1. The Department of Cooperative Governance (DCOG) has approached the Development Bank of Southern Africa (DBSA) to act as its implementing agent in the roll out of the District Development Model (DDM) by providing the requisite project and programme capacity. Accordingly, the DCOG and the DBSA has entered into a Memorandum of Agreement on 03 March 2020 to formalise the roles of the Parties in the establishment of the DDM Programme Management Office (PMO) and the rolling out of Phase 1 of the DDM in the pilots in accordance with the programme implementation plan. The said MoA provides for the programme funding arrangements and specifies that the DCOG shall fund the programme up to a total amount of R50 million (Fifty Million Rand) per annum over the first three financial years of the duration of the MoA.
(i) To this end, the DBSA has invoiced the Department for the first R50 million payable for the 2020/21 financial year.
(ii) Furthermore, the DBSA has agreed to contribute financially towards the capacitation of the PMO and technical advisors to support the initiatives which are essential to the implementation and management of the programme, i.e. the preparation of the One Plan for the two DDM pilots, namely OR Tambo and Waterberg. Therefore, the DBSA as the implementing agent has procured the service providers for the development of the One Plans for the two pilots and all payments are made by the DBSA directly to the contracted service providers.
2. As indicated above the department does not pay any of the One Plan service providers and all payments are made by the DBSA as the implementing agent to the contracted service providers. To date the DBSA has paid the contracted One Plan service providers a total amount of R1 257 217.40.
3. The total contract value payable to the appointed service providers for the complete development of the One Plans for the two pilots amount to R4 930 398.00