1. NELSON MANDELA BAY METRO HUMAN SETTLEMENTS PROGRAMME 05 NOVEMBER 2015 1

2. OUTLINE 2 1.Background 2.Situational analysis 3.Programme of action 4.Progress on programme 5.Critical success factors

3. Underpinning the Intervention, key agreements achieved: a)Memorandum of Agreement (MOA) signed by political principals on 30 June 2015. b)Implementation Protocol (IP) signed by Accounting Officers on 2 July 2015. c)Council resolution in support of Programme on 17 September 2015. 1. BACKGROUND 3

4. A number of challenges besetting the Metro were identified: 1.Uncertainty and discontent around how the Roster System operates in allocation of work to contractors. 2.Identified communities with heightened levels of dissatisfaction regarding service delivery – “hotspots” 3.Work carried Metro not always in alignment with provincial funding approvals, resulting delays in payments to contractors. 4.Dysfunctional beneficiary management system. 5.Inadequate capacity to manage the human settlements programme. 2. SITUATIONAL ANALYSIS 4

5. 3. PROGRAMME OF ACTION Key thrusts identified to drive intervention: 1.Development of a Procurement Framework that is transparent and supportive of SMMEs. Training of SMMEs via incubation and mentoring programmes. 2.Deployment of technical capacity through seconded staff to the metro, deployment of intervention support team as well as appointment of professional resource team (PRTs). 3.Financial support of SMMEs to be provided by NURCHA. 4.A project pipeline to facilitate the achievement of quick-wins with maximum impact whilst promoting the sustainable delivery of serviced sites, houses and social amenities over the MTSF period. 5.Appointment of HDA as an implementing agent. 5

6. 4. PROGRESS ON PROGRAMME 4.1 Procurement framework 4.2 Augmentation of capacity 4.3 Responses to hotspots 4.4 Performance on delivery: services 4.5 Performance on delivery: top structure 4.6 Beneficiary management 4.7 Title deeds 6

7. 4.1 PROCUREMENT & CONTRACTOR SUPPORT Housing delivery has been impeded by the Roster system of appointing contractors, hence the need for a new procurement framework. The Procurement Framework – to be implemented by the HDA as Implementing Agent – was approved by the Steering Committee on 11 September 2015. The framework will ensure, among others: – Equity – Transparency – Compliance with legislative requirements In operationalising Framework, call for registration issued on 23 October to draw up database of pre-approved of contractors – As at 4 November, 1690 prospective bidders collected forms. – Briefing session for prospective service providers held on 3 November 2015. – Bids close on 13 th November 2015. 7

8. 4.1 PROCUREMENT & CONTRACTOR SUPPORT 8 Project NameNumber of SMMES (63) Comments 1A. Joe Slovo West20 SMMEsProcurement stage. Project starts end Nov ’15 1B. SOS / Veeplaas Infills4 SMMEsSMMEs appointed. Site handover 05 th Nov ‘15 1C. Sisulu Village1 SMMEProcurement stage. Project starts end Nov’15 1D. Chatty 106010 SMMEsProcurement stage. Project starts end Nov ‘15 2A. Walmer Q5 SMMEsSMMEs identified, site establishment complete 5A. Chatty 491 (Military Vets)14 SMMEsProcurement Stage. Project starts in Dec ‘15 3A. Missionvale9 SMMEsProcurement processing on-going

9. 4.2 AUGMENTATION OF CAPACITY The HDA has appointed team of PRTs as a means to augment capacity of the Agency. These include Civil Engineers, Town Planners, Project Managers and Environmentalists. This team will assist with project management and will be strictly remunerated against work done. Members appointed by NDHS to serve as part of Support Team and secondments made to the Metro. HDA and NHBRC to support Metro with project and quality management. 9

10. 4.3 RESPONSES TO HOTSPOTS The Deputy Mayor’s Steering Committee on Walmer. – Forum sits every two weeks and includes community representatives, public officials and the relevant politicians. – Forum has proved effective in ensuring that matters raised by the community are attended to. MMC Forum sits weekly and chaired by MMC. MMC Forum seeks to deal will all immediate challenges on projects and those arising from the community, and it provides a platform of officials and councillors 10

11. 4.3.1 WALMER 11 Water leakage Poor drainage

12. 4.3.1 WALMER (cont.) 12 A contractor has been appointed to commence construction of 196 units in Walmer Area Q. 5 sub-contractors from within Walmer to participate An application for relaxation of conditions has been submitted to the Department of Environmental Affairs (to allow relocation of shacks to the reception area i.e. ERF 1948). Quick wins achieved: o Establishment of an EPHP programme for the benefit of the community. o Electrification programme 99% complete o Cleaning of open public spaces. o Rehabilitation of access roads. o Task team established and meets fortnightly and feedback given to community. o Improved community confidence in the performance of the metro

13. 4.3.2 KHAYAMNANDI (184) 13 Funding obtained from the “Bucket Eradication” programme (via Provincial Treasury) was used to construct 800 slabs. Coega Development Co-operation was appointed as Implementing Agent. R70 Million has been secured to build the top structures. HDA to be the implementing agent. Appointed team of PRTs: a)Establishing actual bulk and site reticulation capacity is underway b)Confirming structural integrity of the existing slabs for top structure construction.

14. 4.3.3 MISSIONVALE 14 In-situ upgrading project comprising of 2498 sites & houses Challenges experienced with designs and the implementation of the project. Housing construction was done ahead of servicing (water & sewer) in phases 1,3,4 &5) Phase 1 & 2 have now been fully serviced Phase 3 is over 90% serviced. Ensure completion of servicing of Phases 4 & 5 by late 2015/early 2016. Attend to water leakages that are causing water logging in some areas.

15. 4.4 DELIVERY PERFORMANCE: SERVICING OF SITES  Serviced Sites completed: 10 880 – 4 852 erven (NMBM) – 6 028 Erven (HDA)  Funding for the Integrated Residential Development Programme for 2015/2016 allows only for the construction of 2 778 top structures, excluding rectification. 15

16. 4.4 USDG EXPENDITURE AS AT 30 SEPTEMBER 2015 16 SERVICEBUDGET Q1 2015/16 ACTUAL 2015/16 ACTUAL Q1 % Water Services – Bulks & Supply181 947 73930 705 614 17% Sanitation – Bulks301 872 00052 241 716 17% Electricity & Energy - Electrification18 500 0004 205 249 23% Roads, Stormwater & Transportation91 200 00010 096 217 11% Public Health – Public Open Spaces Development 2 280 00078 477 3% Human Settlements – Reticulation Services 199 622 91540 991 472 21% Bucket Eradication51 317 3467 215 512 14% TOTAL846 480 000145 534 25817%

17. 4.4 USDG: SYNOPSIS AS AT 30 SEPTEMBER 2015 17 USDGExpenditure% Spend of Allocation Quarter 1R 145 543 25817% TransferedExpenditure% Spend of Transfered Funds R267 070 000 R145 543 258 54% Year-On-Year Q1 Comparison 2013/14 2014/152015/16 10% 17%

18. 4.4 NMBM USDG and HSDG: 1 st QUARTER ACHIEVEMENTS 18 HUMAN SETTLEMENTS KEY PERFORMANCE INDICATOR(S) QUARTER 1 TARGET QUARTER 1 ACTUAL ANNUAL TARGET Number of state subsidised housing units provided 2002401 506 Number of erven provided with permanent water and sanitation services 5005203 000 Number of settlements upgraded from informal to formal 1 1 (Kwanobuhle Area 11 - Phase 1) 4 Number of households relocated from stressed informal settlements and other servitudes to Greenfield development areas 1501951200

19. 4.5 TOP STRUCTURE DELIVERABLES 2015/16 BUSINESS PLAN 19 DEVELOPERINSTRUMENTSUNITSBUDGET NMBM Integrated Residential Development Programme 1506192 639 988 Rectification66539 595 001 HDA Integrated Residential Development Programme 1222163 744 647 PDoHS Integrated Residential Development Programme 233 759 605 MDT Internal Services 192850 957 966 TOTAL (top structures excl. internal services & rectification) 2778450 697 207

20. 4.6 BENEFICIARY MANAGEMENT 20 Discussions are underway to effect reforms into the beneficiary management system, entailing: a)Training to manage the national housing needs register and the housing subsidy system; b)Review of housing demand and allocation policy; c)Beneficiary & consumer education programme; and d)Social facilitation.

21. 4.7 TITLE DEEDS 21 Identified Quick Wins: a)Complete verificaton and develop a programme to handover; b)Develop and impliment a communication strategy around the programme; and c)Prioritise hotspots in terms of Title Deeds handover.

22. 5. CRITICAL SUCCESS FACTORS 1.Sustained collaboration between the organs and spheres of government. 2.Confirmation of additional/basket of funding mechanisms for up scaling. 3.Directed communication to broader community within the Metro regarding elements of the Programme. 4.Timeous resolution of outstanding commitments of NMBM’s Revolving Fund. 5.Established systems and procedures a)Financial Management b)Beneficiary Management c)Operations Managements (Inspections/Quality Control/OHS) 22

23. THANK YOU 23