Incentive Grant Public Works Appropriation's Committee 29 June 2011

Outline Targeted projects Incentive grant budget for 2010/11 financial year Departmental EPWP contribution for 2010/2011 and 2011/2012 financial years Incentive grant budget for 2011/12 financial year Emerging contractor contracts for 2011/12

Targeted projects Department is planning to maximize on labour intensity of existing infrastructure projects -Construction and road maintenance prgrammes, including Zibambele -Labour Intensive Construction (Emerging contractor level 1 & 2) -Ultra thin Labour Intensive construction -Block Paving LIC Construction Capacity building EPWP learnerships Most of the projects are implemented through the baseline budget; the incentive budget constitutes additional funding

Targeted projects cont’d Currently Zibambele road maintenance programme is targeting 40 000 beneficiaries going forward across the province. Zibambele has contributed massively in the number of FTEs that the department has created and it is the pillar of EPWP in KZN within infrastructure sector as it provides permanent work opportunities. As an expansion to Zibambele the department is targeting youth that has graduated from Zibambele learnerships for the capacitation programme which is aimed improving the quality of reporting and overall programme support to the EPWP at the regional level. The incentive grant budget is targeted at Labour Intensive Construction and maintenance projects which contribute in achieving equitable and well maintained Provincial road network, as well as enhancing emerging contractor development and employment opportunities for local labour. .

Targeted projects cont’d Emerging contractors in CIDB Grade 1 and 2 are the main focus for delivering on labour based projects. Although some bigger capital projects have been included as part of the EPWP , the work is subdivided into smaller contracts to enhance the development of emerging contractors which ultimately provides extensive employment for local labour. Construction projects are aimed at providing access roads to public service facilities and other areas that are currently underserved. The department implemented the road construction learnerships at NQF level 2, supervision construction learnerships at NQF level 4 and road worker learnerships at NQF 2. In total there were 140 learners for capacity building learnerships which were aimed at developing young future contractors within the construction industry. 131 of these were youth from Zibambele households who matriculated with mathematics and science.

Classroom photograph

Classroom training

LIC construction of Gabion retaining wall on P240

Construction of walkways in P230/240

Incentive grant budget for 2010/11 financial year PROGRAMME / PROJECT BUDGET Labour Intensive Construction and Maintenance Projects R143 129 087.00 Labour Intensive Construction Learnerships R10 000 000.00 TOTAL 153 130 000.00

Departmental EPWP contributions over the MTEF period 2010_2011 CAPEX MAINTENACE Department of Transport Summary ARRUP ROADS of NATIONAL IMPORTANCE ROADS REHABILITATION OPERATION KUSHUNGUTHULI ROADS FOR RURAL DEVELOPMENT ZIBAMBELE MAINTENANCE TOTAL Budget (R) 351,146,723 300,820,963 464,999,999 333,987,043 162,511,000 225,600,000 885,000,000 2,724,065,728 Value of LI portion (R) 32,598,384 15,041,048 23,249,999 19,699,532 9,625,550 188,000,000 504,188,954 Work Opportunities 913 217 2,126 190 241 38,869,000 13,313 57,000 2011_2012 CAPEX MAINTENACE Department of Transport Summary ARRUP ROADS of NATIONAL IMPORTANCE ROADS REHABILITATION OPERATION KUSHUNGUTHULI ROADS FOR RURAL DEVELOPMENT ZIBAMBELE MAINTENANCE TOTAL Budget (R) 351,146,723 300,820,963 464,999,999 333,987,043 162,511,000 225,600,000 885,000,000 2,724,065,728 Value of LI portion (R) 32,598,384 15,041,048 23,249,999 19,699,532 9,625,550 188,000,000 504,188,954 Work Opportunities 913 217 2,126 190 241 40,000 13,313 57,000

Incentive grant budget for 2011/12 financial year PROGRAMME ALLOCATION CAPACITATION PROGRAMME 10,000,000 ZIBAMBELE YOUTH DEV.WORKERS 2,100,000 PILOT PLANT OPERATOR LEARNERSHIP 3,000,000 ROAD INFRSTRUCTURE PROJECTS 97,087,000 ROAD SAFETY:CROSSING GUARDS 2,000,000 TOTAL 113,287,000

Emerging contractor contracts 2011/12 Subsequent to Sihamba Sonke launch, from the current incentive grant allocation the department will scale up its maintenance and construction programme using Labour Intensive methods. In order to benefit emerging contractors the department has targeted grade 1 and 2 contractors as follows; Category No of Contracts Total value Grade 1 1,059 65,780,000 Grade 2 230 71,908,525 Total 1,289 279,279,975

Conclusion With the targeting of Zibambele youth the department will be providing employment and training for at least three years over and above the permanent work opportunities already created in this programme The above shows that in responding to the new growth path we have to intervene in both the execution and planning of road construction and maintenance projects.

Construction site for block paving in Pietermariburg

Construction site

NGIYABONGA ! THANK YOU! BAIE DANKIE!