Expanded Public Works ProgrammeCurrent Status

Update to Portfolio Committee10 Nov 2009

2

There are various levels at which planning, coordination, implementation and management and reporting take place. The Figure reflects the institutional arrangements across the spheres of government that will manage the implementation of EPWP.

3

The figure reflects the accountability arrangements across the spheres of government that are accountable for the implementation of EPWP as a whole and the range of agreements that will be concluded to ensure the commitment by all spheres of government to their respective targets

4

EPWP 2 (like EPWP 1) is an important part ofGovernment’s capacity to provide employment to the poor who are notpart of the labour market in South Africa

(not mutually exclusive)

Reduce poverty bythe alleviation/reduction of

unemployment

Government Strategies

Utilise governmentexpenditure to

alleviate and reduceunemployment

Balanceeconomicgrowth with

growth in EAP

Govt. budget/procurement Regulation Education

policyMacro-economic

policies

Short/medium-term

Improveenabling

environment

Interventiontype

Improveeducation

sytem

Medium/longterm Long-term Medium/long

termImpacttimescale

(EAP = economically active population)

Improve socialsecurity net

Govt. socialwelfare budget

Short/medium-term

Expanded PublicWorks

ProgrammeGoal

(Framework to SA’s Response to International Economic Crisis)

5

Infrastructure Environmental Social Non-State Total

2009-2010 300,000 150,000 80,000 20,000 550,000

2010-2011 342,000 156,000 96,000 48,000 642,000

2011-2012 440,000 200,000 132,000 96,000 868,000

2012-2013 572,000 275,000 187,000 176,000 1,210,000

2013-2014 720,000 375,000 255,000 300,000 1,650,000

Total 2,374,000 1,156,000 750,000 640,000 4,920,000

5 Year Work Opportunities Targets

6

Dec 2009 Target• Programme expected to create 500 000 work opportunities between

March 2009/10 and December 2009/10.• All public bodies from all spheres of government (i.e. national and

provincial departments, as well as municipalities) and the Non-State Sector (supported by government incentives), required to deliberately optimise creation of labour-intensive work opportunities for unemployed and poor people through delivery of public and community services

• DPW submits regular reports to NEDLAC – and the Community Constituency is participating in the Community Work Programme of the Non-State Sector

• Labour-intensity refers to maximizing the use of manual labour on projects without compromising on the quality of assets to be created, e.g. a low-volume road

• Public bodies should create work opportunities in terms of their normal mandates and budgets, e.g. according to allocations as per the Estimates of National Expenditure and grants falling under the Division of Revenue Act

• During provincial visits Minister spelled out to MECs where budgets are located

• Training and enterprise development will be implemented in sector specific programmes to enhance service delivery, beneficiary well-being and skills development

7

8

Progress against 2009-2010 targets – Overall EPWP (Compliant Projects)

Net jobs for Q2 was as follows:• Infra = 34%•Env = 86%•Social=17%•Econ = 54%

Sector Targeted work opportunities [WO]

Work opportunities [WO] delivered to date [ 09]

Q1 (Apr-June 2009) Q2 (Apr-Sept 2009) - Cumulative

No % of targeted WO

No % of targeted WO

Infrastructure 300 000 59 579 20 149 164 49

Environment 150 000 13 960 9 29 325 19

Social 80 000 7 466 9 33 973 42

Non-state 20 000 2 909 15 11 106 55

Total *** 550 000 83 914 15 223 568 40

Source:Targets: Business Plan (dated January 2009)

TOTAL : Figures adjusted by the EPWP Unit to account for projects that are implemented across financial years

9

Progress from Q1- Q2 09/10 per province (Compliant Projects)

Province Q1 09/10 Q2 09/10Q2- Q1 (Variance) % Increase

EC 15,838 36,900 21,062 57%

FS 4,208 11,420 7,212 63%

GP 14,058 44,291 30,233 68%

KN 34,867 70,231 35,364 50%

LP 2,064 12,736 10,672 84%

MP 2,812 11,355 8,543 75%

NC 1,774 8,153 6,379 78%

NW 2,666 9,211 6,545 71%

WC 5,627 19,271 13,644 71%

Grand Total 83,914 223,568 139,654 62%

10

Projects still to be verified per province (Q2 09/10)

Province Projects Still to

be VerifiedCompliant

ProjectsTotal Projects

% Still to be Verified

Work opportunities

Not Yet Reflected

EC 290 479 769 38% 1,301

FS

168 467 635 26% 1,467

GP

481 631 1,112 43% 4,235

KZN

440 121 561 78% 4,323

LP

923 1,537 2,460 38% 3,925

MP

345 406 751 46% 3,204

NC

60 204 264 23% 1,945

NW

292 636 928 31% 1,522

WC

257 398 655 39% 1,600

Total

3,256 4,879 8,135 40% 23,522

11

Incentive procedure • NDPW signs incentive agreements with eligible Public

Bodies before any payments. 62 of the 68 Municipalities have signed the incentive agreement.

• Performance criteria from phase 1 (from Treasury) enabled the 68 municipalities to qualify.

• As the DORA legislates how incentives are being processed, this continues for now.

• To give effect to EPWP 2 objectives, for the following year, we are looking into altering criteria to ensure the majority of the 283 municipalities qualify.

• 12 of the eligible 17 Provincial departments have signed the incentive agreement.

• Detailed payment and Audit procedure manuals have been completed and are being circulated to Public Bodies.

• Eligible Public bodies (Provincial Departments and Municipalities) have to report to receive their incentive payment.

12

Incentive allocation for the 09-10 financial year

Q1 Incentive Payment

Q2 Incentive Payment

Total Incentive Payment (Apr-Sept 2009)

% Incentive Accessed to Date

(R’000) (R’000) (R’000) (R’000)Eastern Cape 29,992 0 2,076 2,076 7Free State 23,008 0 0 0 0Gauteng 500 0 0 0 0KwaZulu-Natal 84,180 19,310 30,445 49,755 59Limpopo 500 0 0 0 0Mpumalanga 5,047 0 0 0 0Northern Cape 500 0 0 0 0North West 7,192 0 0 0 0Western Cape 500 0 11118 11,118 2,224Total 151,419 19,310 43,639 62,949 42

Province

Performance on Incentive for Provincial Departments

2nd quarter 09-10

13

Incentive allocation for the 09-10 financial year

Q1 Incentive Payment

Q2 Incentive Payment

Total Incentive Payment (Apr-Sept 2009)

% Incentive Accessed to Date

(R’000) (R’000) (R’000) (R’000)Eastern Cape 53,559 0 3,913 3,913 7Free State 9,073 0 908 908 10Gauteng 34,881 0 8,472 8,472 24KwaZulu-Natal 39,947 0 11,057 11,057 28Limpopo 18,328 0 3,514 3,514 19Mpumalanga 13,454 0 985 985 7Northern Cape 15,496 0 4,810 4,810 31North West 9,694 0 1,524 1,524 16Western Cape 7,289 0 563 563 8Total 201,721 0 35,746 35,746 18

Province

Performance on the Infrastructure sector incentive for

Municipalities - 2nd quarter 09-10

14

Performance on the Incentive as at End Sept 2009 • 3 Provincial Departments will receive incentive

payments totaling R43.64 million considering 2nd quarter payment reports.

• Total payment to Provincial departments considering 1st payment is R62.95 million out of R151.4 million.

• 44 of the 68 eligible municipalities will receive their incentive payment considering the 2nd quarter report of the 09/10 financial year.

• Total incentive payment to municipalities after the 2nd quarter is R35.5 million.

15

Projections for 3rd Quarter 2009

• From Q1 to Q2 the EPWP has realised an overall increase of 62%.

• However:–there are 23 522 work opportunities

not reported on in Q2, because they are still subject to data verification and validation procedures

–56 000 are currently being captured

16

Actions Taken to Ensure Delivery• Minister engaged and signed protocols that confirm 500

000 December 2009 targets, as well as five year targets for provinces and municipalities, with all Premiers and MECs

• Incentive Agreements have been signed with municipalities• DPW technical teams give support to provinces and

municipalities to ensure that creation of work opportunities is prioritised in design and implementation of projects across government.

• 90 Data Capturers appointed as intervention ensured that data is captured more efficiently across all reporting bodies

• EPWP/idt Team focuses on achieving the Dec 2009 and annual WOs target

• Good cooperation between provincial coordinating departments and DPW to capture identified volumes of data.