1. ENERGY & WATER SECTOR EDUCATION AND TRAINING AUTHORITY by Tebogo Mmotla Chief Operations Officer 14 November 2012

2. Presentation Outline Representation in the Accounting Authority Legal Mandate and Legislative Framework EWSETA (vision, mission, values and scope of coverage) Strategic Focus areas Current projects for 2012/13 Achievements Major Drivers Budget Allocation Challenges Conclusion

3. The EWSETA Constitution Background And Purpose 1.The Skills Development Act, 1998 (Act 97 of 1998) makes provision for the establishment of SETAs for each national economic sector. The Minister determined the discrete Sector of the Energy and Water Sector Education and Training Authority (“EWSETA”) in terms of section 9 of the Act. 2.This Constitution was drawn up in accordance with the requirements of section 13,as further provided for in terms of section 9 (1) of the Act, and provides an institutional framework for the SETA to develop and implement national, sectoral and work – place strategies, in order to develop and improve the skills of the South African workforce. 3.The SETA pursues the development of a skilled workforce in order to provide an improved service to the people of South Africa. The SETA is inspired by the vision of an appropriately skilled workforce, who is empowered to render quality services, which are comparable with world – class standards. 4.Executive Authority 1.The Executive Authority responsible for the SETA must exercise its power and responsibilities to ensure that the implementation of the objectives and execution of the functions of the SETA comply with the Act, NSDS and the policies of the Executive Authority and government. 2.In executing its accountability and responsibility functions, the Executive Authority must exercise its powers as provided for in terms of the Act, the Constitution, the PFMA and other relevant legislation. 5. Representation on the Accounting Authority The Accounting Authority is composed of the following organisations: 1.Trade Unions: Trade unions whose constituents carry their business in the sector, including but not limited to National Union of Metal Workers of South Africa, National Union of Mine Workers, Independent Municipal and Allied Trade Union, South African Municipal Workers and Union Solidarity Trade Union. 2.Employer Organisations: Employers and employer organisations whose main business activities fall within the standard industrial categories as outlined in the scope of coverage in Schedule 1 of this Constitution, including but not limited to ESKOM, South African Association of Water Utilities (SAAWU),SALGA, National Energy Regulator of South Africa (NERSA), THE MVULA TRUST, etc. 3.Relevant Government Departments: Relevant government departments whose main activities fall within the standard industrial classification categories as outlined in Schedule 1 of this Constitution, including but not limited to the Department of Water Affairs, Department of Human Settlements, Department of Energy and Department of Public Enterprise

4. Number of Representatives in the Accounting Authority a)Organised Employers and relevant government departments i.Eskom who may nominate one (1) Member; ii.SAAWU, who may nominate one (1) Member; iii.SALGA, who may nominate one (1) Member; iv.Department of Water Affairs, who may nominate one (1) Member; v.Department of Energy who may nominate one (1) Member; and vi.Department of Public Enterprise, who may nominate one (1) Member b)Organised Labour i.National Union of Mineworkers (“NUM”), who may nominate two (2) Members; ii.National Union of Metalworkers South Africa (“NUMSA”), who may nominate One (1) Member; iii.Independent Municipal and Allied Trade Union (“IMATU”), who may nominate one (1) Member; iv.South African Municipal Workers Union (“SAMWU”), who may nominate one (1) Member ; and v.Solidarity Trade Union (“Solidarity”), who may nominate one (1) Member

5. The general objectives of the SETA (as per constitution) through the skills development levy, increase the levels of investment in skills development and improve returns on such investment; support improved performance and productivity in the work-places in the Sector, as well as the competitiveness of employers; support disadvantaged by unfair discrimination; the improvement of the employment prospects of persons previously in liaison with employment services, assist work seekers to gain access to work experience; in liaison with employment services, assist retrenched workers to re-enter the labour market;

6. The general objectives of the SETA (as per constitution) promote effective communication between, and participation by bodies involved in skills development — both inside and outside the Sector; co-operate with and support the QCTO in matters relating to QCTO functions and operations referred to in section 10 of the Act; and to cooperate with and support the functions of other agencies in matters related to skills development.

7. SDA – Functions of a SETA (a)develop a sector skills plan within the framework of the national skills development strategy; (b)implement its sector skills plan by- – (i) establishing learnerships; – (ii) approving workplace skills plans; – (iii) allocating grants in the prescribed manner and in accordance with any prescribed standards and criteria to employers, education and training providers and workers; and – (iv) monitoring education and training in the sector;

8. SDA – Functions of a SETA (cont.) (c) promote learnerships by – (i) identifying workplaces for practical work experience; (ii) supporting the development of learning materials; (iii) improving the facilitation of learning; and (iv) assisting in the conclusion of learnership agreements; (d) register learnership agreements;

9. SDA – Functions of a SETA (cont.) (e) within a week from its establishment, apply to the South African Qualifications Authority for accreditation as a body contemplated in section 5 (1) (a) (ii) (bb) and must, within 18 months from the date of that application, be so accredited; (f) when required to do so as contemplated in section 7(1) of the Skills Development Levies Act, collect the skills development levies, and must disburse the levies, allocated to it in terms of sections 8(3)(b) and 9(b), in its sector;

10. SDA – Functions of a SETA (cont) (g) liaise with the National Skills Authority on – (i) the national skills development policy; (ii) the national skills development strategy; and (iii) its sector skills plan; (h)submit to the Director-General– (i) any budgets, reports and financial statements on its income and expenditure that it is required to prepare in terms of the Public Finance Management Act; and (ii) plans and reports on the implementation of its sector skills plan and service level agreement;

11. SDA – Functions of a SETA (cont) (i) liaise with the employment services of the Department and any education body established under any law regulating education in the Republic to improve information – (i) about employment opportunities; and (ii) between education and training providers and the labour market; (j) subject to section 14, appoint staff necessary for the performance of its functions; (jA) promote the national standard established in terms of section 30B; and (k) perform any other duties imposed by this Act or the Skills Development Levies Act or consistent with the purposes of this Act.

12. Vision and Mission Vision – The leading facilitator of world-class skills development for the Energy and Water Sectors Mission – To facilitate skills development for energy and water stakeholders, through providing integrated, value added education and training services

13. EWSETA values Ethical – Conduct EWSETA operations in an ethical manner and in compliance with laws and regulations Professionalism – Provide a quality service in a professional manner that promotes the image of the personnel and the organisation Customer / Stakeholder oriented – Render quality service to stakeholders that is responsive to their needs Accountability – Commitment to provide the stakeholders with reliable, relevant, accurate information at appropriate time

14. Scope of coverage Energy – Generation, transmission and distribution of energy Electricity Renewable energy Gas Water services – Collection, purification and distribution of water – Sanitation and Waste management services

15. Demand Water for Development Addressing Service Backlogs  Access to basic water and sanitation services for all by 2012 Engineering Skills  Need for 3000 Civil Engineers -lost through high Global demand and national issues  Focus is on engineering skills rather than engineers – the use of engineering technologies in posts that require engineers as an immediate solution. Socio Economic and Environmental Health Skills  There is a need for 7200 health and hygiene/environmental health practitioners Management Skills  There is a need for approximately 23000 managers of which at least 1200 should be in technical management positions Artisans And Technicians Skills  There is an urgent need for 4000 artisans/technicians to overcome the crippling challenges of poor operational and maintenance of infrastructure which might deter the achievement of Millennium goals by 2015

16. Demand(Cont...) Replacement Demand  The large number of workers over the age of 65, is most likely composed of people who should have retired but are irreplaceable due to the failure to transfer skills Critical Skills(Engineers, artisans and technicians)  The critical skills need to be developed through workplace learning

17. Supply EWSETA: provider capacity per province QualificationsQualification IDNumber of EWSETA – Accredited Providers Further Education and Training Certificate: Water and Wastewater Treatment Process Control Supervisor 617091 National Certificate: Community Water, Health and Sanitation Monitoring645891 National Certificate: Community Water, Health and Sanitation Promotion616891 National Certificate: Sanitation Project Co-ordination489081 National Certificate: Water and Wastewater Reticulation Services601902 National Certificate: Water and Wastewater Reticulation Services601551 National Certificate: Water and Wastewater Reticulation Services601691 Further Education and Training Certificate: Wastewater and Water Reticulation Services601891 Further Education and Training Certificate: Wastewater Treatment Process Control Supervision617091 National Certificate: Community Water, Health and Sanitation Promotion616891 National Certificate: Sanitation Project Co-ordination489081 National Certificate: Wastewater Process Operations226731 National Certificate: Water and Wastewater Process Control601901 National Certificate: Water and Wastewater and Reticulation Services601551 National Certificate: Water and Wastewater Reticulation Services601691 National Certificate: Water and Wastewater Treatment Process Operations589511

18. Strategic Priority Areas Strategic focus areas as identified by the Sector Skills Plan(SSP) Recognition of Prior Learning SMME Development Accelerated Artisan Development Workplace Mentorship and Placement Post Matric Development Programmes Capacity building of FET Colleges Skills shortages/ awareness road-shows Promotion of blue and green drops status Lack of competent engineers, scientists and technicians

19. Strategic Priority Areas(Cont..) Priority Short- term interventions(Internal) o Short course in sanitation systems and alternative technologies o Short course for water purification and wastewater treatment operators Priority Short –terms Interventions(External) o Youth: Awareness in school curriculum on water issues, including WASH(Water and Sanitation Hygiene) and water-borne diseases o Adults: Focused awareness programs for rural areas and informal settlements on water issues including WASH(Water and Sanitation Hygiene) and water-borne diseases o Awareness programs for managers: Municipal Councillors and Managers, Mine Managers and the captains of the industry on sanitation and waste legislation, and their responsibilities and liabilities Priority medium to long term interventions o Program to ensure enough civil engineers o Program to ensure enough artisans o Program to ensure enough sewage plants operators

20. Strategic Priority areas(Cont..) o Occupationally directed learning o Ensure linkages with WRC to facilitate focused and relevant research that will add value for the water services sector o Bursary Programs

21. Partnerships with Employers: 2010-11 to date Qualifications Learners EnrolledCompletionsProvinces EmployedUnemployedEmployedUnemployed Further Education and Training Certificate: Waste and Wastewater Treatment Process Control Supervision ID Number - 61079 735 20 LP/WC/FS National Certificate: Community Water, Health and Sanitation Promotion - ID Number - 61689 No Enrolments 24348WC/LP National Certificate: Water and Wastewater Reticulation Services 2410 97142NC/MP National Certificate: Water and Wastewater Process Control 191294124FS/NP National Certificate: Water and Wastewater Treatment Process Operations 107357355290GP/NW/KZN National Certificate: Sanitation Project Co- ordination No Enrolments 1215FS/NC/KZN/ GP

22. Strategic Project – NVC in Sanitation Services Nkomazi Local Municipality : 40 learners enrolled 33 learners completed 4 Companies established

23. Current Projects 2012-13 ProjectAnnual Target Per Strategic Plan Total Budget 1.Sector Skills Plan is developed and approved by the Board, sector stakeholders and the DHET on an annual basis. Sector skills plans provide a sound analysis of the sector, articulate an agreed sector strategy to address skills needs and is accessible to stakeholder 4901 500 000 2. Unemployed learners assisted to enter into training programmes other than artisan development Unemployed learners that completed training programmes other than artisan development 330 5 000 000 500 000 3. Unemployed learners assisted to enter into artisan development Unemployed learners that qualified as artisans 600 690 9 000 000 4. Number of agreements entered into with universities and universities of technology Number of students assisted to enter into priority programmes supported through bursaries, mentoring and coaching Number of opportunities created for graduates from universities and universities of technology (work integrate learning) 4 100 50 110 000 4 950 000 3 300 000

24. ProjectAnnual Target Per Strategic Plan Total Budget 5.Number of programmes supported to produce research that has impact on achievement of economic and skills development goals 2550 000 6.Number of agreements entered into with FET colleges Number of students assisted to enter vocational courses supported through bursaries, mentoring and coaching Number of opportunities created for graduates from FET (work integrated learning) 50 200 110 000 4 950 000 3 300 000 7.Number of unemployed Youth and Adult learners entered in foundation learning programmes that improves employability Number of unemployed Youth and Adult learners that completed foundation learning programmes Number of opportunities created for unemployed Youth and Adult learners that completed foundation learning programmes (placements) 300 165 110 3 000 000 300 000 2 178 000 8.Number of learners entered into skills development initiatives to address specific sector skills gaps Number of learners that completed skills development initiates to address specific sector skills gaps 600 – Qualifications 4000- Skills Programmes 400 – Qualifications 300 – Skills Programmes 15 000 000 1 500 000

25. ProjectAnnual Target Per Strategic Plan Total Budget 9. Number of projects established / initiated to support co-operatives Number of projects completed that supported co-operatives Number of partnership projects established to support small businesses Number of partnership projects completed to support small businesses Number of quality pilot projects established to support workers initiated projects Number of quality pilot projects established to support NGOs Number of quality pilot projects established to support community based education programmes 15 10 3 1 5 9 1 500 00 2 200 000 1 650 000 10. Number of career guides updated and distributed Number of impact assessment conducted career guides Learners with EWSETA qualifications Quality of WSP/ATR submitted by SDF trained 10 000 9 550 000 1 650 000

26. Achievements and focus areas to date Achievements o Financial management o EWSETA has received unqualified audit opinions in 2 consecutive financial years o Improved on compliance with laws and regulations from period prior to the S15 Administration Focus areas o Improving on the performance against targets o Performance reporting o General control environment within EWSETA

27. Major Drivers SIP8: green energy SIP9: includes electricity generation to support socio-economic development SIP10: electricity distribution for all o SIP 18: Water and Sanitation addressing backlogs in water and sanitation, maintenance of water and sanitation infrastructure and construction of sewage plants

28. Financial overview - Performance Statement of financial performance Revised Audited outcome estimate Medium-term estimate R thousand 2009/10 2010/11 2011/12 2012/13 2013/14 2014/152015/16 Revenue Non-tax revenue 7,601 12,455 10,800 6,318 6,665 6,999 Other non-tax revenue 7,601 12,455 10,800 6,318 6,665 6,999 Transfers received 147,208 152,552 153,747 166,309 175,456 184,229 Total revenue 154,809 165,007 164,547 172,627 182,121 191,228 Expenses Current expenses 18,831 24,983 27,351 22,570 24,317 25,273 25,015 Compensation of employees 9,931 9,673 11,923 10,419 11,075 11,729 12,268 Goods and services 8,374 14,806 14,930 11,447 12,498 12,764 11,967 Depreciation 526 504 498 704 743 780 Transfers and subsidies 106,094 112,616107,072150,057 157,804 165,955 166,213 Total expenses 124,925 137,599134,423 172,627 182,121 191,228 Surplus / (Deficit) 29,884 27,40830,125 – – – –

29. Challenges 1. Challenges for the Sector – Sewage and sanitation systems:  There is a concern to access for sanitation for informal settlements – Sanitation: Current challenges:  Management problems(national) - transfer of sanitation unit from DWA to NDHS  Management problems (local) – there is inadequate national financing to address the sanitation backlogs, particularly in small towns and rural areas – Infrastructure and technical problems:  There is a lack of clarity with regards to sanitation standards and appropriate technical options resulting in sanitation facilities that are often not compliant with technical design standards  There is insufficient operations and maintenance of existing infrastructure – Problems of consultation and education:  There is lack of health and hygiene education which negates the impact of sanitation provision on improved health outcomes

30. Challenges(Cont....) – Gaps in service provision:  There is a lack of sanitation provision in informal settlements and rural areas 2. Challenges for EWSETA  Backlog in issuing certificates  Limited budget and unable to cover all the functions  No sound relationship between LGSETA and EWSETA  No representation of the sanitation and waste sector at the Board Level and relevant governance committees

31. Conclusion 1 st draft of the updated Sector Skills Plan (SSP) has been submitted to the Department of Higher Education and Training (DHET) on the 31 st August 2012 Next Phase  Extensive consultation and engagement with stakeholders  Revise the strategic plan and annual performance plans within the context of the SSP Expected Outcome  SSP that clearly outline the skills development needs of the sector  Strategies focused on closing the gap between the supply and demand

32. Thank You