1. 1 Strategic Direction and Key Challenges for the NDPW Presentation to the Portfolio Committee on Public Works on 26 May 2004 by James Maseko, Director-General: National Department of Public Works (NDPW)

2. 2 Presentation Outline Introduction Strategic Direction: Vision and Mission Achievements of the last Ten Years Departmental Strategic Goals: 2004 – 2007 Core Business of the department High-level Organisational Structure Scope of Responsibilities Programmes and Budget Key Challenges Key Departmental Initiatives Conclusion

3. 3 Introduction The presentation is on the NDPW’s Strategic Plan for 2004 – 2007 With the Select Committee being newly constituted a synopsis of the Ten Year Review is included

4. 4 Vision and Mission Vision “To be a World Class Public Works Department ” Mission Efficiently manage the asset life cycle of immovable assets under the Department’s custodianship; Provide expert advice to all three spheres of Government and parastatals on immovable assets; Contribute to the national goals of job creation and poverty alleviation through the coordination of public works programmes nationally, of which the Expanded Public Works Programme (EPWP) forms an integral part; and Provides strategic leadership to the Construction and Property Industries.

5. 5 Achievements over Last Ten Years Produced 2 White Papers in 1997 and 1999: - “Public Works towards the 21 st Century”; - “Creating an Enabling Environment for Reconstruction & Development of the Construction Industry”; and Six statutes in 2000: For the built environment Transformation of the Department to promote diversity – 68% Black and 33% female managers

6. 6 Achievements over Last Ten Years Cont’d Planned and implemented 7692 construction projects worth ±R10 billion sustaining 15 000 jobs over last 10 years Introduction and Expansion of Repair & Maintenance Programme to address the maintenance backlog on national State-owned property 1216 State-owned properties worth R67 million donated for land reform purposes 119 Properties valued at R130 million donated to municipalities for low-cost housing 66% of 203 State-owned properties worth R220 million disposed of for commercial purposes went to BEE companies

7. 7 Achievements over Last Ten Years Cont’d 3822 million Emerging Contractors registered on ECDP database – since 1998 contracts to total value of R145 million awarded to them Strategic Empowerment Programme for women launched in 2001 with projects in the amount of R199 million awarded to women NDPW led Construction Industry in implementation of Affirmable Procurement Policy targeting ABEs – between 2001 and 2003 R1, 4 billion of construction budget allocated to ABEs Building of the Berlin Chanery at a cost of R115 mill. And the Kinshasa Chanery and Diplomatic Village for R76 mill. Establishment of Construction Industry Development Board

8. 8 Departmental Strategic Goals: 2004 - 2007 Provide Strategic Leadership to the Construction and Property Industries Improve Service Delivery Contribute to the National Goals of Poverty Alleviation and Job creation Promotion of Black Economic Empowerment Contribute to the African Renaissance/NEPAD Good Corporate Governance Develop HR Plan supporting Business and Government imperatives

9. 9 Core Business of the Department Provision of accommodation Coordination of the Expanded Public Works Programme Transformation of the Construction and Property Industries Custodianship of all National Government Properties

10. 10 New High-Level Organisational Structure REGIONS: Cape Town Pretoria Johannesburg Bloemfontein Durban Port Elizabeth Mmabatho Nelspruit Polokwane Umtata Kimberley Staffing: 5549 posts - 1084 vacancies

11. 11 Scope of Responsibilities Largest property portfolio in Southern Hemisphere 36 056 Land parcels – 11, 2 mill. Hectares 122 219 Buildings/structures – 24, 9 mill. m 2. 219 Leased Properties (4, 5 mill. hectares) costing R1, 037 bn p. a. Maintenance backlog estimated to be R12, 7 billion – 33, 665 buildings in poor or very poor condition

12. 12 Four Budget Programmes Programme One: Overall management of NDPW e.g. policy development, implementation strategies and providing support services Programme Two: Provision of land, and development, management and maintenance of accommodation to ensure that national departments & institutions have a built environment that meets their financial, social & technical requirements

13. 13 Budget Programmes Cont’d Programme Three: -Promotion of sustainable growth of Construction & Property Industries whilst fast-tracking their transformation & development -Custodial function of national state property portfolio under NDPW, and -Address poverty & unemployment through EPWP

14. 14 Budget Programmes Cont’d Programme Four: Provision for various services, including o losses incurred in State housing guarantee scheme, o maintenance of war graves & national memorials, o decorations for public functions such as State funerals & inaugurations, o acquisition of vehicles for Departmental use, Skills Development Act levies and financial assistance to Parliamentary Villages Management Board

15. 15 Comparison of Requested and Approved Budgets AMOUNT 2004/2005 DIFFERENCE REQUESTED ALLOCATION R millions R millions R millions 1 Programme 1: Administration 230 240 -10 2Programme 2: Provision of Land & Accommodation: 5,217 4,493 723 3Programme 3: NPWP 74 69 5 4Programme 4: Aux. & Assoc’d 17 17 0 TOTAL 5,538 4,820 718

16. 16 Under-funding Implications Under-funding of Leasing, Maintenance and Municipal Taxes and Services have legal and social implications such as termination of contracts, services and litigation wrt to the Occupational Health and Safety Act. In view of the under-funding, service delivery by the Department will be compromised.

17. 17 Key Challenges Clarify the Department’s mandate Formulate a Service Delivery Improvement Program & Service Standards to improve service delivery to client departments Develop a comprehensive BEE policy Transformation of the Construction and Property Industries Further develop the immovable asset register Address the maintenance backlog Successfully coordinate the implementation of the EPWP Skills development to support NDPW’s core business

18. 18 Key Challenges Cont’d  Under-funding of Departmental programmes and projects  Ensure that the custodianship of government immovable assets is carried out effectively and efficiently in the interest of the state as a whole  Ensure that the total cost of accommodating Government are allocated to government programmes in a transparent manner.

19. 19 Key Departmental Initiatives Implementation of the Expanded Public Works Programme (EPWP). The EPWP will be implemented in the infrastructure, economic, environmental and social sectors Compilation of transformation charters for the Construction and Property Industries. Incubator strategy for emerging contractors and increased support for women-owned enterprises NEPAD: Joint initiative with Department of Defence on developmental peace keeping skills Enhancement of good corporate governance in public entities under NDPW.

20. 20 Key Departmental Initiatives Cont’d Formulation of a Bill based on Government-wide Immovable Asset Management Framework (GIAMF) which: -Requires government bodies to utilise immovable asset management (IAM) techniques. -Sets out minimum management standards for the four asset management processes of strategic planning, acquisition, maintenance and management, and disposal. -Sets requirements for plans -Clarifies the vesting of properties

21. 21 Key Departmental Initiatives Cont’d Vesting of immovable properties and asset register revamp Implementation of ‘user pays’ principle (clients pay for their accommodation) Service delivery improvement – development of service delivery improvement programme, service standards and service level agreements with clients Acquisition of new and compatible information technology and management information systems Implementation of risk management plan and development of knowledge management system Skills development for the built environment

22. 22 Conclusion THANK YOU