Overview of SANERI Performance 20067

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Overview of SANERIPerformance 2006/7
KM Nassiep Chief Executive Officer
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Background

• SANERI Fully Operationalised in 2006/7
• CEO Appointed in August 2006
• Budget Allocation of R40 million received from
  DST
• Corporate Plan for 2006/7 approved by Board of
  Directors
• SANERI KPIs
• Administration of the Institute
• Human Capital Development Programme
• RESE Hub Operational
• Research Chairs Established
• Bursary Support Programme Established
• Energy RD Agenda
• Strategic Projects Funded
• Cooperative Research
• Governance
• Stakeholder Buy-in and Brand Development

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Administration of the Institute

• Focus on total spend of the institute as well as
  percentage overheads
• Important for government agencies to disburse all
  funding made available
• Underspending affects future budget allocation
  uncommitted funds are transferred back at end of
  financial year to DST and has tax implications
• Overspending not permitted period
• DST has prescribed guidelines for limits on
  overheads that can be claimed by the institute
• 2006/7 Performance
• Percentage Overheads as percentage of Total Spend
• Target is less than 20
• Achieved is 8
• Percentage Funds Disbursed as percentage of Total
  Spend
• Target is greater than 90 spent
• Achieved is 96
• Staffing of the Institute
• Target is greater than 60 of approved posts
  filled
• Achieved is 70 (permanent and contract)

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Human Capital Development Programme

• Renewable Energy and Sustainable Energy Hub and
  Spoke Model
• Established at the University of Stellenbosch and
  Sustainability Institute (Lynedoch)
• Intention is to undertake research at the centre,
  using postgraduate students from different
  universities and spokes of the wheel.
• In 2006/7, the hub was established with a
  management board overseeing activities
• The coursework for the Masters Degree programme
  was developed
• The bursaries available were all allocated, to
  students from different parts of the countries,
  for studies consistent with the objectives of the
  centre and SANERI
• RESE Hub
• Target was an operational centre at the
  university
• Achieved this target with commendable results
  obtained already

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Chairs of Energy Research Programme

• CoER Programme established at SANERI in support
  of Governments SARCHI Programme, to develop 210
  chairs by 2010
• SANERI has set target of 8 Full Research Chairs
  and 8 Associate Chairs by 2008/9
• Senior Chairs are awarded to Full Professors at
  Universities, where the individual has national
  and/or international competence in a given field
• Associate Chairs are awarded to doctors and
  associate professors at essentially Historically
  Disadvantaged Institutions
• An amount of R2 million is available for senior
  chairs
• An amount of R1.5 million is available to
  associate chair
• In 2006/7, two full chairs were awarded
• Clean Coal, to Wits University (with University
  of the North West as partners)
• Biofuels and Alternative Liquid Fuels, to
  Stellenbosch University
• In 2006/7, one Associate Chair was awarded
• Biofuels and Alternative Liquid Fuels, to
  University of the North West
• CoER Programme KPIs
• Target was 3 MoUs completed with universities
• Achieved this target, with only funding available
  limiting the number

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Bursary Support Programme

• A call for applications for bursaries was issued
  in 2006/7
• An amount of R1.5 million made available for
  bursaries
• Bursaries are intended for postgraduate studies
  in thematic areas defined by SANERI
• Preference would be given to Black and women
  applicants, in line with gender and equity
  targets of Government
• A total of 25 bursaries were awarded
• 15 bursaries awarded to PhD students
• 10 bursaries awarded to Masters Students
• Bursary Support Programme KPIs
• Target is 90 of funds available committed to
  bursaries
• Achieved 100 spend on funds available

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Energy RD Agenda

• The Energy RD Agenda focuses on the human
  capital development programme as well as the
  development of strategic projects that support
  national goals
• A national call for proposals was issued in
  2006/7, inviting proposals from all credible
  researchers
• Proposals totalling R4,5 billion were received
• These were whittled down to an eventual 40
  projects, totalling some R49 million
• Funding limitations prevented the award of
  additional grants to project developers
• Contract Research KPIs
• Target is 5 strategic projects developed and
  contracted
• Achieved 40 projects developed and contracted

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Energy RD Agenda

• Cooperative Research Activities
• Part of SANERIs brief is to develop
  collaborative projects with national and
  international institutions
• In this way, funds available can be maximised
  through the leveraging of additional funds
• Lots of expressions of interest in collaboration
  were received in 2006/7
• Due to limited resources (human capital and
  funds), only 4 areas of partnership could be
  explored
• The following institutions and stakeholders were
  engaged with collaboration in mind
• Fraunhofer Institutions Transport Division
  (Dresden, Germany)
• Brandenburg Technical University (Cottbus,
  Germany)
• Imperial College of London
• City of Johannesburgs Transport Planning
  Division
• University of Edinburgh
• MoUs were developed, but the main focus was on
  operationalising the agreement
• Fraunhofer Institute on matters pertaining to
  energy efficient mass transport
• Brandenburg Technical University on matters
  pertaining to studies on power plant systems
• Cooperative Research KPIs
• Target is 1 MoU developed with partner
  institution
• Achieved 2 MoUs developed and operationalised

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Energy RD Agenda

• Governance
• An essential element of governance for SANERI is
  advisory support from nationally recognised
  experts in the energy field
• The Draft Energy RD Strategy calls for the
  establishment of the Energy RD Innovation and
  Advisory Committee (ERDIAC)
• SANERI tasked with establishment of ERDIAC
• Ministerial Directive establishing SANERI called
  for Ministerial approval of ERDIAC members,
  following advertisement in the Government Gazette
• Poor response to advert, followed by adverts in
  national media and letters to institutions in SA
• As a result of poor response to date and the need
  to follow the prescripts of the Ministerial
  Directive, the ERDIAC committee could not be
  established in the financial year
• Governance KPIs
• Target is ERDIAC establishment and operational
• Partially Achieved committee members identified
  but not ratified

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Stakeholder Buy-in and Brand Development

• An important contributor to the sustainability of
  SANERI is the access to government funding
• Both the Departments of Minerals and Energy and
  Science and Technology are important stakeholders
  from a financial and business strategy
  perspective
• Presentations on the Corporate Plan for 2006/7
  were made to Ministers of both Ministries
• Support obtained for the Corporate Plan and
  strategy adopted by SANERI
• An important element of developing the brand
  associated with SANERI is its corporate identity
• A national competition was launched in 2006/7 to
  design a logo for the company
• The winner was a Mr Tshepo Choma who designed the
  logo on this presentation
• The company was launched in February 2007, to
  coincide with the IEA workshop held in
  Johannesburg at the same time
• Stakeholder and Brand KPIs
• Target is company launched
• Achieved company launch in Feb 2007
• Target is support from DME and DST for overall
  allocation
• Achieved Ministerial support for the Corporate
  Plan
• Target is development of a logo for the company
• Achieved the target, as well as development of
  Corporate Identity Manual elements

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Conclusions

• Overall performance against objectives of 95.8
• Board of Directors and Auditor General approved
  financials for the year, with clean audit report
  received
• Areas where target was not fully achieved
  include
• ERDIAC establishment
• Human Capital baseline study completed
• All in all, an excellent first year of operation
  with commendable effort from senior management of
  SANERI, ably supported by CEF support services

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Thank You