urban settlements development grant presentation 19 september 2012 nelson mandela bay metropolitan...

URBAN SETTLEMENTS URBAN SETTLEMENTS DEVELOPMENT GRANTDEVELOPMENT GRANT

PRESENTATIONPRESENTATION

19 September 201219 September 2012

NELSON MANDELA BAY METROPOLITAN MUNICIPALITYNELSON MANDELA BAY METROPOLITAN MUNICIPALITY

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Size …………………………….. 1950 km²

Population .……………………… 1,1 million - 1,24 million by 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%

NMBM STATISTICS

FINANCIAL PERFORMANCE- 2011/12 -

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USDG FINANCIAL PERFORMANCE

2011/12 Performance

 Budget

R '000 Actual Spent% Spent on

Budget

Human Settlements 97,000,000 77,551,202 80%

Electricity and Energy 30,000,000 35,390,213 118%

Roads & Stormwater 173,309,000 211,276,179 122%

Water Services 57,000,000 68,800,986 121%

Sanitation Services 113,723,000 101,740,728 89%

Public Health 31,594,000 30,268,201 96%

  502,626,000 525,027,509 104%

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

2012/13 FINANCIAL ALLOCATION

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URBAN SETTLEMENTS

DEVELOPMENT GRANT

2012/13 ALLOCATION METHODOLOGY

• Allocation:

• 2012/13: R592 870 000• 2013/14: R727 986 000• 2014/15: R845 778 000

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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

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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

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HUMAN SETTLEMENTS (MAJOR PROJECTS)Project

IDProject

Title

Requested Budget 2012/13

Comments (Project Readines)

20110088Joe Slovo - Uitenhage Phase 1

7,873,950

Contractors are on site, and progressing in line with revised project programme.

20110089Wells Estate Phase 3 - Ext 3,4 & 5

16,603,642

• By the mid-October 2012 approximately ±100 empty plots will have been serviced and be available in Extension 3.• By the end of January a further approximately ± 143 empty plots will be available in Extension 5.• The balance of the 1088 erven will be finished by May 2013.

20110091Khayamnandi Extension

46,908,100

Contractors are on site, and progressing in line with revised project programme.

20110092Missionvale Garden Lots

30,441,250

Contractors are on site, and progressing in line with revised project programme.

20110093Motherwell NU 29 - Stage 3

20,702,800

Contractors are on site, and progressing in line with revised project programme.

20110096 Rosedale 6,473,490

Contractors are on site, and progressing in line with revised project programme.

20070267 Land Aquisition

20,000,000 Negotiations in progress with willing sellers.

20120055 Motherwell NU 30

15,018,000 Currently in tender process. Linked to Bulk Stormwater.

20120051 Nkatha Seyidi – Enkuthazweni 1,847,214

Contractors are on site, and progressing in line with revised project programme.

165,868,446  

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NON-FINANCIAL PERFORMANCE

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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

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PROPOSED OUTPUTS AND PERFORMANCE - 2011/12

KPIs TARGET ACTUAL

Number of RDP houses built 3 600 1 752 built (1 133 houses rectified)

Number of erven serviced 3 000 2 743

Number of social housing units built and FLISP

300 - 61 occupied- 347 social housing serviced- 95% of 432 FLISP units services

Number of informal settlements upgraded/formalised

1 new Greenfield to be constructed and 4 in situ development areas to be completed

1 new Greenfield (Motherwell NU29 constructed and 4 in situ development areas completed (Zosa Street, Kleinskool, Mandela and Rholihlahla) 12

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PROPOSED OUTPUTS 2012/13

SERVICE2012/13 (target)

Number of low-cost housing units built 3 000

Number of households receiving free basic services 100% of qualifying households

Number of new households connected to water 3 000

Number of new households connected to sanitation 3 000

Number of new households connected to electricity 4 000 state subsidisedand informal houses and 300 non-electrifiedhouseholds

% of households on officially surveyed sites connected to electricity

97%

% households receiving basic refuse removal services (within the urban edge)

100%

Number of sports facilities upgraded 1 (Wolfson Stadium)13

ERADICATION OF INFORMAL SETTLEMENTS- incl. Bucket Eradication -

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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

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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

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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 m17

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. 18

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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. 20

ERADICATION OF INFORMAL SETTLEMENTS

- Constraints -

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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.

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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.

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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.

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CONCLUSIONThe 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.