ADD NAME/TITLE HERE Rural Household Infrastructure Programme Presentation to: Human Settlements Portfolio Committee by Chief Director: Ms Tamie Mpotulo : 16 February 2011 2/24/2019 1

Presentation Outline Purpose Response to issues raised in previous presentation Background Grants Strategic Goal Procuring of PSP Progress Per Province Progress Per Municipality Overall Challenges of the Programme Risks Interventions 2/24/2019

Purpose To respond to issues raised by the Portfolio Committee during the presentation of 11 August 2010 To provide progress report on the implementation of the Rural Household Infrastructure Programme 2/24/2019

Response to issues raised Registration of the RHIP as an Extended Public Works Programme: - NDHS has engaged Public Works -For project to qualify as EPWP programme they have to under go a process Issue of office accommodation -Public Works Dept has advertised tenders to procure office over a period of 5 years 2/24/2019

Cont. Temporary offices in critical provinces e.g KZN have been secured mitigate use of hotels as offices. Budget for provision of sanitation and water to schools - A decision has been taken to centralize the school infrastructure budget to DBE. R8.2 billion has been allocated to this effect. DBE has indicated that they would need the support of the CD: National Sanitation in implementing the water and sanitation in needy schools 2/24/2019

Cont. Issue of budgeting for sanitation programme. Water and sanitation are inter-dependent, separation of water and sanitation programmes has resulted in the duplication of functions and a huge strain on the budget. There is no way DWA can perform its water service support to municipalities without referring to provision of sanitation as both water and sanitation are governed by the Water Services Act of 1997. 2/24/2019

Cont. -The same sanitation function performed by DWA is also performed by the Unit transferred to NDHS, this impacts on the budget -Critical technical engineering skills which deal with some aspects of sanitation are with DWA - Even if NDHS would procure technical skills for sanitation there is a huge cut in the sanitation budget. 2/24/2019

Progress Report on the Implementation of Rural Household Infrastructure Programme Background The current government has recognised the vital need of provision of basic services to the remote rural areas. Since 2007, the government has identified rural development as one of the country’s major priorities. Rural development has been incorporated in government outcomes which need to be prioritised by the various Ministries. 2/24/2019

Background (cont.) In response to the prioritization of rural development by government, National Treasury has established the Rural Household Infrastructure grant over the 2010 Medium Term Expenditure Framework (MTEF) period. This grant is gazetted as schedule 7 administered, managed and implemented by the National Department of Human Settlements (NDHS) for the provision of on-site sanitation and water facilities (where necessary) to rural communities through NSPU. A total of R1.2 billion has been allocated over the 2010 MTEF i.e. R100 million for 2010/11, R350 million for 2011/12 and R750 million for 2012/13. 2/24/2019

Strategic Goals Facilitates hands-on involvement of the beneficiaries into the implementation of the programme benefitting them, so as to instil a culture of ownership towards sustainable communities. Encourages the use of CBOs, NGOs and Public Entities to ensure the communities are trained on how to sustain and maintain the infrastructure beyond implementation. Seeks to alleviate poverty by implementing programmes through labour intensive methods. 2/24/2019

Procuring Services of PSPs Through open tender process NDHS has secured the services of two Service Providers i.e. the Mvula Trust and the Independent Development Trust (IDT). In the first financial year fifty two percent (52%) of the allocation has been awarded to the IDT (with a budget of R52 million) and Thirty six percent (36%) of the allocation has been awarded to The Mvula Trust (with a budget of R36 million) this financial year. Twelf percent was set aside for programme/ project management 2/24/2019

Progress Per Province R100,000 26 12043 4657 1203 Province Allocation: 2010/2011 (R’000) Number of Benefiting Municipalities Target Number of Toilets Pits Constructed As at 9 Feb 2011 Sanitation Facilities completed as at 9 Feb 2011 Eastern Cape R18,000 5 2568 1425 562 Free State R3,000 1 429 95 101 Limpopo R27,000 9 3600 1674 16 Kwa-Zulu Natal 7 3675 531 309 Mpumalanga R4,000 450 196 106 Northern Cape 400 North West R6,000 2 800 336 109 National Programme Management R12,000 Grand Total R100,000 26 12043 4657 1203 2/24/2019

Progress per Municipality Province: KwaZulu Natal WSA: Umkhanyakude DM Municipality: Hlabisa LM The municipality is dissatisfied with the manner in which the programme is implemented by Service Provider (IDT). It has just sent a request the Department to remove the Service Provider & its contractors WSA: Amajuba DM Municipalities: Dannhauser LM 155 sanitation units are complete. Some households are encountering hard rock conditions & are unable to dig pits as required by the programme. WSA: Sisonke DM Municipalities: Ingwe LM The tender for supplier of top structures closed on 4/01/2011. Digging of pits has commenced. 2/24/2019

KZN Cont. WSA: Uthungulu DM Municipality: Nkandla LM The IDT wants to use its own contractors to dig pits and that is challenged by local contractors and labourers. There is also a challenge of hard rocks so much that IDT has been given an alternative village to implement The municipality has given IDT a new village where it will construct sanitation units. Municipality: uMlalazi LM Construction of toilets has not commenced but IDT has given assure that it will complete work by 31 March 2011. WSA: ILembe DM Municipality: Ndwedwe LM The programme started late due to observation of tendering process. WSA: UThukela DM Municipality: Emnambithi LM Same as above 2/24/2019

Province-Limpopo WSA: Capricorn DM Municipalities: Aganang LM, Blouberg LM and Lepele-Nkumpi LM Digging of pits has commenced and 669 have been dug, 245 in Aganang LM, 168 in Blouberg LM and 256 in Lepele Nkumpi LM. WSA: Lephalale LM Municipality: Lephalale LM The digging of pits has not commenced. Disagreements on the appointment of contractors have impacted on progress. Lephalale LM insists that local labour should be used. WSA: Waterberg DM Municipality: Mokgalakwena LM 400 pits have been dug. IDT has appointed a contractor who has no capacity and the contractor handed the contract to another contractor. 2/24/2019

Limpopo Cont Mopani DM Municipalities: Greater Giyani, Greater Tzaneen and Greater Letaba No agreement in the manner of implementation of the programme. The DM feels it has capacity to implement the programme. IDT acknowledges and feels Department must take a decision. 2/24/2019

Limpopo Cont. Greater Sikhukhune DM Municipality: Elias Motsoaledi LM Work has commenced about 79 pits have been dug 2/24/2019

Province-North West WSA: Madibeng LM Municipalities: Madibeng LM 251 pits have been dug and rain has impeded progress. WSA: Moses Kotane LM Municipalities: Moses Kotane LM 139 pits have been dug and one unit has been completed as a specimen. 2/24/2019

Province Northern Cape WSA: Joe Morolong LM Municipalities: Joe Morolong LM 400 pits have been dug. 2/24/2019

Province –Eastern Cape WSA: Amathole DM Municipalities: Amahlathi LM 314 pits have been dug. Ground has some hard rock and beneficiaries are digging their own pits. Municipalities: Mbhashe LM 380 pits have been dug and 210 toilets have been completed and the signing of happy letters is awaited. Municipalities: Mnquma LM 416 pits have been dug. 2/24/2019

Province –Eastern Cape WSA: Chris Hani DM Municipalities: Lukhanji LM The construction of sanitation units has not commenced. Contractors have been just appointed. WSA: OR Tambo DM Municipalities: Mhlontlo LM 267 pits have been dug and 109 top structures erected. Ground has some hard rock. 2/24/2019

Province –Free State WSA: Ngwathe LM Municipalities: Ngwathe LM 70 pits have been dug. The number of units may be reduced due to travelling costs – long distances between farm households. 2/24/2019

Province-Mpumalanga WSA: Nkomazi LM Municipalities: Nkomazi LM Digging of 113 pits has been completed and 8 toilets are completed. There were initial delays in the appointment of the contractor. 2/24/2019

Overall Challenges Five benefiting municipalities are rejecting the appointment of certain Services Providers appointed as per approved government procurement procedures. They insist that local contractors and Labourers be used. One of the appointed Service Providers does not have sufficient experience in implementing sanitation projects at Municipal level. 2/24/2019

Overall Challenges (cont…) The programme commenced very late in October 2010 as opposed to the beginning of April 2010. During the months of December 2010 and January 2011 many projects were severely affected by excessive rainfall and flooding which have hampered construction on site in the beneficiary municipalities. Hard rock impeded penetration Inaccessibility of some of the benefiting households. 2/24/2019

Risks If no recovery plan put in place immediately there is a possibility of under expenditure during the 2010/2011 financial year. There is a possibility that only +/- 75% of the delivery target may be met within the 2010/2011 financial year. 2/24/2019

Interventions Where benefiting municipalities are resisting the nationally appointed Service Providers, the department will enter into funding agreements with the relevant Water Services Authority to implement the programme with the hands-on support provided by department. In cases where an appointed Service Provider has declared that it has no experience in the implementation and delivery of rural sanitation, the department should consider reviewing the scope of work in the coming financial years. Where there is hard rock, contractors must use machinery. 2/24/2019

THANK YOU 2/24/2019 28