Briefing to Energy Portfolio Committee Date: Friday, 1 November 2013, Parliament, Cape Town

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 • INTRODUCTION • BACKGROUND ON MINI ADAM • ROLE OF MISA ON ADAM • MISA CURRENT SUPPORT ON ENERGY • FUTURE ROLE OF MISA ON ADAM • CONCLUSION & WAYFORWARD MISA Briefing to Energy PC

3. 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. MISA Briefing to Energy PC

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 MISA Briefing to Energy PC

5. ROLE OF MISA ON ADAM PROGRAMMEBackground to ADAM • 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 1st 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. MISA Briefing to Energy PC

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 MISA Briefing to Energy PC

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. MISA Briefing to Energy PC

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

9. CURRENT SUPPORT TO MUNICIPALITIESTechnical 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. Briefing to CoGTA PC on MISA

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 ENERGYMunicipal 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. MISA Briefing to Select Committee on ED

12. CURRENT SUPPORT ON ENERGYMunicipal Capacity Building: Electricity Supply Cont… MISA Briefing to Select Committee on ED

13. LIST OF MINI ADAM PROJECTS

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

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. MISA Briefing to Energy PC

16. THANK YOU!!!!!!! MISA Briefing to Energy PC