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Progress Report on Infrastructure and Housing Projects in Western Cape

The presentation provides an overview of progress made in unblocking projects, eradicating mud houses, replacing asbestos roofs, implementing procurement allocation, issuing title deeds, and upgrading informal settlements in the Western Cape Province. The report highlights challenges, achievements, and future plans in the housing and infrastructure sector.

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Progress Report on Infrastructure and Housing Projects in Western Cape

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  1. Department of Infrastructure Portfolio Committee on Human Settlements Western Cape Province 20 September 2023

  2. Overview of Presentation Progress report on the unblocking of blocked projects Progress report on eradication of mud houses Progress on replacement of asbestos roofs Response to and lessons learned from recent natural disaster (nothing to report) Progress report on the 40% allocation of procurement to designated groups Progress made with the issuance of title deeds Upgrading of informal settlements Redevelopment of public sector hostels Delivery of bulk infrastructure in Priority Development Areas 2

  3. Unblocking of Blocked Projects

  4. Progress Report on the Unblocking of Blocked Projects  The department has identified 38 projects to unblock over the 23/24 and 24/25 financial year. The PHP unit is closing off all old PHP projects in the second half of the 2023/24 financial year,  Many projects are complete but require adjustment of details on the Housing Subsidy System,  Three projects in the Metro, Airport precinct, Ithemba and Welmoed are being delayed due to slow relocation of communities on the sites and intimidation of contractors.  The Stellenbosch Kayamandi project was delayed due to problems relocating families. However, the project is now progressing.

  5. Progress Report on the Unblocking of Blocked Projects  The Siyahalala and Fairylands projects in Drakenstein are being completed with houses being built for the last remaining qualifying beneficiaries.  The Grabouw and Riviersonderend projects will be completed by the Municipality using new contractors.  The Gansbaai project in the Overstrand area is being completed after relocation of the last beneficiaries.  The Yak’Indlu project in Mossel Bay is being completed by the Municipality.  The Saldanha White city project is being completed in the current financial year.  The Malmesbury de Hoop project first phase is complete. Further phases are commencing in the second half of the financial year.

  6. Eradication of Mud Houses

  7. Eradication of Mud Houses  There are instances where beneficiaries were engaged, and they indicated displeasure at forgoing a bigger house in order to get what they viewed as a smaller unit. The Department cannot operate outside applicable norms and standards as provided for by government.  We are not aware of any eradication in 2022/2023 and prior to that but at this stage, the following are planned to be replaced in 2024/2025: 20 mud houses in Matjiesfontein (Laingsburg); and • 19 mud houses in Bongolethu (Oudtshoorn). •

  8. Replacement of Asbestos Roofs

  9. Replacement of Asbestos Roofs  The costs will be substantial, for the Western Cape as we are estimating a cost of R8-10 billion and there are no funds set aside for this.  Budgetary constraints, which are set to worsen based on recent media reports, also do not allow us to prioritise the "Programme".

  10. 40% allocation of Procurement to Designated Groups

  11. 40% allocation of Procurement to Designated Groups  It should be noted that the former Western Cape Department of Human Settlements tracked the empowerment of designated/ target groups through the indicators reflected below: 2019-2024 MTSF Performance: as at 31 March 2023 2022/23 Performance Indicator Target Actual Percentage of the Human Settlements Development Grant (HSDG) paid to contractors in targeted groups in terms of the Preferential Procurement Policy Framework Act (PPPFA), within the housing sector by 31 March 2023. 50% 66.39% 67.33% Percentage of the amount spent on targeted groups paid to contractors with women representation, within the housing sector by 31 March 2023 10% 15.96% 14.53% 3.11 Percentage of the amount spent on targeted groups paid to contractors with youth representation, within the housing sector by 31 March 2023 4% 13.29% 5.2% 11

  12. Progress Made in the Issuance of Title Deeds

  13. Progress made with the issuance of Title Deeds Role of Municipalities Western Cape Subsidised Projects are mostly done by Municipalities, and they are responsible for effecting transfers to enable the release of title deeds Shortcomings relating to underperformance with transfers at Municipalities were identified as: o Personnel Shortages o High turnover in personnel o Time-consuming supply chain processes o Challenges with deceased estates, contestations, absent beneficiary, other occupant, etcetera. Departmental capacity The institutionalisation of the Title Deeds function straddled 3 Chief Directorates. Although the title deed team is still under resourced in the Department, the streamlining of the function resides within one Chief Directorate. The appointment of the Programme Manager is also a recent success. Title Deed Action Plan The title deed action plan was designed to drive the turnaround approach to eradicate the backlog. 13

  14. Progress made with the issuance of Title Deeds Title Deeds Action Plan Original Title Deeds Action Plan approved by Minister Simmers in 4thQuarter 2022/2023 and envisaged 4-year appointment of external Program Manager to drive the action plan. Appointment of Programme Manager effective May 2023. Key short-term deliverables of Programme Manager: o Revise TRP/Title Deeds Action Plan, best practices re internal processes and liaise with Municipalities, crafting Due Diligence terms of reference to understand the status of title deeds in each Municipality. o Appoint a Data Analyst and an Information Analyst to unpack the HSS and merge with the Due Diligence outcomes. o Appoint Professional Resource Teams to address the gaps and to render assistance to the Municipalities. 14

  15. Current Backlog as at 31 March 2023 Municipalities Pre-1994 1994-2014 2015-2018 2019-Current Source Beaufort West Bergriver Bitou Breede Valley Cape Agulhas Cederberg CoCT ±1030 36 ± 278 732 47 88 ± 3000 136 23 3298 705 12 22 6511 335 6 99 299 787 0 5404 0 0 0 0 0 Municipality and HSS Municipality Municipality Municipality Municipality Municipality Municipality (current and older info) 84 1261 Drakenstein George Hessequa Kannaland Knysna Laingsburg Langeberg Matzikama Mossel Bay Oudtshoorn Overstrand Prince Albert Saldanha Stellenbosch Swartland Swellendam Theewaterskloof Provincial Witzenberg Total 460 569 ± 550 49 ± 120 1712 585 421 433 ±4600 53 368 178 244 466 252 53 807 779 36 40 5503 1440 759 24836 361 757 3 0 1 4 2 12 5 4 3 1 63 108 0 36 0 22 79 8391 755 119 0 0 0 0 0 0 0 0 0 0 309 0 276 0 0 0 144 2948 Municipality Munciipality Municipality and HSS Municipality HSS HSS Municipality Municipality Municipality and HSS HSS Municpality HSS Munciipality Municipality and HSS Munciipality Municipality and HSS Munciipality HSS HSS Not Available 302 23 ±1650 Not Available 160 Not Available 520 ± 300 ± 13 ± 28 252 Not Available Not Available 10247 15

  16. WESTERN CAPE DHS Q1 2023/2024 TRANSFER INFORMATION Municipality PRE-1994 1994-2014 2015-2018 2019 TO CURRENT Berg River Breede Valley Bitou Beaufort West Cape Agulhas Cederberg Drakenstein George Hessequa Kannaland Knysna Laingsburg Langeberg Matzikamma Mossel Bay Oudtshoorn Overstrand Prince Albert Saldanha Bay Stellenbosch Swartland Swellendam Theewaterskloof Witzenberg City of Cape Town Own Projects Pre-1994 DHS SUBTOTALS 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 37 0 0 0 0 0 2 0 0 0 0 0 7 0 13 0 9 80 0 1 9 0 136 3 0 297 124 0 0 0 0 52 0 8 0 0 0 5 1 0 0 1 0 7 56 0 254 15 0 7 2 0 0 0 0 0 0 17 45 37 0 0 0 29 0 0 67 663 16

  17. Upgrading of Informal Settlements

  18. Upgrading of Informal Settlements  The Department’s approach to informal settlement upgrading is anchored in a transversal and Provincial-wide informal settlement upgrading strategy (driven by the Informal Settlement Support Programme, of which the Department is the custodian), which seeks to enhance, simplify, and accelerate informal settlement upgrading interventions.  The strategy as the foundation for the effective prioritization, planning, implementation, and maintenance of interventions in informal settlements has guided the rollout plans across the province. The ISUP-Grant has also ensured that more support and funding commitment is channeled towards UISP projects or related interventions seeing a total of 45 different informal settlement projects funded in the 2022/23 financial cycle.

  19. Redevelopment of Public Sector Hostels

  20. Redevelopment of Public Sector Hostels  The Community Residential Unit (CRU) programme is being replaced by the ‘Redevelopment of Public Sector Hostels and Rental Housing Stock’ Programme.  The revised policy is currently out for comment. The Department provided comment to the National Department on 15 September as required.  The major challenge facing the programme is the large operational subsidies required to make up the shortfall between the proposed rental revenue from the target group of those earning below R5 500 per month, and what the required operational costs will be in terms of Economic Cost Recovery (ECR).  The revised policy is premised on municipalities needing to fund the large operational deficits. Most municipalities do not have the revenue or cash reserves to fund these deficits.  The Department therefore is not able to support the revised policy in its proposed form, until such time as a sustainable financial model is developed. The Department is actively participating in the National CRU Task Team, as part of the consultation process, in a bid to develop sustainable solutions to much needed affordable rental accommodation.

  21. Delivery of Bulk Infrastructure in Priority Development Areas

  22. Delivery of Bulk Infrastructure in Priority Development Areas  Bulk infrastructure funding in the 2022/23 financial year was through Own Revenue and mainly on projects within the Metro Priority Development Areas.  The following projects were referenced in the 2022/23 Financial Year:  Penhill Bulks USDG Electrical required  Penhill Bulks USDG Civils required  Airport Precinct USDG Electrical required (ISUPG)  Airport Precinct Bulks USDG Civils required

  23. Thank you

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