1. EASTERN CAPE HOUSING DELIVERY
REVIEW FOR THE FIRST 9 MONTHS OF THE 2006/07 FINANCIAL YEAR

2. PRESENTATION OVERVIEW
FINANCIAL & NON-FINANCIAL DELIVERY OUTPUTS
IDENTIFIED PERFORMANCE CONSTRANTS
Strategic,
with the related
Operational impacts
REMEDIAL INTERVENTIONS: THE PARADIGM SHIFT …
UPDATE ON INTERVENTIONS UNDERTAKEN
CONCLUSION

4. EXPENDITURE vs CASH FLOW FORECAST IN DISTRICT ORDER

5. NON-FINANCIALS…

6. OUTPUTS FOR THE 1ST 9 MONTHS
Number of emergent contr
Jobs created
Houses completed
Subsidies approved
Title Deeds transferred
Municipalities accredited (in process) 2
Disaster housing assistance 100

7. NEGATIVE FACTORS INFLUENCING HOUSING DELIVERY.
STRATEGIC CONSIDERATIONS…
The challenges facing E/Cape housing delivery must be seen against the following strategic approaches, initially undertaken for developmental reasons:
Use of PHP delivery vehicle – (60% of E.C. projects are PHP) (slow delivery due to layered coordination & communication processes)
Majority of Developers are Municipalities
Use of Emerging Contractors
40 sq.m. size unit on 30sq.m National Norm
Allocation – (Unfunded extra 10m²)
The negative impact of these factors has been building up over the years to what is now possibly the highest point

8. HOUSING RECOVERY INTERVENTIONS
Departmental take-over of some of the
unblocked projects which are slow-moving
through engagement of Established
Contractors inclusive of Thubelisha
Addresses twin-problem of Municipal and Emerging Contractor capacity shortfalls
The involvement Established Contractors allows for a number of advantages:
Speedier Procurement Processes
Bulk material purchases
Sourcing of additional resources to reinforce existing construction teams

9. HOUSING RECOVERY INTERVENTIONS (ROLE OF ESTABLISHED CONTRACTORS)
The Established Contractors are performing
the normal contractor role, inclusive of:
Execution of Construction Works to Scope, Budget, Spec, Schedule (Penalty clauses to be enforced)
Materials and labour procurement
Site Management ; Handover of Works
Key Ingredient
Embracing emerging contractors in order to mentor them to graduate to higher skills & expertise levels within requirements of allocating projects to them in accordance with requisite capacity

10. PROGRESS TODATE
A fast-tracked procurement process affecting a total of 18 projects ( combined value R433m) will ensure on-site activity early in March
Projects in new financial year are being packaged for execution through Established Contractors.
A quantum leap in provincial delivery is envisaged

11. CONCLUSION
1. The Department is confident that the dominant elements of the delivery under-performance problem have now been exposed, and are being dealt with in a meaningful way.
2. Even though the paradigm shift and strategic
intervention currently embarked on will only begin to take effect at the tail-end of current financial year, a solid basis has been laid for higher-level delivery performance in the remainder of the MTEF cycle

12. Thank You
Comments & Questions