PROVINCE OF THE EASTERN CAPE DEPARTMENT OF HOUSING

PROVINCE OF THE EASTERN CAPE DEPARTMENT OF HOUSING LOCAL GOVERNMENT AND TRADITIONAL AFFAIRS DWAF PORTFOLIO COMMITTEE HEARINGS ON BUCKET ERADICATION PROGRESS Parliament of South Africa 10 October 2007 Presented By MEC T. Xasa

Presentation Content 1. 2. 3. 4. 5. 6. 7. Provincial Overview Backlogs Funding Expenditure Key Challenges Support Critical Project Challenges

Provincial Overview, Sept 2007 • • • 05/06 Formal Backlog 34 000 05/06 backlog translated to R 464 m Total Eradicated, end Sept 07 21 304 Completed Project Value R 228 m Remaining Backlog, end Sept 12 696 07/08 backlog translates to R 236 m 07/08 Available Funding R 236 m Eradicated in Sept 2007 1 287 Expected Monthly Rate 4577 pm • Upscale progress by 4 X times

Remaining Backlog, Sep 2007

2007/2008 Funding Streams • 07/08 MIG Allocation: R 148, 281, 000 • 07/08 MIG Additional: R 49, 590, 000 (Additional available from dplg, mid Oct 2007) • 07/08 DLGTA Allocation: R 22, 991, 000 • 07/08 DLGTA Additional: R 12, 613, 000 (Additional available from DHLGTA, end Oct 2007) • 07/08 Municipal Reported: R 2, 834, 841 (Funding Reported by municipalities) • 07/08 Total EC: R 236, 309, 841

2007/2008 Allocations / Expenditures Municipality Total Allocations (incl. additional) Total Expenditure (incl. additional) 6, 650, 000 456, 000 7% 51, 500, 000 1, 043, 000 2% OR Tambo DM 3, 117, 000 2, 825, 000 91% Alfred Nzo DM 779, 000 401, 000 51% Chris Hani DM 73, 076, 000 14, 026, 000 19% Buffalo City LM 520, 000 100% Amathole DM 49, 203, 841 125, 000 0. 3% Baviaans LM 9, 752, 000 2, 015, 000 21% Blue Crane LM 11, 029, 000 267, 000 2. 4% Ikwezi LM 11, 200, 000 711, 000 6. 3% Sundays RV LM 4, 705, 320 100% Makana LM 7, 827, 680 4, 867, 000 57% Kou Kama LM 6, 950, 000 0% 236, 309, 841 38, 911, 320 16% Nelson Mandela B M Ukhahlamba DM EC TOTAL % Expenditure

BEP Key Challenges CONSTRAINTS / CHALLENGES RECOMMENDED SOLUTIONS Up-gradable (pre-cast) system: Political engagement with (Water Borne) vs. tight time Communities to have buy-in. -frame (3 moths) Community expectations Inadequate Technical & Project Management Capacity in the WSAs Roll-out Hands-on Support Initiatives (DWAF Engineers, Siyenza-Manje to WSAs Absorption capacity to spend Provide more resources and late transferred allocations, encourage multi-contracts by Dec 2007 approach Projects still at preconstruction phase: Meeting the Dec 2007 target Adopt Business unusual approach by short-circuiting SCM processes to allow 3 to 2 months construction period

BEP Key Challenges CONSTRAINTS / CHALLENGES RECOMMENDED SOLUTIONS Environmental sensitive sites EIA exemptions should be fast tracked through EC-DEAET and DEAT HOD’s involvement have delayed projects implementation Hard rocky sites, cause delay Rope-in other departments to due to unforeseen financial provide machinery to avoid escalations possible financial escalations High Tendered Amounts vs. Projects Budgets, delay projects implementation For now, only financially stable contractors should be invited to tender to avoid re-tendering Termination of contracts due to poor performance also cause delays. Sub-contracting than terminations should be enforced through sessions

Hands on Support • DBSA-Siyenza Manje Programme – Deployed DBSA Engineers = 11 • Provincial MIG Support = 2 • Municipal PMU support = 9 – Young Technicians = 12 • District Cluster Facilitators = 4 • Municipal PMU Support = 8 • DHLGTA-Project Consolidate – Capacity Assessment Engineer = 1 – MIG-PMU Experts / Engineers = 2 • DWAF BEP Hands-on Support – Deployed Technical Officials = 2 – Contracted Engineers = 7 • DPLG BEP US-AID Support – Technical Experts / Engineers = 2

Situational Analysis OR Tambo DM • No. of Projects • Initial Backlog • Eradicated Backlog • Remaining Backlog • Construction Stage • Tender Stage • Design Stage 3 716 607 109 0 0 KEY CHALLENGES Mhlontlo: Ponds construction SOLUTIONS Up-pace the construction Ntabankulu: Septic tanks O&M should be prioritised to avoid overflows treat for new targets creation of new targets Meeting the target? YES No remedy needed

Situational Analysis Amathole DM • No. of Projects • Initial Backlog • Eradicated Backlog • Remaining Backlog • Construction Stage • Tender Stage • Design Stage 6 10 563 6 759 3 804 0 0 KEY CHALLENGES SOLUTIONS Newtown-Bhofolo: 1473 units remaining: Phase 4 to start soon. Multi-contract approach should be considered Bedford-Adelaide: 1522 units remaining: Construction experiences hard rock. Rope-in other departments to provide machinery to avoid possible financial escalations Meeting the target? The pace is too slow Upscale the current construction pace at least 4 times. No

Situational Analysis Chris Hani DM • No. of Projects • Initial Backlog • Eradicated Backlog • Remaining Backlog • Construction Stage • Tender Stage • Design Stage 12 8 700 5 915 2 785 2 730 55 0 KEY CHALLENGES Lady Free: 55 Units: Has been retendered more three times SOLUTIONS Only financially stable contractors should be invited to tender to avoid re-tendering Emalahleni: Indwe and Up-gradable system only option: Doodrecht, R 81 m, impossible Political engagement with spend within 3 to 2 months Communities to have buy-in. Meeting the target? Huge funds Absorption Capacity No Under construction: Up-gradable system and encourage multicontracts approach

Situational Analysis Ukhahlamba DM • No. of Projects • Initial Backlog • Eradicated Backlog • Remaining Backlog • Construction Stage • Tender Stage • Design Stage 7 6 746 3 483 3 263 1 251 1 580 432 KEY CHALLENGES Gariep: Steynsburg: 1580 at tender stage. No bulk water supply in place. SOLUTIONS VIP (up-gradable system) has been agreed with the communities, meanwhile bulk is under constr. Senqu: Barkley East: 1171 under VIP with Pre-cast structure are temporally provided and will construction. No bulk water be upgraded to water-borne supply in place. Meeting the target? Water-borne vs. Dec Target YES Community Buy-in to temporal arrangement.

Situational Analysis Cacadu DM • No. of Projects • Initial Backlog • Eradicated Backlog • Remaining Backlog • Construction Stage • Tender Stage • Design Stage 21 4 459 1 801 2 658 2 558 100 0 KEY CHALLENGES SOLUTIONS EIA exemptions is fast tracked through EC-DEAET and DEAT HOD’s involvement. Makana: 768 backlog will: Archaeological site (60 units affected) No Ikwezi: Janesville with 667 backlog: No funding (shortfall R 6. 6 m) DHLGTA will avail the shortfall by end Oct 07, allowing for 2 months construction YES Baviaans with a shortfall of R 6. 01 million for the bulk 3 projects DHLGTA will avail the shortfall by end Oct 07, allowing for 2 months construction YES

Situational Analysis Cacadu DM KEY CHALLENGES SOLUTIONS Nelson Mandela Bay M: 93 Upscale the current construction units under construction YES pace at least 4 times. Kou-Kamma: 100 at tender stage and 26 at construction No Business unusual approach by short-circuiting SCM processes Sunday’s River Valley: 17 top-structure completed Bulk under construction Funding available, need to upscale the construction of bulk connector Blue Crane Route: 612 Units: Khanyiso construction (429 units) experiencing hard rock YES Funding available, Rope-in other No departments to provide machinery to avoid possible financial escalations

Conclusion • A higher level (Chief Directorate / DDG) forum has been established with all affected sector departments, in ensuring that there is optimal resourcing of the BEP and integration thereof. • Linked to the forum is the Mayor/ Municipal Managers of the WSAs forum, that should sit fortnightly to monitor progress on the ground • The Forum will also streamline Hands-On Support initiatives and ensure that DHLGTA strengthens its coordination role and WSAs capacity needs are prioritised. • A Provincial Communication Strategy has also been developed, to ensure that, achievements, best practices are communicated to all stakeholders • DHLGTA collaboration with EC-DWAF, and other sectors DHLGTA is committed in ensuring that bucket system in the Eastern Cape is eradicated within the set national target.