1. Municipal Infrastructure Support Agent ____________________________________________________ The Approach to Distribution Asset Management (ADAM) Briefing to Energy Portfolio Committee Date:Friday, 1 November 2013, Parliament, Cape Town

2. CONTENTS 1.INTRODUCTION 2.BACKGROUND ON MINI ADAM 3.ROLE OF MISA ON ADAM 4.MISA CURRENT SUPPORT ON ENERGY 5.FUTURE ROLE OF MISA ON ADAM 6.CONCLUSION & WAYFORWARD 2015/12/17MISA Briefing to Energy PC2

3. 2015/12/17MISA Briefing to Energy PC3 INTRODUCTION The Portfolio Committee on Energy previously invited the Municipal Infrastructure Support Agent (MISA) to provide a briefing on the pilot project on the Approach to Distribution Asset Management (ADAM). ADAM is a programme initiated by the Department of Energy (DOE) with the aim of getting municipalities to address increasingly high levels of backlogs on maintenance and refurbishment of their electricity distribution assets. Since its establishment, MISA has been supporting low capacity municipalities to address key problems on their infrastructure for key services, including electricity distribution. The nature and extent of support is intended to assist municipalities realise ADAM objectives.

4. Background to ADAM In 2012 DoE, adopted a strategy called the Approach to Distribution Asset Management (ADAM). This multi phased programme is intended to address the electricity distribution challenges, and aimed at addressing the backlog in maintenance, refurbishment and upgrading of the Electricity Distribution networks. The initial work undertaken in implementing ADAM focused on addressing the capital and skills shortage that exists in the electricity distribution industry which was driven by the Electricity Distribution Industry (EDI) Holdings. The establishment of the Regional Electricity Distributors (REDs) was aimed as an institutional mechanism to address these challenges. Although EDI has since been disestablished and Regional Electricity Distributors (REDs) have been discontinued, there is still a need to address poor infrastructure maintenance and weak management capacity in electricity distribution 2015/12/17MISA Briefing to Energy PC4

5. ROLE OF MISA ON ADAM PROGRAMME Background to ADAM 2015/12/17MISA Briefing to Energy PC5 Currently MISA is a member of the National Steering Committee on the MINI ADAM Programme. The National Steering Committee chaired by DOE was established as governance structure that should enable all the relevant key stakeholders to participate on the piloting of the mini ADAM programme. In September 2013, the National Steering Committee held its 1 st meeting co-ordinated and chaired by DOE where MISA together with other stakeholders were present. At this meeting the DOE tabled the TORs for the National Steering Committee and role this structure would provide regarding the programme. The role was crafted as the provision of a national oversight, programme and project management to the MINI ADAM Programme.

6. FUNCTION OF THE MINI ADAM STEERING COMMITTEE The Steering Committee is responsible for; –approving budgetary strategy, –defining and realising benefits, –monitoring risks related to the programme, –ensuring quality and –adherence to timeframes by the local municipalities that received the allocation 2015/12/17MISA Briefing to Energy PC6

7. MANDATE OF MINI ADAM STEERING COMMITTEE (MASC)  considers and recommends approval of the business plans and achievement of outcomes.  ensures the project's scope aligns with the requirements of the stakeholder groups  provides those directly involved in the project with guidance on project business issues  ensures effort and expenditure are appropriate to stakeholder expectations  addresses any issue that have major implications for the project  keeps the project scope under control as emergent issues force changes to be considered  reconciles differences in opinion and approach, and resolves disputes arising from them  reports on project progress to those responsible at a high level. 2015/12/17MISA Briefing to Energy PC7

8. MISA CURRENT DEPLOYMENT MODEL 2015/12/17MISA Briefing to Energy PC8 LOW CAPACITATED MUNICIPALITY (108 ) Individual Technical Experts (65) Professional Services Providers (25 PSP) CAPACITY BUILDING PROGRAMME

9. CURRENT SUPPORT TO MUNICIPALITIES Technical Support MISA currently has 65 technical (engineering and planning) professionals deployed to support a total of 107 municipalities throughout the country. In addition to the deployed professionals a total of 25 Professional Service Providers (PSPs) have been contracted and assigned to support prioritised municipalities. The main role of PSPs is to assist each municipality in addressing specific issues pertaining to the infrastructure and service delivery backlogs and effective maintenance of existing infrastructure. 2015/12/17Briefing to CoGTA PC on MISA9

10. CURRENT SUPPORT TO MUNICIPALITIES A total of 91 municipalities have been assisted to develop and adopt Integrated Support Plans; these are part of the 108 municipalities prioritised by CoGTA for LGTAS support. Included among these 108 municipalities are the 23 (+1) districts selected by cabinet for focussed support towards the reduction of their high service backlogs. An Integrated Support Plan (ISP) for each municipality was informed by the outcome of a diagnostic assessment conducted. The approach is to ensure that support provided is tailor-made for each municipality to respond to its peculiar challenges identified during the assessment. Support being provided to these municipalities is intended to mainly address their respective weaknesses in infrastructure and service provision.

11. CURRENT SUPPORT ON ENERGY Municipal Capacity Building: Electricity Supply MISA’s initiative aimed at strengthening the capacity of municipalities to perform the electricity distribution function entails the following: Placement of electrical apprentices for operation and maintenance of distribution infrastructure. Training of officials in municipalities’ electricity/ technical departments focusing on the electricity distribution and solar/renewable energy supply. Supporting municipal officials and unemployed graduates qualified in the electricity field to register with relevant professional bodies. Supporting and facilitating the trade testing for both municipal officials and unemployed graduates. Granting of bursary to students in electrical engineering and related fields. Currently a total of 234 Electrical Apprentices are placed in 25 municipalities under 6 Provinces (EC, KZN, LM, MP, NC and NW), for experiential learning. In addition 29 candidates are undergoing experiential learning in municipalities across all nine provinces towards qualifying as Artisans in the electricity sector. 2015/12/17 MISA Briefing to Select Committee on ED 11

12. CURRENT SUPPORT ON ENERGY Municipal Capacity Building: Electricity Supply Cont… 2015/12/17 MISA Briefing to Select Committee on ED 12 PROVINCEMUNICIPALITYNO. OF ELECTRICAL APPRENTICES Eastern CapeMeletswai, Senqu, King Sabata Dalindyebo, Mnquma 8 Kwazulu-NatalMsunduzi, Mpofana, Mandeni, Newcastle, Kwadukuza 69 LimpopoBlouberg, Modimolle, Polokwane17 MpumalangaAlbert Luthuli, Lekwa, Thaba Chweu, Umjindi, Nkomazi 39 Northern CapeSol Plaatjie, Kamiesberg, Kareeberg, Kai!Garib 11 North WestRustenburg, Madibeng, Matlosana10 Total134

13. LIST OF MINI ADAM PROJECTS Name of MunicipalityScope of WorkAllocation “000 Nelson Mandela MetroUpgrading of two Substations and Switch Gears 35 000 Mangaung MetroUpgrading of 132kv lines Feeder lines 25 000 Msunduzi LMUpgrading of Primary Network and substations 100 000 Sol Plaatje LMUpgrading of Substation20 000 Tlokwe LMReplacement of 11KV line20 000 Moqhaka LMNew Over Head Line 66kv20 000 Nala LMSubstation and new infrastructure construction 20 000 Ngwathe LMUpgrading of bulk supply20 000 King Sabata DalindyeboUpgrading to a CBD Sub station 60 000

14. MISA SUPPORT TO MINI ADAM PROGRAMME MISA plans to support identified municipalities in the following areas; 2015/12/17MISA Briefing to Energy PC14 Development of Asset Registers Maintenance and Operations Project Management Investment, Networks & Master Planning Energy Losses Management Pricing and Tariff Structure Technical Skills Development (Capacity Building Programme) Technical Standards Improving Efficiency in Procurement

15. CONCLUSION & WAYFORWARD The support indicated will only be provided to local municipalities where MISA has Technical Experts. MISA has also put in place plans to recruit 9 additional Electrical Engineers that will be deployed to each province to augment the existing limited support. Through the capacity building programme MISA will be training addition 29 candidates are undergoing experiential learning in municipalities across all nine provinces towards qualifying as Artisans in the electricity sector. 2015/12/17MISA Briefing to Energy PC15

16. THANK YOU!!!!!!! 2015/12/17MISA Briefing to Energy PC16