Expanded Public Works Programme(EPWP)

Progress report presentation to Select Committee on Economic and Business Development

24th February 2015

2

Presentation Outline Quarter 2 performance analysis

Work opportunities

Full Time Equivalents

Designated Groups

Minimum daily wage

Labour intensity

Financial Performance and Integrated Incentive Grant Performance

EPWP 3rd Summit

Progress on Institutionalising the PEP - IMC

Challenges

Measures put in place to address challenges

3

Overall EPWP Annual Targets (5 Years) per financial year

Financial Year

EPWP annual work opportunity

targets

EPWP cumulative

work opportunity

targets

EPWP annual FTE

targets

EPWP cumulative FTE targets

2014/15 1 045 520 1 045 520 420 952 420 952

2015/16 1 127 186 2 172 706 450 462 871 414

2016/17 1 343 154 3 515 860 519 724 1 391 138

2017/18 1 406 736 4 922 596 574 089 1 965 227

2018/19 1 455 840 6 378 436 591 846 2 557 073

Total 6 378 436 2 557 073Source: EPWP Phase 3 Targets (dated : 30 April 2014 )• Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same

person can be employed on different projects and each employment period will be counted as a work opportunity • FTE (Full Time Equivalence) : person days of work and training divided by 230 days

4

EPWP Progress against targets

• EPWP has created 630,718 work opportunities against the second quarter target of 522,760 work opportunities by the end of the 2nd quarter of the 14/15 financial year. This represents 120% of the target. The programme is on track to meet the target in terms of work opportunities for the 14/15 financial year.

• All sectors except the Community Work Programme (CWP) have achieved their Q2 target work opportunities.

• The EPWP work opportunities reported in the second quarter of

the 14/15 financial year represents 10.5% of the overall targeted 6,000,000 work opportunities in EPWP phase 3.

5

Progress to date against targets(1 April 2014 – 30 September 2014)

Work opportunities (WO) and Full Time Equivalence (FTE)

Sector

Targeted Work OppQuarter 2

Actual Work Opp reportedQuarter 2

% Progress (Work opp) Q2

Targeted FTEQuarter 2

Actual FTE reportedQuarter 2

% Progress (FTE) Q2

Infrastructure 189 578 270 450 142.66 61 819 54 832 88.70

Environment 113 825 122 163 107.33 42 257 30 345 71.81

Social 101 357 131 371 129.61 56 211 33 860 60.24

Non-State: Non-Profit Organisations

24 500 41 209 168.20 13 603 8 768 64.46

Non-State: Community Work

93 500 65 525 70.08 36 587 10 166 27.79

Total 522 760 630 718 120.65 210 476 137 971 65.55

Source: EPWP Phase 3 Targets (dated 30 April 2014)• Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same

person can be employed on different projects and each employment period will be counted as a work opportunity • FTE (Full Time Equivalence) : person days of work and training divided by 230 days

6

Overall Analysis across all sectors and spheres of government:

(Q2: 1 April 2014 – 30 September 2014)

 

Infrastructure Environmental & Culture

Non-State Social Community Work

Total

Number of projects/ sites 4 170 1 960 317 3 715 89 10 251

Work opportunities (WO) 270 450 122 163 41 209 131 371 65 525 630 718

Duration of WO

47

57

49

59

36

50

FTE 54 832 30 345 8 768 33 860 10 166 137 971

Average minimum daily wage R 120 R 109 R 71 R 80 R 82 R 102

7

EPWP Progress against annual targets

• EPWP has created 630,718 work opportunities against the annual target of 1,045,520 work opportunities by the end of the 2nd quarter of the 14/15 financial year.

• This represents 60% of the target. The programme is on track to meet the target in terms of work opportunities for the 14/15 financial year.

• All sectors apart from the Community Work Programme have reported over 50% of the targeted work opportunities.

8

Work opportunities progress against 2014-2015 targetsOverall per Sector

Sector Annual targeted work opportunities [WO](1 Apr ‘14 – 31 March ’14)

Work opportunities [WO]*(1 April 2014 – 30 Sept 2014)

No % of targeted WO

Infrastructure 379 156 270 450 71

Environment 227 650 122 163 54

Social 202 714 131 371 65

Non-Profit Organisations 49 000 41 209 84

Community Work Programme (CWP) 187 000 65 525 35

T O T A L 1 045 520 630 718 60Source: EPWP Phase 3 Targets (dated 30 April 2014)•Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same person can be employed on different projects and each employment period will be counted as a work opportunity

EPWP Phase 3 Work opportunities progress against 2014-2015 targets Overall per Sector

9

10

Work Opportunities achieved vs. shortfall per sphere of government (Overall) (1 Apr 2014 – 30 September 2014)

Municipal Provincial National Total

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

56%

88%

39%

60%

-44%-12%

-61%

-40%

% achievedShortfall

11

Full Time Equivalence (FTE) progress against 2014-2015 targetsOverall per Sector

Sector Annual targeted FTE per sector(1 Apr ’14 – 31 March ’15)

Full Time Equivalence [FTE]*(1 April 2014 – 30 Sept 2014)

No % of targeted FTE

Infrastructure 123 638 54 832 44.35

Environment 84 514 30 345 35.91

Social 112 421 33 860 30.12

Non-Profit Organisations 27 205 8 768 32.23

Community Works 73 174 10 166 13.89

TOTAL 420 952 137 971 32.78Source: EPWP Phase 3 Targets (dated 30 April 2014)Targets: * FTE : Person days of work and training reported by reporting bodies divided by 230 days

Full Time Equivalence progress against 2014-2015 targets Overall per Sector

12

13

FTEs achieved vs. shortfall per sphere of government(Overall) (1 Apr 2014 – 30 Sept 2014)

Municipal Provincial National Total

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

36%

44%

20%

33%

-64%

-56%

-80%

-67%

% achievedShortfall

14

EPWP Progress against annual targets cont’d

• EPWP has created 137,971 FTEs against the annual target of 420,952 FTEs by the end of the 2nd quarter of the 14/15 financial year.

• This represents 33% of the target. The programme is not on track to meet the target in terms of FTEs for the 14/15 financial year.

15

EPWP Progress against annual targets cont’d

• The Provincial sphere overall has achieved their second quarter targets compared to the Municipal sphere of government.

• All provinces have achieved their provincial sphere work opportunities targets.

• Only three provinces (KZN, LP and GP) municipalities have achieved 50% of their work opportunities targets by Q2.

• Other provinces are still below the 50% target.

16

Infrastructure, Environment and Culture and Social Sectors (TOTAL)

(Prov Govt Depts & Municipalities): Work opportunities against 2014-15 targets by Province

(Q2: 1 April 2014 – 30 September 2014)

Provinces Municipalities Total

Annual Target

Wk Opp Reported

% Annual Target

Wk OppReported

% Annual Target

Wk Opp Reported

%

EC 40 276 68 037 169 47 939 13 580 28 88 215 81 617 93

FS 22 385 11 950 53 20 397 7 609 37 42 782 19 559 46

GP 48 377 24 702 51 66 402 42 724 64 114 779 67 426 59

KZN 95 103 91 865 97 67 050 38 174 57 162 153 130 039 80

Lim 39 131 26 423 68 30 515 15 931 52 69 646 42 354 61

Mp 24 879 26 523 107 21 791 9 927 46 46 670 36 450 78

NC 17 339 9 642 56 9 404 2 866 30 26 743 12 508 47

NW 27 613 34 423 125 18 874 9 030 48 46 487 43 453 93

WC 31 496 20 276 64 44 481 16 753 38 75 977 37 029 49

Total 346 599 313 841 91 326 853 156 594 48 673 452 470 435 70% - Percentage of work opportunities reported against targetWk Opp Reported – Work Opportunities reported to date Source: Targets – Infra and Social sectors: EPWP Business Plan (Dated April 2014) Environment & Culture Sector: E&C Sector Plan (June 2014)

17

EPWP Progress against annual targets

• In the Infrastructure sector, the majority of provinces (6/9) have achieved 50% of their provincial sphere work opportunities targets except 3 provinces namely FS, GP and the NC.

• Only three provinces (KZN, LP and NC) municipalities have achieved 50% of their work opportunities targets by Q2. Other provinces are still below the 50% target.

• NW and GP provinces are more likely to achieve their target if more effort could me done to implement and report projects whilst EC, FS and WC are less likely to achieve their targets in this year.

18

Infrastructure Sector (TOTAL)(Prov Govt Depts & Municipalities):

Work opportunities against 2014-15 targets by Province(Q2: 1 April 2014 – 30 September 2014)

Provinces Municipalities Total

Annual Target

Wk Opp Reported % Annual

TargetWk Opp

% Annual Target

Wk Opp Reported %

Reported

EC 21 345 47 873 224 32 944 5 725 17 54 289 53 598 99FS 11 086 4 248 38 11 566 4 177 36 22 652 8 425 37GP 18 758 5 495 29 49 524 20 513 41 68 282 26 008 38

KZN46 714 58 954 126 37 305 31 881 85 84 019 90 835 108

Lim 20 345 11 212 55 19 559 9 727 50 39 904 20 939 52Mp 13 039 14 903 114 10 898 4 844 44 23 937 19 747 82NC 9 950 2 838 29 2 877 1 623 56 12 827 4 461 35

NW15 544 22 418 144 10 205 4 269 42 25 749 26 687 104

WC 11 730 7 518 64 15 767 4 363 28 27 497 11 881 43

Total 168 511 175 459 104 190 645 87 122 46 359 156 262 581 73

19

Non State Sector (TOTAL)(Non Profit Organisations and Community Work Programme):

Work opportunities against 2014-15 targets by Province(Q2: 1 April 2014 – 30 September 2014)

Provinces

Non Profit Organisations Community Work Programme

Annual Targets:

WO reported

% AchievedAnnual Targets:

WO reported

% Achieved

EC 7 500 6 384 85 19 000 9 241 49

FS 4 420 4 873 110 21 000 5 193 25

GP 2 605 2 477 95 19 500 9 937 51

KZN 7 949 8 023 101 37 000 9 817 27

Lim 8 120 6 065 75 13 000 13 234 102

Mp 4 908 5 282 108 10 500 8 360 80

NC 5 070 2 103 41 31 500 5 743 18

NW 2 738 1 826 67 19 500 4 000 21

WC 3 575 4 176 117 16 500 0 0

National* 2 775   0      

Total 49 660 41 209 83 187 500 65 525 35%

20

EPWP Progress against annual targets cont’d

• In the Non State sector (NPO), all provinces except NC have achieved 50% of their provincial work opportunities targets.

• In the CWP programme only three provinces (GP, LP and MP) have achieved 50% of their work opportunities targets by Q2. Other provinces are still below the 50% target.

21

EPWP Progress against annual targets cont’d

• In the Social sector, all provinces have achieved 50% of their provincial sphere work opportunities targets.

• Only two provinces (NW and NC) municipalities have achieved 50% of their work opportunities targets by Q2. the municipalities are less likely to achieve their targets.

22

Social Sector (TOTAL)(Prov Govt Depts & Municipalities):

Work opportunities against 2014-15 targets by Province(Q2: 1 April 2014 – 30 September 2014)

Provinces Municipalities Total Annual Target

Wk Opp Reported %

Annual Target

Wk Opp %

Annual Target

Wk Opp Reported %

EC 16 110 19 287 120 816 1 151 141 16 926 20 438 121 FS 8 634 5 967 69 437 268 61 9 071 6 235 69 GP 26 886 16 178 60 1 361 7 448 547 28 247 23 626 84 KZN 27 232 28 946 106 1 379 923 67 28 611 29 869 104 Lim 11 961 10 995 92 606 868 143 12 567 11 863 94 Mp 9 288 9 359 101 470 912 194 9 758 10 271 105 NC 4 689 4 733 101 237 38 16 4 926 4 771 97 NW 9 893 8 382 85 501 189 38 10 394 8 571 82 WC 18 232 11 206 61 923 4 521 490 19 155 15 727 82

23

EPWP Progress against annual targets cont’d

• In the Environment and Culture sector, the majority of provinces (7/9) have achieved 50% of their provincial sphere work opportunities targets except 3 provinces namely EC and KZN.

• Only two provinces (WC and NC) municipalities have not achieved 50% of their work opportunities targets by Q2. Other provinces are above the 50% target.

24

Environment and Culture Sector (TOTAL)(Prov Govt Depts & Municipalities):

Work opportunities against 2014-15 targets by Province(Q2: 1 April 2014 – 30 September 2014)

  Provincial Municipal Overall

Provinces WO targets WO reported % achieved WO targets WO

reported % achievedTotal Target

Total Reported

% Achieved

EC 2 821 877 31% 11 357 6 704 59% 14 178 7 581 53%

FS 2 665 1 735 65% 5 729 3 164 55% 8 394 4 899 58%

GP 2 733 3 029 111% 12 785 14 763 115% 15 518 17 792 115%

KZN 13 691 3 965 29% 7 209 5 370 74% 20 900 9 335 45%

LP 6 825 4 216 62% 3 525 5 336 151% 10 350 9 552 92%

MP 2 552 2 261 89% 7 871 4 171 53% 10 423 6 432 62%

NC 2 700 2 071 77% 3 590 1 205 34% 6 290 3 276 52%

NW 2 176 3 623 166% 5 992 4 572 76% 8 168 8 195 100%

WC 1 534 1 552 101% 26 257 7 869 30% 27 791 9 421 34%

Higher numbers in the north east of SA and metros

26

Spatial distribution of work opportunities 1 Apr 2014 – 30 September 2014

• Al 8 metropolitan municipalities are in the top 20 with the first 6 positions going to metros.

• Top 10 municipalities:

Mangaung Metro in 16th place with 6 901 WO

Code Munic name Prov CWP Environ Infra NPO SocialTOTAL

WO

ETH Ethekwini Metro KN   2 141 28 890 2 668 3 256 36 955

JHB City of Johannesburg Metro GP 6 392 5 782 16 795 733 5 089 34 791

BUF Buffalo City Metro EC 50 998 10 142 1 182 14 849 27 221

CPT City of Cape Town Metro WC   8 128 5 596 1 831 10 947 26 502

TSH City of Tshwane Metro GP 75 11 596 5 969 556 5 463 23 659

EKU Ekurhuleni Metro GP 20 3 323 2 007 307 8 505 14 162

MP322 Mbombela MP 2 274 2 970 3 710 2 080 1 710 12 744

EC157 King Sabata Dalindyebo EC 1 597 854 8 249 751 852 12 303

EC442 Umzimvubu EC 1 112 905 9 181 814 84 12 096

NMA Nelson Mandela Bay Metro EC   2 578 5 813 1 254 1 269 10 914

27

Work opportunities as percentage of Designated groups by Sector (April 2014 – September 2014)

Infrastructure Environmental & Culture

Social Non state Total0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

55%57%

84%

77%

65%

44%

61%

44%48% 48%

0% 1% 0%2% 1%

WomenYouthPeople with disabilities

28

EPWP Progress against designated groups targets

• Overall, the programme achieved the 55% women target. The programme achieved 46% against the 55% youth target and 1% against the people with disabilities target.

• The Environment and Culture sector, is the only sector that has achieved the 55% youth target.

• The NPO programme under the Non State sector is the only sector that has achieved the 2% target for people with disabilities.

29

Overall Average Minimum Wage per Category(April 2014 – September 2014)

17%

49%

23%

9%3%

A (< R71)B (R71 - R100)C (R101 - R150)D (R151 - R200)E (> R200)

30

EPWP Progress against Minimum daily wage

• The majority of projects reported a minimum daily wage of more than stipulated daily wage.

• Only 17% of the projects reported a daily wage that is less than R71.

• 49% of projects reported a minimum daily wage between R71 and R100 whilst 23% reported a minimum of R105 and R150 per day.

31

Average Minimum Daily Wages per Sector(April 2014 – September 2014)

A (< R71) B (R71 - R100) C (R101 - R150) D (R151 - R200) E (> R200)0

0.2

0.4

0.6

0.8

1

1.2

2%

59%

33%

3% 3%2%

43%

33%

18%

4%3%

97%

0%

43%47%

8%

2% 1%

98%

2%

Community Works (DCoG)Environmental & CultureInfrastructureNon-StateSocial

32

EPWP Progress against Minimum daily wage

• The majority of projects that reported a minimum daily wage of less than stipulated daily wage are from the social sector.

• Only a small percentage 2%, 2% and 3% were reported by the other sectors (Environment and Culture, Infrastructure and Non state sectors respectively.

33

Average Labour intensity category per Sector (April 2014 – September 2014)

A ( < 10%) B ( 11% - 29%) C (30% - 50%) D (51% - 100%) E (> 100%)0%

10%

20%

30%

40%

50%

60%

70%

80%

6% 5%7%

71%

11%

34

EPWP Expenditure per economic classification

Economic Classification

Budget Allocation 2014/15 R'000

Exp as at 30 November 2014 R'000

Exp as at 31 December 2014 R'000

Exp % as at 31 December 2014 R'000

Exp % as at 31 December 2013 (R'000

Available Budget R'000

Compensation of Employees 133 233 74 776 85 851 64% 70% 47 382

Goods and Services 136 158 73 239 83 246 61% 44% 52 912

Transfers and Subsidies 1 679 110 1 441 052 1 471 236 88% 84% 207 874

Machinery and Equipment 2 779 1 096 1 228 44% 32% 1 551

Totals 1 951 280 1 590 163 1 641 561 84% 79% 309 719

35

Notes for the Expenditure

Current payments Compensation of employees expenditure is R85.8 million and expenditure

is equivalent 64% of the total allocation for EPWP. Expenditure is within the guideline of 75%.

Goods and services expenditure is R83.2 million. Expenditure is equivalent to 61% of the total budget allocation .

Transfers and subsidies Transfers and subsidies expenditure is R1.4 billion against the budget of

R1.6 billion. The expenditure is equivalent to 88% of the total allocation. Payment for Capital Assets Machinery and equipment expenditure is R1.2 million and it is equivalent to

42% of the allocated budget of 2.7 million.

36

Expenditure per Sub-Programme

Sub Programmes

Budget Allocation 2014/15 R'000

Exp as at 30 November 2014 (R'000)

Exp as at 31 December 2014 (R'000)

Exp % as at 31 December 2014 (R'000)

Exp % as at 31 December 2013 (R'000)

Available Budget R'000

Expanded Public Works Programme 261 541 149 196 159 666 61% 56% 101 875

Performance Based Incentive Allocation 1 689 754 1 451 746 1 481 895 88% 83% 207 859

Totals 1 951 295 1 600 942 1 641 561 84% 79% 309 734

37

Transfers and Subsidies Expenditure

Economic Classification

Budget Allocation 2014/15 R'000

Exp as at 30 November 2014 (R'000)

Exp as at 31 December 2014 (R'000)

Exp % as at 31 December 2014 (R'000)

Exp % as at 31 December 2013 (R'000)

Available Budget R'000

EPWP Integrated grant to Provinces 348

947 316 990 328 123 94% 92% 20 824 EPWP Integrated grant to Municipalities

594 575 399 920 411 504 69% 63% 183 071

Social Sector EPWP incentive grant for prov

257 972 246 576 254 008 98% 93% 3 964

Households

150 85

120 80% 0% 30

Non State Sector 477

481 477 481 477 481 100% 100%

-

Totals 1 679

125 1 441 052 1 471 236 88% 82% 207 889

38

Notes to Transfers and Subsidies Expenditure

Social Sector grants – 98% of the allocation was transferred to provinces as at end of November 2014.

Integrated grant to Provinces - 94% of the allocation was transferred to provinces.

Integrated grant to Municipalities – 69% of the allocation was disbursed to municipalities.

Households – 80% expenditure has been achieved.

Non State sector – 100% of the allocation was transferred to IDT as at to date.

39

Progress on the EPWP 4th Summit

• From the 28th to 29th November 2014, the EPWP hosted the 4th EPWP Summit.

• The aim of the Summit was to ensure that EPWP implementers from

all spheres in particular the municipal sphere to ensure they

contribute to the following objectives:

Accelerate the implementation of EPWP by all implementing

bodies.

Introduce EPWP Phase 3 to all implementing bodies.

40

Progress on the EPWP 4th Summit…cont’d

Below are the resolutions taken at the summit:

All municipal protocols should be signed by the 30th June 2015.

All EPWP municipal policies should be endorsed by 30th June 2015 and the DPW will provide technical support to Municipalities in this regard.

All spheres of government should ensure that there is dedicated capacity to coordinate and implement EPWP.

EPWP district forums or similar structures should meet on a regular basis, at least quarterly.

All public bodies should continue to ensure that there is proper record management for EPWP projects and the DPW undertakes to develop an appropriate Management Information System for EPWP phase 3 by 30th June 2015.

41

Progress on the EPWP 4th Summit…cont’d All municipalities should continue to prioritise EPWP in their Integrated

Development Plans.

The principles of EPWP phase 3 should be applied during the implementation of EPWP projects.

The DPW and all lead sector departments should continue to liaise with relevant stakeholders to source funding for training and ensure that quality training is provided to EPWP beneficiaries.

The DPW and all lead sector departments should continue to provide technical support to all spheres of government to promote the implementation of the EPWP in the use of labour-intensive methods, promotion of community involvement, sustainable livelihoods, and convergence.

42

Progress on Institutionalizing the PEP - IMC

• Several engagements with the office of the Deputy President and other relevant departments have taken place to discuss the operationalising of the PEP - IMC.

• The objective of the IMC is to ensure there is synergy and integration of Public Employment Programmes across government departments.

• Proposed structure for the PEP – IMC

Deputy President of South Africa - Mr Cyril Ramaphosa will chair the Committee

Committee to meet on bi-annual basis

An Executive Committee comprising of relevant Ministers to be chaired by the Minister of Public Works

• DPW tasked to develop the TORs for the IMC which will be finalised in February 2015.

• 1st IMC meeting scheduled for March 2015

43

Challenges

• Delays in the approval of the TORs for the PEP - IMC by the office of the Deputy President

• Non attainment of person with disability and youth targets

• Non-attainment of FTEs targets – due to shorter duration of work opportunities.

• Social sector School Nutrition Programme not adhering to the minimum daily wage stipulated in the ministerial determination

• Poor reporting from the CWP

44

Measures put in place to address challenges

• DPW will be engaging the office of the Deputy President to fast track

the approval of the TORs for the PEP - IMC

• Technical support is being provided to public bodies to help them

implement their projects labour-intensively and to report effectively.

• Engagements are being held with Organisations that represent persons

with disabilities to improve their participation in EPWP.

• Engagements are being held with different programmes to enable them

adhere to the EPWP minimum wage.

• Technical improvements are planned to improve the EPWP reporting

system.

• Engagements are being held with CWP to improve reporting.

45

Thank You!