BRIEF ON WORKING RELATIONS WRT DAC LEGACY PROJECTS South Africa Works because of Public Works BRIEF ON WORKING RELATIONS WRT DAC LEGACY PROJECTS Presentation to DAC Portfolio Committee 5 September 2017

Portfolio composition and relations management Legacy projects CONTENTS Introduction DPW Role and Mandate Portfolio composition and relations management Legacy projects Maputo: Construction of monument and related works to commemorate the Matola Raid (located in Mozambique) Mbuzini: Samora Machel: Construction of monument and museum; Restoration and upgrading (located on the border of Mozambique and Mpumalanga (RSA)) Hankey: Sarah Bartmann: Construction of museum and landscaping (located in the Eastern Cape)

INTRODUCTION Legacy projects are specific projects declared by the President of the RSA in his State of the Nation Address; DPW is the implementing agent for the infrastructure projects for DAC and its entities. Upon completion thereof the site/buildings are handed over to Client. The handing over of projects entails that the relevant payments are made by the Client e.g. municipal payments etc. Where custodianship is handed over, the responsibility for maintenance of the assets will fall within the ambit of the custodian/Client.

DPW ROLE AND MANDATE The Department of Public Works (DPW) is the custodian of a significant portfolio of the national government’s immovable assets. It has a mandate to provide and manage accommodation on behalf of various National Government departments. This includes the planning, acquisition, maintenance, management and disposal of immovable assets. The Department also renders expert built environment services to its Clients The constitutional mandate of DPW is provided for in Schedule 4 of the Constitution: In pursuit of its mandate, DPW observe the principles of good cooperative governance and intergovernmental relations as provided for in Section 41, Chapter 3 of the Constitution. The mandate of DPW is largely governed by the Government Immovable Asset Management Act, 2007 (GIAMA). The Act aims to ensure efficient and effective immovable asset management throughout Government in order to improve service delivery.

DAC PORTFOLIO COMPOSITION AND RELATIONS MANAGEMENT INFRASTRUCTURE PROJECTS: CAPEX: 26 Projects of which 3 are legacy projects Maintenance: 9 projects LEASES: 15 leases RELATIONS MANAGEMENT: Regular meetings are held; Monthly progress reports are provided on a per project basis.

DAC PORTFOLIO COMPOSITION - INFRASTRUCTURE Budget ALLOCATION as at end of July 2017: Capital Works Allocation : R 169 469 758 DPW Planned Maintenance Allocation : R 30 710 295 DAC Total Infrastructure Allocation: R 200 180 053 Budget EXPENDITURE as at end of July 2017: Capital Works Expenditure : R 26 444 681 (16%) Planned Maintenance expenditure : R 885 606 (3%) DAC Total Infrastructure expenditure: R 27 330 287 (14%)

LEGACY PROJECTS MANAGED BY DPW Maputo: Construction of monument and related works to commemorate the Matola Raid (located in Mozambique) Mbuzini: Samora Machel: Construction of monument and museum; Restoration and upgrading (located on the border of Mozambique and Mpumalanga (RSA)) Hankey: Sarah Bartmann: Construction of museum and landscaping (located in the Eastern Cape)

MAPUTO: COMMEMORATION OF THE MATOLA RAID: MONUMENT (WCS 047578) Scope Contract value Stage of Project Construction of monument and related works to commemorate the Matola Raid Original value: R 28 417 500.00 (contractor) R 8 814 000.00 (consultant) Total: R 37 231 500.00 Value of Additional work: R 18 332 500.00 Expected final value: R 46 750 000.00 (contractor) Total: R 55 564 000.00 Contract period: 7 months Commencement date: 2011/06/08 Anticipated original Completion date: 2012/03/02 Actual completion date: 2012/10/05 Construction is completed.

MBUZINI: SAMORA MACHEL: MONUMENT AND MUSEUM Scope Contract value Stage of Project Construction: (WCS 031588) Original value: R 1 358 489.00 (contractor) R 426 612.21 (consultant) Total: R 1 785 101.21 Value of Additional work: R 293 715.90 Expected final value: R 1 652 204.90 (contractor) Total: R 2 078 817.11 Contract period: 6 months Commencement date: 2002/08/16 Anticipated original Completion date: 2003/02/15 Actual completion date: 2004/08/05 Project completed

MBUZINI: SAMORA MACHEL: MONUMENT AND MUSEUM (Continued) Scope Contract value Stage of Project Monument and Museum: Restoration and upgrading (WCS 054791) Original value: R 3 630 106.65 (contractor) R 5 027 418.21 (consultant) Total: R 8 657 524.86 Expected final value: R 2 396 133.62 (contractor) R 1 065 985.72 (consultant) Total: 3 462 119.34 Contract period: 2 months Commencement date: 2016/08/05 Actual completion date: 2016/10/12 Project completed. Final payments to be made.

HANKEY: SARAH BARTMANN CENTRE OF REMEMBRANCE (WCS 047427) Scope Contract value Stage of Project Construction of museum and landscaping Original value: R 164 386 247.30 (contractor) R 27 750 020.00 (consultant) Total: R 192 136 267.30 Value of Additional work: R 11 734 589.70 Expected final value: R 181 235 837.00 (Including escalation) R 22 635 020.00 (Consultants) Total: R 203 870 857.00 Contract period: 30 months Commencement date: 2014/04/14 Anticipated completion date: 2017/10/13 The project is approximately three months behind schedule due to the various strikes by the local employees from Hankey and the performance of the Contractor. The labour action was because the workers wanted a higher payment than prescribed for the specific disciplines and the because the contractor brought his own labour from Gauteng. The contractor went through several site management issues but together with the labour problems and cash flow management, the situation was interrogated and addressed during intervention meetings from Management and the involvement of the PMO Office in November and December 2015 and lately on 30 June 2017. In addressing the labour unrest the Contractor followed regulated labour management procedures to normalise the situation on site.

Thank You National Department of Public Works (NDPW) Head Office: Public Works CGO Building Cnr Bosman and Madiba Pretoria Central Private Bag X65 Pretoria 0001 Website: http://www.publicworks.gov.za