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PROGRESS REPORT ON THE RURAL PROGRESS REPORT ON THE RURAL HOUSEHOLD INFRASTRUCTURE HOUSEHOLD INFRASTRUCTURE

PROGRAMME (RHIP)PROGRAMME (RHIP)

2222ndnd JUNE 2012 JUNE 2012

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PRESENTATION OUTLINEPRESENTATION OUTLINE

• RHIP Overview• RHIP Objectives• Progress per Province – 2010/11• Challenges – 2010/11• Progress per Province – 2011/12• Financial Performance – 2011/12• Job Creation – 2011/12• Health and Hygiene – 2011/12• Challenges – 2011/12• Way Forward – 2012/13 & 2013/14

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RHIP OVERVIEWRHIP OVERVIEW

• The RHIP is a special four year programme to provide basic sanitation (and water) to rural communities.

• It has been allocated a total budget of R1.2 billion.• The budget is allocated to the NDHS as a Schedule 7

Grant - NDHS appoints IAs & enters into SLAs with WSAs.

• The budget split over the MTEF is:− 2010/11: R100 million;− 2011/12: R231,5 million;− 2012/13: R479,5 million and− 2013/14: R389 million.

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RHIP OBJECTIVESRHIP OBJECTIVES

• To support municipalities to address rural basic sanitation (and water supply) backlogs.

• To improve the quality of life in rural communities. • To contribute to the rural development priority of

government.• To contribute to job creation and Local Economic

Development.• To contribute towards meeting the sanitation (and water

supply) MDG targets of South Africa.• To accelerate delivery of sanitation (and water supply) to

meet the 2014 target.

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PROGRESS PER PROVINCE - 2010/11PROGRESS PER PROVINCE - 2010/11

ProvinceAllocation: 2010/2011

(R’000)

Number of Benefiting

Municipalities

Target Number of VIP Toilets

VIP Toilets completed at

31 March 2012

% Completion

Eastern Cape R18,000 5 2,559 2,559 100%

Free State R3,000 1 300 300 100%

Limpopo R27,000 9 3,600 3,376 94%

KwaZulu-Natal R27,000 7 3,674 3,674 100%

Mpumalanga R4,000 1 515 515 100%

Northern Cape R3,000 1 400 400 100%

North West R6,000 2 828 828 100%

National Prog. Management

R12,000

Grand Total R100,000 26 11,876 11,652 98%

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CHALLENGES - 2010/11CHALLENGES - 2010/11

• Programme started in Oct 2010 (procurement delays).• Some WSAs did not fully grasp the nature of Schedule

7 Grant and delayed signing SLAs with NDHS as they wanted to implement the programme themselves.

• Excessive rainfall was experienced during December 2010 and January 2011 which caused delays.

• Implementing Agents struggled to source building material and have it delivered on site on time.

• Some contractors struggled with difficult ground conditions i.e. hard rock and high water table.

Progress Per Province – Progress Per Province – 2011/122011/12

Province

Allocation: 2011/2012

(R’000)

Number of Benefitting

Municipalities

Estimated Target

Number of Toilets

Total Pits Constructe

d at 30th April 2012

Total Toilets

Completed at 30th April

2012

% Scope of work under constructio

n at 30th April 2012

Eastern Cape R65,000 13 7,462 7,475 6,973 100.17%

Free State R10,000 3 1,297 1,220 1,095 94.06%

KwaZulu-Natal

R48,000 15 7,967 7,369 6,752 92.49%

Limpopo R68,000 12 5,864 4,909 3,380 83.71%

Mpumalanga R8,000 2 1,038 1,038 969 100.00%

Northern Cape

R8,000 1 507 503 450 99.21%

North West R28,000 7 3,551 2,979 2,898 83.89%

Grand Total R231.5 53 27,686 25,493 22,517 92.08%

Draft and Confidential 7

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FINANCIAL PERFORMANCE - 2011/12FINANCIAL PERFORMANCE - 2011/12

Province2011/12 Allocation & 2010/11 Rollover

Provisional Expenditure at

31 March 2012Work in Progress

KwaZulu-Natal R80,487,091 R63,207,997 R17, 279,094

Eastern Cape R65,000,000 R55,868,072 R9,131,928

Limpopo R54,552,091 R26,688,032 R27,864,059

North West R30,063,533 R22,711,497 R7,352,036

Free State R12,924,676 R8,548,344 R4,376,332

Mpumalanga R10,086,447 R7,943,553 R2,142,894

Northern Cape R4,394,162 R2,298,425 R2,095,737

Grand Total R257,508,000 R187,265,920 R70,242,080

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JOB CREATION - 2011/12JOB CREATION - 2011/12 Province

No of Benefiting Municipalities

Estimated Target No. of VIP Toilets

Jobs Created as at 31 May 2012

Eastern Cape 13 7,462 1,372

Free State 3 1,297 181

KwaZulu-Natal 15 7,967 1,254

Limpopo 12 5,864 867

Mpumalanga 2 1,038 324

Northern Cape 1 507 70

North West 7 3,551 658

Grand Total 53 27,686 4,726

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HEALTH & HYGIENE - 2011/12HEALTH & HYGIENE - 2011/12 Province

No of Benefiting Municipalities

Estimated Target No. of VIP Toilets

H&H Visits (x3) as

at 31 May 2012

Eastern Cape 13 7,462 7,462 (3rd visits)

Free State 3 1,297 1,297 (2nd visits)

KwaZulu-Natal 15 7,967 2,742 (3rd) & 5,225 (2nd)

Limpopo 12 5,864 1,014 (3rd) & 4,850 (2nd)

Mpumalanga 2 1,038 519 (3rd) & 519 (2nd)

Northern Cape 1 507 507 (3rd visits)

North West 7 3,551 2,300 (3rd) & 1,251 (2nd)

Grand Total 53 27,686 14,544 (3rd) & 13,142 (2nd)

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CHALLENGES - 2011/12CHALLENGES - 2011/12

• The 2 appointed Implementing Agents (Mvula Trust and IDT) were not sufficient to implement such a programme at scale and achieve the outcomes set.

• The existing SLAs between the NDHS and the Programme Management Support PSP (Maxima Global/TranSpace) on one hand and Mvula Trust and IDT on the other were not consistent with each other.

• The process of handling claims of the Implementing Agents needed to be restructured to assist them with improved cash-flow management.

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CHALLENGES - 2011/12 cont…CHALLENGES - 2011/12 cont…

• The recovery plans submitted in Sept 2011 by the 2 Implementing Agents were too optimistic.

• The IAs ability to procure building materials from suppliers in large quantities posed a serious challenge to the outcomes of the programme.

• The scope of work approved for the IDT was at high risk of not being completed by end of the 2011/12 financial year.

• In December 2011 NDHS re-allocated 7,098 units from IDT and negotiated with Mvula Trust to complete these units by the end of the 2011/12 financial year.

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WAY FORWARD - 2012/13 & 2013/14WAY FORWARD - 2012/13 & 2013/14

• NDHS has reduced the previously budgeted allocations of IDT and Mvula Trust to a total of +/-60% of the 2012/13 budget (in line with NDHS Portfolio Committee recommendations).

• NDHS is currently in process of putting the +/- 40% balance of the 2012/13 budget to tender for additional Implementing Agents to be added to the programme.

• The SLA of the Programme Management Support PSP is to be aligned to the performance of the IAs.

• In 2012/13 both machinery & manual labour will be used in difficult ground conditions where needed.

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THANK YOUTHANK YOU