The EPWP and Conditional Grants in the 2006-07 Division of Revenue Bill 7 March 2006 Department of Public Works - PowerPoint PPT Presentation

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The EPWP and Conditional Grants in the 2006-07 Division of Revenue Bill 7 March 2006 Department of Public Works

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Title: The EPWP and Conditional Grants in the 2006-07 Division of Revenue Bill 7 March 2006 Department of Public Works


1
The EPWP and Conditional Grants in the 2006-07
Division of Revenue Bill7 March 2006Department
of Public Works
2
Summary of Presentation
  • EPWP-related conditional grants in the Bill
  • Provincial Infrastructure Grant
  • Municipal Infrastructure Grant
  • National Electrification Programme
  • Progress to date
  • EPWP Outputs
  • Support Initiatives
  • New Initiatives
  • Challenges
  • Reporting
  • Use of EPWP Guidelines

3
EPWP Conditional Grants (1)
  • Provincial Infrastructure Grant (PIG)
  • Measurable outputs
  • Number of job opportunities created and the
    average length of employment for labour intensive
    projects
  • Number of persons participating in the training
    programs under the EPWP
  • Condition
  • Low-volume roads and stormwater projects should
    be implemented in compliance the EPWP Tender and
    Design Guidelines
  • MTEF allocations
  • 06-07 4,118 million
  • 07-08 5,324 million
  • 08-09 5,697 million
  • Monitoring
  • Specific reports will be submitted by the
    provinces on progress with the implementation of
    EPWP projects

4
EPWP Conditional Grants (2)
  • Municipal Infrastructure Grant (MIG)
  • Measurable outputs
  • Number of jobs created using expanded public
    works guidelines (for above outputs)
  • Condition
  • Municipalities must adhere to the
    labour-intensive construction methods in terms of
    the EPWP Tender and Design Guidelines
  • MTEF allocations
  • 06-07 6,265 million
  • 07-08 7,148 million
  • 08-09 8,053 million
  • Monitoring
  • Each sector national or provincial department
    will be expected to fulfill monitoring role

5
EPWP Conditional Grants (3)
  • National Electrification Programme (NEP)
  • Measurable outputs
  • Implementation of labour-intensive methods on
    electrification projects and the number of jobs
    created
  • Condition
  • Adhere to the labour-intensive construction
    methods in terms of the EPWP Guidelines for
    activities such as trenching, planting of poles
    etc.
  • MTEF allocations
  • 06-07 391 million
  • 07-08 406 million
  • 08-09 457 million
  • Monitoring
  • Monthly reports to National Treasury

6
Progress 04-05 (PIG)
Indicator Progress
Number of EPWP projects being implemented or completed 1914
Expenditure on EPWP projects R 2.4 billion
Gross number of work opportunities 158 277
Net number of work opportunities 109 712
Person-years of work created 52 891
Average daily wage R 55.12
Total wages paid to workers R671 million
Percentages Women/ Youth/ Disabled 35/ 39/ 0.4
Expenditure on EPWP projects exceeded 1/3 of
PIG, which was EPWP target
7
Progress 05-06 1st qtr (PIG)
Indicator Progress
Number of EPWP projects being implemented or completed 403
Expenditure on EPWP projects R 256 million
Gross number of work opportunities 43 762
Net number of work opportunities 42 574
Person-years of work created 6 819
Average daily Wage R 55.12
Total wages paid to workers R69.9 million
Percentages Women/ Youth/ Disabled 70/ 27/ 0.1
8
Progress EPWP from MIG
Status Number of EPWP Projects Value (R millions)
Registered 65 234
Design Tender 52 401
Construction 61 472
Completed 39 43
Totals 207 1,152
Source MIG MIS
Reports reflects only limited share of value of
MIG projects being reported as labour-intensive
EPWP projects. Target to increase to 33 of
value. EPWP data often not reported or only
partially completed on MIG MIS, making EPWP
reporting difficult for MIG.
9
Progress 05-06 1st qtr (NEP)
Indicator Progress
Number of EPWP projects being implemented or completed 22
Expenditure on EPWP projects R 13.5 million
Net number of work opportunities 391
Person-years of work created 37
Average daily Wage R 50
Total wages paid to workers R390 000
Percentages Women/ Youth/ Disabled 43/ 49/ 1.3
EPWP condition is new, from 05-06 financial
year. EPWP conditions need to be introduced in
planning stages of projects, hence more EPWP
electrification projects will start this year.
10
Role of DPW
  • DPW does not approve any projects or transfer any
    funds for EPWP projects
  • Monitoring and evaluation
  • Collects data from implementing bodies on
    criteria such as numbers of jobs, training
    provided, participation of women and youth
  • Produces quarterly EPWP progress reports
    (available on website (www.epwp.gov.za)
  • Carrying out evaluation studies on samples of
    EPWP projects
  • Support to implementing bodies
  • Training of contractors and engineers in
    management of labour-intensive projects and
    design of infrastructure for labour-intensive
    construction
  • National training initiatives with DoL and CETA,
    in which all implementing bodies can participate
  • Training of provincial and municipal officials
  • Training of emerging contractors to carry out
    labour-intensive projects for implementing bodies
  • Production of technical guidelines for design and
    management of labour-intensive projects
  • Documentation and promotion of good practices (eg
    Gundo Lashu, Zibambele)

11
Support Initiatives EPWP Guidelines
  • Condition on all the grants to use the guidelines
    in order to make projects part of EPWP
  • Training to municipal and provincial officials
    provided (over 1000 officials trained through LG
    SETA-CETA programme)
  • Support with using guidelines available through
    National and Provincial EPWP Units
  • Promoting compliance
  • National Transferring Officers can query why
    projects are not being reported on in terms of
    EPWP
  • Auditor General will audit provinces and
    municipalities who are ignoring EPWP conditions
    in DORA

12
Vukuphile programme
  • Programme developed with the Construction SETA to
    build capacity among individuals and emerging
    contractors to implement EPWP projects
  • Implemented as a partnership with provinces and
    municipalities, which allocate projects to the
    learners to implement so that they can gain
    practical experience
  • Partnership with ABSA to ensure access to credit
    for emerging contractors
  • IDT and DOL ensure that all workers receive
    training
  • Target to implement 1000 contractor and 2000 site
    supervisor learnerships (funding secured for 1500
    learnerships, application for another 1500
    learnerships with NSF)

13
  • Currently 290 contractors and 580 supervisors in
    training
  • 39 provincial departments and municipalities have
    signed MOUs for 2175 learnerships
  • DPW does overall programme management and
    administration to minimise additional work for
    public bodies
  • DPW also provides mentors for learner contractors
  • DPW also does overall evaluation of programme to
    ensure that learners are developing into
    independent contractors
  • Vukuphile programme now established in every
    province

14
Scaling up the EPWP through the PIG
  • Proposal developed together with Department of
    Transport to scale up the EPWP under ASGI-SA
  • Proposal for R4.5 billion initiative over 3 year
    period to focus on labour-intensive road
    construction and maintenance
  • Builds on good overall performance of roads
    sector and additional funds required especially
    for access roads
  • Proposed that allocations should made through the
    PIG, but specifically allocated to
    labour-intensive roads programmes
  • Anticipated outputs
  • Additional long-term jobs in road maintenance
    60 000
  • Target number of additional short-term employment
    opportunities in road construction 100 000
  • Number of km of additional km of roads to be
    maintained 45 000 km
  • Number of km of roads to be constructed 3 000 km

15
Challenges Reporting
  • Provinces are reporting
  • All reporting for EPWP is based on project level
    data, no aggregated data accepted, but not
    sufficiently detailed information available on
    the MIG MIS
  • Obtaining reports directly from all 284
    municipalities difficult, danger of overburdening
    municipalities with reporting requirements
  • EPWP Unit now obtaining direct reports from
  • Municipalities participating in Vukuphile
  • Cities in SA Cities Network
  • Large district and local municipalities

16
Challenges Use of EPWP Guidelines
  • Many public bodies still reluctant to use
    labour-intensive methods as specified in the EPWP
    Guidelines
  • If EPWP Guidelines are not used, projects often
    not as labour- intensive as they could be (small
    increases the use of local labour)
  • Guidelines also specify training entitlements for
    workers and if not used in tender documentation,
    accessing training becomes more difficult
  • Contractors have not been sufficiently encouraged
    to meet the training requirements through EPWP
    tenders from public bodies
  • Increased auditing of compliance with DORA
    conditions required to raise awareness of
    importance of compliance

17
Thank you for your attention
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