Briefing to the Portfolio Committee Tourism GTAC Assessment of the Working for Tourism Programme. 14 March 2018

Transcription

1 Briefing to the Portfolio Committee Tourism on GTAC Assessment of the Working for Tourism Programme 14 March 2018

2 Content List of Acronyms 3 Introduction 4 Project Specific Assessment outcomes and recommendations Slide Number 5 40 Key recommendations - Short Term Assignment Department s View on Recommendations Implementation time frames 48 2

3 List of acronyms AGRED - African Gamebird Research Education and Development Trust BCMM - Buffalo City Metropolitan Municipality EC EPWP FS GTAC IDC IDMS KZN - Eastern Cape - Expanded Public Works Programme - Free State - Government Technical Advisory Centre - Industrial Development Corporation - Infrastructure Delivery Management Support - Kwa-Zulu Natal LM LP MP NC NDT NW - Local Municipality - Limpopo - Mpumalanga - Northern Cape - National Department of Tourism - North West SIPDM - Standard for Infrastructure Procurement and Delivery Management VIC WC WFT - Visitor Information Centre - Western Cape - Working for Tourism 3

4 Introduction To provide a briefing to the Portfolio Committee on Tourism about the Government Technical Advisory Centre (GTAC) s short term assignment for assisting with the Working for Tourism projects. The Government Technical Advisory Centre (GTAC), an entity of National Treasury, was contracted to provide technical assistance to the Department as follows: a) Undertake a review of the department s i. Current Working for Tourism (WFT) stalled projects ii. Review of project plans for projects in the planning phase; and iii. Undertake pre-feasibility assessment on identified projects to inform the funding decision. b) Provide long term support (till October 2018) to) to assist the department i. To strengthen the capacity of the Department and WFT team to better ii. manage the infrastructure related project; and to Review the processes and guidelines for this programme and ensure alignment with the construction industry. 4

5 Project specific assessment outcomes and recommendations 5

6 Project Descriptions i. The 32 projects were assessed according to the following categories: (a) Stalled projects those that were in the construction phase and had been stopped due to implementation or funding challenges; (b) Projects that had requested additional funding for either a new scope of work or completion of current scope of work; (c) Projects at a planning stage no construction has yet commenced and (d) Projects at a pre-feasibility stage. ii. Accommodation and conference facilities dominated the portfolio that was investigated, representing 12 of the 32 or 38% of the projects investigated. iii. Accommodation with day visitor facilities/cultural activities were the second most common type of tourist facility investigated representing 6

7 Project Descriptions cont iii. The third most common category was information and interpretation centres representing 6 of the 32 or 19% of the projects that was investigated. iv. The remaining 4 projects include road infrastructure, pedestrian/other support infrastructure and a training centre. Note: The findings of 31 of the 32 assessed projects are provided in this presentation. The 32 nd project is not outlined in this presentation, as it is not an EPWP project. This is the donor funded Dinosaur Interpretation Centre in Clarens. GTAC reviewed the planning documentation on this project and recommended that the Department proceed with the project as planned. 7

8 Methodology The methodology employed included, but not limited to, the following: Site visits to 17 projects; Desktop study of available project information, plans and reports; Interviews with officials, implementing agents, tourism businesses and local communities; Condition assessment of existing buildings and structures on site including technical specifications of concept layouts; and Assessment of technical, financial and governance related to projects. 8

9 List of assessed projects (31) PROV. 1 EC STALLED PROJECTS Establishment of Chalets at Nyandeni Great Place Project 2 EC Western Tembuland Project 3 EC Qatywa Tourism Development Project 4 EC Rock Art Tourism Project 5 EC Tenahead Lodge and Mountain Reserve 6 FS Barolong Boo Seleka Village 1 & 2 7 FS Infrastructure development through Monontsha Project 8 NC Kamiesburg Tourism Development 9 LP Vha Tsonga Cultural Village Project 10 KZN Muzi Pan Project PROV. 1 EC Mthonsi Lodge Project 2 KZN Lilani Hot Springs Project STALLED PROJECTS REQUEST FOR ADDITIONAL FUNDS PROV. PROJECTS AT A PLANNING STAGE 1 EC Kiwane Campsite 2 EC Mdantsane Lodge 3 FS Vredefort Dome 4 FS Empereni Hospitality Training Centre 5 FS Masilonyane Information Centre 6 NC Platfontein Lodge 7 LP Phiphidi Waterfall 8 LP 24 Rivers Project 9 LP Sekhukhune Project 10 LP Oaks Information Centre Project 11 NW Lotlamoreng Dam Project 12 MP Bohlabela Cultural Village Project 13 MP Mnisi Resort 14 WC Cape Agulhas Project 3 LP Tisane Cultural Village PROV. PRE- FEASIBILITY PROJECTS 4 NW Manyane Lodge Project 5 LP Ngovhe Project 1 NW Lehurutshe Project 2 NW Lobatlane Project 9

10 Review recommendations and NDT decisions The Department has considered in detail the recommendations for each individual project and the decisions with regard to each project are contained later in this presentation. 10

11 Establishment of Chalets at Nyandeni Great Place Project EC (Stalled project) The Establishment of Chalets at the Nyandeni Great Place comprise the development of chalets and a restaurant and begun in The village hosts large functions and the Nyandeni Trust identified the need to develop chalets to accommodate guests to these functions. The site is located in Nyandeni Local Municipality (LM) Ward 3 in the OR Thambo district in the Eastern Cape close to 300kms (more than 3 hours drive) north east from the nearest airport in East London. To date R7.3 million has been spent on the project. GTAC Recommendation: Proceed with this project, at an estimated cost of R4.6 million, subject to conditions of the feasibility assessment. NDT Decision: Complete outstanding elements of the feasibility assessment in order to proceed with the project. 11

12 Western Tembuland Project EC (Stalled project) The Western Tembuland site consists of 15 chalets/rondavels, a restaurant and a hall and begun in The site is situated in Ward 6 of Emalahleni Local Municipality in the Chris Hani District of the Eastern Cape Province. The Western Tembuland project is 18 km (about minutes drive) from Queenstown and about 200km (2 hours drive) in a north westerly direction from East London. To date R10.3 million has been spent on this project. GTAC Recommendation: Proceed with this project, at an estimated cost of R7.6 million, subject to conditions of the feasibility assessment. NDT Decision: Complete outstanding elements of the feasibility assessment in order to proceed with the project. 12

13 Qatywa Tourism Development Project EC (Stalled project) The Qatywa Tourism Development project consists of 3 chalets, restaurant/conference centre and a craft workshop and begun in The Xhora area under which Qatywa falls is located north of Mbhashe River in the former Transkei region of the Eastern Cape. To date R 23 million has been spent on this project. GTAC Recommendation: The additional amount (estimated at R10.6 million) needed to complete the project cannot be justified in terms of the net income that the project is expected to generate over time according to projected income best estimates. Do not proceed with this project and perhaps consider alternative site use studies. NDT Decision: Commission the study for alternate site use, in order to determine how to proceed. 13

14 Rock Art Tourism Project EC (Stalled project) The Rock Art Tourism project consists of a Tourism Information and Interpretation Centre (including craft stall and hiking route) and a Conference Centre Facility and begun in The project is located on the well-known Langkloof R62 route passing through Kou-Kamma Local Municipality (Joubertina). To date R 6.9 million has been spent on this project. GTAC Recommendation: The additional amount needed (estimated at R 4.3 million) to complete the project cannot be justified in terms of the net income that the project is expected to generate over time according to projected income best estimates. Do not proceed with this project and perhaps consider alternative site use studies. NDT Decision: Agree on alternate site use with the local GTAC authority Working for Tourism and Programme complete 23 February the project

15 Mthonsi Lodge Project EC (Stalled project - Request for additional funds) The Mthonsi Lodge project consists of 13 self-catering chalets, backpackers lodging, restaurant and conference centre and begun in The farms where Mthonsi is located are found along the R63 route between Fort Beaufort and Adelaide, in the Nkonkobe Local Municipality area, in the Eastern Cape. To date R28 million has been spent on this project. GTAC Recommendation: Proceed with this project, subject to proof a sustainable operational model and measures to improve development impact. NDT Decision: Finalise sustainable operational model before proceeding with the project. 18

16 Kiwane Campsite Project EC (Planning stage) The Kiwane Campsite is an existing, partially completed facility, including accommodation facilities, backpackers lodging and a conference centre and begun in The site is located on the western bank of the Kiwane estuary on Erf 1168, East London, in the Buffalo City Metropolitan Municipality (BCMM) in the Eastern Cape. The site is accessed from the R72 via 13km of local dirt/gravel road. To date R 9.4 million has been spent on this project. GTAC Recommendation: Do not proceed with current concept. Complete new concept with costing for this site. Complete structural assessment. NDT Decision: This recommendation has been overtaken by events as the municipality has in fact completed the structural assessment and commenced with completion of the project. The details of the report have been shared with the Municipality. NDT has transferred full responsibility for GTAC the Working project for Tourism to the Programme Municipality. 23 February

17 Tenahead Lodge and Mountain Reserve Project EC (Stalled project) The Tenahead Project consists upgrade of the road and parking, signage along the tourism route, construction of a crafts centre developed as part of the scenic route concept for Senqu Local Municipality in the Eastern Cape. The Tenahead project is about 72 km (One hour s drive from Lady Grey and 130km (One and half hour drive) from Barkley East. Bloemfontein Airport is the nearest airport to the project site, approximately 246 km or 2 and a half ours drive. The building was destroyed by a fire. To date R2.5 million has been spent on this project. GTAC Recommendation: NDT should not proceed with the project. It is recommended that the current fire damaged structure be demolished as it poses a safety threat. NDT Decision: A structural assessment has been completed and the building found to be structurally unsafe following the fire. The building will be demolished. 17

18 Mdantsane Lodge Project EC (Planning stage) The Mdantsane project consists of upgrading of a tourism facility to build a lodge, a conference centre and accommodation units. The project is located on Portion 20 of the Farm 850. The project area is located on the banks of the Bridle Drift Dam. To date R has been spent on planning for this project. GTAC Recommendation: NDT should not proceed with this project. The current capital outlay is too costly and poses risks in terms of operational sustainability. NDT Decision: The Department will not proceed with this project. 18

19 Vredefort Dome Project FS (Planning Stage) The Vredefort Dome was declared a World Heritage Site in The first Interpretation Centre was inaugurated in 2008 but the doors never opened because the building had structural problems. The Interpretation Centre will be located in Parys, about 120 km south- west of Johannesburg just off the N1 in the Ngwathe Local Municipality in the Fezile Dabi District of the Free State. To date R14.5 million has been spent on this project. GTAC Recommendation: Proceed with this project in parallel with completing required elements of the feasibility assessment and operational model. NDT Decision: Proceed with this project in parallel with completing required elements of the feasibility assessment and 19

20 Barolong Boo Seleka Village Project FS (Stalled project) The Barolong Boo Seleka Village project consists of a cultural village, traditional restaurant and accommodation facilities and begun in The project is situated about 1km from the N8, close to Thaba Nchu in the Mangaung Local Municipality (Bloemfontein) of Motheo District, Free State Province. To date R5.6 million has been spent on the project. GTAC Recommendation: NDT should proceed with this project subject to the findings of the required feasibility assessment. NDT Decision: Finalise outstanding elements of the feasibility assessment and then proceed with the project. 20

21 Infrastructure Development through Monontsha Project FS (Stalled project) The project involved the construction of approximately 1,8km road way comprising interlocking pavers with concrete kerbing in some sections and started in One (1) km of the road was completed and the outstanding distance of work is 700m. The project was developed as part of a circular cultural route including the Wetsi Cave and an arts and crafts centre. The project is situated in the Maluti a Phofung Local Municipality, Thabo Mofutsanyane District of the Free State Province. To date R12.5 million has been spent on this project. GTAC Recommendation: Based on the findings of the pre-feasibility assessment, it is recommended that NDT should not proceed with the project. NDT Decision: NDT will complete the remaining 700m of road as it provides access at an estimated R7 million. 21

22 Empereni Hospitality Training Centre Project FS (Planning stage) The Empereni Hospitality Training Centre project consists of a 22 bed lodge, a restaurant, a multipurpose training centre, accommodation for students, a conference centre and craft exhibition. The project is located next to the main provincial road (R26) that links Ficksburg to other main eastern Free State towns, e.g. Fouriesburg, Clocolan, Bethlehem and Clarens. GTAC Recommendation: NDT should proceed with this project subject to the findings of the required feasibility assessment. NDT Decision: The Department will not proceed with this project. Initial estimated costs are R18.8 million, current estimated cost is R45.5 million, in light of fiscal constraints we are not in a position to proceed GTAC Working for with Tourism Programme the project. 23 February

23 Masilonyane Information Centre Project FS (Planning stage) The Masilonyana Information Centre (VIC) consists of a conference centre and admin block, an Internet café and ablution facilities and begun in The Project is located in the Theunissen, Masilonyane LM of the Thabo Mofutsanyane District in the Free State. To date R3.7 million has been spent on this project. GTAC Recommendation: No further action required on this project as it has been completed. Current status: The project has been handed over for administrative use by the municipality. No further action is required from the Department. 23

24 Platfontein Lodge Project NC (Planning stage) The Platfontein Lodge project consists of a lodge with accommodation facilities, recreational area with a swimming pool and began in The project is situated 17km from Kimberley on the R31 towards Barkley West. To date R24.3 million has been spent on this project. GTAC Recommendation: Issues of operational sustainability and development impact to be addressed. NDT Decision: The project will proceed in parallel with addressing operational sustainability. 24

25 Kamiesberg Tourism Development Project NC (Stalled project) The Kamiesberg Tourism Development comprises a visitor Information Centre; Rehabilitation of the existing Garies Caravan Park and the construction of accommodation facilities at the historic Roodebergskloof Farm and begun in The project is situated in the Kamiesberg Municipality of the Namakwa District in the Northern Cape. The main town in the local municipal area, Garies is easy to access from the N7. To date R 4.8 million has been spent on the project. GTAC Recommendation: Proceed with this project, excluding the visitor information centre, subject to proof of a sustainable operational model and measures to improve development impact. NDT Decision: The sustainable operational model will be completed before proceeding with the project. 25

26 Ngovhe Project LP (Stalled project - request for additional funds) The Ngovhe project consists of accommodation, conference facilities and a cultural centre and begun in The Project is located approximately 4kms (5 minutes) from Giyani near the village of Ngovhe, the turn-off to the Lodge is approximately 1.5kms from the R81 main Giyani Polokwane Road. To date R29.3 million has been spent. GTAC Recommendation: Proceed with project in parallel with addressing the sustainability model at an estimated cost of R17.7 million. NDT Decision: Proceed with project in parallel with address sustainability model. 26

27 Phiphidi Waterfall Project LP (Planning stage) The Phiphidi Waterfall project consists of the upgrading of existing day visitors facilities to include chalets and a refreshment kiosk and begun in The Lodge is located approximately 35kms (42 minutes) from Giyani past the Hudson Ntsanwisi Dam and Thomo, and near the village of Mahlathi and the fenceline of the Kruger National Park. To date R16.2 million has been spent on this project. GTAC Recommendation: Proceed with the project and address all the conditions of the feasibility assessment. NDT Decision: Proceed with project in parallel with addressing conditions of the feasibility assessment. 27

28 24 Rivers Project LP (Planning stage) The 24 Rivers project consists of accommodation facilities, a conference centre, a convenience shop and swimming pool and begun in The travelling distance from OR Tambo International Airport is 239kms on the N1 via Mokopane, and then a further 75 kms on the N11 to Groblersbrug border post with Botswana (Martin s Drift). To date R9 million has been spent on this project. GTAC Recommendation: Do not proceed with project as currently conceptualised, review for alternative site use as the financial viability of the project is unlikely over the long term and the projects do not present value for money in terms of long terms benefits. NDT Decision: Commission the study for alternate site use in order to determine how to proceed. 28

29 Sekhukhune Project LP (Planning stage) The Sekhukhune project was first conceptualised as a cultural village. In a technical assessment report (2015) it was recommended that the structure should be redeveloped as a multi-functional venue including a meeting hall, auditorium, small-scale venue and or board room. The Local Tourism Association could use around 40sqm of the total space. The Sekhukhune project begun in 2011 and is situated in the town Apel within the Fetakgomo Local Municipality in the Sekhukhune District of Limpopo province. It borders the Greater Tubatse Local Municipality in the east and Lepelle-Nkumpi Local Municipality (Capricorn District Municipality) in the north-west. To date R5.1 million has been spent on Sekhukune. GTAC Recommendation: Do not proceed with projects as currently conceptualised, review for alternative site use as the financial viability of the project is unlikely over the long term and the projects do not present value for money in terms of long terms benefits. NDT Decision: Complete existing building and negotiate alternate site use with the local authority and handover facility to the owning entity. 29

30 Tisane Cultural Village Project LP (Stalled project - request for additional funds) The Tisane cultural village project consists of a cultural village, conference centre, a swimming pool, accommodation facilities and braai facilities and begun in The village borders the town of Jane Furse on the R579 road to Lebowakgomo. To date R17.3 million has been spent. GTAC Recommendation: Proceed with this project, subject to the findings of the required feasibility assessment at an estimated cost of R17.9 million. NDT Decision: Finalise outstanding elements of the feasibility study prior to proceeding with the project. 30

31 Vha Tsonga Cultural Village Project LP (Stalled project) The Vha Tsonga Cultural Village project entails accommodation facilities, a caravan park and a cultural village begun in The well-known town of Louis Trichardt is situated at the foot of the Soutpansberg mountain range in Limpopo and was developed from the Voortrekker settlement in the area. GTAC Recommendations: NDT should proceed with this project subject to proof of a sustainable operational model and measures to improve development impact at an estimated cost of R3.3 million. NDT Decision: Finalise outstanding elements of the feasibility study prior to proceeding with the project. 31

32 Oaks Information Centre Project LP (Planning stage) The Oaks Information Centre Project consists of 12 new self-catering chalets, the purchase of a bakkie and brick making machine, the renovation of 5 curio stands and a conference facility, and the construction of a swimming pool with a lapa and braai stands and begun in The Project is located in the Maruleng municipal area, Mopani district in the south east of Limpopo province. To date R11.9 million has been spent. GTAC Recommendation: Proceed with this project, subject to the findings of the required feasibility assessment at an estimated cost of R15.5 million. NDT Decision: Proceed with this project in parallel with addressing the findings of the GTAC feasibility Working for Tourism assessment. Programme 23 February

33 Lilani Hot Springs Project KZN (Stalled project - request for additional funds) The project was implemented in 2001 through to 2004 as part of a community-based initiative by the Mthembu-Sithole Development Trust. It is built on the remains of a former hotel and bath house which closed in the 1960 s. Lilani Hot Springs is currently being upgraded to include conference facilities and accommodation and begun in The site is located in Umvoti Local Municipality in the Umzinyathi District municipality of KwaZulu Natal. Umvoti LM is situated approximately 75km from Pietermaritzburg and 55km from Stanger, and includes the urban centres of Greytown and Kranskop. To date R13.2 million has been spent. GTAC Recommendation: Proceed with project in parallel with addressing sustainability model. NDT Decision: Proceed with project in parallel with addressing GTAC Working sustainability for Tourism Programme model. 23 February

34 Muzi Pan Project KZN (Stalled project) The Muzi Pan project consists of accommodation facilities and a restaurant specifically planned to service a canoeing adventure enterprise adjacent to the site and begun in Muzi Pan Canoeing project is located in KwaZulu Natal under the Jozini Local Municipality. The project is about 5 hour s drive north from Durban s King Shaka airport (300km). To date R11.8 million has been spent. GTAC Recommendation: Proceed with this project subject to proof a sustainable operational model and measures to improve development impact at an estimated cost of R1 million. NDT Decision: Proceed with project in parallel with finalising the sustainable operational model. 39

35 Lotlamoreng Dam Project NW (Planning stage) The Lotlamoreng Dam project consists of an amphitheatre, a caravan park, deck restaurant seating, chalets, 2 swimming pools and change rooms, a refurbished hall, a botanical garden, playground, an open gazebo and sculptural focus point. Lotlamoreng Dam is located on the R49 about 6km south-west from Mafikeng, in the Mafikeng Local Municipality in Dr Ngaka Modiri Molema Modiri district in the North West Province. GTAC Decision: The current capital outlay is too costly and poses risks in terms of operational sustainability. The project should be reconceptualised. NDT Decision: Project will be reconceptualised in consultation with the Province. 35

36 Manyane Lodge Project NW (Stalled project - request for additional funds) The Manyane Lodge project has been in existence since the 1980s and has been managed by various private sector establishments. It is currently developed as a resort with accommodation, restaurant and conference facilities and begun in The project is situated in Mafikeng Game Reserve about 10 km from Mafikeng next to the Zeerust Road, (R49) in the Ngaka Modiri Molema District Municipality of North West Province. To date R46.9 million has been spent. GTAC Recommendation: Proceed with the project in parallel with addressing sustainability model at an estimated cost of R15.7 million. NDT Recommendation: Proceed with the project in parallel with addressing sustainability model. 36

37 Lehurutshe Project NW (Pre-feasibility stage) The African Gamebird Research Education and Development Trust (AGRED) initiated the project in the 2000s as part of an investigation into the feasibility of establishing game bird shooting industries in remote areas which are under the control of indigenous tribal communities. The development of the Lehurutshe Game Birding Destination consists of accommodation facilities, a braai lapa, a kitchen, a camp site with basic ablution facilities and an abattoir. Lehurutshe (formerly known as Welbedacht) is located close to Zeerust in the Ramotshere Moiloa LM in the Ngaka Modiri Molema Modiri Molema District Municipality of North West province. Lehurutshe falls in an area previously known as the Dinokana Reserve. GTAC Recommendation: It is recommended that NDT should proceed with the projects subject to the feasibility study outcomes. NDT Decision: No commitments have been made by NDT or the Province. Further deliberations on this project will be taken with Provincial Authorities in order to determine how to proceed with this project. 37

38 Lobatlane Project NW (Pre-feasibility stage) The Lobatlane Game Reserve project consists of game handling facilities, outbuildings, guest accommodation (tented camps and 18 chalets) and an abattoir. The project also includes the purchase of game viewing trucks, radio communication systems, a tractor and trailer as well as rifles and dart guns. The game farm will be situated in between Vryburg and Mmabatho in the Naledi Local Municipality, Dr Ruth Segomotsi Mompati District of North West Province. GTAC Recommendation: It is recommended that NDT should proceed with the project subject to the feasibility study outcomes. NDT Decision: No commitments have been made by NDT or the Province. Further deliberations on this project will be taken with Provincial Authorities in order to determine how to proceed with this project. 38

39 Bohlabela Cultural Village Project MP (Planning stage) The Bohlabela Cultural Village project consists of accommodation facilities, a restaurant and conference centre begun in The project is located in the Bushbuckridge Municipality, District of Mpumalanga province. The site falls under Ward 1 of the municipality and is also under the jurisdiction of the Hoxani Traditional Council. To date R9.4 million has been spent on this project. GTAC Recommendation: Do not proceed with project as currently conceptualised, review for alternative site use as the financial viability of the project is unlikely over the long term and the project does not present value for money in terms of long terms benefits. NDT Decision: The Department had previously decided to complete the buildings and appointed a service provider to assist with this process. This service providers report recommended that no further work should be completed due to viability of the project and a number of governance issues. GTAC s recommendation was made without knowledge of the service provider s report and with an alternate site in mind. The Department will not proceed with this project. 39

40 Mnisi Resort Project MP (Planning stage) The Mnisi Project consists of 10 chalets, a restaurant and picnic spots with recreational area and swimming pool an begun in The project is located in the Bushbuckridge municipality, Ehlanzeni District, of Mpumalanga province on the outskirts of the Manyeleti Game Reserve and is adjacent to the Mnisi Community owned and operated Wild Olive Tree Camp. To date R10.8 million has been spent. GTAC Recommendation: NDT should not proceed with this project as it is currently conceptualised. The project therefore must be reconceptualised. NDT Decision: Reconceptualise project. 40

41 Cape Agulhas Project WC (Planning stage) The Cape Agulhas project consists of the establishment and construction of tourism related infrastructure begun in The project will be implemented in partnership with by SANParks. The project is located in the Agulhas National Park on the southern-most tip of the African continent. To date R11.1million has been spent. GTAC Recommendation: NDT should proceed with this project, subject to the findings of the required feasibility assessment. NDT GTAC Decision: Working for Tourism Programme Proceed 23 February with 2018 project. 41

42 Key recommendations 42

43 Key recommendations short term assignment Primarily findings, conclusions and recommendations from the individual project assessments, indicate the urgent need for the implementation of a Revised Project Management Model, which firstly will be applied to the individual projects as assessed in the short term assignment and then applied to the long term assignment of all future projects. 43

44 Key recommendations short term assignment (cont.) Key elements of the revised project management model will include, but are not limited to: Conducting feasibility studies, as part of project planning, according to best practice principles to establish the long term sustainability of projects, value for public money and potential development impact. Facilitating effective private sector, community & development organisation participation in project operationalisation. Use of conventional project management approach, design by Client model, to execute the Working for Tourism projects and ensuring the transfer of skills, expertise and capacity to supplement current NDT technical capacity of the project team. Detailed elements of the Project Management stages and refinement of model are currently being completed as part of Long Term Assignment 44

45 Key recommendations short term assignment (cont.) - Proposed project management model FRAMEWORK (Guideline for Programme and Project selection, definition, planning, execution and close) VALUE CHAIN LIFE CYCLE PROCESS/ ACTIVITIES KEY DOCS Doing the right work (Aligning work to strategic goals) 1. Concept Concept workshop Stakeholder collaboration and buy-in Explore drivers, purpose and benefit/value Cost estimate 2. Definition Definition workshop Define success factors Categorise, classify and prioritise Register initiative Assign ownership Secure funding Initiative Proposal Initiative Business case Initiative Profile Doing the work right (Resource, method, control, reporting) 3. Planning Scoping workshop Establish time/ cost/quality parameters Define plan Approve budget Resource deployment SOW Budget Change & comms plan 4. Execution Steercom & team meetings Progress reporting (time/cost/quality/ milestones/ deliverables) Resource, risk & dependency management Progress report Dashboard Risk log STOP GO STOP GO STOP GO STOP GO Getting the right value/benefit (value governance) 5. Close Handover workshop UAT Handover to production Steercom output signoff Capex/Opex apportionment Steercom signoff Completion report 6. Benefit & Value Benefit And value analysis and realisation Post implementation review Lessons learned Post implementation review report ENTERPRISE PROJECT OFFICE (Support Services) GOVERN INFORM SUPPORT DELIVER Build and implement best-practice programme and project governance controls whilst minimising bureaucracy through a Principle-based project framework Establish and maintain regular and accurate project Dashboard reporting to provide early warning management information and to enable informed decisions Assist The project community through coaching and mentorship interventions, performance and training assessments and advice on appropriate methodologies Manage the delivery of cross-functional and strategic projects on request through the assignment of key project management, architecture, business analysis and change management skills. 45

46 Key recommendations short term assignment (cont.) Secondly, GTAC recommended that NDT strengthen WFT through improved collaboration with requisite expertise in tourism infrastructure and facilities investment projects and in partnership with experts in the field of financing such as construction and business establishment type of projects. The recommended approach to achieve such participation includes: Deliberations with Public Private Partnership Unit at National Treasury; Exploring potential partnership arrangements with IDC, National Empowerment Fund and Development Bank of Southern Africa; Convening a discussion forum with relevant stakeholders to test partnership involvement; Considering issuing a Call for Proposals to a wider private sector, community and development organisation audience. 46

47 Department s view on Recommendations The Department will fully align with National Treasury s Standard for Infrastructure Procurement and Delivery Management (SIPDM October 2015 effective from 1 July 2016). 47

48 Department s View on Recommendations (cont.) Stage 0: Project Initiation Stage 1: Infrastructure Planning Stage 2: Strategic Resourcing Stage 3: Pre-feasibility (Preparation and Briefing) Stage 4: Feasibility (Concept and Viability) Stage 5: Design Development Stage 6: Design Documentation Stage 7: Works Stage 8: Handover Stage 9: Closeout Project initiation report outlining high level business case and an estimated cost and project schedule Infrastructure plan identifies long term needs and prioritised needs to a forecasted budget Procurement strategy to implement medium term infrastructure plan via packages The Strategic Brief which contains the package information, the schedule of statutory permissions, funding requirements and utility approvals, as relevant, that are to be obtained as the work proceeds and the procurement strategy. The Concept Report will contain the package information which sets out the integrated concept for the works, any statutory permissions and funding or utility approvals granted and a risk report, and a logistic support plan. The Design Development Report which contains the package information sets out the integrated developed design of the works for a package and forms the basis for the development of the production information, any statutory permissions and utility approvals granted, a risk and maintenance report 6A Production Information detailing performance definition, specifications, sizing and position of all systems and components enabling either construction (where the contractor is able to build directly from the information prepared) or production of manufacturing and installation information for construction. 6B Output Manufacture, fabrication and construction information which is produced by or on behalf of the contractor, based on the production information provided for a package which enables manufacture, fabrication or construction to take place The output here is the completed works Works taken over with record information 9A Asset data on register 9B Completed package Standard for Infrastructure Procurement and Delivery Management (SIPDM National Treasury October

49 Implementation time frames Action Detailed feasibility study, operational models, reconceptualization and alternative site studies Setting up a panel of Built Professional Service Providers Revised processes and guidelines, including alignment to the IDMS Completion of stalled projects ( based on the outcome of detailed feasibility studies) Estimated completion dates 30 June June October March

50 THANK YOU. 50