KwaZulu-Natal Infrastructure Delivery Management System (IDMS)

Transcription

1 KwaZulu-Natal Infrastructure Delivery Management System (IDMS) Dr. Clive Coetzee General Manager: Infrastructure Management and Economic Services KZN Provincial Treasury 1

2 Background Governments around the world rank infrastructure policy among their greatest concerns. The modernisation of infrastructure is seen as being critical to future economic competitiveness and crucial to accommodating expanding populations in urbanising environments (Urban Land Institute and Ernst and Young, 2011). 2

3 Global Infrastructure Needs The world s infrastructure needs are huge, and growing. Yet the resources required to finance such investments, together with the business models for raising the funds and implementing the projects, are failing to keep pace. The result is a growing gap between needs and actual levels of investment which will evolve over time depending upon the level of economic growth, the structure of financial markets and the impact of environmental pressure.

4 Global Infrastructure Needs Clearly the infrastructure crisis is an immense, complex, multidimensional problem that challenges world governments

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6 Global Infrastructure Needs What are required are innovative solutions for resolving bottlenecks in the financing of investments and in the implementation and operation of the infrastructure projects.

7 Capital Stock/Infrastructure Discussions of public infrastructure rarely start with straightforward definitions of what infrastructure is but rather with a general discussion of what it does. The literature cites three reasons why an adequate supply of infrastructure is important: it supports economic growth, it enhances quality of life and it is important for national security.

8 Capital Stock/Infrastructure Capital Expenditure is imperative AddsNew Capital Stock Create Positive Externalities Outwards Shift of the PPF Support Potential GDP Private vspublic

9 Capital Stock/Infrastructure Total Fix Stock as a % of GDP SA Reserve Bank

10 Capital Stock/Infrastructure Government as % of GDP Private Business as % of GDP SA Reserve Bank

11 Capital Stock/Infrastructure Gross fixed capital formation as a % of GDP SA Reserve Bank

12 Capital Stock/Infrastructure Gross fixed capital formation Government as a % of GDP Gross fixed capital formation Private Business as a % of GDP SA Reserve Bank

13 Capital Expenditure by Public-Sector Public Capital or Infrastructure is the term that describes infrastructure that is owned by the public and/or is for public use. It is generally distinguishable from private or generic infrastructure in terms of policy, financing, purpose, etc

14 Capital Expenditure by Public-Sector

15 Capital Expenditure by Public-Sector

16 Capital Expenditure by Public-Sector

17 Capital Expenditure by KZN Public-Sector R 000 Capital Expenditure Nominal Capital Expenditure Real Q3 2001Q4 2002Q1 2002Q2 2002Q3 2002Q4 2003Q1 2003Q2 2003Q3 2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1

18 Capital Expenditure by KZN Public-Sector KZN Capex as a % of KZN GDP 2001Q3 2001Q4 2002Q1 2002Q2 2002Q3 2002Q4 2003Q1 2003Q2 2003Q3 2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1

19 Capital Stock by KZN Public-Sector KZN Fixed Capital Stock perpetual inventory method where; K 2001 = R GFK 2001 = R δ = 5% Q3 2001Q4 2002Q1 2002Q2 2002Q3 2002Q4 2003Q1 2003Q2 2003Q3 2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1

20 Capital Stock by KZN Public-Sector 44,000 CAPITALINTENSITY 43,000 42,000 41,000 40,000 39,000 38,000 37, capital intensities indicate that the amount of physical capital available per worker

21 Capital Stock by KZN Public-Sector.92 CAPITALCOEFFICIENTS capital coefficient is simply the amount of capital divided by the gross domestic product

22 INFRASTRUCTURE CRISIS Program delivery How can the infrastructure improvements be delivered with low disruption to the system? 22

23 Challenges that we face Roles and responsibilities between provincial departments and the spheres of government in relation to infrastructure delivery is unclear [AG 2011; NDP 2030]. The [infrastructure] delivery management system either does not exist or is dysfunctional key processes and procedures are not well defined. Current structures of and posts in infrastructure units are not aligned to the new management processes and legal requirements Although infrastructure budgets have increased, capacity to support delivery is insufficient. Knowledge base and capacity of Public Works as an Implementing Agent and Custodian is failing to ensure value for money. Governance structures in Sector Departments and Public Works are ineffective to ensure value for money. 23

24 IDMS Background The Infrastructure Delivery Management System (IDMS) has its origins from 2001 when National Treasury commissioned a review of the provincial infrastructure delivery systems. The recommendations from the study resulted in, amongst others, the launch of the Infrastructure Delivery Improvement Programme(IDIP). IDIP is a change enablement programme to provide support and guidance to improve infrastructure service delivery. The program is co-ordinated by a Program Management Unit(PMU), located in National Treasury and is in partnership with the CIDB, Department of Basic Education, Health, Public Works, Public Service Administration(dpsa); and the Development Bank of Southern Africa(DBSA). Four IDIP Technical Assistance (TA) have been deployed to Provincial Departments of Health, Education, Public Works and Treasury 24

25 The Development Concept TheInfrastructure Delivery Improvement Programme (IDIP) has developed and implemented the following as part of entrenching good practices: The Infrastructure Delivery Management System (IDMS) The Government system for the planning, delivery and maintenance of immovable assets. supports the clarification of functions, roles and responsibilities within the infrastructure delivery chain; The Infrastructure Delivery Management Toolkit (IDM Toolkit). provides a structured and auditable process to support portfolio planning, project management and operations & maintenance; The Capacitation Strategy for the infrastructure units ensures the appropriate structuring, staffing and training of infrastructure units in relevant national and provincial departments; 25

26 The Infrastructure Delivery Management System (IDMS) The system that describes the processes that make up public sector infrastructure management, mainly applied to the construction industry. The IDMS outlines the core infrastructure processes for: 1. Planning; 2. Procurement; 3. Delivery; 4. Operation; and 5. Maintenance

27 The Infrastructure Delivery Management (IDM) Toolkit Purpose of the IDM Toolkit is: Provide a documented body of knowledge and set of processes that represent generally recognised best practices in the delivery management of infrastructure Focussed on the delivery and life cycle management of South African public sector infrastructure Provides how to guidelines for infrastructure delivery and procurement management necessary to deliver, operate and maintain infrastructure Facilitates a uniform approach to infrastructure delivery management The Toolkit, when adhered to, will also assist departments in complying with applicable legislative requirements 27

28 IDMS Capacitation Strategy -Phased Approach with Buy-in Governance Principles IDMS Agree on content of each Function & Responsibilities - In line with dpsa model and IDMS. Legal mandate, core business roles and HR Profiles in line with business roles of departments Organisation design principles and structures strategies/ structures Job Profiles and Job Evaluation HR Norms National/Provincial Cabinet memoranda to institutionalise IDMS, Service Delivery Model and Functional Structures dpsa will issue Ministerial Directive for the structures. Infrastructure Delivery Principles - IDMS

29 Roll-Out for the IDMS and Capacitation Strategy Presentation to all HODs and MECs at relevant sector forums for example National Health Council and to DPSA Step 1 TAs to participate in sessions and to draft the provincial IDMS Facilitation of sessions in each Province to customise the functional analysis and aligned to the departmental service delivery platform. Step 2 Intense consultation process (reiterative processes) work as co-operative partners Customisation of proposed generic structures to meet needs of each Province based on the outcome of the functional analysis Step 3 Province must lead: Leadership and facilitative role HR/OD Units) and Provincial Treasuries are critical Requirements for a strong foundation Customisation of generic HR norms based on uniqueness of each Province Step 4 HR model and Provincial Framework for IDMS implemented at same time Role of and consultation with 4 HODs and MECs in each Province very important Finalise all the Job profiles and directive issued by dpsa Ongoing

30 Infrastructure Delivery Management What is the IDMS: System (IDMS) The IDMS provides a systematic framework for the infrastructure project lifecycle It outlines the core processes associated with planning, procurement, delivery, operations and maintenance of infrastructure Comprises three Delivery Processes: o DP1 Portfolio Management o DP2 Project Management o DP3 Operations and Maintenance 30

31 Infrastructure Delivery Management System (IDMS) 31

32 Value of the IDMS The IDMSensures strategic alignment of the infrastructure value chain. This value chain is supported through the IDMS Capacitation framework, IDM Risk System, IDM Toolkit and the construction procurement enhancement process. The IDMS process will agree and unpack on how portfolio management, programme management, project management, maintenance and related operations will be implemented in the Province. 32

33 Value of the IDMS Infrastructure Delivery Management System Infrastructure Strategic Decision Making Points Construction procurement system IDMS provides a systematic approach to infrastructure delivery covering the full cycle from needs identification, planning and budgeting through to procurement, construction, handover and 33 maintenance.

34 Departure Point : Agree on key IDMS Principles for KZN Governance Principles for Infrastructure Management Cooperative Governance and Structures Custodian Roles Implementing Agent Roles Clarification of mandates Rules of engagement Budgets and Payments Construction Procurement System Infrastructure Delivery Planning and Budgeting for infrastructure delivery Management of Information and Documentation Expanded Public Works Programme Maintenance 34

35 IDMS Benefits One central point for infrastructure coordination in the province Clear responsibilities and accountability Compliance with Legislation & IDIP requirements Ensure total compliance for built environment regulations and requirements Ensure quality workmanship Uniform and timeous, quality and cost effective infrastructural delivery Improved coordinated effort for updated Fixed Asset Register Reduced risk to the Provincial Government KZN Infrastructure Delivery Model 35

36 Strategic Decision Making Points in IDMs as agreed in the Province and the required capacity in Departments to be able to take these decisions. National Basic Education/Health/National Treasury Requirements and Strategic Policy directionin relation to infrastructure requirements in Provinces. Focussed on key institutional issues that need to be addressed to promote sustainability. Buy-in at Accounting Officer and Political levels. [National and Provincial Spheres of Government]. dpsa consultation and support. IDMS Deliverables

37 Division of Revenue Bill 2013 Part 6: Future work on provincial and municipal fiscal frameworks Provincial infrastructure transfers Infrastructure conditional grants to provinces will be reformed during the 2013 MTEF to introduce incentives in existing grant structures, which will promote good infrastructure delivery management system practices and complement existing capacity support programmes. These incentives will aim to address infrastructure planning and procurement failures in infrastructure delivery. 37

38 IDMS Implementation Province Introductory meeting(s) Agreement on the governance principles Progress with the implementation of the IDMS Sign-off on the IDMS Comment(s) EC Yes Yes Yes Currently being implemented FS Yes Yes No GP Yes In process No FOHOD not meeting / IDMS not part of the agenda of meetings Working towards the September target date for EXCO approval KZN Yes Yes Yes Full Cabinet Supportand being implimented LP Yes Yes Yes Currently being implemented MP No No No Discussed in the previous two PICM no response from the province NC No No No Discussed in the previous two PICM no response from the province NW Yes (previous MEC) No No Discussed in the previous two PICM no response from the province WC Yes Yes Yes Currently being implemented 38

39 KZN-IDMS Progress Ref. KEY ACHIEVEMENT DESCRIPTION 1 Present the KZN Infrastructure Delivery Management System (KZN-IDMS) to the KZN September 2012 Cabinet Lekgotla KZN EXCO approved KZN-IDMS on 22 September 2012 KZN-IDMS Steering Committee formed April 2012-The four IDIPparticipating department's HoDs approved the memorandum which initiated the process for the collective development of the KZN-IDMS Provincial Treasury facilitated Workshops to develop the KwaZulu-Natal Provincial Infrastructure Delivery Management System [KZN-IDMS] Framework for the Health and Education Sector The four IDIP departments HoDs signed the Final KZN- IDMS document by the 24th August Cabinet Lekgotla (11 September 2012) recommend KZN EXCO adopt the KZN-IDMS KZN EXCO (19 September 2012) approve the KZN-IDMS KZN-IDMS Steering Committee formed and first meeting held 16 November 2012 Focus groups ofthesteering Committeeestablished to implement components of the KZN-IDMS 39

40 KZN-IDMS Progress IDIP Technical Management Committee (TMC) KZN CABINET ESID CLUSTER COHOD Depts Implementing IDMS IDMS STEERING COMMITTEE Treasury Health IDMS Five Focus Groups Education 1. Systems and Processes 2. Construction Procurement 3. Operations & Maintenance Public Works 4. Institutional Arrangements & Service Agreements 5. Organisation Development & Human Resource Development 40

41 KZN-IDMS Progress Focus Groups 1 Systems and Processes 2 Construction Procurement Key activities Roles, Responsibilities and Accountability for project initiation, planning, development, implementation, commissioning and maintenance Planning System requirements Finance& Budgeting Review IT Systems e.g. WIMS; PMIS and other systems Develop the KZN Standardised Construction Procurement System [SCPS] Develop and agree on joint structures, process and protocols / delegations for the appointment of consultants and contractors Develop a KZN Constriction Procurement Policy 41

42 Focus Groups 3 Operations and Maintenance 4 Institutional Arrangements & Service Delivery Agreements 5 Organisation Development & Human Resource Development Key activities (to be confirmed in ToRs to be developed for each focus group) Agree institutional arrangements and responsibilities for planned and unplanned (emergency and day to day) maintenance to suit Sector Depts and Implementing Agent Secure Period / Framework contracts to meet sector department requirements Establish a Consultant Data base with sector specialists to respond to short term needs for emergencies and maintenance SDAs / Agreements Infrastructure Governance Structure review and recommendations Execution& Accountability Human Resource and Organisational Development requirements to support infrastructure capacity Financial implications Prepare recruitment and training strategies 42

43 Thank you 43