EASTERN CAPE DEPARTMENT OF HOUSING PRESENTATION TO SELECT

EASTERN CAPE DEPARTMENT OF HOUSING PRESENTATION TO SELECT COMMITTEE ON FINANCE 13/02/08 HOUSING EXPENDITURE FOR THE FIRST 9 MONTHS 2007/08 FINANCIAL YEAR MEC : HLTA: Mrs. T Xasa

Key challenges Practical realities on the ground STRICTLY CONFIDENTIAL - NOT FOR CIRCULATION

Poor planning Approval of projects that are not ready Land issues 14/02/2022 STRICTLY CONFIDENTIAL - NOT FOR CIRCULATION 3

Lean pool of established contractors attracted to low cost housing resulting in retendering Inability of bidders to produce NHBRC certificates Slow NHBRC project and home enrollment Material Supplies 4

Slow take off of the established contractor construction Re tendering for the emergency housing NHBRC slow start on the rectification programme EIA 5

HOUSING EXPENDITURE - PER SUBSIDY INSTRUMENT 1 st 9 MONTHS OF 2007/08 6

CASH FLOW FORECASTS vs. EXPENDITURE IRO PROJECTS PER DISTRICT - THE 1 ST 9 MONTHS OF 2007/8

ACTUAL OUTCOME HOUSING CONDITIONAL GRANT 2007/08 HOUSING ALLOCATION 2007/08 R 1, 052 , 554 LESS: FUNDS SURRENDERED REVISED ALLOCATION 2007/08 R R 543, 078 509, 476 R R 155, 219 354, 257 LESS: EXP. AS AT END DECEMBER 2007 BALANCE OF FUNDS – 31 Dec. 2007 8

HOUSING EXPENDITURE - PER SUBSIDY INSTRUMENT NOV & DEC - 2007/08 (AFTER REVISION) 9

Alternative Military sanitation and energy Veterans Programme Inclusionary Delivery housing Intensify on social housing rural housing AREAS TO BENEFIT FROM R 500 M 14/02/2022 STRICTLY CONFIDENTIAL - NOT FOR CIRCULATION 10

HOUSING CONDITIONAL GRANT - 2007/08 CASH FLOW FORECAST – 4 TH QUARTER JANUARY 2008 FEBRUARY 2008 146, 816 MARCH 2008 136, 042 TOTAL R R 71, 399 R R 354, 257 11

Land acquisition for inclusive housing ◦ The department is currently busy with Audit of well located & suitable land for Housing Development. Negotiations are already in process for land in identified areas e. g. Maletswai & Buffalo City Municipalities 192 units in Amalinda (SOHCO) have had their consents signed and are in the process of taking transfer 2007/8 Non Financial Performance 14/02/2022 STRICTLY CONFIDENTIAL - NOT FOR CIRCULATION 12

Rural Housing Summit and launch of innovation hub 37 new projects and 16 385 housing subsidies approves 2 Locrete Technology show houses from Kuwait completed and packaged for shipping 14/02/2022 STRICTLY CONFIDENTIAL - NOT FOR CIRCULATION 13

6342 sites serviced 4569 houses completed and 3000 at various stages of completion 3519 transfers registered 14/02/2022 STRICTLY CONFIDENTIAL - NOT FOR CIRCULATION 14

Progress on the Turn Around Plan : Operation Thunderstorm: n Various Housing Projects Nine projects allocated to established contractors n Construction commenced in all nine projects n Expenditure kicked in December 15

Progress on the Turn Around Plan : Proactive Planning for 2008/9 n Department Driven projects n Tenders for 14 projects translating into 5191 units now under adjudication n Appointments to be made by end Feb and contracting and site establishment planned for March 16

Progress on the Turn Around Plan : Proactive Planning 2008/9 Municipal Driven projects ◦ Tender process completed for 15 projects amounting to 8461 housing units with a value of R 329, 082, 134 ◦ Awarding of tender during February 17

Progress on the Turn Around Plan : Capacity Enhancement The appointment of a Rapid Delivery Team (multi disciplinary) to augment the capacity of the department in various disciplines and assist with fast tracking delivery has been done and the team is in operation. 3 GM and 2 Senior Managers appointed ◦ 39 positions advertised 16 are technical 18

Thank You