Limpopo Mpumalanga Gauteng North West Kwazulu- Natal Free State Northern Cape Eastern Cape Western Cape CASP, LETSEMA & LANDCARE 2010/11 & 2011/12 1st QUARTER PERFORMANCE REVIEW PRESENTATION HON. MEC Z CAPA 30 AUGUST 2011 CAPE TOWN
PRESENTATION OUTLINE • CASP goal and purpose • Objectives • Outcome statement • Fourth Quarter and 1st Quarter Performance • Challenges and lessons learnt • Ilima /Letsema • Concluding remarks
GRANT GOAL • To create a favourable and supportive agricultural services environment for the farming community in particular subsistence, smallholder and commercial farmers and to ensure that the challenge of food security for the province and for the poor and vulnerable in our society is overcome.
GRANT PURPOSE • To expand the provision of agricultural support services, and to promote and facilitate agricultural development by targeting subsistence, smallholder and commercial farmers. • Land Care Grant purpose to empower land users on best practices and techniques in order to sustain the use of their natural resources (soil, water & vegetation).
GRANT PURPOSE • To educate Local Authorities and members of the community through awareness campaigns on current regulations which govern the use of natural resources, control of illegal sand and stone mining and to implement the Junior Land Care projects to enhance the sustainable utilization of natural resources through the eradication of invader alien plants, construction of contours and building erosion structures.
GRANT OBJECTIVES • To provide on and off farm infrastructure • To provide technical and advisory services • To provide training and capacity building • To provide information and knowledge management • To provide financial assistance
INFRASTRUCTURE STATUS OF EXPENDITURE AND IMPLEMENTATION PERFORMANCE – END QUARTER 1 • 2010/11 performance & reasons for deviation • 2011/12 – Quarter 1 expenditure vs IYM & reasons for deviations • 2011/12 status of project implementation w.r.t. project cycle • IPIP’s – usefulness and readiness 11/12 & 12/13 • Challenges & conclusion
JOBS CREATED • Five hundred and forty three (543) casual workers were employed during the period for land rehabilitation programme and 1, 630 ha of land reclaimed for productive use.
JOB CREATION PROJECTED FOR THE YEAR 2011/12 • 2545 jobs projected for 2011/12 • Out of this 614 jobs have been created. • The spread of the jobs created are as follows: • 582 employed from EPWP - Infrastructure Development ( CASP + Landcare) • 32 employed on commercial farms - jobs created. TOTAL – 614 jobs created in 1st Quarter, 2011/12
INFRASTRUCTURE ( B5 ) EXPENDITURE FOR 2010/11 REASONS FOR DEVIATION 2010/11 • Slower than projected onset of construction phase due the Dept. adjusting to new top management of the Dept. at onset of 10/11 • The construction phases of most projects were slowed as a result of the unusually excessive rain and wet conditions experienced during the summer period. – Work extended into 11/12 for some projects. • Delayed construction and expenditure in third quarter resulted in 4th quarter tranche of CASP ( R 16 mil) being witheld. Invoices on-hand at year end (R 13.5 mil) resulted in Accruals to 11/12 and strong justification for Roll-over. • Roll-over justification & request also submitted for IGP & Landcare
LANDCARE REASONS FOR DEVIATION 2010/11 • The main reason for major deviation in achieving the set targets was the delay in finalizing contractual agreement with payment agent (Post Office) which has the responsibility to manage all EPWP component of Land Care programme in the province. • The delay has therefore affected engagement of casual workers in all activities that require labour force, such as reclamation work, construction of gabion structures, erection of fences etc. • Roll-over justification & request also submitted for Landcare
CASP BUDGET status: 30 June 2011 ANNUAL PERSPECTIVE Quarter 1 PERSPECTIVE
INFRASTRUCTURE EXPENDITURE vs PROJECTIONS FOR QUARTER 1 ( B4 PROJECTS): 30 June 2011 EXPENDITURE PER GRANT TYPE – ( R’000’S)
INFRASTRUCTURE EXPENDITURE vs PROJECTIONS FOR QUARTER 1 ( B4 PROJECTS): 30 June 2011 EXPENDITURE PER B4 INFRASTRUCTURE CATEGORY – ( R’000’S)
DISCUSSION OF DEVIATIONS AND PROJECTIONS • CASP • Over-Expenditure of R 243 000 for Quarter 1 – due to payment of accruals from 10/11 that result from withholding of 4th quarter tranche of 10/11 . • The IRM cash flow projections have been adjusted to accommodate actual Q1 expenditure and now differ from IYM and IPIP projections. IYM projections to be amended at earliest opportunity. • Payment of accruals has meant that some projects placed on-hold. • Projects on-hold to be resumed on receipt of of Roll-over funds • LANDCARE • Under-expenditure for Landcare for Q1 of R 609 000 arises from setting up the procedure to pay EPWP community workers directly, usinf Post office as payment agent, as part of community construction projects. Procedure involves Dept. buying materials and providing training &supervision during the construction by community ( mostly fencing projects). • Procedures to be in place during Q2 – construction to be caught –up.
INFRASTRUCTURE MAINTENANCE PLAN • The Department (DRDAR) does not own any of the immoveable assets delivered through its infrastructure budget. Practically all service delivery of infrastructure is received by beneficiaries who thereafter assume ownership of the asset.The responsibility for maintenance of these immoveable assets follows ownership. • In terms of agreements signed with each of the beneficiaries who receive the immoveable assets from the Department, the beneficiaries are responsible for the maintenance of the assets. The Department therefore has no routine maintenance plan in operation. • In Terms of a lifecycle management plan for infrastructure items the Department has adopted national (SANS) and international standards as guidance in this regard. The Department intends to critically assess the need for renewal and/or replacement from an economic perspective, for example, immoveable asset life span and “beyond maintenance” functionality, or the option of acquisition versus renewal.
PROJECT CYCLE - 11/12 – Basis for Infrastr. Programme Implementation plan ( IPIP )
INFRASTRUCTURE PROGRAMME IMPLEMENTATION PLANS ( IPIP’s) FOR 2011/12 & 12/13 • 11/12 IPIP serves as useful planning and monitoring tool – but effect of accruals – causes deviations from IPIP thereby reducing value as the year progresses. • 12/13 projects provisional at this stage –except for multi-year projects. Projects currently undergoing approval process through joint assessment committee with Dept. Rural Dev & land Reform ( ECLAAC / PTC body). • No under-spending is planned for or anticipated for the 2011/12 year. • Expenditure for quarter 1 is marginally ahead of schedule and the progression of implementation does not indicate potential under-spending in 11/12
CHALENGES & CONCLUSION • Accruals – ( 4th tranche of 2010/11 funds withheld) • Roll-over Request: CASP- R 16.2 mil, IGP – R 16.2 mil, Landcare – R 0.8 mil. • Technical capacity – within Dept. is limiting but augmented through use of consultants for big projects • Capacity and credit facilities for developing contractors causes extension of construction time and deviation from IPIP. • Community construction is being expanded to increase EPWP benefits to community workers.
WE NEED TO FIX THE RAILWAY LINE ABOVE ENKOSI KAKHULU 27