1. PORTFOLIO COMMITTEE PRESENTATION
NATIONAL DEPARTMENT OF PUBLIC WORKS
28 MARCH 2001

2. Accommodation and Asset
STRUCTURAL OVERVIEW
National Public Works
Programme N D P W
Accommodation and Asset
Management
Finance and Corporate
Services

3. MISSION
To ensure that National State Departments of South Africa have a Built Environment that meets their financial, technical and social requirements through the:
Provision, development and maintenance of accommodation
Acquisition and disposal of state land
Management and maintenance of State Property Portfolio

4. MISSION Cont’d To implement the National Public Works Programme by:
Creating assets through the Community Based Public Works Programme
Influencing and stabilising the Construction and Property Industries and ensuring that infrastructure is provided in a way that creates jobs, empowers communities and develops human resources.

5. NATIONAL PUBLIC WORKS PROGRAMME

6. National Public Works Programme (NPWP)
Community Based Public Works Programme
Construction Industry Development Programme

7. COMMUNITY BASED PUBLIC WORKS PROGRAMME (CBPWP)
CBPWP is a specific job creation and poverty relief programme of government, targeted primarily at the rural poor.
Construction of public assets – short term employment opportunities
Creating sustainable employment opportunities – facilitating micro business opportunities
Targeting poorest of the poor

8. CBPWP Pilot Project Era 1994 – 1996 Realigned CBPWP 1996 - Mid 1999
Labour Based Approach
Supply Driven
Realigned CBPWP Mid 1999
Demand Driven Approach by Communities
Targeting – Women and Youth
Clustering of projects
0Implementation and Monitoring
Categorization of Projects

9. CBPWP New Dimensions - Mid 1999 to Present
Community Production Centres (CPCs)
Multi Purpose Centres (MPCs)
Land Rehabilitation Programme
Clean and Green Programme
Youth Working Towards Environmental Accessibility(YOWOTEA)
HIV/AIDS Infrastructure Support Programme

10. CBPWP - Temporary Employment Opportunities Created
Women
Youth*
Disabled*
Totals
5300
5020
169 -
10320
18512
10848
11334
269
29360
6348
5008
5119
199
11355
11022
8208
8772
289
19230
Total
41182
29084
25394
757
70266
*The Youth and Disabled are part of the number of Men and
Women and can thus not be calculated into the total number of
Jobs created.

11. CBPWP – Expenditure to Date
Year
1998/99
1999/00
2000/01
TOTAL
Budget
274,0
377,0
349,0
1 000,0
Expenditure
270,9
366,1
352,4
989,4
% Expenditure
99 %
97 %
101 %

12. Construction Industry Development Programme(CIDP)
To develop and transform the South African Construction Industry

13. CIDP
Construction Industry Development Board(CIDB) Act(Act No. 38 of 2000)
Council for the Built Environment Bill,2000
Construction Industry Development Board
April 2001
6 Councils for the Built Environment Professions
June 2001

14. CIDP NDPW will financially support Total amount of R13,6 million
Establishment of CIDB
The new Council for Project and Construction Management
Council for Built Environment
Total amount of R13,6 million

15. Developments within CIDP
To enable government to monitor growth, performance, delivery and transformation of the industry.
A study on the Current State of the Industry
Partnering approach with contractors and parties involved in the supply chain.
Projects worth R600 million identified
Developing the role of the Built Environment Professions

16. CHALLENGES - CIDP Delayed Payments
Targets set for the reduction of delayed payments
10% for selected provinces
20% for National Department of Public Works
Development and Adoption of a Client Charter by National and Provincial Department

17. CHALLENGES - CIDP Empowerment of Black Contractors Training Campaign
Procurement Workshops
CET training programme developed with ILO
Women in Construction targeted.
Mentoring Programme
Access to Finance
R20million commitment mobilised from IDC
Banking Council to be approached by Minister

18. ACCOMMODATION
AND
ASSET MANAGEMENT

19. DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
CLIENT SERVICES
CLIENT FOCUS
SERVICE AGREEMENTS
BUDGETS
PROJECT INITIATION BY CLIENT SERVICES
MAJOR PROJECTS
RAMP PROJECTS FOR PRISONS, LIFTS IN GOVERNMENT BUILDINGS R1,2 billion
KHAYELITSHA MAGISTRATES OFFICE R26,9 million
KOKSTAD MEDIUM SECURITY PRISON R84,0 million
EMPANGENI PRISON : HOUSING R58,0 million

20. DISPOSAL OF PROPERTIES
DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
DISPOSAL OF PROPERTIES
ADJUDICATION CRITERIA
PRICE
CONCEPT PLAN
FINANCIAL VIABILITY
TENDERERS EXPERIENCE AND EXPERTISE
ECONOMIC EMPOWERMENT
SOCIO-ECONOMIC OBJECTIVES
PROPERITIES TO BE DISPOSED
SUMMERSTAND - PE
MIDRAND
SILVERMINE – CAPE TOWN
PMB – FORMER COURT
MILITARY BASES

21. DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
DISPOSAL OF PROPERTY
PROGRAMME FOR DISPOSAL : MILITARY BASES
APRIL : BOURKES LUCK
MAY : ZWARTKOP AFB
JUNE : GEORGE ARMY COLLEGE
JULY : YSTERPLAAT AFB
AUGUST 2001 : CAMDEN
OCTOBER 2001: WATERKLOOF AFB

22. PROPERTIES AND FACILITIES MANAGEMENT
DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
PROPERTIES AND FACILITIES MANAGEMENT
REPAIR AND MAINTENANCE PROGRAMME
CORRECTIONAL SERVICES
LIFTS
DEPARTMENT OF DEFENCE

23. CORRECTIONAL SERVICES
DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
CORRECTIONAL SERVICES
NUMBER OF PRISONS : 33
BUILDING AREA COVERED (33 PRISONS) : 2,030,00 m²
CONTRACTS AWARDED : 55
NUMBER OF PRISONERS IN REPAIR AND MAINTENANCE : 95,500 63% OF TOTAL

24. COST MANAGEMENT : CONSTRUCTION AND CONSULTANTS
DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
COST MANAGEMENT : CONSTRUCTION AND CONSULTANTS

25. DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT

26. APOPS
Procurement model which is a PPP which enables the Private Sector to participate in
Finance
Design, Construction
Management and Maintenance
of Public sector facilities for a period of 25 years prior to transferring the asset back to the state.

27. APOPS - Projects Department of Correctional Services
Maximum Security Prisons
Bloemfontein prisoners
Louis Trichardt – 3024 prisoners
Department of Education
Head Office – Business Case approved Dec 2000

28. APOPS - Projects Department of Foreign Affairs
Head Office – Business Case submitted to National Treasury
Union Buildings and Parliament
Negotiations currently ongoing

29. DEPARTMENT OF PUBLIC WORKS
March 2001
ACCOMMODATION and ASSET MANAGEMENT
LEASING PROJECT
700 Leasing Files Identified as Problem Files
R worth of incorrect monthly lease
Payments were stopped
R identified as fruitless expenditure
(combination of over payments for vacant properties
R recovered as being incorrect amounts
paid to landlords so far.

30. FINANCE AND CORPORATE SERVICES

31. FINANCE AND CORPORATE SERVICES (F&CS)
Human Resource Development and Management
Registration with the relevant SETA
Information Technology
MOU with SITA

32. F&CS Fraud Awareness and Special Investigation
An amount of R 2,266, is being investigated in the following regions
Johannesburg
Pietersburg
Durban
Head Office
Last Year:
8 people were dismissed
3 pending suspensions
2 out of 3 above found guilty – Process for termination initiated

33. F&CS Financial Management Regional Financial Reviews introduced
Inadequate Internal Controls
Decentralisation of Functions
Review of Budgeting Process
Multi-year plans
Expenditure Management
Implementation of PFMA
Risk Management Plan

34. MTEF ALLOCATION 2001/2002 -2003/2004 Vote 30: Public Works
2002/3
2003/4
Expenditure Component
R’000
Personnel Expenditure
Capital Works
76 145
Alloc. For Other Services
Function Shifts
650
715
787
Inflation and Related Adj.
46 229
66 574
77 881
Poverty Relief
Carry Through (2000/01)
(82 152)
(91 786)
(88 752)
Residual Allocation
TOTAL VOTE

35. BUDGET ALLOCATION PER PROGRAMMES
Programme 1: Administration
Programme 2: Provision of Land and Accommodation
Programme 3: National Public Works Programme
Programme 4: Auxillary and Associated Services
TOTAL: DEPT. BUDGET
R 168, 802,507
R 2,975,651,861
R ,510,612
R ,622,000
R 3,521,587,000

36. CURRENT INITIATIVES Capital Expenditure Project Devolution of Budget
Transformation Project
Decentralisation Project
Asset and Facilities Management

37. CAPITAL EXPENDITURE PROJECT
Ensuring that the budget for 2001/2002 for capital expenditure is spent.

38. CAPITAL EXPENDITURE PROJECT
Contributing Factors
Planning Process
Lead times and Building Programmes
Transfer of excessive funds to NDPW
Reprioritization by Client Departments
Capacity and non-performance culture within NDPW
Solutions
Review of Planning Process
Multi-year allocations of funds to NDPW
Client Liason Forum
Project Managers appointed
Major Construction Companies Involvement

39. DEVOLUTION OF BUDGET Responds to PFMA
Separation of ownership and occupancy roles
Centralised ownership and NDPW being the custodian/owner of state assets.
Business Model
Window of opportunity proposed for 5 years

40. BUSINESS MODEL CLIENT DEPARTMENTS NDPW State Accommodation Advisory
Services
Option Evaluation
Single Interface for need
Transversal Policies.
Customer Services
Lease Brokering
Lease Management
Municipal Services
Management
Custodian of State’s Fixed Asset
Landlord role – Asset Register(B/S), Rates and Taxes, Acquisition and Disposal, Ensuring Compliance, Maintenance and Construction Planning
Promoter of Construction Industry
Monitoring and Benchmarking

41. Transformation Project
AIM
To achieve operational efficiency
Objectives
Institutional Arrangements including the SPA
Organisational Structure for future NDPW
Organisational arrangements for the SPA
Best business processes for the proposed arrangements
Interim arrangements that will ensure a smooth transition towards future organisational arrangements.

42. Transformation Project – Cont’d
Progress to date
Consultants appointed for the initial phase
Transformation Task team appointed
Strategic Planning Session planned for the end of April

43. ASSET AND FACILITIES MANAGEMENT
Strategic Partner Alliance
Properties Developers Conference

44. Decentralisation Project
The project aims to equip regional offices to being viable and efficient business units.

45. Accommodation and Asset Management
LEGISLATION
POLICY /
MANAGEMENT
ISSUES
PROCUMENT
FINANCIAL
OPERATONAL EFFICIENCY, CLIENT FOCUSSED,
OPTIMALLY RESOURCED ORGANISATION

46. Pillars for Success Procurement Issues Policy/Legislation Issues RAMP
APOPS
Other PPP’s initiatives
Normal Tender Processes
Policy/Legislation Issues
State Property Agency Bill
Property Bill

47. Pillars for Success Financial Issues Supporting Management Issues
Implementation of User Pays
Financing Model for SPA
Business Case for SPA
Review of Accounting System
Disposal and Acquisition of Property
Accounting Standards Board
Supporting Management Issues
IT systems
HRD Strategy
Risk Management Plan
Transformation - Decentralisation

48. FLIGHT PLAN Capital Expenditure Project Decentralisation Project
Strategic Partner Alliance Establishment
Transformation Project
Business Case for SPA approved by Cabinet
State Property Agency Bill
Property Bill
Establishment of SPA
Financing Model for the SPA

49. Critical Success Factors
Acceptance of Protection Period – 5 years
Client Departments to budget and pay for
Municipal Services
Furniture for Prestige Accommodation
Valuation of state fixed assets
Implementation of a commercial accounting system(User Pays, Accrual Accounting)
Buy-in from key stake holders – National Treasury and Client Departments
Service Level Agreement Implementation