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EDUCATION INFRASTRUCTURE GRANT. PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS. 02 JUNE 2015. Education Infrastructure Grant Expenditure for 2014/15 Financial Year.
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EDUCATION INFRASTRUCTURE GRANT PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS 02 JUNE 2015
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.
Education Infrastructure Grant Expenditure for 2014/15 Financial Year
Education Infrastructure Grant Expenditure for 2014/15 Financial Year 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.
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.
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.
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.
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 .
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.
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.
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.
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.
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.
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.
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.
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.
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.
Monitoring Infrastructure Delivery in the Education Sector • 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.
Monitoring Infrastructure Delivery in the Education Sector • 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
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;
Strengthen Planning and Monitoring capacity Projects visited
