BUILDING OF CLASSROOMS AND THE HOSPITAL REVITALISATION PROGRAMME

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BUILDING OF CLASSROOMS AND THE HOSPITAL
REVITALISATION PROGRAMME

• Presentation to JBC
• 23 May 2005

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Introduction (1)

• Funding for education and health infrastructure
  programmes is from
• Provincial equitable shares directly to provinces
• Conditional grants directly to provinces or
  through DOE or DOH
• National DPW is not involved in this funding
• Provincial Education and Health Departments
  budget for, and plan infrastructure expenditure
• Provincial DPWs implement the plans set by the
  Provincial Education and Health Departments

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Introduction (2)

• In some provinces, Service Level Agreements (SLA)
  are in place between PDPW, PDOE and PDOH
• In Gauteng, Education has its own works section
  (changing)
• In some provinces, PDOE and PDOH use other
  implementation agents such as the IDT

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Introduction (3)

• Funding between provincial DOE, DOH and DPW is
  arranged either by
• Cost recovery or
• Transfer of budgets
• Accounting officers of provincial DOE, DOH and
  DPW are accountable to the provincial
  legislatures for this expenditure
• Accounting officer of national DPW is not
  accountable for this expenditure

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Introduction (4)

• National Treasury released interim figures on 17
  May indicating under-expenditure on provincial
  capital budgets for 2004-2005
• Capital budgets includes other items in addition
  to infrastructure
• National Treasury still to release final
  provincial infrastructure expenditure figures for
  2004-2005

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Budgets and expenditure for classrooms (1)

• For education infrastructure, over the past two
  financial years
• Up to 40 expenditure happens in the 4th quarter
• Low expenditure at end of December not a true
  reflection of final expenditure
• In 03/04 financial year, expenditure in Dec was
  60 , but jumped to 92 by end of April
• Expenditure trends illustrated in the next two
  slides

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(No Transcript)
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Gauteng example
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Budgets and expenditure for classrooms (2)

• Inferences from the financial data
• Under-spending is not necessarily the fundamental
  problem, although the uneven rate of spending is
  of concern
• Spending the budget allocation does not
  necessarily mean no children under trees there
  are other causes which contribute to this problem

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Budgets and expenditure for classrooms (3)

• Planning for classrooms complicated by
• Migration of learners occurs between
• Provinces, and
• Schools, within provinces
• Migration leads to late signals of demand
• Overall we have stock hence mergers and even
  closures of schools

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Problems with delivery of classrooms (1)

• Lack of skills in Departments
• Not enough communication between DOE and DPW at
  provincial level
• Insufficient joint planning
• Lack of clear SLAs defining roles and
  responsibilities
• Inadequate business processes at all stages of
  the supply chain cycle

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Problems with delivery of classrooms (2)

• Consequences of delivery problems
• Late submission of plans by provincial DOE to
  provincial DPW
• Delays in tendering processes in DPW
• Late payment of contractors by either DPW or DOE
• Inadequate management of contractors by DPW

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National improvement initiatives (1)

• Joint task team of national DOE and DPW
  established to improve provincial education
  infrastructure delivery
• Established by the Ministers and DGs
• Joint Task Team has produced action plan to
  address problems

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National improvement initiatives (2)

• Infrastructure Delivery Improvement Programme
  (IDIP)
• Coordinated by National Treasury (NT)
• Implementation supported by CIDB and DBSA
• National steering committee with NT, DPW, DOH and
  DOE
• Generic toolkit for managing infrastructure
  delivery completed in October 2004
• Pilot phase in selected provincial DOE and DOH
  completed December 2004
• Now being rolled out to all provincial DOE, DOH
  and DPW, to be completed by December 2006
• Involves deployment of technical teams to
  provinces to introduce improved delivery
  management processes (the toolkit) and train
  staff on improved processes

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National improvement initiatives (3)

• IDIP aims to improve
• Planning for infrastructure programmes by DOE and
  DOH
• Definition of roles and responsibilities of DPW,
  DOE and DOH
• Tendering processes and contract documentation
  used by DPW
• Management of contractors by DPW
• Speed of delivery (at all stages of the supply
  chain)
• Quality of work by contractors

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National improvement initiatives (4)

• Other work of the Joint Task Team
• Improve maintenance and facilities management at
  schools (DOE working with CSIR on national
  policy, to be completed by December 2005)
• Put in place modernised national standard designs
  and norms (DPW and DOE working with CSIR, to be
  completed by November 2005)
• Ensure that the provinces which still have
  children under trees address this issue by March
  2006, by reprioritising budgets

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Conclusions

• IDIP will address both health and education
  infrastructure planning and delivery problems
• Success relies on participation by provincial
  departments
• National DPW working with national DOE to address
  delivery problems at provincial level, through
  joint task team
• DPW to take similar approach with national DOH