FEASIBILITY STUDIES INFORMATION SESSION

OVERVIEW

Background and approach the feasibility studies

Guidelines♦ Discussion of terms of reference♦ Sustainability of projects♦ Format of presentation of study findings♦ Navigation on DEAT website

Contractual matters

PROGRAMME DESCRIPTION

The programme will draw a significant number of unemployed into the environment and tourism sectors of the economy to execute sustainable projects that support the focus areas of the department

OBJECTIVES OF THE PROGRAME

• Creating jobs

• Providing training to facilitate long term employment

• Linking people in “second” economy with opportunities and resources to enable participation in “first” economy

OBJECTIVES OF THE PROGRAME (cont)

• Integrating sustainable rural development and urban renewal

Creating land based livelihoods

Promoting community based natural resource management

OBJECTIVES OF THE PROGRAME (cont)

Developing natural resources and cultural heritage

Rehabilitation of natural resources and protection of biodiversity

Developing natural resources and cultural heritage

OBJECTIVES OF THE PROGRAME (cont)

Rehabilitation of natural resources and protection of biodiversity

Rehabilitation of natural resources and protection of biodiversity

Promoting tourism

KEY FOCUS AREAS

Sustainable Land Based Livelihoods

♦ Working for the land♦ Working for wetlands♦ Removal of alien vegetation♦ Combating desertification

KEY FOCUS AREAS (cont)

Working for the Coast

♦ Utilises SA coasts resources for development of coastal communities

♦ Protection and rehabilitation of these resources

KEY FOCUS AREAS (cont)

People and Parks

Involving communities in conservation

Maximising benefits to communities of parks and protected

KEY FOCUS AREAS (cont)

Working for Tourism

♦ Utilisation of eco-tourism sector to generate revenue for local communities

♦ Involving communities in the tourism economy

KEY FOCUS AREAS (cont)

Working on Waste

♦ Utilisation of waste management and recycling as entry points for building SMMEs and creating local jobs

LOCATION OF PROJECTSLocated country wide

40% in ISRDP and URP priority nodes

Projects will support the Integrated Development Plans of municipalities and the Provincial Growth and development Plans where possible

TARGET GROUPS Unemployed persons

80% of workers must come from households with an income of less than R600 per month

Of this 50% must come from female headed households with an income of less than R600 per month

50% of persons employed should be women

25% of persons employed should be youth

2% of persons employed should be disabled

EXPECTED OUTPUTSOver MTEF period

♦67 000 jobs

♦740 000 training days

♦75% of work contracted out to SMMEs

♦50% of SMME sub-contractors to be HDEs

EXPECTED IMPACTCreation of temporary work while increasing

employability of workers

Temporary employment will benefit up to 8 immediate dependants of a worker

Creation of infrastructure a catalyst for economic growth in immediate area of projects

MECHANISMS THROUGH WHICH PROJECTS HAVE BEEN IDENTIFIED

Identification through an extensive process of consultation with-

♦ Line managers

♦ Public entities

♦ Local authorities

♦ Provinces

PURPOSE OF FEASIBILITY STUDIES

Short lists were based on project proposals that provided only elementary concepts and estimated costs

Feasibility studies are required to♦ Assess viability of projects♦ Ensure that they target the poorest of the poor♦ Ensure that they meet poverty relief and EPWP criteria ♦ Ensure that projects are aligned to IDPs♦ Determine the correct cost

New Enhanced Project Cycle

Provincial Consultations

Submission of Proposals

Preliminary Selection by Committee

1st Phase : Identification

2nd Phase : Selection

Commissioning Feasibility Studies

Evaluation of Feasibility Studies

Evaluation of Business Plans

Final selectionand approval byCommittee

3rd Phase : Contract Initiation

Appoint Implementers

Finalize BP & contract documents with Implementer

Signing of contract documents by both parties

Transfer of Initial paymentto implementer

4th Phase : Implementation & Monitoring

Monthly reporting by Implementer

Checking by PPM & then National

Site Inspections

Release ofprogress payment

New Enhanced Project Cycle ….cont

Ad-hoc project visits

Assess achievement of deliverables

5th Phase : Quality Assurance

6th Phase : Closure

Completion report by implementeraudited

Reports evaluated by PPM

Reports evaluated by National

Reports recorded on system and project closed

Annual audit reports

7th Phase : Evaluation of Impact

TOR for FEASIBILITY STUDIESBackground Documents

♦ Code of Good Practice for employment conditions for Special Public Works Programme

♦ Ministerial Determination: Special Public Works Programmes

♦ The Environment and Culture Sector of the EPWP Sector Plan

♦ EPWP: Consolidated Programme Overview and Logical Framework

TOR for FEASIBILITY STUDIESDefinition of the objective of the project within the

context of the following focus areas:♦ Working for Tourism

♦ Working for the Coast

♦ Working on Waste

♦ Sustainable Land Based Livelihoods

♦ People and Parks

TOR for FEASIBILITY STUDIESPOVERTY PROFILE OF COMMUNITY

Analysis of immediate community♦ Households with income < R600 p/m♦ Female headed households with income < R600

p/m♦ Unemployed persons over age of 18 as % of total

population

TOR for FEASIBILITY STUDIESPOVERTY PROFILE OF COMMUNITYNo of households with an income of<R600 p/m

required as norm:♦ 1 household per R10 000 of estimated value of

project♦ 50% of households must be female headed

Immediate community in relation to project includes all communities within daily commutable distance from project.

TOR for FEASIBILITY STUDIES

POVERTY PROFILE OF COMMUNITY

♦ Unemployed persons as percentage of population is 25%

TOR for FEASIBILITY STUDIES Community structures

♦ Existing structures

♦ Possibility of creating structures

TOR for FEASIBILITY STUDIESCosting of project

♦ Cost per standard item• Implementers fees• Professional fees• Training• Administration• Materials and Equipment• Transport• Wages: SPWP• Non-SPWP wages• Marketing• Community facilitation• Other: specify• VAT (output)

TOR for FEASIBILITY STUDIES

Costing of Project

♦ Reasonableness of cost versus outputs

♦ Monthly cash flow prediction

TOR for FEASIBILITY STUDIESAvailability of land

♦ Period of right to occupy♦ Cost of land for full period♦ Cost to be funded by DEAT♦ Cost to be funded from other sources♦ Sources of funding and commitments

Duration of the project taking all factors into account

TOR for FEASIBILITY STUDIESTemporary job creation

♦ Number of temporary job days of persons employed in terms of the SPWP

• Clerical • Labourer• Managerial• Professional• Semi skilled• Skilled• Supervisor

TOR for FEASIBILITY STUDIES

Temporary job creation♦ The actual number of persons to be employed♦ Person days by women, youth and disabled

Permanent jobs to be created♦ Same categories as temp jobs

TOR for FEASIBILITY STUDIESTraining

♦ Training to be categorised• Literacy• Numeracy• Life skills• Instructors• Vocational and task related• Business and management• Environmental• Leadership• Other training

TOR for FEASIBILITY STUDIESTraining outputs

♦ Modules♦ Learnerships♦ NQF credits♦ Skills programmes♦ Non-accredited training days♦ Accredited training days♦ No of people to attend

TOR for FEASIBILITY STUDIESTraining description

♦ Assessment of skills level of community♦ Types of training to be provided as per previous

slides♦ Correlation of training with job opportunities♦ How training will increase employability

TOR for FEASIBILITY STUDIES

Exit strategy

♦ Identification of job opportunities on project completion

♦ Identification of training opportunities on project completion

TOR for FEASIBILITY STUDIES

After care♦ Period ♦ Funding♦ Responsibility

TOR for FEASIBILITY STUDIES

Owning agency

♦ Written acceptance of assets where it is a province, municipality or public entity

♦ Community based organisations’ founding statements must show that the community is the beneficiary

TOR for FEASIBILITY STUDIESFinancial sustainability

♦ Not all projects are sustainable♦ Projected income and expenditure♦ Period required for sustainability♦ Alternative sources of funding to subsidise

sustainability♦ Aftercare to achieve sustainability♦ Elements to be added to ensure sustainability♦ Possibility of gearing

TOR for FEASIBILITY STUDIES

EIAsAvailability of local implementersAvailability of SMMEs to act as subcontractors

for implementersAlignment with IDPs and priority nodes

FEASIBILITY STUDY PRESENTATION OF FINDINGS

Business plan to be completed

Business plan to be submitted electronically and as hardcopy with supporting documents

EVALUATION OF FEASIBILITY STUDIES

All studies will be evaluatedCommunication with consultants will be via

Project Control Sheet (PCS) that will be emailed

PCS will have column that will reflect queries and column for replies

Payment will only be made once feasibility study is acceptable

CONTRACT ISSUESPayment will be made on completion of

contractContract does not provide for advances

advances can be givenS&T can only be claimed if utilised