19 october 2012 standing committee on appropriations (progress on accelerated schools...

19 OCTOBER 2012

STANDING COMMITTEE ON APPROPRIATIONS

(Progress on Accelerated Schools Infrastructure Delivery Initiative (ASIDI))

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ASIDI BACKGROUND

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SCHEDULE 7: SCHOOL INFRASTRUCTURE BACKLOGS GRANT

• The purpose of the grant is – for the eradication of entire inappropriate schools;– provision of basic level of water, sanitation and

electricity to schools. • The grant is also referred to as the ASIDI

(Accelerated School Infrastructure Delivery Initiative)

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ASIDI Targets

The targets are as follows:

Infrastructure Category Baseline 2011/2012 2012/2013 2013/2014 Inappropriate Structures 496 50 100 346 Water 1257 188 1069 Electrification 878 164 714 Sanitation 868 354 514 Specialist Classrooms 50

MTEF ALLOCATIONS2011/12 R 7002012/13 R2 3152013/14 R5 189TOTAL R8 204

The budget allocation for the ASIDI programme over the MTEF period is R8.2 billion and allocated as indicated in the table below:

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2011/12 ASIDI PROGRESS

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ASIDI 2011/12 TARGETS AND ACHIEVEMENTS

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The following work was implemented during the 2011/12 financial year:

Inappropriate Electricity Sanitation Water Target Completed Target Completed Target Completed Target Completed Province Eastern Cape 49 4 100 61 58 47 84 31Free State 0 0 24 23 12 12 30 30Gauteng 0 0 2 2 7 7 0 0KwaZulu Natal 0 0 0 0 60 17 0 0Limpopo 0 0 4 3 40 40 38 38Mpumalanga 0 0 31 2 0 0 0 0North West 0 0 0 0 0 0 0 0Northern Cape 0 0 0 0 16 0 6 0Western Cape 0 0 7 7 21 21 3 3Total 49 4 168 98 214 144 161 102

ASIDI 2011/12 TARGETS AND ACHIEVEMENTS

• Projects completed from 2011/12 financial year– 8% of IS, 58% Electricity, 67% Sanitation and 63% Water– Water and sanitation Projects in Gauteng, Free State and Western Cape

have reached practical completion. – 17 of 60 Sanitation projects in KZN have reached practical completion. – On Water and sanitation projects in EC, forty seven (47) of the 58

sanitation projects have achieved practical completion,– 84 schools in EC have been provided with Rain Water Harvesting tanks

and related infrastructure,31 projects have been connected to municipal bulk supply.

– Gauteng, Western Cape and Free State have completed the electrification projects.

– Eskom has electrified 66 schools to date.

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ASIDI PROGRESS ON 49 SCHOOLS

• 49 inappropriate schools are progressing as follows: – Progress at 12 of the schools is between 20.1% and 40%;– Progress at 17 of the schools is between 40.1% and 60%;

– Progress at 16 of the schools is between 60.1% and 80%; – 4 of the 49 schools are at Practical Completion. – Aerial Photo Survey available for information– The remaining 45 of 49 are planned to be handed over during the

October, November and December months.

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NB: The projections for completion are dynamic and can be earlier or on target date.*schools that experienced delays due to non-performing contractors

Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

Previous Report 12 22 7 8Actual/Current Projections 4 7 18 15 3* 2*


• Various challenges were encountered during implementation such as:– Difficulty in obtaining material supply - Suppliers not in a position to meet the

demand placed by the ASIDI contractors – Difficult terrain requiring unusual earth works and poor access to schools

particularly those in remote areas in the Eastern Cape– Redesign of site drawings due to unforeseen physical features on site such as

graves– Non performance by contractors: Under estimated the resources required on

an accelerated programme– Competition with other business sectors on transportation of bulk– Inclement weather conditions which results in work stoppage on sites and

hinders access to project sites for delivery of materials due to poor conditions of the roads,

– The effect of the recent trucks strike • Some of these challenges continue to impact on planned completion dates.

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• DBE interventions– Terminations of contracts ( Inyameko Vukukhanye and TBP Contractors (have

applied for business rescue)– A First meeting with contractors chaired by Deputy Minister Surty was held in

25 June• Deputy Minister for Finance together DBE and DBSA officials were in attendance.• SSI Mafuri, TBP and Armstrong who were implementing 24 of 49 ASIDI schools

were invited to sort their commitment to complete the schools as planned in August 2012.

• These were chosen due to the significant number of projects they were implementing and the slow progress made at the time.

• undertakings and commitments were made by contractors to implement measures to recover on the construction programme.

• Significant progress was seen from SSI Mafuri and Armstrong• TBP contract was later terminated due to pursuant non performance

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• DBE interventions (continued)– A second meeting with contractors chaired by the Deputy Minister Surty was

held on the 15 October 2012.• The meeting sort to get commitments from contractors to complete the schools

before builder’s holiday break in Dec 2012 without absolving them of the contractual obligations.

• Deputy Minister for Finance and Justice together DBE and DBSA officials were in attendance.

• Base Major, Leungo, Marnolda, Maunga Projects, Setheo, Trencon Construction, Armstrong Construction, Keren Kula Construction and SSI Mafuri JV were invited

• All contractors committed to compete the schools within the 2012 Calendar year, provided circumstances beyond their control do not interrupt progress.

– PSPs have been instructed to have weekly supervision to monitor Recovery Plans

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ASIDI 2012/13 TARGETS

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Inappropriate Electricity Sanitation Water

Province Eastern Cape 50 213 290 535Free State 20 103 12 61Gauteng 2 0 14 0 KwaZulu Natal 3 116 56 219Limpopo 3 137 37 83Mpumalanga 5 82 8 17North West 2 41 33 13Northern Cape 1 0 3 0 Western Cape 14 0 0 0 Total 100 692 453 928

The Targets includes 100 inappropriate, 692 electrification, 453 sanitation, 928 water projects.

ASIDI PROGRESS ON 100 INAPPROPRIATE SCHOOLS

• On 2012/13 Inappropriate schools implementation– COEGA (24), IDT (11) AND DRPWEC (15) have been appointed for the

implementation of the 50 schools in the EC.

• CDC– Site Development Plans have been approved and contract documentation is

complete– 22 schools have gone out to tender and tenders closed on the 12 October

2012– 2 schools have land issues which are being resolved with the province– Adjudication on the 25 October– Site handover is scheduled for the 25 November 2012

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• IDT EC– Site Development Plans have been approved and contract documentation is

complete– 10 schools have gone out to tender and all tenders closing on the 22 October

2012– Site handover is scheduled for the 16 November 2012

• DRPW EC– Most of the Site Development Plans have been approved and contract

documentation is underway– Schools going out to tender on the 29 Oct, 12 Nov and tenders closing on the

20 and 31 Nov respectively.– 3 schools will go out on tender in Jan 2013

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• On 2012/13 Inappropriate schools implementation• IDT FS is appointed for implementation of 10 schools in FS and has appointed

teams of professional service providers PSPs (engineers, quantity surveyor, architects, etc.), who will start with the preliminary designs.

• WCED – is appointed for implementation of 14 schools in WC and has WC Dept. of

Public Works as its implementing agent and teams of professional service providers PSPs (engineers, quantity surveyor, architects, etc.), who are in the process of undertaking preliminary designs.

– 6 schools have gone out to tender and closing in the 1st week of November– Additional 3 going out to tender in the 1st wk of Nov and the balance in the 2nd

week of November– The award is scheduled for January 2013

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ASIDI PROGRESS ON BASIC SERVICES

• On 2012/13 basic services implementation, – Mvula Trust’s appointment includes implementation of Water and Sanitation

in Limpopo and Eastern Cape for 2012/13 as well as Mpumalanga.– Implementation of Water, Sanitation and Electrification in FS, NC and Gauteng

will continue to be implemented by the provincial PED’s. – NW PED is the implementing agent of water and sanitation projects in NW.– ESKOM is appointed for the duration of ASIDI for Electrification.

• Appointment of additional implementing agents in KZN and EC for water and sanitation as well as Inappropriate schools (21) in Limpopo, Mpumalanga, North West, KZN and North Cape is in progress and will be finalized by end of October 2012.

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BUDGETS AND EXPENDITURE

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ASIDI: BASELINE BUDGET REDUCTION

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• No roll-over has been granted on the R700 million which was not spent for the 2011/12 financial year

• R76.084 million was spent from the 2011/12 financial year allocation.• R250 million has been cut from the 2012/13 allocation • R2,065 billion is the available budget for the 2012/13 implementation

MTEF ALLOCATIONS BASELINE BASELINE REDUCTION

R'000 R'000

2011/12 R 700 000 No roll over

2012/13 R 2 315 000 R 2 065 000

2013/14 R 5 189 000 R 5 100 2652014/15 R 0

2015/16 R 0

TOTAL R 8 204 000 R 7 320 165

ASIDI: TOTAL EXPENDITURE

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• 2011/12 commitments were approximately R1 billion• R76.084 million was paid in 2011/12 and R944.9 million was carried forward into the

2012/13 financial year.• R2.0 billion is the allocated budget for 2012/13 and commitments carried forward are paid

from this allocated budget. • 18.19% of the R2.0 billion has been paid as at end of September 2012.• 51.01% of the current allocations has been committed.

Voted Funds

Expenditure

Commit-ments

Available Balance

% Spent (excluding commitments)

% Spent (including commitments)

a b c d=a-(b+c) e=b/a f=(b+c)/a R'000 R'000 R'000 R'000 SIBIG 2 065 000 375 547 636 164 1 053 289 18.19% 51.01%

ASIDI BUDGET ESTIMATES FOR THE 2012/13 PLANS

• The budget estimates for the 4 sub-programmes based on the assessment costs is R 3,82 billion.

• Due to no roll-over from 2011/12 allocations– Commitments from 2011/12 of approx. R1bil and the 2012/13 costs

estimated at R3,82 billion will be funded from the current reduced allocation of R2,065 billion

• The available balance from this financial year’s budget after 2011/12 commitments deduction is approx R1 billion

• Of the R3,82 billion estimated for 2012/13 targets, R1 billion is available.• Projects started in this year

– Will be implemented over two financial years, i.e 2012/13 and 2013/14 to avoid budget overrun.

– Will therefore be completed in the 2013/14 financial year.• Cash flows will be managed closely to keep expenditure within the

R2,065 billion available in 2012/13 financial year

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ASIDI PROGRAMME OF ACTIONIncluding 12/13 and 13/14 Plans

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INFRASTRUCTURE DELIVERY MANAGEMENT SYSTEM (IDMS):

The Programme will be delivered according to the Integrated Infrastructure Management System (IDMS) from the CIDB and National Treasury as depicted below.

PROGRAMME MANAGEMENT FRAMEWORK

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• The ASIDI Programme adheres to the Infrastructure Delivery Management System (IDMS) and has implemented the phases, stages and gates – Phase A: Programme Planning– Phase B: Project Implementation

• Stage 1: Delivery Planning• Stage 2: Professional Service Provider (PSP) Procurement• Stage 3: Design • Stage 4: Contractor Procurement• Stage 5: Works & Practical Completion• Stage 6: Final Completion and Hand-over• Stage 7: Project Closing

– Phase C: Programme Closure


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• As depicted in the Programme Delivery Process Map, the ASIDI programme has also implemented a comprehensive programme management approach including the following:– Scope Management– Cost Management– Time Management– Procurement and Contract Management– Monitoring and Reporting– Budgeting and Programme Accounting– Performance Management – Risk Management– Quality Management


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• Scope Management: The scope of the ASIDI will be managed through the scope management documents. Each scope management document must be approved according to the formal approval process.

• Cost Management: The National DBE has compiled a Standard Bill of Quantities (BoQ) for each type of project to be executed. PSP will be obliged to use the standardised bill of quantities for cost estimation.

• Time Management: The Department of Basic Education has adopted the project execution plan (PEP) approach from the IDMS as its approach to time management of the ASIDI projects.


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• Procurement and Contract Management: Appointment of Implementing Agents, Professional Service Providers and contractors is done within the context of section 217 of the Constitution and PFMA regulations 16A. Framework agreements will be established with PSP`s, IA`s and contractors for a period of 3 years.

• State-owned implementing agents may be appointed through a negotiated process in terms of the Intergovernmental Relations Act.

• The following contracts will be used, Memorandum of Understanding for state Implementing Agents, The NEC3 will be entered into with the Private Implementing Agents for all elements and PSP`s for each school individually, and JBCC (2000) between the IA and contractor


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• Monitoring and Reporting: DBE has adopted the IDMS Gateway System for the Monitoring, Reporting and Control of the project.

• Budgeting and Programme Accounting: Programme budgets will be updated with the actual cost for implementation for each programme phase; invoices will be paid within 21 days once verified against the certificates. Trenches will be managed and a reconciliation on all outstanding payments conducted.

• Performance Management: Key Performance Indicators (KPI`s) have been established and will be monitored on a quarterly bases through feedback from the monitoring and reporting process.


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• Risk Management:The programme manager must establish a risk register.

• The risk register must contain a risk description, category, evaluation and actions for the treatment of the risk. Key programme risks which will be managed include: – projects not delivered on time and expenditure behind cash flow project; – key information not available;– projects not completed on time or poor quality; – clash of dates and non-availability of key stakeholders; and – signboards erected late or with wrong details.

• Quality Management: a number of standards and guidelines have been compiled for each programme phase and all programme role-players will be required to adhere to these standards and guidelines.

DEVELOPMENT MANAGEMENT

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• Social (Including Stakeholder Community) Facilitation: DBE will ensure that communities are informed of all the developments occurring around their specific environment. This will include traditional leaders, School Governing Bodies (SGB`s), and the community through various forums.

ASIDI 2012/13 PLANS- RISK MITIGATION

• Involvement of PICC – To help remove bottlenecks such as ESKOM connections– Where there are access challenges– Integration of planning between infrastructure projects in

provinces and government contracts• Involvement of suppliers to ensure sufficient quantities of

Programme supplies• Allocation of Manageable projects to IAs to enhance effective

control• Increase in the number of contractors to spread the risk• HR Strategy in provincial Departments to enhance Monitoring• Monitoring Agreements with DRPW in Provinces for quality control

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ASIDI IMPLEMENTATION APPROACH

• The programme approach has been revised.• It is not limited to the existing relationships with DBE’s

implementing agents as the only mode of delivery. This has already demonstrated the risk and constraints.

• DBE is increasing its capacity to ensure that it is able to maintain a greater degree of control at project level.

• DBE is also beginning to encourage efficiency by allowing the slack capacity to be used to accelerate delivery where practical.

• There is a conversation underway between DBE and NT to revise the current allocations in the outer years.

ASIDI: IMPLEMENTATION APPROACH

• The following implementation measures and principles have been adopted and adhered to in the programmes:– Work Packages as a mechanism to manage the work breakdown structure

but, retain the economy and scale required to accelerate delivery.– The Project Cycle turnaround time can be reduced to accelerate the

programme and minimise bottlenecks. – Procurement bottlenecks be minimised by using a range of procurement

strategies and expanding the resource pool beyond DBE.– Adopt a mix of delivery modalities increasing the number and diversity of

implementing agents. – In addition to traditional procurement and procurement through

implementing agents, DBE has entered into strategic relationships with those PED’s who have already established their own resources panels. These rosters be made available to the programme in the procurement of professional service providers and contractors.

ASIDI: IMPLEMENTATION APPROACH

• The following implementation measures and principles will be adopted and adhered to in the programmes:– DBE will negotiate with other National Department of Public Works in

relevant provinces, their rosters are constituted of the relevant built environment skills sets and may already have a geographic focus.

– The DBE has initiated a process to implement a framework agreement procurement model.

– Implementing Agents, Professional Service Providers and Contractors are pre qualified. The services can be secured through their inclusion in a pre approved panel. DBE and the implementing agents have access to the panel appointed through the framework agreement. Thus reducing procurement through traditional open tender routes. It has the possibility of attracting larger contractors and professional teams. Project Teams will be assembled from the framework agreement.

ASIDI 2013/14 PLANS • 346 remain to be implemented in 2013/14• 328 in EC, 8 in WC and 10 in FS• 50 in EC have been issued to DBSA to star with the planning process• The remaining 75 in EC, 8 in WC and 10 in FS will also be issued to other

IAs to commence with Planning process • 203 Inappropriate schools EC have enrolment figures of below 135

learners– In line with the guidelines these schools cannot be provided with a full

compliment of infrastructure to schools with higher enrolment (over 135 learners)– DBE is working closely with the Province on rationalisation process to avoid delays

in implementation in the next financial year.

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THANK YOU

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19 october 2012 standing committee on appropriations (progress on accelerated schools...

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