Title: The EPWP and Conditional Grants in the 2006-07 Division of Revenue Bill 7 March 2006 Department of Public Works
1The EPWP and Conditional Grants in the 2006-07
Division of Revenue Bill7 March 2006Department
of Public Works
2Summary 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
3EPWP 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
4EPWP 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
5EPWP 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
6Progress 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
7Progress 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
8Progress 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.
9Progress 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.
10Role 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)
11Support 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
12Vukuphile 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
14Scaling 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
15Challenges 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
16Challenges 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
17Thank you for your attention