1. CHALLENGES FACED IN THE DESIGN AND IMPLEMENTATION OF SOCIO-ECONOMIC DEVELOPMENT PLANS Holle Linnea Wlokas (holle.wlokas@uct.ac.za), Louise Tait (louise.tait@uct.ac.za) www.erc.uct.ac.za Nomvula Dlamini (nomvula@cdra.org.za) www.cdra.org.za

2. Research group Low-carbon development and poverty Poverty and mitigation (CDM, NAMA, etc.) Clean energy for low-income households Social implementation of technologies Worked alongside project developers on economic development requirements of RE IPPPP 20 projects all over the country Academic reflection & preparing future work with partner organisations like CDRA 2 ENERGY, POVERTY AND DEVELOPMENT GROUP IN THE ENERGY RESEARCH CENTRE

3. 1.Review of economic development elements in RE IPPPP 2.Creating a successful socio-economic development programme: key consideration and factors 3 CONTENT Raise awareness about opportunities and challenges associated with design and implementation of SED and ED elements from a community development perspective. OBJECTIVE OF THE PRESENTATION

4. 70 % Price 30 % Economic Development PROJECT SELECTION Source: South African Department of Energy 4 7 Economic Development ElementsWeighting Job Creation25% Local Content25% Ownership15% Management Control5% Preferential Procurement10% Enterprise Development5% Socio-Economic Development15% Total100% Total points30 points

5. 5 Economic Development for Local Communities Job Creation Ownership Socio- Economic Development Enterprise Development Number of Citizens from Local Communities employed 12-20% of total number of RSA Based Employees Shareholding by Local Communities 2.5- 5.0% of total shareholding Or entire ownership requirement of 12- 30% Socio-economic development interventions 1 - 1.5% of total project revenue Enterprise Development 0 - 0.6% of total revenue

6. REQUIREMENTS 6 identify needs of surrounding communities in 50km radius formulate strategies on how such needs could be met provide list of enterprises earmarked for development give an indication of programmes that will be implemented with these enterprises Socio-economic development 1 to 1.5% of revenue Enterprise development 0 to 0.6% of revenue Economic Development Evaluation Compliance with threshold

7. UNEQUAL GEOGRAPHICAL DISTRIBUTION OF PROJECTS 7 Geographical distribution of preferred bidders (1 st and 2 nd round) Population 1mil

8. THE CHALLENGES 8 Lack of guidelines for design and implementation of socio-economic and enterprise development Lack of development expertise in project selection committee Threshold is the only evaluated criteria Monitoring and reporting requirement focus on monetary spending Unequal geographical distribution of projects

9. REQUIRED NEXT STEPS 9 Stimulate communication between project developers, development practitioners & academics & local government Exchange experiences and proposed strategies for socio-economic development Develop shared vision for low- carbon community development Develop resources to support developers Influence national and international policy making with these insights

10. 10 identify needs of surrounding communities in 50km radius formulate strategies on how such needs could be met provide list of enterprises earmarked for development give an indication of programmes that will be implemented with these enterprises OPPORTUNITY AND CHALLENGE FOR DEVELOPMENT Up to developer to determine the impact of this spending!

11. IT COULD GO EITHER WAY… 11

12. 12 CREATING A SUCCESSFUL SOCIO-ECONOMIC DEVELOPMENT PROGRAMME: KEY CONSIDERATION AND FACTORS

13. Pay attention to the “hardware” as well as the process - schools, clinics, vegetable gardens and small businesses are as important as where the community is in its own process of development Sustainability into the future is essential – social, economic, ecological – notion of sufficiency is important Inclusive – create a space for all to come to the table as equals; share of responsibility and rewards/benefits COMPLEXITY OF DEVELOPMENT

14. Invest in relationship – engage through relationship Build on community assets – land, skills, knowledge, money, talents, experience, etc. Ensure ownership and commitment Clarify and manage expectations of different role players – expectations can cause conflict Establish channel of communication – clear system to allow engagement Engage with leadership and power structures ENGAGEMENT WITH COMMUNITY

15. Community is diverse – different groups and competing interests, power bases Spread the financial gains/benefits Create a formal consultative structure or mechanism A presence in the community helps (e.g. community liaison person) Integration of interventions (NDP, IDP, etc) Short-term economic benefits (important for ownership and commitment) Employment of local people and source services locally CONSIDERATIONS

16. Establish systems for monitoring, reporting and accountability Financial oversight (an ethical tone) Develop capacity for administration/management of the trust Clear beneficiary parameters Support what exists (community projects and structures for community-led development) Legitimate representatives Ownership and commitment COMMUNITY TRUST

17. THANK YOU Holle Linnea Wlokas (holle.wlokas@uct.ac.za), Louise Tait (louise.tait@uct.ac.za) www.erc.uct.ac.za Nomvula Dlamini (nomvula@cdra.org.za) www.cdra.org.za