Honourable Speaker,
Honourable Premier Mr David Makhura,
Members of the Executive Council,
Honourable Members,
Head of Department,
The Business Community,
Faith based leadership,
Family, Friends and comrades,
Members of the media,
Fellow citizens,
All protocol observed.

Introduction

The tabling of the 2014/15 Gauteng Department of Infrastructure Development (DID) budget vote is a remarkable occasion.

Firstly, the two fold growth we have experienced from R1.6 billion to R3, 2 billion in capital and maintenance budget and a whopping R4.9 billion in total that we are administering on behalf of the Gauteng Government, in this Financial Year, are notable achievements.

Secondly, this happens as the Gauteng Provincial Government changes service delivery gear towards a radical transformation agenda. This is a strongest signal that our people deserve better and we cannot afford to fail them. This is even more so given that Gauteng is the economic hub of South Africa, contributing about 36% of the GDP.

Vision of the department

Honourable Speaker, the Department of Infrastructure Development strives to be a leading infrastructure provider and facilitator that positions Gauteng as a globally competitive City Region with a sustainable and growing economy.

To give effect to this vision, in the past financial year we developed an organizational blueprint based on the Infrastructure Delivery Management System (in short the IDMS). The IDMS is our business model that will provide a standardized framework to ensure infrastructure delivery. We are pleased to announce that over the 2014 – 17 Medium Term Economic Framework (MTEF) period, Provincial Treasury has allocated R625 million to our department to fully implement the IDMS. In this financial year, R150 million has been allocated for IDMS.

This will, amongst other things, allow the department to recruit qualified built environment professionals in areas such as engineering, architects, quantity surveyors, and artisans. In this financial year, we plan to fill 250 IDMS aligned positions, this will also lessen our dependence on consultants. We are also resolved on using available resources to ensure that we develop appropriate and robust business systems and processes that will strengthen the institutional capacity of the department.

Honourable Speaker, we can announce that the process of developing the new organizational structure, which is aligned to the IDMS, has now been completed and we await final approval by the Department of Public Service and Administration.

Honourable Members, we are sharing with you these developments so that you are aware we are succeeding in building state capacity for effective service that will allow us to achieve the objectives of a caring government ready to respond to the needs of our citizens in Gauteng.

Gauteng government priorities

Honourable Speaker, Perestroika and Glasnost called for radical change and indeed the world order was never the same since. Perhaps hence, in 1985, Andrei Gromyko, when nominating Mikhail Gorbachev, as the leader of the Russian Communist Party and Head of State, said: “Comrades, this man has a nice smile, but his got iron teeth.”

Premier Makhura does indeed have a nice smile but he has no iron teeth. However, the seriousness with which the Premier drives our commitment to radical change, he may very well match Gorbachev’s iron teeth. Premier Makhura is crystal clear and precise on what is required. He is clear on what is it that our people need and how they should get. To quote the Premier:

“It needs men and women driven by a sound vision as outlined in the Freedom Charter and the National Development Plan. It also needs public representatives, public servants and leaders of other sectors who will remain true to the values of loyal service to the people.”

The Premier has pronounced on the 10 strategic pillars for the Gauteng Provincial Government. Upon my deployment to DID in June 2014, I convened a strategic planning session with all DID senior management to ensure that we develop a new 5 year strategic plan that is aligned to the National Development Plan (NDP), the  GPG priorities as expressed in Premier’s State of the Province Address (SOPA) and our Infrastructure Delivery Management System (IDMS).

The following six strategic themes have been identified for the medium term and will run through the core of our business and will be aligned to the 10 strategic pillars as announced by the Premier:

1. Sustainable Infrastructure.
2. Accelerate service delivery.
3. Organisational development for building state capacity.
4. Optimise state assets for economic development and supporting entrepreneurs.
5. Empowering communities through job creation in partnership with the public and private sector.
6. Integrated planning.

Much has been achieved

Honourable Speaker, DID has suffered many growing pains since inception. These include the absence of business processes and systems, poor project management, poor property and asset management, lack of routine maintenance, technical capacity constraints and lack of value management.

Thus far we have made good progress in addressing these deficiencies through implementing a turnkey delivery approach, strengthening project management capabilities through building internal technical skills for project planning and construction management. Through these interventions we have revolutionised infrastructure delivery and the following are some of the notable achievements:

i) Improved Turnaround Time

We have been able to reduce our delivery turnaround times  from between 12-18 months in 2010/11 to 8 months in 2012/13 and in 2013/14 to just 4 - 6 months. This has been particularly evident in the delivery of our schools infrastructure. For example, the Magaliesburg Secondary School was completed in 5 months.  This is a state of the art school in a rural area, and will go a long way to change the lives of our people. Our people in Gauteng deserve better.

ii) Integration of Green Technology

We have vigorously championed the Green Agenda. For example, the recently opened Noordwyk and Northriding Secondary Schools feature 55 meter solar farms, which are set to minimise electricity costs and combat the effects of load shedding by reducing dependency on the grid.

When functioning optimally, the solar farms will generate average 9000 kilowatts hours a month, which is roughly enough electricity to power 72 households for a year. Furthermore, the schools are designed to maximise natural lighting.

The Green Agenda will drive energy efficiency and the use of renewable and clean energy sources thus reducing the provincial government’s carbon footprint.

iii) Introduction of eMaintenance

The department has successfully introduced a maintenance turnaround strategy that is best captured as the “24/7/365 Strategy”. This strategy commits us to attend to minor breakdowns within 24 hours, major breakdowns within 7 days and to carry out major refurbishments within 365 days.

It was announced during the 2013/14 budget speech that the department was piloting the strategy at Chris Hani Bara. I can now announce that the system has been rolled out to 481 health institutions across the Province.

Honourable Members, niggling maintenance challenges are now addressed swiftly as they arise. There’s no need to go through the whole procurement value chain for minor day to day maintenance. One of the critical elements of the 24/7/365 strategy is the provision of tools of trade to all DID artisans, specifically toolboxes so that our artisans are able to do their work efficiently.

The e-Maintenance system has been a resounding success within the Department of Health. Thus far, 22,561 defects have been logged by staff and citizens in hospitals and clinics and the Department of Infrastructure Development has managed to fix and close 11,930 defects (53%) as of 16 July 2014.

The e-Maintenance system has assisted management to identify the bottlenecks and opportunities for efficiencies in our processes and human resources such as:

    Shortage of chief artisans and inspectors.
    Incorrect placement of staff especially painters and carpenters.
    Inefficient method of scheduling preventative maintenance programmes.

iv) Construction of New Schools

Honourable Members, Gauteng is faced with a challenge of an ever increasing population. To respond to this demand, we have developed and refined prototype designs for school infrastructure and rolled out a turnkey construction approach resulting in both cost reduction and the speedy delivery of schools.

During the 2013/14 financial year, the Department completed key education infrastructure projects including; 38 restorative repairs, 4 fencing projects, 37 grade R classrooms and 17 ablution facilities; a further construction of 7 new schools out of 14 were completed across the province. These schools are:

    Chief Albert Luthuli Primary School - Ekurhuleni, Daveyton
    Soshanguve WW Primary School – Tshwane, Soshanguve
    Steve Bikoville Primary School – Tshwane, Hammanskraal
    Lotus Gardens Primary School – Tshwane, Lutus Garden
    Noordwyk Secondary School – Johannesburg, Noordwyk
    Northriding Secondary School – Johannesburg, Northriding; and
    Palm Ridge / Eden Park Secondary School – Ekurhuleni, Palm Ridge

v) Completion of Zola-Jabulani District Hospital

Honourable Speaker, we are pleased to announce that the much awaited Zola-Jabulani District Hospital was officially opened in April 2014. The new Natalspruit Hospital will be commissioned within the 100 days programme as announced by the Premier during SoPA.

Many lessons have been learned from these two projects, going forward, all new health infrastructure projects will be delivered as a turnkey solution. This is part of adopting a radical approach to infrastructure delivery, so that projects are delivered on time, within cost and according to defined quality standards.

Taking Gauteng forward

Honourable Speaker, we accept the challenge that going forward it cannot be business as usual, we need radical interventions to drive the transformation agenda.

In line with the strategic themes, outlined earlier and in response to the strategic priorities of the GPG, the Department identified the following interventions as game changers:

1. Development of a complete Immovable Asset Register
2. Implementation of Maintenance Turn-Around strategy
3. Development of Smart Class Room Designs
4. Development of Standard Health Infrastructure Designs
5. Implementation of IDMS as a turnaround intervention for the Department
6. The Gauteng Planning House
7. Gauteng Integrated Infrastructure Master plan (GIIMP)
8. Implementation of the Green Agenda.

These initiatives will be implemented with the intension to optimise socio-economic development spin offs for the benefit of our people.

2014/15 budget allocation

Honourable Speaker, in this financial year, we will on behalf of the Gauteng Provincial Government oversee a budget of close to R4, 9 billion. In order to implement our programmes and projects, the department has been allocated an amount of R 1, 976 billion for the 2014/15 financial year (as per 2014/15 ECE).

In addition, the department will manage capital projects to the value of R2, 419 billion, whilst an amount of R767 million is earmarked for critical maintenance work.

Education

Honourable Members, we will undertake various programmes for the Department of Education, namely the New Infrastructure Programme, Rehabilitation and Refurbishment, Upgrading and Additions, which includes Fencing, Grade R, Septic Tanks and Upgrades of Full Service Schools. These programmes have an allocation of R 1,13 billion for the 2014/15 financial year.

Honourable Premier, in line with the State of the Province Address (SoPA), the Smart Schools Programme in Gauteng is born. DID has been involved in the implementation of the Schools Generic Prototype since 2008. DID is developing prototype designs for new schools based on Smart Class Room concept and the recently gazetted Education Infrastructure Norms and Standards. The Smart Schools, will incorporate technological learning in classrooms boasting connectivity, promethean boards, visual screens and technology training centres.

This will place Gauteng learners on the high tech path, enhancing their competitiveness and skills relevance for the future economic climate. In this financial year, eight (8) new schools will be completed and handed over to the Department of Education, namely Mamelodi Primary School, Naturena Primary School, Freedom Park Secondary School, Oosrand Secondary School, Doornkop Primary School, Fochville Secondary School, Slovoville Primary School and Buhle Park Primary School.

We will also kick start the construction of eleven (11) new schools which are currently at tender stage, namely Bophelong Secondary, Bramfischerville Primary No 2, Bramfischerville Secondary No 4, Ga Rankuwa Primary, Julius Sebolai Primary School, Langaville Ext 4 Primary, Moses Kotane Primary, Nkone Maruping Primary School, Rethabiseng Primary No. 2 and Roodekop Primary.

Health Capital Projects

The department will implement 119 projects on behalf of the Department of Health commencing this financial year.  These projects have a total allocation of R533, 9 million and include the following projects: Tshwane District Hospital, Kagiso CHC, the conversion of the pharmacy at South Rand Hospital, maternity and OPD renovations at Heidelburg Hospital, electrical reticulation at Charlotte Maxeke and Garankuwa Nursing College, Daveyton Mortuary, Finetown Clinic, new Build.

The department will embark on the upgrading and development of new facilities, which will form part of National Health Insurance (NHI) Pilot Phase:  Soshanguve Block JJ Clinic (NHI) P2, New Kekana Gardens Clinic (NHI) P2, New Inner City CHC (NHI) P1 New Kanana Clinic (NHI) P1, and New Dewagendrift Clinic (NHI) P2.

DID  will also commence with the construction of various projects including the New Daveyton Forensic Pathology Mortuary, Charlotte Maxeke, Revitalization of Staff Residences - Blocks A, D & E, Natalspruit Staff Residence, New Lillian Ngoyi District Hospital, Boikutsong Community Day Care Clinic and  Bonalesedi Nursing College.

We will also complete the construction of the New Randgate Clinic.

Health Maintenance Projects

The department is responsible for the maintenance of Health Facilities in the province. The maintenance budget is  R1, 121 billion for the 2014/15 financial year.

DID has over the past year implemented appropriate systems to deal with maintenance of health facilities through the introduction of the e-Maintenance system, Just-in-Time Maintenance Materials Management System in partnership with the private sector and a rotational system for appointing service providers from an established database.

Heritage Projects

I am pleased to announce that Phase One of the construction of the Women’s Living Monument in Tshwane has been completed. Phase 2 of construction has commenced and an amount of R180 million has been allocated in this financial year towards completion of the project.

Other Gauteng Provincial Government (GPG) departments

DID will implement projects on behalf of the following departments to the value of:

    Social Development R115 million
    Department of Roads and Transport (DRT) R110 million
    Department of Agriculture and Rural Development (GDARD) R17million

Property Management

Honourable Members, the allocation for this key responsibility of the Department in the 2014/15 financial year amounts to R745 million. Through the Immovable Asset Register project started in 2013, due for completion in 2016, the Department has to date verified 37 339 assets.

Honourable Members, we are developing strategies to optimise revenue generated by leveraging on Government buildings. To this effect DID is exploring the usage of Government infrastructure for advertising purposes. A further strategy is being developed to look at optimising revenue through other facilities, for instance, communication masts, towers and dishes hosted on Government infrastructure.

The Kopanong Precinct Project is a concept initiated to consolidate all Government administrative processes for efficient service delivery. This project aims to provide accommodation facilities for Government departments within the Johannesburg Central Business District (CBD).

DID is leading the implementation of this initiative through a Public Private Partnership model and we are working closely with the Gauteng Provincial Treasury and the Gauteng Funding Agency. The appointment of a Transaction Advisor, who will provide technical assistance in conducting the feasibility and the “PPP” process, has been completed. The appointment of the Project Officer is expected by the end of September, 2014.

Expanded Public Works Programme (EPWP)

Honourable Members, Government is serious about tackling the challenge of unemployment. To this end, the department is currently rolling out the Zivuseni Reloaded Poverty Alleviation Programme, which has a target of recruiting 4 000 beneficiaries for this financial year.

The types of projects considered in the programme include: minor maintenance services which include hospitals and clinics, the environment and culture, water and sanitation and social development projects. The department has accepted the challenge to expand EPWP so that we achieve the objectives of creating over 1 million work opportunities in the next 5 years.

In this financial year, we will work to develop and Exit Strategy for EPWP beneficiaries so that we assist them to progress into better quality jobs and other entrepreneurship opportunities.

Furthermore, the department will be working with all key stakeholders in the Province to develop and implement the Tshepo 500 000 Programme, as announced by the Premier.  This programme, which is intended to create massive work opportunities for the targeted groups, will be launched in March 2015.

During this financial year, DID will recruit 2 500 youth beneficiaries to participate in the National Youth Service Programme (NYS), this programme provides opportunities for the youth to gain skills and experience in the work place.

To resolve the historic challenges of the payment of stipends to EPWP beneficiaries, the department will introduce a payroll system supported by biometrics. In rolling out these programmes, the department will ensure that local economies are revitalised as part of the radical economic transformation agenda.

Honourable Speaker, DID will develop and deliver social infrastructure at a massive scale and unprecedented pace.

The delivery of infrastructure projects will serve as a catalyst for economic activity in both the formal and informal sectors. Particular attention and focus will be paid to ensure that we achieve the 75% Localization Agenda.

This lays a solid foundation for skills conversion into entrepreneurial opportunities and will cushion the impact of economic challenges and historical segregations patterns. Gauteng has some of the oldest Government facilities that will be accorded refurbishment and restoration attention which will open further opportunities for job creation and entrepreneurship development.

Social infrastructure investment plays a key role and influences the spatial development trajectory. For example, the development of Zola-Jabulani District Hospital is a living example of how such investment can catalyse massive economic activity thus transforming the community it services into an economic hub.

In collaboration with Gauteng Planning Commission (GPC), the department will continue to foster integrated and inclusive spatial development planning that brings services to the doorstep of our people. Collaborative and integrated planning will be the order of the day and will optimise the realisation of our development objectives. Furthermore, the department will work with GPC to speed up the development of the Gauteng Integrated Infrastructure Master Plan (GIIMP).

Administration

With this budget, Honourable members, we would like to demonstrate our ability to respond to both our President and Premier’s clarion call to better the quality of life of our citizens. We are particularly focussed on ensuring that our people’s experience of the public service, specifically our health care centres, education and social development service delivery points, change for the better.

In order to support the line functions of the department, an amount of R296,83 million has been allocated to the Administration Programme. The total allocation for compensation of employees is R737, 9 million. This allocation has to be seen in context of a total responsibility of R4,9 billion that has to be administered by our department and I am satisfied that the proportionate allocation is indeed in line with acceptable norms. The department will continue to strengthen our efforts to enhance the professionalisation of the public service.

In order to improve project implementation and monitoring, but also to ensure modernisation of the Public Service, the department will implement a monitoring tool (i.e. Dashboard/Project-Eye) to monitor delivery of various projects during all the project stages on a daily basis from planning, supply chain management to completion and works hand-over. This will be a complete project monitoring system which will:

    Inform of the planning status;
    Supply Chain status and Procurement status;
    Project Expenditure Monitoring;
    Cash-flow forecasts;
    Timelines and Milestones
    Projects Status -quo and progress;
    Progress Visuals ;
    Project Portfolio of evidence (i.e.: Completion certificates,
    Tender adverts, etc.)

The Dashboard will serve as a “Project Eye”, which will meticulously monitor the delivery of all infrastructure projects therein ensuring that reporting on projects is transparent. The establishment of the Dashboard is complete and the uploading of data and implementation is in progress and due for completion in the next sixty calendar days.

Honourable Members, all new facilities, going-forward will incorporate the Wi-Fi platform to ensure content and sustainable connectivity. This will benefit communities by reducing the need for travel time and cost for reliable internet connectivity. These initiatives are supported by broadband infrastructure developed by the City of Tshwane and the City of Johannesburg.

Honourable Members, as the department we are working with Provincial Treasury and other departments to ensure that we achieve the objective of paying service providers within the 30 day period. DID, will be establishing a fully-fledged payment office, that will ensure the centralized management of invoices. We are serious about realizing our mandate to support emerging businesses resulting in the successful implementation projects.

During the 2013/14 FY, DID spent 100% of our budget allocation for Rates and Taxes, through the Intergovernmental Relations Forum (IGR), we are developing mechanisms to ensure that we receive invoices timeously and pay accordingly.

Honourable Members, collaborative work with the Gauteng Planning Commission (GPC) is at an advanced stage to establish Africa’s first ever Planning House in Gauteng.

Conclusion

In conclusion, I would like to express my profound gratitude to the Premier for his confidence and support. I extend the same gratitude to the ANC for their continued mentoring and support.

I take this opportunity to thank the MEC for Health, Ms Qedani Mahlangu, from whom we inherited this formidable department with a solid strategic direction.

I would like to extend my appreciation to the Portfolio Committee for Infrastructure Development lead by Chairperson Ms Lindi Lasindwa.

A special word of appreciation goes to the HoD, Mr Bethuel Netshiswinzhe and the DID senior management under his stewardship, who have been phenomenal since my arrival in the department.

My deepest gratitude goes to my family who are my pillar of strength, for their patience and tolerance.

I thank you!