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MINISTER OF PUBLIC WORKS PRESENTATION AD HOC COMMITTEE ON COORDINATED OVERSIGHT ON SERVICE DELIVERY 12 MAY 2010. Presentation outline. Introduction Strategic Context of the Department Constitutional Interface with provinces and municipalities Key projects

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  1. MINISTER OF PUBLIC WORKS PRESENTATIONAD HOC COMMITTEE ON COORDINATED OVERSIGHT ON SERVICE DELIVERY12 MAY 2010

  2. Presentation outline • Introduction • Strategic Context of the Department • Constitutional Interface with provinces and municipalities • Key projects • Expenditure on devolution of property rates • Challenges and solutions • Expanded Public Works Programme (EPWP) - Summary of EPWP infrastructure sector performance in municipalities for the 09/10 - Challenges and measures

  3. Introduction • The challenges of service delivery have not gone unnoticed by the Department of Public Works. It is service delivery to deal with both internal and external challenges. • As a provider of government accommodation at national level and leader and coordinator of the EPWP, Public Works has a fiduciary duty to service its client base with distinction. • It is for this reason that the Minister, in the current medium-term period, has directed the department’s senior managers to: • Implement the core competency model and develop skilled and capable personnel. • Create centre’s of excellence – property management, construction management and maintenance management. • Support the developmental state objectives and policy priorities. • Review service delivery models. • Strictly adhere to 30 days payment of invoices. • Skills development across the built environment. uptake of young people in • Role of CIDB and CBE be enhanced. • Role of IDT in delivery of social infrastructure – enhance focus on rural development, poverty eradication; education and health infrastructure; job creation. • EPWP- nominated as a key response to the economic crisis. Strategic Management Unit 12 May 2010

  4. Strategic Context: DPW Strategic Goals The Department of Public Works has six (6) goals: The goals are aligned to the MTSF: • 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.

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

  6. Constitutional interface with Provincial and municipalities • Public Works is an area of concurrent legislative authority listed in Schedule 4 of the Constitution. Both the national and provincial legislatures have legislative competence in relation to the matters listed in Schedule 4. • By its very nature, concurrent competencies have the potential to create conflict. • However, Section 40 and 41 of the Constitution provide for cooperative government and intergovernmental relations to deal with such matters. • Section 100 of the constitution can also be invoked under specific conditions outlined. • The department of Public Works relates with both the provincial and local government spheres within the parameters of the constitution.

  7. Key Public Works Projects Some of the following projects account for the biggest allocation of the budget: • Rehabilitation of unused and under-utilized government buildings. • Accessibility of state-owned buildings. • The asset register. • The National Infrastructure Maintenance Strategy and Plan. • Implementation of the Property Management Trading Entity. • Valuations of the state immovable assets. • The lease portfolio. • Energy and Water efficiency. • The Expanded Public Works Programme.

  8. Public Works Regional offices projects Public Works Projects Continued: • Implementation of the Government-wide Immovable Asset Management Act to local government. Public Works Regional Offices: • Public Works regional offices are mainly involved with provinces and municipalities around two major programmes: • Payment of rates & taxes and municipal services. • The implementation of the EPWP. • The department has established focal points in its 11 regional offices to manage both programmes - interface with the 2 spheres of government on both programmes.

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

  10. Challenges and Solutions • The department of Public Works has identified the following challenges as key, in dealing with municipalities: • No or late billing from the municipalities -Non-receipt of invoices from municipalities compels the department to overspend, paying previous accounts. • No proper systems to conduct reconciliation and verification of accounts. • Lack of capacity to collate data. • Lack of cooperation by service providers and late/non-receipt/reconciliation of invoices. • Lack of coordination amongst various departments within the municipalities. • Accounts sent to wrong addresses. • Municipalities not aware of properties that are vested under them.

  11. Challenges and Solutions Solutions: • Establishment of municipal forums to discuss issues related to rates. • Ongoing interaction and support to municipalities to improve working relations • Co-verification of assets is ongoing. • Expanded Public Works Programme • 4,5m multi-year targets in the various sectors, namely: social; infrastructure; economic; environmental and culture and non-state sector. • Implement Incentive Grant. Solutions • Accountability arrangements in place in the three spheres of government to meet EPWP targets . • Public bodies are being provided with support to report on EPWP • Technical support is being provided to Provincial Departments and Municipalities to enable them identify and implement projects that are labour-intensive - so that the Full-Time Equivalents (FTEs) on which the incentive is paid are increased.

  12. The Expanded Public Works Programme • Expanded Public Works Programme • 4,5m work opportunities targeted in the second phase of the programme in the various sectors, namely: social; infrastructure; economic; environmental and culture and non-state sector. • EPWP is being implemented in the non-state sector) for the first time – strategic partnership with NGOs/CBOS/NPOs. • EPWP incentives have been implemented in all sectors of the EPWP. • Protocol agreements with targets for the 2nd phase of the EPWP have been signed with Premiers of all provinces to ensure accountability for the programme.

  13. Summary of EPWP deliverables in the infrastructure sector for the 09/10 financial year

  14. Summary of EPWP infrastructure sector performance in municipalities for the 09/10 financial year • Over 6.6 Billion was spent on EPWP infrastructure projects in the 09/10 financial year. • Number of work opportunities created in 4th quarter is 134,753 • 162 Municipalities have been engaged in the provision of technical support in 09/10 financial year. • Total incentive payment to municipalities after the 3rd quarter is R114.171m (57%). • 68 Municipalities were eligible to receive incentive grant. • 55 of the 68 eligible municipalities received the incentive payment after 3rd quarter.

  15. Challenges • Lack of Technical capacity in municipalities to implement EPWP projects. • Poor knowledge of labour intensive method of construction.

  16. Measures to address challenges • Continued provision of technical support to municipalities to implement EPWP projects. • Partnerships have been developed with other stakeholders like DBSA(Siyenza Manje programme) to provide support. • Plans are being put in place to train municipal officials in labour-intensive methods of construction.

  17. I thank you

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