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Municipal Infrastructure Support Agent ____________________________________________________ The Role of the Municipal Infrastructure Support Agent in the Provisioning of Energy Infrastructure Briefing to the Portfolio Committee on Energy Date:Tuesday, 10 September 2013, Venue: M514, 5 th Floor, Marks Building, Parliament, Cape Town Slide 2 CONTENTS 1.OVERVIEW OF MISA 2.KEY MISA PROGRAMMES AND PROGRESS ON IMPLEMENTATION 3.RELATIONSHIP WITH DBSA ON INFRASTRUCTURE DELIVERY 4.STRATEGIC INTEGRATED PROJECTS 5.ROLE OF MISA ON ADAM 6.CONCLUSION AND WAY FORWARD 2015/11/27MISA Briefing to Energy PC2 Slide 3 OVERVIEW OF MISA Institutional Form MISA was established by Presidential Proclamation 29 of 2012, which was gazetted on the 11 th May 2012 The establishment of MISA was one of the key thrusts of the Local Government Turnaround Strategy (LGTAS) aimed at creating a dedicated vehicle to support and build technical capacity in local government for the improvement of municipal infrastructure provisioning, refurbishment and maintenance; Anticipating the establishment of MISA, government took a decision to unbundle Siyenza Manje with the infrastructure component transferred to CoGTA and financial management component transferred to National Treasury, with effect from 01 April 2011. MISA is operationally ring-fenced from the Department of Cooperative Governance, but linked to it for policy implementation purposes. The head of MISA is the Accounting Officer in terms of the Public Finance Management Act, No.1 of 1999, as amended. MISA has been allocated its own operational budget of R820m over the MTEF period, with R262m allocated for 2013/14 FY. 2015/11/27MISA Briefing to Energy PC3 Slide 4 OVERVIEW OF MISA Vision and Mission Vision: Sustainable municipal infrastructure and service delivery. Mission: i)To provide technical support to municipalities towards accelerated delivery and effective management of municipal infrastructure; ii)To enhance technical capacity of municipalities to ensure effective planning, delivery, operations and maintenance of municipal infrastructure for sustainable service provision. 2015/11/27MISA Briefing to Energy PC4 Slide 5 OVERVIEW OF MISA Core Mandate MISAs two-pronged mandate can therefore be summarised as follows: i.To render technical advice and support in order to optimise municipal infrastructure provisioning. ii.To coordinate the development and implementation of programmes designed to strengthen the capacity of municipalities for planning, developing, operations and maintenance of their municipal infrastructure. It is not within MISAs mandate to provide funds/ grants to municipalities for either infrastructure projects implementation or the costs of maintaining and refurbishing such infrastructure. Its mandate is to give technical assistance to enable municipalities to perform these functions effectively. 2015/11/27MISA Briefing to Energy PC5 Slide 6 OVERVIEW OF MISA MISAs Role and Responsibility 2015/11/27MISA Briefing to Energy PC6 Flowing from the mandate, MISAs primary role and responsibilities are therefore: 1.To support municipalities to conduct effective infrastructure planning; 2.To support and assist with the delivery of infrastructure in municipalities; 3.To support and assist with operation and maintenance of infrastructure in municipalities; and 4.To build the capacity of municipalities to undertake effective planning, delivery, operations and management of municipal infrastructure Slide 7 KEY PROGRAMMES Overview of Key Support Programme 2015/11/27MISA Briefing to Energy PC7 MISA has developed and is currently implementing the following programmes in order to be able to deliver on its mandate and fulfil its roles and responsibilities: Municipal Technical Support Programme to ensure that MISA provides technical support to those municipalities that require assistance with technical aspects of infrastructure planning, implementation, operation and/or maintenance. Support provided is based on a needs assessment and agreement with municipalities. This buy-in from municipalities is essential for ownership and sustainability of support initiatives. Sectoral Support, Coordination and Grants ensures that resources from different departments and institutions are properly coordinated to address sectoral priorities towards eradication of service backlogs in water and sanitation, energy, solid waste management and roads and storm water. This programme also supports municipalities to ensure effective utilization of grants, especially the Municipal Infrastructure Grant. Slide 8 KEY PROGRAMMES Overview of Key Support Programme Cont 2015/11/27MISA Briefing to Energy PC8 Capacity Development Programme ensures that technical capacity is developed in local government for planning, delivering, operating and maintaining municipal infrastructure. Capacity development is implemented through various programmes, including apprenticeships, young professionals, experiential learning and rotating key municipal officials to the private sector and academia for exposure. Bursaries are made available for studies in built environment, especially engineering, to build a pipeline of future technical officials for municipalities. The programme also provides mentorship opportunities for technical officials in municipalities to meet the requirements for professional registration. Working in partnership with other public institutions, private sector companies, tertiary institutions and professional bodies forms an important part of MISAs capacity development strategy. Vendor, Legal and Contract Management ensures that professional service providers are deployed to municipalities that require technical support, effectively managing their contracts and performance, and provide legal and contract management support to MISA. Monitoring and Evaluation MISA is currently developing a system that will ensure effective monitoring and optimization of the performance of the municipal infrastructure. Slide 9 KEY PROGRAMMES Progress : Municipal Technical Support 2015/11/27MISA Briefing to Energy PC9 A total of 92 municipalities have been assisted to develop and adopt Integrated Support Plans; these are part of the 108 municipalities prioritised by CoGTA for LGTAS support. Included among these 108 municipalities are the 23 (+2) districts selected by cabinet for focussed support towards the reduction of their high service backlogs. An Integrated Support Plan (ISP) for each municipality was informed by the outcome of a diagnostic assessment conducted. The approach is to ensure that support provided is tailor-made for each municipality to respond to its peculiar challenges identified during the assessment. Support being provided to these municipalities is intended to mainly address their respective weaknesses in infrastructure and service provision. Slide 10 KEY PROGRAMMES Progress : Municipal Technical Support Cont 2015/11/27MISA Briefing to Energy PC10 MISA currently has 77 technical (engineering and planning) professionals deployed to support a total of 107 municipalities throughout the country. In addition to the deployed professionals a total of 25 Professional Service Providers (PSPs) have been contracted and assigned to support prioritised municipalities. The main role of PSPs is to assist each municipality in addressing specific issues pertaining to the infrastructure and service delivery backlogs and effective maintenance of existing infrastructure. Approximately 922 municipal infrastructure projects are currently being accelerated by MISA Technical Experts: Water & Sanitation (505 Projects), Roads (170 Projects), Electricity (58 Projects), Solid Waste (34 Projects) and Other (155 Projects). Slide 11 KEY PROGRAMMES Progress : Sector and Grants Support 2015/11/27MISA Briefing to Energy PC11 MISA is collaborating with sector departments in the provision of integrated support that seeks to address service and infrastructure backlogs, appropriate service delivery models and sector specific skills needs in respect of the key sectors such as water and sanitation; energy, waste collection and municipal roads. MISA is providing support to 24 district municipalities that are Water Service Authorities (WSAs) in accordance with a joint support plan which was developed and is being implemented in conjunction with DWA. In collaboration with DWA, backlogs analysis for water has been completed for all the 24 districts (analysis show backlogs per settlement classified in terms of: backlogs due lack of infrastructure, backlog due non-functional infrastructure, backlog due lack of sources and backlog due to new settlement extensions) Work is underway to align the current funding (MIG, RBIG, MWIG and other) to address identified backlog per village/settlement Slide 12 KEY PROGRAMMES Progress : Sector and Grants Support (Waste Management) 2015/11/27MISA Briefing to Energy PC12 Develop/review/update Integrated Waste Management Plans (IWMPs) for municipalities. Eastern Cape Engcobo & Sakhisizwe LMs Free State Masilonyana, Nala, Mohokare & Ngwathe LMs KwaZulu Natal Maphumulo & Ndwede LMs Gauteng Randfontein LM Mpumalanga Dipaleseng & Thaba Chweu LMs Limpopo Capricorn District LMs, Musina & Elias Motsoaledi LMs Northern Cape John Taolo Gaetsewe DM Licensing of Landfill Sites in Municipalities Eastern Cape Kouga LM (St Francis Bay Site), Koukamma LM (Ravinia site), Emalahleni LM (Indwe Transfer Station) Free State Mohokare LM (Smithsfield & Zastron sites), Ngwathe LMs (Parys, Koppies, Vredefort & Edenville sites) KwaZulu Natal Okhahlamba LM (Development & licensing of new site), UPhongolo LM (Pongola site), Endumeni LM (Wasbank site), Big Five False Bay LM (Big Five site) Mpumalanga Dipaleseng LM (Balfour & Grootvlei Transfer Station) Limpopo Blouberg LM (Bochum site), Makhado LM (Rehabilitation Plan) Nothern Cape Hantam LM (Nieuwoudtsville site) Project Management Support on Waste Projects through Technical Consultants deployed in municipalities. Eastern Cape Great Kei LM (Kei Mouth & Chintsa Transfer Station) Free State Letsemeng LM (Koffiefontein: Upgrading of Existing Landfill Site) Slide 13 KEY PROGRAMMES Progress : Sector and Grants Support (Energy) 2015/11/27MISA Briefing to Energy PC13 MISA is currently a member of Mini ADAM Steering Committee MISA is supporting targeted Mini Adam municipalities to submit credible business plans to get funding from DOE The following are some activities being performed by MISA to support ADAM programme Review/Update/Develop a Master Plan for Energy Eastern Cape - Engcobo, Emalahleni, Sakhisizwe, Gariep, KSD LMs Free State Masilonyana, Nala, Mohokare, Ngwathe LMs Limpopo - Elias Motsoaledi LM North West Lekwa-Teemane, Mamusa, Tswaing, and Ratlou L Ms Electricity Operations and Maintenance Eastern Cape KSD, PSJ LMs Limpopo Ba-phalaborwa LM Northern Cape Joe Morolong, Gamagara and Ga-Segonyana Electricity Loss and Revenue Management Strategies Eastern cape Nxuba Gauteng Lesedi, Westonaria LMs Limpopo Greater Tubatse LM Slide 14 KEY PROGRAMMES Progress : Capacity Building Programme 2015/11/27MISA Briefing to Energy PC14 A key component of MISAs capacity development programmes is the artisans development programme. Currently 32 municipalities in 8 Provinces are being supported with 311 apprentices, 228 section 13 (unemployed graduates) and 83 section 28 (municipal employees) respectively. A total of 114 apprentices have passed their trade tests and exited the programme as qualified artisans. A total of 469 apprentices including the current 311 and 158 new recruit apprentices will be placed in 56 municipalities for capacity development During the current financial year, 100 technical managers/ directors will be put on an up/re-skilling programme. 100 municipal engineering professionals will be mentored to support them towards professional registration with respective professional bodies Through our bursary programme intended to benefit students in the technical fields, MISA has sponsored 91 students since inception. Slide 15 RELATIONSHIP WITH DBSA ON INFRASTRUCTURE PROJECTS MISA is working closely with a number of organs of state that are involved in supporting local government sphere on infrastructure and service provision. The Development Bank of Southern Africa (DBSA) and MISA are working closely on the support provided to municipalities to accelerate the reduction of basic service infrastructure backlogs. DBSA is responsible for SIP 6 which deals with Integrated municipal infrastructure and is aimed at addressing maintenance backlogs and upgrades in water, electricity and sanitation bulk infrastructure in the 23 least resourced districts. On the other hand, MISA provides technical support to these 23 districts in the implementation of their infrastructure projects. MISA and DBSA have agreed to develop a joint business plan to ensure coordinated support to these municipalities. 2015/11/27MISA Briefing to Energy PC15 Slide 16 OTHER SIPS RELEVANT TO MISAS WORK The following are the SIPS that are directly linked to MISAs work: SIP 7 Integrated Urban Space and Public Transport programme which is aimed at coordinating planning and implementation of public transport, human settlement, economic and social infrastructure; SIP 8 Green Energy in Support of the South African economy to support sustainable green energy initiatives; SIP 10 Electricity Transmission and Distribution for all, aimed at expanding the transmission and distribution network to provide access to electricity for all and support economic development SIP 18 Water and Sanitation infrastructure which is aimed at ensuring the provision of sustainable supply of water to meet social needs and support economic growth. MISA is building capacity to provide coordinated support on these SIPs. 2015/11/27MISA Briefing to Energy PC16 Slide 17 ROLE OF MISA ON ADAM PROGRAMME Background to ADAM 2015/11/27MISA Briefing to Energy PC17 Backlogs on electrification are currently at 3.5 million households and growing at a rate of 7% per annum. It is projected that at the current rate of connecting households, it would take another 17 years to achieve universal access, without factoring in future growth requirements. Most municipalities are also faced with massive and growing backlogs in relation to maintenance and refurbishment of their distribution assets. These municipalities lack requisite institutional capacity and funding required to address these two challenges. It was anticipated that the six (6) Regional Electricity Distributors (REDs) would address these challenges upon establishment. The process of establishing the REDs was halted in 2010 when Cabinet took a decision to discontinue the restructuring of Electricity Distribution Industry (EDI). Slide 18 ROLE OF MISA ON ADAM PROGRAMME Background on ADAM Cont In 2012 DoE, adopted a strategy called the Approach to Distribution Asset Management (ADAM). This multi phased program in addressing electricity distribution challenges, was aimed at addressing the backlog in maintenance, refurbishment and upgrading of the Electricity Distribution networks. The initial work undertaken in implementing ADAM focused on addressing the capital and skills shortage that exists in the electricity distribution industry which was driven by the Electricity Distribution Industry (EDI) Holdings. The establishment of the Regional Electricity Distributors (REDs) was aimed as an institutional mechanism to address these challenges. Although EDI has since been disestablished and Regional Electricity Distributors (REDs) have been discontinued, there is still a need to address poor infrastructure maintenance and weak management capacity in electricity distribution 2015/11/27MISA Briefing to Energy PC18 Slide 19 ROLE OF MISA ON ADAM MISA serves in the Mini- ADAM Steering Committee MISA has two sub-programmes designed to support the implementation of ADAM: i)Support provided through the Sectoral Technical Support programme ii)Support provided through the Business Adopt -A -Municipality (BaaM) framework Through the Sectoral Technical Support programme, MISA is supporting targeted Mini Adam municipalities to submit credible business plans to get funding from DOE. MISA is currently also supporting municipalities in the following areas: Review/Update/Develop a Master Plan for Energy Eastern Cape - Engcobo, Emalahleni, Sakhisizwe, Gariep, King Sabatha Dalindyebo Free State Masilonyana, Nala, Mohokare, Ngwathe Limpopo - Elias Motsoaledi North West Lekwa-Teemane, Mamusa, Tswaing, and Ratlou Support on Electricity Operations and Maintenance Eastern Cape King Sabatha Dalindyebo, Port St Johns Limpopo Ba-phalaborwa LM Northern Cape Joe Morolong, Gamagara and Ga-Segonyana Electricity Loss and Revenue Management Strategies Eastern Cape Nxuba Gauteng Lesedi, Westonaria LMs Limpopo Greater Tubatse LM 2015/11/27MISA Briefing to Energy PC19 Slide 20 ROLE OF MISA ON ADAM cont The BaaM programme entails a partnership with Eskom to support struggling municipalities on electricity issues; 27 municipalities have been identified for Phase 1 support The provision of support to the selected municipalities is preceded by an assessment to establish the exact needs of these municipalities. Although the assessment will determine the final areas of support per municipality, the following areas have been identified as common challenges facing a number of municipalities: Maintenance and rehabilitation of existing infrastructure; Increased investment in new and existing infrastructure Need to address high non-technical electricity losses; Revenue management and tariff setting Technical skills development 2015/11/27MISA Briefing to Energy PC20 Slide 21 ROLE OF MISA ON ADAM AND SIPS BAAM Priority Municipalities ProvincePriority Municipalities Eastern CapeNxuba LMBuffalo City MetroKing Sabata Dalindyebo LM Free StateNgwathe LMNala LMPhumelela LM GautengWestoneria LMRandfontein LMLesedi LM Kwazulu-NatalMsunduzi LMMtubatuba LMUpongolo LM LimpopoSekhukhune DMGreater Letaba LMBa-Phalaborwa LM MpumalangaThaba Chweu LMNkomazi LMGreater Letaba LM Northern CapeSol Plaatjie LMGe-segonyana LMMagareng LM North WestVentersdorp LMMamusa LMRatlou LM Western CapeMatzikama LMCederberg LMKannaland LM 2015/11/27MISA Briefing to Energy PC21 Slide 22 ROLE OF MISA ON ADAM AND SIPS Menu of Support Total menu of support agreed with Eskom : 2015/11/27MISA Briefing to Energy PC22 Leadership and Management Training and Development Maintenance and Operations Demand Side Management Investment, Networks & Master Planning Business and Financial Management Support Contact Centre Access and/or Setup Energy Losses Management Pricing and Tariff Structure Technical Skills Development Technical Standards Credit and Revenue Management Improving Efficiency in Procurement Slide 23 OTHER ISSUES TO CONSIDER During a special Presidential Infrastructure Coordinating Commission (PICC) Manco meeting held on the 27 September 2012, the PICC took a decision that all capital equipment for the electricity distribution system (new build and maintenance) as well as electricity connections be centrally procured through Eskom; This will not only ensure financial savings to the state but will ensure acceleration of the electrification programme; On the 16 th of August 2013, CoGTA MINMEC discussed the PICC recommendation and supported the PICC decision; The meeting also agreed that COGTA and the PICC should come up with mechanism and process for the implementation of this decision. This mechanism is currently being developed. 2015/11/27MISA Briefing to Energy PC23 Slide 24 CONCLUSION Improvement in the management (operations and maintenance) of distribution infrastructure by municipalities is critical for the sustainable supply of electricity in their respective areas. MISA is looking at ways of strengthening its overall support to municipalities on electricity supply and other key sectors. CoGTA will continue to strengthen its collaboration with the Department of Energy (DOE) to ensure coordinated supporting to municipalities. DCoG will continue to facilitate the provision of free basic energy to households, including indigents, currently without access. CoGTA has also prioritized the strengthening of its activities to facilitate the implementation of the relevant SIPs. 2015/11/27MISA Briefing to Energy PC24