EPWP 2012 POLICY (ADM)

23 Pages·2015·0.51 MB·English

AMATHOLE DISTRICT MUNICIPALITY

EXPANDED PUBLIC WORKS POLICY AND IMPLEMENTATION FRAMEWORK
FINAL DOCUMENT APPROVED BY COUNCIL

Prepared By:
Department of Land, Human Settlement and Economic Development

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Expanded Public Works Programme Policy and Implementation Plan

Preamble

This Policy serves to demonstrate the nature and scope of the Expanded Public Works
Programme and provide while providing operational framework and mainstreaming
matrix. It is not an answer to all the challenges relating to the nature and scope of EPWP.
Rather it provides clearly defined operational framework. This Policy is an attempt to
meet the aspiration of the residents of the District.

The implementation of this Policy with its implementation plan calls for a concerted effort
and contribution by all stakeholders – departments, CDW’s, Ward Councillors, traditional
leaders, communities, traditional leaders, government institutions/departments, NGOs,
civil organisations and private sector. It is only through such complimentary linkage,
coordination and alignment that we can live up to the aspirations of the residents of the
district.

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Table of Contents
The EPWP Policy to cover the following areas:

1.Section one:.........................................................................................................
1.1. Acronyms.......................................................................................................
1.2. Definitions of terms .......................................................................................
1.3. Legislative framework ..................................................................................
1.4. Introduction .....................................................................................................
1.5. Current state of EPWP in ADM ..................................................................
1.6. Vision...........................................................................................................
1.7. Mission statement .........................................................................................
2. Section two ..............................................................................................................
2.1. Problem statement................................................................................................
2.2. Policy statement.....................................................................................................
2.3. Aims and objectives .............................................................................................
3. Section three ...........................................................................................................
3.1. Key policy issues and strategies ........................................................................
3.1.1. Implementation framework…………………………………………………
3.1.2 Institutional arrangement………………………………………………….

3.1.3. Management model…………………………………………………………

3.1.4. Monitoring and evaluation…………………………………………………

3.1.5. Reporting …………………………………………………………………

3.1.5. Role of LM’s …………………………………………………………….

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1. SECTION ONE

1.1.GLOSSARY OF TERMS AND ACRONYMS

The following acronyms are used in this policy document:-
ADM Amathole District Municipality
CPAPEX Capital Expenditure
COGTA Co-operative Governance and Traditional Affairs
DWA department of Water Affairs
DSD Department of Social Development
DPW Department of Public Works
DEAT Department of Environmental Affairs and Tourism
DTI Department of Trade and Industry
GAMAP Generally Accepted Municipal Accounting Practice
GIS Geographical Information System
IDP Integrated Development Plan
WSDP Water Services Development Plan
EPWP Expanded Public Works Programme
CETA Construction Education Training Authority
NGO Non-Governmental Organisation
SETA Sector Education Training Authority
SALGA South Africa Local Government Association
SAQA South African Qualification Authority
SOE’s State Owned Enterprises
LGWSETA Local Government and Water related Sector Education and Training Authority
MIG Municipal Infrastructure Grant

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1.2.Definition of terms
There following are terms employed in this policy document:
(a) By hand: Refers to the use of tools, which are manually operated and powered.

(b) Capital Expenditure (CAPEX): Expenditure used to create new assets or to increase
capacity of existing assets beyond their original design capacity or service potential.
CAPEX increases the value of an asset.

(c) Cash Flow: The stream of costs and/or benefits over time resulting from a project
investment or ownership of an asset.

(d) Community Liaison Officer (CLO): The CLO is a member of the targeted community,
recommended by the ward committee and appointed by the contractor to provide labour
brokerage services and liaison with the targeted communities.

(e) Demographic Characteristics of Workers: The number of workers that fall within the
following categories must be recorded as youth (18-35 years of age), women and people
with disabilities.

(f) Geographic Information Systems (GIS): Software, which provides a means of spatially
viewing, searching, manipulating and analyzing an electronic database.

(g) Job Opportunity: Paid work created for an individual on any EPWP project for a
particular period of time.

(h) Key Performance Indicator (KPI): A qualitative or quantitative of a service or activity
used to compare actual performance against a standard or other target. Key performance
indicators commonly relate to statutory limits, safety, responsiveness, cost, comfort asset
performance, reliability, efficiency, environmental protection and customer satisfaction.

(i) Labour–Intensive: Labour intensive construction is the economically efficient
employment of as a great a proportion of labour as is technically feasible throughout the
construction process to achieve the standard demanded by the specification; the result
being the significant increase employment being generated per unit of expenditure by
comparison with conventional equipment-intensive methods.

(j) Life Cycle: The cycle of activities that an asset (or facility) goes through while it retains
an identity as a particular asset i.e. from planning to design to decommissioning or
disposal.

(k) Life Cycle Cost: The total cost of an asset throughout its life including planning, design,
construction, acquisition, operation, maintenance, and rehabilitation and disposal costs.

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(l) Person –days of Employment: The aggregate of the number of people who worked on a
project multiplied by the number of days each person worked.

(m) Project Budget: The project budget is the price tendered by the contractor plus the
professional fees for the professional service provider appointed to design and supervise
the project.

(n) Project Wage: Minimum Daily Wage Rate (whether task rated or time rated) per
individual project.

(o) Training Person –Days: The number of Training Person – days is the number of people
who attended training multiplied by the number of days of training. A distinction must be
made between accredited and non-accredited training person days.

(p) Expanded Public Works Programme: it is used in reference to a nation-wide short to
medium term government initiative aimed at alleviating poverty by using public sector
budgets to draw significant number of unemployed into productive work whilst enabling
these workers to gain skills while they work.

(q) Employment Opportunities: The number of employment opportunities created,
irrespective of the duration of each of the jobs, during the period under review.

(r) Persons-days of Employment: The number of person –days of employment created
during the period under review. This is calculated by aggregating the duration of each of
the job opportunities created and dividing the total unit (Days, weeks and months). The
result is the number of person days for any given review period.

(s) Project Budgets: The total expenditure aggregated for all EPWP projects inclusive of all
the sectors, infrastructure, social, culture and environment.

(t) Person –Training Days: The total number of training opportunities aggregated and
expressed in the equivalent number of person –training days.

(u) Demographics: The number of job opportunities created for women, the youth and
people with disabilities and ex –military veterans expressed as a ratio of the total number
of job opportunities created for any given period, for each of the four sectors.

(v) Expenditure Retained within Local Municipalities: The amount of the budget spent
and retained within local municipalities through procurement of goods and services from
local manufacturers, suppliers and service providers is recorded for a given period.

(w) Project Task Rates: Where applicable rates for the same or similar task will have to be
uniform for the ADM .Task and time rates will have to comply with the Ministerial
Determination.
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(x) EPWP Incentive Grant: It is given to municipalities who report quarterly of implemented
EPWP projects by Department of Public Works.

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1.3. LEGISLATIVE FRAMEWORK

The legislations reflected hereunder inform and govern the activities and operations of
EPWP:

 The Local Government Municipal Systems Act of 2000 as amended;
 EPWP Guidelines of 2005
 EPWP Guidelines of 2009
 Draft ADM EPWP Policy 2012
 Division of Revenue [DoRA]
 Intergovernmental Relations Framework Act 13 of 2005
 The Expanded Public Works Programme Guidelines of 2009
 Constitution of the Republic of South Africa, 1996

The Constitution of South Africa Act 108 of 1996 sets out a broad framework for local
government and in particular Chapter 7, section 152 which describe objectives of local
government as the following:
 To provide democratic and accountable government for local communities;
 Ensure the provision of services to the community in a sustainable manner for the
benefit of present and future generations;
 Promote social and economic development;
 Promote a safe and a healthy environment; and
 Encourage the involvement of community and CBO’s in the matters of local
government.
 A municipality must strive, within its financial and administrative capacity to achieve
the above- mentioned objectives.
The Local Government Municipal Systems Act of defines how Local Government should
operate and allows for various types of partnership arrangements a municipality may
enter into ,to ensure delivery of services .
The Expanded Public Works Programme Guidelines of 2004 describes the rationale for
EPWP in a context of high unemployment, low skills 2000 and large backlogs of
public services.
Developmental duties of municipalities as outlined in Section 153 in the Local Government
Systems Act, a municipality must structure and manage its administration, budgeting and
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planning processes to give priority to the basic needs of the community, and to promote the
social and economic development of the community.

In addition to providing traditional services such as water and sanitation ADM must play an
expanded role. ADM must also initiate, plan, lead, and manage development The
developmental local government is described in the Municipal Systems Act (Act 32 of 200)
.The Systems Act has resulted in the development of IDP as a key strategic document. .The
Integrated Development Plan (IDP) guides and informs all planning and infrastructure
development activities .The IDP is expressed as a rolling 5 year and is linked to a 3 year
multi term budget.

The Division of Revenue Act (DORA) reflects different allocations (conditional and non-
conditional grants) for municipalities (and provinces) with the aim to achieve the local
government developmental agenda. This can include MIG funds, Capacity building funds to
municipalities to perform the functions assigned to them in terms of developmental local
government and other relevant legal prescripts.

In terms of Regulation 21 of the Division of Revenue Act, the Minister of Finance has to
publish the conditions associated with funding allocations made to municipalities. The
Municipal Infrastructure grant (MIG) which is a consolidated grant mechanism was approved
by Cabinet on 5th March 2003.The fundamental feature of the MIG is that each year bulk of
the funds will be allocated to municipalities on the basis of a formula. The MIG is a
conditional grant subject to a number of conditions of which poverty alleviation is a condition
associated with the Expanded Public Works Programme(EPWP ), must be adhered to .
The elements of the formula used to calculate the total allocation to municipalities also relates
to past performance in implementing the EPWP. Successful Implementation of the EPWP
will impact positively on the future MIG funding allocations for municipalities and their
development agencies.

1.4. Introduction
The concept of the EPWP is an attempt by government to create more job opportunities and
promote skills transfer with the notion to reduce unemployment and poverty levels. EPWP as
a conceptual framework also involves reorientation of line function budget so that the
government expenditure results in more work opportunities, particularly for unskilled labour.
Public Bodies are also expected to use their own budget to implement programmes and
projects in line with EPWP principles; and use the incentive grant to create even more work
opportunities. Municipalities participated because it was Tied to the MIG funding so was the
case at ADM.
It is within the context that former President Mbeki during his State of the Nation address on
the 14th February 2003 formally announced the launch of Expanded Public Works
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Programme (EPWP). Government has a number of medium to long term programmes and
strategies to address unemployment .These include:
 Improving the social security
 Utilising government expenditure
 Improving skills levels through education and training;
 Providing an enabling environment for industry to flourish; and
 Balancing economic growth with the economically active population.
The EPWP is one of the government’s short –to- medium term initiatives which focuses on
the use of government expenditure to alleviate and reduce unemployment. The EPWP will
achieve this aim through provision of work opportunities coupled with training .Training is a
key element of the EPWP not only as an exit strategy but also to increase the future
employability of the participants.
It is anticipated that the EPWP will continue to exist until the medium to long term
programme are successful in reducing unemployment. The EPWP is a national programme
covering all spheres of government and State Owned Enterprises (SOE’s). In essence the
EPWP involves re-orienting line function budgets so that government expenditure results in
more work opportunities, particularly for unskilled labour .EPWP projects will therefore be
funded through the normal budgets of line function ADM’s departments and project
managers will not only target EPWP funds but must use 30% -80 % of their annual capital
budgets towards EPWP. This will be complemented by periodical incentives from the
provincial Department of Public Works.
Opportunities for implementation of EPWP exist through various departments within ADM.
For instance, labour intensive through public infrastructural projects (sanitation, water
projects etc.), and non-labour initiatives such as learnership, training, and in social, cultural
and environmental sector.

1.5. Current state of EPWP in ADM
Execution context
The First Phase of the EPWP, which started in 2004 until 2009, was based on labour
intensive /infrastructure programmes like construction of roads etc. During this phase, jobs
were created but it was also criticized for not creating enough, non-sustainability of jobs and
lack of skills transfer. Thus, the Second Phase was conceptualized and incorporated other
aspects of the programme.
The MIG funding is managed and controlled by engineering services and up until this
financial the EPWP funds (and function) was administered by them as well. There was an
MOU with the department of Public Works that we shall reach specified targets and these
were audited. However, there was no proper coordination as it was not institutionalised and
there was no policy enforcing this at ADM for other departments.
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