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Module 2: Infrastructure Planning

TOOLKIT 2006
INFRASTRUCTURE DELIVERY MANAGEMENT GUIDELINES

MODULE 2: INFRASTRUCTURE PLANNING AND PROGRAMME MANAGEMENT BY THE CLIENT

Status: Final for Toolkit version 4.0

Developed by the Construction Industry Development Board in cooperation with National Treasury Version 4.0 March 2006

Module 2 Table of Contents

Module 2 - Overview TABLE OF FIGURES Supporting Information, Templates and Examples Schedule of Supporting Information Schedule of Templates Schedule of Examples 1 2 OVERVIEW OF MODULE 2 INTRODUCTION AND OUTLINE OF MODULE 2 2.1 2.2 PART A: INFRASTRUCTURE PLANNING PART B: PROGRAMME MANAGEMENT BY THE CLIENT DEPARTMENT

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TABLE OF FIGURES Figure 1.0: Modular Footprint of Toolkit (highlighting Module 2A) Figure 1.1: Modular Footprint of Toolkit (highlighting Module 2B) Figure 1-2: Key Programme Management processes performed by the Client Department and the Implementing Agent (IPIP Infrastructure Programme Implementation Plan; IPMP Infrastructure Programme Management Plan; MTEF Medium Term Expenditure Framework; and SDA Service Delivery Agreement) Figure 1-3: Project Delivery Process Groups mapped to the Plan-Do-Check-Act-Cycle (PMBOK 2004)

Supporting Information, Templates and Examples

Schedule of Supporting Information

Number 2S01 Name 2005 Generic Strategic Planning Framework Synopsis/Purpose Framework and templates for provincial departments for the preparation of Strategic and Performance plans for 2005-2010 and Annual Performance Plan for 2005 This document provides guidance on the drafting of provincial budgets This attachment aims to provide a general introduction to the GFS system established by the International Monetary Fund (IMF). It forms the basis for the classifications used in South Africa and is adjusted only where the functions of the spheres of Government differ. These classifications can be applied to government expense and the next acquisition of non-financial assets. This document prescribes the form of National, provincial and municipal budgets and determines when national and provincial budgets must be tabled This document prescribes the form of National, provincial and municipal budgets and determines when national and provincial budgets must be tabled Proposed structure and content of Quarterly performance reports The presentation illustrates the alignment of the infrastructure delivery cycle with the budget cycle and strategic planning cycle The notes should be read in conjunction with the Alignment of Budget Cycles presentation This MOU provides an example of the cooperation between the National Department of Public Works and its National Client Departments defining the responsibilities of each Current Revision 16 Aug 2004

2S02 2S03

Provincial Budget Format Guideline (Final 2003) Government Finance Statistics Manual (2003)

2003 2003

2S04

Functional classification (2001) Budget and Programme Structures publication (2004)

2001

2S05

2004

2S06

2004 Budget and Programme Structures (continued)

2004

2S07 2S08

Quarterly Reports Format (2003) Alignment of Budget Cycles slide presentation Alignment of Budget Cycles slide notes MOU Dept of Public Works and Client Department

2003 June 2006

2S09 2S10

June 06 Jan 06

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Schedule of Templates
Number 2T01 Name Infrastructure Plan template Infrastructure Planning checklist Benchmarking template Readiness for next phase Synopsis/Purpose A template and guidance for the preparation of a comprehensive infrastructure plan The infrastructure planning checklist covering five key areas A benchmarking template for infrastructure planning The readiness assessment would be completed after a department has prepared its infrastructure plans. The purpose of the readiness assessment is to check whether or not the department is adequately prepared for the programme This information is used as the benchmark for assessing the departments capacity with regards to requisite skills. Template for Client infrastructure programme covering targets, institutional and programme management arrangements, budgets, project cycle, monitoring and reporting, risk/quality/communication management The Capacitation Plan relates the needs identified by the O& S Plan to what the Department actually has available and thus defines the gap between them. Provided Terms of Reference for the work to be carried out by the client programme manager Sets down the agreement between the Client and the Department of Public Works which will implement the infrastructure programme on behalf of the Client including roles and responsibilities, performance requirements, payment details, dispute resolution etc. Sets down the agreement between the Client and the organisation which will implement the infrastructure programme on behalf of the Client including roles and responsibilities, performance requirements, payment details, dispute resolution etc. Provides the multi-year timetable for Infrastructure Planning for the following year, development of the Programme Management Plan, mobilization of Implementing Agents, project design, tendering and award, construction and close out. File Type Word Current Revision 4-0

2T02 2T03 2T04

Word Word Word

4-0 4-0 4-0

2T05

Determination of skills required

Word

4-0

2T06

Infrastructure Programme Management Plan (IPMP)

Word

4-0

2T07

Capacitation Plan

Word

4-0

2T08

Terms of reference for Programme Management (Client side) Interdepartmental Service Delivery Agreement (SDA) Client Department and Public Works

Word

4-0

2T09

Word

4-0

2T10

Implementing Agent Service Delivery Agreement (SDA) between Client Department and Implementing Agent Summary Programme Timetable

Word

4-0

2T11

Excel

4-0

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Schedule of Examples
Number 2E01 Name Infrastructure Plan for the 2005/2006 MTEF period, KZN DoE Infrastructure Plan for 2006 / 2007 Eastern Cape DoE MOU Dept of Public Works and Client Department Synopsis/Purpose This example sets out the structuring of the infrastructure plan for the KwaZulu-Natal Department of Education This example sets out the structuring of the infrastructure plan for the Eastern Cape Department of Education This MOU example sets down the cooperation between the National Department of Public Works and its National Client Departments defining the responsibilities of each This example set out the service agreement between a provincial Client Department and an Implementing Agent -This example if the service level agreement between the national Department of Public Works and Client Departments This example set out the workshopping process undertaken to achieve buy in for the service agreement between the Western Cape Education Department and Public Works File Type Adobe Acrobat Current Revision 31 March 2005

2E02

Word

17 August 2005

2E03

Word

Jan 06

2E04

Service Agreement

Word

May 2005

2E05

Service Agreement

Word

July 2005

2E06

Service Agreement Workshop Process

Acrobat

Oct 2005

1 OVERVIEW OF MODULE 2
The infrastructure planning process is a component of a departments service delivery planning process. A departments overall strategic planning process must address the overall strategic direction of a department addressing all operational issues related to service delivery, of which infrastructure is only one component. As such the infrastructure planning process can never be outsourced and must be performed in-house with appropriate specialist out sourced support if necessary. Infrastructure delivery is a further component of a departments service delivery process. Whereas the actual implementation might be outsourced to an implementing agent, there are certain delivery management functions that can never be outsourced. These two infrastructures related components of a departments service delivery process are dealt with in Parts A and B of this module.

2 INTRODUCTION AND OUTLINE OF MODULE 2

Module 2 of the toolkit focuses on the Client Department[1] and consists of two parts. Part A Infrastructure Planning - provides guidelines for the development of long-term infrastructure plans and budgets that support a departments service delivery in accordance with the departments strategic plans, and for developing the associated medium term expenditure frameworks (MTEFs) for infrastructure. This part focuses on developing infrastructure plans and does not address the processes related to the programme (which are described in Part B and in Module 3) or projects (which are described in module 4). These infrastructure plans and associated budgets also inform the departments performance plans[2] and the Asset Management Plan[3].
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Part B Programme Management by Client Departments - provides guidelines for the overall programme management responsibilities of the Client Department those portions of the delivery management function that must be performed by the Client Department (and cannot be outsourced), whereas Module 3, Infrastructure Programme Implementation, will focus on that portion of delivery that can be outsourced to an Implementing Agent. The diagrams below illustrate the above.

Figure 1.0: Modular Footprint of Toolkit (highlighting Module 2A)

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Figure 1.1: Modular Footprint of Toolkit (highlighting Module 2B)

The Strategic Planning Process, although referred to in Part A of Module 2 of the Toolkit is not covered by the material in this toolkit. It is covered by existing National Treasury Guidelines (see Suporting Guideline 2S01) developed for Departments as a whole, without a specific infrastructure focus. The outcome of the process is a 5 Year Strategic Plan and Performance Plan which provides strategic objectives and targets for all aspects of a Department, especially its service delivery targets. These strategic objectives are a major input into the infrastructure processes as will be discussed later. The Infrastructure Planning and Budgeting and Prioritisation processes are extensively covered in Part A of Module 2 of the Toolkit. The Primary outcomes of these two processes that are closely interrelated are:

The Infrastructure Plan (2T01) including its Long Term (anywhere from 10 to 30 years) Budget
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Module 2: Infrastructure Planning

The Organisation and Support Plan and its long term budget The prioritised MTEF budgets developed from the long term budget which includes funding for both Infrastructure projects as well as the organisation and support required to deliver on these budgets

A second outcome of the Infrastructure Planning Process is the Immovable Asset Management Plan that forms part of the departments Asset management Plan. A further important outcome of the Budgeting and Prioritisation Process is the Annual Performance Plan which sets the deliverable targets to be met when implementing the budget and against which performance reporting is made. The Programme Planning Process is covered in Part B of Module 2 of the Toolkit. This process is always performed by the Client Department. The key outcomes of importance here are:

The Infrastructure Programme Management Plan (IPMP) (2T06) which defines the projects to be delivered and the performance requirements. The Service Delivery Agreement (SDA) (2T09 or 2T10)which sets the rules for the relationship between the Client Department and its Implementing Agent(s).

Figure 1-2: Key Programme Management processes performed by the Client Department and the Implementing Agent (IPIP Infrastructure Programme Implementation Plan; IPMP Infrastructure Programme Management Plan; MTEF Medium Term Expenditure Framework; and SDA Service Delivery Agreement)

The information in this module is arranged as follows:

2.1

PART A: INFRASTRUCTURE PLANNING

Section 1: Infrastructure Planning in Context

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The principal steps for the planning of infrastructure are addressed in this section. There are six major phases with a number of inputs and outputs for each phase. A good Infrastructure Plan (2T01) should consist of the strategic plan for service delivery, as well as the supporting plans for human resources, asset management, infrastructure, information systems, financial strategies, etc. Important aspects covered are:

Understanding strategic planning in the context of government Integrating service delivery and budgeting Understanding the context of infrastructure and asset management planning Project delivery and implementation Setting up an annual planning programme

Section 2: Infrastructure Planning Process (2T01) The major activities of an infrastructure planning process are:

Analysing the requirements [needs] Analysing the current situation [supply] Analysing the gap between needs and supply Assessing alternative solutions Analysing the options available Drafting the infrastructure plan Compiling the long term infrastructure budget

Section 3: Infrastructure Planning Worked example In this section a worked example for health infrastructure planning is provided that takes the reader through some of the practical issues that need to be addressed when undertaking these processes. Section 4: Infrastructure Budgeting, Prioritisation and linkages to other planning processes The first portion of this section provides guidance on the budgeting process that follows as part of the planning process. It covers the infrastructure budget, and the requirements of the MTEF. It also discusses how infrastructure prioritisation should be dealt with. The second portion of this section focuses on alignment with other departmental planning processes such as the strategic planning process and the annual performance planning processes. It also addresses some issues surrounding the determination of delivery targets and the alignment of sub-programmes with departmental mandates and policies. Lastly the link between planning and financial management is discussed. Section 5: Planning Phases Information Gathering This section provides a set of checklist questions to ensure that all necessary information is collected and that no important issues are ignored. The questions relate to the infrastructure planning phases, as well as the PFMA and infrastructure planning organisation and support. Section 6: Drafting the Infrastructure Plan (2T01) Brief notes on some technical aspects of report drafting applicable to the Infrastructure plans are provided in this section. Section 7: Explanatory Comments on Part A: Infrastructure Planning Here a number of issues are elaborated in order to provide greater understanding to the reader. These explanatory comments are cross referenced through the use of section numbers in square brackets.
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It is critically important in the early stages of the infrastructure planning process, to carefully consider the impact of infrastructure on social, economic and environmental factors; that is sustainability of the proposed plans. Infrastructure should be sustainable.

2.2

PART B: PROGRAMME MANAGEMENT BY THE CLIENT DEPARTMENT

This section of Module 2 is split into the main processes and key components, as follows: Section 1: Initiate

Establish the programme management function (2T06) based on the requirements defined in the Infrastructure Plan Review, understand, accept MTEF scope and budget Procure services of Programme Implementing Agents (PIAs) and prepare service delivery agreements (SDAs) (2T09 or 2T10)

Section 2: Plan

PIAs formulate the Infrastructure Programme Implementation Plan (3T01) Review and approved the Infrastructure Programme Implementation Plan

Section 3: Implement

Manage the interface between Client Department and Implementing Agent

Section 4: Close

Accept and transfer to Operations

Section 5: Monitor and Control

Report on performance Programme review

The section divisions and workflow align and incorporate the generic processes which occur within each phase / stage of an Infrastructure Programme / project cycle. These processes are described by the Project Management Institute within its Project Management Body of Knowledge (PMBOK) Guide and comprise:

Initiating Work comprising obtaining authorisation and setting up the phase of work to be undertaken and mobilising the resources needed to plan and implement the phase of work including preparation of scope of work to be undertaken. Preparing Work Plan comprising preparation of a work plan/plan of action/activity schedule for the phase of work being undertaken. For example within the Project Inception Phase the work plan will set down the major activities including the formulation of a feasibility report and obtaining budget approval etc. Executing Work Plan once the work plan is formulated and agreed to it is then implemented, i.e. plan the work then work the plan. Controlling throughout the phase progress is monitored (i.e. controlled) e.g. has the work plan been prepared? Has it been approved, where are we in the work plan currently etc. On the basis of the monitoring corrective action is then taken if there is a blockage or problem. This constitutes controlling the work being undertaken Reporting entails communicating the progress/deliverables in formats appropriate to the target groups being communicated with. Closing once the work plan is complete the phase is signed off as complete and the next phase then initiated

The above project management processes are shown diagrammatically below in Figure 1.3.
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Figure 1-3: Project Delivery Process Groups mapped to the Plan-Do-Check-Act-Cycle (PMBOK 2004)

[1] Provincial departments responsible for education, health and roads [2] As required by the PFMA and Treasury Regulations [3] As required by the Office of the Accountant General (and the proposed GIAMA bill)

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