Update on National Housing Pilot Projects by the Department and Provinces

Meeting report

HOUSING PORTFOLIO COMMITTEE
7 September 2005
NATIONAL HOUSING PILOT PROJECTS: DEPARTMENT AND PROVINCIAL BRIEFINGS

Chairperson: Ms Z Kota (ANC)

Documents handed out:
Eastern Cape briefing
Gauteng briefing
Western Cape briefing
Limpopo briefing
Free State briefing
North West briefing
KwaZulu–Natal briefing
Northern Cape briefing
Mpumalanga briefing

SUMMARY
The Committee was briefed on national housing pilot projects in the various provinces. The Committee was concerned about the fact that the reports by most of the provinces indicated that very little progress had been made. In some provinces progress was hampered by lack of capacity (Eastern Cape, Northern Cape), while land acquisition and illegal occupancy were problems in others.

Members expressed dissatisfaction that the Western Cape had adopted the N2 Gateway Project but had no project of its own. There was a need for greater co-operation between different Departments. The Committee as well as the National Department of Housing would have to monitor the pilot projects more closely.

MINUTES

Department briefing
The Deputy Director General of the National Department of Housing, Mr M Dlabantu, pointed out that informal settlements were characterised by illegality and informality. As far as location and environmental factors were concerned there were no minimum standards. Public and private investments in such settlements were restricted. Poverty, crime, social stress and vulnerability to disasters were other reasons why an urgent solution was necessary.

The most important principles behind the Breaking New Ground programme were aimed at fast tracking delivery, improving quality of products, strengthening consultation with civil society and maximising the multiplier effects of the programme.

Free State briefing
The province’s pilot project was carried out in an area called Grasslands and was a venture between the province and the Mangaung municipality. The Department of Land Affairs was assisting to deal with the issue of land.

After the invasion of land in the small holding area of Bloemfontein the local municipality had been inundated with requests for services from the informal settlement and for assistance from the land owners who were unable to deal with the situation.

The project was three-phased. It catered for a middle and low-income market. In phases one and two, 1241 and 2831 residential units respectively had been constructed. Both phases included the construction of a number of socio-economic sites depending upon the needs of the communities. As far as services were concerned, phase one enjoyed a full level of services while the services to phase two were temporary.

Phase three would be an extension of phase two and approximately 3200 houses would be constructed. 85% of the land earmarked for this phase had been acquired already. The planning and surveying of the land would be finalised in the 2005/06 financial year. This phase was currently being formalised but was being hampered by illegal squatting as well as by landowners who were refusing to sell their land. The province was also challenged by lack of resources.

Limpopo briefing
The province had two pilot projects in the Polokwane and Mookgopong Municipalities. The Polokwane project was in its planning phase while the Mookgophong project should be completed by 31 December 2005.

The layout plans for both projects had been approved. In Polokwane, 606 of the 1000 units were serviced while in Mookgopong only bulk services were being provided. The municipalities were providing land, engineering services, social and economic facilities as well as emergency services.

Both projects would, upon their completion, have all the necessary socio-economic amenities in place. The total cost per unit would be R39 929.

Northern Cape briefing
Lerato Park (4 500 households) in the Sol Plaatje municipality and Ou Boks (1 500 households) in the Umsobomvu municipality had been identified as the areas for the pilot projects. Preliminary project applications had been submitted. Funds for the surveying and first phase servicing of both projects were allocated for 2005/6. No town planning or construction had been done. None but rudimentary services were being provided. No socio-economic amenities were in place.

The projects were being hampered by staff shortages and a limited budget. With other projects already underway, it was difficult to redirect actions onto the new programme. While much attention went into the housing part of the project, planning and socio-economic surveys were being neglected. The policy was aimed at projects of at least 5000 units. Since the province did not have informal settlements of this size, it would have to adapt the policy.

Mpumalanga briefing
The province had approved three pilot projects: Msagweni/Nkanini in the Emalahleni municipality (Witbank), Thandukukhanya extensions 4 and 5 in the Mkhondo municipality (Piet Retief), as well as Ngodwana/ Pumlani and Msogwaba in the Mbombela municipality (Nelspruit). Planning would be done during 2005/06 whilst construction would commence in 2006/07.

The Emsagweni/Nkanini project was the main project. Due to its proximity to the N4 it posed a threat to the safety of the inhabitants. 3000 units would be built over three financial years. The municipality would contribute a minimum of 10% to the cost of the project. A layout plan had been drawn up. In August the draft concept design was presented to the planning division of the council. Once the tendering process, which would start in October, had been completed, bulk infrastructure and concept designs would be implemented. The process should be complete by 31 March 2006. To date R1 230 000 had been spent on the project.

The Mkhondo municipality was selected because of its strategic location: it borders Mpumalanga and KwaZulu-Natal. 500 units would be built annually over three financial years. The Department and the municipality would conduct environmental impact and geotechnical studies. The implementation of bulk infrastructure should be complete by 31 March 2006.

The Mbombela municipality housed the Provincial Legislature and was an economic hub. Ngodwana, situated near the Sappi plant had no services but for a communal tap supplied by Sappi. By the end of October, a social survey on the settlement would be complete. No environmental impact study had been done yet and no funds had been used. The project was lagging behind due to unresolved issues around land.

The provinces faced challenges around funding (for infrastructure development), co-operative governance, sharing of information as well as capacity.

Eastern Cape briefing
The province had three pilot projects: Elliotdale in the Mbashe Municipality, Duncan Village in the Buffalo City Municipality and ‘Soweto-on-Sea’ in the Nelson Mandela Metropolitan Municipality.

The primary needs to be addressed in Mbashe were related to infrastructure and service delivery. The Amathole District Municipality had sourced the funding for planning and surveying. To date there had been no implementation.

It was assumed that 20 000 housing units would be needed in Duncan Village. Relocation would be an unavoidable problem. The Duncan Village project would be executed in two phases: planning and implementation. Relocation would be inevitable since the area was over populated.

Soweto-on–Sea had a population of over 80 000. The population was underemployed and poorly educated with very little resources. Much initial planning had been done but the project was still at its initial stage.

Gauteng briefing
The province aimed to formalise all existing informal settlements which were situated in safe, habitable and appropriately designated land in the next five years. It would be necessary to register all houses in these settlements. The pilot projects would thus be implemented in three phases – project registration and funding reservation application, initiation and implementation. By the end of June 2005 the Department had recorded information on 394 informal settlements. The project would further the aims of spatial restructuring and integration, as well as ensuring the safety and health of inhabitants.

The Winnie Mandela project was situated within the Ekurhuleni Metropolitan Municipality and consisted of Tswelopele Ext. 5 (2203 units), Tswelopele Ext. 65 (1358 units), Tembisa Ext. 23 (2323 units) and Tembisa Ext. 24 (2575 units).

Due to the presence of dolomite only 8459 residential sites could be developed. All four townships had been provided with basic services. An agreement had been struck with the municipality for the construction of houses. Funding had been allocated for 1000 houses to be built in 2005/6.

North West briefing
The province had identified 121 informal settlements and had two pilot projects in Klerksdorp and Rustenburg. Portion 9 of the farm Wildebeestfontein 274 JQ and the remainder of portion 1 Rustenburg Town and Townlands 272 JQ had been selected as the site of the Rustenburg pilot project. This project would assist in addressing the housing backlog. 5000 residential units, covering low cost, bonded and rental houses would be delivered.

In Klerksdorp, there were more than 25000 informal settlers and the number was increasing. The project included Stilfontein Ext. 13 and 14 (1181 units), Kanana Ext. 14 (2319 units) and Jouberton Ext. 24 (1500 units).

KwaZulu-Natal briefing
The clearance of slums and informal settlements was one of the province’s major programmes. 134 sites had been identified. The Mount Moriah Pilot Project was situated 15 km from the Durban CBD. A total of 2170 people would benefit from the project. 70% of the civil work was complete. 90 beneficiaries had taken occupancy. Social and economic amenities such as medical care facilities, informal trading facilities and a community hall would be provided.

The province had been mandated to clear all slums within six years, yet financial allocation did not correspond to this challenge. In addition municipalities did not have the capacity to monitor the re-emergence of slums. Acquiring suitable land, especially along the coast, was another challenge. The report recommended that budgets should be allocated according to provincial priorities and that a capacity building programme be implemented. Municipalities should also be provided with assistance to monitor the re-emergence of slums.

Western Cape briefing
The province reported on the N2 Gateway Project. The Committee pointed out that this was a national project and that the province needed to have its own project.

Planning for this ‘high profile’ project commenced in 2004. It was aimed at addressing the needs of communities in informal settlements along the N2. It would focus on mixed densities, walk-ups, upgrades and rental, and would promote sustainable human settlements. Social and economic amenities would be provided before or along with housing. The province worked closely with the National and Provincial Departments of Housing, as well as with the City of Cape Town.

By June 2006 approximately 24 000 units should be complete. The report indicated that allocations policy would be guarded but not rigid. Joe Slovo phase 1 (145 units) would be ready for handover by the end of September 2005. The temporary housing in Delft (1348 units) had already been occupied. Other projects were at varying levels of completion.

Discussion
Mr T Dodovu (ANC) noted that there were many informal settlements in Klerksdorp. Why had Greenfields been selected as the site for the pilot project?

Mr Hans Kekana (Chief Director of Housing - North West) responded that it was necessary to select sites where the land was suitable. Many of the other settlements were in areas where the land was dolomitic.

Mr G Schneemann (ANC) asked why there had been no mention of other departments involved in the North West pilot project. He also enquired about the standard of the housing units. When would the project be complete? What time frames were the Department adhering to?

Mr Kekana said that standards were informed by the kind of development. He admitted that standards had to be raised. The Department considered anything less than 36 square metres to be unacceptable. The Rustenburg project would take longer to complete and would be complete in about two and a half years. If the projects had not started later than planned due to problems, they would have been finished within the financial year. All departments were involved in the Rustenburg project. The settlement had been planned in such way that all departments would be integrated. Mr Kekana admitted that inter-departmental participation was not satisfactory.

The Chairperson asked whether the problems experienced at Kanana in the North West had been solved. How far was the project at the moment? How far were the Rustenburg and Klerksdorp pilot projects from the towns? Had the Department taken care not to contribute to peri-urbanisation?

Mr Kekana responded that the Kanana Hostel Project was taking longer than planned. Currently they were closely observing developments in the N2 Gateway Project in the Western Cape to see how similar problems were being dealt with. The project should be complete within the 2006/07 financial year. As far as the distance from the towns to the projects was concerned he said that it would take no more than ‘a taxi to town’ for the community to get to either town.

Mr M Likotsi (PAC) reminded the Department of the national goal to create 1 million jobs in five years.

Mr Kekana noted that all projects were Expanded Public Works Programme (EPWP) compliant. Job creation was considered in all its projects.

The Chairperson pointed out that the North West needed to be monitored closely. All projects should make provision for socio-economic amenities.

Most Members expressed dissatisfaction with the degree of development that had taken place in the Eastern Cape. Mr Schneemann noted that much of the report focussed on planning with no mention of actual development. He said that when the Minister of Housing introduced the Breaking New Ground programme she had mentioned that it would no longer be ‘business as usual’ in the Department. He said that the Committee required time frames. Were other Departments involved in the projects?

Mr D Mabena (ANC) was curious about the level of community participation in the project. He said that the report was not clear and that a more comprehensive one would be necessary.

Mr Dodovu added that the project needed more action. Most of the information in the report had already been received in the public hearings held in April 2005. It appeared as though much time had been spent on planning but very little on construction. He echoed Mr Schneemann and said that the Committee needed time frames. It needed to know what challenges the Department was facing regarding implementation.

Mr A Steyn (DA) noted that the budget figures were incorrect. He said that the progress on existing projects indicated that in the Eastern Cape it was ‘business as usual’.

Ms B Dambuza (ANC) wondered whether the Department prioritised housing. She said that the National Department would have to monitor the Eastern Cape very closely. Why was there a delay in Phase 1 due to funding problems?

The Chairperson added that she was very unhappy with the presentation. It appeared as though the Human Settlement Programme was at the bottom of the agenda. Who was monitoring the pilot projects at national level?

Mr Ngwadu Mzamo (General Manager: Department of Housing and Local Government – Eastern Cape) said that the metro had adopted Soweto-On-Sea as its pilot project in June 2005. An urgent meeting was held to develop a business model.

In Duncan Village congestion was such a big problem that it had been necessary to relocate inhabitants. He pointed out that there had been some developments in this project but that the report had summarised it too much due to time constraints.

The Eastern Cape was challenged further by political instability. It had experienced MEC changes and had had to operate without a Head of Department most of the time. In addition, 57% of the positions in the Department were vacant. In August, there had been a meeting with the Minister in which she had been made aware of these problems.

Mr Dlabantu said that the issues raised by the Committee regarding the Eastern Cape had been noted and would be dealt with.

Mr R Bhoola (MF) asked whether there had been any in situ developments in KZN? He asked why only four of the 31 projects identified in Ugu had been completed.

Ms Qhobosheane (General Manager: KZN Department of Housing) said that some in Etegweni were in situ developments. Here existing structures were being upgraded. In the Ugu district, much of the delay was due to the unavailability of land.

Mr Mabena asked how big the units were. Ms Qhobosheane that while the quality of the units were up to scratch, size remained a challenge. Members were visibly shocked by the fact that units were 30 square meters in size. The Chairperson said that the size of the units was an issue that needed to be dealt with.

Mr Likotsi asked what was meant by ‘slabs’ as mentioned in the report. Ms Qhobosheane said that projects were developed in phases. The casting of slabs was one such phase in the construction of a unit.

Mr Likotse said that he was concerned that in the Limpopo province the pilot project had not yet taken off. Ms Maesela (General Manager: Management and support services) said that the deadline for contracts for the Polokwane project was 31 December. She said that the province was committing itself to the projects that had only been started in May.

Mr B Dhlamini (IFP) asked why the Winnie Mandela Settlement experienced problems such as double allocations and even demolitions. Mr Van Blerck (Chief Director: Essential Services, Gauteng) responded that the Department was in the process of solving issues regarding double allocations. He was unaware of any demolitions that had occurred.

Mr Schneemann was surprised that Cosmos City had not been mentioned in the Gauteng report since occupants would be moving in in December. Mr Van Blerck said that Cosmos City was considered to be a Premier’s Project and the Alexandria project was a presidential one. Mr Odendal (Operations, Gauteng) said that Cosmos City did not meet the requirements of an informal Settlement Upgrading Project.

The Chairperson pointed out that it was clear that Mpumalanga was not on a par with the rest of the country.

Mr Dodovu said that its project too was at a preparatory phase with no implementation having been done. He stressed that in terms of fast tracking delivery building 500 units per annum were too few.

The representative from Mpumelanga indicated that all the groundwork for the project had been done. One could not rush into building without knowing the type of structure that was needed. Inhabitants from some informal settlements could be relocated to already existing structures. After doing its survey the province found that some inhabitants would qualify for a housing subsidy. For those who were employed rental would also be a possibility. Houses would be built where they were necessary.

Mr Schneemann said the impression should not be created that the Committee was just giving instructions to build. There was no doubt that proper consultation was of critical importance. He stressed that the Committee wanted to see progress.

Mr M Sonto (ANC) noted that in the Western Cape certain factors would dictate varied typology as far as households were concerned. Which communities did the 70/30 ratio in the N2 Gateway project refer to?

Mr Manny Sotomi (Chief Director: Planning and Development) said that in the initial planning 30% of the beneficiaries would have been ‘backyarders’ from Langa while 70% would have come from the Joe Slovo informal settlement. The ‘backyarders’ had however lobbied strongly enough to have the percentages turned around. Now 70% would come from Langa while 30% would be from Joe Slovo.

The Commitee was visibly unhappy about this development. The Chairperson said that this was a problem.

Mr Dodovu pointed to a number of issues that would have to be addressed. He noted that there appeared to be no integration between all the relevant Departments. Integration was at the heart of the strategy. He said that the manner in which monitoring and evaluation was being done needed to be improved. How did one ensure that national priorities were being met? How did the projects go about achieving racial integration?

In conclusion, the Chairperson noted that all reports indicated that low cost housing was being built, despite the fact that sustainability required low cost and middle-income housing. Mr Schneemann added that the pilot projects would require a lot more attention from the Committee. A number of presentations raised alarm bells and a response was needed from the Department. He emphasised that clear time frames were vital.

The meeting was adjourned.