STRATEGIC COMMUNITY DEVELOPMENT UNDER REI4P CURRENT APPROACHES AND CHALLENGES

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1 STRATEGIC COMMUNITY DEVELOPMENT UNDER REI4P CURRENT APPROACHES AND CHALLENGES Masechaba Mabilu ED Manager, Acciona Energy South Africa SAPVIA/SAWEA Working Group

2 A Crisis of Expectations South Africa Ø Delivery of basic services Ø Welfare Ø Economic Participation Jobs and SMEs opportunities Community Expectations Expectations = Past Experiences + (Hopes Fears) Ø Business Continuity Compliance with IA Ø Social license to operate Strategic SED/ED Government Expectations Over-promising and under delivering? IPPs Expectations Ø National demonstrable impact of ED benefits of REI4P >> reporting, M&E Ø District/Local support development priorities >> delivery of basic services, jobs

3 criticism and questioning of the impact of the initiatives SA SED-ED initiatives being set up in local communities, with little or no coordination between successful projects In an effort to first comply with bid requirements, many projects have taken the simplest means to achieve SED-ED commitments, and not necessarily the most impactful measures (for the communities involved). little evidence that the flow of benefits to communities will ensure long term improvements and sustainable livelihoods for previously disadvantaged individuals in these communities community development and enterprise support fall outside of IPPs core function and competence.

4 SED-ED in REI4P Realities First renewable energy power plant under REI4P came into operation in November 2013, with the majority of plants reaching COD in Too early to measure impact. Collaborative structures or conversations around facilitation coordination of activities have started Development practitioners, specialists and strategists have been recruited (BBBEE and sector charters) Old and newly established third party implementation and strategy development consultancies In the initial stages, quick impact projects are needed to deliver on initial expectations by government and the community for tangible benefits and in our case compliance also NB

5 Strategic Community Investment contributions or actions by companies to help communities in their areas of operation address their development priorities, and take advantage of opportunities created by private investment, in ways that are sustainable and support business objectives. IFC, 2010: Strategic Community Investment A Good Practice Handbook for Companies Doing Business in Emerging Markets

6 Can we do COMPLIANCE and be STRATEGIC? Compliance We have to comply with our SED and ED obligations as per the IA, adhering to the guidelines provided in DoE s Monitoring Notes Compliance with SED and ED obligations is measured in terms of monetary spend and reported on quarterly Strategic We should endeavour to implement SED and ED programmes that positively impact on the communities we operate in alignment with local development priorities NB SED and ED programmes implemented should support the project in maintaining its license to operate Where possible, SED and ED programmes should support the project in achieving other economic development obligations - strategic alignment

7 Challenges Limited collaboration amongst IPPs to date Uncoordinated efforts by individual IPPs, community trusts and other development partners limit the potential for meaningful development impact at the municipal and community levels NB in areas with multiple RE projects in same geographic area Relationship between local govt, IPPs and community trusts not defined Strategic community development requires long term planning, but pressure to spend in the short term for compliance purposes and due to community pressure Skills and capacity development NB for promotion of access to the economy and long term self-reliance of communities, however there is pressure from local govts to focus on provision of basic services (big budget) Short termism of communities and local government Superficial IDPs and LED plans Misalignment between SED/ED activities timelines and availability and timing of funds Community Trust Funding crisis in the first 8 years

8 Towards Achieving Meaningful Impact SAPVIA SED-ED Subcommittee established in March 2015 Joint meetings with SAWEA Wind for Communities Working Group The following working group streams have been established in line with the key focus areas of the Subcommittee: - Research and development which will focus largely on developing a good/best practice framework for community engagement and development, case studies on impactful projects. - Communication and PR which is looking at developing industry PR pieces at municipal and provincial level, outside of the conventional communication happening within the industry. The work stream will also be collating information relating to skills development in the industry, including what various members and other stakeholders have done or are doing in terms of skills development. - Bid Requirement for ED and Reporting - Community Trusts which is focusing on community trust related challenges.

9 Good practise examples from IPPs Strategic: Globeleq s Scholarship and Internship Programme focusing on mechatronics and electrical engineering (integrated across 3 projects) Aligned: ACWA/Bokpoort CSP s installation and maintenance of 300 home PV solar systems in the Duineveld township, a community that had no electricity Effective Partnerships: Acciona/Sishen Solar In-School Breakfast Programme in partnership with Tigerbrands Foundation Sustainable: Umoya/Hopefield Home Improvement Project

10 Recommendations Social value creation should be at the core of what we do. Consider both short-term and long-term objectives. Project pilots NB for assessing delivery capacity (including staffing), identifying gaps in governance structure and implementation model and establishing relationships, contacts, and networks locally; Collaboration and knowledge sharing amongst IPPs NB in maximising the social returns of the renewable energy program at local and district level. Establishing linkages between projects in the same geographical area to improve opportunities for success, maximise impact and ensures sustainability of projects. Develop a strategy towards minimising the potential negative impact of multiple projects and trusts in a particular geographic area. Management of local government and community expectations with regards to benefits from SED/ED and community trusts in short term Educate local government and communities on REI4P process and what their role is.