Date of presentation: 08 October 2013 The Presidency Department of Performance Monitoring and...

Date of presentation: 08 October 2013

The Presidency The Presidency Department of Performance MonitoringDepartment of Performance Monitoring

and Evaluationand Evaluation

DoE Progress on the Outcomes

Presentation to the Parliamentary Portfolio Committee on Energy

The Presidency: Department of Performance Monitoring and EvaluationThe Presidency: Department of Performance Monitoring and Evaluation

Mandate of DPMEMandate of DPME

Established in January 2010, the Department of Performance Monitoring and Evaluation has been mandated by the President and Cabinet to:

• Facilitate the development of plans /delivery agreements for cross-cutting priorities or outcomes of government, and monitor and evaluate the implementation of these plans/delivery agreements

• Monitor the performance of individual national and provincial government departments and municipalities

• Monitor frontline service delivery

• Manage the Presidential Hotline

• Carry out evaluations

• Promote good monitoring and evaluation practices in government

• Provide support to delivery institutions to address blockages in delivery.

22


Delivery AgreementsDelivery Agreements

A Delivery Agreement is a charter between all the key stakeholders who need to work together to achieve the outcome.

Performance Agreements between President and outcome coordinating Ministers requested them to work with other key stakeholders to develop detailed Delivery Agreements for each outcome

Delivery Agreements describe key activities, sub-outputs, outputs, indicators, and targets , identify required inputs and clarify roles and responsibilities of each key body which contributes to the achievement of the outcome

Performance Agreements between President and other Ministers also requested them to work with the coordinating Ministers on relevant delivery agreements

National Treasury guidelines for strategic plans indicate that departments’ strategic plans and APPs must reflect their commitments to delivery agreements –should also be monitored by Parliament

33


1. BASIC EDUCATION: Quality basic education

2. HEALTH: A long and healthy life for all South Africans

3. SAFETY: All people in South Africa are and feel safe

4. EMPLOYMENT: Decent employment through inclusive economic growth

5. SKILLS: Skilled and capable workforce to support an inclusive growth path

6.6. ECONOMIC INFRASTRUCTURE: An efficient, competitive and responsive economic ECONOMIC INFRASTRUCTURE: An efficient, competitive and responsive economic infrastructure networkinfrastructure network

7. RURAL DEVELOPMENT: Vibrant, equitable, sustainable rural communities contributing towards food security for all

8. INTEGRATED HUMAN SETTLEMENTS: Sustainable human settlements and improved quality of household life

9.9. LOCAL GOVERNMENT: Responsive, accountable, effective and efficient Local LOCAL GOVERNMENT: Responsive, accountable, effective and efficient Local Government systemGovernment system

10.10. ENVIRONMENT: Protect and enhance our environmental assets and natural resourcesENVIRONMENT: Protect and enhance our environmental assets and natural resources

11. INTERNAL AND EXTERNAL RELATIONS: Create a better South Africa, a better Africa and a better world

12. PUBLIC SERVICE: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

44

The outcomes to which DoE contributesThe outcomes to which DoE contributes


Department of Energy’s role in relation to outcome 6Department of Energy’s role in relation to outcome 6

Outcome 6: An Efficient, Competitive and Responsive

Economic Infrastructure Network

• Output 1: Improving competition and regulation

• Output 2: Ensure reliable generation, distribution and transmission of

electricity

• Output 3: To ensure the maintenance and strategic expansion of our road and

rail network, and the operational efficiency, capacity and competitiveness of

our sea ports

• Output 4: Maintenance and supply availability of our bulk water infrastructure

• Output 5: Communication and information technology

• Output 6: Develop a set of operational indicators for each segment

55



Outcome 9: Responsive, accountable, effective and efficient

Local Government system

• Output 1: Implement a differentiated approach to municipal financing,

planning and support

• Output 2: Improving Access to Basic Services

• Output 3: Implementation of the Community Work Programme

• Output 4: Actions supportive of the human settlement outcomes

• Output 5: Deepen democracy through a refined Ward Committee model

• Output 6: Administrative and financial capability

• Output 7: Single Window of Coordination

66



Outcome 10: Protect and enhance our

environmental assets and natural resources

• Output 1: Quality and quantity of water resources enhanced

• Output 2: Greenhouse gas emissions reduced, climate change impacts

mitigated & air/atmospheric quality improved

• Output 3: Sustainable environment management

• Output 4: Biodiversity protected

77

The Presidency: Department of Performance Monitoring and EvaluationThe Presidency: Department of Performance Monitoring and Evaluation 88

Overall progress against the outcomes (Overall progress against the outcomes (Q1 2013/14)Q1 2013/14)

Progress as planned or completed, on schedule, milestone or target met

Progress with activity but not on schedule

Strong likelihood that milestone or target will not be achieved within the planned timeframe


Overall progress against the outcomes (Overall progress against the outcomes (Q1 2013/14)Q1 2013/14)

Progress as planned or completed, on schedule, milestone or target met

Progress with activity but not on schedule

Strong likelihood that milestone or target will not be achieved within the planned timeframe


Progress on Outcome 6 Output 2: Progress on Outcome 6 Output 2: Ensuring reliable generation, distribution and transmission of energyEnsuring reliable generation, distribution and transmission of energy

Sub-output Targets Progress reported for 1st Quarter 2013/14 DPME comments

2.1 Create regulatory and institutional structures for the introduction of viable Independent Power Producers (IPPs) and start process for the participation of IPPs in 2010

• ISMO Bill enacted by 2011/12

• Financial and technical Due Diligence conducted by 2011/12

• Systems and change management process put in place to make ring-fenced ISMO functionally independent of Eskom by 2012/13

•The ISMO Bill was adopted by the Parliamentary Portfolio Committee on Energy in March 2013 and is currently awaiting approval. It has since been reclassified as Section 76 legislation and will now follow the NCOP approval process. Once the Bill has been ratified into law, the process to establish ISMO as a State Owned Company will start.

•IPPs -New generation capacity regulations under the Electricity Regulation Act have been promulgated. IPP process has progressed on Renewable energy. Functions to facilitate introduction of IPPs have been ring-fenced in Eskom.

Good progress made by the DoE in developing the legislation as well as starting the participation of IPPs. Substantially likely to be achieved by end of term, but not in full.

DPME



Sub-output Targets Progress reported for 1st Quarter 2013/14

DPME comments

2.2 Develop a funding and implementation plan and reduce the electricity distribution infrastructure maintenance backlog of R27.4bn to R15bn by 2014

• Funding and implementation plan in place by March 2011

• Report detailing a map of distribution assets for 50% of all Municipalities by 2012/13

• Initiate interventions, monitor rehabilitation projects and reduce backlog by R8bn in 2012/13

• The Cabinet has approved Approach to Distribution Asset Management (ADAM).

•All Metros have been mapped in respect of the status of their electricity distribution infrastructure.

•Allocations have been made to 7 municipalities and 2 Metros and members of a steering committee have been appointed.

Actual rehabilitation of distribution infrastructure is not being reported. Municipalities are using some electricity revenues for maintenance. Nersa tariffs have a component for maintenance.

Target reduction of backlog to R15bn by 2014 is not yet assessed

DPME



DPME comments

2.3 Household access to electricity should be 92% by 2014

Targets for 13/14:

(1) 180 000 households electrified

(2) 500 schools electrified

(3) 10 000 solar electricity home systems installed

(4) Expansion of electrification by additional 200 000 households through non-fiscal funding

• The department connected 33193 households (Grid) and 2341 households (Non-grid) in the 1st quarter.

• Expansion of INEP through non-fiscal funding and other fiscal grants is making progress: Since August 2012, four municipalities were approved by DBSA board, namely Mbizana, Matatiele, Mnquma and Umzimvubu.

• 86.05% of household now access electricity

•No progress on schools reported

•While good progress is noted, the 92 % target may be difficult to be achieved by the end of the financial year

DPME




DPME comments

2.4 Develop a funding model for electricity generation build programme to ensure security of supply

Funding model developed and submitted to Cabinet by 2010/11

Eskom developed a R300bn funding model in 2010.

85% of the funding requirement has been secured as at 30 June 2013 While good progress has been

made for securing much of the IRP2010, work needs to be done on the nuclear build programme before there is clarity on Eskom’s role and the funding model for nuclear.


DPME



2.5 Long-term energy mix diversification to address the security of energy supply and requirements for renewable energy

(1)Extend IRP, covering 25 year window by December 2010

(2) Issue licences in accordance with IRP implementation – 2000MW installed in 2013/14

(3) Accelerated 1 million Solar Water Heaters roll-out by 2013

(4) Demand Side Management (9 TWH saving)

(1) The IRP was approved by Cabinet and promulgated in 2011.

(2) ) Approx 2 400MW of renewable energy IPPs selected as preferred bidders. Window two - 28 preferred bidders reached financial close and signed Implementation Agreements in November 2012. Window one projects are currently under construction and should be ready to supply power to the grid at least by 2016. The signing of agreements between preferred bidders and the Minister of Energy took place in May 2013. Bid documents for Window 3 for 1000MW of distributed generation in rural areas were prepared and the draft treaty regarding Grand Inga 1 Hydro project was negotiated.

(3) 371 862 solar water heaters have been installed in all Provinces by the end of the 1st quarter.

(4) 67.8 MW of savings were achieved in the 1st quarter of 2013/14 .

(1)IRP completed and implementation commenced

(2)Good progress

(3) and (4) Good progress but target unlikely to be achieved


DPME

DPME



DPME comments

2.6 Migrate Eskom coal from road to rail

Rehabilitate coal haulage roads (joint responsibility with DPE and DoT)

Additional 370 km coal haulage roads rehabilitated by 2013/14 in addition to the 380 km by 2012/13

2013/14: 29mpta coal on rail, and 11.8mpta on road

Eskom has completed Camden and Tutuka containerised coal terminals. The Majuba heavy-haul line project is now underway. Eskom planned to transport 12.2 million tons by rail in 2012/13 (against a target of 19mtpa) once the Tutuka rail facility was operating. Actual transported was 10.1 mt. 2.5 mthave been moved on rail during the 1st quarter.

Unlikely to be achieved

2.7 Restructuring of the electricity distribution industry

Decision on the end state of EDI Holdings by 2010/11

EDI restructuring process was terminated. The project will be excluded in the revised Delivery Agreement.

2.8 Setting cost reflective tariffs while cushioning the poor from increasing electricity costs

Develop targeting framework for qualifying beneficiaries in collaboration with municipalities by 2011.2013/14: 100% coverage of qualifying beneficiaries

Estimated national implementation of FBE is about 70% to all indigent household’s customers and there is diverse number of challenges, including lack of funding.

Progress noted

DPME

DPME

DPME


Progress on Outcome 9: Output 2: Improve access to basic servicesProgress on Outcome 9: Output 2: Improve access to basic services


DPME comments

2.4 Increased access to basic electricity

•Support the delivery of electricity bulk infrastructure through the provision of grant funding for the upgrading of electricity reticulation by 2014

•Provide grant funding to build and upgrade 40 substations by 2014 (10 per annum)

•Provide grant funding to build 1560 km MV lines by 2014

86.05 % of households use electricity.

• No details provided by COGTA in its report on bulk lines and substations.

•DoE and DCoG (& MISA) should apply the Cabinet Lekgotla decision to establish service delivery management structures per sector and prepare a Programme Information Management System, including pipeline of projects per municipality to address capital and maintenance backlogs. This should be coordinated with PICC:SIP 6

DPME


Progress on Outcome 10: Output 2: Reduce greenhouse gas emissions reduced, Progress on Outcome 10: Output 2: Reduce greenhouse gas emissions reduced, climate change impacts mitigated & air/atmospheric quality improvedclimate change impacts mitigated & air/atmospheric quality improved


2.3 Renewable energy deployed

Percentage of power generated that is renewable (10 000 GWh by 2014)

Construction has already begun for projects constituted by the 2 459 MW of the 3 725 MW of renewable energy programme from the first and the second bid windows of the REIPPP. At 100% production a power plant of 1 MW will produce 8.76 GWh pa; therefore the current allocation of 2459MW will produce about 21 540 GWh if the capacity is available by 2014

Progress is evident, but the measurement of the use of RE must be reported in order to track progress.

2.5 Efficient energy use

12% energy efficiency improvement by 2015

371 862 Solar Water Heaters have been installed and 28 municipalities have been allocated funds to implement the Energy Efficiency and Demand Side Management (EEDSM) Programme through installation of energy efficient street and traffic lighting; retrofitting of municipal buildings with energy efficient lighting as well as correction Power Factor in wastewater treatment plants

Reporting is required on the extent of actual reductions in accordance with the target.

DPME

DPME

The Presidency The Presidency Department of Performance MonitoringDepartment of Performance Monitoring

and Evaluationand Evaluation

3 Year Comparison on DoE Outcome 64th Quarter Data for Financial Years:

2010/11, 2011/12, and 2012/13


Sub-output 4th Quarter 2010/11 4th Quarter 2011/12 4th Quarter 2012/13

2.1 Create regulatory and institutional structures for the introduction of viable Independent Power Producers (IPPs) and start process for the participation of IPPs in 2010

• A ring-fenced entity for the procurement of electricity from the Independent Power Producers (IPPs) established, with contracts already signed with four IPPs and 277MW of electricity added to the national grid

• The ESEID Cabinet Committee approved the draft ISMO legislation in March 2011, for tabling at Cabinet

• The ISMO Bill to be deliberated in parliament in May 2012, with the intended finalization of Q3 2012

• Renewable Energy IPP Programme underway. To date, 1415MW of preferred bidders have been appointed, with the intention for them to commission before end-2012.

•The ISMO Bill was adopted by the Parliamentary Portfolio Committee on Energy in March 2013. It has since been reclassified as Section 76 legislation and will now follow the NCOP approval process. Once the Bill has been ratified into law, the process to establish ISMO as a State Owned Company will start.

•IPPs -New generation capacity regulations under the Electricity Regulation Act have been promulgated. IPP process has progressed on Renewable energy



2.2 Develop a funding and implementation plan and reduce the electricity distribution infrastructure maintenance backlog of R27.4bn to R15bn by 2014

The ADAM project, outlining the blueprint to rehabilitate distribution infrastructure completed.

The Approach to Distribution Asset Management (ADAM) proposal has been completed. Pilot projects to be initiated by June 2012.

Cabinet approved the Cabinet Memo on Approach to Distribution Asset Management (ADAM).

a pilot project is being implemented wherein nine municipalities have been allocated funding for infrastructure refurbishment.



2.3 Household access to electricity should be 92% by 2014

A total of 194 941 households have been connected to electricity in the current financial year

Eskom electrification programme was able to connect 155 213 house holds by 31 March 2012

• In the last quarter under review, 72 802 households were electrified. Eskom electrified 59 230 and Municipalities electrified 13 572. and non-grid was 5264.

• Overall 86 percent electrified.



2.4 Develop a funding model for electricity generation build programme to ensure security of supply

No information reported on this item

By 31 March 2012, Eskom had secured 77.6% of the funding required for the Capital Expansion Programme (Medupi, Kusile, Ingula, RTS, Transmission projects and refurbishments Projects)

Eskom has continued to focus on export credit agencies, development finance institutions and the domestic money market for its funding requirements.

In this regard, Eskom has secured over 80 percent of the funding requirement for the build programme up to 2017.



2.5 Long-term energy mix diversification to address the security of energy supply and requirements for renewable energy

The Integrated Resource Plan was approved by Cabinet in March 2011

The Integrated Resource Plan developed and adopted after thorough public consultation. The RE requirements outlined to constitute 40% of all future investment till 2030.

(1)IRP approved that provides long term generation targets and mix.

(2) Approx 2 400MW of renewable energy IPPs selected as preferred bidders. Window two - 28 preferred bidders reached financial close and signed Implementation Agreements in November 2012. Window one Projects are currently under construction and should be ready to supply power to the grid at least by 2016.

(3)By end-March 350 000 solar water heaters were installed; the rules for the Energy Conservation Scheme were completed after stakeholder engagement; the residential and industrial energy efficiency initiatives have reduced demand by 1.4TWh.

(4) the rules for the Energy Conservation Scheme were completed after stakeholder engagement; the residential and industrial energy efficiency initiatives have reduced demand by 1.4TWh.



2.6 Migrate Eskom coal from road to rail

Rehabilitate coal haulage roads (joint responsibility with DPE and DoT)

Eskom and the Transnet Freight Rail (TFR) have not yet concluded the necessary agreements to facilitate the migration And Service Level Agreements (SLA) between SANRAL and the Mpumalanga Department of Public Works, Roads and Transport not yet finalised.

8.5 Mt of Eskom coal on rail (35.5 Mt on road) in 2011/12

Eskom has completed Camden and Tutuka containerised coal terminals. The Majuba heavy-haul line project is underway. Eskom planned to transport 12.2 million tons by rail in 2012/13 once the Tutuka rail facility was operating. The actual amount transported was 10.1 million tons.

2.7 Restructuring of the electricity distribution industry

Cabinet decision concluded to terminate the REDS process

Cabinet decision concluded to terminate the REDS process

EDI restructuring process terminated. In the revised Delivery Agreement, the project will be excluded.

2.8 Setting cost reflective tariffs while cushioning the poor from increasing electricity costs

The Inclining Block Tariffs (IBT), which provides preferential tariffs for the indigent, have been incorporated into the NERSA tariff determination for 2010/12.

As tariffs increase, three cushioning mechanisms in place – (a) inclining block tariffs, currently under implementation, (b) free basic electricity, (c) solar water heating

Estimated national implementation of FBE is about 70% to all indigent household’s customers and there is diverse number of challenges, including lack of funding.


Ke ya lebogaKe ya leboga Ke a lebohaKe a leboha

Ke a lebogaKe a leboga Ngiyabonga Ngiyabonga

NdiyabulelaNdiyabulelaNgiyathokozaNgiyathokoza

Ngiyabonga InkomuNgiyabonga Inkomu

Ndi khou livhuhaNdi khou livhuha Thank you Thank you

Dankie Dankie

Ke ya lebogaKe ya leboga Ke a lebohaKe a leboha

Ke a lebogaKe a leboga Ngiyabonga Ngiyabonga

NdiyabulelaNdiyabulelaNgiyathokozaNgiyathokoza

Ngiyabonga InkomuNgiyabonga Inkomu

Ndi khou livhuhaNdi khou livhuha Thank you Thank you

Dankie Dankie

Date of presentation: 08 October 2013 The Presidency Department of Performance Monitoring and...

Documents

Transcript of Date of presentation: 08 October 2013 The Presidency Department of Performance Monitoring and...