Speaker, the ANC welcomes the new urban settlements development grant as announced by the Minister of Finance in the Budget tabled in Parliament.
The Minister of Human Settlements identified the critical need to ensure an appropriate funding model for the development of human settlements. The provision of bulk and link infrastructure is critical for the development of sustainable human settlements. In fact, without infrastructure, we cannot build houses.
The grant seeks to encourage towns and cities to be proactive developers of urban infrastructure by mobilising domestic capital; to realise the positive impact of urbanisation by addressing towns' and cities' performance constraints; and to improve co-ordination and planning.
This new initiative comes with its own challenges. It requires that Parliament plays a more effective oversight role. There are some risks that must be managed carefully, and these include co-operation and buy-in from provinces and municipalities, capacity, expertise to manage the grant and managing expectations.
This grant, totalling just under R6,5 billion, is allocated to nine municipalities: Nelson Mandela Bay, Buffalo City, Mangaung, Johannesburg, Ekurhuleni, Tshwane, eThekwini, Lephalale and Cape Town. It will be closely monitored by Parliament to ensure value for money. I thank you.