1. 02 JUNE 2015 EDUCATION INFRASTRUCTURE GRANT PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS

2. Education Infrastructure Grant Expenditure for 2014/15 Financial Year A total of R6, 928, 908m was allocated to the sector to supplement infrastructure budgets in 2014/15 financial year and was all transferred to respective PEDs in five installments. The Western Cape allocation was adjusted by the AISIDI allocation for 2014/15 which was converted from a schedule 7 to a schedule 4 grant amounting to R397, 676 million. The spending as at end of 2014/15 financial year was R7, 041, 826 million or 93% of the adjusted allocation. This spending is 6% less than the 99% spending reported at end of 2013/14 financial year. The highest spending provinces on the grant are KZN, MP NC all at 100%. While MP has spent the entire budget, it underspent the Equitable Share portion of their infrastructure allocation. Free State and Eastern Cape were the lowest spending provinces on the grant at 76% and 77% respectively.

3. Education Infrastructure Grant Expenditure for 2014/15 Financial Year

4. Eastern Cape The PED had cited a number of reasons which led to the under spending. Coega Development sanitation programme had reported low spending expenditure due to a 2 to 3 month delay with procurement of contractors. CDC (Coega) were allocated projects amounting to R100m (subsequently reduced to R65m) on which their appointment of PSPs and contractors took extremely long due to internal procurement issues. Delays in implementation of some of Department of Public Works’ large projects due to labour unrest & strikes, examples are that of Jeffreys Bay Primary School, Sunshine Special School, and Jubilee Park Primary School. Also delays in replacing terminated contracts at Klipfontein Primary School & St Matthews Senior Secondary School due to non-performance. Free State The PED had cited delays in supply chain management processes where delays in the appointment of some projects led to re-advertisement. This had adverse consequences as multiple projects were clustered to ease management. Amongst others, cash flow management measures introduced to control the anticipated general over-expenditure of the Department of Education budget.

5. Education Infrastructure Grant Expenditure for 2014/15 Financial Year North West The PED had cited challenges which led to under spending as follows: New schools implemented by DoE were delayed due to SCM (Supply Chain Management Unit) taking long time evaluate, adjudicate and awarding contracts to successful bidders on time. These processes result into late appointment of contractors. There were disruptions by the communities on 2 major projects. These protests were as a result of sub-contractors who were demanding that they be paid more from the contract. They demanded to be paid 30% of the contract value of the project thus causing more delay to the actual progress to be registered.(Examples. Alabama and Oukassie Primary Schools) Community unrests at Schweizer Reneke Primary with members of the community demanding to be employed without meeting proper requirements. There had also been challenges related to Tribal authorities - land disputes between tribal authority and Local municipality. Transfer of projects to DPW as implementing agent led to delays in implementation of the programme. This followed the decision by EXCO to have infrastructure projects implemented by Public Works in the province. Poor performance of contractors and consultants and thus delays in submitting invoices.

6. SCHOOL BUILD PROGRAMME The Provincial Schools Build Programme targets new schools, additions to existing schools, new and upgrading of services and maintenance 12 299 projects are in the pipeline, which commences with identification, feasibility, design, tender, construction, retention and hand-over stages As at end March 2015, 3 477 projects are in construction, with 3 463 in practical and final completion phases.

7. EASTERN CAPE PROJECT PIPELINE 11 projects were added into the system in the fourth quarter. The movement of project pipeline from the third to fourth quarter is almost insignificant. A significant number of projects are still sitting in both identified and feasibility stages and not filtering to design and tender and thus getting ready for implementation. The PED can be commended for closing out most of the projects which were sitting in retention at end of 2013/14 financial year.

8. FREE STATE PROJECT PIPELINE It was observed that the PED had maintained a stagnant pipeline throughout the financial year and in the next financial year would need to ensure that the projects sitting in design stage filter through to tender, and then construction.

9. GAUTENG PROJECT PIPELINE A total of 59 projects were added into the system in the last quarter of the financial year. The PED reported that a total of 58 projects were closed out in the last quarter of the financial year. The PED needs to ensure that the huge number of projects at pre-feasibility stage filters through and thus getting ready for implementation.

10. KWAZULU-NATAL PROJECT PIPELINE The PED does show a smooth pipeline of projects; however, for the last two quarters of the financial year the pipeline has been stagnant. The PED has maintained just above 474 projects in design stage throughout the financial year. The PED can be commended for closing out 694 projects in the financial year.

11. LIMPOPO PROJECT PIPELINE The province added a total of 76 projects into the system in the last quarter of the financial year. The pipeline did not show any projects prior design stage. A total of 90 projects were closed out in the last quarter. The projects sitting at design stage would need to filter through to tender stage and thus getting ready for implementation. The province added a total number of 327 projects since the beginning of the financial year.

12. MPUMALANGA PROJECT PIPELINE A total of 91 projects were closed out in the financial year. The project pipeline shows that the PED identified some projects at the beginning of the financial year; however these seem not to have filtered through and thus getting ready for implementation.

13. NORTH WEST PROJECT PIPELINE There hasn’t been any project reported as closed out in the entire financial year. The PED shows a smooth movement of projects within the system, though more of the identified projects should filter through to feasibility stage.

14. NORTHERN CAPE PROJECT PIPELINE The province added a total of 32 projects into the system in the fourth quarter. The PED needs to filter projects sitting in design stage through to tender to ensure that there is a pool of projects ready for implementation. The PED can be commended for closing out 108 projects as at end of the financial year.

15. WESTERN CAPE PROJECT PIPELINE The PED does not did not report any projects in the initial stages of project implementation. About 37 projects were completed in the financial year. The PED did not report any projects under final completion stage.

16. HR Capacitation for School Infrastructure Delivery The education sector has identified lack of appropriate capacity as a impeding factor in school infrastructure delivery. The process of strengthening Infrastructure delivery capacity in the Provincial Education Infrastructure units has been ongoing, with the key objective of recruiting and appointing of built environment and finance personnel for improving school infrastructure delivery in our provinces. A total of 153 vacancies have been filled.

17. HR Capacitation for School Infrastructure Delivery Provinces have been provided a maximum of R26 million from the Education Infrastructure Grant in the 2014/15 financial year for the appointment of public servants to their infrastructure units. This funding has been increased to R32.9 million in the 2015/16 financial year for the process to be taken through to district level. The Initiatives aimed at capacitating district offices are also being addressed as building operational capacity at these levels as infrastructure needs and progress is monitored at district level. The sector has continued to engage with the Department of Public Service and Administration in working out market competitive remunerative strategies to ensure that the posts are attractive for the more experienced candidates to take up in all nine provinces.

18. DBE has established a PSU within the DBE to monitor the implementation of infrastructure and services provision by the various Professional Service Providers (PSP’s) and Implementing Agents (IA’s) that the Department of Basic Education and provinces are utilizing for the implementation of the infrastructure programme. The PSU is responsible for continuously tracking progress on projects; inspecting work in progress and in completed projects to evaluate quality of work as well as monitoring expenditure per project on a monthly basis DBE has also increased its monitoring capacity and monitoring visits are conducted twice annually where planning, budgetting, expenditure, monitoring, project management and procurement issues are interrogated and a sample of projects are visited. Based on the findings from these visits, remedial actions are devised with the province and monitored by the DBE. 18 Monitoring Infrastructure Delivery in the Education Sector

19. Monitoring deals with both programme and project matters; Programme matters include; -The pattern of overall expenditure being achieved; -Comparisons of expenditure to projected cash flows; -Progress being made with key groups of projects [eg. Water, sanitation, libraries, laboratories, Grade R] At the Project level the focus is on ensuring : - that planning and design processes are progressing; -that the tender process for the appointment of contractors is progressing, that construction is progressing satisfactorily, [i.e. on programme, on budget, at acceptable quality…]; -that projects are being handed over and closed out and that final accounts are being wrapped up

20. Approach to Monitoring Projects that have been implemented over a long period of time, especially those in excess of 12 to 18 months. Projects that are in critical phases of construction so that workmanship could be monitored and evaluated. Projects that have had significant cost variation. Projects that have not had showed progress on delivery in relation to the finances progress Projects with a high monetary value; Special Schools;

21. Strengthen Planning and Monitoring capacity Projects visited

22. Monitoring Infrastructure Delivery (Photographs)

23. Progress on Delivery

26. EIG Allocations -2015/16 MTEF 26 PROVINCEAllocationMTEF Estimates 2015/162016/172017/18 R'000 Eastern Cape1 703 8771 532 0031 400 000 4 635 880 Free State762 552707 553742 931 2 213 036 Gauteng935 7251 274 8251 428 566 3 639 116 KwaZulu-Natal1 978 6841 857 6481 950 530 5 786 862 Limpopo805 128845 384953 589 2 604 101 Mpumalanga857 247802 247842 359 2 501 853 Northern Cape446 998359 545300 000 1 106 543 North West995 107853 678842 359 2 691 144 Western Cape1 032 237874 263860 226 2 766 726 Unallocated666 5461 010 002 1 676 548 Total 9 517 5559 773 69210 330 562 29 621 809

27. 2015-2019 Plans New and replacement schools

29. 2015/16 Plans Teaching spaces Number of new & additional facilities to be completed NEW SCHOOLSEXISTING SCHOOLS TOTAL 2015/16 TARGET 2015/16 Number of ordinary classrooms 294932026151 Number of Grade R classrooms 192450642 Number of multi purpose classrooms 98198296 Number of multi media centres ( Library+ computer) 252247 Number of Technical workshops 16925 Number of Laboratories112183295 Number of Libraries95101196 Number of computer rooms 101125226 Number of halls / forums7865143

30. 2015/16 Plans Number of new & additional facilities to be completed NEW SCHOOLSEXISTING SCHOOLS TOTAL 2015/16 TARGET 2015/16 Number of offices40312291632 Number of storerooms6496681317 Number of safes / strongrooms 108298406 Number of photocopying rooms 60276336 Number of staffrooms87276363 Number of sickrooms183290473 Number of tuckshops31637 Number of kitchen for staff 98282380 Number of nutrition centres 70272342

31. 2015/16 Plans Number of new & additional facilities to be completed NEW SCHOOLSEXISTING SCHOOLS TOTAL TARGET 2015/16 TARGET 2015/16 Water No water - number of schools to be provided with water 148249397 Upgrading of water facilities - number of schools 101143244 Sanitation No ablution facilities - number of schools to be provided with sanitation 161453614 Additional & upgrading of sanitation facilities - number of schools 19236173809 Energy No source of electricity - number of schools to be provided with electricity 111105216 Upgrading of electricity - number of schools 043

32. 2015/16 Plans Number of new & additional facilities to be completed NEW SCHOOLS EXISTING SCHOOLS TOTAL TARGET 2015/16 TARGET 2015/16 Sport facilities No sport facilities - number of schools to be provided with sport facilities 90393 Upgrading of sport facilities number of schools 023 Maintenance, upgrading projects Maintenance / upgrading / renovations - number of schools 04488

33. Provincial status- Provision of furniture 33 Eastern CapeIn 2014/15 financial year, there were 845 schools which were not covered in the provincial plan. DBE has committed to provide 845 of these schools with furniture Free SateSchools purchase furniture from their allocations GautengAn amount of R24 000 000 is allocated in this financial year. By end of March 2015, 15571 chairs, 3435 tables and 440 lab stools were delivered to 115 schools and to 300 grade R classrooms. The province is in the process of verifying the furniture need for the remaining schools that did not receive furniture LimpopoThe province could not spend the budget allocated in 2014, meaning under expenditure of 100% was incurred by the province. The province has a budget cut from R55 596 000.00 to R35 000 000.00 in this financial year. KwaZulu Natal3885 schools with shortage of school furniture were identified. There is no budget allocation for school furniture in the province. Schools purchase furniture from their allocations. MpumalangaBy end of March 2015 furniture has been delivered to 410 schools of the 661 planned. For this financial year school furniture allocation was increased to R82 000 000.00 North WestA total of 225 schools were provided with furniture in the 2014/15 financial year 2014/15. The budget allocation for 2014/15 was R27million. The province has reduced the allocation to R8 500 000.00 in the 2015/16 financial year Northern CapeSchools purchase furniture from the allocated norms and standards funding. However, for 2015/16 the province has allocated a budget of R20million for existing schools. 62 schools have been targeted to receive furniture in the current financial year in the four districts. Furniture for new schools will be included in the contracts and will be funded from the EIG Western CapeBy end of March 2015 furniture was delivered to all the schools with only chairs and teachers furniture which is currently being finalized. The budget allocation for this financial year is R16 539 000. Furniture to the value of R10 953 123.92 has been ordered to cater for all the needs

34. Website: www.education.gov.za Call Centre: 0800 202 933 | callcentre@dbe.gov.za Twitter: @DBE_SA | Facebook: DBE SA Thanks