1. ADD NAME/TITLE HERE
Rural Household Infrastructure Programme Presentation to:
Human Settlements Portfolio Committee by
Chief Director: Ms Tamie Mpotulo : 16 February 2011
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2. Presentation Outline Purpose
Response to issues raised in previous presentation
Background
Grants Strategic Goal
Procuring of PSP
Progress Per Province
Progress Per Municipality
Overall Challenges of the Programme
Risks
Interventions
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3. Purpose
To respond to issues raised by the Portfolio Committee during the presentation of 11 August 2010
To provide progress report on the implementation of the Rural Household Infrastructure Programme
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4. Response to issues raised
Registration of the RHIP as an Extended Public Works Programme:
- NDHS has engaged Public Works
-For project to qualify as EPWP programme they have to under go a process
Issue of office accommodation
-Public Works Dept has advertised tenders to procure office over a period of 5 years
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5. Cont.
Temporary offices in critical provinces e.g KZN have been secured mitigate use of hotels as offices.
Budget for provision of sanitation and water to schools
- A decision has been taken to centralize the school infrastructure budget to DBE. R8.2 billion has been allocated to this effect. DBE has indicated that they would need the support of the CD: National Sanitation in implementing the water and sanitation in needy schools
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6. Cont. Issue of budgeting for sanitation programme.
Water and sanitation are inter-dependent, separation of water and sanitation programmes has resulted in the duplication of functions and a huge strain on the budget.
There is no way DWA can perform its water service support to municipalities without referring to provision of sanitation as both water and sanitation are governed by the Water Services Act of 1997.
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7. Cont.
-The same sanitation function performed by DWA is also performed by the Unit transferred to NDHS, this impacts on the budget
-Critical technical engineering skills which deal with some aspects of sanitation are with DWA
- Even if NDHS would procure technical skills for sanitation there is a huge cut in the sanitation budget.
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8. Progress Report on the Implementation of Rural Household Infrastructure Programme
Background
The current government has recognised the vital need of provision of basic services to the remote rural areas.
Since 2007, the government has identified rural development as one of the country’s major priorities.
Rural development has been incorporated in government outcomes which need to be prioritised by the various Ministries.
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9. Background (cont.)
In response to the prioritization of rural development by government, National Treasury has established the Rural Household Infrastructure grant over the 2010 Medium Term Expenditure Framework (MTEF) period.
This grant is gazetted as schedule 7 administered, managed and implemented by the National Department of Human Settlements (NDHS) for the provision of on-site sanitation and water facilities (where necessary) to rural communities through NSPU.
A total of R1.2 billion has been allocated over the 2010 MTEF i.e. R100 million for 2010/11, R350 million for 2011/12 and R750 million for 2012/13.
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10. Strategic Goals
Facilitates hands-on involvement of the beneficiaries into the implementation of the programme benefitting them, so as to instil a culture of ownership towards sustainable communities.
Encourages the use of CBOs, NGOs and Public Entities to ensure the communities are trained on how to sustain and maintain the infrastructure beyond implementation.
Seeks to alleviate poverty by implementing programmes through labour intensive methods.
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11. Procuring Services of PSPs
Through open tender process NDHS has secured the services of two Service Providers i.e. the Mvula Trust and the Independent Development Trust (IDT).
In the first financial year fifty two percent (52%) of the allocation has been awarded to the IDT (with a budget of R52 million) and
Thirty six percent (36%) of the allocation has been awarded to The Mvula Trust (with a budget of R36 million) this financial year.
Twelf percent was set aside for programme/ project management
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12. Progress Per Province R100,000 26 12043 4657 1203 Province
Allocation: 2010/2011
(R’000)
Number of Benefiting Municipalities
Target Number of Toilets
Pits Constructed
As at 9 Feb 2011
Sanitation Facilities completed as at 9 Feb 2011
Eastern Cape
R18,000 5
2568
1425
562
Free State
R3,000 1
429 95
101
Limpopo
R27,000 9
3600
1674 16
Kwa-Zulu Natal 7
3675
531
309
Mpumalanga
R4,000
450
196
106
Northern Cape
400
North West
R6,000 2
800
336
109
National Programme Management
R12,000
Grand Total
R100,000 26
12043
4657
1203
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13. Progress per Municipality Province: KwaZulu Natal
WSA: Umkhanyakude DM
Municipality: Hlabisa LM
The municipality is dissatisfied with the manner in which the programme is implemented by Service Provider (IDT). It has just sent a request the Department to remove the Service Provider & its contractors
WSA: Amajuba DM
Municipalities: Dannhauser LM
155 sanitation units are complete.
Some households are encountering hard rock conditions & are unable to dig pits as required by the programme.
WSA: Sisonke DM
Municipalities: Ingwe LM
The tender for supplier of top structures closed on 4/01/2011.
Digging of pits has commenced.
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14. KZN Cont. WSA: Uthungulu DM Municipality: Nkandla LM
The IDT wants to use its own contractors to dig pits and that is challenged by local contractors and labourers.
There is also a challenge of hard rocks so much that IDT has been given an alternative village to implement
The municipality has given IDT a new village where it will construct sanitation units.
Municipality: uMlalazi LM
Construction of toilets has not commenced but IDT has given assure that it will complete work by 31 March 2011.
WSA: ILembe DM
Municipality: Ndwedwe LM
The programme started late due to observation of tendering process.
WSA: UThukela DM
Municipality: Emnambithi LM
Same as above
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15. Province-Limpopo WSA: Capricorn DM
Municipalities: Aganang LM, Blouberg LM and Lepele-Nkumpi LM
Digging of pits has commenced and 669 have been dug, 245 in Aganang LM, 168 in Blouberg LM and 256 in Lepele Nkumpi LM.
WSA: Lephalale LM
Municipality: Lephalale LM
The digging of pits has not commenced.
Disagreements on the appointment of contractors have impacted on progress. Lephalale LM insists that local labour should be used.
WSA: Waterberg DM
Municipality: Mokgalakwena LM
400 pits have been dug.
IDT has appointed a contractor who has no capacity and the contractor handed the contract to another contractor.
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16. Limpopo Cont
Mopani DM
Municipalities: Greater Giyani, Greater Tzaneen and Greater Letaba
No agreement in the manner of implementation of the programme. The DM feels it has capacity to implement the programme. IDT acknowledges and feels Department must take a decision.
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17. Limpopo Cont. Greater Sikhukhune DM Municipality: Elias Motsoaledi LM
Work has commenced about 79 pits have been dug
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18. Province-North West WSA: Madibeng LM Municipalities: Madibeng LM
251 pits have been dug and rain has impeded progress.
WSA: Moses Kotane LM
Municipalities: Moses Kotane LM
139 pits have been dug and one unit has been completed as a specimen.
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19. Province Northern Cape
WSA: Joe Morolong LM
Municipalities: Joe Morolong LM
400 pits have been dug.
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20. Province –Eastern Cape
WSA: Amathole DM
Municipalities: Amahlathi LM
314 pits have been dug.
Ground has some hard rock and beneficiaries are digging their own pits.
Municipalities: Mbhashe LM
380 pits have been dug and 210 toilets have been completed and the signing of happy letters is awaited.
Municipalities: Mnquma LM
416 pits have been dug.
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21. Province –Eastern Cape
WSA: Chris Hani DM
Municipalities: Lukhanji LM
The construction of sanitation units has not commenced. Contractors have been just appointed.
WSA: OR Tambo DM
Municipalities: Mhlontlo LM
267 pits have been dug and 109 top structures erected. Ground has some hard rock.
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22. Province –Free State WSA: Ngwathe LM Municipalities: Ngwathe LM
70 pits have been dug.
The number of units may be reduced due to travelling costs – long distances between farm households.
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23. Province-Mpumalanga WSA: Nkomazi LM Municipalities: Nkomazi LM
Digging of 113 pits has been completed and 8 toilets are completed. There were initial delays in the appointment of the contractor.
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24. Overall Challenges
Five benefiting municipalities are rejecting the appointment of certain Services Providers appointed as per approved government procurement procedures.
They insist that local contractors and Labourers be used.
One of the appointed Service Providers does not have sufficient experience in implementing sanitation projects at Municipal level.
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25. Overall Challenges (cont…)
The programme commenced very late in October 2010 as opposed to the beginning of April 2010.
During the months of December 2010 and January 2011 many projects were severely affected by excessive rainfall and flooding which have hampered construction on site in the beneficiary municipalities.
Hard rock impeded penetration
Inaccessibility of some of the benefiting households.
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26. Risks
If no recovery plan put in place immediately there is a possibility of under expenditure during the 2010/2011 financial year.
There is a possibility that only +/- 75% of the delivery target may be met within the 2010/2011 financial year.
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27. Interventions
Where benefiting municipalities are resisting the nationally appointed Service Providers, the department will enter into funding agreements with the relevant Water Services Authority to implement the programme with the hands-on support provided by department.
In cases where an appointed Service Provider has declared that it has no experience in the implementation and delivery of rural sanitation, the department should consider reviewing the scope of work in the coming financial years.
Where there is hard rock, contractors must use machinery.
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28. THANK YOU
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