INFRASTRUCTURE SKILLS DEVELOPMENT GRANT (ISDG)

AMEU EDUCATION & TRAINING COMMITTEE

| 12 NOVEMBER 2014

OUTLINE OF THE PRESENTATION

PART I: ISDG STATUS QUO

PART II: ELECTRICAL GRADUTES and APPRENTICES

PART III: PARTICIPATION ON THE ISDG

PART IV: CHALLENGES AT IMPLEMENTATION LEVEL

PART V: NEW APPLICATIONS

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BACKGROUND

• ISDG was introduced in 2011/12 financial year with an objective to increase the pool of built environment professionals within Local Government (i.e. engineering, town planning, architecture, quantity survey and geographic information systems);

• The programme was communicated to municipalities and water boards. Interested municipalities were invited to submit 3 year business plans to the National Treasury;

• The critical factor in the business plans was for the hosts (municipalities and public entities) to demonstrate ability and capacity to implement the programme as per conditions of the ISDG framework; and

• It is a schedule 5B in terms of the DoRA and funds are directly transferred to municipalities.

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PURPOSE OF THE ISDG

• To strengthen the capacity of local government to effectively and efficiently deliver quality infrastructure, by increasing the pool of skills available in the local sphere

• To create jobs for unemployed graduates in the Built Environment

( e.g. engineering & town planning)

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GOVERNMENT RESPONSE

Three broad policy direction (amongst many) :• National Development Plan

– Building a capable state and thus skills for infrastructure delivery and management

– Strategic Infrastructure Programmes (SIPs) – relies on the existence of the technical skills

• Youth Accord– youth employment and skills development

Address the aging skills gap within the built environment and within municipalities, in particular Engineering.

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ISDG STATUS QUOPART i:

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MUNICIPALITIES IMPLEMENTING THE ISDG & NUMBER OF GRADUATES

Number of Graduates

Provinces Municipality Name Start date 2013/14 2014/15Buffalo City 2012/13 19 27Nelson Mandela Bay 2012/13 44 42Lukhanji 2012/13 8 8King Sabata Dalindyebo 2012/13 19 17Aflred Nzo 2012/13 28 28

Gauteng Westonaria 2011/12 13 13City of Johannesburg 2014/15 0 0Ethekwini 2011/12 31 37Ethekwini (Umngeni Water) 2011/12 44 44Umhlathuze 2012/13 23 20

Limpopo Polokwane (Lepelle Northern Water) 2011/12 16 17Gert Sibande 2013/14 0 12Govan Mbeki (Rand Water) 2011/12 116 116Sol Plaatjie 2012/13 15 15John Taolo Gaetsewe 2012/13 8 8

North West Ditsobotla 2012/13 22 21George 2011/12 13 14City of Cape Town 2013/14 0 7

419 446Total Number of Graduates

Eastern Cape

Kwazulu Natal

Mpumalanga

Northern Cape

Western Cape

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FUNDING ALLOCATIONS

8

2011/12

2012/12

2013/14

2014/15

39

75,460

98,500

104,425

Allocations (Million)

Allocation (Million)

*Funds are directly allocated and transfarred to municipalities* Allocations are published in the Division of Revenue Act* Conditional grant to municipalities*Payment to municipalities made according to the payment schedule* Allocation of funds depends of funding availability in the fiscus

PART II: ELECTRICAL GRADUTES AND APPRENTICES

PART ii:

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NUMBER OF ELECTRICAL GRADUATES and APPRENTICES

A total of 74 Electrical engineering trainees, there has been an increase compared to 38 trainees that were reported in February 2014.

• 2 Engineers (ECSA)• 4 Technologists (ECSA)• 31 Technicians (ECSA)• 37 Apprentices (SETA)

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31

37

Engineers

Techhnologists

Technicians

Apprentices

TRAINING PER MUNICIPALITY

11

Buffalo City

Ethek

wini

Govan M

beki

KSD

Lukh

anji

Nelson M

adela

Bay

Sol P

laatjie

uMhlathuze

Ditsobotla

Polokwan

e

West

onaria

George

0

2

4

6

8

10

12

14

3

4

3

4

1

11

1 1

3

1 1

9

13

5

8

22

1 1

Technicians

Technologist

Engineers

Electricians

PARTICIPATION ON THE ISDG 14

PART iii:

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ISDG PARTICIPATION PROCESS

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• Interested Municipalities must submit a 3 year business plan to the National Treasury by no later than 28 August of every year (as contained in the DoRA);

• National Treasury asses the Business Plan;• Municipalities are notified of the evaluation outcome in writing; and • Funds allocated to municipalities is gazatted.

SELECTION CRITERIA

1. Capacity to implement the ISDG Programme: • A Municipality must have engineer(s) and/or technician(s) with the

capacity to supervise graduates and assign tasks• Human Resources: structure associated with the management of the

ISDG

ISDG SELECTION CRITERIA (the business plan)

2. Budgeting (3 year indicative budget):• Registration Costs• Cost of Business Tools and Equipment• Training Courses• Remuneration costs • Quality assurance

3. Understanding of the road- to- registration: • Municipality to demonstrate an understanding of the road-to-

registration process and candidate training

4. Implementation of the ISDG Programme• Road-to-registration• Statutory bodies/councils• Mentors and Supervisors• ISDG Champion / Coordinator

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ISDG IMPLEMENTATION

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• Municipalities must recruit unemployed graduates in possession of University Degree or National Diploma within the built environment;

• Municipalities are to register graduates as candidates for professional registration with statutory councils;

• Graduates are expected to be trained according to structured training plans as per the requirements of the statutory councils; and

• Training of graduates takes place in municipalities.

• Graduates must be assigned to:• supervisors who are responsible managing graduates on daily

activities; and• mentors for mentoring and coaching as well as signing of log books

as required by the statutory councils.

CHALLENGES AT IMPLEMENTATION LEVEL14

PART iV:

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CHALLENGES AT IMPLEMENTATION LEVEL

• Delays in registering graduates as candidates in some municipalities;• Training plans not fully in place in some municipalities;• No adequate technical works in some municipalities for graduate

exposure;• Some municipalities are struggling to find mentors for graduates

(George, Distobotla, Westonaria);• The majority of roll over not approved because the ISDG is an

operational grant and the fact that municipalities did not submit all the supporting documents. The only ones approved are Nelson Mandela, City of Cape Town and George; and

• Training duration requires to be extended to more than 3 years, the main challenge is that some municipalities are unable to submit a clear recovery plan on how to make up for the lost time.

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NEW APPLICATIONS

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PART V:

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NEW APPLICATINS FOR 2015/16

Municipalities below submitted business plans, below is the number of electrical engineering graduates indicated on their business plans. (These are not yet approved)• Newcastle Municipality- 9 graduates• Elundini – 1 graduate• Ehlanzeni- 1graduate• Engcobo- 1 graduates

Other municipalities that demonstrated interest but did not submit business plans are Mangaung and Vhembe.

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THANK YOU