Policy and Budget Speech by the MEC for Department of Public Works and Infrastructure 2023/24
Honourable Speaker and Deputy Speaker;
Honourable Premier and Members of the Executive Council;
Honourable Members of the Provincial Legislature and the Honourable Chairperson of the Portfolio Committee;
Members of the House of Traditional Leaders; Executive Mayors, Mayors and Councillors; Leadership of the Governing Party;
Liberation War veterans;
Leaders of the Opposition parties;
Director General of the Eastern Cape Province;
Head of the Department of Public Works and Infrastructure; Heads and Senior Management of various Departments; Our Social Partners and Stakeholders;
Members of the Media; Distinguished and Special Guests.
Molweni;
Dumelang;
Good Morning;
Goeie Dag.
Honourable Speaker
It is with great honour and privilege for me to stand before this August House today, to present the Policy and Budget Speech on behalf of the Eastern Cape Department of Public Works and Infrastructure. It gives me great joy and pride to stand on this podium to give an account to the people of the Eastern Cape, on the work done by our provincial government, DPWI in particular, to improve their lives during the 6th Administration Term and further make announcements about what we have in store for them in the next financial year.
Madam Speaker, just a week ago, we conjoined with multitudes of South Africans in the commemoration of the Human Rights Day. On 21st March 1960, a group of vibrant men and women in Sharpville took to the streets and confronted the vicious and brutal apartheid regime to protest against pass laws. The trigger happy and barbaric apartheid regime shot and killed scores of our people. It is against this background that our Democratic Government declared the 21st of March a Human Rights Day to commemorate the Sharpville massacre and honour those who sacrificed their lives in the struggle for the attainment of democracy in our country.
It is in the memory of those who sacrificed their lives and laid a solid foundation for democratic dispensation that we remain committed and dedicated in the execution of our mandate as the Department of Public Works and Infrastructure.
During this month, we joined many countries around the world in celebrating International Women’s Day. On this day, women across the world are recognised for their achievements without regard to divisions, whether national, ethnic, linguistic, cultural, economic or political. We salute Mama Charlotte Maxeke, Mama Winnie Madikizela- Mandela, Mama Lilian Diedricks, Mama Florence Matomela, Mme Maggie Tsiu-Resha, Mama Lillian Ngoyi and many of our sheroines who contributed to the struggle for the attainment of our democracy.
Honourable Speaker, we deliver this Policy and Budget Speech mindful of the prevailing global and domestic socio-economic conditions. It is an era of immense challenges; the impacts of COVID-19 pandemic are still haunting us to-date, the Russia-Ukraine conflict which has exacerbated the Global Financial crisis, Energy crisis, Gender-Based Violence and femicide, Climate Change which have devastating effects not only to our infrastructure but also on the general livelihoods of our people. These are amongst the challenges that the 6th Administration has been faced with, but we remain positive about the reconstruction and recovery measures our government has put in place.
In his State of the Nation Address, His excellency President Cyril Ramaphosa has reassured us that “We are, at our most essential, a nation defined by hope and resilience. It was hope that sustained our struggle for freedom, and it is hope that swells our sails as we steer our country out of turbulent waters to calmer seas. Even in these trying times, it is hope that sustains us and fuels our determination to overcome even the greatest of difficulties.”
Honourable Members, in the 2023/24 Financial Year, the Department has been allocated R2.5 billion to implement its mandate in line with the Programme structure.
We acknowledge the fact that due to strained fiscal capacity, the Department did not receive an incremental budget. However, the department will continue to utilise the allocated resources in an effective, efficient and economical manner to deliver on its core mandate.
However, Madam Speaker, it is important that I first allude to the budget that has been allocated to DPWI over the 5 year term. The allocation of R12 billion is broken down as follows:
- 2019/20 R 2.5 billion
- 2020/21 R 2.4 billion
- 2021/22 R 2.5 billion
- 2022/23 R 2.6 billion
- 2023/24 R 2.5 billion
Honourable Members, the budget indicated at the start of the 6th Administration was intended to support our ambitious Transformation Agenda, that sought to re-position the Department as a ‘nerve centre’ for infrastructure development, delivery, coordination and investment’.
Madam Speaker, this implies that the Department’s strategic thrust is anchored on three pillars: which are (i) Developing a Capable Institution, (ii) Core infrastructure delivery and (iii) Investment for Economic Growth.
This Transformation Agenda, started at the beginning of the strategic cycle in 2020/21, and was conceptualised to be implemented in a phased-approach over a period of 5 years. Phase1, which is the Improvement phase, focused on building institutional capacity to deliver and coordinate social infrastructure for Client Departments. The next phase, which is the Stabilising phase, in 2022/23, focuses on executing the Department’s mandate as a primary implementing agent for ALL public infrastructure as well as strengthening Provincial infrastructure governance structures. Lastly, Honourable members, in the final two years of this term, DPWI strives to be at a Maturity phase, which entails deepening our capabilities to implement infrastructure delivery, coordination and investment Province-wide.
Madam Speaker, I am happy to assert that Public Works and Infrastructure is poised to mature to be that Nerve Centre it aspires to be, which will enable infrastructure to be a lever for economic development, growth and prosperity in our Province.
Sebui se hlomphehileng, the Department has successfully implemented the newly revised organizational structure which saw the Public Infrastructure Program being elevated and split into four distinct functions, namely, the Department of Education Portfolio, Department of Health Portfolio, Other Client Departments Portfolio and
Facilities & Security Management all headed by Chief Directors. This will enable the
Department to effectively and efficiently play the agency role in implementing infrastructure projects on behalf of client departments.
The organisational structure has also ensured the reconfiguration of the districts to ensure alignment with the current demarcation. This will enhance the Departments capability to implement projects timely, efficiently and within budget.
We reaffirm the Honorouble Premier’s assertion that OTP, DPWI and PT must work together to resolve poor capital grant expenditure and ensure that no monies are returned to the national fiscus. To this Hon. Premier, the Department has established the Transversal Infrastructure Coordination (TIC) Chief Directorate, that will help ensure the implementation of a Sustainable Infrastructure Development System (SIDS), a single point of entry for all public infrastructure projects, and Single Skills pipeline for all public infrastructure.
Honourable Speaker, I am pleased to announce that 56% of Senior Management Staff at the Eastern Cape Department of Public Works and Infrastructure are women. It must be noted that this is a vast improvement compared to the 38% in 2019/20, 39% in 2020/21 and 46% in 2021/22. This is a historical milestone for the department and an achievement that ought to be celebrated by us all. Malibongwe!!!!
Madam Speaker, The Republic of South Africa is faced with a major problem of unemployment with 34.5% of young people who are Not in Employment, Education and Training (NEETs) especially among women and youth living in rural provinces such as the Eastern Cape. While jobs are not being created as quickly as desired, the problem of unemployment is exacerbated by lack of skills and formal work experience.
To respond to this challenge, through the Professional Skills Development Programme in 2022/23 the 85 candidates were placed of which 27 were registered as professionals. Furthermore, 231 youth were placed in the developmental programmes (graduate
technical interns, graduate programme interns and work integrated learning).
In the coming year the Department will continue with the youth developmental programmes, as a result 288 posts have been advertised as follows: 90 graduate interns, 28 postgraduate technical interns, 100 work integrated learning, 40 candidates to be placed and 30 in the structured youth development programme. The closing date for applications is 03/04/2023.
Madam Speaker, The Department has trained 1 250 learner artisans of which 702 are women during this financial year ensuring that they pass the trade test at the end of their contracts to be fully fledged artisans. The department will continue to support developmental programmes including the National Youth Service (NYS) and Artisan Programme/ Accelerated Professional and Trade Competency Development Programme (APTCoD) at a value of R47 million. Again this is a story of good progress.
Madam Speaker, it is fundamental to note that the DPWI’s Dr Mxolisi Majombozi Bursary Fund provides financial assistance in the form of Registration, Tuition Fees, Meals, Study Material, Accommodation and Laptops. The Department will award 40 bursaries in 2023/24 financial year. Once these bursary holders attain their qualifications, as part of their contractual obligation, they are placed in the Departmental Professional Development Programme as technical interns for a period of 24 months to serve their bursary obligations.
The Honourable Premier of our Province alluded to the fact that Infrastructure is the backbone for economic growth and job creation. In order to attract investors to our Eastern Cape shores, there is a need to redouble our efforts and invest in Infrastructure development.
Honourable Speaker, the current state of the Provincial Infrastructure is worrisome, in certain areas criminals have taken over our properties, the lumpen proletariat (Amaphara) are vandalising our Infrastructure. As part of my first 100 days’ program, the
following Campaigns have been revitalised:
(a). Operation Bring Back: We have appointed town planners to conduct land audits across the province with the aim to confirm tenure on the subject properties. So far, 332 illegally occupied properties across the Province were identified and handed over for legal investigation and possible eviction. The court has ruled in favour of the Department. In Mthatha alone, we have 57 eviction orders granted by the court and are being processed to get the illegal occupants out of the properties; and
(b). Operation Khusela (Protect our Infrastructure): Works with communities and law enforcement agencies to fight against the scourge of vandalising government properties has escalated, burglary and theft is a serious cause for concern. Government is doing all that it takes to confront these criminals and protect government properties. Currently the Department is securing 161 facilities across the province.
Madam Speaker, in the period under review, we committed to change the property ownership patterns in line with our transformative agenda. In this regard, we had set a target of 60% black ownership in our lease portfolio, however here today we can confidently report that 72% of the leases have been concluded with black landlords. This is a story of good progress.
In 2023/24 our focus now moves from landlords to property developers for the purposes of revenue generation and socio-economic transformation. Our target for 2023/24 is 65% of black property developers.
Honourable Speaker, The Department of Public Works and Infrastructure is the custodian of the provincial government’s immovable assets. Our immediate task as custodians is to respond to the call by Provincial Treasury to use the property portfolio as a lever for revenue generation. Even though we will not meet the set target in 2022/23 financial year we are showing that the maturity phase must propel us to perform better in the space.
In 2023/24, the Department will fast track the implementation of its Enhanced Revenue Generation Strategy in order to improve on the collection of revenue through the three revenue streams model: Short-term, Long-term, and Residential leases.
Somlomo, Sizimisele ukutshintsha impilo zabantu beliphondo, sibeke Ikamva labantwana bethu endaweni engcono. Student accommodation remains a crisis in our country and our province in particular, young women bear the brunt of this crisis as they become victims of rape and GBV. In the next financial year, we will closely work with Department of Higher Education, NSFAS and Property developers to avail strategic properties to address student accommodation backlogs while raising the needed revenue. To this end the department has awarded 08 properties to developers intending to construct and operate student accommodation.
As a result of the Property Conference held in March 2022, 19 properties under R50 million have been awarded to Black Developers with an anticipated rental of R254 million over the rental period of 30 years. In the 2023/24 Financial Year, the Department will rollout properties included in the Bid Book. The department has increased its capacity to manage the investment portfolio including establishing a directorate to focus in Property Investment.
Honourable Speaker, through the Expanded Public Works Program, my Department is responsible for contractor development and provision of support to SMMEs.
To this end, the department has developed a Provincial Infrastructure SMME Development Strategy and it is at the final stages of approval. In the coming financial year, the Department will start the rollout of the approved strategy across the province and encourage critical stakeholders to develop their own policies in line with the strategy.
Somlomo obekekileyo, as the coordinator of EPWP in the province I am pleased to
report that as at the end of Quarter 3, the Province created 97 629 work opportunities thus positioning the Eastern Cape Province at an achievement of 99.8 % against its target
of 97 764. The province has a target of 100 041 (Hundred thousand and forty-one) for the 2023/24 financial year. This is a story of good progress.
As part of the Provincial target, the Department had a target of 4 000 work opportunities and 3 507 work opportunities were created by end of Quarter 3. In 2023/24 the Department has set a target of 5 000 work opportunities to be created through the EPWP Incentive Grant of R10.4 million.
Madam Speaker, the Department has through the Integrated Contractor Development Programme (ICDP) awarded 68 contractors at a value of R380 million, 17 are women at R35 million and 47 are young people at a value of R239 million. 42 Contractors were upgraded to the next CIDB levels. The Department will continue to support the 160 (20 per district municipality) ICDP contractors on the database in the form of awarding projects and training on identified gaps in the coming Financial Year.
Honourable Members, The Department of Public Works and Infrastructure is ready to take a lead in the reconstruction of socio-economic infrastructure needed by the people of this province through massive rollout of infrastructure projects to unlock investment opportunities and create sustainable jobs.
Madam Speaker, in line with our commitment to provide conducive office accommodation, we are pleased report on the progress made on the following office precinct commitments:
- EmaXesibeni Office Precinct in Alfred Nzo District – A four-year construction project, valued at R450 million to accommodate 10 provincial departments. The project is divided into 2 Phases:
- Phase 1 - R48 million (civil works) started in March 2022. The project had experienced delays which have now been resolved and work is progressing on site. Phase 2 – Construction of 5 office blocks (Block A procurement concluded, Block B-E in the design development stage). In 2023/24 Block A will be under construction and Block B-E designs will be finalised.
- Mqanduli Offices: Involves the construction of a 24 months’ project, valued at R160 million to accommodate. The project start date was the 15th of August 2022 and work is progressing well on site.
- Makhanda Training Centre: Valued at R51 million, the Makhanda Training Centre has 3 phases.
- Phase 1 – completed in 2022. Phase 2 currently at 60% and progressing well. Phase 3 started on the 28th Feb 2023.
- Mt Fletcher Office Precinct: In the 2023/24 Financial Year, the project will be in the planning phase.
We reaffirm the Hon Premier’s commitment to ensure that the Bhisho Precinct commences construction, to this end we confirm that the project is in its final stage of procurement in the Interim Bid Adjudication Committee.
Honourable Members, it is worth mentioning that our relationship with Client Departments continues to improve, as we provide specialised professional and technical services in the implementation of projects. In the 2023/24 Financial Year, the Department will be implementing infrastructure projects as per the client departments’ priorities.
Somlomo Obekekileyo, we have experienced the dire effects of load-shedding on the operations of government, the economy and the general livelihoods of our people. The Department of Public Works and Infrastructure currently operates 55 generators provincially. Before the worsening of load-shedding, the Department would spend R500 000,00 (Five Hundred Thousand) on diesel in a given Financial Year. However, with deteriorating energy supply, as at end March 2023, the Department spent R4 768 000,00 (Four million Seven Hundred and Sixty Eight) on diesel.
In order to mitigate this energy crisis, the Department will ensure that all new capital projects include alternative energy solutions as a way to attenuate the impact of load- shedding, thus restoring energy security.
Mindful of this challenge, the Department is planning to pilot alternative energy and water conservation initiatives at the Legislature Precinct and in our own Head Office in Bhisho. This is still at a planning and design stage, and with the availability of funding, this intervention will see the Legislature and DPWI Head Office going off grid.
Agbare Voorsitter, on our existing facilities, the Department has embarked upon retrofitting lighting and water saving solutions in our buildings since the 2020/21 Financial Year. Furthermore, the Department will monitor energy and water consumption and submit Energy Performance Certificates (EPCs) for its facilities as guided by the National Energy Act of 2022. This involves the mandatory display of energy performance certificates in our buildings. It is also worth mentioning that the Department of Health has commissioned our Department to explore alternative energy solutions in health facilities. This exercise will start with Bhisho Hospital and later rolled-out throughout the Province.
Honourable Members, we are also mindful of the need to conserve our precious water resource, and to this end, the Department will explore ways of recycling grey water as a measure to reduce water usage. In this regard, we have had one inspiring example in our Department where one of our artisan graduates in Chris Hani pioneered the drilling of a borehole for our District Office!
Madam Speaker, the Department is further charged with a responsibility to manage the Prestige Portfolio. In the 2022/23 Financial Year budget allocation for Prestige Portfolio, the following projects were completed: Renovations of eight (8) Members’ houses, Eastern Cape Provincial Legislature (ECPL) Refurbishment and Security Upgrade at Ministerial Complex, Lillian Diedericks House (State House) and ECPL.
The following projects are still under construction: Construction of New change-rooms at Ministerial Complex for the in-house teams and the Fencing to Prestige Portfolio.
The designs for the Two (2) Bedroom houses, as a pilot project, in the Ministerial Complex have been prepared and presented to the Internal Arrangements Committee (IAC) for comments and endorsement. The department has committed to build two of these Two- Bedroom Houses for members during the 2023/24 Financial Year.
Conclusion
Sebui se hlomphehileng, the governing party (our ANC) has declared 2023 “The year of Decisive Action to Advance people’s Interests”, despite the challenges encountered by our government in the intervening period, our people need solutions and they need them NOW!!
We must ensure this year becomes the year in which we rise above all odds and try to meet expectations of the electorate.
As we do so; we commit ourselves to conduct our business ethically, diligently and observe the principles of good governance and the law. We will join hands with stakeholders and strengthen government efforts to build the Eastern Cape we want.
We will work with all stakeholders to ensure that together we contribute to the development of the Province and take our work to greater heights.
Honourable Members, let me express my appreciation for the leadership and guidance provided by the Honourable Premier Oscar Lubabalo Mabuyane.
Words of gratitude to the Portfolio Committee Chaired by Hon Thabo Matiwane for the oversight role that seeks to make the department a productive organ.
The collective work done by the officials of the department is much appreciated. I would like to thank my family and my children for their unwavering support.
Sebui se hlomphehileng, mosebetsi ha o so fele, hona e sale qalo. Re betseditswe ho tla sebetsa ka boitelo mme re amohela maikarabelo ana ka boikekokobetso bohle mmoho le ka potlako hobane nako e bohlokwa.
(Hon. Speaker, the work is not over but just the beginning, we are called upon to serve and we accept the responsibility with humility and a sense of urgency because time is of essence.)
One African revolutionary scholar, Amilcar Cabral once said:
“Always bear in mind that the people are not fighting for ideas, for the things in anyone's head. They are fighting to win material benefits, to live better and in peace, to see their lives go forward, to guarantee the future of their children. . .”
Together Let us build the Eastern Cape We Want!!!!
I THANK YOU.
Kea Leboha
