Honourable Speaker
Honourable premier of Gauteng,
Colleagues in the Executive Council
Honourable members of the Gauteng Provincial Legislature
Distinguished guests
Members of the media
Ladies and Gentleman
This is the mid-term review of the current administration taking place in the year where the ANC, the oldest liberation movement in the continent of such a proud history celebrate its 100 years.
It is also taking place on the eve of 100 years since the enactment of the unjust land Act of 1913, which signalled one of the most brutal form of conquests and dispossession of Africans of their land by the apartheid state.
The Department of Infrastructure Development (DID) is a new department and its creation has been proved correct by the renewed affirmation of the role a programme of massive infrastructure development will play in developing the South African economy and its integration with the rest of the continent.
South Africa identifies itself as a developmental state whose role is to intervene in the economy to the extent of leveraging on its huge resources to ensure that the triple burden of poverty, unemployment and inequality are both qualitatively and quantitatively addressed. Such interventions take the form of policies and prescripts that redirect resource utilisation, unlock opportunities in certain sectors of the economy whilst ensuring acceleration of existing economies.
According to available literature a developmental state of the size of our economy must ensure the following:
- identify a vision that informs it's growth path
- establish and embed the institutional mechanisms necessary for implementation
- clarify roles and responsibilities of all stakeholders both in the public and private sectors
- obtain societal buy in for its policy and economic choices
- define the legal basis for the implementation mechanisms
This having been done, the developmental state must then do the following:
- identify the specific industries that require leveraging to realise its vision
- determine specific and realisable goals for each sector including all related up and down industries in the sectors, commonly known as the value chain
- channel resources both human and financial to purposefully drive the state agenda
- identify vertical and horizontal co-ordination and problem solving mechanisms
- allow relative decision making autonomy for all institutions driving the vision
This is not a numerous clauses of what the state may do to ensure that it becomes developmental, but it at least define common features of an orientation founded on the need to build a vibrant autonomous growth path, which favours development. Secondly they are generalisable enough to apply with some adaptation in various economic settings.
However a developmental state also has a responsibility to identify economic and social impediments; primary of which is infrastructure backlog. In this regard our government has demonstrated a commitment to address this challenge by among others establishing, a national co-ordinating mechanism tasked with driving infrastructure development and identifying areas of investment that require injection of both private and public sector resources.
Provision of socio-economic infrastructure remains a central objective of this government and is a catalyst for development and integration aimed at economic redress and growth.
Through integrated spatial frameworks, we aim to deliver social housing and facilities development that meets the objectives ensuring economic growth, a healthy population and accessible education opportunities. Integrated communities will only be possible if we plan in a manner that prioritises the provision of holistic economic and social services to communities. At the centre of this must be a sustained programme to deracialise spatially and provide equal opportunities to all, taking into consideration the needs of communities, particularly poor and vulnerable sectors of society.
Premised on the above we celebrate Youth Day by retracing the events that ensued on that day. This will enable us to witness how Soweto’s landscape has changed from a neglected spatially excluded township to a 21st century suburb. Three days ago we visited this route to inspect the Soweto Youth Monument as one of our programmes that contributes to Soweto as a spatially integrated suburb. The monument will draw on the history of the 1976 uprising and refocus the community as a centre of discussion and conferencing, interpretation and cultural exhibition. There will be a memorial wall of dedication that will demonstrate the history of the evolution of the youth struggles in honour of those that fell on that day.
The massive infrastructure injection in Soweto and other parts of Gauteng by this administration is yet another demonstration of our commitment to ensure redress, and also position our province as a destiny of economic development. This programme by government is part of the broader vision of the Gauteng Provincial Government, better known as Vision 2055.
The overall goal and purpose of the Gauteng Department of Infrastructure Development is to develop and maintain socio economic infrastructural conditions that allow all the people of Gauteng province to actively participate in economic and social life.
We join our President’s focus in his vision for a massive infrastructure drive in the country which will among others focus on health and social infrastructure. For this financial year, an amount of R1,3 billion has been allocated to the Department of Infrastructure Development (DID). These resources will be appropriated in fast tracking social and economic infrastructure projects; infrastructure planning, delivery and maintenance, building departmental capacity to deliver on infrastructure.
The Department initiated a process of reviewing the organisational structure to ensure the structure addresses the functions the Department has to perform within the Province. Although this process has not reached its final stages, DID has managed to stabilise the staffing environment by absorbing 416 contract workers to its permanent employ. Though we experience challenges with the unavailability of professional staff in the engineering and technical fields, we are continuing filling positions to address the capacity, both administratively and within the implementation branches, with special focus on capital works and maintenance. We have enlisted the services of a project and programme management capacity and have appointed a project manager accordingly.
The Department embarked on a long-term strategy to drive awareness and assist interested learners in the technical fields, through learnerships and internships, to address this challenge.
Honourable Speaker,
For the past three years, all efforts have been geared towards creating an organisation that is capacitated to play an anchor role in the Gauteng Economic Growth and Development Strategy through the development and implementation of the Strategic Infrastructure Master Plan.
Since the re-alignment exercise of 2009, which led to the creation of this department, we have been hard at work in positioning the Department of Infrastructure Development (DID) to be a leading infrastructure provider and facilitator of a sustainable and growing economy.
This positioning is informed by our over-arching mandate, which is to implement all the Capex budget allocation and other small, medium and large scale infrastructure projects on behalf of the Gauteng Provincial Government (GPG).
The effective execution of our mandate, that is, expanding and maintaining public infrastructure, managing the provincial property portfolio as well as coordinating and implementing the provincial Expanded Public Works Programme, are all rested on the ongoing quest to improve the technical and administrative capacity of DID.
We began to turn the tide during the 2010/11 when new measures were introduced to improve on the outlined challenges. We introduced new ways to tighten operations within our Supply Chain Management (SCM) processes and financial management systems. We also revised, with a view to tightening, the contract management process flow in the department.
As a result of the findings of the Auditor-General in the last two financial years, the department had to drastically improve its financial management practices, procurement processes and general administration.
Our efforts paid dividends when one of our major focus areas, which of reducing accruals to acceptable norms was realised. In 2010/11, our accruals were at R162m compared to R762m in 2009/10.
The department has witnessed various improvements through a process of reengineering its supply chain management processes. This has resulted in a drastic reduction in irregular expenditure from over R500 million 2009/10 to R33 million 2010/11. This has also resulted in the unqualified audit opinion for the department in this previous financial year. We are still focused on obtaining an unqualified audit opinion in this financial year.
Madam Speaker,
During the State of the Nation as well as State of the Province address by both the President and the Premier respectively, the issue of massive investment in infrastructure has been pronounced as a cross-cutting focus area and strategic priority of government.
This close relationship between accelerating economic growth through the widening of economic development zones, and the drive to create an economic environment that is able to create jobs means that the provision and maintenance of our social infrastructure will be at the centre of government’s service delivery programme.
Government has identified education, health, jobs as key strategic focus areas. In this regard, the delivery of new provincial infrastructure to replace and augment the current one that is ageing, together with an effective programme to maintain public facilities, will continue to contribute towards addressing socio-economic infrastructure backlogs in our province.
Infrastructure development and maintenance is crucial to the task of bridging the gap between the first and second economy, creating jobs and reducing poverty. For this we have been allocated an appropriation of R57 million for construction and R296 million for maintenance.
The responsibility of minor maintenance has been transferred back to the department of Health with the database used by DID in this regard, and specification standards. The outcome of this initiative is still to be measured. It is the intention of DID to transfer staff that was responsible for minor maintenance to DID however, given the shortage of technical staff in this area may not be possible for now.
The Department has completed 56 education projects during the 2011/12 financial year, including six new schools. We have also successfully completed construction of 17 Grade R classrooms.
Eighteen (18) schools have been fenced with palisade fencing that will ensure that learners learn in a safe and secure environment. We have also conducted and completed twelve (12) restorative repairs.
Furthermore, to fast-track delivery of schools within the province, DID has partnered with the Independent Development Trust (IDT) to assist in the delivery of education construction projects, using alternative construction methods. The decision to allow the IDT to use these methodologies in the delivery of classrooms has resulted in us being able to deliver some of the school projects within six months instead of the current twenty-four months as minimum.
Our use of alternative methods does not signal an abandonment of building brick and mortar but is just an intervention that allows us to deliver sustainable infrastructure faster. We are still focused on delivering brick and mortar infrastructure.
Honourable Speaker,
We are positive that all our efforts around education related projects will go a long way in easing the pressure on overcrowded schools in the province, increasing access to early childhood development, thus contributing to an improved quality of programmes and provide a solid foundation for lifelong learning and development amongst Gauteng’s young minds.
Much more has been achieved through the implementation of various GDE projects including New Schools, Restorative and Repairs, Grade R facilities, Septic tanks and Additional toilets.The education projects provide increased security (fences) access to centres of learning (new schools), early childhood development (grade Rs) and habitable (OSH ACT compliant) learning environment.
Amongst these is Magaliesburg boarding facilities which is in the West Rand rural area. This project is a premier`s flagship and it is a first of its kind in the province. This R115 million project that will be completed by July 2013 continues to offer employment opportunities to our people within the surrounding communities. About 250 semi-permanent jobs have so far been created through the EPWP component of the project. On the job training and skills transfer are part of the employment programme.
The Bertha Gxowa Hospital was completed in the last financial year. The completion of this hospital led to an increase in healthcare facilities by providing a state of the art world class 300 bed hospital.
Other projects earmarked for completion this year are Zola [Jabulani] Hospital and Natalspruit Hospital. These two major hospitals will relieve pressure from smaller hospitals and clinics within Gauteng and increase accessibility to health care by providing total of 1060 beds. The completion of these major hospitals will place not only the province, but the country at large in line with the global mandate of the millennium development goals of halving poverty and infant mortality.
The department is also implementing various projects including renovations of TB Wards and Psychiatric Wards, construction of New clinics, Neo-Natal, Nurses and Doctor Quarters, upgrade of the Oncology unit upgrade at Steve Biko Academic Hospital.
Various interventions will find expressions in our programmes. The Department will massify the Expanded Public Works Programme (EPWP) programme balancing both the job creation imperatives in the short-to-medium term against its training imperatives. For this, R206 million has been allocated for this financial year.
Being the lead Department when it comes to government’s employment creation drive, we anticipate that 11532 job opportunities will be created through infrastructure projects and EPWP during the 2012/13 financial year. This responsibility is being accomplished through the continued implementation of the Expanded Public Works Programme projects in areas within the 20 Prioritised Townships Programme and the 50 poorest wards in Gauteng.
Small and emerging contractors are being empowered through the engagement of the Construction Industry Development Board (CIDB) to ensure increased participation of level 1 to 4 contractors in infrastructure projects as part of the contractor development programme.
In 2011/12, 10 496 employment opportunities were created, with 4530 being for women and 1976 being for youth. 5343 jobs will go to women whilst 4613 of these projected job opportunities will be for young people.
The National Youth Service (NYS) is a programme intended to expose young people to the workplace environment. The allocation of the NYS over the MTEF period increases from R222 million to R235 million in 2013/14 and R247 million in the 2014/15 financial year. An additional 2500 NYS learners will be absorbed by this programme taking the number to almost 5000. The department has learnt from the lessons of this programme in the past and makes an undertaking for vast improvement.
We will launch the Community Works Programme (CWP) on 22 June 2012 to extend the reach of this programme and mark its migration from DED to DID. The Sedibeng leg of the CWP will have three thousand participants before the end of this financial year running in the poorest wards in the three municipalities of Emfuleni, Lesedi and Midvaal.
Young people will also be empowered through appointment of youth-owned companies as service providers to the Department, as well as involving the youth cooperatives in our procurement processes. Women owned-enterprises are also benefitting from our procurement processes.
DID has allocated R42 million to its Accelerated Artisan Training Programme. To this effect, we have enrolled 500 young people into our (AATP) for this financial year.
Our recruitment methodology has ensured that all the 6 Gauteng municipal Regions are accommodated. The final allocations were such that 270 will go for metal trades, 150 for plumber designated trade, 40 for motor mechanics, 20 for building and civil construction, and 20 for carpentry.
The first group of 375 will begin with their programme at the end of June 2012, and the remaining 125 will begin the course in August to complete the set provincial target of 500.
The training intervention strategy for artisan training that is being going to be applied will be guided by the merSETA, Construction SETA and E-SETA sectors. This being the youth month, we are proud that our commitment to youth development and empowerment is being pursued, and realised, through strategic partnerships with private sector companies who have agreed to accommodate our Accelerated Artisan Training Programme (AATP) graduates. So far 21 companies have opened doors to give these trade learners workplace exposure for completed and current apprentices.
The 2010-11 AATP group had 248 apprentices recruited for the 18-month programme in the electrical, welding, fitting and turning as well as boiler-making. 214 of them have successfully achieved their 95% pass rate; and 31 plumber designated trades are currently placed with private companies and also within the department for workplace exposure.
Out of 171 apprentices who have successfully completed their trade tests, 60 have been placed for work opportunities and 139 are still to be placed for a permanent, contract-term and project-based employment. Four (4) of our youth artisan beneficiaries have managed to start their own businesses upon completion of the programme. Business Entities owned by cooperatives belonging to Military Veterans are also given an opportunity through the SCM processes of the Department. Some have already been appointed as service providers on some of the infrastructure projects we are currently implementing such as the Boipatong Memorial and Youth Centre. In an effort to enhance Gender, youth and disability mainstreaming, the
Department established Gender Disability (GeDi) and Youth Directorate, reporting directly to the office of the HOD. The Department has entered into a Memorandum of Understanding (MOU) with the Disabled People of South Africa (DPSA) and although the set targets have not been met, steady improvements have been made.
The department has also signed an MOU with the South African Women in Construction (SAWIC) to ensure the empowerment of women. The Department has commissioned a major rehabilitation project in the Department of Health which is related to replace major equipments such as boilers, lifts, laundries, chillers, autoclaves, electrical reticulation and change-over switches which have long exceeded their life span.
This project will come to finality in the first quarter 2013 whilst commitments were signed in 2011/12. Tenders were prepared, advertised and adjudicated over during the financial year 2011/2012, with most of the projects being awarded. The 2012/2013 financial year started with most projects being awarded and sites handed over. The year 2012 will see the implementation of most of the awarded project at various institutions.
Madam Speaker,
The Electro mechanical equipment is central to functionality of health facilities and creation of habitable healing environment. Gauteng has some of the oldest facilities in its portfolio that requires maximised attention, hence this multi-million rand investment by the Gauteng Provincial Government in the refurbishment and upgrading of facilities to extend the useful life of facilities and guarantees equipment uptime and access to health.
The implementation of these projects will result in the following benefits, amongst others, improved functioning of lifts in these institutions. It will also ensure that theatre equipments are sterilised and facilities are safe for the institutions to operate on their patients; ensure that linen and all other clothing are washed and ironed, functional and infection free and clean laundries.
The electrical reticulation will correct and ensure that the electrical networks and supply is adequate and meets the demand requirements. Our plan for the property management is focusing on stability, revenue generation and maximising on the property portfolio.
We had sought to stabilise the environment around which we operated in this portfolio. This involved knowing where these properties are located, verifying and classifying them in terms of commercial, strategic and residential; We have also been striving to bring on board more people to pay market related rentals for using state properties.
With the R641 million allocated for this financial year, our plan with regard to managing the property portfolio is in such a way that it brings value for money to the Gauteng Provincial Government.
The overall property management strategy has been developed. We are busy finalising an implementation of this strategy for presentation to EXCO inclusive of the operating model. As part of other immediate plans on the property portfolio, we have recommended 600 properties for vesting and will be updating 1200 properties on the GPG asset register during 2012.
DID working under the umbrella of the DED is poised to embark aggressively on energy saving and green technologies. Already in our work with IDT on the alternative construction methods of building schools and on the new boilers in our hospitals that use gas as opposed to coal signifies the beginning of the journey.
To share with you the findings of a report on energy efficiency conducted in the precinct building we found the following:
- Physical lighting, water heating, Heating-Ventilation-Air Conditioning audits have been conducted and completed.
- Measurement and verification of real power consumption is being concluded.
- It has been found that all light fittings (19 682) in all the 11 precinct buildings are inefficient and are to be retrofitted.
- Occupancy sensors are to be installed to aid savings. This means that no lights and air conditioning will be on in unoccupied offices.
- Current power usage is approximately 717,825 kW per month.
- Proposed power usage : 488, 121 kW per month.
- Possible saving : 229,704 kW per month and estimated 32% and over R1 279 652 million saving per month on lighting alone.
- The existing air conditioning systems comprise of chilled water system with cooling towers serving different and various floors.
- Some floors are conditioned by means of console units.
- The recommended retrofit option includes replacing the existing systems with new VRV systems.
- These measures will save money by saving energy and demand, also by saving on maintenance costs.
The uninterrupted supplies of gas to our new boilers in a cost-effective manner need to be secured. We have also resolved that all GPG departments will take responsibility for the compilation of their departmental User Asset Management Plans (UAMP’s). DID will provide support provide onsite support to all GPG departments in the development of their UAMPs.
We have been able to mitigate some of the key factors that made it difficult for us implement projects on time and within budget. To this effect, DID has reached an agreement with Client Departments that they will from now onwards, submit their infrastructure demand plans 12 months prior to the new financial year in order to improve delivery of infrastructure on time, within budget and of high quality.
We have also made efforts to eradicate unnecessary variation orders and extension of time on Capital Works projects. In this regard, the responsibility of each Department has been clarified.
In acknowledging that the capacity of DID inadequate for the infrastructure expansion that is envisaged for the medium-term and the maintenance of existing infrastructure, Treasury has allocated an additional R20 million in the 2012/13 financial year for DID to improve its technical capacity by sourcing engineering, quantity surveying, project management and other such skills. This will also ensure value for money in all the projects that DID will deliver.
These developments are in line with the commitment to create a professional public service and limit external dependence. The department further recognises that without adequate business processes above mentioned capacity deployment might not yield intended outcomes. To this end the department with the support of the deployed private sector professionals is reviewing and embarking on Business Process Improvements process towards efficiency.
There is heightened focus on outcomes based monitoring and evaluation. This ensures the efficiency of resources deployed and avoids the misalignment of resource deployment and strategic thrust. The Monitoring and Evaluation unit was established to specifically ensure implementation of the above.
This is a critical shift from symptoms based, to sustainable systematic route-cause based interventions meant to provide basis for continuous improvement. We are still working tirelessly to improve our procurement expenditure on entities owned by People with Disabilities. DID has yet to reach the 2% target on procurement spent on entities owned people with disabilities. This is mainly due to the fact that often there is slow response from entities owned by people living with disabilities for quotations and in the bid process.
In an effort to address the challenge, the Department has entered into the Memorandum of Understanding with the Disabled People of South Africa (DPSA) to increase the drive and access to information on companies and people living with disabilities to communicate and support access to the Department’s economic and employment opportunities.
We are still facing resistance to pay Market Related Rentals (MRR) by some tenants for various excuses such as unaffordability. The issue of illegal occupancy of some of our properties is another dimension to this challenge around state property.
The implementation of our Property Management Strategy which seeks to address such and all the other challenges, including the resistance to pay market-related rentals, dilapidated and abandoned properties and low revenue collections from rentals, will provide the appropriate intervention.
Madam Speaker,
The management system for infrastructure delivery in Gauteng has to change drastically if we are to cope with the ever-growing demand for infrastructure vis-àvis tight and prudent expenditure control and accountability. The over-arching mandate of this department as the central planning and coordinating department when it comes to socio-economic infrastructure provision in Gauteng has to be reinforced.
The leadership of the department, in consultation with the Premier and Executive Council, has moved with speed in pushing for the adoption of a Gauteng-oriented Infrastructure Delivery Management System (IDMS).
Once we receive the blessings of the Executive Council, we intend to embark on a vigorous engagement exercise, including the facilitation of consultative workshops amongst all infrastructure role-players within the GPG.
The IDMS will solidify an apex relationship between DID and the Gauteng Planning Commission (GPC) as the chief planner and provider of infrastructure. This is a system that will be able to consolidate the delivery and procurement management exercises, with core project delivery processes that will be adhered to by all roleplayers.
For 2013/14 projects must be confirmed on the 1st June 2012. With annual improvement plan, full roll-out and conformance with the Infrastructure Development Management System, the province will be on course towards sustainable development and integrated planning.
In all spheres of government, the mandate is clear. Resources have been, and continue to be galvanised to ensure accelerated delivery of infrastructure that is of good quality and condition. Strategic partnerships with the private sector are being pursuit to develop skills, create jobs and share expertise within a growing economy.
DID is ready, and we are calling upon the cooperation of all stakeholders to partner us in ensuring that we enable a smooth relay of public services to the people of Gauteng through infrastructure delivery.
In conclusion, I would like to wish our former Head of Department, Ms Maggie Modipa well in her new endeavors. Ms Modipa has left the department at the end of May. At the same time we take this opportunity to welcome our acting HOD, Mr Steward Lumka, who has been roped in to fill the void and steer the ship that is DID.
I thank you.
