DPW STRATEGIC PLAN AND BUDGET PRESENTATION TO THE PORTFOLIO COMMITTEE 20 APRIL 2010

1. DPW STRATEGIC PLAN AND BUDGETPRESENTATION TO THEPORTFOLIO COMMITTEE20 APRIL 2010 Strategic Management Unit 20 April 2010 1

2. Table of Contents • Table of Contents • Minister’s Foreword/ Priorities • The Medium-Term Strategic Framework (MTSF) • DPW Strategic Goals • Outcomes • DPW Programme structure • Public Works Branches • Key Branch initiatives • Public Entities reporting to Public Works • Budget Strategic Management Unit 20 April 2010 2

3. Minister’s Overview In terms of the medium-term period; the Minister has directed of the department’s senior managers to: • Review, reshape and rejuvenate; • implement the New Growth Path and • Focus on the Core. • Review, reshape and rejuvenate by ensuring: • Finalize the structure of the department – to support service delivery. • Service the core functions optimally. • Implement the core competency model and develop skilled and capable personnel. • Create centres of excellence – property management, construction management and maintenance management. • Build IT capability – ensure integration of systems – effective management of immovable assets. • Effective & efficient financial management – improve revenue collection & debt management. • CBE; ASA; IDT & CIDB – improve delivery capability. • Effective financial management – financial processes; internal controls; revenue collection and debt management. Strategic Management Unit 20 April 2010 3

4. Minister’s Overview • Pillars of the New Growth Path • Renew commitment on BEE – monitoring procurement spend on BEE and through programme implementation. • Strictly adhere to 30 days payment of invoices. • Skills development across the built environment – role of CIDB and CBE & external partnerships. • Transformation of both property & construction sectors – competitive; raise productivity and ensure broad-based inclusion. • Increase uptake of young people in built environment and in other fields. • Increase registration of professionals and support to emerging contractors. • Role of IDT in delivery of social infrastructure – enhance focus on rural development, poverty eradication; education and health infrastructure; job creation. • EPWP- a key response to the economic crisis; poverty alleviation and income inequality through work opportunities. Strategic Management Unit 20 April 2010 4

5. Minister’s Overview • EPWP continued:4,5m job opportunities; R5.2bn MTEF incentive allocation for various projects and R2,5bn to support labour-intensive projects in the social and environmental sectors. Beneficiary of Green Strategy provided in IPAP II. • Agrement: ensure use of innovative and no-standard products through technical assessments. • Development of Green Strategy for the built environment and related codes for public buildings. • Energy efficiency for public buildings on course. • Focusing on the Core • Support the developmental state objectives and policy priorities. • Use immovable asset footprint – rehabilitate buildings to balance ownership/leasehold –finalize disposal policy. • Refurbishment of Land Ports of entry; dolomite projects; accessibility of public buildings • Review service delivery models Strategic Management Unit 20 April 2010 5

6. Minister’s Overview • Implement the PMTE – realignment of the immovable asset management business to promote and improve service delivery and strategic planning. Focus on • customer service – SLAs • Operational efficiencies: debtor’s book and revenue management. • Implement accrual system • Finalize new business model and business case. • Improve on risk management and • Deal with fraud and corruption decisively ! Strategic Management Unit 20 April 2010 6

7. Strategic Context: MTSF Priorities The following priorities were selected by Public Works to inform planning: • Speeding up growth and transforming the economy to create decent work and sustainable livelihoods; • Massive programme to build social and economic infrastructure; • Comprehensive rural development strategy linked to land and agrarian reform and food security. • Strengthening our skills and human resource base. • Intensify the fight against crime and corruption; • Pursuing African advancement and enhanced international cooperation; • Sustainable resource management and use and • Building a developmental state, including improvement of public services and strengthening democratic institutions 7

8. Strategic Context: DPW Strategic Goals The Department of Public Works has six (6) goals: • Provide strategic leadership in effective and efficient immovable asset management and in the delivery of infrastructure. • Promote an enabling environment for the creation of both short and sustainable work opportunities so as to contribute to the national goal of job creation and poverty alleviation. • Contribute to the building of a developmental state and a comprehensive rural development framework through state assets. • Ensure transformation and regulation of the construction and property industries to ensure economic growth and development. • Ensure effective corporate governance and sound resource management. • Ensure improved service delivery in all departmental programmes to meet client expectations and leverage stakeholder relations. 8

9. Strategic Context: Outcomes The following four (4) outcomes were selected from twelve outcomes, approved by Cabinet in the January 2010 Lekgotla to be used by government to track the impact of programmes: • Create decent employment through inclusive economic growth; • Create efficient, competitive and responsive infrastructure network; • Efficient and effective development-oriented Public Service and an empowered fair and inclusive citizenship and • Skilled and capable workforce to support an inclusive growth path. 9

10. DPW Programme Structure • Programme 1: Administration • Programme 2: Immovable Asset Investment Management • Programme 3: Expanded Public Works Programme • Programme 4: Construction and Property Policy Regulation • Programme 5: Auxiliary and Associate Services. NB: This is a new programme structure, approved by NT. All the other branches (see next slide), with the exception of Corporate Services and Finance and Supply Chain Mgmt, fall under Programme 2. The Public entities reporting to Public Works also fall under Programme 2. Strategic Management Unit 20 April 2010 10

11. Public Works Branches • The department has eight branches, located under five Programmes: • Asset Investment Management • Operations management • Special projects • Inner-city Regeneration, Project Management and Professional Services • Expanded Public Works Programme • Construction and Property Policy Regulation • Finance and Supply Chain Management • Corporate Services Strategic Management Unit 20 April 2010 11

12. KeyBranch initiatives • Asset Investment Management Branch • Enhancement of Asset Register • Compilation of SLAs and SDS. • Facilitation of completion of User Asset Management Plans for user departments. • Compilation of Custodian Asset Management Plans. • Implementation Programmes: planned maintenance; capital works and leasing portfolio. • Implementation of GIAMA: Property Performance Standards. • Energy and water efficiency • Rehabilitation of buildings: unused and under-utilised. • Accessibility of public buildings to people with disabilities. • Valuations and NIMS. Strategic Management Unit 09 March 2010 12

13. KeyBranch initiatives • Operations Management • Operations Management funds the implementation of acquisition, construction and maintenanceof infrastructure for the Department of Public Works and client departments. The distribution of funds is governed by the compensation and administration of the unit. • The Department of Public Works has eleven (11) regional offices falling under this sub-programme. • Inner City Regeneration, Project Management & Prof. Services Branch • Development of inner city precincts (Marabastad, Salvokop, Church Sq. & Paul Kruger North) with City of Tshwane as context for Head offices of the RKTP, • Feasibility studies and confirmation of additional new Head Office projects in Tshwane, Strategic Management Unit 20 April 2010 13

14. KeyBranch initiatives • Freedom Park Administration Building, refurbishment of HG de Witt building, • Feasibility studies to identify & inform the rollout of the program to other towns. • Development as Centre of Expertise for DPW project managers (updating of norms & standards, processes, toolkit), • Construction of 598 projects: capital (R337m), maintenance (R142m) & recoverable projects (R1b), • SA embassy Nigeria, Tzaneen prison, Waterkloof runway, RAMP projects. • Updating of technical norms & standards for design & construction of projects, • Dam safety monitoring, • Site identification & clearance for the development of projects, • Development of Green Building and sustainability principles • Dolomite risk management to inform planning and remedy sinkholes. Strategic Management Unit 20 April 2010 14 Strategic Management Unit 09 March 2010

15. KeyBranch initiatives Special Projects Branch • Land Ports of Entry: Golela; Skilpadhek; Vioolsdrift and Lebombo/Ressano • Pan - African Parliament – DPW and National Treasury working on an alternative funding formula for PAP. • 2010 FIFA World Cup – redevelopment of border posts infrastructure. Strategic Management Unit 20 April 2010 15

16. KeyBranch initiatives • Expanded Public Works Programme Branch • 4,5m multi-year targets in the various sectors, namely: social; infrastructure; economic; environmental and culture and non-state sector. • Implement incentive grant • EPWP to be implemented in the non-state sector) for the first time – strategic partnership with NGOs/CBOS/NPOs. • Implement incentive scheme in the environment and culture and non-state sector and Community Work Programme • Working with the Presidency, enhance accountability arrangements in the three spheres of government to meet targets Community Work Programme. Strategic Management Unit 20 April 2010 16

17. EPWP Targets per Sector The infrastructure sector, has the biggest MTEF allocation from NT: R846bn- opportunities exist for the EPWP to upscale further. Strategic Management Unit 20 April 2010 17

18. EPWP Targets per sphere of Government Strategic Management Unit 20 April 2010 18

19. KeyBranch initiatives • Construction and Property Policy Regulation Branch • Property and construction policy regulation • Implementation of construction and property Charters. • National Contractor development programme (NCDP): Contractor Incubator programme • Property Incubator Programme • “Extension” of GIAMA principles to local government. • Policy development: asset management and other • Expropriation Act • State land under DPW’s custodianship - Land Affairs Board Strategic Management Unit 20 April 2010 19

20. Key Branch initiatives Finance and Supply Chain Branch Projects: • Ensure equitable and effective allocation of resources to all programmes. • Action plan for GAAP compliance on PMTE. • Ensure: • improved revenue collection and debtors management and PMTE management. • Improved internal controls and payment of invoices (30 days). • Improved supply chain management. • Improved management of movable assets. Strategic Management Unit 20 April 2010 20

21. KeyBranch initiatives Corporate Services Branch Projects: • Enabling IT Systems • Human Resource Management Plan • Compliance with NIA requirements. • Implement new Disability Strategy. • Critical skills through international bilaterals • Provide legal expertise and advice. Strategic Management Unit 20 April 2010 21

22. Key branch initiatives • The strategic management unit: responsible for: • Strategic Planning • development of the strategic plan of the department. • Alignment of the country’s National Plan from the National Planning Commission (NPC) in the Presidency to Public Works Strategic Plan. • Business planning: head office and regional offices. • Coordination of cluster process – ensure alignment of Cabinet cluster programme to Public Works. • Risk Management – implementation of risk management processes. • Knowledge management: implementation of knowledge management strategy in a developmental state. • Development economics: analysis of socio-economic reports and aims to undertake socio-economic impact studies, to assess the impact of Public Works programmes. 22

23. Key branch initiatives • Monitoring and evaluation unit: responsible for: • monitoring and evaluating the performance of Public Works programmes. • Submit departmental performance reports to the M & E unit in the Presidency. • Consolidation of DPW performance information for Auditor General and National Treasury. • Intergovernmental Relations: responsible for the coordination of national Public Works processes and programmes with the othe two spheres of government. 23

24. Public Entities reporting to Public Works • The Independent Development Trust (IDT) • The Construction Industry Development Board (CIDB) • Council for Built Environment (CBE) • Agrement South Africa (ASA) Some of the entities have presented their strategic plans to Parliament. Strategic Management Unit 20 April 2010 24

25. Budget Allocation over the MTEF Period (2010/11 to 2012/13)20 April 2010Presented by Cathy MotsisiChief Financial Officer 25

26. Allocation Letter for new MTEF 26

27. Breakdown of the Additional funding & Adjustments to Baseline 27

28. Budget Per Economic Classification Current budget as a % of total budget = Compensation = 16,73%,17,39%,15,5% ( No funds for OSD = R24 Mil) Goods & Services= 9,9%, 8,8%, 9,16% Transfers & Subsidies: EPWP = 1,01 billion Property Rates = 1,09 billion 28

29. Budget Per Programme 29

30. Earmarked Funds 30

31. Conditional Grants & Specifically & Exclusive Appropriation 31

32. Breakdown of the Infrastructure Budget 32

33. Breakdown of the “Land Ports of Entry” 33

34. Breakdown of the “Dolomite Risk Management” 34

35. PMTE REVENUE & BUDGET 35

36. Breakdown of Client Infrastructure Budget 36

37. Thank you