DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING NORTH WEST PRESENTATION TO THE POTFOLIO COMMITTEE ON HOUSING 09 MAY 2006 HOD-M.I.MOTALA

STRUCTURE OF PRESENTATION STRUCTURE OF PRESENTATION 1. BACKGROUND 2 STRUCTURE OF PRESENTATION STRUCTURE OF PRESENTATION 1. BACKGROUND 2. EXPENDITURE 3. DELIVERY STATISTICS 4. REASONS FOR UNDEREXPENDITURE 5. INTERVENTIONS 6. STATUS OF PROJECTS 7. BNG 8. OVERSIGHT , MONITORING AND EVALUATION from here to Proper Human settlements

BACKGROUND ON HOUSING DELIVERY IN THE NORTH WEST PROVINCE No. of Projects Urban / Rural Composition/Projects Houses completed or under Construction No. of People Benefiting Approved no. of Subsidies Gender: Female headed households/Subsidies Properties transferred 258 68.67%(Urban) , 31..33% (Rural) 88837 169094 151827 81846 (48%) 56155 2. PROVINCIAL BACKLOGS Based on Census 2001 and Current Subsidy of R 31 929.00

EXPENDITURE 01/02 TO 05/06 01/02 R265M R259M 97,7% 02/03 R324M R322M FINANCIAL YEAR ALLOCATION EXPENDITURE PERCENTAGE 01/02 R265M R259M 97,7% 02/03 R324M R322M 99,4% 03/04 R348M R262M 75,2% 04/05 R506M R372M 73,5% 05/06 R609 795M includes rollover R607 299, 232.60M 99.59%

DELIVERY STATISTICS 01/02 02/03 03/04 04/05 05/06 06/07 07/08 13885 23784 10484 10037 14808 18000 20000

DELIVERY STATS.(cont……) The average delivery per year is 12 000 completed houses. For the 2005/2006 target of 22 000, the department included a figure of 5 000 to deal with the backlog owing to the drop in delivery from the previous financial years a further 5000 to deal with the normal growth pattern in terms of housing need.

REASONS FOR UNDEREXPENDITURE lack of implementation capacity at Municipal level departmental decision 2002 management of consultants hands off approach of department lack of management information non compliance with contractual conditions blocked projects forward planning delays in processing claims(Province/Municipalities)

INTERVENTIONS Compliance with contractual requirements and suspensive conditions Enforcement of MPRs Monthly meetings with municipalities by provincial project teams Creation of departmental project teams per district Monthly meetings with Municipal managers and project managers on a district basis Analysis of blocked projects Commitment beyond MTEF allocation

INTERVENTIONS(cont…..) Project agreements cancelled with various municipalities: Cancellation and transfer to performing turnkey developers HMS developed to interface with HSS (Project Module) Appointment of turnkey developers by department

STATUS OF PROJECTS Planning 35 Under Construction 111 Completed 62 Blocked 30 Total 258 (Total Contractual commitments: R 2,1 Billion over MTEF)

BREAKING NEW GROUND Two pilot projects in NW Klerksdorp - Informal Upgrading 5 000 units (997 foundations in Kanana & 701 houses completed, 700 foundations in Jouberton & 318 houses completed) Rustenburg – Integrated Human Settlement 5 000 units (Installation of services)

Other Key Elements of BNG Socio - Economic Amenities Farm Worker Housing Accreditation of Municipalities Job creation strategies Emerging contractor support To be provided in pilot projects (existing projects to be identified) Finalization of policy required as well as socio economic audit Ongoing as per policy Implementation of EPWP mandatory in respect of new projects Construction SETA and Dept of Labour donated R 10m for the programme and NHBRC’s programme under implementation.

Other Key Elements of BNG HSS database cleanup Rectification of defective houses Ongoing Financial module is 95% correct Subsidy Admin Module is 87% correct Project Module is 55% correct Budget Module has not been implemented HMS developed to interface with HSS (Project Module) Audit being conducted to implement rectification of houses built both pre-and post 1994

Implementation of the BNG / Capacity: Generally Challenge Land Inflation overtaken cost Non performing developers/municipalities Non and under performing contractors Lower subsidy bands Bulk services Progress Land Audits underway New policy Cancellation and transfer to performing turnkey developers Policy limitation Coordination with MIG

Implementation of the BNG / Capacity at Municipalities Challenges Abnormal delays in tender process at municipal level To go out on tender To evaluate tenderers To appoint contractors Appointing of contractors/consultants without Proven track record Capacity to deliver Progress Cancellation and transfer to performing turnkey developer 28 Project agreements cancelled

Implementation of the BNG / Capacity: Post housing project completion responsibilities Challenges Maintenance of roads/services Internal roads/services Enforcement of municipal by-laws Illegal structures Illegal occupants Illegal use of houses Enforcement of effective billing systems Nurturing a culture of payment for services

Oversight / Monitoring and Evaluation Monthly meetings with Municipal managers and project managers on a district basis Creation of departmental project teams per district Monthly meetings with municipalities by provincial project teams Enforcement of Monthly Progress Reports (MPR)

I THANK YOU