1. DEPARTMENTAL PERFORMANCE REPORT JULY – SEPTEMBER 2013
PORTFOLIO COMMITTEE ON HUMAN
SETTLEMENTS – 14 NOVEMBER 2013
DIRECTOR- GENERAL: T. ZULU
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2. PRESENTATION OUTLINE Overview Departmental Expenditure vs. Performance
Delivery Agreement (Outcome 8)
Accreditation of Municipalities.
Performance the Institutions
Conditional Grants
Delivery Performance
Conclusion
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3. OVERVIEW OF DEPARTMENTAL PERFORMANCE (JULY TO SEPTEMBER 2013)
The overall achievement by the Department during the second quarter of 2013/14 financial year is 69%.
Out of one hundred and eighteen (118) targets which were planned for the period under review, eighty two (82) targets were achieved.
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4. Strategic Interventions of the Department
Aggressive recruitment drive is paying off, especially the filling of SMS vacancies to provide strategic leadership.
For the purposed of monitoring progress on the filling of vacant posts, status report is being reported to the Executive Authority and presented at the EMT.
Whilst we are in the process of appointing, some of the prospective candidates receive counter-offers and this delays our recruitment process.
The vacancy rate as at 08 November 2013 is 25%.
Reasonable progress in addressing the ICT challenges
There is progress in the acquisition of office accommodation
The establishment of a War Room which improved our monitoring and verification in provinces
We are at an advanced stage in the development of the Medium Term Strategic Framework for the Department
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5. ANNUAL PERFORMANCE PLAN (APP) JULY – SEPTEMBER 2013 PERFORMANCE STATUS
Programme
First Quarter 2013/14
Second quarter 2013/14
Targets Approved
Achieved
% Achieved
Programme 1: Office of the Director-General) (DG’s) 10 6 60 9 7 78
Programme 1: Corporate Services (CS) 17
100
Programme 2: Human Settlement Delivery Frameworks (HSDF) 20 5 25 45
Programme 3: Human Settlement Strategy and Planning (HSSP) 22 14 64 23 43
Programme 4: Programme and Project Mangt Unit (PMU) 13 8 62 50
Programme 5: Office of the Chief Financial Officer (CFO) 24
Programme 6: Office of the Chief Operations Officer (COO) 12 92 11 73
Departmental
118 85 72 82 69
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6. OVERALL DEPARTMENTAL PERFORMANCE (JULY - SEPTEMBER 2013)
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7. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS
Progress up to 30 September 2013:
Upgrading of households in informal settlements with access to secure tenure rights and basic services;
Implementation of a National Support Programme (NUSP)
Delivery of well-located and affordable rental accommodation;
Declaration of Restructuring Zones
Accreditation of 27 municipalities to undertake human settlements functions;
Efficient utilization of state land for human settlements development;
Improved Property Market (Mortgage Default Insurance Scheme, Finance Linked Individual Subsidy, Loans granted by Finance Development Institutions
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8. OUTCOME 8 : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)
PROVINCE
2014
TARGET
TOTAL DELIVERY (30 JUNE 2013)
% OF TARGET
TOTAL DELIVERY
(30 JUNE 2013)
INCLUDING TOP STRUCTURES ON NEW SITES EC
59 440
38 222
64.3
51 821
87.2 FS
26 400
22 763
86.2
34 570
130.9 GT
96 760
63 574
65.7
98 605
101.9
KZN
78 200
39 024
51.2
57 589
73.6 LP
31 200
20 624
66.1
22 247
71.3 MP
26 480
12 956
48.9
20 029
75.6 NC
9 320
11 819
126.8
15 659
168.0 NW
28 840
13 891
48.2
25 307
87.8 WC
45 360
32 755
72.2
45 153
99.5
TOTAL
63.9
92.7
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9. UPGRADING OF INFORMAL SETTLEMENTS
Number of households provided with upgraded services as at 30 June 2013: households
Represents 63.9% of 2014 target
Over same period Provinces delivered formal housing units to households in informal settlements – estimated that constructed on newly serviced sites;
Therefore total number of households provided with upgraded services:
Representing 92.7% of 2014 target
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10. NATIONAL UPGRADING SUPPORT PROGRAMME
Technical assistance for upgrading of informal settlements in place in 27 Municipalities:
EC: Buffalo City: To be advertised in Tender Bulletin, NMM: Negotiations in advanced stage, Kouga, Elundini, Mhlonto and Mquma Municipalities: further briefing sessions being arranged ;
FS: Categorization and mapping under way in six NUSP Municipalities;
GT: Service provider appointed for Mogale City; SLA to be concluded for City of Johannesburg and Ekurhuleni, Terms of Reference advertised for City of Tshwane; Emfuleni to be re-advertised;
KZN: Ladysmith: SLA to be concluded, Newcastle and Mzundusi: Service provider appointed, Umhlathuze: TOR approved , Response on proposal awaited from Ethekweni and KwaDukuza;
LP: Developing of specific upgrading plans underway and additional 10 Municipalities identified for the same exercise;
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11. NATIONAL UPGRADING SUPPORT PROGRAMME
NUSP:
MP: Govan Mbeki: Service provider appointed for categorization; Thembisile, Emalahleni and Steve Tshwete: Proposals submitted to Municipalities, Lekoa: further briefing to be arranged;
NC: //Kara Hais, Gamagara, Ga-Segonyana, Phokwane, Sol Plaatje and Tsantsabane: SLA to be concluded
NW: Rustenburg: Service provider appointed for 2 settlements and TOR advertised for another 8 settlements, Madibeng: TOR approved, Tlokwe: proposals submitted to Municipality for consideration, Maquassi Hills and Kgetlengrivier: Further briefing sessions to be arranged; and ;
WC: Drakenstein: Service provider appointed, COCT: SLA to be concluded, Mossel Bay: TOR to be re-advertised, George: Awaiting SCM processes to be finalized.
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12. INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION
Number of Rental Units delivered through HSDG up to 30 June 2013: units
Represents 42.0% of 2014 target
Including USDG: Increased to units
Represents 47.2% of 2014 target
Over same period private rental units delivered: units
Total number delivered: units representing 58.6% of 2014 target
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13. INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION
PROVINCE
TOTAL DELIVERY
% OF 2014
TARGET
(including USDG) EC
2 595
21.8
3 065
25.8 FS
2 161
40.9
3 398
64.4 GT
10 368
53.6
10 547
54.5
KZN
7 826
51.4
8 561
56.2 LP
136
2.2 MP
838
15.8 NC
290
15.6 NW
2 870
49.8 WC
6 523
71.9
8 250
90.9
Total
33 607
42.0
37 776
47.2
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14. WELL-LOCATED AFFORDABLE RENTAL ACCOMMODATION
Restructuring Zones: 75 approved and 55 still under discussion
SHRA:
Completed Projects: 2143 units
Running Projects: units
Approved pipeline and in various planning stages: units
EC: LP: 3887
FS: MP: 710
GT: NC: 1573
KZN: NW: 1764
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15. ACCREDITATION OF MUNICIPALITIES
Performance to date:
Level 1: 8 District Municipality/Municipalities;
Level 2: 8 Metros, 11 District Municipalities/Local Municipalities
Implementation Protocols concluded: 24 Municipalities
Assignment (Level 3 accreditation) of Metros: FFC response identified a number of operational issues that needed serious attention.
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16. INTERVENTION ON ACCREDITATION OF MUNICIPALITIES
Assessed and accredited Municipalities to date: 27 Municipalities.
Level 1: 7 Municipalities and 1 District Municipality;
Level 2: 7 Metros, 3 District Municipalities and 9 Local Municipalities
Provincial Departments of CoGTA and Human Settlements will provide coordinated capacity, expertise and technical support to municipalities that are recommended for accreditation;
Broad collaboration framework with National Treasury through Cities Support Programme has been agreed upon
Each Province has been assigned with Professional Teams to assist in the facilitation, coordination and conflict resolution issues pertaining to accreditation processes.
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17. OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT
Actual delivery:
ha of state land identified for assessment and
ha thereof assessed for suitability for release;
7 477,5 ha has been released (FS, GP,KZN,LP+NW)
Land released is well located for extension of existing settlements, land tenure upgrading, integrated development or GAP market
PHSD’s (private land acquired): ,9 ha
An additional 419,3 ha has been released by the Department of Rural Development and Land Reform
Two properties in Elias Motsoaledi Municipality measuring 523,3 ha submitted for approval to be released for upgrading of informal settlements
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18. OUTPUT 4: IMPROVED PROPERTY MARKET
Mortgage Default Insurance Scheme:
Concurrence from the National Treasury for MDI is still outstanding
Finance Linked Individual Subsidy:
Revised FLISP Policy implemented on 1 April 2012;
ABSA and Standard Bank signed a MOU with the NHFC. Three banks are now on board and actively supporting the implementation of the programme.
An amendment to the revised policy has been proposed to increase the value cap imposed on the policy in April 2012 in accordance to the escalation of the BER Index.
It is also proposed that the Section 10A and 10B of the Housing Act, Act 107 of 1997, be amended to replace the pre-emptive right with a more workable solution
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19. OUTPUT 4: IMPROVED PROPERTY MARKET Conti….
Banks are using the pre-emptive right condition to not approve loan applications linked to FLISP subsidies;
NHFC has requested that the administration of FLISP be extended to the open market. An individual will therefore be allowed to approach a bank, obtain conditional loan approval and then approach the NHFC to apply for subsidy;
The above proposals are still under consideration
Total number of units delivered: 330 households assisted
Long term fixed interest rate instrument
Planned for launching in 2014
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20. OUTPUT 4: IMPROVED PROPERTY MARKET
INSTITUTION
NUMBER OF LOANS
DFI’s
Banks
94 772
Employer assisted housing
644
Total
(Representing 52,2% of target)
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21. PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED
TOTAL DELIVERY
% OF 2014 TARGET
NHFC (Mortgage Loans)
1 810
93.8
NHFC (Incremental Loans)
12 968
31.9
NHFC (Wholesale funding)
23 786
60.5
NHFC (Leverage)
35 068
274.2
RHLF
74.6
NURCHA
8 357
75.7
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22. Human Settlements Development Grant Expenditure Performance as at 30 September 2013
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23. Delivery Performance as at 30 September 2013
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24. HSDG PERFORMANCE PRELIM: 31 October 2013

25. Delivery Performance as at 31 October 2013

26. Urban Settlements Development Grant Expenditure: 30 September 2013
YEAR TO DATE (01 JULY - 30 SEPTEMBER 2013) EXPENDITURE
Municipality
Total Allocation
Transferred Funds
Spent by Municipality
Variance Spent vs Transferred
Variance Spent vs Total Available
Transferred as % of Available funds
Spent as % of Transferred funds
Spent as % of Total Available
Unspent as % of Transferred funds
Unspent as % of Total Available
R'000
Buffalo City
613,305 -
69,520
(69,520)
543,785
0.0%
11.3%
88.7%
Nelson Mandela Bay
727,986
109,198
81,155
28,043
646,831
15.0%
74.3%
11.1%
25.7%
88.9%
Mangaung
596,719
85,052
(85,052)
511,667
14.3%
85.7%
Ekurhuleni
1,584,912
237,737
219,485
18,252
1,365,427
92.3%
13.8%
7.7%
86.2%
City of JHB
1,488,877
148,888
153,103
(4,215)
1,335,774
10.0%
102.8%
10.3%
-2.8%
89.7%
City of Tshwane
1,290,611
193,592
216,018
(22,426)
1,074,593
111.6%
16.7%
-11.6%
83.3%
eThekwini
1,580,999
158,100
231,295
(73,195)
1,349,704
146.3%
14.6%
-46.3%
85.4%
City of Cape Town
1,193,497
179,025
105,088
73,937
1,088,409
58.7%
8.8%
41.3%
91.2%
Total
9,076,906
1,026,540
1,160,716
(134,176)
7,916,190
113.1%
12.8%
-13.1%
87.2%
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27. USDG: Performance of the Metros
Non Financial Performance as 30 September 2013
Targets
Annual Targets
1st Quarter Targets
1st Quarter Actual Delivery
Variance
% Delivery Performance
Spatial Development and the Built Environment:
24,216
10,058
9,068
15,148
37%
Transport
15,149
100
273
14,876 2%
Water
1,763,065
1,262,047
2,939,742
(1,176,677)
167%
Sewerage
1,566,444
1,276,272
1,870,010
290,172
119%
Solid Waste Management
728,553
608,544
1,405,991
120,009
193%
Electricity
409,844
9,239
482,785
400,605
118%
Socio-Economic Amenities 94 6 7 88 7%
Local Economic Development
48,722
6,392
10,980
42,330
23%
Total Delivery
4,556,087
3,172,658
6,718,856
(293,449)
-6%

28. SANITATION JOB CREATION SUPPORT TO INITIAL MUNICIPALITIES
SUPPORT TO ADDITIONAL MUNICIPALITIES
SCREENING,TRAINING AND SMME REGISTRATION
SANITATION DELIVERY PROGRESS
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29. SANITATION JOB CREATION
Sourcing of funding
Support the National Department in addressing the funding gap
A draft training funding proposal was developed in collaboration with the uMkhanyakude DM for submission to the EWSETA. The proposal addresses the DM needs for internal training to manage sanitation delivery and associated job creation as well as the training of unemployed youth, women and persons with disabilities to perform key functions in respect of ensuring delivery as well as O + M related to sanitation.
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30. SANITATION SUPPORT TO INITIAL MUNICIPALITIES
Provide support to 50 municipalities to implement sanitation job creation programme / initiatives: initial municipalities
Support provided to the 31 initial municipalities in the current quarter by project team entailed participation in five (5) meetings with four (4) municipalities held as follows: Lesedi LM, Umkhanyakude DM, Bushbuckridge LM and Greater Tzanen LM.
In the second quarter of 2013/14, further job creation situational assessments were conducted for Lesedi, uMkhanyakude, and Joe Morolong Municipalities for update of support plans. A total of three (3) support plans were updated for municipal input and comments.
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31. SUPPORT TO ADDITIONAL MUNICIPALITIES
Provide support to 50 municipalities to implement sanitation job creation programme / initiatives: 19 additional municipalities
Regional DHS Sanitation Coordinators were engaged on identification of the 19 new municipalities for rollout and implementation of support in the 2013/14 financial year.
Additional municipalities were identified as follows for rollout of programme support in the 2013/14 financial year:
Eastern Cape - 2 local municipalities at Joe Qabi DM included
Free State – 3 municipalities (Moqhaka, Masilonyana and Tokologo)
Gauteng – 1 (Emfuleni)
KwaZulu-Natal – 2 (Nongoma and uMzinyathi)
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32. SUPPORT TO ADDITIONAL MUNICIPALITIES Cont...
Limpopo – 3 (Sekhukhune, Lephalale and Greater Giyani)
Mpumalanga – 2 (The Job Creation Champion from project team identified Umjindi and Thaba Chweu as the region did not identify 2 additional municipalities)
North West – 3 (Dr. Ruth Mompati, Greater Taung and Ratlou)
Northern Cape – 2 (Ga-Segonyana, Phokwane, Siyancuma)
Western Cape – 1 (Cederberg)
Support provided to the 19 newly identified municipalities in the current quarter by project team entailed participation in meetings, job creation situational assessment and support plans development.
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33. SCREENING, TRAINING AND SMME REGISTRATION
A total of 204 candidates were screened in Mkhuhlu Village at Bushbuckridge LM
Facilitation of training
Project team in consultation with the Project Manager, developed an alternative budget in respect of roll-out of a Community Water Health and Sanitation Learnership initially in respect of the establishment of learning areas in 5 municipalities
Facilitate registration of youth in the NYDA and NHBRC as SMME’s
Municipalities were provided with key templates to capture the relevant SMME data to prepare for identification of youth-run SMMEs. The plan was to register these SMMEs with municipalities using accurate and cleaner databases.
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34. SANITATION DELIVERY PROGRESS
RHIP PROGRAMME IMPLEMENTED IN 26 MUNICIPALITIES
- Partially achieved, RHIP Programme implemented in 26 municipalities. The programme is delayed due to gazetting of RHIP was done to non WSA’s . A total number of toilets were constructed during the period under review i.e. 418 (IDT) and by additional contractor
6 MUNICIPALITIES TRAINIED ON HEALTH AND HYGIENE
- Achieved, 6 municipalities trained in health and hygiene in the following municipalities: Siyathemba, Sol Plaatjie, Carnarvon, Vhembe, Sekhukhune and Capricorn
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35. SANITATION PROGRESS Conti…
36 MIG PROJECTS MONITORED ACROSS 9 PROVINCES
-Partially Achieved, 34 MIG projects monitored across 9 provinces. MIG site visits were conducted in Free State (16), Gauteng (1), Limpopo (7), Northern Cape(2), North West (5) and Western Cape(3).Provinces were finalizing assessment of technical reports and some were finalizing RHIP verifications
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36. Conclusion
Whilst the aggressive recruitment is bearing fruit, the vacancy rate which currently stands at 25% is still a factor
Sometimes prospective candidates receive counter-offers beyond public service salary scales
Based on the departmental performance in the second quarter, there will be a significant improvement on the overall annual performance.
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37. “We have come a long way – Celebrating 20 Years of Freedom!”
THANK YOU
“We have come a long way – Celebrating 20 Years of Freedom!”
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