NELSON MANDELA BAY METRO HUMAN SETTLEMENTS PROGRAMME 03 NOVEMBER 2015

OUTLINE Background Situational analysis Programme of action Progress on programme Critical success factors

1. BACKGROUND Underpinning the Intervention, key agreements achieved: Memorandum of Agreement (MOA) signed by political principals on 30 June 2015. Implementation Protocol (IP) signed by Accounting Officers on 2 July 2015. Council resolution in support of Programme on 17 September 2015.

2. SITUATIONAL ANALYSIS A number of challenges besetting the Metro were identified: Uncertainty and discontent around how the Roster System operates in allocation of work to contractors. Identified communities with heightened levels of dissatisfaction regarding service delivery – “hotspots” Work carried Metro not always in alignment with provincial funding approvals, resulting delays in payments to contractors. The need to enhance the beneficiary management system. Inadequate capacity to manage the human settlements programme.

3. PROGRAMME OF ACTION Key thrusts identified to drive intervention: Development of a Procurement Framework that is transparent and supportive of SMMEs. Training of SMMEs via incubation and mentoring programmes. Deployment of technical capacity through seconded staff to the metro, deployment of intervention support team as well as appointment of professional resource team (PRTs). Financial support of SMMEs to be provided by NURCHA. A project pipeline to facilitate the achievement of quick-wins with maximum impact whilst promoting the sustainable delivery of serviced sites, houses and social amenities over the MTSF period. Appointment of HDA as an implementing agent.

4. PROGRESS ON PROGRAMME 4.1 Procurement framework 4.2 Augmentation of capacity 4.3 Responses to hotspots 4.4 Performance on delivery: services 4.5 Performance on delivery: top structure 4.6 Beneficiary management 4.7 Title deeds

4.1 PROCUREMENT & CONTRACTOR SUPPORT Housing delivery has been impeded by the Roster system of appointing contractors, hence the need for a new procurement framework. The Procurement Framework – to be implemented by the HDA as Implementing Agent – was approved by the Steering Committee on 11 September 2015. The framework will ensure, among others: Equity Transparency Compliance with legislative requirements In operationalising Framework, call for registration issued on 23 October to draw up database of pre-approved of contractors As at 29 October 2015, 1000 prospective bidders collected forms. Bids close on 13th November 2015.

4.1 PROCUREMENT & CONTRACTOR SUPPORT Project Name Number of SMMES (63) Comments 1A. Joe Slovo West 20 SMMEs Procurement stage. Project starts end Nov ’15 1B. SOS / Veeplaas Infills 4 SMMEs SMMEs appointed. Site handover 05th Nov ‘15 1C. Sisulu Village 1 SMME Procurement stage. Project starts end Nov’15 1D. Chatty 1060 10 SMMEs Procurement stage. Project starts end Nov ‘15 2A. Walmer Q 5 SMMEs SMMEs identified, site establishment complete 5A. Chatty 491 (Military Vets) 14 SMMEs Procurement Stage. Project starts in Dec ‘15 3A. Missionvale 9 SMMEs Procurement processing on-going

4.2 AUGMENTATION OF CAPACITY The HDA has appointed team of PRTs as a means to augment capacity of the Agency. These include Civil Engineers, Town Planners, Project Managers and Environmentalists. This team will assist with project management and will be strictly remunerated against work done. Members appointed by NDHS to serve as part of Support Team and secondments made to the Metro. HDA and NHBRC to support Metro with project and quality management.

4.3 RESPONSES TO HOTSPOTS The Deputy Mayor’s Steering Committee on Walmer. Forum sits every two weeks and includes community representatives, public officials and the relevant politicians. Forum has proved effective in ensuring that matters raised by the community are attended to. MMC Forum sits weekly and chaired by MMC. MMC Forum seeks to deal will all immediate challenges on projects and those arising from the community, and it provides a platform of officials and councillors

4.3.1 WALMER Poor drainage Water leakage

4.3.1 WALMER (cont.) Quick wins achieved: A contractor has been appointed to commence construction of 196 units in Walmer Area Q. 5 sub-contractors from within Walmer to participate An application for relaxation of conditions has been submitted to the Department of Environmental Affairs (to allow relocation of shacks to the reception area i.e. ERF 1948). Quick wins achieved: Establishment of an EPHP programme for the benefit of the community. Electrification programme 99% complete Cleaning of open public spaces. Rehabilitation of access roads. Task team established and meets fortnightly and feedback given to community. Improved community confidence in the performance of the metro

4.3.2 KHAYAMNANDI (184) Funding obtained from the “Bucket Eradication” programme (via Provincial Treasury) was used to construct 800 slabs. Coega Development Co-operation was appointed as Implementing Agent. R70 Million has been secured to build the top structures. HDA to be the implementing agent. Appointed team of PRTs: Establishing actual bulk and site reticulation capacity is underway Confirming structural integrity of the existing slabs for top structure construction.

4.3.3 MISSIONVALE In-situ upgrading project comprising of 2498 sites & houses Challenges experienced with designs and the implementation of the project. Housing construction was done ahead of servicing (water & sewer) in phases 1,3,4 &5) Phase 1 & 2 have now been fully serviced Phase 3 is over 90% serviced. Ensure completion of servicing of Phases 4 & 5 by late 2015/early 2016. Attend to water leakages that are causing water logging in some areas.

4.4 DELIVERY PERFORMANCE: SERVICING OF SITES Serviced Sites completed: 10 880 4 852 erven (NMBM) 6 028 Erven (HDA) Funding for the Integrated Residential Development Programme for 2015/2016 allows only for the construction of 2 778 top structures, excluding rectification.

4.4 USDG EXPENDITURE AS AT 30 SEPTEMBER 2015 SERVICE BUDGET Q1 2015/16 ACTUAL 2015/16 ACTUAL Q1 % Water Services – Bulks & Supply 181 947 739 30 705 614 17% Sanitation – Bulks 301 872 000 52 241 716 Electricity & Energy - Electrification 18 500 000 4 205 249 23% Roads, Stormwater & Transportation 91 200 000 10 096 217 11% Public Health – Public Open Spaces Development 2 280 000 78 477 3% Human Settlements – Reticulation Services 199 622 915 40 991 472 21% Bucket Eradication 51 317 346 7 215 512 14% TOTAL 846 480 000 145 534 258

4.4 USDG: SYNOPSIS AS AT 30 SEPTEMBER 2015 Expenditure % Spend of Allocation Quarter 1 R 145 543 258 17% Transfered % Spend of Transfered Funds R267 070 000 R145 543 258 54% Year-On-Year Q1 Comparison 2013/14 2014/15 2015/16 10%

4.4 NMBM USDG and HSDG: 1st QUARTER ACHIEVEMENTS HUMAN SETTLEMENTS KEY PERFORMANCE INDICATOR(S) QUARTER 1 TARGET ACTUAL ANNUAL TARGET Number of state subsidised housing units provided 200 240 1 506 Number of erven provided with permanent water and sanitation services 500 520 3 000 Number of settlements upgraded from informal to formal 1 (Kwanobuhle Area 11 - Phase 1) 4 Number of households relocated from stressed informal settlements and other servitudes to Greenfield development areas 150 195 1200

4.5 TOP STRUCTURE DELIVERABLES 2015/16 BUSINESS PLAN DEVELOPER INSTRUMENTS UNITS BUDGET NMBM Integrated Residential Development Programme 1506 192 639 988 Rectification 665 39 595 001 HDA   1222 163 744 647 PDoHS 23 3 759 605 MDT Internal Services 1928 50 957 966 TOTAL (top structures excl. internal services & rectification) 2778 450 697 207

4.6 BENEFICIARY MANAGEMENT Discussions are underway to effect reforms into the beneficiary management system, entailing: Training to manage the national housing needs register and the housing subsidy system; Review of housing demand and allocation policy; Beneficiary & consumer education programme; and Social facilitation.

4.7 TITLE DEEDS Identified Quick Wins: Complete verificaton and develop a programme to handover; Develop and impliment a communication strategy around the programme; and Prioritise hotspots in terms of Title Deeds handover.

5. CRITICAL SUCCESS FACTORS Sustained collaboration between the organs and spheres of government. Confirmation of additional/basket of funding mechanisms for up scaling. Directed communication to broader community within the Metro regarding elements of the Programme. Timeous resolution of outstanding commitments of NMBM’s Revolving Fund. Established systems and procedures Financial Management Beneficiary Management Operations Managements (Inspections/Quality Control/OHS)

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