HSDG Performance 2018/19FY

Presentation Outline 3. Approved Business Plan 2018/19 FY 1. Recap on 2017/18 FY 2. Previous Challenges & Implemented Interventions 3. Approved Business Plan 2018/19 FY 4. HSDG Allocation – 2018/19 FY 5. Quarterly Performance 2018/19 FY 6. Way Forward

PURPOSE OF THE PRESENTATION The presentation serves to; Appraise on progress relating to implementation of HSDG 2017/18 FY Present progress on quarterly performance 2018/19 fy Present performance at at Outline the impact of the plan on performance during the 2017/18 financial year. To share Provincial Dept Performance Q1 & 2 To present a progress report on current performance by the Dept

Recap on 2017/18 Financial Year cnt… The HSDG Budget allocation for 2017/18 financial year was R1, 319 493 000.00. A roll over budget of R86, 968, 000 was approved thus making the total budget to be R1,406, 461, 000. An amount of R150m was withheld by National the remaining budget was R1, 256, 461, 000 With the balance of the budget, department was expected to deliver 9956 housing units and 5151 serviced sites as per the approved Business Plan for the year under review.

Recap on 2017/18 Financial Year cnt… During the previous engagement with portfolio committee in September 2017, the expenditure was at 39% (R553 496 915.25). Performance at that stage was 1339 sites and 5487 units As at 31 December 2017 expenditure was at 59% (R746,065,000) including the approved roll over budget. According Nat Dept figures of January 31st 2018, the Province performance was at 80% in terms of sites and units with an expenditure of 67% . This performance does not include the rolled over target of 939. Expenditure as at the 31st of March 2018 was R1,256,461,000.00 translating to 100% of the available budget Below is the detailed non-financial deliveries as at 31st March 2018

Recap on 2017/18 Financial Year cnt… Rural housing – 1935 units completed, cumulative delivery = 8241 Rectification – 78 units completed, cumulative delivery = 385 Disaster/Emergency housing – 17 units completed, cumulative delivery = 393 Informal settlements upgrading – 1305 sites services, cumulative delivery = 3334 Total number of units delivered as at 31st March 2018 is 9132. Total number of sites delivered as at 31st March 2018 is 3334.

Previous Challenges The following are challenges that the department was faced with during 2017/18 FY: Constant reallocation of projects without developmental areas. None- appointments of service providers to implement IRDP. Late appointment of service providers Late approval of developmental areas None application of consequence management for none performance of contractors Poor Contract Management & Planning (Geotechs & Beneficiary Management)

Implemented Interventions 2017/18 FY Development of a recovery plan/turn around plan focusing on the following: Increasing HSDG expenditure through appointment of HDA high capacity contractors Improving contracts management through continuous engagements with contractors and technical sessions Improving contractors performance by applying a carrot and stick approach Accelerating supply chain processes The following are the interventions on Title deeds Meetings arranged with affected municipalities and a follow up to get the clearance certificate signed Ward councilors and committees are assisting in tracing approved beneficiaries, and announcement’s to be presented in three languages on the radio. Meetings are arranged with affected municipalities to confirm the status of signing of transfer documents to be submitted to state attorney

Implemented Interventions 2017/18 FY cnt… From the 1st February 2018 contractor to contractor cessions are no longer accepted unless they are material supply related and are approved by the Department. The department is now allowing only 50% of geotechnical to be paid at foundation phase and the balance would be paid on completion of a housing structure.

Business Plan 2018/19 FY Sub Intervention Sites Units Title Deed New Annual Budget 4.2 Rural Housing 6 071 R 563 009 800 2.2a IRDP: Phase 1: Planning and Services 1 313 R 56 459 000 2.2c IRDP: Phase 2: Top Structure Construction 300 R 27 780 000 2.3a People Housing Process 170 R 15 742 000 Sub-total 6 541 R 662 990 800 2.2b IRDP: Phase 1: Planning & services Informal Settlements 3 316 R 236 178 001 2.2d IRDP: Phase 2: Top Structure Construction Informal Settlements 594 R 83 581 700 2.4 Informal Settlements Upgrading R 61 822 299 Sub-Total R 381 582 000   1.2 Housing Finance Linked 100 R 5 046 000 3.3b Community Residential Units Constructed 215 R 130 700 000 1.8 Operational Capital Budget (4%) R 51 507 000 1.11a Land Parcel Procured R 31 586 200 1.7 Accredited Municipalities (Level 1 & 2) R 1 700 000 NHBRC R 22 569 000 4 629 7 450 R 1 287 681 000.00

HSDG Allocation – 2018/19 FY The HSDG Budget allocation for 2018/19 financial year was R1, 287 681 000.00 excluding title restoration grant allocation. The expenditure as at October 2018 is R754 930 506.13 translating to 58% against the annual allocation. The business plan targets for housing units for the current financial year is 7450. There are currently 7449 units completed to date translating to more that 100% achievement The planned target for services in 2018/19 financial year is 4629. Only 1050 sites have been serviced to date translating to 23%

2018/19 FY Business Planned Delivery Targets and Expenditure Quarterly Targets 2018/19 FY 2018/19 FY Business Planned Delivery Targets and Expenditure 2018/19 FY Quarter 1 Quarter 2 Yearly Plan Summary Units Sites Budget 2026 1221 R 328 195,00 2905 1829 R 487 530,00 7450 4629 R 1 287 682,00 Quarter 3 Quarter 4 1996 1201 R 347 203,00 523 378 R 124 754,00

Summary of Performance Title Deeds Restoration Programme: First & 2ND Quarter: 2018/19 FY Programmes Planned Target 01 April to 30 June 2018 Actual Performance Actual : Expenditure 01 April to 30 June 2018 R’000 Sites Units Title Deeds Title Deeds: Pre 1994 - 80 15 Title Deeds: Post 1994 768 895 946 Total 975 635 *New Indiv units consist of the following programmes: 1.1a Individual housing subsidies (R0 - R3 500) credit linked 1.1b Individual housing subsidies (R0 - R3 500) Non - Credit Linked 2.2a Integrated Residential Development Programme :Phase 1:Planning and Services 2.2c Integrated Residential Development Programme :Phase 2:Top Structure Construction 2.3a People's Housing process 2.5a Consolidation Subsidies (Excluding Blocked Projects) 4.1 Farm Worker Housing Assistance 4.2 Rural Housing 5. PRIORITY PROJECTS 6. PROVINCIAL SPECIFIC PROGRAMMES *Other Programmes (not MTSF) consist of 1.5a Rectified RDP stock 1994-2002 1.5b Rectification of Housing Stock(pre 1994) 1.9 Blocked projects 1.12 Housing chapters of IDP's 2.1 Project Linked Subsidies(current commitments approved up to 31/03/07) 2.5b Consolidation Subsidies (Blocked Projects) 2.6 Emergency Housing Assistance 3.3a Community residential units (CRU) Converted/Upgraded , 1.3 Enhanced Extended Discount Benefit Scheme (EEDBS) 1.4 State Asset Maintenance Programme 1.6 Social and Economic Facilities 1.8 Operational Capital Budget 1.11a Land parcels procured(IHAHSD) , 1.10 NHBRC enrolment (related to grant) 3.2a Social Housing:operational support 1.7 Accredited Municipalities (level 1 & 2): .

Quarterly Performance 2018/19 FY Progress Per Quarter 2018/19 FY Programme Quarter 1 Quarter 2 Units Sites Finances Target 2026 1221 R 328 194 600,00 2905 1829 R 487 529 650,00 Actual Delivery 2892 834 R 272 051 399,07 4004 216 R 237 835 092,54 Shortfall +866 -387 R 56 143 200,93 +1099 -1613 R 249 694 557,46 Performance % 143% 68% 83% 138% 12% 49%   SUMMARY OF PERFORMANCE BY END OF STEPTEMBER 2018 Units Sites Finances Target 7450 4629 R 1 287 681 000,00 Actual Delivery 6896 1050 R 509 886 491,61 Shortfall 554 3579 R 777 794 508,39 Performance % 93% 23% 40%

Work in progress as at 30 September 2018 Work In Progress 2018/19 FY Quarter 2 Programme Fnds WP UT 17/18 Rural Housing A (14 - 69 120 222 17/18 Rural Housing B 67 103 16 17/18 Rural Housing C 606 986 917 17/18 Rural Housing D-U/T units 148 105 371 17/18 Rural Housing HDA (5000) 273 655 2438 17/18 Military Veterans 238 17/18 Emergency Housing 28 366 17/18 Rectifications 8 377 17/18 EPHP 5 44 51 Total 1204 2013 4996

Military Veterans programme Backlog is 411 The Annual target for 2018/19 is 0 units: Delivery is 13 units. Challenges There has been gross under performance on the programme in the 2018/19 financial year that has seen only 3 units delivered in the financial year. Interventions Appointment of 5 service providers has been concluded for an allocation of 238 units. Beneficiary approvals are now at 63%.

Mining Towns & Services 4 Areas identified namely: Elias Motsoaledi, Fetakgomo-Tubatse 476 Thabazimbi, and, Lephalale. Challenges Elias Motsoaledi and Fetakgomo- Tubatse did not have projects ready for services as township proclamation processes are still underway. The delay is as a result of authorisations from different departments e.g. LEDET with environmental Record of decision (ROD). No appointment done as yet on Mogalakwena due to the municipality constantly changing development area Interventions Engineering firms are finalising designs for bulk infrastructure, appointment of contractors to be done by November 2018

Performance - HAD Projects Funds transferred to HAD were used to deliver the following milestones: 2 692 housing units 1 850 serviced sites at Altoostyd – Lephalale Bulk infrastructure at Altoostyd - 2.9 km of bulk water pipeline and 8.7 km of electrical over-headline were completed with associated infrastructure 250 temporary serviced sites at Bela-Bela, Warmbath ext 25 Marapong Community Residential Units (CRU) -- 56 units are roofed, 229 units at foundation, 152 units at wall plate, electricity on 162 units. Strategic Human settlements planning - Multi-Year Housing Development Plan (MYHDP), Provincial Master Spatial Plan (MSP), Informal Settlements Upgrading strategy, Rental Housing Strategy, Provincial Human Settlements Strategy and Land Acquisition Strategy Human Settlements Programme Management - Municipal Accreditation Capacity and Compliance Reports, Projects’ and Programme Management Unit (PMU), township establishment in various areas, formalisation of informal settlements, feasibility studies, land holding as well as release of 2779.8123 hectors of public land Part of the funds were spent on project management fees which covers office overheads, wages and salaries

Performance - HAD Projects Targets The Business Plan for 2018/19 financial year for the HDA has the following delivery targets: 5000 housing units under rural housing programme, 215 units at Marapong CRU, 98 units under military veterans programme as well as land acquisition and human settlements progamme management and planning. Non-financial Performance Rural Housing - 1770 units completed, with 712 units at wall plate and 325 units at foundation level Marapong CRU - 50 units are roofed while 383 are at different construction stages (i.e. 234 foundations concrete and 149 wall plates), Military veterans - 5 units are completed, 19 units are at foundation and 5 units are at preparation stage. Human settlements programme management and planning - Survey and pegging at Ha-Mawasha, transfer of properties is under-way at Seshego F&H, township lay-out plans were developed for Altoostyd and Burgersfort extensions, 698 hectors of private land were identified and assessed and formalisation of informal settlements is under-way in 3 projects. Financial performance The opening cash balance into 2018/19 financial year was R318 981 777. Total expenditure for 2018/19 financial year is R275 061 911.00. This figure includes invoices to the value of R55 006 518 that are yet to be paid to contractors. The current cash balance as at 15 October 2018 is R43 919 866.

Performance of funds trasfered to HAD - 2015 to date   Performance of funds trasfered to HAD - 2015 to date Province: LIMPOPO OPENING FUNDS BALANCE RECEIVED FUNDS PAYMENTS TO SERVICE PROVIDERS PENDING PAYMENTS TO SERVICE PROVIDERS TOTAL EXPENDITURE (payments + pending invoices) AVAILABLE FUNDS (Pre-Interest) % SPENT YTD TOTAL AVAILABLE FUNDS (Incl. Interest) Progress MTOP -R 594,106 R 0 R 7,370,552 -R 7,964,658 -1241% See progress below Bela Bela Warmbaths Ext.25 R 43,149,008 R 1,474,718 R 41,674,290 3% R 61,695,900 No progress. Project on hold Lephalale - Altoostyd -R 2,010,134 R 3,021,953 -R 5,032,088 -150% - Limpopo various areas-PMU R 5,654,951 R 9,194,269 -R 3,539,318 163% Disaster Housing R 41,200,275 0% 0 units are completed, 12 units are at wall plate level and 18 units are at foundation Enhance People Housing Programme (EPHP) -R 447,728 Military Veterans R 2,862,019 5 units are completed, 19 units are at foundation level Marapong - CRU R 61,870,873 R 31,720,591 R 30,150,282 51% 50 units are roofed 234 foundations concrete and 149 wall plates) Rural Housing Programme R 166,168,619 R 167,273,310 R 55,006,518 R 222,279,828 -R 56,111,209 134% 1775 units are completed, 712 are at wall plates and 325 at foundation Geo Technical Investigations R 1,128,000 Completed TOTAL R 318,981,777 R 220,055,393 R 275,061,911 R 43,919,866 86% R 63,941,476

Current Performance as at 19 October 2018 - HSDG P Item ACTIVITIES PER PROGRAMME Amended Allocation '000 Total Expenditure '000 Target Units Delivered units Target Sites Delivered Sites % Expenditure 1 Accredited Municipalities R 1 700,00 R 1 700,00 - 100% 2 Housing Chapters of IDP R - R - 3 Land Parcel Procurement R 31 471,00 0% 4 Priority Projects 5 OPSCAP R 51 507,00 R 26 050,19 51% 6 Rectification RDP Stock 1994-2002 36 7 Housing Finance Linked R 5 046,00 100 8 NHBRC Enrolment R 22 569,00 R 3 989,82 18% 9 People Housing Process R 15 742,00 170 10 Emergency Housing Assistance R 4 000,00 11 Informal Settlement Upgrading R 62 294,00 R 6 188,53 10% 12 Intergrated Res Develop Programme R 404 666,00 R 63 462,89 894 4 629 1 050 16% 13 CRU R 129 677,00 R 3 000,00 215 2% 14 Rural Housing R 563 009,00 R 607 847,94 6 071 7 272 108% 16 EEEDBS R 173,00 17 Title Deeds Restoration Grant R 22 333,00 R 7 850,71 35% 18 Military Veterans   19 EPWP R 2 000,00 20 Sub-total R 1 312 187,00 R 724 090 7 450 7 311 55%

2018/19 Programme Challenges and Mitigations. Item ACTIVITIES PER PROGRAMME Amended Allocation '000 CHALLENGES & MITIGATIONS 1 Accredited Municipalities R 1 700,00 There were delays in getting reports from the municipalities however this has been addressed and the HDA has claimed budget allocation and is to be paid by end of October 2018 2 Housing Chapters of IDP R -   3 Land Parcel Procurement R 31 471,00 Delays in inputs from external stakeholders, a meeting with the Valuer General scheduled for the 17th of October 2018, expenditure anticipated in January 2018. 4 Priority Projects 5 OPSCAP R 51 507,00 Whilst expenditure was slow due to HDA underperformance, the HDA has submitted claims amounting to R21.2m for the MTOP, moreover CoGHSTA has appointed the PMU has since started claiming on the programme, the allocated budget to be exhausted in the fourth quarter. 6 Rectification RDP Stock 1994-2002 The current contractors implementing this programme are being paid through the Rural Housing programme. There is no planned units for the current financial year however the programme is being implemented. 7 Housing Finance Linked R 5 046,00 Availability of FLISP qualifying stock as well as approvals by bank on the programme. Engagement are underway in Mogalakwena and with mining houses to obtain stock as well as qualifying beneficiaries. 8 NHBRC Enrolment R 22 569,00 9 People Housing Process R 15 742,00 The implementation of EPHP is not being done this current financial year, the funds planned are transferred to the Rural Housing Programme and the two contractors appointed are being paid through the rural housing programme. 10 Emergency Housing Assistance 11 Informal Settlement Upgrading R 62 294,00 Late appointments of service providers as a result of challenges with SCM resulted in underperformance in the FY. The department has since appointed a contractor for 2000 sites and extended scope for 595 sites. It is also in the process of appointing for 2000 sites with the use of the Northern Cape Province Database 12 Intergrated Res Develop Programme R 404 666,00 13 CRU R 129 677,00 14 Rural Housing R 563 009,00 Although some of the contractors on site are showing remarkable improvement on their projects, there are still majority that have still not converted units and managed to delivery the required allocations. Contracts Review has been done on the contractors and measures are to be taken. 16 EEEDBS R 173,00 17 Title Deeds Restoration Grant R 22 333,00 18 Military Veterans This programme is being implemented by the HDA as the agent. There has been appointments of contractors that has been done and are yet to take on site. No funds have been allocated as the contractors will be paid by/from the HAD account. 19 EPWP R 2 000,00 20 Sub-total R 1 312 187,00

Way Forward The following measures have been put in place and are implemented: CoGHSTA has since appointed 12 contractors to deliver 2700 units The contractors are appointed to construct units in terms of the new design and quantum In order to accelerate delivery, the 2700 units are allocated in clustered areas/green fields preferably the recently serviced for easy implementation i.e. Polokwane x78, and Modimolle and Bela-bela Ext.9. It is expected that this will improve expenditure for the current financial year. Scaling down and termination of 12 underperforming contractors has since been concluded. These units will be reallocated to performing contractors on the current database. On land purchase, a meeting has been arranged with the Valuer general to review the compiled report, expenditure is expected in January 2019.

Way Forward Appointment for 2 595 sites has since been concluded. Another appointment for additional 2000 sites is currently underway through the utilization of the Northern Cape Database due to non responsive bid which has since been re-advertised. Appointment of the implementing agent and contractors for the Tshikota CRU project is underway. NHBRC enrolment for the 2700 units is underway. Appointment of service providers to conduct geotechnical studies in identified developmental areas has been concluded HDA has finalized appointment of professional teams for the mining towns projects and ensure that designs are finalized for appointment and implementation in the current financial year. On the title deeds, evaluation and categorization of projects is underway.

The following should be noted: Conclusion The following should be noted: 2017/18 Performance FY Quarterly Performance for 2018/19 FY Current progress as at October 2018 and mitigations

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