1. Department of Transport and Public Works
Expanded Public Works Programme (EPWP)
Directorate: Provincial Coordination
National Parliament: Portfolio Committee Meeting – 3 March 2010 1

2. Outline of presentation …
EPWP: Overview
Provincial Mandate: Strategic Directive
Targets and Achievements (3rd quarter)
Key Challenges
Conclusion 2 2

3. EPWP: Overview
“The nation will recall that during the 2009 SONA, I announced that the EPWP would create work opportunities, by December Let me reiterate that these are not jobs created in the mainstream economy. These are job opportunities created to provide unemployed people with an income, work experience, and training opportunities” (President, Jacob Zuma: SONA, 11 February 2010)
Premier, Helen Zille reminded us in the SOPA on 19 February 2010 that: “In the opportunity society, the state has a duty to do for people what they cannot be expected to do for themselves. In an opportunity society, those who take responsibility for their lives and use their chances flourish. They understand that taking control of their own lives is infinitely preferable to a lifetime of dependency on the state.” 3 3

4. Background Endorsed by National Cabinet – November 2003
As one of government’s initiatives to half unemployment
and poverty by 2014
Aim: bring the unemployed into a temporary working
environment during which time they’ll obtain skills, gain
work experience and receive a stipend
To enhance their chances of future employment and or trigger their “entrepreneurial spirit”
Phase 1: – 2009 with a national set target of 1 million work opportunities (achieved during 2008 – 1 yr ahead of schedule) 4 4

5. Phase 2:
To create 4,5 million work opportunities (equivalent to 2 million FTE’s) for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services.

6. Comparison between phase 1 and phase 2 of EPWP
2004 – 2009: creation of temporary work opportunities and income for at least 1 million unemployed South Africans (any no. of days worked that included training and stipend qualified as a work opportunity)
: creation of 4.5 million work opportunities which equates to approximately 2 million full time equivalent (FTE) with minimum stipend of R50.00 per day.
Work Opportunity = 100 days of work (min R50.00 per day)
FTE = 230 days of work (min of R50.00 per day)
To provide needed public goods and services, labour-intensively, at acceptable standards, through the use of mainly public sector budgets and public and private sector implementation capacity
Public bodies from all spheres of government (in terms of their normal mandates and budgets) and the Non State sector (supported by government incentives), deliberately optimizes the creation of work opportunities for unemployed and poor people in South Africa through the delivery of public and community services.
EPWP perceived as an add-on, additional work without any resources
Introduction of Incentive Grant to encourage and reward implementing bodies for over performance
Earmarked funding for training on EPWP projects, managed via Department of Labour - Strong emphasis on training and skills development (compliance)
Department of Labour, EPWP funding for training has been re-directed to Higher Education
Training to be funded via normal budgets
Emphasis on number of days worked and minimum stipend
Exit strategies designed for each sector and the identification of possible exit routes for workers once they leave EPWP
None – it is acknowledged that in an economy where there are insufficient work opportunities the creation of exit strategies is not possible (increase access to opportunities to more people
Source: EPWP Consolidated Programme Overview: Phase 2 (NDPW, January 2009)

7. Critical Success Factors: Phase 2
Make creation of paid work the primary objective of the programme
Locate clear political and administrative accountability for EPWP work creation targets across all spheres of government
Align EPWP outputs with the core mandates and programmes of implementing public bodies
Provide fiscal incentives to accelerate scaling up of EPWP outputs across all spheres of government
Organize non-state capacity to deliver additional EPWP work opportunities
On 17th February, Mr Pravin Gordhan (Minister of Finance) called on government to, “…again use this remarkable national capability to energetically and urgently address the problems of jobs, growth and poverty.”
He then confirmed governments commitment to the EPWP by allocating an estimated total of R52 billion for various EPWP projects over the next 3 years and indicated that this allocation includes an additional R2.5 billion aimed largely at rural areas that will support labour-intensive projects in the social, non-state and environmental sectors. (Budget Speech, 17 February 2010

8. Incentive Grant
The EPWP incentive is based on paying all public bodies that create work above a minimum threshold for the EPWP target group an incentive of R50 per person day of work created. ( Rural Municipalities have no minimum threshold).
Infrastructure - 09/10 and roll out to other sectors in 10/11
Eligible public bodies that want to participate in the incentive will enter into an agreement with National DPW
While indicative performance targets and incentive amounts are set for each eligible public body, they will only be able to claim the incentive upon proving that work has been created
Basis for measuring EPWP performance
Number of FTE’s per million Rand of infrastructure budget
Each public body ( apart from rural municipalities) must meet a minimum eligibility threshold before they can start accessing the incentive
The incentive is not paid out for work created below the eligibility threshold, but is paid for all work created above this threshold

9. Eligibility: In order for provinces and municipalities to become eligible for the incentive they must:
Report to National DPW on the EPWP ( 07/08 report used to calculate incentive amounts for the 09/10 financial year - infrastructure).
Meet minimum employment creation targets based on their available budgets
Meet equity targets for number of youth, women and disabled EPWP workers
Agreements: Eligible public bodies will enter into agreements with National DPW which will specify:
Targets to be met by the public body
Amounts that can be claimed by the public body for reported EPWP work created
Reporting and verification and audit requirements through the EPWP Management Information System
EPWP workers may not be paid less than R50 per day
Appropriation of funds
Eligible public bodies should incorporate the incentive allocation into their budgeting and planning process but take into account that payment by National DPW will occur quarterly, after employment has been created

10. Provincial: Mandate
Department of Transport and Public Works – responsible for management of EPWP as a Lead Intervention as identified under the Provincial Growth and Development Strategy (PGDS)
mandated to drive, coordinate and support:
institutionalisation
planning
implementation
compliance monitoring and reporting

11. Strategic Directive: EPWP Lead Intervention
Background
In response to the lessons learned during EPWP Phase 1 and the challenges set by the renewed approach of Phase 2 the Chief Directorate: EPWP and the Chief Directorate: Policy Implementation in the Department of the Premier developed a Strategic Directive to effect its mandate to drive, coordinate and support the institutionalizing, planning, implementation and reporting of EPWP in the province.
(Approved by Provincial Cabinet on 2 September 2009
Status: Implementation in progress)

12. Strategic Directive: EPWP Lead Intervention
Key objectives
Provide a planning platform for EPWP per sector with a key output being a sector implementation plan;
Drive accountability and accurate reporting per department and municipality on a monthly basis;
Develop and document best practice;
Commission relevant research, and
Recommend and implement regulatory framework for Provincial EPWP Implementation

13. Expanded Public Works Lead Intervention
Functional Management Framework
Provincial Cabinet
PREMIER
Steering Cabinet Committee
PREMIER
Economic Cabinet Committee
Provincial Ministers
Ministerial Top Management Meeting
Minister of Transport and Public Works
Departmental Senior Management Meeting
Head of Department of Transport and Public Works
EPWP Steering Group
Chair:
Assistant Executive Manager: Expanded Public Works Programme
CD: Policy Implementation Support:
(DotP)
Secretariat:
CD: EPWP
Infrastructure
Work Group
Chair:
Executive Manager:
Client & Regional Services
Social
Work Group
Chair:
Departmental Representative:-
Department of Social Development.
Environmental and Culture
Work Group
Chair:
Departmental. Representative
Department of Environmental. Affairs & Development. Planning
Non-State
Work Group
Chair:
To be determined
Members Internal & External Stakeholders
EPWP
Steering Group

14. Provincial Steering Work Group
Provide a platform: where provincial government and its stakeholders, where applicable, can deal with the technical aspects of all cross-cutting issues as assigned to the Economic Cabinet Committee;
Serve as planning platform: where representatives from the relevant National-, Provincial Departments, municipalities and its stakeholders can be brought together in a co-operative planning and implementing partnership around specific issues, within the context of its particular expertise and/or functional contributions to engage in multi-year programme design;
Create an opportunity for co-operative planning to enhance the concept of public private partnerships;
Ensure that the necessary structures are in place and funds available to manage the planning, implementation and monitoring of projects;
Formulate a plan to meet job creation targets and identify EPWP projects;
Ensure that all Memoranda of Agreement are entered into;
Source document: ( Strategic Directive: EPWP Lead Intervention – approved by Cabinet - 2 Sept 2009)

15. Provincial Steering Working Group Constituency Portf Comm 020310\Steering Group Constituency.doc

16. Sector Working Groups Championing the EPWP in the sector
Liaison with other departments and stakeholders in the sector
In consultation with the other public bodies in the sector, producing a sectorial plan to;
Identify areas for expansion of EPWP approaches
Set targets for expansion
Describe how the expansion is going to be achieved
Facilitating the meeting of common needs in the sector (e.g. sectorial training and qualifications frameworks, sectorial guidelines)
Monitoring implementation against the sectoral plan;
Linking EPWP training to exit strategies aligned to growth areas as identified through the MEDS/LEDS;
Producing sectoral progress reports for the Steering Group as directed; and
Appoint and / or co-opt additional members as and when required

17. Working Group Constituency Portf Comm 020310\Work Groups.doc

18. Secretariat: EPWP Provincial Coordination
Communicate EPWP Targets, prescribes within the sector (in line with national and provincial guidelines)
Coordinate the development of the sector implementation plans
Coordinate the Sector specific input towards the development of a Provincial Communication plan
Compilation of a narrative monthly / quarterly report reflecting activities within the sector
Facilitate an Annual Report on the Sector Implementation Plan
Manage the research and analysis of programmes and projects as requested by the working group
Monitor the roll-out of the Sector Implementation plan
Coordinate the provision of professional, technical and administrative guidance to the Working Group, as required
Ensure interventions are initiated and implemented

19. EPWP Provincial Institutional Framework

20. Targets and Achievements (3rd Quarter)
Table 1: Targets per Sector for the Western Cape ( )
Infrastructure
Environmental
Social
Totals
W.O.
FTE's
8,230
3,223
3,833
748
11,744
9,212
23,807
13,183
9,383
3,861
3,987
957
14,092
10,264
27,462
15,083
12,071
5,045
5,111
1,356
19,377
13,686
36,560
20,087
15,693
6,512
7,028
1,865
27,451
18,818
50,171
27,195
19,753
8,108
9,584
2,543
37,433
25,661
66,769
36,312
Targets per Municipality ( )
W.O.
FTE's
11,523
3,946
13,137
4,735
16,901
6,187
21,971
7,986
27,656
9,944
Source: EPWP Phase II Business Plan Draft 1 January 2009

21. Targets for eligible implementing bodies
Table 2: Incentive Grant Allocations and Targets
Department
FTE Performance Target
Eligibility Threshold Target
Indicative Allocation (National Financial Year)
1Transport & Public Works
2,686
3223
R18,523,000.00
Total
3,223
Municipality
City of Cape Town
2,562
1,967
R3,423,000.00
2Eden District 87
R500,000.00
George
134
R773,000.00
Oudtshoorn 58
R333,000.00
Knysna
Mossel Bay
Theewaterskloof
277
R1,594,000.00
3,235
R7,289,000.00
Source: 2009 DORA (also see notes below)
Notes:
- Only Infrastructure eligible for incentive 10/11 (one Provincial Department and seven municipalities)
2The “0” eligibility threshold target is only applicable to rural municipalities. Rural municipalities are encouraged to create work opportunities and are able to claim against the indicative amount once FTE’s are created and reported.

22. % Under / over performance
3rd Quarter Performance against targets
(Cumulative 1 April – 31 December 2009)
The following tables illustrate the performance per sector:
Sector
Target
Performance
% Under / over performance
Infrastructure
8,230
10,587
128 %
Social
11,744
11,990
102%
Environmental
3,833
465
12%
Non State
500
562
112%
Total
24,307
23,604
Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010)
Notes:
Provincially 97% of the annual performance target was reached at the end of 3rd quarter
Portf Comm \Sector Project Information.doc

23. Municipal financial year starts 1 June 2010 (National 2nd quarter)
The following tables illustrate the performance per eligible municipality:
Municipality
FTE Performance Target
Eligibility Threshold Target
Achievement (Cumulative)
City of Cape Town
2,562
1,967
967
Eden District 87
George
134
149
Oudtshoorn 58
658
Knysna
Mossel Bay
Theewaterskloof
277
234
Total
3,235
2008
Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010)
Notes:
Municipal financial year starts 1 June 2010 (National 2nd quarter)
Overall performance = 62% of annual performance target was reached after the 2nd quarter (50% of time)

24. Notes Incentive Grant Payouts: National Financial Year
Infrastructure Sector
Department
FTE Performance Target
Eligibility Threshold Target
3Indicative Allocation (National Financial Year)
Actual Payment
1st Quarter
2nd Quarter
Estimated Payment
3rd Quarter
Estimated
4th Quarter Payment
1Transport & Public Works
2,686
3223
18,523,000
11,089,000
3,152,000
4,200, 000
Total
3,223
2Municipality
Indicative Allocation (National Financial Year)
City of Cape Town
2,562
1,967
3,423,000
Eden District 87
500,000
George
134
773,000
24,000
92,000
Oudtshoorn 58
333,000
402,000
328,000
Knysna
Mossel Bay
Theewaterskloof
277
1,594,000.00
137,000
287,000
3,235
R7,289,000.00
563,000
707,000
Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010)
Notes:
1DTPW – overall on track with performance (Roads Infrastructure and Public Works performance)
2Municipal financial years not aligned to National (municipal 1st quarter – National 2nd quarter)
Notes

25. EPWP 3rd Quarter Overall National Consolidated per Province
EPWP 3rd Quarter Overall National Consolidated per Province ..\REPORTS\0910\Portf Committee \3rd Quarter Audited Report 2010.xls

26. Municipal Participation
Key Challenges
Key Issue
Intervention / Recommendation
Municipal Participation
Initially - no deliberate planning to involve municipalities
Understanding of roles & responsibilities - participation
Different financial framework makes it difficult to synchronize planning and resource allocation
Municipal by laws differs from municipality to another
Alignment of different financial years as part of implementation planning
Participate in IDP review process to ensure EPWP is incorporated at that level.
IDP’s to incorporate sub programmes
Encourage municipalities to have a dedicated EPWP unit using best practice from participating municipalities
District municipalities to participate in provincial steering committee
2. Environmental Sector
Ownership: lead department
Under reporting
Establishment of Provincial Steering Group
Urgent Sector working group meeting scheduled for 16 March 2010

27. Intervention / Recommendation
Key Issue
Intervention / Recommendation
3. Training
National Skills Funding (via DOL) re-directed to Higher Education
Limited funding (focus on technical skills vs life skills)
Foster and strengthen partnerships with SETA’s (sector specific) to access funding
Implementing bodies to include training as part of project budget
4. National Supporting Mechanisms
Access to and down time of Web Based Systems
Contractual Obligations within province
National funded projects being implemented provincially (reporting)
Adherence to timeframes
National to critically review
Copies of SLA to be provided to provincial coordination unit
To obtain copy of business/implementation plans from relevant National Departments
Communication
(National Coordinators Meeting: 3 March 2010)
5. Compliance (Code of Good Conduct)
Understanding of Ministerial Determination (implementing bodies and participants
Drafting of implementation plans to include induction / orientation programmes
6. Best Practice and Achievements
Records of impact assessment, best practice models, KAMOSO Awards
Evaluate existing records to improve and identify gaps
Provincial Kamoso Awards Ceremony

28. Conclusion Ongoing awareness and advocacy
Provincial Steering Group established (23 March 2010)
Sector Working Groups operational (as per Strategic Directive)
Increase support to municipalities
Identify key stakeholders for expansion, exit strategies (SETA’s, private sector, non governmental organizations, etc)
Province has potential to exceed National targets
“None of us can rest or sleep peacefully until every South African can say, I can see a better future. I can find a job. I can learn a skill.” (President, JG Zuma)

29. Enkosi
Thank You
Dankie