1. Recovery Plan 2017/18 Financial Year: Status Report to Parliament presented by DG
NORTH WEST PROVINCE
13 November 2017

2. Contents Background Performance Recovery Plan Way-forward
Challenges
Shortage of Beneficiaries
Budget allocation
Performance
Expenditure Summary
Delivery Summary
Recovery Plan
Strategy for recovery
Status of infrastructure projects
Special Intervention: 21 Elders
Way-forward
Recovery implementation
Cessions concluded
Key interventions

3. Background
Challenges;
Shortage of beneficiaries
Budget allocation

4. Challenges Housing delivery slower than planned due to the following
Poor performance by contractors and developers.
Lack of serviced sites from Municipalities. As a result the Department has to plan and provide serviced sites.
Shortage of beneficiaries from Municipalities.
Projects for site and services did not deliver service sites as anticipated.
Community unrests and volatile areas.
Municipalities do not have functioning SPLUMA Tribunals:
This delays the Township establishment for new projects;
Negative impact on installation of infrastructure;
Construction of top structures put on hold; and
Also affects Title Restoration Project.

5. Challenges (contd)
Province is predominantly dolomitic and developing on such areas is expensive– about 67% of the province has this conditions which is not costed prior to implementation and it takes time.
Other key projects experienced demonstrations/protest action for instance in
Rustenburg – Bokamoso and Matlosana Alabama Ext 4 & 5.
H3 clay conditions need additional funds for the relevant design and rock-infested areas pose a challenge.
Projects in volatile areas
Implementation of projects not ready – poorly planned projects as a legacy of tranche projects.
Old historical projects
Poor performance of projects

6. Summary: Shortage of beneficiaries per municipality.
Beneficiaries Allocated
Approvals
Shortage
Kgetlengrivier Total
957
946 11
Madibeng Total
2045
1368
677
Moretele Total
600
315
285
Moses Kotane Total
1900
1793
107
Rustenburg Total
7741
3980
3761
Bojanala Total
13243
8402
4841
Maquassi Hills Total
654
631 23
Matlosana Total
6621
4712
1909
Tlokwe/Ventersdorp Total
5760
2749
3011
Dr KK Total
13035
8092
4943
Greater Taung Total
3575
3516 59
Kagisano-Molopo Total
3423
2875
548
Lekwa-Teemane Total
5260
3344
1916
Mamusa Total
1114
489
625
Naledi Total
591
589 2
DR RSM Total
13963
10813
3150
Ditsobotla Total
3948
3857 91
Mahikeng Total
4367
4229
138
Ramotshere Moiloa Total
1644
1195
449
Ratlou Total
2484
1731
753
Tswaing Total
1408
1284
124
NMM Total
13851
12296
1555
GRAND TOTAL
54092
39603
14489

7. Shortage of beneficiaries: Remedial action
Political intervention by with Mayors where projects are affected by lack of beneficiaries.
Deploy Departmental team to projects to fast track subsidy applications.
Target approved beneficiaries on HSS that have not been assisted.
Substitution of approved beneficiaries from older blocked projects to current projects where beneficiaries cannot be located.
Training of officials from Municipalities for the National Housing Needs Register (NHNR) completed.
Implementation of NHNR in progress.

8. Budget Allocation Approved allocation R 2 186 679 260 Roll over
Total
R  260

9. Performance
Expenditure Summary
Delivery Summary
Status of infrastructure projects

10. ACTUAL EXPENDITURE AND REVISED CASH-FLOW PROJECTIONS
Expenditure Summary
ACTUAL EXPENDITURE AND REVISED CASH-FLOW PROJECTIONS
Months
Original Cash Flow
Actual Expenditure
Revised Cash Flow
Variance
April R R R
May R R R R
June R R R R
July R R R
August R R R R
September R R R R
October R R R R
November R R R
December R R
January R R
February R R
March R R
Total R R R R
The revised cash flow is the actual expenditure for the first six months and the remaining six months includes original plus recovery.
The variance for October is calculated on the revised amount.

11. Expenditure Summary: Graph

12. Delivery Summary per month
QUARTER MONTH
SITES
UNITS
PLAN.
Rev Plan
Actual Q1
1260
3066
882
Apr
392
896
154
May
420
1023
229
Jun
448
1147
499 Q2
1455
975
3565
1721
Jul
497
1158
301
Aug
483
1216
168
Sep
475
1191
1252 Q3
1313
1621
1726
3017
5053
879
Oct
461
466
310
1075
1804
768
Nov
440
743
1039
1740
111
Dec
412
674
903
1508 Q4
1221
2082
2970
4962
Jan
414
658
828
1394
Feb
411
697
967
1628
Mar
396
727
1175
1941
Total
5249
3817
7625
12618
3482
The delivery stats above excludes the CRU in Mafikeng, Matlosana and Moses Kotane.
300
Rooigrond
The units are at practical completion stage but not handed over due to the lack bulk services. The Department has approved funds and good progress had been recorded in the installation of the bulk.
436
Tswaing
998
Grand Total
5216

13. Delivery Summary per month: Graph
Sites
Units

14. Recovery Plan
Strategy for recovery
Status of infrastructure projects
Special Intervention: 21 Elders

15. Strategy For Recovery
Continue to target incomplete structures for completion.
Poor performing contractors will only be allowed to complete their incomplete structures and the balance of the subsidies to be allocated to capable contractors .
Intensify project management with special emphasis on:
Rescheduling of expenditure and delivery from non performing projects;
Placing non and under performing contractors on terms;
Facilitate ceding of contracts from under performing contractors to contractors with capacity;
Facilitate cessions with material suppliers.
Project and programme management has been enhanced with the secondment of officials from other units.

16. Strategy For Recovery (contd)
Military veterans
Contractor has been appointed for 84 units in Ramotshere Moiloa and Mahikeng;
Incorporate remainder into existing contracts nearby.
Unlocking delivery in blocked projects:
The professional service provider (PMU) has been tasked to conduct an audit and quantification of completion of blocked projects;
The projects will be consolidated and closed at the number of units last delivered;
Consolidate unused subsidies into one project per region called “Blocked Projects Programme”; and
Appoint reputable contractor/s who is able to deliver at scale per region.
Serviced Stands:
Fast track top structure construction on serviced land as per infrastructure projects (see next slide).

17. Status of infrastructure projects
Mamusa
Glaudina: 310 sites have been servicesd and handed to municipality.
310
Matlosana
Alabama Ext 5: Contractor is on site and is expected to complete by end of February 2018.
2255
Rustenburg
Bokamoso: Work on site is completed. Close out is being finalised to be reported in November 2017
458
Naledi
Stella: Appointment is being finalised. Expected delivery by end of March 2018.
600
Catalytic Project: services are being installed on 1000 sites.
1000
Total
4623

18. Way-forward
Recovery implementation
Cessions concluded
Key interventions

19. Recovery Implementation
Intensive interaction with the developers and contractors per region led by Hon MEC and HOD.
Regional Directors convene status and progress meeting with contractors every Monday.
Departmental Management report to Principals every Tuesday.
Revised delivery schedules concluded with contractors.
Non performing contractors placed on terms.
Some non performing contractors ceded contracts to contractors with capacity.
Additional bid committee sittings over and above scheduled sittings in place.
Political intervention by with Mayors where projects are affected by lack of beneficiaries.

20. Cessions Concluded Cessions Concluded No From To 1 Thumo Gape
Rekhuditse 2
Fikile
Tirhani Construction 3
Renanao
Build It (Vryburg) 4
Siyanda
Agang Trading 5
OPT Lerato Trading
Cape Gannet 6
White Leopard
Blue moon 7
Ntepang Trading
Tigane Developers 8
Seboifeng
Moleah Construction 9
Pace Setters
Kent Civils 10
Tholo Holdings
Marabe 11
Sun success
Delcarn cc t/a Rock Building Suppliers

21. Key Interventions
Intensify monitoring of the revised delivery schedules.
The developing trends in the delivery and expenditure statistics for September must be maintained and improved upon for October and November.
Need to capitalise on the normal peak that is expected during November to enhance performance.
Intervention team to intensify monitoring of milestones per stand to achieve targeted delivery.
Contractors with capacity to accelerate delivery.
All new projects that are in planning are to be correctly packaged, (ie town planning design, surveyor general approval, deeds register, engineering designs, etc) so that no delays are experienced when a contractor is appointed to build houses
Standardised house plans and foundation designs to be implemented.
Identify and implement innovative alternate solutions to challenges, obstacles and bottlenecks.

22. Key Interventions: Projects with a potential to deliver
Stella 700 sites to be serviced – which is a quick process to install internal services infrastructure with machinery
Coligny 500 sites to be serviced
Mafikeng Rooigrond 1000 top structures – to enable reporting on non-financials when bulk infrastructure is commissioned
Rustenburg Bokamoso – 4 contractors with capacity to develop a combined 1330 units are being relocated to ready areas i.e. Madibeng, Moses Kotane villages and Kgetleng Derby and Borolelo which are still under mining towns and will not reduce figures under this programme. The entire costing is R171m including standard geotechnical allowance.
Alabama Ext 5 (2255) internal services – issues resolved and contractor is on site working.
Alabama Ext 4 (948) top structure contractor is taking site to construct houses.

23. Key Intervention: 21 Elders
The project was approved in 2008 to be implemented by the Municipality via the tranche funding method.
When the project was taken back by the Department there were 34 elderly beneficiaries who had not benefited.
The Municipality lodged a request to have these 34 houses constructed for them, expenditure was incurred under the tranche payment against these 34 beneficiaries and there were no geotechnical investigations conducted in the areas they were residing.
For these beneficiaries to benefit, the Municipality was required to sign an acknowledgement of debt letter.
The acknowledgement of debt was not communicated resulting in unfortunate delay. During this period 13 of the 34 elderly had passed on. Only 21 are remaining.
The Department has appointed Ikaheng Developers to build these 21 units. We anticipate that all 21 units will be completed by December 2017.
Fourteen beneficiaries are approved and the foundations are being constructed.
The remaining 7 will be approved within the week.

24. THANK YOU!