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09 November 2012

Department of Public Works Presentation to the Standing Committee on Appropriations

on the Programme Performance for the 2012/13

financial year

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Purpose of the Presentation

To provide information on:Expanded Public Works Programme job opportunities created.Job opportunities achievement by the provinces.Number of youth participating in the National Youth Service programme.Under spending of R212 million declared as saving.Number of municipalities reporting on Expanded Public Works Programme..

Expanded Public Works Programme

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Overall Annual Targets (5 Years) per financial year

Financial YearEPWP annual work opportunity targets

EPWP work opportunities created

2009/10 550,000 625, 859

2010/11 642,000 643,116

2011/12 868,000 843,459

2012/13 1,210,000 350,068*

2013/14 1,650,000

Total4,920,000

2,462,502Source: Business Plan (dated January 2009)•Work Opportunities : number of individuals reported to have been employed on an EPWP project

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Discussion The EPWP Phase 2 targets are 4,920,000 work

opportunities cumulatively.

The annual target for 2009/10 was 550,000 work opportunities.

The work opportunities targets for this current financial year (2012/13) is 1,210,000.

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Progress to date against 5 Year targets Work opportunities (WO)

SectorTargeted Work Opp

Work Opp

(1 Apr ‘09 – 30 Jun ’12)

% Progress (Work opp)

Infrastructure 2,374,000 1,091,226 45.97

Environment 1,156,000 462,352 40.00

Social 750,000 552,204 73.63

Non-State: Non-Profit Organisations

256,000 99,629 38.92

Non-State: Community Works

384,000 257,091 66.95

Total 4,920,000 2,462,502 50.05

Source: Business Plan (dated January 2009)•Work Opportunities : number of individuals reported to have been employed on an EPWP project

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The EPWP has achieved 2,462,502 work opportunities between April 2009 to June 2012.

Overall, the programme has achieved 50.05% work opportunities towards the 5 year target of 4,920,000 work opportunities.

Discussion

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Progress to date against targets to date (1 April 2009 – 30 June 2012)

Work opportunities (WO)

Source: Business Plan (dated January 2009)

Year Target Achieved % Achieved

Year 1: (09-11)* 550,000 625,859 114%

Year 2: (10-11) 642,000 643,116 100%

Year 3: (11-12) 868,000 843,459 97%

Year 4: (12-13)* 1,210,000 350,068 29%

Year 5: (13-14)* 1,650,000 N/A N/A

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From the beginning of Phase 2 to the end of the first quarter 2012/13 (April 2009-June 2012), the programme was supposed to achieve a target of 2,362,500 work opportunities.

Between April 2009 and June 2012 the EPWP has achieved 2,462,502 work opportunities which is 104% of the set target.

The programme is on track in achieving its set targets of creating 4,920,000 million work opportunities.

Discussion

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Annual Performance Plan EPWP targets - Cumulative

Annual Target Q1 Q2 Q3 Q4 Total Number of work opportunities created through EPWP 1,210,000 302,500 500,000 800,000 1,210,000

Number of youth participating in the NYS 3,500 1,200 1,500 2,500 3,500 Number of EPWP work opportunities created on provincial access roads 130,000 40,000 80,000 100,000 130,000 Number of municipalities reporting on the EPWP targets 260 120 180 200 260

Quarterly Targets

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The DPW Annual Performance Plan (APP) included indicators for the EPWP.

The indicators were the following: Total number of work opportunities created through EPWP Total number of EPWP opportunities created on provincial

access roads Number of youth participating in the NYS Number of municipalities reporting on the EPWP targets

Annual and quarterly targets were set per indicator.

Annual targets are targets that the programme has to achieve by the end of the financial year.

Discussion

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The Annual target (2012/13 financial year) for work opportunities created through EPWP is 1,210,000.

In Q1 (April-June 12) the programme was supposed to achieve 302,500 work opportunities.

The programme in Q1 exceeded the planned target of 302,500 achieving 350,068 work opportunities.

This represents 29% achievement towards the annual target and 116% of the quarterly target.

Discussion

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Work opportunities created on Provincial Access Roads vs Quarterly targets

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The annual target for the EPWP work opportunities

created through provincial access roads is 130,000.

The Q1 target for the provincial access road was

32,500 work opportunities.

The programme created 78,130 EPWP work

opportunities through provincial roads.

The programme achieved 240% of the quarterly

target which relates to 60% of the annual target of

130,000 work opportunities.

Discussion

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Number of Municipalities Reporting to EPWP vs targets

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The total number of municipalities in South Africa

are 278

The annual target for number of municipalities

reporting on EPWP targets is 260 municipalities.

In Q1, 120 municipalities were expected to report

on the EPWP targets.

A total of 204 municipalities reported EPWP targets

against the planned 120 municipalities.

Discussion

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National Youth Service Progress against targets

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The annual target for number of youth participating in the NYS is 3,500.

In Q1, a target of 1,200 youth to participate in the NYS was set.

The programme did not achieve its target. A total of 660 youth participated in the NYS programme.

This was due to the delay in awarding infrastructure projects.

The programme continues in engaging with projects to ensure that projects are awarded on time.

Discussion

Infrastructure Budget

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Infrastructure budget allocation

Original allocation

Reduced allocation

Difference

Declared

Reprioritized

Departmental

288,000,000202,085,96

4 85,914,036 85,914,036Accessibility 28,000,000 23,556,036 4,443,964 4,443,964Dolomite 71,000,000 62,600,000 8,400,000 8,400,000

LPOE

475,000,000

277,100,00

0197,900,00

0102,000,0

00 95,900,000LPOE (Home Affairs)

110,000,000 0

110,000,000

110,000,000 0

Inner City Regeneration

189,000,000

160,000,00

0 29,000,000 29,000,000Prestige Projects including Special & Major

323,742,000

274,400,00

0 49,342,000 49,342,000

TOTAL

1,484,742,000

999,742,000

485,000,000

212,000,000 273,000,000

Analysis reprioritisation for current financial year

• Different sub-programmes: (R 375 million)– Funds have been identified against various programmes

which will not be spent during the 2012/13 financial year.– This is due to the current capacity problems faced by the

Department as well as projects not spending as expected– It is in the best interest of the department to reprioritise

funding to built capacity and resources to effectively implement the Turn around strategy

• Home Affairs (R 110 million ring-fenced)– Capital Infrastructure projects were not identified and agreed

to in time to spend funds before the end of the financial year– This amount is ring-fenced and cannot be reprioritised, but

will be given back to National Treasury

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Thank you