dbe briefing to the standing committee on appropriations 03 september 2014 cape town

DBE BRIEFING TO THE STANDING COMMITTEE ON APPROPRIATIONS

03 September 2014

Cape Town

ASIDI BACKGROUND

2

SCHEDULE 7: SCHOOL INFRASTRUCTURE BACKLOGS GRANT (Brief outline of the conceptualization)

• 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 Schools Infrastructure Delivery Initiative)

3

ASIDI IMPLEMENTATION STRUCTURE

4

ASIDI : PROGRAMME IMPLEMENTATION STRUCTURE

5

• The programme is driven by Department of Basic Education (DBE) which has established a Project Support Unit to support the Programme Manager.

• The DBE works closely with its provincial counterparts at Provincial Education Departments (PEDs) to prioritise and assess the needs for specific projects.

• PEDs interact with the Provincial Public Works Departments as custodians to coordinate the improvement of the facilities.

• DBE appoints Implementing Agents to manage batches of projects.

• The Implementing Agents appoint professional service providers and contractors to execute the work.

ASIDI : PROGRAMME IMPLEMENTATION STRUCTURE

6

ASIDI SCOPE

7

ASIDI SCOPE OF WORKS

Inappropriate Electricity Sanitation WaterProvinces Baselin

eActual to date

Baseline

Actual to date

Baseline Actual to date

Baseline Actual to date

Eastern Cape

442 458 317 221 344 270 619 538

Free State 30 30 143 87 68 46 101 64Gauteng 2 0 2 2 28 14 0 0KwaZulu Natal

3 3 116 156 140 50 230 255

Limpopo 3 3 142 5 77 78 121 102Mpumlanga

5 5 148 53 8 21 17 19

North West

2 2 41 4 29 21 16 15

Northern Cape

1 1 0 0 26 17 12 9

Western Cape

22 25 7 7 21 21 4 4

Total 510 527 916 535 741 538 1120 1006

ASIDI SCOPE OF WORKS (objectives and intentions)

• On all four sub-programs the services provided adhere to GUIDELINES RELATING TO PLANNING FOR PUBLIC SCHOOL INFRASTRUCTURE

• Inappropriate structures (entire mud schools, plankie schools, corrugated sheeting structures and prefab schools which are no longer fit-for-purpose)

– Learning and teaching spaces, water, sanitation, electricity and furniture• Water Supply (schools that never had water)

– Municipal connection where reticulation exists.– Ground water exploration and boreholes where the yield and water quality is of acceptable

standard. – Rain water harvesting and Elevated water tanks for storage of potable water for immediate

or future use.• Sanitation provision (schools that never had sanitation)

– Waterborne sewerage systems where sufficient water is available, – Enviro-loos as well as – Ventilated Improved Pit (VIP) Latrines.

• Electrification (school that never had electricity)– As far as is possible Schools are connected to the electrical grid through ESKOM.– In those instances where Grid Electricity is not available Solar Electricity is provided.

•

EASTERN CAPE PROVINCEInappropriate Schools

IA Date of Appointment

No of projects Allocated as per Appointment

letter

No of projects Cancelled due to

sufficient infrastructure

No of Projects Cancelled due to

closures

No of Projects added as change

of scope

Total No of Projects to be implemented

DBSA BATCH 1 13-JUNE-11 50 1 0 0 49

DBSA BATCH 2 27-NOVEMBER-12 50 0 0 0 50

CDC 23-AUGUST-12 32 8 0 1 25

IDT Batch 1 23-AUGUST-12 14 2 0 0 12

IDT Batch 2 06-JUNE-13 36 0 0 0 36

EC DPRW 23-AUGUST-12 16 0 3 3 16

National DPW 30-SEPTEMBER-13 36 0 0 0 36

Total 234 11 3 4 224

1. Number of projects being implemented

EASTERN CAPE PROVINCEWater and Sanitation – No of Projects Implemented

IA Date of Appointm

ent

No of projects Allocated as per

Appointment letter




closures


of scope


TMT (BATCH1) WATER

Oct 2011

84 0 0 0 84

TMT (BATCH 1 ) SANITATION

60 0 0 0 60

Total (TMT) BATCH 1 144 0 0 0 144

TMT (BATCH 2) WATER

May 2013

121 18 17 20 106

TMT (BATCH 2) SANITATION

57 27 11 30 49

Total (TMT) BATCH 2 178 45 28 50 155

IDT (BATCH 1) WATER

May 2013

134 6 0 0 128

IDT (BATCH 1) SANITATION

79 7 0 0 72

Total (IDT) BATCH 1 213 13 0 0 200

IDT(BATCH 2) WATER

June 2013

96 2 0 0 94

IDT (BATCH 2) SANITATION

59 13 0 0 46

Total (IDT) BATCH 2 155 15 0 0 140

CSIR(BATCH 1) WATER May 2013 165 0 39 0 126

CSIR(BATCH 1) SANITATION

May 2013 50 0 7 0 43

Total (CSIR) BATCH 1 215 0 46 0 169

FREE STATE PROVINCEInappropriate Schools


No of projects Allocated as

per Appointment

letter

No of projects Cancelled due to sufficient

infrastructure

No of Projects Cancelled due

to closures


of scope


IDT 21-Jun-12 10 0 0 0 10

DBSA 27-Nov-12 10 0 0 1 11

FS DoE 14-May-13 10 3 0 2 9

Total 30 3 0 3 30

FREE STATE PROVINCEWater and Sanitation


No of projects

Allocated as per

Appointment letter

No of projects

Cancelled due to

sufficient infrastructur

e

No of Projects

Cancelled due to

closures

No of Projects added as change of

scope

Total No of Projects to

be implemented

FS DoE Water

14-Dec-12 37 0 3 0 34

FS DoE Sanitation

14-Dec-12 36 0 3 0 33

FS DoE Electricity

14-Dec-12 64 0 13 12 63

Total 137 0 19 12 130

GAUTENG PROVINCEWater and Sanitation

1. Number of projects:


No of projects Allocated as per Appointment

letter




closures


of scope


Electricity:

2011/2012 04-May-12 2 0 0 0 2

Water:

2013/2014 04-May-12 0 0 0 10 10

Sanitation:

2011/2012 04-May-12 7 7 0 7 7

2013/2014 04-May-12 14 14+4 0 11 7

Total 23 25 0 28 26

KWAZULU NATAL PROVINCEInappropriate Schools



per Appointment

letter


infrastructure


to closures


of scope


Adopt A school 27-Nov-13 3 0 0 0 3

Total 3 0 0 0 3

KWAZULU NATAL PROVINCEWater and Sanitation


No of projects

Allocated as per

Appointment letter

No of projects

Cancelled due to


No of Projects

Cancelled due to

closures


scope


be implemented

MW WATER 07-Dec-12 79 7 1 0 71

MW SANITATION

07-Dec-12 10 3 0 0 7

Total (MW) 89 10 1 0 78

CDC WATER 07-Dec-12 70 4 2 0 64

CDC SANITATION

07-Dec-12 20 2 2 0 16

Total (CDC) 90 6 4 0 80

IDT WATER 07-Dec-12 69 2 1 7 73

IDT SANITATION

07-Dec-12 20 2 1 10 27

Total (IDT) 89 4 2 17 100

LIMPOPO PROVINCEInappropriate Schools



per Appointment

letter


infrastructure


to closures


of scope


DBSA 27-Nov-12 3 0 0 0 3

Total 3 0 0 0 3

LIMPOPO PROVINCEWater and Sanitation

IA Date of Appointmen

t

No of projects

Allocated as per

Appointment

letter

No of projects

Cancelled due to


e

No of Projects

Cancelled due to

closures


of scope


be implemente

d

Water 10-May-2012 77 11 0 0 66

Sanitation 10-May-2012 38 2 0 0 36

Total 10-May-12 115 13 0 0 102

MPUMALANGA PROVINCEInappropriate Schools



per Appointment

letter


infrastructure


to closures


of scope


DBSA

27-NOVEMBER -

12 5 0 3 3 5

Total 5 3 3 5

MPUMALANGA PROVINCEWater and Sanitation – No of Projects Implemented

IA Date of Appoint

ment


per Appointment

letter


infrastructure


to closures


scope


TMT (BATCH1) WATER

May 2012

25 0 6 0 19

TMT (BATCH 1 ) SANITATION

May 2012

10 0 1 12 21

Total (TMT) BATCH 1

35 0 7 12 40

NORTH WEST PROVINCEInappropriate Schools



per Appointment

letter


infrastructure


to closures


of scope


DBSA

27-NOVEMBER -

12 2 0 1 1 2

Total 2 0 1 1 2

NORTH WEST PROVINCEWater and Sanitation


No of projects

Allocated as per

Appointment letter

No of projects

Cancelled due to


e

No of Projects

Cancelled due to

closures


scope


be implemented

Batch 1:

DoE NW 5 Dec 2011 28 13 0 0 15

** IDT Water 3 0 0 0 3

** IDT San 12 0 0 0 12

Batch 2:

DoE NW Water

12-Sep-13 12 1 0 0 11

DoE NW San 12-Sep-13 9 1 0 0 8

Total 49 15 0 0 34

NORTHERN CAPE PROVINCEInappropriate Schools



per Appointment

letter


infrastructure


to closures


of scope


DBSA27-NOVEMBER

-12 1 0 1 1 1

Total 1 0 1 1 1

NORTHERN CAPE PROVINCEWater and Sanitation


No of projects Allocated as per

Appointment letter




closures


of scope


PED WATER 14-Dec-12 5 4 0 0 1

PED SANITATION

14-Dec-12 21 1 2 on hold 0 20

Total 26 5 2 on hold 0 21

Split on above per PED appointed IA:

PED water 9 4 0 0 5

PED sanitation 1 0 0 0 1

IDT San 7 1 1 On Hold 0 6

Public Works San 9 0 1 On Hold 0 9

Total 26 5 2 On Hold 0 21

WESTERN CAPE PROVINCEInappropriate Schools



per Appointment

letter


infrastructure


to closures


of scope


WCED 17-MAY-12 25 (14 +11) 0 0 0 25

Total 25 25

ELECTRIFICATION



per Appointment

letter


infrastructure


to closures


of scope


EC OCT-2011 317 82 23 9 221

KZN 59 13 2 112 156

LIMPOPO 21 16 0 0 5

MPUMALANGA 135 70 13 1 53

NW 5 0 1 0 4

Total 537 181 39 122 439

ASIDI PROGRESS

27

– Overview of historic performance– None financial performance

– Financial performance

ASIDI implementation stages

28

ASIDI IMPLEMENTATION PROCESSES

• Building of a school is a multi year process and various factors contribute to the determination of the period to complete one.

• The optimistic estimated target by the DBE is 18 months from project initiation to practical completion.

• Some of the factors which contribute towards increased time are: – Many of the schools require decanting before commencing with construction of the works.– The size of the school– State of access roads to the schools for mobilisation and delivery of material to the sites.– Poor performance by service providers and related terminations– IAs Internal processes

• Typical stages followed for the building of schools


• Appointed Implementing Agents (IAs) to build new schools:– DBSA (121), IDT (58), CDC (24), ECDPW (16), NDPW (36), FSED (9) and WCED (25)• Examples of actual implementation periods by some of the IAs:– In the EC, DBSA was appointed in June 2011 and the first school was completed in October

2012 and the last was completed in March 2014. Construction started in Jan 2012.– Therefore construction period took between 10 months and 26 months– The entire process however took 33 months.


• In the WC:– WCED appointed on the 17th May 2012 and the first school

reached PC on the 06th May 2014.– Construction started in Jan 2013. Where termination of

contracts is experienced the period is extended further. – The entire process however took 24 months. • In the Mpumalanga:– DBSA was appointed on the 17th November 2012.– Construction started in Dec 2013 and the first school is

scheduled to reach PC at the end of August 2014 (8 months).

– The entire process would have taken 21 months.

ASIDI IMPLEMENTATION PROCESSES• In the EC:– IDT, CDC and ECDPW were appointed in May 2012– IDT, Construction started in Feb 2013 and the first school

was completed on the 07th January 2014. 13 months of construction. Entire process took 19 months.

– CDC, Construction started in Jan 2013 and the first school was completed on the 03rd March 2014. 14 month of construction. The process thus took 21 months.

– No school from ECDPW• In the FS:– IDT, was appointed in June 2012 but to date no school

has been completed.

ASIDI PROGRESS – INAPPROPRIATE SCHOOLS

Sub Programme Inappropriate schools

Fin Year Target 2011/12 2012/13 2013/14 2014/15 2015/16

APP targets 510 - 49 140 150171

No of schools and the year of roll out

49 151 99

Year of Completion 17 36 22

• Appointed IAs are DBSA, IDT, CDC, Adopt A Schools, ECDPW, NDPW, FSED and WCED.

• 299 schools have been allocated to IAs. The balance of the projects are in EC.

• Since inception 75 schools have been completed as follows:

– In Eastern Cape 70 schools have been completed

– In WC 4 schools have been completed

– In Mpumalanga 1 school has been completed

ASIDI PROGRESS - WATER

Sub Programme Water

Fin Year Target 2011/12 2012/13 2013/14 2014/15

App Targets 1120 188 932 - -

Completed 225 156 49 20

• Implementing Agents are KZNED, WCED, NWED, GED, FS ED, CSIR, Mvula Trust, IDT, CDC and Mhlathuze Water. All projects are in implementation.

• Since inception 225 schools have been completed as follows:– In Eastern Cape - 84– In FS - 30– In Gauteng – n/a– In KZN - 20– In Limpopo - 84– In Mpumalanga - nil– In NW - 3– In NC - nil– In WC - 4

ASIDI PROGRESS - SANITATION

Sub Programme Sanitation

Fin Year Target 2011/12 2012/13 2013/14 2014/15

APP targets 741 354 387 - -

Completed 275 188 64 23

• Implementing Agents are KZNED, WCED, NWED, GED, FS ED, CSIR, Mvula Trust, IDT, CDC and Mhlathuze Water. All projects are in implementation.

• Since inception 275 schools have been completed as follows:– In Eastern Cape - 103– In FS - 13– In Gauteng – 14– In KZN - 50– In Limpopo - 68– In Mpumalanga - nil– In NW - 6– In NC - nil– In WC - 21

ASIDI PROGRESS - ELECTRIFICATION

Sub Programme Electrification

Fin Year Target 2011/12 2012/13 2013/14 2014/15

APP Targets 914 231 683

Completed 265 144 77 44

• Implementing Agents are WCED, GED, FS ED, and ESKOM. All projects are in implementation.

• Since inception 265 schools have been completed as follows:– In Eastern Cape - 152– In FS - 23– In Gauteng – 2– In KZN – 43– In Limpopo - 5– In Mpumalanga - 31– In NW - 2– In NC - n/a– In WC - 7

ASIDI EXPENDITURE (Financial Performance)

37

ASIDI ACTUAL EXPENDITURE AND PROJECTED ALLOCATIONS

2011/12 Expenditure

2012/13 Expenditure

2013/14 Expenditure

2014/15 Allocation

Forward Estimates

2015/16 2016/17

76 084.00

859 628.00

1 392 307.20

2 938 503

2 433 310

2 610 662

• In 2011/12 allocations were R700mil and Expenditure was R76mil (10%)

• In 2012/13 allocations were R2,065mil and expenditure was R859mil (42%)

• In 2013/14 allocations were R1,955mil and expenditure was R1,357mil (69%)

• Total spent for the firs 3 years was R2,293mil

• Expenditure on the current allocation is R365mil and invoices in process are R244 mil

• Therefore adjusted expenditure is R609mil which is 24% of the allocation.

COMMITMENTS / EXPENDITURE - 2014/15 Fin Year (1)

PROV IMPLEMENTING AGENT TOTAL

COMMITMENT

Actual Exp: Inception to 2014-03-31

Expenditure APRIL 2014

Expenditure MAY 2014

Expenditure JUNE 2014

Expenditure JULY 2014

Balance / Commitment at

2014/07/31

% Done

EC 6 038 007 040R 1 676 020 808R 14 215 482R 17 148 039R 46 674 873R 111 652 573R 4 172 295 265R 30.9%EC-CDC: 539 869 450R 287 237 873R 1 928 190R 28 978 514R 221 724 873R EC-CSIR: 132 660 234R 21 732 412R 1 635 916R 109 291 906R EC-DBSA: 2 832 910 963R 967 240 561R 82 674 059R 1 782 996 344R EC-DRPW: 391 599 934R 99 966 033R 34 057 111R 257 576 791R EC-NDPW: 591 968 315R -R 591 968 315R EC-IDT: 1 364 148 976R 214 021 985R 11 287 443R 10 689 572R 1 128 149 976R EC-MvT: 184 849 167R 85 821 944R 14 215 482R 4 224 681R 80 587 060R

FS 1 465 424 451R 179 870 465R -R 831 166R 35 269 972R 33 188 348R 1 216 264 499R 17.0%FS-DBSA: 565 402 650R 33 886 844R 33 188 348R 498 327 457R FS DoE: 376 288 491R 15 348 719R 831 166R 360 108 605R FS-IDT: 523 733 310R 130 634 902R 35 269 972R 357 828 437R

GP 36 059 769R 5 531 202R -R -R -R 9 391 605R 30 528 567R 41.4%GP-DoE: 36 059 769R 5 531 202R 9 391 605R 21 136 962R

KZN 477 051 443R 100 214 255R -R 6 198 762R 16 990 277R -R 353 648 149R 25.9%KZN-Adopt-A-School: 47 941 370R 1 000 000R 46 941 370R KZN-CDC: 107 739 823R 25 814 322R 2 729 129R 79 196 373R KZN-DoE: 49 714 390R 34 441 881R 15 272 509R KZN-IDT: 123 590 582R 29 996 925R 12 240 682R 81 352 975R KZN: Mhlatuze Water: 148 065 278R 8 961 128R 6 198 762R 2 020 466R 130 884 922R

LIM 291 694 914R 111 175 519R -R -R -R 12 241 059R 168 278 335R 42.3%LIM-DBSA: 99 437 148R 7 222 809R 12 241 059R 79 973 280R LIM-IDT: 61 174 426R 39 745 435R 21 428 991R LIM-MvT: 131 083 339R 64 207 275R 66 876 064R

COMMITMENTS / EXPENDITURE - 2014/15 Fin Year (2)

PROV IMPLEMENTING AGENT TOTAL

COMMITMENT

Actual Exp: Inception to 2014-03-31





Balance / Commitment at

2014/07/31

% Done

MP 261 544 208R 32 188 714R -R -R 3 195 774R 25 222 514R 200 937 205R 23.2%MP-DBSA: 121 083 161R 32 188 714R 25 222 514R 63 671 932R MP-MvT: 140 461 047R -R 3 195 774R 137 265 273R

NC 53 879 179R 3 960 685R -R -R -R -R 49 918 493R 7.4%NC-DBSA: 32 355 744R 3 960 685R 28 395 059R NC-DoE: 21 523 434R -R 21 523 434R

NW 130 602 096R 8 349 205R 15 990 261R -R -R 4 267 076R 101 995 555R 21.9%NW-DBSA: 98 544 679R 8 349 205R 4 267 076R 85 928 399R NW-DoE: 32 057 417R -R 15 990 261R 16 067 156R

ESKOM 125 430 762R 26 235 761R -R -R -R -R 99 195 001R 20.9%Eskom All Provinces 125 430 762R 26 235 761R 99 195 001R

PSU 134 004 674R 110 405 383R -R -R -R 12 440 651R 11 158 639R 91.7%PSU - BBP 66 909 629R 53 847 830R 3 846 498R 9 215 301R PSU - BTKM 67 095 044R 56 557 553R 8 594 154R 1 943 338R

SUB TOTAL - EXCLUDING WC 9 013 698 534R 2 253 951 998R 30 205 743R 24 177 968R 102 130 896R 208 403 827R 6 404 219 708R 29.1%

WC 1 070 466 931R 432 928 000R -R -R 115 402 000R 522 136 931R 51.2%WC-DoE: 1 070 466 931R 432 928 000R 115 402 000R 522 136 931R

GRAND TOTAL 10 084 165 465R 2 686 879 998R 30 205 743R 24 177 968R 102 130 896R 323 805 827R 6 926 356 638 31.4%

CASH FLOW COMPARISON AGAINST NT ALLOCATION

PROV IMPLEMENTING AGENT April 2014 -

4% R'000

May 2014 - 5%

R'000

June 2014 - 8%

R'000

July 2014 - 10%

R'000

NT Budget 4 Months

R000





Actual Exp 4 Months

R000

Exp vs NT Budget 4 Months

EC 63 892R 79 865R 127 783R 159 729R 431 269R 14 215 482R 17 148 039R 46 674 873R 111 652 573R 189 691R 44%EC-CDC: 4 941R 6 176R 9 882R 12 352R 33 351R 1 928 190R 28 978 514R 30 907R 93%EC-CSIR: 1 954R 2 442R 3 907R 4 884R 13 187R 1 635 916R 1 636R 12%EC-DBSA: 19 124R 23 905R 38 248R 47 810R 129 087R 82 674 059R 82 674R 64%EC-DRPW: 5 344R 6 680R 10 688R 13 359R 36 071R 34 057 111R 34 057R 94%EC-NDPW: 10 070R 12 588R 20 140R 25 175R 67 974R -R 0%EC-IDT: 20 388R 25 485R 40 776R 50 970R 137 620R 11 287 443R 10 689 572R 21 977R 16%EC-MvT: 2 071R 2 589R 4 142R 5 177R 13 979R 14 215 482R 4 224 681R 18 440R 132%

FS 20 570R 25 712R 41 139R 51 424R 138 844R -R 831 166R 35 269 972R 33 188 348R 69 289R 50%FS-DBSA: 7 664R 9 580R 15 328R 19 160R 51 732R 33 188 348R 33 188R 64%FS DoE: 5 843R 7 304R 11 687R 14 608R 39 442R 831 166R 831R 2%FS-IDT: 7 062R 8 828R 14 124R 17 655R 47 669R 35 269 972R 35 270R 74%

GP 470R 588R 940R 1 175R 3 174R -R -R -R 9 391 605R 9 392R 296%GP-DoE: 470R 588R 940R 1 175R 3 174R 9 391 605R 9 392R 296%

KZN 7 264R 9 080R 14 528R 18 160R 49 032R -R 6 198 762R 16 990 277R -R 23 189R 47%KZN-Adopt-A-School: 838R 1 047R 1 676R 2 095R 5 656R -R 0%KZN-CDC: 1 769R 2 212R 3 538R 4 423R 11 942R 2 729 129R 2 729R 23%KZN-DoE: 249R 311R 498R 623R 1 681R -R 0%KZN-IDT: 1 913R 2 391R 3 825R 4 781R 12 909R 12 240 682R 12 241R 95%KZN: Mhlatuze Water: 2 495R 3 119R 4 991R 6 238R 16 843R 6 198 762R 2 020 466R 8 219R 49%

LIM 3 033R 3 791R 6 065R 7 581R 20 470R -R -R -R 12 241 059R 12 241R 60%LIM-DBSA: 1 322R 1 653R 2 645R 3 306R 8 927R 12 241 059R 12 241R 137%LIM-IDT: 816R 1 020R 1 631R 2 039R 5 506R -R 0%LIM-MvT: 894R 1 118R 1 789R 2 236R 6 037R -R 0%

MP 4 208R 5 260R 8 416R 10 520R 28 403R -R -R 3 195 774R 25 222 514R 28 418R 100%MP-DBSA: 1 639R 2 049R 3 278R 4 097R 11 063R 25 222 514R 25 223R 228%MP-MvT: 2 569R 3 211R 5 138R 6 423R 17 341R 3 195 774R 3 196R 18%

NC 588R 735R 1 175R 1 469R 3 967R -R -R -R -R -R 0%NC-DBSA: 245R 306R 490R 613R 1 654R -R 0%NC-DoE: 343R 428R 685R 857R 2 313R -R 0%

NW 1 296R 1 620R 2 592R 3 241R 8 749R 15 990 261R -R -R 4 267 076R 20 257R 232%NW-DBSA: 809R 1 012R 1 619R 2 024R 5 464R 4 267 076R 4 267R 78%NW-DoE: 487R 608R 974R 1 217R 3 286R 15 990 261R 15 990R 487%

WC 15 868R 19 835R 31 736R 39 670R 107 108R -R -R -R -R -R 0%WC-DoE: 15 868R 19 835R 31 736R 39 670R 107 108R -R 0%

ESKOM -R -R -R -R -R -R -R -R -R -R #DIV/0!Eskom (All Provinces) -R -R -R -R -R -R #DIV/0!Unallocated 353R 441R 705R 882R 2 380R 0 0%GRAND TOTAL 117 540R 146 925R 235 080R 293 850R 793 396R 30 205 743R 24 177 968R 102 130 896R 195 963 176R 352 478R 44%

4 MONTH CASH FLOW COMPARISON - AGAINST IA SUBMISSIONS (1)

PROV IMPLEMENTING AGENT Cash Flow Date Cash Flows from

Ias - 4 Months R000

Actual Exp 4 Months R000


EC 283 601R 189 691R 67%

EC-CDC (Coega Dev Corp): 2014/01/31 129 755R 30 907R 24%

EC-CSIR: 2014/07/31 15 798R 1 636R 10%

EC-DBSA: (50 Schools) 2014/07/31 73 590R 82 674R 112%

EC-DRPW: 2014/06/30 59 193R 34 057R 58%

EC-NDPW: Not submitted -R -R #DIV/0!

EC-IDT: 2014/02/28 5 265R 21 977R 417%

EC-MvT: Outdated -R 18 440R #DIV/0!

FS 260 201R 69 289R 27%

FS-DBSA: (11 Schools) 2014/07/31 64 886R 33 188R 51%

FS DoE: Outdated -R 831R #DIV/0!

FS-IDT: (10 Schools) 2013/11/08 195 315R 35 270R 18%

GP -R 9 392R #DIV/0!

GP-DoE: (Exp from Aug '14) 2014/06/30 -R 9 392R #DIV/0!

KZN 107 985R 23 189R 21%

KZN-Adopt-A-School Foundation: 2014/07/08 8 919R -R 0%

KZN-CDC: Outdated -R 2 729R #DIV/0!

KZN-DoE: None -R -R #DIV/0!

KZN-IDT: 2014/06/30 70 825R 12 241R 17%

KZN: Mhlatuze Water: 2014/06/30 28 241R 8 219R 29%

4 MONTH CASH FLOW COMPARISON - AGAINST IA SUBMISSIONS (2)

PROV IMPLEMENTING AGENT Cash Flow Date Cash Flows from

Ias - 4 Months R000

Actual Exp 4 Months R000


LIM 21 948R 12 241R 56%

LIM-DBSA: (3 Schools) 2014/07/31 21 948R 12 241R 56%

LIM-IDT: None -R -R #DIV/0!

LIM-MvT: Outdated -R -R #DIV/0!

MP 37 439R 28 418R 76%

MP-DBSA: (5 Schools) 2014/07/31 37 439R 25 223R 67%

MP-MvT: Outdated -R 3 196R #DIV/0!

NC 3 528R -R 0%

NC-DBSA: (1 School) 2014/07/31 3 528R -R 0%

NC-DoE: Outdated -R -R #DIV/0!

NW 12 155R 20 257R 167%

NW-DBSA: (2 Schools) 2014/07/31 12 054R 4 267R 35%

NW-DoE: 2014/07/31 101R 15 990R 15882%

WC 30 198R -R 0%

WC-DoE: 2014/01/06 30 198R -R 0%

ESKOM -R -R #DIV/0!

Eskom (All Provinces) -R -R #DIV/0!

Unallocated Unallocated -R #DIV/0!

Unallocated -R #DIV/0!

GRAND TOTAL 757 055R 352 478R 47%

Graphs

Indicative figure of R609 mil at end of August

R3.3 Bil - IRM

R2.9 Bil - NT

R2.2 Bil - EFMS

45

COMPARISON

Commitments In Summary:

Total Commitment since Inception: R10 084 165 565

Total Expenditure since Inception: R 3 167 200 431 (31.4%)

Outstanding R 6 916 965 134 (68.6%)

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Expenditure against 2014/15 NT Allocation:

ASIDI Allocation 2014/15: R2 938 503 000Minus WC: (R 396 697 000)

R2 541 806 000Actual Expenditure at 2014/07/31 R 364 918 434 ( 14.4%)Balance at 2014/07/31: R2 176 887 566 ( 85.6%)

CLAIMS IN PROCESS

COEGA EC 3 087 226.91R PUBLIC WORKS E/C 29 323 791.42R CSIR EC 12 809 856.36R DBSA 89 068 759.39R IDT EC STRUCT 11 578 402.20R IDT EC W/S 23 293 435.01R MVULA TRUST EC 4 821 957.21R MVULA TRUST: MP 13 597 820.36R IDT F/S 36 095 489.48R IDT KZN 4 954 002.62R IDT LIMPOPO 4 815 227.55R MHLATHUZE WATER 9 186 752.44R COEGA KZN 822 984.03R Adopt a School 770 854.88R

In Process 244 226 559.86R

Already through BAS 364 918 433.50R Adjusted Expenditure 609 144 993.36R

(Adjusted figure represents 24% of Annual allocation)

CHALLENGES AND LESSONS LEARNED

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ASIDI CHALLENGES AND LESSONS LEARNED

ASIDI – Challenges and Lessons learned

• ASIDI is the first infrastructure programme that is being implemented by DBE. DBE therefore appointed the Programme Manager and the Programme Support Unit in October 2011 as an attempt to increase the technical capacity the programme requires.– However, the unit remains challenged and limited in its ability to

speed up implementation as it has limited authority and has to operate through the existing DBE structures which in their nature are not aligned to infrastructure delivery processes such as procurement, financial accounting, project and information management systems, etc.

– DBE has not been able to ramp up and implement ASIDI at the required speed due to the structure of the unit and internal processes.

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• ASIDI expenditure was extremely low in the first year (Y0) of the grant 2011/12 and whereas it has improved slightly, it remains undesirably low in its (Y1) 2012/13. – One of the reasons is that the budget was made available

during the 2010 Mini-Budget and as a result there was no sufficient time to align the planning and budget cycles “Alignment Model” for the 2011/12 implementation.

– This resulted in an attempt to concurrently undertake planning and implementation through the limited technical resource capacity at DBE. Experience has proven that it takes a minimum of 6 months to plan and 12 months to construct a school. E.g DBSA MOA July 2011 and Construction started in Jan 2012.

• The urgency of the programme and lack of technical capacity at DBE necessitated the use of IAs as a mode of ASIDI delivery, IAs had to use their own procurement policies . 96% of them are government entities and were therefore faster to procure without having to go through competitive bidding. However it is apparent that technical capacity of many of these Implementing Agents is not sufficient to meet the requirements of the programme and this has resulted in poor performance. Currently DBE has 8 IA relationships on Inappropriate Schools and 10 on Water & Sanitation and 4 on Electrification.

– DBE has had to, through its limited technical capacity in the PSU work with IAs to improve performance than terminate these relations due to:

• Contracts between DBE and IAs are not firm enough to allow for quick termination and replacement

• There are limited government entities to use as IAs

• Procurement of alternative IAs would delay progress

• The PSU has finite technical capacity and cannot take over and manage projects after termination

• Therefore termination would have left DBE in a worse off situation (IPMP-ASIDI Unit)

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• IAs underestimated the capacity required from Professional Service Providers and contractors at project level– This resulted in over allocation of projects to both

PSPs and contractors.– Consequently they were over stretched and

performed poorly in most instances• Professional Service Providers are stretching their

resources thinly between the ASIDI programme and other infrastructure programmes resulting in delayed deliverables and lack of sufficient attention to details.

• It has been costly and complex to provide services in areas where the local government has not provided bulk infrastructure such as water, sanitation and electricity. ASIDI is limited in its ability to ensure sustainability of provided services beyond provision of capital infrastructure,

• Sustainable water supply provision by water service authorities• Sanitation maintenance, observation and monitoring of ground

water protection• Electrification at schools within villages with no electricity

• Electrification projects and electrification of Inappropriate schools were not being treated as a special projects by ESKOM, thus had to follow the

ordinary application processes.

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• Majority of the ASIDI backlogs are in the remote rural areas where access to the sites is difficult due to the topography and poor road conditions. This has resulted in difficulty in delivering materials to sites. In addition the roads are not accessible during rainy season. This has resulted in valid delays to construction progress and extension of time claims from contractors. Relevant authorities need to improve and maintain infrastructure.

• Poor performance of some contractors necessitated termination of contracts, replacement turnaround time has been too slow due to a variety of reasons and it has resulted in further delay to completion of projects.

– TBP contract was terminated on the 11 Sept 2012 and replacement contractors started in Dec 2012

– Therefore there is a need to have a database/panel of service providers from which DBE and IAs may procure.

• There are existing private companies and NGOs ( e.g. Adopt a School) who are implementing quality school projects around the country at a significantly low costs due to models of delivery , DBE has attempted to enter into such an agreement as pilot projects with great difficulty.

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• ASIDI reporting and information management is poor due to lack of systems. Acquisition of systems has proved to be impossible due to the prevailing moratorium. And this is leading to non compliance on reporting requirements.

• Critical implementation constraints were experienced, particularly in the Eastern Cape, with the amount of investment in the short period of time. This led to a shortage of bricks and cement.

• Implementing agents in the Eastern Cape must in particular consider the fact that the supply of cement, stone and aggregate are dominated by La Farge and that may lead to undue price inflation on behalf of the suppliers.

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• Critical supplies will have to be monitored on a monthly basis and such undue price increases would lead to the DBE delaying the award of packages to the Implementing Agents to cool down the market in the Eastern Cape.

• Over 200 schools are affected by rationalisation and mergers. Often schools issued to IAs had to be replaced by those with higher enrolments whilst ECDoE decide what it does with such schools.

• The list on ASIDI has been challenged in many instances due to a number of schools which have been excluded.

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WAY FORWARD ON ASIDI

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ASIDI - WAY FORWARD

• To mitigate against IA, PSP and Contractor resources MOAs have been amended and/or Addenda issued

– Limits IA PMs to managing 10 schools on IS and 35 on W&S– Limits PSPs to 5 IS and 35 W&S– Limits contractors to 3 schools– Provides for IA penalty clause– It gives DBE authority to take over schools in the event of non performance

• Establishment of Framework Agreements– DBE set about a process to establish Framework Agreement which is a resource/pool

of service providers from which DBE and IAs may procure, appoint, manage and pay service providers.

– DBE is in the process of evaluating received proposals– This resource will be available to DBE and IA’s and should assist with shortening of

procurement processes

• Required systems in implementation of ASIDI

• EFMS will be used as the programme management system on ASIDI

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ASIDI - WAY FORWARD

• To accelerate and conclude current ASIDI targets by 2015/16– Planning has been completed ito scoping and costing schools

– Rationalisation and Mergers has to be completed

– Framework agreements will be used, however condonation by NT, Accounting and Auditor General is required to allow contracting between IAs and service providers directly .

– Implementation of needed resources on the ASIDI unit and availing of necessary budgets by NT will be required.

– The use of required system through the services of the PSU will be implemented, therefore condonation required from relevant authorities

• Alternative construction Technologies ACT• DBE has established a task team to investigate available ACTs in the market

• Request for information specification document has been prepared and will be advertised

• DBE based on the available ACT will establishing norms and standards to be used for schools

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Website: www.education.gov.zaCall Centre: 0800 202 933 | [email protected]

Twitter: @DBE_SA | Facebook: DBE SA

End

dbe briefing to the standing committee on appropriations 03 september 2014 cape town

Documents

sufficient water

plankie schools

water quality

prefab schools

rain water

possible schools

number of projects

specific projects