NORTH WEST PROVINCEDepartment: Public Works, Roads

&Transport

PRESENTATION TO SELECT COMMITTEE ON APPROPRIATIONS

07 September 2011

S’HAMBA SONKE BUSINESS PLAN

The Province prepared the Business Plan in March 2011, under the impression that S’hamba Sonke Funding of R501 million would be extra funds over and above the previous years Infrastructure Grant to Provinces (IGP).

In this Plan the Department included Carryovers/ongoing projects, Flood Damages Projects and Accruals. Projecting R597 million, R735 million and R828 million for current MTEF.

The plan was later adjusted to reduce the budgets to R501 million, R590 million and R636 million, signed off on 20th April 2011.

The approved plan together with the Gazetted list of projects were published in June 2011.

S’HAMBA SONKE PRMG ALLOCATION

ALLOCATION 2011/12 ALLOCATION R’000

EPWP CONTRACTOR DEVELOPMENT “REPHELELE” – Provincial Road Maintenance

Grant

34,000

Provincial Road Maintenance Grant

467,826

TOTAL PRMG 501,826

National Department of Transport transferred only R57M, received in May 2011. This is less than 25% of the R501M. (We spent the difference from the Provincial allocation)

DESCRIPTION2011/12

2012/13 2013/14

Bojanala 171,354 255,994 287,268

Dr. Ruth Mompati 206,117 202,885 263,277

Ngaka Modiri-Molema

106,865 62,039 16,871

Dr. Kenneth Kaunda

17,490 63,189 30,750

 TOTAL MTEF 501,826 584,107 598,166

S’HAMBA SONKE MTEF ALLOCATIONS BY DISTRICTS

PRMG TRANSFERSInstallment Month Received Province

Transfer R’000Actual Amount Received R’000

First Installment

13 May 2011 110,000 (advance)

57,000

Second installment

19 August 2011 33,000 (Roll over)

164,921

Third Installment

11 November 2011

172,742

Fourth Installment

2 February 2012 106,521

National Department of Transport transferred only R57 million in May 2011. This is amount is less than 25% of the R501 million Provincial Cash flow Projections.

R110 million advance came from the Provincial Treasury to make up for the National Treasury Installment transfer shortfall.

PRMG TRANSFERS

BUDGET VS. EXPENDITURE ALLOCATION 2011/12 PROVINCIAL

ROADS MAINTENANCE GRANT (PRMG) R’000

PRMG EXPENDITURE AS AT 31 JULY 2011

R’000

EPWP CONTRACTOR DEVELOPMENT

“REPHELELE” – PRMG

34,000 12,254

PRMG 467,826 89,645

TOTALS 501,826 101,899 (20,3%)

National Department of Transport transferred only R57M, received in May 2011. This is less than 25% of the R501M. (We spent the difference from the Provincial allocation)

PRMG PLAN PROGRESS PROGRESS STATUS NUMBER OF

PROJECTS Committed/cost

estimate AMOUNT Budget AMOUNT

RETENTION 12 R30,931 R30,931

CONSTRUCTION 7 R456,828 R178,869

TENDER STAGE (Advert, Bid Committees etc.)

16 R808,751 R225,586

DESIGN STAGE (Detailed design and tender

specification)

9 R1,041,990 R36,762

PLANNING (Scoping and Preliminary Designs)

23 R1,447,186 R42,161

Emergency Potholes Repairs and Reseal

36 R275,084 R0

Projects on Hold and Suspended

10 R99,200 R70,000

FACTORS CONTRIBUTING TO SPENDING OF THE GRANT

•Capital Projects suspended due to:• insufficient funds in 2009/10 financial year • non-performance of Service Providers (Consultants and Contractors)• budget over commitment

• There’s extra burden of going back to complete incomplete work before starting any new work.

•Approved Projects list for PRMG are not a true reflection of the actual work on the ground.

•Allocation to North West Province is not sufficient to deal speedily with the current backlogs.

FACTORS CONTRIBUTING TO SPENDING OF THE GRANT

Treasury Supply Chain Management Processes

The possible delays in spending the current budget because of the National Treasury Instruction Note affecting bid in excess of R10 million.

Unbundling of projects to allow maximum participation of Emerging Consultants and Constructors maybe construed as avoiding submission of bids over R10 million to Treasury.

FACTORS CONTRIBUTING TO SPENDING OF THE GRANT

The Department makes use of the services of the Capex Programme Manager to complement the current staff shortage.

Filled Positions: 1 Chief Director, 2 Directors, 4 Deputy Directors, 4 Technicians & 1 Assistant Director.

Vacancies: 2 Directors, 11 Deputy Directors,

58 Technicians & 3 Assistant Directors.

Application to HR for filling of critical vacancies is in progress. Current capacity is augmented with the Program Managers and Project Consultants.

– High number of Engineering/Technical staff vacancies.– Approved structure has about 127 posts, only 47 posts

are filled. Excluding Districts’ posts, for implementation

of the maintenance program.

– High staff turnover, vacated funded posts not filled, since

2006.

– Majority of the posts will be advertised before end of September– The structure is also being revised in line with the Mandate of

the Department.

FACTORS CONTRIBUTING TO SPENDING OF THE GRANT

CURRENT TECHNICAL STAFF CAPACITY LEVEL

The Department makes use of the services of the Capex Programme Manager to complement the current staff shortage.

Filled Positions: 1 Chief Director, 2 Directors, 4 Deputy Directors, 4 Technicians & 1 Assistant Director.

Vacancies: 2 Directors, 11 Deputy Directors,

58 Technicians & 3 Assistant Directors.

Application to HR for filling of critical vacancies is in progress. Current capacity is augmented with the Program Managers and Project Consultants.

S’HAMBA SONKE PROGRAMME •The Department initiated a programme War on Potholes in 2009 – using EPWP methods and JET Patchers

•Mahikeng Revitalisation Programme where a budget of R35M was committed to some identified roads within Mahikeng

•The introduction of the S’hamba Sonke Programme came in at the appropriate time when the above programmes were gaining the interest of other Districts within the Province.

•North West DPWRT is planning a massive launch in September which is coupled with handing over of the Mahikeng Roads

PROGRESS ON JOB CREATIONJune 2011

S’hamba Sonke District

Total Number of FTE's Created to Date (1 FTE =230 labour days)

Adult Male

Adult Female

Youth Male

Youth Female

Disabled Total

Bojanala 247.30 72.88 126.18 67.60 1.74 516

Dr Kenneth Kaunda

- - - - - -

Dr Ruth Segomotsi Mompati

71.32 0.92 49.89 1.65 - 124

Ngaka Modiri Molema

77.82 31.32 141.86 79.98 - 331

TOTAL / AVERAGE

396.43 105.12 317.93 149.22 1.74 970

PROGRESS ON JOB CREATIONPROGRAM 5: COMMUNITY BASED PROGRAM

2011/12

ANNUAL

TARGET

1ST QRT

TARGET

1st QRT ACTUAL

NUMBER OF PEOPLE EMPLOYED

10 500 33001100

NUMBER OF EMPLOYMENT DAYS CREATED

74 4000 28 80066 060

NUMBER OF JOBS CREATED10 500 3 300

1 101

NUMBER OF YOUTHS (16-25) EMPLOYED

4 000 2 300440

NUMBER OF WOMEN EMPLOYED

5 200 2 500690

NUMBER OF PLWD110 55

4

SKILLS AND CONTRACTOR DEVELOPMENT

LOCAL MATERIAL AND EQUIPEMENT

LABOUR ABSORPTIVE METHODOLOGIES

LOCAL LABOUR IS EMPLOYED

LABOUR ABSORPTIVE METHODOLOGIES

PLANNED 2011/12 EPWP LEARNERSHIP LABOUR ABSORPTIVE METHODOLOGIES UPRGADING OF ACCESS ROADS( START IN 3RD QRT 2011/12)

Number of Work Opportunities

PROJECT ROAD LENGTH

BUDGET R’000

FTE ESTIMATE CONSTRUCTION

PERIOD D509 between Leeuwdoringstad and Road D1138

5.0 KM 4, 500 19 12 months

D402 between Mokope and Atamelang

6.0 KM 8,265 36 14 months

Upgrading of Road Z554 between Mokgalwaneng and Matlametlong

4.8 KM 7,337 32 12 months

Z422 between Lokaleng and Junction

11.5 KM 7,062 31 24 months

Z469 from junction with road D414 to Disaneng Dam

4.0 KM 6,836 30 10 months

TOTAL 34,000 148

EPWP JOB CREATION

DEPARTMENTAL PROJECTS

NATIONAL YOUTH SERVICE/YOUTH PROGRAMME (NYS)

NATIONAL YOUTH SERVICE/YOUTH PROGRAMME (NYS)

MAFIKENG REVITALIZATION (ORANGE BRIGADE)

ROAD RANGERS

BUILDING MAINTENANCE PROGRAMME

Project Name District Job Creation Comments

Madikwe Traffic office Bojanala 16 446 persons have been employed in these projects. These are all Building Maintenance and Administrative Support Projects. They are implemented by the Departmental Maintenance Teams whereby the Department procures materials, protective clothing and tools. Each person gets paid a daily stipend of R 75, 00.

Garden Maintenance All districts 102Bojanala Revitalisation( car wash, permit board, operating licencing boad, administration) Bojanala 80

Matlametlo Bojanala 15

Bray Road Camp Dr R Mompati 10

Mokgalwaneng Rural Development Bojanala 133

Legal Service Ngaka Modiri 10Molopo Workshop (landscaping & perimeter wall) Ngaka Modiri 30

Molopo Sub-District paving Ngaka Modiri 50 446

SCHOLAR MONITORING PROGRAMME

SCHOLAR MONITORING PROGRAMME

LOBOLOTSE CONTRACTOR DEVELOPMENT PROGRAMME

ITIRELE ROAD MAINTENANCE PROGRAMME

ITIRELE ROAD MAINTENANCE PROGRAMME

THANK YOU