presentation to portfolio committee on defence and military veterans november 2014 presented by the...
TRANSCRIPT
Presentation to Portfolio Committee on Defence and Military Veterans
November 2014
Presented by
the Secretary for Defence
DEPARTMENT OF DEFENCEDEPARTMENT OF DEFENCE
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AIMAIM
To brief the Portfolio Committee on Defence and Military Veterans on the status of Defence
Infrastructure projects.
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SCOPESCOPE
• Overview on all Maintenance Needs• Infrastructure Projects undertaken by NDPW for
the DOD from 2009 to 2014• Infrastructure Projects Planned from 2014 to
2019• Management of Projects through Partnership
with NDPW• Management of Projects with own Capability• Status Update on the Internal Capacity to
Manage, Maintain & Repair Facilities• Challenges • Remedial Actions • Discussions
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OVERVIEW ON ALL MAINTENANCE NEEDS
DOD Facilities are spread throughout the country and include both state owned and privately leased accommodation but exclude facilities in foreign countries, military operations and several houses that are Government Owned (under the Prestige Account) and therefore controlled by DPW. Most of the facilities are utilised to their full extent with an average utilisation rate of 93%. Some facilities are however very old and were built to suit the erstwhile military environment, and therefore do not comply with the current requirements and do not meet OHS standards.
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OVERVIEW ON ALL MAINTENANCE NEEDS (CONT)
NDPW under expenditure in the past years has resulted in huge backlog of maintenance and repair on DOD Facilities. Significant sections or elements require repair of a specialist nature. However some facilities require slight alteration to address issues of statutory compliance.
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OVERVIEW ON ALL MAINTENANCE NEEDS (CONT)
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OVERVIEW ON ALL MAINTENANCE NEEDS (CONT)
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INFRASTRUCTURE PROJECTS UNDERTAKEN BY NDPW ON BEHALF OF DOD FROM 2009 TO 2014
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14Capital Works Budget (Whitebook) R 111 656 223.00 R 96 297 034.00 R 90 025 986.00 R 94 527 284.00 R 99 253 649.00 R 104 216 331.00 Capital Expenditure
R 121 191 377.00 R 141 006 274.00 R 94 635 738.00 R 92 977 589.31 R 470 859 973.17 R 188 841 665.49 Total Under/Over Expenditure R -9 535 154.00 R -44 709 240.00 R -4 609 752.00 R 1 549 694.69 R -371 606 324.17 R -84 625 334.49 % Under expenditure 1.6 % % Over expenditure 8.50 % 46.40 % 5.10% 374.40 % 81.20 %
CAPITAL
The increase in FY2012/13 and onwards was as a result of projects not delivered according to planned schedule and rollover of payments.
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Examples of major Capital Works undertaken included:
•1 Military Hospital
•2 Military Hospital
•3 Military Hospital
•Military Health Depot
•SAMHS Nurses Training College
•Air Force Base Waterkloof Runway
INFRASTRUCTURE PROJECTS UNDERTAKEN BY THE DOD FROM 2009 TO 2014
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INFRASTRUCTURE PROJECTS UNDERTAKEN BY THE DOD FROM 2009 TO 2014
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14Refurbishment Budget (Whitebook) R 486 250 000.00 R 426 653 749.00 R 636 461 319.00 R 382 053 856.00 R 958 518 249.00 R 813 702 487.00 Refurbishment Expenditure R 308 106 020.00 R 262 932 270.00 R 294 478 887.00 R 265 093 852.00 R 296 017 602.85 R 392 088 136.75 Total Under Expenditure R 178 143 980.00 R 163 721 479.00 R 341 982 432.00 R 116 960 004.00 R 662 500 646.15 R 421 614 350.25 % Under expenditure 37 39 45 31 69 52
REFURBISHMENT
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Examples of major Refurbishment Projects undertaken included:
•SA Army Combat Training Centre
•10 SAI Bn
•Naval Base Simonstown
•21 SAI Bn
•Military Academy
•A-Mess Thaba Tshwane
INFRASTRUCTURE PROJECTS UNDERTAKEN BY THE DOD FROM 2009 TO 2014
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INFRASTRUCTURE PROJECTS PLANNEDBY THE DOD FROM 2014 TO 2019
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INFRASTRUCTURE PROJECTS PLANNEDBY THE DOD FROM 2014 TO 2019
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STATUS UPDATE ON THE INTERNAL CAPACITY TO MANAGE, MAINTAIN & REPAIR
Skills DevelopmentSkills Development
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RWUNC 10 13 10 3 15 10 7 0 3 0 0 0 0 0 0 0 0 0 71RWU NW 7 22 12 10 9 8 8 0 13 0 0 0 0 0 0 0 0 0 87RWU WC 10 14 9 2 11 9 10 0 0 0 0 0 0 0 0 0 0 0 65RWU BFN 10 16 13 6 11 9 23 0 8 0 0 0 0 0 0 0 0 0 96RWU EC 10 8 1 0 9 1 3 0 12 0 0 0 0 0 0 0 0 0 44RWU KZN 11 12 10 5 12 14 16 0 6 0 0 0 0 0 0 0 0 0 86RWU GP 62 36 33 17 31 18 31 7 22 0 0 0 0 0 0 0 0 0 257RWU MP/LP 6 22 24 15 27 20 20 0 10 0 0 0 0 0 0 0 0 0 144WTS 0 0 0 0 0 0 0 0 0 18 36 34 0 0 19 0 9 21 137TOTAL PER TRADE 126 143 112 58 125 89 118 7 74 18 36 34 0 0 19 0 9 21 987
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MANAGEMENT OF PROJECTS THROUGH PARTNERSHIP WITH NDPW
The DOD backlog on facility maintenance and repair was an estimated RB12 in 2014.
• Refurbishment: In the past 5 FY RB3.2 was available to NDPW and NDPW underspent RB1.7 (NB: NDPW showed inability to spend more than RM 400 year on year for the past 5 years).
• Capital: In the past 5 FY RM 484 was available to NDPW and expenditure was RM 988. The Nurses Training College, 1 Military Hospital and the Military Health Depot were the major cost drivers.
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MANAGEMENT OF PROJECTS THROUGH OWN CAPABILITY
Ser No RWU Projects Completed
FY2013/14
Projects Planned
FY2014/15 - FY2015/16
Total
a b c d1 Gauteng 10 35 45
2 Free State 12 28 40
3 Limpopo 7 24 31
4 North West 11 18 29
5 Northern Cape 8 13 21
6 Western Cape 20 18 38
7 Eastern Cape 5 21 26
8 Kwa Zulu Natal 5 21 26
9 Mpumalanga 0 (New Structure)
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In one of the projects NDPW costed construction at Rm5.2 and DW Fmn completed it at Rm1.2
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CHALLENGESCHALLENGES
External •NDPW has not been able to deliver projects on time resulting in DOD underspending.Internal•The DW Capability is staffed at 57% and an attempt to secure funds from NT to increase staffing levels up to 90% was unsuccessful.•Governance Processes are not yet mature and we are not yet ready to undertake complex projects without outsourcing.•Procurement Processes are not yet fully aligned to support the Built Environment.•Engineering Professional Skills Levels are not yet on par with the task at hand
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REMEDIAL ACTIONS TAKENREMEDIAL ACTIONS TAKEN
External
•DOD and NDPW agreed to devolve functions on Defence Endowment Properties to the DOD.•NDPW has agreed to transfer the refurbishment of 1 Military Hospital (1st Floor) to the DOD, as a matter of urgency.
Internal•The DOD is engaging National Treasury and NDPW to allow DOD to fund the staffing of the DW Fmn through withholding Accommodation charges. Treasury notified the DOD that Rm375 will be withheld from NDPW as requested•The DOD has embarked on the review of the Joint Departmental Procurement Policy to address Governance Processes.•The DOD has started a process to develop a HR Acquisition Policy to capacitate the DW Fmn with Professional Masterings.
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DISCUSSIONSDISCUSSIONS
DISCUSSIONS / QUESTIONSDISCUSSIONS / QUESTIONS