Infrastructure Investment and Expanded Public Works Programme: briefing by Department

Meeting report

TRANSPORT PORTFOLIO COMMITTEE
9 June 2004
INFRASTRUCTURE INVESTMENT AND EXPANDED PUBLIC WORKS PROGRAMME: BRIEFING BY DEPARTMENT

Chairperson: Mr J Cronin (ANC)

Documents handed out:
MTEF 2004/05 to 2006/07
Social Infrastructure and the Expanded Public Works Programme (see Appendix)

SUMMARY
The Committee was briefed on the initiatives, achievements and challenges in providing infrastructure and the projects of the Expanded Public Works Programme (EPWP) by the Department of Transport in line with the aim of poverty alleviation and job creation.
The greater part of the budget was allocated to roads. The discussion focussed on the amounts allocated to poverty alleviation and job creation, the sustainable livelihoods approach and community access to EPWPs. Concerns were raised about the sustainability of employment for EPWP workers, accessing EPWP funds and how provincial projects were to be monitored. The Committee agreed that creating one million sustainable jobs would be a challenge. Government expenditure needed to take into account labour intensive technologies as an important theme.

MINUTES
Department presentation
Ms Wrenelle Stander (Director General) and Mr Skhumbuzo Macozoma (Manager: Transport Infrastructure Management) presented on the budget and projects of the Expanded Public Works Programme (EPWP) for the year 2004. She said that transport presented many opportunities for EPWPs. In the maintenance, improvement and upgrading of roads up to 30% of the R3 billion would be spent on labour intensive methods. In the revamping, upgrading and building of railway stations, 45% of the budget or R350 million would be spent on labour intensive methods. In the construction of airports, 50% of the amount would go to labour intensive methods. The Department of Transport was also providing internships and learnerships to graduates. Some of the achievements so far were that 2.8 million person hours of jobs had been created. Over 10% of the people used were youth, over 10% were women and 1% were disabled people. R78 million of the budget was spent on Black Empowerment firms. School attendance increased, access to local clinics increased and travel time was reduced. There were also capacity building initiatives within the Department to support EPWPs.

Discussion
Mr R Ainslie (ANC) asked if once a project was completed the Department assisted workers in finding other employment and what the Department was doing overall to create sustainable jobs. Ms Stander replied that sustainability was a challenge but the Department equipped workers with a range of skills that could be used in other areas such as agriculture. It also encouraged workers to become contractors in their own right.

Mr S Farow (DA) requested clarity on the amounts allocated for poverty alleviation and job creation. Ms Stander replied that R300 million had been allocated over a three year period.

Ms R Mashigo (ANC) asked how the Department worked with communities in EPWPs and how communities in turn accessed the opportunities provided by the Department. Ms Stander said that they worked with local communities to put in place structures that were needed such as bridges. The Department worked through local authorities by supporting Integrated Development Plans (IDPs) and promoting labour intensive technologies as far as possible in transport projects.

Mrs Mbombo (ANC) asked how internships were accessed and what new stations would be built and why? The Chairperson reminded her that the initiative was still in its early stages and that it was not possible to provide further details at that point.

The Chairperson noted that the terms 'expanded public works' (EPW) and 'labour intensive' were being used interchangeably but they were not the same. He said that 'labour intensive' was broader than EPW and that labour intensive was an aspect of EPW. It was necessary to understand the interrelationships between people's lives and EPWPs. Mr Lucky Montana (Chief Director, Ministry of Transport) agreed that it was important not to use the two terms interchangeably. He also underscored the importance of sustainable livelihoods.

Mr Farow (DA) asked how the R300 million had been accounted for particularly in the Eastern Cape where the roads were in bad condition. He also requested that the Department consider making a presentation in future on the breakdown of all expenditure so that they could understand where the money goes. Ms Stander said that R35 million was spent on six projects in the Eastern Cape up to 2003.

Mr R Ainslie (ANC) sought to know whether the Department funded EPWPs through provinces or directly to projects. Ms Stander said that they funded projects directly.

The meeting was adjourned.

Appendix: Social Infrastructure and the EPWP

DEPARTMENT OF TRANSPORT
SOCIAL INFRASTRUCTURE AND THE EPWP
PARLIAMENTARY PORTFOLIO COMMITTEE PRESENTATION
9 JUNE 2004

Agenda
- Context
- Background
- Roads Policy Position
- Social Infrastructure Focus
- Enabling environment
- Challenges
- Strategic Intervention Areas
- Conclusions

Context
- Increased public sector investment in social and economic infrastructure
- RIOO billion earmarked for infrastructure spending over next 5 years
- Infrastructure investment placed at the centre of achieving sustainable and development.
- EPWP selected for alleviating poverty and creating employment.
- The micro-economic reform strategy.

Background
- Backlogs
= Rail - recapitalisation of infrastructure and rolling stock
= Road - upgrading and maintenance of road network
= Ports - the expansion of ports capacities

- Infrastructure Investment Plan - to be completed by September 2004
- Today's Focus - Social infrastructure and Road support for EPWP

Roads Policy Position
- Road Infrastructure Strategic Approach
Focus: Community Access Roads
: Support for Economic Growth Areas
: Labour Intensive
: Support for ISRDP, URP & IDPS
: BEE, Entrepreneur & SMME Development

- Rural Transport Development Strategy
Focus: Coordinated rural nodal and linkage development
: Access roads development
: Non-motorised transport infrastructure provision

- Urban and Rural Development Strategies (URS and ISRDS)
Focus: Targetinq of funds and delivery in poverty pockets
: Integrated service delivery
: Infrastructure provision to spark rural development and urban regeneration
: LED, Job Creation and Empowerment

Social Infrastructure Focus
- Providing Access - Economic opportunities and social services
- Providing mobility - Trade, commuter transport, linkage of economic centres and regions
- Streamlining non-motorised transport - Pedestrian facilities, bicycle facilities, animal drawn cart facilities
- Improving safety - Hazardous locations, integrating roads and non- motorised transport infrastructure, improving access roads
- Ensuring appropriate social infrastructure delivery - elevating labour intensive construction methods, maximising job creation, ensuring high infrastructure standards
- Integrating infrastructure delivery - roads delivery within context of IDPs. LTRP. ISRDP. Provincial Growth and Development Strategies, Key National. Programmes e.g. MIG and EPWP

EPWP Support
- To plan and provide social and economic infrastructure to ensure sustainable development of communities
- DOT areas of involvement:
= Infrastructure Sector (Driven by DPW)
= Economic Sector (Driven by DTI)

- DOT role
= Direct involvement through SANRAL projects
= Coordination of roads sub-sector contribution
= Contribution to establishment of National Training Centre for labour intensive construction methods
= Provision ofM&E support to EPWP Unit on roads sub-sector deliver performance
= Promotion of BEE in EPWP related procurement

Role in Infrastructure Sector
- Integration of labour intensive construction initiatives
= promotion of best practice
= facilitation of information sharing
= platform for discussion challenges

- Encouraging the establishment of provincial labout intensive construction programmes
= Kwazulu-Natal - Zimbabwe
= Limpopo - Gundo Lashu
= Eastern Cape - Vukuzakhe
= Western Cape - Zenzele
= Gauteng - Labmax
= North West - Being developed - Road Reserve Maintenance Programme
= Northern Cape - Begin developed (Latest info N/A)
= Mpumalanga - using CBPWP
= Free State - Being developed (Latest info N/A)

- Direct SANRAL support for EPWT
= Department of Transport: R200 million earmarked for labour intensive construction in roads
= Expansion of SANRAL role over MTEF
= BEE focus in awarding of routine management contracts
= Completion of outstanding poverty alleviation projects
- Expansion of SANRAL role over MTEF

- Coordination of roads sub-sector support
= Budget allocations
= Identified projects
= Job creation targets
= Planned infrastructure delivery e.g. km of roads
= Training targets

- Monitoring and Evaluation
= Coordination of sector service delivery performance information
= Supply of sector information to EPWP and level moitoring

- Establishment of National Training Centre for LIC
= Member of founding group comprising DPW, DST, Umsobomvu, WITS University and Training Consultants
= Department of Transport to provide funding support for practical training i.e. construction of roads

Enabling Environment
- Effective coordination through Infrastructure Sector Coordination Committee and Economic Sector Task Team is key to successful infrastructure delivery

Key Challenges
- Rolling significant MTEF Funding allocations - particularly in provinces
- Institutional integration of roads authorities and service delivery across spheres of government
- Capacity to deliver with labour intensive methods
- Service delivery capacity at municipal level

Strategic Intervention Areas
- Mobilise Roads Authority commitment to focus on access roads development, labour intensive
construction methods, job creation and SMME development
' Expansion of role of SANRAL in supporting EPWP
- Implementation of specific elements of the Road Infrastructure Strategic Framework and the Rural
Transport Development Strategy

Conclusions
- Roads policy has a strong focus on social infrastructure
- Transport Sector is geared up to support the EPWP process
- SANRAL's role within social infrastructure domain will expand