NELSON MANDELA BAY METROPOLITAN MUNICIPALITY PRESENTATION TO THE NATIONAL PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS PARLIAMENT CAPE TOWN 8 December 2011

BACKGROUND The National Portfolio Committee on Human Settlements visited the Nelson Mandela Bay Municipality on oversight business on 29 November 2011 A number of issues were raised for the Municipality to respond on including but not limited to the following and subsequently the Municipality received an invite to make a presentation to the Portfolio Committee on the following : 1 .Implementation of USDG 2. Expenditure report on the USDG,monthly cash flows 3. IGR Protocol on USDG 4. Fischers Corner informal settlement 5. Grogro informal settlement 6. Land Audit and 7. Nceba Faku Village

USDG HISTORY From its introduction the USDG was intended to address and to give effect to integration and sustainability components of Human Settlements and to this effect the funding, as conceived by NMBM was intended to cover the following capital projects:- Land Planning Provision of water and sanitation services Provision of adequate housing Electricity Roads & Stormwater

Urban Settlements Development Grant Conditions per DoRA Agreed Multi year performance targets Prioritise Residential Infrastructure for: Water Sanitation Refuse Removal Street Lighting Solid Waste Connector & Bulk Infrastructure Roads supporting Human Settlements

Urban Settlements Development Grant CONDITIONS per DoRA (cont’d) Draft Performance Framework submission by 30 March 2011, Final approval by 7 June 2011 BEPP submission ratified by Council Grant may be used for: Acquisition, Development or re-Development of Land Basic Infrastructure Services for Poor Households incl Bulk Services Upgrading of Informal Settlements

Urban Settlements Development Grant 2011/12 Allocation Methodology Total Allocation: R502 million MIG & MIG-Cities:R247 million contractually committed to projects based on MIG & MIG-Cities framework 16 March 2011: Communication to seek clarity on definition and utilization of USDG. National Treasury agreed with our thinking and no response from National Human Settlements

USDG allocation methodology: Change the current township to sustainable human settlements Upgrade bulk services to accommodate demand due to housing delivery. Provide tarred roads to attract economic activity and integration Acquisition of land for housing delivery Provide reticulation services for housing delivery Current delivery capacity of implementing Directorates

USDG PERFORMANCE COMPARED TO BUDGET From 1 July to 30 November 2011 Directorate Allocation In Millions Spending % Roads & Stormwater R173,0 R40,8 24% Electricity & Energy R 30,0 R 4,8 16% Water Services R 64,7 R13,9 21% Sanitation Services R107,0 R14,9 14% Human Settlements R105,0 R17,7 17% Public Health R20,5 R 5,0 TOTAL R502,0 R97,1 19%

USDG PERFORMANCE COMPARED TO CASH FLOW From 1 July to 30 November 2011 DIRECORATE Cash Flow In Millions Spending % Roads & Stormwater R62,2 R40,8 66% Electricity & Energy R 4,6 R 4,8 103% Water Services R17,8 R13,9 78% Sanitation Services R14,5 R14,9 Human Settlements R17,5 R17,7 101% Public Health R 7,7 R 5,0 65% TOTAL R124,3 R97,1

ACTION PLAN: Fast tracking contractors appointments Mitigate the time constraints in the Compliance with National Legislation affecting SCM which is not always conducive in fast tracking contractors appointments Fast tracking EIA approvals

Specific Matters raised by National Department of Human Settlements:

Grogro Informal Settlement The land is privately owned. Residents have been staying there since 1965 Initially there 30 households but the settlement has since grown to about 300 households. Residents residing in the area for years without any form of services. They do not have water provision. The policy of the Metro is that it does not provide services on private land.

Grogro Informal Settlement (cont’d) The fact that the government was at least providing scholar transport was positive. The land has been leased to various lessees over time The Deputy Executive Mayor has initiated a process to acquire the land and the land-owner has shown willingness to dispense with the land Process of acquiring the land in question has started with technical comments being sought and a final report to Council will be submitted early next year. HDA to be involved as it is its mandate to acquire land on behalf of municipalities.

Fitches Corner About 80 households have been staying on an undevelopable cemetery site since 1987 They form part of the7 year housing Plan They are planned for relocation to St Albans RoD conditions for St Albans are restrictive leaving no land for housing development. Biodiversity and wetland issues. DEDEAT is not prepared to change the conditions and the RoD and has since lapsed. The following services are, however, available in Fitches Corner ; water supply, refuse collection and traditional pit sanitation

Fitches Corner (cont) They are now being planned for relocation to Rocklands, Kuyga or Chatty Rocklands and Kuyga will require planning and environmental approvals with a lead time of about 12 – 15 months Chatty is ready for relocations however there is a political intervention that will unlock community resistance in the area.

Nceba Faku Village (Chatty 756) This is a rectification project which was approved by the Province. On the bases of assessment and further technical advise, the minor rectification works were changed to a demolish and total rebuilt. The construction works are thus awaiting additional funding approval from the Province

LAND AUDIT GRAP requires all immovable assets to be identified & valued- not only vacant land but buildings as well. As per audit 25 000 land parcels have been identified Land Audit incorporated into LAMACS (Land Asset Management System) Accurate data base – all municipal land Identifies transactions – leases, sales etc Leases linked to billing system All land for the 7 year housing plan secured There are only 7 land parcels greater than a thousand squares but smaller than a hectare in the inner city. To this effect we will rely on the assistance of HDA

ACTION PLAN No Challenge Intervention Capacity Responsibility Timeline 1 EIA restricted areas Acquiring alternative suitable land Competency rests with HDA HDA   DEDEA 2 Traditional pit toilets in Fisches corner Provision of a bucket system Capacity is available Water and Sanitation Feb-12 3 Households staying in undiginified areas Relocation of Grogro and Fisches Corner informal settlements to Chatty Portfolio Councillor/Mayor/ Acting ED Human Settlements Jan-12

CONCLUSION Capacity to spend the Capital Budget does exist Under performance is addressed by various forums and committees, internally and politically, to ensure delivery in terms of Budget At these sittings spending is measured against Cash Flow targets which is reconciled to Budgets

THANK YOU