; Formulate a plan to meet job creation targets and identify EPWP projects; Ensure that all Memoranda of Agreement are entered into; Source document: ( Strategic Directive: EPWP Lead Intervention – approved by Cabinet - 2 Sept 2009) Provincial Steering Work Group

15. Provincial Steering Working Group ConstituencyPortf Comm 020310\Steering Group Constituency.doc

16. Championing the EPWP in the sector Liaison with other departments and stakeholders in the sector In consultation with the other public bodies in the sector, producing a sectorial plan to; Identify areas for expansion of EPWP approaches Set targets for expansion Describe how the expansion is going to be achieved Facilitating the meeting of common needs in the sector (e.g. sectorial training and qualifications frameworks, sectorial guidelines) Monitoring implementation against the sectoral plan; Linking EPWP training to exit strategies aligned to growth areas as identified through the MEDS/LEDS; Producing sectoral progress reports for the Steering Group as directed; and Appoint and / or co-opt additional members as and when required Sector Working Groups

17. Working Group Constituency Portf Comm 020310\Work Groups.doc

18. Communicate EPWP Targets, prescribes within the sector (in line with national and provincial guidelines) Coordinate the development of the sector implementation plans Coordinate the Sector specific input towards the development of a Provincial Communication plan Compilation of a narrative monthly / quarterly report reflecting activities within the sector Facilitate an Annual Report on the Sector Implementation Plan Manage the research and analysis of programmes and projects as requested by the working group Monitor the roll-out of the Sector Implementation plan Coordinate the provision of professional, technical and administrative guidance to the Working Group, as required Ensure interventions are initiated and implemented Secretariat: EPWP Provincial Coordination

19. EPWP Provincial Institutional Framework

20. Targets and Achievements (3rd Quarter) Table 1: Targets per Sector for the Western Cape (2009-2014) Targets per Municipality (2009-2014) Source: EPWP Phase II Business Plan Draft 1 January 2009

21. Targets for eligible implementing bodies Table 2: Incentive Grant Allocations and Targets Source: 2009 DORA (also see notes below) Notes: - Only Infrastructure eligible for incentive 10/11 (one Provincial Department and seven municipalities) 2The “0” eligibility threshold target is only applicable to rural municipalities. Rural municipalities are encouraged to create work opportunities and are able to claim against the indicative amount once FTE’s are created and reported.

22. 3rd Quarter Performance against targets (Cumulative 1 April – 31 December 2009) The following tables illustrate the performance per sector: Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010) • Notes: • Provincially 97% of the annual performance target was reached at the end of 3rd quarter • Portf Comm 020310\Sector Project Information.doc

23. The following tables illustrate the performance per eligible municipality: Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010) • Notes: • Municipal financial year starts 1 June 2010 (National 2nd quarter) • Overall performance = 62% of annual performance target was reached after the 2nd quarter (50% of time)

24. Incentive Grant Payouts: National Financial Year Infrastructure Sector Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010) Notes: 1DTPW – overall on track with performance (Roads Infrastructure and Public Works performance) 2Municipal financial years not aligned to National (municipal 1st quarter – National 2nd quarter) Notes

25. EPWP 3rd QuarterOverall National Consolidated per Province..\REPORTS\0910\Portf Committee 020310\3rd Quarter Audited Report 2010.xls

26. Key Challenges

28. Ongoing awareness and advocacy Provincial Steering Group established (23 March 2010) Sector Working Groups operational (as per Strategic Directive) Increase support to municipalities Identify key stakeholders for expansion, exit strategies (SETA’s, private sector, non governmental organizations, etc) Province has potential to exceed National targets “None of us can rest or sleep peacefully until every South African can say, I can see a better future. I can find a job. I can learn a skill.” (President, JG Zuma) Conclusion

29. Enkosi Thank You Dankie