EXPANDED PUBLIC WORKS PROGRAMME
PROGRESS REPORT FOR PORTFOLIO COMMITTEE
EPWP CONTRACTOR LEARNERSHIP PROGRAMME
12 November 2004
The Expanded Public Works Programme (EPWP) is an initiative resulting from President Thabo Mbeki’s State of the Nation Address in February 2003. The EPWP is a short-to-medium term programme aimed at alleviating and reducing unemployment.
All public bodies are expected to attempt to contribute to the EPWP. Public bodies will use the "Guidelines for the Implementation of Labour-Intensive Infrastructure Projects under the Expanded Public Works Programme" to identify suitable infrastructure projects, guide appropriate designs for labour-intensive construction, and compile contract documentation for labour-intensive projects. These Guidelines also place specific requirements in terms of training on contractors and their staff.
The EPWP Contractor learnerships programme has been developed to build the capacity amongst emerging contractors to execute the increasing amount of labour-intensive work that will be part of the EPWP. Learner contractors in the programme will also receive all the training required as part of the EPWP Guidelines so that when the exit the programme they are fully qualified to tender and execute labour intensive projects under the EPWP.
Provinces and municipalities participate in the contractor learnership programme on a voluntary basis. Participating provinces and/or municipalities are required to provide suitable projects that can be executed by contractors on learnerships.
At present throughout the Republic of South Africa, various Provinces/Municipalities have expressed interest in signing up Learnerships, with the present total number of prospective Learnerships being 1200 (comprising 400 Learner Contractors and 800 Learner Supervisors).
Memoranda of Agreement have been signed for 663 Learnerships on the EPWP Contractor Learnership Programme, with the distribution as follows:
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Eastern Cape |
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45 Learnerships |
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30 Learnerships |
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Free State |
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90 Learnerships |
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KwaZulu-Natal |
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72 Learnerships |
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Limpopo |
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78 Learnerships |
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Mpumalanga |
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45 Learnerships |
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60 Learnerships |
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Northern Cape |
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75 Learnerships |
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Western Cape |
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48 Learnerships |
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60 Learnerships |
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60 Learnerships |
Further to the above, it is expected that Memoranda of Agreement for Learnerships will be concluded with the following authorities during the course of the next month:
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Eastern Cape |
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30 Learnerships |
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Free State |
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75 Learnerships |
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Mpumalanga |
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30 Learnerships |
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45 Learnerships |
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Gauteng |
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75 Learnerships |
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60 Learnerships |
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12 Learnerships |
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KwaZulu-Natal |
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50 Learnerships |
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Western Cape |
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30 Learnerships |
The Learnership selection processes are actively but not exclusively targeting learners under the age of 35 years. Of the total number of learners that have signed learnership agreements to date, 185 in total, 27% (50) are female. A total of 142 (77%) is below the age of 35 years.
The EPWP will be implemented in partnership with provinces, municipalities, Department Public Works, Construction Education and Training Authority (CETA) and ABSA or other bank that learners may prefer.
The purpose of this Learnership Program is to train contractors and supervisors within a Learnership on EPWP labour-intensive infrastructure projects. By the end of the learnership, they will no longer be employed but will have emerged.
As part of the EPWP, the Department of Public Works (DPW) applied to the Construction Education and Training Authority (CETA) for learnerships for individuals to become (or work for) labour-intensive contractors. The CETA approved learnerships for 250 Learner Contractors at NQF level 2 level and 500 Learner Supervisors at NQF level 4, represented in the form of 250 Learner Contracting Companies. Each contracting company will involve the training of one contractor at NQF level 2 and two site supervisors at NQF level 4. These companies will be the contracting entities with the relevant authority to undertake the on-site training-projects. By the end of the learnerships, the contractors should be registered enterprises able to tender for, build and maintain low-volume roads, stormwater drains, pipelines and sidewalks using labour-intensive methods.
CETA have contractually agreed with the NDPW for the provision of trainers for Learners, though in terms of their present budget of R 50 million, it is agreed that CETA can cater for 750 Learners (250 Learner Contractors at NQF level 2 level and 500 Learner Supervisors at NQF level 4) represented in the form of 250 Learner Contracting Companies.
The learnerships funded by CETA are:
On the basis of the expressions of interest received in respect of the Learnership Programme, the CETA has approached the Department of Labour in order to secure additional funding and that the original Memorandum of Agreement be amended to increase the number to 1,500 Learnerships (500 Learner Contractors and 1,000 Learner Supervisors, giving 500 Learner Contracting Companies).
The National Department of Public Works (NDPW) Infrastructure Learnership Structure has been finalised, with the Infrastructure Learnership Team as follows:
Labour Intensive - Head the Learnership Team
Assume ultimate responsibility for all Programme Managers and Learnerships, report to the Chief Director: Labour Intensive
DPW entered into a national agreement with ABSA bank to provide access to credit and financial services to those learners who require it. Financial services through ABSA are not mandatory for public bodies or learning contracting companies. Neither is obliged to utilise ABSA in terms of the National Agreement.
Access to credit and bridging finance enables learner contractors to purchase the necessary tools and equipment to carry out training projects. The national agreement for the provision of finance to Learner Contractor Companies was finalised between NDPW and ABSA Bank on the 01st July 2004.
The provision of Contractor's All-Risk, Plant, and Motor-Vehicle Insurance for the Learner Contractor Companies, as secured through ABSA Insurance Brokers, still needs to be finalised. An agreement to this effect will be drafted during the course of the this month.
Provinces and municipalities participate in the programme on a voluntary basis. In order to participate, a province or municipality must sign a Memorandum of Agreement (MOA) with DPW and the CETA. The MOA sets out the roles and responsibilities of the various parties, and a basic policy framework for the implementation of the programme, to which all the parties to the Memorandum of Agreement (MOA) will agree to abide by.
Municipalities and provinces are encouraged to send their officials on training courses on the management and supervision of labour intensive construction projects as the province and/or municipality will be required to provide projects that can be executed by the contractors on the learnerships. These projects will be concluded with the learner contracting company in terms of separate and independent on-site training-project agreements, and should fit the scope of the learnership programme.
The province or municipality participates in the selection process of learners, and will arrange to launch the programme locally.
In order to comply with the National Treasury’s requirement that the Learnership selection be a competitive, open and transparent process, the Learnership Selection Process has been designed to include the following mandatory steps:
In addition, the Authority may advertise through other media, by means of mail drops, through the canvassing of training providers, and by inviting contractors on Authority Contractor Lists to apply to be selected.
On the basis of the above process, the prospective Learners are scored, with the scores thereafter adjusted to allow for weighting in terms of historical disadvantaged criteria. The highest scoring candidates are thereafter selected onto the Learnership Programme.
The success of the learnership depends on the implementation of related knowledge in the workplace. The mentor plays a vital role in this regard as mentors have the necessary construction, business and administrative knowledge and are experienced and conversant with labour-intensive construction methods. Mentors will be appointed for the entire learnership period, so that the learner contractor/supervisors receive advice in managing and running the business. Support to the learners should reduce over time, as the learners get more experienced.
Mentor recruitment for the Learnership Programme was by means of a nationwide tender issued by the National Department of Public Works. Mentoring teams for Ethekwini (Durban) have been appointed.
Mentor interviews for the following 4 centres have been completed:
Mentoring teams sign a performance contract. An audit based on the different competency areas and activities may be undertaken by the Department to assess that the mentors have achieved skills transfer and in the case of poor performance as a disciplinary measure.
Mentoring teams still have to be interviewed and appointed for the following 11 regions:
Municipalities and provinces needs to be informed to encourage them to participate in these labour intensive contractor learnerships.
A total of 24 contractors and 48 supervisors, totalling 72 learners have been selected for the learnership programme.
The mentoring teams were appointed for the twenty four Learner Contracting Companies.
The first on-site training-projects started early November 2004, with water reticulation projects. The project value is R 100,000-00 per Learner Contracting Company, and the project is being scheduled to be completed before the Christmas shutdown. The projects will all be within a localised distance in order to enable practical training, and maximise mentor availability.
Briefing sessions for prospective Learners were held in the last two weeks of September 2004. Selection of learners is in process.
With regard to these regions, council permission needed to be obtained prior to the advertising for Learners. This permission has now been obtained; with the respective regions all undertaking to advertise by mid-September, following which the Learner Selection Process will commence.
The on-site training-projects will consist of road rehabilitation projects within municipal boundaries, as well as water reticulation projects, also within municipal boundaries.
The learner interviews were held in the last week of August 2004. Learner Selection process is now complete with 15 Learner Contractors and 30 Supervisors provisionally selected. These will need to be confirmed by the Training Provider. The formal training will commence 8 November 2004, with the first on-site training-project thus only able to commence in January 2005. The on-site training-projects need to be assessed for suitability within the next month.
For the Nkangala District Municipality, the advertisements for Learners have been issued. The written assessments were held in the second week of September. The Learner Selection process is completed with 20 Learner Contractors and 40 Supervisors provisionally selected. The formal training will commence in November 2004.
Coega advertised for Learners in mid-August, with the Learner Selection process been fast tracked in order that Learners were interviewed in the last week of September. Training is to commence in mid November 2004.
A total of 10 construction contractors have been selected and the 20 supervisors still need to be confirmed. In addition, three Learner Contractors presently involved with projects of the Department of Roads and Transport will be simultaneously trained with the Coega Learners.
The on-site training-project will be the construction of a sports field, having a value of R 3.5 Million, with all Learner Contracting Companies working on the same project. This project will commence by the end of November, with construction going through the December period in order that the completion date of 31st March 2004 is achieved.
With the Department of Public Works, Roads of Western Province, as well as for the Klipfontein corridor project, subsequent to the signing of the MOA, advertisements for prospective learners have been placed. The Training Providers have been recruited.
A total of 24 contractors and 48 supervisors, totalling 72 learners have been selected and training is due to commence at the beginning of December 2004. ABSA have undertaken credit checks on the selected Learner Contractors, who are seen to qualify for credit.
The Department of Transport’s first on-site training-project will consist of a road rehabilitation project in the Paarl area, with a contract value of the order of R 1.2 Million to R 1.5 Million, with this contract split equally between the four Paarl Learner Contracting Companies. The Department of Transport’s Cape Town based project still needs to be identified.
Ten of the Learner Contractors will be involved with the Department of Transport’s projects, with the remaining Learner Contractor’s being involved with the Klipfontein Corridor.
ADDENDUM A:
LEARNERSHIP APPLICATIONS
ADDENDUM B:
LEARNERS SELECTED