The Department of Public Works and Infrastructure (DPWI) has been allocated R25.5-billion over the medium-term. These funds will be spent on seven priority areas, Minister Patricia de Lille said during her budget vote on May 25.

The department’s budget allocation for this financial year is R8.3-billion.

For the 2021/22 financial year, the DPWI will be disbursing allocations to eligible public bodies in the Expanded Public Works Programme (EPWP) in three sectors.

This entails R1.18-billion in the 2021/22 financial year in the infrastructure, environment and culture and the social sectors; R1-billion for the non-State sector programme; and R414-million in the social sector.

During the 2020/21 financial year, the EPWP had transferred 99.9% of the budget to eligible entities, but withheld R1.8-million owing to non-compliance by provinces, De Lille pointed out.

She indicated that there have been concerns about the reporting by provinces and municipalities of the EPWP; and, in 2020/21, the department conducted a social audit study in three areas to assess the impact of the programme in communities.

Meanwhile, under the Prestige programmes, funding for government functions, State visits and funerals will reduce from R94-million in 2021/22 to R83-million in 2023/24.

De Lille said the department was continuing to implement austerity measures, mainly for State functions.

The budget allocation for the Property Management Trading Entity (PMTE) is R4.2-billion for the 2021/22 financial year. The entity will focus on refurbishing and maintaining government buildings in its portfolio, as well as on developing 12 small fishing harbours.

Under the PMTE allocation, R945.7-million is allocated to the DPWI-specific infrastructure projects.

As part of the integrated planning and development, the department has completed the township establishment at the Salvokop Precinct mixed-used precinct in Tshwane. The process for the appointment of a contractor to install bulk and internal services at the precinct is currently being finalised.

The department’s Photovoltaic and Water Savings on the Government Buildings Programme aims to reduce energy consumption by between 22% and 45% over the programme’s life and reduce water consumption by between 30% and 55%, which would equate to estimated savings of R500-billion over 30 years for government, said De Lille.

The programme had been gazetted as a Strategic Infrastructure Project (SIP) in July 2020. 

The programme has received National Treasury approval for Phase 1 and is registered to be implemented in collaboration with the private sector, allowing it to proceed to Phase 2.

The SIP will be able to go to market in the next few months, said De Lille.

The department’s Real Estate Investment Services that undertakes the work of land reform has been allocated R220-million for this financial year, said De Lille, noting that this branch spent 98% of its budget in the previous financial year.

In the 2021/22 financial year, the department plans to release 21 132 ha for land restitution; 10 951 ha for Human Settlements; and 180 ha for other socioeconomic purposes, informed De Lille.

The Real Estate Register and Information Services is responsible for the department’s Immovable Asset Register and it will receive R62-million in the current financial year.

The department is planning to conduct a proof of concept to transfer the immovable assets register onto a blockchain platform to enhance transparency and credibility, De Lille noted.

In this financial year, the department will prepare and release more properties across the country for social development to use in the fight against gender-based violence and femicide, she added.

The department’s Facilities Management Branch, which will be doing repair work and maintenance on State-owned buildings, received an allocation of R3.9-billion for the current year to maintain the entity’s portfolio of properties.

The department has enhanced its strategy in reducing reactive maintenance by putting in place preventive contracts through total facilities management and term contracts, said De Lille.

The department’s Construction Project Management Branch received an allocation of R5-billion for the current year; and only managed to spend 69% of its allocated budget in the prior year, she pointed out.

The reasons for underspending are mainly poor contract management and poor cash flows from contractors.

In mitigation, the department has established a panel of contractors that will be used in an instance where a contractor has been terminated owing to poor performance of any other justifiable reasons, said De Lille.

In terms of the 30% subcontracting requirement, during the past financial year, the department awarded 15 tenders of above R30-million, and worth a collective R836-million, and subcontracted 30% to designated groups to the value of R251-million.

POLICY

The Expropriation Bill was introduced in Parliament in October 2020, and the processes are currently underway, including public hearings and oral representation in all provinces. 

The department plans to introduce the Public Works General Laws Amendment and Repeal Bill to Parliament in the 2021/22 financial year.

Moreover, it is currently developing the Construction Industry Development Board Act Amendment Bill, and this legislation will be introduced to Parliament during this financial year.

The Draft Public Works Bill will be gazetted for public comment during this financial year, said De Lille.

The department will also publish regulations for both the Infrastructure Development Act and the Government Immovable Asset Management Act this financial year.

In terms of the Welisizwe Bridges project, De Lille said ten bridges were completed in the Eastern Cape and a further 20 are scheduled for installation in the current financial year.

In KwaZulu-Natal, eight bridges were installed during this past financial year, with a further six to be completed by the end of this month. A further 20 are scheduled for installation in this financial year, said De Lille.

The department contributes to Operation Phakisa: Oceans Economy through the Small Harbours and State Coastal Property Development Programme.

The programme is expected to reach culmination by March 2022, bringing the existing harbours to an 80% operational efficiency.

In seeking to develop new harbours, the department is finalising the in-kind grant from the Chinese government to conduct feasibility studies along the coastlines of the Northern Cape, Eastern Cape and KwaZulu-Natal, said De Lille.