CHALLENGES FACED IN THE DESIGN AND
IMPLEMENTATION OF SOCIO-ECONOMIC
DEVELOPMENT PLANS
Holle Linnea Wlokas (holle.wlokas@uct.ac.za), Louise Tait (louise.tait@uct.ac.za)
www.erc.uct.ac.za
Nomvula Dlamini (nomvula@cdra.org.za)
www.cdra.org.za
ENERGY, POVERTY AND DEVELOPMENT
GROUP IN THE ENERGY RESEARCH CENTRE
Research group
•
•
•
•
Low-carbon development and poverty
Poverty and mitigation (CDM, NAMA, etc.)
Clean energy for low-income households
Social implementation of technologies
Worked alongside project developers on economic development
requirements of RE IPPPP
• 20 projects all over the country
2
Academic reflection & preparing future work with
partner organisations like CDRA
OBJECTIVE OF THE PRESENTATION
Raise awareness about opportunities and challenges
associated with design and implementation of SED and ED
elements from a community development perspective.
CONTENT
1. Review of economic development elements
in RE IPPPP
3
2. Creating a successful socio-economic
development programme: key
consideration and factors
PROJECT SELECTION
30 %
70 %
Price
Economic
Development
Source: South African Department of Energy
Weighting
25%
25%
15%
5%
10%
5%
15%
100%
30 points
4
7 Economic Development Elements
Job Creation
Local Content
Ownership
Management Control
Preferential Procurement
Enterprise Development
Socio-Economic Development
Total
Total points
SocioEconomic
Development
Enterprise
Development
Enterprise
Development
• 0 - 0.6% of total
revenue
Job
Creation
Number of Citizens from Local
Communities employed
• 12-20% of total number of
RSA Based Employees
Economic
Development
for Local
Communities
Ownership
Shareholding by Local
Communities
• 2.5- 5.0% of total
shareholding
• Or entire ownership
requirement of 1230%
5
Socio-economic
development
interventions
• 1 - 1.5% of total project
revenue
REQUIREMENTS
Socio-economic
development
1 to 1.5% of revenue
0 to 0.6% of revenue
identify needs of
surrounding
communities in
50km radius
provide list of
enterprises
earmarked for
development
formulate strategies
on how such needs
could be met
give an indication of
programmes that
will be implemented
with these
enterprises
6
Economic
Development
Evaluation
• Compliance with
threshold
Enterprise
development
UNEQUAL GEOGRAPHICAL DISTRIBUTION OF
PROJECTS
Geographical distribution
of preferred bidders
(1st and 2nd round)
7
Population 1mil
THE CHALLENGES
Lack of development expertise in project selection
committee
• Threshold is the only evaluated criteria
Lack of guidelines for design and implementation
of socio-economic and enterprise development
Monitoring and reporting requirement focus on
monetary spending
8
Unequal geographical distribution of
projects
REQUIRED NEXT STEPS
Stimulate communication between
project developers, development
practitioners & academics & local
government
Exchange experiences and proposed
strategies for socio-economic
development
Develop shared vision for lowcarbon community development
Influence national and international
policy making with these insights
9
Develop resources to support
developers
OPPORTUNITY AND CHALLENGE FOR
DEVELOPMENT
Up to developer to determine the
impact of this spending!
formulate strategies
on how such needs
could be met
provide list of
enterprises
earmarked for
development
give an indication of
programmes that
will be implemented
with these
enterprises
10
identify needs of
surrounding
communities in
50km radius
11
IT COULD GO EITHER WAY…
12
CREATING A SUCCESSFUL SOCIO-ECONOMIC
DEVELOPMENT PROGRAMME:
KEY CONSIDERATION AND FACTORS
COMPLEXITY OF DEVELOPMENT
Pay attention to the “hardware” as well as the
process - schools, clinics, vegetable gardens and
small businesses are as important as where the
community is in its own process of development
Sustainability into the future is essential –
social, economic, ecological – notion of
sufficiency is important
Inclusive – create a space for all to come to the
table as equals; share of responsibility and
rewards/benefits
ENGAGEMENT WITH COMMUNITY
Invest in relationship – engage through relationship
Build on community assets – land, skills, knowledge, money,
talents, experience, etc.
Ensure ownership and commitment
Clarify and manage expectations of different role players –
expectations can cause conflict
Establish channel of communication – clear system to allow
engagement
Engage with leadership and power structures
CONSIDERATIONS
Community is diverse – different groups and competing interests,
power bases
Spread the financial gains/benefits
Create a formal consultative structure or mechanism
A presence in the community helps (e.g. community liaison
person)
Integration of interventions (NDP, IDP, etc)
Short-term economic benefits (important for ownership and
commitment)
Employment of local people and source services locally
COMMUNITY TRUST
Ownership and commitment
Legitimate representatives
Support what exists (community projects and structures for
community-led development)
Clear beneficiary parameters
Develop capacity for administration/management of the trust
Financial oversight (an ethical tone)
Establish systems for monitoring, reporting and accountability
THANK YOU
Holle Linnea Wlokas (holle.wlokas@uct.ac.za),
Louise Tait (louise.tait@uct.ac.za)
www.erc.uct.ac.za
Nomvula Dlamini (nomvula@cdra.org.za)
www.cdra.org.za