Compiled by Strategic Management Unit

1. SUMMARY:DPW 2009/10 – 2011/12 STRATEGIC PLAN PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS 09 June 2009 Compiled by Strategic Management Unit

2. The 2009/10 – 2011/12 Strategic Plan of the department is informed by the following government strategic documents: Current Medium Term Strategic Framework – annually revised. Fifteen Year Review – outlined the performance of government. 2009 Development Indicators – published annually by the Presidency. Medium Term Budget Policy Statement and the Budget vote. Millennium Development Goals. May 2009 Cabinet Lekgotla decisions STRATEGIC CONTEXT Compiled by Strategic Management Unit

3. Provide strategic leadership for effective and efficient asset management. Establish an enabling environment for the creation of both short and sustainable work opportunities for the unemployed. Contributing to the National Goal of Job Creation and Poverty Alleviation. Transformation and regulation of the construction and property industries to ensure economic growth and development. Ensure effective and efficient implementation of project management in the construction and property management environments . Effective stakeholder management for enhanced implementation of the Department’s mandate. Ensure effective corporate governance processes and sound resources management. Improved service delivery to meet clients expectations. Public Works Strategic Goals: Compiled by Strategic Management Unit

4. Strategic priority 1:Speeding up growth and transforming the economy to create decent work and sustainable livelihoods Minimise the impact of economic downturn on the country’s economic base (productive capacity, jobs, poverty alleviation measures) Transform the economy and build up national economic capability to accelerate growth to an average rate of 5% by the 2nd half of the mandate period Create jobs on a massive scale Strengthen competitiveness and promote SMMEs as cornerstone for growth of the economy and creation of self employment and other work opportunities Public Works response / Programmes: EPWP Phase 2 National Contractor Development Programme Develop and implement a Construction Strategy Implement Construction Charter Key Policy Priorities of Government: MTSF Compiled by Strategic Management Unit

5. Strategic priority 2: Massive programme to build social and economic infrastructure To reach a Gross Fixed Capital Formation ratio of 25% of GDP by 2014, Government will ensure sustained public investment growth of at least 10% over the medium term. Creatively access resources from various sources to continue with economic infrastructure programme in a manner that supports growth and employment creation, at the same time ensuring that the infrastructure strategy is planned for and implemented in an integrated manner. Continue programmes to provide and maintain health, education, library, recreation and other social infrastructure Public Works response / programmes: DPW is implementing eradication of mud schools and unsafe structures Explore opportunities to leverage the R787 billion to further upscale EPWP Through National Infrastructure Maintenance Strategy DPW will focus on public infrastructure Key Policy Priorities of Government: - Continued Compiled by Strategic Management Unit

6. Strategic priority 3: Comprehensive development strategy linked to land and agrarian reform and food security Aggressive implementation of land reform policies: Overhaul land reform and ensure that strategically located land is released for the most appropriate use without any delay. To improve service delivery and ensure quality of life in rural areas, Government will increase investment in the delivery of services through various programmes in education. health, housing, water, sanitation and energy Develop physical infrastructure in rural areas to support social and economic development (storage facilities, roads for transportation of produce, schools, health, etc) Revitalization and development of rural towns to serve as service centres for rural economies. Public Works response/ programmes: As a custodian of the state immovable assets, Public Works will: Prioritize rural areas using its asset foot print Align disposal policy to support rural development and land reform Through inner-city programme – rural areas will be prioritized. Key Policy Priorities of Government: MTSF (continue) Compiled by Strategic Management Unit

7. Strategic priority 4: Strengthen our skills and human resource base (major renewal of our skills and education system Ensure that training and skills development initiatives in the country respond to the requirements of the economy, rural development challenges and social integration Public Works response/ programmes: Public Works has identified a number of HRM initiatives namely: Learnerships Internships Review of Built Environment Policy will enhance skills needed in construction and property sectors. Key Policy Priorities of Government: MTSF (continue) Compiled by Strategic Management Unit

8. Strategic priority 6: Intensifying the fight against crime and corruption Establishment of a border management agency to manage migration, customs and land borderline control services and to efficiently coordinate services of other departments in the ports of entry Urgently combat the scourge of corruption in the public and private sector and in society in general Public Works response/ programmes: Continue to implement the Border Control Coordinating Committee decisions. Accelerate provision of correctional facilities and police stations. Key Policy Priorities of Government: MTSF (continue) Compiled by Strategic Management Unit

9. Strategic priority 8: Pursuing African advancement and enhanced international cooperation Continued prioritization of African continent Improving political and economic integration of the SADC Public Works response/ programmes: Working with DFA, currently building to PAP and Embassies to advance the African agenda. Strategic priority 9: Sustainable resource management and use Encourage sustainable resource management by focusing on the transition to renewable energy alternatives and energy efficiency Sustainable water use and preserving quality of drinking water Public Works response/ programmes: Energy efficiency; Water efficiency; Design and development of green buildings. Key Policy Priorities of Government: MTSF (continue) Compiled by Strategic Management Unit

10. Strategic priority 10: Building a developmental state including improvement of public services and strengthening democratic institutions Improving the capacity and efficacy of the state: Strengthen the capacity for medium to long term planning and M&E at the centre of government; integrate SOEs into planning processes; strengthen HRM&D components in departments; etc Improving the delivery and quality of public services Entrenching a culture and practice of transparent, honest and compassionate public service Public Works response/ programmes: Public Works has the following entities reporting to it. Planning within the department is done jointly with these public entities M & E function has been established. Utilize IDIP tool and GIAMA to realise the objectives of the developmental state. Key Policy Priorities of Government: MTSF (continue) Compiled by Strategic Management Unit

11. Implementation of Government Immovable Asset Management Programmes: Valuations and condition assessment of all state properties Energy Efficiency and Water Efficiency National and Provincial Implementation of the Government Immovable Asset Management Act (GIAMA Operational Implementation of the GIAMA Guidelines Operational Implementation of UAMP and CAMP. The implementation of the Construction and Property Charters. Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year Compiled by Strategic Management Unit

12. Implementation of Government Immovable Asset Management Programmes: In relation to the Property Charter, the implementation of the Property Reform Strategy. Asset Register Enhancement Programme for properties under the custodianship of National Government Immovable Assets. HRD initiatives in the built environment sector. The National Contractor Development Programme: as one of the initiatives to transform the construction sector. Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year Compiled by Strategic Management Unit

13. Departmental Strategic Programme: Refurbishment and maintenance of Land Ports of Entry (BCOCC project), as part of 2010 initiatives (Lebombo, Skilpadshek, Golela) and enhancement of border security. Building of Pan African Parliament (PAP). Implementation of the National Infrastructure Maintenance Strategy (NIMS). Inner-City Regeneration- renovation of public buildings. Expanded Public Works Programme (EPWP): Implementation of EPWP – Phase 2. Some of the programmes are: . Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year (continue) Compiled by Strategic Management Unit

14. Municipalities reporting on expanded public works programme: targets and support provided by Public Works; New job opportunities created through eradication of mud and inappropriate structures and targets set for the EPWP; Environmental Rehabilitation; Implementation of the National Youth Service (NYS) by the three spheres of government. Accesibility to National government department buildings for people with disabilities This is a compliance matter. Rehabilitation of underutilized and unutilized government buildings. Ups-caled home based care and early childhood development. Vuk’uphile programme. Proposed Programme of Action (POA) projects for implementation by DPW: 2009/10 financial year (continue) Compiled by Strategic Management Unit

15. DETAILED PRESENTATION OF THE STRATEGIC PLAN Compiled by Strategic Management Unit

16. Administration. Provision of Land and Accommodation. National Public Works Programme. Auxiliary and Associated Services. Property Management and Trading Account. Key Programmes: Compiled by Strategic Management Unit

17. Key deliverables over the medium-term include the following: Improve service delivery (Service Delivery Standards). Enter into Service Level Agreements with clients and monitor implementation effectively. Accelerate delivery and improve planning for Capital Works and Maintenance. Marketing of DPW mandate and policies to client departments. GIAMA implementation through: - updating of User Asset Management Plans (UAMS). - development of Client Asset Management Plans (CAMPS). - develop structure for GIAMA and NIMS. Ensure that all land ports of entry are well maintained and have adequate facilities. Asset Management Branch: Compiled by Strategic Management Unit

18. Assess, monitor and update Asset Register regularly. Implement Property performance standards and guidelines. Implement energy and water efficiency measures in government buildings. Reduce backlog on government building not accessible to people with disabilities Implement disposal policy. Accelerate implementation of rehabilitation of unused/ underutilized buildings Ensure that Capital Works and maintenance budgets contribute towards EPWP targets. Implement Option Analysis. Undertake valuation of state property portfolio. Asset Management Branch Projects: - Continued Compiled by Strategic Management Unit

19. Assessment of Spatial Development Frameworks for municipalities and User Asset Management Plans (UAMPS) for client departments to determine needs. Develop option analysis for client departments and agree on sites identified for accommodation purposes. Create precincts for client departments accommodation needs on identified sites and improve on site acquisition. Develop and implement building programme for client departments’ construction and maintenance project. Inner City Regeneration Projects: Compiled by Strategic Management Unit

20. Advance provision of job opportunities for youth, women and the disabled as well as BEE contractors. Develop and implement facilities management packages for client departments. Capacity building and development of project managers. Inner City Regeneration Projects: - Continued Compiled by Strategic Management Unit

21. Roll out Contractor Incubator Programme at 30% of construction budget. Identify and implement projects above R100m for sub-contracting to BEE contractors. Increase number of BEE entities to participate in the property industry through PIP. Improve prioritization of unplanned maintenance. Finalize disposal strategy as part of GIAMA requirements. Continuous update of Asset Register to enhance quality of data in PMIS in consultation with Asset Management. Improve efficiency on rental debtors management. Rehabilitation of state buildings as identified by Asset Management. Operations Branch Projects: Compiled by Strategic Management Unit

22. Manage and monitor implementation of incentive conditional grant through DoRA. Design and implement accountability and performance management mechanism for all spheres of government. Revise current Management Information System (MIS) to take into account the conditional grant interface. Review M&E framework for implementation by all stakeholders. Intensify marketing of EPWP. Review and redefine the programme management role for EPWP units, sectors and spheres of government. Develop and implement training funding strategy with DoL, SETAS and NT. Develop and facilitate the implementation of a generic training policy (in collaboration with DoL). EPWP Branch Projects: Compiled by Strategic Management Unit

23. Develop enterprise development best practice for implementation at sub-programme level. Review current conditions of employment jointly with DoL to improve ability of EPWP to reach its targets. Capacity building for project management implementers. Implement Community Works and non-state sector programmes. Review and refine methodologies and targets for infrastructure sub-programme. Provide support to Provincial Road Departments, public bodies implementing large projects as well as municipalities. Implement NYS programme. EPWP Branch Projects - Continued Compiled by Strategic Management Unit

24. Support and implement provincial Vukuphile building programme. Identify and implement EPWP projects within the DPW infrastructure programme. Enhance internal capacity for EPWP Identify and explore new areas of expansion. EPWP - Continued Compiled by Strategic Management Unit

25. Conduct research on construction and property sectors to identify areas where there is a need for intervention. Implement functional reporting framework on empowerment in the construction and property sectors. Increase number of BEE enterprises the sectors. Finalise and implement skills development strategy. Implement operational monitoring and evaluation system to assess performance of industries. Review legislation governing DPW Public Entities. Develop and implement the GIAMA Implementation Plan including operations guidelines. Amendment of Expropriation Policy. Policy Branch: Compiled by Strategic Management Unit

26. Co-ordinate DPW contribution to PoA (ASGISA, MDG as well as Havard research group). Capacitate the DPW-wide M&E unit. Create awareness of M&E within DPW. Monitor operations of business units for improved service delivery. Develop working group responsible of M&E comprising of officials at programme level. Develop and implement functional web-based M&E system. Implementation of DPW Strategic Plan. Align DPW programmes with government PoA. Ensure alignment between DPW strategic planning and the budgeting processes. DG’s OFFICE Compiled by Strategic Management Unit

27. Roll out implementation of Knowledge Management Strategy. Establish DPW Knowledge Innovation Centre. Develop and implement integrated risk management policy and framework. Identify and determine potential areas of socio-economic intervention and optimization. Build capacity of the Strategic Management Unit. DG’s OFFICE Compiled by Strategic Management Unit

28. Develop and implement the Corporate Services Framework for improved service delivery. Mainstream gender in all programmes of the Department. Establish a stakeholder forum to ensure that sector entities mainstream gender and disability. Manage relations between spheres of government relating to DPW mandate in terms of relevant Act and existing procedures. Provide integrated, holistic business / operational systems in line with the needs of DPW. Ensure a reduction in adverse Court orders and litigation risk. Manage and co-ordinate international relations by optimizing the impact of bilateral and unilateral co-operation entered into with international partners. Implement an integrated HR Plan. Corporate Services Branch: Compiled by Strategic Management Unit

29. Improve the Department’s budget management and expenditure control. Provide risk management and improved internal controls that will enable the department to maintain a clean audit. Provide effective supply chain management services that is responsive to the department’s needs and geared towards promoting BBBEE. Create an enabling environment for promoting experiential learning through internship and learnership programmes. Enhance compliance with PFMA, PPPFA and the enabling Acts of Entities. Provide effective support to entities of the department. Finance and Supply Chain Management Branch: Compiled by Strategic Management Unit

30. Roll out of GIAMA to provinces and municipalities Energy efficiency Valuation of state properties Implementation of Property and Construction charters NIMS Asset Register Condition surveys Maintenance backlog Roll out Inner City Programme to all nine provinces Water Efficiency Insufficiently Funded Programmes Compiled by Strategic Management Unit

31. PRESENTATION OF THE 2009/10 – 2011/12MTEF Compiled by Strategic Management Unit

32. Budget Allocation 2009- 2012

33. The additional funding received was for the following activities:

34. Breakdown of the inflation savings

35. Budget Allocations per Economic Classifications: Compensation as a % of the total budget = 16%,15%,13%

36. Compensation of Employees The compensation of employees allocation is not sufficient to both filled and vacant posts. With the current allocation of R 887 million it is projected that the department will be over spending with more than R 100 million. Goods & Services includes accommodation charges which accounts for almost 40% of the budget Transfers & Subsidies includes conditional grants and transfers to entities of the department Buildings and other fixed structure relates to funding allocated for capital projects undertaken by the department including the acquisition of land and property. Explanations

37. Budget Allocation per Programme

38. Conditional Grants EPWP Incentive Bonus AllocationDevolution of Property Rates Systems are in place to ensure effective monitoring and management of the conditional grants as captured in the DORA.

39. Property Management Trading Entity (PMTE)2009/10 Budget

40. Revenue R’000 Accommodation charges 2 546 161 Private leases 2 122 568 Management fees on MS 79 150 Augmentation from NT 608 411 Total Revenue 5 356 290 Expenditure Maintenance 2 535 242 Private leases 2 122 568 Property Rates (National) 538 600 Cleaning and Gardening 119 780 Admin 40 100 Total Expenditure 5 356 290 Projected Revenue & Expenditure for the PMTE

41. R’000 Land Affairs 4 411 Agriculture 15 155 Home Affairs 31 097 Defence 103 732 Arts & Culture 127 958 Justice 386 055 DCS 807 022 SAPS 864 138 Total 2 339 568 Client Capital for projects undertaken by DPW on their behalf

42. I Thank You