MINISTER’S FOREWORD The 2013/14 Annual Performance Plan is based on policy priorities set out in the MTSF, National Development Planand on the State of the Nation by the President. The national Department of Public Works is a critical player in the implementation of the government’s policy priorities. Given the challenges facing the Department, namely: lack of controls in Supply Chain Management (SCM) practices, poor lease management, lack of an appropriate accounting platform of the Property Management Trading Entity (PMTE), an inadequate Immovable Asset Register and lack of built environment and property management skills A Turnaround Strategy focusing on improving the performance of the Department at 3 levels has been developed and deals with immediate challenges, strengthening day-to-day core business and to moving the Department forward in strategic areas of long term transformation. As we strive for a turnaround, we will not lose focus of the core business of the Department, especially where this involves government priorities.

MINISTER’S FOREWORD The State of the Nation Address (SONA) 2012 has outlined an approach of driving and overseeing the Infrastructure Plans of National Government, Provinces, Metros, and Local Governments under Presidential Infrastructure Coordinating Commission (PICC). The Strategic Integrated Projects (SIPs) encourages convergence of projects to unlock economic benefits of specific Provinces or Districts. Public Works is a significant player in the PICC and accorded the responsibility to co-ordinate SIP 1. The latter being the project to unlock the Northern Mineral Belt with Waterberg as the catalyst. In addition to SIP 1, the Department is committed to deliver over 200 schools across the country by the end of the year in terms of SIP 13. EPWP as a flagship programme of the Department is set to achieve its target of creating 4.5 million work opportunities for the second phase and will benefit immensely from the implementation of the SIPs. EPWP will remain a key driver in tackling youth unemployment. In the year ahead as we commit to improved service delivery, we will utilise infrastructure investment to inter alia contribute to the re-engineering of spatial development and support Government’s rural development strategy.

PART AStrategic overview

INTRODUCTION AND STRATEGIC CONTEXT Vision The Department of Public Works is a custodian of a significant portion of State immovable assets. Charged with the responsibility of effectively managing these immovable assets, as a Government Department we seek to discharge this responsibility in our vision towards being a world class Public Works Department. Mission The National Department of Public Works aims to promote the government's objectives of economic development, good governance and rising living standards and prosperity by providing and managing the accommodation, housing, land and infrastructure needs for national departments, promoting the national Expanded Public Works Programme and encouraging the transformation of the construction and property industries. In pursuit of this objective the Department of Public Works seeks to:- • Efficiently manage the asset life cycle of immovable assets under the its custodianship; • Provide expert advice to all three spheres of Government and state-owned entities on immovable assets;

INTRODUCTION AND STRATEGIC CONTEXT • Contribute to the national goals of job creation and poverty alleviation through programme management, leading and directing of public works programmes nationally, of which the Expanded Public Works Programme (EPWP) forms an integral part; and, • Provide strategic leadership to the Construction and Property Industries. Values As a major custodian of the State’s immovable assets, the Department of Public Works acknowledges the authority of Parliament through whom we are accountable to the nation. As a department we are value bound to urgency in how we deliver services to user departments while ensuring all tasks are attended to timeously and with diligence. We value a client-focused approach to ensure that all aspects of our work are guided by the need to improve quality service delivery to clients, both internally and externally. Executing our mandate as a department with integrity is central to our work. We therefore reject any form of corruption and/or maladministration, and all employees vow to expose any actions undermining principles of good corporate governance. In doing so we, value teamwork, recognizing that every employee has a specific task and role to perform and the sum of all our actions defines our destiny as an organisation. In achieving these values, we will fulfil the faith that our nation has placed in us.

INTRODUCTION AND STRATEGIC CONTEXT • Five outcomes form the basis of DPW’s Strategic Plan: • Outcome 4 - Decent employment through inclusive economic growth; • Outcome 5 - Skilled and capable workforce to support an inclusive growth path; and • Outcome 6 - Create efficient, competitive and responsive infrastructure network; • Outcome 8 - Sustainable human settlements and an improved quality of household life; • Outcome 12 - An efficient and effective development-oriented Public Service and an empowered fair and inclusive citizenship. • The following areas are relevant to the Outcomes in the Minister’s Performance Agreement: • Outcome 4:Focus areas: reducing youth unemployment, analysing the cost structure of South African economy including input costs in the construction sector, expanding the EPWP, DPW implementation of the state Building Programmes. • Outcome 8:Focus area: Release of land and properties for developmental purposes to the Department of Human Settlements and Land reform and facilitate the re-development of remote area precincts. • Outcome 12: Focus area:DPW as the custodian of all Immovable State Assets ensures that immovable assets utilised for delivering various government services yield functional, economic and social benefits to the state for improved service delivery .

INTRODUCTION AND STRATEGIC CONTEXT • The following areas within the Department of Public Works are relevant to the National Development Plan: • The National Development Plan outlines interventions to put the economy on a better footing. The target for job creation is set at 11 million by 2030. Phase 2 of EPWP which covers the period 2009/10 to 2013/14 aims to create 4.5 million work opportunities. The Department of Public Works is a co-ordinator of EPWP programmes in the infrastructure sector. Other job creation projects include the young professionals programme, internship programme and learnership programme for graduates from sectors relevant to the department’s core business, and the resuscitation of regional workshops through the artisan training programme. • Transition to a low cost carbon economy: The Department of Public Works will continue to implement the energy efficiency programme, water efficiency programme and green buildings framework over the MTEF period in line with South Africa’s strategies to mitigate the effects of global warming, mandated by global protocols.

INTRODUCTION AND STRATEGIC CONTEXT • An inclusive and integrated rural economy: The Department of Public Works rural development programme focuses on the disposal of state-owned immovable assets in rural areas for developmental purposes and facilitates the re-development of remote area precincts. • Fighting fraud and corruption: The Department of Public Works is committed to improving internal controls aimed at rooting out tender fraud and corruption.

INTRODUCTION AND STRATEGIC CONTEXT • The following areas within the Department of Public Works are relevant to the 2013 State of the Nations Address (SONA): • Tender fraud and price fixing in the infrastructure programme - The Department is undertaking a review of the Supply Chain System in DPW to align the system to more modernised approaches. The Department has invested huge effort into the development of decentralised database, allowing a wider span of control for DPW’s Regional Offices to determine acceptable suppliers. The code of conduct applicable to Supply Chain Practitioners as well as key stakeholders in the Supply Chain System will be closely monitored for compliance. Back office administration of the procurement function is being strengthened to ensure strict compliance to the SCM prescripts. • Absorption of young people into the EPWP - South Africa is plagued with youth unemployment, high levels of poverty and inadequate skills. The EPWP plays a key role in tackling unemployment and providing access to social services, especially to marginalized communities. Through the EPWP our youth will acquire the necessary work experience and skills to set them on sustainable career paths.

KEY MEDIUM-TERM PRIORITIES continues…. • In implementing its Turnaround Strategy the Department’s focus is on the three overarching themes being: • Stabilisation • Efficiency enhancement and • Sustainability and growth

KEY MEDIUM-TERM PRIORITIES continues…. The following projects are receiving priority attention under the Turnaround

PUBLIC ENTITIES • There are four Public Entities reporting to the Department of Public Works. The Entities have identified, inter alia, the following key strategic programmes, for the MTEF period: • The Construction Industry Development Board (cidb): Growth and Contractor Development, Construction Industry Performance, Procurement and Delivery Management, Construction Registers Services; • The Council for Built Environment (CBE): Built Environment Academy, Centre for innovation and integrated planning, Public Interest; • The Agrément SA (ASA): the focus will continue to provide assurance of fitness of purpose for non-standardised construction technology; • The Independent Development Trust (IDT): Community mobilization and development, provide support to institutions such as NPOs, serve as programme management agency on government infrastructure projects.

PART BStrategic objectives

PROGRAMME 1: ADMINISTRATION • PURPOSE OF THE PROGRAMME: • To provide strategic leadership and support services, including the accommodation needs and • overall management of DPW. • SUB-PROGRAMMES: • MINISTRY: • The Ministry sub-programme, consisting of the office of the Minister and Deputy Minister, provides political and administrative support and report directly to the political head. • MANAGEMENT: • OFFICE OF THE DIRECTOR-GENERAL: • The office provides strategic leadership, guidance and oversees the overall implementation of DPW’s Strategic Plans, across all functions. The following units are part of the office: • Strategic Management Unit • Intergovernmental Relations and Parliamentary Services • Monitoring & Evaluation • Internal Audit and Investigation Services

PROGRAMME 1: ADMINISTRATION • FINANCE AND SUPPLY CHAIN MANAGEMENT: • The purpose of the sub-programme is to achieve financial effectiveness for both DPW and the PMTE through sound financial management, integrated financial planning, responsive and compliant supply chain management. • CORPORATE SERVICES: • Corporate Services is a partner in support of DPW’s service delivery objectives. It provides the following functions: • Human Resources • Information Services • International Relations • Communications • Legal Services • Security Services • Gender and Disability

PROGRAMME 1: ADMINISTRATION

PROGRAMME 1: FINANCE & SCM

PROGRAMME 1: CORPORATE SERVICES

CORPORATE SERVICES (Cont.…)

CORPORATE SERVICES (Cont.…) :

CORPORATE SERVICES (Cont.…)

PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT • PURPOSE OF THE PROGRAMME • To provide and manage Government’s immovable property portfolio in support of Government’s social, economic, functional and political objectives. • EXPECTED OUTCOMES OF THE PROGRAMME • An efficient, competitive and responsive economic infrastructure network (Outcome 6); • Sustainable human settlements and an improved quality of household life (outcome 8); • An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship (Outcome 12).

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) • SUB-PROGRAMMES OF PROGRAMME 2: • Strategic Asset Investment Analysis • To plan for life cycle immovable asset management based on credible asset data and portfolio and property analysis to achieve efficiency, economy and effectiveness in the use of DPW’s immovable asset portfolio; • Projects and Professional Services • Management of construction projects consisting of capital and refurbishment projects, creation of work opportunities by DPW within the construction and infrastructure service industry, provide training for built environment graduates, prioritise expenditure of the infrastructure budget to accrue to BBBEE accredited contractors including Women, Youth and People with disabilities; • Inner City Regeneration Programme • To cooperate with provincial and local spheres of government towards the regeneration of inner cities/towns. • Operations Management • To execute property and facilities management projects in a safe and secure working environment at regional level through the acquisition, maintenance, optimal utilization and disposal of immovable assets;

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) • Key Account Management and Prestige Management • To manage relationships between DPW and user departments on the provision of accommodation through facilitating signed Service Level Agreements(SLA), assisting user departments to compile User Asset Management Templates(UAMP), obtaining signed Capital Works Implementation Programmes(CWIP) from user departments and submitting Monthly Key Account Management Reports to user departments.

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) KEY PRIORITIES: Strategic Asset Investment Analysis

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) • KEY PRIORITIES: Strategic Asset Investment Analysis

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) KEY PRIORITIES: PROJECTS AND PROFESSIONAL SERVICES

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) KEY PRIORITIES: INNER CITY REGENERATION

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) KEY PRIORITIES: OPERATIONS MANAGEMENT

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) KEY PRIORITIES: KEY ACCOUNT MANAGEMENT (KAM)

IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont.…) KEY PRIORITIES: PRESTIGE

EXPANDED PUBLIC WORKS PROGRAMME (EPWP) PURPOSE OF THE PROGRAMME Ensure the creation of work opportunities and the provision of training for unskilled, marginalised and unemployed people in South Africa by coordinating the implementation of the Expanded Public Works Programme. EXPECTED OUTCOME OF THE PROGRAMME Decent employment through inclusive economic growth (Outcome 4). KEY PRIORTIES

CONSTRUCTION AND PROPERTY POLICY REGULATION PURPOSE OF THE PROGRAMME • To promote growth and transformation in the construction and property industries. • To promote uniformity and best practices in the construction and immovable asset management in the public sector. EXPECTED OUTCOME (S) OF THE PROGRAMME Skilled and capable workforce to support an inclusive growth path (Outcome 5).

CONSTRUCTION AND PROPERTY POLICY REGULATION KEY PRIORITIES: CONSTRUCTION AND PROPERTY POLICY REGULATION

AUXILIARY AND ASSOCIATED SERVICES • Purpose of the programme: Provide for various services including: compensation for losses on the government assisted housing scheme, assistance to organisations for the preservation of national memorials and to meet the protocol responsibilities for state functions. • Compensation for losses: Provides compensation for losses in the state housing guarantee scheme when public servants fail to fulfill their obligations. This sub-programme has no staff complement and has a total budget of R1.2 million, all of which is used for goods and services, specifically on contractors. • Assistance to Organisations for Preservation of National Memorials: Provides funding to the Commonwealth War Graves Commission and to the United Nations for maintaining national memorials. This sub-programme has no staff complement and has a total budget of R64.9 million, all of which is transferred to foreign governments and international organisations for the maintenance of national memorials. • State functions: Provides for the acquisition of logistical facilities for state functions. The sub-programme aims to ensure effective and efficient delivery of all state function activities. This sub-programme has no staff complement and has a total budget of R83.3 million, all of which is used for goods and services, mainly on contractors. • Sector Education and Training Authority: Aims to influence training and skills development throughout the construction industry. This sub-programme has no staff complement and has a total budget of R8.7 million, all of which is transferred to the Construction Education and Training Authority.

PART CBudget

SUMMARY BUDGET - MTEF

MTEF ALLOCATION PER ECONOMIC CLASSIFICATION

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