EPWP: MINMEC PRESENTATION

Stanley W. Henderson

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EPWP Phase 2

•Overview & Progress•Data flow•Provincial incentive grants

SELECT COMMITTEE ON PUBLIC SERVICES

18 June 2014

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Background & Overview of EPWP Progress against Targets Data Integrity & Data Quality EPWP Incentive Grants to Provinces & Municipalities Measures taken to ensure that low capacity Municipalities

can access Integrated Incentive Grant. Overview of Municipalities accessing EPWP Integrated

Grant. Impact of the EPWP on Beneficiaries

Outline

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The goal of EPWP Phase 2 is to create 4.5 million work opportunities (equivalent to 2 million full time equivalents) for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services.

EPWP support public bodies from all spheres of government (in terms of their normal mandates and budgets) and the Non-State sector through Government incentives to deliberately optimize the creation of work opportunities for unemployed and poor people in South Africa through the delivery of public and community services

Background

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The EPWP is a nationwide programme covering all spheres of government and state-owned enterprises.

It aims to draw significant numbers of unemployed, unskilled people into productive work, so that they increase their capacity to earn an income.

While the EPWP provides an important avenue for labour absorption and income transfers to poor households in the short to medium-term, it was not designed as a policy instrument to address the structural nature of the unemployment crisis

Definition of EPWP

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What is an EPWP Project?

Deliberate attempt by the public sector body to use expenditure on goods and services to create work opportunities for the unemployed

Projects usually employing workers on a temporary or on-going basis (either by government, by contractors, or by other non-governmental organisations), under Code of Good Practice for SPWP or learnership employment conditions

Clear work opportunity targets were set for designated groups, namely: Women – 55% Youth – 40% People with Disabilities – 2%

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Creating productive employment opportunities

Infrastructure Sector: Increasing the labour intensity of government-funded infrastructure projects

Environment and Culture Sector: Creating work opportunities in public environment and culture programmes (e.g., Working for Water, Food for Waste)

Social Sector: Creating work opportunities in public social programmes (e.g., Community Health Workers, Early Childhood Development practitioners)

Non-State: NGO Programme: to be delivered by non-state bodies that

have a specific focus area such as health care, child care, community safety

Community Work Programme (CWP): programmes targeted at a specific area that will generally involve a large range of different activities identified as necessary and beneficial work by the community in consultation with local government

Sector Overview

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EPWP Progress Against Targets

• EPWP phase 2 has created 3,054,027 work opportunities against the business plan target of 4,500,000 which represents 68% of the target at the end of the 4th quarter of the 12/13 financial year.

• In terms of Full Time Equivalents (FTEs), 868,974 FTEs have been reported against the target of 2,020,435 translating to 46% of the target being achieved. This is because the projects duration of work opportunities are generally shorter than anticipated.

• Considering the 4th quarter report of the 12/13 financial year, 93% of the expected target of 3,270,000 has been achieved.

• For the 12/13 financial year, by end of the 4th quarter 941,593 work opportunities have been created against the target of 1,210,000 for the 12/13 financial year which is 78% for the financial year.

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Overall 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

2009/10 550,000 550,000 210,870 210,870

2010/11 642,000 1,192,000 260,870 471,740

2011/12 868,000 2,060,000 361,739 833,479

2012/13 1,210,000 3,270,000 502,174 1,335,563

2013/14 1,650,000 4,920,000 684,783 2,020,436

Total 4,920,000 2,020,436Source: Business Plan (dated January 2009)•Work Opportunities : number of individuals reported to have been employed on an EPWP project •FTE (Full Time Equivalence) : person days of work and training divided by 230 days

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Work opportunities per sector against annual target for 2012-13 (Overall) (1 Apr 2012 – 31 March 2013)

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Infrastructure Sector (Prov Govt Depts & Municipalities): Work opportunities against 2012-13 targets by Province(end Q4: 1 April 2012– 31 March 2013)

Provinces Municipalities Total

Target Wk Opp Reported

% Target Wk Opp

Reported

% Target Wk Opp Reported

%

EC 37,271 51,826 139 54,452 30,397 56 91,723 82,223 90

FS 16,151 7,705 48 22,234 4,388 20 38,385 12,093 32

GP 34,984 8,020 23 61,402 29,097 47 96,386 37,117 39

KZN 49,406 55,543 112 72,836 28,563 39 122,242 84,106 69

Lim 31,668 7,908 25 43,164 20,155 47 74,832 28,063 38

Mp 17,548 9,885 56 24,922 9,608 39 42,470 19,493 46

NC 12,464 12,357 99 8,957 5,798 65 21,421 18,155 85

NW 19,765 5,729 29 27,232 6,548 24 46,997 12,277 26

WC 15,693 11,019 70 21,971 19,497 89 37,664 30,516 81

Total 234,948 169,992 72 337,170 154,051 46 572,118 324,043 57

% - Percentage of work opportunities reported against target

Wk Opp Reported – Work Opportunities reported to date [1 Apr 2012 – 31 March 2013]

Source: Targets – Business Plan (Dated Jan 2009)

End of Q3 1213 %:

76

24

28

60

26

38

22

24

66

45

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Infrastructure, Environment and Culture and Social Sectors (TOTAL)(Prov Govt Depts & Municipalities): Work opportunities against 2012-13 targets by Province(end Q4: 1 April 2012– 31 March 2013)

Provinces Municipalities Total

Target Wk Opp Reported

% Target Wk Opp

Reported

% Target Wk Opp Reported

%

EC 62,506 60,249 96 54,452 41,279 76 116,958 101,528 87

FS 36,533 15,870 43 22,234 10,354 47 58,767 26,224 45

GP 90,097 38,422 43 61,402 45,164 74 151,499 83,586 55

KZN 103,323 82,490 80 72,836 34,175 47 176,159 116,665 66

Lim 60,691 36,251 60 43,164 23,258 54 103,855 59,509 57

Mp 39,234 40,016 102 24,922 17,439 70 64,156 57,455 90

NC 25,705 22,435 87 8,957 8,889 99 34,662 31,324 90

NW 44,046 22,014 50 27,232 12,724 47 71,278 34,738 49

WC 50,171 25,184 50 21,971 47,122 214 72,142 72,306 100

Total 512,307 342,931 67 349,163 240,404 69 861,470 583,335 68

% - Percentage of work opportunities reported against target

Wk Opp Reported – Work Opportunities reported to date [1 Apr 2012 – 31 March 2013]

Source: Targets – Business Plan (Dated Jan 2009)

*Municipal target: Infra targets plus Environment & Culture and Social Sector targets not broken down per prov

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Work opportunities per sector and province (Overall)(1 April 2012 – 31 March 2013)

ProvinceNon-State: Community

Work

Environment & Culture

Infrastructure

Non-state:Non Profit Organisa-

tions

Social TOTAL

EC 32,206 38,391 84,203 6,355 18,553 179,708FS 18,525 13,984 12,491 3,294 10,578 58,872GP 17,815 25,011 39,616 2,184 37,017 121,643

KZN 25,379 31,195 85,378 6,128 24,672 172,752LP 12,259 25,737 36,254 6,406 25,015 105,671MP 9,582 35,265 20,250 4,280 15,647 85,024NC 5,164 12,341 18,630 2,790 8,695 47,620NW 13,776 11,525 13,117 5,128 17,275 60,821WC 9,832 50,663 30,737 4,034 14,216 109,482

TOTAL 144,538 244,112 340,676 40,599 171,668 941,593

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Causes for not meeting some of the targets

The main causes for not meeting some of the targets as follows:

•Lack of adequate technical capacity in public bodies to design and implement projects labour-intensively. •Delays in implementing projects due to administrative delays like procurement delays. •Under-reporting of EPWP work opportunities created on projects.

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Measures being undertaken to improve performance

• Technical support is being undertaken to help public bodies

design and implement their projects labour-intensively. Much of

the focus is on providing technical support to municipalities that

lack technical capacity.

• Re-orientation courses on labour-intensive methods of

construction are being conducted in all the provinces.

• Public bodies are being provided with assistance to report

EPWP work opportunities through data capturing support.

Importance of Data Quality

The EPWP emphasizes good data quality because it is explicitly evidence based and results oriented.

Good data are needed to inform the design of interventions and to monitor and evaluate the programmes quantitative progress toward pre-determined targets.

Ultimately, the EPWP is committed to accuracy of information for purposes of accountability and, more importantly, for use of quality data to improve programs.

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Ways EPWP Ensures Good Data Quality

Data from all public bodies is captured into the EPWP reporting systems as per the prescribed data fields and validation rules.

Validation rules are applied to the reported data during collation.

Projects that do not pass the validation rules due to poor data quality, those projects are excluded from the final reports.

In the cases where the data is found not to be of poor quality, feedback is given to public bodies to implement corrective measures.

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Introduction to the EPWP Incentive Grant

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EPWP Incentive Grant was introduced in EPWP Phase II to:

Reinforce and reward public bodies that actually implement employment-intensive methods and utilise their existing infrastructure allocations effectively to increase the labour content of infrastructure delivery.

Encourage public bodies to meet their targets or hold them accountable Rapidly expand job creation Ensure increased employment-intensity of infrastructure projects Encourage more uniform wage structures Focus on poor, marginalised, rural areas and the willing unemployed Mainstream EPWP criteria & outputs with the core mandates and

programmes of implementing public bodies

Overview of the EPWP Incentive Grant

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The EPWP integrated grant to provinces and municipalities is applicable to the Infrastructure and, Environment and Culture Sectors.

The projects implemented using the EPWP integrated grant in the Infrastructure sector include: roads and storm water projects, sanitation projects and building projects.

The projects implementing in the Environmental and culture sector include: Beautification projects, greening projects and Waste collection projects.

In terms of expenditure, for the 12/13 financial year, by the end of March 2013, for Provinces, 100% of the grant has been transferred to Public bodies.

Challenges experienced regarding the incentives is the low expenditure reports submitted by public bodies to the NDPW.

Follow up has been made with different Public bodies with low spending on the integrated grant. Withholding letters were also written to Public bodies that were not complying with the requirements of the grant.

Low expenditure in the different Public bodies has been due to internal challenges faced by the public bodies like delays in procurement that affect implementation of projects.

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EPWP PERFORMANCE ON THE SOCIAL SECTOR INCENTIVE GRANT

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In line with the Conditional Grant Framework in DoRA 2012 the Social Sector EPWP Grant for Provinces has three major output indicators to achieve:

Servicing the household Supporting 3 052 non profit organisation(NPOs) Paying stipends to 11 925 beneficiaries

For the financial year 2012/13 a total allocation of R217 401 000 was distributed to provinces as follows:

Social Sector EPWP Grant for Provinces

Province Incentive AllocationsEastern Cape R 22 120 651 Free State R 23 907 776Gauteng R 41 944 860 KwaZulu Natal R 1 672 925 Limpopo R 57 734 384 Mpumalanga R 13 659 326 Northern Cape R 2 073 404 North West R 29 564 135 Western Cape R 24 724 540

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Expenditure of the Social Sector EPWP Grant to Provinces (2012/13)

Provincial Department Allocation Total Payment Total Payment Expenditure by Provinces (End Feb)

% Q4 Expenditure (End Feb)

NC-Sports, Recreation, Arts & Culture R567,686 R567,686 100.00% R0 0.00%NC-Social Development R1,505,718 R1,505,718 100.00% R1,506,000 100.02%FS-Social Development R10,097,566 R10,097,566 100.00% R6,240,000 61.80%FS-Education R5,941,405 R5,941,405 100.00% R4,326,588 72.82%FS-Health R7,469,854 R7,469,854 100.00% R7,255,000 97.12%FS-Sports, Recreation, Arts & Culture R398,951 R398,951 100.00% R398,900 99.99%LP-Education R18,556,962 R18,556,962 100.00% R12,765,000 68.79%LP-Social Development R9,980,122 R9,980,122 100.00% R9,356,000 93.75%LP-Health R29,197,300 R29,197,300 100.00% R28,616,226 98.01%NW-Sports, Recreation, Arts & Culture R903,135 R903,135 100.00% R634,211 70.22%NW-Social Development R11,657,368 R11,657,368 100.00% R8,945,000 76.73%NW-Health R17,003,632 R17,003,632 100.00% R17,004,000 100.00%GT-Health R29,072,053 R29,072,053 100.00% R22,153,033 76.20%GT-Social Development R12,872,807 R12,872,807 100.00% R10,569,000 82.10%WC-Education R23,923,576 R23,923,576 100.00% R19,359,887 80.92%WC-Community Safety R799,964 R799,964 100.00% R758,000 94.75%MP-Sports, Recreation, Arts & Culture R524,349 R524,349 100.00% R453,081 86.41%MP-Education R12,613,004 R12,613,004 100.00% R12,024,920 95.34%MP-Safety & Security R521,973 R521,973 100.00% R143,550 27.50%EC-Sports, Recreation, Arts & Culture R1,632,795 R1,632,795 100.00% R1,605,500 98.33%EC-Health R13,779,884 R13,779,884 100.00% R13,699,483 99.42%EC-Social Development R6,707,972 R6,707,972 100.00% R6,708,000 100.00%KZ-Community Safety & Liaison R1,672,925 R1,672,925 100.00% R528,000 31.56%TOTAL R217,401,000 R217,401,000 100.00% R185,049,379 85.12%

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Performance of the Social Sector EPWP Grant

A total of R217 401 million was transferred to the provinces as at the end of March 2012. This is equivalent to 100% of the total allocation to provincial departments.

There is no outstanding payment total that still needs to be transferred to the provinces.

To date, 85% of the total transfer has been reported as spent by all receiving provincial departments.

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EPWP PERFORMANCE ON THE EPWP INTEGRATED GRANT TO PROVINCES

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Performance on the EPWP Integrated Grant to Provinces for 12/13 Financial year

Summary by Province

Allocated (R’000)

Transferred to date(R’000)

Transfers as a % of allocation

Expenditure as of end of March 2013(R’000)

Expenditure as % of allocation

Eastern Cape 60 333 60 333 100% 63 118 100%

Free State 21 391 21 391 100% 12 114 57 %

Gauteng 18 885 18 885 100% 13 076 69%

KwaZulu-Natal

79 506 79 506 100% 79 506 100%

Limpopo 48 983 48 983 100% 48 953 100%

Mpumalanga 26 255 26 255 100% 23 621 90%

Northern Cape

9 915 9 915 100% 4 657 47%

North West 10 444 10 444 100% 6 444 62%

Western Cape

17 099 17 099 100% 12 721 74%

Total 292 761

292 761 100% 264 210 90 %

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Report on Signing of Incentive Agreements by Provinces

A total of 61 departments were sent Agreements to be signed.

To date, 38 departments have signed and returned the agreements to the department which is 62% of the total protocols.

North West and Gauteng provinces have the least number of protocol agreements signed by their participating departments.

Northern Cape and Western Cape participating departments are the only departments that have signed all their protocol agreements.

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Performance on the EPWP Integrated Grant to Provinces

In terms of the EPWP Integrated Grant to Provinces, 100% of the grant has been disbursed by the National Department of Public Works.

In terms of expenditure, 90% of the grant has been spent by the eligible Provincial Departments as at the end of March 2013.

Full expenditure of the grant was not achieved in Free State, Gauteng, Northern Cape, North West and Western Cape Provinces.

Full expenditure has not been achieved by the public bodies because of delays in implementation of projects.

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EPWP PERFORMANCE ON THE EPWP INTEGRATED GRANT TO

MUNICIPALITIES

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Performance on the EPWP Integrated Grant to Municipalities for 12/13 Financial year

Summary by Province

Allocated (R’000)

Transferred to date(R’000)

Transfers as a % of allocation

Exp. to date (R’000)

Exp. as % of allocation

Exp. as % of transferred allocation

Eastern Cape 103 094 103 094 100% 50 577 49% 49%

Free State 42 803 42 803 100% 23 318 54% 54%

Gauteng 180 872 180 872 100% 79 992 44% 44%

KwaZulu-Natal 95 487 95 487 100% 36 471 38% 38%

Limpopo 48 864 48 864 100% 25 857 53% 53%

Mpumalanga 45 851 45 851 100% 29 640 65% 65%

Northern Cape 35 578 35 578 100% 24 318 68% 68%

North West 44 161 44 161 100% 29 994 68% 68%

Western Cape 62 425 65 425 100% 51 255 78% 78%

Total 662 135 662 135 100% 351 422 53% 53%

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Performance on the EPWP Integrated Grant to Municipalities

In terms of the EPWP Integrated Grant to Municipalities, 100% of the grant has been disbursed by the National Department of Public Works.

In terms of expenditure, 53% of the grant has been spent by the eligible Municipalities as at the end of March 2013.

The expenditure of the municipalities varies across the different provinces. Expenditure is highest for eligible municipalities in the Western Cape at 78%.

The worst expenditure is by Municipalities in KwaZulu-Natal at 38% mainly due to poor reporting on expenditure.

Follow up is being made to the different public bodies to provide reports.

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Number of Eligible Municipalities: 2012/13 and 2013/14

Province No. of Eligible Municipalities

2012/13

Total Incentive Grant

Allocation 2012/13 (R’000)

No. Of Eligible

Municipalities 2013/14

Total Incentive Grant

Allocation 2013/14 (R)

Eastern Cape 45 103 094 45 92 629 937

Free State 23 42 803 24 36 855 671

Gauteng 12 180 872 12 143 807 822

KwaZulu-Natal 36 95 487 57 114 437 496

Limpopo 30 48 864 30 39 379 471

Mpumalanga 21 45 851 21 41 274 528

Northern Cape 26 35 578 32 37 617 839

North-West 23 44 161 23 37 708 511

Western Cape 30 62 425 30 66 962 726

National Total: 246 662 135 274 R610 674 000

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Measures Taken to Ensure Low Capacity Municipalities Access Incentive Grant

Re-orientation workshops on employment-intensive methods

Municipal officials trained on design, implementation, monitoring and reporting on employment-intensive projects

Road Shows on Integrated Grant Held in Provinces

Road shows held in all provinces. Items covered included; eligibility requirements,

conditions of the grant and reporting requirements.

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Measures Taken to Ensure Low Capacity Municipalities Access Incentive Grant … Cont’d

Project visits conducted to Monitor compliance on EPWP

In all provinces to monitor compliance and to provide implementation advice

Total of 887 projects being implemented in municipalities were visited. Of the projects visited, 526 were in the Infrastructure Sector, while 361 were in the Environment & Culture Sector

Information verified on site included; number of work opportunities, person-days of work, as well as branding

Compliance items like attendance registers, employment contracts and payment registers also verified

Information on location of projects including geo-coding also obtained

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Measures Taken to Ensure Low Capacity Municipalities Access Incentive Grant … Cont’d

Additional Technical Capacity Appointed to Support Municipalities

Service providers appointed to complement NDPW technical support team in supporting municipalities in November 2012

With additional resources more municipalities will be covered and each municipality will get more focused attention.

EPWP II & Beyond: Strategy going forward

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Consolidation - Growing the existing EPWP programmes; focus will be on: Improving reporting Expand the number of public bodies participating in

delivering EPWP activities Improve the labour intensity of the existing programmes Expand the size and scope of existing programmes Improve the profile, packaging and promotion of the

existing programmes, including developing flagship programmes as part of the non-state sector

Impact of EPWP: Purpose and Objectives of Research The EPWP Evaluations and Research unit continuously

conducts studies as per the M&E framework.

The studies include: Process evaluation which examines the efficiency and

effectiveness of program implementation processes Impact evaluations to determine the impact of the

programme on beneficiaries and impact of the programme in reducing unemployment.

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Impact of EPWP on Beneficiaries Lives “I have gained a lot of life skills as a breadwinner I can take

care of my family including orphans”. “I became more responsible as a citizen and husband, I'm

now capable of doing things for my family that I couldn’t do before like paying school fees”.

“I was able to build myself a proper house, a brick house so that my family could be protected from rains”.

“With the money I get from EPWP, I managed to build up a two roomed brick house and moved out of a shack. Enkosi EPWP”

“I didn’t have a job for many years but now I am working as a carer and getting experience on how to deal with peoples health problems in their homes”.

“I have a certificate and I am going to use it in future when I am looking for another job and I am also gaining experience”

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“I managed to buy a deep freezer for myself. I plan to use it to open a small business and sell meat in the township. I will make money after the project has ended”

“Thanks to the EPWP project, my family has managed to live a little more comfortably and afford some luxuries. I even bought a television set; if it was not for the EPWP project, I never would’ve been able to afford it.”

“ I thank this project, they helped me to open my first bank account ever. I am 59 years of age and have a bank account. At the end of the month when my salary is deposited, the bank sends me an sms’.

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Impact of EPWP on Beneficiaries Lives……..

“I used to sleep on the floor with my children. With the money I received from the project, I managed to buy a Seally bed. We now sleep on a proper bed and our lives have changed”

“ The project gave me skills. I was trained to be a teacher for children. I now know more about children and I enjoy teaching them”

“I now have my own vegetable garden due to the experience that I have gained while working on this project. We don’t buy vegetables anymore”

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Impact of EPWP on Beneficiaries Lives………..

Impact of EPWP on Communities

“People got work from the project, they managed to build their houses, others are educating their children, most of the people are now working in this community”

“For those that use their cars, we have helped them by closing potholes and cut trees along side of the roads”.

“Before kids were suffering others had no food but now come to us and we help them with food and homework's”

“other children come to schools without food and now the parents know their children will get food at school they wont stay hungry the whole day.”

“Roads are maintained after heavy rain and the cars are able to go on the streets”

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Community Impact…….

“Roads being constructed now and again taxis are able to come even if its raining”.

“The community is clean and people are no longer getting mugged because we cutting the bushes down. The crime rate has reduced in our community”

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4141

Thank you.

Stanley W. Henderson

DDG:EPWP

Cell: +27 (83) 676 5119

+27 (12) 310 5110

Email: stanley.henderson@dpw.gov.za