1. 1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS MARCH 2006

2. 2 INTRODUCTION EPWP is now completing its second year Opportune time to reflect on the progress made, lessons learnt, shortcomings and challenges President’s SON Address on EPWP “We will continue to pay particular attention to the Expanded Public Works Programme as an important bridge between the two economies and a significant part of our poverty alleviation programme”.

3. 3 Amongst other things, resources for the public works programme will be pooled to ensure maximum impact both in terms of product delivered and employment and skills training opportunities. Better supervision of infrastructure projects undertaken by government will be introduced, to ensure that capital budgets are spent without rollovers and that labour intensive methods are prioritised, and the necessary training of workers is carried out to provide them with skills”. Following the SON Address by the President there is a renewed enthusiasm and interest by public bodies. The main challenge is to CAPTURE THE MOMENT AND SUSTAIN THE MOMENTUM

4. 4 PROGRESS TO DATE MONITORING RESULTS IndicatorProgress* Number of EPWP projects being implemented or completed 3483 Expenditure on EPWP projectsR 3.2bn Gross number of work opportunities223 410 Net number of work opportunities174 845 Person-years of work created71 087 *Excludes social sector and municipalities due to absence of reports Overall Quantitative Data for the Financial year 2004/05

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6. 6 Monitoring Results Quantitative Data for the Financial year 2005/06: 1st Quarter IndicatorProgress* Number of EPWP projects being implemented or completed 806 Expenditure on EPWP projectsR 372m Gross number of work opportunities60 448 Net number of work opportunities59 260 Person-years of work created10 142 *Excludes social sector and municipalities due to absence of reports

7. 7 Quantitative Data for the Financial year 2005/06: 2 nd Quarter (Containing Cumulative Data for Period 1 Apr-30 Sept 2005 ) IndicatorProgress* Number of EPWP projects being implemented or completed 2 606** Expenditure on EPWP projectsR 1 126.7m Gross number of work opportunities89 489 Net number of work opportunities 88 040 Person-years of work created 20 250 Excludes municipalities due to absence of reports ** Social Sector HCBC and ECD sites are listed as separate projects

8. 8 EPWP in the infrastructure sector seeks to maximise the primary impacts of construction in government funded infrastructure:  Make the construction and maintenance process more labour intensive  Link projects to skills development that can enhance the employment opportunities for workers SECTOR PROGRESS REPORTS INFRASTRUCTURE

9. 9 Training and Skills Development 290 Contractors under training 580 Site supervisors being implemented EPWP Targets: 1000 Emerging contractor learnerships 2000 Site supervisor learnerships Linking projects to other technical skills

10. 10 Key Challenges Ensuring all workers receive training Improving exit strategies to move participants from second to first economy Contribution of municipalities Mobilising all the relevant SETA’s to support the various sectors of the EPWP Mobilising contractors to fully buy into the EPWP Ensuring that additional allocations are spent on EPWP projects

11. 11 Strategic focus for coming years Structuring of larger EPWP projects Intensified support to municipalities Scaling up in the access roads sector

12. 12 Small vs. Large EPWP projects Infrastructure projects are often small in order to targets emerging contractors Unintended consequences  Large overhead and management costs to government  Highest capacity part of the construction industry not involved in service delivery (only private sector/ mega projects)  Lack of transfer of skills within the sector Structure to ensure that projects become bigger, have higher impact but at the same time contribute to BBEEE, training and development of emerging contractors

13. 13 Intensified support to municipalities Background  Most municipalities currently “not in EPWP”: no reports, no systematic way of assessing their challenges and contributions To address this, an improved approach is being developed that can be implemented together with the provinces:  Identify key municipalities who have potential to make large contributions to EPWP  Support them with planning and implementation of EPWP

14. 14 Intensified support to municipalities EPWP unit is developing systematic approach to:  Investigate status of municipality with regards to EPWP and identify key challenges  Sign MOU to formalise support with selected municipalities  Design interventions to address key challenges  Implement interventions with support of EPWP Unit, Business Trust, IDT and specialised firms  Approach will be used on 45 municipalities in 06-07 and rolled our further in future years (can be increased if provinces can also agree on such a focus and allocate resources in this regard)  Approach to be shared with provincial coordinators to see how they can support this approach

15. 15 Intensified support to municipalities Many challenges in municipalities are generic  Lack of technical capacity to implement infrastructure projects in general  Insufficient experience with Labour intensive construction  Challenges with using EPWP Guidelines  Monitoring compliance during implementation  Briefing communities on the principles of EPWP projects (task based payments)  Planning and arranging training

16. 16 Scaling up in Access Roads Background  General under investment in roads  Good expenditure by roads department  Access roads are under-funded because of lack of clarity with regard to ownership, but are critical to economic development and providing services  Good track record in the roads sector with regards to labour intensive construction  Additional funds to be used to provide incentives to channel own funds into EPWP and Labour-intensive construction of roads  Projects are small: highly management intensive, limited impact, short duration, limited skills development

17. 17 Key features: R4.48 billion additional funds over MTEF (Approximately 20% for maintenance and 80% for capital projects):  R500 million in year 1  R1.6 billion in year 2  R2.4 billion in year 3 Long term programme approach will be emphasised Target number of additional long-term jobs in road maintenance from the scaling up of the EPWP in the roads sector: 60 000 Target number of additional short-term employment opportunities in road construction: 100 000 Number of km of additional km of roads to be maintained: 45 000 km Number of km of roads to be constructed : 3 000 km Scaling up in Access roads (ASGISA)

18. 18 Scaling up in Access Roads Processes (still to be finalised)  Comprehensive long terms proposals, not just list if projects  Without suitable business plans no funds  Funds from underperforming provinces can be re-allocated to performing provinces  Municipalities can submit proposals to provinces for access roads  Details will need to be worked out  Encouragement to take a programme approach: Vuk’uphile, Zibambele, etc.

19. 19 Treasury allocated an additional R4.2 billion as part of the Provincial Equitable share to expand ECD and HCBC. Integrated ECD plan completed and repackaged into 3 components, viz: overall strategy of integrating ECD services, 5yr strategic plan and a matrix indicating the different roles of each department 24 720 care givers currently receiving stipends 9 157 HCBC volunteers trained SOCIAL SECTOR

20. 20 3 360 ECD practitioners trained including training in Grade R (of these total 360 are being trained with the ETDP SETA funding). Institutional mechanisms to drive EPWP created in all provinces Audit of care givers by the sector has commenced in all the provinces Capacity assessment of NGOs and CBOs commenced Preliminary report on the implementation challenges faced by the sector completed SOCIAL SECTOR

21. 21 Training needs analysis for EPWP completed in all provinces Learners have been identified, service providers appointed and learning sites identified Partnership with Umsobomvu and the DSD to upscale the NYSP by expanding HCBC in other provinces Processes for the NYSP commenced in Limpopo, Free State and Western Cape (partnership with Umsobomvu and EU). Expanding NYSP in other programmes including ECD, unemployed graduates programmes, and sports coaching in schools Learning framework and materials for the community care giver completed ready for publishing May 2006 SOCIAL SECTOR

22. 22 Tasks at Hand Finalisation of the provincial business plans and consolidation of the national business plan: March 2006 DBSA/Social sector audit of work opportunities and potential in the Social Sector, institutional and management requirements for the social sector: Tender closed on 06 March 2006 Finalise management systems: scope of work, stipend,criteria for selecting learners, monitoring and reporting, norms and mentoring. Work with SETAs to accelerate the accreditation of training service providers Planning for the Social sector Lekgotla in May 2006 Facilitate acceleration of registering additional sites Establish a regulatory body for Community Health workers Sep 2006

23. 23 Targets: Training Training of caregivers and ECD practitioners ECD  Total over 5 yrs 106 000  Target for 2006/0712 500 CCG  Total over 5yrs 125 823  Target for 2006/0715 9470

24. 24 Targets: Beneficiaries HCBC  Current377 509  2010 Targets2.9 million  2006/07 TargetsAdditional 130 000 (focus in nodal areas) ECD  Current182 064  2010 Targets1 million  2005/06 TargetsAdditional 78 000 (including grade R in community based sites)

25. 25 ECONOMIC SECTOR The sector has commenced the implementation of a no. of venture learnerships in various sectors in 5 provinces. Currently 170 venture learnerships have commenced. These learnerships focus on the provision of business skills to contractors in the Limpopo (120) and the Eastern Cape (50) provinces. NDPW has been engaging with several SETAs and Public Bodies and a number of MOUs are expected to be signed by March 2006.

26. 26 SETAType of businessSETA Commitment s Public Body Counterparts Energy SETA Electrician Business15NDPW Energy SETA Electrician Business15DTPW, WC FoodBevBread Making Co.’s25 Corr Serv AgriSETAPest Control Co.’s15DTPW, WC AgriSETAPest Control Co.’s15eThekwini ThetaEvents Mgt Co’s25eThekwini

27. 27 SETAType of businessSETA Commitments Public Body Counterpart s ThetaEvents Mgt Co’s30DTPW ISETTCable Co’s20DTPW W&RSupply Chain Mgt Co’s12DTPW W&RSupply Chain Mgt Co’s12FS Prov 184

28. 28 SETAType of businessSETA Commitments Public Body Counterparts ServicesProject Mgt and Cleaning Co’s 100DTPW – 60 FS - 12 LG SETAWaste Mgt Co’s20-30 (to be finalised) DTPW - 20 120

29. 29 Total SETA commitments (and Public Body Counterparts):  Learnerships underway: 170  MOUs to be signed shortly: 184  Further negotiations with the SETAs required: 120  Total commitments: 474

30. 30 PROPOSED TARGETS PER PROVINCE These targets are not in addition to the commitments as per the earlier slides. These targets total 3000 ventures learnerships. The proposed targets consider GDP figures, procurement budgets and learnership interests ProvincesProposed Targets up to 2008/09 GP475 KZN 475 WC475 LP400 EC275 NW175 NC175 FS275 MP275

31. 31 ENVIRONMENTAL SECTOR Identified provincial focal departments for coordination of Environment and Culture Sector Established a system of reporting and information flow with provinces and local governments (data collection, processing and reporting) Provinces developing implementation plans to the National Sector Plan Business Trust funding pilot labour intensive municipal waste management programme Sector aligning its training framework to the EPWP training

32. 32 TRAINING DEMAND AND QUALITY  Training of EPWP beneficiaries has significantly improved- No longer limited to life skills  Nature of training on the projects is through short courses, skills programmes and technical courses  Finalised the EPWP Training Framework which is intended to provide all public bodies with the knowledge, skills and information to implement EPWP training

33. 33 Support is being provided to the public bodies for planning the EPWP training Relationship with the Department of Labour has also significantly improved and negotiations are currently underway between DPW and DoL for funding of 2006/2007 EPWP training The computerised database for work-seekers is being developed by DoL 72 Labour Centres have been identified to which CIGS will possibly be rolled out DoL to ensure how the EPWP beneficiaries are captured for exit strategy purposes

34. 34 CHALLENGES OF EPWP TRAINING Planning of the training by the EPWP public bodies A number of workshops are being held currently to empower public bodies on how they should plan the training on the EPWP projects in order for their projects to comply as EPWP Identification of exist strategies through the training Training has to be linked to future viability as exiting strategies Public bodies to design projects where workers could gain the necessary credits required for exiting

35. 35 Quality of training offered Crucial to look at the assessment processes for the training and monitoring the quality of the training offered by the training providers DoL and EPWP looking at a strategy to improve on this Availability of training providers DoL and EPWP working on a strategy to increase the number of training providers available for the courses required by the EPWP

36. 36 Public & Media Relations – activities center around visits to provinces, with interviews, press releases Conferences – support for Work 2005 Learnership Video Launch and celebration of labour intensive contractor learnership – Documentary – focusing on selected national projects Limited advertising – primarily advertorials EPWP Communications

37. 37 Sustaining Media interest Managing beneficiary expectations Corporate identity  Co-branding of EPWP with existing programmes  Visibility of all EPWP initiatives Equal Focus on all 4 sectors Political ownership in all sectors Creating awareness of projects across different tiers of government Creating multiple communication streams to increase impact New service providers in process of been appointed EPWP Communication Challenges

38. 38 Involvement of Business in the EPWP Business Trust has committed R100 million over 5 years to provide support to the EPWP by:  Funding of targeted assistance to national departments  Funding of private sector field teams to support and assist provinces and municipalities to implement their infrastructure projects in terms of the EPWP  Piloting municipal waste management  Teams supporting selected provincial social sector departments to develop business plans for funding  Innovation research

39. 39 ISSUES HIGHLIGHTED IN THE STRATEGIC PLAN  July 2005 Cabinet Lekgotla took a decision to upscale the EPWP  Small size and limited impact of EPWP projects to create sustainable employment  Various proposals submitted to Treasury  DPW and DoT jointly submitted a proposal on labour intensive needs related infrastructure projects

40. 40 Accelerated delivery programme in the Social Sector for ECD and Community Care Givers presented to Treasury and approved. Proposal for a special fund not accepted by Treasury Proposal for a special und not accepted by Treasury Scaling up in the Environmental Sector is to be explored

41. 41 ASGI-SA related 370 billion major infrastructural involvement will also benefit EPWP EPWP on course to meet its job creation targets Still an ongoing need to increase the participation of multiple sectors of government Correct the perception that EPWP is a Public Works Programme Need to overcome resistance to the use of more labour intensive methods in infrastructure (more difficult to manage, take longer, are more costly and result in inferior planning)

42. 42 Need to demonstrate or showcase best practice projects which will dispel this perception Communication challenges Achieve EPWP goals using DPW capital and maintenance budget.

43. 43 CHALLENGES Need to shift the EPWP from an increasingly perceived DPW responsibility to a politically supported national programme which requires participation by all public bodies Need to increase and improve the capacity of the EPWP Unit to provide ongoing support to public bodies and monitor compliance

44. 44 To achieve these objectives the Strategic focus of the EPWP during the period of the Strategic Plan will be to Mobilise high political support and oversight to secure obligations on all Public Bodies to implement the EPWP Engage with those Public Bodies who demonstrate political and administrative commitments to EPWP and where explicit measurable guidelines can be applied.

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46. 46 EPWP Unit www.epwp.gov.za E-MAIL: epwp@dpw.gov.zaepwp@dpw.gov.za Tel: 012 337 3115 Fax: 012 328 6820