Honourable Minister for Economic Development, Mr. Ebrahim Patel,
President of SABTACO, Mr. James Matingi Ngobeni,
Programme Director, Mr. Gavin Cooper,
CEO of PRASA, Mr. Lucky Montana,
Esteemed Speakers,
Members of SABTACO,
Members of the media.
It is an honour for me to address this esteemed gathering of the South African Black Technical and Allied Careers Organisation (SABTACO). Over the last 22 years SABTACO has played a pivotal role in promoting the role of science, engineering and allied fields within the black community as well as playing an active role in assisting government towards the transformation of policies and strategies which affects the economic development of our country.
Today, I would like to share with you some of the challenges my department experiences within the construction industry as well as plans and initiatives the Department of Infrastructure Development will undertake in the current financial year
Upon arrival at DID in July last year, I commissioned a departmental scan, with an objective to identify strengths and weaknesses, and craft appropriate response plans. Among the findings on the state of the department was a need to review integrated systems in the department, skills shortages in key strategic and operational areas as well as an inappropriate organisational structure.
At the time, the composition of the department’s human resources was 80% administrative staff, and just 20% technical staff. For a department like ours, the picture is actually supposed to be the other way round, with the balance tilted in favour of technical staff, by at least 70 – 30 percent respectively. We have over the past year undertaken a concerted drive to recruit the technical expertise that will enable us to execute the construction and maintenance work we are mandated to undertake on behalf of various client departments.
Thus far we have recruited 214 technical staff, including 143 artisans and 71 engineering professionals. This is a clear indication of our commitment to strengthen the state’s technical expertise and thus radically improve the quality of service delivery. During the 2013/14 fiscal year we will continue relentlessly with our drive to attract and retain appropriate technical expertise required at all levels.
This commitment is reflected in the amount of resources allocated to human capital development. 33% of our budget is for salaries and remuneration, inclusive of R 21. 3 million for business process re-engineering to implement the infrastructure delivery management system (IDMS) model. IDMS is our core operating framework, which requires substantive investment in achieving the certification of our professionals with the relevant professional bodies.
Programme Director, it would be a great travesty if I did not use this platform to add my voice to those concerned with unscrupulous practices in the construction industry, involving large scale price collusion and cartel behaviour. The recent R323 million penalty imposed by the Competition Commission provides but a glimpse into an industry riddled with price collusion. As Government, we are resolute in our condemnation of these practices and will seek to root out such practices to ensure that our citizens receive rand-for-rand value.
2013/14 Projects
DID’s budget allocation for this fiscal year increased by 4% from the previous year representing a total budget allocation of R 1.47 billion. We plan to deploy these allocated financial resources efficiently in order to achieve maximal positive impact on the lives of Gauteng citizens.
Ensuring a long and health life for all citizens is a top priority of our Government. A big part of doing that is ensuring that quality health care services are rendered in appropriate and adequate infrastructure. In the last fiscal year we carried out projects to the tune of R 409 million aimed at improving health infrastructure.
In this fiscal year we will undertake 21 refurbishments and upgrades at hospitals, clinics, including psychiatric and neonatal wards, at health facilities such as Chris Hani Baragwanath Memorial, Tambo Memorial, Pholosong, Kopanong and Tembisa, among others.
Since November last year, there are 9 schools that are currently under construction across the Province. Chief Albert Luthuli Primary and Noordwyk High School are examples of what we can deliver with good project planning, budgeting, and project management.
It also affirms our strategic bias in favour of emerging women entrepreneurs in our procurement policies. Both schools have been built by women led contractors Motheo and Clear-Choice Construction, within record time. Chief Albert Luthuli was completed within record time of less than 4 months and Noordwyk is also on track for completion in under 6 months.
Key school construction projects for this fiscal year include the following:
- 14 new schools
- 29 restorative projects
- 13 grade R classrooms
Setting Gauteng on a sustainable and green trajectory
Our green and renewable energy strategy will help us respond decisively to the call made in the National Development Plan for the reduction of Carbon emissions. In line with national objectives, we will fast track the implementation of the Gauteng Integrated Energy Strategy and ensure that we all work towards achieving the targets and milestones set.
Our focus in the 2013/14 fiscal year will include the initial phases of a large scale rollout of roof top solar panels, to be installed on government buildings across the Province. This will enable us to harness the sun’s rays to meet, in part, government’s energy needs. We have quantified the available roof top space on government owned buildings to be approximately 8 million square meters.
Our calculations indicate that mass roll-out of solar panels on government roof tops will come at a cost of about R 11.2 billion and lead to the generation of up to 300 MW of electricity.
Gauteng has the most developed natural gas infrastructure in South Africa. This constitutes a natural gas pipeline infrastructure connecting from the supply source in Mozambique, through Secunda to Babelegi. March 2014 will herald the end of Sasol’s natural gas monopoly and the start of a natural gas industry regulated by NERSA.
It is at the back of these developments that our ambitious plans for natural gas are rooted. Our first project is the replacement of the 77 coal fired boilers in Gauteng hospitals with natural gas or diesel fired boilers. 21 boilers are planned for replacement this fiscal year and the balance over the next 3 years.
As part of this project, DID has entered into a partnership with iGas to conduct a feasibility study on gas infrastructure required to supply natural gas to hospital boilers. Our biggest showcase for the use of gas to meet hospital energy needs will be the tri-generation plant proposed for Chris Hani Baragwanath Memorial as a pilot project. In this regard, the consultation process with stakeholders such as the Department of Health, and Treasury is at an advanced stage.
In addition, the natural gas infrastructure will benefit households as the pipeline will run through townships and suburbs. Our initial research suggests that of the 3.9 million households in the Province, nearly 2 million are deemed to be middle class, a potential market for natural gas reticulation for cooking and heating, as is the case in many countries.
Through the guidance of Minister Ben Martins, we are now working with the team that is coordinating Strategic Infrastructure Project/ SIP 8, led by the IDC, for possible inclusion in the PICC initiatives.
Leading infrastructure maintenance
Our diagnosis of the infrastructure related challenges at our health facilities suggest a proactive approach to our maintenance regime and rapid response to breakdowns. With this in mind, we have developed a support structure that is best captured as ‘Twenty-Four -Seven, Three Sixty Five Strategy.
It commits us to:
- Attend to minor breakdowns within 24 Hours
- Major breakdowns within 7 days
- And carry out major refurbishments within 365 days.
At the heart of this strategy is deployment of skilled professionals, including artisans, engineers, technicians and inspectors at hospital level. Our plan is to have these skilled workers, who are able to carry out day to day maintenance as well as respond to emergencies.
To further enhance turnaround times and quality of work we have engaged the big hardware retailers to explore inventory management solutions that will ensure that replacement parts and consumables are available just-in time. This will ensure that niggling maintenance challenges are addressed swiftly as they arise, and that there’s no need to go through the whole procurement value chain for minor day to day maintenance. R10 million has been allocated for the implementation of the maintenance service delivery strategy.
Community Based Programmes and EPWP
During the current financial year we will continue to leverage our infrastructure spend to stimulate the economy by among others ensuring the empowerment of emerging enterprises through preferential procurement that prioritizes women, people with disabilities and youth, in the construction sector. R 224 Million has been allocated for Community Based Programmes.
R 130 Million will be dedicated to the revamped Expanded Public Works Programme, particularly to the provision of training and creation of jobs for targeted groups. For the 2013/14 financial year our target is to create 118 581 employment opportunities at Provincial level, and 77 289 at Municipal level, through the revamped EPWP. Of those, we are targeting 65 220 women beneficiaries, 47 432 youth beneficiaries and 2372 people with disabilities.
As part of our EPWP initiatives, we will this year enroll 20 emerging contractor companies on our Contractor Incubation Programme. We have set aside R 840 000 for the implementation of the Contractor Incubation Programme, and plan to implement programmes to the value of R500 000 for emerging companies.
Supply chain management
In order to align our procurement processes with our stated developmental outcomes, while at the same time ensuring value for every cent of taxpayer’s money we spend, our supply chain management processes are currently under review. In the past financial year we reconfigured our bid committees, to ensure fairness of the procurement process.
Bid Committees have been reviewed, with Bid Specification Committees and Evaluation Committees now being appointed on a project by project basis, while the Bid Adjudication Committees are appointed per financial year.
Our SCM unit is currently implementing the electronic supplier database which will be localized with more emphasis on cooperatives, youth, women, people with disabilities, quotation management as well as contract management. We are also reviewing SCM policy, business processes, charters and delegations in order to improve turnaround times. Measures we have implemented to curb fraud and corruption include the compilation of a risk register.
Conclusion
Members of SABTACO, the Department of Infrastructure Development remains focused and steadfast in our commitment to transforming the department to be the premier construction and project management organisation of the Gauteng Provincial Government, which holds its own against players in the private sector, in terms of efficiency, effectiveness, and innovation.
I thank you.
