1. DBE BRIEFING TO THE STANDING COMMITTEE ON APPROPRIATIONS 03 September 2014 Cape Town

2. ASIDI BACKGROUND 2

3. SCHEDULE 7: SCHOOL INFRASTRUCTURE BACKLOGS GRANT (Brief outline of the conceptualization) 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 Schools Infrastructure Delivery Initiative) 3

4. ASIDI IMPLEMENTATION STRUCTURE 4

5. ASIDI : PROGRAMME IMPLEMENTATION STRUCTURE 5 The programme is driven by Department of Basic Education (DBE) which has established a Project Support Unit to support the Programme Manager. The DBE works closely with its provincial counterparts at Provincial Education Departments (PEDs) to prioritise and assess the needs for specific projects. PEDs interact with the Provincial Public Works Departments as custodians to coordinate the improvement of the facilities. DBE appoints Implementing Agents to manage batches of projects. The Implementing Agents appoint professional service providers and contractors to execute the work.

6. ASIDI : PROGRAMME IMPLEMENTATION STRUCTURE 6

7. ASIDI SCOPE 7

8. ASIDI SCOPE OF WORKS InappropriateElectricitySanitationWater Provinces Baseline Actual to date Baseline Actual to date Baseline Actual to date Baseline Actual to date Eastern Cape 442458317221344270619538 Free State 30 14387684610164 Gauteng 2022281400 KwaZulu Natal 3311615614050230255 Limpopo 3314257778121102 Mpumlanga 55148538211719 North West 2241429211615 Northern Cape 11002617129 Western Cape 22257721 44 Total51052791653574153811201006

9. ASIDI SCOPE OF WORKS (objectives and intentions) On all four sub-programs the services provided adhere to GUIDELINES RELATING TO PLANNING FOR PUBLIC SCHOOL INFRASTRUCTURE Inappropriate structures (entire mud schools, plankie schools, corrugated sheeting structures and prefab schools which are no longer fit-for-purpose) –Learning and teaching spaces, water, sanitation, electricity and furniture Water Supply (schools that never had water) –Municipal connection where reticulation exists. –Ground water exploration and boreholes where the yield and water quality is of acceptable standard. –Rain water harvesting and Elevated water tanks for storage of potable water for immediate or future use. Sanitation provision (schools that never had sanitation) –Waterborne sewerage systems where sufficient water is available, –Enviro-loos as well as –Ventilated Improved Pit (VIP) Latrines. Electrification (school that never had electricity) –As far as is possible Schools are connected to the electrical grid through ESKOM. –In those instances where Grid Electricity is not available Solar Electricity is provided.

10. EASTERN CAPE PROVINCE Inappropriate Schools IA Date of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented DBSA BATCH 113-JUNE-115010049 DBSA BATCH 227-NOVEMBER-1250000 CDC23-AUGUST-123280125 IDT Batch 123-AUGUST-121420012 IDT Batch 206-JUNE-1336000 EC DPRW23-AUGUST-1216033 National DPW30-SEPTEMBER-1336000 Total 2341134224 1. Number of projects being implemented

11. EASTERN CAPE PROVINCE Water and Sanitation – No of Projects Implemented IADate of Appointm ent No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented TMT (BATCH1) WATER Oct 2011 84000 TMT (BATCH 1 ) SANITATION 60000 Total (TMT) BATCH 1144000 TMT (BATCH 2) WATER May 2013 121181720106 TMT (BATCH 2) SANITATION 5727113049 Total (TMT) BATCH 2178452850155 IDT (BATCH 1) WATER May 2013 134600128 IDT (BATCH 1) SANITATION 7970072 Total (IDT) BATCH 12131300200 IDT(BATCH 2) WATER June 2013 9620094 IDT (BATCH 2) SANITATION 59130046 Total (IDT) BATCH 21551500140 CSIR(BATCH 1) WATERMay 20131650390126 CSIR(BATCH 1) SANITATION May 20135007043 Total (CSIR) BATCH 1 2150460169

12. FREE STATE PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented IDT21-Jun-1210000 DBSA27-Nov-121000111 FS DoE14-May-13103029 Total 30303

13. FREE STATE PROVINCE Water and Sanitation IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructur e No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented FS DoE Water 14-Dec-123703034 FS DoE Sanitation 14-Dec-123603033 FS DoE Electricity 14-Dec-12640131263 Total 13701912130

14. GAUTENG PROVINCE Water and Sanitation 1. Number of projects: IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented Electricity: 2011/201204-May-1220002 Water: 2013/201404-May-1200010 Sanitation: 2011/201204-May-1277077 2013/201404-May-121414+40117 Total 232502826

15. KWAZULU NATAL PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented Adopt A school27-Nov-1330003 Total 30003

16. KWAZULU NATAL PROVINCE Water and Sanitation IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented MW WATER07-Dec-127971071 MW SANITATION 07-Dec-12103007 Total (MW) 89101078 CDC WATER07-Dec-127042064 CDC SANITATION 07-Dec-122022016 Total (CDC) 9064080 IDT WATER07-Dec-126921773 IDT SANITATION 07-Dec-1220211027 Total (IDT) 894217100

17. LIMPOPO PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented DBSA27-Nov-1230003 Total 30003

18. LIMPOPO PROVINCE Water and Sanitation IADate of Appointmen t No of projects Allocated as per Appointmen t letter No of projects Cancelled due to sufficient infrastructur e No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemente d Water10-May-201277110066 Sanitation10-May-20123820036 Total10-May-12115 13 00102

19. MPUMALANGA PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented DBSA 27- NOVEMBER - 1250335 Total 5335

20. MPUMALANGA PROVINCE Water and Sanitation – No of Projects Implemented IADate of Appoint ment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented TMT (BATCH1) WATER May 2012 2506019 TMT (BATCH 1 ) SANITATION May 2012 10011221 Total (TMT) BATCH 1 35071240

21. NORTH WEST PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented DBSA 27- NOVEMBER - 1220112 Total 20112

22. NORTH WEST PROVINCE Water and Sanitation IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructur e No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented Batch 1: DoE NW5 Dec 2011 28130015 ** IDT Water 30003 ** IDT San 12000 Batch 2: DoE NW Water 12-Sep-131210011 DoE NW San12-Sep-1391008 Total 49150034

23. NORTHERN CAPE PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented DBSA 27-NOVEMBER -1210111 Total 10111

24. NORTHERN CAPE PROVINCE Water and Sanitation IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented PED WATER14-Dec-1254001 PED SANITATION 14-Dec-122112 on hold020 Total 2652 on hold021 Split on above per PED appointed IA: PED water 94005 PED sanitation 10001 IDT San 711 On Hold 06 Public Works San 901 On Hold 09 Total 2652 On Hold 021

25. WESTERN CAPE PROVINCE Inappropriate Schools IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented WCED17-MAY-1225 (14 +11)00025 Total 25

26. ELECTRIFICATION IADate of Appointment No of projects Allocated as per Appointment letter No of projects Cancelled due to sufficient infrastructure No of Projects Cancelled due to closures No of Projects added as change of scope Total No of Projects to be implemented ECOCT-201131782239221 KZN59132112156 LIMPOPO2116005 MPUMALAN GA1357013153 NW50104 Total 53718139122439

27. ASIDI PROGRESS 27 –Overview of historic performance –None financial performance –Financial performance

28. ASIDI implementation stages 28

29. ASIDI IMPLEMENTATION PROCESSES Building of a school is a multi year process and various factors contribute to the determination of the period to complete one. The optimistic estimated target by the DBE is 18 months from project initiation to practical completion. Some of the factors which contribute towards increased time are: –Many of the schools require decanting before commencing with construction of the works. –The size of the school –State of access roads to the schools for mobilisation and delivery of material to the sites. –Poor performance by service providers and related terminations –IAs Internal processes Typical stages followed for the building of schools Prepare Brief to IAs Appoint IAs IAs prepare IPIP Approx. 6 wks Stage 1: Planning Prepare procurement documents Request for Tenders Evaluation and award Appointment of PSPs Approx. 8 wks Stage 2: PSP Procurement Assessment of sites Concept Design Design Development Approx. 8wks Stage 3: Design Prep. procu. Documents Request for Tenders Closing, eval. and award Appoint Contractor Approx. 6wks Stage 4: Contractor Procurement

30. ASIDI IMPLEMENTATION PROCESSES Administer contract Approx. 12 to 16 months Stage 5: Works Finalise and assemble record info Handover the works and record info Approx. 2wks Stage 6:Handover Correct defects Finalise all outstanding contractual obligations Approx. 90days Stage 7 : Close out Appointed Implementing Agents (IAs) to build new schools: –DBSA (121), IDT (58), CDC (24), ECDPW (16), NDPW (36), FSED (9) and WCED (25) Examples of actual implementation periods by some of the IAs: –In the EC, DBSA was appointed in June 2011 and the first school was completed in October 2012 and the last was completed in March 2014. Construction started in Jan 2012. –Therefore construction period took between 10 months and 26 months –The entire process however took 33 months.

31. ASIDI IMPLEMENTATION PROCESSES In the WC: –WCED appointed on the 17th May 2012 and the first school reached PC on the 06th May 2014. –Construction started in Jan 2013. Where termination of contracts is experienced the period is extended further. –The entire process however took 24 months. In the Mpumalanga: –DBSA was appointed on the 17 th November 2012. –Construction started in Dec 2013 and the first school is scheduled to reach PC at the end of August 2014 (8 months). –The entire process would have taken 21 months.

32. ASIDI IMPLEMENTATION PROCESSES In the EC: –IDT, CDC and ECDPW were appointed in May 2012 –IDT, Construction started in Feb 2013 and the first school was completed on the 07 th January 2014. 13 months of construction. Entire process took 19 months. –CDC, Construction started in Jan 2013 and the first school was completed on the 03 rd March 2014. 14 month of construction. The process thus took 21 months. –No school from ECDPW In the FS: –IDT, was appointed in June 2012 but to date no school has been completed.

33. ASIDI PROGRESS – INAPPROPRIATE SCHOOLS Sub ProgrammeInappropriate schools Fin Year Target 2011/122012/132013/142014/152015/16 APP targets510-49140150 171 No of schools and the year of roll out 4915199 Year of Completion 173622 Appointed IAs are DBSA, IDT, CDC, Adopt A Schools, ECDPW, NDPW, FSED and WCED. 299 schools have been allocated to IAs. The balance of the projects are in EC. Since inception 75 schools have been completed as follows: –In Eastern Cape 70 schools have been completed –In WC 4 schools have been completed –In Mpumalanga 1 school has been completed

34. ASIDI PROGRESS - WATER Sub ProgrammeWater Fin YearTarget 2011/122012/132013/142014/15 App Targets1120188932-- Completed225 1564920 Implementing Agents are KZNED, WCED, NWED, GED, FS ED, CSIR, Mvula Trust, IDT, CDC and Mhlathuze Water. All projects are in implementation. Since inception 225 schools have been completed as follows: –In Eastern Cape - 84 –In FS - 30 –In Gauteng – n/a –In KZN - 20 –In Limpopo - 84 –In Mpumalanga - nil –In NW - 3 –In NC - nil –In WC - 4

35. ASIDI PROGRESS - SANITATION Sub Programme Sanitation Fin Year Target 2011/122012/132013/142014/15 APP targets 741354387-- Completed275 1886423 Implementing Agents are KZNED, WCED, NWED, GED, FS ED, CSIR, Mvula Trust, IDT, CDC and Mhlathuze Water. All projects are in implementation. Since inception 275 schools have been completed as follows: –In Eastern Cape - 103 –In FS - 13 –In Gauteng – 14 –In KZN - 50 –In Limpopo - 68 –In Mpumalanga - nil –In NW - 6 –In NC - nil –In WC - 21

36. ASIDI PROGRESS - ELECTRIFICATION Sub ProgrammeElectrification Fin YearTarget 2011/122012/132013/142014/15 APP Targets914 231 683 Completed265 1447744 Implementing Agents are WCED, GED, FS ED, and ESKOM. All projects are in implementation. Since inception 265 schools have been completed as follows: –In Eastern Cape - 152 –In FS - 23 –In Gauteng – 2 –In KZN – 43 –In Limpopo - 5 –In Mpumalanga - 31 –In NW - 2 –In NC - n/a –In WC - 7

37. ASIDI EXPENDITURE (Financial Performance) 37

38. ASIDI ACTUAL EXPENDITURE AND PROJECTED ALLOCATIONS 2011/12 Expenditure 2012/13 Expenditure 2013/14 Expenditure 2014/15 Allocation Forward Estimates 2015/162016/17 76 084.00 859 628.00 1 392 307.20 2 938 503 2 433 310 2 610 662 In 2011/12 allocations were R700mil and Expenditure was R76mil (10%) In 2012/13 allocations were R2,065mil and expenditure was R859mil (42%) In 2013/14 allocations were R1,955mil and expenditure was R1,357mil (69%) Total spent for the firs 3 years was R2,293mil Expenditure on the current allocation is R365mil and invoices in process are R244 mil Therefore adjusted expenditure is R609mil which is 24% of the allocation.

39. COMMITMENTS / EXPENDITURE - 2014/15 Fin Year (1)

40. COMMITMENTS / EXPENDITURE - 2014/15 Fin Year (2)

41. CASH FLOW COMPARISON AGAINST NT ALLOCATION

42. 4 MONTH CASH FLOW COMPARISON - AGAINST IA SUBMISSIONS (1)

43. 4 MONTH CASH FLOW COMPARISON - AGAINST IA SUBMISSIONS (2)

44. Graphs Indicative figure of R609 mil at end of August R3.3 Bil - IRM R2.9 Bil - NT R2.2 Bil - EFMS

45. 45 COMPARISON Commitments In Summary: Total Commitment since Inception:R10 084 165 565 Total Expenditure since Inception:R 3 167 200 431 (31.4%) OutstandingR 6 916 965 134 (68.6%) ********************************************* Expenditure against 2014/15 NT Allocation: ASIDI Allocation 2014/15: R2 938 503 000 Minus WC: (R 396 697 000) R2 541 806 000 Actual Expenditure at 2014/07/31 R 364 918 434 ( 14.4%) Balance at 2014/07/31: R2 176 887 566 ( 85.6%)

46. CLAIMS IN PROCESS

47. CHALLENGES AND LESSONS LEARNED 47 ASIDI CHALLENGES AND LESSONS LEARNED

48. ASIDI – Challenges and Lessons learned ASIDI is the first infrastructure programme that is being implemented by DBE. DBE therefore appointed the Programme Manager and the Programme Support Unit in October 2011 as an attempt to increase the technical capacity the programme requires. –However, the unit remains challenged and limited in its ability to speed up implementation as it has limited authority and has to operate through the existing DBE structures which in their nature are not aligned to infrastructure delivery processes such as procurement, financial accounting, project and information management systems, etc. –DBE has not been able to ramp up and implement ASIDI at the required speed due to the structure of the unit and internal processes. 48

49. ASIDI – Challenges and Lessons learned ASIDI expenditure was extremely low in the first year (Y0) of the grant 2011/12 and whereas it has improved slightly, it remains undesirably low in its (Y1) 2012/13. –One of the reasons is that the budget was made available during the 2010 Mini-Budget and as a result there was no sufficient time to align the planning and budget cycles “Alignment Model” for the 2011/12 implementation. –This resulted in an attempt to concurrently undertake planning and implementation through the limited technical resource capacity at DBE. Experience has proven that it takes a minimum of 6 months to plan and 12 months to construct a school. E.g DBSA MOA July 2011 and Construction started in Jan 2012.

50. The urgency of the programme and lack of technical capacity at DBE necessitated the use of IAs as a mode of ASIDI delivery, IAs had to use their own procurement policies. 96% of them are government entities and were therefore faster to procure without having to go through competitive bidding. However it is apparent that technical capacity of many of these Implementing Agents is not sufficient to meet the requirements of the programme and this has resulted in poor performance. Currently DBE has 8 IA relationships on Inappropriate Schools and 10 on Water & Sanitation and 4 on Electrification. –DBE has had to, through its limited technical capacity in the PSU work with IAs to improve performance than terminate these relations due to: Contracts between DBE and IAs are not firm enough to allow for quick termination and replacement There are limited government entities to use as IAs Procurement of alternative IAs would delay progress The PSU has finite technical capacity and cannot take over and manage projects after termination Therefore termination would have left DBE in a worse off situation (IPMP-ASIDI Unit) 50 ASIDI – Challenges and Lessons learned

51. IAs underestimated the capacity required from Professional Service Providers and contractors at project level –This resulted in over allocation of projects to both PSPs and contractors. –Consequently they were over stretched and performed poorly in most instances Professional Service Providers are stretching their resources thinly between the ASIDI programme and other infrastructure programmes resulting in delayed deliverables and lack of sufficient attention to details.

52. It has been costly and complex to provide services in areas where the local government has not provided bulk infrastructure such as water, sanitation and electricity. ASIDI is limited in its ability to ensure sustainability of provided services beyond provision of capital infrastructure, Sustainable water supply provision by water service authorities Sanitation maintenance, observation and monitoring of ground water protection Electrification at schools within villages with no electricity Electrification projects and electrification of Inappropriate schools were not being treated as a special projects by ESKOM, thus had to follow the ordinary application processes. 52 ASIDI – Challenges and Lessons learned

53. Majority of the ASIDI backlogs are in the remote rural areas where access to the sites is difficult due to the topography and poor road conditions. This has resulted in difficulty in delivering materials to sites. In addition the roads are not accessible during rainy season. This has resulted in valid delays to construction progress and extension of time claims from contractors. Relevant authorities need to improve and maintain infrastructure. Poor performance of some contractors necessitated termination of contracts, replacement turnaround time has been too slow due to a variety of reasons and it has resulted in further delay to completion of projects. –TBP contract was terminated on the 11 Sept 2012 and replacement contractors started in Dec 2012 –Therefore there is a need to have a database/panel of service providers from which DBE and IAs may procure. There are existing private companies and NGOs ( e.g. Adopt a School) who are implementing quality school projects around the country at a significantly low costs due to models of delivery, DBE has attempted to enter into such an agreement as pilot projects with great difficulty. 53 ASIDI – Challenges and Lessons learned

54. ASIDI reporting and information management is poor due to lack of systems. Acquisition of systems has proved to be impossible due to the prevailing moratorium. And this is leading to non compliance on reporting requirements. Critical implementation constraints were experienced, particularly in the Eastern Cape, with the amount of investment in the short period of time. This led to a shortage of bricks and cement. Implementing agents in the Eastern Cape must in particular consider the fact that the supply of cement, stone and aggregate are dominated by La Farge and that may lead to undue price inflation on behalf of the suppliers. 54 ASIDI – Challenges and Lessons learned

55. Critical supplies will have to be monitored on a monthly basis and such undue price increases would lead to the DBE delaying the award of packages to the Implementing Agents to cool down the market in the Eastern Cape. Over 200 schools are affected by rationalisation and mergers. Often schools issued to IAs had to be replaced by those with higher enrolments whilst ECDoE decide what it does with such schools. The list on ASIDI has been challenged in many instances due to a number of schools which have been excluded. 55 ASIDI – Challenges and Lessons learned

56. WAY FORWARD ON ASIDI 56

57. ASIDI - WAY FORWARD To mitigate against IA, PSP and Contractor resources MOAs have been amended and/or Addenda issued –Limits IA PMs to managing 10 schools on IS and 35 on W&S –Limits PSPs to 5 IS and 35 W&S –Limits contractors to 3 schools –Provides for IA penalty clause –It gives DBE authority to take over schools in the event of non performance Establishment of Framework Agreements –DBE set about a process to establish Framework Agreement which is a resource/pool of service providers from which DBE and IAs may procure, appoint, manage and pay service providers. –DBE is in the process of evaluating received proposals –This resource will be available to DBE and IA’s and should assist with shortening of procurement processes Required systems in implementation of ASIDI EFMS will be used as the programme management system on ASIDI 57

58. ASIDI - WAY FORWARD To accelerate and conclude current ASIDI targets by 2015/16 –Planning has been completed ito scoping and costing schools –Rationalisation and Mergers has to be completed –Framework agreements will be used, however condonation by NT, Accounting and Auditor General is required to allow contracting between IAs and service providers directly. –Implementation of needed resources on the ASIDI unit and availing of necessary budgets by NT will be required. –The use of required system through the services of the PSU will be implemented, therefore condonation required from relevant authorities Alternative construction Technologies ACT DBE has established a task team to investigate available ACTs in the market Request for information specification document has been prepared and will be advertised DBE based on the available ACT will establishing norms and standards to be used for schools 58

59. Website: www.education.gov.za Call Centre: 0800 202 933 | callcentre@dbe.gov.za Twitter: @DBE_SA | Facebook: DBE SA End