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Expanded Public Works Programme (EPWP) Phase 3 Presentation to the Portfolio Committee on Public Works Tuesday, 05 March 2014

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Title: EPWP Phase 3 Presentation JANUARY 2014 Author: Lindiwe Nkuna Last modified by: Asanda Created Date: 1/28/2014 2:32:30 PM Document presentation format – PowerPoint PPT presentation

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Title: Expanded Public Works Programme (EPWP) Phase 3 Presentation to the Portfolio Committee on Public Works Tuesday, 05 March 2014


1
Expanded Public Works Programme
(EPWP) Phase 3 Presentation to the Portfolio
Committee on Public Works Tuesday, 05 March 2014
2
Outline
  • BACKGROUND OF EPWP
  • Origin of EPWP
  • EPWP Phase 1 (2004 2009)
  • EPWP Phase 2 (2009 2014)
  • South Africa a Global Innovator in Public
    Employment Programmes (PEPs)
  • Key Lessons from EPWP Phases 1 2
  • The Trilemma Facing EPWP
  • DESIGN OF EPWP PHASE 3
  • Policy Context for EPWP Phase 3
  • Paradigm Shifts in EPWP (Phase 1 Phase 3)

3
Outline continued
  • EPWP PHASE 3
  • Training and Graduation in EPWP Phase 3
  • Convergence and Synergies
  • EPWP Phase 3 Employment Targets
  • Focus of EPWP Phase 3
  • Institutional Arrangements for EPWP Phase 3
  • Key Changes in EPWP Phase 3

4
BACKGROUND OF EPWP
5
Origin of EPWP
  • The Reconstruction and Development Programme
    (RDP) (1994) called for a coordinated national
    public works programme to provide much needed
    infrastructure, to repair environmental damage,
    and to link back intothe industrial and
    agricultural base, coordinated by a national
    coordinating agency located in the implementing
    office of the RDP.
  • The idea of a national coordinating agency got
    side-lined with the closing of the RDP Office in
    1996. Governments focus shifted to rapidly
    creating formal sector employment through
    macroeconomic-facilitated growth (GEAR 1996
    envisaged 1 million new formal, largely private
    sector jobs over 5 years).
  • Nonetheless, there were important early PEP
    initiatives led by the Department of Public Works
    (DPW) (labour intensity in construction), the
    Department of Water Affairs (Working for Water
    launched 1995), and some provincial roads
    departments (notably KwaZuluNatal (KZN) with
    household-based maintenance of allocated
    stretches of rural roads).
  • Notwithstanding sustained Gross Domestic Product
    (GDP) growth touching 5 in the first decade
    after 1994, structural poverty, inequality and
    unemployment remained stubbornly high (the latter
    never coming under 20).

6
EPWP Phase 1 (2004-2009)
  • In this context, following the 2003 Growth and
    Development Summit, Government agreed on a
    massification of the public works programme
    EPWP phase 1 with a 5-year target of 1 million
    work opportunities.
  • The key assumption (at the time) was economic
    growth in the first economy was not impacting
    upon the second economy hence the need for
    targeted developmental programmes (SMME
    Development, Taxi Recapitalization Project and
    EPWP) as once-off ladders to graduate second
    economy activities into formal economy.
  • Phase 1 achieved its 1 million work
    opportunities target one-year ahead (2008) of
    schedule but unemployment remained stubbornly
    high, and worsened from 2008 with onset of
    global economic crisis.

7
EPWP Phase 2 (2009-2014)
  • Encouraged by success of massification in Phase 1
    (1 million work opportunities in
  • 4 years), and responding to local job-loss
    crisis linked to global economic crisis Phase 2
  • set an ambitious 4,5 million work
    opportunities target.
  • We are on track to meet the work opportunities
    target by the end of March 2014.
  • Phase 2 has also seen new developments
    including introduction of the Non-State sector,
    which has two programmes, namely Community Work
    Programme and Non-Profit Organisation programme,
    and the National, Provincial and Municipal EPWP
    Incentive.
  • Governments New Growth Path policy (2010)
    clearly broke with first and second economy
    paradigm its the MAINSTREAM economy that has
    systemic challenges.

8
South Africa a Global Innovator in PEPs
  • With chronic unemployment, even in many developed
    economies, the scale and innovative achievements
    of SAs PEPs have attracted international
    interest. However, we have not sufficiently
    communicated these achievements at home!
  • Uniquely, our PEPs cut across several sectors.
    They are championed through different line
    departments, provinces and municipalities and
    they have both a rural and urban focus.
  • Labour intensive methods are mainstreamed into
    Government infrastructure contracting rather than
    having PEPs operating in separate silos.

9
South Africa a Global Innovator in PEPs
continued
  • SA has been a global pioneer in applying PEPs on
    scale to environmental services Working for
    Water (WfW), Working on Fire, Working for
    Wetlands, etc.
  • The WfW programme has possibly saved as much as
    R400 billion (CSIR), cleared over 2 million
    hectares of alien invasive plants, and prevented
    loss of 71 of grazing.
  • Working on Fire in 2007/2008 saved the forestry
    industry alone R3,7 billion on a budget of R123
    million.

10
South Africa a Global Innovator in PEPs
continued
  • SA is still the only country in the world with a
    range of PEPs in the social sector including
    adult education, early childhood care,
    school-feeding schemes, school safety and
    homework supervision programmes. Home-based care
    programmes have been a major response to the
    HIV/AIDS pandemic.
  • Through the EPWP Non-State Sector programmes,
    namely the Community Work Programme (CWP) and
    Non-Profit Organisations (NPOs), we are working
    closely with NPOs, which are inclusive of
    non-governmental organisations, faith based
    organisations and community based organisations
    an important counter-weight to the dangers of
    excessive bureaucratisation of PEPs .

11
Innovation in PEPs Case Study Gauteng Extra
School Support
  • Background
  • Gauteng Department of Education identified a
    series of challenges in schools
  • Lack of support for learners on homework
    socio-economic conditions at home, parents
    levels of literacy, child headed families , etc.
  • Lack of safety at schools, targeted by drug
    dealers, school assets (computers) vulnerable.
  • Many learners not physically or creatively active
    after school hours.
  • EPWP response rolled out from 2011
  • Homework and Sport Supervisors (for Grades 1-3
    4-6 and 7-12) half day basis 8 200
    supervisors work opportunities at 911 schools.
  • Safety and security personnel 5 052 work
    opportunities at 1 263 schools.

12
Case Study Impact of Working for Water
  • SAs water loss because of alien invasive plants
    est. R6.5 billion, p.a.
  • Without WfW this figure would be in the region of
    R41.7 billion
  • The net present value of all control operations
    up to the end of 2011 would be in the order of
    R453 billion.

Leandre Arends - WfW team member in De Hoop
13
Key Lessons from EPWP Phases 1 2
14
Lesson 1 Clarify Key Objective of a Particular
Programme The Trilemma of PEPs
PEPs development potential lies in providing
all three of these outcomes- but there are
trade-offs between them in practice
For different programmes, sectors and contexts
optimal balance between these 3 will vary
Increasing one output is likely to result in
decreases in the others
15
Different strengths of different programmes
  • Working on Fire skilled work and training,
    relatively long term involvement, excellent
    graduation prospects but low numbers (5000
    fire-fighters p.a.)
  • Community Work Programme less training but
    possibilities to scale-up rapidly to over 1m
    w/os p.a. contributes to local community
    cohesion and ownership

16
Key Lessons from EPWP Phases 1 2 continued
  • Lesson 2 Achieve better balance between work
    opportunity headcounts and other outcomes
  • Work opportunity targets are very important but
    we need to balance these with other indicators,
    including
  • Full-time equivalents
  • Evaluation of post-participation outcomes for
    beneficiaries
  • Evaluation of assets and services produced
  • Impact on communities
  • This will require refining our Monitoring and
    Evaluation (ME) capacities

17
Key Lessons from EPWP Phases 1 2 continued
  • Lesson 3 Challenges with Infrastructure PEPs
  • Short-term nature of many infrastructure
    construction projects
  • Average work opportunity duration in
    infrastructure construction and maintenance EPWPs
    65 Days.
  • Need to place greater emphasis on infrastructure
    MAINTENANCE ongoing, local work - Road
    maintenance programmes like Zibambele and
    Siyatentela have an average work opportunity
    duration of 108 days.
  • Reluctance of private construction sector to use
    labour intensive approaches
  • Engage with sector
  • Ensure training of professionals in labour
    intensive approaches
  • Stipulate labour intensive methods more
    effectively in public sector contracts

18
Key Lessons from EPWP Phases 1 2 continued
  • Lesson 4 Perception of risk for public bodies
    taking on EPWP projects
  • Three major factors accounting for perception of
    risk
  • Concern that labour-intensive methods are slow
    and the quality is poor. We need to
  • Include labour-intensive methods in the training
    curriculum of the engineering profession
  • Concern over compliance challenges reporting
    and supply chain requirements. We need to
  • stream-line reporting mechanisms and
  • proactively assist provincial departments and
    municipalities, etc.
  • Concern over expectations of participants for
    full-time employment at completion of project
  • need to clarify and communicate nature of
    particular project more effectively
  • develop realistic exit strategies that are linked
    to the programme, resource these with appropriate
    training and ensure the participation of the
    responsible Departments

19
Key Lessons from EPWP Phases 1 2 continued
  • Lesson 5 Mitigate risk of projects being
    captured for patronage purposes
  • There are community accusations that the
    selection of EPWP participants is hijacked by
    politicians for patronage purposes
  • Can undermine key developmental outcome forging
    of community cohesion through collective
    productive work
  • Community co-ownership, including community
    oversight of PEP projects, is the key to averting
    the risk of clientelism/patronage
  • The role of community based organisations and
    other NPOs is proving useful in this regard, in
    both the CWP and in the EPWP NGO sector

20
Avoiding the Perils of Clientelism in
Participant Selection Case Study Western Cape
Department of Transport and Public Works
  • Provincial Departments EPWP Unit works with
    Municipality to ensure Community Forum
    established
  • Forum NGOs, religious leaders, business
    associations, relevant government authorities
    and a Community Liaison Officer
  • Responsibility of Forum is to create community
    awareness re. project and opportunities flowing
    from it
  • Contractor required to establish Project Steering
    Committee Contractor, Implementing Agent,
    Client Department and representatives nominated
    from Community Forum and to employ specified
    quota of EPWP jobs and other local labour
  • One of functions of Project Steering Committee
    facilitate recruitment of EPWP and other local
    labour

21
Avoiding the Perils of Clientelism in Participant
Selection Case Study Western Cape Department of
Transport and Public Works continued
  • Recruitment and selection of local labour
  • The WC Department of Transport and Public Works
    stipulates in the contracts with sub-contractors
    the following as mandatory
  • Well advertised public meeting, nature of
    opportunities explained, job application forms
    distributed to all present
  • Completed forms placed in sealed box
  • Steering Committee draws double number of
    applications required in full view of meeting
    one list for number of opportunities, another for
    reserve
  • A data base of all applicants (successful and
    unsuccessful) kept for future reference

22
Key Lessons from EPWP Phases 1 2 continued
  • Lesson 6 The need for much greater co-ordination
  • The scale, diversity and innovative nature of
    SAs PEP programmes a major achievementbut
    also a challenge
  • More work needs to be done in relation to common
    branding
  • Poorly coordinated public communication on
    achievements across PEP programmes
  • insufficient sharing of lessons across
    programmes and
  • insufficient co-ordination between PEPs and other
    potentially related Government policies,
    strategies and initiatives adult education and
    training SMME and Co-ops development
    sustainable livelihoods and food security
    programmes, etc.
  • This is the key lesson from the past 10 years,
    and prime reason for the November 2013 Cabinet
    decision to establish a Presidential Coordinating
    Commission for PEPs in the new administration

23
EPWP Enterprise and Cooperative Development
24
DESIGN OF EPWP PHASE 3
25
Policy Context for EPWP Phase 3
  • The National Development Plan (NDP) calls for the
    expansion of EPWP and outlines two key
    objectives
  • Contribute to reducing unemployment by creating
    temporary employment by being responsive to the
    number of unemployed. The Public Employment
    Programmes should target the creation of 2
    million work opportunities annually by 2020, or
    earlier, if possible The main opportunities
    will lie in community based services and the roll
    out of social sector initiatives. (NDP Chapter
    3)
  • Contribute to social protection for the
    unemployed by providing them with income support
    (Chapter 11).
  • In the New Growth Path, EPWP is seen as an
    important contributor in Jobs Driver 1
    (Infrastructure Development) through increasing
    the labour intensity of Government infrastructure
    investments and Jobs Driver 4 (Social Capital)
    through expansion of the Community Work
    Programme.

26
Paradigm Shifts in EPWP (Phase 1 Phase 3)
PHASE II
PHASE III
PHASE I
Greater coordination across range of PEPs, and
between PEPs and other developmental initiatives
(training, SMME and coop development). Better
Monitoring and Evaluation of what happens
post-participation, and on impact of services and
assets created especially in poor
communities. Increase scope of infrastructure
maintenance.
During the period of EPWP Phase 1, economic
growth was between 5 6. However , almost 1
million jobs were lost in the economy. Realisatio
n that unemployment is not only cyclical, but
more fundamentally structural. EPWP needs to be
integrated into strategies to address the
systemic nature of unemployment and poverty in SA.
EPWP designed to bridge gap between socalled
1st and 2nd economy. Too many expectations
created for the Programme, such as maximising the
spread and skilling all beneficiaries to be
exited into the mainstream economy.
27
EPWP PHASE 3
28
Training and Graduation in EPWP Phase 3
  • For all the EPWP sectors, project based training
    aimed at capacitating EPWP participants remains
    an important part of EPWP.
  • At the same time, it is recognized that the role
    and importance of training varies considerably
    from sector to sector, and sub-programme to
    sub-programme, and each sector will have to
    develop its own appropriate training policy and
    strategy.
  • Strong collaboration with the National Skills
    Fund and Skills Education and Training Agencies
    (SETAs) will be continued to source funding for
    training of participants. Sectors will also be
    encouraged to dedicate a portion of their
    implementation budgets for training of
    beneficiaries. There is also important potential
    for synergising PEPs and the Department of Higher
    Educations proposed Community Colleges.
  • Where possible the graduation of EPWP
    beneficiaries into formal employment will be
    promoted through various initiatives, including
    cooperatives and small enterprise development.

29
National Youth Service Aims and Objectives
  • To create work and training opportunities for the
    unemployed youth while addressing the shortage of
    artisan skills within built environment.
  • Involvement of youth in community service
    delivery and thereby instilling the spirit of
    patriotism in young South Africans.
  • Ensure that youth develop skills, understanding
    and aspirations for working within the built
    environment.

30
NYS Implementation stages
  • The EPWP NYS is implemented through the following
    stages
  • Phase 1 - Initiation
  • Phase 2 Pre-implementation Phase
  • Phase 2 A - Recruitment
  • Phase 2 B - Induction training
  • Phase 2 C - Technical training
  • Phase 3 implementation
  • Phase 3 A - Tender process (parallel to
    recruitment and training)
  • Phase 3 B on work training during construction
    phase
  • Phase 4 Beneficiary exit workshop

31
National Youth Service Phase 3
  • The NYS programme will continue to focus on
    training youth in artisan trades in the built
    environment on projects implemented by the
    National Department of Public Works and
    Provincial Departments of Public Works
  • There will focus on moving more towards
    accredited training.
  • Phase 3 costs on NDPW projects will continue to
    be covered from the current 5 allocation on the
    project funds however the NSF funds can also be
    accessed to increase the number of beneficiaries.
  • The estimated NYS training cost is R30,000 per
    beneficiary.

32
Table 8 NYS EPWP Phase 3 targets NDPW and
Provincial NYS
  2014/2015 2015/016 2016/2017 2017/2018 2018/2019
NDPW NYS Training No. of Beneficiaries 3600 3700 3800 3900 4000
Provincial NYS Training Projected No. of Beneficiaries 4600 4700 4800 4900 5000
NDPW Artisan Development Projected No. of Beneficiaries 55 60 65 70 75
Overall Training No. of Beneficiaries 8255 8460 8665 8870 9075
33
Convergence and Synergies
  • As the EPWP keeps growing, both in terms of
    overall scale and the number of sub-programmes,
    concerns of possible areas of overlap and
    duplication have increased.
  • Given the plans for further growth, it is
    important these concerns are addressed.
  • The concerns for duplication and overlap are most
    prominent between CWP and Sector Programmes, and
    the Social Sector and NPO Programmes.
  • Creating synergies between all EPWP Sectors -
    rather than merely managing overlap and
    duplication. An important objective for Phase 3
    is to build greater convergence between the CWP
    and other sector programmes, so that instead of
    duplication, these are complementarity, e.g.
    using Working for Water to train CWP projects in
    clearing invasive aliens in their particular
    locality.
  • Likewise, there are many possibilities for
    enhanced synergies between EPWP programmes in the
    Social and NPO sectors.

34
EPWP Phase 3 Employment Targets
EPWP Phase 3 Infrastructure Sector Environment and Culture Sector Social Sector NPO CWP Total
2014/15 379,000 227,650 202,714 52,825 213,000 1,075,189
2015/16 447,219 229,000 205,307 48,500 217,000 1,147,026
2016/17 487,219 230,500 205,968 48,400 226,000 1,198,087
2017/18 534,219 231,000 210,496 48,565 231,000 1,255,280
2018/19 587,219 233,000 214,444 48,755 241,000 1,324,418
Totals 2,434,876 1,151,150 1,038,929 247,045 1,128,000 6,000,000
35
Focus of EPWP Phase 3
Build a common EPWP brand
Improve the strategic and operational aspects of
the EPWP, aiming to improve implementation
Improve targeting of participants through
community participation
Increase EPWP Contribution to Development
Introduce a greater degree of uniformity and
standardization across the various EPWP
Programmes through the introduction of universal
principles
Improve the monitoring evaluation of
qualitative aspects
Strengthen collaboration and synergies amongst
lead departments and other stakeholders
sharing best practice and lessons
36
Institutional Arrangements for EPWP Phase 3
  • To achieve better synergy between our wide range
    of PEPs and other poverty
  • alleviation, employment, enterprise development
    and skills development initiatives,
  • Cabinet (November 2013) has agreed
  • That a Presidential Public Employment
    Coordinating Commission be established.
  • The Commission should be chaired by the President
    or Deputy President and should meet quarterly.
  • It should be composed of relevant Ministers, the
    nine Premiers and the South African Local
    Government Association SALGA.
  • It should be supported by a Political Management
    Committee of relevant Ministers, and a Political
    Secretariat of relevant Ministers and Deputy
    Ministers.
  • The Commission should have two major work streams
    - PEPs and Employment, and PEPs and Sustainable
    Livelihoods.
  • Its technical secretariat should be the DPWs
    current EPWP Branch, working closely with other
    relevant line department branches.

37
Key Changes in Phase 3
  • PPECC will enhance coordination across range of
    PEPs, and between PEPs and other developmental
    initiatives (training, SMME and coop
    development).
  • Fostering compliance with core universal
    principles to be progressively realised.
  • Adherence to the EPWP minimum wage and employment
    conditions under the Ministerial Determination.
  • Selection of workers based on a clearly defined
    process and defined criteria.
  • Work provides or enhances public goods and
    community services.
  • Minimum labour intensity appropriate to sector.
  • Increased community participation for more
    visibility and ownership in poor communities
    enhancing social cohesion.
  • Increase scope of infrastructure maintenance
    which provides longer duration work
    opportunities.
  • More emphasis on monitoring and evaluation of
    assets created and their impact on communities
    and beneficiaries (post-participation).
  • Parliament will also have an important monitoring
    and evaluation role to play.
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