Good morning colleagues and members of the media. It has been exactly two months since my deployment to the Infrastructure Development portfolio. A two month whirlwind of intensive engagement with a variety of infrastructure stakeholders including the three spheres of government, Council for Scientific and Industrial Research (CSIR), Eskom, Transnet, Human Sciences Research Council (HSRC), contractors, and the private sector in order to ensure that we are able to deliver on the mandate of "massive infrastructure development drive for 2012 and beyond".
The Department of Infrastructure Development (DID) has in the past performed less than optimally; we have struggled with the delivery of quality infrastructure, on time and within budget. It is against this backdrop that the first action I undertook since my deployment was to commission an independent comprehensive environmental scan of the department taking into account all relevant stakeholders. The recommendations of this process are the rolling out of a turnaround strategy concurrently with a change management process both of which are currently underway.
One of the key challenges identified through the environmental scan hindering the Department from effectively delivering on our mandate is due to the disproportionate ratio of 80% of DID employees being administrative and 20% being technical. Since my deployment, we have worked resolutely to change this ratio to an 80/20 split in favour of technical expertise. During August, a process to recruit technical professionals into the department was instituted.
Posts were advertised in various media; and thus far we have received 988 Applications; of which 242 candidates have been recommended for appointment. These include a variety of specialist engineering disciplines, quantity surveyors and architects. Selection is in progress for the appointment of further 329 artisans 45 of whom were recommended for appointment this past week.
With additional capacity, we will have the capacity to perform in-house project scoping and ensure that each site has the dedicated project personnel to include a project manager. I have met with departmental service providers and contractors and my message has been consistent and firm, the days of construction overruns will be a legacy of the past, we will hold all contractors accountable to delivery of infrastructure that is on time, within budget and of superior quality.
DID contract management has in the past been characterised by agreements which are grossly in favour of the service provider we have strengthened our capacity with the necessary specialist skills in order to ensure that the risk is evenly spread across the board, and that all relevant parties are held accountable.
Moreover, I do not want my colleagues in the executive of our client departments to be burdened with malfunctioning equipment or failing infrastructure; DID will demonstrate its capacity to fully deliver on its mandate.
Henceforth, all new construction will be built on the principles of renewable energy and environmental sustainability. We have initiated energy audits on all GPG buildings, following which retrofitting will be undertaken. Indicative potential energy savings thus far, average 40%. We are also in the process of consolidating our Green Energy Initiative. In the next financial year, we will prioritise the implementation of 2,500 simple retrofit projects jointly with Eskom, Industrial Development Corporation (IDC) and ESCOs.
In November, we will host a conference which will bring together multidisciplinary stakeholders and international bodies to engage on the Gauteng Infrastructure Master-plan in line with Vision 2055.
We are resolute about achieving localisation targets. Since my deployment to the department, we have awarded 21 tenders with a total value of R95 528 920, the total HDI value awarded was 71%, with black females garnering 52%.
We will continue to do business unusual as we gain momentum in our quest for service delivery excellence. We are confident that with these interventions, the technical capacity of DID to deliver on our mandate will be greatly enhanced. We are moving swiftly towards positioning the Department as the "Premier construction entity of the Gauteng Provincial Government".
In terms of progress in relation to key projects, it is important to outline the following aspects:
Health Projects
In total DID is implementing 48 projects on behalf of the Department of Health. These projects include the construction of new hospitals, clinics and Community Health Centers, the refurbishment of TB Wards at 7 hospitals, refurbishment of psychiatric wards at 6 hospitals and the construction and upgrading of 5 nurses' residences.
Additionally, we are installing oxygen and vacuum points in neo-natal units at 11 hospitals, delivering electro-mechanical projects at Weskoppies and Pretoria West, as well as the construction of Daveyton Mortuary. The total budget for all the projects in the current fiscal year is approximately R332million.
Notably, two hospitals are very close to completion. These are the 300 Bed Jabulani Hospital and the 760 Bed Natalspruit Hospital which are scheduled for completion in October and November 2012 respectively.
Education Projects
There are nine schools presently in the final planning stages, to be implemented through a Turn Key solution. We anticipate that all contractors will be on site by mid-October, and the programme will be completed in March 2013.
The Department has pioneered the use of Alternative Construction Method (ACM) in four primary schools; these are Olievenhoutbosch, Lotus Gardens, Soshanguve and Phomolong, three of which will be completed by November, and the 4th early in 2013.
148 restorative and repairs projects are underway. The restorative repairs programme is intended to address the historical maintenance backlog and create a more conducive learning environment. Twenty-eight of these schools are at tender and contracting stage; while 34 are at the design stage. Of the 86 projects that were awarded to contractors, 39 have been completed.
One special needs school, Nokhuthula LSEN School is currently in the planning cycle, and construction is planned to commence during the next financial year.
Repairs and Maintenance Projects
Colleagues and the media, it is important to note that due to minimal maintenance over the years, our infrastructure has deteriorated quite significantly, and therefore, it will take a concerted effort from the department, client departments, and communities to protect the efforts we are making in this regard. Theft and deliberate vandalism will not be entertained.
The Department has proactively initiated Project 274 as a response to the poor state of electro-mechanical plant and equipment within the Gauteng Health institutions. A decision was made to replace some of these plant and equipment so as to get them to levels where only regular scheduled maintenance work will be adequate to run the institutions, as opposed to current state where emergency repairs are the order of the day.
The installation of 21 boilers at various health institutions is in progress. Tenders for 111 lifts were advertised and contracts were subsequently awarded. 14 new lifts will be delivered to Chris Hani Baragwanath for installation by end of September 2012. Charlotte Maxeke Academic Hospital and Carletonville Hospital will install 14 and 4 new lifts respectively.
Also in progress, are the Masakhane and Dunswart Laundries with a combined value of R60 million worth of maintenance work. We anticipate these two projects to be completed by 31 March 2013. The Johannesburg laundry has been completed. Of the 28 generators that needed to be replaced, 24 are currently being installed, and four tenders are in process of being cancelled as the contractors were unable to furnish the 5% performance guarantees.
To date there are five new standby generators installed and commissioned at Zola Hospital, 1 at Chiawelo CHC, and 3 generators at Chris Hani Baragwanath Academic Hospital. It is with great regret, that we note that 3 of these new generators installed at Bara malfunctioned recently causing a threat to the wellbeing of patients. The service provider concerned has been called upon to account for this, and disciplinary measures will be meted accordingly.
Gauteng Provincial Government (GPG) Property Portfolio
Of significant interest in the media recently have been the GPG Central Business District (CBD) properties. The Gauteng Provincial Government owns 20 properties including vacant land in the Johannesburg CBD. Five of these properties are either under construction or undergoing renovations; and therefore cannot accommodate client Departments. We have also encountered some emergencies as a result of structural and safety related concerns in some buildings leased from private landlords, for instance the Glerncairn Building which our client department had to immediately vacate.
It is due to this that the Gauteng Department of Infrastructure Development recently issued a RFP calling for bids for three sets of office space to rent in the Johannesburg CBD. Some of the construction and/renovations to the five vacant properties have been delayed due to budget cuts and the Provincial reprioritisation processes which necessitated a slowdown in implementation. The Gauteng Provincial Government is currently reprioritising outstanding Precinct related construction with a view to finalise the project and ensure maximal utilisation of our own buildings.
Asset Register
DID is reviewing its Property Strategy in response to a variety of challenges including abandoned, unaccounted for and hijacked properties, as well as resistance by tenants to pay Market Related Rentals resulting in low revenue collection. We have embarked on an exercise to verify properties, and to sanitise and consolidate existing data.
Leasing and Revenue Generation
We will in collaboration with Municipalities and the private sector address the following:
- Inner City Regeneration
- Asset Register development and maintenance
- Maximising revenue generation from our existing properties
- Redetermining the use of unutilised and/or vandalised buildings and vacant land
- Integrated approach on the State owned land for development;
- Streamlining processes for Payment of Rates an Taxes
- Municipal assistance in the provision of alternative accommodation for tenants earmarked for eviction
- Implementation of the Property Charter in line with the Department of Public Works Property Strategy with a view to address the skewed property ownership abnormalities and to afford the previously marginalised, opportunities to meaningfully participate within the property industry thereby advancing BBBEE, job creation and poverty alleviation.
I have a warning for all those who illegally occupy and vandalise state property, we will pursue you with the full might of the law to ensure that the people of Gauteng enjoy the full usage of property meant to be in service of them. To all those government employees who refuse to pay market related rentals, we will ensure full compliance.
Expanded Public Works Programme (EPWP)
DID, as the lead coordinating department of the Expanded Public Works Programme within GPG, has stepped up efforts to massify the creation of work opportunities in order to alleviate poverty. In the previous financial year, the Department through the Expanded Public Works Programme (EPWP) created work opportunities for 5,685 youths, 2,845 women and at least seven people with disabilities. Overall, the DID coordinated 170,904 work opportunities in the Province. It is important to state, that the ideal of ensuring satisfactory levels of employment for communities continues to be a challenge.
The current target for EPWP in the Province is to create 90,097 work opportunities. The Department is also implementing the National Youth Service (NYS) and Artisan Development Programmes. It is with pride that we note that GPG has garnered 5 awards at the Annual National EPWP Kamoso Awards, COJ won 4 awards and the Department of Health won the Best Projects Award category.
Conclusion
Undoubtedly the Department of Infrastructure Development has experienced several challenges. However, we are gearing up to ensure service delivery excellence. We are committed to eliminating wasteful expenditure in infrastructure spending which generally emanates from cost escalations, project scope creep, lack of effective planning and poor project management. This is a period of reinvention and repositioning for the Department of Infrastructure Develop from which we shall emerge as the preferred public sector infrastructure service provider.
To this end, the Department of Infrastructure Development (DID) is currently working towards reorienting its service culture. This reorientation should be read as a paradigm shift, marking a significant shift towards proper and excellent infrastructure development in the province. It should be emphasised however, that this shift is consistent with the set priorities of the Gauteng Provincial Government.
Our reorientation is underpinned by the quest to ensure that existing and endemic inequalities coupled with perceived service delivery failures are fully addressed. In our endeavour to address these persistent socio-economic problems we are now firmly set on ensuring that the value chain of infrastructure development is not compromised. In practice, this entails working with people who are prepared to make a difference and who would not even at the face of temptation; short change those who entrusted us with ensuring that Gauteng is effectively managed.
Unfortunately, for those who are wont on cutting corners, DID is not the environment that will tolerate mediocrity. Only those, those who have a pedigree of delivering excellent service, both within and outside the Department, will be afforded the opportunity to work with DID.
Our performance paradigm shift is not evolutionary but radical and will not entertain excuses and inefficiencies. Much as we are the public sector, we will be about the service delivery bottom line in other words social profitability which will be evident to all including Mme Mogale, Sipho and Lerato.
I thank you.
Enquiries:
Ramona Baijnath
Cell: 071 670 5863
E-mail: ramona.baijnath@gauteng.gov.za
