EPWP PROGRESS REPORT TO PORTFOLIO COMMITTEE ON PUBLIC WORKS Presented by: Stanley Henderson DDG: EPWP 21 June 2011

TABLE OF CONTENTS EPWP Progress against work opportunity targets Average Duration of work opportunities Progress against Youth, Women and People with disability targets EPWP Phase 2 Training progress Non-State sector progress Technical Support to Municipalities progress EPWP infrastructure sector incentive progress Some Key targets for the 11-12 Financial year 2

1.0 PROGRESS OF EPWP AGAINST WORK OPPORTUNITY TARGETS The EPWP programme created 643,116 work opportunities in the 10/11 financial year against a target of 642,000. The EPWP has exceeded its targets in all sectors apart from the Infrastructure and Environmental sectors where 81% and 69% of the annual target of the 10/11 financial year was achieved. The 2nd phase of the EPWP has created 1,268,975 work opportunities cumulatively since its launch in April 2009. This represents 28% of the target of the 4,500,000 work opportunities targeted by the March 2014. The work opportunities created cumulatively (1,268,975) is greater than 1,192,000 work opportunities that were targeted at the end of the 2nd year of EPWP phase 2. This shows that the programme is on course to meet the 4,500,000 target by March 2014. 3

Source: Targets: Business Plan (dated January 2009) Q3 and Q4: Work opportunities: Overall EPWP Progress against 2010-2011 targets and % increase Sector Targeted work opportunities [WO] Work opportunities [WO]* Apr - 31 Dec ‘10 (Q3) Apr ’10 - 31 Mar ‘11 (Q4) % increase from Q3 to Q4 No % of targeted WO Infrastructure 342,000 210,437 62 277,100 81 32 Environment 156,000 82,647 53 107,189 69 30 Social 96,000 108,715 113 131,979 137 21 Non-State: Non-Profit Organisations 19,200 25,076 131 34,712 181 38 Community Works 28,800 66,355 230 92,136 320 39 4 Total *** 642,000 493,230 77 643,116 100 30 Source: Targets: Business Plan (dated January 2009) * Work Opportunities : overall number of work opportunities reported by reporting bodies 2

Work opportunities per sector against annual target for 2010-11 (Overall) (1 Apr 2010 – 31 Mar 2011) 5

Progress to date against targets to date (1 April 2009 – 31 March 2011) Work opportunities (WO) and Full Time Equivalence (FTE) Sector Targeted Work Opp Actual Work Opp reported % Progress (Work opp) Targeted FTE Actual FTE reported % Progress (FTE) Infrastructure 642,000 540,557 84.20 239,131 160,914 67.29 Environment 306,000 203,131 66.38 74,348 47,605 64.03 Social 176,000 338,400 192.27 128,696 107,095 83.22 Non-State: Non-Profit Organisations 27,200 49,425 181.71 11,826 14,231 120.34 Non-State: Community Works 40,800 137,462 336.92 17,740 14,063 79.28 Total 1,192,000 1,268,975 106.46 471,741 343,909 72.90 Source: Business Plan (dated January 2009) Work Opportunities : number of individuals reported to have been employed on an EPWP project FTE (Full Time Equivalence) : person days of work and training divided by 230 days

2.0 AVERAGE DURATION OF WORK OPPORTUNITY PROGRESS In the 10-11 financial there has been increased in the average duration of work opportunities. In the social sector the average duration of 100 days or more was achieved in 8 provinces in the 2010/11 as opposed to 2009/10 where the average was below 50 Average duration of more than 73 days was reported in the infrastructure and Non State (Non Profit Organisation) and the Environment and culture Sector. The community works programme recorded an average duration of less than 30 days and that lowers the overall average duration of projects. 7

2.1 Average Duration: Sector per Province (Overall) (in person days) (1 April 2010 – 31 March 2011) Social sector consistently the highest average duration (above 100 days) except in Northern Cape where dropped below 70 days from 80 days in the previous quarter. Western Cape just below the target of 100 days. Infrastructure for Northern Cape below 40 days average duration while Gauteng above 100 days. Free State was above 100 days in previous quarter but dropped to below 70 days. North West and Western Cape should try and improve to above 60 days. Environmental sector on average between 60 – 80 days, except Gauteng above 100 days and Western Cape below 50 days. Non-State: Community Works have the shortest work opportunities again due to the structure of the programme. 8

(in person days) (1 April 2010 – 31 March 2011) Table 1: Average Duration: Sectors per Province (Overall) (in person days) (1 April 2010 – 31 March 2011) Prov Non-State: Community Works Environment & Culture Infrastruc-ture Non-State: Non Profit Organisations Social EC 32 71 66 90 126 FS 31 65 104 77 152 GP 22 110 73 158 KN 28 63 74 72 143 LP 45 81 55 107 116 MP 34 78 82 95 111 NC 64 NW 24 52 76 WC 19 47 57 96 Formula: Average duration = (person days of training + person days of work) / number of work opp

3. PROGRESS AGAINST YOUTH, WOMEN AND PEOPLE 3.0 PROGRESS AGAINST YOUTH, WOMEN AND PEOPLE DISABILITY WITH DISABILITY TARGETS In terms of the work opportunities reported for the 10/11 financial year, the EPWP exceeded targets for Youth and Women with 51% and 62% against targets of 40% and 55% for youth and Women respectively. Against the target of people with disabilities, 0.44% was achieved against the target of 2% for the 10/11 financial year. The percentage of Women employed is highest in the social sector at 91%, while that of the Youth is highest in the Environment and Culture sector at 58%. For people with disabilities the Non-sector through the Non-Profit Organisations component achieved percentage employed at 2%. 10

People with disabilities % TABLE SHOWING PROGRESS OF EMPLOYMENT OF YOUTH, WOMEN AND PEOPLE WITH DISABILITIES Sector Youth % Women % People with disabilities % Infrastructure 46 47 0.13 Environmental and Culture sector 58 52 0.68 Social sector 50 91 0.33 Non-state sector Community Works Non Profit Organisations (NPOs) 54 71 0.75 57 69 1.82 Overall Percentage achieved 51 62 0.44 11

4.0 PROGRESS AGAINST TRAINING IN EPWP PHASE 2 The EPWP has been awarded R 200 Million by Department of Higher Education and Training ( DHET) for training of beneficiaries from the National Skills Fund. R 188 Million out of the R 200 Million has been committed to the training of 20,000 beneficiaries of EPWP projects by 31st March 2012. The targeted number of beneficiaries to be trained is 30,000 across the different EPWP sectors. Training commenced in April 2011. 631 Beneficiaries have been trained since April 2011. 12

NO OF PEOPLE TRAINED Gauteng 34 KZN 91 Limpopo 74 Mpumalanga 173 PROVINCE PEOPLE TRAINED Gauteng 34 KZN 91 Limpopo 74 Mpumalanga 173 North West 116 North Cape 58 Western Cape 85 Total 631 13

5.0 NON-STATE SECTOR PROGRESS FOR THE 10-11 FINANCIAL YEAR The Non-State sector is implemented through the Independent Development Trust ( IDT) that acts as the Intermediary. The Intermediary is responsible for contracting with Non Profit Organisations ( NPOs), disbursement of funds and monitoring of performance; 108 NPO’s contracted for the 2010/11 FY; As at 31st March 2011, all provinces had utilized all their allocated budget; NSS created 33 082 work opportunities (WO) against the set target of 24 000; translating to 137.8 % delivery and 9 082 more WO. 14

5.1 NON STATE SECTOR (NSS) BUDGET : 2010/11 In the 2010/11 FY, the NSS had a total budget of R190 million broken down as follows: 15

5. 2. BUDGET ALLOCATION TO NPOS IN DIFFERENT 5.2 BUDGET ALLOCATION TO NPOS IN DIFFERENT PROVINCES FOR THE 10-11 FINANCIAL YEAR As at March 2011, R167.687 million spent translating to 97% of the R171.600 million budget allocated for the wage cost to NPO’s. The unspent funds of R212.050 was due to unclaimed wage cost funds at national level. 16

5.3 NON-STATE SECTOR CHALLENGES Allocated budget for NSS in the 2011/12 FY does not match the increasing WO targets. Work opportunities targets increasing by 37.5% from 24 000 in 2010/11 to 38 400 in 2011/12; But NSS wage cost allocation is decreasing by 13% from R171.600 million in 2010/11 to R152 million in 2011/12; and Daily wage subsidy rate has increased from R50 to R60 in line with the Ministerial Determination. 17

6.0 TECHNICAL SUPPORT TO MUNICIPALITIES 217 Municipalities are currently being provided with Technical support in terms of implementation of EPWP; The Number of Municipalities supported increased from 174 in the 3rd quarter of the 10/11 financial year to 217 at the end of the fourth quarter; Additional 6 Deputy Directors based in Provinces have been employed in this regard; More Municipalities will be supported in the current financial year. 18

TECHNICAL SUPPORT TO MUNICIPALITIES CONT… Province Total number of Municipalities (DMs and LMs) Municipalities currently being provided with Technical support EC 45 41 FS 25 22 GP 15 11 KZN 61 23 LP 30 28 MP 21 20 NC 32 NW 24 WC 29 Total 283 217 19

7.0 PROGRESS OF THE INFRASTRUCTURE SECTOR INCENTIVE Provincial Departments in 9 out of the 9 Provinces have been able to access the EPWP infrastructure sector incentive; R185.9 million has been paid out of the R330 million available for the 10/11 financial year considering 3rd quarter reporting. This represents 56% of the Provincial allocation; Only the Northern Cape and North West Provinces did not access their incentive allocation for the 10/11 financial year. Engagements have been made with the Northern Cape and North West Provinces on implementing projects more labour-intensively to access the incentive; For Municipalities, R 273.306 million of the R 622.996 million was paid considering 3rd Quarter reporting. This represents 44% of the Municipal allocation for the 10/11 financial year; Considering the overall infrastructure incentive allocation, R 459 Million of the R 954 Million or 48% was accessed in the 10-11 Financial year. 20

PERFORMANCE ON THE EPWP INFRASTRUCTURE INCENTIVE BY PROVINCES AFTER THE 3RD QUARTER OF THE 10/11 FINANCIAL YEAR REPORTING ( PAID IN 4TH QUARTER ) Province Infrastructure Incentive allocation for the 10/11 National financial year (R’000) 3rd Quarter incentive payment for the 10-11 financial year (R’000) Total incentive disbursed In the 10/11 financial year (R’000) Percentage of the 10/11 incentive disbursed (%) Eastern Cape 60,354 4,591 28,636 47 Free State 13,767 115 2,380 17 Gauteng 39,154 2,498 6 Kwa-Zulu Natal 169,470 36,352 135,613 80 Limpopo 2,903 1,348 6,790 234 Mpumalanga 18,074 5,432 8,293 46 Northern Cape 1,167 North West 2,897 Western Cape 23,218 1,700 7 Total 330,004 47,838 185,910 56 21

1. 2. PERFORMANCE ON THE EPWP INFRASTRUCTURE 1.2 PERFORMANCE ON THE EPWP INFRASTRUCTURE INCENTIVE BY MUNICIPALITIES AFTER 3RD QUARTER 10-11 REPORTING Province Infrastructure Incentive allocation for the 10/11 National financial year (R’000) 3rd Quarter incentive payment for the 10-11 financial year (R’000) Total incentive disbursed In the 10/11 financial year (R’000) Percentage of the 10/11 incentive disbursed (%) Eastern Cape 97,806 6,844 16,182 17 Free State 34,400 1,402 1,539 4 Gauteng 165,048 69,984 110,476 67 Kwa-Zulu Natal 123,613 18,056 42,526 34 Limpopo 55,355 4,955 16,195 29 Mpumalanga 37,288 568 602 2 Northern Cape 50,399 1,889 1,931 North West 36,049 1,887 9,400 26 Western Cape 26,038 823 1,408 5 Total 622,996 106,119 200,259 32 22

( 18%) of the allocation will be paid. 7.1 PROGRESS OF THE INFRASTRUCTURE SECTOR INCENTIVE IN THE 11/12 FINANCIAL YEAR 6 Provincial Departments in 4 Provinces have accessed the Infrastructure Incentive considering the 4th Quarter of the 10/11 financial year. A total of R 49.4 Million out of R 267.269 Million available for Provincial Departments ( 18%) of the allocation will be paid. 80 out of the 126 Municipalities will be paid a total amount of R 55.665 Million considering 4th quarter reporting of the 10/11 financial year. This represents 8% of the total allocation of R 679.583 Million for the current financial year. 23

2. Performance on the EPWP infrastructure incentive by Provinces after the 4th quarter of the 10/11 financial year reporting ( Paid in 1st quarter of the 11-12 financial year ) Province Infrastructure Incentive allocation for the 11/12 National financial year (R’000) 4th Quarter incentive payment for the 10-11 financial year (R’000) Percentage of the 11/12 incentive disbursed (%) Eastern Cape 30, 431 6,604 22 Free State 10,606 Gauteng 43,856 Kwa-Zulu Natal 132,332 32,347 24 Limpopo 7,403 3,133 42 Mpumalanga 9,486 7,360 78 Northern Cape 4,809 North West 5,758 Western Cape 22,587 Total 267,269 49,444 18 24 11

2. Performance on the EPWP infrastructure incentive by Municipalities after the 4th quarter of the 10/11 ( Paid in the 1st quarter of the 11-12 financial year) Province Infrastructure Incentive allocation for the 11/12 National financial year (R’000) 4th Quarter incentive payment for the 10-11 financial year (R’000) Percentage of the 11/12 incentive disbursed (%) Eastern Cape 76,121 8,944 12 Free State 34,446 3,234 9 Gauteng 223,710 20,585 Kwa-Zulu Natal 127,982 2,178 2 Limpopo 64,600 8,093 13 Mpumalanga 33,767 7,894 23 Northern Cape 47,764 663 1 North West 44,162 2,377 5 Western Cape 27,031 1,916 7 Total 679,583 55,885 8 25

7.2 MEASURES PUT IN PLACE TO IMPROVE PERFORMANCE ON EPWP INCENTIVE DRAW DOWN Public bodies ( Provincial Departments and Municipalities) are being provided with support to report on EPWP. The 90 data capturers employed are helping in this regard. A partnership with DBSA through the Siyenza Manje programme has been put in place to support municipalities jointly. Training of officials in Municipalities in Labour-intensive methods of construction with LG-SETA is currently being rolled out. Over 170 of the targeted 1,200 officials have been trained so far. Training on reporting is also being done to Public body officials to enable them to report better on EPWP. Technical support being provided to Public bodies to implement their projects more labour-intensively so as to create more work opportunities and Full Time Equivalents that will increase the incentive drawn down. 26

8.0 SOME KEY PLANNED TARGETS FOR THE 11-12 FINANCIAL YEAR 868 000 work opportunities created and reported; 3000 youth recruited in the NYS programme; 30000 beneficiaries trained; 1000 officials trained on labour intensive methods; 80% of projects complaint in terms of reporting requirements. 27

THANK YOU! 28