1. DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING NORTH WEST
PRESENTATION TO THE POTFOLIO
COMMITTEE ON HOUSING
09 MAY 2006
HOD-M.I.MOTALA

2. STRUCTURE OF PRESENTATION STRUCTURE OF PRESENTATION 1. BACKGROUND 2
STRUCTURE OF PRESENTATION STRUCTURE OF PRESENTATION 1. BACKGROUND 2. EXPENDITURE 3. DELIVERY STATISTICS 4. REASONS FOR UNDEREXPENDITURE 5. INTERVENTIONS 6. STATUS OF PROJECTS 7. BNG 8. OVERSIGHT , MONITORING AND EVALUATION from here to Proper Human settlements

3. BACKGROUND ON HOUSING DELIVERY IN THE NORTH WEST PROVINCE
No. of Projects
Urban / Rural Composition/Projects
Houses completed or under
Construction
No. of People Benefiting
Approved no. of Subsidies
Gender: Female headed households/Subsidies
Properties transferred
258
68.67%(Urban) , % (Rural)
88837
169094
151827
81846 (48%)
56155
2. PROVINCIAL BACKLOGS Based on Census 2001 and Current Subsidy of R

4. EXPENDITURE 01/02 TO 05/06 01/02 R265M R259M 97,7% 02/03 R324M R322M
FINANCIAL YEAR
ALLOCATION
EXPENDITURE
PERCENTAGE
01/02
R265M
R259M
97,7%
02/03
R324M
R322M
99,4%
03/04
R348M
R262M
75,2%
04/05
R506M
R372M
73,5%
05/06
R M
includes rollover
R , M
99.59%

5. DELIVERY STATISTICS 01/02 02/03 03/04 04/05 05/06 06/07 07/08 13885
23784
10484
10037
14808
18000
20000

6. DELIVERY STATS.(cont……)
The average delivery per year is completed houses.
For the 2005/2006 target of , the department included a figure of to deal with the backlog owing to the drop in delivery from the previous financial years
a further 5000 to deal with the normal growth pattern in terms of housing need.

7. REASONS FOR UNDEREXPENDITURE
lack of implementation capacity at Municipal level
departmental decision 2002
management of consultants
hands off approach of department
lack of management information
non compliance with contractual conditions
blocked projects
forward planning
delays in processing claims(Province/Municipalities)

8. INTERVENTIONS
Compliance with contractual requirements and suspensive conditions
Enforcement of MPRs
Monthly meetings with municipalities by provincial project teams
Creation of departmental project teams per district
Monthly meetings with Municipal managers and project managers on a district basis
Analysis of blocked projects
Commitment beyond MTEF allocation

9. INTERVENTIONS(cont…..)
Project agreements cancelled with various municipalities:
Cancellation and transfer to performing turnkey developers
HMS developed to interface with HSS (Project Module)
Appointment of turnkey developers by department

10. STATUS OF PROJECTS Planning 35 Under Construction 111 Completed 62
Blocked
Total
(Total Contractual commitments: R 2, Billion over MTEF)

11. BREAKING NEW GROUND Two pilot projects in NW
Klerksdorp - Informal Upgrading units (997 foundations in Kanana & 701 houses completed, 700 foundations in Jouberton & 318 houses completed)
Rustenburg – Integrated Human Settlement units (Installation of services)

12. Other Key Elements of BNG
Socio - Economic Amenities
Farm Worker Housing
Accreditation of Municipalities
Job creation strategies
Emerging contractor support
To be provided in pilot projects (existing projects to be identified)
Finalization of policy required as well as socio economic audit
Ongoing as per policy
Implementation of EPWP mandatory in respect of new projects
Construction SETA and Dept of Labour
donated R 10m for the programme and NHBRC’s programme under implementation.

13. Other Key Elements of BNG
HSS database cleanup
Rectification of defective houses
Ongoing
Financial module is 95% correct
Subsidy Admin Module is 87% correct
Project Module is 55% correct
Budget Module has not been implemented
HMS developed to interface with HSS (Project Module)
Audit being conducted to implement rectification of houses built both pre-and post 1994

14. Implementation of the BNG / Capacity: Generally
Challenge
Land
Inflation overtaken cost
Non performing developers/municipalities
Non and under performing contractors
Lower subsidy bands
Bulk services
Progress
Land Audits underway
New policy
Cancellation and transfer to performing turnkey developers
Policy limitation
Coordination with MIG

15. Implementation of the BNG / Capacity at Municipalities
Challenges
Abnormal delays in tender process at municipal level
To go out on tender
To evaluate tenderers
To appoint contractors
Appointing of contractors/consultants without
Proven track record
Capacity to deliver
Progress
Cancellation and transfer to performing turnkey developer
28 Project agreements cancelled

16. Implementation of the BNG / Capacity: Post housing project completion responsibilities
Challenges
Maintenance of roads/services
Internal roads/services
Enforcement of municipal by-laws
Illegal structures
Illegal occupants
Illegal use of houses
Enforcement of effective billing systems
Nurturing a culture of payment for services

17. Oversight / Monitoring and Evaluation
Monthly meetings with Municipal managers and project managers on a district basis
Creation of departmental project teams per district
Monthly meetings with municipalities by provincial project teams
Enforcement of Monthly Progress Reports (MPR)

18. I THANK YOU