Municipal Infrastructure Support Agent____________________________________________________

The Approach to Distribution Asset Management(ADAM)

Briefing to Energy Portfolio Committee

Date: Friday, 1 November 2013, Parliament, Cape Town

CONTENTS

1. INTRODUCTION

2. BACKGROUND ON MINI ADAM

3. ROLE OF MISA ON ADAM

4. MISA CURRENT SUPPORT ON ENERGY

5. FUTURE ROLE OF MISA ON ADAM

6. CONCLUSION & WAYFORWARD

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• The Portfolio Committee on Energy previously invited the Municipal Infrastructure Support Agent (MISA) to provide a briefing on the pilot project on the Approach to Distribution Asset Management (ADAM).

• ADAM is a programme initiated by the Department of Energy (DOE) with the aim of getting municipalities to address increasingly high levels of backlogs on maintenance and refurbishment of their electricity distribution assets.

• Since its establishment, MISA has been supporting low capacity municipalities to address key problems on their infrastructure for key services, including electricity distribution. The nature and extent of support is intended to assist municipalities realise ADAM objectives.

Background to ADAM

• In 2012 DoE, adopted a strategy called the Approach to Distribution Asset Management (ADAM).

• This multi phased programme is intended to address the electricity distribution challenges, and aimed at addressing the backlog in maintenance, refurbishment and upgrading of the Electricity Distribution networks.

• The initial work undertaken in implementing ADAM focused on addressing the capital and skills shortage that exists in the electricity distribution industry which was driven by the Electricity Distribution Industry (EDI) Holdings.

• The establishment of the Regional Electricity Distributors (REDs) was aimed as an institutional mechanism to address these challenges.

• Although EDI has since been disestablished and Regional Electricity Distributors (REDs) have been discontinued, there is still a need to address poor infrastructure maintenance and weak management capacity in electricity distribution

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ROLE OF MISA ON ADAM PROGRAMMEBackground to ADAM

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Currently MISA is a member of the National Steering Committee on the MINI ADAM

Programme.

The National Steering Committee chaired by DOE was established as governance

structure that should enable all the relevant key stakeholders to participate on the piloting

of the mini ADAM programme.

In September 2013, the National Steering Committee held its 1st meeting co-ordinated and

chaired by DOE where MISA together with other stakeholders were present.

At this meeting the DOE tabled the TORs for the National Steering Committee and role

this structure would provide regarding the programme.

The role was crafted as the provision of a national oversight , programme and project

management to the MINI ADAM Programme.

FUNCTION OF THE MINI ADAM STEERING COMMITTEE

• The Steering Committee is responsible for;– approving budgetary strategy, – defining and realising benefits, – monitoring risks related to the programme, – ensuring quality and – adherence to timeframes by the local municipalities

that received the allocation

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MANDATE OF MINI ADAM STEERING COMMITTEE (MASC)

considers and recommends approval of the business plans and achievement of outcomes.

ensures the project's scope aligns with the requirements of the stakeholder groups

provides those directly involved in the project with guidance on project business issues

ensures effort and expenditure are appropriate to stakeholder expectations

addresses any issue that have major implications for the project keeps the project scope under control as emergent issues force

changes to be considered reconciles differences in opinion and approach, and resolves

disputes arising from them reports on project progress to those responsible at a high level.

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MISA CURRENT DEPLOYMENT MODEL

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LOW CAPACITATED MUNICIPALITY (108 )

Individual Technical Experts (65)

Professional Services Providers (25 PSP)

CAPACITY BUILDING PROGRAMME

CURRENT SUPPORT TO MUNICIPALITIESTechnical Support

• MISA currently has 65 technical (engineering and planning) professionals deployed to support a total of 107 municipalities throughout the country.

• In addition to the deployed professionals a total of 25 Professional Service Providers (PSPs) have been contracted and assigned to support prioritised municipalities.

• The main role of PSPs is to assist each municipality in addressing specific issues pertaining to the infrastructure and service delivery backlogs and effective maintenance of existing infrastructure.

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CURRENT SUPPORT TO MUNICIPALITIES

• A total of 91 municipalities have been assisted to develop and adopt Integrated Support Plans; these are part of the 108 municipalities prioritised by CoGTA for LGTAS support.

• Included among these 108 municipalities are the 23 (+1) districts selected by cabinet for focussed support towards the reduction of their high service backlogs.

• An Integrated Support Plan (ISP) for each municipality was informed by the outcome of a diagnostic assessment conducted.

• The approach is to ensure that support provided is tailor-made for each municipality to respond to its peculiar challenges identified during the assessment.

• Support being provided to these municipalities is intended to mainly address their respective weaknesses in infrastructure and service provision.

CURRENT SUPPORT ON ENERGYMunicipal Capacity Building: Electricity Supply

MISA’s initiative aimed at strengthening the capacity of municipalities to perform the electricity distribution function entails the following:•Placement of electrical apprentices for operation and maintenance of distribution infrastructure.•Training of officials in municipalities’ electricity/ technical departments focusing on the electricity distribution and solar/renewable energy supply.•Supporting municipal officials and unemployed graduates qualified in the electricity field to register with relevant professional bodies.•Supporting and facilitating the trade testing for both municipal officials and unemployed graduates.•Granting of bursary to students in electrical engineering and related fields. •Currently a total of 234 Electrical Apprentices are placed in 25 municipalities under 6 Provinces (EC, KZN, LM, MP, NC and NW), for experiential learning. •In addition 29 candidates are undergoing experiential learning in municipalities across all nine provinces towards qualifying as Artisans in the electricity sector.

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CURRENT SUPPORT ON ENERGYMunicipal Capacity Building: Electricity Supply Cont…

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PROVINCE MUNICIPALITY NO. OF ELECTRICAL APPRENTICES

Eastern Cape Meletswai, Senqu, King Sabata Dalindyebo, Mnquma

8

Kwazulu-Natal Msunduzi, Mpofana, Mandeni, Newcastle, Kwadukuza

69

Limpopo Blouberg, Modimolle, Polokwane 17

Mpumalanga Albert Luthuli, Lekwa, Thaba Chweu, Umjindi, Nkomazi

39

Northern Cape Sol Plaatjie, Kamiesberg, Kareeberg, Kai!Garib

11

North West Rustenburg, Madibeng, Matlosana 10

Total 134

LIST OF MINI ADAM PROJECTS

Name of Municipality Scope of Work Allocation “000

Nelson Mandela Metro Upgrading of two Substations and Switch Gears

35 000

Mangaung Metro Upgrading of 132kv lines Feeder lines

25 000

Msunduzi LM Upgrading of Primary Network and substations

100 000

Sol Plaatje LM Upgrading of Substation 20 000

Tlokwe LM Replacement of 11KV line 20 000

Moqhaka LM New Over Head Line 66kv 20 000

Nala LM Substation and new infrastructure construction

20 000

Ngwathe LM Upgrading of bulk supply 20 000

King Sabata Dalindyebo Upgrading to a CBD Sub station

60 000

MISA SUPPORT TO MINI ADAM PROGRAMME

MISA plans to support identified municipalities in the following areas;

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Development of Asset Registers

Maintenance and Operations

Project Management

Investment, Networks &

Master Planning

Energy Losses Management Pricing and Tariff

Structure

Technical Skills Development

(Capacity Building Programme)

Technical Standards Improving

Efficiency in Procurement

CONCLUSION & WAYFORWARD

• The support indicated will only be provided to local municipalities where MISA has Technical Experts.

• MISA has also put in place plans to recruit 9 additional Electrical Engineers that will be deployed to each province to augment the existing limited support.

• Through the capacity building programme MISA will be training addition 29 candidates are undergoing experiential learning in municipalities across all nine provinces towards qualifying as Artisans in the electricity sector.

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THANK YOU!!!!!!!

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