1. PROVINCE OF THE EASTERN CAPE DEPARTMENT OF HOUSING LOCAL GOVERNMENT AND TRADITIONAL AFFAIRS
DWAF PORTFOLIO COMMITTEE HEARINGS ON BUCKET ERADICATION PROGRESS Parliament of South Africa 10 October Presented By MEC T. Xasa

2. Presentation Content
Provincial Overview
Backlogs
Funding
Expenditure
Key Challenges
Support
Critical Project Challenges

3. Provincial Overview, Sept 2007
05/06 Formal Backlog
05/06 backlog translated to R464m
Total Eradicated, end Sept
Completed Project Value R228m
Remaining Backlog, end Sept
07/08 backlog translates to R236m
07/08 Available Funding R236m
Eradicated in Sept
Expected Monthly Rate 4577pm
Upscale progress by 4 X times

4. Remaining Backlog, Sep 2007

5. 2007/2008 Funding Streams 07/08 MIG Allocation: R148, 281, 000
07/08 MIG Additional: R49, 590, 000
(Additional available from dplg, mid Oct 2007)
07/08 DLGTA Allocation: R22, 991, 000
07/08 DLGTA Additional: R12, 613, 000
(Additional available from DHLGTA, end Oct 2007)
07/08 Municipal Reported: R2, 834, 841
(Funding Reported by municipalities)
07/08 Total EC: R236, 309, 841

6. 2007/2008 Allocations / Expenditures
Municipality
Total Allocations (incl. additional)
Total Expenditure (incl. additional)
% Expenditure
Nelson Mandela B M
6, 650, 000
456, 000 7%
Ukhahlamba DM
51, 500, 000
1, 043, 000 2%
OR Tambo DM
3, 117, 000
2, 825, 000
91%
Alfred Nzo DM
779, 000
401, 000
51%
Chris Hani DM
73, 076, 000
14, 026, 000
19%
Buffalo City LM
520, 000
100%
Amathole DM
49, 203, 841
125, 000
0.3%
Baviaans LM
9, 752, 000
2, 015, 000
21%
Blue Crane LM
11, 029, 000
267, 000
2.4%
Ikwezi LM
11, 200, 000
711, 000
6.3%
Sundays RV LM
4, 705, 320
Makana LM
7, 827, 680
4, 867, 000
57%
Kou Kama LM
6, 950, 000 0%
EC TOTAL
236, 309, 841
38, 911, 320
16%

7. CONSTRAINTS / CHALLENGES RECOMMENDED SOLUTIONS
BEP Key Challenges
CONSTRAINTS / CHALLENGES
RECOMMENDED SOLUTIONS
Community expectations (Water Borne) vs. tight time-frame (3 moths)
Up-gradable (pre-cast) system: Political engagement with Communities to have buy-in.
 Inadequate Technical & Project Management Capacity in the WSAs
Roll-out Hands-on Support Initiatives (DWAF Engineers, Siyenza-Manje to WSAs
 Absorption capacity to spend late transferred allocations, by Dec 2007
Provide more resources and encourage multi-contracts approach
Projects still at pre-construction phase:
Meeting the Dec 2007 target
Adopt Business unusual approach by short-circuiting SCM processes to allow 3 to 2 months construction period

8. CONSTRAINTS / CHALLENGES RECOMMENDED SOLUTIONS
BEP Key Challenges
CONSTRAINTS / CHALLENGES
RECOMMENDED SOLUTIONS
Environmental sensitive sites have delayed projects implementation
EIA exemptions should be fast tracked through EC-DEAET and DEAT HOD’s involvement
 Hard rocky sites, cause delay due to unforeseen financial escalations
Rope-in other departments to provide machinery to avoid possible financial escalations
 High Tendered Amounts vs. Projects Budgets, delay projects implementation
For now, only financially stable contractors should be invited to tender to avoid re-tendering
Termination of contracts due to poor performance also cause delays.
Sub-contracting than terminations should be enforced through sessions

9. Hands on Support DBSA-Siyenza Manje Programme
Deployed DBSA Engineers = 11
Provincial MIG Support = 2
Municipal PMU support = 9
Young Technicians = 12
District Cluster Facilitators = 4
Municipal PMU Support = 8
DHLGTA-Project Consolidate
Capacity Assessment Engineer = 1
MIG-PMU Experts / Engineers = 2
DWAF BEP Hands-on Support
Deployed Technical Officials = 2
Contracted Engineers = 7
DPLG BEP US-AID Support
Technical Experts / Engineers = 2

10. Situational Analysis OR Tambo DM No. of Projects 3 Initial Backlog 716
Eradicated Backlog 607
Remaining Backlog 109
Construction Stage 109
Tender Stage 0
Design Stage 0
KEY CHALLENGES
SOLUTIONS
Mhlontlo: Ponds construction
Up-pace the construction
Ntabankulu: Septic tanks overflows treat for new targets
O&M should be prioritised to avoid creation of new targets
Meeting the target?
YES
No remedy needed

11. Situational Analysis Amathole DM No. of Projects 6
Initial Backlog
Eradicated Backlog 6 759
Remaining Backlog
Construction Stage 3 804
Tender Stage 0
Design Stage 0
KEY CHALLENGES
SOLUTIONS
Newtown-Bhofolo: 1473 units remaining: Phase 4 to start soon.
Multi-contract approach should be considered
Bedford-Adelaide: 1522 units remaining: Construction experiences hard rock.
Rope-in other departments to provide machinery to avoid possible financial escalations
Meeting the target? The pace is too slow No
Upscale the current construction pace at least 4 times.

12. Situational Analysis Chris Hani DM No. of Projects 12
Initial Backlog 8 700
Eradicated Backlog 5 915
Remaining Backlog
Construction Stage 2 730
Tender Stage 55
Design Stage 0
KEY CHALLENGES
SOLUTIONS
Lady Free: 55 Units: Has been retendered more three times
Only financially stable contractors should be invited to tender to avoid re-tendering
Emalahleni: Indwe and Doodrecht, R81m, impossible spend within 3 to 2 months
Up-gradable system only option: Political engagement with Communities to have buy-in.
Meeting the target? Huge funds Absorption Capacity No
Under construction: Up-gradable system and encourage multi-contracts approach

13. Situational Analysis Ukhahlamba DM No. of Projects 7
Initial Backlog 6 746
Eradicated Backlog 3 483
Remaining Backlog
Construction Stage 1 251
Tender Stage
Design Stage 432
KEY CHALLENGES
SOLUTIONS
Gariep: Steynsburg: 1580 at tender stage. No bulk water supply in place.
VIP (up-gradable system) has been agreed with the communities, meanwhile bulk is under constr.
Senqu: Barkley East: 1171 under construction. No bulk water supply in place.
VIP with Pre-cast structure are temporally provided and will be upgraded to water-borne
Meeting the target? Water-borne vs. Dec Target
YES
Community Buy-in to temporal arrangement.

14. Situational Analysis Cacadu DM No. of Projects 21
Initial Backlog 4 459
Eradicated Backlog 1 801
Remaining Backlog
Construction Stage 2 558
Tender Stage 100
Design Stage 0
KEY CHALLENGES
SOLUTIONS
Makana: 768 backlog will: Archaeological site (60 units affected) No
EIA exemptions is fast tracked through EC-DEAET and DEAT HOD’s involvement.
Ikwezi: Janesville with 667 backlog: No funding (shortfall R6.6m)
YES
DHLGTA will avail the shortfall by end Oct 07, allowing for 2 months construction
Baviaans with a shortfall of R6.01million for the bulk 3 projects

15. Situational Analysis Cacadu DM
KEY CHALLENGES
SOLUTIONS
Nelson Mandela Bay M: 93 units under construction
YES
Upscale the current construction pace at least 4 times.
Kou-Kamma: 100 at tender stage and 26 at construction No
Business unusual approach by short-circuiting SCM processes
Sunday’s River Valley: 17 top-structure completed Bulk under construction
Funding available, need to upscale the construction of bulk connector
Blue Crane Route: 612 Units: Khanyiso construction (429 units) experiencing hard rock
Funding available, Rope-in other departments to provide machinery to avoid possible financial escalations

16. Conclusion
A higher level (Chief Directorate / DDG) forum has been established with all affected sector departments, in ensuring that there is optimal resourcing of the BEP and integration thereof.
Linked to the forum is the Mayor/ Municipal Managers of the WSAs forum, that should sit fortnightly to monitor progress on the ground
The Forum will also streamline Hands-On Support initiatives and ensure that DHLGTA strengthens its coordination role and WSAs capacity needs are prioritised.
A Provincial Communication Strategy has also been developed, to ensure that, achievements, best practices are communicated to all stakeholders
DHLGTA collaboration with EC-DWAF, and other sectors DHLGTA is committed in ensuring that bucket system in the Eastern Cape is eradicated within the set national target.

17. Thank You