City of Ekurhuleni Mega Human Settlements Presentation 05 June 2017 Bongani Molefe, HoD Human Settlements

PRESENTATION CONTENT Why Mega Human Settlement Projects? What are the Mega Human Settlements Projects? What is the Current Status of these Projects? What is Expected from Investors?

Why Mega Human Settlement Projects? To decisively deal with the City Housing Backlogs; To utilise integrated settlements to transform the current dislocated urban spatial patterns thus supporting greater economic efficiency, increasing access to socio- economic opportunities and encouraging social cohesion

City Housing Backlog 164 699 Informal Settlements 181 136 Backyard 44 721 Waiting list 11 245 hostels TOTAL 401 801

What are Mega Human Settlements Projects They represent a paradigm shift of the Housing Delivery Programme; They represent projects with significant number of units (10 000 and above); They represent integration of various typologies from fully subsidised, gap housing, social housing and bonded units; They offer various tenure options, from full ownership, sectional title and rental options; They provide for integration of various land uses, residential, commercial, industrial, educational etc; They provide opportunities for partnerships- Local, Provincial and National Government, State Entities and Private Sector

City of Ekurhuleni Mega Projects A pipeline of +/-100 000 units has been identified in order to scale up the delivery of integrated human settlements in the Metro. All the land identified is strategically located closer to areas of opportunity These are further aligned to the Transformation, Modernisation and Re-Industrialisation (TMR) strategy of the Gauteng Province, that is; Pillar 2 – Transformation cluster DECISIVE SPATIAL TRANSFORMATION: Through public transport and new sustainable and integrated human settlements and new cities. Pillar 3 – Modernization cluster PLANNING OF NEW HUMAN SETTLEMENTS: Modernization of human settlements through green and high density settlements

Mega Projects Per Cluster : EKURHULENI Name of Cluster Projects Constituting the Cluster Total Yield Priority Intervention Areas Addressed (Council report for approval of Beneficiary communities to be submitted at a later stage) Land Acquisition Required Northern Development Cluster Clayville Ext 45, 71, Heartland; Esselen Park (Witfontein) Esselen Park Ext 3   Tembisa Ext 25 19 568 Madelakufa 1, 2, Freedom Square, Winnie Mandela Double Allocations, Vusimusi/Enhlanzeni, Tswelopelo 8 Waiting List Land Development Agreement currently being processed for the Clayville Ext 71 and Heartland Eastern Development Cluster John Dube 2  Brakpan Old Location Tsakane 22 Chief Luthuli 6 31 674 Gabon informal, Kwa-Thema (Ekuthuleni, Ext 5 and 7), Eden park 5 and Tsakane-Duduza approved beneficiaries and None, all properties are EMM owned Southern Development Cluster Leeuwpoort Germiston urban renewal housing programme (Including Social Housing, Balmoral 4&5 and Dukathole, Goodhope and Kutalo/ Robert Strachen Zwartkoppies Palmietfontein Rietspruit/Rietfontein, Palmridge 10 and 11 50 169 Somalia, Mpilisweni, Sakhile, Ramaphosa and Waiting List Rietspruit/Rietfontein Palm Ridge ext. 10 and 11

Clayville extension 45, 50, 71 & 76-80

Clayville 45, 0, 71, 76 - 80

Witfontein – Portions 63 & 39 of Witfontein 15-I.R. “Esselen Park” To commence in 17/18 Finalization of preplanning and Appointment of implementing partner – 16/17 Civil and housing designs and approval 17/18 Construction commences – 18/19 Engineering services and housing – 2023 Munic Social infrastructure 2023 Provincial social infrastructure - tbd Bulk infrastructure – TBC Internal services @ R90 000 P/U – R647 550m FLISP @ R 80 000 – R 115 200m Bonded (PRIVATE SECTOR) Social H.@ 350 P/U – R 504m BNG high density @ 180 p/u – R647, 1m TOTAL – 7 195 FLISP – 1440 - 20% BONDED – 720 - 10% SOCIAL HOUSING – 1 440 - 20% BNG – 3 595 - 50%

Esselenpark

ESSELENPARK CONCEPTUAL DEVELOPMENT FRAMEWORK 7 195 residential units planned including 325 single and 2000 high density subsidized units, 1749 affordable rental and 1191 Gap housing STATUS: Town planning and environmental applications submitted. Delay in approval due to significant number of objections

Tembisa Extension 25 Fully subsidized and social Housing TOTAL – 1571 Construction of top structure commence in 18/19 Finalization of preplanning and Appointment of implementing partner – 16/17 Civil and housing designs and approval 17/18 Construction commences – 18/19 Engineering services and housing – 2023 Municipal Social infrastructure – 2023 Provincial social infrastructure - tbd Bulk infrastructure – TBC Internal services @ R90 000 P/U – R141 390m FLISP @ R 80 000 – R 25 120 000 Bonded (PRIVATE SECTOR) Social H.@ 350 P/U – R 25 120 000 BNG high density @ 180 p/u – R141, 480,m TOTAL – 1571 SOCIAL HOUSING – 314 - 20% BNG – 786 - 80%

John Dube 2 (Duduza/Grootfontein) Construction of top structure commence in 18/19 PROJECT COMMENCEMENT Finalization of preplanning and Appointment of implementing partner – 16/17 Civil and housing designs and approval 17/18 Construction commences – 18/19 PROJECT COMPLETION Engineering services and housing – 2023 Municipal Social infrastructure – 2023 Provincial social infrastructure – tbd OVERALL BUDGET Bulk infrastructure – TBC Internal services @ R90 000 P/U – R1 106 550b FLISP @ R 80 000 – R 196 720m Bonded (PRIVATE SECTOR) Social H.@ 350 P/U – R 437 150m BNG high density @ 180 p/u – R 1 106 460b PROJECT YIELD TOTAL – 12 295 FLISP – 2459 - 20% BONDED – 1230 - 10% SOCIAL HOUSING – 1249 - 20% BNG – 6147 - 50%

Brakpan Old Location TOTAL - 7547 PROJECT COMMENCEMENT Construction of top structure commence in 18/19 PROJECT COMMENCEMENT Appointment of implementing partner – 16/17 Civil and housing designs and approval 16/17 Construction commences – 17/18 PROJECT COMPLETION Engineering services and housing – 2021 Municipal Social infrastructure – 2021 Provincial social infrastructure – tbd OVERALL BUDGET Bulk infrastructure – TBC Internal services @ R90 000 P/U – R679 230m FLISP @ R 80 000 – R 120m Bonded (PRIVATE SECTOR) Social H.@ 350 P/U – R 262 500m BNG high density @ 180 p/u – R818 460m TOTAL PROJECT YIELD TOTAL - 7547 FLISP – 1500 - 20% BONDED – 750 - 10% SOCIAL HOUSING – 750 - 10% BNG – 4547 - 60%

Brakpan Old Location Precinct plan

TSAKANE EXT. 22 BNG houses only, low to medium density Social amenities and light industrial land uses Bulk of the land is EMM owned.

CHIEF LUTHULI EXT.6 BNG houses - low to medium density FLISP, SOCIAL HOUSINGCRU Social amenities and commercial land uses NO – EMM OWNED

Leeuwpoort: North (Parkdene ext.7 & Reiger Park ext.19) & South

LEEUWPOORT NORTH AND SOUTH LEEUWPOORT - SOUTH PARKDENE EXT 7 REIGER PARK EXT. 19

9a) Palmietfontein portions 57 & 142 Construction of top structure commence in 18/19 PROJECT COMMENCEMENT Finalization of preplanning and Appointment of implementing partner – 16/17 Civil and housing designs and approval 17/18 Construction commences – 18/19 PROJECT COMPLETION Engineering services and housing – 2023 Municipal Social infrastructure – 2023 Provincial social infrastructure – tbd OVERALL BUDGET Bulk infrastructure – TBC Internal services @ R90 000 P/U – R410 220m FLISP @ R 80 000 – R 72 960m Bonded (PRIVATE SECTOR) Social H.@ 350 P/U – R 159 250m BNG high density @ 180 p/u – R410 220m TOTAL PROJECT YIELD TOTAL – 4558 FLISP – 912 - 20% BONDED – 455- 10% SOCIAL HOUSING – 912 - 20% BNG – 2279 - 50%

9a) Palmietfontein portions 57 & 142

9b) Rietspruit 152 I.R. & Rietfontein 153 I.R. 2016/17 2016/17 2020/2021

9c) Palm Ridge extensions 10 & 11 R190,170, 000 for acquisition of 2 113 serviced stands and 232,430,000 for top structure

9d) Zwaartkopjies Construction of top structure commence in 18/19 Bulk infrastructure – to be confirmed R630m internal services 385m for 3500 BNG at 110 000 p/u R490M for 1400 S/H7CRU @ 350 000 p/u 2023 2018

10a GERMISTON URBAN RENEWAL-BALMORAL 4 R457m for internal services and top structure

10bGERMISTON UR – KUTALO/STRACHAN/GOODHOPE R210m for 778 RDP walk ups ( R180 000 per unit for services and 180 000 per unit for top structure 2019

Germiston Urban Renewal Rental Units, Balmoral 4 and 5, Goodhope, Dukathole and Kutalo-Strachan Informal Settlements Upgrading CULTURAL PRECINCT PIROWVILLE (TRANSPORT) FIRESTATION (HOUSING) CIVIC GOODHOPE PRECINCT ROBERT STRACHAN PRECINCT DUKATHOLE PRECINCT

10cGERMISTON UR – RENTAL HOUSING

What is the Current Status of these Projects? We have identified all land parcels required for the roll out of Mega Projects; We have bean with the process of land acquisition for the identified land parcels; We have commenced with the Township Establishment and Environmental Authorisations; We have commenced with Services Designs for Mega Projects; We have commenced with appointments in certain projects; Have commenced with implementation in certain projects; Have commenced with collaboration with the Private Sector in private led projects

What is Expected from Investors? Take recognition of the Mega Human Settlements Roll Out Programme; Participation across the entire value chain of the programme roll out, from land availability, supply of goods and services and actual implementation; Respond to the Call for Proposals for projects not yet commenced with.

Projects at Implementation TSAKANE 22 CHIEF LUTHULI 6 CLAYVILLE 45,50,71,76-80 Housing Typologies Social housing (20%): 1,280 RDP: 000 Multi-storey RDP: 000 FLISP (20%): 1,280 Bonded (10%): 640 CRU: 000 BNG high density (50%): 3,200 BNG low density: 000 Total Project Yield 6,400 Housing Typologies Social housing (20%): 1,454 RDP: 000 Multi-storey RDP: 000 FLISP (20%): 1,455 Bonded (10%): 728 CRU: 000 BNG high density (50%): 3,637 BNG low density: 000 Total Project Yield 7,274 Housing Typologies Completed (45) RDP: 200 Completed (45) FLISP: 462 Under Construction (45) RDP: 501 multi-storey RDP Under Construction (Ext.45): 236 FLISP:000 Total Project Yield: 14 328 Total Multi-storey RDP: 5867 Total Res 1 RDP: 200 Total Multi-storey Rental: 2634 Total FLISP: 5627 Total Project Yield 14,328

Progress in Clayville Ext 45 Housing Units

GERMISTON SOUTH PROGRESS PICTURES

RFP PROJECTS BIRCHLEIGH NORTH EXT 4 BRAKPAN EXT 13 7,195 7,547 Housing Typologies Social housing (10%): 750   FLISP (20%): 1,500 Bonded (10%): 750 BNG high density (60%): 4,547 Total Project Yield 7,547 Housing Typologies Social housing (20%): 1,440   FLISP (20%): 1,440 Bonded (10%): 720 BNG high density (50%): 3,595 Total Project Yield 7,195

RFP PROJECTS MAYBERRY PARK EXT 2 VAN DYK PARK EXT 2 TEMBISA EXT 25 Housing Typologies Social housing (20%): 670   Multi-storey RDP: 778 FLISP (20%): 670 Bonded (10%): 335 BNG high density (50%): 1,675 Total Project Yield 3,350 Housing Typologies Social housing (20%): 314   BNG high density (80%): 1,257 Total Project Yield 1,571 Housing Typologies Social housing (20%): 912   FLISP (20%): 912 Bonded (10%): 455 BNG high density (50%): 2,279 Total Project Yield 3 687

DELIVERY MODEL OPTIONS Preferred Model Traditional delivery model no partnership Design Bid and Build Private service provider or contractor paid per milestone – no partnership No private finance leveraging Limited or no cross subsidization Design and Build Design Build Operate and Maintain Operate and maintain contracts Design Build Finance (DBF) Sourcing of other private Finance Design Build Finance Operate Maintain (DBFOM) Build Transfer Operate (BTO) Lease Build Operate (LBO) Build Own Operate Transfer (BOOT) Outright sale of land for private developments Own Build Operate (BOO) Full privatization not ideal for pro poor service delivery Buy Build operate (BBO) PUBLIC PRIVATE PARTNERSHIP DELIVERY MODEL OPTIONS Reduced public sector risk, speed of delivery, reduced upfront public sector funding requirement

Sustainable settlements are possible!