empowerment impact assessment unit - western cape

Empowerment Impact Assessment Unit Department of Transport & Public Works, Provincial Government Western Cape

DOCUMENT CONTENTS

1. Guideline to the Reader ----------------------------------------------------------------------------------------------- 1 1.1 Purpose of the document: --------------------------------------------------------------------------------------- 1 1.2 Document flow ---------------------------------------------------------------------------------------------------- 1 1.3 Quick reference guideline ---------------------------------------------------------------------------------------- 1 1.4 Quick EmpIA process reference guideline --------------------------------------------------------------------- 2

2. Glossary of EmpIA Terms --------------------------------------------------------------------------------------------- 4 3. Introduction – Purpose & Scope of the EmpIA ------------------------------------------------------------------- 6

3.1 The EmpIA and its strategic imperatives ---------------------------------------------------------------------- 7 3.2 How does the EmpIA respond to this mandate? ------------------------------------------------------------- 7 3.3 The revised EmpIA process -------------------------------------------------------------------------------------- 7 3.4 How does the revised process differ from the initial EmpIA process? ------------------------------------- 7 3.5 The Preferential Procurement Implementation Plan (PPIPP) and the EmpIA --------------------------- 8 3.6 Broad Based Black Economic Empowerment (BBBEE) and the procurement framework ------------- 9 3.7 The EmpIA process --------------------------------------------------------------------------------------------- 10

3.7.1 Project concept ---------------------------------------------------------------------------------------------- 10 3.7.2 EmpIA briefing ----------------------------------------------------------------------------------------------- 10 3.7.3 The appointment of the EmpIA practitioner ------------------------------------------------------------- 10 3.7.4 Empowerment Impact Assessment Reporting and Implementation -------------------------------- 11 3.7.5 Empowerment Monitoring and Evaluation -------------------------------------------------------------- 12

4. Empowerment Impact Assessment: Implementation--------------------------------------------------------- 12 4.1 Introduction ------------------------------------------------------------------------------------------------------ 12 4.2 Project Identification ------------------------------------------------------------------------------------------- 15 4.3 Empowerment Information gathering ----------------------------------------------------------------------- 16

4.3.1 Socio-economic information ------------------------------------------------------------------------------- 16 4.3.2 Indicators -------------------------------------------------------------------------------------------------------17 4.3.3 Local Resource Availability --------------------------------------------------------------------------------- 24 4.3.4 Stakeholder Engagement ---------------------------------------------------------------------------------- 29 4.3.5 Exit Strategies ------------------------------------------------------------------------------------------------ 29 4.3.6 Project or Construction Phase Description--------------------------------------------------------------- 32

5. Empowerment Impact Analysis------------------------------------------------------------------------------------ 33 5.1 Determining Labour Enhanced task opportunities -------------------------------------------------------- 33 5.2 Determining opportunities for local business development -----------------------------------------------37 5.3 Determining local plant / material resources opportunities -----------------------------------------------37 5.4 Beneficiary identification & quantifying needs --------------------------------------------------------------37 5.5 Skills identification & training --------------------------------------------------------------------------------- 38

6. Setting Empowerment Impact Targets -------------------------------------------------------------------------- 39 6.1 Who are the intended beneficiaries of empowerment initiatives? -------------------------------------- 39

7. Empowerment Implementation Strategy ----------------------------------------------------------------------- 43 8. Monitoring & Evaluation -------------------------------------------------------------------------------------------- 43 9. Conclusion-------------------------------------------------------------------------------------------------------------- 44 10. Appendices ------------------------------------------------------------------------------------------------------------- 45


Document Contents (ctd.)

Working Example 1: Project Identification...................................................................................................... 15 Working Example 2: Socio-Economic Information ......................................................................................... 18 Working Example 3: Socio-economic information .......................................................................................... 21 Working Example 4: Supporting Documentation ........................................................................................... 22 Working Example 5: Determining Local Resources Availability ...................................................................... 25 Working Example 6: Local business development .......................................................................................... 26 Working Example 7: Supporting documentation ............................................................................................ 27 Working Example 8: Identification of Exit Strategies ...................................................................................... 30 Working Example 9 : Construction Phase Description .................................................................................... 32 Working Example 10: Determining labour enhanced task opportunities & skills requirements ....................... 34 Working Example 11: Labour Enhanced Task opportunities and costs ............................................................ 35 Working Example 12: Beneficiary Identification ............................................................................................. 37 Working Example 13: Project Empowerment Implementation Strategy ......................................................... 43

Table 1: EmpIA process statement ................................................................................................................. 14 Table 2: Socio-economic indicators ................................................................................................................ 17 Table 3: Local Resources Availability Guideline .............................................................................................. 24 Table 4: Local Resources Availability (ctd) ...................................................................................................... 25 Table 5: BBBEE Levels .................................................................................................................................... 68 Table 6: BBBEE Measurement Categories ...................................................................................................... 68 Table 7: BBBEE Business Categories .............................................................................................................. 69 Table 8: Procurement and BBBEE .................................................................................................................. 69

Figure 1: EmpIA process flow ........................................................................................................................... 3 Figure 2: Unsurfaced road Figure 3: Housing ............................................................................................ 23 Figure 4: Housing & Electrification ................................................................................................................. 23 Figure 5: Extract from Spatial Development Framework (Prince Albert Municipality) ..................................... 27 Figure 6: Prince Albert IDP extract with projects ............................................................................................ 28 Figure 7 : Unused Transnet building ............................................................................................................... 30 Figure 8: Unused Transnet Building ................................................................................................................ 30 Appendix 1: EmpIA Socio-Economic Information Template Form .................................................................. 46 Appendix 2: Consolidated EmpIA Targets ...................................................................................................... 48 Appendix 3: Contract Participation Goals ....................................................................................................... 51 Appendix 4: Individual Phase Targets (Site Establishment) ............................................................................ 52 Appendix 5: Individual Phase Targets (Earthworks, Demolition & Building Setout) ........................................ 53 Appendix 6: Substructure: Foundation & Surface Bed .................................................................................... 54 Appendix 7: Individual Phase Targets (Superstructure: Masonry & Wetworks) ............................................... 55 Appendix 8: Individual Phase Targets (Roofs, Ceilings & Drywalls) ................................................................. 57 Appendix 9: Individual Phase Targets (Carpentry & Joinery) ........................................................................... 58 Appendix 10: Individual Phase Targets (Finishes) ........................................................................................... 59 Appendix 11: Individual Phase Targets (Services) ........................................................................................... 60 Appendix 12: Individual Phase Targets (External Works) ................................................................................ 61 Appendix 13: Individual Phase Targets (Site handover) .................................................................................. 61 Appendix 14: EmpIA Report Protocol ............................................................................................................. 63 Appendix 15: EmpIA progress report .............................................................................................................. 64


Appendix 16: Extracts from the Guidelines for the implementation of Labour-intensive infrastructure projects under the EPWP (2005) .................................................................................................................................. 65 Appendix 17: Broad Based Black Economic Empowerment & the EmpIA ....................................................... 68

Empowerment Impact Assessment (EmpIA) Guideline Document (Revised) 2010

Empowerment Impact Assessment Unit 1 Department of Transport & Public Works, Provincial Government Western Cape

1. Guideline to the Reader

1.1 Purpose of the document:

• This document is intended to provide guidance in the development and implementation of the Empowerment Impact Assessment (EmpIA) process that is utilised by the Department of Transport and Public Works in enabling empowerment through certain construction projects.

• For Empowerment practitioners it provides a methodology for the development of meaningful EmpIA reports that will enable the Department of Transport and Public Works in its efforts to facilitate growth and empowerment

• For other stakeholders as well as practitioners it provides key foundational information regarding empowerment – in this way the document seeks to facilitate a shared and deeper understanding of empowerment, its impact and the measurement thereof.

1.2 Document flow The document is set out as follows:

• It firstly provides some key information around empowerment and its application and sets out the EmpIA process with its different phases

• The document also provides an explanation of each phase together with the reporting requirements. To assist in this process, working examples are provided together with narration.

• Practitioners are also provided with certain templates that will assist them in the completion of reports. The templates do not replace the reports; however they are meant to facilitate a more meaningful reporting process. Proper completion of the forms will require the practitioner to engage in a meaningful research process, including actual site visits.

1.3 Quick reference guideline For information on specific terms used in the document go to the Glossary to find the definition needed

For information on the EmpIA process flow go to Page 2

For more information on Socio-economic indicators go to Page 15

For more information on Empowerment targets go to Page 38


Empowerment Impact Assessment Unit 2 Department of Transport & Public Works, Provincial Government Western Cape

1.4 Quick EmpIA process reference guideline Process phase

Description Notes

1 Project selection & briefing A specific project is deemed to be suitable for empowerment purposes. An in-house EmpIA briefing is held to educate all internal stakeholders

2 EmpIA practitioner appointment An EmpIA practitioner is appointed to collect empowerment information and to recommend empowerment targets

3. Empowerment information gathering

The practitioner gathers information on socio-economic factors that will impact on or be impacted by the project.

The practitioner also gathers quantitative information concerning:

• Opportunities for local labour usage

• Local plant and material resources utilisation

• Local supplier development

4. EmpIA report submission The report is submitted with recommended targets for empowerment

5. Tender documentation Targets are incorporated into the tender documentation

6. Project implementation The contractor is appointed and the project is implemented. Monitoring of the achievement of EmpIA targets occurs

See the process flow as illustrated below:


3

Figure 1: EmpIA process flow


Empowerment Impact Assessment Unit 4 Department of Transport & Public Works, Provincial Government, Western Cape

2. Glossary of EmpIA Terms Term Definition

Affirmable Business Enterprise (ABE)

A business that meets the criteria for empowerment and is hence capable of receiving the benefits flowing from empowerment

Broad Based Black Economic Empowerment

The process designed to benefit Black businesses and persons through various methods including an increase in Black ownership, targeted procurement and investment in Black owned enterprises, human resources and skills development and the achievement of employment equity

Community stakeholders Individuals, bodies or organisations that have an interest in the proposed project and who accordingly need to be consulted.

Contract Participation Goal The final target relating to local labour, local plant and material resources and training that is converted to a monetary figure expressed as a percentage of total labour or project cost

Cost analysis An evaluation of the impact that labour intensive construction techniques will have on overall project costs

Demographic survey The process that examines the community in a comprehensive manner in order to identify the key issues and needs of the targeted community

Designated groups Refers to those groups of persons who receive preference in terms of utilisation on the project. These include Black persons, disabled persons and women located in the target community

EmpIA briefing An awareness-raising session to introduce the project team to empowerment concepts

EmpIA practitioner The practitioner appointed to evaluate and guideline the establishment of empowerment targets. This could either be an external practitioner or an internal body or person.

Empowerment Impact Analysis The phase undertaken prior to implementation where research findings are collated and documented

Empowerment Impact Assessment

The overall process of measuring and evaluating the extent to which a proposed project is able to impact on the well-being of a designated community

Empowerment implementation Refers to the process of applying empowerment targets to the project Empowerment objectives The broad strategic objectives to which the project responds Empowerment strategy The method by which empowerment targets are to be achieved

Empowerment Targets Targets that are set following the analysis in order to determine the extent to which parts of the project will be allocated to sourcing local labour, local enterprises and local resources

Enterprise A firm or person conducting a trade, business or profession for the purposes of monetary gain

Enterprise development The development of Black owned enterprises by other enterprises through strategies such as investment, skills development and mentoring

Exempt Micro Enterprise (EME) A business that within the BBBEE frame work has a turnover of less than R2 million per year

Exit strategies Refers to the strategies that will enable project beneficiaries to gain access to long-term employment following participation on the project

Final design The final project design incorporating the agreed-upon empowerment targets

Generic Enterprise A business with an annual turnover in excess of R35 million

Labour costs Refers to the overall costs allocated to employment and training of project workers

Labour Intensive Construction A construction method that is able to utilise human labour as opposed to the use of machinery; thereby creating work opportunities



Learnership A structured learning programme which includes a theoretical and practical component and which leads to the achievement of a recognised qualification

Liaison The act of establishing and maintaining contact with appropriate stakeholders

Local enterprises Refers to those business enterprises that are able to supply certain required services or supplies to the project

Local Labour Refers to persons from the community, town or region who receive preference over others in order to participate as work beneficiaries

Local Resources Refers to the availability of plant and material resources that can be used for the duration of the project

Locally appropriate technology The act of using existing facilities and materials to provide project resources as opposed to sourcing them from elsewhere

Mentorship The process whereby persons gain experience and knowledge through working with more experienced, senior persons in the organisation

Monitoring and Evaluation The process of assessing the degree of empowerment during and after completion of the project

Plant and material Refers to machinery and construction materials required for the project

Preferential Procurement

Acquisition of goods and services using a framework that provides for the allocation of points to certain categories of persons or entities so that they may receive preferential treatment in the awarding of contracts; thereby bringing these persons or entities into the economic mainstream

Preliminary design A draft design for the construction of the proposed facility

Principal contractor The entity or firm to whom the overall project contract has been awarded following the due tender process

Project concept The initial response to an identified need that will frame the project

Qualifying Small Enterprise A business that has a turnover of between R2 million and R35 million per year

Research The process designed to develop a comprehensive background of the context in which the project will occur

Scope of works The envisaged work tasks that will be required in order to deliver the required end product

Small, medium and micro enterprises (smme's)

Those business that fall into the definition as expressed in the Small Business Act. However, this document refers to businesses as defined in terms of the BBBEE framework

Sub-contractor An entity that is appointed by the principal contractor in order to complete a specified task on the overall project

Tender The process of advertising the project in order to obtain contract bids

Training Refers to the training that is required to ensure the required competence for participation on the project

Unbundling A strategy in terms of which the contract is broken up into smaller components in order to provide greater economic benefit to a wider range of beneficiaries



3. Introduction – Purpose & Scope of the EmpIA

The initial Empowerment Impact Assessment process was initiated by the Branch Community based Public Works Programme in 2002. The process was subsequently formalized and led to the publication of the Empowerment Impact Assessment Guideline Document in 2004. The initial document provided the context for the development of the EmpIA as an extension of the Preferential Procurement Plan and also set out the process to be followed when developing the EmpIA.

The purpose of the Empowerment Impact Assessment (EmpIA), as defined by the initial Empowerment Impact Assessment Guideline, is to provide a mechanism for measuring the empowerment impact of specific projects with a value in excess of R2 million. The Guideline also emphasises the role of the EmpIA as a means to inform the design and construction process of these projects. The purpose of the assessment is therefore to provide both the means to measure potential empowerment as well as a stimulus to achieve developmental objectives.

The initial Guideline emphasises that while there is no single institutional model for empowerment there are certain aspects common to all successful empowerment initiatives - these being:

• The development of communal project ownership via inclusion, participation and information-sharing thus enhancing accountability

• The development of local organisational capacity and • The provision of opportunities aimed at facilitating meaningful economic empowerment

This document does not deviate from these key aspects – information and transparency that enhances participation remain critical. Participation and accountability continue to ensure that beneficiaries have a stake in developments that affect them directly. As stated previously, empowerment can be seen as a multi-dimensional social process that helps people gain control over their own lives. Within a South African context, empowerment also has specific reference to a process where specifically targeted individuals, who previously were discriminated against as a result of past practices and legislation, gain access to opportunities aimed at enhancing economic development. The revised process takes into account this focus on economic empowerment through addressing the framework of the Broad Based Black Economic Empowerment Act and its impact on Preferential Procurement. It also emphasises the notion that empowerment is a process rather than a once-off event- The EmpIA is able to facilitate and measure aspects of empowerment at a certain point; however the longer-term impact of interventions must also be considered. For this reason, the revised document highlights the need for the EmpIA process to underscore those aspects of empowerment that could lead to longer-term sustainability beyond the project life-cycle.



3.1 The EmpIA and its strategic imperatives It is critical to note that the EmpIA plays a significant role in the achievement and maintenance of the mission statement of the Department of Transport and Public which is in turn, aligned with the Provincial government’s mission. The Department’s mission is as follows:

3.2 How does the EmpIA respond to this mandate? a) It concerns itself with the impact that infrastructure projects has on specific communities – projects

have to be “appropriate” to meet specific community needs. The EmpIA is able to assess the degree of appropriateness

b) It concerns itself with providing a platform for sustainable economic development by implementing skills development targets for community participants so that there is empowerment both in relation to immediate skills requirements that will enhance service delivery that could assist in enhancing further employment possibilities.

c) It concerns itself with the development of growth and economic opportunity through targeting the use of local material and plant suppliers as well as other appropriate enterprises that are able to play a role in the delivery of the required infrastructure. The Department’s Preferential Procurement Strategy and Implementation Plan play a critical role in facilitating the entry of such targeted enterprises into economic activity that will facilitate longer-term sustainability.

3.3 The revised EmpIA process In 2009, the Department of Transport and Public Works commissioned an assessment of the EmpIA to determine the extent to which the mechanism was fulfilling its objectives. Although the EmpIA had become an established process, key questions around the extent to which the process was able to be mainstreamed into operations as well as around the quality of EmpIA reporting had arisen. Detailed information on the research around the EmpIA can be found in the document ‘Towards a redesign of the EmpIA’. For the purposes of this document, which sets out the methodology for implementing the practice of empowerment assessment, it is important to note that one of the key findings related to the need to broaden the scope of empowerment to include socio-economic aspects. This finding is given voice through an increased emphasis on deeper community engagement and research.

3.4 How does the revised process differ from the initial EmpIA process? While the EmpIA is an established mechanism in the Department, the research process highlighted certain key areas where possible improvement could occur. These improvements related both to the process flow as well as the substance of the EmpIA.

In terms of process flow, the initial document stipulated that the EmpIA is meant to inform the design and construction process to maximise the extent of empowerment. This means that empowerment concerns should be considered upfront in the initial planning and conception stages of any applicable project. The revised EmpIA makes provision for this by stipulating that an EmpIA briefing be held at the initial stages of project concept with an intended client Department so that the EmpIA and empowerment are in the forefront of planning.

“The Department of Transport and Public Works develops and maintains appropriate infrastructure and related services for sustainable economic development which generates growth and facilitates empowerment and opportunity”



In relation to content, it was noted that there needed to be greater emphasis expanding the understanding of empowerment beyond the achievement and measurement of specific targets. The targets remain critical because they are clear yardsticks for an initial assessment of empowerment – however there needs to be a greater examination of the intended and actual impact that the targets bring about. This means that there is more emphasis on deeper research that will ensure the setting of appropriate and meaningful targets.

Following on from this, it should be noted that in order for the EmpIA to be fully aligned with the Department’s commitment to sustainability, there needs to an increased emphasis on the impact of projects post their construction. While this lies outside the immediate scope of the EmpIA, the revised process makes provision for this by requiring practitioners to assess the extent to which any relevant project can provide exit strategies that would enhance the possibilities of employment for beneficiaries beyond the project

3.5 The Preferential Procurement Implementation Plan (PPIPP) and the EmpIA The Preferential Procurement Policy Framework Act (PPPFA) was promulgated in 2000 to provide for the Constitutional requirement that the state must procure goods and services using a system that is “fair, equitable and transparent, competitive and cost-effective”1

Preferential procurement refers to the action or principle of using state procurement as the means to address socio-economic imbalances that have been caused by previous discriminatory practices.2

In order to give effect to Constitutional imperatives, each organ of state must determine their own preferential procurement policy in accordance with the provisions of the PPFA. Accordingly, the provincial PPP of 2004 provides that procurement can be used to address economic imbalances through providing opportunities for historically disadvantaged individuals and small, medium and micro-enterprises.

The PPIP prescribes the mechanisms that will enable the participation of targeted groups in service provision and in so doing creates opportunities for empowerment via, inter alia, the creation of job opportunities, support for small enterprise development and income generating opportunities. Specific objectives of the PPIP that are relevant in this regard are:

• The creation of new jobs - this is achieved particularly through the strategy of utilising local resources and through maximising labour input where possible in capital projects.

• The promotion of rurally-based enterprises. • A target of 40% participation by previously disadvantaged individuals in the carrying out of

Departmental contracts. This strategy also complements the Department’s objective of encouraging enterprise and entrepreneur development.

• The growth in size and capacity of participating business enterprises owned by historically disadvantaged individuals.

• The empowerment of the work force by providing the required capacity building and through standardising the level of skill and knowledge of workers.

The EmpIA is therefore the mechanism that provides for the measurement of the extent to which these objectives are achieved via the implementation of various construction and maintenance

1 The Constitution of the Republic of South Africa, section 217 (1-3) 2 See CIDB Best Practice Guideline B1: Formulating and Implementing preferential procurement policies @ 4



projects with a value in excess of R2 million3. The PPPIP aligns itself fully with the EmpIA in stating that:

• Project specifications will provide minimum targets for employment of local labour and for

training of labour and ABE’s (affirmable business enterprises). • Design specifications and contract documentation will be such to maximise the impact on

empowerment. • Prior to the finalisation of specifications all tenders above R500 000.00 must be subject to an

EMPOWERMENT IMPACT ASSESSMENT. 4

3.6 Broad Based Black Economic Empowerment (BBBEE) and the procurement framework Subsequent to the development of the initial EmpIA Guideline BBBEE has begun to play an increasingly important role as a transformation mechanism. Preferential Procurement is one of the key aspects of BBBEE and in fact is the driver of the BBBEE framework. Obtaining BBBEE certificates that set out the extent of BBBEE compliance is essential for the award of certain government tenders and other regulatory processes such as the issuing of certain licences. Certification is obtained through an assessment of overall BBBEE compliance5. (See Appendix 14 for an explanation of procurement recognition levels and for an explanation of the elements of BBBEE)

In 2009 government moved to align the frameworks through the introduction of revised Procurement Regulations that aimed to align the different frameworks.6 Essentially the revised regulations call for the use of BBBEE ratings as a criterion in the award of state contracts. An important factor to note is that the BBBEE framework does not make use of the former categorisation of small, medium and micro-enterprises – it rather refers to exempt micro-enterprises (eme), qualifying small enterprises (qse) and generic enterprises.7 However, this alignment has not

3 Although the PPPIP refers to a threshold value of R500 000, in practice this amount is R2 million 4 See Sections 7.1.2 – 7.1.4 5 Overall BBBEE compliance is measured through an assessment of Ownership, Management Control, Employment Equity compliance, Skills Development compliance, Preferential Procurement, Enterprise development and Socio-Economic Development. Each of these factors has a weighting and the enterprise is measured in terms of these weightings. 6 Draft regulations were published in September 2009 for comment – to date there has been no word on the actual implementation of the Regulations 7 EME’s are defined as having an annual turnover of under R2 million, QSE’s have a turnover of between R5 and R35 million and Generics have a turnover in excess of R35 million.

Therefore, EmpIA is a tool consisting of quantitative and qualitative measures that enable the empowerment impact of specific projects to be evaluated. Quantitatively it provides measurable yardsticks that will enable the assessment and evaluation of project empowerment deliverables. It is also able to provide the means for a qualitative assessment of the impact that the project in question has on the quality of life of individuals or communities. Consequently the revised process places greater emphasis on meaningful research that can result in the generation of socio-economic indicators that are able to provide empowerment yardsticks.

Prior to project commencement, the EmpIA process informs the design and construction process in such a manner so as to ensure that empowerment objectives are borne in mind at the design and construction phases. The revised process specifically calls for the raising of awareness amongst stakeholders at the inception phase through an EmpIA briefing. Similarly, during and post project implementation, the EmpIA process serves as a tool to record actual empowerment impact in respect of HDI economic empowerment.



yet been completed. It is noted however that the EmpIA, if required to do so, is able to play a role in bridging the gap between the BBBEE framework and the procurement regulations and can therefore assist in better coordination between the two. As part of their research, EmpIA practitioners are required to not only assess potential suppliers in terms of their capacity but also in relation to their BBBEE status; hence this document makes use of the terms and definitions as expressed in the BBBEE framework. The EmpIA can therefore assist decision-makers in the awarding of contracts where it is necessary for the BBBEE status of potential suppliers to be taken into account.

3.7 The EmpIA process

3.7.1 Project concept Within the framework of government, not all Departments necessarily build or maintain their own infrastructure. For this reason the Department of Transport may take on work required by external ‘Client Departments’ and then acts as the ‘Implementing Department’ on behalf of those clients. The Department of Transport and Public Works also initiates public infrastructure projects, such as roadworks, independently. Within the Department of Transport and Public works there is an Empowerment Impact Assessment Unit, located within the Directorate Construction Industry Innovation and Empowerment. This Unit is mandated to carry out Empowerment Impact Assessments, either on DTPWP projects or on those projects initiated by external departments and on whose behalf the DTPWP acts as implementing agents.

The Project Concept Phase in the process refers to the point at which a specific project is identified in order to respond to a specific need – for example, the building of a road or the construction of a clinic. For a full listing of the types of projects to which an EmpIA may apply see Appendix 6)

The Implementing Department (for example the Department of Transport and Public Works) must then appoint a Project Design Team. It is at this point that the EmpIA requires consideration since it is meant to inform the design process in order to maximise possible empowerment opportunities. It is a requirement that an EmpIA be carried out on projects with a value in excess of R2 million.

3.7.2 EmpIA briefing This phase represents a key departure from the initial EmpIA process. Its purpose is to ensure that empowerment considerations are taken into account upfront. It is an in-house process that is designed to provide the project team responsible for the overall implementation of the project with an overview of empowerment principles so that the project design may take these principles into account.

3.7.3 The appointment of the EmpIA practitioner The role of the practitioner is to conduct the EmpIA and to develop recommended empowerment targets taking project specifications into account. The Practitioner must therefore have good knowledge and experience of the empowerment framework insofar as it applies to the field of construction and related fields. The practitioner is required to conduct an EmpIA generally within a period of 1 month following appointment. The Practitioner must conduct the EmpIA once the Preliminary project design is completed. The EmpIA report is based on in-depth research carried out at the site of the intended project – it involves extensive liaison and investigation undertaken in conjunction with the



intended beneficiary community. Empowerment targets are developed based on the reporting undertaken by the Practitioner.

3.7.4 Empowerment Impact Assessment Reporting and Implementation The Practitioner must take the following factors inter alia into account when compiling the EmpIA: • The nature of empowerment opportunities • The capacity of local resources in relation to project requirements. This includes an

assessment of any locally available raw materials that can be used in project implementation.

• Any locally appropriate technologies that can be used in the achievement of project aims

• The appropriate training • The appropriate methodology to achieve required empowerment targets • Appropriate socio-economic factors that impact on the project and that are impacted

by the project • Opportunities for meaningful exit strategies that could exist within the beneficiary

community so that beneficiaries are able to take advantage of any opportunities for longer-term employment following the completion of the project.

Based on the report findings, the EmpIA practitioner will be able to set empowerment targets in relation to the utilisation of local labour and local suppliers as well as in relation to appropriate training. Final empowerment targets must then be set after consultation between the practitioner, Empowerment Manager8, Project Manager and Design practitioner. The practitioner must note that the implementation strategy not only sets out the targets but must also provide a Method Statement stipulating the methodology whereby the targets are to be achieved.

Targets are incorporated into the final project design and are transferred into the Tender document. Targets in relation to labour, suppliers and training are generally reduced to a set figure that must form part of the final tender value. To facilitate this process, the project team must provide an estimate of the labour required and attach this to the project documentation.

8 That is, the Manager of the EmpIA Unit



3.7.5 Empowerment Monitoring and Evaluation Monitoring and evaluation are critical to provide feedback to the appropriate stakeholders, particularly the beneficiary community in which the project is occurring. The purpose of the M & E phase is to assess the extent to which the Contract Participation goals have been achieved. During the construction phase, the EmpIA practitioner should submit a monthly report that reports on the empowerment aspects of the project. As has been previously suggested, the empowerment process is far more holistic than the achievement of stipulated targets. Although this is not part of the practitioner’s brief, it will also be necessary to provide a post-project assessment to determine the extent to which the project has made an impact on the well-being of the beneficiary community. In this regard it should be noted that the Department has initiated its own Monitoring and Evaluation Unit. Empowerment is a critical outcome for the Department and it should be noted that the unit could play a vital role in this regard. In this event, the unit should be fully aware of any quantitative indicators that have been set as well as the less tangible qualitative indicators that require assessment.

4. Empowerment Impact Assessment: Implementation

4.1 Introduction This part of the document describes the actual implementation of the EmpIA process. It is intended to be used as a guideline by EmpIA practitioners and any other person who needs an understanding of the process. The described process builds on past experience and also takes into account recommendations aimed at bringing about improvement.

NOTE Working examples and templates are included in this part of the document to assist in understanding the application of the EmpIA process. The examples sometimes use specific documents or forms and in other instances provide certain guidelines. The examples are meant to be used as starting points – in certain instances practitioners must add information as may be required. Particularly useful or significant information is marked by a

Practitioners must note the following: The process as described is intended as a guideline – each EmpIA will be unique because each project and each community, in which a project occurs, is unique. Practitioners must therefore ensure that they do not slavishly follow a “template” approach. In-depth research and community interaction are vital in ensuring a meaningful EmpIA process and eventual Report.

It is essential that the suggested process is followed in a logical and systematic manner as each phase forms the foundation for the next. The relevant phases are: • Project concept and identification • Empowerment Information gathering • Empowerment Impact Analysis • Empowerment Impact Target setting • Empowerment Implementation strategy



The practitioner9 should note that information gathering and analysis are critical stages – appropriate targets cannot be set without the proper foundation. The practitioner must therefore at all times link the information acquired to the central issue of empowerment. Key questions to be asked are therefore: • How does the information impact the empowerment framework? • How can the information be used in the development of the appropriate empowerment targets?

The EmpIA practitioner should provide well-reasoned motivation for any statement that is made in the report – simple statement of facts are not always helpful and proper justifications are able to provide clearer guidelines in terms of implementation. The practitioner should also note that rather than simply omitting information where an aspect is considered to be non-applicable, the reason for the omission of an aspect should be clarified. For example, if no appropriate local suppliers are available, then this should be stipulated with possible clarification around the reason for non-availability rather than omitting this aspect completely. Without such explanation, it will not be certain whether this aspect has been addressed as part of the EmpIA.

For ease of reference, the following table sets out the different phases of the EmpIA process with a description of its purpose and the proposed methodology to achieve the objectives of each phase.

9 The practitioner may be an external consultant or may be someone from an internal unit such as a Monitoring and Evaluation Unit. Anyone who is involved with the process must however possess some knowledge of empowerment and its quantitative and qualitative aspects.



Table 1: EmpIA process statement

Department of Transport & Public Works

Construction Industry Innovation & Empowerment (CIIE) - Empowerment Impact Assessment

Document: EmpIA process statement

Purpose: To set out the EmpIA phases and stipulate the appropriate documentation and proposed methods of completion

Phase Category Documentation Purpose Method

Concept

EmpIA briefing EmpIA presentation

high level overview of the EmpIA to provide insight into empowerment & its purpose.

Presentation by EmpIA unit to project team

Analysis

Empowerment research

Empowerment objectives alignment

Ensure alignment with strategic objectives

High level document research (current IDP's & other resources

Community liaison form

Confirms contact with beneficiaries & provides for background info.

Questionnaire for Identification of critical issues

Information Analysis

Provides project context; identifies empowerment needs

On site visit

Identifies skills levels Research skills / educational levels

Provides assessment of local resource capacity (labour, plant & materials)

Local supplier databases, on site assessment

Identifies potential for use of locally appropriate technology

On site visit

Assesses extent of supplier capacity Local supplier databases, on site assessment

Identifies potential for BBEEE business development

Local supplier databases, on site assessment

Identifies potential exit strategy opportunities

Research future initiatives

Project Analysis Identifies construction tasks & activities

Assess project schedule and statement of works

Categorises skills requirements to complete tasks

Assess project schedule and statement of works

Identifies L.I.C opportunities Alignment with CIDB best practice

Implementation EmpIA Targets

Sets targets for local labour work opportunities, local supplier development & training

Ring-fence appropriate tasks & determine costing

Monitoring & Evaluation

Assess achievement of set targets On-site assessment

Post-project survey - extent of well-being, degree of employment, extent of business development



4.2 Project Identification Project Identification refers to the identification of projects which will meet the Department’s mandate of providing appropriate infrastructure while also serving empowerment objectives. Although the EmpIA practitioner does not identify the appropriate project, it is nonetheless important for the practitioner to assess the following aspects when first encountering the project:

• The extent of Strategic Alignment with Departmental mandates o Will the project provide appropriate infrastructure that promotes sustainable economic

development? o Will the project generate economic growth and facilitate empowerment and opportunity?

Generally, the Department will only initiate project that are aligned with its strategic needs. The practitioner should nevertheless be able to identify the appropriate strategic goals and objectives (as outlined in the relevant Annual Performance Plan) to which the project is responding.

• The extent of compliance with thresholds

o Does the project exceed a value of R2 million? o Does the project fall into the category of projects that is suitable for an EmpIA?

• The expected empowerment impact of the project on the beneficiary community o To which need does the project respond? o How will the project meet or remedy the identified needs? o What economic benefits will result for the community or individuals?

Upon identification of the project, and prior to the final design of the project, the Practitioner is appointed to conduct the EmpIA.

Working Example 1: Project Identification Project identification is the responsibility of the relevant Department. Its purpose is to identify those projects that will assist in the meeting of Departmental objectives.

Project Identified: Ambulance Station (Leeu Gamka – Central Karoo)

The Department has identified the need to build an Ambulance Station in the town of Leeu Gamka in the Central Karoo. The current ambulance station provides a critical service in the surrounding area. The area has achieved some notoriety in recent times because of the high incidence of road accidents and resulting fatalities. As a result, the current Ambulance Station, situated in the town, provides a vital and much-needed emergency medical service. It is the only such facility in the immediate region and has to provide services across a wide radius, occasionally even stretching into the Outeniqua area. The current facility is housed in an unused part of the local school – however, the premises are unsuitable for the type of work that needs to be carried out. A major shortcoming is the lack of on-site training facilities. The proposed ambulance station will therefore fulfil a vital need in the town and the surrounding area.

The value of the project will exceed R2 million and the project can be utilised to achieve empowerment objectives. Consequently the EmpIA practitioner will need to determine how best those empowerment objectives can be achieved in the project’s implementation.



Note to practitioners – the project description should provide a brief overview of the project’s purpose. It is important to identify how the project is aligned with strategic mandates and how the implementation will meet the identified need/s.

4.3 Empowerment Information gathering This phase of the process serves two critical needs:

• It involves the collection of relevant data relating to the beneficiary community in order to facilitate better decision-making around the setting and achievement of EmpIA objectives

• It creates a platform for community participation that allows for greater transparency and accountability in relation to the project.

Accordingly, the quality of the information collected, the way in which it is collected and the way in which it is presented are critical. As previously discussed, the revised document places great emphasis on the gathering of appropriate socio-economic information. The information must be collected with a view to explaining how and why the information will impact on the empowerment project. For example, if a population breakdown is presented it is important to explain its relevance to the empowerment process.

4.3.1 Socio-economic information The gathering of appropriate socio-economic information is vital if empowerment is meant to be more than the achievement of numerical targets. The purpose of gathering socio-economic information is to provide a framework that will allow some measurement of the extent to which a project can have an empowering effect on the overall quality of life of individuals or communities. The EmpIA practitioner should focus on the following aspects in gathering the information:

• What are the noteworthy socio-economic concerns in the area? • How will the proposed intervention have an impact on the identified concerns and what are the

indicators that will enable measurement of impact?

Note to Practitioners

Practitioners must note that the exercise cannot simply be a desktop based research exercise. It is essential that the EmpIA practitioner actually visit the envisaged project site to gather proper on site evidence. Apart from proper information gathering, this will also enable an engagement with the community or beneficiaries and will enhance the participatory aspect of the process. Research resources such as Integrated Development Plans, Annual Performance Plans and other relevant documentary sources must however be accessed. In engaging with the local community it is highly recommended that the practitioner contact the relevant local authority – they are able to provide access to resources such as Community Development Workers and community databases. The key element of developing the socio-economic context is to assess the extent to which certain factors may or may not impact on the opportunities that are envisaged as a result of the empowerment intervention.



4.3.2 Indicators Indicators are those aspects of information that can be used to provide base measurements of quality of life and possible empowerment impact. The following table presents a list of possible indicators that can be used to guideline the information gathering process.

Table 2: Socio-economic indicators

Note to practitioners: This list is not necessarily all-inclusive – there may well be other factors that are not immediately known or accessible. For example, in a rural area a project’s implementation could be affected by seasonal employment as a result of activities such as harvesting. This type of information must be included in the overview, but would not necessarily be available immediately.

The following example sets out demographic information and provides guidelines concerning the analysis of such information. (The demographic information relates to the town of Leeu Gamka in the Central Karoo. It is the site of a proposed Ambulance Station that will serve the immediate community and the surrounding region.)10 The information seeks to provide contextual information that will add value to the EmpIA process, particularly in relation to the setting of empowerment objectives.

10 The information was obtained via the Prince Albert Municipality – the assistance of the Council and in particular, Pedro Oliphant (IDP Practitioner), Viola Petoors (Community Development Worker) and the staff of the Leeu Gamka Ambulance Station is gratefully acknowledged.

• Extent of literacy and numeracy • The demographic profile (race, age, gender) • Extent of health facilities and ability to access the facilities • Extent of critical health-related issues • Extent of educational facilities and ability to access the facilities • Extent of community representation and ability to access the representatives • Existence of practices or customs that could hinder empowerment • Extent to which households have access to water, electricity and sanitation • Extent of land / home ownership • Extent of income levels • Level of employment • Existence of the nearest market place / business district and the ability to access it • Extent of community safety and security • Extent of recreational / community facilities • Extent of community organisations



Working Example 2: Socio-Economic Information The purpose of this example is to demonstrate to practitioners certain aspects relating to the gathering of socio-economic information. A methodology and proposed template for information gathering will also be presented. Practitioners are reminded of the critical importance of actual on-site visits and of connecting with appropriate local authorities. The example relates to the town of Leeu Gamka in the Central Karoo.

The following template should be used in the gathering of information. Once completed it forms part of the EmpIA report that is submitted to the Empowerment Manager. The information contained in the template forms the basis of the report. See Working Example 3 for an example of how the information is reproduced in a narrative format.



Form 1: Socio-Economic Information


Purpose of the form: To provide a framework for gathering information and research

Project Name Leeu Gamka Ambulance Station

Client Department The department that has initiated the project

Health

Implementing Department

The department that is responsible for implementing the project

Dept. Transport & Public Works

Project Location Where is the project Leeu Gamka, Central Karoo

Project Description Provide a brief note on the project & its purpose

The station is being built to provide EMS facilities to replace the current ambulance station that is currently housed in a temporary establishment

Phase 1: Information Gathering Purpose: to gather sufficient information to provide the foundation for the development of empowerment targets

1a) Indicate the sources of information accessed

IDP

Databases Provincial documents

Other

1b) Indicate the extent of community liaison

Contact Details Summary of discussion

Local authority Prince Albert Municipality

The council was informed of the role of the EmpIA and EPWP. They directed the practitioners to the CDW

Local Leaders

Community Development Worker

The CDW accompanied the practitioners on a visit around the community. Up to date demographic information was provided.



2. Please indicate information that addresses the following aspects

Provide brief notes with references

Population breakdown

What is the race, gender and disability profile of the community?

Predominantly Coloured

Languages spoken

What languages are spoken in the community?

English, Afrikaans

Infrastructure Types of road (Indicate condition & state of completion)

Access road tarred, minor roads gravelled

Types of housing (what types of housing are present - informal / formal?

Mostly formal, some backyard dwellings

Water /Sanitation Sanitation is present, future upgrades planned

Community facilities

What facilities exist for community use? (Halls, library etc). Unused hostel outside the town close to N2.

Community hall & library, medical clinic

Educational / Training institutions

List the institutions and extent of attendance and accreditation

1 Junior school, not fully used

Recreational facilities

Limited

4) Please indicate the extent of businesses operating in the area

No. sector Provide brief details

Informal (shebeens, cafes) Businesses are largely informal- “spaza” shops & shebeens

Formal

1 Financial Nearest bank is in Prince Albert

Retail 1 supermarket

Construction Unknown in community, brick-making business in Laingsburg

Engineering

Agriculture

Other

5) Please indicate the extent of construction-related businesses in the area

Type Business/ Trader name & contact details

Formally registered? Category BBBEE Certified

Building / masonry

Yes No Sole trader

CC Pty Yes No

Plumbing CIDB NHBRC Painting

Flooring

Carpentry

Roofing

Fencing

Electrical

Practitioner Name

Signature Date



Following completion of the form, the information can then be collated in narrative form as follows:

Working Example 3: Socio-economic information

1) Background Information

1.1 Geographical location (Provide background information concerning the geographical location of the town as well as noticeable features)

The town of Leeu Gamka lies on the edge of the N1 route, between Laingsburg 125km to the south, and Beaufort West 75km to the north, with Prince Albert lying 85km to its east. Although the N1 is a national road, Leeu Gamka as a town does not necessarily benefit from it, remaining isolated and predominantly ‘out of sight’. The relative isolation of Leeu Gamka is manifested in the absence of any visible business activity or business centre. This is problematic for residents in that necessary living items have to be purchased from surrounding towns, which are some distance away – hence additional transport costs are incurred and items become more expensive. Although the nearby town of Prince Albert has significant tourism infrastructure this does not spill over into Lee u Gamka. The town is located in an arid area with no visible natural water sources.

1.2 Demographic information

(Provide an overview of relevant demographic information with an indication of the implications for any empowerment initiatives) The demographic profile of the town (as per a Municipal Survey undertaken in December 2008) indicates that the majority of the town’s population (85%) is 24 or younger. This is attributed to the fact that most persons seek employment elsewhere as the employment opportunities in the town are virtually non-existent and are limited in the surrounding region. The vast majority of persons in the town are Coloured. Potential beneficiaries are therefore likely to be drawn from the grouping of designated persons. The youthful profile of the town also indicates that there is likely to be a shortage of skills and experience.

1.3 Infrastructure information (Provide details of the town or community’s infrastructure – existing or ongoing infrastructure could be useful in providing indicators concerning possible future interventions. Photographs are also valuable sources of information)

In general, infrastructure provided is sufficient to meet the needs of the towns’ inhabitants. The majority of dwellings are solid construction dwellings which are electrified. There are certain shortfalls in terms of sanitation and stormwater provision and there is a housing backlog in relation to 25% of the towns’ residents. Access roads into the town are tarred but the majority of the towns’ roads are gravel surfaced with the majority of pavements unpaved.

In terms of future planning it is important to note that provision has been made in terms of the municipality’s future planning to address infrastructural shortcomings – The Prince Albert IDP refers to the upgrading of the bulk sanitation infrastructure as well as the provision infrastructure for projected housing units. Another notable item is the planned rehabilitation of primary access roads and the upgrading of roads and sidewalks. This means that there are possible opportunities for future work creation.

Note the link between skills & potential impact on the project

Note the reference to potential future work opportunities.



Working Example 4: Supporting Documentation Supporting information may be drawn from various resources – at all times it is important to ensure that information is as up to date as possible. Interviews and surveys are able to form a valuable resource. The following questionnaire sets out information for the town of Leeu Gamka. The questionnaire may be adapted for other towns or regions. Photographs are also provided.

Form 2: Sample Demographic Survey Questionnaire 1. Population of the town in numbers

2123 2. Unemployment figures

75% 3. Number of people who live in Leeu-Gamka, but work elsewhere.

+/- 104 4. Where do those who are employed outside the town work?

Farms (seasonal workers) 5. What kind of employment do people find in Leeu-Gamka? (Examples are government employment, farming,

trade) Farm work

6. What % of the people have access to: Water from a tap inside

the house Water from a tap in the yard

Water from a communal tap

Water from a source more than 200 metres from the house

15% 85% 7. What % of the people have electricity in the house?

100% 8. What % of the people have the following access to sanitary facilities?

Flush Toilet Chemical Toilet Pit latrine Bucket latrine No access 95% 5%

9. What % of people live in the following types of housing Brick dwelling

75% House made of traditional materials

Informal dwelling in the backyard of another house 25%

Informal dwelling NOT in the backyard of another house

Other types (please specify)

10. Are the following state services available in Leeu-Gamka? Health Education Police Postal Yes Yes Yes Yes, agency.

11. If health services are available, what kind are they (examples are a clinic, mobile clinic, health visitors) Clinic.

12. Does the population of the town have any particular and significant health problems? Please state what. TB

13. If schooling is not available, where do children go to school, and what transport is available for them? N/A

14. What is the literacy rate in Leeu-Gamka? 65%

15. Are there recreational facilities in the town? If “yes”, what kind are they? Yes, sports field.

16. Do a significant number of the people in the town fall into the age group 24 and younger? 1806

17. How many of the people in the town are dependent on state grants? 45%

18. What are the major social ills in the town? Examples are alcohol or drug abuse, domestic violence, child neglect, commercial sex. Alcohol & Drug Abuse

19. How many shebeens are there in the town? 47

20. What religious denominations look after the spiritual needs of the town? AGS, Methodist, Anglican, Lutheran, etc.



21. What % does Leeu-Gamka contribute to the revenue of the Prince Albert Local Municipality? 5%

22. What are the major problems facing the residents of Leeu-Gamka? Unemployment. ANY FURTHER INFORMATION THAT YOU MAY CARE TO GIVE WOULD BE WELCOME. Contact details of Key Person: Viola Petoors (CDW Leeu-Gamka) Phone no: 023 5212 135 Fax no: 023 5212 135

Remarks: The identification of certain key issues such the prevalence of certain illnesses (TB) and a reduced literacy rate means that training could play a role in educating beneficiaries to begin addressing the situation. This would have a longer-term effect in terms of empowerment.

Supporting Information (ctd.) Photographs

Figure 2: Unsurfaced road Figure 3: Housing

Figure 4: Housing & Electrification

Note the reference to the local CDW as an information resource



4.3.3 Local Resource Availability Information concerning local resources as well as the presence or lack of economic opportunities is crucial in terms of determining empowerment targets. Accurate information is essential to ensure that there is development in relation to job creation, skills development and community development. As previously indicated it is essential that practitioners make onsite visits and inspections to ensure accurate information. When reporting, practitioners should include the following information. Table 3: Local Resources Availability Guideline Information category Key Indicators Notes

The extent to which local business enterprises are able to play a role in the project and benefit through participation.

• Availability of designated enterprises

• Extent of legal compliance (registration with necessary authorities & bodies)

• BBBEE status & ownership • Women & disabled ownership • Extent of experience & track

record

In certain cases, particularly in relation to micro-businesses / sole traders, it may well be that there is insufficient legal compliance. Part of the empowerment process might therefore relate to addressing these issues BBBEE status can be proven by a valid BBBEE certificate or in the case of a micro-business, an auditor’s letter

Local labour availability & skills

• Ability to access local labour easily

• Extent of existing skills that will enhance project implementation & completion

Relevant skills can be determined through processes such as skills audits

Local raw materials and plant availability

• Availability of plant and raw materials in the community

Significant costs are often incurred because of the perception that there is insufficient raw material locally – Practitioners must consider and comment on the appropriateness of using locally available raw material. In some instances material can also be manufactured locally through locally appropriate technology.

The following working example will indicate how these requirements are implemented. Practitioners must also note that, where possible, there is always an attempt to link appropriate information with the project and its empowerment objectives.



Working Example 5: Determining Local Resources Availability The following example illustrates the gathering of information in relation to the availability of local resources. For ease of reference a guideline form is used. This form can be adapted as necessary by practitioners.

Table 4: Local Resources Availability (ctd) (Some information provided does not relate to Leeu Gamka but is included for the sake of completion. This is indicated by a *)

Local resource category

Extent of availability Commentary

Business enterprises

• Informal traders (spaza shops)

• Paving and brick making project

• Building contractors • Fencing contractors

The paving and brick-making project is in Laingsburg – its distance from Leeu-Gamka (50km) could be prohibitive in terms of cost There are 4 contractors in the Leeu Gamka / Prince Albert area. 2 are BEE compliant business and are registered with a Level 2 CIDB grading. The contractors are experienced in general works and have participated in EPWP projects relating to pavement maintenance.* There is 1 fencing contractor in the area. The contractor has previously been a beneficiary of the Working for Water programme.*

Labour • Labour is available from the

Leeu Gamka, Bitterwater and Prince Albert area

Distances between the towns could be problematic in terms of transport. Although a large proportion of the labour would be unskilled, indications are that there are appropriate construction related skills in the community since there are a number of ongoing roads projects in the area that make use of local labour

Raw materials and resources

• Bricks and pavers Leeu Gamka has limited resources because of the lack of commercial activity. The bricks and pavers can be accessed from a community development project in Laingsburg. The cost of transporting the materials needs consideration. Also, the extent to which the products would meet necessary specifications is uncertain. In all likelihood, some materials could be used

Concluding Remark The lack of visible businesses means that it will be difficult to stimulate any local business activity or to source any resources in the immediate vicinity of the town. Resources would have to be sourced from surrounding towns such as Prince Albert and Laingsburg. This would have some cost implications. The lack of older persons in the town’s make-up also has implications for the availability of skilled resources in relation to the proposed project. However, there is a skills base available because of road works projects in the area.



4.3.3(a) Local Economic Opportunities Attention must be paid to potential economic opportunities that could occur in the area as a result of the intervention. This is important for local business development. The identification of existing and potential business opportunities should be made in terms of the ability of the project to initiate or promote existing business opportunities. Information should be obtained from relevant sources such as IDP documents and through liaison with local authorities.

Working Example 6: Local business development

The following resources were consulted to determine the potential for business and skills development in relation to the proposed project as well as future projects:

• The IDP with the Spatial Development Framework and future projects • Liaison with community representatives (IDP practitioner & CDW)

The ambulance station is the initial project; however there are a number of possible related projects that could spin off from the initial project. The majority of the towns’ roads and sidewalks are not surfaced. There is also an intention to upgrade stormwater and sewerage infrastructure. These initiatives are in line with the municipality’s future planning. A copy of the Spatial Development Framework as extracted from the Prince Albert Municipality Integrated Development Plan indicates future developments that could impact positively on work opportunities. Consequently there is scope for the development of existing businesses as well as for the development of start-up businesses that could supply resources. As previously indicated there is little formal business structure in the town itself. Existing resources will need to be drawn from more developed, surrounding towns of Prince Albert and Laingsburg. However, the distances from these towns to Leeu Gamka is prohibitive and will impact on cost.

The following supporting documentation provides an indication of the potential for future business development and economic growth.



Working Example 7: Supporting documentation Figure 5: Extract from Spatial Development Framework (Prince Albert Municipality)



Figure 6: Prince Albert IDP extract with projects

Comment: The assessment of local economic opportunity is based on research undertaken by the EmpIA practitioner. Research should be a mixture of onsite assessment with desk-top research. The assessment in relation to the Leeu Gamka project indicates that although there is a lack of commercial infrastructure in the town there are possible opportunities for business growth resulting from the spin-offs of the project as well as intended future projects. Significantly, the IDP notes a number of infrastructure projects that are aimed at addressing needs of the area.



4.3.4 Stakeholder Engagement Stakeholder engagement and representation in the empowerment process is crucial to the success of the overall process. It may be assumed that the greater the sense of participation that the beneficiary community has, the greater sense of control and hence empowerment, that will be manifested. Meaningful inclusion, participation and information-sharing are critical elements of the empowerment process. Local stakeholder participation furthermore enhances the element of accountability. Having engaged with local authorities, the practitioner should then also seek to directly liaise with community leaders to obtain further socio-economic information.

Practitioners should note that it is critical that any consultation with stakeholders should be conducted in a manner that does not generate unreasonable or false expectations. In communities where unemployment is high, the potential for incorrect information or for possible future disputes around opportunities could increase.

For EmpIA practitioners the following represents a non-exhaustive list of community and other stakeholders that should be consulted:

• Local Municipalities & councillors • IDP Practitioners • NGO’s • Local Business forums • Community Development Workers • Applicable government departments

Evidence of contact made with stakeholders should be included. Registers of meetings, copies of presentations made and other documents are useful documents to keep.

4.3.5 Exit Strategies The inclusion of exit strategies is a critical aspect of the revised EmpIA process. Construction projects can be regarded as a catalyst for community employment opportunities, but this on its own does not encourage sustainability. The challenge for sustainable empowerment lies in being able to create alternative work opportunities, independent of the planned municipal infrastructure projects/ interventions. This is the role that successful exit strategies are able to play – they are mechanisms that enable beneficiaries participating in short-term work opportunity programmes to transition into longer-term employment opportunities thus ensuring greater sustainability. The transition could occur as a result of skills development acquired that makes the beneficiary more marketable or it could occur as a result of business growth in the area that results in an increased demand for labour. Hence the skills development and other linked training programmes that occur during the intervention are important for the purposes of exit strategies.

An appropriate recruitment procedure with a screening mechanism is necessary to ensure that appropriate beneficiaries are selected for participation on the programme – better selection ensures a greater chance of success.

It is not the role of the EmpIA practitioner to develop these exit strategies. However, the practitioner should, when assessing empowerment impact, identify possible opportunities for exit strategies and the EmpIA report should include an indication of potential work opportunities that can result in meaningful exit from the empowerment intervention.



The following example sets out a process for the identification of exit strategy opportunities.

Working Example 8: Identification of Exit Strategies

Figure 7 : Unused Transnet building

Figure 8: Unused Transnet Building

Within the area, there are a number of possible spin-off opportunities from the ambulance station intervention. The majority of the town’s roads and sidewalks are not surfaced and there is also the intention to upgrade stormwater and sewerage infrastructure. This is in line with the municipality’s future planning. Hence any construction-related skills acquired on the ambulance station project could also be used in relation to the future projects where appropriate.

Other opportunities The demographic survey identified that a significant proportion of Leeu Gamka’s population is under the age of 24; however, there is a notable lack of recreational facilities. However, there are a number of unused, state-owned buildings in the surrounding area with the potential to be converted into recreational and/or educational facilities. One of the existing buildings conducive to such a facility, stands on the edge of the N1, and is owned by Transnet. The building is unoccupied and although in need of revamping, the superstructure appears to be in relatively good condition, i.e. minimal renovation would be needed in order for the building to operate adequately.

Upgrading of this much-needed facility would provide the following work opportunities: o Construction: bricklaying & plastering (for any internal alterations), painting (including roofs &

floors), tiling and plumbing (bathrooms & kitchenette), basic electric reticulation. o Carpentry: securing all doors and windows including glazing. Carpenter can also be employed

to make benches and tables. o Current sewing project can make cushions, curtains & rugs. o General cleaning – can be done on a weekly rotational basis.

There are other possible upgrading and maintenance projects in the area. The current day clinic is under-resourced and is too small to accommodate patients as well as medical staff. The current Ambulance station building, once vacated, could however be used to house a new, revamped clinic.



The town’s Crèche is situated on the edge of the N1, in the vicinity of the Police Station. The building has been deemed “unsafe” and an application for upgrade funding has been submitted to the Municipality. However, due to the extensive damage, upgrading might not be a feasible option, and an alternative accommodation has not yet been identified. The EMS vacated premises could be converted into a crèche successfully. The building is situated directly opposite the Children’s playground, away from the main vehicular roads. The building has a fenced-in courtyard that could be turned into a partially-green area of learning. Within the area there are a number of community development projects currently operational. These include the brick-making facility in Laingsburg, a bread-baking project and a greening / gardening project. As previously suggested, there is the possibility that the products of the brick-making facility could be used for the ambulance station and other projects. Given the correct level of business support and mentoring, these projects could develop into viable commercial enterprises that could provide future employment opportunities. Finally, the current ambulance station is in need of adequate training facilities – the high accident rate on the N1 road between Laingsburg and Beaufort-West means that there is an ongoing need for emergency medical services that require an ongoing and consistent level of training and expertise. A training facility could be developed in the area to provide for the required ongoing professional training. (Currently, all training occurs in Beaufort-West with a resulting high cost for transport and accommodation)



4.3.6 Project or Construction Phase Description The inclusion of a description of the construction phase in the EmpIA report is critical for the development of empowerment targets. A tender unbundling approach should be followed so that each phase may be broken down, where reasonably possible, into a detailed description of each construction facet. This approach will help to maximise the utilisation of LIC techniques and will also assist in the utilisation of smaller sub-contractors.

Working Example 9 : Construction Phase Description

The project involves the construction of an Ambulance Station in the town of Leeu Gamka in the Central Karoo. The following questions should be addressed: • Does the project favour the utilisation of empowerment approaches? That is, can LIC be maximised? • To what extent is unskilled & semi-skilled labour required as opposed to skilled and / or professional input? Answering these questions will also assist in ensuring that the final design takes empowerment considerations into account. In order to maximise the extent of small contractors and LIC the project may be divided into the following activities: • Construction of the main building • Sidewalk and paving work • Furnishings and fittings • The phases as identified may then be broken down further as follows:

1. SITE ESTABLISHMENT 7. FINISHES Site Clearing Painting Fencing Wall and / or Floor tiling Site Office setup & services Alternative floor finishes (timber, carpet, vinyl, etc) Other Glazing, shower screens, curtain walls, etc 2. EARTHWORKS, DEMOLITION & BUILDING SETOUT

Other

Demolitions 8. SERVICES Levels, Setting out of Building Plumbing, Drainage & Stormwater (building) Excavation Electrical Other Mechanical 3. SUBSTRUCTURE: FOUNDATIONS & SURFACE BED

Security / Access control / Audio-visual

Trenches, Foundations 9. EXTERNAL WORKS Plinth brickwork, backfill and compaction Bulk services: water supply, soil & sewerage Waterproofing Stormwater (site reticulation) Reinforcing & surface bed Roadworks & parking Other Paving / gravel 4. SUBSTRUCTURE: MASONRY / WETWORKS Metalwork / Fencing Brickwork, waterproofing, openings Landscaping Screeds Irrigation Plastering and / or skimming Other Other 10. SITE HANDOVER 5. ROOF, CEILINGS & DRYWALLS Cleaning Roof structure and / or support columns Dismantle site establishment Roof covering, insulation, flashings Ceilings, cornices, insulation Drywalls 6. CARPENTRY & JOINERY General carpentry (e.g. skirting, doors, etc) Joinery Other

Practitioners should note how each phase is broken up to assist in identifying opportunities for LIC and smaller contractors



5. Empowerment Impact Analysis The information gathered during the information gathering phases must now be analysed by the practitioner in order to develop strategies with regard to work opportunities, economic empowerment and the development of local skills and capacity. This will form the core of the EmpIA and needs to be reported to the relevant stakeholders in order to finalise the relevant empowerment targets.

5.1 Determining Labour Enhanced task opportunities Not every activity related to the project can be reduced to one that is dependent on labour; however the creation of work opportunities through labour intensive activities is crucial to overall empowerment. Labour intensive activities not only assist in the provision of infrastructure, but also play a role in skills and contractor development. Labour intensification is typically created through using the project design to incorporate activities requiring a larger workforce and / or the use of labour where non-labour methods / plant would have been used otherwise.11

Typically the EmpIA practitioner would have to assess the project and determine the extent to which labour intensive activities can be employed in relation to all of the project’s activities. The assessment would typically provide the following detail:

o Possible construction methods that will maximise labour involvement o Labour requirements and allocation for each task o Labour differentiation – skilled or unskilled? o The utilisation of locally appropriate technology where possible o Source of labour o Cost comparison between labour as opposed to plant usage o Motivation for the use of plant as opposed to labour

The following table12 sets out possible work related activities for the Leeu Gamka project and also indicates the possible level of expertise that will be required in relation to each activity. This process also assists in determining the skills development that will facilitate project participation and completion. In this manner, the appropriate training requirements can be identified- thus also playing a role in the development of exit strategies. (The table is based on the table shown in Working Example 9).Practitioners should note that although tasks requiring unskilled generally lend themselves to a LIC approach, this does not mean that all LIC work is unskilled. For example, the laying of facebrick demands a high experience and skills level. Similarly the practitioner should note that where work is specialised in nature, a certificate or qualification does not necessarily imply the possession of required skill and experience. In such instances, a higher degree of supervision is required.

11 See the original EmpIA Guideline document @ 20 12 The table was compiled with the assistance of CMJ Studio



Working Example 10: Determining labour enhanced task opportunities & skills requirements

DESCRIPTION OF TRADE ACTIVITY Unskilled

labour Semi-skilled

labour Skilled labour

Skilled & Experienced

labour

Supervision required

Specialist/ professional

input

1. SITE ESTABLISHMENT

Site Clearing # # Fencing # # # # Site Office setup # # # # 2. CIVILS & BUILDING SETTING OUT Excavation # # Establishing site levels # # # # Manual Cutting & Fill # # # Setting out of building # # # 3. FOUNDATIONS & SURFACE BED Digging of trenches # # Installing steel reinforcing # # Mixing concrete manually # # Pouring & vibrating concrete # # # 4. BRICKWORK, PLASTERING & SCREEDS Stacking & carrying bricks # # Mixing mortar/ plaster/ screed # # Bricklaying – stock bricks # # # Bricklaying – facebrick # # # Plastering # # # # Laying screeds # # # Waterproofing (dpcs & dpms) # # # 5. SERVICES Plumbing # # # Electrical # # # Security/ Audio-Visual # # # # 6. CEILINGS, CARPENTRY & ROOF Ceiling installation & skimming # # # # Manual assembly: timber rafters & columns # # # # # Roof installation # # # # 7. STEELWORK Supply & Installation of steel structures # 8. FINISHES & JOINERY Painting # # # Tiling assistance (mixing grout, etc) # # Tiling # # # Built-in Bedroom & Kitchen cupboards # # # # 9. EXTERNAL WORKS & LANDSCAPING Compaction of paved & gravel areas # Manual # Mechanical # # Paving & laying of gravel # # Water Feature # # # # Fencing # # # # Landscaping & Irrigation # # # #

Each component of the table may then be broken down further to specify the estimated amount of labour and associated cost. This is shown in the following examples. The following examples utilise spreadsheets that need to be completed electronically since each spreadsheet is linked and will enable the practitioner to ultimately submit a total figure for the empowerment targets that takes all of the possible construction activities into account. This document will not show the breakdown of each and every activity but will use samples of the various spreadsheets. The full spreadsheet is enclosed as Appendix.A spreadsheet is provided for each trade activity. In turn, each activity is divided into sub-activities. This enables costing to be established per trade activity. Upon completion of the individual spreadsheets, the information is collated and is presented in a single spreadsheet that is presented as Working Example 12. This will contain the overall information concerning empowerment targets.

The Empowerment Targets will then be transposed onto the Contract Participation template, attached as Appendix 3.



Working Example 11: Labour Enhanced Task opportunities and costs

DEPARTMENT OF TRANSPORT & PUBLIC WORKS

EMPOWERMENT IMPACT TARGETS

Project Name / Description

Project Location (Town / suburb)

Estimated project cost

District Municipality

Local Municipality

Work Category Site Establishment Total time for completion

Beneficiary category

Local Labour Resources

Task Description

Task Duration

Local Labour Involvement (# Target persons required per category)

Total # Target beneficiaries required

Total # work days

Total beneficiary cost

Commentary

Site Clearing Unskilled Daily Wage Rate

Sub-total beneficiary cost

Semi-skilled labour

Daily Wage Rate

Sub-total beneficiary cost

Fencing

Site offices & services

Other

TOTAL

SUMMARY Local Labour Breakdown (Regarded as an indicator only)

Local Labour # Unskilled

# Semi-Skilled

(A) Total number targeted beneficiaries

(B) Total # number work days

(C) Total Labour Cost

CPG % Breakdown

Comments

HDI

Women

Youth

Disabled

TOTALS

% in relation to Overall Contract %

% CPG: %

A= % Total # Beneficiaries required for the Contract

B = % of Total Contract Duration

C = CPG (% Total Labour Cost in relation to the Overall Contract Value)




LOCAL ENTERPRISE DEVELOPMENT (identify opportunities for participation of appropriate local enterprises / Refer to Annexures

Task Description

Task Duration (Days)

# Teams / Enterprises Required

Required Supervision Level

# Skilled Total # work days

Estimated Component Cost

CPG (% Total Contract Value)

Commentary

Site Clearing

Fencing

Site offices & services

Other

TOTAL

Targeted Skilled Beneficiaries:

(Equivalent to …. % of overall workforce)



5.2 Determining opportunities for local business development The identification of business opportunities related to the intervention serves to promote the interests of small local business that would in normal circumstances not necessarily be able to participate in large, mainstream contracts. Through an unbundling approach it becomes easier to set aside opportunities for smaller business development. The selection process is largely dependent on:

• The ability of the local business to sustain services and product during the contract period • The locality of the business – it must be in the environs of the beneficiary community • The extent of BBBEE compliance that will indicate that the business can be a beneficiary

The unbundling of the project into activities assists in identifying those aspects that could be completed by local beneficiary businesses. Consequently the EmpIA report must include

• Identified business opportunities • The quantity of businesses that are required to complete the activities • The cost of utilising the services of such businesses • The source / location of the identified businesses

5.3 Determining local plant / material resources opportunities The identification of local plant and material resources is critical in stimulating economic activity within beneficiary communities. The identification of such resources is often a springboard for further economic growth.

5.4 Beneficiary identification & quantifying needs This phase is important in identifying the target groups that will benefit from empowerment initiatives. Typically, the socio-economic information that has been gathered will form the source of the information.

Working Example 12: Beneficiary Identification

The town of Leeu Gamka has a predominantly Coloured population. The socio-economic survey indicates that there is a literacy rate of 65%. The town does have a school, but it does not accommodate learners all the way to matriculation level. Significant numbers of persons are dependent on State Grants due to high levels of unemployment. Since the proposed project is in the town itself, the towns’ inhabitants would form the bulk of the beneficiaries. In relation to beneficiaries there needs to be a specific focus on women and youth. Typically, youth do not see a future for themselves in the area and end up migrating to urban areas where there are more possibilities and opportunities. The initiation of the project could serve as a tool to galvanise interest in the town.



5.5 Skills identification & training Skills development and training are critical parts of the empowerment process. Apart from ensuring the appropriate skills levels for the project, proper skills training can also lay the foundation for future use. Education and training programmes should, where possible, focus on providing skills that will also be beneficial for future community projects, thereby providing a sustainable skill, which the individual can use in the future.13 Training should therefore be done with a view to the future so that the individual has some form of exit strategy. The EmpIA report should include an indication of:

• The type of training to be implemented • The identified beneficiaries • The cost of training • The identified training provider (typically, the training should lead to some form of accreditation

that can be used to further the individuals education)

13 See EmpIA Guideline Document @22



6. Setting Empowerment Impact Targets The setting of targets refers to contract participation goals (CPG). The targets are thus largely quantitative in nature. The setting of targets creates a benchmark for the implementation of the project and provides the foundation for future monitoring and evaluation. The targets are focused on the extent to which individual beneficiaries and enterprises are able to benefit from work opportunities, training and business opportunities. The setting of the targets is therefore derived from the information provided by the practitioner and it is used to form the basis of the CPG that is inserted into the final tender document.

6.1 Who are the intended beneficiaries of empowerment initiatives? (a) Individual beneficiaries are generally those persons who are referred to as Previously

Disadvantaged Individuals (PDI’s)14. Within the framework of Broad Based Black Economic Empowerment (BBBEE), these would be Black persons (a generic term for African, Coloured, Indian and Asian persons). Women and youth would form sub-groupings of this broader group. For the specific purposes of project involvement, beneficiaries must be unemployed. In general, beneficiaries must be resident in the area in which the project is located. Often, involvement is determined by access to transport, accordingly, persons who come from the appropriate region (particularly in rural areas) might not be able to access the opportunities because of the distance or remoteness of locations.

(b) Empowerment initiatives are also meant to encourage the development of small local

businesses and contractors. From the contractor perspective, the Department of Transport and Public Works runs contractor development programmes that are meant to bring more previously disadvantaged contracting firms into the mainstream. Local businesses are targeted in order to supply the plant and/or resource requirements of the project. Typically, target requirements are incorporated into the main tender contractor and the preferred contractor has to include and make provision for the achievement of the appropriate targets. The cost of the beneficiary involvement would typically be represented as a percentage of the total project cost. For example where the total budget of the project is R18 million, and where three beneficiary businesses are identified to participate at a cost of R2 million; the cost of that participation would be 11.1% of the total project cost. The target for local enterprises with the potential to benefit could be set at 11.1%. The same approach would be used for all of the different empowerment components, including training and job creation.

Practitioners must refer to Working Example 12 for an example of the presentation of targets. The tables shown are an amalgamation of all the information that has been collected in relation to each of the construction phases, the training and relevant cost related to each of the phases and the cost related to sourcing local plant and material resources and finally the cost of incorporating local suppliers.

14 A South African citizen who, due to apartheid, would have had no franchise in elections prior to 1993. (It has also been legally decided this grouping includes persons of Chinese descent)



Working Example 12: Empowerment Impact Targets

EMPOWERMENT IMPACT ASSESSMENT






Estimated total labour cost

Local Municipality

Estimated total project time allocation

Note: Complete each individual worksheet first.



# Semi-Skilled




CPG % Breakdown

Comments

HDI

Women

Youth

Disabled

TOTALS


% CPG: %




SUMMARY TRAINING & DEVELOPMENT REQUIREMENTS

Skills Development programmes No. of beneficiaries Cost Comment

National Youth Service

Learnership

Other (refer to annexure for details of training

TOTAL





Task Description




# Skilled Total # Skilled persons

Total # Work days Estimated Component Cost

Site Establishment

Earthworks, Demolition & Building Setout

Substructure: Foundations & Surface bed

Superstructure: Masonry / Wetworks

Roofs, Ceilings & Drywalls

Carpentry & Joinery

Finishes

Services

External Works

Site Handover

TOTAL

Targeted Skilled beneficiaries: (Equivalent to …… % of overall workforce)

LOCAL PLANT AND MATERIAL RESOURCES CHECK (depending on project requirements)

Tick No. of suppliers

Is there a toilet hiring company?

Availability of plant hiring companies (trucks / machinery)

Availability of tool hiring companies (smaller scale compactors, vibrating machines etc)

Availability of raw materials (suppliers, quarries, brick-making plant etc)

Availability of hardware stores (general building, electrical & plumbing)

Specialist suppliers (finishes – tiles, sanitaryware, shower screens etc)

% of Total Project Cost



OVERALL PROJECT SUMMARY


# Semi-Skilled

Total # Target Beneficiaries

Total # Work days

Total Labour Cost

CPG % Breakdown

HDI 0 0 #DIV/0! 0 #DIV/0!

Women 0 0 #DIV/0! 0 #DIV/0!

Youth 0 0 #DIV/0! 0 #DIV/0!

Disabled #DIV/0! 0 #DIV/0!

Total 0 0 0

Category Overall Costs

Local Labour 0 #DIV/0!

% of total labour cost

Targeted Enterprises

0 #DIV/0! % of total project cost

Local Resource Availability 0 #DIV/0!

% of total project cost

Training Requirements #DIV/0!


Total


7. Empowerment Implementation Strategy Having considered the findings of the EmpIA process it will be necessary to implement them in a manner that will enable the achievement of empowerment targets. Methods that are used include:

• Utilising the scheduled task method statement • Running appropriate, scheduled training programmes • Engagement with community representatives and stakeholders • Project break-out and procurement strategies

Using the proposed Leeu Gamka ambulance station as an example, the following could apply:

Working Example 13: Project Empowerment Implementation Strategy

8. Monitoring & Evaluation It is envisaged that monitoring and evaluation of project deliverables, including the achievement of empowerment objectives be assessed regularly. Currently, the Department oversees the monitoring and evaluation process – however, as previously indicated the EmpIA unit in the Directorate is not able to monitor and evaluate each and every project that has been undertaken with empowerment objectives in mind.

It is also important to note that the monitoring and evaluation process should not only attempt to assess the extent to which quantitative targets have been achieved; but should also try to incorporate some form of socio-economic assessment to determine the extent to which an intervention is impacting or has impacted on the community’s well-being. Currently, once the project is underway, monthly summary progress reports are submitted to the Department. As previously indicated this activity does not fall within the scope of the EmpIA practitioner’s brief. An example of an EmpIA report review protocol is also included in Appendix 12.

It is envisaged that with more in-depth socio-economic research a more detailed assessment of the empowerment impact of a project can be made. This applies particularly to the extent to which there has been successful exit from the programmes initiated by the intervention.

The construction project involves construction of the main building, sidewalk and paving work and furnishing and fitting. Accordingly, the project could be unbundled and broken down into distinct phases that will maximise the opportunities for participation by targeted beneficiaries. The phases could include, inter alia, the previously mentioned facets. Consequently, the project could be advertised as 1 tender or as 3 separate contracts.

Preference must be given to contractors in the immediate region who comply with the requirements of BBBEE and who are able to show a commitment to its principles. Allocation of points awarded would be determined in line with procurement regulations. Main contractors who are not from the area, but who use local sub-contractors would receive preferential points.

Implementation of the empowerment strategy must ensure that empowerment objectives are met while at the same time ensuring that service delivery and Departmental policy requirements are met.


9. Conclusion This document originated from a review of the current EmpIA process – although the EmpIA has to some extent been entrenched in Departmental practice, it may be said that the role and practice of empowerment is still misunderstood to some extent. Implementing agents are often not aware of how to incorporate empowerment principles and practice into projects. The initial empowerment guideline provided a template for practitioners to put empowerment into practice. This document has drawn extensively from that document where necessary. Having said that, the review indicated that there was a need for a greater socio-economic emphasis in relation to empowerment practice. A focus on quantitative elements only, ignores the need to also assess the impact that interventions may have on individual or community well-being. Consequently, the document has made reference to a number of socio-economic indicators that can be used during the research as well as the evaluation phase.

This document has advocated for a greater emphasis on socio-economic aspects; firstly through more in-depth initial research and then in relation to an improved, deeper monitoring and evaluation process that will consider socio-economic aspects. Focusing on better research and more sustained monitoring and evaluation are seen as the keys to a more integrated process that will consider empowerment in a broader sense.

The role of the BBBEE framework can also not be ignored. The proposed and impending alignment between the Procurement Regulations and the BBBEE framework means that the manner in which contracts were assessed and allocated will change. The Department will consequently need to consider this in its contract allocation procedures. Moreover, when contractors make provision for empowerment targets they will also need to consider the BBBEE status of the contractors that are brought on board as this will have a bearing on their own BBBEE status.

Internally, the Department will also have to consider how it will monitor the implementation of the EmpIA across all client and implementing Departments. The EmpIA unit is not able to assess each and every empowerment-related contract and individual Departments will need to take responsibility for ensuring that the principles of empowerment are adhered to.

Each empowerment-related intervention is unique – different criteria and challenges will apply in each case. It is hoped however, that this document, together with the experience of past EmpIA practice will provide some guidelines for practitioners and other related stakeholders in the formulation and implementation of empowerment related strategies and interventions.


10. Appendices

Appendix 1: EmpIA Socio-Economic Information Template Form .................................................................. 46 Appendix 2: Consolidated EmpIA Targets ...................................................................................................... 48 Appendix 3: Contract Participation Goals ....................................................................................................... 51 Appendix 4: Individual Phase Targets (Site Establishment) ............................................................................ 52 Appendix 5: Individual Phase Targets (Earthworks, Demolition & Building Setout) ........................................ 53 Appendix 6: Substructure: Foundation & Surface Bed .................................................................................... 54 Appendix 7: Individual Phase Targets (Superstructure: Masonry & Wetworks) ............................................... 55 Appendix 8: Individual Phase Targets (Roofs, Ceilings & Drywalls) ................................................................. 57 Appendix 9: Individual Phase Targets (Carpentry & Joinery) ........................................................................... 58 Appendix 10: Individual Phase Targets (Finishes) ........................................................................................... 59 Appendix 11: Individual Phase Targets (Services) ........................................................................................... 60 Appendix 12: Individual Phase Targets (External Works) ................................................................................ 61 Appendix 13: Individual Phase Targets (Site handover) .................................................................................. 61 Appendix 14: EmpIA Report Protocol ............................................................................................................. 63 Appendix 15: EmpIA progress report .............................................................................................................. 64 Appendix 16: Extracts from the Guidelines for the implementation of Labour-intensive infrastructure projects under the EPWP (2005) .................................................................................................................................. 65 Appendix 17: Broad Based Black Economic Empowerment & the EmpIA ....................................................... 68


Appendix 1: EmpIA Socio-Economic Information Template Form


Purpose of the form: To provide a framework for gathering information and research

Project Name

Client Department The department that has initiated the project

Implementing Department

The department that is responsible for implementing the project

Project Location Where is the project

Project Description Provide a brief note on the project & its purpose

Phase 1: Information Gathering Purpose: to gather sufficient information to provide the foundation for the development of empowerment targets

1a) Indicate the sources of information accessed

IDP

Databases Provincial documents

Other

1b) Indicate the extent of community liaison

Contact Details Summary of discussion

Local authority Prince Albert Municipality

Local Leaders

Community Development Worker


2. Please indicate information that addresses the following aspects

Provide brief notes with references

Population breakdown

What is the race, gender and disability profile of the community?

Languages spoken

What languages are spoken in the community?

Infrastructure Types of road (Indicate condition & state of completion)

Types of housing (what types of housing are present - informal / formal?

Water /Sanitation

Community facilities

What facilities exist for community use? Halls, library etc). Unused hostel outside the town close to N2.

Educational / Training institutions

List the institutions and extent of attendance and accreditation

Recreational facilities

4) Please indicate the extent of businesses operating in the area

No. sector

Informal (shebeens, cafes)

Formal

Financial

Retail

Construction

Engineering

Agriculture

Other

5) Please indicate the extent of construction-related businesses in the area

Type Business/ Trader name & contact details

Formally registered? Category BBBEE Certified

Building / masonry

Yes No Sole trader

CC Pty Yes No

Plumbing CIDB NHBRC Painting

Flooring

Carpentry

Roofing

Fencing

Electrical

Practitioner Name

Signature Date


Appendix 2: Consolidated EmpIA Targets








Local Municipality





# Semi-Skilled




CPG % Breakdown

Comments

HDI

Women

Youth

Disabled

TOTALS


% CPG: %




SUMMARY TRAINING & DEVELOPMENT REQUIREMENTS

Skills Development programmes No. of beneficiaries Cost Comment

National Youth Service

Learnership

Other (refer to annexure for details of training

TOTAL




Task Description




# Skilled Total # Skilled persons

Total # Work days Estimated Component Cost

Site Establishment


Substructure: Foundations & Surface bed

Superstructure: Masonry / Wetworks


Carpentry & Joinery

Finishes

Services

External Works

Site Handover

TOTAL

Targeted Skilled beneficiaries: (Equivalent to …… % of overall workforce)

* Depending on capacity, may refer to multiple Enterprises / multiples teams per Enterprise

LOCAL PLANT AND MATERIAL RESOURCES CHECK (depending on project requirements)

Tick No. of suppliers

Is there a toilet hiring company?

Availability of plant hiring companies (trucks / machinery)

Availability of tool hiring companies (smaller scale compactors, vibrating machines etc)

Availability of raw materials (suppliers, quarries, brick-making plant etc)

Availability of hardware stores (general building, electrical & plumbing)

Specialist suppliers (finishes – tiles, sanitaryware, shower screens etc)

% of Total Project Cost


OVERALL PROJECT SUMMARY


# Semi-Skilled

Total # Target Beneficiaries

Total # Work days

Total Labour Cost

CPG % Breakdown

HDI 0 0 #DIV/0! 0 #DIV/0!

Women 0 0 #DIV/0! 0 #DIV/0!

Youth 0 0 #DIV/0! 0 #DIV/0!

Disabled #DIV/0! 0 #DIV/0!

Total 0 0 0

Category Overall Costs

Local Labour 0 #DIV/0!


Targeted Enterprises

0 #DIV/0! % of total project cost

Local Resource Availability 0 #DIV/0!

% of total project cost

Training Requirements #DIV/0!


Total


Appendix 3: Contract Participation Goals WESTERN CAPE PROVINCIAL ADMINISTRATION

DEPARTMENT OF TRANSPORT AND PUBLIC WORKS

PROJECT NAME

SCHEDULE : CONTRACT PARTICIPATION GOAL

Standardised Specifications for Targeted Construction Procurement D20500 : Participation of Targeted Enterprises and Targeted Labour is included as an Appendix to 3.3 : Procurement in the Scope of Works and shall apply as additional Works Specifications to this contract. Project Specifications are set out in section 3.3 : Procurement in the Scope of Works.


Appendix 4: Individual Phase Targets (Site Establishment)



Project Name / Description Project Location (Town / suburb)

Estimated project cost District Municipality

Work category Site Establishment Local Municipality


Estimated total project time allocation Note: Complete each individual worksheet first.



# Semi-Skilled




CPG % Breakdown Comments

HDI

Women

Youth

Disabled

TOTALS

Beneficiary category LOCAL ENTERPRISE DEVELOPMENT (identify opportunities for participation of appropriate local enterprises / Refer to Annexures

Task Description

Task Duration (Days) # Teams / Enterprises Required Required Supervision Level # Skilled Total # work days Estimated Component Cost CPG (% Total Contract Value)

Commentary

Site Establishment

TOTAL


Appendix 5: Individual Phase Targets (Earthworks, Demolition & Building Setout)





Work category Earthworks, Demolition & Building Setout Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary


TOTAL


Appendix 6: Substructure: Foundation & Surface Bed





Work category Substructure: Foundation & Surface Bed Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

Substructure: Foundation & Surface bed

TOTAL


Appendix 7: Individual Phase Targets (Superstructure: Masonry & Wetworks)





Work category Superstructure: Masonry & Wetworks Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

Superstructure: Masonry & Wetworks

TOTAL


Appendix 8: Individual Phase Targets (Roofs, Ceilings & Drywalls)





Work category Roofs, Ceilings & Drywalls Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary


TOTAL


Appendix 9: Individual Phase Targets (Carpentry & Joinery)





Work category Carpentry & Joinery Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

Carpentry & Joinery

TOTAL


Appendix 10: Individual Phase Targets (Finishes)





Work category Finishes Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

Finishes

TOTAL


Appendix 11: Individual Phase Targets (Services)





Work category Services Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

Services

TOTAL


Appendix 12: Individual Phase Targets (External Works)





Work category External Works Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

External Works

TOTAL

Appendix 13: Individual Phase Targets (Site handover)






Work category Site Handover Local Municipality






# Semi-Skilled





HDI

Women

Youth

Disabled

TOTALS


Task Description


Commentary

Site Handover

TOTAL


Appendix 14: EmpIA Report Protocol This form is used to assess the extent to which EmpIA practitioner has addressed various aspects of reporting

DEPARTMENT OF TRANSPORT & PUBLIC WORKS EMPOWERMENT IMPACT ASSESSMENT REPORT REVIEW PROTOCOL

SCOPE OF SERVICES RATING COMMENTS

GOOD AVRG POOR

Information Gathering Consult the IDP's and community forums to determine the infrastructure requirements Obtain relevant demographic statistics from Stats SA, Social Services and Local Municipalities. Access Police Reports, Social Services, Health reports and other environmental reports Investigate local resources by: Visiting community, recent projects in area from business associates, Dept. of Labour Identify Economic opportunities from academic research, municipalities & business-persons Consult & liaise with key individuals from community development forums & representative structures

Empowerment Impact Analysis Assess and scrutinize the information gathered above in terms of how best the information can capacitate and empower the community and ABE’s / SMME’s in the project

Empowerment Impact Targets Develop targets to quantify objectives in relation to the identified empowerment indicators. Targets must be set in terms of the following: Job Creation Contract participation by ABE’s, SMME’s, Women and Disabled Training Contractor Development Training Use of local material resources, ABE’s, HDI’s Level of community and youth participation

Empowerment Implementation Strategy Proposals Determine implementation strategies that will maximize the degree of empowerment while at the same time ensuring that the Departmental requirements, both in terms of service delivery

and policy, are met. Strategies to be used to ensure empowerment targets are met are:

Use of scheduled task method statement Time scheduled training programmes Interventions to prepare community development workers for participation. Link project capacity building to potential economic opportunities Project break-out and procurement strategy Engage community representatives on project implementation for planning, design and construction phase.


Appendix 15: EmpIA progress report This form is used to provide the framework for regular EmpIA reporting during project implementation:


Appendix 16: Extracts from the Guidelines for the implementation of Labour-intensive infrastructure projects under the EPWP (2005) 1. Introduction

This Annexure provides guidance on the identification of labour intensive projects and the utilisation of labour intensive methodologies to achieve the aims of labour intensive construction – its chief aim being the maximisation of labour where economically feasible in construction projects. For the full text of the Guideline see Guidelines for the Implementation of Labour-Intensive Infrastructure Projects under the Expanded Public Works Programme (EPWP) (2005) (See also Code of Good Practice for Employment and Conditions of Work for Special Public Works Programmes and Ministerial Determination, Special Public Works Programmes, issued in terms of the Basic Conditions of Employment Act of 1997 by the Minister of Labour (The following notes are taken from the Guidelines as referenced above)

2. Preliminary requirements

The following types of construction projects are specifically suitable for labour-intensive implementation: • low-volume roads and sidewalks • stormwater drainage • trenching

Other types of infrastructure and building can also provide opportunities. Prior to designating a project as labour-intensive the relevant authority must ensure that there is sufficient local labour available and that the project is capable of facilitating labour intensive construction. It is precisely the role of the EmpIA practitioner is to assess these aspects.

3. Records

The following records are to be maintained during the course of the project: • Project budget • Actual Project Expenditure • Number of job opportunities created • Demographics of workers employed (disaggregated by women, youth and persons • with disabilities) • Minimum day-task wage rate earned on project • Number of person-days of employment created • Number of persons who have attended a standard EPWP 10 day accredited training course

4. Generic Specifications

The following note provides generic specifications relating to labour intensive construction. These activities should be completed by hand: a) trenches having a depth of less than 1.5 metres b) stormwater drainage c) low-volume roads and sidewalks

The following table sets out labour intensive activities. Where applicable, explanatory notes are provided:

Table: Basic Labour Intensive Activities Category Note Trench Excavation Less than 1,5 metres deep Excavation Excavatable material classified as soft, material can be loosened

mechanically before hand excavation Clearing and grubbing Of grass and bushes Shaping Hauling Use of wheelbarrows, distance < 150 m Loading By hand Offloading By hand unless tip trucks used Grassing Stone pitching & concrete masonry


5. Labour Intensive Construction Design Guidelines The Guidelines to labour Intensive Construction Works also sets out the following notes to bear in mind when designing with labour intensive construction in mind:

1. Earthworks must be designed taking consideration of the method of construction being hand labour and tools and wheel barrows or small transportation units.

2. Vertical and horizontal alignment of the works (roads, pipelines and stormwater channels)

should be such to optimise cut and fill, minimise deep or hard excavation or areas requiring specialist engineering input for example dewatering or specialist ground stabilisation.

3. During the design of gravel roads, suitable construction material must be sourced in close

proximity to the site of the Works. 4. Drawings should be produced and presented in a clear easily understandable way. Where

setting out information is provided in the form of coordinates it should be backed up with methods, not relying on sophisticated surveying instruments, such as offsets measurable will the use of a standard tape. Where possible and appropriate drawings should be produced using a background of ortho photos to provide for easily identification of surrounding features.

5. Except in special circumstances, drawings should be produced in a form that is easily readable

in A3 format. 6. Where the haul distance is greater than 150m, and less than 5000m the use of small volume

local transport, particularly using animal drawn vehicles should be considered. 7. Excavation in material which may constitute a safety hazard for works must be excluded. 8. All pre-manufactured materials which are incorporated into the Works must be sized such

that the mass of individual elements does not exceed 320kg. 9. Hazardous material such as lime or harmful chemical stabilizing agents must not be included

in the Works. 10. Stone masonry and grouted stone pitching should be included wherever suitable material is

available to the exclusion of precast or cast in situ concrete stormwater structures. 11. Where compaction of road layer works is required, it must be carried out using conventional

compaction equipment (mechanised pedestrian rollers where possible). Compaction of small areas and in trenches may be carried out using hand stampers.

12. Construction compaction monitoring should be carried out using a DCP with controls being

done either by nuclear or sand displacement methods. Compaction of trenches is to be tested with a DCP using a method of comparative testing of adjoining undisturbed soil as the control.

13. Consideration must be given to alternative design of gravity pipelines to reduce depth of

excavation. 14. Where there is an indication of local skills, e.g. bricklaying structures should be designed to

make use of such skills.


6. Practice Note: The following types of construction could be subject to labour intensive construction methods:

Category Subcategory Roadworks Layer work construction (loading, hauling & spreading) Road markings Cast in-situ block pavements Segmented block paved roads

Application of bitumen bound surface treatment (cold) including spreading and dragging of chips.

Macadam base course either dry, water bound or emulsion bound; foamed bitumen gravel; emulsion treated gravel; or slurry bound or composite macadams .

Fencing Road signs Grass maintenance Road reserve maintenance

Rubble masonry bridges & culverts

Stormwater Gabions & reno mattresses Small diameter pre-cast elements Sewers Sewer manholes (less than 320 kg) Sewer manhole covers and lids using specially designed pre-cast units. Maturation or faculative ponds with least dimension not exceeding 100m. Water

Laying of water pipelines, fittings and house connections in all materials (including steel) where the mass of individual pipe lengths does not exceed 320kg.

Excavation for membrane lined and floating roof reservoirs. Construction of small masonry reservoirs. Spring and well protection measures

Haulage By hand using wheelbarrows where distance <150 m. Where > 150 m consideration to be given to use of small local transport (tractors, carts etc)

Electricity

Excavation of trenches for reticulation of all voltages. Excavation for and erection of poles for overhead lines. Installation of all electricity cables (joints and terminations by qualified persons).

Housing

Manufacture of masonry elements on site. Excavation of all foundation trenches by hand. Manufacture of roof trusses on site. Adoption of the BESA System

In the BESA system walls are constructed using bitumen emulsion stabilised adobe blocks and mortar. External and internal wall surfaces can be finished in a variety of ways using a mortar mix or a cement/sand plaster. The BESA Building System is the subject of an open certificate issued by Agrèment South Africa. The concept of an open certificate is that the technology is not the intellectual property of any company or individual and the information is available to anyone who wishes to use it. Any competent person, company or institution who wishes to use this system and is capable of carrying out this work in accordance with the terms and conditions of certification and undertakes to do so, may apply to Agrément South Africa to be registered as a holder of this open certificate.


Appendix 17: Broad Based Black Economic Empowerment & the EmpIA The purpose of this section is to explain how BBBEE impacts on the empowerment process. By way of introduction, government procurement as set out in the Preferential Procurement Policy Framework Act and its Regulations provided the initial drive for BBBEE. Apart from other factors such as Black ownership and management and training amongst others, a key differentiator when allocating contracts was the extent to which the prospective entity procured goods and services from other Black empowered providers and suppliers. The BBBEE framework formalised this in that it provided for the certification of businesses and entities as being BBBEE compliant. The extent of compliance is measured by level – the level indicating the degree to which an entity can recognise its expenditure on a provider as being expenditure on black providers or businesses. Levels are indicated as follows:

Table 5: BBBEE Levels

BBBEE Level Explanation Expenditure recognition

Level 1 ≥ 100 points 135 % recognition of expenditure

Level 2 ≥ 85 but < 100 points 125 % recognition of expenditure

Level 3 ≥75 but < 85 points 110% recognition of expenditure

Level 4 ≥65 but < 75 points 100% recognition of expenditure

Level 5 ≥55 but less than 65 points 80% recognition of expenditure




Non-compliant <30 points 0% recognition of expenditure

In general, businesses will want to transact with other businesses that have a good BBBEE rating; as this will benefit that business’s own BBBEE score. The score is calculated by measuring the extent to which the business complies with BBBEE criteria. There are seven criteria as follows:

Table 6: BBBEE Measurement Categories

BBBEE criterion Explanation

Ownership Measures the extent to which Black persons have a beneficial economic interest in the business

Management control Measures the extent to which Black persons exercise day to day control over the operations of the business – particularly at an executive level.

Employment Equity Measures the extent to which the business employs Black persons and also the extent to which there are Black middle managers in the business

Skills Development Measures the extent to which the business has trained Black persons and has complied with the requirements of the Skills Development framework

Preferential Procurement Measures the extent to which the business purchases goods and services from Black empowered suppliers (as determined by procurement recognition levels)

Enterprise Development

Measures the degree to which the business has participated in initiatives to develop Black businesses (for example in a contract, the principal contractor plays a role in enterprise development by agreeing to mentor smaller contractors)

Socio-Economic Development

Measures the extent to which the business has participated in initiatives to empower Black or largely Black communities to bring the community or individuals into the mainstream of economic activity.

Not all businesses are required to comply with all of these aspects. Smaller businesses are incentivised to participate in the BBBEE process by only having to comply with 4 aspects of their choosing and they are the


categorisation of small businesses into small, medium and micro. The categorisations used by the BBBEE framework are as follows:

Table 7: BBBEE Business Categories

Category of business Qualification Explanation Exempt Micro Enterprise (EME) annual turnover less

than R2 million o Applies to all businesses;

regardless of race of owner/s; o Achieves automatic rating of

Level 4 o Where more than 50% Black-

owned receives a Level 3. o Certificate from auditor or

verification certificate is required

Qualifying Small Enterprise annual turnover between R5 to R35 million

o Can choose any 4 aspects o Score is out of 100 points (25

per category) o Verification certificate required

Generic Enterprise annual turnover of R35 million or more

o Measured in terms of all 7 categories

o Verification certificate required

The new Procurement Regulations and the EmpIA

An awareness of the BBBEE framework is crucial in relation to the EmpIA. Essentially, contractors and service providers will be assessed (to some extent) on the basis of their certification level. The allocation of tender points was previously done in line with the 80/20 or 90/10 principle depending on the value of the contract. The 10 or 20 points allocation is where the impact of the certificate will be felt. Where the business applying for the tender has a Level 1 certificate it will score the full 10 or 20 points. Where it has a Level 2 certificate it will receive 18 or 9 points. The categorisation is as follows:

Table 8: Procurement and BBBEE

BBBEE Level Points: 80/20 Points: 90/10 1 20 10 2 18 9 3 16 8 4 12 5 5 8 4 6 6 3 7 4 2 8 2 1 Non-compliant 0 0

The 80/20 system will apply where the applicable contract has a value of between R30 000 to r1 million. The 90/10 system applies where the contract value exceeds R1 million.

Consequently, contractors will have to ensure that valid BBBEE certificates are submitted with their tender applications. The extent to which contractors engage with empowerment initiatives will not directly affect the EmpIA process initially – where contractors and providers have however undertaken initiatives in line with the empowerment categories and where they have measured and verified as being compliant they will benefit.

empowerment impact assessment unit - western cape

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