1. MISA’s State Readiness to Provide Technical Support and Build Technical Capacity in Targeted Municipalities 9/10/2015 Slide 1

2. INTRODUCTION MISA is a dedicated government component established under the Ministry of CoGTA with the mandate to provide technical capacity support and assist municipalities to build their internal capacity for improved delivery and management of infrastructure and service provision. MISA’s programmes focus on supporting mainly low and medium capacity municipalities that continue to struggle with the development and maintenance of infrastructure and service provision. Support to identified municipalities focusses mainly on the provision of basic services such as water and sanitation, energy, waste management, as well as roads and storm-water Implementation of MISA’s programmes is guided by government’s key policy imperatives such as the National Development Plan (NDP), New Growth Path, Strategic Integrated Projects (SIPs). 9/10/20152

3. Presentation Outline Introduction Overview of the Municipal Infrastructure Support Agent Municipal and Sectoral Support Business Model Current Support Alignment of Technical Support with Back to Basics Approach Capacity Development Programme Objective Focus Areas for Capacity Development Programme Benefits of Support to Municipalities Conclusion 9/10/20153

4. OVERVIEW OF MISA Institutional Form The establishment of MISA to accelerate the provision of municipal infrastructure is informed by the Feasibility Study report compiled in September 2011. MISA was established by Presidential Proclamation 29 of 2012, which was gazetted on the 11 th May 2012, in terms of section 7(5) (c) of the Public Service Act. The establishment of MISA was one of the key thrusts of the Local Government Turnaround Strategy (LGTAS) aimed at creating a dedicated vehicle to support and build technical capacity in local government for the improvement of municipal infrastructure provisioning, refurbishment and maintenance; Anticipating the establishment of MISA, government took a decision to unbundle Siyenza Manje with the infrastructure component transferred to CoGTA and financial management component transferred to National Treasury, with effect from 01 April 2011. MISA is operationally ring-fenced from the Department of Cooperative Governance, but linked to it for policy implementation purposes. The head of MISA is the Accounting Officer in terms of the Public Finance Management Act, No.1 of 1999, as amended. MISA has been allocated its own operational budget of R820m over the MTEF period, with R262m allocated for 2013/14 FY and R294m in 2014/2015 financial year. 9/10/20154

5. OVERVIEW OF MISA Core Mandate MISA has a two-pronged mandate can be summarised as follows: i.To render technical advice and support in order to optimise municipal infrastructure provisioning and management. ii.To coordinate the development and implementation of programmes designed to strengthen the capacity of municipalities for planning, development, operations and maintenance of their municipal infrastructure. It is not within MISA’s mandate to provide grants to municipalities for either infrastructure projects implementation or the costs of maintaining and refurbishing such infrastructure. Its mandate is to give technical assistance to enable municipalities to perform these functions effectively. 9/10/20155

6. KEY PROGRAMMES Overview of Key Support Programme 9/10/20156  Municipal and Sectoral Technical Support – to ensure that MISA provides technical support to those municipalities that require assistance with technical aspects of infrastructure planning, implementation, operation and/or maintenance. Support provided is based on a needs assessment and agreement with municipalities. This buy-in from municipalities is essential for ownership and sustainability of support initiatives. And also ensures that resources from different departments and institutions are properly coordinated to address sectoral priorities towards eradication of service backlogs in water and sanitation, energy, solid waste management and roads and storm water. This programme also supports municipalities to ensure effective utilization of grants, especially the Municipal Infrastructure Grant.  Capacity Development Programme ensures that technical capacity is developed in local government for planning, delivering, operating and maintaining municipal infrastructure. Capacity development is implemented through various programmes, including apprenticeships, young professionals, experiential learning and rotating key municipal officials to the private sector and academia for exposure. Bursaries are made available for studies in built environment, especially engineering, to build a pipeline of future technical officials for municipalities. The programme also provides mentorship opportunities for technical officials in municipalities to meet the requirements for professional registration. Working in partnership with other public institutions, private sector companies, tertiary institutions and professional bodies forms an important part of MISA’s capacity development strategy.

7. Municipal and Sector Technical Support (MSTS) Business Model TCs & PSP Support 1. Projects Management (Including Business planning, design reviews, initiation implementation, monitoring and reporting 2. Capacity building of Municipal officials 3. PMU support ( Capacitation and technical support ) MSTS Mandate To render technical advice and support in order to optimise municipal infrastructure provisioning. Sectorial Support 4. Collaborating with Sector Departments on priority areas and programmes needing technical support for effective implementation 5. Addressing Strategic Issues of the Sector Departments e.g Compilation of TORS for Sector Addressing issues of Norms and Standards 6. Monitoring and Quality Checking of Work done by Service Providers 79/10/2015

8. MUNICIPAL SUPPORT STATISTICS 8 ProvinceLGTAS MISA Supported Municipalities From LGTAS List From Siyenza Manje Prog. Requests from Provinces/ Municipalities Total EC191641 21 NW85-8 13 NC137-10 17 WC96-- 6 FS109-- 9 GP55-1 6 MP99-3 12 KZN23 -1 24 LP12 -2 14 National10892425122 9/10/2015

9. TECHNICAL RESOURCES PER PROVINCE 99/10/2015

10. MISA Focus Areas of Support – Engineering and Project Management PMU and Project Management Support to fast track MIG expenditure Contract Management, O&M Support Basic Water & Sanitation Services Support Audit of existing infrastructure projects Bulk Water Supply – Planning & Construction of Regional Water Scheme Exploration and development of boreholes for water extraction Maintenance and refurbishment of water purification works Revamping of ageing infrastructure Funding Model for Waste Water-Roads-Electrical-Water Infrastructure O&M Support Infrastructure Master Plans to ensure sustainable infrastructure development Integrated Waste management Plans Dolomite Risk Strategies, Water and Sanitation Asset registers Environmental Impact Assessments Geo-technical Studies 9/10/201510

11. The following planning support is currently provided to various municipalities in nine (9) provinces through MISA Planners and Professional Service Providers (PSPs). Infrastructure Master Plans (water, sanitation, energy, solid waste and roads & storm water) to ensure sustainable infrastructure development Spatial Development Plan Reviews Water Conservation and Water Demand Management Land-use Management Systems Water Conservation and Water Demand Management Infrastructure Asset Registers, Infrastructure Asset Management Plans Operations and Maintenance Plans By-laws (Technical and Town Planning) IDP Review Feasibility Studies and Project Preparations are undertaken at a project pre- implementation level by MISA Technical Consultants and PSPs supporting various municipalities 9/10/201511 MISA Focus Areas of Support – Sector and Development Planning (incl. Town Planning)

12. CURRENT SUPPORT Municipalities Receiving Support Municipalities Kind of Support 1.Eastern Cape: Alfred Nzo DM, Ntabankulu, Joe Gqabi DM, Gariep, OR Tambo DM, Port St. Johns, Mhlontlo, KSD, Chris Hani DM, Engcobo, Emalahleni, Sakhisizwe, Amathole, Nxuba, Mbashe, Kouga, Blue Crane, Great Kei, Sundays River, Makana, Koukama, Mbizana, NMBM (22) PMU and Project Management Support to fast track MIG expenditure Contract Management, O&M Support Basic Water & Sanitation Services Support Audit of existing infrastructure projects. Spatial Development Plan Reviews 2. Free State: Mohokare, Naledi, Letsemeng, Tokologo, Masilonyana, Nala, Setsoto, Ngwathe, (8) PMU and Project Management Support O&M Support Unlocking funds for bulk water projects, Water Conservation and Water Demand Management Blue & Green Drop Assessments Design & Construction 9/10/201512

13. CURRENT SUPPORT Municipalities Receiving Support MunicipalitiesKind of Support 3. Gauteng: Westonaria, Randfontein, Merafong, Emfuleni, Lesedi, Sedibeng DM (6) Integrated Asset Management Support Water & Electricity Loss Reduction Strategies O&M Support Development of Dolomite Risk Management Strategy (Merafong) Bucket System Eradication - 58 hh in Lesedi 4. KwaZulu-Natal: Ugu DM, Umgungundlovu DM, Msunduzi, Mkhambathini, Uthukela DM, Okhahlamba, Imbabazane, Zululand DM, Uphongolo, Umkhanyakude DM, Big Five False Bay, Umhlabuyalingana, Jozini, Mtubatuba, Uthungulu DM, Mthonjaneni, Ilembe, Ndwedwe, Maphumulo, Sisonke DM, Umzimkhulu, Amajuba DM, Umzinyathi DM, Abaqulusi LM (24) PMU and Project Management Support Bulk Water Supply – Planning & Construction of Regional Water Scheme Exploration and development of boreholes for water extraction Maintenance and refurbishment of water purification works Revamping of ageing infrastructure Dalton Dam Construction Operations & Maintenance Support SCM Policy Review 9/10/201513

14. CURRENT SUPPORT Municipalities Receiving Support MunicipalitiesKind of Support 5. Northern Cape: Renosterberg, Siyancuma, John Taolo, Ga- Segonyana, Joe Morolong, Gamagara, Khai Mai, Kamiesberg, Thembelihle, Ntsatsabane,Dikgatlong,Phokwane, Siyathemba, Emthanjeni, Sol Plaatjie, Pixely Ka Seme and Namakwa (17) PMU Support Land-use Management Systems Asset Management Support SCM Systems, Complaints Management System Funding Model for Waste Water-Roads- Electrical-Water Infrastructure O&M Support Infrastructure Master Plans to ensure sustainable infrastructure development Spatial Development Framework IDP Assessments 6. Western Cape: Swellendam, Kannaland, Berg Rivier, Cederberg, Witzenberg, Prince Albert (6) PMU and Project Management Support (Multiple Infrastructure Projects under implementation), O&M Support, Integrated Regional Waste Management Plan Asset Management Planning Infrastructure Funding Models 9/10/201514

15. CURRENT SUPPORT Municipalities Receiving Support MunicipalitiesKind of Support 7. Limpopo: Lephalale, Tubatse, Musina, Makhado, Ba- Phalaborwa, Tzaneen, Elias Motsoaledi, Maruleng, Sekhukhune DM, Mopani DM, Vhembe DM, Capricorn DM Letaba, Fetakgomo, Ephraim Mohale (15) PMU and Project Management Support Asset Registers and Asset Management Support O&M Support Water Conservation Demand Management Water & Sanitation Policies and SLAs 8. Mpumalanga: Thaba Chweu, Nkomazi, Dr JS Moroka, Thembisile Hani, Chief Albert Luthuli, Dr Pixley Ka Isaka Seme, Mkhondo, Bushbuckridge, Dipaleseng, Lekwa, Govan Mbeki and Emalahleni (12) PMU & Project Management Support Energy Master Plans Roads and Storm Water Master Plans Integrated Waste management Plans Dolomite Risk Strategies, Water and Sanitation Asset registers Environmental Impact Assessments Geo-technical Studies By-laws (Technical and Town Planning) 9/10/201515

16. CURRENT SUPPORT Municipalities Receiving Support MunicipalitiesKind of Support 9. North West: Tswaing, Ratlou, Moretele, Kgetleng Rivier, Mamusa, Moses Kotane, Madibeng, Ventersdorp, Dr Ruth Mompati DM, Lekwa-Teemane, Ngaka Modiri Molema DM and Naledi(12) PMU and Project Management Infrastructure Asset Management Integrated Waste Management System Develop Fleet Management System Operations & Management Support 9/10/201516

17. As part of improving on readiness to address felt needs of communities, MISA has adopted a method of providing support through District Teams as well as resident engineers where required. The Team comprises Sector Specialists on water, sanitation and energy as well as Generalist on Roads & Storm-water and solid waste and project management. A dedicated Multi-Disciplinary Team of Engineers, Planners & Project Managers is being established within each of High Priority Districts. The Team will focus on municipal support through the whole project life cycle i.e. planning (incl. feasibility studies), procurement, design, implementation, commissioning, operations and maintenance MISA has also established a Programme / Project Management Office (PMO) that coordinates the management of programmes and projects implemented in municipalities through MISA technical support As part of provincial technical support, MISA will assign engineers to provide technical support to provinces for appraisal of technical reports and evaluation of project designs where required.. 9/10/201517 ALIGNMENT OF MISA’S TECHNICAL SUPPORT WITH BACK TO BASICS APPROACH

18. 18 CoGTA - MISA PMO Provincial CoGTA MIG Units District Teams Local Municipalities Direct Delivery Interventions Improvements on Support Provided to Municipalities 9/10/2015

19. MISA Contracting Process with Service Provider Appointment of PSP On completion of the Procurement process as per the PFMA Supply Chain Guidelines A legal contract between MISA and PSP is signed The contract is legally binding, the contract has all the legal ramifications necessary to undertake such work Business Plan -Project Implementation Plan (PIP) A project business plan called a Project Implementation Plan (PIP) is drafted and signed between Municipality, MISA and PSP The PIP is informed by the needs of the municipality also influenced by the sector requirements. It outlines the expected deliverables, timeframes to perform these deliverables The PIP is signed off by the Municipality, PSP and MISA and forms part of the contract. Project Execution Requirements and processes The contract provides for the reporting protocols and all the necessary issues Monthly progress reporting templates and any other requirements are set out 9/10/201519

20. MISA Process Flow in Managing PSPs MISA – Third Level of Management MISA Provincial Programme ManagerOverall Contract Management MISA- Second Level of Management MISA Project ManagerGeneral Project Quality Assurance MISA -First level of Management MISA Technical Consultant Project Project Management including monitoring monthly progress in wrt time, and deliverables 209/10/2015

21. MISA Process Flow in Managing PSPs- cntd MISA – sixth level of Management Chief Executive Officer (CEO) Provides overall PSP Oversight MISA - Fifth Level of Management MISA Head Office ( Finance Division and Legal Division ) Financial Management and overall contract and legal opinions where necessary MISA- Fourth Level of Management MISA – Sector Programme Manager Sector Specific Quality Assurance on Water, Sanitation, Roads and Storm water, Solid Waste, Electricity and Operations and Maintenance 219/10/2015

22. MISA PSP – Governance Structures Comprises of PSP, MISA TCs, PMs PPMs and relevant Municipal officials The PSP reports on project progress on a monthly basis Monitor the implementation of milestones and deliverables Technical Steering Committee Comprising of Senior representatives from MISA, Municipality and Provincial Government with decision making powers to; Expedite the process of approvals and decision making reporting protocols, requirements and guidelines Provincial Steering Committee Comprising of Head of Vendor services, Head MSTS, CFO representative and CEO’s representative and PSP by invitation Ensure overall strategic management of the entire programme. National Steering Committee 229/10/2015

23. CAPACITY DEVELOPMENT PRGRAMME Programme Objective: To build capacity of municipalities to under take effective planning, delivery, operations and management of municipal infrastructure. 9/10/201523

24. FOCUS AREA: KEY SUPPORT PROGRAMMES Capacity Development Programme ensures that technical capacity is developed in local government for planning, delivering, operating and maintaining municipal infrastructure. Capacity development is implemented through various programmes, including apprenticeships, young professionals, experiential learning and rotating key municipal officials to the private sector and academia for exposure. Bursaries are made available for studies in built environment, especially engineering, to build a pipeline of future technical officials for municipalities. The programme also provides mentorship opportunities for technical officials in municipalities to meet the requirements for professional registration. Working in partnership with other public institutions, private sector companies, tertiary institutions and professional bodies forms an important part of MISA’s capacity development strategy. 9/10/201524

25. TECHNICAL SKILLS NEEDS Sub-ProgrammeBaselineProjected requirements Artisanship350500 Technical Bursary172400 Technical Training5501000 Young Graduates47200 Experiential Learners164200 Mentoring of Municipal Officials 25100 Waste Water Process Controllers 100300 9/10/201525

26. HUMAN RESOURCE AND BUDGETARY REQUIREMENTS Human resource requirement to meet the projected support to municipalities: 1 Head Capacity Building 1 Director (Not in the structure) 2 Deputy Directors 4 Assistant Directors 1 Administrative Officer 1 Secretary The personnel budget implication is R6M 9/10/201526

27. NUMBER OF MUNICIPALITIES SUPPORTED 60 Municipalities are currently being supported across 9 provinces With the projected request, one third of the municipalities can be supported Our priority is low and middle capacitated municipalities In line with the Back to Basics approach one third of the municipalities are dysfunctional and therefore need various support initiatives The above one third municipalities would be supported, making it 108 municipalities 9/10/201527

28. SUPPORT BENEFITS TO MUNICIPALITIES The mandate of the programme is to built technical institutional capacity through various sub-programmes: Artisan Development Sub-Programme The targeted number of the apprentices being recruited for the 2014/2015 financial year is 350 under the following skills set: Electrical Plumbing Bricklaying Fitter and Turner Motor/Diesel Mechanic 9/10/201528

29. SUPPORT BENEFITS TO MUNICIPALITIES  In this program MISA deploys apprentices within the municipality for the period of three years for workplace exposure. After this mentioned process they are taken for trade testing to become qualified artisans.  Municipalities need artisans for both maintenance and operation of municipal infrastructure for efficient service delivery. Artisans in the above skills set support municipalities in the maintenance of infrastructure namely, Waste water treatment plant, Electricity, Machinery, Masonry, Plant and equipment and Water and sewer pipes. 9/10/201529

30. BENEFITS OF SUPPORT TO MUNICIPALITIES  For operations the MISA is training 100 water and waste water process controllers. These process controllers are trained and once qualified they will build internal technical capacity of the municipalities.  These 100 process controllers are placed in various municipalities for training and workplace exposure from NQF level 2 – NQF level 4 certification. 9/10/201530

31. BENEFITS OF SUPPORT TO MUNICIPALITIES Technical Training Sub-Programme In this financial year MISA has trained 452 technical municipal officials on various short courses. Some of these courses carry continuing professional development points in order to support registered engineers to retain their professional registration. The following are some of the short course offered: Asset management Grap 17 These technical course are linked to efficient service delivery, the courses will assist in the identification of assets, depreciation of assets, conditional assessment of assets, asset value and developing the asset register. The condition of service delivery asset is the determinant of how this asset will provide service. The example is waste water treatment plant, water purification plant, sewer pump station, reservoir all these service delivery infrastructures have to be properly operated and maintained for efficient and effective delivery of services. 9/10/201531

32. BENEFITS OF SUPPORT TO MUNICIPALITIES Young Graduates Sub-Programme  The intention of this sub-programme is to support young graduates towards professional registration. Municipalities lack professionally registered engineers who are very critical in the design and signing off major infrastructure projects.  These graduates are deployed in various municipalities to provide technical municipal support whiles undergoing mentoring towards professional registration. Currently MISA has recruited 47 of these young graduates and placed them in various municipalities for workplace exposure and mentoring. 9/10/201532

33. BENEFITS OF SUPPORT TO MUNICIPALITIES Technical Bursary Sub-Programme  Annually MISA offers bursary support to deserving university and TVET students engineering (electrical and civil), Town and regional planning and Geographical Information System (GIS).  The focus is to replace and replenish the scarce and critical skills in Local Government due to ageing engineers with relevant skills and experience. The focus of government in infrastructure development needs a concomitant investment in built environment scare skills for service delivery. 9/10/201533

34. BENEFITS OF SUPPORT TO MUNICIPALITIES Experiential learning Sub-Programme This sub-programme focuses on providing exposure to new graduates and undergraduates in order to gain working experience under supervision of qualified supervisors in their respective fields. The intention is to create a pool of employable graduates in technical scare skills and Local Government becomes the employer of choice. 9/10/201534

35. CONCLUSION The ability of municipalities to plan, implement and maintain infrastructure in a manner that will ensure sustainable provision of services depends largely on the level of skilled personnel in these municipalities. MISA is in the process of aligning its support programmes and approach to the Back to Basics approach current under implementation in all provinces. To contribute effectively to the objectives of strengthening the capability of municipalities to delivery infrastructure and services in a sustainable way, more technical professional will be needed. Part of this realignment includes the integration of MISA’s capacity building and training sub-programmes with other capacity building initiatives under the Back to Basics approach. The book by Allyson Lawless, Numbers and Needs in Local Government underlines the severity of skills shortages in municipalities’ technical departments. These skills gaps are due to under qualification and low level of professional registration among engineers and technicians employed by local government. This state of affairs adversely affects municipal infrastructure development, operations and maintenance. Out efforts under the Back to Basics approach are aimed at supporting municipalities to enhance their capacity to meet the required standards in relation to infrastructure and service provision. 9/10/201535

36. 9/10/201536 Thank You QuestionsCommentsInputs. Suggestions. Nothing.