1. 1 Strategic Planning for MTEF Cycle 2003/4 to 2005/6 Presentation to Public Works Select Committee on 2 April 2003 by James Maseko, Director-General: National Department of Public Works (NDPW)

2. 2 Strategic Planning for MTEF Cycle 2003/4 to 2005/6 Presentation Outline  Strategic Overview  Significant Shift in Strategic Direction  Current Restructuring & Transformation  Key Policy Developments  Conclusion

3. 3 Strategic Overview & Key Policy Developments: 1999/2000 to 2005/6  Main emphasis during 1999/2000 to 2002/3 on providing services to Client Departments  Initially the various Client Departments/ Institutions negotiated funds for projects with National Treasury (NT) who then allocated it to NDPW’s Vote  In last 2 years NT allocated funds to Client Department/Institutions’ Votes – they therefore had direct control over such funds, but NDPW is still executing projects

4. 4 Significant Shift in NDPW’s Strategic Direction…  A significant shift in NDPW’s strategic direction to take place during 2003/4 to 2005/6 MTEF Cycle – clear separation between 2 main roles e.g -Being custodian of the State’s immovable properties, policy maker & regulator of the Construction & Property Industries as well as the National Public Works Program (NPWP) -Provider of accommodation & asset management services to National Departments/Institutions

5. 5 KEY CHALLENGES  Lack of uniform guidelines regarding various aspects of public immovable asset management in all organs of the State.  Inadequate maintenance budgets that negatively impact on the environments where various public services are delivered.  Absence of an integrated information systems and appropriate skills to deliver on the department’s mandate.  Industry-wide challenges like: declining spending and investment on infrastructure by both the public and private sectors due to capacity constraints within the Construction industry ; Shortage of skills:- inability to attract new skills; Skewed ownership within the construction and property industries;  Transform the physical environment to improve service delivery.

6. 6 Current Restructuring & Transformation…  Restructuring & transformation currently under- way to result in establishment of 2 separate entities, namely: -A Branch within NDPW that is owner/custodian of the State’s immovable assets, responsible for policy-making, regulation of Construction & Property Sectors and NPWP -Two Branches that provide accommodation & asset management services to National Departments/ Institutions first and, once agreed with them, Provinces will follow later

7. 7 Key Policy Developments & Initiatives Some of the key policy developments & initiatives NDPW will embark on:  A policy framework & legislation to strategically reposition NDPW as owner/ custodian of the State’s immovable assets, and to enable it to optimise the value of these assets for more effective service delivery  Parliament will hopefully approve the Government-wide Immovable Asset Management Bill before 31/7/2003

8. 8 Good Governance Legislation…  It is good governance legislation for acquisition, management & disposal of immovable assets in order to: -Enable better allocation of limited resources for Government as a whole; -Ensure alignment of immovable assets with service delivery objectives; -Ensure more effective & efficient use of existing immovable assets;

9. 9 Addressing efficiencies, inconsistencies & duplication… -Address the inefficiencies, inconsistencies & duplication of efforts in management of immovable assets, including infrastructure at a Government-wide level; and -Ensure it enhances and supports service delivery, mindful that it is a very costly resource, finite and has a huge impact on the macro-economic & physical landscapes  Introduction of the Repair & Maintenance Programme to address the maintenance backlog

10. 10 NDPW as Custodian of NPWP…  NDPW will as custodian of the NPWP & pioneer of community-based public works programs (CBPWPs) develop policy and best practice guidelines for all Organs of State  This is in light of the Expanded Public Works Programs (EPWPs) the President announced during the State of the Nation Address, and the increased need for these programs, which are effective instruments for creating much needed productive community assets and jobs

11. 11 Policy Positions relating Program Clustering…  Policy positions relating to program clustering to be reviewed and refined, partnership with private sector to be promoted, and better linkages be created with the Integrated Developments Plans of Municipalities  NDPW will employ its experience and expertise gained by transforming the SA Construction & Property Industries and implementing CBPWPs to help other African countries as its contribution to NEPAD

12. 12 Conclusion  The Top Management of NDPW has applied its mind as to the strategic direction in which the Department needs to move.  The current restructuring and transformation also entails putting “To-Be” business processes, policies and systems in place that will, together with the new organogram and staff, enable the Department to achieve operational efficiency.