1. Advancing the Upgrading of Informal Settlements in Buffalo City Metropolitan Municipality
August 2018 CS
CONSULTING

2. Background to presentation
CS Consulting appointed by NDoHS and NUSP and developed for the BCMM:
Informal settlement upgrading policy and strategy, &
32 upgrading plans
Project completed in early On 25/11/2015 Council approved the Policy & Strategy and the 32 upgrading plans
CS Consulting approached by community to find out when upgrading would start  we sent them to Municipality  community not getting clear answers  they came back to us for advise
CS Consulting therefore making the recommendations found in this presentation for how to advance implementation

3. Round 1 informal settlements
Mdantsane cluster - north
Barcelona 37
Ladies Park 41
Lonwabo 31
Mbekweni 53
Holomisa
120
Mdantsane- Masibambane 35
Mdantsane- Phola Park
150
Zola Park 1,2 and 3 97
Mahlangu
214
Mdantsane- Stofile Village 75
Mdantsane cluster - south
Andrew Mlangeni 89
Mdantsane- Khaylethu
Mdantsane-Nkomponi
172
Mdantsane- Dacawa
253
Winnie
164
Mdantsane- Daluxolo 1
111
Mdantsane-Slovo Park
280
Mdantsane-Mark Makalima 40
Scenery park cluster
Scenery Park – Phola Park
209
Scenery Park - Airport 39
Scenery Park - Eskom 79
Scenery Park - Ekuphumleni 98
Scenery Park - Manto 96
Reeston- Jevon
115
Amalinda/ Cambridge cluster
Amalinda Forest
1184
Cambridge Location
1341
KWT cluster
Bhisho-Tyutyu
465
Dimbaza South ext. 3-Phola Park 35
Zwelitsha- Ndlovini / Crossroads 65
Duncan Village cluster
Eluxolweni
701
Duncan Village- Gesini
185
Duncan Village- New Rest
250

4. Amalinda Forest

5. Eluxoloweni

6. Ndlovini

7. Barcelona

8. Daluxolo

9. Jevon

10. Community participation Mdantsane North A

11. Example of plans 1. Existing information Upgrading example
Three slides
Example map 1 – existing
Example map 2 – interventions
Example map 3 – future upgrading option/ path
1. Existing information

12. Example of plans 3. Upgrading Options Upgrading example Three slides
Example map 1 – existing
Example map 2 – interventions
Example map 3 – future upgrading option/ path
3. Upgrading Options

13. Example of plans 2. Spatial Interventions Upgrading example
Three slides
Example map 1 – existing
Example map 2 – interventions
Example map 3 – future upgrading option/ path
2. Spatial Interventions

14. Budget per Settlement BUDGET PER SETTLEMENT Settlement Toilet (R’s)
Water (R’s)
Path (R’s)
Elect (R’s)
Play park (R’s)
Total (R’s)
Scenery Park Cluster
R 2,023,297.05
R 924,880.73
R 2,433,804.72
R 5,724,000.00
R400,000.00
11,505,982,50
Amalinda/ Cambridge Cluster
R 3,853,642.96
R 1,553,044.77
R 7,959,118.80
R 22,725,000.00
R300,000.00
36,390,806.53
KWT Cluster
R 547,438.86
R 370,618.90
R 5,555,425.92
R 5,085,000.00
11,858,483,68
Mdantsane Cluster South A
R 1,667,267.19
R 791,579.97
R 2,129,580.98
R 6,417,000.00
11,305,428.14
Mdantsane Cluster South B
R 793,044.87
R 419,648.77
R 2,117,913.96
R 4,914,000.00
R200,000.00
8,444,607.60
Mdantsane Cluster North A
R 681,494.73
R 291,058.29
R 1,326,995.86
R 2,331,000.00
R100,000.00
4,730,548,88
Mdantsane Cluster North B
R 729,517.75
R 460,695.09
R 1,028,777.75
R 5,346,000.00
7,764,990.59
Duncan Village Cluster
R 912,048.08
R 420,830.93
R 950,194.56
R 10,224,000.00
12,807,073.57
 TOTAL
R 104,807,921.40

15. Upgrading approaches per settlement
No. units
stay/ shift
2 step
move
Mdantsane south A
Mdantsane- Khaylethu
150 X
Mdantsane-Nkomponi
172
Mdantsane- Daluxolo 1
111 x
Mdantsane-Slovo Park
280
Mdantsane south B
Andrew Mlangeni 89
Mdantsane- Dacawa
253
Winnie
164
Mda -Mark Makalima 40
Mdansane north A
Barcelona 37
Ladies Park 41
Lonwabo 31
Mbekweni 53
Zola Park 1,2 and 3 97
Mdantsane north B
Holomisa
120
Md- Masibambane 35
Mdantsane- Phola Park
Mahlangu
214
Mdantsane- Stofile Village 75
6974 11 12 15
Settlement
No. units
stay/ shift
2 step
move
Scenery Park
SP – Phola Park
209 X
Scenery Park - Airport 39
Scenery Park - Eskom 79
SP - Ekuphumleni 98
Scenery Park - Manto 96
Reeston- Jevon
115
Duncan Village
Amalinda Forest
1184
Cambridge Location
1341
KWT
Bhisho-Tyutyu
465
Dimbaza -Phola Park 35
Zwelitsha- Ndlovini 65
Duncan Village 
Eluxolweni
701
Duncan Village- Gesini
185 x
DV- New Rest
250

16. Informal Settlements- Current situation
The number of informal dwellings in BCMM has increased from 49 000 in to 62 000 in 2016 or at a rate of units per annum.
Informal dwellings now make up about 25% of the total number of households in the Metro
Source: Community Survey 2016

17. Growth of informal settlements over time: The case of Duncan Village: 1989 - 2013

18. Growth of informal settlements over time: Duncan Village: 1989 - 2013

21. Shacks spring up – with no control By MAMELA GOWA on May 3,
GROWING THREAT: Informal settlements continue to sprawl around BCM, causing concern over illegal electricity connections, health dangers due to no services, and more. Picture: SIBONGILE NGALWA

22. Housing demand and supply
Number of years it would take for the BCMM to address the housing backlog and anticipated future 20 year housing demand at current RDP housing delivery rates:
50 years (from Upgrading informal Settlement Strategy 2015 based on statistics available at the time)
Up to 100 years (Based on updated statistics)
See next page for statistics used

23. Statistics used Original estimate Updated estimate
Housing backlog = 55,500 (40,500 shacks + 15,000 backyard shacks)
Housing backlog = 57,000 households (BCMM BEPP 2015/6 )
Future 20 year housing need
Future housing need = 14,500 households
Future 20 year housing need = 69,000 households (80% of future projected 20 year growth assuming continuation of population growth rates )
Total backlog and future need = 71,000 households
Total backlog and future need = 126,000 households
Average number units built per year = 1,400 units (average 2007/8 to 2011/12)
Average number units built per year = 1,244 (average 2007/8 to 2014/15)
Number years to address backlog and future need = about 50 years
Number years to address backlog and future need = about 100 years

24. Outcome 8 MTSF
By 2019 provide at least 750 000 households in well located informal settlements with tenure, basic services and access to amenities.
Provision of tenure and services in well located informal settlements seen as first step in an incremental process to transform informal settlements into sustainable human settlements.
The 6,974 households in Round 1 of the 32 informal settlements form part of government’s commitments to the target of households
MTSF = Medium Term Strategic Framework

25. Urban Settlements Development Grant
The USDG provides infrastructure for municipal services and the upgrading of informal settlements in the eight metropolitan municipalities.
Outputs include but not limited to:
Increase in provision of basic services to individual poor households, specifically in informal settlements and back yards, including water, sanitation, solid waste, electricity, refuse removal, roads and access to transport
Increase in number of serviced sites in informal settlements upgrading and/or in-situ projects and green-fields and/or infill developments

26. Comments on Urban Settlement Development Grant
Supplements the capital revenues of Metros in order to support the national human settlements development programme, focusing on poor households. (Division of Revenue Bill 2016)
A minimum of 50 per cent of the USDG allocation must be spent on the provision of individual basic services to households living in informal settlements either through in-situ upgrades, relocation or integrated development projects (p. 193)
Up to three per cent of the USDG may be used to fund municipal capacity in the built environment. (p 104)

27. UISP FUNDING
The key instrument for delivery against the target is the Upgrading Informal Settlements Programme (UISP). Part 3 of the National Housing Code (2007) sets out the main objectives of the UISP as follows:
 Facilitate structured in-situ upgrading of informal settlements as opposed to relocation
Recognise and formalise the tenure rights of residents within informal settlements
Provide affordable and sustainable basic municipal engineering infrastructure, that allows for scaling up in the future
Address social and economic exclusion by focusing on community empowerment and the promotion of social and economic integration.
Build social capital through participative processes and address broader social needs of communities.

28. Informal settlement upgrading programme: Grant amounts available with effect from 1 April 2014
Phase 1
Survey, registration, participation, facilitation, dispute resolution etc.
3% of project cost
Geotechnical investigation R
Land acquisition R
Pre-Planning R
Interim engineering services R
Phase 2 and 3
Detailed town planning R
land surveying and pegging R
Contour survey
R 76.04
land survey examination fee R
Civil engineer's fee R
Site supervision fees R
permanent engineering services provision: B grade level- guideline amount R
Project Management
8% of total cost
Relocation grants
Transportations and loading costs for people and household effects R
Social service support including support for the registration of social R
benefits, school registration and other welfare support
Relocation food support to households R
Maximum cost per household R

29. Slovo Park Informal Settlement
Johannesburg High Court Judgement
22 March 2016: Case no /2014
The judgment establishes that the UISP, a crucial, pro-poor national housing policy, is binding on all Municipalities:
It shows that it is unlawful and unreasonable for any Municipality to ignore the programme.
It makes it clear than upgrading should be preferred to relocation.
It confirms that the UISP is the starting point when looking at housing developments for the residents of informal settlements.
informal-settlements-the-importance-of-the-slovo-park- judgment/#.WEk4wbJ97IU

30. Upgrading policy and strategy
Three pronged approach
A. Upgrade informal settlements
B. Develop serviced sites
C. Control land invasion

31. Status of three prongs Upgrading
Not implementing in-situ upgrading plans; focusing on relocation or ‘two-step’ to RDP houses
Develop serviced sites
Not fund raising for development of serviced sites; focusing on RDP houses
Control invasion
Existing land management policy not being implemented

32. A: PRONG 1: Upgrade informal settlements
Key activities
Get more training on upgrading informal settlements
Report back to community
Allocate/ obtain funding for and implement upgrading of 32 informal settlements
Identify and plan for round 2 informal settlements

33. Upgrading paths

34. Comments on upgrading of informal settlements
Relocation of informal settlement residents to RDP houses is not Upgrading of Informal Settlements - it is an IRDP project.
Township establishment does not have to happen when upgrading to Stage 2 of UISP - township establishment happens in Stage 3.
Stage 1: Interim planning
Stage 2: Basic services & tenure recognition
Stage 3: Detailed planning, full services & title deeds
Stage 4: Top structures (use other grants – eg. ePHP)

35. Summary of funding approach
All round 1 informal settlements (no matter which path they on – stay, 2 step or move) get basic services (using USDG funds) and basic tenure recognition (using CWP funds)
For stay/ shift - UISP stage 1&2 to do planning & put in basic services (now); & stage 3&4 build services and houses for qualifiers (later)
For 2 step – USDG to get temporary land; EHP to get temporary housing’; UISP stage 1&2 to put in basic services (now); & stage 3&4 to put in services and build houses for qualifiers (later)
For Move - USDG to get land and bulk services; IRDP part A for internal services (now); & part B for top structure (later)

36. Implementation Who applies to whom
Housing Directorate applies to Provincial Human Settlements for UISP stage 1&2 grant
For what activities
Detailed planning, township establishment, servicing
At what budget
+/- R36,000 per site
To be used where?
Informal settlements on stay/shift path

37. Examples of services Pre payment electricity Refuse collection
Communal toilet
Basic path
Public lights
Basic road
Pedestrian bridge

38. Funding immediate: Engineering services
Who applies to whom
For what
At what budget
To be used where
Engineering Dir.  USDG
Initial basic services
As per budget table
All round 1 settlements
Housing Dir.  Province for SEFG
Halls, play areas
As per budget
Identified settlements
Housing Dir.  Province for UISP (stage 1&2)
Professional fees and basic services
+R36,000/ site (for stage 1&2)
Settlements on stay/shift path
Electricity Dept. 
INEP
Pre- paid electricity per house
+/- R

39. Funding immediate: Capacity, planning, land, etc
Who applies to whom
For what
At what budget
To be used where
Planning Dir  NUSP
Training in upgrading
TBD
For Councillors and officials in BCMM
Housing Dir.  CWP
Community workers to do shack counts
At rate determined by CWP
All round 1 informal settlements
Land Admin  USDG
Land purchase
As negotiated per land parcel
Land as determined by planning dept for 1) stay/shift & 2) move settlements
Housing Dir.  (National Treasury) Capacity building or (Province) accreditation
Upgrading informal settlement manager
Integrated national electrification Programme (Municipal) grant
To manage all upgrading initiatives
Planning Dir.  NUSP
Planning for round 2 upgrading
About R100,000/ settlement
For planning of round 2 settlements

40. Funding future Who applies to whom For what At what budget
To be used where
Housing Dir.  Province for UISP (stage 2&3)
Full services and top structure
R110,000/site (plus remainder of stage 2)
Households in stay/shift settlements that qualify
Housing Dir.  Province EHP
Temporary services and accommodation
As determined by EHP
In TRA’s for settlements on 2 step path
Housing Dir.  Province for IRDP
Part A: planning and services
Part B: top structures
Part A: R43,000/site
Part B: R110,000/site
New land for settlements on move path

41. PRONG 2: Develop serviced sites
Key Activities
Develop programme to identify land for where to develop (semi) serviced sites (or MLS projects)
Obtain funds for and implement pilot projects

42. C: PRONG 3: Control unauthorised land occupation
Key activities
Implement existing land management strategy (start with establishing rapid response team)
Review and update the land management strategy

43. Implementation coordination
The Human Settlements department (led by the upgrading of informal settlements unit) will take the lead in driving the upgrading of informal settlements programme within the Metro as a whole.
Each department will also designate an incremental settlement champion to drive and coordinate any upgrading activities within that department.
BCMM Upgrading Informal Settlement Policy and Strategy, p51

44. Community management Informal settlement committee x 32
Informal settlement cluster committee (& engages with relevant ward committees) = 2 people per settlement
Round 1 informal settlement steering committee = people drawn from 6 clusters + municipal coordinating committee

45. Summary Top 10 priority next steps (a)
Spatial Planning & Development Directorate to apply to NUSP to train Councillors and officials on IS upgrading
Spatial Planning & Development Directorate to report back to cluster committees
Housing Directorate to either 1) use USDG, or 2) apply to accreditation grant from Province for funds for Informal Settlement Upgrading Manager
Sector Depts apply for funds - as outlined in sections above (mainly from USDG) - to install basic services
Housing Directorate to apply for UISP funds stage 1&2 for stay/shift & 2-step settlements

46. Summary Top 10 priority next steps (b)
Spatial Planning & Development Directorate (Land Admin) to identify and acquire land (using USDG funds) for 2-step & move settlements
Housing Directorate to apply for CWP to conduct socio- economic survey of round 1 (and maybe other) informal settlements) and develop recognition of occupation strategy
Spatial Planning & Development Directorate to apply to NUSP to plan ‘Round 2’ settlements
Spatial Planning & Development Directorate to develop feasibility plans for MLS pilot projects [to address prong 2]
Housing Directorate to implement (and work to modify) land management strategy [to address prong 3]

47. Summary of the Summary
Implement upgrading plans for round 1 informal settlements
Continue to plan for the upgrading of further round 2 informal settlements
Develop and allocate people to new planned (semi) serviced sites

48. Change the narrative ‘government gives people a RDP house’
Change the story we tell ourselves from:
‘government gives people a RDP house’
to a new story where :
‘government gives people a start and
supports people to help themselves’
Start = basic services and tenure recognition
Support = development support and upgrading

49. CS CONSULTING Thanks Craig Sam 043 7211850 craig@csamconsulting.co.za
Ronald Eglin CS
CONSULTING