KwaZulu-Natal Infrastructure Delivery Management System (IDMS)
1
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Background
• Governments around the world rank
infrastructure policy among their greatest
concerns. The modernisation of infrastructure is
seen as being critical to future economic
competitiveness and crucial to accommodating
expanding populations in urbanising
environments (Urban Land Institute and Ernst
and Young, 2011).
2
Global Infrastructure Needs
The world’s infrastructure needs are huge, and
growing. Yet the resources required to finance such
investments, together with the business models for
raising the funds and implementing the projects,
are failing to keep pace. The result is a growing gap
between needs and actual levels of investment
which will evolve over time depending upon the
level of economic growth, the structure of financial
markets and the impact of environmental pressure.
Global Infrastructure Needs
Clearly the
infrastructure
crisis is an
immense,
complex,
multidimensional
problem that
challenges world
governments
Global Infrastructure Needs
What are required are innovative solutions for
resolving bottlenecks in the financing of
investments and in the implementation and
operation of the infrastructure projects.
Discussions of public infrastructure rarely start
with straightforward definitions of what
infrastructure is but rather with a general
discussion of what it does. The literature cites
three reasons why an adequate supply of
infrastructure is important: it supports economic
growth, it enhances quality of life and it is
important for national security.
Capital Stock/Infrastructure
Capital Expenditure is imperative
Adds New Capital StockCreate Positive ExternalitiesOutwards Shift of the PPF
Support Potential GDP
Private vs Public
Capital Stock/Infrastructure
SA Reserve Bank
150.00
160.00
170.00
180.00
190.00
200.00
210.00
220.00
230.00
240.00
250.00
19
64
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65
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66
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67
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68
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20
10
20
11
20
12
Total Fix Stock as a % of GDP
Capital Stock/Infrastructure
SA Reserve Bank
70.00
80.00
90.00
100.00
110.00
120.00
130.00
140.00
19
64
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65
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66
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67
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06
20
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08
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20
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20
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Government as % of GDP
Private Business as % of GDP
Capital Stock/Infrastructure
SA Reserve Bank
10.00
12.00
14.00
16.00
18.00
20.00
22.00
19
64
19
65
19
66
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00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Gross fixed capital formation as a % of
GDP
Capital Stock/Infrastructure
SA Reserve Bank
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
19
64
19
65
19
66
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67
19
68
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69
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20
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02
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03
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04
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20
10
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20
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Gross fixed capital formation Government as a % of GDP
Gross fixed capital formation Private Business as a % of GDP
Capital Stock/Infrastructure
Public Capital or Infrastructure is the term that
describes infrastructure that is owned by the
public and/or is for public use. It is generally
distinguishable from private or generic
infrastructure in terms of policy, financing,
purpose, etc
Capital Expenditure by Public-Sector
Capital Expenditure by Public-Sector
Capital Expenditure by Public-Sector
Capital Expenditure by Public-Sector
Capital Expenditure by KZN Public-Sector
0
500000
1000000
1500000
2000000
25000002
00
1Q
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Q1
Capital Expenditure Nominal
Capital Expenditure RealR’000
Capital Expenditure by KZN Public-Sector
0.00
0.50
1.00
1.50
2.00
2.50
3.00
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KZN Capex as a % of KZN GDP
Capital Stock by KZN Public-Sector
47 000 000 000
49 000 000 000
51 000 000 000
53 000 000 000
55 000 000 000
57 000 000 000
59 000 000 000
61 000 000 000
63 000 000 000
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KZN Fixed Capital Stock
perpetual inventorymethod where;•K2001 = R 48 314 313 600
•GFK2001
= R500 124 400
•δ = 5%
Capital Stock by KZN Public-Sector
37,000
38,000
39,000
40,000
41,000
42,000
43,000
44,000
01 02 03 04 05 06 07 08 09 10 11 12 13
CAPITALINTENSITY
capital intensities indicate that the amount of physical
capital available per worker
Capital Stock by KZN Public-Sector
capital coefficient is simply the amount of capital
divided by the gross domestic product
.72
.76
.80
.84
.88
.92
01 02 03 04 05 06 07 08 09 10 11 12 13
CAPITALCOEFFICIENTS
INFRASTRUCTURE CRISIS
22
Program delivery — How can the
infrastructure improvements be
delivered with low disruption to the
system?
Challenges that we face
� Roles and responsibilities between provincial departments and thespheres of government in relation to infrastructure delivery is unclear[AG 2011; NDP 2030].
� The [infrastructure] delivery management system either does notexist or is dysfunctional – key processes and procedures are notwell defined.
� Current structures of and posts in infrastructure units are not alignedto the new management processes and legal requirements
– Although infrastructure budgets have increased, capacity to support delivery is
insufficient.
– Knowledge base and capacity of Public Works as an Implementing Agent and
Custodian is failing to ensure value for money.
– Governance structures in Sector Departments and Public Works are ineffective
to ensure value for money.
23
24
The Infrastructure Delivery Management System (IDMS) has its origins from 2001
when National Treasury commissioned a review of the provincial infrastructure
delivery systems. The recommendations from the study resulted in, amongst others,
the launch of the Infrastructure Delivery Improvement Programme (IDIP).
IDIP is a change enablement programme to provide support and guidance to
improve infrastructure service delivery. The program is co-ordinated by a Program
Management Unit (PMU), located in National Treasury and is in partnership with the
• CIDB,
• Department of Basic Education,
• Health,
• Public Works,
• Public Service Administration (dpsa); and the
• Development Bank of Southern Africa (DBSA).
Four IDIP Technical Assistance (TA) have been deployed to Provincial Departments
of Health, Education, Public Works and Treasury
IDMS Background
The Development ConceptThe Infrastructure Delivery Improvement Programme (IDIP) has
developed and implemented the following as part of entrenching good
practices:
� The Infrastructure Delivery Management System (IDMS)
– The Government system for the planning, delivery and maintenance of
immovable assets.
– supports the clarification of functions, roles and responsibilities within the
infrastructure delivery chain;
� The Infrastructure Delivery Management Toolkit (IDM Toolkit).
– provides a structured and auditable process to support portfolio planning,
project management and operations & maintenance;
� The Capacitation Strategy for the infrastructure units
– ensures the appropriate structuring, staffing and training of infrastructure units
in relevant national and provincial departments; 25
The Infrastructure Delivery
Management System (IDMS)The system that describes the processes that make up public sector infrastructure management, mainly applied to the construction industry.
� The IDMS outlines the core infrastructure processes for:
1. Planning;2. Procurement;3. Delivery; 4. Operation; and5. Maintenance
The Infrastructure Delivery
Management (IDM) Toolkit
27
Purpose of the IDM Toolkit is:
• Provide a documented body of knowledge and set of processes that represent generally recognised best practices in the delivery management of infrastructure
• Focussed on the delivery and life cycle management of South African public sector infrastructure
• Provides “how to” guidelines for infrastructure delivery and procurement management necessary to deliver, operate and maintain infrastructure
• Facilitates a uniform approach to infrastructure delivery management
• The Toolkit, when adhered to, will also assist departments in complying with applicable legislative requirements
IDMS Capacitation Strategy - Phased
Approach with Buy-in
Agree on
content of each
Function &
Responsibilities
-
In line with
dpsa model and
IDMS.
Agree on
content of each
Function &
Responsibilities
-
In line with
dpsa model and
IDMS.
Legal
mandate,
core
business
roles and HR
Profiles in
line with
business
roles of
departments
Legal
mandate,
core
business
roles and HR
Profiles in
line with
business
roles of
departments
Organisation
design
principles
and
structures
strategies/
structures
Organisation
design
principles
and
structures
strategies/
structures
Job
Profiles
and Job
Evaluation
Job
Profiles
and Job
Evaluation
HR Norms HR Norms
National/Provincial
Cabinet memoranda
to institutionalise
IDMS, Service
Delivery Model and
Functional Structures
– dpsa will issue
Ministerial Directive
for the structures.
National/Provincial
Cabinet memoranda
to institutionalise
IDMS, Service
Delivery Model and
Functional Structures
– dpsa will issue
Ministerial Directive
for the structures.
Governance Principles – IDMS
Infrastructure Delivery Principles - IDMS
Requirements for a strong foundation
Roll-Out for the IDMS and
Capacitation Strategy
Step 1Step 1
Step 2Step 2
Step 3Step 3
Step 4Step 4 OngoingPresentation to all HODs and MECs at relevant sector forums for example National Health Council and to DPSA
Facilitation of sessions in each Province to customise the functional analysis and aligned to the departmental service delivery platform.
Customisation of proposed generic structures to meet needs of each Province based on the outcome of the functional analysis
Customisation of generic HR norms based on uniqueness of each Province
Finalise all the Job profiles and directive issued by dpsa
Intense consultation process (reiterative
processes) –work as co-operative partners
Province must lead: Leadership and facilitative role
HR/OD Units) and Provincial Treasuries are
critical
Role of and consultation with 4
HODs and MECs in each Province very important
HR model and Provincial Framework for IDMS
implemented at same time
TAs to participate in sessions and to
draft the provincial IDMS
30
Infrastructure Delivery Management
System (IDMS) What is the IDMS:
• The IDMS provides a systematic framework for the infrastructure project lifecycle
• It outlines the core processes associated with planning, procurement, delivery, operations and maintenance of infrastructure
• Comprises three Delivery Processes:
o DP1 Portfolio Management
o DP2 Project Management
o DP3 Operations and Maintenance
31
Infrastructure Delivery Management
System (IDMS)
� The IDMS ensures strategic alignment of the infrastructure value chain.
� This value chain is supported through the IDMS Capacitation framework, IDM Risk System, IDM Toolkit and the construction procurement enhancement process.
� The IDMS process will agree and unpack on how portfolio management, programme management, project management, maintenance and related operations will be implemented in the Province.
Value of the IDMS
32
IDMS provides a systematic approach to infrastructure delivery
covering the full cycle from needs identification, planning and
budgeting through to procurement, construction, handover and maintenance.
Construction procurement
system
Infrastructure
Strategic Decision Making Points
Infrastructure
Delivery
Management
System
33
Value of the IDMS
Departure Point : Agree on key IDMS
Principles for KZN � Governance Principles for Infrastructure Management
� Cooperative Governance and Structures
� Custodian Roles
� Implementing Agent Roles
� Clarification of mandates
� Rules of engagement
� Budgets and Payments
� Construction Procurement System
� Infrastructure Delivery
� Planning and Budgeting for infrastructure delivery
� Management of Information and Documentation
� Expanded Public Works Programme
� Maintenance34
• One central point for infrastructure coordination in the province
• Clear responsibilities and accountability
• Compliance with Legislation & IDIP requirements
• Ensure total compliance for built environment regulations and requirements
• Ensure quality workmanship
• Uniform and timeous, quality and cost effective infrastructural delivery
• Improved coordinated effort for updated Fixed Asset Register
• Reduced risk to the Provincial GovernmentKZN Infrastructure Delivery Model 35
IDMS Benefits
• Strategic Decision Making Points in IDMs as agreed in the Province
and the required capacity in Departments to be able to take these
decisions.
• National Basic Education/Health/National Treasury Requirements
and Strategic Policy direction in relation to infrastructure
requirements in Provinces.
• Focussed on key institutional issues that need to be addressed to
promote sustainability.
• Buy-in at Accounting Officer and Political levels. [National and
Provincial Spheres of Government].
• dpsa consultation and support.
IDMS Deliverables
Division of Revenue Bill 2013
37
Part 6: Future work on provincial and municipal fiscal frameworks
Provincial infrastructure transfers
Infrastructure conditional grants to provinces will be
reformed during the 2013 MTEF to introduce incentives
in existing grant structures, which will promote good
infrastructure delivery management system
practices and complement existing capacity support
programmes.
These incentives will aim to address infrastructure
planning and procurement failures in infrastructure
delivery.
Province
Progress with the implementation of the IDMS
Introductory
meeting(s)
Agreement on the
governance
principles
Sign-off on
the IDMS Comment(s)
EC Yes Yes Yes Currently being implemented
FS Yes Yes NoFOHOD not meeting / IDMS not part of the
agenda of meetings
GP Yes In process NoWorking towards the September target date
for EXCO approval
KZN Yes Yes YesFull Cabinet Support and being
implimented
LP Yes Yes Yes Currently being implemented
MP No No NoDiscussed in the previous two PICM – no
response from the province
NC No No NoDiscussed in the previous two PICM – no
response from the province
NWYes (previous
MEC)No No
Discussed in the previous two PICM – no
response from the province
WC Yes Yes Yes Currently being implemented38
IDMS Implementation
KZN-IDMS Progress
Ref. KEY ACHIEVEMENT DESCRIPTION
1 Present the KZN Infrastructure
Delivery Management System
(KZN-IDMS) to the KZN
September 2012 Cabinet
Lekgotla
KZN EXCO approved KZN-IDMS
on 22 September 2012
KZN-IDMS Steering Committee
formed
� April 2012 - The four IDIP participating department's HoDs
approved the memorandum which initiated the process for
the collective development of the KZN-IDMS
� Provincial Treasury facilitated Workshops to develop the
“KwaZulu-Natal Provincial Infrastructure Delivery
Management System [KZN-IDMS] Framework for the
Health and Education Sector”
� The four IDIP departments HoDs signed the Final KZN-
IDMS document by the 24th August 2012.
� Cabinet Lekgotla (11 September 2012) recommend KZN
EXCO adopt the KZN-IDMS
� KZN EXCO (19 September 2012) approve the KZN-IDMS
� KZN-IDMS Steering Committee formed and first meeting
held 16 November 2012
� Focus groups of the Steering Committee established to
implement components of the KZN-IDMS
39
40
KZN CABINET
COHOD
IDMS STEERING
COMMITTEE
ESID CLUSTER
1. Systems and Processes
2. Construction Procurement
3. Operations & Maintenance
5. Organisation Development & Human Resource Development
4. Institutional Arrangements
& Service Agreements
IDMS Five Focus Groups
Public Works
Health
Education
Treasury
Depts Implementing
IDMS
Public Works
Health
Education
Treasury
Depts Implementing
IDMS
IDIPTechnical
Management Committee
(TMC)
KZN-IDMS Progress
Focus Groups Key activities
1 Systems and
Processes
•Roles, Responsibilities and Accountability for project
initiation, planning, development, implementation,
commissioning and maintenance
•Planning
•System requirements
•Finance & Budgeting
•Review IT Systems e.g. WIMS; PMIS and other systems
2 Construction
Procurement
•Develop the KZN Standardised Construction Procurement
System [SCPS]
•Develop and agree on joint structures, process and
protocols / delegations for the appointment of consultants
and contractors
•Develop a KZN Constriction Procurement Policy
41
KZN-IDMS Progress
Focus Groups Key activities (to be confirmed in ToRs to be developed for each focus group)
3 Operations and
Maintenance
•Agree institutional arrangements and responsibilities for
planned and unplanned (emergency and day to day)
maintenance to suit Sector Depts and Implementing Agent
•Secure Period / Framework contracts to meet sector
department requirements
•Establish a Consultant Data base with sector specialists to
respond to short term needs for emergencies and
maintenance
4 Institutional
Arrangements
& Service Delivery
Agreements
•SDAs / Agreements
•Infrastructure Governance Structure review and
recommendations
•Execution & Accountability
5 Organisation
Development &
Human Resource
Development
•Human Resource and Organisational Development
requirements to support infrastructure capacity
•Financial implications
•Prepare recruitment and training strategies42
Thank you
43