• Achievements
• Value Plan and strategic drivers
• Expanded Public Works Programme
• The budget
• Challenges

• Development of a service delivery improvement programme
• Risk management strategy and fraud prevention plan
• Fully functional internal audit service extended to regional offices Launch of two charter processes
• Disaster Recovery Plan
• lncreased spending capacity
• Leadership Way initiative launched

• Process instituted to clean up Asset register and speed up the vesting process
• Identification of unutilized properties for disposal -cost implications re rates and taxes
• Evaluation and review of ECDP and RAMP to enable improved future design and planning
• Development of a holistic maintenance plan
• Recruitment process of young graduates underway
• Launch of EPWP and meeting of targets

DPW strategic drivers

• Asset Management
• Service
• Capacity

Asset Management

Asset Management has the following three key elements:

• Defined service levels and performance standards linked to strategic objectives
• Optimal investment decisions
• A long-term (life-cycle) approach for all assets

• Investment analysis - cost analysis of leases; currently developing a financial lease model to guide acquisition of accommodation.

• Holistic maintenance plan - this is a plan for all state assets costing about R1 2,5 bn to repair assets to operational efficiency.

• Private-Public-Partnership - to facilitate PPP transactions.
• PICP - in partnership with Tshwane Municipality – provide accommodation for all government departments downtown.

• Client service level agreements and clients specific value proposition.

• GIAMA White Paper process - drafting of a GIAMA Act asset management plans - requirements of PFMA and GIAMA to submit plans each year.

• Performance standards - space and cost norms for buildings under review to improve service delivery.

• Immovable Asset Register Plan - to improve data integrity of asset register and enhance property management function.

• Risk management plan for immovable assets being drafted.
• Portfolio Analysis - provide analysis of options related to acquisition, construction, renovation,leasing, disposals etc.:

Service

The key initiative is the launch of the service delivery improvement programme, SDIP and Leadership Way initiative

• It has the following components;
• Customer relationship management
• Management of core facilities management services
• Project and contract management
• Core facilities management services

• Leadership Way is a new initiative aimed at changing the organisational culture in the department

• It focuses on issues such as

• Deflning minimum standards of behavior for staff and managers
• Defines the preferred management style
• Disciplinary action against non performance
• Seeks to align DPW to Batho Pele initiative
• All staff to sign and recommit themselves
• Will be included in the performance contracts for managers

Transformation

• Industry transformation will be dominated by the finalisation of BEE Charters for the Construction and Property industries

• DPW is expected to develop construction industry strategy to be incorporated into MERS (January Cabinet Lekgotla)

• Transforming the DPW culture to a more service and client oriented culture

Capacity

• An internal skills and competencies audit has been conducted and completed
• Skills shortages experienced in the asset management and built environment skills-Graduates initiative launched
• DPW needs a comprehensive HR strategy to address capacity shortages (Recruitment, training and development, retention
• HRD Director has just been appointed
• The CBE is assisting HR to establish strategic partnerships with tertiary institutions and Technikons to procure built environment skills

Capacity- Systems and Business Processes

• Systems

• Public Works systems to be integrated to enable seamless delivery under auspices of SITA and the National Treasury

• Business Processes

• The reengineered processes are meant to define the "To-be" business process architecture of Public Works

Budget

- Overall management of the National Department of Public Works - for example, policy development, implementation strategies, and providing support services

Programme 2: Provision of Land and Accommodation

- Provision of Land and development, management and maintenance of accommodation to ensure that national departments and institutions have a built environment that meets their financial, social, and technical requirement

Programme 3: National Public Works Programme

- Promotion of sustainable growth of Construction and Property Industries whilst fast-tracking their transformation and development;

- Custodial function of national state property portfolio under NDPW; and

- Address poverty and unemployment through EPWP

Programme 4: Auxiliary and Associated Services

Provision for various services, including:

- Losses incurred in State housing guarantee scheme;

- Maintenance of war graves & national memorials;

- Decorations for public functions such as State funerals and inaugurations;

- Acquisition of vehicles for Departmental use;

- Skills Development Act levies; and

- Financial assistance to Parliamentary Villages Management Board

KEY FOCAL AREAS

• The Department's budgetary allocation is inadequate to fund the Department's critical programmes as would be demonstrated

• This is demonstrated by the Over-expenditure trend which amounted to R34m in 2001/02 and increased to R227 million in the 2002/03 financial year, decreased to R30 million in 2003/4

• Capacity to spend has been built and is no longer a concern

• In order to curb of overspending, the department had to stop certain services e.g. maintenance

• Much stricter measures are being implemented in the current financial year (2004/2005) to ensure that the department does not exceed the approved allocation.

COMPARISON OF REQUESTED BUDGET WITH APPROVED ALLOCATION AT PROGRAMME LELVEL

Cost of maintenance backlog

• Maintenance backlog is estimated at R12,5b
• NDPW has a budget of R949m to maintain 100 972 facilities around the country, translating to about R9400,00 per building annum
• We require funding levels at R2.5 Billion a year for maintenance
• This leaves us with a funding deficit of R1 .5 Billion for recurrent maintenance per annum

The implications of under-funding as they relate to the main cost Items are:

- Leasing: lease commitments have to be honored to enable clients departments to function

- Rates on State Property and Municipal Services: Services which could have like hospitals etc. In service delivery efforts have to be paid to prevent termination catastrophic results to public facilities addition, this sphere of Government's will be greatly compromised

- Maintenance: May result to non compliance with Occupational Health and Safety Act as some buildings are already in dilapidated state.

As a co-coordinator, our responsibility is as follows:

• Create a supportive and enabling environment for the implementation of EPWP
• Coordinate activities of public bodies involved in the programme
• Facilitate learning between the various stakeholders
• Monitoring, evaluating and reporting on the EPWP
• Assist with the identification of opportunities to implement EPWP projects

Challenges

• Lack of asset management and built environmental skills
• Repair and maintenance of public buildings
• Improving service delivery
• Clarifying our role

Conclusion-Legislation

• The following Bills will be tabled in the second part of the year
• GlAMA
• Parliamentary Villages Board Act
• Expropriation Act

THANK You