1. 20 FEBRUARY 2013 STANDING COMMITTEE ON APPROPRIATIONS (Progress on Accelerated Schools Infrastructure Delivery Initiative (ASIDI)) 1

2. ASIDI BACKGROUND 2

3. SCHEDULE 7: SCHOOL INFRASTRUCTURE BACKLOGS GRANT The purpose of the grant is – for the eradication of entire inappropriate schools; – provision of basic level of water, sanitation and electricity to schools. The grant is also referred to as the ASIDI (Accelerated School Infrastructure Delivery Initiative) 3

4. ASIDI Targets The targets are as follows: Infrastructure CategoryBaseline2011/20122012/20132013/2014 Inappropriate Structures49650100346 Water12571881069 Electrification878164714 Sanitation868354514 Specialist Classrooms50 MTEF ALLOCATIONS 2011/12R 700 2012/13R2 315 2013/14R5 189 TOTALR8 204 The budget allocation for the ASIDI programme over the MTEF period is R8.2 billion and allocated as indicated in the table below: 4

5. ASIDI PROGRESS 5

6. ASIDI TARGETS AND ALLOCATIONS The targets are as follows: 6

7. ASIDI TARGETS AND ALLOCATIONS Current allocation is R2.065bil and MTEF projections per province are as follows: 7 DepartmentName of allocationProvince Column A Column B 2013/14 Allocation Forward Estimates 2014/152015/16 R'000 Basic EducationSchool infrastructure backlogs Eastern Cape 824 085 2 165 542 2 932 301 Free State 717 299 613 161 40 000 Gauteng 13 060 16 800 - KwaZulu-Natal 224 433 38 096 - Limpopo 71 267 20 000 - Mpumalanga 64 104 4 700 - Northern Cape 25 189 18 200 - North West 16 544 14 400 8 009 Western Cape 533 019 418 604 92 000 Unallocated - - - TOTAL 2 489 000 3 309 503 3 072 310

8. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 8 ProvincesIAs Appointed No of Inappropriate Schools /Fin yrTotal 2012/132013/14 ECDBSA EC4950 99 IDT EC 11 COEGA 24 DPWEC 16 TBA 32 Free StateDBSA FS 10 IDT FS 10 TBA 10 KwaZulu-NatalAdopt A Schools 3 3 LimpopoDBSA Lim 3 3 MpumalangaDBSA Mpu 5 5 Northern CapeDBSA NC 1 1 North WestDBSA NW 1 1 Western CapeWCED 1411 25 Total 4914853250 In Summary the following IAs have been appointed for implementation of the inappropriate schools on ASIDI

9. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 9 ContractorContract NoNo. SchSch IDSchool NameBuilding Progress Building Progress (Mean) Armstrong RFP 29/2011-E 12 Schools 1Qaka JPS93.70% 85.00% 2Ntsonyini JSS82.00% 4Ngidini SPS96.20% 10Ndluzula JPS83.10% 11Nomandla SPS98.60% 15Gcinizizwe SPS97.30% 20Maqolo SPS83.20% 24Jonguxolo JSS93.20% 27Vuyani SPS80.10% 30Sidanda SPS72.90% 36Tembeni SPS73.50% 38Sizwe JPS66.60% Keren Kula Construction RFP 31/2011-I 9 Schools 5Mpatiswa SPS100.00% 76.40% 7Zingisile SPS74.20% 14Goso JPS59.30% 18Eludikidi SPS60.00% 25Upper Mbange SPS81.70% 32Welese JSS96.40% 33Sizane JSS95.60% 46Nginza SPS67.20% 50Lower Mpako SPS53.20%

10. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 10 ContractorContract NoNo. SchSch IDSchool NameBuilding Progress Building Progress (Mean) SSI Mafuri JV RFP 29/2011-F1 6 Schools 12Manzabila SPS76.90% 87.10% 13Gqweza SPS97.50% 28Tshantshala SPS88.00% 29Mseleni SPS75.70% 31Mceteni SPS58.50% 37Maphindela SPS99.20% Ishvuyo RFP 29/2011-F2 6 Schools 16Gungubele SPS48.60% Sizisa Ukhanyo 21Mahahane SPS36.90% Ishvuyo 22Madwaleni SPS49.40% Alfdav 23Ludeke SPS44.40% Alfdav 34Sompa SPS22.40% Sizisa Ukhanyo 35Nkonkoni SPS59.20% Trencon Construction RFP 31/2011-G 5 Schools 3Notsolo SPS97.40% 96.50% 6Mqokolweni SPS91.40% 9Ndlovayiphathwa SPS100.00% 19Mdavuza SPS99.60% 26Dumile SPS99.90%

11. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 11 ContractorContract NoNo. SchSch IDSchool NameBuilding Progress Building Progress (Mean) Alfdav Construction RFP 31/2011-F x145Vulindlela JPS100.00% Base Major Construction RFP 31/2011-H x140Mazama SPS85.20% Cecils RFP 29/2011-C x148Kwezilethu JPS99.60% Inyameko / Vukukahnye JV RFP 31/2011-B x117Dikiso JSS58.40% Inyameko Deck Steel JV RFP 31/2011-C x141Thabatha SPS100.00% Ishvuyo Building ConstructionRFP 31/2011-E x144Dakhile JSS100.00% Leungo Construction RFP 31/2011-D x143Dumakude JPS81.30% Marnolda RFP 29/2011-B x147Kwenxura SPS99.00% Mauga Projects cc RFP 31/2011-A x18Nogaya SPS84.60% Setheo RFP 29/2011-A x139Mandlobe SPS53.60% Sizisa Ukhanyo RFP 29/2011-D x149Nobantu JPS99.60% 80.40%

12. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 12 DBSA is implementing 49 inappropriate schools and on average construction progress is at over 80.4%. 16 of the 49 schools have reached practical completion and handed over. 10 schools were planned for practical completion by end of Jan, however only 3 schools reached practical completion. 5 of the 10 schools are from Armstrong who is going through liquidation process and the schools could therefore not be taken. 17 schools were planned for practical completion by end of February, however 3 of 17 are from Armstrong cluster. 5 schools were planned for practical completion by end of March, 4 of 5 schools are from Armstrong cluster. 5 schools are planned for practical completion by end of April. DBSA received an initial and further cautionary announcement on Armstrong’s business state on the 24 January 2013 and 04 February 2013 respectively. DBSA is currently in the process of finding a replacement contractor to complete the 12 Armstrong schools. To date 2 contracts have been terminated and 1 is under going liquidation.

13. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 13 Terminated contracts and financial implications: Two contractors were terminated. The terminated contractors are InyamekoVukukhanye JV and TBP Civils. The terminated contract for InyamekoVukukhanye was R15.3 million. The replacement contractor was appointed at R14.0 million. The terminated contract of TBP Civils was R88.5 million and by the time of termination R19.4 million was already paid to the contractor as at September 2012. The costs for replacement contractors is R100.0 million bringing the contract value over with R11.5 million which will be recovered from the construction guarantee amounting to R8.85 million and a retention of approximately R2.3 million.

14. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 14 Company Name RFP 31/2011 Maunga Projects cc Luengo Construction Enterprises cc ALFDAV Construction cc Trencon Construction Base Major Construction Keren Kula Construction RFP 29/2011 Setheo Investment JV Marnolda Cecil's Building Sizisa Ukhanyo The following contractors were granted an extension of time to 20 Sept 2012: Company Name RFP 31/2011 Armstrong Construction RFP 29/2011 Stewart Scott/Mafuri JV The following contractors rejected an adjudication granting extension of time to 20 Sept 2012:

15. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 15 DBSA has now been issued with a second batch of 70 schools to implement. – 50 of the schools are in EC, – 10 in FS, – 5 in Mpumalanga, – 3 in Limpopo, – 1 in NW and – 1 in NC. – Projects are at the planning stage. The target is to complete these schools by end 2013/14 financial year.

16. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 16 CDC, IDT and DRPW have been appointed to implement 24, 11 and 16 new schools respectively in EC. CDC has completed contractor procurement process for 22 schools. Approvals to appoint accepted tenders on 20 schools have been granted to CDC by DBE. CDC handed over 17 schools to contractors and construction work has commenced, and 2 of the 24 schools are at planning stage. IDT has completed contractor procurement process for 10 of 11 schools and 1 school is at planning stage. Approval for appointment of accepted tenders for 10 of 11 schools has been granted to IDT. On DRPW, 6 schools are at approval stage for appointment of accepted tenders, 4 of DRPW schools are at contractor procurement stage, 3 at design stage and 3 at planning stage.

17. ASIDI PROGRESS ON INAPPROPRIATE SCHOOLS 17 WCED has been appointed to implement 14 schools in WC. A contractor has been appointed at 1 of the schools. 9 schools are at approval stage for appointment of accepted tenders and 4 schools are at contractor procurement stage. IDT has been appointed to build 10 schools in FS and all 10 schools are at design stage.

18. ASIDI PROGRESS ON WATER PROJECTS 18 Of the 1120 projects 1039 will be implemented by the implementing agents indicated in Table 5 below and respective financial years. 81 of 1120 schools have been provided with basic water by others. Water ProvinceNo of Schools Eastern Cape619 Free State101 Gauteng0 KwaZulu Natal230 Limpopo121 Mpumalanga17 North West16 Northern Cape12 Western Cape4 Total1 120

19. ASIDI PROGRESS ON WATER PROJECTS 19 ProvinceAppointed IATotal No of ProjectsNo of Projects per Financial year 2011/122012/13 and 2013/14 Eastern Cape 583 TBA 91 Mvula trust 84121 IDT 135 CSIR 152 Free StateFSDoE683038 GautengGauteng DoE Kwa-Zulu Natal 230 KZNDoE 10 IDT 69 Mhlathuze 79 CDC 72 LimpopoMvula Trust1153877 MpumalangaMvula Trust17 North WestNWDoE16 Northern CapeNCDoE6 6 Western CapeWCED44 Total 1039166873 In Summary the following IAs have been appointed for implementation of the water projects on ASIDI

20. ASIDI PROGRESS ON WATER PROJECTS 20 In EC: – Mvula Trust provided 35 schools with water, 49 are in the process of being provided with boreholes and the remaining projects are in planning. – IDT and CSIR are implementing agencies and their projects are still at planning stage. In FS DoE completed 30 water projects In Gauteng there are no schools without access to basic water. In KZN: – 10 KZN DoE projects are in construction stage. – IDT, Mhlathuze Water and CDC water projects are still at planning stage. In Limpopo Mvula Trust has completed 38 water projects. In Mpumalanga the projects are at planning stage In Northwest the projects are at planning stage. In Northern Cape the projects are at planning stage. In Western Cape and DoE completed 4 water projects and there are no schools without access to basic water.

21. ASIDI PROGRESS ON SANITATION PROJECTS 21 Currently there are 741 sanitation projects nationally in various stages of project progress and are indicated in the following table by province. 107 of 741 schools have been provided with basic sanitation by others. ProvinceNo of Schools Eastern Cape344 Free State68 Gauteng28 KwaZulu Natal140 Limpopo77 Mpumalanga8 North West29 Northern Cape26 Western Cape21 Total741

22. ASIDI PROGRESS ON SANITATION PROJECTS 22 In Summary the following IAs have been appointed for implementation of the sanitation projects on ASIDI ProvinceAppointed IAsTotal No of ProjectsNo of Projects per Financial year 2011/122012/13 Eastern Cape TBA59 Mvula trust1125557 IDT79 CSIR63 Free StateFSDoE491336 GautengGauteng DoE28721 KwaZulu Natal TBA77 KZNDoE50 IDT19 Mhlathuze13 CDC18 LimpopoMvula Trust754035 MpumalangaMvula Trust88 North WestNWDoE12 Northern CapeNCDoE21 Western CapeWCED21 Total 634186448

23. ASIDI PROGRESS ON SANITATION PROJECTS 23 In EC: – Mvula Trust in EC has completed 55 projects and is in the process of procuring PSPs and contractors. – IDT and CSIR projects are at planning stage. In FS DoE completed 13 water projects and is in the planning stage for batch no 2. In Gauteng, DoE completed 7 projects and are in planning stage for batch no 2. In KZN: – KZN DoE is in the process of completing 60 sanitation projects and planning to completion the projects by end march 2013. – 54 schools have reached practical completion – IDT, Mhlathuze Water and CDC water projects are still at planning stage. In Limpopo Mvula Trust has completed 40 sanitation projects and are in the process of procuring PSPs and contractors for their 2 nd batch. In Mpumalanga the projects are at planning stage. In Northwest, NWDoE is in the process of procurement of contractors.

24. ASIDI PROGRESS ON ELECTRIFICATION PROJECTS 24 Currently there are 916 electricity provision projects nationally in various stages of project progress and are indicated in the following table per province. 384 of 916 schools have been provided with electricity by others. ProvinceNo of Schools Eastern Cape317 Free State143 Gauteng2 KwaZulu Natal116 Limpopo142 Mpumalanga148 North West41 Northern Cape0 Western Cape7 Total916

25. ASIDI PROGRESS ON ELECTRIFICATION PROJECTS 25 In Summary the following IAs have been appointed for implementation of the electrificationprojects on ASIDI No of SchoolsFinancial year ProvinceIA2011/122012/13 Eastern CapeEskom300100200 Free StateFSDoE882464 GautengGDoE22 KwaZulu NatalEskom61 LimpopoEskom752 MpumalangaEskom612140 North WestEskom2 2 Northern Cape 0 Western CapeWCDoE77 Total 528159369

26. ASIDI PROGRESS ON ELECTRIFICATION PROJECTS 26 In EC, Eskom has electrified 85 schools, 15 at construction stage, 200 at planning stage. In FS DoE completed 23 electrification projects, 1 is awaiting Eskom to energise, 64 are at planning stage. In Gauteng DoE has completed 2 electrification projects and there are no schools without access to electricity. In KZN projects are at planning stage. In Limpopo 4 projects are completed and 1 awaiting outage. The remaining projects are at planning stage. In Mpumalanga 10 projects are completed, 11 in construction process and the remaining projects are at planning stage. In Northwest the projects are at planning stage. In Northern Cape there are no schools without electricity. In Western Cape and DoE completed the 7 electrification projects and there are no schools without electricity.

27. ASIDI BUDGETS,EXPENDITURE AND ADVANCE PAYMENTS 27

28. ASIDI BUDGET, EXPENDITURE AND ADVANCE PAYMENTS 28 The 2013/14 projects are estimated at R4,65 bil. Expenditure as at the end of the 3rd quarter was R476 mil An amount of R423mil has been made in advance to IAs as indicated in the table above. ProvincesIAs AppointedOldDecJanuaryFebruaryTotal ECDBSA EC R 38 454.00 R 192 146.00 R 230 600.00 IDT EC R 60 299.00 COEGA R 87 675.00 CountrywideESKOM R 45 296.00 Total R 83 750.00 R 87 675.00 R 60 299.00 R 192 146.00 R 423 870.00

29. OTHER ASIDI MATTERS 29

30. OTHER ASIDI ISSUES Framework Agreements, DBE is in the process of finalising a panel on Implementing Agencies, Built Environment Professionals and contractors. This resource is valid for a period of 3 years and should reduce the procurement period. DBE is in the process of evaluating suitable alternative building methods. The process will be concluded at the beginning of 2013. On approval by DBE, suitable alternative building methods will be used to implement some of the new schools. Rationalisation and Mergers, DBE awaits decisions from affected Provinces. Communication on ASIDI progress, DBE has established a webpage on the DBE website and a Quarterly Newsletter to give updates on ASIDI to stakeholders. 30

31. THANK YOU 31