Presentation Outline SED/ED in the REI4P Local Community - - PowerPoint PPT Presentation

Presentation Outline

• SED/ED in the REI4P
• Local Community Ownership
• Issues for Consideration
• Possible Solutions
• SED/ED Reporting Tools
• Proposed Fund
• Examples of SED/ED Projects

Above: Khi Solar One (www.abeinsa.com) Below: Hopefield Wind Farm (www.engineeringnews.co.za)

SED-ED in the REI4P

• Both SED and Enterprise Development require

expenditure from revenue

• 1 to 1.5% and 0 to 0.6% commitments respectively
• Initial SED/ED expenditure occurred in the 4th

quarter 2013

• 34 projects are now in operation
• Reporting to the IPP Office required
• Responsibility for SED/ED lies with IPPs/Sellers
• IPP office – facilitatory role

• 4 ED elements mention Local Communities as beneficiaries
• 3 of the elements viz. SED, Enterprise Development and Local Community Ownership

lead to financial contributions from Sellers

SED-ED in the REI4P

A minimum of 12% of all jobs in the energy project should be awarded to members of the local communities At least 2.5% of shares in the electricity selling company should be held by the local communities Up to 0.6% of all earnings may be spent on enterprise development 1-1.5% of all earnings should be contributed to socio-economic development projects

SED and Enterprise Development Contributions

• Total commitments of R 9.8 billion and R 2.6 billion respectively
• Total expenditure to date is approximately R28 million as per Annexure B
• The graph shows the split in different categories*

2 4 6 8 10 12

Education Health Care Social and Welfare Infrastructur e Enterprise Developmen t Other Not Allocated R Million

*Early Childhood Development included in Education

Local Community Ownership

• Benefits (dividend flows) accrue over 20 years

R -1,500,000 R -1,000,000 R -500,000 R - R 500,000 R 1,000,000 R 1,500,000 R 2,000,000 R 2,500,000 R 3,000,000 R 3,500,000 R 4,000,000

2013 2017 2021 2025 2029 2033 2037 Gross Income Earned Debt Service Costs

R38.5 billion R12.2 billion

Issues for Consideration

• Coordination
• Lack of coordination between IPPs, local government structures and other

entities at the local level e.g. SED/LED activities

• Fragmented delivery and implementation mechanisms
• Insufficient economies of scale in separate, individual SED/ED efforts by IPPs
• Limited community absorption capacity in sparsely populated areas
• Monitoring
• Performance Management is still too weak
• Submitted ED Plans, Annexure A and Annexure B often lack sufficient detail –

monitoring, evaluation & onward reporting – more difficult

• Integration of Community Trusts

Possible Solutions

• Strengthening local coordination
• Local IPP-SED forums with and without other stakeholders (e.g. the co-
• rdination forums in Poffadder, Upington and Pixley ka Seme)
• Community Hall Meetings
• Partnership across IPP and implementing partners to reduce ‘structures’
• Participation in local LED Forums and other coordination forums
• Relaxing the 50km radius
• Strengthening central monitoring:
• Strong performance management
• Extension of project monitoring to community trusts

SED/ED Reporting Tools SED Project SED contributions Impact

• Annexure A measures the INPUT to SED projects, the

amount of funds/revenue

• Annexure B gives information on the utilisation of funds
• Ideally performance management is carried out via

SMART indicators, measuring OUTPUTS

• The SMART outputs should be part of broader strategy to

achieve local development IMPACTS

The ED Plan

• ED Plans are the foundation for SED strategy formulation
• The ED Plan connects INPUTS, OUTPUTS and IMPACTS for

SED-ED projects in the future

• Template for preparation contained in the Implementation

Agreement

• Submissions usually do not provide sufficient details on

anticipated SED/ED projects

• Annexures A and B report on the achievements as in

accordance with what was envisaged in the plan

Central SED/ED Fund (“Large Fund”)

• Establishment of centralised fund to facilitate & coordinate

SED/ED initiatives

• Pooling of funds for future bidding windows
• Possible integration with current projects

Examples of SED projects

• In the following slides a selection of SED projects is described…

– Educational Projects (3 Slides) – Supporting FARR – Enterprise Development Projects – Housing Programme – Old Age Home – Environmental Conservation

Educational Projects 1/3

• The Douglas Socio Economic Development

Company supplements Maths & Science education in 11 schools in the Douglas area.

• Beneficiaries are the learners in the

Douglas designated area.

• Outputs: Teachers’ salaries, students

allowances, maths competitions, stationery

• Expenditure of approx. R 1.8 million since

January 2014

Pictures: Grade 12 exam practice at Hoёrskool Douglas and the first day at Bongani Secondary

Educational Projects 2/3

• Several IPPs are engaged in ECD care development

since July 2014

• 11 ECD caretaker trained towards NQF 4 and equip-

ment supplied in Renosterberg

• 33 bursaries for ECD caretakers around De Aar and

20 for practitioners around Kimberley via the Dept of Education

• Audits on around 30 ECD centres around De Aar and

Kimberley to provide equipment

• Training, toys and equipment for Ubunye

Day Care in Upington

• Total expenditure around R 1 520 000

Pictures: Caretake in Ubunye, toys and the hand-over of bursaries to the Dept of Education

Educational Projects 3/3

• Africa Skills FET College 15 months

courses from August 2013 – November 2014

• 35 learners were enrolled for

apprenticeships as either plumbers or electricians

• 26 learners successfully completed

the course and received certificates.

• Total expenditure of approx. R771 000

Pictures: Learners at Ubuntu and Beaufort West Local Municipalities

Supporting FARR

• Foundation for Alcohol-Related Research (FARR) received

funding for activities in Emthanjeni and Renosterberg Local Municipalities

• Activities financed:

– Roll out of the ‘De Aar programme’ to Renosterberg – A four-year programme addressing alcohol abuse and foetal alcohol spectrum disorder (FASD) – The Healthy Mother, Healthy Baby programme

• R 2.1 million spent to date

Enterprise Development Projects

• Equipment provision to Tsantsabane and

Upington businesses: funeral services, catering, fitting & electrical works

• Learners trained to work as security guards

and for monitoring the bird and bat population on the wind farm in Ubuntu

• 2 Ostrich farms in Emthanjeni were

upgraded with equipment and live chicks

• Development of a full-scale service provider

for PV plants in Emthanjeni

• Continuation of Galeshwe business hub
• Approx. R 3.15 million

Picture: Bats and Birds training, fencing of Ostrich farm

Housing Programme

• Upgrading low cost housing with solar

water heaters, insulation, efficient light bulbs, water supply and safe reticulation

• 18 unemployed from the community

trained to become artisans and employed

• 33 houses upgraded
• Expenditure of approx. R 1.16 million

Pictures: Residents at work in a similar project

Old Age Home

• An old age home run by an NGO was

renovated

• Including: Tiling of passage, electrical

repairs, burglar bars, repair of windows and frames, and painting of building

• Total cost: R 97 170

Pictures: Beneficiaries from the old age home

Environmental Conservation

• On a 1 000 hectares of land alien

vegetation is removed in cooperation with SANparks

• Local businesses carry out all the

works, which constitutes Enterprise Development

• Expenditure to date: R2.1 million

Pictures: West Coast National Park flower bed, www.safarinow.com