Purpose of the sub-programme
The purpose of this sub-programme was to develop and implement a
methodology for undertaking large infrastructure projects labour
intensively, using small and medium enterprises.
Work undertaken
This sub-programme was originally called the Private
Sector Mobilization Programme whose purpose was to encourage the
private sector to participate effectively in the EPWP infrastructure
sector. The programme intended to obtain the commitment of private
sector investors to ten large labour intensive projects and promoting
training and awareness of the EPWP by established and emerging
contractors.
During Year 1, discussions were undertaken with the
largest players in the construction industry to determine the
feasibility of implementing the programme. Generally stakeholders were
not positive about the Support Programme being able to convince the
private sector to undertake large labour intensive projects. At the
same time, Cabinet raised concerns about the small size, limited
impact and visibility of EPWP projects, and identified a need to
expand the EPWP beyond its current implementation framework. In
response to these concerns, the EPWP Unit was mandated to produce
proposals for a mechanism to enable larger EPWP projects.
Consequently, the Support Programme was approached to assist the Unit
in developing a position paper on this issue through the STAF. The
assignment comprised an engagement process with key stakeholders in
the construction sector and the development of proposals. The
proposals recommended utilizing the capacity and skills of large
established contractors, in a manner that empowered, trained and
provided mentorship to emerging contactors. It was determined that the
approach had the potential to create an additional 150 000
person-years of employment.
On the basis of the work undertaken it was evident
that the impact of using large contractors to implement public sector
infrastructure projects, was likely to be greater than the time and
effort that would be needed to identify and convince private sector
investors to undertake labour intensive projects. Accordingly it was
determined that the Private Sector Mobilization Programme should be
refocused to recognize the more significant contribution large
construction contractors, rather than investors can make to the EPWP.
The initial concept was approved by Cabinet Legotla
in January 2006. As part of the revised Private Sector Mobilization
Programme, now called the Large Projects Programme, a Service Provider
was contracted by the Support Programme to develop the procurement
procedures to enable the approach to be tested through a pilot
project. The procurement procedures were developed but finding an
appropriate pilot project took an extensive amount of time and there
were many stops and starts. Finally a three year R500 million water
pipe replacement project in eThekwini was identified and technical
support was provided by the Support Programme to assist in structuring
the project. During Year 3 Ninham Shand was appointed as the Programme
Manager and four large contractors were appointed to manage the
project each in a specific region. Each of the large Contractors is
required to contract and mentor 4 to 5 sub-contractors. A Reference
Group was established to oversee the implementation process and draw
learning’s for the future of the programme.
The Support Programme continued to monitor the
implementation of the pilot project until the end of year 4 and
documented learning’s for dissemination to other Municipalities with
an interest in implementing such projects.
The Support Programme developed a list of “lessons”
from this pilot project, so that the concept could be applied more
widely by the EPWP Unit. The EPWP Unit has now set up a dedicated
directorate to support the adoption of this approach by Provinces.
This Large Projects Unit has taken on the supervision of the Large
Contractor Model being used in eThekwini and has began to promote it
nationally. The Support Programme has worked with the Unit to assist
them to develop a strategy for monitoring this work.
Achievements
As a result of this sub-programme a methodology for
involving large contractors in the EPWP on a basis where smaller
contractors continue to be utilized and labour intensive projects are
undertaken was developed and piloted.
This methodology is now being rolled out by a
dedicated directorate in the EPWP Unit.
Lessons learnt
While the Large Contractors Programme offers
significant opportunities to public bodies to improve their delivery
efficiencies, it is critical that careful monitoring of these projects
to maximise the labour intensity and job creation opportunities is
applied, as this is not necessarily the driving interest of public
bodies wishing to apply the model.
Significant support to public bodies is required in the preparing of
the contract documents, as inclusion of all the developmental
objectives the Large Contractor is expected to achieve must be clearly
specified. In addition, monitoring the reporting of the contractor
against these deliverables is essential.
The application of the EPWP MIS as a required reporting tool
significantly assisted eThekwini officials in ensuring that the
contractors did report all work opportunities.
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