Purpose
The purpose of this component of work was to support
the EPWP Unit to design, secure approval and funding and implement a
second phase of the EPWP.
Work undertaken
In 2007, the EPWP Unit with the assistance of the
Support Programme began the planning and preparation for a second
phase of the EPWP. This work entailed:
- The undertaking of a Mid Term Review in 2007 (through STAF).
- In 2008 and 2009 the undertaking of an extensive range of
assignments and activities both through the STAF and general Support
Programme budget to review and develop proposals for a second phase
of the EPWP. This resulted in Cabinet approving a second phase of
the EPWP on the 25th June 2008.
- Assisting the EPWP to implement phase 2 during the last year of
the Support Programme (2009/10).
The work undertaken is outlined below in terms of
the following components of work:
- Initial investigations
- Mid Term Review
- Planning and securing approval for EPWP 2
- Supporting EPWP 2 implementation
Initial investigations
During 2006 the Support Programme worked with the
EPWP Unit to undertake initial investigations into the basis by which
a second phase of the EPWP could be undertaken. These investigations
were funded through the STAF and included:
- An analysis of the Employment Guarantee Scheme implemented in
India. This programme applies a demand driven approach to the
provision of work for unemployed individuals. The assignment
comprised an analysis of the approach applied in India and made
proposals as to how it could be implemented in South Africa in a
manner that will result in a significant expansion to the current
EPWP.
- An assignment to quantify the demand for paid work in South
Africa in relation to the EPWP. This work provided insight into the
feasibility of scaling up of the EPWP to meet the demand for EPWP
type of work.
This assignment providing initial data to the DPW on
the feasibility of expanding the programme.
Mid Term Review
During 2007, which is the half-way mark for the
EPWP, the Support Programme on behalf of the EPWP Unit, commissioned a
mid-term review in order to assess the EPWP to date, and elicit
recommendations on the future direction and structure of the
programme. The review was funded jointly by the STAF and DPW.
The Human Sciences Research Council (HSRC), in partnership with
experts from the Southern Africa Labour and Development Research
Institute (SALDRU; University of Cape Town), Rutgers School of Law
(State University of New Jersey, USA), and ITT (UK) was commissioned
to conduct the mid-term review. Additional fieldwork support was
provided by Social Surveys Africa.
As a result of this review initial proposals for a second phase of the
EPWP were developed and tested with a range of stakeholders. Positive
responses resulted in further work being undertaken.
Planning and securing approval for EPWP 2
Between November 2007 and January 2009 extensive
work was undertaken by the Support Programme together with the EPWP
Unit using funding from the STAF in respect of developing proposals
for a second phase of the EPWP. This work included:
1) A geographically based investigation into the
feasibility of significantly increasing the scale of the EPWP: The
purpose of this work was to test the validity of two key assumptions
underlying the proposals for the second phase of the EPWP namely that
there is sufficient demand for EPWP work amongst the target group i.e.
unskilled unemployed people and that there is sufficient capacity in
the state to supply the work. This assignment was used to develop the
business plan for EPWP 2.
2) Interrogation of the existing data of the EPWP and the existing
budgets of public entities: The work aimed to review and extend
the analysis of EPWP data conducted as part of a midterm review of the
EPWP undertaken in 2007. The work comprised an analysis of the first
four years of data and analyzed the budgets and budget allocations
[based on the Medium Term Expenditure Framework] of public entities in
all spheres of government, in order to determine where opportunities
for leveraging EPWP projects and the proposed wage reimbursement fund
exist. This work was used to develop the business plan for EPWP 2.
3) Development of an EPWP 2 business plan: The Support
Programme provided assistance to the EPWP Unit to develop a business
plan setting out the basis by which EPWP 2 should be undertaken. The
business plan detailed proposals for a second phase of the EPWP based
on a strategic review of the work undertaken during the first phase.
4) Submission to and approval from Cabinet: In June 2008 the
Support Programme provided support to the EPWP Unit to develop a
submission to Cabinet on the outcomes and achievements of the first
phase of the EPWP and to obtain approval for a second phase of the
programme. These proposals were a summary of the business plan above.
The submission was approved by a full Cabinet meeting on the 25th June
2008 on the basis that funding is secured for the programme in the
Medium Term Expenditure Framework (MTEF) and a second submission is
made to Cabinet in January 2009.
5) MTEC submission: In accordance with the Cabinet approval
above, the Support Programme assisted the EPWP Unit to make a
submission for additional funds to National Treasury as part of the
Medium Term Expenditure Committee process. In November 2008, R 5.2
billion was approved for EPWP 2 of which R 4.2 billion will be
directly under the administration of the DPW.
6) Second submission to Cabinet: In January 2009 the Support
Programme assisted the EPWP Unit to develop a revised business plan
for submission to Cabinet Lekgotla setting out more detailed proposals
on EPWP 2. The business plan was approved.
7) Non State Sector programme: The Support Programme developed
Initial proposals for the Non State Sector programme. This was based
on research into the non-governmental sector.
8) Targeting framework for EPWP 2: The Support Programme
assisted the EPWP Unit to develop a targeting framework for EPWP 2
setting out an overall target for the programme and the allocation of
this target to all spheres of government.
9) Stakeholder engagement process: The Support Programme
assisted the EPWP Unit to develop a stakeholder engagement process
that informs each relevant National Department, as well as all
Provinces and Municipalities of EPWP 2 and the target that has been
allocated to them. In addition the legal documentation to support the
process was developed. This comprised the development of
implementation protocols (at both Provincial and Municipal level)
which sets out the province or municipalities responsibilities in
terms of implementing EPWP 2 and the targets that they are required to
achieve. The EPWP Unit implemented the process so as to get the
protocols signed.
10) Resolving employment conditions: Research was commissioned
through the STAF into employment conditions of the EPWP and
particularly whether a minimum wage should be applied in the second
phase of EPWP and the employment conditions that should prevail for
workers.
Supporting EPWP 2 implementation
During 2009 extensive work was undertaken by the
Support Programme to assist the EPWP Unit to implement EPWP 2. This
work was predominantly undertaken through the Programmes budget and
included:
1) Infrastructure Sector: Fiscal Incentive:
Developing the basis by which the fiscal incentive in the
infrastructure sector should be structured and preparing the
submissions to be included in the Division of Revenue Act. This
included the development of a model for the fiscal incentive that
determines the amount to be paid to public entities in terms of their
achievement of their targets. The model was prepared for 2009 and
handed over to the EPWP Unit. However as there was no dedicated
capacity within the Unit to update the model for the 2010 MTEF
performance review, this was undertaken by the Support Programme. In
addition support was provided to the EPWP Unit to prepare for the MTEC
discussions.
2) Infrastructure Sector Fiscal Incentive Business Process:
Developing the business processes to be applied by DPW in order
to pay out the incentive in compliance with National Treasury’s
requirements. This business process was developed into a Manual
which sets out the key principles of the incentive grant; how the
model is applied; the high level accountability and governance
arrangements; and the reporting, disbursement and audit processes for
public bodies. The manual was updated over 2009/2010 as implementation
proceeded and is now used by the EPWP Unit as the key document to
explain and manage the incentive. The business process was developed
through a highly consultative process entailing input from all of the
key stakeholders.
To supplement the manual, the Support Programme assisted the EPWP unit
in refining presentations on the EPWP Phase 2 and on the
incentive grant; and developed presentations for explaining the
business processes in-house and to other public bodies.
3) Infrastructure Sector Incentive Agreements: In order to
comply with the rules of the grant in DORA, incentive agreements
were developed to allow for a legal agreement and commitment of the
accounting officer of every eligible body to comply with the rules of
the grant. These were developed for provincial departments, urban
municipalities and rural municipalities and customised. The agreements
were developed together with and then provided to the EPWP Unit to
implement.
4) The Management Information System (MIS) and Data Bureau: The
process was developed in respect of the Municipal infrastructure
Support Programme was revised so that it could be used for the
payout of the fiscal incentive. The system includes:
- Incentive Target Management Information: This is per
Public Body, based on the DORA thresholds and targets. As soon as
the incentive agreement is signed, the public body is registered on
the system and can then monitor on a quarterly basis its status in
achieving the required FTEs to receive an incentive payment.
- Project Monitoring: Showing achievement of milestones
- Beneficiary Information: a new beneficiary database was
developed to allow projects to capture once all of the beneficiaries
registered on a project and allow for these to be linked to every
project progress report based on those worked.
Over the period the MIS and data bureau systems were
refined. The MIS as well as the data bureau service linked to it was
managed and maintained by the Support Programme until April 2010 where
after it was transferred to the Independent Development Trust who had
been appointed to provide support to the EPWP Unit.
5) Fiscal Incentive and MIS Training: Over the final year the
Support Programme developed a training programme and trained
Officials (national, provincial and local) on the fiscal incentive and
the MIS. An extensive number of these training programmes were
undertaken together with EPWP Unit staff. The training programme and
recommendations as to how it should be implemented on an ongoing basis
was then handed over to the EPWP Unit.
6) Direct Assistance to KZN: The Support Programme provided
direct assistance to the KwaZulu Natal province to report on the MIS
and meet the requirements so that the fiscal incentive could be
paid out. As a result of its activities in the first quarter of
the incentive being offered the Province was successful in receiving
the first payment from the EPWP Incentive Grant amounting to R19.309
million. This success showed other provinces and municipalities the
benefit of the fiscal incentive and there has been a steady increase
of the number of public entities accessing the grant since.
7) Capacity Assessment: The Support Programme provided
technical support to the EPWP Unit to assess its capacity
requirements to manage the fiscal incentive. On the basis of this
support the EPWP Unit made submissions for additional funding.
8) Community Works Programme: Assistance was provided to the
Community Works Programme (CWP) so that it could access the fiscal
incentive during 2009. This support included outlining the key
elements of the incentive including the information, reporting and
audit requirements that needed to be met. Reviewing the systems of the
CWP and making recommendations as to how it could access the fiscal
incentive.
9) Environment & Culture Fiscal Grant: The Support Programme
provided support to the Department of Environment and Tourism (DEAT)
and EPWP Operations Chief Directorate to develop an incentive grant
for the Environment and Culture Sector. An extensive process was
undertaken that included the participation of all key stakeholders.
Support was also provided to develop the required MTEF submission to
secure funding for the grant.
10) Social Sector Incentive Grant: The Support Programme
provided support to the EPWP Unit to design an incentive grant
for the Social Sector. During this process key conceptual issues were
raised by Treasury that needed to be resolved before designing the
incentive. The Support Programme assisted the EPWP Unit to develop a
process to resolve the outstanding conceptual issues. In addition the
Support Programme provided assistance in the development of a
preliminary conceptual design to secure initial funding until such
time that the conceptual issues are resolved.
Achievements
The EPWP Unit, with the assistance of the Support
Programme, has secured funding and approval for the second phase of
the EPWP and has been assisted in developing the processes, procedures
and tools to undertake implementation.
The Final M&E Report on the Support Programme (March
2010) noted that many stakeholders found it to be a significant
achievement that the Support Programme helped deliver on the incentive
models for infrastructure and environment, a redesign of MIS to
accommodate the incentives and corresponding training, the development
of incentive agreements with public bodies and the drafting of
incentive manuals. To have enabled all this in one year was felt to be
a ‘great achievement’.
Lessons learnt
During the final year of implementation the Support
Programme took on a more active and explicit role in designing and
implementing EPWP 2. The reason this occurred was that the work was
highly technical and required a significant amount of input from
experienced technical specialists which were not available in the EPWP
Unit.
This enabled the work to be undertaken at a very fast rate and the
achievement of the implementation of the fiscal incentive. However it
did cause difficulties in transferring the work undertaken to the EPWP
Unit because it does not have sufficient capacity in place in this
regard. This indicates a key challenge that support programmes face
i.e. whether to wait until the entity gearing up has the management
capacity to take over the activities or to proceed and thereby achieve
the objectives, but at the risk that there will be difficulties in
handing them over to the entity being supported.
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