Advancing the Upgrading of Informal Settlements in Buffalo City Metropolitan Municipality August 2018 CS CONSULTING

Background to presentation CS Consulting appointed by NDoHS and NUSP and developed for the BCMM: Informal settlement upgrading policy and strategy, & 32 upgrading plans Project completed in early 2015. On 25/11/2015 Council approved the Policy & Strategy and the 32 upgrading plans CS Consulting approached by community to find out when upgrading would start  we sent them to Municipality  community not getting clear answers  they came back to us for advise CS Consulting therefore making the recommendations found in this presentation for how to advance implementation

Round 1 informal settlements Mdantsane cluster - north   Barcelona 37 Ladies Park 41 Lonwabo 31 Mbekweni 53 Holomisa 120 Mdantsane- Masibambane 35 Mdantsane- Phola Park 150 Zola Park 1,2 and 3 97 Mahlangu 214 Mdantsane- Stofile Village 75 Mdantsane cluster - south Andrew Mlangeni 89 Mdantsane- Khaylethu Mdantsane-Nkomponi 172 Mdantsane- Dacawa 253 Winnie 164 Mdantsane- Daluxolo 1 111 Mdantsane-Slovo Park 280 Mdantsane-Mark Makalima 40 Scenery park cluster   Scenery Park – Phola Park 209 Scenery Park - Airport 39 Scenery Park - Eskom 79 Scenery Park - Ekuphumleni 98 Scenery Park - Manto 96 Reeston- Jevon 115 Amalinda/ Cambridge cluster Amalinda Forest 1184 Cambridge Location 1341 KWT cluster Bhisho-Tyutyu 465 Dimbaza South ext. 3-Phola Park 35 Zwelitsha- Ndlovini / Crossroads 65 Duncan Village cluster Eluxolweni 701 Duncan Village- Gesini 185 Duncan Village- New Rest 250

Amalinda Forest

Eluxoloweni

Ndlovini

Barcelona

Daluxolo

Jevon

Community participation Mdantsane North A

Example of plans 1. Existing information Upgrading example Three slides Example map 1 – existing Example map 2 – interventions Example map 3 – future upgrading option/ path 1. Existing information

Example of plans 3. Upgrading Options Upgrading example Three slides Example map 1 – existing Example map 2 – interventions Example map 3 – future upgrading option/ path 3. Upgrading Options

Example of plans 2. Spatial Interventions Upgrading example Three slides Example map 1 – existing Example map 2 – interventions Example map 3 – future upgrading option/ path 2. Spatial Interventions

Budget per Settlement BUDGET PER SETTLEMENT Settlement Toilet (R’s) Water (R’s) Path (R’s) Elect (R’s) Play park (R’s) Total (R’s) Scenery Park Cluster R 2,023,297.05 R 924,880.73 R 2,433,804.72 R 5,724,000.00 R400,000.00 11,505,982,50 Amalinda/ Cambridge Cluster R 3,853,642.96 R 1,553,044.77 R 7,959,118.80 R 22,725,000.00 R300,000.00 36,390,806.53 KWT Cluster R 547,438.86 R 370,618.90 R 5,555,425.92 R 5,085,000.00 11,858,483,68 Mdantsane Cluster South A R 1,667,267.19 R 791,579.97 R 2,129,580.98 R 6,417,000.00 11,305,428.14 Mdantsane Cluster South B R 793,044.87 R 419,648.77 R 2,117,913.96 R 4,914,000.00 R200,000.00 8,444,607.60 Mdantsane Cluster North A R 681,494.73 R 291,058.29 R 1,326,995.86 R 2,331,000.00 R100,000.00 4,730,548,88 Mdantsane Cluster North B R 729,517.75 R 460,695.09 R 1,028,777.75 R 5,346,000.00 7,764,990.59 Duncan Village Cluster R 912,048.08 R 420,830.93 R 950,194.56 R 10,224,000.00 12,807,073.57  TOTAL   R 104,807,921.40

Upgrading approaches per settlement No. units stay/ shift 2 step move Mdantsane south A   Mdantsane- Khaylethu 150 X Mdantsane-Nkomponi 172 Mdantsane- Daluxolo 1 111 x Mdantsane-Slovo Park 280 Mdantsane south B Andrew Mlangeni 89 Mdantsane- Dacawa 253 Winnie 164 Mda -Mark Makalima 40 Mdansane north A Barcelona 37 Ladies Park 41 Lonwabo 31 Mbekweni 53 Zola Park 1,2 and 3 97 Mdantsane north B Holomisa 120 Md- Masibambane 35 Mdantsane- Phola Park Mahlangu 214 Mdantsane- Stofile Village 75 6974 11 12 15 Settlement No. units stay/ shift 2 step move Scenery Park   SP – Phola Park 209 X Scenery Park - Airport 39 Scenery Park - Eskom 79 SP - Ekuphumleni 98 Scenery Park - Manto 96 Reeston- Jevon 115 Duncan Village Amalinda Forest 1184 Cambridge Location 1341 KWT Bhisho-Tyutyu 465 Dimbaza -Phola Park 35 Zwelitsha- Ndlovini 65 Duncan Village  Eluxolweni 701 Duncan Village- Gesini 185 x DV- New Rest 250

Informal Settlements- Current situation The number of informal dwellings in BCMM has increased from 49 000 in 2011 to 62 000 in 2016 or at a rate of 2 600 units per annum. Informal dwellings now make up about 25% of the total number of households in the Metro Source: Community Survey 2016

Growth of informal settlements over time: The case of Duncan Village: 1989 - 2013

Growth of informal settlements over time: Duncan Village: 1989 - 2013

Shacks spring up – with no control By MAMELA GOWA on May 3, 2016 http://www.dispatchlive.co.za/news/shacks-spring-up-with-no-control/ GROWING THREAT: Informal settlements continue to sprawl around BCM, causing concern over illegal electricity connections, health dangers due to no services, and more. Picture: SIBONGILE NGALWA

Housing demand and supply Number of years it would take for the BCMM to address the housing backlog and anticipated future 20 year housing demand at current RDP housing delivery rates: 50 years (from Upgrading informal Settlement Strategy 2015 based on statistics available at the time) Up to 100 years (Based on updated statistics) See next page for statistics used

Statistics used Original estimate Updated estimate Housing backlog = 55,500 (40,500 shacks + 15,000 backyard shacks) Housing backlog = 57,000 households (BCMM BEPP 2015/6 ) Future 20 year housing need Future housing need = 14,500 households Future 20 year housing need = 69,000 households (80% of future projected 20 year growth assuming continuation of population growth rates ) Total backlog and future need = 71,000 households Total backlog and future need = 126,000 households Average number units built per year = 1,400 units (average 2007/8 to 2011/12) Average number units built per year = 1,244 (average 2007/8 to 2014/15) Number years to address backlog and future need = about 50 years Number years to address backlog and future need = about 100 years

Outcome 8 MTSF 2015-2019 By 2019 provide at least 750 000 households in well located informal settlements with tenure, basic services and access to amenities. Provision of tenure and services in well located informal settlements seen as first step in an incremental process to transform informal settlements into sustainable human settlements. The 6,974 households in Round 1 of the 32 informal settlements form part of government’s commitments to the target of 750 000 households MTSF = Medium Term Strategic Framework

Urban Settlements Development Grant The USDG provides infrastructure for municipal services and the upgrading of informal settlements in the eight metropolitan municipalities. Outputs include but not limited to: Increase in provision of basic services to individual poor households, specifically in informal settlements and back yards, including water, sanitation, solid waste, electricity, refuse removal, roads and access to transport Increase in number of serviced sites in informal settlements upgrading and/or in-situ projects and green-fields and/or infill developments

Comments on Urban Settlement Development Grant Supplements the capital revenues of Metros in order to support the national human settlements development programme, focusing on poor households. (Division of Revenue Bill 2016) A minimum of 50 per cent of the USDG allocation must be spent on the provision of individual basic services to households living in informal settlements either through in-situ upgrades, relocation or integrated development projects (p. 193) Up to three per cent of the USDG may be used to fund municipal capacity in the built environment. (p 104)

UISP FUNDING The key instrument for delivery against the target is the Upgrading Informal Settlements Programme (UISP). Part 3 of the National Housing Code (2007) sets out the main objectives of the UISP as follows:  Facilitate structured in-situ upgrading of informal settlements as opposed to relocation Recognise and formalise the tenure rights of residents within informal settlements Provide affordable and sustainable basic municipal engineering infrastructure, that allows for scaling up in the future Address social and economic exclusion by focusing on community empowerment and the promotion of social and economic integration. Build social capital through participative processes and address broader social needs of communities.

Informal settlement upgrading programme: Grant amounts available with effect from 1 April 2014 Phase 1   Survey, registration, participation, facilitation, dispute resolution etc. 3% of project cost Geotechnical investigation R 114.06 Land acquisition R 3 247.66 Pre-Planning R 978.64 Interim engineering services R 3 680.69 Phase 2 and 3 Detailed town planning R 513.22 land surveying and pegging R 380.17 Contour survey R 76.04 land survey examination fee R 117.85 Civil engineer's fee R 1 140.50 Site supervision fees R 288.90 permanent engineering services provision: B grade level- guideline amount R 23 513.38 Project Management 8% of total cost Relocation grants Transportations and loading costs for people and household effects R 487.15 Social service support including support for the registration of social R 368.07 benefits, school registration and other welfare support Relocation food support to households R 606.24 Maximum cost per household R 1 461.46

Slovo Park Informal Settlement Johannesburg High Court Judgement 22 March 2016: Case no. 02752/2014 The judgment establishes that the UISP, a crucial, pro-poor national housing policy, is binding on all Municipalities: It shows that it is unlawful and unreasonable for any Municipality to ignore the programme. It makes it clear than upgrading should be preferred to relocation. It confirms that the UISP is the starting point when looking at housing developments for the residents of informal settlements. http://www.dailymaverick.co.za/article/2016-04-11-upgrading- informal-settlements-the-importance-of-the-slovo-park- judgment/#.WEk4wbJ97IU

Upgrading policy and strategy Three pronged approach A. Upgrade informal settlements B. Develop serviced sites C. Control land invasion

Status of three prongs Upgrading Not implementing in-situ upgrading plans; focusing on relocation or ‘two-step’ to RDP houses Develop serviced sites Not fund raising for development of serviced sites; focusing on RDP houses Control invasion Existing land management policy not being implemented

A: PRONG 1: Upgrade informal settlements Key activities Get more training on upgrading informal settlements Report back to community Allocate/ obtain funding for and implement upgrading of 32 informal settlements Identify and plan for round 2 informal settlements

Upgrading paths

Comments on upgrading of informal settlements Relocation of informal settlement residents to RDP houses is not Upgrading of Informal Settlements - it is an IRDP project. Township establishment does not have to happen when upgrading to Stage 2 of UISP - township establishment happens in Stage 3. Stage 1: Interim planning Stage 2: Basic services & tenure recognition Stage 3: Detailed planning, full services & title deeds Stage 4: Top structures (use other grants – eg. ePHP)

Summary of funding approach All round 1 informal settlements (no matter which path they on – stay, 2 step or move) get basic services (using USDG funds) and basic tenure recognition (using CWP funds) For stay/ shift - UISP stage 1&2 to do planning & put in basic services (now); & stage 3&4 build services and houses for qualifiers (later) For 2 step – USDG to get temporary land; EHP to get temporary housing’; UISP stage 1&2 to put in basic services (now); & stage 3&4 to put in services and build houses for qualifiers (later) For Move - USDG to get land and bulk services; IRDP part A for internal services (now); & part B for top structure (later)

Implementation Who applies to whom Housing Directorate applies to Provincial Human Settlements for UISP stage 1&2 grant For what activities Detailed planning, township establishment, servicing At what budget +/- R36,000 per site To be used where? Informal settlements on stay/shift path

Examples of services Pre payment electricity Refuse collection Communal toilet Basic path Public lights Basic road Pedestrian bridge

Funding immediate: Engineering services Who applies to whom For what At what budget To be used where Engineering Dir.  USDG Initial basic services As per budget table All round 1 settlements Housing Dir.  Province for SEFG Halls, play areas As per budget Identified settlements Housing Dir.  Province for UISP (stage 1&2) Professional fees and basic services +R36,000/ site (for stage 1&2) Settlements on stay/shift path Electricity Dept.  INEP Pre- paid electricity per house +/- R9000-00

Funding immediate: Capacity, planning, land, etc Who applies to whom For what At what budget To be used where Planning Dir  NUSP Training in upgrading TBD For Councillors and officials in BCMM Housing Dir.  CWP Community workers to do shack counts At rate determined by CWP All round 1 informal settlements Land Admin  USDG Land purchase As negotiated per land parcel Land as determined by planning dept for 1) stay/shift & 2) move settlements Housing Dir.  (National Treasury) Capacity building or (Province) accreditation Upgrading informal settlement manager Integrated national electrification Programme (Municipal) grant To manage all upgrading initiatives Planning Dir.  NUSP Planning for round 2 upgrading About R100,000/ settlement For planning of round 2 settlements

Funding future Who applies to whom For what At what budget To be used where Housing Dir.  Province for UISP (stage 2&3) Full services and top structure R110,000/site (plus remainder of stage 2) Households in stay/shift settlements that qualify Housing Dir.  Province EHP Temporary services and accommodation As determined by EHP In TRA’s for settlements on 2 step path Housing Dir.  Province for IRDP Part A: planning and services Part B: top structures Part A: R43,000/site Part B: R110,000/site New land for settlements on move path

PRONG 2: Develop serviced sites Key Activities Develop programme to identify land for where to develop (semi) serviced sites (or MLS projects) Obtain funds for and implement pilot projects

C: PRONG 3: Control unauthorised land occupation Key activities Implement existing land management strategy (start with establishing rapid response team) Review and update the land management strategy

Implementation coordination The Human Settlements department (led by the upgrading of informal settlements unit) will take the lead in driving the upgrading of informal settlements programme within the Metro as a whole. Each department will also designate an incremental settlement champion to drive and coordinate any upgrading activities within that department. BCMM Upgrading Informal Settlement Policy and Strategy, p51

Community management Informal settlement committee x 32 Informal settlement cluster committee (& engages with relevant ward committees) = 2 people per settlement Round 1 informal settlement steering committee = people drawn from 6 clusters + municipal coordinating committee

Summary Top 10 priority next steps (a) Spatial Planning & Development Directorate to apply to NUSP to train Councillors and officials on IS upgrading Spatial Planning & Development Directorate to report back to cluster committees Housing Directorate to either 1) use USDG, or 2) apply to accreditation grant from Province for funds for Informal Settlement Upgrading Manager Sector Depts apply for funds - as outlined in sections above (mainly from USDG) - to install basic services Housing Directorate to apply for UISP funds stage 1&2 for stay/shift & 2-step settlements

Summary Top 10 priority next steps (b) Spatial Planning & Development Directorate (Land Admin) to identify and acquire land (using USDG funds) for 2-step & move settlements Housing Directorate to apply for CWP to conduct socio- economic survey of round 1 (and maybe other) informal settlements) and develop recognition of occupation strategy Spatial Planning & Development Directorate to apply to NUSP to plan ‘Round 2’ settlements Spatial Planning & Development Directorate to develop feasibility plans for MLS pilot projects [to address prong 2] Housing Directorate to implement (and work to modify) land management strategy [to address prong 3]

Summary of the Summary Implement upgrading plans for round 1 informal settlements Continue to plan for the upgrading of further round 2 informal settlements Develop and allocate people to new planned (semi) serviced sites

Change the narrative ‘government gives people a RDP house’ Change the story we tell ourselves from: ‘government gives people a RDP house’ to a new story where : ‘government gives people a start and supports people to help themselves’ Start = basic services and tenure recognition Support = development support and upgrading

CS CONSULTING Thanks Craig Sam 043 7211850 craig@csamconsulting.co.za Ronald Eglin 043 7433830 ronald@afesis.org.za CS CONSULTING