1. Presidential Infrastructure Coordinating Commission (PICC) and
Energy Related SIPs
Dr Wolsey Barnard and
Ms Angelique Kilian

2. Presentation Outline Background to PICC DOE and PICC
3. Energy and SIPs
4. Reporting
5. Conclusions

3. Background to PICC

4. Background to PICC
Cabinet adopted an Infrastructure Plan that is intended to transform the economic landscape of South Africa, create a significant number of new jobs, strengthen the delivery of basic services to the population and support the integration of African economies. (National Development Plan – New Growth Plan – Infrastructure Plan)
Presidential Infrastructure Coordinating Commission (PICC) was established to integrate and coordinate the long term infrastructure build programmes (Infrastructure Plan) over all three spheres of Government.
Eighteen (18) Strategic Integrated Projects (SIPs) have been developed and approved to support economic development and address service delivery in the poorest provinces.
The SIPs cover a range of economic and social infrastructure
All nine provinces are covered, with emphasis on poorer provinces

5. Background to PICC (cont.)
The focus of each SIP:
Localization
Job creation /Skills development
Research and Technology development
Stimulate Green economy and
Empowerment improvement
Six clusters of SIPs
Geographical SIPs (1,2,3,4 and 5)
Spatial SIPs (6,7, 11 and 18)
Energy SIPs (8,9 and 10)
Social SIPs (12, 13 and 14)
Knowledge SIPs (15 and 16)
Regional Integration SIP (17)
PICC undertook a “mapping exercise” (needs analysis and response plan) to identify infrastructure gaps, population movement and economic performance and placed these in a spatial framework in order to develop the required Strategic Integrated Projects – Approved by Cabinet in February 2012.

6. Needs Analysis Population Access to Electricity per Municipality
Dark colors indicate a lack of access to electricity services compared to the population in the area

7. Overview of Need Analysis
Needs analysis indicated possible bulk infrastructure requirements – electricity, water, transport, town planning, ports etc.
Population
Mining
Limited Utility Services
Generation (wind, Solar)

8. Coordination and Implementation of SIPs
Executive Authority: National Department Interim Project Coordinator: Assigned to agency/entities such as DBSA, Eskom, TCTA, PRASA, SANRAL etc. Entities (example): Eskom, DWA, Department of Transport, Department of Health, Department of Basic Education, Public Works in the nine provinces, municipalities and district municipalities, SALGA, Water Boards etc Provinces (example): Northern Cape, Eastern Cape, North West, KwaZulu, Natal, Free State, Mpumalanga, Limpopo, etc National Government Departments (example): Water, Environment, Energy, Health, Basic Education, Transport, Public Enterprises, Mineral Resources, National Planning Commission, Economic Development, Public Works, Human Settlements, CoGTA, dti, National Treasury, Agriculture, etc. Local government (example): Respective Metro’s, affected municipalities, 24 least resourced District Municipalities etc. 8

9. DOE and PICC

10. DOE and PICC
The DoE became part of the Presidential Infrastructure Coordinating Commission (PICC) and Secretariat as early as February 2012.
Established a small unit within DoE to look after PICC related support.
Regular feedback meetings take place with PICC Secretariat team and PMU of DOE to strengthen working relationship.
DOE through the PMU is forwarding on a monthly basis information through to PICC Secretariat, while consolidated quarterly reports of projects within each SIP are reported on.

11. BRANCH: ENERGY PROGRAMMES AND PROJECTS
REGIONAL ENERGY OFFICES
ELECTRICITY INFRASTRUCTURE/INDUSTRY TRANSFORMATION
INEP
PROGRAMMES AND PROJECTS OFFICE
COMMUNITY UPLIFTMENT PROGRAMMES AND PROJECTS
Background to Branch
Branch is responsible to manage, coordinate, monitoring and report on Energy Programmes and Project activities of the Department.
PMU in Programmes and Project office is responsible for external and internal PM of Energy programmes /projects, such as PICC, SWH, DoE project management etc.
Currently only three staff members in this unit, but is in process of recruiting more staff.

12. Energy Related SIPs

13. Coordination and Implementation of the Energy SIPs
Name of SIP
Integrated Municipal Infrastructure
Green Energy in support of the South African Economy
Electricity generation to support socio-economic development
Electricity Transmission and Distribution for All
Inter-Governmental Forum (IGF)
Chair: Minister Martins
Chair: Min Martins,
Co-Chair: Min Patel
Chair: Min Gigaba
Chair: Min Gigaba and
Co-Chair: Min Martins
Interim Project Coordinator
DBSA
IDC
Eskom
Provinces
ALL
National Government Departments
DOE, DPE, CoGTA, EDD, DRDLR, DEA, DHS, DPW, DOT, DTI
DOE, EDD, DTI, DST, DRDLR, DEA
DPE, DOE, DRDLR, DHS, DEA
DPE, DOE, DRDLR, DHS DEA
Local Government
SALGA, Metros, district municipalities,
Municipalities, 24 least resourced DM +5 mining towns
municipalities

14. SIP 6: Integrated Municipal Infrastructure
Minister Martins is Chairing Inter-Governmental Forum SIP 6 Project
SIP 6 launched May 2012.
DBSA was appointed as the implementing agent responsible for developing a Business Plan and for the management of SIP 6 projects.
A Business Plan was submitted to the DoE and PICC during September 2012 for review.
The Business Plan was rejected in December 2012.
Following restructuring at DBSA - dead period,
Was not clear who was responsible for the SIP 6 activity.
New management did not understand their role – of view that they have to implement projects, as opposed to integrate, align and coordinate projects in the 23 (24) Districts. In addition DBSA required R45m from National Treasury for setting up a SIP 6 unit in DBSA - request denied.
In July 2013 a new team was established in DBSA

15. SIP 6
To raise the quality of life in the least resourced municipalities through integrated action by National Departments in critical service delivery
To address all the maintenance backlogs and upgrades required in water, electricity and sanitation bulk infrastructure in the 23 least resourced district municipalities, covering 17 million people, in a project that is nationally managed but locally delivered.
The key impact is to reverse the degradation of water quality both in consumption in these towns as well as downstream communities that are impacted by effluent flows into water courses . These increases in effluent quality to downstream communities will have huge benefits in reducing the disease burdens of under-serviced communities and the resultant health expenditure burdens.
The upgrades shall also make provision for areas where significant growth in population has not been addressed by expanded facilities with resulting declines in water quality and quantity available to communities.
The expansion of electricity distribution grids in these municipalities shall also expand basic service provision to the poorest communities.
The re-alignment of the S’Hambe Sonke programme to cluster along this programme will further enhance the service delivery enhancement impact on the population
Project location
National – 7 Provinces

16. SIP 6 NC: John Taolo NW: Ngaka Modiri Molema Ruth Mompati LP : Mopani
Reverse maintenance backlogs on bulk infrastructure for water and sanitation
Upgrade and new builds of water and sanitation bulks and reticulation to accommodate changes in service demand and provision of services to un-serviced communities
Electricity distribution network builds and upgrades
Maintain and fix roads that service these areas, under the S’Hamba Sonke programme
New road construction to areas that have limited access
Boreholes in rural communities to provide access to water
Revitalising clinics and hospitals
Access to digital TVs
Solar water heater providing hot water to rural communities
Extensive programme to convert mud schools to fully serviced school with access to clinics and bridges over rivers, where necessary
NC: John Taolo
NW: Ngaka Modiri Molema
Ruth Mompati
LP : Mopani
Greater Sekhukhune
Capricorn
Vhembe
KZN : Zululand
Amajuba
Uthukela
Sisonke
Ugu
Ilembe
Uthungulu
Umkhanyakude
Umzinyathi
MP: Ehlanzeni
EC : Alfred Nzo
OR Tambo
Chris Hani
Ukhahlamba
Amathole
FS: Xhariep

17. SIP 8: Green Energy in Support of the South African Economy
Chair: Minister Martins - Co-Chair: Minister Patel
IDC was appointed by the PICC as the implementing agent for SIP8.
IDC conducted stakeholder workshops during April - May 2013 and a draft Business Plan was developed during June The Business Plan was discussed with Minister Peters, which asked for certain revisions to be made. These revisions were made by the IDC and the revised Business Plan was delivered on 29 July 2013. 
It should be noted that IDC is one of the strongest coordinators since they had previous experience in SIP programmes.
IDC engage extensively with stakeholders and DoE before compiling the business plans. 
The Business Plan and the way forward will be discussed during their presentation next week with Min Martins.

18. SIP10: Electricity Transmission and Distribution for All
Chair: Minister Gigaba - Co-Chair: Minister Martins
Eskom has recently been appointed as the implementing agent responsible for developing the Business Plan and for the programme management of the SIP10. 
Eskom has however started with their planning processes and has advertised for consultants to coordinate SIP10 for them. 
Currently reporting on SIP10 is mostly Eskom information and some DoE information (Integrated National Electrification Programme – INEP) - not yet incorporated any other info until their appointment letter.
A workshop to be held with Eskom during October 2013 to establish the reporting relationship required for DOE projects that fall within SIP10.

19. Participates in the following SIPs
SIP NO
STRATEGIC INTEGRATED PROJECT
DEPARTMENTAL CONTRIBUTION 1
Unblocking the Northern Mineral Belt with the Waterberg as the catalyst
The DoE is in attendance of all meetings held SIP01 implementing agent (Eskom).  The DoE provides advice and policy input as and when required, and unblocks any obstacles where the department may be of assistance.  Currently discussions are taking place between NT and DoE, with regards to  a letter that DoE need to send to NERSA to support Eskom committing to the associated water capacity in MCWAP Phase 2 which is required for the energy portion related to the IRP.  A key decision to make in the next few months is another coal fired power station.  The MCWAP Phase 2 pipeline has been sized for two more coal fired power stations. Due to the high carbon footprint in the Waterberg, careful planning should be done to ensure a that we develop "green" cities in towns like Lephalale. 
ROLE: Advice and Policy Input

20. Participates in the following SIPs (cont.)
SIP NO
STRATEGIC INTEGRATED PROJECT
DEPARTMENTAL CONTRIBUTION 2
Durban-Free State-Gauteng logistics and industrial corridor
Attendance of meetings held by the implementing agents for the relevant SIP upon invitation
ROLE: Advice and Policy Input 3
South Eastern node and corridor development
The DoE has an important role to play in the decision and development of Mthombo and PetroSA's anticipated LNG plant. Planning and Policy 4
Unlocking the economic opportunities in North West Province
DoE has a very important role to play in prioritizing INEP and SWH in the province. Monthly and Quarterly Information is currently provided.
PROJECTS:
INEP
SWH 5
Saldanha-Northern Cape development corridor
The DOE has an important role to play in the anticipated gas development at Saldanha IDZ. Planning and Policy

21. Participates in the following SIPs (cont.)
SIP NO
STRATEGIC INTEGRATED PROJECT
DEPARTMENTAL CONTRIBUTION 7
Integrated urban space and public transport programme
Attendance of meetings held by the implementing agents for the relevant SIP upon invitation. Thus far none has been received and attendance of SIP Coordinators Forum has been requested and authorised.
ROLE: Advice and Policy Input 9
Electricity generation to support socio-economic development
PROJECTS:
IPPs
IEP/IRP 14
Higher education infrastructure

22. Participates in the following SIPs (cont.)
SIP NO
STRATEGIC INTEGRATED PROJECT
DEPARTMENTAL CONTRIBUTION 17
Regional integration for African cooperation and development
Attendance of meetings held by the implementing agents for the relevant SIP upon invitation. Thus far none has been received and attendance of SIP Coordinators Forum has been requested and authorised.
ROLE: Advice and Policy Input 18
Water and Sanitation Infrastructure Master Plan
Attended launch of SIP18 on 29 June.  But to date have not yet been notified of any future meetings. Attendance of SIP Coordinators Forum has been requested and authorised.

23. Observer Status in the following SIPs
SIP NO
STRATEGIC INTEGRATED PROJECT
DEPARTMENTAL CONTRIBUTION 11
Agri-logistics and rural infrastructure
Attendance of meetings held by the various implementing agents for the relevant SIPS in an observer status only – Upon Invitation – NONE has thus far been received. 12
Revitalisation of public hospitals and other health facilities 13
National school build programme 15
Expanding access to communication technology 16
SKA and Meerkat

24. Reporting

25. Portfolio view aggregates programme progress and shows performance on key strategic objectives
Portfolio Funded
Dougan to provide
Portfolio Cash flows (R’bn)
A typical Portfolio Level view gives info on
- Funding project allocation
- Funding regional allocation
- Aggregate Socio-Economic Impacts
- Aggregate Cash flow Management
- Aggregate governance status
- Aggregate expenditure projection

26. Socio Economic Development Consolidation of RE IPP BW1 - SIP 8
IPP BW1: Project Information
TECHNOLOGY
CAPACITY
VALUE OF LOCAL CONTENT
BBBEE PROCUREMENT
JOB CREATION
JOB CREATION YOUTH
Wind
641.7MW R R
1643
585
CSP
150MW R R
1364
1114
Solar PV
632.1 MW R R
10978
2366*
TOTALS
1423.8MW R R
13985
4065

27. Conclusions

28. Conclusions
The Infrastructure Plan is a bold effort to transform the economy, laying the basis for growth and jobs
Aimed at promoting:
Re-industrialisation through manufacturing on inputs, components and machinery
Skills development aimed at critical categories
Greening the economy
Empowerment
Small unit within DoE reporting into PICC structures.
DOE on a monthly basis information through to PICC Secretariat, while consolidated quarterly reports of projects within each energy related SIP.

29. Thank You