Presented to the OPERATIONS BRANCH STRATEGIC INITIATIVES PORTFOLIO COMMITTEE OF PUBLIC WORKS 13 March 2006

PRESENTATION STRUCTURE BACKGROUND CURRENT SITUATION SOLUTIONS TO MAINTENANCE OTHER STRATEGIC INNITIATIVES

BACKGROUND The Department of Public Works maintains and provides accommodation to National Government Departments The Condition of the Portfolio under the management of DPW is as follows: Condition of State Owned Buildings (Number and Percentage) Total National Very Good Good Fair Poor Very poor 3563 6% 16298 28% 21195 37% 10451 18% 6173 11% 57680 100%

BACKGROUND (Cont.) Due to the fact that only 36% of the property can be classified under the good to very good condition , DPW approached National Treasury in 2004 to request funding to address the maintenance backlog. In 2004 approximately R12,5 billion was required to repair all existing buildings to a functional condition and R2.5 billion annually for ongoing maintenance to prevent additional maintenance backlog.

CURRENT SITUATION An allocation of around R1.5 billion for planned for planned maintenance has been made available by Treasury for the 2006-2007 financial year . Treasury has indicated that the increase in maintenance allocation will be sustained over the MTEF Cycle and beyond. The allocation for planned and unplanned maintenance shows an increase of more than 50% and will contribute towards the sustainability of the Portfolio.

CURRENT SITUATION (Cont) Measures to improve management of unplanned maintenance are being developed and this include the development of criteria for prioritising unplanned maintenance Also , the help desk where clients record complaints on day to day maintenance is being standardised to improve efficiency and turn around time. Moreover, the technical section is being capacitated by employing more works managers to do regular inspections on our properties to avoid being re-active on maintenance issues .

OTHER STATEGIC INNITIATIVES DEBTORS MANAGEMENT During December 05 and January 06, DPW embarked on an extensive exercise to reconcile debtors so as to determine the exact amount before appointing debt collectors To improve revenue management DPW, has embarked on a project of collecting outstanding amounts from private tenants by appointing debt collectors with effect from April 2006 There has been a clear demarcation of roles and responsibilities amongst units within DPW thus improving the management of debtors

OTHER STATEGIC INNITIATIVES (Cont) DISPOSALS 102 properties have been advertised in the open media and the intention is to empower previously disadvantaged individuals through disposing as per the provisions of PPPFA 50 of these properties have been recommended for award to preferred bidders so far There are also disposals in foreign countries where a total of 13 properties in Malawi and Namibia will be disposed by way of auction in the next two months. Due to the fact that these properties are virtually small and in a bad condition, incurring huge expenses on tendering is therefore not necessary.

OTHER STATEGIC INNITIATIVES (Cont) DISPOSALS (cont) Disposals in Europe will also be implemented upon the finalisation of the valuation of the properties and determination of the disposal method to be used which should be in line with laws of the respective European countries Moreover, approximately 282 local properties in Phase 2 have been approved for disposal by the Minister and they will be disposed during 2006/2007 financial year

OTHER STATEGIC INNITIATIVES (Cont) INFRASTRUCTURE DELIVERY IMPROVEMENT PROGRAMME National Treasury developed the programme for Provincial Governments, however, DPW felt it should also have such a programme as it provides infrastructure to National departments IDIP will be integrated with the SIDP (Zimisele) initiative to promote efficiency on service delivery The programme seeks to set standards of conformity pertaining to planning and managing infrastructure

OTHER STATEGIC INNITIATIVES (Cont) BUILDING OF TECHNICAL CAPACITY The department is also having talks with the Project management council to seek ways of fast- tracking the registration of project management and reviewing PM classification

OTHER STATEGIC INNITIATIVES (Cont) FACILITIES MAMAGEMENT Strategic management of the operations of the key facilities (Prestige e.g. Parliament and Union Buildings) Pilot in Cape Town and appointment of a new service provider Preparation for implementation in Pretoria (Union Buildings)

OTHER STATEGIC INNITIATIVES (Cont) PARLIAMENTARY PRECINCT DPW (in consultation with Parliament and Presidency) has completed a draft needs assessment and space planning Need for additional office accommodation – resulting in a need to build a “Ministry Building” PARLIAMENTARY VILLAGES DPW (in consultation with Parliament) is investigating alternatives to improve accommodation at Parliamentary Villages

OTHER STATEGIC INNITIATIVES (Cont) CONTRACTOR INCUBATOR PROGRAMME Aimed at providing access to black-owned companies to construction opportunities above R1 million Approximately 90 contractors have been selected and registered with the CIDB with a Potentially Emerging (PE) status DPW in a process of identifying Regional Office projects to engage the contractors

OTHER STATEGIC INNITIATIVES (Cont) RE-ALIGNED ECDP The current ECDP was re-evaluated and several weaknesses identified for correction / improvement Aimed at providing access to black-owned companies to construction opportunities below R1 million Contractors to be linked to learnership programmes and be given opportunities to sustain and grow to higher categories A separate Directorate will be created (within the Operations Branch) to implement the programme

OTHER STATEGIC INNITIATIVES (Cont) LEASING OF OFFICE ACCOMODATION DPW is empowering its employees by organising training on basic property management and negotiation skills in the 2006/2007 financial year, to ensure that the State is paying competitive tariffs DPW wants to improve the conditions under which civil servants work under in terms of having properly maintained leased properties, as a result landlords are allocated functionality points for including maintenance plans .DPW will ensure that pro-active maintenance is done as opposed to being re-active.

OTHER STATEGIC INNITIATIVES (Cont) LEASING OF OFFICE ACCOMODATION (Cont) The inadequate number of black-owned landlords results in a skewed distribution of lease budget expenditure (less than 5% to empowered companies) Operations Branch is currently assisting the Policy unit to draft a BEE acquisition strategy so as to promote BEE participation in property industry