Transcript PRIVATE SECTOR AND INTERNATIONAL INVESTMENTS

SIYENZA MANJE PROGRAMME
Capacity Building
Lessons Learned
Reuben Matlala
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Mandate of the Development Bank of Southern Africa
•
To promote economic development and growth,
human resources development and institutional
capacity building in the region
• To support sustainable development projects and
programmes in the region
• Focus on economic, social and institutional
infrastructure
• Optimise private sector participation
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Products and Services

DBSA development support can be divided into the
following categories
 Investments loans
• For infrastructure projects
 Technical assistance and other non-lending products
• For planning and capacity building related to specific
projects
• Advisory services and a range of knowledge products
 Capacity building grants
• Offered through the Development Fund
• For general capacity needs of institutions
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Project Consolidate

National Advisory Working Group identifies DBSA’s role
in project consolidate

Presidential Lekgotla: President asks chair of DBSA to
provide 1 of many interventions to support capacity
building at municipal level

DBSA Development Fund Board approve a dedicated
capacity building task force
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The Reinvention of the DBSA Development Fund

Our original Mandate
 To support local governments institutional capacity by
providing grant funding to enhance and improve
performance
 The impact of our intervention
 Significant impact, exceeding expectations with notable
outcomes being felt by many municipalities around the
country
 The need for change
 The DBSA Development Fund is adapting its strategy
and delivery mechanisms to provide support in
“unblocking” recurring institutional constraints of
municipal service delivery
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Challenges facing Municipalities

A number of factors have been identified as constraints
inhibiting service delivery:
 Grant Funding alone does not necessarily result in
success
 Effective project management results in successful
capacity building initiatives
 Classroom training is not the most effective way to build
capacity of municipal officials
 Lack of coordination between national departments
results in duplication of resources
 Capacity constraints occur at all stages of
implementation including preparation of MIG applications
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Effect on Municipalities


The challenge of bridging the gap between skills
shortages and service delivery:
 High staff turnover
 Lack of skilled personnel
Despite various government interventions:
 Continued poor capacity in some areas resulting in poor
implementation of infrastructure projects
 Poor absorption of grant funding
 Civil unrest
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A New approach to Development Funding

The DBSA DF have reinvented their approach to
Development Funding in response to the changing local
government landscape

80/20 principle to apply to the recapitalisation of the DBSA
Development Fund
 80% Deployment Task Force
 20% Grant Funding
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“ The Development Bank of Southern Africa is
currently assembling a task force of engineers and
project managers, to be named Siyenza Manje, to
contribute to operational and strategic capacity in
distressed municipalities, and to accelerate the roll
out of basic services”
Budget Speech 2006 by the Minister of Finance,
Trevor A Manuel
15 February 2006
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Deployment Task Force


The purpose of the task force
 Engage capable human resources in low-capacity
municipalities
 To provide capacity in these municipalities in
implementing infrastructure projects
 Hands on and practical capacity building
Composition of the task force
 Project management
 Technical services
 Financial management / treasury services
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Performance Highlights
 The Siyenza Manje Programme has shown a significant impact in many
municipalities
 5-Year Local Govt Agenda has prioritized the following category of
municipalities for support:
 136 PC municipalities
 46 distressed District municipalities
 21 urban and rural nodes
 Imbizo municipalities
 Realigned X-boundary municipalities
 Mentorship of Graduates by senior Engineers
 Local Govt Agenda identifies DBSA as a key role player in provision of
hands on support to municipalities
 Necessary that the programme be upscaled, both in structure and
content to consolidate current support and meet increasing demand
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Performance Highlights

158 experts deployed
 79 YP’s deployed
 135 Municipalities currently supported
 1579 (1051 MIG and 528 CAPEX) projects managed by
deployees
 261 projects completed
 316 non technical initiatives managed by deployees
 R2.5 billion MIG Budget
 R1.9 billion MIG expenditure
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Performance Highlights

93 systems developed
 165 policies developed
 177 officials trained in financial related areas
 131 officials trained on technical aspects
 R24 million approved grant funded projects
 R34 million disbursed from old portfolio
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Risks/Challenges
Risk/Challenge
Level of
risk
Mitigation Measure
Deployee turn over
H
Review terms and conditions for employment, i.e.
duration of contract, continuous development
programme, deployment closer to home
Growth in demand for engineering
and finance skills impacting on
deployment
H
Facilitating an arrangement with SAICE to take over its
deployment programme and suggesting ways to retain
deployees
Staff vacancies and turn over
impacting on sustainability
H
Roll out of young professionals programme
Poor or unavailable SCM policies in
poor municipalities which affect
implementation of grant funded
projects
H
Assist municipalities to appoint Service Providers using
DBSA procedures especially where we provide 100%
funding.
Municipalities fail to fund the
training of their officials in critical
areas affecting Siyenza Manje
implementation
H
Provide fully funded training to senior officials and
political leadership through DBSA Vulindlela Academy in
Siyenza Manje municipalities.
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What has changed?






Shortage of Experts in the market a problem
Demand for increased delivery of services
Approached by non PC municipalities
Proportion of YPs to increase to about 38% on up-scaling
by March 2008
The strategy in 2008/9 FY is to have 2 YPs for each senior
Expert deployed
Need to up scale SM project
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Objectives and Consequences of Upscaling


Increased coverage of municipalities supported (demand side)
Increased number and value of projects managed and implemented
(current:1345, projected: 2540)
 Increased acceleration of service delivery and capacity building (5-Yr
LGSA objectives)
 Need for improving program management, processes and reporting
framework (systems, procedures, protocol etc)
 Increased demand for back office administration and management
(program managers, support staff)
Consequence
 Increased number of deployees, YPs and deployments (supply side)
 Increased number of YPs per senior Expert deployed (skills transfer
and capacity building for sustainability)
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Rationale for Upscaling


71 SM municipality have adequate expert/YP deployed capacity
Upscaling required in order to;

Meet increased demand for deployment/capacity support
 Consolidate support where we are stretched
 Deploy in 35 remaining PC municipalities
 Deploy in new non-PC municipalities with backlogs
 Deploy in non-PC water service authorities in line with the 5-Yr LGSA
 Additional resource needs for experts demonstrated below;
Municipality Type
Nos
Technical
Financial
YPs
Apprentice YPs
Total
Consolidate SM support
30
1
1
2
2
180
Project Consolidate
35
1
1
2
2
210
Water Service Authorities
46
1
0
1
0
92
New mun. with backlogs
30
*
1
1
2
120
* PSPs to provide 1 Project Manager, 1 Engineer, 2 Technicians
602
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Rationale for Upscaling 2



Ensure sustainable residual capacity in (YPs)
Address Operations and maintenance problems in
municipalities
Improve municipal management and governance
Which will result in DBSA
 Effectively spending the allocated 2007/8 budget
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Conceptual Deployment Model in Municipalities
Deployment Model to Ensure Programme Sustainability
Experts (Engineers & Technologists)
Initial assumption:
1 YP per 1 Expert
3 Yrs
Graduates (YPs)
Current assumption:
2 YPs per 1 Expert
Technicians
3 Yrs
Graduate Technicians (YPs)
Artisans
3 Yrs
Universities
Univ Tech
High Schools
FETs
Apprentiship
Learnership
Section 28
FET graduates
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Categories of Deployees, Roles and Numbers
Category
Function
Current Future
Experts
Projects planning,
coordination and
management
118
324
Grad Engineers
PM & Finance
Projects implementation
and exp. learning
10
51
Technicians
Site supervision
34
100
Grad Techs
Team supervision
and exp. learning
1
100
Artisans
Operations and
Maintenance
0
Apprentice
O&M and
Experiential Learning
0
190
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Programme Recruitment and Deployment Plan
Category
Current Status: Upscale:
Sub-Total
Oct 07
Nov 07- Mar
08
Upscale:
Apr 08- Mar
09
Technical Experts
67
25
92
86
Financial Experts
51
17
68
78
Graduate YPs
45
55
100
151
Artisan YPs
0
50
50
140
Total
163
147
310
445
PSPs
0
30
30
0
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How are we planning to upscale

Continued recruitment of individual experts and YPs for
deployment (Meet increased demand)

Outsourcing (Complementary strategy to meet increased demand)

Roll out appropriate, structured training programmes for
YPs (Ensure residual capacity)

Pilot Artisans deployment programme (Sustainable strategy
to address O&M of infrastructure)

Training of municipal officials and political leadership
(Improve management and governance)
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Strategy to Accelerate Deployments

No. of Deployees/PSPs
Planned Up-scaling of Dedployments
Oct 2007 - Mar 2008
180
160
140
120
100
80
60
40
20
0
160
145
125
118
130
125
75
45
0
Oct
60
10
Nov
90
100
YP
60
10
Dec
PSPs
Experts
20
Jan
20
Feb
30
Accelerate recruitment
and deployment of
Experts and YPs
 Increase number of
Experts to 160 and
YPs to 100 by March
2008
 Deploy PSPs in 30
municipalities by
March 2008
Mar
Months (2007/8 FY)
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Impact of Upscaling Strategy on Municipal Sustainability
Proportion of YPs in the Upscaling Strategy


38%
Experts
Current proportion of YPs to
senior Experts: 29%
Initial strategy 1 YP: 1
Expert
YP
62%
Proportion of YPs in the Current Deployment Strategy
29%
Experts
YP
71%
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Conclusion





Significant progress has been made
Local govt transformation is a process
Better coordination of capacity building
initiatives
Evaluation of SM in progress
Refinement on SM model continuing
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