PRESENTATION TO PORTFOLIO COMMITTEE

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• PRESENTATION TO PORTFOLIO COMMITTEE
• STRATEGIC OVERVIEW
• 13 MARCH 2006

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DPW Core Business Areas

• Custodian of national governments fixed property
  assets
• Provide accommodation and facilities to national
  government
• Coordinate EPWP
• Regulate and transform the construction and
  property industries

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SONA and ASGI-SA

• Aspects of SONA and ASGI-SA for which DPW is
  directly responsible
• Scale up EPWP in infrastructure and social
  sectors
• Pool EPWP resources to ensure maximum impact
• Improve maintenance of public infrastructure
• Prioritise the construction industry as a growth
  industry

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• Other aspects of SONA and ASGI-SA relevant to
  DPW
• Improve efficiency, effectiveness and alacrity of
  service delivery
• Improve the capacity of the state to discharge
  its responsibilities
• Ensure that capital budgets are spent without
  rollovers
• Accelerate efforts to address poverty,
  underdevelopment, marginalisation
• Improving employment equity
• Address scarce skills issue (JIPSA)
• Expand SMME sector with emphasis on BBBEE
• Put in place programmes to develop womens skills
  and women in business
• Strengthen local government
• NEPAD

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DPW Responses to SONA and ASGI-SA

• DPW ASGI-SA initiatives
• Plan produced to scale up EPWP in roads sector,
  with dedicated funding, in discussion with
  National Treasury
• Working with DSD, Business Trust and Umsobomvu
  and provinces to scale up EPWP in social sector
• Plan produced to assist public bodies to plan
  larger projects with more impact
• Draft documents on possible national initiatives
  to improve maintenance across all three spheres
  developed with CIDB and CSIR, in discussion with
  National Treasury
• DPW has obtained increased maintenance budgets
  for its portfolio
• Document on positioning the construction industry
  as a growth industry in ASGI-SA developed with
  CIDB, now working with CIDB and DTI on an
  industrial strategy for the construction industry

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• Strategic DPW programmes aimed at improving
  service delivery
• Devolution of budgets, introduction of user
  charges and creation of trading entity
• DPW Leadership Way
• Zimisele Service Delivery Improvement Programme
• Re Kgabisa Tshwane programme
• Implementation of GIAMA
• Disposal programme
• Asset register improvement programme
• HR programmes to increase skills (interns, young
  graduates, scarce skills allowance)
• Anti-corruption and internal audit programme

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• DPW NEPAD initiatives
• Forum of SADC Public Works Departments
• Developmental peace keeping programme
• Involvement in DRC discussions
• DPW BBBEE initiatives
• Charters for the property and construction
  industries
• Realigned Emerging Contractor Development
  Programme (ECDP) and Contractor Incubator
  Programme (CIP)
• EPWP programmes (Vukuphile and venture
  learnerships)
• Disposal policy
• Nascent programme to assist black people to enter
  the property industry (through the disposal and
  leasing programmes)
• Release of state land for DLA land reform
  initiatives

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• DPW initiatives to develop womens skills
• Dubai women project management training programme
• Support for Women in Property, Women in
  Construction
• Strong targets set for womens participation in
  DPW BBBEE programmes
• DPW initiatives to improve the infrastructure
  delivery capacity of the country
• CIDB contractors and projects registers
• CIDB-driven construction-related procurement
  reform
• Infrastructure Delivery Improvement Programme
  (IDIP)
• Construction industry skills shortage study and
  related initiative to set up an ESDLA (skills
  development lead agency) to facilitate training
• Construction Week
• Construction Summit

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• Initiatives to strengthen local government
• DPW programme management and procurement support
  to Soccer World Cup
• Training of municipal officials under the EPWP
• DPW-facilitated Business Trust support programme
  to provinces and municipalities for the EPWP
• Most of above initiatives will be covered in
  detail in other presentations
• Key initiatives not covered in other
  presentations will be covered in this
  presentation
• Devolution of budgets and introduction of
  accommodation charges
• Zimisele

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Devolution of budgets and introduction of
accommodation charges

• Public Works White Paper said budgets would be
  devolved and user-charges introduced
• Motivations
• Increase transparency of budgets
• Introduce incentives for efficient use of
  immovable assets
• Improve funding for maintenance of immovable
  assets
• 2005 request from National Treasury to implement
  the Public Works White Paper
• Detailed implementation plan drawn up

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• The following DPW budgets will be devolved from 1
  April 2006
• Leases
• Maintenance
• Property rates
• Municipal services
• DPW will charge departments an accommodation
  charge, made up of
• An amount for leases (based on actual lease
  costs)
• An amount for rental of state-owned property
  (rand per square metre of type of property
  occupied)
• Departments will pay municipal services
  themselves, unless they specifically request DPW
  to do this for them, in which case DPW will
  charge a fee

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• Departments will be required to continue to use
  the services of DPW to enter into leases
• DPW will use the income from the accommodation
  charge to
• Pay leases on behalf of departments
• Carry out maintenance and refurbishments on
  state-owned buildings
• Build up a reserve for capital works
• DPW is creating a trading entity
• Trading entity will be established by 1 April
  2007
• Interim mechanism
• Draft business plan for trading entity
• Treasury has provided substantial funds to
  capitalise the trading entity over the MTEF

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Ministry
DG
COO
Corporate services
Ops
EPWP
RKT
Policy
Finance and proc.
Asset Man.
Regional offices
Current structure of DPW
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Ministry
Trading entity
DG
Head of TE
COO
Corporate services
Ops
EPWP
RKT
Policy
Asset Man.
Finance and proc.
Regional offices
New structure of DPW with TE
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Limited devolution of function

• Some Departments have become increasingly vocal
  in requesting to take the management of their
  properties from DPW, particularly SAPS, Defence,
  and Correctional Services, due to perceptions of
  poor service delivery from DPW
• These requests have been receiving a sympathetic
  hearing from National Treasury
• DPW has taken the following policy positions on
  this issue
• To implement a turn-around / service delivery
  improvement programme
• To offer to delegate custodial responsibilities
  for functional / specialised assets to one
  department

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• DPW, NT and SAPS have negotiated a gradual
  delegation of custodial responsibilities for
  managing police stations to SAPS, starting from 1
  April 2006
• Letters are currently being sent to Ministers of
  Finance, Public Service and Safety and Security
  in this regard
• Treasury agreement that SAPS will be a pilot, no
  devolution of functions to other departments in
  the interim

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Service delivery improvement programme - Zimisele

• Strategic response to reality and perceptions of
  poor service delivery by DPW
• Three-year programme in partnership with private
  sector
• Complementary to Batho Pele and the Leadership
  Way (practical implementation of these policies)
• Aim is to turn DPW around so that Departments use
  DPWs services because they want to not because
  they have to

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• Focus of Zimisele is on making the Department
  more business-like
• Setting service levels standards for services
  offered to clients
• Turn-around time, responsiveness
• Quality of service
• Introducing improved management methods
• Measuring and reporting on service output levels
  and costs of outputs
• More efficient business processes
• Improved productivity, turn-around times, better
  quality control
• Increased responsiveness
• Increased proactiveness
• Instilling a culture of continuous improvement

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• See slides from Zimisele roadshow

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Conclusions

• Devolution of budgets and creation of trading
  entity will fundamentally change the department
  in the medium-term
• Devolution of functions is a major risk facing
  DPW
• DPWs future role depends on the success of
  Zimisele and the other service delivery
  improvement initiatives
• Strategic plan is currently at printers, will be
  tabled by 21 March as required