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DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING NORTH WEST PRESENTATION TO THE POTFOLIO COMMITTEE ON HOUSING 09 MAY 2006 HOD-M.I.MOTALA.
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DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING NORTH WEST PRESENTATION TO THE POTFOLIO COMMITTEE ON HOUSING 09 MAY 2006 HOD-M.I.MOTALA
STRUCTURE OF PRESENTATIONSTRUCTURE OF PRESENTATION1. BACKGROUND2. EXPENDITURE3. DELIVERY STATISTICS4. REASONS FOR UNDEREXPENDITURE5. INTERVENTIONS6. STATUS OF PROJECTS7. BNG8. OVERSIGHT , MONITORING AND EVALUATIONfrom here to Proper Human settlements
BACKGROUND ON HOUSING DELIVERY IN THE NORTH WEST PROVINCE 2. PROVINCIAL BACKLOGS Based on Census 2001 and Current Subsidy of R 31 929.00
DELIVERY STATS.(cont……) • The average delivery per year is 12 000 completed houses. • For the 2005/2006 target of 22 000, the department included a figure of 5 000 to deal with the backlog owing to the drop in delivery from the previous financial years • a further 5000 to deal with the normal growth pattern in terms of housing need.
REASONS FOR UNDEREXPENDITURE • lack of implementation capacity at Municipal level • departmental decision 2002 • management of consultants • hands off approach of department • lack of management information • non compliance with contractual conditions • blocked projects • forward planning • delays in processing claims(Province/Municipalities)
INTERVENTIONS • Compliance with contractual requirements and suspensive conditions • Enforcement of MPRs • Monthly meetings with municipalities by provincial project teams • Creation of departmental project teams per district • Monthly meetings with Municipal managers and project managers on a district basis • Analysis of blocked projects • Commitment beyond MTEF allocation
INTERVENTIONS(cont…..) • Project agreements cancelled with various municipalities: • Cancellation and transfer to performing turnkey developers • HMS developed to interface with HSS (Project Module) • Appointment of turnkey developers by department
STATUS OF PROJECTS • Planning 35 • Under Construction 111 • Completed 62 • Blocked 30 • Total 258 (Total Contractual commitments: R 2,1 Billion over MTEF)
BREAKING NEW GROUND • Two pilot projects in NW • Klerksdorp - Informal Upgrading 5 000 units (997 foundations in Kanana & 701 houses completed, 700 foundations in Jouberton & 318 houses completed) • Rustenburg – Integrated Human Settlement 5 000 units (Installation of services)
Other Key Elements of BNG • Socio - Economic Amenities • Farm Worker Housing • Accreditation of Municipalities • Job creation strategies • Emerging contractor support • To be provided in pilot projects (existing projects to be identified) • Finalization of policy required as well as socio economic audit • Ongoing as per policy • Implementation of EPWP mandatory in respect of new projects • Construction SETA and Dept of Labour • donated R 10m for the programme and NHBRC’s programme under implementation.
HSS database cleanup Rectification of defective houses Ongoing Financial module is 95% correct Subsidy Admin Module is 87% correct Project Module is 55% correct Budget Module has not been implemented HMS developed to interface with HSS (Project Module) Audit being conducted to implement rectification of houses built both pre-and post 1994 Other Key Elements of BNG
Implementation of the BNG / Capacity:Generally Challenge • Land • Inflation overtaken cost • Non performing developers/municipalities • Non and under performing contractors • Lower subsidy bands • Bulk services • Progress • Land Audits underway • New policy • Cancellation and transfer to performing turnkey developers • Cancellation and transfer to performing turnkey developers • Policy limitation • Coordination with MIG
Implementation of the BNG / Capacityat Municipalities Challenges • Abnormal delays in tender process at municipal level • To go out on tender • To evaluate tenderers • To appoint contractors • Appointing of contractors/consultants without • Proven track record • Capacity to deliver • Progress • Cancellation and transfer to performing turnkey developer • 28 Project agreements cancelled
Implementation of the BNG / Capacity:Post housing project completion responsibilities • Challenges • Maintenance of roads/services • Internal roads/services • Enforcement of municipal by-laws • Illegal structures • Illegal occupants • Illegal use of houses • Enforcement of effective billing systems • Nurturing a culture of payment for services
Oversight / Monitoring and Evaluation • Monthly meetings with Municipal managers and project managers on a district basis • Creation of departmental project teams per district • Monthly meetings with municipalities by provincial project teams • Enforcement of Monthly Progress Reports (MPR)