Energy Efficiency Programme and ‘Green Buildings' Project: reports by Department of Public Works and Independent Development Trust; Budgetary Review and Recommendations Report

Meeting report

Energy Efficiency Programme
Mr Anselm Umoetok, Director: National Department of Public Works (DPW), said the purpose of the presentation was to indicate the energy efficiency improvements which had been carried out in government buildings by the DPW, making use of the shared savings model, retrofitting projects and behavioural changes.  The government had set up a task team in February 2008 to coordinate an energy conservation programme in state-owned buildings, and a code of conduct had been formulated for the occupants of all buildings under the custodianship of the DPW – used or leased – to contribute to saving energy. 

The Department had implemented shared energy contracts in Pretoria, Johannesburg, Bloemfontein and Cape Town.  This had resulted in monetary savings of R348m in Pretoria (since 2003), R46.6m in Johannesburg (since 2000), R216.34m in Bloemfontein (since 2003) and R52.7m in Cape Town (since 1997).  The contracts in Johannesburg and Bloemfontein had expired in December 2011, while the contracts for Pretoria and Cape Town had been renewed.   A shared energy contractor had been appointed for Durban, Polokwane and Mmabatho, but as the projects were in their initial phase, no energy savings had been realised yet.

In August 2010, a “Save It” energy efficiency campaign had been implemented by the Government Communication and Information Service (GCIS), aimed at saving 10% in energy consumption in all public buildings.  All DPW regional offices and user departments had participated in a series of workshops to learn about the campaign.  The Independent Development Trust (IDT) had been appointed to implement the DPW’s energy efficiency programme (EEP), focused mainly on lighting and remote metering, at selected DPW facilities in the Eastern Cape, Mpumalanga and Northern Cape, over the past two financial years.  The IDT had also been appointed to implement the Green Building Programme on selected state-owned buildings in KwaZulu-Natal for the COP17 international conference, such as the Luthuli Museum, where interventions had ranged from water conservation, electrical and mechanical energy savings, to other greening initiatives.

In the Eastern Cape, Mpumalanga and Northern Cape, 120 EEP projects had been identified, and 103 had been completed at a total cost of R127m.  The work involved changing 66 839 light fittings in 263 buildings, which had resulted in estimated annual energy savings of 36%, worth over R43m.  During the projects, 1 795 people had been employed, ranging from electrical engineers, master electricians and electricians, down to a large number of electrical assistants and interns.  The interns had been drawn from the ranks of tertiary institutions.  Challenges which had been encountered included problems in gaining access to facilities (mostly related to security issues), no existing As-Built plans being available, and short lead times for materials procurement.

At the Luthuli Museum, impact areas had been identified and the focus placed on rewiring the electricity distribution system, enhancing the air conditioning and lighting, solar photovoltaic and switching controls, water heating and efficiency devices, passive energy controls and automated remote metering systems.  An important element had been the excellent exposure to both young and old people visiting the museum, of the benefits of energy efficiency interventions.  The IDT had completed all the programmes it had been appointed to implement, and was currently not working on any further EEP initiatives.

Discussion
Ms A Dreyer (DA) said the saving of electricity and water resources was close to her heart, but what riled her was the impact excessive use of paper was having on trees and the environment.  Parliament was “flooded” with paper, so it should be a target for intervention.

Mr K Sithole, (IFP) asked why the shared energy contracts in Johannesburg and Durban had not been renewed.  He referred to the 1 795 jobs which had been created to implement the EEP projects, and asked whether the process had involved a transfer of skills.

Ms P Ngwenya-Mabila (ANC) asked for clarification on several aspects of the shared energy contracts, pointing out that although the Committee had been told how much had been saved, it did not know how much had been spent in each area, and was therefore unable to judge whether the programme had delivered value for money.
What had happened to the interns after the EEP projects had been completed?

Mr M Swathe (DA) said the initial focus seemed to have been on the retrofitting of energy-efficient lighting, and suggested that attention should also be directed towards air conditioning, which consumed a lot of energy.

The Chairperson said the DPW had been asked a year ago to present plans on how it would implement energy-saving plans at Parliament and in the three parliamentary villages.  What had happened since then?  The lights in all the offices remained on 365 days a year.   The Luthuli Museum had been the focus only to impress delegates to the COP17 conference, and little else had been achieved.  Parliament was “naked,” without trees, shrubs and flowers.

Mr Umoetok said the Department had introduced an initiative to reduce the use of paper, by switching to greater use of e-mail communication, and where paper was still necessary, it was recycled where possible.

He explained that the renewal of the shared energy contracts for Johannesburg and Durban had been delayed by a previous Minister (Doidge), after the required supply chain management processes had been completed.

The Chairperson said this had happened a long time ago, and she could not accept this explanation.  Had energy efficiency projects been implemented at all DPW offices, or merely those designed to impress the COP17 delegates?

Mr Hope Mashele, Energy Efficiency Consultant for the IDT, said the Department’s efforts at COP17 had not been aimed at simply impressing, but to show both local and overseas people what South Africa could do.  The Luthuli Museum had shown how renewables could be implemented in the areas of water, electricity and subsistence farming, so it had a long-term impact.  Regarding paper saving, the DPW had submitted proposals on how to use electronic “tablets” for presentation purposes.   Organisations like major banks now made extensive use of this form of communication.

The Chairperson said the Committee was talking about what happened in Parliament, not the private sector.  There was a great wastage of paper, and the DPW had been asked to assist.  Since 2008, nothing had been done.

Mr Umoetok said that tablets had been issued to those at director level in government.

The Chairperson responded that this meant that everyone from Deputy Director General down was wasting paper, and called on the DPW to admit that it was not “hands on” in the area of energy efficiency.  It had also failed to sign memorandums of agreement with other departments on the issue.

Ms Ngwenya-Mabila said energy efficiency initiatives should also be directed at government institutions such as schools and hospitals.

The Chairperson reminded the DPW of several commitments it had made since 2008, including issuing 14 guidelines to government departments, developing awareness campaigns, auditing progress, installing solar panels and wind-powered generators at government buildings, and implementing the efficiency code of conduct.  Had all this been done?

Mr Umoetok said some of these commitments had been fulfilled.

Ms C Madlopha (ANC) said that if one looked at the energy efficiency programme since 2008, one could not say there had been a “hands on” involvement by the DPW.   More needed to be done.  As politicians, the Committee was not satisfied.  Not even the needs of Parliament had been attended to.

Mr Umoetok said the last funding from Treasury for EEP projects had been in 2011.  There had been no direct funding this year.

Mr Vedanth Jugath Programme Manager; Independent Development Trust (IDT), said the DPW had turned to the IDT for assistance, and it had delivered on COP17.  The Department struggled for funding, which was why it was turning to the shared saving approach.

Mr Mashele agreed that air conditioning units were significant users of electricity, but it was more expensive to retrofit than lighting, to achieve the same reduction in power usage.

The Chairperson said she had been told there were “smart” switches which automatically turned off lights when one left a room.  Why did the Department not replace all existing switches with these devices?

Mr Mashele said there were technological issues which had to be taken into account.   If the lighting currently installed were constantly turned on and off, there would be an increase in maintenance costs.

Ms Madlpha said the report presented to the Committee had not explained what the real problems facing the DPW were.  Since 2008, it had achieved only 36% power saving in three provinces.  She recommended that the Department should be asked to return at a later stage to tell Members about the “real” challenges.

Mr Mashele said the EEP project had resulted in skills transfers, and a large number of the interns had been unemployed graduates who would be able to lead projects in future.

Mr Umoetok said his report should have made mention of the funding challenges.  The implementation of more energy efficiency projects was dependent on more funds being allocated by the Treasury.

The Chairperson said the Committee was “not impressed” with the presentation by the Department, and asked that it return in March with “an honest report” for consideration by Members.

Budgetary Review and Recommendation Report
The Committee discussed the observations, conclusions and recommendations included in its Budgetary Review and Recommendation Report (BRRR).

The Committee’s observations dealt with concern over the delay in introducing the Expropriation Bill and the Built Environment Professions Bill; challenges in implementing the Government Immovable Asset Management Act; the management challenges facing the DPW, with a lack of stable leadership in the Department; the progressively worsening audit outcomes received by the DPW over the past three years; the capacity of internal audit staff; the lack of proper systems for the management of leases entered into by the DPW on behalf of client departments; and the lack of technical skills in the Department, which needed to be addressed urgently, with the resuscitation of government workshops being an immediate corrective measure.

The conclusions drew attention to the fact that the DPW still had challenges in the areas of capacity, specialist skills, and the filling of vacancies with appropriately skilled personnel.  It needed to put in place systems to ensure the effectiveness of the Immovable Asset Register, as well as systems which would ensure the financial integrity of the Department and the Property Management Trading Entity.  The Committee welcomed the new Expanded Public Works Programme (EPWP) model, and would like to see the DPW enforcing the appointment of disabled persons and women in EPWP projects.

The Committee’s recommendations covered all the issues raised.  There was some debate over a recommendation that the Minister of Public Works should “ensure that there are policies in the DPW for state funerals and for the allocation of furniture in the ministerial houses.”    It was agreed that the recommendation should be split into two parts, as they dealt with two different policy issues.  The state funerals policy could also be linked to “prestige projects.”   The furniture allocation policy was intended to set limitations on what Ministers could choose for their residences – “no Persian carpets or original Mona Lisas”, as the Chairperson put it – but this could also be extended to their office furniture.  It was suggested that a furniture disposal policy should also be considered.

A recommendation that the DPW should cut down on the outsourcing of maintenance in favour of doing most of it in-house, also led to discussion.  Ms Dreyer said the shortage of technical skills in the Department had to be considered, in which case the cost-effectiveness of using consultants had to be taken into account.  In order to acquire relevant skills, it should recruit locally or internationally so that skills shortages were overcome while the in-house skills were being developed.  The Chairperson said the maintenance of DPW buildings should be part of the EPWP programme, and the National Youth Service (NYS) should be involved.  Mr Swathe queried whether the NYS had the necessary skills, but the Chairperson said they could be trained first.  Ms Ngwenya-Mabila added that the training needed to be linked to the needs of the Department.

Ms Ngcengwane said the mismanagement of Robben Island was an issue which could not be “left alone.”

The Chairperson responded that “something serious” was happening at the island, and the Committee should request a report on the matter.

The meeting was adjourned.