1. FEASIBILITY STUDIES INFORMATION SESSION

2. OVERVIEW  Background and approach the feasibility studies  Guidelines ♦Discussion of terms of reference ♦Sustainability of projects ♦Format of presentation of study findings ♦Navigation on DEAT website  Contractual matters

3. PROGRAMME DESCRIPTION The programme will draw a significant number of unemployed into the environment and tourism sectors of the economy to execute sustainable projects that support the focus areas of the department

4. OBJECTIVES OF THE PROGRAME Creating jobs Providing training to facilitate long term employment Linking people in “second” economy with opportunities and resources to enable participation in “first” economy

5. OBJECTIVES OF THE PROGRAME (cont) Integrating sustainable rural development and urban renewal  Creating land based livelihoods  Promoting community based natural resource management

6. OBJECTIVES OF THE PROGRAME (cont)  Developing natural resources and cultural heritage  Rehabilitation of natural resources and protection of biodiversity  Developing natural resources and cultural heritage

7. OBJECTIVES OF THE PROGRAME (cont)  Rehabilitation of natural resources and protection of biodiversity  Promoting tourism

8. KEY FOCUS AREAS  Sustainable Land Based Livelihoods ♦Working for the land ♦Working for wetlands ♦Removal of alien vegetation ♦Combating desertification

9. KEY FOCUS AREAS (cont)  Working for the Coast ♦Utilises SA coasts resources for development of coastal communities ♦Protection and rehabilitation of these resources

10. KEY FOCUS AREAS (cont)  People and Parks  Involving communities in conservation  Maximising benefits to communities of parks and protected

11. KEY FOCUS AREAS (cont)  Working for Tourism ♦Utilisation of eco-tourism sector to generate revenue for local communities ♦Involving communities in the tourism economy

12. KEY FOCUS AREAS (cont)  Working on Waste ♦Utilisation of waste management and recycling as entry points for building SMMEs and creating local jobs

13. LOCATION OF PROJECTS  Located country wide  40% in ISRDP and URP priority nodes  Projects will support the Integrated Development Plans of municipalities and the Provincial Growth and development Plans where possible

14. TARGET GROUPS  Unemployed persons  80% of workers must come from households with an income of less than R600 per month  Of this 50% must come from female headed households with an income of less than R600 per month  50% of persons employed should be women  25% of persons employed should be youth  2% of persons employed should be disabled

15. EXPECTED OUTPUTS  Over MTEF period ♦67 000 jobs ♦740 000 training days ♦75% of work contracted out to SMMEs ♦50% of SMME sub-contractors to be HDEs

16. EXPECTED IMPACT  Creation of temporary work while increasing employability of workers  Temporary employment will benefit up to 8 immediate dependants of a worker  Creation of infrastructure a catalyst for economic growth in immediate area of projects

17. MECHANISMS THROUGH WHICH PROJECTS HAVE BEEN IDENTIFIED  Identification through an extensive process of consultation with- ♦Line managers ♦Public entities ♦Local authorities ♦Provinces

18. PURPOSE OF FEASIBILITY STUDIES  Short lists were based on project proposals that provided only elementary concepts and estimated costs  Feasibility studies are required to ♦Assess viability of projects ♦Ensure that they target the poorest of the poor ♦Ensure that they meet poverty relief and EPWP criteria ♦Ensure that projects are aligned to IDPs ♦Determine the correct cost

19. New Enhanced Project Cycle Provincial Consultations Submission of Proposals Preliminary Selection by Committee 1 st Phase : Identification 2 nd Phase : Selection Commissioning Feasibility Studies Evaluation of Feasibility Studies Evaluation of Business Plans Final selection and approval by Committee 3 rd Phase : Contract Initiation Appoint Implementers Finalize BP & contract documents with Implementer Signing of contract documents by both parties Transfer of Initial payment to implementer 4 th Phase : Implementation & Monitoring Monthly reporting by Implementer Checking by PPM & then National Site Inspections Release of progress payment

20. New Enhanced Project Cycle ….cont Ad-hoc project visits Assess achievement of deliverables 5 th Phase : Quality Assurance 6 th Phase : Closure Completion report by implementer audited Reports evaluated by PPM Reports evaluated by National Reports recorded on system and project closed Annual audit reports 7th Phase : Evaluation of Impact

21. TOR for FEASIBILITY STUDIES  Background Documents ♦Code of Good Practice for employment conditions for Special Public Works Programme ♦Ministerial Determination: Special Public Works Programmes ♦The Environment and Culture Sector of the EPWP Sector Plan ♦EPWP: Consolidated Programme Overview and Logical Framework

22. TOR for FEASIBILITY STUDIES  Definition of the objective of the project within the context of the following focus areas: ♦Working for Tourism ♦Working for the Coast ♦Working on Waste ♦Sustainable Land Based Livelihoods ♦People and Parks

23. TOR for FEASIBILITY STUDIES POVERTY PROFILE OF COMMUNITY  Analysis of immediate community ♦Households with income < R600 p/m ♦Female headed households with income < R600 p/m ♦Unemployed persons over age of 18 as % of total population

24. TOR for FEASIBILITY STUDIES POVERTY PROFILE OF COMMUNITY  No of households with an income of<R600 p/m required as norm: ♦1 household per R10 000 of estimated value of project ♦50% of households must be female headed  Immediate community in relation to project includes all communities within daily commutable distance from project.

25. TOR for FEASIBILITY STUDIES  POVERTY PROFILE OF COMMUNITY ♦Unemployed persons as percentage of population is 25%

26. TOR for FEASIBILITY STUDIES  Community structures ♦Existing structures ♦Possibility of creating structures

27. TOR for FEASIBILITY STUDIES  Costing of project ♦Cost per standard item Implementers fees Professional fees Training Administration Materials and Equipment Transport Wages: SPWP Non-SPWP wages Marketing Community facilitation Other: specify VAT (output)

28. TOR for FEASIBILITY STUDIES  Costing of Project ♦Reasonableness of cost versus outputs ♦Monthly cash flow prediction

29. TOR for FEASIBILITY STUDIES  Availability of land ♦Period of right to occupy ♦Cost of land for full period ♦Cost to be funded by DEAT ♦Cost to be funded from other sources ♦Sources of funding and commitments  Duration of the project taking all factors into account

30. TOR for FEASIBILITY STUDIES  Temporary job creation ♦Number of temporary job days of persons employed in terms of the SPWP Clerical Labourer Managerial Professional Semi skilled Skilled Supervisor

31. TOR for FEASIBILITY STUDIES  Temporary job creation ♦The actual number of persons to be employed ♦Person days by women, youth and disabled  Permanent jobs to be created ♦Same categories as temp jobs

32. TOR for FEASIBILITY STUDIES  Training ♦Training to be categorised Literacy Numeracy Life skills Instructors Vocational and task related Business and management Environmental Leadership Other training

33. TOR for FEASIBILITY STUDIES  Training outputs ♦Modules ♦Learnerships ♦NQF credits ♦Skills programmes ♦Non-accredited training days ♦Accredited training days ♦No of people to attend

34. TOR for FEASIBILITY STUDIES  Training description ♦Assessment of skills level of community ♦Types of training to be provided as per previous slides ♦Correlation of training with job opportunities ♦How training will increase employability

35. TOR for FEASIBILITY STUDIES  Exit strategy ♦Identification of job opportunities on project completion ♦Identification of training opportunities on project completion

36. TOR for FEASIBILITY STUDIES  After care ♦Period ♦Funding ♦Responsibility

37. TOR for FEASIBILITY STUDIES  Owning agency ♦Written acceptance of assets where it is a province, municipality or public entity ♦Community based organisations’ founding statements must show that the community is the beneficiary

38. TOR for FEASIBILITY STUDIES  Financial sustainability ♦Not all projects are sustainable ♦Projected income and expenditure ♦Period required for sustainability ♦Alternative sources of funding to subsidise sustainability ♦Aftercare to achieve sustainability ♦Elements to be added to ensure sustainability ♦Possibility of gearing

39. TOR for FEASIBILITY STUDIES  EIAs  Availability of local implementers  Availability of SMMEs to act as subcontractors for implementers  Alignment with IDPs and priority nodes

40. FEASIBILITY STUDY PRESENTATION OF FINDINGS  Business plan to be completed  Business plan to be submitted electronically and as hardcopy with supporting documents

41. EVALUATION OF FEASIBILITY STUDIES  All studies will be evaluated  Communication with consultants will be via Project Control Sheet (PCS) that will be emailed  PCS will have column that will reflect queries and column for replies  Payment will only be made once feasibility study is acceptable

42. CONTRACT ISSUES  Payment will be made on completion of contract  Contract does not provide for advances advances can be given  S&T can only be claimed if utilised