Municipal Infrastructure Support Agent
____________________________________________________
Contribution of the Municipal Infrastructure Support
Agent (MISA) towards the Achievement the Universal
Access to Electricity and Sustainable Supply
Briefing to the Select Committee on Economic
Development
Date: Tuesday, 08 October 2013,
Venue: E249, 2nd Floor, National Assembly Wing,
Parliament, Cape Town
CONTENTS
1.
INTRODUCTION
2.
OVERVIEW OF MISA
3.
KEY MISA PROGRAMMES
4.
MISA’S ROLE IN THE ENERGY SECTOR
5.
KEY CHALLENGES
6.
CONCLUSION AND WAY FORWARD
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INTRODUCTION
• This presentation outlines how MISA’s support programmes contribute towards the
achievement of the universal access to electricity and ensuring sustainable supply.
• MISA is a dedicated government component established under the Ministry of CoGTA
with the mandate to provide technical capacity support and assist municipalities to build
their internal capacity for improved delivery and management of infrastructure and
service provision.
• MISA’s programmes focus on supporting mainly low and medium capacity municipalities
that continue to struggle with the development and maintenance of infrastructure and
service provision.
• Support to identified municipalities focusses mainly on the water and sanitation, energy,
waste management , as well as roads and stormwater
• Implementation of MISA’s programmes is guided by government’s key policy imperatives
such as the National Development Plan (NDP), New Growth Path, Strategic Integrated
Projects (SIPs), as well as the broader legislative framework on energy supply.
• The focus of MISA’s programme on Energy is intended to address electricity backlogs,
maintenance and refurbishment of existing infrastructure and development internal
technical through skills development.
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OVERVIEW OF MISA
Institutional Form
• MISA was established by Presidential Proclamation 29 of 2012, which was gazetted on
the 11th May 2012, in terms of section 7(5) (c) of the Public Service Act.
• The establishment of MISA was one of the key thrusts of the Local Government
Turnaround Strategy (LGTAS) aimed at creating a dedicated vehicle to support and
•
•
•
•
build technical capacity in local government for the improvement of municipal
infrastructure provisioning, refurbishment and maintenance;
Anticipating the establishment of MISA, government took a decision to unbundle Siyenza
Manje with the infrastructure component transferred to CoGTA and financial management
component transferred to National Treasury, with effect from 01 April 2011.
MISA is operationally ring-fenced from the Department of Cooperative Governance, but
linked to it for policy implementation purposes.
The head of MISA is the Accounting Officer in terms of the Public Finance Management
Act, No.1 of 1999, as amended.
MISA has been allocated its own operational budget of R820m over the MTEF period,
with R262m allocated for 2013/14 FY.
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OVERVIEW OF MISA
Core Mandate
MISA has a two-pronged
summarised as follows:
i.
ii.
mandate
can
be
To render technical advice and support in order to optimise municipal
infrastructure provisioning and management.
To coordinate the development and implementation of programmes
designed to strengthen the capacity of municipalities for planning,
development, operations and maintenance of their municipal
infrastructure.
It is not within MISA’s mandate to provide grants to municipalities for either
infrastructure projects implementation or the costs of maintaining and
refurbishing such infrastructure. Its mandate is to give technical assistance
to enable municipalities to perform these functions effectively.
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KEY PROGRAMMES
Overview of Key Support Programme
 Municipal Technical Support Programme – to ensure that MISA provides technical
support to those municipalities that require assistance with technical aspects of infrastructure
planning, implementation, operation and/or maintenance. Support provided is based on a
needs assessment and agreement with municipalities. This buy-in from municipalities is
essential for ownership and sustainability of support initiatives.
 Sectoral Support, Coordination and Grants ensures that resources from different
departments and institutions are properly coordinated to address sectoral priorities towards
eradication of service backlogs in water and sanitation, energy, solid waste management and
roads and storm water. This programme also supports municipalities to ensure effective
utilization of grants, especially the Municipal Infrastructure Grant.
 Capacity Development Programme ensures that technical capacity is developed in local
government for planning, delivering, operating and maintaining municipal infrastructure. Capacity
development is implemented through various programmes, including apprenticeships, young
professionals, experiential learning and rotating key municipal officials to the private sector and
academia for exposure. Bursaries are made available for studies in built environment, especially
engineering, to build a pipeline of future technical officials for municipalities. The programme also
provides mentorship opportunities for technical officials in municipalities to meet the requirements
for professional registration. Working in partnership with other public institutions, private sector
companies, tertiary institutions and professional bodies forms an important part of MISA’s
capacity development strategy.
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CURRENT SUPPORT ON ENERGY
MISA’s Overall Focus on Energy
MISA’s support programme on energy is focussed on the following:
1. The Implementation of Integrated National Electrification Programme
(INEP).
2. Approach to Distribution Assets Management (ADAM) Programme.
3. Business-Adopt-A-Municipality (BAAM) Support Programme in
Collaboration with Eskom.
4. Capacity building support to municipalities for accelerated delivery and
proper maintenance of electricity distribution infrastructure.
5. Presidential Infrastructure Coordinating Commission (PICC) Programme.
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CURRENT SUPPORT ON ENERGY
Roll-out of INEP and Green Energy
• Backlogs on electrification are currently at 3.5 million households and growing at a rate of
7% per annum. It is projected that at the current rate of connecting households, it would
take another 17 years to achieve universal access, without factoring in future growth
requirements.
• MISA is a member of the National Electricity Advisory Committee (NEAC) that oversees the
roll out and monitoring of the Integrated National Electrification Programme (INEP) with
budget allocation for financial year of R1,6 billion.
• Through MISA’s technical support programme technical experts (electrical engineers) are
supporting 7 (seven) municipalities (Randfontein, Empfuleni, Phumelela, Lesedi,
Baphalaborwa, Ngwathe) to enable improvement of their performance on electricity
provision.
• In addition 27 Municipalities are receiving support in relation to targeted areas within the
electricity distribution value chain through professional service providers (PSPs) contracted
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by
MISA.
CURRENT SUPPORT ON ENERGY
List of Municipalities Receiving Support through PSPs
PROVINCE
MUNICIPALITIES
MAIN AREAS OF SUPPORT
Eastern Cape
Engcobo, Emalahleni, Sakhisizwe, Gariep, King
Sabata Dalindyebo, Mhlontlo
Electricity Infrastructure and revenue loss
study and Strategy, Electricity Master
Plans, Electricification, Bulk Electricity
Infrastructure.
Free State
Masilonyana, Nala, Mohokare, Ngwathe
Electricity Master Plans
Gauteng
Lesedi, Westonaria
Electricity Loss Reduction Strategies
Kwazulu-Natal
Ingwe, Umzimkhulu, Umdoni, Umzumbe,
Hlabisa, Mtubatuba, Jozini, Umdoni,
Ubuhlebezwe, Greater Kokstad, Vulamehlo
Electricity Master Plans, Electricity
Maintenance and Refurbishment Plans
Limpopo
Lephalale, Ba-Phalarwa, Elias Motsoaledi
Master Plans, Energy Efficiancy Strategies,
Electricity Maintenance and Refurbishment
Plans
Northern Cape
Gasegonyana, Gamagara
Electricity Projects Funding Plans,
Operations and Maintenance Plans,
Energy Master Plans
North2017-07-13
West
Briefing to Select Committee on ED
Lekwa-Teemane,MISA
Mamusa,
Tswaing, Ratlou
Energy Master Plans
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CURRENT SUPPORT ON ENERGY
Approach to Distribution Asset Management (ADAM)
• In 2012 DoE, adopted a strategy called the Approach to Distribution Asset
Management (ADAM).
• This multi phased program in addressing electricity distribution challenges, was aimed
at addressing the backlog in maintenance, refurbishment and upgrading of the
Electricity Distribution networks.
• The initial work undertaken in implementing ADAM focused on addressing the capital
and skills shortage that exists in the electricity distribution industry which was driven by
the Electricity Distribution Industry (EDI) Holdings.
• National Treasury has also made additional funds available towards increasing the
number of households connection to 200 000 by 2013/14,270 000 by 2014/15 and 350
000 by 2015/16.
• MISA serves in the Mini- ADAM Steering Committee that is overseeing the piloting of
ADAM in 12 municipalities with the support of grants to be transferred to these
municipalities through DOE.
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CURRENT SUPPORT ON ENERGY
Municipalities Selected for Mini-ADAM
Municipality
Eastern Cape
King Sabata Dalindyebo Municipality (Umthatha)
Nelson Mandela Metro Municipality
Free State
Ngwathe Municipality (Koppies)
Moqhaka Municipality (Kroonstad)
Nala Municipality
Mangaung Metro Municipality
KwaZulu-Natal
The Msunduzi Municipality
Northern Cape
Sol Plaatjie Municipality
North West
Tlokwe Municipality
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Total
Total ('000)
R
R
60 000
35 000
R
R
R
R
20 000
20 000
20 000
25 000
R
100 000
R
20 000
R
R
20 000
320 11
000
CURRENT SUPPORT ON ENERGY
Business Adopt a Municipality Programme
• Business-adopt-a-Municipality (BaaM) programme entails a partnership
with Eskom to support struggling municipalities on electricity issues; 27
municipalities have been identified for support during the first Phase of
the programme.
• The provision of support to the selected municipalities is preceded by
an assessment to establish the exact needs of these municipalities.
• Although the assessment will determine the final areas of support per
municipality, the following areas have been identified as common
challenges facing a number of municipalities:
– Maintenance and rehabilitation of existing infrastructure;
– Increased investment in new and existing infrastructure
– Need to address high non-technical electricity losses;
– Revenue management and tariff setting
– Technical skills development
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CURRENT SUPPORT ON ENERGY
BAAM Priority Municipalities
Province
Priority Municipalities
Eastern Cape
Nxuba LM
Buffalo City Metro
King Sabata
Dalindyebo LM
Free State
Ngwathe LM
Nala LM
Phumelela LM
Gauteng
Westoneria LM
Randfontein LM
Lesedi LM
Kwazulu-Natal
Msunduzi LM
Mtubatuba LM
Upongolo LM
Limpopo
Sekhukhune DM
Greater Letaba LM
Ba-Phalaborwa LM
Mpumalanga
Thaba Chweu LM
Nkomazi LM
Greater Letaba LM
Northern Cape
Sol Plaatjie LM
Ge-segonyana LM
Magareng LM
North West
Ventersdorp LM
Mamusa LM
Ratlou LM
Western Cape
Matzikama LM
Cederberg LM
Kannaland LM
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CURRENT SUPPORT ON ENERGY
Menu of Support under BAAM Programme
Total menu of support agreed with Eskom :
Leadership and
Management
Training and
Development
Business and
Financial
Management
Support
Technical Skills
Development
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Maintenance and
Operations
Demand Side
Management
Investment,
Networks &
Master Planning
Contact Centre
Access and/or Setup
Energy Losses
Management
Pricing and
Tariff Structure
Technical Standards
Credit and
Revenue
Management
Improving
Efficiency in
Procurement
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CURRENT SUPPORT ON ENERGY
Municipal Capacity Building: Electricity Supply
MISA’s initiative aimed at strengthening the capacity of municipalities to perform the
electricity distribution function entails the following:
• Placement of electrical apprentices for operation and maintenance of distribution
infrastructure.
• Training of officials in municipalities’ electricity/ technical departments focusing
on the electricity distribution and solar/renewable energy supply.
• Supporting municipal officials and unemployed graduates qualified in the
electricity field to register with relevant professional bodies.
• Supporting and facilitating the trade testing for both municipal officials and
unemployed graduates.
• Granting of bursary to students in electrical engineering and related fields.
• Currently a total of 234 Electrical Apprentices are placed in 25 municipalities
under 6 Provinces (EC, KZN, LM, MP, NC and NW), for experiential learning.
• In addition 29 candidates are undergoing experiential learning in municipalities
across all nine provinces towards qualifying as Artisans in the electricity sector.
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CURRENT SUPPORT ON ENERGY
Municipal Capacity Building: Electricity Supply Cont…
PROVINCE
MUNICIPALITY
Eastern Cape
Meletswai, Senqu, King Sabata
Dalindyebo, Mnquma
Kwazulu-Natal
Msunduzi, Mpofana, Mandeni,
Newcastle, Kwadukuza
Blouberg, Modimolle, Polokwane
Limpopo
Mpumalanga
NO. OF ELECTRICAL
APPRENTICES
8
69
17
Albert Luthuli, Lekwa, Thaba
Chweu, Umjindi, Nkomazi
Northern Cape Sol Plaatjie, Kamiesberg,
Kareeberg, Kai!Garib
39
North West
10
Total2017-07-13
Rustenburg, Madibeng, Matlosana
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134
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CURRENT SUPPORT ON ENERGY
PICC Initiative
• MISA is leading the process of exploring the option of central procurement of
equipment for electricity distribution by municipalities.
• This project is in line with the decision of PICC Manco that recommended that
municipalities follow a central procurement approach, using Eskom’s
procurement system, when purchasing equipment for electricity infrastructure.
• This approach is intended to apply to the purchase of equipment for both
electrification infrastructure and maintenance if existing infrastructure assets.
• It is further proposed that a provision be included in the conditions for Integrated
National Electrification Programme (INEP) to give effect to the PICC decision.
• The rationale for pursuing this model is to enable government to reap cost
savings accruing from economies of scale and accelerate the electrification
programme.
• The initial work towards the development of a mechanisms for implementing this
approach has just commenced.
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CURRENT SUPPORT ON ENERGY
PICC Initiative Continue…
• Municipalities are experiencing challenges in relation to the implementation of
Strategic Integrated Support Projects (SIPs).
• To address this challenge, MISA is in the process of creating institutional
capacity for supporting municipalities in the implementation of the Strategic
Integrated Projects (SIPs).
• The aim is to provide technical support to municipalities on the implementation
of key elements of SIPs that deal with infrastructure for service delivery,
especially those touching on the local government functions such as SIPs 8 and
10, among others.
• SIP 8 (Green Energy in Support of the South African Economy) – supporting
sustainable green energy initiatives through a diverse ranges of clean energy
options.
• SIP (Electricity Transmission and Distribution for All) expand the
transmission and distribution network to address historical inbalances, provide
access to electricity for all and support economic development.
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KEY CHALLENGES
• Most municipalities are also faced with massive and growing backlogs in
relation to households access to energy, as well as maintenance and
refurbishment of their distribution assets.
• These municipalities lack requisite institutional capacity and funding
required to address these two challenges.
• Municipalities continue to allocate insufficient budgets to deal with
maintenance and refurbishment of their distribution assets.
• There is generally poor uptake of alternative/green energy opportunities by
municipalities.
• MISA and DOE need to forge stronger working relationship to leverage
from each other’s capacity and knowledge base, as well as promoting
coordinated supporting to municipalities.
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CONCLUSION AND WAY FORWARD
• There is a great need for MISA refine its programme for supporting the
provision if energy by municipalities to optimise its impact.
• As an initial step towards beefing up the capacity for supporting
municipalities on energy supply function, MISA will be appointing and
assign nine (9) Senior Electrical Engineers – one professional for each
province.
• Priority will continue to be given to the improving collaboration with the
Department of Energy.
• With the guidance and support from DOE MISA will play an active role in
supporting municipalities to exploit opportunities in alternative/green
energy.
• An area that also warrant more attention is the building of internal
capacity in individual municipalities for better operations and
maintenance of electricity infrastructure.
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