1. 1 PROGRESS MADE AND RECOMMENDATIONS OF THE PORTFOLIO COMMITTEE ON THE RURAL HOUSING IINFRASTRUCTURE PROGRAMME 09 NOVEMBER 2011

2. 2 Presentation Outline Introduction Implementation Model Progress - Phase 1 Progress - Phase 2 Jobs Creation Budget and Expenditure 2010/11 Budget and Expenditure 2011/12

3. 3 Challenges Recovery Plan Portfolio Committee (PC) recommendations Progress on implementation of PC recommendations Conclusion

4. 4 Introduction The National Treasury allocated a budget of R1.2 billion to the Programme over the 2010/11 Medium Term Expenditure Framework for provision of basic sanitation and some water projects in rural communities made up as follows:  2010/11: R100 m  2011/12: R231m  2012/13: R479.5m  2013/14 : R517.25m

5. 5 Implementation Model The Department appointed two service providers to support implementation as it lacked internal capacity. The service providers appointed are:  The Mvula Trust and  The Independent Development Trust (IDT)

6. 6 Progress - Phase 1 ProvinceBudget (R’ 000) No of municipalities Targeted Households Toilets completed ECR18 000525672559 FSR3 0001400300 KZNR27 000736753117 LimpopoR27 000936002208 MPR4 0001450499 NCR3 0001400 NWR6 0002828 NationalR12 000 TOTALR100 00026119209 911

7. 7 In Limpopo progress is slow due to the following reasons:  Some municipalities took time to sign service level agreements  Some contractors’ contracts had to be terminated and new ones appointed  There are areas with hard rock and digging of pits is slow

8. 8 Mpumalanga  16 households are located in area with high water table and this matter will be addressed in the current year programme with appropriate technology KwaZulu-Natal  The Emnambithi programme started very late due to stakeholder consultation required.

9. 9 Progress Phase 2 Province2011/12 R’000 Benefiting councils Targeted Households Pits dugToilets completed ECR65 00015752247112701 FSR10 0003129701 KZNR68 5001779692811244 LimpopoR48 00012608404 M’langaR8 0002103850 NCR4 000150700 NWR28 0002835610221 TOTALR231.557279784171

10. 10 Jobs Creation Province 2010/112011/12 (cumulative) EC244721 FS180 KZN523786 Limpopo408570 Mpu239233 NC34144 NW277394 TOTAL17332848

11. 11 Budget and Expenditure 2010/11 Province Allocated (R’000)Expenditure (R’000) EC 18,000 FS 3,000 485 KZN 27,000 11,858 Limpopo 27,0008,448 Mpu 4, 0001,914 NC 3,0002,606 NW 6, 00003,937 Management Fee 12,00010,215 TOTAL 100,00057,461

12. 12 Budget and Expenditure 2011/12 ProvinceAllocated Expenditure ECR 65 000 000R 12 835 376 FSR 10 000 000R 1 027 254 KZNR 68 500 000R 6 134 811 LimpopoR 48 000 000R 280 000 MpuR 8 000 000R 2 006 259 NCR 4 000 000- NWR 28 000 000R 1 241 768 TotalR 231 500 000R 23 525 468

13. 13 Challenges The phase 2 programme was delayed as service providers had to complete phase 1 programme.

14. 14 Recovery Plan The Department has demanded and received recovery plans from the service providers The plans have monthly targets from August 2011 to March 2012 Weekly reports are submitted to monitor progress made Meetings have been held with service providers and their main contractors to identify problem areas and recommend action plans

15. Recovery Plans for RHIP MONTHIDTMVULAIDT & MVULA August200630830 September67019602630 October232432685592 November347720905567 December329316394932 January 201232206333853 February 201236862433929 March 2012Contingency TOTAL168701046327333 15

16. Delivery up to 31 October 2011 As at 31 October, both Mvula and IDT had delivered 5504 completed units 3840 units were under construction The Mvula Trust is on target The IDT was slightly behind as contractors for 2011/12 were only appointed after completion of 2010/11 work 16

17. 17 Portfolio Committee Recommendations That the NDHS develop a framework to manage the programme That Co-operatives should be considered in implementation of the programme That the NDHS should report on jobs created That IDT be put on terms to complete phase 1 Programme and the Department seek legal opinion on terminating the contract due to non-performance

18. 18 The NDHS must in future ensure that the programme is introduced in terms of appropriate IGR protocol to provinces and municipalities That “happy letters” should be signed by benefiting municipalities and beneficiaries That the NDHS should develop a risk and recovery plan to mitigate future challenges

19. 19 Implementation of the PC Recommendations An Implementation framework has been developed Co-operatives are being considered in implementation of the programme & the first site is the Ndwedwe project A report on jobs created will be part of future reports to the Committee

20. 20 There is a marked improvement in the IDT performance therefore a legal opinion to terminate has been put on hold whilst the performance is being monitored The necessary “Happy letters” are being signed by beneficiary municipalities and beneficiaries. A risk register has been developed for the programme and is subject to the monitoring of the Departmental Risk Committee

21. 21 Conclusion The Programme is being monitored very closely to ensure that it is completed on time, within the budget and that it meet the quality requirements.