1. PROGRESS REPORT: Infrastructure Development Function Transfer
Minister of Public Works
Hon TW Nxesi, MP
Minister of Defence and Military Veterans
Hon N Mapisa-Nqakula, MP
PROGRESS REPORT: Infrastructure Development Function Transfer
STANDING COMMITTEE ON APPROPRIATIONS
27 February 2019

2. FUNDING SUMMARY 582 000 000 Total Required 1 194 196 606 1 139 744 504
Financial impact to implement the Facility Management Strategy including the
transfer of the Infrastructure Development Function from DPW
Compare White Book to Required Funding
Total Required
RESTRICTED

3. INTRODUCTION SCOA – 27 February 2019
The Standing Committee on Appropriations (the Committee) invited the Department of Defence, National Treasurery and DPW to brief it on the progress made regarding the shift of the Infrastructure Development Function from the Department of Public Works to South African National Defence Force (SANDF).
In its submission, the SANDF is requested to include the following:
Progress made by the Inter-ministerial Task Team to Outcome of discussions with the Department of Public Service and Administration (DPSA);
The number of its budget allocation towards Compensation of Employees; and
It List of emerging challenges (if any).

4. Inter-Ministerial Task Team
Progress
Inter-Ministerial Task Team
The Inter-Ministerial task team had met and cooperation established.
Agreement Reached: Continue with the Infrastructure Development Function transfer from DPW to the DOD.
Current issues to be addressed:
Due diligence on properties to be transferred and finalisation of User Immovable Asset Register (UIAR) (In some cases municipalities will be involved)
Funding for capacity creation within the DOD Defence Works Formation
Funding for current shortfall in DOD Lease Portfolio, Refurbishment and Capital Works

5. Number of its budget allocation towards Compensation of Employees
Current Personnel
Number of its budget allocation towards Compensation of Employees
Current Number of DOD Members involved in Facility Repairs and Maintenance.
Facility Repair and Maintenance Personnel is RM represent 21.9% of the DOD Facility Budget as reflected within the White Book.

6. Personnel Requirement
DPSA: DOD Organisational Structures and Personnel Increases – Defence Works Formation
DOD in process to develop organisational structures to accommodate:
Construction Professionals:
Program and Project Managers (30),
Architects/Engineers/Quantity Surveyors/Geometricians/Landscape Architects, (59) and;
Construction/Facility Legal Staff (4).
Infrastructure Development Function Support Staff to take over repairs, planned maintenance and infrastructure development administration:
Condition Assessors/Building Inspectors (116),
Factotums (371),
Construction Workers and Grounds men (733), and;
Utility Management Support Staff (52).
DPSA to assist and guide DOD staff increases based on the function shift.

7. Logistic and ITC Requirement
OPERATIONAL SUPPORT REQUIREMENT FOR CAPACITY CREATION WITHIN THE DOD FOR THE INFRASTRUCTURE DEVELOPMENT FUNCTION TRANSFER
Logistics: Procurement of Response Team Vehicles, Equipment and Tools, Repair and Maintenance Material
Information Communication and Technology: Software and Hardware (UIAM, BIMS, Project Management, BI, etc.)
Without the required funding to capacitate the DOD with capability and capacity it would be worse off after transferring the Infrastructure Development Function

8. Emerging Challenges
Finalisation and due diligence on the extent of the portfolio to be transferred to the DOD
Funding for Capacity Creation
Current DOD Facility Challenges:
Thaba Tshwane Bulk Services and Dolomite areas must be addressed immediately to prevent further deterioration and destruction
Rapid increase of Lease Hold Portfolio (Tshwane Metro Area make up 90% of Leasehold Expenses).
Sewage systems need urgent attention at DOD Facilities
Refurbishment and replacement of Security Infrastructure (Fences, Guard Towers, etc.) at Military Facilities.

9. Projection based on Lease contract renewal and escalations
Emerging Challenges
DOD LEASE PORTFOLIO
Projection based on Lease contract renewal and escalations
DOD must embark on a Lease Replacement/Reduction Program to built own facilities on state owned land.
(90% of Leases is within Tshwane Metro)
Refer: Minister of Finance Budget Speech 2018)

10. Capital Works and Refurbishment Shortfall
Emerging Challenges
Capital Works and Refurbishment Shortfall
Note: The Capital Works Program exclude funding for the Lease Replacement Program
Note: The original White Book figures indicate previous underspending by DPW.

11. Way Forward Facility Repair and Maintenance approach
Emphasis on:
1st Line Repair and Maintenance
Preventative Maintenance
Less complex capital works and refurbishment
Current
To Be
Condition
Capital injection
Proper Repair and Maintenance Program
Time
Facility Repair and Maintenance approach
Older buildings become more costly to repair and maintain
Buildings to be refurbished
Buildings to be demolished and replaced
Deterioration of Facilities without maintenance increase exponentially in cost to repair

12. Opportunities
DOD have adequate land available to develop own facilities for the Lease Replacement Program.
The DOD has developed a Lease Replacement Strategy that if funded it could reduce the Lease expenses up to RB1 per annum within 10 years.
Support staff could be recruited from current Career Plateau Members in providing a second career in Facility Management, Construction Professions, Trades and Administration.

13. End
THANK YOU