epwp progress report public works select committee 23 february 2005
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EPWP Progress Report
Public Works Select Committee23 February 2005
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Wide range of programmes established post-1994 (eg Zibambele, Zivuseni, W f W, Gundo Lashu)
Code of Good Practice for Special PWPs gazetted in 2002
Cabinet review of Special Poverty Relief Allocation in 2003
BACKGROUND
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DESIGN OF THE EPWP
Must allow for wide diversity of programmes
Expand best-practice existing programmes
To be sustainable, the EPWP must not be ‘make-work’ – must be ‘economically efficient’ Emphasis on labour-intensive delivery of cost-effective quality
services
To avoid displacement, the EPWP should take place in growing sectors of the economy
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WHAT IS AN EPWP PROJECT? Deliberate attempt by the public sector body to use its expenditure
on goods and services to create additional work opportunities for the unemployed
Workers usually employed on a temporary basis (either by government, by contractors, or by other non-governmental organisations), under EPWP or learnership employment conditions
Workers provided with a combination of work experience and training
Public sector body attempts to define and facilitate exit strategies for workers when they leave the programme – more potential for exit strategies in some sectors than others
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FUNDING
No special fund for EPWP projects
Emphasis is on changing the way in which normal expenditure occurs: Reduces opportunity costs EPWP projects are identified and prioritised using standard processes Mainstreaming labour intensity Government bodies do not get involved in poverty relief projects outside
their core functional areas, BUT National programme with highly decentralised implementation creates
challenges for implementation
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Progress to date
Institutional Structures are in place:
• DG Steering Committee • Sector Coordinating Committees• EPWP Unit in DPW• Provincial Steering Committees• Communication committee with GCIS
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Training programmes
• Training programme for workers being implemented with Dept of Labour funding
• Training of engineers and contractors for labour intensive construction, with Construction SETA (CETA)
• Training of officials to implement the EPWP, with Local Government and Construction SETA’s
• Contractor learnership programme with CETA and Provinces/ Municipalities
• Learnership programmes for social sector programmes with relevant SETA’s are being finalised
• Venture learnerships for economic sector
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Infrastructure Sector
Funding for projects is provided via infrastructure grants directly to provinces and municipalities
Projects are identified planned and implemented by provinces and municipalities in accordance with their Integrated Development Plans (IDP’s)
Role of Department of Public Works: Set the conditions on the grants: use EPWP Tender and Design
Guidelines Training programmes for workers, officials, contractors, engineers,
supervisors Lobby infrastructure players to participate (provinces, municipalities,
water authorities,Transnet, Housing, Eskom, etc) Support to municipalities and provinces Monitor, evaluate and report
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Infrastructure Sector: ProvincesNational Treasury
Province
Provincial Infrastructure Grant earmarked for the EPWP through the Division of Revenue Act and Audited by the Auditor General Provincial
Infrastructure Budget
Infrastructure Budget from Equitable Share
Equitable Share
Other Provincial Expenditure
Department of Public Works Support
to province
Provinces report indicators
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Infrastructure Sector: MunicipalitiesNational Treasury
Municipality
Municipal Infrastructure Grant earmarked for the EPWP through the Division of Revenue Act and Audited by the Auditor General Municipal
Infrastructure Budget
Infrastructure Budget from Rates, levies and Taxes
Rates, Levies and Taxes
Other municipal Expenditure
Public Works
Support to municipality
DPLG
Reporting
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Significance of EPWP Guidelines Use of EPWP Guidelines is a
requirement in the Division of Revenue Act when MIG or PIG funds are used
Provide guidance and contract conditions for municipalities to tender EPWP projects
Endorsed by SALGA, NT and DBSA Makes the use of labour intensive
methods a contractual obligation of contractors
Auditor General audits provinces and municipalities to assess compliance
If municipalities and provinces do not use the Guidelines, EPWP targets will not be reached
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Provinces:• Audit of all provinces done and AG is compiling report• Compliance is poor• Many provinces are doing some labour intensive work
already, but EPWP is about intensifying this
Use of EPWP Guidelines
Municipalities:• Audit not yet started• Compliance expected to be poor for 2004-2005. This was
compounded by introduction of MIG with new procedures
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Labour Intensive Contractor Learnership Programme
1 contractor + 2 supervisors
Initial plan was for 500 learnerships
Due to interest from public bodies was increased to 750
Application to from CETA to DOL-NSF to increase the number further to 1500
Current commitment stands at 950 learnerships and increasing, approx 30 provincial departments and municipalities participating
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LI CONTRACTOR DEVELOPMENT PROGRAMME: ROLES AND RESPONSIBILITIES
Province / municipality
Learner contractor2 learner supervisors
Unemployed EPWP beneficiaries
CETA DPW DOL
ABSA
Trainingproviders for learnerships
Training providers for workers
Mentors forlearners
Mentors for training providers
Training projects
Trainers of trainers
Programme Managementsupport
IDT
CommunityFacilitationSupport
Access tocredit
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The learnership takes approximately 2 years, each learner contractor employs approx 10 workers
Learners graduate with NQF qualifications, able to tender for LI projects issued in terms of EPWP tender and design guidelines
First group of learners in Ethekwini has completed their first project
Ethekwini, Coega, Klipfontein, Nkangala and Mpumalanga learners are on site
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Significance of Labour Intensive Contractor Learnership Programme
Aims to develop 500 sustainable contractors and 1000 highly skilled site supervisors, specialised in labour intensive construction
As part of their learnerships they will implement 1500 EPWP Projects to the value of R1.5 billion
During the implementation of these projects they will employ approximately 100 000 people
These 1500 individuals will continue to execute a large share of EPWP projects after they complete their learnerships, by winning tenders
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Relationships between Provinces and Municipalities
Varies from Province to Province In Limpopo for instance the province has taken the
lead to mobilise all municipalities to participate in the EPWP Contractor learnership programme
However in provinces with large municipalities or Metro’s they act independently
The Provincial Departments of Local Government play a role in implementing the MIG and can therefore also put pressure on municipalities to implement EPWP through the EPWP Guidelines
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Other infrastructure bodies
Housing
Transnet
Water Boards
Mining companies
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Officials:• LGW SETA is funding training of local government
officials, DPW also carried out training of officials
Training
Consulting Engineers:• Have responded well, with professional bodies
supporting the initiative. More than 500 engineers have
been trained to date
Contractors:• Major contractors have not responded well and are being
engaged through professional bodies• Emerging contractors are eager but lack funds. DOL-
NSF-CETA being approached to assist
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• Training programmes in place and training
providers appointed
Training for beneficiaries
• First training programmes have been
implemented on some EPWP projects , challenge
is to have them implemented on all projects
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Provinces• Total Provincial Infrastructure Grant : Approx: R 20 billion
• Targeted expenditure on EPWP projects: Approx R 6.7 billion
• Targeted EPWP Job Creation: Approx 335 000
Municipalities• Municipal Infrastructure Grant: Approx R 25 billion
• Targeted expenditure on EPWP projects: Approx R 8.3 billion
• Targeted EPWP Job Creation: Approx 415 000
Totals:• EPWP Expenditure: R 15 billion
• Job Creation: 750 000
Infrastructure: Five Year Targets
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Infrastructure sector challenges
Many public bodies do not believe they can increase the amount of work they do labour intensively beyond what they are already doing
Wide-spread prejudices against the use of labour-intensive methods in infrastructure
Wide-spread implementation of the EPWP tender and design guidelines would result in a huge increase in employment creation, programme would exceed targets
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Social sector
Initial focus on ECD and HCBC
Challenge is to create a framework to enable the social sector to grow: Still largely in planning and preparatory phase Agreement on a common system of remuneration Improve programme management and reporting systems Put in place all the required unit standards, qualifications and
learnerships Need convincing motivation for increased funding, with
implementation models and expansion plans
Need to mobilise for more rapid expansion: Most highly labour intensive sector High potential for sustainable job creation (200 000 in ECD) Emphasized in 2005 SONA
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Social Sector model
0 1 2 3 4 5 6
YEAR
Unemployed enter EPWP and obtain work experience and training, under special conditions of employment, employed by NGOs / CBOs
Exit EPWP with work experience and qualification in ECD / HCBC Examples of exit strategies
- Further education and training
- Self employment
- Ongoing employment with same employer, at normal conditions of employment
- Employment with a new employer
EPWP
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Environment and Economic Sectors Progress
Environmental sector performing well Challenge is to expand programme into new areas, eg waste
management at municipal level
Economic sector: DTI working on economic sector plan DoL and DPW finalising venture learnerships with Services
SETA DPW lobbying government bodies for roll out of venture
learnerships, based on models such as Limpopo Sakhasonke
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Monitoring Results (2nd Quarter)
Quantitative reports for the first two quarters of 2004:
Indicator Progress*
Number of EPWP projects being implemented or completed
1518
Expenditure on EPWP projects R 1.4 billion
Gross number of work opportunities 82 200
Net number of work opportunities 75 600
Person-years of work created 19 183
*Excludes social sector and municipalities due to absence of reports
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Progress: involvement of business
Business Trust providing support:
Funding of targeted assistance to national departments
Funding of private sector field teams to support and assist provinces and municipalities to implement their projects in terms of the EPWP
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Challenges (1)
• Many public bodies do not believe they can
increase the amount of work they do labour
intensively beyond what they are already doing
• Wide-spread implementation of the EPWP tender
and design guidelines would result in a huge
increase in employment creation
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Challenges (2)
Challenge: • Audits indicate that not all provinces and
municipalities are complying with the Division of Revenue Act conditions requiring that projects be tendered as labour intensive projects according to the EPWP Guidelines
Recommendation: • Provincial and municipal political leadership to be
mobilised to instruct officials to use the EPWP guidelines when tendering suitable infrastructure projects
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Social sector:
Challenges: • Early Childhood Development (ECD) expansion
dependent on finalisation of overall ECD policy• More work required for finalisation of Home and
Community Based Care (HCBC) enabling framework• Existing budgets do not accommodate large-scale
expansion
Recommendations: • Priority to be given expanding these sectors as stated by
the President to address basic needs and absorb large
numbers of less skilled workers
Challenges (3)
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Conclusions
1. Data for the first two quarters of 2004 indicate that the EPWP will meet its published targets for the year.
2. The EPWP will exceed its targets and expectations if provinces and municipalities can be mobilised to use the EPWP tendering guidelines for suitable infrastructure projects, and if there is a large scale expansion of ECD and HCBC programmes in the social sector.
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