EASTERN CAPE HOUSING DELIVERY

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EASTERN CAPE HOUSING DELIVERY

• REVIEW FOR THE FIRST 9 MONTHS OF THE 2006/07
  FINANCIAL YEAR

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PRESENTATION OVERVIEW

• FINANCIAL NON-FINANCIAL DELIVERY OUTPUTS
• IDENTIFIED PERFORMANCE CONSTRANTS
• Strategic,
• with the related
• Operational impacts
• REMEDIAL INTERVENTIONS THE PARADIGM SHIFT
• UPDATE ON INTERVENTIONS UNDERTAKEN
• CONCLUSION

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EXPENDITURE vs CASH FLOW FORECASTIN DISTRICT
ORDER
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NON-FINANCIALS
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OUTPUTS FOR THE 1ST 9 MONTHS

• Number of emergent contr. 686
• Jobs created 3
  539
• Houses completed 11 791
• Subsidies approved 6 799
• Title Deeds transferred 4 913
• Municipalities accredited (in process) 2
• Disaster housing assistance 100

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NEGATIVE FACTORS INFLUENCING HOUSING DELIVERY.

• STRATEGIC CONSIDERATIONS
• The challenges facing E/Cape housing delivery
  must be seen against the following strategic
  approaches, initially undertaken
  fordevelopmental reasons
• Use of PHP delivery vehicle (60 of E.C.
  projects are PHP) (slow delivery due to
  layered coordination communication processes)
• Majority of Developers are Municipalities
• Use of Emerging Contractors
• 40 sq.m. size unit on 30sq.m National Norm
• Allocation (Unfunded extra 10m²)
• The negative impact of these factors has been
  building up over the years to what is now
  possibly the highest point

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HOUSING RECOVERY INTERVENTIONS

• Departmental take-over of some of the
• unblocked projects which are slow-moving
• through engagement of Established
• Contractors inclusive of Thubelisha
• Addresses twin-problem of Municipal and
  Emerging Contractor capacity shortfalls
• The involvement Established Contractors allows
  for a number of advantages
• Speedier Procurement Processes
• Bulk material purchases
• Sourcing of additional resources to reinforce
  existing construction teams

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HOUSING RECOVERY INTERVENTIONS (ROLE OF
ESTABLISHED CONTRACTORS)

• The Established Contractors are performing
• the normal contractor role, inclusive of
• Execution of Construction Works to Scope,
  Budget, Spec, Schedule (Penalty clauses to be
  enforced)
• Materials and labour procurement
• Site Management Handover of Works
• Key Ingredient
• Embracing emerging contractors in order to mentor
  them to graduate to higher skills expertise
  levels within requirements of allocating projects
  to them in accordance with requisite capacity

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PROGRESS TODATE

• A fast-tracked procurement process affecting a
  total of 18 projects ( combined value R433m) will
  ensure on-site activity early in March
• Projects in new financial year are being packaged
  for execution through Established Contractors.
• A quantum leap in provincial delivery is envisaged

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CONCLUSION

• 1. The Department is confident that the
  dominant elements of the delivery
  under-performance problem have now been exposed,
  and are being dealt with in a meaningful way.
• 2. Even though the paradigm shift and strategic
• intervention currently embarked on will
  only begin to take effect at the tail-end of
  current financial year, a solid basis has been
  laid for higher-level delivery performance in
  the remainder of the MTEF cycle

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Thank You

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