EXPANDED PUBLIC WORKS PROGRAMME
Creating opportunities towards human fullfilment

EPWP and the DORA

Finance Select Committee
8 March 2005


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 Departments of Public Works:
= Ensure that EPWP Tender and Design Guidelines are used on all relevant projects
= 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

Infrastructure Sector: Provinces

National Treasury => Province (via equitable share)
Department of Public Works => Province (support to province)

Province => Other provincial expenditure
=> Department of Public Works (provinces report indicators

=> Provincial Infrastructure Budget => Infrastructure Budget from equitable share
=> Provincial Infrastructure Grant earmarked for the EPWP
through the Division of Revenue Act and Audited by the
Auditor General

Infrastructure Sector: Municipalities

National Treasury => Dpt of Provincial and Local Govt => Municipality => Municipal Infrastructure Budget
Department of Provincial and Local Government => Department of Public Works (reporting)
Department of Public Works => Municipality (support to municipality)
Municipality => Department of Provincial and Local Government (reporting)

Municipality <= Rates, Levies and Taxes
=> Other municipal expenditure
=> Municipal Infrastructure Budget => Infrastructure Budget from Rates, levies and Taxes
=> Municipal Infrastructure Grant earmarked for the
EPWP through the Division of Revenue Act and
Audited by the Auditor General

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 5 will not be reached

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 increase the DOL-NSF number further to 1500
- Current commitment stands at 950 learnerships and increasing, approx 30 provincial departments and
municipalities participating

Contractor Development Programme: Roles and Responsibilities
[PMG note: Diagram not included]

- 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

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 RI .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

Infrastructure related Training
- Officials:
= LGW SETA is funding training of local government officials, DPW also carried out training of officials

- 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. Department of Labour-NSF-CETA being approached to assist

Training for beneficiaries
- Training programmes n place and training providers appointed
- First training programmes have been implemented on some EPWP projects, challenge is to have them implemented on all projects

Infrastructure: Five Year Targets
- 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