dpw strategic plan and budget presentation to the portfolio committee 20 april 2010 strategic...

DPW STRATEGIC PLAN AND BUDGETPRESENTATION TO THEPORTFOLIO COMMITTEE

20 APRIL 2010

Strategic Management Unit20 April 2010 1

Table of Contents• Table of Contents

– Minister’s Foreword/ Priorities– The Medium-Term Strategic Framework (MTSF)– DPW Strategic Goals– Outcomes– DPW Programme structure– Public Works Branches– Key Branch initiatives– Public Entities reporting to Public Works– Budget

2Strategic Management Unit20 April 2010

Minister’s Overview

In terms of the medium-term period; the Minister has directed of the department’s senior managers to:

– Review, reshape and rejuvenate; – implement the New Growth Path and – Focus on the Core.

• Review, reshape and rejuvenate by ensuring:– Finalize the structure of the department – to support service delivery.– Service the core functions optimally.– Implement the core competency model and develop skilled and capable personnel.– Create centres of excellence – property management, construction management and

maintenance management.– Build IT capability – ensure integration of systems – effective management of

immovable assets.– Effective & efficient financial management – improve revenue collection & debt

management.– CBE; ASA; IDT & CIDB – improve delivery capability.– Effective financial management – financial processes; internal controls; revenue

collection and debt management.



• Pillars of the New Growth Path

– Renew commitment on BEE – monitoring procurement spend on BEE and through programme implementation.

– Strictly adhere to 30 days payment of invoices.

– Skills development across the built environment – role of CIDB and CBE & external partnerships.

– Transformation of both property & construction sectors – competitive; raise productivity and ensure broad-based inclusion.

– Increase uptake of young people in built environment and in other fields.

– Increase registration of professionals and support to emerging contractors.

– Role of IDT in delivery of social infrastructure – enhance focus on rural development, poverty eradication; education and health infrastructure; job creation.

– EPWP- a key response to the economic crisis; poverty alleviation and income

inequality through work opportunities.



– EPWP continued: 4,5m job opportunities; R5.2bn MTEF incentive allocation for various projects and R2,5bn to support labour-intensive projects in the social and environmental sectors. Beneficiary of Green Strategy provided in IPAP II.

– Agrement: ensure use of innovative and no-standard products through technical assessments.

– Development of Green Strategy for the built environment and related codes for public buildings.

– Energy efficiency for public buildings on course.

• Focusing on the Core– Support the developmental state objectives and policy priorities. – Use immovable asset footprint – rehabilitate buildings to balance

ownership/leasehold –finalize disposal policy.– Refurbishment of Land Ports of entry; dolomite projects; accessibility of

public buildings– Review service delivery models



– Implement the PMTE – realignment of the immovable asset management business to promote and improve service delivery and strategic planning. Focus on

• customer service – SLAs• Operational efficiencies: debtor’s book and revenue management.• Implement accrual system• Finalize new business model and business case.

• Improve on risk management and• Deal with fraud and corruption decisively !


Strategic Context: MTSF Priorities

The following priorities were selected by Public Works to inform planning:

• Speeding up growth and transforming the economy to create decent work and sustainable livelihoods;

• Massive programme to build social and economic infrastructure;

• Comprehensive rural development strategy linked to land and agrarian reform and food security.

• Strengthening our skills and human resource base.

• Intensify the fight against crime and corruption;

• Pursuing African advancement and enhanced international cooperation;

• Sustainable resource management and use and

• Building a developmental state, including improvement of public services and strengthening democratic institutions

•

7

Strategic Context: DPW Strategic Goals

The Department of Public Works has six (6) goals:• Provide strategic leadership in effective and efficient immovable asset management and

in the delivery of infrastructure.

• Promote an enabling environment for the creation of both short and sustainable work opportunities so as to contribute to the national goal of job creation and poverty alleviation.

• Contribute to the building of a developmental state and a comprehensive rural development framework through state assets.

• Ensure transformation and regulation of the construction and property industries to ensure economic growth and development.

• Ensure effective corporate governance and sound resource management.

• Ensure improved service delivery in all departmental programmes to meet client expectations and leverage stakeholder relations.

8

Strategic Context: Outcomes

The following four (4) outcomes were selected from twelve outcomes, approved by Cabinet in the January 2010 Lekgotla to be used by government to track the impact of programmes:

• Create decent employment through inclusive economic growth;

• Create efficient, competitive and responsive infrastructure network;

• Efficient and effective development-oriented Public Service and an empowered fair and inclusive citizenship and

• Skilled and capable workforce to support an inclusive growth path.

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DPW Programme Structure

• Programme 1: Administration• Programme 2: Immovable Asset Investment Management• Programme 3: Expanded Public Works Programme• Programme 4: Construction and Property Policy Regulation• Programme 5: Auxiliary and Associate Services.

NB: This is a new programme structure, approved by NT. All the other branches (see next slide), with the exception of Corporate Services and Finance and Supply Chain Mgmt, fall under Programme 2. The Public entities reporting to Public Works also fall under Programme 2.


Public Works Branches

• The department has eight branches, located under five Programmes:– Asset Investment Management– Operations management– Special projects– Inner-city Regeneration, Project Management and

Professional Services– Expanded Public Works Programme– Construction and Property Policy Regulation– Finance and Supply Chain Management– Corporate Services


Key Branch initiatives

• Asset Investment Management Branch– Enhancement of Asset Register– Compilation of SLAs and SDS.– Facilitation of completion of User Asset Management Plans

for user departments.– Compilation of Custodian Asset Management Plans.– Implementation Programmes: planned maintenance; capital

works and leasing portfolio.– Implementation of GIAMA: Property Performance Standards.– Energy and water efficiency– Rehabilitation of buildings: unused and under-utilised.– Accessibility of public buildings to people with disabilities.– Valuations and NIMS.

Strategic Management Unit09 March 2010 12


• Operations Management– Operations Management funds the implementation of acquisition,

construction and maintenance of infrastructure for the Department of Public Works and client departments. The distribution of funds is governed by the compensation and administration of the unit.

– The Department of Public Works has eleven (11) regional offices falling under this sub-programme.

• Inner City Regeneration, Project Management & Prof. Services Branch– Development of inner city precincts (Marabastad, Salvokop, Church Sq. &

Paul Kruger North) with City of Tshwane as context for Head offices of the RKTP,

– Feasibility studies and confirmation of additional new Head Office projects in Tshwane,




– Freedom Park Administration Building, refurbishment of HG de Witt building,

– Feasibility studies to identify & inform the rollout of the program to other towns.

– Development as Centre of Expertise for DPW project managers (updating of norms & standards, processes, toolkit),

– Construction of 598 projects: capital (R337m), maintenance (R142m) & recoverable projects (R1b),

– SA embassy Nigeria, Tzaneen prison, Waterkloof runway, RAMP projects.– Updating of technical norms & standards for design & construction of

projects,– Dam safety monitoring,– Site identification & clearance for the development of projects,– Development of Green Building and sustainability principles– Dolomite risk management to inform planning and remedy sinkholes.

Strategic Management Unit09 March 2010


Special Projects Branch• Land Ports of Entry: Golela; Skilpadhek; Vioolsdrift and

Lebombo/Ressano• Pan - African Parliament – DPW and National Treasury working

on an alternative funding formula for PAP.• 2010 FIFA World Cup – redevelopment of border posts

infrastructure.



• Expanded Public Works Programme Branch

• 4,5m multi-year targets in the various sectors, namely: social; infrastructure; economic; environmental and culture and non-state sector.

• Implement incentive grant• EPWP to be implemented in the non-state sector) for the first time – strategic

partnership with NGOs/CBOS/NPOs.• Implement incentive scheme in the environment and culture and non-state

sector and Community Work Programme • Working with the Presidency, enhance accountability arrangements in the

three spheres of government to meet targets Community Work Programme.


EPWP Targets per Sector

The infrastructure sector, has the biggest MTEF allocation from NT: R846bn- opportunities exist for the EPWP to upscale further.

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Sector Work opportunities Full Time Equivalents

Infrastructure 2 374 000 900 000

Environmental 1 156 000 350 000

Social 750 000 500 000

Non-state 640 000 280 000

TOTAL 4.5 million plus 2 million plus

Strategic Management Unit20 April 2010

EPWP Targets per sphere of Government

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Local Provincial National Non-state Totals

2009-2010 182,607 247,325 100,068 20,000 550,000

2010-2011 208,032 281,720 104,248 48,000 642,000

2012-2013 349,129 501,283 183,588 176,000 1,210,000

2013-2014 440,721 659,286 249,994 300,000 1,650,000

Totals 1,448,409 2,060,034 771,557 640,000 4,920,000

Strategic Management Unit20 April 2010


• Construction and Property Policy Regulation Branch

• Property and construction policy regulation• Implementation of construction and property Charters.• National Contractor development programme (NCDP): Contractor Incubator

programme• Property Incubator Programme• “Extension” of GIAMA principles to local government.• Policy development: asset management and other • Expropriation Act• State land under DPW’s custodianship - Land Affairs Board



Finance and Supply Chain Branch

Projects: Ensure equitable and effective allocation of resources to all

programmes. Action plan for GAAP compliance on PMTE. Ensure:

improved revenue collection and debtors management and PMTE management.

Improved internal controls and payment of invoices (30 days). Improved supply chain management. Improved management of movable assets.

20Strategic Management Unit20 April 2010


Corporate Services Branch Projects:• Enabling IT Systems• Human Resource Management Plan• Compliance with NIA requirements.• Implement new Disability Strategy.• Critical skills through international bilaterals• Provide legal expertise and advice.


Key branch initiatives

• The strategic management unit: responsible for:– Strategic Planning

• development of the strategic plan of the department.• Alignment of the country’s National Plan from the National Planning

Commission (NPC) in the Presidency to Public Works Strategic Plan. • Business planning: head office and regional offices.• Coordination of cluster process – ensure alignment of Cabinet cluster

programme to Public Works.– Risk Management – implementation of risk management processes.– Knowledge management: implementation of knowledge management

strategy in a developmental state.– Development economics: analysis of socio-economic reports and aims to

undertake socio-economic impact studies, to assess the impact of Public Works programmes.

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Key branch initiatives

• Monitoring and evaluation unit: responsible for:– monitoring and evaluating the performance of Public Works programmes.

– Submit departmental performance reports to the M & E unit in the Presidency.

– Consolidation of DPW performance information for Auditor General and National Treasury.

• Intergovernmental Relations: responsible for the coordination of national Public Works processes and programmes with the othe two spheres of government.

23

Public Entities reporting to Public Works

• The Independent Development Trust (IDT)• The Construction Industry Development Board (CIDB)• Council for Built Environment (CBE)• Agrement South Africa (ASA)

Some of the entities have presented their strategic plans to Parliament.


Budget Allocation over the MTEF Period (2010/11 to 2012/13)

20 April 2010

Presented by Cathy Motsisi

Chief Financial Officer

25

Allocation Letter for new MTEF2010/11

R’000

2011/12

R’000

2012/13

R’000

Baseline 2009/10 6,598,738 8,185,373 8,471,819

Additional Funds Allocated to Baseline

40,439 35,518 38,526

Adjustment to baseline (Efficiency Savings & EPWP Grant to COGTA)

(249,489) (236,745) (264,185)

Additional Funds (Incentive to Provinces)

56,637 - -

New Baseline 6,446,325 7,984,146 8,246,160

Net Decrease to Baseline (2,3%) (2,26%) (2,67%)

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Breakdown of the Additional funding & Adjustments to Baseline

Items 2010/11

R’000

2011/12

R’000

2012/13

R’000

ADDITIONS: 97,076 35,518 38,526

Compensation of employees

( Inflation Adjustment)

30,439 35,518 38,526

EPWP (Capacity) 10,000 - -

Conditional Grants to Provinces

( Social Sector)

56,637

ADJUSTMENTS: (249, 489) (236,745) (264,185)

Efficiency Savings 59,164 65,880 93,112

EPWP: CWP to CoGTA 190,325 163,550 171,073

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Budget Per Economic Classification2009/10

R’000

2010/11

R’000

2011/12

R’000

2012/13

R’000

Comp of Employees 1 012 237 1 121 432 1 201 662 1 249 589

Goods & Services 601 668 570 322 724,056 755 978

Office Accommodation 317 479 351 027 374 544 396 409

Transfers & Subsidies 2 607 897 3 029 610 3 988 799 4 169 386

Capital Infrastructure 1 462 325 1 303 945 1 603 945 1 634 742

Payments for Capital Assets

47 524 69 997 91 140 40 056

TOTAL 6,049,130 6,446,325 7,984,146 8,246,160

Current budget as a % of total budget = Compensation = 16,73%,17,39%,15,5% ( No funds for OSD = R24 Mil) Goods & Services= 9,9%, 8,8%, 9,16%

Transfers & Subsidies: EPWP = 1,01 billion Property Rates = 1,09 billion

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Budget Per Programme2010/11

R’000

2011/12

R’000

2012/13

R’000

TOTAL

Prog 1: Admin 663,129 752,050 790,205 2,205,384

Prog 2: Immovable Asset Management

4,250,680 4,787,047 4,898,298 13,936,025

Prog 3: EPWP 1,479,110 2,386,705 2,496,608 6,362,423

Prog 4: Property & Construction Industry Policy Regulation

31,539 35,164 36,710 103,413

Prog 5: Auxiliary and Associated Services

21,867 23,180 24,339 69,386

TOTAL 6,446,325 7,984,146 8,246,160 22,676,631

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Earmarked Funds Items 2010/11

R’000

2011/12

R’000

2012/13

R’000

Office Accommodation 351 027 374 544 396 409

EPWP 278 147 315 155 322 135

Infrastructure Public Works 1 303 945 1 603 945 1 634 742

CIDB 63 665 65 959 66 882

CBE 25 527 27 059 27 438

Energy Efficiency 75 000 120 000 -

Non State Sector 179 811 154 370 161 471

IDT 10 515 9 180 9 602

EPWP: Incentive Grants to local Gov 622 996 1 108 000 1 163 400

EPWP: Incentive Grants to Provinces 387 641 800 000 840 000

Devolution of Prop Rates 1 096 192 1 161 964 1 220 062

Grand total 4 394 466 5 740 176 5 842 141

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Conditional Grants & Specifically & Exclusive Appropriation

2010/11

R’000

2011/12

R’000

2012/13

R’000

Conditional Grant

EPWP: Infrastructure Grant:

Local Gov

Prov Gov

622 996

331 004

1 108 000

800 000

1 163 400

840 000

EPWP: Social Sector 56 637 - -

Devolution of Property Rates 1 096 192 1 161 964 1 220 062

Specifically & Exclusively Appropriated

Energy Efficiency 75 000 120 000 -

IDT 10 515 9 180 9 602

EPWP Non State Sector 179 811 154 370 161 471

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Breakdown of the Infrastructure Budget

Projects 2010/2011

R’000

Departmental 93 595

Accessibility 15 000

Dolomite Risk Management 160 000

Land Ports of Entry 551 452

Prestige 283 898

Inner City Regeneration 200 000

Total 1 303 945

32

Breakdown of the “Land Ports of Entry”

Projects 2010/2011

R’000

Skilpadshek 278,975,573

Golela 43,761,987

Lebombo 42,502,112

Vioolsdrift 3,131,189

RAMP projects 94,854,403

Other Land Ports of Entry 88,226,736

Total 551,452,000

33

Breakdown of the “Dolomite Risk Management”

Client 2010/2011

R’000

Correctional Services 4,609,857

Defence 66,758,744

Justice 6,600,534

Police 82,030,865

Total 160,000,000

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PMTE REVENUE & BUDGET

Items 2009/10

R’000

2010/11

R’000

2011/12

R’000

2012/13

R’000

Revenue 5,308,319 5,966,758 6,624,630 7,353,819

Accommodation Charges 2,497,295 2,941,105 3,382,270 3,889,611

Private 2,138,463 2,309,540 2,494,303 2,693,848

Augmentation 588,411 612,967 630,189 646,849

Management Fees 79,150 98,146 112,868 118,512

Other 5000 5000 5000 5000

Expenditure 5,308,319 5,966,758 6,624,630 7,353,819

Cleaning & Gardening 119,780 155,714 202,428 263,156

Day to Day Maintenance 547,983 602,781 663,059 729,365

Private Leases 2,138,463 2,309,540 2,494,303 2,693,848

Property Rates 538,600 592,460 651,706 716,876

Repair, Renovation & Upgrading 1,963,493 2,306,263 2,613,134 2,950,574

35

Breakdown of Client Infrastructure Budget

Client 2010/2011

R’000

Agriculture, Forestry & Fishing 24 000

Arts & Culture 151 306

Correctional Services 854 935

Defence & Military Veterans 192 844

Health 8 505

Home Affairs 49 694

Justice 409 157

Labour 7 881

Rural Development & Land Reform 12 151

Police 717 230

Total 2 427 703

36

Thank you

dpw strategic plan and budget presentation to the portfolio committee 20 april 2010 strategic...

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