Higher Education and Training Capital Efficiency Grant Progress Report

Department of Higher Education and Training Capital Infrastructure Efficiency Grant PROGRESS REPORT NOVEMBER 2020

Presentation Overview INFRASTRUCTURE TVET COLLEGES Introduction / Background CIEG Processes, Monitoring & Evaluation Current National Status Current Provincial Status Approvals Current Approval Status Per College Status National Approved Funds Breakdown Expenditure Challenges 2021 / 22 / 23 Maintenance Plans 2

Introduction Capital Infrastructure Efficiency Grant Funding from National Treasury. Conditional Grant under the hospices of Directorate: Financial Planning and the Directorate of Building Development and Maintenance. Aimed to curb maintenance backlogs at TVET Colleges. Bring about infrastructure statutory compliance (COC (Electrical, fire, etc) Improvement of Bulk Infrastructure(Water Security(Steel water storage tanks), water reticulation, generators, electrical etc) Improve conditions for teaching and learning to thrive. Capital Replacement where needs be. 3

CIEG Processes, Monitoring & Evaluation DHET has rolled out extensive TVET College training on National Infrastructure Asset Management Standards and maintenance planning. TVET Colleges must submit work package applications to DHET for approval BEFORE expenditure is incurred. This is to ensure correct application of funding and value for money in all instances. Once the Department has approved the maintenance plan, a cost item number will be issued on the work package, and the TVET College may start spending. The Department approves the spending of the funds in line with the approved costed maintenance plan, considering priority and criticality of maintenance. DHET supports struggling TVET Colleges with technical assistance. Monitoring of TVET expenditure incurred on sample basis by DHET teams as well as Internal Audit. Financial Planning Directorate: Request Quarterly Reports. Building Development and Maintenance Directorate: Request Monthly Progress Reports. (Expenditure, Committed Funds, SCM Report, Awarded) 4

Current National Status Total Funds transferred to 50 TVET Colleges from 2018 to August 2020 R 2,318,759,448.71 Total Approved Applications for funds to be utilized to from 2018 to October 2020 R1,605,733,451.46 70 % 5

Current National Status Total Funds spent to date R 308 662 667 19 % 6

Current Provincial Status 1. NORTH WEST - 90 % - of available Budget Approved 2. LIMPOPO - 74 % - of the available Budget Approved 3. WESTERN CAPE - 71 % - of the available Budget Approved 4. EASTERN CAPE - 71 % - of the available Budget Approved 5. 6. KWA ZULU NATAL - 68 % - of the available Budget Approved MPUMALANGA - 70 % - of the available Budget Approved 7. FREE STATE - 68% - of the available Budget Approved 8. GAUTENG 9. NORTHERN CAPE - 24% - of the available Budget Approved - 66% - of the available Budget Approved 7

Current Approved Status Per College Colleges Highlighted in GREEN have managed to get approved 70% and above. Colleges Highlighted in RED have been approved 69% and below. % % % EASTERN CAPE 1. Buffalo City TVET FREE STATE 9. Flavius Mareka TVET GAUTENG 13. Central Johannesburg TVET 14. Ekurhuleni East TVET 15. Ekurhuleni West TVET 16. Sedibeng TVET 17. South West Gauteng TVET 18. Tshwane North 84% 92% 93% 2. East Cape Midland TVET 3. Ikhala TVET 10. Goldfields TVET 46% 95% 32% 11. Maluti TVET 86% 37% 83% 25% 89% 25% 4. Ingwe TVET 5. King Hintsa 12. Motheo TVET 95% 30% 6. King Sabata Dalindyebo TVET 7. Lovedale TVET 77% 83% 19. Tshwane South TVET 20. Western TVET 93% 86% 8. Port Elizabeth TVET 62% 95% 8

Current Approved Status Per College Colleges Highlighted in GREEN have managed to get approved 70% and above. Colleges Highlighted in RED have been approved 69% and below. % % % KWA ZULU NATAL 21. Coastal TVET 22. Elangeni TVET LIMPOPO 30. Capricorn TVET 31. Lephalale TVET MPUMALANGA 37. Ehlanzeni TVET 35% 38. Gert Sibande TVET 39. Nkangala TVET 13% 68% 91% 64% 88% 92% 92% 54% 83% 96% 23. Esayidi TVET 24. Majuba TVET 25. Mnambithi TVET 26. Mthashana TVET 27. Thekwini TVET 32. Letaba TVET 33. Mopani TVET 34. Sekhukhune TVET 35. Vhembe TVET NORTHERN CAPE TOTAL 40. Northern Cape Rural TVET 41. Northern Cape Urban TVET 64% 72% % 100% 89% 23% 36. Waterberg TVET 80% 37% 44% 25% 28. Umfolozi TVET 29. Umgungundlovu TVET 72% 9

Current Approved Status Per College Colleges Highlighted in GREEN have managed to get approved 70% and above. Colleges Highlighted in RED have been approved 69% and below. NORTH WEST WESTERN CAPE % % 42. Orbit TVET 45. Boland TVET 90% 58% 43. Taletso TVET 46. College of Cape Town TVET 91% 75% 44. Vuselela TVET 47. False Bay TVET 88% 93% 48. Northlink TVET 91% 49. South Cape TVET 49% 50. West Coast TVET 44%

National Approved Funds Breakdown R1,605,733,451.46 COMMITTED IN SCM 31% Awarded 37% NOT IN SCM 32% 11

Expenditure to Date Expenditure on approved Projects to Date at 19% R308,662,657.59 R1,605,733,451.46 R308,662,657.59 TOTAL APPROVED EXPENDITURE TO DATE 12

Challenges Application for funding not being received within the stipulated time frames. Colleges are sent official letters from the department informing them to send their applications on specific dates. Colleges are further reminded to apply towards the deadline date if they are yet to do so. Applications received from Colleges to DHET not comprehensive (Incomplete/Missing Information/Incorrect calculations/No attachments) Incomplete and incorrect application for funding are sent back to Colleges with comments to rectify and sent back for approval(Checklist shared with College) Colleges require professionals to aid in compiling condition assessment and specifications for specialized works (Quantity Surveyors, Architects Civil, Electrical, Mechanical, Structural & Fire engineers). Colleges have been advised that they can apply for service from Professionals or Principal Agent. An option to get into Participative Contract with Consultants already on-board CIEG has been offered to Colleges.

Challenges Colleges have more needs than available allocated funds. Colleges are encouraged to highlight all their maintenance needs in their annual maintenance plan. The Colleges are also given the option to prioritize their work packages based on the available funds as determined by what they see to be critical to their operations. Project delays & Procurement/Supply Chain Delays. A national workshop was conducted by DHET in conjunction with the CIDB on the 8 & 9 October 2019 which catered for Project Managers, Supply Chain Managers and CFO s in efforts reinforce construction procurement procedures/processes. Consultants already procured by the CIEG can be utilized by the Colleges to aid in the different procurement stages namely (BSC, BEC & BAC). DHET recommended that Colleges have a sitting of BEC (Bid Evaluation Committee) and BAC (Bid Adjudication Committee) on the same day to avoid procurement delays. High staff turn-over(specifically contact based Project Managers (35% to 40%)

Challenges Approved work packages with no progress report/Tracking progress. A reporting tool has been created to track progress on approved work packages, from approval stage, Pre-project, Project to post project stage. Colleges have been requested to report progress on a weekly bases for all approved projects to identify where their blockages are in order to offer aid where required. Quality control concerns on work completed by elected College Service providers. Where there has been issues of quality identified, the CIEG team will visit the College to identify that value for money has been realized. If needs be a Professional will be sent and give a full report comparing the approved packages and the work done on site.

Challenges Communication Breakdown between Project Manager, Supply Chain, DP Finance, Accounting officer and CIEG team based at DHET. Communication from DHET is sent to all three parties so as to avoid Colleagues not being on the same page. All provinces have been allocated a project support manager who will deal directly with any issues that arise with Colleges in a specific province. Emergency repairs Emergency repairs are situation where if the problem identified could not be avoided, is unforeseen, cannot be differed and life threatening. In case of an emergency, Colleges are still required to compile an application. Colleges have been given the option to escalate emergency repairs required so as to get their application prioritized for approval. .

2021 / 22 / 23 Maintenance Plans Circular titled REGIONAL OFFICES AND PRINCIPALS OF ALL TVET COLLEGES ARE HEREBY INFORMED OF TVET COLLEGE ANNUAL MAINTENANCE PLAN REQUIREMENTS AND APPLICATIONS FOR THE 2021 FINANCIAL YEAR EFFECTIVE AS OF 1 SEPTEMBER 2020 was been sent out to all Colleges on 9 September 2020. Every college must determine a 2021 Annual Maintenance Plan, per campus per Building The target for 2021 is that a minimum of 50% of the buildings in use for teaching and learning must be condition assessed, costed and recorded on a Meso Planning template. Note the requirement to distribute the maintenance requirement over the next 3 years (2021/22/23). You are advised to record the funding requirement in a prioritised manner over the 3 years.

2021 / 22 / 23 Maintenance Plans The 2020/21 annual dates of effect are as follows: The submission of the draft 2021 annual Maintenance Plan 31 October 2020 clearly indicating budget required, college budget allocation, shortfall and impact, at college level; Draft 2021 Annual Maintenance Plan to be amended to cater for any inputs by the Department and resubmitted for oversight to the Directorate: Building Development and Maintenance by 20 November 2020; The final plan to be endorsed by College Council by latest 30 January 2021 .Total draft 2021 annual Maintenance Plans Received to date 19. Site Plans received to date 33

Total draft 2021 annual Maintenance Plans Received to date 19. 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Mthashana TVET Thekwini TVET Umfolozi TVET Umgungundlovu TVET Capricon TVET Lephalale TVET Letaba TVET Mopani South East TVET Sekhukhune TVET College Vhembe TVET WaterbergTVET Ehlanzeni TVET GERT SIBANDE TVET Nkangala TVET Northern Cape Rural TVET Northen Cape Urban TVET Orbit TVET Taletso TVET Vuselela TVET Boland TVET College of Cape Town for TVET False Bay TVET Northlink TVET South Cape TVET West Coast TVET No No No YES YES No YES No No YES YES No No No No No No No No YES YES YES YES YES YES COLLEGE NAME Buffalo City TVET Eastcape Midlands TVET Ikhala TVET Ingwe TVET King Hintsa TVET King Sabata Dalindyebo TVET Lovedale TVET College Port Elizabeth TVET Flavius Mareka TVET Goldfields TVET Maluti TVET Motheo TVET Central Johannesburg TVET Ekurhuleni East TVET Ekurhuleni West TVET Sedibeng TVET South West Gauteng TVET Tshwane North TVET Tshwane South TVET Western TVET Coastal TVET Elangeni TVET Esayidi TVET Majuba TVET Mnambithi TVET Maintenace Plan No No No No No YES No No No YES YES No No No YES No No No No YES No No No YES No No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Success depends on all of us working together to find the best way forward Thank you 20