MS M. ROSHO HONOURABLE MEC FOR DLG&HS PRESENTATION OF THE 3RD QUARTER PERFORMANCE REPORT TO THE PORTFOLIO COMMITTEE MS M. ROSHO HONOURABLE MEC FOR DLG&HS 12 MARCH 2019

TABLE OF CONTENTS Purpose of the Presentation Background Delivery per month/quarter Delivery per municipality Mining Towns Title Deeds HDA Blocked projects & remedial work Key projects with high capacity contractors Key performance areas for intervention Status of Key Projects Work in Progress Intervention and Progress to date

PURPOSE OF THE PRESENTATION The intention of this presentation is to brief the Portfolio Committee on the following: Progress made by the province in meeting it’s financial and non-financial targets for 2018/19 financial year. Intervention for Section 100 (1)(a) with specific key performance areas

BACKGROUND SECTION 100(1)(A) INTERVENTIONS The 7 Key Performance Areas of intervention are as follows: Preparation of 2019/20 business plan Multi-year human settlements development plan Appoint suitably qualified contractors Performance of appointed contractors – contract management Management of programmes and project performance Beneficiary management and Outreach Community Programmes Reposition of the department to become fit for purpose

BACKGROUND KEY CHALLENGES IDENTIFIED The challenges identified that has affected the departmental performance are as follows: Poor performance by contractors and lack of capacity Slow responsiveness to Subsidy Administration Receipt of beneficiary lists from municipalities for new projects is slow Some beneficiaries reflect as benefitted on HSS but on the ground not Poor contract management Community unrests Lack of bulk infrastructure in municipalities Dolomitic conditions of the province restricts developmental areas Appointment of emerging contractors without providing technical support Delays in procurement processes

BACKGROUND KEY MEASURES TO IMPROVE PERFORMANCE As part of the recovery process the following has been done: Department has appointed high capacity contractors and are already improving progress One on One process done to get commitment from those contractors Contract reviews done regularly to determine performance of contractors: Non performers are put to terms with strict monitoring measures Performing contractors are encouraged to accelerate performance Compressed delivery schedule entered into with appointed contractors Effective payment system Fast tracking the implementation of National Housing Needs Register Working with DHS to clean up HSS for approved beneficiaries who never benefitted Currently working with NHFC and DHS on an incubation plan to assist emerging contractors DHS has through intervention participated in all aspects on procurement process to assist where there are bottlenecks

BACKGROUND FINANCIAL AND NON-FINANCIAL PERFORMANCE As at the end of February 2019, the province had spent R1 752 101 000 which is 90% of its R 1 926 644 000 annual budget allocation. There’s an under spending of R 55 476 000 of the R1 807 577 000 transferred until 08 March 2019. The province has delivered 5544 housing units of the annual target of 10994 and 4631 sites of the annual target of 4453, and 3 822 Pre and Post Title deeds transferred from the expected 19 245 annual target.

DELIVERY TRENDS PER MONTH/QUARTER Sites Completed Sites Planned Units Completed Units Planned Budget Expenditure Q1 607 774 908 2057 R 376 608 055.50 R 249 894 908.80 Apr 219 159 543 R 105 297 597.83 R 47 649 907.06 May 257 153 671 R 123 401 882.83 R 75 594 251.44 Jun 298 596 843 R 147 908 574.83 R 126 650 750.30 Q2 1251 2091 3550 R 598 349 170.50 R 314 872 916.42 Jul 367 911 1034 R 177 918 091.83 R 98 210 527.92 Aug 418 1214 R 203 080 649.83 R 92 653 499.81 Sep 466 813 1302 R 217 350 428.83 R 124 008 888.70 Q3 688 939 1871 2713 R 466 464 123.30 R 652 422 364.43 Oct 412 503 1069 R 181 225 712.83 R 133 387 683.63 Nov 319 736 915 R 157 389 039.83 R 325 272 291.51 Dec 208 632 729 R 127 849 370.63 R 193 762 389.29 Q4 1752 1489 674 2674 R 485 222 650.71 R 459 291 787.87 Jan 396 260 334 775 R 135 723 009.50 R 73 281 913.06 Feb 1356 470 340 834 R 152 840 330.50 R 383 454 989.96 Mar 759 1065 R 196 659 310.71 R 2 554 884.86 Grand Total 3266 4453 5544 10994 R 1 926 644 000.00 R 1 676 481 977.52

2018/19 FY DELIVERY PER MUNICIPALITY Region SitesCompleted sitesplanned Units Completed Units Planned Budget Expenditure Bojanala Platinum District 1205 3245 R 505 922 933.00 R 400 990 681.90 Kgetlengrivier 104 99 R 13 148 223.00 R 8 875 451.29 Madibeng 481 1302 R 197 701 552.00 R 92 376 794.08 Moretele 284 500 R 73 442 500.00 R 63 933 757.36 Moses Kotane 262 570 R 74 639 293.00 R 45 575 033.32 Rustenburg 74 774 R 146 991 365.00 R 190 229 645.84 Dr Kenneth Kaunda District 699 2168 1332 2464 R 463 067 472.00 R 556 214 833.84 JB Marks 328 233 347 R 66 794 306.00 R 51 738 066.08 Maquassi Hills 1701 50 260 R 110 436 745.00 R 75 140 147.65 Matlosana 600 139 1049 1857 R 285 836 421.00 R 429 336 620.11 Dr Ruth Segomotsi Mompati District 1122 1759 1790 2356 R 424 098 273.00 R 250 159 944.96 Greater Taung 341 527 R 86 619 885.00 R 48 745 380.17 Kagisano-Molopo 175 254 R 38 153 606.00 R 33 988 253.54 Lekwa-Teemane 406 1004 898 R 138 138 646.00 R 93 566 769.87 Mamusa 396 897 130 496 R 112 116 827.00 R 63 730 436.58 Naledi 726 456 140 181 R 49 069 309.00 R 10 129 104.81 Ngaka Modiri Molema District 1445 526 921 2829 R 445 374 225.00 R 369 875 483.83 Ditsobotla 1265 68 88 R 64 143 532.00 R 98 363 672.12 Mahikeng 250 936 R 127 384 051.00 R 62 429 514.94 Ramotshere Moiloa 319 430 R 64 243 623.00 R 77 472 740.15 Ratlou 80 416 R 53 260 128.00 R 21 561 657.96 Tswaing 180 204 959 R 136 342 891.00 R 110 047 898.67 North West Provincial 296 100 R 88 181 097.01 R 99 241 032.99 Grand Total 3266 4453 5544 10994 R 1 926 644 000.00 R 1 676 481 977.52

MINING TOWNS SUMMARY Mining Town Sites Completed Sites Planned Units Completed Units Planned Budget Expenditure Kgetlengrivier 104 99 R 13 148 223.00 R 8 875 451.29 Madibeng 481 1302 R 197 701 552.00 R 92 376 794.08 Matlosana 600 139 1049 1857 R 285 836 421.00 R 429 336 620.11 Moses Kotane 262 570 R 74 639 293.00 R 45 575 033.32 Rustenburg 74 774 R 146 991 365.00 R 190 229 645.84 Grand Total 1970 4602 R 718 316 854.00 R 766 393 544.64

TITLE DEEDS Title Deeds: - 1 490 title deeds were transferred to new home owners 3 726 were transferred to homeowners on the post-1994 programme Pre-1994, 96 title deeds were transferred in Madikwe, Mabopane and Mogwase (North West Housing Corporation). HSS Data Beneficiary Cleanup: The Department has already embarked on the 1st phase to eradicate the backlog of unconfirmed failed searches, received and sent for initial searches, verified but on hold status in the quest to clean up the HSS database. 14 981 failed searches were confirmed with 691 remaining.

HOUSING DEVELOPMENT AGENCY PROJECTS The Department has in 2017/18 financial year transferred R689 872 740 to the Housing Development Agency. Funding at HDA was lost to National Treasury and the department has budgeted for those projects in the HSDG business plan The Department will take over all incomplete projects from HDA in the 2019/20 FY and implement them directly The progress on the projects is indicated in the following slide:

PROJECTS MANAGED BY HDA Project Name Service provider appointment values Budget 2018/19fy Project scope of work Actual Total Expenditure Year to Date Remaing Budget amount to complete the project Projections for December 20 Projections for Jan -March 2019 Projected Expenditure on 31/03/2019 Challenges Mitigation Scope of Work   Financial Projections Project Issues Coligny/Thlabologang Ext 8 R 66 660 247,08 R 69 993 554,40 Design & installation of 1528 serviced stands R 24 692 631,01 R 41 967 616,07 R6 056 330,20 R35 911 285,87 R66 660 247,08 Budget shortfall to fund bulk infrastructure Additional funding request of R 21 434 519.00 made to the Province Stella Internal Reticulation R 30 538 200,00 R 32 065 110,00 Design & installation of 700 serviced stands R 8 206 178,49 R 22 332 021,51 R1 793 821,51 R20 538 200,00 R30 538 200,00 Relocation of 15 pit latrin toilets on the way for services. Project team in the process of resolving this challenge . No additional funding will be required for this exercise Sunway Bulk Sewer R 30 180 047,41 R 25 000 000,00 Design & construction of 6.3km bulk sewer & pump station R 2 593 390,13 R 27 586 657,28 R0,00 R2 593 390,13 Budget shortfall of R5,180,047.41 and one landowner refusing to sign consent form for servitude rights The landowner is being engaged and the issue will be escalated to the Local municipality for a resolution on possible action (expropriatin) Bokamoso Catalytic Project R 184 400 000,00 Construction of 1600 top structures R 5 816 136,00 R 178 583 864,00 R4 946 748,80 R30 493 360,00 R41 256 244,80 Geotechnical variation claim (R 23 120 704.00) submitted to Province as a result of prevailing geo-technical conditions on site. All contractors are back on-site and commenced with works while a definitive additional funding request based on this is awaited from the Province. Marikana Bulk & Sewer Services R 212 000 000,00 Planning phase - construction of bulk sewer & water and serviced stands R 0,00 Township establishment approvals have been put on hold as a result of land invasions requiring a revised layout plan Lonmin has commmitted to refly the area to remap the layout and work jointly with all stakeholders to resolve the repegging of the already occupied sites. Matlosana N12 West Catalytic Project: Schoonspruit Outfall Sewer Pipeline R 60 139 812,21 R 27 569 822,00 Upgrading of 10.35km Schoonspruit outfall sewer pipeline R 10 878 595,16 R 49 261 217,05 The funds to complete the project are now seating with Matlosana Local Municipality Contractor is experiencing massive cashflow problems due to non payment, and the Contractor has suspended the works and have submitted a claim. HDÄ is now playing a Project Manager role, funds have been transferred directly to Municipality for payments HDÄ to get copy of the IP signed between the Province and the Municipality for cost control purposes and financial reports Matlosana N12 West Catalytic Project: Bulk Water Pipeline from Alabama Reservoir R 41 847 428,21 Construction of 4.57km bulk water pipeline R 17 924 623,08 R 23 922 805,13 Matlosana N12 West Catalytic Project: Extension 3, 5 and 6 R 72 896 727,35 R 59 420 720,00 Design & installation of 653 serviced stands R 52 705 159,39 R 20 191 567,96 Total R 698 662 462,26 R 610 449 206,40 R 575 845 749,00 R12 796 900,51 R86 942 845,87 R141 048 082,01

BLOCKED PROJECTS The Department has in the current financial year prioritised the unblocking of blocked projects during the mid-term budget review. The priority areas are within all four regions i.e. Dr RSM, NMM, Bojanala and Dr KK The projects are various stages of implementation i.e. Procurement and Construction. The breakdown of projects per region are as follows:

BLOCKED - DR RSM REGION Municipality Project No. Project Name Number of subsidies Foundation & Structural Demolitions Vacant Stands Rectification Estimated Budget for the Project   No of Foundations No of Structures Estimated Budget Amount No of Vacant Stands No of Str to be Rectified Mamusa B00050003 Amalia DDIS 100 9 17 R1 962 051,08 3 R 332 841,00 16 R 1 019 755,36 R 3 314 647,44 Lekwa Teemane Utlwanang Hostels 24 R0,00 R 0,00 R 1 529 633,04 B05060006/1 Christiana 600 129 153 R18 063 537,48 164 R 10 452 492,44 R 28 516 029,92 B01030005 Utlwanang EXT 2 DDIS 150 25 R210 978,00 52 R 5 769 244,00 31 R 1 975 776,01 R 7 955 998,01 B04120001 Boitumelong EXT 3 & 4 500 28 98 R11 109 101,36 46 R 5 103 562,00 244 R 15 551 269,24 R 31 763 932,60 B97060014 Boitumelong EXT 1 1000 18 159 R17 792 477,16 66 R 7 322 502,00 324 R 20 650 046,04 R 45 765 025,20 B96040006 Utlwanang 390 155 R17 340 250,04 14 R 1 553 258,00 216 R 13 766 697,36 R 32 660 205,40 Kagisano Molopo B08030001 Kagisano Rural Housing 1600 305 R36 412 766,60 R 33 838 835,00 951 R 60 611 709,21 R 130 863 310,81 B96040006/1 Utlwanang (152) 200 79 80 R9 542 450,48 R 191 204,13 R 9 733 654,61 TOTAL 4564 610 967 R112 433 612,20 486 R 53 920 242,00 1973 R 125 748 582,83 R 292 102 437,03

BLOCKED - NGAKA MODIRI MOLEMA Municipality Project No. Project Name Number of subsidies Foundation & Structural Demolitions Vacant Stands Rectification Estimated Budget for the Project   No of Foundations No of Structures Estimated Budget Amount No of Vacant Stands No of Str to be Rectified Ditsobotla B08050005/1 Ditsobotla Villages 402 22 1 R1 806 509,31 21 R2 413 887,00 R4 220 440,31 Ratlou B06080004 Disaneng 128 R3 350 409,76 179 R20 575 513,00 95 R 6 054 797,07 R 29 980 719,83 Logageng 200 63 R6 989 661,00 R7 241 661,00 R 0,00 R 14 231 322,00 Mafikeng B10090014/1 Mafikeng Madibe Womens Build 73 41 10 R3 686 284,62 R110 947,00 R 3 797 231,62 Ramotshere B1009009/1 Kruisrivier Womens build 7 R562 443,84 27 R3 103 569,00 4 R 61 626,44 R 3 727 639,28 Madibogo 572 R80 349,12 2 R229 894,00 370 R 4 029 765,48 R 4 340 008,60 Makgobistad 400 40 R391 622,14 58 R6 666 926,00 84 R 1 695 874,30 R 8 754 422,44 Tswaing B960400026 Letsopa Ext 1 & 2 862 6 501 R1 147 746,00 605 R69 542 935,00 R 70 690 681,00 TOTAL 2984 109 712 R18 015 025,79 956 R109 885 332,00 553 R11 842 063,29 R 139 742 465,08

BLOCKED - BOJANALA Municipality Project No. Project Name Number of subsidies Foundation & Structural Demolitions Vacant Stands Rectification Estimated Budget for the Project   No of Foundations No of Structures Estimated Budget Amount No of Vacant Stands No of Str to be Rectified Moretele B97050002/1 Maubane 367 72 R5 785 136,64 140 R 15 532 580,00 111 R 1 931 592,90 R 23 249 309,54 B97060003/1 Mogogelo 429 173 R13 900 397,76 R 19 193 831,00 164 R 2 995 180,75 R 36 089 409,51 B97050001/1 Greenside 206 90 R7 231 420,80 98 R 10 872 806,00 108 R 2 267 547,00 R 20 371 773,80 Kgetleng B970600013 Reagile 1135 1 R80 349,12 24 R 2 662 728,00 538 R 5 940 270,38 R 8 683 347,50 B0412002/1 382 33 R 3 661 251,00 158 R 3 110 095,02 R 6 851 695,14 B04110001 Bororelo 440 13 R 1 442 311,00 213 R 3 592 759,25 R 5 115 419,37 B96040036/1 500 2 R160 698,24 80 R 8 875 760,00 143 R 2 915 629,90 R 11 952 088,14 Madibeng B96040006 Lethabong 2100 187 R 20 747 089,00 570 R 11 847 326,45 R 32 674 764,57 B16040011/1 Madibeng Letlhabile Block I,G,F,E,C 768 17 R2 931 807,56 R 0,00 40 R 2 549 388,40 R 5 481 195,96 Lethlabile PHP 70 R1 044 538,56 5 R 128 202,00 R 2 615 051,56 TOTAL 6397 R31 375 396,04 761 R 84 430 667,00 2050 R 37 277 992,05 R 153 084 055,09

BLOCKED - DR KENNETH KAUNDA Municipality Project No. Project Name Number of subsidies Foundation & Structural Demolitions Vacant Stands Rectification Estimated Budget for the Project   No of Foundations No of Structures Estimated Budget Amount No of Vacant Stands No of Str to be Rectified Matlosana B04020007 Kanana Ext 3&5 1250 17 R1 886 099,00 39 R 4 326 933,00 496 R 9 918 995,05 R 16 132 027,05 B0030003 Kanana Ext 6 2716 3 R332 841,00 21 R 2 329 887,00 1007 R 19 484 839,78 R 22 147 567,78 B0420007 Kanana Ext 7 124 1 R191 386,12 11 R 1 220 417,00 49 R 532 001,50 R 1 943 804,62 B000110001 Kanana Ext 12 764 5 R635 084,12 41 R 4 548 827,00 226 R 4 849 199,63 R 10 033 110,75 B99030006 Khuma 1,3,4&5 168 2 R382 772,24 14 R 1 553 258,00 47 R 892 530,80 R 2 828 561,04 2007 Matlosana Disaster 174 22 R2 440 834,00 55 R 6 102 085,00 111 R 2 643 053,05 R 11 185 972,05 Tlokwe B99020004/1 Potchefstroom Ikageng Ext 4 492 8 R983 576,00 69 R 7 655 343,00 R 0,00 R 8 638 919,00 B09010001 Mosa Con Ikageng Ext 11 13 R1 442 311,00 24 R 2 662 728,00 416 R 8 042 979,05 R 12 148 018,05 Ventersdorp B97070003 Ventersdorp Tshing 1795 R0,00 31 R 3 439 357,00 TOTAL 7483 4 71 R8 294 903,48 305 R 33 838 835,00 R 46 363 598,86 R 88 497 337,34

KEY PROJECTS WITH HIGH CAPACITY CONTRACTORS PROJECTS DESCRIPTION DEVELOPERS EXPECTED EXPENDITURE BY END MARCH Blydeville Ext 4 (Services) Meron Construction R12 000 000,00 Maseno General Trade R11 500 000,00 Ipelegeng Ext 8 (Services) TN Molefe R14 000 000,00 TS Construction R18 000 000,00 Ipelegeng Ext 9 (Services) Motheo Construction R15 500 000,00 Somandla R12 500 000,00 Bloemhof Ext 11 & 12 (Services) MMOPA Construction R9 000 000,00 Lesedi Civil Construction Thobile M Building Construction R13 000 000,00 Wolmaranstad Ext 17 & 18 (Services) Barzani Development R33 000 000,00 Rulaganyang (Services) Thavhani R6 500 000,00 Lebaleng Ext 6 (Services) R7 000 000,00 Alabama Ext 4 (Units) Tigane Developers R10 000 000,00 R177 500 000,00

KEY PERFORMANCE AREAS FOR INTERVENTION Intervention Description Key Actions (Activities) Expected Output Completion Progress Report PREPARE 2018/19 and 2019/20 DELIVERY BUSINESS PLANS Finalisation of a Compliant 2018/19 business plan for the Human Settlements Development Grant Approved 2018/19 HSDG Business Plan 29-Jun-18 Completed Finalisation of a Compliant 2018/19 business plan for the Title Restoration Grant MULTI-YEAR HUMAN SETTLEMENTS DEVELOPMENT PLAN Land assembly plan Approved 3 year land assembly plan 30-Nov-18 In progress. Housing Development Agency is contracted to facilitate the preparation of this plan Human Settlements projects pipeline (IRDP/UISP/PHP/Rental) Approved MTEF Human Settlements projects pipeline In progress to appoint a service provider to review the plan. 1. IRDP 2. UISP Upgrading plans for Dr RSM NMM and are underway 3. PHP 4. Rental The Multiyear Housing Development Plan is being updated Spatial transformation and consolidation plan 1. Provincial HS master spatial plan Draft Spatial plan pending consultation Revitalisation of distressed mining communities Provincial programme of revitalisation of distressed mining communities 31-Oct-18 Finalised. Implementation Protocol with Municipalities signed Unlock projects that are blocked, incomplete or slow-moving Programme for activation of blocked projects 30-Jul-18 Assessment finalised and projects prioritised for implementation from current financial year Undertake remedial works on defective or poorly built subsidy homes Programme to remedy defective home 31-Aug-18 Defective houses identified; **

KPA: INTERVENTION CONT….. Intervention Description Key Actions (Activities) Expected Output Completion Progress Report APPOINT SUITABLY QUALIFIED AND CAPABLE CONTRACTORS (CIDB GRADED & NHBRC REGISTERED) Prepare and advertise BID with appropriate specifications for the appointment of suitably qualified contractors to a panel for 3 years Advertised BID for appointment of contractors 30-Jul-18 Advert complete Evaluation, adjudication and appointment of suitably of qualified contractors to a panel for 3 year Appointment of suitably qualified contractors to a DLG & HS panel 30-Sep-18 Database finalised and in use Prepare a framework for the sustainable participation of small and emerging contractors in HS delivery projects Approved framework for the participation of small and emerging contractors 30-Oct-18 Draft plan developed PERFORMANCE OF CONTRACTORS APPOINTED TO DELIVER HOUSING AND HUMAN SETTLEMENTS PRODUCTS & SERVICES Enhance contract and performance management Approved framework for contract management Work in progress. BENEFICIARY MANAGEMENT AND COMMUNITY OUTREACH Develop a management system (dashboard) and procedures for programmes and projects management to optimize annual delivery for housing opportunities Approved system and procedures for programme and project management Work in progress Implement the national housing needs register Compliant provincial chapter of the national housing needs register 15-Feb-19 In progress Administrative reconciliation of beneficiaries and delivered product Approved framework for administrative reconciliation of beneficiaries to delivered products In progress on a case by case basis. A comprehensive plan has been prepared Prepare and implement a community outreach programme Approved and implemented community outreach programme Ongoing and Communications unit is driving the process

KPA: INTERVENTION CONT….. Intervention Description Key Actions (Activities) Expected Output Completion Progress Report REPOSITION THE DEPARTMENT TO BECOME FIT FOR PURPOSE Finalise the organisational structure Approved macro organisational structure 30-Jul-18 Final draft Macro structure prepared for consultation with OTP and DPSA Migrate personnel into the approved organisational structure Complete migration 31-Oct-19 Pending approval of Organisational Structure Fill vacant positions Reduce vacancy to prescribed range 31-Mar-19 Advertised positions pending approval of Organisational Structure Review and align the SLA of the appointed service provider (PMU) Aligned PMU SLA to objectives of the Intervention Underway. The scope of work for the PMU is managed jointly between the NDHS and the PDLG&HS.

STATUS OF KEY PROJECTS Rustenburg accreditation : Process not finalised yet CRU Mafikeng : Due to flouting of processes by municipality, 50 units of 100 are illegally occupied. Matlosana CRU : All 100 units are occupied Rustenburg Meriting Ext 4 & 5 : Eskom is not responsive to our request to carry cost of relocation and rebuild of 54 structures built under electricity pylons. Assistance of the committee was requested to engage the relevant committee.

WORK IN PROGRESS – Feb 2019 Milestone Beneficiaries Amount Foundations no wallplate 566 R 18 642 794.99 Wall Plates 618 R 14 684 700.09 Finishes no completion 641 R 4 412 366.41 TOTAL   R 37 739 861.49

PROGRESS TO DATE Implementation Protocol signed between Minister and MEC Intervention Steering Committee setup and chaired by the DG Technical Working Team established and chaired by DDG

THANK YOU!