PRESENTATION TO THE SELECT COMMITTEE ON
ECONOMIC AND BUSINESS DEVELOPMENT
ON
2014-2019 STRATEGIC PLAN AND 2014/15 ANNUAL
PERFORMANCE PLAN OF THE DEPARTMENT OF
PUBLIC WORKS
Director-General
Department of Public Works
15 July 2014
TABLE OF CONTENTS
No
Item
Slide
1.
Regulatory requirements for Strategic Plans and Annual Performance Plans
3-4
2.
Part A: Strategic overview, overall performance and outlook
5-17
3.
4.
•
Legislative and other mandates
•
Introduction and strategic context
•
Planned policy initiatives
•
Performance environment
•
Organisational environment
Part B: Strategic objectives and programme plans
•
PROGRAMME 1: ADMINISTRATION
•
PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT
•
PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP)
•
PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION
•
PROGRAMME 5: AUXILIARY AND ASSOCIATED SERVICES
•
PUBLIC ENTITIES
Part C: Long Term Infrastructure Plan
•
DPW infrastructure budget
•
PMTE infrastructure budget - planned maintenance
18-22
23-25
2
1
Regulatory requirements for Strategic
Plans and Annual Performance Plans
This section provides context
to the regulatory
requirements in accordance
with the National Treasury
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
2
PART A: Strategic overview,
overall performance and outlook
This section specifies the
vision, mission, values and
the goals that the
Department aims to achieve
over a five-year period.
(SP Pages 15 - 58 and APP
Pages 16-50)
5
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 mandate is primarily governed by the Government Immovable Asset Management
Act, 2007.
The Department regulates the construction industry and built environment through the Construction
Industry Development Board Act, 2000 (Act No. 38 of 2000) and the six Professional Council Acts
that regulate the six Built Environment Professions (BEPs), and through the Council for the Built
Environment Act (Act No. 43 of 2000)
Policy mandates
• DPW White Paper: Public Works, Towards the 21st Century, 1997
• DPW White Paper: Creating an Enabling Environment for Reconstruction, Growth and
Development in the Construction Industry, 1999
• Construction Sector Transformation Charter, 2006
• Property Sector Transformation Charter, 2007
• DPW Broad-based Black Economic Empowerment Strategy, 2006
• Property Management Strategy on BBBEE, Job Creation and Poverty Alleviation, 2007
• Green Building Framework, 2011
6
INTRODUCTION AND STRATEGIC CONTEXT
Vision
A service oriented Public Works Department delivering value and contributing to
the national agenda for social and economic development.
Mission
• Provide quality accommodation and related services to our clients,
•
efficiently and effectively manage the immovable assets in our custodianship,
•
actively contribute to the national goals of job creation and poverty alleviation
through the Expanded Public Works Programme,
•
provide expert built-environment advice to our stakeholders,
•
provide strategic leadership to the South African Construction and Property
Industries.
7
ALIGNMENT OF THE BUDGET WITH BROADER POLICY
PRIORITIES
The following Government priorities form the basis of the Strategic Plan informed by
the ruling party manifesto and National Development Plan (NDP) translated into the
Medium Term Strategic Framework (MTSF):
Key policy priorities
2014/15
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. (Detailed budget on slide 9)
R1.951 bil
Outcome 6 (Chapter 4 of the NDP) – An efficient, competitive and
responsive infrastructure network – The Department will continue
prioritising infrastructure requirements at the Land Ports of Entry (LPOE)
to facilitate cross border trade and strengthen socio-economic
development.
R233 mil
R3 mil
National Infrastructure Maintenance Strategy (NIMS) is a coordinated
programme of action being led by the Department and supported by the
Construction Industry Development Board (cidb) to deal with
infrastructure maintenance for different sectors.
8
EPWP INCENTIVES ALLOCATION
Detailed budget linked to Outcome 4
2013/14
(R’000)
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
356 915
348 947
356 574
411 798
432 388
EPWP Social Sector Incentive grant
257 564
257 972
267 529
374 662
393 395
EPWP Integrated grant to
municipalities - Infrastructure,
Environment & Culture and Social
Sector
611 274
594 575
618 966
705 997
741 297
Non-profit institutions
438 281
477 481
484 816
600 257
630 270
Total
1 664 034 1 678 975 1 727 885 2 092 714 2 197 350
9
ALIGNMENT OF THE BUDGET WITH BROADER POLICY
PRIORITIES
Key policy priorities
2014/15
Budget
Outcome 7 (Chapter 6 of the NDP) - Comprehensive rural
development – The Department will be collaborating with sector
departments and rural municipalities to coordinate infrastructure
planning and ensure maximum impact in rural areas.
R2 mil
Outcome 12 (Chapter 13 of the NDP) - An efficient and effective R510 mil
development-oriented Public Service – Through strategic
planning instruments (U-AMP and C-AMP) the Department
provides accommodation to user departments that promotes
integration, accessibility, sustainability, environmental sensitivity,
economic growth and social empowerment.
10
ALIGNMENT OF THE BUDGET WITH BROADER POLICY
PRIORITIES
In addition the following priorities has also been considered as significant to the
Strategic Plan:
Key policy priorities
2014/15
Budget
Outcome 1 (Chapter 9 of the NDP) - Quality Basic Education – The
Department in collaboration with DBE will be replacing inappropriate
structures at 36 schools and making aesthetic improvements to 915
schools.
-
Outcome 5 (Chapter 9 of the NDP) – Skilled and capable workforce
to support an inclusive growth path. The Department has a number of
development programmes such as the young professionals
programme, internship programme, learnership programme and
artisan programme providing valuable on the job experience.
R3 mil
Outcome 8 (Chapter 8 of the NDP) – Sustainable human settlements
and improved quality of household life. The Department will release
well located land and properties for development purposed to the
Department of Human Settlements.
-
CETA
funding R50 mil
11
ALIGNMENT OF THE BUDGET WITH BROADER POLICY
PRIORITIES
Key policy priorities
2014/15
Budget
Outcome 10 (Chapter 5 of the NDP) – Protect and enhance
our environment assets and natural resources. The
Department will continue implementing the Green Building
Framework in line with Government’s transition to a low carbon
economy.
-
Outcome 14 (Chapter 15 of the NDP) – Nation building and
social cohesion – The Department in partnership with the City
of Tshwane will create a more functional and aesthetically
pleasing inner city.
R107 mil
12
INTRODUCTION AND STRATEGIC CONTEXT
Strategic goals
Goal statement
1.
An efficient, competitive and responsive
accommodation infrastructure network
Manage the life cycle of immovable assets under
the custodianship of the Department effectively
and efficiently.
2.
Strategic leadership and regulation of the
construction and property sectors to
promote economic empowerment and skills
development
Provide leadership to the South African
construction and property sectors whilst ensuring
transformation and regulation thereof through the
development of legislation and best practice
guidelines.
3.
Good corporate governance to support
effective and efficient service delivery
Provide strategic leadership in ensuring effective
governance, sound resource management and
integrity of the operations of the Department.
4.
Decent employment through inclusive
economic growth
5.
Contribute towards comprehensive rural
development
Lead and coordinate the creation of additional
employment opportunities through labour intensive
delivery methods and skills programmes for the
participation of the unemployed in delivering
needed services and creation of assets.
Improved land administration and spatial planning
for integrated development in urban and rural
areas.
13
PLANNED POLICY INITIATIVES
The Department will review and/or develop the following policies and legislation:
•
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
•
establish Agrément South Africa (ASA) as a public entity mandated to assess nonstandardised and/or unconventional construction products, materials and systems fit for
purpose,
•
develop a draft Built Environment Professions (BEP) Policy towards possible amendments to
the legislative framework governing the BEPs,
•
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,
•
develop legislation to establish the Independent Development Trust (IDT) as a public entity to
support the State in the delivery of social infrastructure,
•
develop a Green Building Policy and Strategy for the Department to give effect to
Government’s green economy initiatives.
14
PERFORMANCE ENVIRONMENT
Turnaround Strategy:
•
The Department launched a Turnaround Strategy in 2012 to address multiple issues of
underperformance that ultimately resulted in progressively negative audit reports by the
Auditor-General
•
For reasons of impact and strategic importance, 10 projects have been conceptualised
from the 23 key stabilisation projects, as essential drivers of Phase 2 for the rebuilding
the Department. These projects are:
1.
2.
The development of a Service Delivery Framework
Operationalisation of Property Management Trading Entity and establishment of the
Government Component
3. Developing a complete and credible register of State immovable assets
4. Conducting a comprehensive audit of leased properties and the establishment of a leasing
management framework
5. Restructuring of Supply Chain Management (SCM) to better meet business requirements
6. Improving internal efficiencies to meet the service delivery requirements of Prestige clients
7. Developing an Information Technology strategy, architecture and platform as a key enabler
8. Improving infrastructure delivery through the application of best practice in terms of processes,
structures and systems (IDMS)
9. Actively combating fraud and corruption, both within the Department and in the construction
and property sectors, holding transgressors accountable for their actions
10. Development and implementation of an effective change management strategy that enables a
performance driven culture
15
PERFORMANCE ENVIRONMENT
Turnaround Strategy Budget:
Programme
Project description
Programme 1:
Administration
Business Model Project
Fraud Investigations
Internal Audit Support
Core Turn Around Support
Team
Clean Audit
Supply Chain Management
Review
Irregular Expenditure Project
Total: Programme 1
Programme 2:
Immovable Asset
Management
Lease review
Immovable Asset Register
Total: Programme 2
Overall Total
2014 / 15
R`000
1 000
30 690
10 800
2015 / 16
R`000
2016/17
R`000
6 138
5 040
6 463
5 307
7 990
64 291
8 805
15 000
9 311
10 000
36 481
7 900
9 121
12 636
9 604
143 262
43 199
44 010
39 000
24 771
4 100
27 070
28 505
63 771
207 033
31 170
74 369
28 505
72 515
16
ORGANISATIONAL ENVIRONMENT
•
The Department has reviewed the organisational structure which will be approved and
implemented over the MTEF.
•
The Department has an approved establishment of 6 818 posts of which 5 560 are filled.
•
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.
•
The Department is experiencing challenges in producing the wide range of skills required
in the construction and engineering fields, in order to meet longer-term infrastructure
delivery objectives.
•
The Department will therefore continue to implement its strategy to bring in skilled
graduate professionals through development programmes.
•
Targeted human resource interventions in place include the recruitment of technical and
professional staff to overcome short term challenges
•
For the 2014/15 financial year the Department has an allocation R1.660 billion for
compensation of employees to deliver on its key priorities.
•
Additional funding (estimated R3 bil shortfall) will be required in implementing the new
structure over the MTEF.
17
3
PART B: Strategic objectives and
programme budget
This section specifies
strategic objectives and their
resource implications that
need to be managed over the
MTEF
(SP Pages 59 - 97 and APP
Pages 51 - 125)
18
PROGRAMME OBJECTIVES AND BUDGET
Programme
Strategic Objective(s)
Budget
Administration
•
Promote sound corporate governance
practices within DPW.
•
Ensure effective and sound financial
resource and corporate resource
management.
The Bulk of the Programme budget goes towards
Office Accommodation and Corporate Services
functions. The budget allocation for the Programme is
R1.175 billion for 2014/15.
Immovable
Asset
Management
• Effective life cycle asset management of
immovable assets under the custodianship
of the Department.
• Improved land administration and spatial
planning for integrated development in
urban and rural areas
The spending focus for the Programme includes the
infrastructure, immovable asset register and the lease
review as part of the Turnaround Strategy. The
budget allocation for the Programme is R2.861 billion
for 2014/15.
Expanded Public
Works
Programme
• Co-ordinate, monitor and evaluate the
creation of work opportunities and income
support to the poor and unemployed, so as
to contribute to national goal of job creation
poverty alleviation
The bulk of the programme’s budget goes towards the
payment of performance based incentives to eligible
Provinces, Municipalities and Non-Profit
Organisations. The budget allocation for the
Programme is R1.951 billion for 2014/15.
Property and
Construction
Industry Policy
Regulations
• Promote growth and transformation of and
competition in the construction and property
industries.
The spending focus for the Programme will be on
tabling the Expropriation Bill and the Agrément South
Africa Bill in Parliament . The budget allocation for
the Programme is R41 million for 2014/15.
Auxiliary and
Associated
Services
• Render auxiliary services for state functions
and meet financial commitments on
compensation for losses, preservations of
national memorials, training and skills
development
• Promote uniformity and best practice in
construction and immovable asset
management in the public sector.
The bulk of spending in this programme goes towards
goods and services and transfers and subsidies for
the State functions and Assistance to Organisations
for Preservation of National Memorials. The budget
allocation for the Programme is R92 million for
19
2014/15.
BUDGET ALLOCATION SUMMARY PER PROGRAMME
To deliver on the Department’s strategic goals and objectives, a budget
of R6.121 billion is allocated across various Programmes:
Programmes
2013/14
2014/15
2015/16
2016/17
Previous
year
Current year
MTEF
MTEF
Administration
1 158 162
1 175 346
1 133 293
1 191 463
Immovable Asset Management
2 981 770
2 861 387
3 308 139
3 450 040
Expanded Public Works Programme
1 947 969
1 951 295
2 006 840
2 395 237
Property and Construction Industry Policy Regulations
36 682
41 473
43 381
45 872
Auxiliary and Associated Services
50 678
91 819
53 689
56 593
6 175 261
6 121 320
6 545 342
7 139 205
Total for Programmes
20
BUDGET ALLOCATION SUMMARY PER ECONOMIC CLASSIFICATION
Economic classifications
Current payments
Compensation of employees
Goods and services
Transfers and subsidies
Provinces and municipalities
Departmental agencies and accounts
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
Payments for capital assets
Buildings and other fixed structures
Machinery and equipment
Software and other intangible assets
Total economic classification
2013/14
Previous
year
2014/15
Current year
2 853 020
1 473 467
1 379 553
2 543 889
1 225 778
803 694
20 510
50 000
438 281
5 626
778 352
676 206
91 162
10 984
6 175 261
2 962 023
1 659 885
1 302 138
2 563 353
1 201 520
802 761
21 741
50 000
477 481
9 850
595 944
510 369
79 232
6 343
6 121 320
2015/16
MTEF
2016/17
MTEF
2 956 367
1 753 457
1 202 910
2 654 170
1 243 096
843 363
22 741
50 000
484 816
10 154
934 805
844 005
84 165
6 635
6 545 342
3 139 563
1 870 541
1 269 022
3 017 922
1 492 486
890 769
23 946
600 257
10 464
981 720
885 153
89 580
6 987
7 139 205
21
PUBLIC ENTITIES
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
2014/15
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;
R77 mil
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;
R42 mil
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.
R50 mil
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;
R11 mil
Property Management Trading Entity (PMTE): Optimal utilisation of State
property to meet the service delivery objectives of Government
R673 mil
22
4
PART C: Long term infrastructure
plan
This section considers the
long term infrastructure
plans
(SP Pages 98 - 107 and APP
Pages 126 - 135)
23
DPW INFRASTRUCTURE BUDGET
SUB-PROGRAMME: INFRASTRUCTURE (DPW CAPITAL BUDGET)
The acquisition of infrastructure for DPW’s own accommodation needs as well as for the prestige portfolio, land ports of
entry, dolomite risk management, inner city regeneration programmes and accessibility programmes in terms of the
disability policy is funded from the Infrastructure (Public Works) allocation.
1.
New, replacement, upgrade and additions
No of Infrastructure
Outcome
projects Programme Type
Main
Adjusted
appropriation Appropriation
2010/11
2011/12
R`000
R`000
2012/13
R`000
Revised
Estimate
2013/14
R`000
R`000
R`000
Medium Term Estimates
2014/15
2015/16
2016/17
R`000
R`000
R`000
95
Departmental
261,201
285,294
228,106
227,000
-
227,000
86,000
158,000
204,066
119
Accessibility
18,978
11,386
4,992
25,000
-
25,000
11,369
9,005
9,482
37
Dolomite Risk
Management
11,861
32,167
32,355
54,000
-
54,000
17,000
141,000
148,473
110
Land Ports of
Entry
372,000
274,626
233,892
202,206
-
202,206
233,000
285,000
277,239
17
Inner City
Regeneration
145,389
42,059
94,838
55,000
-
55,000
107,000
101,000
106,353
60
Prestige
446,445
365,876
118,820
113,000
-
113,000
56,000
150,000
139,540
1 255 874
1 011 408
713 003
676 206
-
676 206
510 369
510 369
844 005
Total
24
PMTE INFRASTRUCTURE BUDGET- PLANNED MAINTENANCE
2. Maintenance and repairs (PMTE - Current)
The maintenance and repair of existing state accommodation as funded by the PMTE through accommodation charges
received from user departments
No of
Infrastructure
projects Programme
Type
Outcome
2010/11
R`000
2088
Planned
maintenance
(current)
1 710 400
Main
Adjusted
Revised
appropriation Appropriation Estimate
2011/12
R`000
1 398 391
2012/13
R`000
1 630 271
2013/14
R`000
2014/15
R`000
1 492 480
Medium Term Estimates
R`000
-
1 492 480
R`000
1 600 127
2015/16
R`000
1 589 879
2016/17
R`000
2 007 856
3. Rehabilitation, renovations and refurbishment (PMTE - Capital)
Major renovations and refurbishment of state accommodation funded by PMTE through accommodation charges received
from user departments and augmentation received from National Treasury
No of
Infrastructure
Outcome
projects Programme Type
2010/11
R`000
1241
Planned
maintenance
(capital)
303 799
Main
Adjusted
Revised
appropriation Appropriation Estimate
2011/12
R`000
721 245
2012/13
R`000
718 712
2013/14
R`000
947 593
Medium Term Estimates
2014/15
R`000
R`000
-
947 593
R`000
1 098 444
2015/16
R`000
1 451 070
2016/17
R`000
1 577 982
25
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
26