Content

1. Overview Of The Strategic And Annual Performance Plans 2013/14 – 15/16 Mr. T. ZuluDirector-General

2. VISION “A NATION HOUSED IN SUSTAINABLE HUMAN SETLLEMENTS “MISSION “ TO FACILITATE THE CREATION OF SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE”

3. Content • Strategic Overview of the Department – 2013/16 • Values • Budget Structure of the Department • Human Settlements Priorities • Performance Indicators and Targets • Financial Information • Key Risks And Challenges

4. Strategic Overview • The Department implemented the approved turnaround strategy with effect from 01st April 2012. • An organogram was approved by DPSA with effect from 01st April and a process on migration of staff and personnel has been completed. • The National Treasury approved a revised budget structure which is consistent with the strategic plan but not the organisational structure. • A key issue intended to receive priority is the matter of alignment of the strategies with plans, budget and performance.

5. Strategic Overview • A process will also unfold to further refine strategies and alignment to national development goals and priorities and this includes matters related to policy and strategic infrastructure development. • A key issue to receive attention is the alignment of roles, responsibilities, obligations and accountability for the household sanitation function. • The year will also require term reports to be completed and this includes Outcome 8 as well as the 20 year review of government

6. Strategic Overview • The material and key performance indicators, outputs and outcomes as contained in Outcome 8 and the objectives in the Estimates of National Estimates (ENE) receive priority focus in the strategic and annual performance plans of the Department. • The Department will use the 2013/14 financial year as one that imbeds the National Development Plan in respect of strategy, policy and operations for sector and institutional transformation and implementation. • The targets as contained in the Delivery Agreement signed between the Minister and the President also form a key basis of the strategic focus areas of planning, funding and implementation.

7. STRATEGIC OVERVIEW • The following are key programme and projects activities for the period head: • The implementation of the revised FLiSP programme. • Implementation of the management of the Rectification Programme by the Department. • Focus on the accreditation programme • Improving on the social and rental housing units delivered. • Better and improved intergovernmental collaboration and coordination.

8. Strategic Overview • Special and designated group and sector focused programmes including “Youth Builds”, “Womens’ Builds” and the “Each One, Settle One” programmes are to be up scaled and planning and funding improved. • Better and improved output and target monitoring including quality and value for money through the Programme Management Unit is envisaged.

9. Values The core values of the Department based on the Constitution include : • Accountability • Fairness and equity • Choice, quality and affordability • Sustainability • Innovation as well as adherence to; • Batho Pele principles.

10. DEPARTMENTAL ORGANOGRAM

11. CD: INTERNAL AUDIT, RISK MANAGEMENT AND SPECIAL INVESTIGATION Mr. T. Mashabane (Act) CD: EXECUTIVE SUPPORT Mr. S.S. Nkosi DIRECTOR-GENERAL Mr T Zulu DDG: Chief Financial Officer Ms F Matlatsi DDG: HS Strategy & Planning Mr N Chainee DDG: HS Delivery Frameworks Mr M Maphisa DDG: Project Management Unit (PMU) Mr J Wallis (Act) DDG: Corporate Services Ms N Letsholonyane DDG: Chief Of Operations Ms. S. Ngxongo CD: Operational Policy Frameworks Mr L vd Walt (Act) CD: Enterprise Architecture Mr M Moerane CD: Chief Investment Officer Mr M Hitge (Act) CD: Programme & Project Planning Ms J Bayat CD: Corporate Support Mr E Sithole CD: HS Strategy Dr Z Sokopo CD: CIO Mr M Xaba CD: Technical Capacity Development Mr M Maclean CD: Governance Frameworks Mr G Khathi (Act) CD: HS Planning Mr A Arendse CD: Financial Management Mr N Mbengo CD: Programme Implementation Facilitation Mr J Wallis CD: Regulatory Compliance Services CD: Human Resources Ms. M. Snyman CD: Advisory Services Mr L Jolobe CD: Stakeholder Relations & Intergovernmental Mr W Jiyana CD: Programme Monitoring & Evaluation Mr P Chauke CD: Legal Services Adv J Tladi CD: Communications Services Mr X Xundu CD: Sanitation Programme Mr P Chauke (Act)

12. Budget Programme Structure • Programme 1: Administration. Purpose: Provide strategic leadership and administrative support services to the department • Programme 2: Human Settlements Policy, Strategy and Planning. Purpose: Manage the development and compliance with human settlements sector delivery frameworks and oversee integrated human settlements strategic and planning services.

13. Budget Programme Structure • Programme 3: Programme Deliver Support. Purpose: Support the execution of human settlement programmes and projects and oversee the implementation of the household sanitation programme • Programme 4: Housing Development Finance Purpose: Fund and monitor the delivery of all housing and human settlements programmes, including oversight of public entities reporting to the Minister of Human Settlements and manage all matters related to improving access to housing finance and developing partnerships with the financial sector.

14. Human Settlement Priorities 1. Accelerated delivery of housing opportunities Upgrading of 400 households in Informal Settlements 2. Accessto basic services Affordable Rental Housing Stock 20 000 units p.a. National Bulk Infrastructure Programme and Increased Access to Basic Services 3. More efficientland utilisation Acquisition of 6250 ha state owned land 4. Improved Property Market Supply of Affordable Housing Finance to 600 000 households Draft, Confidential & Not for Publication

15. Performance Indicators and Targets 2013/14

16. Key Performance Indicators Draft, Confidential & Not for Publication

17. Key Performance Indicators Draft, Confidential & Not for Publication

18. Financial Information

19. 2013 MTEF Allocation

21. Transfer payments

22. Human Settlements Development Grant Provincial Allocations

23. Human Settlements Development Grant • Goal - The creation of sustainable human settlements that enables an improved quality of household life • Purpose - To provide funding for the creation of sustainable human settlements • Outcome 8- Facilitation and Provision of Access to Basic Infrastructure, Top Structures and Basic Socio Economic Amenities that contribute to the creation of sustainable human settlements • Improved rates of employment and skills development in the delivery of infrastructure

24. National Priority Programme Allocations

25. 20% Allocation to Specific Outcome Targets

26. HSDG Allocations to Metropolitan Councils

27. Credit Linked Individual Subsidy Programme: • Free State, North West and Western Cape to implement the Programme; • Financed Linked Individual Subsidy Programme: • R239 million to be spent on the FLISP programme in Provinces and 2 500 beneficiaries to benefit; • Rectification Programme • Plans to spend R686 million in all Provinces in 2013/14; • Accreditation support to municipalities: • R93 million to be spent on this Programme in Provinces except for Gauteng and Western Cape;

28. Blocked projects: • R184 million planned to be spent to unblock projects in Eastern Cape, Free State and North West; • Land Parcels; • Provinces to procure land to the value of R278 million; • Rental and Social Housing: • Provinces plan to delivery 7 552 units amounting to R1.6 billion;

29. Incremental Housing Programmes: • Includes Informal Settlements Upgrading and Provinces plan to deliver 86 027 housing units and 60 922 serviced sites valued at R8.6 billion; • Rural Housing Programme: • The Programme has been allocated R2.7 billion by Eastern Cape, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape and North West.

30. Current Challenges • Lack of bulk and link infrastructure and related funding to implement projects; • Delays in the planning of supply chain management; • Lack of technical capacity at provinces and municipalities; • Poor in the alignment, cooperation and coordination of strategic objectives and programmes of Provinces, Municipalities and Entities • Inadequate medium and long term pipeline planning for programmes and projects; • Deficiencies in data management and integrity.

31. Interventions • Provinces and Municipalities to align all grants to ensure bulk infrastructure is in place before implementation of programmes and projects; • Provinces and Municipalities must develop and align programme and procurement plans • Feasibilties to ensure programme and project readiness. • Programme Management Units to be established and prioritised. • Provinces to utilise the HSS to administer and report on all human settlements delivery programme and processes.

32. Measures Undertaken by DHS • Provincial Business plans for 2013/14 have been received and analysed by the DHS. • The 2013/14 Allocation letters sent to Provinces to allow for programme and project planning • From 28 February to 1 March – 3rd Quarter Mid Term reviews were conducted with Provinces and Council on Performance, Spending and Planning for 2013/14 • DHS commented on 2013 DoRA Bill including Grant Frameworks.

33. Urban Settlements Development Grant Grant Purpose: • To improve the efficiency and coordination of investments in the built environment through: • Providing large municipalities with appropriate resources and control over the selection and pursuit of investment programmes in the built environment; • USDG is an instrument for Metropolitan Council to address linkages between public housing and economic growth to simultaneously and contribute to Human Settlements Outcomes

34. USDG - Objectives • USDG intends to integrate the release of well located land to the function of planning and funding of the built environment; • Encourage cities to be proactive developers of infrastructure on well located land by mobilizing domestic capital; • Compel improvement in development planning and also improve inter-governmental co-ordination (all 3 spheres) of development.

35. USDG - Objectives Introduced to address: • Problems of inadequate control and management of investment in the built environment; • Inadequate coordination of planning and weak accountability of all role players; and • Focus on the development of urban land and infrastructure that is intended to the lay the foundation for local municipalities to gradually assume a greater role in managing built environment investments

36. USDG Allocations to Metropolitan Councils

37. USDG Delivery Performance 37

38. Challenges • Lack of Coordination and alignment experienced within Metros that causes poor service delivery coordination for USDG; • Lack of capacity to carry out programme plans; • Critical vacancies and consistency of personnel managing the USDG; • Land acquisition challenges and limited land in close proximity to the city centre;

39. Multi-year projects are budgeted for in one financial year due to inadequate planning of projects; • Lengthy procurement processes; • Legal challenges - Tenders being contested in court for major projects; • Management and governance of informal settlements;

40. Interventions • Improving the alignment and coordination in implementation of the USDG; • Capacity constraints to be addressed through the Cities Support Programme established by National Treasury; • Metropolitan Municipalities encouraged to appoint officials on a full time; • Land acquisition management to be improved with the assistance of the Housing Development Agency;

41. Conducting of project readiness and attached list of projects as addendum to Performance Matrix; • Councils to develop a programme plans aligned to procurement plans • National and Provincial support for land acquisition, informal settlement upgrading and policy formulation to support council implementation

42. Support Processes In Place • The Department has developed and presented a turnaround strategy to improve spending for the Councils’ and presented to Technical MinMec, Portfolio Committee on Human Settlements etc. • Performance Matrix developed that addresses human settlements related issues • Consulted with National Treasury to incorporate the matrix in the Service Delivery Business and Implementation Plan (SDBIP) reporting template so as to have one single reporting template • Support to be provided through the National City Support Programme (CSP) to the Metros with capacity constraints.

43. Support Processes In Place • The Department has the following systems in place for monitoring the implementation of the USDG: • Quarterly oversight visits are planned with all Councils to monitor progress and to address challenges. • Quarterly reviews are conducted with Metros. • Monthly Expenditure Analysis and Quarterly feedback to individual metros. • Regular reviews and programme and policy support with Sector Department to Councils – City Budget Forum, Outcome 9, NUSP and Accreditation .

44. Rural Households Infrastructure Grant • The purpose of the Grant is to provide capital funding for the reduction of rural water and sanitation backlogs and to target existing households where bulk dependent services are not available. • The grant was initiated as a schedule 7 grant in the 2010/11 financial year and amounted to R1.2 billion. • The grant has allowed for 50 065 Household to have been served with basic sanitation since its inception in 2010.

45. The schedule of the grant has changed from schedule 7 to 5b with effect from 2013/14. • The Grant will be implemented by municipalities with the support of the Department • For the next three years the grant allocation is as follows: 2013/14: R106 million 2014/15: R113 million and 2015/16: R118 million.

46. RHIG Allocation per Municipality

47. RHIG Allocation per Municipality

48. RHIG Allocation per Municipality .

49. RHIG Allocation per Municipality

50. Departmental Support To Municipalities The Department will support municipalities in the following manner: • approve the business plans submitted by municipalities; • Continuously monitor implementation and provide support to municipalities; • Submit monthly financial and quarterly non- financial reports to National Treasury; • Submit an annual evaluation report after the end of the financial year; and • Prepare a payment schedule for the transfer of the grant to municipalities.