Hospital Revitalisation Grant: 2010/11 Financial Year

Hospital Revitalisation Grant: 2010/11 Financial Year Presentation to the Select Committee on Finance October 2010

. Background • . • The Hospital Revitilisation Grant is utilised to replace and revitalise current hospitals in the Province. Prioritization of the projects is done as per the Departmental Service Transformation Plan. • The following projectshave been prioritised in the allocation: • Mental Health Hospital; • Upington Hospital; • De Aar Hospital; • Prof ZK Matthews Hospital; • Kimberley Hospital; • Kuruman Hospital • Postmasburg Hospital • The Department of Roads and Public Works serves as the implementing agent on all infrastructure development projects;

. Financial Information • .

. Mental Health Hospital • .

. Upington Hospital • .

. De Aar Hospital • .

. Prof ZK Matthews • .

. Kimberley Hospital • .

. Kuruman Hospital • .

. Postmasburg Hospital • .

. Performance & Monitoring (DoH & Public Works) • . • Each project has the initial Project Implementation Plan to outline the activities and time frames; • The project deliverables are measured on quarterly basis; • The Project Implementation Plan is developed on annual basis but with quarterly targets for reviews; • Monthly financial reports are submitted to NDoH; • A representative of PDoH participate in the site meetings; • Monthly progress meetings between the implementing agent and the client take place; • The National Treasury Infrastructure Reporting Model and In Year Monitoring report are used to monitor expenditure; • Reports are also presented to the Project Management Forums.

. Co-ordination of the HRP Project • . • Prioritisation was done through the Service Transformation Plan • The following table presents the HRP projects implementation plan up to 2016/17 financial year:

. Co-ordination of HRP Project (cont) • .

. Performance of Contractors and Consultants • . • Contractors are unable to meet the monthly deliverables as per their set • programmes due to insufficient capacity in their companies; • Their respective under- performance subsequently leads to underspending on the • project; • Poor coordination between the Contractors/Consultants and implementing agent • leads to further delays on the project.

. Capacity to implement the Hospital Revitilisation Programme • . • The Dept of Public Works is responsible for the implementation of the • programme; • The Department of Health is only responsible for planning(development of • business case, project brief and supervision of designs), reporting and • monitoring of projects; • Due to limited capacity at Public Works, there is no proper monitoring on projects, • hence mental health hospital.

Conclusion • Projects are planned timeously, with the necessary inputs from all stakeholders; • Challenges are often experiences, with the service providers either not meeting their deadlines, or not being able to complete the project; • Remedial measures include: • Termination at the earliest confirmed inability to complete the contract; • Regular monitoring meetings are held, in order to assess progress; • Regular report-backs to management and recommendations on how to prepare for the take-over of the project, once completed; • Ensuring that there is value-for-money is attained. THANK YOU

Hospital Revitalisation Grant: 2010/11 Financial Year