Martin, Eastern Cape MEC for Public Works, Provincial Legislature
15 March 2007
Honourable Madam Speaker
Honourable Premier
Colleagues in the Executive Council
Honourable members of the House
Distinguished guests
Ladies and gentlemen
Fellow South Africans
Introduction
It gives me great pleasure to present the House with our policy speech for
the financial year 2007/08. The African National Council (ANC) led government
identified the goal of halving poverty in South Africa by 2014 as envisaged in
the Accelerated and Shared Growth Initiative for South Africa (AsgiSA). The
year 2007 will provide us with windows of opportunity to advance towards the
said goal.
The lead has been taken from President Thabo Mbeki when he enlisted the
government in a renewed pledge to foster partnership in the fight against
poverty and Premier Nosimo Balindlela's statement that we will not abandon the
poor. The realisation of this goal lies within the mandate of government after
it has been given the task by the electorate to mobilise the resources at hand
to accelerate economic growth and development to give practical meaning to the
clause in the Freedom Charter, which states "there shall be work and
security".
The Eastern Cape is the leaders in long-term job creation in the country. We
have recently seen an Expanded Public Works Programme (EPWP) supervisor, Mr
Duraan Martin, from the Eastern Cape winning the national EPWP Best Supervisor
Award. The province is the in-house unit champion and has successfully trained
200 artisans the past financial year.
Review of achievements
Madam Speaker, allow me to draw your attention to highlights the Department
had the past financial year:
* The Department has successfully implemented the Infrastructure Delivery
Improvement Programme (IDIP). Service delivery agreements are in the process of
being concluded with client departments. Infrastructure plans of client
departments are in the process of being reviewed and finalised for the Medium
Term Expenditure Framework (MTEF) period in line with National Treasury
directive. IDIP has added into the contextualisation of infrastructure as a
crucial component of the client department's service delivery mandate. This
process further assists with the appropriated multi year budget preparation for
client departments. Systems and processes were developed in order to reduce the
payment cycle of service providers. We have successfully reviewed and
streamlined the procurement and payment system.
* The Department has assisted the client departments with infrastructure
expenditure and the spent is reflected as following: Department of Health
(84%), Department of Education (84%) and Department of Social Development
(81%). Infrastructure delivery within the province is still affected by the
skills shortage of technical professionals as well as the low number of
contractors in grade 5 and higher Construction Industry Development Board
(CIDB) grading.
* Major achievements and goals have been realised through the targeted
procurement processes and policies of the Department. We have awarded tenders
to the value of R767 million at the end of the third quarter. A total of 61%
were allocated to Black Economic Empowerment (BEE) owned companies. It amounts
to R471 million. An amount of R86 million was awarded to women owned companies
it represents 11% of the total budget. These figures represent a clear
indication of our commitment to advance the course of women in construction.
The Department has further utilised the legal framework of CIDB to assist
potential emerging contractors in the grading system to apply for higher
tenders than what was determined by their grading status. Tender adverts are
now placed in order for a lower grade contractor with a potential emerging (PE)
status to apply for one grade higher according to CIDB grading.
* In response to the skills shortages within the sector, the Department has
formed strategic collaborations with Further Education Training (FET) colleges,
universities and parastatals like the Coega Development Corporation. The
bilateral agreements with our strategic partners will provide within a
shortened time period with those experienced trained skill personnel to fulfil
the departmental and the broader provincial government's mandate of service
delivery. We have also awarded several bursaries as part of our ongoing skills
development programme
* The Department developed a unique skills development vehicle Accelerated
Professional and Trade Competency Development Programme (APTCoD), by utilising
its building maintenance unit's personnel to construct building projects within
the province. Partnerships have been created with the Umsobomvu Youth Fund
(UYF) as part of the skills programme focussing on young people. The programme
has successfully constructed 10 projects in the OR Tambo region as well as the
community library as depicted on Zola 7.
* The district development programme is on course and office for the client
departments are being constructed currently in Mount Frere, Grahamstown
Multi-Purpose Centre and Humansdorp Multi-Purpose Centre. An office complex is
planned for the Mount Ayliff region and this will impact on the town's
development.
* The Department held a successful contractors conference in Amatole region
where 300 contractors attended. Resolutions taken at the conference are in
implementation phase.
* The Department has further utilised its procurement muscle to enhance
skills development. An agreement has been reached that with every R5 million
contract awarded for infrastructure investment, successful tenderers must
employ four trainee technicians and five trainee artisans in order to be
gainfully employed within the Department after completion of the period, and
every R10 million contract to outsource 30% of the work to lower grade
contractors.
* The Department has also launched its Fraud Prevention Programme at a
provincial level and it has been rolled out at regional level. The programme is
to heighten levels of awareness and strengthening of good governance within the
Department.
* We have focused much attention on staff recruitment and have reduced our
funded vacancy rate from 37% to 13%. We have implemented the Balasela Project
in order to achieve excellence within our Department.
* The Contractor Industry Development Programme (CIDP) creates a unique
opportunity for skills development, advancing emerging contractors to a higher
grading and facilitation of developing and supporting material suppliers within
the province. The Department is targeting in the 2007/08 financial year to
train 200 artisans through our different infrastructure projects completing
their full trade test, develop 20 specialist contractors within the different
fields in the built environment and in addition to the current material
supplier facilitate the establishment of one black owned material supplier
within the province.
Budget allocation
Madam Speaker, this Department has been allocated a total overall budget of
R618 million for the financial year 2007/08. Our budget for the financial year
2006/07 was R514 272 million. This represents an increase of R103,7 million or
20,2% in our current budget.
* Administration: R156 154 million
* Public Works: R443 224 million
* The Community Based Public Works Programme: R18 595 million
The way forward
* The Department has committed R48 million through its Building Maintenance
Programme for the National Youth Service (NYS) programme which was announced in
the State of the Nation Address (SONA). It will target 500 young people
throughout the province that will receive short-term job opportunities and
training with in the built environment. The NYS programme forms part of a
national strategy targeting young people for development.
* An amount of R10 million will be utilised to refurbish the provincial
legislature for the 2007/08 financial year.
* In interpreting the White Paper on Public Works and the National Treasury
devolving of rates and taxes function to the province, the Department will
verify the properties listed in the national department's database and
facilitate allocation to the affected client departments.
* A total of 58 bursars are currently at various tertiary institutions in
South Africa. The emphasis of the study fields are in architecture, quantity
surveying and engineering. An amount of R1,8 million has been allocated for the
2007/08 financial year.
* The provincial target for job creation through EPWP for 2007/08 is 40 000
as a contribution towards the national target of one million jobs.
* The long term space planning for Bhisho has been completed and 36 000
square metres has been identified. Cabinet approved a Public Private
Partnership (PPP) and has been registered with Treasury. The appointment of a
transactional advisor will follow. A similar project has been identified for
the Mount Ayliff region.
* District development
* IDIP
* The contract for the construction for the House of Traditional Leaders has
been awarded to the value of R54 million. A total of 60 learners are currently
undergoing technical skills training at the Border Training Centre.
* The Department in association with CIDB will open a contact centre at head
office to assist contractors with registration and other relating matters. This
is an outflow of contractors' conference resolutions.
Conclusion
Madame Speaker, members of the House, I want to extend a sincere heartfelt
word of appreciation to the management and staff of the Department of Public
Works. Thanks to the Premier, my colleagues in the Executive Council and the
Portfolio Committee on Public Works for their support. The Department of Public
Works is on course and opening the doors of opportunity for all our people in
the Eastern Cape.
I thank you!
Issued by: Department of Public Works, Eastern Cape Provincial
Government
15 March 2007
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za/)
