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1.
Gauteng PPP conference
18 February 2010 Infrastructure Development
2. Population served ~ 14 million
Civil engineering professionals ~ 2500 +
21 + civil staff per hundred thousand population
3. Functions performed
4. Population
served ~
47 million
Civil engineering professionals in 2007 ~ 1300 +
~2.8 civil staff
per hundred thousand population
Wall to wall local government since 2000
5. Successful local authorities
6. Numbers and Needs in Local Government : Civil Engineering the critical profession for service delivery November 2007 Functions performed
7. Bleeding has taken place for a long time
10. Limited maintenance waste, sanitation, stormwater challenges
11. The electricity challenge Ageing distribution networks and equipment
High losses due to poor financial management, calibration and theft
Total lack of funds for maintenance
Vandalisation, cable & transformer theft
for copper
10% energy savings required by ESKOM
Limited engineering staff remain
Few GCC registered
Few artisans
No O&M waiting for the REDs
for the past 17 years!
12. Water losses
13. What to do new dams or fix leaks huge cost benefit to fix leaks!
14. Maintenance has become prohibitively expensive because of neglect
15. Rough estimate of maintenance backlogs in Gauteng
17. Functions needed
18. To dos Increase income
Re-prioritise spending to increase development, operations and maintenance
Increase engineering capacity
Harness private sector to break the back of development and upgrading needs, and assist with training
19. Increase income, address losses, Correct tariffs (many municipalities selling way below cost)
Enforce developer contributions
Set up systems to determine who to be billed to increase income
Chase debtors only about 20% of outstanding debt relates to indigents
Collect money from other consumers to cross subsidise indigents
Automatically debit public sector departments and employees
Repair water and electricity networks to reduce losses
Consider metering technologies
20. Innovate and invest in maintenance Look at new technologies and life cycle costing for new projects and include maintenance budgeting as a condition of all future developments
Make equitable share conditional and ring fence maintenance funds
Need to calculate maintenance budget from zero base to determine actual need 6% increase per annum has eroded effectiveness because
Staffing costs have increased beyond 6%
Operating costs have increase beyond 6%
leaving little for spares and materials
21. Funding for turnaround Need to reprioritise municipal spending, reducing expenditure on non-core activities
Need specific grant to restore non-income generating infrastructure
Need loans to restore income earning infrastructure, as savings from reduced losses will soon repay loans
22. Capacity - rebuild not restructure Capacity levels at an all time low
Rebuild structures and develop meaningful organograms
Change terms and conditions to retain S57 staff unless inadequate performance, rather than terminate in the absence of performance reviews
Stop job hopping
23. Professionalise Develop competence model
Appoint professional, registered, senior officials with sound track record (MM, CFO, Chief Engineer)
Review selection criteria guidelines from
Profession of Town Clerks Act (Act 75 of 1988)
Municipal Accountants Profession Act (Act 21 of 1988)
Engineering Profession Act (Act 46 of 2000)
Professional bodies to assist with interviews and selection
24. Develop technical team Increase spend on technical staff usually way below 32% - reduce staffing levels in non-core activities if necessary
Train engineering staff, with external mentorship if necessary
Implement career and succession planning
Involve students, graduates, inadequately trained in-house staff
Train and fund more artisans
Mandatory infrastructure asset management system for all municipalities
Train students/graduates and set up dedicated team to keep info up to date in order to adequately budget for and manage infrastructure
Implement real-time complaints log, repair process, reporting and costing for maintenance activities
25. Rebuild collapsing structures
27. Successes of support to date Technical job description programme developed
28. Engineering students graduate as a result of experiential opportunities
29. External delivery mechanisms Partnership with the private sector
PPP (Public private partnerships)
PPC (Public private cooperation)
Use communities a lot more for maintenance and increase job creation
Franchising
Short term support and training from private sector
30. Second young staff to consultants to be trained
Private sector to second experienced municipal staff to local government to rebuild capacity, offer structures and systems, and on-the-job training, or
Outsource rebuilding of municipal structures to consulting firms (S78 type of approach over say a 5 year period) condition that senior engineers with municipal experience must be used to manage the rebuilding process
Work with the MM and be given authority to make the changes
31. An Engineering Corps:
Set up an engineering corps with experienced engineers to direct and attend to many strategic and planning issues (suggested by Professor Steven Kelman of Harvard, when the capacity problems were outlined in a meeting with National Treasury)
Panel of consultants:
Appoint a panel of experienced consultants for specialist work that municipalities can harness without going to tender (Clause 32 of the MFMA)
Develop standards and scopes:
Use pool to assist municipalities with tenders and scopes of work
32. Second engineering staff and apprentices to contractors to be trained
Harness contractors to train SMMEs and communities as part of each major contract so that they can be used for on-going maintenance thereafter
Adopt-a-town - private sector contracts to adopt-a-town in toto to:
Address backlogs
Refurbish and rehabilitate
Put operating and maintenance systems and processes in place
Address losses, increase income etc
Build capacity in all departments (technical, financial, HR etc)
Use powerful CEO type of person who has run large businesses in the past to set up
33. It has been suggested that O&M could largely be outsourced, but that service providers should be franchisees, set up and trained by recognised franchisors, to give municipalities the peace of mind that there is quality control and franchisees have access to expertise in case of challenges which arise beyond their level of expertise
34. Partnerships Both parties take risk and can make profit
Private sector take over municipal function
Challenges
Many clauses in MFMA which must be addressed
MM being accountable officer, controls / constrains the partnership and limits flexibility and efficiency of the private company
Need strong technical control
Need strong transaction advisor
Need strong project officer
Need independent company to monitor and quality control
36. Numbers and Needs in Local Government Contact details:
Allyson Lawless
allyson@ally.co.za
SAICE (to purchase book)
Angelene Aylward
011-805 5947
aaylward@saice.org.za