Government Infrastructure Maintenance Study (GMIS) Presentation to - PowerPoint PPT Presentation

PN 743: Technical Support to the Western Cape Department of Economic Development & Tourism Government Infrastructure Maintenance Study (GMIS) Presentation to eThekwini 5 July 2017 PRESENTED BY: Shirley Robinson DATE: 05 | 07 | 2017

Investing in Infrastructure Maintenance  Investment in new & existing infrastructure critical to economic competitiveness & development  Infrastructure as an ‘Enabler’  Way in which infrastructure is planned, provided, used, maintained, & even disposed of enables socio-economic development  Improves spatial planning, access to services & economic opportunities  Reduces economic costs & facilitates productivity  Emphasis is on constructing new infrastructure, but also need to maintain old & newly built infrastructure, & upgrade or replace worn out or obsolete infrastructure.  NB that Infrastructure Delivery embraces Life Cycle approach from asset design & construction through to operation & maintenance, and thereafter disposal

Infrastructure Delivery Life Cycle Approach Policy, Standards & Strategy PLAN & DEVELOP DISPOSE OF IA • Disposal of or Acquire Or Create Via: • Development removal of asset from CREATE DISPOSE • Purchase original requirement OR • PPP Deal OR or use • S & LB Deal • Upgrade to new INFORMATION ACQUIRE UPGRADE • Lease requirement & extend MANAGEMENT • Upgrade asset life cycle use SYSTEM & Collect & update: • Asset register PROCUREMENT • Technical & operational documents • Maintenance budgets & strategy • Guarantees and/or warranties • Med. To long term REFURBISH OPERATE maintenance plans OR • Upgrade or refurbish & ENCHANCE facilities MAINTAIN • Applications for special funds

Inadequate Maintenance – Why?  Public infrastructure maintenance mostly unplanned emergency maintenance, hardly any scheduled/ planned maintenance  Inadequate budgeting for maintenance  National infrastructure conditional grants for new infrastructure  Maintenance is municipal spending responsibility  Given other municipal priorities (particularly salaries & wages), budgetary allocation for maintenance low  Technical skills shortage in municipalities (specifically qualified artisans required for supervisory & mentoring artisan trainees)  Specific competencies required by municipalities are not trained in FET colleges  Trade tests are not developed yet for scarce skills in municipalities  Result – Negative Impact on Service Delivery!

Review of Municipal Infrastructure Funding  Widening gap between national ring-fenced infrastructure conditional grant allocations and municipal infrastructure maintenance funding  NT leading continues to lead consultations on the review of local government infrastructure grants.  Reforms will focus on:  Improving asset management incentives,  Strengthening rules for the use of grant funds for refurbishment; &  Enhancing oversight by national departments

Skills & Artisan Development  NSDS III guides skills development, policy change from NSDS II to NSDS III had major impact on funding:  Mandatory grants were reduced from 50% to 20%;  PIVOTAL grant introduced to finance skills development :  Professional, vocational, technical & academic  Programmes which provide a full occupationally directed qualification  Bridge the gap between learning in college or university and on the job learning in the workplace  All training which leads to employment – including apprenticeships 6

NSDS III Levy/Grant Breakdown Managed by government (DHET) to fund national skills National Skills Fund (NSF) development priorities. (a.k.a. ‘catalytic’ fund) SETA Ring-fenced to fund the operations of the Seta Company Skills Administration Development Aimed to sponsor organisations’ SD interventions that are Levy Discretionary in line with the sector scarce and critical skills needs Contribution Grant Refunded to companies upon submission of an ATR/WSP Mandatory Grant application that is approved by the SETA Bridging programme to achieve an occupational PIVOTAL * Grant qualification 7 See CHIETA presentation 2011: PIVOTAL* = Professional, vocational, technical & academic Learning 2011/12 DISCRETIONARY GRANT (DG)

Why the GIMS? Dilapidated public FET College graduates infrastructure due to with limited work lack of maintenance experience How can these elements be brought together? 8

Key findings and observations Key findings Municipalities Key findings FET Colleges  Strategic HRD and planning is limited  FET Colleges offer more generic skills – hardly accompanied by  Best Practice: CoCT Electricity practical experience;  Municipalities focus on training and up- skilling of existing staff  Challenges to place students  for practical work experience; Significant numbers of maintenance staff undertaking artisanal work but not  Students not adequately formally qualified as artisans prepared to interact in working  Not all unqualified artisans keen to environment (work readiness); qualify (outside regulatory trades)   Skills and competency needs in National Certificate Vocational municipalities are very specific; (NCV) not acknowledged in public & private sector;  Infrastructure investment does not relate to increase in personnel  Interaction between colleges & municipalities rare;  Shortage of staff in critical positions;   Colleges offer what is required in Lack of mentors to guide graduates; their respective region 9  1 mentor on qualified artisan level is required to oversee 2 graduate s

Key findings and observations  The readiness of municipalities to take on learners and graduates from colleges is not adequate yet;  The readiness of FET Colleges to prepare learners and graduates for placement in municipalities and SOEs is equally not adequate (in terms of skill and competency set as well as in terms of attitude and aptitude);  The current placement programmes are important but don’t have the necessary impact  Quantity before quality?  Tracking system required (ito those agencies that facilitate placement as well as for FET Colleges) in order to identify impact of programme.  The intake of interns/graduates is highly linked to availability of funds provided by government and not so much by the need;  Partnerships between the FET Colleges and other public (and private) sector organisations is not optimally functioning 10

City of Cape Town Case Study  Led strategically through the City IDP  Strategic Area 1: Opportunity City – to create an economically enabling environment in which investment can grow and jobs can be created  Investing in new and maintaining existing economic & social infrastructure  Prioritised investment in expansion & maintenance of key utility infrastructure – electricity, water & sanitation, solid waste, public transport – to underpin City’s infrastructure -led growth  Focus on investing in bulk infrastructure delivery according to life cycle asset management so preventative maintenance and timely upgrades will optimise maintenance spend & reduce service failures  Recognises that focus on infrastructure maintenance requires increase in technical skills & capacity  Maximise use of SETAs, EPWP & rolling out extensive apprenticeship programme to Electricity, Water & Sanitation, Solid Waste, & Roads

City of Cape Town Case Study  Mayoral Apprenticeship Programme intends to expand and deepen the City’s current programmes,:  200 apprentices will be trained a year;  New apprenticeship programme that will see the CoCT partnering with FET colleges to provide 50 bursaries for the practical aspects or work integrated learning components.  External bursaries that will see the CoCT provide 60 bursaries a year, expanding to 80 once apprenticeship bursaries are included, and in later years to 110 bursaries.  In-service training of students requiring work-based experience to graduate. The CoCT initially provided 450 work-based experience opportunities before expanding to 600 opportunities over the next few years.  Graduate internships within the City are limited to engineering and environment.  CoCT’s partnership with the EPWP

City of Cape Town Case Study: Electricity  Following NERSA 2006 technical audit CoCT Electricity Services department (CCTES) initiated a multi-year programme to implement an enterprise asset management system using the CoCT’s SAP information & technology software platform.  CoCT operates a city-wide SAP-based enterprise resource planning (ERP) system, which is considered one of the largest SAP implementations in local government, as it is used for the entire CoCT back office including logistics, human resources, finance, and now asset management.  In 2007 ESS contracted Pragma Africa to establish an asset care centre (ACC) using the CoCT’s SAP software information technology platform, rather than Pragma’s On Key enterprise asset management system.  Involved assessing the ESS’s asset management maturity and developing an asset management improvement programme, driven through the Pragma asset care centre.