EASTERN CAPE DEPARTMENT OF HOUSING

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EASTERN CAPEDEPARTMENT OF HOUSING

• PRESENTATION TO SELECT COMMITTEE ON FINANCE
• 13/02/08
• HOUSING EXPENDITURE FOR THE FIRST 9 MONTHS
• 2007/08 FINANCIAL YEAR
• MEC HLTA Mrs. T Xasa

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Key challenges

• Practical realities on the ground

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• Poor planning
• Approval of projects that are not ready
• Land issues

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• Lean pool of established contractors attracted to
  low cost housing resulting in retendering
• Inability of bidders to produce NHBRC
  certificates
• Slow NHBRC project and home enrollment
• Material Supplies

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• Slow take off of the established contractor
  construction
• Re tendering for the emergency housing
• NHBRC slow start on the rectification programme
• EIA

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HOUSING EXPENDITURE - PER SUBSIDY INSTRUMENT1st
9 MONTHS OF 2007/08
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CASH FLOW FORECASTS vs. EXPENDITURE IRO
PROJECTS PER DISTRICT - THE 1ST 9 MONTHS OF
2007/8
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ACTUAL OUTCOME HOUSING CONDITIONAL GRANT 2007/08

• HOUSING ALLOCATION 2007/08 R1,052 ,554
• LESS
• FUNDS SURRENDERED R 543,078
• REVISED ALLOCATION 2007/08 R 509,476
• LESS
• EXP. AS AT END DECEMBER 2007 R 155,219
• BALANCE OF FUNDS 31Dec. 2007 R 354,257

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HOUSING EXPENDITURE - PER SUBSIDY INSTRUMENTNOV
DEC - 2007/08(AFTER REVISION)
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AREAS TO BENEFIT FROM R500M

• Alternative sanitation and energy
• Military Veterans Programme
• Inclusionary housing
• Delivery on social housing
• Intensify rural housing

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HOUSING CONDITIONAL GRANT - 2007/08CASH FLOW
FORECAST 4TH QUARTER

• JANUARY 2008 R 71,399
• FEBRUARY 2008 R 146,816
• MARCH 2008 R 136,042
• TOTAL R 354,257

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2007/8 Non Financial Performance

• Land acquisition for inclusive housing
• The department is currently busy with Audit of
  well located suitable land for Housing
  Development.
• Negotiations are already in process for land in
  identified areas e.g. Maletswai Buffalo City
  Municipalities
• 192 units in Amalinda (SOHCO) have had their
  consents signed and are in the process of taking
  transfer

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• Rural Housing Summit and launch of innovation hub
  
• 37 new projects and 16 385 housing subsidies
  approves
• 2 Locrete Technology show houses from Kuwait
  completed and packaged for shipping

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• 6342 sites serviced
• 4569 houses completed and 3000 at various stages
  of completion
• 3519 transfers registered

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Progress on the Turn Around Plan

• Operation Thunderstorm
• Various Housing Projects Nine projects allocated
  to established contractors
• Construction commenced in all nine projects
• Expenditure kicked in December

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Progress on the Turn Around Plan

• Proactive Planning for 2008/9
• Department Driven projects
• Tenders for 14 projects translating into 5191
  units now under adjudication
• Appointments to be made by end Feb and
  contracting and site establishment planned for
  March

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Progress on the Turn Around Plan

• Proactive Planning 2008/9
• Municipal Driven projects
• Tender process completed for 15 projects
  amounting to 8461 housing units with a value of
  R329, 082, 134
• Awarding of tender during February

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Progress on the Turn Around Plan

• Capacity Enhancement
• The appointment of a Rapid Delivery Team (multi
  disciplinary) to augment the capacity of the
  department in various disciplines and assist with
  fast tracking delivery has been done and the team
  is in operation.
• 3 GM and 2 Senior Managers appointed
• 39 positions advertised 16 are technical

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Thank You