THE RESTRUCTURING AND DIVERSIFICATION MANAGEMENT UNIT (RDMU)

In order to assist the MEPD implement the NAS, the European Commission agreed to finance the Restructuring and Diversification Management Unit, a temporary semi-autonomous unit that reports to the MEPD.

The purpose of the RDMU is to provide the human and institutional capacity for coordinating the implementation of a coherent response strategy, and the development of specific identified projects and programmes initiatives.

Under the guidance of the MEPD, the RDMU will (i) supervise and monitor all activities linked to the implementation of the strategy measures outlined in the NAS; (ii) specify and develop the components of the NAS in depth; (iii) undertake studies and needs/feasibility assessments, in order to establish a sound basis for the medium- and long-term strategy and to provide additional analyses. The RDMU’s results will be key to launching and managing the interventions identified for 2007-13.

In January 2008, the consortium comprising GFA Consulting Group ULG and Harewelle International Limited was awarded the service contract to set up and manage the Unit for three years. The RDMU is staffed by a team of four technical advisers. It can draw on up to 130 person-months of short-term expertise to develop. The RDMU It is located in offices in Maphevu Lane, Selection Park, Mbabane.

Current Activities by the RDMU related to Support to Smallholder Cane Growers

Design review and preparation of tender documents

During the reporting period most of the RDMU’s time was spent on to path the way for the first tender on irrigation equipment and installation (800 ha). As such the following activities were initiated and undertaken by the RDMU:

* Review, correction of infield irrigation designs prepared by SWADE. This was a tedious process going often backwards and forwards to advise the consultants contracted by SWADE how to design state-of-the art irrigation designs;

* Preparation of tender documents on these designs;

Technical Audit of irrigation systems for existing Farmers Associations

The objective of this consultancy is to carry out a technical audit of 15 Farmers Associations’ (as a pilot) irrigation systems in the northern and southern lowveld to provide detailed information on which to base the response strategy for the actions set out in the Financing Agreement “Support to Smallholder Sugar cane growers”. Depending on the outcome of this assignment, it is envisaged to extend it to all sugar cane farmer associations which have technical problems. It should then serve as a basis for the preparation of the Action Fiche for the second allocation for smallholder farmers laid down in the MIP in order to assist existing farmer associations to become competitive and viable enterprises. This consultancy started beginning of July and is expected to terminate end of October 2008.

Financial and management assessment of Smallholder Cane Farmer Associations

The objective of this assignment is to help associations undertake a financial and management assessment of their business, identify any constraints, and prepare new business plans that put them on a secure financial footing (including debt rescheduling). The information gathered through this process will also help identify general constraints to performance, and best practices to address them for replication to other schemes. Currently six farmer associations have been undergoing this finance assessment, however like the technical audit it is foreseen to extend it to all farmer associations if the outcome coincides with the expected results. It has to be noted that the finance and management assessment is is complementary to the technical audit where the latter recommends the rehabilitation and improvement of equipment and the former ensures that the rehabilitated enterprise will operate in a sustainable manner ensuring proper management, accounting and operation procedures. The current (pilot) consultancy started beginning of July and is expected to terminate end of August.

Preparation of the tender dossier for technical Assistance to Smallholder cane growers – Phase 1

In order to enhance the profitability of smallholder sugar cane growers with a view to supervising the installation of irrigation equipment and land development and training farmers in business development skills, the EC is launching in the last quarter of 2008 a Technical Assistance tender. The RDMU has prepared the Terms of Reference and has assisted the EC / MEPD and the whole tender document. It is expected that the tender (pre qualification) will be launched latest in September 2008.

Current Activities by the RDMU related to Support to Transport and Infrastructure

Preparation of the Action Fiche (AF)

A civil engineer with particular experience in EC procedures had a 10 work day assignment in writing the AF as well as in advising the stakeholders, particularly the Working Group in technical issues related to the prioritisation of the proposed infrastructure projects.

Design of infrastructures

A civil engineer has been contracted to prepare the preliminary designs of the infrastructures, to review costs and to assist in the elaboration of the tender dossier for the Final Design and Supervision.

Economic and Financial Analysis

A local economist was contracted in compiling the data enabling the RDMU team to perform an economic and financial analysis. The results of this assignment are reflected in the recommended infrastructures.

Environmental Scoping Study

This assignment has provided the EC and GoS with sufficient information to justify, on environmental grounds, the acceptance, modification or rejection of the Roads and Bridges infrastructure project. It also highlighted several issues which need to be catered for in the final design respectively construction of the works. Since the project is mainly upgrading existing roads besides new construction of the Siphofaneni bridge parallel to the existing one, no major environmental negative impacts can be anticipated. Therefore, it is recommended to abstain from a fully fledged EIA.

Gender Audit

The specific objective of this consultancy was to carry out a preliminary analysis of the gender issues, and to incorporate these issues in the design of the programme. The expert outlined a few areas which the final design has to cater for complying with gender related issues. Details can be drawn from her report.