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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

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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

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• 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

University Student Housing Background

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• 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

University Student Housing Background

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• 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

University Student Housing Background

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Category of Funding categories Total allocationUniversity   (R'000)

Historically Disadvantaged

Student housing – upgrading and new 1 412 638

universities (HDIs)/ Infrastructure backlog - 1 114 195campuses upgrading and new  Universities / campuses Student housing - 239 136other than HDIs upgrading and new    Teacher Training – meeting scarce skills needs 662 460  Health sciences – meeting scarce skills needs 442 519  Engineering - meeting scarce skills needs 533 780

All universitiesLife and Physical Sciences – meeting scarce skills needs 555 721

  Cooperative Projects – partnerships with HDIs 134 500

 Development of African Languages, Humanities and Social Sciences  311 654

  Disability units - upgrading and new 123 835  Research infrastructure – well founded laboratories 74 053  Project Management Capacity for 12 universities 50 000  ICT 130 509  Unbundling of Medunsa and est. new university 210 000

DHET Monitoring and Oversight 5 000Total   6 000 000

Infrastructure Grant 2012/13 to 2014/15

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• 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

Infrastructure funding for student housing

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• 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

Infrastructure funding for student housing

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• 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

Progress with respect to additional funding

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• 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

Student Housing at Universities: Challenges

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• 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

TVET Colleges

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• 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

Way Forward

Thank You

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The Development of the National Plan for Post-School Education and

Training

Portfolio Committee on Higher Education and Training

10 June 2015

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• 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

Overview

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• A White Paper for Post-School Education and Training:

Building an Expanded, Effective and Integrated Post-

school 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

White Paper on PSET - Background

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• 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.

White Paper on PSET - Background

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• 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………

White Paper Implementation

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• 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

National Plan for PSET : Purpose

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• 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

National Plan for PSET : Expected Output

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• 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 Higher Education and Trainingo Technical and Vocational Education and Training o Community Education and Training o 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)

National Plan for PSET : Development Process

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Minister

NP-PSET Steering Committee

DHET Coordination team

Task team oversight group

Task Team 1: HE

Task Team 2: TVET

Task Team 3: CET

Task Team 4: Cross cutting

Task Team 5: Cross cutting

National Plan for PSET : Governance and Management

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• 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

National Plan for PSET : Governance and Management

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• 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

National Plan for PSET : Governance and Management

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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 (including ongoing consultation with reference groups)

July 2015 to July 2016

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

National Plan for PSET :Timeframes and Actions

Thank You