The EPWP and Conditional Grants in the Division of Revenue Bill 7 March 2006 Department of Public Works

Summary of Presentation EPWP-related conditional grants in the Bill  Provincial Infrastructure Grant  Municipal Infrastructure Grant  National Electrification Programme Progress to date  EPWP Outputs  Support Initiatives  New Initiatives Challenges  Reporting  Use of EPWP Guidelines

EPWP Conditional Grants (1) Provincial Infrastructure Grant (PIG)  Measurable outputs: Number of job opportunities created and the average length of employment for labour intensive projects Number of persons participating in the training programs under the EPWP  Condition: Low-volume roads and stormwater projects should be implemented in compliance the EPWP Tender and Design Guidelines  MTEF allocations: 06-07: 4,118 million 07-08: 5,324 million 08-09: 5,697 million  Monitoring Specific reports will be submitted by the provinces on progress with the implementation of EPWP projects

EPWP Conditional Grants (2) Municipal Infrastructure Grant (MIG)  Measurable outputs: Number of jobs created using expanded public works guidelines (for above outputs)  Condition: Municipalities must adhere to the labour-intensive construction methods in terms of the EPWP Tender and Design Guidelines  MTEF allocations: 06-07: 6,265 million 07-08: 7,148 million 08-09: 8,053 million  Monitoring Each sector national or provincial department will be expected to fulfill monitoring role

EPWP Conditional Grants (3) National Electrification Programme (NEP)  Measurable outputs Implementation of labour-intensive methods on electrification projects and the number of jobs created  Condition: Adhere to the labour-intensive construction methods in terms of the EPWP Guidelines for activities such as trenching, planting of poles etc.  MTEF allocations: 06-07: 391 million 07-08: 406 million 08-09: 457 million  Monitoring Monthly reports to National Treasury

Progress (PIG) IndicatorProgress* Number of EPWP projects being implemented or completed 1914 Expenditure on EPWP projectsR 2.4 billion Gross number of work opportunities Net number of work opportunities Person-years of work created Average daily wageR Total wages paid to workersR671 million Percentages Women/ Youth/ Disabled35%/ 39%/ 0.4% *Expenditure on EPWP projects exceeded 1/3 of PIG, which was EPWP target

Progress st qtr (PIG) IndicatorProgress Number of EPWP projects being implemented or completed 403 Expenditure on EPWP projectsR 256 million Gross number of work opportunities Net number of work opportunities Person-years of work created6 819 Average daily WageR Total wages paid to workersR69.9 million Percentages Women/ Youth/ Disabled70%/ 27%/ 0.1%

Progress EPWP from MIG StatusNumber of EPWP Projects* Value (R millions) Registered Design & Tender Construction Completed 3943 Totals 2071,152 *Reports reflects only limited share of value of MIG projects being reported as labour-intensive EPWP projects. Target to increase to 33% of value. EPWP data often not reported or only partially completed on MIG MIS, making EPWP reporting difficult for MIG. Source: MIG MIS

Progress st qtr (NEP) IndicatorProgress* Number of EPWP projects being implemented or completed 22 Expenditure on EPWP projectsR 13.5 million Net number of work opportunities391 Person-years of work created37 Average daily WageR 50 Total wages paid to workersR Percentages Women/ Youth/ Disabled43%/ 49%/ 1.3% *EPWP condition is new, from financial year. EPWP conditions need to be introduced in planning stages of projects, hence more EPWP electrification projects will start this year.

Role of DPW DPW does not approve any projects or transfer any funds for EPWP projects Monitoring and evaluation:  Collects data from implementing bodies on criteria such as numbers of jobs, training provided, participation of women and youth  Produces quarterly EPWP progress reports (available on website (  Carrying out evaluation studies on samples of EPWP projects Support to implementing bodies:  Training of contractors and engineers in management of labour-intensive projects and design of infrastructure for labour-intensive construction  National training initiatives with DoL and CETA, in which all implementing bodies can participate  Training of provincial and municipal officials  Training of emerging contractors to carry out labour-intensive projects for implementing bodies  Production of technical guidelines for design and management of labour-intensive projects  Documentation and promotion of good practices (eg Gundo Lashu, Zibambele)

Support Initiatives: EPWP Guidelines  Condition on all the grants to use the guidelines in order to make projects part of EPWP  Training to municipal and provincial officials provided (over 1000 officials trained through LG SETA-CETA programme)  Support with using guidelines available through National and Provincial EPWP Units  Promoting compliance: National Transferring Officers can query why projects are not being reported on in terms of EPWP Auditor General will audit provinces and municipalities who are ignoring EPWP conditions in DORA

Vuk’uphile programme  Programme developed with the Construction SETA to build capacity among individuals and emerging contractors to implement EPWP projects  Implemented as a partnership with provinces and municipalities, which allocate projects to the learners to implement so that they can gain practical experience  Partnership with ABSA to ensure access to credit for emerging contractors  IDT and DOL ensure that all workers receive training  Target to implement 1000 contractor and 2000 site supervisor learnerships (funding secured for 1500 learnerships, application for another 1500 learnerships with NSF)

 Currently 290 contractors and 580 supervisors in training  39 provincial departments and municipalities have signed MOU’s for 2175 learnerships  DPW does overall programme management and administration to minimise additional work for public bodies  DPW also provides mentors for learner contractors  DPW also does overall evaluation of programme to ensure that learners are developing into independent contractors  Vuk’uphile programme now established in every province

Scaling up the EPWP through the PIG Proposal developed together with Department of Transport to scale up the EPWP under ASGI-SA Proposal for R4.5 billion initiative over 3 year period to focus on labour-intensive road construction and maintenance Builds on good overall performance of roads sector and additional funds required especially for access roads Proposed that allocations should made through the PIG, but specifically allocated to labour-intensive roads programmes Anticipated outputs:  Additional long-term jobs in road maintenance :  Target number of additional short-term employment opportunities in road construction :  Number of km of additional km of roads to be maintained : km  Number of km of roads to be constructed : km

Challenges: Reporting Provinces are reporting All reporting for EPWP is based on project level data, no aggregated data accepted, but not sufficiently detailed information available on the MIG MIS Obtaining reports directly from all 284 municipalities difficult, danger of overburdening municipalities with reporting requirements EPWP Unit now obtaining direct reports from:  Municipalities participating in Vuk’uphile  Cities in SA Cities Network  Large district and local municipalities

Challenges: Use of EPWP Guidelines Many public bodies still reluctant to use labour-intensive methods as specified in the EPWP Guidelines If EPWP Guidelines are not used, projects often not as labour- intensive as they could be (small increases the use of local labour) Guidelines also specify training entitlements for workers and if not used in tender documentation, accessing training becomes more difficult Contractors have not been sufficiently encouraged to meet the training requirements through EPWP tenders from public bodies Increased auditing of compliance with DORA conditions required to raise awareness of importance of compliance

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