1. Expanded Public Works Programme (EPWP) Progress report presentation to Select Committee on Economic and Business Development 24 th February 2015

2. 2 Presentation Outline Quarter 2 performance analysis  Work opportunities  Full Time Equivalents  Designated Groups  Minimum daily wage  Labour intensity Financial Performance and Integrated Incentive Grant Performance EPWP 3 rd Summit Progress on Institutionalising the PEP - IMC Challenges Measures put in place to address challenges

3. 3 Overall EPWP Annual Targets (5 Years) per financial year Financial Year EPWP annual work opportunity targets EPWP cumulative work opportunity targets EPWP annual FTE targets EPWP cumulative FTE targets 2014/15 1 045 520 420 952 2015/16 1 127 1862 172 706450 462871 414 2016/17 1 343 1543 515 860519 7241 391 138 2017/18 1 406 7364 922 596574 0891 965 227 2018/19 1 455 8406 378 436591 8462 557 073 Total6 378 4362 557 073 Source: EPWP Phase 3 Targets (dated : 30 April 2014 ) Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same person can be employed on different projects and each employment period will be counted as a work opportunity FTE (Full Time Equivalence) : person days of work and training divided by 230 days

4. 4 EPWP Progress against targets EPWP has created 630,718 work opportunities against the second quarter target of 522,760 work opportunities by the end of the 2 nd quarter of the 14/15 financial year. This represents 120% of the target. The programme is on track to meet the target in terms of work opportunities for the 14/15 financial year. All sectors except the Community Work Programme (CWP) have achieved their Q2 target work opportunities. The EPWP work opportunities reported in the second quarter of the 14/15 financial year represents 10.5% of the overall targeted 6,000,000 work opportunities in EPWP phase 3.

5. 5 Progress to date against targets (1 April 2014 – 30 September 2014) Work opportunities (WO) and Full Time Equivalence (FTE) Sector Targeted Work Opp Quarter 2 Actual Work Opp reported Quarter 2 % Progress (Work opp) Q2 Targeted FTE Quarter 2 Actual FTE reported Quarter 2 % Progress (FTE) Q2 Infrastructure 189 578270 450142.6661 81954 83288.70 Environment 113 825122 163107.3342 25730 34571.81 Social 101 357131 371129.6156 21133 86060.24 Non-State: Non-Profit Organisations 24 50041 209168.2013 6038 76864.46 Non-State: Community Work 93 50065 52570.0836 58710 16627.79 Total 522 760630 718120.65210 476137 97165.55 Source: EPWP Phase 3 Targets (dated 30 April 2014) Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same person can be employed on different projects and each employment period will be counted as a work opportunity FTE (Full Time Equivalence) : person days of work and training divided by 230 days

6. 6 Overall Analysis across all sectors and spheres of government: (Q2: 1 April 2014 – 30 September 2014) InfrastructureEnvironment al & Culture Non-StateSocialCommunity Work Total Number of projects/ sites4 1701 9603173 7158910 251 Work opportunities (WO)270 450122 16341 209131 37165 525630 718 Duration of WO 47 57 49 59 36 50 FTE54 83230 3458 76833 86010 166137 971 Average minimum daily wageR 120R 109 R 71 R 80 R 82 R 102

7. 7 EPWP Progress against annual targets EPWP has created 630,718 work opportunities against the annual target of 1,045,520 work opportunities by the end of the 2 nd quarter of the 14/15 financial year. This represents 60% of the target. The programme is on track to meet the target in terms of work opportunities for the 14/15 financial year. All sectors apart from the Community Work Programme have reported over 50% of the targeted work opportunities.

8. 8 Work opportunities progress against 2014-2015 targets Overall per Sector SectorAnnual targeted work opportunities [WO] (1 Apr ‘14 – 31 March ’14) Work opportunities [WO]* (1 April 2014 – 30 Sept 2014) No% of targeted WO Infrastructure 379 156270 45071 Environment 227 650122 16354 Social 202 714131 37165 Non-Profit Organisations 49 00041 20984 Community Work Programme (CWP) 187 00065 52535 T O T A L 1 045 520630 71860 Source: EPWP Phase 3 Targets (dated 30 April 2014) Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same person can be employed on different projects and each employment period will be counted as a work opportunity

9. EPWP Phase 3 Work opportunities progress against 2014-2015 targets Overall per Sector 9

10. 10 Work Opportunities achieved vs. shortfall per sphere of government (Overall) (1 Apr 2014 – 30 September 2014)

11. 11 Full Time Equivalence (FTE) progress against 2014-2015 targets Overall per Sector SectorAnnual targeted FTE per sector (1 Apr ’14 – 31 March ’15) Full Time Equivalence [FTE]* (1 April 2014 – 30 Sept 2014) No% of targeted FTE Infrastructure 123 63854 83244.35 Environment 84 51430 34535.91 Social 112 42133 86030.12 Non-Profit Organisations 27 2058 76832.23 Community Works 73 17410 16613.89 TOTAL 420 952137 97132.78 Source: EPWP Phase 3 Targets (dated 30 April 2014) Targets: * FTE : Person days of work and training reported by reporting bodies divided by 230 days

12. Full Time Equivalence progress against 2014-2015 targets Overall per Sector 12

13. 13 FTEs achieved vs. shortfall per sphere of government (Overall) (1 Apr 2014 – 30 Sept 2014)

14. 14 EPWP Progress against annual targets cont’d EPWP has created 137,971 FTEs against the annual target of 420,952 FTEs by the end of the 2 nd quarter of the 14/15 financial year. This represents 33% of the target. The programme is not on track to meet the target in terms of FTEs for the 14/15 financial year.

15. 15 EPWP Progress against annual targets cont’d The Provincial sphere overall has achieved their second quarter targets compared to the Municipal sphere of government. All provinces have achieved their provincial sphere work opportunities targets. Only three provinces (KZN, LP and GP) municipalities have achieved 50% of their work opportunities targets by Q2. Other provinces are still below the 50% target.

16. 16 Infrastructure, Environment and Culture and Social Sectors (TOTAL) (Prov Govt Depts & Municipalities): Work opportunities against 2014-15 targets by Province (Q2: 1 April 2014 – 30 September 2014) Provinces MunicipalitiesTotal Annual Target Wk Opp Reported %Annual Target Wk Opp Reported %Annual Target Wk Opp Reported % EC 40 27668 03716947 93913 5802888 21581 61793 FS 22 38511 9505320 3977 6093742 78219 55946 GP 48 37724 7025166 40242 72464114 77967 42659 KZN 95 10391 8659767 05038 17457162 153130 03980 Lim 39 13126 4236830 51515 9315269 64642 35461 Mp 24 87926 52310721 7919 9274646 67036 45078 NC 17 3399 642569 4042 8663026 74312 50847 NW 27 61334 42312518 8749 0304846 48743 45393 WC 31 49620 2766444 48116 7533875 97737 02949 Total 346 599313 84191326 853156 59448673 452470 43570 % - Percentage of work opportunities reported against target Wk Opp Reported – Work Opportunities reported to date Source: Targets – Infra and Social sectors: EPWP Business Plan (Dated April 2014) Environment & Culture Sector: E&C Sector Plan (June 2014)

17. 17 EPWP Progress against annual targets In the Infrastructure sector, the majority of provinces (6/9) have achieved 50% of their provincial sphere work opportunities targets except 3 provinces namely FS, GP and the NC. Only three provinces (KZN, LP and NC) municipalities have achieved 50% of their work opportunities targets by Q2. Other provinces are still below the 50% target. NW and GP provinces are more likely to achieve their target if more effort could me done to implement and report projects whilst EC, FS and WC are less likely to achieve their targets in this year.

18. 18 Infrastructure Sector (TOTAL) (Prov Govt Depts & Municipalities): Work opportunities against 2014-15 targets by Province (Q2: 1 April 2014 – 30 September 2014) Provinces MunicipalitiesTotal Annual Target Wk Opp Reported % Annual Target Wk Opp % Annual Target Wk Opp Reported % Reported EC 21 34547 87322432 9445 7251754 28953 59899 FS 11 0864 2483811 5664 1773622 6528 42537 GP 18 7585 4952949 52420 5134168 28226 00838 KZN 46 71458 95412637 30531 8818584 01990 835108 Lim 20 34511 2125519 5599 7275039 90420 93952 Mp 13 03914 90311410 8984 8444423 93719 74782 NC 9 9502 838292 8771 6235612 8274 46135 NW 15 54422 41814410 2054 2694225 74926 687104 WC 11 7307 5186415 7674 3632827 49711 88143 Total 168 511175 459104190 64587 12246359 156262 58173

19. 19 Non State Sector (TOTAL) (Non Profit Organisations and Community Work Programme): Work opportunities against 2014-15 targets by Province (Q2: 1 April 2014 – 30 September 2014) Provinces Non Profit OrganisationsCommunity Work Programme Annual Targets: WO reported % Achieved Annual Targets: WO reported % Achie ved EC 7 5006 3848519 0009 24149 FS 4 4204 87311021 0005 19325 GP 2 6052 4779519 5009 93751 KZN 7 9498 02310137 0009 81727 Lim 8 1206 0657513 00013 234102 Mp 4 9085 28210810 5008 36080 NC 5 0702 1034131 5005 74318 NW 2 7381 8266719 5004 00021 WC 3 5754 17611716 50000 National* 2 775 0 Total 49 66041 20983187 50065 52535%

20. 20 EPWP Progress against annual targets cont’d In the Non State sector (NPO), all provinces except NC have achieved 50% of their provincial work opportunities targets. In the CWP programme only three provinces (GP, LP and MP) have achieved 50% of their work opportunities targets by Q2. Other provinces are still below the 50% target.

21. 21 EPWP Progress against annual targets cont’d In the Social sector, all provinces have achieved 50% of their provincial sphere work opportunities targets. Only two provinces (NW and NC) municipalities have achieved 50% of their work opportunities targets by Q2. the municipalities are less likely to achieve their targets.

22. 22 Social Sector (TOTAL) (Prov Govt Depts & Municipalities): Work opportunities against 2014-15 targets by Province (Q2: 1 April 2014 – 30 September 2014)

23. 23 EPWP Progress against annual targets cont’d In the Environment and Culture sector, the majority of provinces (7/9) have achieved 50% of their provincial sphere work opportunities targets except 3 provinces namely EC and KZN. Only two provinces (WC and NC) municipalities have not achieved 50% of their work opportunities targets by Q2. Other provinces are above the 50% target.

24. 24 Environment and Culture Sector (TOTAL) (Prov Govt Depts & Municipalities): Work opportunities against 2014-15 targets by Province (Q2: 1 April 2014 – 30 September 2014) ProvincialMunicipal Overall Provinces WO targets WO reported % achieved WO targets WO reported % achieved Total Target Total Reported % Achieved EC2 82187731%11 3576 70459% 14 1787 58153% FS2 6651 73565%5 7293 16455% 8 3944 89958% GP2 7333 029111%12 78514 763115% 15 51817 792115% KZN13 6913 96529%7 2095 37074% 20 9009 33545% LP6 8254 21662%3 5255 336151% 10 3509 55292% MP2 5522 26189%7 8714 17153% 10 4236 43262% NC2 7002 07177%3 5901 20534% 6 2903 27652% NW2 1763 623166%5 9924 57276% 8 1688 195100% WC1 5341 552101%26 2577 86930% 27 7919 42134%

25. Higher numbers in the north east of SA and metros

26. 26 Spatial distribution of work opportunities 1 Apr 2014 – 30 September 2014 Al 8 metropolitan municipalities are in the top 20 with the first 6 positions going to metros. Top 10 municipalities: Mangaung Metro in 16 th place with 6 901 WO CodeMunic nameProvCWPEnvironInfraNPOSocial TOTAL WO ETHEthekwini MetroKN 2 14128 8902 6683 25636 955 JHBCity of Johannesburg MetroGP6 3925 78216 7957335 08934 791 BUFBuffalo City MetroEC5099810 1421 18214 84927 221 CPTCity of Cape Town MetroWC 8 1285 5961 83110 94726 502 TSHCity of Tshwane MetroGP7511 5965 9695565 46323 659 EKUEkurhuleni MetroGP203 3232 0073078 50514 162 MP322MbombelaMP2 2742 9703 7102 0801 71012 744 EC157King Sabata DalindyeboEC1 5978548 24975185212 303 EC442UmzimvubuEC1 1129059 1818148412 096 NMANelson Mandela Bay MetroEC 2 5785 8131 2541 26910 914

27. 27 Work opportunities as percentage of Designated groups by Sector (April 2014 – September 2014)

28. 28 EPWP Progress against designated groups targets Overall, the programme achieved the 55% women target. The programme achieved 46% against the 55% youth target and 1% against the people with disabilities target. The Environment and Culture sector, is the only sector that has achieved the 55% youth target. The NPO programme under the Non State sector is the only sector that has achieved the 2% target for people with disabilities.

29. 29 Overall Average Minimum Wage per Category (April 2014 – September 2014)

30. 30 EPWP Progress against Minimum daily wage The majority of projects reported a minimum daily wage of more than stipulated daily wage. Only 17% of the projects reported a daily wage that is less than R71. 49% of projects reported a minimum daily wage between R71 and R100 whilst 23% reported a minimum of R105 and R150 per day.

31. 31 Average Minimum Daily Wages per Sector (April 2014 – September 2014)

32. 32 EPWP Progress against Minimum daily wage The majority of projects that reported a minimum daily wage of less than stipulated daily wage are from the social sector. Only a small percentage 2%, 2% and 3% were reported by the other sectors (Environment and Culture, Infrastructure and Non state sectors respectively.

33. 33 Average Labour intensity category per Sector (April 2014 – September 2014)

34. 34 EPWP Expenditure per economic classification Economic Classification Budget Allocation 2014/15 R'000 Exp as at 30 November 2014 R'000 Exp as at 31 December 2014 R'000 Exp % as at 31 December 2014 R'000 Exp % as at 31 December 2013 (R'000 Available Budget R'000 Compensation of Employees 133 233 74 776 85 85164%70% 47 382 Goods and Services 136 158 73 239 83 24661%44% 52 912 Transfers and Subsidies 1 679 110 1 441 052 1 471 23688%84% 207 874 Machinery and Equipment 2 779 1 096 1 22844%32% 1 551 Totals 1 951 280 1 590 163 1 641 56184%79% 309 719

35. 35 Notes for the Expenditure Current payments  Compensation of employees expenditure is R85.8 million and expenditure is equivalent 64% of the total allocation for EPWP. Expenditure is within the guideline of 75%.  Goods and services expenditure is R83.2 million. Expenditure is equivalent to 61% of the total budget allocation. Transfers and subsidies  Transfers and subsidies expenditure is R1.4 billion against the budget of R1.6 billion. The expenditure is equivalent to 88% of the total allocation. Payment for Capital Assets  Machinery and equipment expenditure is R1.2 million and it is equivalent to 42% of the allocated budget of 2.7 million.

36. 36 Expenditure per Sub-Programme Sub Programmes Budget Allocation 2014/15 R'000 Exp as at 30 November 2014 (R'000) Exp as at 31 December 2014 (R'000) Exp % as at 31 December 2014 (R'000) Exp % as at 31 December 2013 (R'000) Available Budget R'000 Expanded Public Works Programme 261 541 149 196 159 66661%56% 101 875 Performance Based Incentive Allocation 1 689 754 1 451 746 1 481 89588%83% 207 859 Totals 1 951 295 1 600 942 1 641 56184%79% 309 734

37. 37 Transfers and Subsidies Expenditure Economic Classification Budget Allocation 2014/15 R'000 Exp as at 30 November 2014 (R'000) Exp as at 31 December 2014 (R'000) Exp % as at 31 December 2014 (R'000) Exp % as at 31 December 2013 (R'000) Available Budget R'000 EPWP Integrated grant to Provinces 348 947 316 990 328 12394%92% 20 824 EPWP Integrated grant to Municipalities 594 575 399 920 411 50469%63% 183 071 Social Sector EPWP incentive grant for prov 257 972 246 576 254 00898%93% 3 964 Households 150 85 12080%0% 30 Non State Sector 477 481 100% - Totals 1 679 125 1 441 052 1 471 23688%82% 207 889

38. 38 Notes to Transfers and Subsidies Expenditure  Social Sector grants – 98% of the allocation was transferred to provinces as at end of November 2014.  Integrated grant to Provinces - 94% of the allocation was transferred to provinces.  Integrated grant to Municipalities – 69% of the allocation was disbursed to municipalities.  Households – 80% expenditure has been achieved.  Non State sector – 100% of the allocation was transferred to IDT as at to date.

39. 39 Progress on the EPWP 4 th Summit From the 28 th to 29 th November 2014, the EPWP hosted the 4 th EPWP Summit. The aim of the Summit was to ensure that EPWP implementers from all spheres in particular the municipal sphere to ensure they contribute to the following objectives:  Accelerate the implementation of EPWP by all implementing bodies.  Introduce EPWP Phase 3 to all implementing bodies.

40. 40 Progress on the EPWP 4 th Summit…cont’d Below are the resolutions taken at the summit:  All municipal protocols should be signed by the 30 th June 2015.  All EPWP municipal policies should be endorsed by 30th June 2015 and the DPW will provide technical support to Municipalities in this regard.  All spheres of government should ensure that there is dedicated capacity to coordinate and implement EPWP.  EPWP district forums or similar structures should meet on a regular basis, at least quarterly.  All public bodies should continue to ensure that there is proper record management for EPWP projects and the DPW undertakes to develop an appropriate Management Information System for EPWP phase 3 by 30th June 2015.

41. 41 Progress on the EPWP 4 th Summit…cont’d  All municipalities should continue to prioritise EPWP in their Integrated Development Plans.  The principles of EPWP phase 3 should be applied during the implementation of EPWP projects.  The DPW and all lead sector departments should continue to liaise with relevant stakeholders to source funding for training and ensure that quality training is provided to EPWP beneficiaries.  The DPW and all lead sector departments should continue to provide technical support to all spheres of government to promote the implementation of the EPWP in the use of labour-intensive methods, promotion of community involvement, sustainable livelihoods, and convergence.

42. 42 Progress on Institutionalizing the PEP - IMC Several engagements with the office of the Deputy President and other relevant departments have taken place to discuss the operationalising of the PEP - IMC. The objective of the IMC is to ensure there is synergy and integration of Public Employment Programmes across government departments. Proposed structure for the PEP – IMC Deputy President of South Africa - Mr Cyril Ramaphosa will chair the Committee Committee to meet on bi-annual basis An Executive Committee comprising of relevant Ministers to be chaired by the Minister of Public Works DPW tasked to develop the TORs for the IMC which will be finalised in February 2015. 1 st IMC meeting scheduled for March 2015

43. 43 Challenges Delays in the approval of the TORs for the PEP - IMC by the office of the Deputy President Non attainment of person with disability and youth targets Non-attainment of FTEs targets – due to shorter duration of work opportunities. Social sector School Nutrition Programme not adhering to the minimum daily wage stipulated in the ministerial determination Poor reporting from the CWP

44. 44 Measures put in place to address challenges DPW will be engaging the office of the Deputy President to fast track the approval of the TORs for the PEP - IMC Technical support is being provided to public bodies to help them implement their projects labour-intensively and to report effectively. Engagements are being held with Organisations that represent persons with disabilities to improve their participation in EPWP. Engagements are being held with different programmes to enable them adhere to the EPWP minimum wage. Technical improvements are planned to improve the EPWP reporting system. Engagements are being held with CWP to improve reporting.

45. Thank You! 45