BUILDING OF CLASSROOMS AND THE HOSPITAL REVITALISATION PROGRAMME

1. BUILDING OF CLASSROOMS AND THE HOSPITAL REVITALISATION PROGRAMME Presentation to JBC 23 May 2005

2. Introduction (1) • Funding for education and health infrastructure programmes is from: • Provincial equitable shares directly to provinces • Conditional grants directly to provinces or through DOE or DOH • National DPW is not involved in this funding • Provincial Education and Health Departments budget for, and plan infrastructure expenditure • Provincial DPW’s implement the plans set by the Provincial Education and Health Departments

3. Introduction (2) • In some provinces, Service Level Agreements (SLA) are in place between PDPW, PDOE and PDOH • In Gauteng, Education has its own works section (changing) • In some provinces, PDOE and PDOH use other implementation agents such as the IDT

4. Introduction (3) • Funding between provincial DOE, DOH and DPW is arranged either by: • Cost recovery or • Transfer of budgets • Accounting officers of provincial DOE, DOH and DPW are accountable to the provincial legislatures for this expenditure • Accounting officer of national DPW is not accountable for this expenditure

5. Introduction (4) • National Treasury released interim figures on 17 May indicating under-expenditure on provincial capital budgets for 2004-2005 • Capital budgets includes other items in addition to infrastructure • National Treasury still to release final provincial infrastructure expenditure figures for 2004-2005

6. Budgets and expenditure for classrooms (1) • For education infrastructure, over the past two financial years • Up to 40 % expenditure happens in the 4th quarter • Low expenditure at end of December not a true reflection of final expenditure • In 03/04 financial year, expenditure in Dec was 60 %, but jumped to 92 % by end of April • Expenditure trends illustrated in the next two slides:

8. Gauteng example

9. Budgets and expenditure for classrooms (2) • Inferences from the financial data: • Under-spending is not necessarily the fundamental problem, although the uneven rate of spending is of concern • Spending the budget allocation does not necessarily mean no children under trees; there are other causes which contribute to this problem

10. Budgets and expenditure for classrooms (3) • Planning for classrooms complicated by: • Migration of learners occurs between • Provinces, and • Schools, within provinces • Migration leads to late signals of demand • Overall we have stock: hence mergers and even closures of schools

11. Problems with delivery of classrooms (1) • Lack of skills in Departments • Not enough communication between DOE and DPW at provincial level • Insufficient joint planning • Lack of clear SLAs defining roles and responsibilities • Inadequate business processes at all stages of the supply chain cycle

12. Problems with delivery of classrooms (2) • Consequences of delivery problems: • Late submission of plans by provincial DOE to provincial DPW • Delays in tendering processes in DPW • Late payment of contractors by either DPW or DOE • Inadequate management of contractors by DPW

13. National improvement initiatives (1) • Joint task team of national DOE and DPW established to improve provincial education infrastructure delivery • Established by the Ministers and DGs • Joint Task Team has produced action plan to address problems

14. National improvement initiatives (2) • Infrastructure Delivery Improvement Programme (IDIP): • Coordinated by National Treasury (NT) • Implementation supported by CIDB and DBSA • National steering committee with NT, DPW, DOH and DOE • Generic “toolkit” for managing infrastructure delivery completed in October 2004 • Pilot phase in selected provincial DOE and DOH completed December 2004 • Now being rolled out to all provincial DOE, DOH and DPW, to be completed by December 2006 • Involves deployment of technical teams to provinces to introduce improved delivery management processes (the toolkit) and train staff on improved processes

15. National improvement initiatives (3) • IDIP aims to improve: • Planning for infrastructure programmes by DOE and DOH • Definition of roles and responsibilities of DPW, DOE and DOH • Tendering processes and contract documentation used by DPW • Management of contractors by DPW • Speed of delivery (at all stages of the supply chain) • Quality of work by contractors

16. National improvement initiatives (4) • Other work of the Joint Task Team: • Improve maintenance and facilities management at schools (DOE working with CSIR on national policy, to be completed by December 2005) • Put in place modernised national standard designs and norms (DPW and DOE working with CSIR, to be completed by November 2005) • Ensure that the provinces which still have children under trees address this issue by March 2006, by reprioritising budgets

17. Conclusions • IDIP will address both health and education infrastructure planning and delivery problems • Success relies on participation by provincial departments • National DPW working with national DOE to address delivery problems at provincial level, through joint task team • DPW to take similar approach with national DOH