EASTERN CAPE CONSTRUCTION SUMMIT PRESENTATION: BY THE DEPARTMENT OF ROADS AND PUBLIC WORKS – EASTERN CAPE PROVINCIAL ADMINISTRATION 1

1

EASTERN CAPE CONSTRUCTION SUMMIT PRESENTATION: BY THE DEPARTMENT OF ROADS AND PUBLIC WORKS – EASTERN CAPE PROVINCIAL ADMINISTRATION

2

Please note : there are two Departments of Public Works operating in the Province namely: The National Department of Public Works who is responsible for National Assets falling under;• Department of Defense and Military Veterans• Department of Correctional Services• Auditor General• Department of Statistics• Department of Constitutional Development• Department of Welfare (SASSA ) (NAT)• Department of Environmental Affairs (NAT)• Department of Finance (NAT)• Department of Foreign Affairs• Department of Home Affairs• Department of Justice• Department of Labour• Department of Land Affairs• Department of Mineral and Energy• Department of Public Works (NAT)• Department of Police• Department of Revenue (SARS)• Department of Water Affairs and Forestry• Department of National Prosecuting Authority• Department of Health (NAT)• Department of Education (NAT)• Department of Transport (NAT)

3

The Provincial Department of Roads and Public Works who is responsible for all Provincial Assets falling under:• The Department of Education• The Department of Health• The Department of Social Development• The Department of Rural Development and Agrarian Reform• The Department of Safety and Liaison• The Department of Human Settlement• The Department of Local Government and Traditional Affairs• The Department of Roads and Public Works• The Department of Economic Development Environmental Affairs and Tourism• The Department of Sports Recreation Arts and Culture• Provincial Treasury• The Department of Transport• Office of the Premier

4

DRPW’s MANDATE• The Eastern Cape Provincial Department of Roads and Public Works is the Custodian of all provincial

immovable property acquired , owned or held by the Eastern Cape Provincial Government, or which vests in the Provincial Government and which property falls in the portfolio of the Department of Roads and Public Works and is occupied or used by the different Eastern Cape Provincial Government Departments;

• The Eastern Cape Provincial Department of Roads and Public Works, as custodian, is required to manage the immovable assets in its portfolio in accordance with the framework provided by, amongst others, the Government Immovable Asset Management Act, 1 of 1999; (GIAMA) and the Public Finance Management Act, 1 of 1999 (PFMA)

• The Eastern Cape Provincial Department of Roads and Public Works has the responsibility to consolidate all laws pertaining to provincial roads in the Province of the Eastern Cape; to provide for the planning, design, development, construction, financing, management, control, maintenance, protection and rehabilitation of provincial roads in the Province of the Eastern Cape; and to provide for matters connected therewith.

OUR BUDGET ALLOCATION• The Departments budget allocation for the 2015/16 financial year is R4 251 billion which is allocated as

follows:Programme 1 Corporate Service R 461 496Programme 2 Public Works Infrastructure R1 258 649Programme 3 Roads R2 038 840Programme 4 EPWP R 492 319

Total R4 251 304

5

6

REGIONAL SPLIT OF EASTERN CAPE PROVINCE PER KM² - TOTAL AREA 169 084 KM²

Sarah Baartman +

Metro60 277 Km²

36%

Chris Hani36 244 Km²

22%

Joe Gqabi25 668 Km²

15%

OR Tambo15 986 Km²

9%

Alfred Nzo6 864 Km²

4%

Amathole24 045 Km

14%

7

POPULATION SPLIT IN THE EASTERN PROVINCE

8

THIRD BIGGEST POPULATION EQUITABLE SHARE SHOULD BE AS FOLLOWS:

1. OR Tambo 29%2. Amatole 25%3. Sarah Baartman and Metro 23%4. Chris Hani 11%5. Alfred Nzo 7%6. Joe Gqabi 5%We do not believe the Sarah Baartman Region gets its equitable share of the Provincial budget.This is due to huge backlogs in the former homelands

9

HOW DO WE OPERATE

DRPW’s core functions are:1. The maintenance of the Provincial Asset Register (10 088 DRPW Assets, 10 765 Human Settlements Assets and 700 SDF on Municipal land = 21 553 Assets in total)2. Disposal and Acquisition of Immovable Assets3. Responsible for the payment of property taxes for all Provincial Assets (10 765)4. Responsible for the provisioning of office space and the maintenance of same

(rehabilitation of existing buildings, construction of new office space or rented office space) for all Provincial Departments (376 371 m² of office space or 655 facilities )

5. Responsible for the maintenance and administration of Provincial housing stock (570 in total)

6. Gardening and landscaping services at Provincial office buildings7. Cleaning and clearing of vacant land belonging to the Province (vacant erven)8. Responsible to find alternative uses for core function facilities given back to

DRPW

10

9. Act as the preferred implementing agent for the 13 Provincial Departments•Education - (Schools, Hostels ECDC Centers e.t.c) (6891 schools in total)•DRPW – Office Buildings, Road Camps, Depots and Workshops) •Social Development: (POS, LASO , MPC, e.t.c)•Health (share implementing agency responsibility with CDC) – 145 Hospitals and

697 Clinics•Sport Recreation Arts and Culture - (Libraries, Opera Houses , Museums, Cultural

Centers e.t.c)•Transport - (Government Garages, Weigh Bridges , Vehicle Testing Centers e.t.c)•Local Government and Traditional Affairs (Traditional Courts)•For other small Departments, namely Human Settlements, Agrarian Affairs, Safety

and Liaison, OTP, Provincial Treasury and Economic Affairs- we only provide office accommodation (East Cape Parks Board deals with facilities pertaining to nature conservation)

• The total value of the Province’s building stock is estimated to be R19,5 billion 10. Maintenance and construction of Provincial Road Network (41 316km) 11. Expanded Public Works Programmes

11

It should be noted that implementing agency work for Client Departments is done with funds provided by the relevant Client Department, we merely facilitate with the appointment of consultants, the planning and estimating process, the compilation of the tender documents, the procurement process and the contract supervision and quality control as well as the settlement of final accounts (Project Management function)

12

LOCALITY OF ALL SCHOOLS IN THE EASTERN CAPE

13

JOB OPPORTUNITIES AVAILABLE FROM OUR INFRASTRUCTURE AND PROPERTY MANAGEMENT BRANCHESWe implement projects as follows:• Ourselves - outsourced• Ourselves - In-house• Use implementing Agents to supplement our capacity i.e

CDC (Schools, Hospitals and Roads)IDT (Schools and Roads)ASIDI (Schools, replacements of mud schools )Petro SA (Social responsibility)School Governing Bodies (Schools)Amatole Water Board (School sanitation)Donars (All)SANRAL (Roads)

In all cases where DRPW do not implement projects ourselves we still approve plans, do quality control, issue completion certificates, and capitalize costs against facility on Asset Register and acquire and archive as built drawings

14

The above projects are implemented through • Normal tender process (all grades) depending on estimates• Term Tenders

Electrical repairsPlumbing repairsAir conditioning repairsSmall general repairsServicing of fire fighting appliancesGardening and landscapingCleaning of vacant ervenArea wide road maintenance contracts (In various forms and combinations)

• Quotations (projects under R500 000 .00)

15

BUILDING INFRASTRUCTURE AND PROPRTY MANAGEMENT (PROGRAMME 2)This Programme has a budget of R1, 259m, the breakdown of which is as follows;1) Building maintenance R186m2) Capital works (District Office Development) R260m3) Rented Office space R144m4) Camp and Depot renovations R85m5) Property rates and taxes and property rental R446m6) COE R138mOver and above our own projects we implement projects for Client Department s and utilize their budgets i.e1. Education R1, 823bn2. Health R1, 200bn3. Social Development R51m4. Sports Recreation Arts and Culture R55m5. Other ± R70mTotal R 3, 199bnTotal built infrastructure for the Province (Roads excluded)± R4, 3bnIf you add Roads R5,9bn

16

1. Leased149,240 m²

2. State Owned227,131

m²

Office Portfolio's Ownership Distribution

17

The chart below depicts the distribution of the ownership of office facilities.

User Department Number Of Facilities Total Office Space (m²) Other Facility Space (m²)

All 8 089 373 165 9 320 265

Eastern Cape Provincial Treasury 9 12 541 -

Economic Development and Environmental Affairs

12 16 429 -

Education 6 022 69 336 6 269 732

Health 842 22 195 2 677 352

Human Settlements 7 14 006 -

Legislature 46 2 987 4 718

Local Government and Traditional Affairs 14 14 853 4 852

Office Of The Premier 13 10 070 -

Roads and Public Works 96 29 391 136 903

Roads and Public Works - Investment 75 22 921 32 662

Roads and Public Works - Residential 570 - 97 868

Rural Development and Agrarian Reform 205 43 821 16 476

Safety and Liaison 7 2 534 -

Social Development and Special Programmes

130 55 679 49 237

Sports, Recreation, Arts and Culture 13 10 811 100

Transport 28 45 592 30 365

.

18

The diagram below provides the current state of the functional performance of the Department’s property portfolio followed by the description of the required actions for the portfolio

.

19

Explanation of the ratings is as follows:

.

Condition rating Meaning

C5 (excellent) The facility has no defects. It is in as-new condition and appearance.

C4 (good) The facility has minor defects. There is some superficial wear and tear. There is some deterioration to finishes. Major maintenance is not required.

C3 (fair) The facility is in a generally acceptable condition. There are some significant defects. Some worn finishes require maintenance. Some services are functional but need attention. Some maintenance work needs to be done.

C2 (poor) The facility is badly deteriorated to the point that it is no longer in an acceptable condition. There are potential structural problems. The facility has an inferior appearance. There are some major defects. Components fail frequently.

C1 (very poor) The facility has failed. Some parts are not operational or are unfit for occupancy or normal use.

20

SOME SCHOOLS UNDER PLANNING IN THE SARAH BAARTMAN REGION THAT WILL GO TO TENDER LATE 2015/16

.

NO DISTRICT PROJECT NAME ESTIMATE

NEW/REPLACEMENT SCHOOLS

1. Graaff Reinet Lingcom PS R33m

2. Grahamstown Grahamstown PS R18m

3. Uitenhage Clarkson PS R70m

4. Uitenhage Andrieskraal HS R80m

5. Uitenhage Stormsrivier P.S. R31m

6. Grahamstown Bhongweni Public Farm School (R+R)

R14m

7. Port Elizabeth Bethelsdorp Comprehensive School (R+R)

R76m

8. Port Elizabeth David Livingstone SSS (R+R) R23m

9. Graaff Reinet Asherville PS (R+R) R30m

10. Port Elizabeth Mfesane P.S (R+R) R42m

21

PROGRAMME 3- ROADS OUTLINE• Budget allocation (2015/16) – R2 038 840m• Road Infrastructure breakdown• Provincial Surfaced Roads• Provincial Unsurfaced Roads• Current costs• Backlogs

– Capital– Maintenance

• Funding allocation vs. backlog demand

22

BUDGET ALLOCATION/REGION (2015/16)• Alfred Nzo = R325 395m• Amathole = R182 601m• Chris Hani = R237 293m• Joe Gqabi = R159 376m• OR Tambo = R252 814m• Sarah Baartman = R169 394m• Various = R 270 315m• COE and Mechanical/Plant = R440 652m Total = R2 038 840m

23

CURRENT PLANNED PROJECTS (MAINTENANCE)• CURRENT PLANNED PROJECTS (IMPLEMENTED BY SANRAL)

No. Description Estimate Start Date Duration

1 Bramlin I/C to Saltpans (Coega)

R115,082 May 2015 18 months

2 Komgha River to Grahamstown

R15,000

3 Komga I/S to Kei River

R17,550

4 Mzeke River to Mt Frere

R49,475 Feb 2015 11 months

5 Norvals to Venterstad

R33,623

6 Venterstad to km 33

R29,001 May 2015 12 months

24

PREIODIC MAINTENANCE PROJECTS (IMPLEMENTED BY SANRAL)


7 Barkly East to Elliot

R59,254 Aug 2015 20 months

8 R61/2 Elinus - Cradock

R60,400

9 R61; N6 - Cofimvaba

R54,550

10 Cookhouse to Somerset East R63

R20,428

11 Bruintjies Hoogte – Somerset East

R39,027

25

PERIODIC MAINTENANCE PROJECTS (IMPLEMENTED BY SANRAL)


12 Bedford – Adelaide

R34,449

13 Alice to KWT R77,694

14 R67: GHT – Fort Beaufort

R76,557

15 Seymore - Whittlesea

R41,243 May 2015 8 months

16 Whittlesea - Queenstown

R40,430 May 2015 12 months

17 Reseal Keiskamma Pass

R11,300

TOTAL R775,062

26

• SPECIAL MAINTENANCE PROJECTS (IMPLEMENTED BY SANRAL)


1 Toleni to Ibika R62,350 Sept 2015 8 months

2 Special Maintenance (R56 Indwe to Maclear)

R91,500 Aug 2015 24 months

3 Draairivier - Elinus R73,217 Jan 2015 12 months

4 Cradock - Tarkastad

R91,800 April 2015 15 months

5 R75 Uitenhage Slope Stabiliza

R33,623

TOTAL R372,132

27

• CURRENT PLANNED STRENGHTING/ REHABILITATIONPROJECTS(IMPLEMENTED BY SANRAL)No. Description Estimate Start Date Duration

1 Tetyana – Sitebe Komkulu

R68,719 Aug 2015 24 months

2 Mt Frere – Ngcweleni River

R11,694 Aug 2011 Apr 2015

3 Middelburg – Carlton Heights

R111,002 Apr 2015 40 months

4 Baziya - Mthatha R102,633 Mar 2015 40 months

5 Majola Tea - Tombo

R166,493 Jan 2015 36 months

TOTAL R460,541

28

• CURRENT PLANNED IMPROVEMENT/UPGRADE PROJECTS (IPLEMENTED BY SANRAL)


1 Phase 1: GHT – Fish River Pass

R135,069 Apr 2015 27 months

2 Riet River – Tarka Bridge

R159,913 Jan 2015 24 months

3 Tsojana (km 7) – Qumanco (42,18)

R22,356 Jan 2016 28 months

4 All Saints - Baziya R114,754 Nov 2014 30 months

5 Port Alfred – Fish River

R172,039 Feb 2015 42 months

6 Qumanco – Ngcobo Ph 2

R44,108 Nov 2015 28 months

TOTAL R648,239

GRAND TOTAL R2 255,974

29

• CURRENT PLANNED CONSTRUCTION PROJECTS (IMPLEMENTED BY SANRAL)

No. Description Estimate Start Date Comment

1 T125 Phase 2: N2 – Siphetu Hospital

R80,000 Letter of Award issued

2 R61: Bizana – Port Edward (Magusheni – Mzamba)

R120,000 IBAC – To be awarded in March 2015

3 Tombo – Mpamba/ Isilimela Hospital (Ph 1)

R39,000 58% Progress

4 Tombo – Mpamba/ Isilimela Hospital (Ph 2)

R14,169

30


5 Willowvale – Dwesa Nature Reserve

R25,010 To BEC this week; contractor to start in May 2015

6 MR0700 Upgrade R15,000

7 DR8376 Sabalele R41,529

8 Ugie Location Road

R40,000 Completion Certificate issued

9 Centane – Kei Mouth and Qholorha (Ph2)

R30,000 IBAC – To be awarded in March 2015

10 Bhisho Revitalization Ph2

R18,000 Tender Evaluation Stage

31


11 Lusikisiki Urban Renewal

R38,169 85% progress

12 Nkantolo Road R30,000 Design in final stages

13 Cedarville - Mvenyane

R22,133 Tender doc stage

14 Lady Frere – Queenstown Rehab (Ph2)

R59,931

15 Musong Road R19,900 Tender closes 31/03/2015

TOTAL R592,841

32

• IN-HOUSE CONSTRUCTION PROJECTS


1 Coffee Bay – Zithulele Hospital

R16,767

2 Madwaleni Hospital Road

R20,000

3 N6 - Wriggleswade R15,000

4 Cofimvaba – Asketon

R15,000 Contractor to start in 2015/16

5 Lady Frere – Mkhapusi/Macubeni

R15,000 Contractor to start in 2015/16

TOTAL R81,767

33

CURRENT PLANNED MAINTENANCE AND REPAIRS PROJECTS (Gravel Roads


1 Routine Roads Maintenance

R185,138

2 Disaster Response R126,730

3 Lower Nxaxa Access Road

R12,000 Contractor on site since last week – 9 months

4 Stutterheim – Tsomo

R7,000 Contract signed last week – 3 months

5 Regravelling Programme

R110,089 Mlamli Hospital to DR08610 – BAC this week

TOTAL R440,957

34

• MAINTENANCE AND REPAIRS PROJECTS (SLAs)


1 RMC - Routine Maintenance Contracts

R112,440

2 Reseals R36,726

TOTAL R149,166

35

• MAINTENANCE AND REPAIRS PROJECTS (SLAs)


1 SLA NMBMM R5,000

2 SLA CHDM R27,000

3 SLA JGDM R34,000

4 SLA Elundini R7,000

5 Regravelling Programme

R4,000

TOTAL R70,000

36

37

BREAKDOWN OF ALL EC RAOD INFRASTRUCTURE

District/ metro

Road Lengths National Roads Provincial Roads Municipal

Roads Total

Surfaced Surfaced Unsurfaced Surfaced & Unsurfaced Length (km)

Alfred Nzo 170.68 217.90 1,750.40 3,598.22 5,737.21Amathole 641.16 470.57 6,154.73 5,394.61 12,661.07Cacadu 1473.74 1016.51 11,276.44 1,875.79 15,642.48Chris Hani 995.33 545.38 7,899.62 5,830.40 15,270.73Joe Gqabi 655.56 413.36 6,659.10 1,739.84 9,467.86OR Tambo 276.69 470.56 2,038.41 6,760.77 9,546.42BCMM 270.71 441.77 969.04 2,848.08 4,529.59NMBM 254.94 647.77 344.21 3,233.80 4,480.70Eastern Cape Total 4,738.80 4,223.81 37,091.95 31,281.50 77,336.06

38

PER DISTRICT PROVINCIAL RAOD NETWORK BREAKDOWNS

39

PROVINCIAL ROADS INFRASTRUCTURE ASSETS

No.Description of Infrastructure Asset

Unit QuantityAverage Age(Years)

Current Depreciated ValueR (bn)

Estimated Replacement ValueR (bn)

1 Roads – sealed Km 4,224 km 40 R 22.737 R 38.7262 Roads – unsealed Km 37,522 km 50 R 3.728 R 11.2553 Depots / Camps No. 134 20 n.d. R 0,34 Bridges No 1181 40 R 1.47 R 2.945 Major Culverts No 1733 25 R 0.187 R 0.334

Replacement value – depreciated value = R 24.9 billion = one measurement of the road maintenance backlog

40

SURFACED ROAD NETWORK CONDITION 2014

R16 billion maintenance backlog for provincial surfaced roads

41

HISTORICAL COMPARISON SURFACED ROADS

42

Comparison to other Provinces

0% 20% 40% 60% 80% 100%

SANRAL

EASTERN CAPE

FREESTATE

GAUTENG

KWAZULU NATAL

LIMPOPO

MPUMALANGA

NORTHERN CAPE

NORTH WEST

WESTERN CAPE

Percentage of Network

Auth

ority

Very Poor (km)

Poor (km)

Fair (km)

Good (km)

Very Good (km)

Eastern Cape’s surfaced network is in the 6th worst condition of the 9 Provinces

43

GRAVEL NETWORK CONDITION 2012

- R 7.5 billion maintenance backlog for provincial gravel roads

44

GRAVEL ROAD CONDITION HISTORICAL COMPARISON

- Next round of inspections just started (3 year cycle)- Minor roads = proclaimed “public right of way” across private

farms to ensure access to farms not served directly by public roads. Limited maintenance done by DRPW

2008/09 excl Minor 2012 excl Minor 2012 incl Minor0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Unsurfaced road condition comparison

Very GoodGoodFairPoorVery Poor

45

COMPARISON TO OTHER PROVINCES

- Eastern Cape’s gravel network condition is the poorest condition of all 9 provinces

46

COMBINED ROAD CONDITION MAP

47

• Costs vary considerably from project to project due to a number of factors including topography, geology, climate, location and specifications. But for very approximate estimation the following can be used

• Regravelling = R350,000/km• Grading /blading = R3 000/km• Construction of new gravel roads = R800 000 /km• Fog spray = R150 000/ km• Reseal = R1 000,000/km• Upgrading to surfaced standard = R10 million/km (low-volume)

= R18 million/km (conventional)• Surfaced roads maintenance costs

– Routine Maintenance = R35 000/km/year – EC Provincial surfaced network requirement = R498 million/annum– Re-seal requiment = R425million/annum

• Unsurfaced roads maintenance costs– Routine Maintenance = R11,000 (Arid) to R 13,000 (humid) /year/lane-km

(R450m/annum)– Periodic Maintenance = R 31,250 (Arid) to R 50,000 (humid) /year/lane-km (R1,

525b/annum)– EC Provincial unsurfaced network requirement = (R1, 975b/annum)

CURRENT ROAD COSTS

48

• Due to our extensive apartheid homeland legacy EC has the lowest per capita investment in infrastructure (fixed capital stock) in the Country.

• This is particularly evident in our provincial road network where only 14% of provincial roads (excluding minor roads) are surfaced compared to the average of 26% for the entire country. ( NC- 14% FS-23%, NW-25%, KZN-25%, LP-34%, WC-37%, MP-38% & GP-75%).

• This amounts to a backlog of over 3,000km of provincial surfaced roads• Similarly EC has a backlog of several hundred major culverts and bridges to replace severely

undersized and dangerous drifts, low-level causeways and undersized culverts and bridges. • The DRPW has quantified the capital backlog for Provincial Roads which includes:

– Over 1,000 km of Gravel roads carrying high to very high traffic volumes that should ideally be immediately upgraded to surface roads = R18 billion capital backlog

– A further 2,000 km of Gravel roads carrying medium to high traffic volumes that also serve a significant strategic function and thus should be surfaced= R 30 billion capital backlog

– Several hundred undersized bridges, culverts and drifts that are cut off during major rain events = R 1 billion capital backlog

– Approx. 300 km of provincial surfaced roads requiring heavy rehabilitation and 900km of provincial surfaced roads requiring light rehabilitation = over R1.5 billion capital backlog

– Approx. 9,000 km of provincial gravel roads with poor drainage, often as a result of the road having been worn down to below natural ground level and thus requiring extensive rehabilitation or reconstruction as a gravel road= estimated at over R5 billion capital backlog

• Estimated provincial road infrastructure capital backlog = over R56 billion

CAPITAL BACKLOGS

49

•Provincial R25 billiSummary

R Eastern Cape provincial road network backlogs

BACKLOGS Provincial Roads Maintenance backlogs R25 billionRoads Capital backlogs R 55.5 billionTotal Backlog R 80.5 billion

FUNDING SHORTFALLS Provincial Roads Maintenance funding requirement

R 3.2 billion p.a.

Roads Maintenance current funding R 1.0 billion p.a. (31.25%)

Maintenance funding Shortfalls R 2.2 billion p.a.

Roads Capital funding requirement R3.4 billion p.a.

Current Roads Capital funding R 0.7 billion p.a. (20.5%)

Capital funding shortfalls R 2.7 billion p.a. Total current funding shortfall R 4.9 billion p.a.

Funding shortfall to address current backlogs over an 8 year (gravel) to 16 year (surfaced) timeframe

50

NATIONAL FUNDING SHORTFALL

1. Recent Budget vs Allocation calculation by SANRAL2. Figures exclude upgrading and improvement needs3. To close the above gap using the fuel levy, will require

an additional R2.15 per litre of fuel (Current Fuel Levy R2.245/l for petrol and R2.095/l for diesel)

51

•Provincial R25

• The Eastern Cape has an extensive provincial road network– The average state of the Surfaced network is “Fair”– The average state of the Gravel network is “Poor”– The historical trend of average road condition is downwards

• The Eastern Cape provincial road network has an extensive backlog of both Capital and Maintenance needs

• Current Funding levels through both National Treasury (Provincial Road Maintenance Grant) and Provincial Treasury (Equitable Share allocation) are inadequate

CONCLUSION

52

1) APTCoD Programme – Accelerated Professional and Trade Competency Development

The aim of this Programme is to help prospective artisans to pass a trade test – We currently have 677 trainees in this Programme and during the past financial year (2014/15) 81 trainee obtained their trade test certificates.

This Programme also assist young professionals to obtain registration with their respective professional bodies by placing them under supervision of Professional Mentors

2) EPWP Labour Intensive Job Creation Programme The aim of this Programme is to encourage Municipalities and other public bodies

to create their own labour intensive projects (i.e-paving projects e.t.c) and to register same with National Public Works. These organs of State receive a monitory incentive for successfully completing such projects. We as the Provincial Department of Roads and Public Works report on project performance progress on two National Systems namely:

M.I.S – (Management Information System)I.R.S - (Integrated Reporting System)

INITIATIVES OF THE EXPANDED PUBLIC WORKS BRANCH(PROGRAMME 4) EPWP)

53

Which provide clear indicators as to the number of work opportunities created quarterly. During the past finance year this Programme created 138 626 work opportunities

Provincially which is equated to 40 454 FTE’s (Full Time Equivalent) which is 230 days of work /year)

3) Household Contractor Programme – (HHC)Through this Programme DRPW appoints women headed households to do periodic maintenance on Provincial roads and general maintenance within Municipal boundaries • The HHC are paid through the SA Post Office with whom we have a SLA and they only

work 8 days per month (pay R616.00/month)• Currently the Province employs 45, 500 Household Contractors monthly whom we

provide with protective clothing, tools and equipment• We have placed these Household Contractors under supervision of Emerging

Contractors residing in each of our Municipal areas4) Construction Industry Development ProgrammeThis Programme is responsible for: • Registration of Contractors on the CIDB data base• Assist Contractors to upgrade their CIDB grading• Creation of a database for SMME Contractors which SMME’s are used by us for simple

Ad-hoc maintenance tasks with values below R30 000.00/case (rotational process)• Assist our SCMU with the registration of Supplies on the Provincial Central Supplier

Database which is maintained by Provincial Treasury

54

5) Community Development ProgrammeThe aim of this Programme is to establish sustainable co-ops who can do meaningful construction work, for example in the Blue Crane Municipal area (Somerset East), we have purchased block making machines and have registered a co-op who manufactures pavers and kerbs and has upgraded most of the Municipal sidewalks in town. This co-op also undertakes private work for their own account• Access road to airport • Private drive ways• Will provide pavers for the upgrade of the Old R335 from the Northern boundary

of Addo National Park to Somerset East (over Ann’s Villa)• We have established 10 of these co-op’s throughout the Province6) Incubator ProgrammeThe aim of this Programme is to provide opportunities for the lower Graded Contractors (GB2- GB5) to upgrade their CIDB grading. The process we follow is as below:• We advertise for expressions of interest from a pre- determined grade of

Contractor to be placed on our incubator data base• We then, through a process of Limited Bidding, where tendering is restricted to the

group on the database, appoints Contractors to do certain construction work (say maintenance of Municipal Libraries in smaller municipal areas funded by DESRAC)

• These Contractors receive training through SITA on OHS, Financial Management, Record Management, Entrepreneurial skills , technical building skills, e.t.c and are placed under mentorship of a competent person

55

• They get paid every 14 days• They get assisted to obtain bridging finance from ECDC e.t.c• Once these Contractors have completed a couple of projects successfully our

CIDP assist with their upgrading with CIDB • Through this Programme we have upgraded 95 Contractors to the next level

during the 14/15 financial year7) Integrated Contractor Development Programme• The Integrated Contractor Development Programme will combine contractor

empowerment intervention in the Buildings, Roads Infrastructure and the Expanded Public Works Programme into a unified programme during the 2015/16 financial year

• The Department will enroll 125 emerging contractors from grade 1 to 6 into this programme and an amount of R300m has been set aside for the Integrated Contractor Development Programme and will be utilised over a period of 3 years

8) The Amathuba Jobs PortalThis Programme seeks to link unemployed people (especially the youth) who are suited to work in the construction industry up with job opportunities. In the 2014/15 financial year in the Cacadu/Sarah Baartman Region alone, we have managed to find employment for 533 people and the target for the entire Province for the 2015/16 financial year is 6000

56

9) Small Town RevitalizationAll the above EPWP initiatives is mainly launched in small towns throughout the Province in an attempt to revitalize these towns

Constraints• The number of CIDB registered Grade1 contractors far exceed available work

opportunities and CIDB continues to register more (no entry requirements)• SMME Contractors are disrupting building projects in the Sarah Baartman Region

and especially in the Metro • The absence of Inter-Departmental Co-operation between Roads and Public

Works, DEDEAT and Water Affairs hampers our response to prevailing conditions• Insufficient funds for infrastructure maintenance (both Roads and Public Works)• Cumbersome Supply Chain process

57

THANK YOU

Documents

EASTERN CAPE CONSTRUCTION SUMMIT PRESENTATION: BY THE DEPARTMENT OF ROADS AND PUBLIC WORKS – EASTERN CAPE PROVINCIAL ADMINISTRATION 1