Department of Transport and Public Works Expanded Public Works Programme (EPWP) Directorate: Provincial Coordination National Parliament: Portfolio Committee Meeting – 3 March 2010 1

Outline of presentation … EPWP: Overview Provincial Mandate: Strategic Directive Targets and Achievements (3rd quarter) Key Challenges Conclusion 2 2

EPWP: Overview “The nation will recall that during the 2009 SONA, I announced that the EPWP would create 500 000 work opportunities, by December 2009. Let me reiterate that these are not jobs created in the mainstream economy. These are job opportunities created to provide unemployed people with an income, work experience, and training opportunities” (President, Jacob Zuma: SONA, 11 February 2010) Premier, Helen Zille reminded us in the SOPA on 19 February 2010 that: “In the opportunity society, the state has a duty to do for people what they cannot be expected to do for themselves. In an opportunity society, those who take responsibility for their lives and use their chances flourish. They understand that taking control of their own lives is infinitely preferable to a lifetime of dependency on the state.” 3 3

Background Endorsed by National Cabinet – November 2003 As one of government’s initiatives to half unemployment and poverty by 2014 Aim: bring the unemployed into a temporary working environment during which time they’ll obtain skills, gain work experience and receive a stipend To enhance their chances of future employment and or trigger their “entrepreneurial spirit” Phase 1: 2004 – 2009 with a national set target of 1 million work opportunities (achieved during 2008 – 1 yr ahead of schedule) 4 4

Phase 2: To create 4,5 million work opportunities (equivalent to 2 million FTE’s) for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services.

Comparison between phase 1 and phase 2 of EPWP 2004 – 2009: creation of temporary work opportunities and income for at least 1 million unemployed South Africans (any no. of days worked that included training and stipend qualified as a work opportunity) 2009 - 2014: creation of 4.5 million work opportunities which equates to approximately 2 million full time equivalent (FTE) with minimum stipend of R50.00 per day. Work Opportunity = 100 days of work (min R50.00 per day) FTE = 230 days of work (min of R50.00 per day) To provide needed public goods and services, labour-intensively, at acceptable standards, through the use of mainly public sector budgets and public and private sector implementation capacity Public bodies from all spheres of government (in terms of their normal mandates and budgets) and the Non State sector (supported by government incentives), deliberately optimizes the creation of work opportunities for unemployed and poor people in South Africa through the delivery of public and community services. EPWP perceived as an add-on, additional work without any resources Introduction of Incentive Grant to encourage and reward implementing bodies for over performance Earmarked funding for training on EPWP projects, managed via Department of Labour - Strong emphasis on training and skills development (compliance) Department of Labour, EPWP funding for training has been re-directed to Higher Education Training to be funded via normal budgets Emphasis on number of days worked and minimum stipend Exit strategies designed for each sector and the identification of possible exit routes for workers once they leave EPWP None – it is acknowledged that in an economy where there are insufficient work opportunities the creation of exit strategies is not possible (increase access to opportunities to more people Source: EPWP Consolidated Programme Overview: Phase 2 (NDPW, January 2009)

Critical Success Factors: Phase 2 Make creation of paid work the primary objective of the programme Locate clear political and administrative accountability for EPWP work creation targets across all spheres of government Align EPWP outputs with the core mandates and programmes of implementing public bodies Provide fiscal incentives to accelerate scaling up of EPWP outputs across all spheres of government Organize non-state capacity to deliver additional EPWP work opportunities On 17th February, Mr Pravin Gordhan (Minister of Finance) called on government to, “…again use this remarkable national capability to energetically and urgently address the problems of jobs, growth and poverty.” He then confirmed governments commitment to the EPWP by allocating an estimated total of R52 billion for various EPWP projects over the next 3 years and indicated that this allocation includes an additional R2.5 billion aimed largely at rural areas that will support labour-intensive projects in the social, non-state and environmental sectors. (Budget Speech, 17 February 2010

Incentive Grant The EPWP incentive is based on paying all public bodies that create work above a minimum threshold for the EPWP target group an incentive of R50 per person day of work created. ( Rural Municipalities have no minimum threshold). Infrastructure - 09/10 and roll out to other sectors in 10/11 Eligible public bodies that want to participate in the incentive will enter into an agreement with National DPW While indicative performance targets and incentive amounts are set for each eligible public body, they will only be able to claim the incentive upon proving that work has been created Basis for measuring EPWP performance Number of FTE’s per million Rand of infrastructure budget Each public body ( apart from rural municipalities) must meet a minimum eligibility threshold before they can start accessing the incentive The incentive is not paid out for work created below the eligibility threshold, but is paid for all work created above this threshold

Eligibility: In order for provinces and municipalities to become eligible for the incentive they must: Report to National DPW on the EPWP ( 07/08 report used to calculate incentive amounts for the 09/10 financial year - infrastructure). Meet minimum employment creation targets based on their available budgets Meet equity targets for number of youth, women and disabled EPWP workers Agreements: Eligible public bodies will enter into agreements with National DPW which will specify: Targets to be met by the public body Amounts that can be claimed by the public body for reported EPWP work created Reporting and verification and audit requirements through the EPWP Management Information System EPWP workers may not be paid less than R50 per day Appropriation of funds Eligible public bodies should incorporate the incentive allocation into their budgeting and planning process but take into account that payment by National DPW will occur quarterly, after employment has been created

Provincial: Mandate Department of Transport and Public Works – responsible for management of EPWP as a Lead Intervention as identified under the Provincial Growth and Development Strategy (PGDS) mandated to drive, coordinate and support: institutionalisation planning implementation compliance monitoring and reporting

Strategic Directive: EPWP Lead Intervention Background In response to the lessons learned during EPWP Phase 1 and the challenges set by the renewed approach of Phase 2 the Chief Directorate: EPWP and the Chief Directorate: Policy Implementation in the Department of the Premier developed a Strategic Directive to effect its mandate to drive, coordinate and support the institutionalizing, planning, implementation and reporting of EPWP in the province. (Approved by Provincial Cabinet on 2 September 2009 Status: Implementation in progress)

Strategic Directive: EPWP Lead Intervention Key objectives Provide a planning platform for EPWP per sector with a key output being a sector implementation plan; Drive accountability and accurate reporting per department and municipality on a monthly basis; Develop and document best practice; Commission relevant research, and Recommend and implement regulatory framework for Provincial EPWP Implementation

Expanded Public Works Lead Intervention Functional Management Framework Provincial Cabinet PREMIER Steering Cabinet Committee PREMIER Economic Cabinet Committee Provincial Ministers Ministerial Top Management Meeting Minister of Transport and Public Works Departmental Senior Management Meeting Head of Department of Transport and Public Works EPWP Steering Group Chair: Assistant Executive Manager: Expanded Public Works Programme CD: Policy Implementation Support: (DotP) Secretariat: CD: EPWP Infrastructure Work Group Chair: Executive Manager: Client & Regional Services Social Work Group Chair: Departmental Representative:- Department of Social Development. Environmental and Culture Work Group Chair: Departmental. Representative Department of Environmental. Affairs & Development. Planning Non-State Work Group Chair: To be determined Members Internal & External Stakeholders EPWP Steering Group

Provincial Steering Work Group Provide a platform: where provincial government and its stakeholders, where applicable, can deal with the technical aspects of all cross-cutting issues as assigned to the Economic Cabinet Committee; Serve as planning platform: where representatives from the relevant National-, Provincial Departments, municipalities and its stakeholders can be brought together in a co-operative planning and implementing partnership around specific issues, within the context of its particular expertise and/or functional contributions to engage in multi-year programme design; Create an opportunity for co-operative planning to enhance the concept of public private partnerships; Ensure that the necessary structures are in place and funds available to manage the planning, implementation and monitoring of projects; Formulate a plan to meet job creation targets and identify EPWP projects; Ensure that all Memoranda of Agreement are entered into; Source document: ( Strategic Directive: EPWP Lead Intervention – approved by Cabinet - 2 Sept 2009)

Provincial Steering Working Group Constituency Portf Comm 020310\Steering Group Constituency.doc

Sector Working Groups Championing the EPWP in the sector Liaison with other departments and stakeholders in the sector In consultation with the other public bodies in the sector, producing a sectorial plan to; Identify areas for expansion of EPWP approaches Set targets for expansion Describe how the expansion is going to be achieved Facilitating the meeting of common needs in the sector (e.g. sectorial training and qualifications frameworks, sectorial guidelines) Monitoring implementation against the sectoral plan; Linking EPWP training to exit strategies aligned to growth areas as identified through the MEDS/LEDS; Producing sectoral progress reports for the Steering Group as directed; and Appoint and / or co-opt additional members as and when required

Working Group Constituency Portf Comm 020310\Work Groups.doc

Secretariat: EPWP Provincial Coordination Communicate EPWP Targets, prescribes within the sector (in line with national and provincial guidelines) Coordinate the development of the sector implementation plans Coordinate the Sector specific input towards the development of a Provincial Communication plan Compilation of a narrative monthly / quarterly report reflecting activities within the sector Facilitate an Annual Report on the Sector Implementation Plan Manage the research and analysis of programmes and projects as requested by the working group Monitor the roll-out of the Sector Implementation plan Coordinate the provision of professional, technical and administrative guidance to the Working Group, as required Ensure interventions are initiated and implemented

EPWP Provincial Institutional Framework

Targets and Achievements (3rd Quarter) Table 1: Targets per Sector for the Western Cape (2009-2014) Infrastructure Environmental Social Totals   W.O. FTE's 2009-2010 8,230 3,223 3,833 748 11,744 9,212 23,807 13,183 2010-2011 9,383 3,861 3,987 957 14,092 10,264 27,462 15,083 2011-2012 12,071 5,045 5,111 1,356 19,377 13,686 36,560 20,087 2012-2013 15,693 6,512 7,028 1,865 27,451 18,818 50,171 27,195 2013-2014 19,753 8,108 9,584 2,543 37,433 25,661 66,769 36,312 Targets per Municipality (2009-2014) 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 W.O. FTE's 11,523 3,946 13,137 4,735 16,901 6,187 21,971 7,986 27,656 9,944 Source: EPWP Phase II Business Plan Draft 1 January 2009

Targets for eligible implementing bodies Table 2: Incentive Grant Allocations and Targets Department FTE Performance Target Eligibility Threshold Target Indicative Allocation (National Financial Year) 1Transport & Public Works 2,686 3223 R18,523,000.00 Total 3,223 Municipality City of Cape Town 2,562 1,967 R3,423,000.00 2Eden District 87 R500,000.00 George 134 R773,000.00 Oudtshoorn 58 R333,000.00 Knysna Mossel Bay Theewaterskloof 277 R1,594,000.00 3,235 R7,289,000.00 Source: 2009 DORA (also see notes below) Notes: - Only Infrastructure eligible for incentive 10/11 (one Provincial Department and seven municipalities) 2The “0” eligibility threshold target is only applicable to rural municipalities. Rural municipalities are encouraged to create work opportunities and are able to claim against the indicative amount once FTE’s are created and reported.

% Under / over performance 3rd Quarter Performance against targets (Cumulative 1 April – 31 December 2009) The following tables illustrate the performance per sector: Sector Target Performance % Under / over performance Infrastructure 8,230 10,587 128 % Social 11,744 11,990 102% Environmental 3,833 465 12% Non State 500 562 112% Total 24,307 23,604 Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010) Notes: Provincially 97% of the annual performance target was reached at the end of 3rd quarter Portf Comm 020310\Sector Project Information.doc

Municipal financial year starts 1 June 2010 (National 2nd quarter) The following tables illustrate the performance per eligible municipality: Municipality FTE Performance Target Eligibility Threshold Target Achievement (Cumulative) City of Cape Town 2,562 1,967 967 Eden District 87 George 134 149 Oudtshoorn 58 658 Knysna Mossel Bay Theewaterskloof 277 234 Total 3,235 2008 Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010) Notes: Municipal financial year starts 1 June 2010 (National 2nd quarter) Overall performance = 62% of annual performance target was reached after the 2nd quarter (50% of time)

Notes Incentive Grant Payouts: National Financial Year Infrastructure Sector Department FTE Performance Target Eligibility Threshold Target 3Indicative Allocation (National Financial Year) Actual Payment 1st Quarter 2nd Quarter Estimated Payment 3rd Quarter Estimated 4th Quarter Payment 1Transport & Public Works 2,686 3223 18,523,000 11,089,000 3,152,000 4,200, 000 Total 3,223 2Municipality Indicative Allocation (National Financial Year) City of Cape Town 2,562 1,967 3,423,000 Eden District 87 500,000 George 134 773,000 24,000 92,000 Oudtshoorn 58 333,000 402,000 328,000 Knysna Mossel Bay Theewaterskloof 277 1,594,000.00 137,000 287,000 3,235 R7,289,000.00 563,000 707,000 Source: National Department of Public Works, EPWP Audited 3rd Quarter Report (February 2010) Notes: 1DTPW – overall on track with performance (Roads Infrastructure and Public Works performance) 2Municipal financial years not aligned to National (municipal 1st quarter – National 2nd quarter) Notes

EPWP 3rd Quarter Overall National Consolidated per Province EPWP 3rd Quarter Overall National Consolidated per Province ..\REPORTS\0910\Portf Committee 020310\3rd Quarter Audited Report 2010.xls

Municipal Participation Key Challenges Key Issue Intervention / Recommendation Municipal Participation Initially - no deliberate planning to involve municipalities Understanding of roles & responsibilities - participation Different financial framework makes it difficult to synchronize planning and resource allocation Municipal by laws differs from municipality to another Alignment of different financial years as part of implementation planning Participate in IDP review process to ensure EPWP is incorporated at that level. IDP’s to incorporate sub programmes Encourage municipalities to have a dedicated EPWP unit using best practice from participating municipalities District municipalities to participate in provincial steering committee 2. Environmental Sector Ownership: lead department Under reporting Establishment of Provincial Steering Group Urgent Sector working group meeting scheduled for 16 March 2010

Intervention / Recommendation Key Issue Intervention / Recommendation 3. Training National Skills Funding (via DOL) re-directed to Higher Education Limited funding (focus on technical skills vs life skills) Foster and strengthen partnerships with SETA’s (sector specific) to access funding Implementing bodies to include training as part of project budget 4. National Supporting Mechanisms Access to and down time of Web Based Systems Contractual Obligations within province National funded projects being implemented provincially (reporting) Adherence to timeframes National to critically review Copies of SLA to be provided to provincial coordination unit To obtain copy of business/implementation plans from relevant National Departments Communication (National Coordinators Meeting: 3 March 2010) 5. Compliance (Code of Good Conduct) Understanding of Ministerial Determination (implementing bodies and participants Drafting of implementation plans to include induction / orientation programmes 6. Best Practice and Achievements Records of impact assessment, best practice models, KAMOSO Awards Evaluate existing records to improve and identify gaps Provincial Kamoso Awards Ceremony

Conclusion Ongoing awareness and advocacy Provincial Steering Group established (23 March 2010) Sector Working Groups operational (as per Strategic Directive) Increase support to municipalities Identify key stakeholders for expansion, exit strategies (SETA’s, private sector, non governmental organizations, etc) Province has potential to exceed National targets “None of us can rest or sleep peacefully until every South African can say, I can see a better future. I can find a job. I can learn a skill.” (President, JG Zuma)

Enkosi Thank You Dankie