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SIYENZA MANJE PROGRAMMESIYENZA 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 municipalities46 distressed District municipalities21 urban and rural nodesImbizo municipalitiesRealigned X-boundary municipalitiesMentorship 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 Appren-tice 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

602* PSPs to provide 1 Project Manager, 1 Engineer, 2 Technicians

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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

Universities

Experts (Engineers & Technologists)

Graduates (YPs)

Technicians

Graduate Technicians (YPs)

Artisans

ApprentishipLearnership

Section 28 FET graduatesUniv Tech High Schools FETs

Initial assumption:1 YP per 1 Expert

Current assumption:2 YPs per 1 Expert

3 Yrs

3 Yrs

3 Yrs

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Categories of Deployees, Roles and Numbers

Category Function Current Future

Apprentice

Artisans

Grad Techs

Technicians

Grad EngineersPM & Finance

Experts

O&M and Experiential Learning

118

Projects planning, coordination and

management

Projects implementationand exp. learning

Site supervision

Team supervision and exp. learning

Operations and Maintenance

0

0

1

10

34

190

100

100

51

324

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Programme Recruitment and Deployment Plan

Category

Current Status: Oct 07

Upscale:

Nov 07- Mar 08

Sub-Total 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

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

Planned Up-scaling of Dedployments Oct 2007 - Mar 2008

010 10

20 2030

4560 60

7590

100118 125 125 130

145160

020406080

100120140160180

Oct Nov Dec Jan Feb Mar

Months (2007/8 FY)

No. o

f Dep

loye

es/P

SPs

PSPs

YP

Experts

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Impact of Upscaling Strategy on Municipal Sustainability

Current proportion of YPs to senior Experts: 29%

Initial strategy 1 YP: 1 Expert

Proportion of YPs in the Current Deployment Strategy

71%

29%

Experts

YP

Proportion of YPs in the Upscaling Strategy

62%

38%

Experts

YP

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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