GAUTENG DEPARTMENT OF HUMAN SETTLEMENTS

1. GAUTENG DEPARTMENT OF HUMAN SETTLEMENTS 17 MARCH 2015

2. CONTENT • Gauteng Department of Human Settlements Report • Reports for Metropolitan Municipalities • Johannesburg metropolitan Municipality • Tshwane Metropolitan Municipality • Ekurhuleni Metropolitan Municipality

3. INTRODUCTION • The National Department of Human Settlements presented Section 32 Reports to the Portfolio Committee on Human Settlements • The Department and its Metropolitan Municipalities were found to be underperforming • The Portfolio Committee invited the Department and its Metropolitan Municipalities to present the challenges relating to: • Delivery and expenditure on the Human Settlements Development Grant (HSDG) • Delivery and expenditure on the Urban Settlements Development Grant (USDG) • Performance on Social and Rental Housing • Performance Mining Towns • Delivery performance on rectification • Delivery performance on other milestones on the Operational Expenditure Budget in support of the implementation of National and Provincial Housing Programmes (OPSCAP)

4. 1. DELIVERY AND EXPENDITURE ON THE HSDG

5. DELIVERY AND EXPENDITURE ON HSDG [Cont.]

6. CHALLENGES EXPERIENCED IN HSDG DELIVERY • Budget revision and revision of targets by 9262 housing opportunities due to expenditure on items that were not on the Business Plan like rectification of hailstorm damaged houses and asbestos assessment by R1,1 billion • Regularization of expired and invalid contracts • For 2015/16 an allocation has been made for emergencies and disasters will be referred to COGTA • There will be no further assessment done for asbestos roofs

7. PERFORMANCE ON SOCIAL AND RENTAL HOUSING • GPF is the delivery agent for the Department for affordable rental and Social housing • GPF was not included in the original approved departmental budget and got allocated during the budget revision process • For the new financial year provision has been made for GPF and allocation will be in terms of the approved 5 year strategic plan

8. PERFORMANCE ON MINING TOWNS

9. PERFORMANCE ON MINING TOWNS

10. PERFORMANCE ON MINING TOWNS

11. PERFORMANCE ON MINING TOWNS

12. PERFORMANCE ON OTHER MILESTONES: OPSCAP OPSCAP used for shack fire disasters Costs relating to rates and taxes Security costs for completed houses and hostels not yet handed over Rental costs for regional offices Legal costs incurred to prevent illegal invasion, to obtain eviction orders Lease costs for temporal residential units and portable ablution facilities.

13. CONCLUSION • Our delivery model is underpinned by the connection between all elements of the human settlements: • Delivery of Gauteng Human Settlements Mega Projects • Refining the finance model to suit our new trajectory • Capacity of the Province to be improved - Industry specific qualifications • Strengthening the capacity of the PMO and Regions • Service Delivery Model will change to a teamwork approach • Integrated Planning (Intergovernmental Relations Strengthened) • Explore models to incentivise private sector investment in mega project • Unqualified Audit outcome

14. CONCLUSION • Programmes to improve our delivery model will include • Infill sites • Fully serviced sites • Employer assisted housing • Revised rental housing model • Social Housing Accelerated • CRU Improved Approach - Hybrid • Private Sector Partnerships • Urban Renewal • Revitalisation of mining towns

15. CONCLUSION END

16. USDG PRESENTATION FOR EKURHULENI METROPOLITAN MUNICIPALITY 13.03.15

17. FINANCIAL PERFORMANCE: CAPITAL BUDGET BREAKDOWN • The Ekurhuleni Metropolitan Municipality’s USDG Budget for the 2014/15 financial is 1 985 130 282, which includes the R 31 566 282 roll-over amount for the Human Settlement USDG. •  The total USDG expenditure as on the 06th of March 2015 is R 640 686 572 . • The expenditure represents 32.27% of the total budget for the 2014/15 • The total expenditure plus commitments was R 695 061 768 • The expenditure plus commitments represents 35.01% of the budget • The unspent funds as on the 09th of March 2015 is R 1 235 768 514.

18. FINANCIAL PERFORMANCE: PER SERVICE/DEPARTMENT

20. CHALLENGES & REMEDIAL MEASURES The Municipality has experience challenges that resulted in poor expenditure including amongst others as follows: • Review of the City’s procurement processes and introduction of new committees which slowed down the finalization of bids • Loss of technical capacity, which includes engineers and project managers • The Institutional Review is in the process of being approved by Council, and this will result in the augmentation of the organisational structure with appropriate levels of technical skills Remedial Measures • The EPMO set up for the Metro is complete with all top management positions filled. The set up of departmental PMO’s has commenced with more than 8 departmental PMO’s already operational. • EMM is working on implementing a project management system that will assist in planning and monitoring of projects • EMM has sourced external service provider to carry out an Implementing Agent Role for the substantial part of the Infrastructure Building Programme.

21. Non Financial Performance for Human Settlements - USDG funded projects

24. LINK BETWEEN USDG & HSDG Grants alignment – 2011 to 2015

25. EMM HSDG PROGRAMME OVERVIEW • The table above, illustrates that only a budget of 12% of active projects were considered by the GP DoHS. The funds (approximately 305 x R102, 000 per unit = R31.1 million) are yet to be made available to the EMM, despite the first quarter of the current financial year gone. • 2 455 unfunded units that can be delivered – only 305 are funded

26. EMM HSDG PROGRAMME OVERVIEW • The listed projects are being serviced by the EMM Water & Sanitation Department and can be made available for construction, subject to funding availability: • Should funding be made available, the EMM would be able to expand its performance • beyond the five (5) projects that are currently active.

27. END

28. USDG Progress Report for Quarter 2CITY OF TSHWANE

29. FINANCIAL PERFORMANCE Budget Allocation Allocation : R 1 469 450 000.00 Expenditure as at 31/12/2014 : R 528 021 782.00 35.9 % overall spent as at 31 December 2014

30. USDG 2014/15

31. USDG 2014/15

32. FINANCIAL PERFORMANCE: HOUSING AND HUMAN SETTLEMENTS

33. FINANCIAL PERFORMANCE: WATER AND SANITATION

34. FINANCIAL PERFORMANCE: ELECTRICITY

35. FINANCIAL PERFORMANCE: TRANSPORT

36. FINANCIAL PERFORMANCE: 28 February 2015 Allocation R1,469,450,000.00 Expenditure to date R630,973,302.00 Which is 43% of 14/15 USDG allocation as at 28.02.2015

37. FINANCIAL PERFORMANCE: PER DEPARTMENT AS AT 28 FEBRUARY 2015

38. CHALLENGES • Issues with Land Claims and re-opening of land claims process • Delays with finalization of LAAs • Land invasion • Disruptions on site by local labourers & Political interference • Huge boulders underground requiring blasting

39. MITIGATION PLAN • Regular Meetings with Land Claims Commissioner, Province and land claimants • Final LAA’s submitted to the City in February 2015 • Eviction of people illegally occupying land • Political Intervention • Increase resources on site

40. END

41. CITY OF JOHANNESBURG13 March 2015 2014/15 QUARTER 2

42. FINANCIAL PERFORMANCE & FORECAST TO JUNE’15

43. FINANCIAL PERFORMANCEPER SERVICE DELIVERY AREA

44. DETAILED PROJECT PROGESS

45. DETAILED PROJECT PROGESS

49. DETAILED PROJECT PROGESS

50. DETAILED PROJECT PROGESS