URBAN SETTLEMENTS DEVELOPMENT GRANT PRESENTATION 19 September 2012

1. NELSON MANDELA BAY METROPOLITAN MUNICIPALITY URBAN SETTLEMENTS DEVELOPMENT GRANT PRESENTATION 19 September 2012

2. NMBM STATISTICS Size …………………………….. 1950 km² Population .……………………… 1,1 million - 1,24 millionby 2020 Formal Households …...………. 254 007 Indigent Households …………… 44% of households receive at least one social grant Housing Backlog………………… 49 000 Backyard Shacks 22 411 households in Informal Settlements Total………………………………. 71 411 units Number of Informal Settlements..81 Access to basic sanitation …….. 91% Buckets in informal areas …...… Over 23 000 Unemployment …….…………… 28,2%

3. FINANCIAL PERFORMANCE- 2011/12 -

4. USDG FINANCIAL PERFORMANCE 100% of the USDG funding was spent – the remainder 4% was covered from internal funding.

5. 2012/13 FINANCIAL ALLOCATION

6. URBAN SETTLEMENTS • DEVELOPMENT GRANT • 2012/13 ALLOCATION METHODOLOGY • Allocation: • 2012/13: R592 870 000 • 2013/14: R727 986 000 • 2014/15: R845 778 000 6

7. URBAN SETTLEMENTS • DEVELOPMENT GRANT • 2012/13 ALLOCATION METHODOLOGY • Total Allocation: R592,87 million • - Human Settlements = R165 868 446 • - Water Services = R132 401 554 • - Sanitation = R232 600 000 • - Roads = R 62 000 000 • Note: The above allocation is in support of eradication and upgrading of informal settlements. 7

8. USDG ALLOCATION METHODOLOGY • Transforming the current township into sustainable human settlements. • Provision of bulk services for new development. • Acquisition of land for housing delivery. • Provide reticulation services for housing delivery: • - thereby eradicating buckets 8

9. HUMAN SETTLEMENTS (MAJOR PROJECTS)

10. NON-FINANCIAL PERFORMANCE

11. Outcome 8 Central to the provision of integrated and sustainable human settlements are the following Outcome 8 outputs: • Output 1 – Upgrading of informal settlements • Output 2 – Improving access to basic services • Output 3 – Facilitating the provision of Gap Market Units • Output 4 – Mobilising well located public land for low- income and affordable housing

12. PROPOSED OUTPUTS AND PERFORMANCE - 2011/12

13. PROPOSED OUTPUTS 2012/13 13

14. ERADICATION OF INFORMAL SETTLEMENTS- incl. Bucket Eradication -

15. METHODOLOGY • Elimination of informal settlements. • Elimination of buckets. • Reduction of flooding • Provision of serviced sites: • Top structures • Water & Sanitation connections • Waste collection • Basic Roads • Public transport routes • Basic stormwater control • Electrical services

16. PLANS TO ERADICATE INFORMAL SETTLEMENTS • Key sector plans: • Informal Settlements Upgrading Plan. • 7-Year Housing Plan (2009 – 2016). • Relocation Plan. • Land asset management and control. • Social Housing Strategy. • Spatial Development Framework and Local Spatial Development Framework preparation. • NMBM Housing/Rental Strategy with HDA. • Bucket Eradication Strategy & Business Plan • Services Master Plans

17. BUCKET ERADICATION • Bucket eradication programme (BEP) strategy: • Integrated approach through the housing delivery programme as approved by NMBM Council. • Elimination of informal settlements by 2016. • Construction of a house = serviced site (W&S etc). • BEP = R4 394 m (in terms of business plan submitted to Province and National) – over approx. 5-year period: • Top structure subsidy = R2 357 m – approx. R500 million required per annum. • Services (internal, bulk & treatment) = R2 037 m

18. ALIGNMENT WITH HSDG • The Municipality prepares serviced sites (USDG) in advance of applying for project approval for house construction. • There is a continuous process of three phases which comprises: • Serviced sites • Project application • House construction • The above processes are monitored through a readiness matrix.

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20. ALIGNMENT WITH HSDG …cont. PROVINCIAL & MUNICIPAL CO-ORDINATION • Meetings are held monthly to discuss HSDG project management. • Reporting being extended to include USDG matters such as: • the readiness matrix, • alignment, • communication issues, • expenditure and deliverables, etc.

21. ERADICATION OF INFORMAL SETTLEMENTS- Constraints -

22. BUCKET ERADICATION CONSTRAINTS • Awaiting response from Department of Human Settlements for the Metro Business Plan on Sanitation programme. • Current status was raised at the Ministerial Sanitation Task Team meeting held on 7 June 2012. • USDG allocations inadequate to meet the demands of the municipal programme.

23. BUCKET ERADICATION CONSTRAINTS NMBM strategy for bucket eradication is based on the delivery of an integrated human settlement whereby a constructed house will have dignified sanitation for the beneficiary. NMBM has considered various sanitation options to eradicate buckets in informal settlements which led to the proposal to construct communal toilet blocks. As a result of the high cost, the business plan was developed for an integrated approach to bucket eradication. 23

24. BUCKET ERADICATION CONSTRAINTS • Based on the current situation, the NMBM will have to consider an interim position to eradicate buckets while human settlements are being established. • Therefore, NMBM will have to revisit its position with regard to an interim communal block sanitation and develop a business plan to support the funding of this approach to the Provincial/ National Sanitation Programme Managers. • NMBM will allocate a portion of USDG funding to implement localised alternative sanitation options for informal settlements.

25. CONCLUSION The delivery of an Integrated Human Settlement is key in addressing all service delivery needs, BUT the allocated funding streams must speak directly to this delivery mechanism. The Municipality is committed to the development of integrated sustainable human settlements in terms of the USDG / HSDG.