1. MS M. ROSHO HONOURABLE MEC FOR DLG&HS
PRESENTATION OF THE 3RD QUARTER PERFORMANCE REPORT TO THE PORTFOLIO COMMITTEE
MS M. ROSHO HONOURABLE MEC FOR DLG&HS
12 MARCH 2019

2. TABLE OF CONTENTS Purpose of the Presentation Background
Delivery per month/quarter
Delivery per municipality
Mining Towns
Title Deeds
HDA
Blocked projects & remedial work
Key projects with high capacity contractors
Key performance areas for intervention
Status of Key Projects
Work in Progress
Intervention and Progress to date

3. PURPOSE OF THE PRESENTATION
The intention of this presentation is to brief the Portfolio Committee on the following:
Progress made by the province in meeting it’s financial and non-financial targets for 2018/19 financial year.
Intervention for Section 100 (1)(a) with specific key performance areas

4. BACKGROUND SECTION 100(1)(A) INTERVENTIONS
The 7 Key Performance Areas of intervention are as follows:
Preparation of 2019/20 business plan
Multi-year human settlements development plan
Appoint suitably qualified contractors
Performance of appointed contractors – contract management
Management of programmes and project performance
Beneficiary management and Outreach Community Programmes
Reposition of the department to become fit for purpose

5. BACKGROUND KEY CHALLENGES IDENTIFIED
The challenges identified that has affected the departmental performance are as follows:
Poor performance by contractors and lack of capacity
Slow responsiveness to Subsidy Administration
Receipt of beneficiary lists from municipalities for new projects is slow
Some beneficiaries reflect as benefitted on HSS but on the ground not
Poor contract management
Community unrests
Lack of bulk infrastructure in municipalities
Dolomitic conditions of the province restricts developmental areas
Appointment of emerging contractors without providing technical support
Delays in procurement processes

6. BACKGROUND KEY MEASURES TO IMPROVE PERFORMANCE
As part of the recovery process the following has been done:
Department has appointed high capacity contractors and are already improving progress
One on One process done to get commitment from those contractors
Contract reviews done regularly to determine performance of contractors:
Non performers are put to terms with strict monitoring measures
Performing contractors are encouraged to accelerate performance
Compressed delivery schedule entered into with appointed contractors
Effective payment system
Fast tracking the implementation of National Housing Needs Register
Working with DHS to clean up HSS for approved beneficiaries who never benefitted
Currently working with NHFC and DHS on an incubation plan to assist emerging contractors
DHS has through intervention participated in all aspects on procurement process to assist where there are bottlenecks

7. BACKGROUND FINANCIAL AND NON-FINANCIAL PERFORMANCE
As at the end of February 2019, the province had spent R which is 90% of its R annual budget allocation.
There’s an under spending of R of the R transferred until 08 March 2019.
The province has delivered 5544 housing units of the annual target of and 4631 sites of the annual target of 4453, and Pre and Post Title deeds transferred from the expected annual target.

8. DELIVERY TRENDS PER MONTH/QUARTER
Sites Completed
Sites Planned
Units Completed
Units Planned
Budget
Expenditure Q1
607
774
908
2057 R R
Apr
219
159
543 R R
May
257
153
671 R R
Jun
298
596
843 R R Q2
1251
2091
3550 R R
Jul
367
911
1034 R R
Aug
418
1214 R R
Sep
466
813
1302 R R Q3
688
939
1871
2713 R R
Oct
412
503
1069 R R
Nov
319
736
915 R R
Dec
208
632
729 R R Q4
1752
1489
674
2674 R R
Jan
396
260
334
775 R R
Feb
1356
470
340
834 R R
Mar
759
1065 R R
Grand Total
3266
4453
5544
10994 R R

9. 2018/19 FY DELIVERY PER MUNICIPALITY
Region
SitesCompleted
sitesplanned
Units Completed
Units Planned
Budget
Expenditure
Bojanala Platinum District
1205
3245 R R
Kgetlengrivier
104 99 R R
Madibeng
481
1302 R R
Moretele
284
500 R R
Moses Kotane
262
570 R R
Rustenburg 74
774 R R
Dr Kenneth Kaunda District
699
2168
1332
2464 R R
JB Marks
328
233
347 R R
Maquassi Hills
1701 50
260 R R
Matlosana
600
139
1049
1857 R R
Dr Ruth Segomotsi Mompati District
1122
1759
1790
2356 R R
Greater Taung
341
527 R R
Kagisano-Molopo
175
254 R R
Lekwa-Teemane
406
1004
898 R R
Mamusa
396
897
130
496 R R
Naledi
726
456
140
181 R R
Ngaka Modiri Molema District
1445
526
921
2829 R R
Ditsobotla
1265 68 88 R R
Mahikeng
250
936 R R
Ramotshere Moiloa
319
430 R R
Ratlou 80
416 R R
Tswaing
180
204
959 R R
North West Provincial
296
100 R R
Grand Total
3266
4453
5544
10994 R R

10. MINING TOWNS SUMMARY Mining Town Sites Completed Sites Planned
Units Completed
Units Planned
Budget
Expenditure
Kgetlengrivier
104 99 R R
Madibeng
481
1302 R R
Matlosana
600
139
1049
1857 R R
Moses Kotane
262
570 R R
Rustenburg 74
774 R R
Grand Total
1970
4602 R R

11. TITLE DEEDS Title Deeds:
title deeds were transferred to new home owners
3 726 were transferred to homeowners on the post-1994 programme
Pre-1994, 96 title deeds were transferred in Madikwe, Mabopane and Mogwase (North West Housing Corporation).
HSS Data Beneficiary Cleanup: The Department has already embarked on the 1st phase to eradicate the backlog of unconfirmed failed searches, received and sent for initial searches, verified but on hold status in the quest to clean up the HSS database failed searches were confirmed with 691 remaining.

12. HOUSING DEVELOPMENT AGENCY PROJECTS
The Department has in 2017/18 financial year transferred R to the Housing Development Agency.
Funding at HDA was lost to National Treasury and the department has budgeted for those projects in the HSDG business plan
The Department will take over all incomplete projects from HDA in the 2019/20 FY and implement them directly
The progress on the projects is indicated in the following slide:

13. PROJECTS MANAGED BY HDA
Project Name
Service provider appointment values
Budget 2018/19fy
Project scope of work
Actual Total Expenditure Year to Date
Remaing Budget amount to complete the project
Projections for December 20
Projections for Jan -March 2019
Projected Expenditure on 31/03/2019
Challenges
Mitigation
Scope of Work
Financial Projections
Project Issues
Coligny/Thlabologang Ext 8
R ,08
R ,40
Design & installation of 1528 serviced stands
R ,01
R ,07
R ,20
R ,87
R ,08
Budget shortfall to fund bulk infrastructure
Additional funding request of R made to the Province
Stella Internal Reticulation
R ,00
R ,00
Design & installation of 700 serviced stands
R ,49
R ,51
R ,51
R ,00
R ,00
Relocation of 15 pit latrin toilets on the way for services.
Project team in the process of resolving this challenge . No additional funding will be required for this exercise
Sunway Bulk Sewer
R ,41
R ,00
Design & construction of 6.3km bulk sewer & pump station
R ,13
R ,28
R0,00
R ,13
Budget shortfall of R5,180, and one landowner refusing to sign consent form for servitude rights
The landowner is being engaged and the issue will be escalated to the Local municipality for a resolution on possible action (expropriatin)
Bokamoso Catalytic Project
R ,00
Construction of 1600 top structures
R ,00
R ,00
R ,80
R ,00
R ,80
Geotechnical variation claim (R ) submitted to Province as a result of prevailing geo-technical conditions on site.
All contractors are back on-site and commenced with works while a definitive additional funding request based on this is awaited from the Province.
Marikana Bulk & Sewer Services
R ,00
Planning phase - construction of bulk sewer & water and serviced stands
R 0,00
Township establishment approvals have been put on hold as a result of land invasions requiring a revised layout plan
Lonmin has commmitted to refly the area to remap the layout and work jointly with all stakeholders to resolve the repegging of the already occupied sites.
Matlosana N12 West Catalytic Project: Schoonspruit Outfall Sewer Pipeline
R ,21
R ,00
Upgrading of 10.35km Schoonspruit outfall sewer pipeline
R ,16
R ,05
The funds to complete the project are now seating with Matlosana Local Municipality
Contractor is experiencing massive cashflow problems due to non payment, and the Contractor has suspended the works and have submitted a claim. HDÄ is now playing a Project Manager role, funds have been transferred directly to Municipality for payments
HDÄ to get copy of the IP signed between the Province and the Municipality for cost control purposes and financial reports
Matlosana N12 West Catalytic Project: Bulk Water Pipeline from Alabama Reservoir
R ,21
Construction of 4.57km bulk water pipeline
R ,08
R ,13
Matlosana N12 West Catalytic Project: Extension 3, 5 and 6
R ,35
R ,00
Design & installation of 653 serviced stands
R ,39
R ,96
Total
R ,26
R ,40
R ,00
R ,51
R ,87
R ,01

14. BLOCKED PROJECTS
The Department has in the current financial year prioritised the unblocking of blocked projects during the mid-term budget review.
The priority areas are within all four regions i.e. Dr RSM, NMM, Bojanala and Dr KK
The projects are various stages of implementation i.e. Procurement and Construction.
The breakdown of projects per region are as follows:

15. BLOCKED - DR RSM REGION Municipality Project No. Project Name
Number of subsidies
Foundation & Structural Demolitions
Vacant Stands
Rectification
Estimated Budget for the Project
No of Foundations
No of Structures
Estimated Budget Amount
No of Vacant Stands
No of Str to be Rectified
Mamusa B
Amalia DDIS
100 9 17
R ,08 3
R ,00 16
R ,36
R ,44
Lekwa Teemane
Utlwanang Hostels 24
R0,00
R 0,00
R ,04
B /1
Christiana
600
129
153
R ,48
164
R ,44
R ,92 B
Utlwanang EXT 2 DDIS
150 25
R ,00 52
R ,00 31
R ,01
R ,01 B
Boitumelong EXT 3 & 4
500 28 98
R ,36 46
R ,00
244
R ,24
R ,60 B
Boitumelong EXT 1
1000 18
159
R ,16 66
R ,00
324
R ,04
R ,20 B
Utlwanang
390
155
R ,04 14
R ,00
216
R ,36
R ,40
Kagisano Molopo B
Kagisano Rural Housing
1600
305
R ,60
R ,00
951
R ,21
R ,81
B /1
Utlwanang (152)
200 79 80
R ,48
R ,13
R ,61
TOTAL
4564
610
967
R ,20
486
R ,00
1973
R ,83
R ,03

16. BLOCKED - NGAKA MODIRI MOLEMA
Municipality
Project No.
Project Name
Number of subsidies
Foundation & Structural Demolitions
Vacant Stands
Rectification
Estimated Budget for the Project
No of Foundations
No of Structures
Estimated Budget Amount
No of Vacant Stands
No of Str to be Rectified
Ditsobotla
B /1
Ditsobotla Villages
402 22 1
R ,31 21
R ,00
R ,31
Ratlou B
Disaneng
128
R ,76
179
R ,00 95
R ,07
R ,83
Logageng
200 63
R ,00
R ,00
R 0,00
R ,00
Mafikeng
B /1
Mafikeng Madibe Womens Build 73 41 10
R ,62
R ,00
R ,62
Ramotshere
B /1
Kruisrivier Womens build 7
R ,84 27
R ,00 4
R ,44
R ,28
Madibogo
572
R80 349,12 2
R ,00
370
R ,48
R ,60
Makgobistad
400 40
R ,14 58
R ,00 84
R ,30
R ,44
Tswaing B
Letsopa Ext 1 & 2
862 6
501
R ,00
605
R ,00
R ,00
TOTAL
2984
109
712
R ,79
956
R ,00
553
R ,29
R ,08

17. BLOCKED - BOJANALA Municipality Project No. Project Name
Number of subsidies
Foundation & Structural Demolitions
Vacant Stands
Rectification
Estimated Budget for the Project
No of Foundations
No of Structures
Estimated Budget Amount
No of Vacant Stands
No of Str to be Rectified
Moretele
B /1
Maubane
367 72
R ,64
140
R ,00
111
R ,90
R ,54
B /1
Mogogelo
429
173
R ,76
R ,00
164
R ,75
R ,51
B /1
Greenside
206 90
R ,80 98
R ,00
108
R ,00
R ,80
Kgetleng B
Reagile
1135 1
R80 349,12 24
R ,00
538
R ,38
R ,50
B /1
382 33
R ,00
158
R ,02
R ,14 B
Bororelo
440 13
R ,00
213
R ,25
R ,37
B /1
500 2
R ,24 80
R ,00
143
R ,90
R ,14
Madibeng B
Lethabong
2100
187
R ,00
570
R ,45
R ,57
B /1
Madibeng Letlhabile Block I,G,F,E,C
768 17
R ,56
R 0,00 40
R ,40
R ,96
Lethlabile PHP 70
R ,56 5
R ,00
R ,56
TOTAL
6397
R ,04
761
R ,00
2050
R ,05
R ,09

18. BLOCKED - DR KENNETH KAUNDA
Municipality
Project No.
Project Name
Number of subsidies
Foundation & Structural Demolitions
Vacant Stands
Rectification
Estimated Budget for the Project
No of Foundations
No of Structures
Estimated Budget Amount
No of Vacant Stands
No of Str to be Rectified
Matlosana B
Kanana Ext 3&5
1250 17
R ,00 39
R ,00
496
R ,05
R ,05 B
Kanana Ext 6
2716 3
R ,00 21
R ,00
1007
R ,78
R ,78 B
Kanana Ext 7
124 1
R ,12 11
R ,00 49
R ,50
R ,62 B
Kanana Ext 12
764 5
R ,12 41
R ,00
226
R ,63
R ,75 B
Khuma 1,3,4&5
168 2
R ,24 14
R ,00 47
R ,80
R ,04
2007
Matlosana Disaster
174 22
R ,00 55
R ,00
111
R ,05
R ,05
Tlokwe
B /1
Potchefstroom Ikageng Ext 4
492 8
R ,00 69
R ,00
R 0,00
R ,00
B Mosa Con
Ikageng Ext 11 13
R ,00 24
R ,00
416
R ,05
R ,05
Ventersdorp B
Ventersdorp Tshing
1795
R0,00 31
R ,00
TOTAL
7483 4 71
R ,48
305
R ,00
R ,86
R ,34

19. KEY PROJECTS WITH HIGH CAPACITY CONTRACTORS
PROJECTS DESCRIPTION
DEVELOPERS
EXPECTED EXPENDITURE BY END MARCH
Blydeville Ext 4 (Services)
Meron Construction
R ,00
Maseno General Trade
R ,00
Ipelegeng Ext 8 (Services)
TN Molefe
R ,00
TS Construction
R ,00
Ipelegeng Ext 9 (Services)
Motheo Construction
R ,00
Somandla
R ,00
Bloemhof Ext 11 & 12 (Services)
MMOPA Construction
R ,00
Lesedi Civil Construction
Thobile M Building Construction
R ,00
Wolmaranstad Ext 17 & 18 (Services)
Barzani Development
R ,00
Rulaganyang (Services)
Thavhani
R ,00
Lebaleng Ext 6 (Services)
R ,00
Alabama Ext 4 (Units)
Tigane Developers
R ,00
R ,00

20. KEY PERFORMANCE AREAS FOR INTERVENTION
Intervention Description
Key Actions (Activities)
Expected Output
Completion
Progress Report
PREPARE 2018/19 and 2019/20 DELIVERY BUSINESS PLANS
Finalisation of a Compliant 2018/19 business plan for the Human Settlements Development Grant
Approved 2018/19 HSDG Business Plan
29-Jun-18
Completed
Finalisation of a Compliant 2018/19 business plan for the Title Restoration Grant
MULTI-YEAR HUMAN SETTLEMENTS DEVELOPMENT PLAN
Land assembly plan
Approved 3 year land assembly plan
30-Nov-18
In progress. Housing Development Agency is contracted to facilitate the preparation of this plan
Human Settlements projects pipeline (IRDP/UISP/PHP/Rental)
Approved MTEF Human Settlements projects pipeline
In progress to appoint a service provider to review the plan.
1. IRDP
2. UISP Upgrading plans for Dr RSM NMM and are underway
3. PHP
4. Rental The Multiyear Housing Development Plan is being updated
Spatial transformation and consolidation plan
1. Provincial HS master spatial plan
Draft Spatial plan pending consultation
Revitalisation of distressed mining communities
Provincial programme of revitalisation of distressed mining communities
31-Oct-18
Finalised. Implementation Protocol with Municipalities signed
Unlock projects that are blocked, incomplete or slow-moving
Programme for activation of blocked projects
30-Jul-18
Assessment finalised and projects prioritised for implementation from current financial year
Undertake remedial works on defective or poorly built subsidy homes
Programme to remedy defective home
31-Aug-18
Defective houses identified; **

21. KPA: INTERVENTION CONT…..
Intervention Description
Key Actions (Activities)
Expected Output
Completion
Progress Report
APPOINT SUITABLY QUALIFIED AND CAPABLE CONTRACTORS (CIDB GRADED & NHBRC REGISTERED)
Prepare and advertise BID with appropriate specifications for the appointment of suitably qualified contractors to a panel for 3 years
Advertised BID for appointment of contractors
30-Jul-18
Advert complete
Evaluation, adjudication and appointment of suitably of qualified contractors to a panel for 3 year
Appointment of suitably qualified contractors to a DLG & HS panel
30-Sep-18
Database finalised and in use
Prepare a framework for the sustainable participation of small and emerging contractors in HS delivery projects
Approved framework for the participation of small and emerging contractors
30-Oct-18
Draft plan developed
PERFORMANCE OF CONTRACTORS APPOINTED TO DELIVER HOUSING AND HUMAN SETTLEMENTS PRODUCTS & SERVICES
Enhance contract and performance management
Approved framework for contract management
Work in progress.
BENEFICIARY MANAGEMENT AND COMMUNITY OUTREACH
Develop a management system (dashboard) and procedures for programmes and projects management to optimize annual delivery for housing opportunities
Approved system and procedures for programme and project management
Work in progress
Implement the national housing needs register
Compliant provincial chapter of the national housing needs register
15-Feb-19
In progress
Administrative reconciliation of beneficiaries and delivered product
Approved framework for administrative reconciliation of beneficiaries to delivered products
In progress on a case by case basis. A comprehensive plan has been prepared
Prepare and implement a community outreach programme
Approved and implemented community outreach programme
Ongoing and Communications unit is driving the process

22. KPA: INTERVENTION CONT…..
Intervention Description
Key Actions (Activities)
Expected Output
Completion
Progress Report
REPOSITION THE DEPARTMENT TO BECOME FIT FOR PURPOSE
Finalise the organisational structure
Approved macro organisational structure
30-Jul-18
Final draft Macro structure prepared for consultation with OTP and DPSA
Migrate personnel into the approved organisational structure
Complete migration
31-Oct-19
Pending approval of Organisational Structure
Fill vacant positions
Reduce vacancy to prescribed range
31-Mar-19
Advertised positions pending approval of Organisational Structure
Review and align the SLA of the appointed service provider (PMU)
Aligned PMU SLA to objectives of the Intervention
Underway. The scope of work for the PMU is managed jointly between the NDHS and the PDLG&HS.

23. STATUS OF KEY PROJECTS
Rustenburg accreditation : Process not finalised yet
CRU Mafikeng : Due to flouting of processes by municipality, 50 units of 100 are illegally occupied.
Matlosana CRU : All 100 units are occupied
Rustenburg Meriting Ext 4 & 5 : Eskom is not responsive to our request to carry cost of relocation and rebuild of 54 structures built under electricity pylons. Assistance of the committee was requested to engage the relevant committee.

24. WORK IN PROGRESS – Feb 2019 Milestone Beneficiaries Amount
Foundations no wallplate
566 R
Wall Plates
618 R
Finishes no completion
641 R
TOTAL R

25. PROGRESS TO DATE
Implementation Protocol signed between Minister and MEC
Intervention Steering Committee setup and chaired by the DG
Technical Working Team established and chaired by DDG

26. THANK YOU!