PRESENTATION TO THE SELECT
COMMITTEE ON ECONOMIC AND
BUSINESS DEVELOPMENT
ON THE
2015-2020 STRATEGIC PLAN AND
2015/16 ANNUAL PERFORMANCE
PLAN OF THE DEPARTMENT OF
PUBLIC WORKS
Director-General
Department of Public Works
14 May 2015
TABLE OF CONTENTS
No
Item
Slide
1.
Format and layout of the Strategic Plan and Annual Performance Plan
3
2.
Summary of Part A: Strategic overview
6
4.
Summary of Part B: Programme and sub programme plans
29
Programme 1 – Administration
Programme 2 – Intergovernmental Coordination
Programme 3 – Expanded Public Works Programme
Programme 4 - Property And Construction Industry Policy Regulation
Programme 5 – Prestige Policy
5.
Summary of Part C: Links to Long Term Plans
33
2
1
Format and layout of the Strategic Plan and Annual
Performance Plan
This section sets out the
minimum requirement for
Strategic Plans and Annual
Performance Plans as per the
Framework for Strategic
Plans and Annual
Performance Plans
3
NATIONAL TREASURY GUIDELINES FOR STRATEGIC PLANS AND
ANNUAL PERFORMANCE PLANS
• The Framework for Strategic Plans and Annual Performance Plans, issued in September
2010, provides a new format and revised timeframes for the compilation of the Strategic
Plan and Annual Performance Plan.
• National Treasury issued an Instruction Note (No. 33) in July 2011 on the full compliance
to the mandatory requirements of the Framework for Strategic Plans and Annual
Performance Plans.
• A Strategic Plan covers a period of at least five years ideally from the first planning cycle
following an election linked to the identified outcomes of the Presidency.
• A Strategic Plan may be changed during the five year period it covers. However, such
changes should be limited to revisions related to significant policy shifts or changes in the
service delivery environment
• The Annual Performance Plan sets out what the institution intends doing in the upcoming
financial year and during the MTEF to implement its Strategic Plan.
• The format of the APP (including the tables) is prescribed by the National Treasury
Framework for Strategic Plans and Annual Performance Plans and aims is to link the
plans, budget and performance of the Department.
• Annual targets are broken up into quarterly targets where possible to ensure effective
monitoring of performance on a quarterly basis
4
NATIONAL TREASURY GUIDELINES FOR STRATEGIC PLANS
AND ANNUAL PERFORMANCE PLANS
5
2
PART A: Strategic overview
This section specifies the
vision, mission, values and
the goals that the
Department aims to achieve
over a five-year period.
(SP Pages 16-68)
6
LEGISLATIVE AND OTHER MANDATES
Constitutional mandate:
The Constitutional mandate is provided for in Schedule 4, Part A, of the Constitution of the Republic
of South Africa: Functional Areas of Concurrent National and Provincial Legislative Competence.
Legislative mandate
The legislative mandates of the Department are underpinned by the following Acts:
i.
Government Immovable Asset Management Act, 2007 (Act No. 19 of 2007);
ii. the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)
iii. Council for the Built Environment Act, 2000 (Act No. 43 of 2000)
iv. Professional Council Acts that regulate the six Built Environment Professions (BEPs);
v. Public Finance Management Act, 1999 (Act No. 1 of 1999).
vi. Other Acts listed in Annexure A
Policy mandates
i.
DPW White Paper: Public Works, Towards the 21st Century, 1997
ii. DPW White Paper: Creating an Enabling Environment for Reconstruction, Growth and
Development in the Construction Industry, 1999
iii. Construction Sector Transformation Charter, 2006
iv. Property Sector Transformation Charter, 2007
v. DPW Broad-based Black Economic Empowerment Strategy, 2006
vi. Property Management Strategy on BBBEE, Job Creation and Poverty Alleviation, 2007
vii. Green Building Framework, 2011
7
INTRODUCTION AND STRATEGIC CONTEXT
The following Government priorities form the basis of the Strategic Plan informed by
the Performance Agreement of the Minister of Public Works and the 2014-2019 Medium
Term Strategic Framework:
NDP/ MTSF PRIORITY
MTEF Budget
Outcome 4 (Chapter 3 of the NDP) - Decent employment
through inclusive economic growth – The EPWP will
continue to be an effective cushion for the poor and
unemployed. Phase 3 of the EPWP which covers the period
2014/15 to 2018/19 aims to create 6 million work
opportunities.
The medium-term
budget allocation
for EPWP
(including
compensation of
employees and
goods and
services) is R6.8
billion.
8
EPWP : OVERALL EPWP PHASE III WORK OPPORTUNITIES TARGETS:
PER PROVINCE
Work
2014/15
2015/16
2016/17
2017/18
2018/19
Opportunities
Eastern Cape
21,345
21,898
22,504
23,301
24,025
Free State
11,086
14,589
14,993
15,524
16,006
Gauteng
18,758
19,970
20,522
21,250
21,910
KwaZulu-Natal
46,714
53,107
54,576
56,511
58,266
Limpopo
20,345
21,728
22,329
23,120
23,838
Mpumalanga
13,039
17,770
18,262
18,909
19,497
Northern Cape
9,950
10,728
11,025
11,416
11,770
North West
15,544
17,982
18,479
19,134
19,728
9
Western Cape
11,730
14,803
15,212
15,751
16,241
EPWP INCENTIVES - MTEF ALLOCATION
2014/15
(R’000)
2015/16
(R’000)
2016/17
(R’000)
2017/18
(R’000)
EPWP Integrated grant to Provinces Infrastructure and environment and Culture
348,947
350,612
402,009
423,802
EPWP Incentive Grant to Provinces - Social
Sector
257,972
240,563
359,662
385,583
EPWP Integrated grant to municipalities Infrastructure, Environment & Culture and
Social Sector
594,575
587,685
663,991
716,427
Non-State Sector (Non-profit institutions)
477,481
534,816
600,257
630,270
1,678,975 1,713,676
2,025,919
2,156,082
Total
10
EXPENDITURE ON EPWP INTEGRATED GRANT TO
PROVINCES AS OF 31st MARCH 2015
Provinces
Final Grant
Allocation
(R'000)
Actual Year To % Actual Year To Total ExpenditureExp % on
Date Transfers Date Transfers to date
Allocation
(R'000)
(R'000)
Eastern Cape
69,544
69,544
100%
R
64,986
93%
Free State
26,601
26,601
100%
R
23,737
89%
Gauteng
23,565
23,565
100%
R
20,526
87%
Kwa-Zulu Natal
97,945
97,945
100%
R
94,235
96%
Limpopo
32,247
31,004
96%
R
26,619
83%
Mpumalanga
39,928
39,928
100%
R
35,946
90%
Northern Cape
20,348
20,348
100%
R
18,076
89%
North West
14,249
14,249
100%
R
13,846
97%
Western Cape
24,520
24,520
100%
R
21,796
89%
348,947
347,704
100%
R
319,767
92%
Total
11
INTRODUCTION AND STRATEGIC CONTEXT
In addition the following national priorities has also been considered as significant
to the Strategic Plan:
NDP/ MTSF PRIORITY
MTEF
Budget
Outcome 5 (Chapter 9 of the NDP) – Skilled and capable workforce
to support an inclusive growth path. The Department has a
combination of development programmes such as the young
professionals programme, internship programme, learnership
programme and artisan programme providing valuable on the job
experience.
•
CETA: R50 million (ending
March 2016 which is the end
of the current commitments
on National Skills
Development Strategy 111)
•
DPW Young Professional
Programme : R45 million
(ending 2016/2017)
•
DPW Management Trainees:
R16,2 million (ending
2016/2017)
•
DPW Mentorships
(Professional Services):
R9,6 million (ending
2016/2017
•
CBE : R23.9 million
The Department has also taken a comprehensive approach to promote
sustainable growth of the Built Environment Professionals (BEPs)
through the CBE. The CBE has initiated a Skills Development
Programme to support learners undertaking Mathematics and Science
at school level to be able to pursue a career in the built environment.
Outcome 13 (Chapter 11 of the NDP) – “The provision of work
opportunities is one of the best forms of social protection”, which is in
line with the EPWP’s current primary objective of providing the
unemployed with an opportunity to work and empowering communities.
The medium-term
budget allocation for
EPWP Social Sector
Grant is R985 million
12
INTRODUCTION AND STRATEGIC CONTEXT
Vision
A service-oriented Public Works Department focussing on the formulation of policy
and legislative prescripts for the delivery of sound immovable asset management
while contributing to the national agenda for social and economic development.
Mission
i. setting legislative and policy prescripts together with norms and standards for
the management of state-owned and leased-in accommodation, land and
infrastructure for the Public Works sector;
ii. supporting provinces to fulfil the concurrent functions and service delivery
obligations in the Public Works sector;
iii. contributing to the national goals of job creation and poverty alleviation through
the coordination of the Expanded Public Works Programme (EPWP);
iv. providing guidance to our stakeholders to facilitate delivery in the builtenvironment within the context of Department’s mandate; and
v. affording strategic leadership to the South African Construction and Property
industries
13
INTRODUCTION AND STRATEGIC CONTEXT
Values
i. Integrity
ii.
Professionalism
iii. Teamwork
iv. Innovation
Strategic Goals
i. Sound legislative and policy prescripts to accelerate service delivery;
ii.
Oversight, leadership and support to Provincial Public Works;
iii. Coordination of the EPWP Phase III for the creation of decent employment
through inclusive economic growth;
iv. Strategic leadership and regulation of the construction and property sectors to
promote economic empowerment and skills development; and
v. Good corporate governance to support effective and efficient service delivery.
14
PLANNED POLICY INITIATIVES
The Department will review and/or develop the following policies and legislation:
i.
Review of the Department’s White Papers: “Public Works towards the 21st century, 1997;
and Creating an Enabling Environment for Reconstruction, Growth and Development in the
Construction Industry, 1999” towards the development of an enabling legislation
ii.
establish Agrément South Africa (ASA) as a public entity mandated to assess nonstandardised and/or unconventional construction products, materials and systems fit for
purpose,
iii.
develop a draft Built Environment Professions (BEP) Policy towards possible amendments
to the legislative framework governing the BEPs,
iv.
promulgation of a new Expropriation Act (repealing the Expropriation Act 63 of 1975) to
ensure consistency with the Constitution and uniformity in the expropriation of property by
all expropriating authorities,
v.
develop legislation to establish the Independent Development Trust (IDT) to support the
State in the delivery of social infrastructure,
vi.
develop a Green Building Policy and Strategy for the Department to give effect to
Government’s green economy initiatives.
15
STRATEGIC OVERVIEW – EXTERNAL ENVIRONMENT
i.
Economic trends and outlook - Whilst our economy will benefit from the reduction in the oil
price and the immediate lift that it provides for the trade and current account balances, the
energy deficit that we face over the medium-term will remain a material constraint on
economic performance.
ii.
The Property Sector - The current trends in the Property Sector offer some relief to the
escalations in leasing costs to the PMTE. The challenges encountered by the PMTE include
the backlog of maintenance on State-owned accommodation resulting in the over reliance on
leased in accommodation. A coordinated and uniform approach in the management of its
immovable assets will be undertaken to create a better balance between private leases and
utilisation of existing stock of State-owned accommodation
iii.
The Construction Sector - The building and construction sector is expected to grow at an
average of 4.6%. Government’s ability to roll out its infrastructure programme has been
criticized in the past few years. The Department has put in place various key interventions to
build capacity to spend its infrastructure budget and to address fraud and corruption in the
sector
iv.
Political Environment - Trends in the political environment are influenced by events taking
place in other emerging economies worldwide. Domestic drivers of politics for the next five
years will include issues of governance. To complement the drive for good governance the
Department has put into place processes to strengthen the previously weak SCM operating
model, procedures and processes.
16
STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT
The Department’s policy priorities are derived from the Policy Statement of the
Minister of Public Works and the Seven Year Turnaround Plan
1. Key policy priorities
i.
The creation of 6 million work opportunities for poor and unemployed
people through the labour-intensive delivery of public services and
infrastructure.
ii.
The operationalisation of Property Management Entity (PMTE) and the
transformation of the core property business (including construction
management);
iii. The operationalisation of the Governance, Risk and Compliance Branch to
drive anti-corruption and to spearhead the second phase of the
Turnaround Strategy;
iv. A policy review which will culminate in a Public Works Act; and
v. A renewed and sustained Programme of Action to transform the built
environment and the construction and property sectors, as part of the
second more radical phase of transition to democracy
17
STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT
2. The Turnaround Strategy
Phase I – The Stabilisation Phase
This Phase was initiated during 2012 with the specific purpose of ensuring clear and systematic
improvements across the Department.
The Stabilisation Phase (ended on 31 March 2014) has achieved critical and foundational milestones
although there are still various stabilisation projects continuing into the next phase. In this regard, the
following successes are noted:
i.
The operationalisation of the PMTE to oversee the State’s asset investment, property and
facilities management functions in line with Generally Recognised Accounting Practice (GRAP).
ii.
Developing a complete and credible Real Estate Asset Register (REAR) under the Department’s
custodianship in terms of which registered and unregistered land parcels were reconciled against
the deeds records and other National and Provincial immovable asset registers.
iii.
A comprehensive audit of 2 161 leased properties was completed. This audit included the
physical verification of 2 143 leased properties.
iv.
Substantial improvements by the Department were made as is evidenced by progression from
disclaimers in 2010/11 and 2011/12 to a qualification in 2012/13 and an unqualified audit outcome
in 2013/14.
v.
Improved internal efficiencies within the Prestige portfolio have been realised by centralising this
function in the office of the Director-General.
18
STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT
2. The Turnaround Strategy (cont…..)
Phase II – Efficiency Enhancement
The Efficiency Enhancement Phase commenced on 01 April 2014 during which time, ten (10)
projects were prioritised to drive this phase of the Turnaround Strategy. These projects include,
among others:
i.
The Service Delivery Improvement Plan (SDIP) and Macro Service Delivery Model are in place. The
SDIP, will in the longer term, become the business improvement process for the Department and
PMTE;
ii.
The operationalisation of the PMTE and its establishment as a Trading Entity.
iii.
Supply Chain Management (SCM) is being restructured to meet the business requirements.
iv.
Improving internal efficiencies to meet the service delivery requirements of Prestige clients is
underway to ensure that deliverables comply with the prescripts of the Ministerial Handbook.
v.
Developing an Information Technology (ICT) strategy, architecture and platform as a key enabler has
been prioritised for immediate implementation.
vi.
Combating fraud and corruption within the Department as well as in the construction and property
sectors, while holding transgressors accountable for their actions and
vii. Implementing an effective Change Management Strategy to enable a performance driven culture has
already been initiated in an effort to restore a performance management culture in the Department.
19
STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT
3. The business model of the Department of Public Works
Whilst operationalising the PMTE, the Department will place greater emphasis on:
i.
developing best practice within the sector;
ii.
managing the transformation and growth of the construction and property sectors;
iii. drafting legislation and undertaking regulatory functions;
iv. formulating policies and implementation guidelines for the sector;
v.
setting norms and standards for the Public Works Sector;
vi. managing the norms and standards and policy formulation for the Prestige Client
Portfolio;
vii. coordinating the implementation of the EPWP;
viii. focusing on its role in terms of the concurrent functions and the management of
performance in this regard; and
ix. carrying out oversight functions and coordination of the Entities.
20
STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT
4. Public Works Concurrent Function
i.
The public works function is a shared competency between the National and Provincial Governments
in accordance with Schedule 4 of the Constitution of the Republic of South Africa, 1996 (Act 108 of
1996).
ii.
In the absence of the Public Works Act, MinMec has provided the basis for oversight and coordination
of the concurrent functions.
iii.
As a forum of co-operative Government, MinMec has been utilised to consult, coordinate
implementation and align programmes/priority areas including:
iv.
a)
The upscaling of EPWP to ensure sustainability, delivery of public services and infrastructure
and adequate institutional capacity;
b)
Infrastructure planning, delivery and management in terms of GIAMA (U-AMPs/ C-AMPs) and
IDMS;
c)
Service delivery improvement interventions, capacity building, resource management and proper
internal controls (incl. SCM);
d)
Socio-economic growth through consultation and cooperation with wider stakeholders towards
renewed and sustainable development
The Policy Review, including the appraisal of the White Papers (1997 and 1999) and broad
consultation with the wider Public Works community will provide a solid foundation for the Public
Works Act. This process aligns with the third phase of Turnaround Strategy and will ensure the
creation of coherent Government structures and processes that will deliver the mandated services21
through the three spheres of Government.
PERFORMANCE ENVIRONMENT
1.
2.
The following achievements have been noted in the service delivery environment
i.
Commendable improvements in internal controls which has resulted in improved audit
outcomes for DPW.
ii.
Achievements of EPWP Phase II with the creation of over 4 mil work opportunities. Significant
contribution has been noted in various sectors.
Challenges in the current service delivery environment and strategies for redress
i.
Deficiencies in the internal control environment – The Department has compiled a
comprehensive action plan which is also reviewed by Internal Audit. The Action Plan is
updated quarterly and discussed at Accountability EXCO.
ii.
Inadequate internal performance management operating procedures – interventions
include the development of policies, procedures and processes, proper record keeping,
training, improved quality controls, M&E Forum
iii.
Lack of integration of performance information structures and systems within existing
management processes and systems (ICT) – A 3 Phased approach to improving ICT
infrastructure and systems has been developed. The business application stack is key in the
stabilisation phase.
iv.
Inability to retain and attract the required skilled personnel – A Change Management
Strategy has been developed to address capacity challenges and manage the change
process. The implementation of the new organisational structure will be supported by a
22
comprehensive Human Resource Plan.
PERFORMANCE ENVIRONMENT
3. Additional strategies identified to improve efficiencies in the performance
environment
i.Alignment of the concurrent functions
ii.Development and implementation of the Service Delivery Model Framework (SDMF)
iii.Meeting the needs of Prestige clients
iv.Actively reducing fraud and corruption in the Department
4. Demand for services – Demand for EPWP in terms of the upscaling for Phase III
i.High and growing rates of unemployment are a consequence of dynamics on both the demand and supply sides of
the labour market.
ii.There has not been sufficient employment growth to absorb new labour market entrants or to provide jobs for those
people who experienced job losses due to shrinking demand for labour
iii.The EPWP is a nationwide programme covering all spheres of government and state-owned enterprises. It aims to
draw significant numbers of unemployed people into productive work accompanied by training, so that they increase
their capacity to earn an income.
5. Spending focus over the MTEF in accordance with the Department’s priorities
i.The Department’s budget over the medium-term is R20.7 billion. The budget of R6.4 billion is projected to increase
to R6.9 billion in 2016/17 and R7.4 billion in the 2017/18 financial years.
ii.The devolution of the budget allocation of approximately R11.2 billion to the PMTE has resulted in the decrease in
the Departmental budget allocations over the medium-term. The budget allocation for the devolved functions has
been reclassified as transfers and subsidies to the PMTE within Programme 4.
23
HIGH LEVEL ORGANISATIONAL STRUCTURE
Minister
Mr. T.W. Nxesi
Deputy Minister
Mr. J.P. Cronin
Director-General
Mr. M. Dlabantu
Head of PMTE
Internal Audit
(Acting) Mr. M. Govender
Ms. T. Tusiki
Prestige
Mr. M. Sazona
Construction and
Property Policy
Development
(Acting) Ms. M
Fatyela-Lindie
Expanded Public
Works Programme
Chief Financial
Officer
Mr. S. Henderson
Mr. C Mokgoro
Corporate Services
Mr. C. Mtshisa
Governance, Risk
and Compliance
Intergovernmental
Relations
Mr. I Fazel
(Vacant)
24
ORGANISATIONAL ENVIRONMENT
i.
The Department has reviewed the organisational structure for DPW and
PMTE which will be approved and implemented over the MTEF.
ii.
PMTE is being operationalised to undertake
management functions across the asset lifecycles
the
immovable
asset
iii. The Department has refined its role to give effect to improved oversight
practices to ensure the coordinated and integrated delivery of services
through, policy formulation, determining regulatory prescripts including setting
norms and standards, and overseeing the implementation of these functions.
iv. The Department has an approved establishment of 1 618 posts of which 1
413 are filled. Focus over the next term is on strengthening the functions
within DPW – Intergovernmental Relations, Policy, EPWP, Prestige and
Governance, Risk and Compliance.
v. An integrated Human Resource Plan has been developed to respond to
Government’s priorities and to align the Department’s workforce with the
mission, vision, strategic goals and financial resources of the Department.
vi. DPW will continue to provide support to the PMTE during the transition to the
Government Component whilst strengthening the remaining functions
25
BUDGET ALLOCATION SUMMARY PER PROGRAMME
Adjusted
appropriation
Programmes
2014/15
Medium-term expenditure estimate
2015/16
2016/17
2017/18
(R’000)
(R’000)
(R’000)
(R’000)
474 253
475 996
502 183
519 825
25 750
47 223
50 091
52 827
Expanded Public Works Programme
1 951 295
1 992 234
2 324 773
2 470 050
Property and Construction Industry Policy Regulation
3 543 989
3 802 962
3 960 662
4 220 227
126 033
92 672
97 469
104 767
6 121 320
6 411 087
6 935 178
7 367 696
Administration
Intergovernmental Coordination
Prestige
Total
26
BUDGET ALLOCATION SUMMARY PER ECONOMIC CLASSIFICATION
Economic classification
Adjusted
appropriation
2014/15
Medium-term expenditure
estimate
2015/16 2016/17 2017/18
(R’000)
(R’000)
(R’000)
(R’000)
3 027 775
882 781
925 666
961 642
Compensation of employees
1 667 797
474 995
499 639
516 136
Goods and services
1 359 978
407 786
426 027
445 506
Transfers and subsidies
2 563 905
5 500 246
5 968 004
6 356 769
1 201 520
1 178 866
1 425 668
1 525 818
802 506
3 703 137
3 907 109
4 163 963
Foreign governments and international organisations
22 548
23 273
24 506
25 731
Public corporations and private enterprises
50 000
50 000
-
-
477 481
534 816
600 257
630 270
9 850
10 154
10 464
10 987
529 640
28 060
41 508
49 285
Current payments
Provinces and municipalities
Departmental agencies and accounts
Non-profit institutions
Households
Payments for capital assets
Buildings and other fixed structures
416 065
Machinery and equipment
107 232
28 060
41 508
49 285
6 343
-
-
-
6 121 320
6 411 087
6 935 178
7 367 696
Software and other intangible assets
Total
27
MTEF ALLOCATION – EARMARKED FUNDS
Medium-term expenditure estimate
Earmarked Budget Allocation
Expanded Public Works Programme non state sector
Expanded Public Works Programme provision for payments of non wage costs
by the non state
Independent Development Trust (Independent Development Trust) Intermediary
programme management cost)
Construction Industry Development Board
Council for the Built Environment
Turnaround programme
Parliamentary Villages Management Board
Property Management Trading Entity
Independent Development Trust
2015/16
(R’000)
2016/17
(R’000)
2017/18
(R’000)
509,400
572,494
602,169
25,416
26,763
28,101
11,275
11,884
12,478
65,626
41,994
33,370
9,090
3,584,652
50,000
62,059
43,413
31,138
9,572
3,790,172
89,984
48,568
37,092
10,051
4,013,347
Conditional Grants to Local Government
Expanded Public Works Programme Integrated Grant to municipalities
587,586
587,586
663,991
663,991
716,427
716,427
Conditional Grants to Provincial Government
Expanded Public Works Programme Integrated Grant to Provinces
Social Sector Expanded Public Works Programme Incentive Grant to Provinces
591,175
350,612
240,563
761,671
402,009
359,662
809,385
423,802
385,583
5,509,584
5,973,157
6,367,602
Total
28
3
PART B: Strategic objectives and
programme plans
This section specifies
strategic objectives and their
resource implications for
each budget programme
(SP Pages 70-83 and APP
Pages 20-71)
29
PROGRAMME OBJECTIVES AND BUDGET
Programme
Strategic Objective(s)
5 Year Targets
Budget
Administration
• To provide strategic
corporate services to
PMTE and DPW through
the implementation of
corporate service plans.
• Corporate service
(Human Resources, ICT,
Security, Legal, Gender,
International Relations
and Communications)
plans developed to
resource DPW and
PMTE.
• Unqualified audit outcome
The cost drivers for this
Programme are compensation of
employees and goods and
services. The budget allocated for
2015/16 is R475m. The reduction
in the budget for this Programme
is due to the budget for the
provision of office accommodation
for Public Works being moved to
the PMTE
• To pursue common service
delivery objectives within
the public works sector
through the coordinated
implementation of
programmes at National
and Provincial level
• Public Works sector
supported in areas of
concurrence
The Programme’s Budget is
expected to increase over the
MTEF as the functions are
properly established and
personnel appointed.
• To ensure compliance to
management practices
through the MPAT
improvement plan
• 100% compliance of
management practices as
per MPAT
• To ensure sound financial
resource management
through compliant and
responsive financial
management practices to
maintain an unqualified
audit outcome.
Intergovernme
ntal
Coordination
The bulk of spending in this
Programme will be on providing
sound sectoral intergovernmental
relations and strategic monitoring
and evaluation, compensation of
employees as well as goods and
services. The budget allocation
for 2015/16 is R47m.
30
PROGRAMME OBJECTIVES AND BUDGET
Programme
Strategic Objective(s)
5 Year Targets
Budget
Expanded
Public Works
Programme
• To co-ordinate, monitor
and evaluate the
implementation of EPWP
Phase III that aims to
create 6 million work
opportunities and provide
income support to the
poor, lowly skilled and
unemployed between
2014 - 2019
6 million work opportunities
created by public bodies in
the EPWP aligned to the
Phase III Business Plan
The budget allocated for this
Programme for the 2015/16
financial year is R1.9bn. The
spending focus for EPWP will
remain on the payment of
performance-bases incentives
to eligible Provinces,
Municipalities and Non-Profit
Organisations for the creation
of jobs on labour intensity.
The Programmes received an
additional funding of R50m on
transfers and subsidies to the
Non-State Sector
31
PROGRAMME OBJECTIVES AND BUDGET
Programme
Strategic Objective(s)
5 Year Targets
Budget
Property and
Construction
Industry
Policy and
Research
• Promote sound
immovable asset
management in the
public sector
• New legislative and policy
frameworks to govern the
immovable assets under
the custodianship of the
Department
Due to the re-organisation of the
budget programme structure of the
Department to support the
operationalisation of PMTE, the
budget structure of this Programme
was amended, which resulted in a
significant increase in its allocation.
The budget allocation for 2015/16 is
R3.8 bn, the bulk of the which will be
a transfer to PMTE.
• To regulate and
transform the
Construction and
Property industries
• Public Works Act
promulgated
The spending focus for this
Programme over the medium term
will continue being on the promoting
the growth and transformation of the
property and construction sector.
Prestige
Policy
• To develop, monitor
and improve prestige
policy frameworks
annually
• To provide movable
assets (office and
residential) and
structures to Prestige
clients
• 7 Approved Policy
Frameworks for Prestige
• Movable assets (office and
residential) provided to
Prestige clients within 60
days of receipt of request
The bulk of spending for this
Programme over the medium term
will be on the development of norms
and standards for Prestige
accommodation, the provision of
movable assets and meeting
protocol responsibilities for the State
functions. The budget allocation for
2015/16 is R92m.
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5
PART C: Links to long term
infrastructure plan
This section provides the
details to other plans that
the Department factors into
its planning process, Public
Entities reporting to the
Department and Conditional
Grants (SP Page 103-147)
33
PART C – LINKS TO OTHER PLANS
1.
Service Delivery Improvement Plan – The SDIP is a detailed plan with target to improve delivery in critical
services over the next three (3) years. The SDIP is underpinned by the need to adopt the Infrastructure Delivery
Management System (IDMS) as the primary system for the management of delivery. The SDIP sets out in clear
terms the following three areas for improvement which have been identified through a scientific situational
analysis process.
i.
ii.
iii.
2.
Provisioning of accommodation through construction (aligned to the IDIP);
Provisioning of accommodation through private leases (aligned to IDIP); and
Customer relationship management.
Strategic Risk Plan – Listed below are the strategic risks where specific attention and resources will be focused.
i.
Fraud and Corruption arising from failure to comply with legislative prescripts
ii.
Inability to implement the proposed structure
iii. Insufficient technical capacity to support PMTE
iv. Lack of integrated business systems
v.
Loss of State funds due to breach of contracts by non performing contractors
vi. Uncertainty of Business Continuity resulting from change
vii. Exposure to fraud and corruption
viii. Failure to deliver quality services
ix. Ineffective implementation of the Expanded Public Works by implementing bodies
x.
Low levels of transformation in the Construction and Property Industries
xi. Non adherence to Prestige Regulatory frameworks by Prestige clients
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PART C – CONDITIONAL GRANTS
3. The Department received the following conditional grants under the Expanded
Public Works Programme:
i.
EPWP Integrated Grant to Provinces
ii.
EPWP Integrated Grant to Municipalities
iii.
Social Sector EPWP Grant for to Provinces
iv. Non State Sector Wage Subsidy.
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PART C – PUBLIC ENTITIES
4. There are four Public Entities reporting to the Department of Public Works. The Entities
serve as an extension of and assist the Department in delivering on its mandate.
Name of Public Entity
2015/16
Budget
Construction Industry Development Board (cidb): The cidb supports the
Department by providing strategic direction and developing effective partnerships
for growth, reform and improvement of the construction sector;
R128 098 (DPW transfer:
R65 626 and other revenue
R62 472)
Council for Built Environment (CBE): The CBE implements projects and
programmes that address the built environment issues and add value to the built
environment professions, Government and the general public;
R43 947 (DPW transfer:
R41 994 & other revenue
R1 953)
Independent Development Trust (IDT): The IDT supports the Department in
contributing to Government’s priorities of job creation, sector skills development,
green buildings initiatives and eradication of social infrastructure backlogs.
R451 000 000 (DPW
transfer:
R 50 000
000
Management fees for the
financial year: R396 900
000
Investment Income – R5
000 000)
R13 631
(DPW transfer of R11 682
and other revenue of R1
949).
Agrément SA (ASA): ASA supports the Department by technically assessing
innovative construction technologies and promoting their use to stimulate the
creation of sustainable short and long-term work opportunities;
36
THANK YOU
National Department of Public Works (NDPW)
Head Office: Public Works
CGO Building
Cnr Bosman and Madiba
Pretoria Central
Private Bag X65
Pretoria
0001
Website: http://www.publicworks.gov.za
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