1. Overview Of The Strategic And Annual Performance Plans 2013/14 – 15/16 Mr. T. Zulu Director-General

2. VISION “A NATION HOUSED IN SUSTAINABLE HUMAN SETLLEMENTS “ MISSION “ TO FACILITATE THE CREATION OF SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE”

3. Content Strategic Overview of the Department – 2013/16 Values
Budget Structure of the Department
Human Settlements Priorities
Performance Indicators and Targets
Financial Information
Key Risks And Challenges

4. Strategic Overview
The Department implemented the approved turnaround strategy with effect from 01st April 2012.
An organogram was approved by DPSA with effect from 01st April and a process on migration of staff and personnel has been completed.
The National Treasury approved a revised budget structure which is consistent with the strategic plan but not the organisational structure.
A key issue intended to receive priority is the matter of alignment of the strategies with plans, budget and performance.

5. Strategic Overview
A process will also unfold to further refine strategies and alignment to national development goals and priorities and this includes matters related to policy and strategic infrastructure development.
A key issue to receive attention is the alignment of roles, responsibilities, obligations and accountability for the household sanitation function.
The year will also require term reports to be completed and this includes Outcome 8 as well as the 20 year review of government

6. Strategic Overview
The material and key performance indicators, outputs and outcomes as contained in Outcome 8 and the objectives in the Estimates of National Estimates (ENE) receive priority focus in the strategic and annual performance plans of the Department.
The Department will use the 2013/14 financial year as one that imbeds the National Development Plan in respect of strategy, policy and operations for sector and institutional transformation and implementation.
The targets as contained in the Delivery Agreement signed between the Minister and the President also form a key basis of the strategic focus areas of planning, funding and implementation.

7. STRATEGIC OVERVIEW
The following are key programme and projects activities for the period head:
The implementation of the revised FLiSP programme.
Implementation of the management of the Rectification Programme by the Department.
Focus on the accreditation programme
Improving on the social and rental housing units delivered.
Better and improved intergovernmental collaboration and coordination.

8. Strategic Overview
Special and designated group and sector focused programmes including “Youth Builds”, “Womens’ Builds” and the “Each One, Settle One” programmes are to be up scaled and planning and funding improved.
Better and improved output and target monitoring including quality and value for money through the Programme Management Unit is envisaged.

9. Values
The core values of the Department based on the Constitution include :
Accountability
Fairness and equity
Choice, quality and affordability
Sustainability
Innovation as well as adherence to;
Batho Pele principles.

10. DEPARTMENTAL ORGANOGRAM

11. DIRECTOR-GENERAL Mr T Zulu
CD: INTERNAL AUDIT, RISK MANAGEMENT AND SPECIAL INVESTIGATION
Mr. T. Mashabane (Act)
CD: EXECUTIVE SUPPORT
Mr. S.S. Nkosi
DIRECTOR-GENERAL
Mr T Zulu
DDG: Chief
Financial Officer
Ms F Matlatsi
DDG: HS
Strategy
&
Planning
Mr N Chainee
DDG: HS
Delivery
Frameworks
Mr M Maphisa
DDG: Project
Management
Unit (PMU)
Mr J Wallis (Act)
DDG:
Corporate
Services
Ms N
Letsholonyane
DDG: Chief Of
Operations
Ms. S. Ngxongo
CD: Operational
Policy Frameworks
Mr L vd Walt (Act)
CD: Enterprise
Architecture
Mr M Moerane
CD: Chief Investment Officer
Mr M Hitge (Act)
CD: Programme & Project Planning
Ms J Bayat
CD: Corporate Support
Mr E Sithole
CD: HS
Strategy
Dr Z Sokopo
CD: CIO
Mr M Xaba
CD: Technical Capacity
Development
Mr M Maclean
CD: Governance Frameworks
Mr G Khathi (Act)
CD: HS
Planning
Mr A Arendse
CD: Financial Management
Mr N Mbengo
CD: Programme Implementation Facilitation
Mr J Wallis
CD: Regulatory
Compliance
Services
CD: Human Resources
Ms. M. Snyman
CD: Advisory Services
Mr L Jolobe
CD: Stakeholder Relations & Intergovernmental
Mr W Jiyana
CD: Programme Monitoring & Evaluation
Mr P Chauke
CD: Legal
Services
Adv J Tladi
CD:
Sanitation
Programme
Mr P Chauke (Act)
CD:
Communications
Services
Mr X Xundu

12. Budget Programme Structure
Programme 1: Administration.
Purpose: Provide strategic leadership and administrative support services to the department
Programme 2: Human Settlements Policy, Strategy and Planning.
Purpose: Manage the development and compliance with human settlements sector delivery frameworks and oversee integrated human settlements strategic and planning services.

13. Budget Programme Structure
Programme 3: Programme Deliver Support.
Purpose: Support the execution of human settlement programmes and projects and oversee the implementation of the household sanitation programme
Programme 4: Housing Development Finance
Purpose: Fund and monitor the delivery of all housing and human settlements programmes, including oversight of public entities reporting to the Minister of Human Settlements and manage all matters related to improving access to housing finance and developing partnerships with the financial sector.

14. Human Settlement Priorities
1. Accelerated delivery of housing opportunities
Upgrading of 400 households in Informal Settlements
2. Access to basic services
Affordable Rental Housing Stock
units p.a.
3. More efficient land utilisation
National Bulk Infrastructure Programme and Increased Access to Basic Services
Acquisition of 6250 ha state owned land
4. Improved Property Market
Supply of Affordable Housing Finance
to households
Draft, Confidential & Not for Publication

15. Performance Indicators and Targets 2013/14

16. Key Performance Indicators Outcome to which it contributes
Programme
Outcome to which it contributes
Past
Current
Projected
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
Number of additional municipalities assessed for accreditation level 2 per year
Human Settlements Policy, Strategy and Planning
Outcome 8: Sustainable human settlements and improved quality of household life - 6 10 5 5 
Total number of municipalities provided with technical assistance for informal settlement upgrading per year
Housing Development Finance 20 49
Number of additional residential units completed per year
161,854
121,879
120,610
72,223
132,705
138,540
137,898
Number of additional sites serviced per year (green fields)
64,362
63,546
58,587 
26,308
77,248
81,883
85,568
Draft, Confidential & Not for Publication

17. Key Performance Indicators Outcome to which it contributes
Programme
Outcome to which it contributes
Past
Current
Projected
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
Number of additional households upgraded in well-located informal settlements with access to secure tenure and basic services per year (Brownfields)
Housing Development Finance -
52,383
66,639
22,460
62,752
66,517
69,510
Number of additional hectares of land prepared for human settlements development per year
Outcome 8: Sustainable human settlements and improved quality of household life
4,945
2,000
Number of additional loans granted in the affordable housing segment per year
47,616
69,576
69,970
63,798
62,344
67,527
Number of additional households provided with on-site sanitation in rural areas per year 
Rural Household Infrastructure Programme
11,652
19,225
5,818
11,858
12,296
12,588
Draft, Confidential & Not for Publication

18. Financial Information

19. 2013 MTEF Allocation Programme Medium term estimates 2013/14 2014/15
Programme
Medium term estimates
2013/14
2014/15
2015/16
Administration
422,399
426,948
445,106
Human Settlements Policy, Strategy and Planning
84,055
89,301
92,967
Programme Delivery Support
226,922
239,335
251,305
Housing Development Finance
27,377,087
29,450,583
31,957,214
Total
28,110,463
30,206,167
32,746,592

21. Transfer payments Programme Medium term estimates 2013/14 2014/15
Programme
Medium term estimates
2013/14
2014/15
2015/16
Human Settlements Development Grant
16,983,872
17,918,321
19,667,204
Urban Settlements Development Grant
9,076,906
10,334,684
10,699,773
Rural Households Infrastructure Grant
106,721
113,124
118,328
Housing Development Agency
97,497
National Urban Reconstruction and Housing Agency
100,000
Social Housing Regulatory Authority: Operational
32,151
33,480
35,020
Social Housing Regulatory Authority: Capital restructuring grant
904,103
867,543
1,248,400
Total
27,301,250
29,364,649
31,866,222

22. Human Settlements Development Grant Provincial Allocations

23. Human Settlements Development Grant
Goal - The creation of sustainable human settlements that enables an improved quality of household life
Purpose - To provide funding for the creation of sustainable human settlements
Outcome 8 - Facilitation and Provision of Access to Basic Infrastructure, Top Structures and Basic Socio Economic Amenities that contribute to the creation of sustainable human settlements
Improved rates of employment and skills development in the delivery of infrastructure

24. National Priority Programme Allocations
Province
Town
2013/14
2014/15
2015/16
EASTERN CAPE
Duncan Village
109,767
117,881
129,386
GAUTENG
Lufhereng
182,944
196,468
215,644
Diepsloot
91,472
98,234
107,822
Sweetwaters
45,736
49,117
53,911
Khutsong
96,046
103,146
113,213
Sub Total
416,198
446,965
490,590
KWAZULU-NATAL
Cornubia
120,743
129,669
142,325
LIMPOPO
Lephalale
291,651
313,211
343,781
WESTERN CAPE
Drommedaris
62,736
67,374
73,950
Total
1,001,095
1,075,099
1,180,032

25. 20% Allocation to Specific Outcome Targets
2013/14
Province
Upgrading of Informal Settlements
Rental and Social Housing
Land acquisition
National Priority Programme
EASTERN CAPE
145,778
170,074
24,296
109,767
FREE STATE
62,861
73,338
10,477 -
GAUTENG
246,500
287,584
41,083
416,198
KWAZULU-NATAL
191,022
222,860
31,837
120,743
LIMPOPO
77,345
90,235
12,891
291,651
MPUMALANGA
67,424
78,661
11,237
NORTHERN CAPE
22,712
26,497
3,785
NORTH WEST
71,894
83,876
11,982
WESTERN CAPE
115,558
134,818
19,260
62,736
Total
1,001,095
1,167,944
166,849

26. HSDG Allocations to Metropolitan Councils
Provinces
Metropolitan
2013/14
2014/15
2015/16
EASTERN CAPE
Nelson Mandela
206,900
220,800
242,351
GAUTENG
Ekurhuleni
933,800
996,600
1,093,871
Jo'burg
1,314,000
1,403,000
1,539,937
Tshwane
788,600
841,700
923,852
Sub Total
3,036,400
3,241,300
3,557,661
KWAZULU-NATAL
eThekwini
878,400
937,600
1,029,113
WESTERN CAPE
Cape Town
733,484
782,870
859,280
Grant Total
4,855,184
5,182,570
5,688,405

27. Credit Linked Individual Subsidy Programme:
Free State, North West and Western Cape to implement the Programme;
Financed Linked Individual Subsidy Programme:
R239 million to be spent on the FLISP programme in Provinces and beneficiaries to benefit;
Rectification Programme
Plans to spend R686 million in all Provinces in 2013/14;
Accreditation support to municipalities:
R93 million to be spent on this Programme in Provinces except for Gauteng and Western Cape;

28. Rental and Social Housing:
Blocked projects:
R184 million planned to be spent to unblock projects in Eastern Cape, Free State and North West;
Land Parcels;
Provinces to procure land to the value of R278 million;
Rental and Social Housing:
Provinces plan to delivery units amounting to R1.6 billion;

29. Incremental Housing Programmes:
Includes Informal Settlements Upgrading and Provinces plan to deliver housing units and serviced sites valued at R8.6 billion;
Rural Housing Programme:
The Programme has been allocated R2.7 billion by Eastern Cape, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape and North West.

30. Current Challenges
Lack of bulk and link infrastructure and related funding to implement projects;
Delays in the planning of supply chain management;
Lack of technical capacity at provinces and municipalities;
Poor in the alignment, cooperation and coordination of strategic objectives and programmes of Provinces, Municipalities and Entities
Inadequate medium and long term pipeline planning for programmes and projects;
Deficiencies in data management and integrity.

31. Interventions
Provinces and Municipalities to align all grants to ensure bulk infrastructure is in place before implementation of programmes and projects;
Provinces and Municipalities must develop and align programme and procurement plans
Feasibilties to ensure programme and project readiness.
Programme Management Units to be established and prioritised.
Provinces to utilise the HSS to administer and report on all human settlements delivery programme and processes.

32. Measures Undertaken by DHS
Provincial Business plans for 2013/14 have been received and analysed by the DHS.
The 2013/14 Allocation letters sent to Provinces to allow for programme and project planning
From 28 February to 1 March – 3rd Quarter Mid Term reviews were conducted with Provinces and Council on Performance, Spending and Planning for 2013/14
DHS commented on 2013 DoRA Bill including Grant Frameworks.

33. Urban Settlements Development Grant
Grant Purpose:
To improve the efficiency and coordination of investments in the built environment through:
Providing large municipalities with appropriate resources and control over the selection and pursuit of investment programmes in the built environment;
USDG is an instrument for Metropolitan Council to address linkages between public housing and economic growth to simultaneously and contribute to Human Settlements Outcomes

34. USDG - Objectives
USDG intends to integrate the release of well located land to the function of planning and funding of the built environment;
Encourage cities to be proactive developers of infrastructure on well located land by mobilizing domestic capital;
Compel improvement in development planning and also improve inter-governmental co-ordination (all 3 spheres) of development.

35. USDG - Objectives
Introduced to address:
Problems of inadequate control and management of investment in the built environment;
Inadequate coordination of planning and weak accountability of all role players; and
Focus on the development of urban land and infrastructure that is intended to the lay the foundation for local municipalities to gradually assume a greater role in managing built environment investments

36. USDG Allocations to Metropolitan Councils
Provinces
Metros
2013/14
2014/15
2015/16
EASTERN CAPE
Buffalo City
613,305
698,290
722,958
Nelson Mandela
727,986
828,863
858,144
Sub Total
1,341,291
1,527,152
1,581,102
FREE STATE
Mangaung
596,719
679,406
703,407
GAUTENG
Ekurhuleni
1,584,912
1,804,532
1,868,280
Jo'burg
1,488,877
1,695,189
1,755,074
Tshwane
1,290,611
1,469,450
1,521,361
4,364,400
4,969,171
5,144,715
KWAZULU-NATAL
eThekwini
1,580,999
1,800,076
1,863,667
WESTERN CAPE
Cape Town
1,193,497
1,358,879
1,406,883
Grant Total
9,076,906
10,334,684
10,699,773

37. USDG Delivery Performance37

38. Challenges
Lack of Coordination and alignment experienced within Metros that causes poor service delivery coordination for USDG;
Lack of capacity to carry out programme plans;
Critical vacancies and consistency of personnel managing the USDG;
Land acquisition challenges and limited land in close proximity to the city centre;

39. Multi-year projects are budgeted for in one financial year due to inadequate planning of projects;
Lengthy procurement processes;
Legal challenges - Tenders being contested in court for major projects;
Management and governance of informal settlements;

40. Interventions
Improving the alignment and coordination in implementation of the USDG;
Capacity constraints to be addressed through the Cities Support Programme established by National Treasury;
Metropolitan Municipalities encouraged to appoint officials on a full time;
Land acquisition management to be improved with the assistance of the Housing Development Agency;

41. Conducting of project readiness and attached list of projects as addendum to Performance Matrix;
Councils to develop a programme plans aligned to procurement plans
National and Provincial support for land acquisition, informal settlement upgrading and policy formulation to support council implementation

42. Support Processes In Place
The Department has developed and presented a turnaround strategy to improve spending for the Councils’ and presented to Technical MinMec, Portfolio Committee on Human Settlements etc.
Performance Matrix developed that addresses human settlements related issues
Consulted with National Treasury to incorporate the matrix in the Service Delivery Business and Implementation Plan (SDBIP) reporting template so as to have one single reporting template
Support to be provided through the National City Support Programme (CSP) to the Metros with capacity constraints.

43. Support Processes In Place
The Department has the following systems in place for monitoring the implementation of the USDG:
Quarterly oversight visits are planned with all Councils to monitor progress and to address challenges.
Quarterly reviews are conducted with Metros.
Monthly Expenditure Analysis and Quarterly feedback to individual metros.
Regular reviews and programme and policy support with Sector Department to Councils – City Budget Forum, Outcome 9, NUSP and Accreditation .

44. Rural Households Infrastructure Grant
The purpose of the Grant is to provide capital funding for the reduction of rural water and sanitation backlogs and to target existing households where bulk dependent services are not available.
The grant was initiated as a schedule 7 grant in the 2010/11 financial year and amounted to R1.2 billion.
The grant has allowed for Household to have been served with basic sanitation since its inception in 2010.

45. The schedule of the grant has changed from schedule 7 to 5b with effect from 2013/14.
The Grant will be implemented by municipalities with the support of the Department
For the next three years the grant allocation is as follows:
2013/14: R106 million
2014/15: R113 million and
2015/16: R118 million.

46. RHIG Allocation per Municipality
Eastern Cape
2013(R’000)
2014/15(R’000)
2015/16 (R’000)
Mbhashe
4 500
4 528
Mnquma
4 000
Engcobo
4 511
Elundini
King Sabata Dalindyebo
Matatiela
Total Eastern Cape
25 011
27 000
20 528
Free State
2013/14 (R’000)
2014/15(R’000)
2015/16 (R’000)
Maluti a Phofung
4 000
4 500
5 000
Total Free State

47. RHIG Allocation per Municipality
KWAZULU-NATAL
2013/14 (R’000)
2014/15 (R’000)
2015/16 (R’000)
Umzumbe
4 000
4 500
5 000
Umnambithi/ladysmith
4 124
Umvoti
Dannhouser
Nongoma
Jozini
Umhlathuze
Umlalazi
Ndwedwe
Umzimkhulu
Total -KwaZulu- Natal
40 500
42 624
49 000

48. RHIG Allocation per Municipality .
LIMPOPO
2013/14 (R’000)
2014/15 (R’000)
2015/16 (R’000)
Great Giyane
4 500
4 000
5 000
Great Tzaneen
Thulamela
Lepel- Nkumpi
Great Tubatse
Total Limpopo
20 500
22 000
23 000
MPUMALANGA
2013/14 (R’000)
2014/15 (R’000)
2015/16 (R’000)
Nkomazi
4 500
4 000
Total Mpumalanga

49. RHIG Allocation per Municipality
NORTHERN CAPE
2013/14 (R’000)
2014/15 (R’000)
2015/16 (R’000)
Ga- Segonyana
4 210
4 500
4 000
Total Northern Cape
NORHT WEST
2013/14 (R’000)
2014/15 (R’000)
2015/16 (R’000)
Ratlou
4 000
4 500
Greater Taung
Total North West
8 000
9 000
National Total

50. Departmental Support To Municipalities
The Department will support municipalities in the following manner:
approve the business plans submitted by municipalities;
Continuously monitor implementation and provide support to municipalities;
Submit monthly financial and quarterly non- financial reports to National Treasury;
Submit an annual evaluation report after the end of the financial year; and
Prepare a payment schedule for the transfer of the grant to municipalities.

51. The Department is in the process of filling vacant posts at regional offices in order to provide support.
Monitoring and reporting processes and schedules are being developed to report on financial and non-financial progress

52. Thank you