1. EASTERN CAPE HOUSING DELIVERY
FIRST QUARTER REVIEW
FINANCIAL YEAR
2006/07

3. EXPENDITURE vs CASH FLOW FORECAST: FIRST QUARTER

7. CAPACITY & ENVIRONMENTAL CONSTRAINTS

8. MUNICIPAL CAPACITY SHORTFALLS
Lack of HR resourcing
General absence of dedicated Housing Units, with lack of technical & financial over-sight
Administrative inefficiencies
Document management and archiving shortfalls resulting in slow certification processes
Absence of follow-through on Beneficiary Registrations, Conveyancing, Contracts Management etc
Erratic attendance of officials in scheduled project management meetings
All the above are exacerbated by a lack of focus, commitment, arising from the ‘unfunded mandate’ argument & mindset

9. DEPARTMENTAL RESPONSE TO OWN MONITORING MANDATE
In view of high vacancy rate, Dept has contracted Project Managers(21) and Clerks of Works(24)
Involvement of 10 Cuban Professional through Bilateral Support Programme to assist in the area of Quality Assurance
Engagement of Local Government specialists
However, large order-book(471) results in too many projects per person, to be monitored
More resources required

10. NEGATIVE FACTORS AFFECTING 1st Quarter Spending
1. Administrative and Process-Related:
Delays in Municipal Procurement
processes for blocked projects approved
in Oct/Nov 2005 with appointments only in
April/May
Beneficiary Registrations
Conveyancing Delays.
EIA & NHBRC Approvals

11. 2. CONSTRUCTION MANAGEMENT
Inadequate Contractor skills-depth
(CHDM,ADM,ORTDM,ANDM)
High site-labour turnover
Material Supply & Capacity Constraints
(ORTDM,CHDM;ADM)
Site-establishment & related logistics
(ADM,ORTDM,ANDM,UDM)
Road Access
Water availability

12. RECOVERY INTERVENTIONS
Ongoing interaction :
with Municipalities involved through bi-laterals at senior management level, and through the facilitation of our project management team to assist in resolving identified bottle-necks.

13. Outstanding Beneficiary Registrations
Department in discussions with municipalities to clear the backlog of outstanding registrations. This involves finding alternative beneficiaries where the original applicants can no longer be found, or close-off projects at current progress mile-stones

14. Involvement of Thubelisha
Through facilitation of national Minister MOA in place
with Thubelisha assist with unblocking & cross-cutting
problem areas:
Taking over the implementation of some unblocked projects for which funding has been released and in which Developers have under-performed
Taking over the project initiation & implementation of approved projects (R300m worth) for which Municipalities have failed to submit project applications over a period of time

15. Involvement of Established Contractors
Established contractors to be attracted back into the sector through:
Clustering of projects into bankable formations
Thubelisha to act as overall Project Management Agent
Established contractors to embrace emerging contractors within appropriate sub-contracting arrangements
Above strategy expected to ensure a delivery regime of sufficient velocity, scale and quality compliance

16. THE RECTIFICATION PROGRAMME
Programme allows for rectification of defective units produced since 1994
Pre-condition is for necessary legal action against defaulted parties to be effected

17. NHBRC RECTIFICATION INVOLVEMENT
NHBRC to undertake the following :
Full scale scoping exercise for Province
Initial rectification to focus on identified pilot areas
NHBR to assume complete accountability for end-product throughout.
Rectification Programme, soon to commence will further help raise expenditure profile

18. CONCLUSION
The Department remains committed to meeting its spending targets for the current financial year, and to fulfill its developmental objectives!

19. Thank You
Comments & Questions