Progress Report Towards Eradicating
the Challenge of Student Housing in
Higher Education and Training
Institutions
Portfolio Committee on Higher Education
and Training
10 June 2015
1
Overview
• Background to issues on student housing at
universities
• DHET infrastructure grant support for university
student housing
• Progress on finding additional funding to support
student housing development
• Challenges
• TVET colleges
• Way forward
2
University Student Housing Background
• Ministerial committee appointed to investigate student
accommodation at universities in 2010
• Report showed that 20% or 107 598 students were
accommodated in on-campus accommodation
• Beds shortage in 2010 was 195 815 and this was
projected to increase to a shortage of 207 800 beds by
2013
• Government and universities need affordable and
innovative model for effectively addressing the bed
shortage
• A one size fits all approach will not work as universities
differ
3
University Student Housing Background
• The cost (in 2010 prices) of overcoming the shortage
over a period of ten years is estimated at R82.4 billion,
or R109.6 billion over fifteen years
• Estimates based on cost of R240 000 per bed, and
between 50% and 80% of contact students
accomodated, depending on location and availability of
off campus accommodation translates to a requirement
of approximately R147 billion, with escalations
• However the problem is not simply related to shortages
of accommodation. Current conditions in many
residences are not conducive and backlog maintenance
is a major issue
4
University Student Housing Background
• Based on university estimates, the value of the current
national maintenance and refurbishment backlog is
R2.5 billion
• If existing residence stock is to be modernised to render
the residences ‘fit-for-purpose’, then a further R1.9 billion
is required
• This means that R4.4 billion is required just for the
refurbishment of the current stock without adding a single
bed
• The DHET’s infrastructure programme has prioritised
student housing, as shown on the following slide
5
Infrastructure Grant 2012/13 to 2014/15
Category of
University
Historically
Disadvantaged
universities (HDIs)/
campuses
Universities /
campuses
other than HDIs
All universities
Funding categories
Student housing – upgrading and new
Infrastructure backlog upgrading and new
Student housing upgrading and new
Teacher Training – meeting scarce skills needs
Health sciences – meeting scarce skills needs
Engineering - meeting scarce skills needs
Life and Physical Sciences – meeting scarce skills
needs
Cooperative Projects – partnerships with HDIs
Development of African Languages, Humanities and
Social Sciences
Disability units - upgrading and new
Research infrastructure – well founded laboratories
Project Management Capacity for 12 universities
ICT
Unbundling of Medunsa and est. new university
DHET Monitoring and Oversight
Total
Total allocation
(R'000)
1 412 638
1 114 195
239 136
662 460
442 519
533 780
555 721
134 500
311 654
123 835
74 053
50 000
130 509
210 000
5 000
6 000 0006
Infrastructure funding for student housing
• The Department has funded three cycles of
infrastructure funding since 2007 – 2007/8 to 2009/10;
2010/11 – 2011/12, and 2012/13 – 2014/15
• During the first two cycles a total of R1.3 billion was
allocated to student housing
• Over the third cycle R1.651 billion was allocated to
student housing of which R1.412 billion was earmarked
for HDI universities and campuses
• The third round funding was supplemented by a further
contribution of R700 million from universities themselves
totaling R2.351 billion in the third round
7
Infrastructure funding for student housing
• 3rd Cycle funded +9 000 new beds – a drop in the ocean
compared to the estimated need of 207 800 beds
• Innovative building technologies (IBTs) not yet supported
by government funds due to lack of agreed upon
standards. The CSIR has been appointed by the PICC to
develop these. However, some universities such as the
University of Stellenbosch have used IBTs for residences
• The Ministerial Report recommended that a Policy on
Student Housing be developed to guide the system. The
draft policy was published in the Government Gazette in
April 2012 for public comment. The final policy will be
published by September 2015
8
Progress with respect to additional funding
• Most universities not able to build a large number of new beds
(e.g. 2 000 plus) without a substantial capital contribution
• Engagements held with stakeholders such as PICC, DBSA,
PIC, Treasury, Association for Savings and Investment South
Africa (ASISA) in attempt to find a feasible funding model
• Policy restrictions and challenges makes it difficult to find a
feasible funding model for universities with financial
constraints
• A feasibility study with DBSA to access IIPSA (EU) funding is
currently underway
• The PICC have developed guidelines for procuring IBTs for
student housing - needs to be finalised with the Department
for use by universities and could provide more cost effective
solutions
9
Student Housing at Universities: Challenges
• Funding available (Department and Universities (all))
insufficient
• Developers need guarantees from the Department / institution
• A special purpose vehicle, off balance sheet, has its own
complications. PIC and UFH process was not successful
• DBSA requirements can not always be met and do not offer the
cheapest rates (commercial banks more attractive)
• ASISA cannot provide capital upfront - can only buy a financial
instrument
• Public Private Partnerships (PPPs) not affordable for students,
and University expected to provide guarantees (e.g.
occupancy)
• Balance between affordability for student and meeting
minimum standards
• Social housing cannot be a high profit business
10
TVET Colleges
• 10 120 beds available in TVET colleges for 2014 (i.e.
1.4% of the current students enrolment of 709 000 in
College owned accommodation) 16 133 are in private
accommodation
• Provision of student accommodation for students with
disability is very low and non-existent in some colleges
• Provision of student accommodation in TVET colleges is
inadequate however TVET college campuses are more
accessible and widespread than university campuses accommodation required needs to be determined to
calculate the shortage
• There is no DHET infrastructure grant for colleges
• Affordability a challenge, most students rely on the
NSFAS bursary scheme
11
Way Forward
• A significant proportion of the 2015/16 – 2017/18
university infrastructure funding cycle will be allocated to
student housing and backlog maintenance
• The Minister is holding a Student Housing Symposium
on 22 June 2015 to engage with a wide range of
stakeholders to look at ways to fund and accelerate the
provision of student housing at universities and colleges
• A Committee will be established to further investigate
some of the opportunities/proposals made at the
symposium and to find sustainable solutions
12
Thank You
The Development of the National Plan
for Post-School Education and
Training
Portfolio Committee on Higher Education
and Training
10 June 2015
14
Overview
• White Paper for Post-School Education and Training
(PSET): background and ongoing implementation
• National Plan for Post-School Education and Training
(NP-PSET):
- Purpose
- Expected outputs
- Development process
- Governance and management
- Actions and time frames
15
White Paper on PSET - Background
• A White Paper for Post-School Education and Training:
Building an Expanded, Effective and Integrated Postschool System – published November 2013
- sets out the principles, vision and policy framework for the
consolidation of an integrated, well articulated,
differentiated and coherent Post-School Education and
Training (PSET) system.
- focuses on the expansion of PSET, improved quality, and
building partnerships especially linking formal education,
work place based training and the labour market
- introduces Community Education and Training Colleges
16
White Paper on PSET - Background
• White Paper identifies 3 delivery sub-systems for PSET:
- Higher Education (HE)
- Technical and Vocational Education and Training (TVET)
- Community Education and Training (CET)
• Sub-systems are complemented by, supported by, or dependent on,
a range of other key role-players:
- Quality assurance system (SAQA; CHE; QCTO; Umalusi)
- Financial aid (NSFAS) and levy grant system (NSF & SETAs)
- range of institutes and bodies to support the 3 sub-systems, e.g.
SAIVCET, NAMB, CDS, CAS, NIHSS, NRF and various Science
Councils, HRDCSA, professional bodies such as the HPCSA,
SAICA, ECSA etc.
17
White Paper Implementation
• All units within the Department are currently working at
implementing the White Paper, for example:
- Community Education and Training Colleges are in the
process of being established and developed
- TVET system is being strengthened and expanded
- Higher Education Act has been reviewed
- Staffing South Africa’s Universities Framework has been
approved and is currently being implemented
- Skills Development Act is under review
- Career Development Services have been set up
- Central Applications Service is currently being developed
- And many many more………
18
National Plan for PSET : Purpose
• The National Plan for Post-School Education and
Training (NP-PSET) is necessary to ensure:
- coordinated implementation of the White Paper
- coherence and alignment of all processes to minimise
contradictions
- cooperation, collaboration, effectiveness, efficiency,
differentiation and sustainable growth
- identification of funding required for system targets and
goals aligned with NDP and other government
commitments, e.g. Health expansion, SIPs
- clarification of the overall architecture of the system, its
structures and the roles, responsibilities and expectations
of various institutions/organisations acting at different
levels in the system
19
National Plan for PSET : Expected Output
• A comprehensive National Plan for the PSET system
covering the period up to 2030, comprising:
- A Master Systems Plan, which integrates three sub-system
plans
- Three sub-system plans, one for each of Higher Education
and Training, Technical and Vocational Education and
Training, and Community Education and Training
• An easily accessible ‘Frequently Asked Questions’
booklet on the NP-PSET
20
National Plan for PSET : Development Process
• Appointment of multidisciplinary teams to assist in developing
the NP-PSET:
- Appointment of a Project Management Team (PMT): overall
manager at Chief Director level, writer at Director level,
administrator at Assistant Director level (technical full-time
expertise)
- Five task teams in the process of being set up (advertised for
expression of interest):
o
o
o
o
Higher Education and Training
Technical and Vocational Education and Training
Community Education and Training
Cross-cutting 1: integration / ‘system-binding’ elements, e.g.
quality assurance, SETAs, organisational structure of the
Department
o Cross-cutting 2: funding (both fiscus and levy)
21
National Plan for PSET : Governance and Management
External stakeholder
reference groups consultation
Minister
Task Team 1:
HE
NP-PSET Steering Committee
DHET
Coordination team
Task team
oversight group
Task Team 2:
TVET
Task Team 3:
CET
Task Team 4:
Cross cutting
Task Team 5:
Cross cutting
22
National Plan for PSET : Governance and Management
• The Steering Committee (SC): Chaired by the DG, all
DDGs, Minister’s Special Advisor and identified senior
officials. It meets quarterly, reports to the Minister and
provides feedback to the Task Teams
• The Coordination Team (CT): led by DDG: University
Education and includes the 3-person PMT, and identified
officials from each Branch. It is the engine room for the
development of the plan and works full-time on the
project. It supports the work of all task teams, the SC
and oversight group. It engages and consults with
external bodies, through reference groups, on a regular
basis throughout the development of the NP
23
National Plan for PSET : Governance and Management
• The Task Team Oversight Group includes a
Chairperson designated by the Director-General, the
chairpersons of each task team, and the coordination
unit. It meets once a fortnight to ensure progress and
integration of the work. The task teams report directly to
the oversight group through their chairpersons. The
oversight group reports to the Steering Committee on a
quarterly basis
24
National Plan for PSET :Timeframes and Actions
Activity
Timeframe
Internal design of NP-PSET process (including: analysis of
White Paper; collation of documents; development of ToRs;
and Ministerial approval)
June 2014 to January 2015
Advertising for expressions of interest
December 2014 – January 2015
Identifying a PMT leader and contracting their services
January 2015 – March 2015
Development of Business Plan to secure funding and
funding approval
March 2015 – June 2015
PMT appointed
July 2015 to December 2016
Steering Com ToRs approved and SC appointed
June 2015
Task Teams appointed
July 2015
Draft NP-PSET developed and published for public comment July 2015 to July 2016
(including ongoing consultation with reference groups)
Analysis of comments and further consultation (including
CHE advice)
August 2016 – November 2016
Final NP-PSET for Cabinet Memo and Ministerial Approval
December 2016
NPPSET published for implementation
March 2017
25
Thank You