SIYENZA MANJE PROGRAMME

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SIYENZA MANJE PROGRAMME
Capacity Building Lessons Learned Reuben
Matlala
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Mandate of the Development Bank of Southern Africa

• To promote economic development and growth, human
  resources development and institutional capacity
  building in the region
• To support sustainable development projects and
  programmes in the region
• Focus on economic, social and institutional
  infrastructure
• Optimise private sector participation

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Products and Services

• DBSA development support can be divided into the
  following categories
• Investments loans
• For infrastructure projects
• Technical assistance and other non-lending
  products
• For planning and capacity building related to
  specific projects
• Advisory services and a range of knowledge
  products
• Capacity building grants
• Offered through the Development Fund
• For general capacity needs of institutions

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Project Consolidate

• National Advisory Working Group identifies DBSAs
  role in project consolidate
• Presidential Lekgotla President asks chair of
  DBSA to provide 1 of many interventions to
  support capacity building at municipal level
• DBSA Development Fund Board approve a dedicated
  capacity building task force

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The Reinvention of the DBSA Development Fund

• Our original Mandate
• To support local governments institutional
  capacity by providing grant funding to enhance
  and improve performance
• The impact of our intervention
• Significant impact, exceeding expectations with
  notable outcomes being felt by many
  municipalities around the country
• The need for change
• The DBSA Development Fund is adapting its
  strategy and delivery mechanisms to provide
  support in unblocking recurring institutional
  constraints of municipal service delivery

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Challenges facing Municipalities

• A number of factors have been identified as
  constraints inhibiting service delivery
• Grant Funding alone does not necessarily result
  in success
• Effective project management results in
  successful capacity building initiatives
• Classroom training is not the most effective way
  to build capacity of municipal officials
• Lack of coordination between national departments
  results in duplication of resources
• Capacity constraints occur at all stages of
  implementation including preparation of MIG
  applications

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Effect on Municipalities

• The challenge of bridging the gap between skills
  shortages and service delivery
• High staff turnover
• Lack of skilled personnel
• Despite various government interventions
• Continued poor capacity in some areas resulting
  in poor implementation of infrastructure projects
• Poor absorption of grant funding
• Civil unrest

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A New approach to Development Funding

• The DBSA DF have reinvented their approach to
  Development Funding in response to the changing
  local government landscape
• 80/20 principle to apply to the recapitalisation
  of the DBSA Development Fund
• 80 Deployment Task Force
• 20 Grant Funding

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• The Development Bank of Southern Africa is
  currently assembling a task force of engineers
  and project managers, to be named Siyenza Manje,
  to contribute to operational and strategic
  capacity in distressed municipalities, and to
  accelerate the roll out of basic services
• Budget Speech 2006 by the Minister of Finance,
  Trevor A Manuel
• 15 February 2006

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Deployment Task Force

• The purpose of the task force
• Engage capable human resources in low-capacity
  municipalities
• To provide capacity in these municipalities in
  implementing infrastructure projects
• Hands on and practical capacity building
• Composition of the task force
• Project management
• Technical services
• Financial management / treasury services

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Performance Highlights

• The Siyenza Manje Programme has shown a
  significant impact in many municipalities
• 5-Year Local Govt Agenda has prioritized the
  following category of municipalities for support
• 136 PC municipalities
• 46 distressed District municipalities
• 21 urban and rural nodes
• Imbizo municipalities
• Realigned X-boundary municipalities
• Mentorship of Graduates by senior Engineers
• Local Govt Agenda identifies DBSA as a key role
  player in provision of hands on support to
  municipalities
• Necessary that the programme be upscaled, both in
  structure and content to consolidate current
  support and meet increasing demand

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Performance Highlights

• 158 experts deployed
• 79 YPs deployed
• 135 Municipalities currently supported
• 1579 (1051 MIG and 528 CAPEX) projects managed by
  deployees
• 261 projects completed
• 316 non technical initiatives managed by
  deployees
• R2.5 billion MIG Budget
• R1.9 billion MIG expenditure

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Performance Highlights

• 93 systems developed
• 165 policies developed
• 177 officials trained in financial related areas
• 131 officials trained on technical aspects
• R24 million approved grant funded projects
• R34 million disbursed from old portfolio

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Risks/Challenges
Risk/Challenge Level of risk Mitigation Measure
Deployee turn over H Review terms and conditions for employment, i.e. duration of contract, continuous development programme, deployment closer to home
Growth in demand for engineering and finance skills impacting on deployment H Facilitating an arrangement with SAICE to take over its deployment programme and suggesting ways to retain deployees
Staff vacancies and turn over impacting on sustainability H Roll out of young professionals programme
Poor or unavailable SCM policies in poor municipalities which affect implementation of grant funded projects H Assist municipalities to appoint Service Providers using DBSA procedures especially where we provide 100 funding.
Municipalities fail to fund the training of their officials in critical areas affecting Siyenza Manje implementation H Provide fully funded training to senior officials and political leadership through DBSA Vulindlela Academy in Siyenza Manje municipalities.
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What has changed?

• Shortage of Experts in the market a problem
• Demand for increased delivery of services
• Approached by non PC municipalities
• Proportion of YPs to increase to about 38 on
  up-scaling by March 2008
• The strategy in 2008/9 FY is to have 2 YPs for
  each senior Expert deployed
• Need to up scale SM project

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Objectives and Consequences of Upscaling

• Increased coverage of municipalities supported
  (demand side)
• Increased number and value of projects managed
  and implemented (current1345, projected 2540)
• Increased acceleration of service delivery and
  capacity building (5-Yr LGSA objectives)
• Need for improving program management, processes
  and reporting framework (systems, procedures,
  protocol etc)
• Increased demand for back office administration
  and management (program managers, support staff)
• Consequence
• Increased number of deployees, YPs and
  deployments (supply side)
• Increased number of YPs per senior Expert
  deployed (skills transfer and capacity building
  for sustainability)

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Rationale for Upscaling

• 71 SM municipality have adequate expert/YP
  deployed capacity
• Upscaling required in order to
• Meet increased demand for deployment/capacity
  support
• Consolidate support where we are stretched
• Deploy in 35 remaining PC municipalities
• Deploy in new non-PC municipalities with backlogs
• Deploy in non-PC water service authorities in
  line with the 5-Yr LGSA
• Additional resource needs for experts
  demonstrated below

Municipality Type Nos Technical Financial YPs Appren-tice YPs Total
Consolidate SM support 30 1 1 2 2 180
Project Consolidate 35 1 1 2 2 210
Water Service Authorities 46 1 0 1 0 92
New mun. with backlogs 30 1 1 2 120
602
PSPs to provide 1 Project Manager, 1 Engineer,
2 Technicians
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Rationale for Upscaling 2

• Ensure sustainable residual capacity in (YPs)
• Address Operations and maintenance problems in
  municipalities
• Improve municipal management and governance
• Which will result in DBSA
• Effectively spending the allocated 2007/8 budget

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Conceptual Deployment Model in Municipalities

• Deployment Model to Ensure Programme
  Sustainability

Experts (Engineers
Technologists)
3 Yrs
Initial assumption 1 YP per 1 Expert
Current assumption 2 YPs per 1 Expert

Graduates (YPs)

Technicians
3 Yrs


Graduate Technicians (YPs)

Artisans
3 Yrs




Apprentiship Learnership
Section 28 FET graduates
Universities
Univ Tech
High Schools
FETs
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Categories of Deployees, Roles and Numbers

• Category
  Function
  Current Future

Projects planning, coordination and management
Experts
118
324
Projects implementation and exp. learning
51
Grad Engineers PM Finance
10
Site supervision
100
Technicians
34
Grad Techs
100
Team supervision and exp. learning
1
Artisans
Operations and Maintenance
0
Apprentice
OM and Experiential Learning
0
190
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Programme Recruitment and Deployment Plan
Category Current Status Oct 07 Upscale Nov 07- Mar 08 Sub-Total Upscale Apr 08- Mar 09
Technical Experts 67 25 92 86
Financial Experts 51 17 68 78
Graduate YPs 45 55 100 151
Artisan YPs 0 50 50 140
Total 163 147 310 445
PSPs 0 30 30 0
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How are we planning to upscale

• Continued recruitment of individual experts and
  YPs for deployment (Meet increased demand)
• Outsourcing (Complementary strategy to meet
  increased demand)
• Roll out appropriate, structured training
  programmes for YPs (Ensure residual capacity)
• Pilot Artisans deployment programme (Sustainable
  strategy to address OM of infrastructure)
• Training of municipal officials and political
  leadership (Improve management and governance)

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Strategy to Accelerate Deployments

• Accelerate recruitment and deployment of Experts
  and YPs
• Increase number of Experts to 160 and YPs to 100
  by March 2008
• Deploy PSPs in 30 municipalities by March 2008

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Impact of Upscaling Strategy on Municipal
Sustainability

• Current proportion of YPs to senior Experts 29
• Initial strategy 1 YP 1 Expert

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Conclusion

• Significant progress has been made
• Local govt transformation is a process
• Better coordination of capacity building
  initiatives
• Evaluation of SM in progress
• Refinement on SM model continuing