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REMARKS BY GAUTENG MEC FOR INFRASTRUCTURE DEVELOPMENT AND COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS AT THE TABLING OF THE DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT ANNUAL REPORT 2024, ON 05 SEPTEMBER 2024

Honourable Speaker, 

Honourable Deputy Speaker, 

Honourable Premier, 

Honourable colleagues in the Executive Council, 

Honourable members of this House, 

Revered Chief of the Majority Party the African National Congress, the much-revered Honourable Lesego Makhubela, 

The People of our beloved Province of Gauteng, 

Ladies and Gentlemen,

Thank you, Honourable Speaker, for the opportunity to present the Annual Report for the Gauteng Department of Infrastructure Development for the financial year ended 31 March 2024. This report serves as a comprehensive roadmap for the implementation of the department's strategic objectives, meticulously set out in the five-year strategic plan for 2023/24. This presentation reaffirms our unwavering commitment to enhancing our technical and administrative capacity as a means to maintain a highly efficient, effective, and development-oriented public service. Our aim is to actively collaborate with empowered, fair, and inclusive citizens. We are confident that our department has the potential to emerge as a leader in infrastructure delivery, ensuring that all invoices are paid promptly, within the prescribed time, and with a steadfast focus on quality and cost-effectiveness.

I am pleased to report a significant milestone: the attainment of our fourth consecutive unqualified audit outcomes on the annual financial statements and performance reports, with no material misstatements and a notable reduction in non-compliance with laws and regulations, as determined by the Auditor-General of South Africa (AGSA). Furthermore, the department continues to demonstrate exemplary compliance with e-disclosure requirements for the Senior Management Team and all other officials, as mandated by the Department of Public Service and Administration (DPSA).

During the year under review, the department was allocated a substantial budget of R3.773 billion, of which R3.756 billion has been judiciously spent. Despite spending 99.55% of the allocated budget, the department underspent by R16.9 million, a marked improvement compared to the R112 million underspent in the previous financial year. Of the R16.9 million underspent, R6.2 million related to alternative energy, R5 million to maintenance and repairs, R1.4 million to legal services, and R4.1 million to security services. Overall, the 2023/24 allocation increased from R3.3 billion in the prior year to R3.7 billion, primarily due to an additional R329 million received for alternative energy and R100 million for office accommodation. We take immense pride in our achievements, particularly in the area of energy.

Alternative Solar Energy Solutions

The province has strategically invested in alternative energy solutions, a critical intervention in response to Premier Panyaza Lesufi's directive. This initiative aligns with the National Development Plan 2030 and the Growing Gauteng Together action plan, both of which aim to contribute positively to the United Nations' Environmental Sustainability Goals.

The Department is at the forefront of delivering Premier Lesufi's visionary Gauteng Energy Response Plan through the implementation of a groundbreaking R329 million investment in the GPG Solar PV and Battery Energy Storage System (BESS) Programme. This pioneering just energy transition programme has already rolled out solar systems at 28 health facilities, including 10 hospitals across Gauteng, such as Thelle Mogoerane Regional, Jubilee, South Rand, and Kopanong hospitals. Over 12,400 solar panels have been installed under this programme. Thirteen Small, Medium, and Micro Enterprises (SMMEs) were appointed, creating 237 direct job opportunities, 187 indirect jobs, and 50 work opportunities for Expanded Public Works Programme (EPWP) participants. This large-scale rollout of Solar PV and Battery Storage technology will provide a sustainable energy mix, drastically reducing the impact of loadshedding on Gauteng Provincial Government health facilities.

Programme 1: Administration

Administration was allocated a budget of R531 million, with R530 million already spent. The budget allocation for the current year saw an 11% increase compared to the previous financial year, largely due to the settlement of court orders and cost of living adjustments provided by the Provincial Treasury. This programme provides essential strategic leadership to the department and supports core programmes, with all activities within this programme being administrative in nature. The underspending of R1.5 million relates to legal services. The department spent 99.7% of its allocation in 2023/24, compared to 93.5% in 2022/23. The Office of the MEC and Corporate Support spent 100% and 99.7% of their allocated budgets, respectively, while Management also spent 100%.

Programme 2: Public Works

Honourable members, the Public Works Programme was allocated a budget of R2.9 billion in 2023/24, an increase from R2.7 billion in the previous financial year. This overall increase is attributed to additional funding for alternative energy and office accommodation. To date, the department has spent 99.5% of its current year's budget, an improvement from the 97.9% spent in the previous financial year. The underspending of R15.4 million relates to current-year invoices for repairs, maintenance, alternative energy, and security services. Although the department received these services within the year, invoices were submitted for payment after the cut-off period and will be settled in the following year. Construction spent 98% of its allocated budget, Maintenance spent 104%, and Immovable Assets spent 99.6%.

Programme 3: Extended Public Works Programme

The Extended Public Works Programme (EPWP) remains a key priority of the province, as it plays a vital role in developing and empowering communities. The programme aims to enhance the skills of beneficiaries, empowering them to become self-sufficient after exiting the programme. In 2023/24, two new programmes were introduced—Vacant Sites and Facilities, and Health Maintenance—to further improve the skills of beneficiaries. The EPWP was allocated a budget of R272 million for 2023/24, a significant increase from the previous year's budget of R149 million. This increase is due to the introduction of the two new programmes and expanded training services. The EPWP accounts for 7.2% of the overall departmental budget. The programme spent 100% of its current budget, a notable improvement from the 83% spent in the previous financial year. Programme support spent 99.9%, and Community Development spent 100% of their allocated budgets.

Public-Private Partnerships

The Executive Council has mandated the department to refurbish all head office accommodations within the province to comply with the latest regulations and standards. In response, the department has explored various funding options, with Public-Private Partnerships (PPPs) emerging as the preferred choice. This approach will enable the department to provide office accommodation by consolidating the head office and administrative functions of all Gauteng Provincial Government departments within the Johannesburg Central Business District. The feasibility report and Treasury Approval IIA, relating to design and bid documents, have been approved. A request for proposals (RFP) was advertised through an open tender process, although the advert had not yet closed by the end of the financial year.

Casting Our Eyes to the Future

The department has launched two programmes within EPWP aimed at reducing unemployment through the health Maintenance Programme.

Our Department, in collaboration with the Gauteng Department of Health (DoH), is implementing the EPWP Health Maintenance Programme across three Metropolitans and two District Municipalities within Gauteng. This initiative is expected to benefit 1,230 participants across five corridors of the province, who will be engaged in garden maintenance and the cleaning of administration blocks for 12 months. The programme places special emphasis on women, youth, and people with disabilities, including adults, aiming to draw significant numbers of unemployed individuals into productive work.

The objectives of this programme include:

- Creating sustainable, labour-intensive work opportunities;

- Offering work opportunities to unskilled and unemployed youth;

- Supporting DID's objective to sustain employment opportunities and contribute to poverty eradication;

- Increasing the employability and self-sufficiency of young people by providing them with skills, work experience, and exposure to the working environment;

- Providing garden maintenance and cleaning services for administrative facilities within health institutions;

- Instilling a sense of pride and ownership within the community by maintaining a safe and clean environment.

To this end, the department has allocated a budget of R52 million for 2023/24.

Vacant Land and Facilities Maintenance:

This programme involves the manual and physical clearing of provincially-owned vacant sites and properties, with maintenance of grounds and offices carried out by employing the most disadvantaged as labour. Implemented as part of the EPWP, and spearheaded by the Gauteng Department of Infrastructure Development, this programme contributes towards poverty eradication and job creation. The objective is to provide a cost-effective, labour-intensive method of routine site maintenance of provincial vacant sites or other duties as directed by the Head of Department: Infrastructure Development or their designee, in a sustainable manner. Target groups include women, youth, and people with disabilities, including adults. The programme has been allocated a budget of R43 million for 2023/24. In collaboration with relevant stakeholders and businesses, the department may arrange both accredited and non-accredited training for participants, covering areas such as:

- Technical skills (use of equipment and site clearance techniques);

- Grass cutting;

- Basic safety matters;

- First aid;

- Basic life skills (financial management, health and hygiene, HIV/AIDS, sexual reproduction, etc.);

- Social development skills;

- Identification of indigenous trees and alien plants.

Honourable Speaker, Infrastructure Development plays a critical role in service delivery. It dictates what amenities the people of our province have access to. Infrastructure delayed has a direct impact on the quality of life of our residents.  While challenges remain, we are resolute in our commitment to getting the basics right. We are presented with no choice but to get the basics right and ensure that avoidable delays can be tackled head. Through solutions including:

- The Infrastructure Project Governance Lab: The Governance Lab will focus on project enforcement and will provide the necessary oversight for the successful implementation of project outcomes. It will also include the Project Readiness Matrix (PRM) which serves as a critical governance tool to assist clarify roles, foster accountability and foster communication among all stakeholders.

- Smart Technologies: The purposeful integration of smart technology solutions into the construction project management delivery ecosystem will enhance compliance to the Project Readiness Matrix. It will also play a critical role in identifying potential issues before they occur and reducing unforeseen project costs and delays.

- The Infrastructure Project Rescue Practitioners: We need to pay more focus on projects delayed due to contractors being in financial distress. We will introduce early warning systems for all infrastructure projects which are in financial distress. We will also appoint Project Rescue Practitioners to provide financial liquidity for complete the affected projects. This will save infrastructure projects from being abandoned, and also save us from time exhausting litigations, contract terminations and contractor re-appointment processes.

-  The Project Site Compliance: We will emphasise our attention on effective site management of all construction sites to ensure standardization and compliance with the PRM. The use of technology will also enable Project Managers to generate visual data, interactive site views, maps, photographs as well as geographic data. Active monitoring will ensure that all smart solutions being implemented are fit-for-purpose. Active collaboration with critical project stakeholders and local government stakeholders will also be of high priority.

As I close honourable members, I cannot overstate the importance of the use of technology in improving transparency and accountability, enabling client departments as well as all our critical stakeholder to conduct effective oversight on the work that we do. We further intend to ensure that our compliance management tool, the Project Readiness Matrix becomes official policy for infrastructure delivery. We believe that the period under review provides us with valuable insights and opportunities to improve the delivery of social infrastructure, while also contributing to economic growth.

Thank you.