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PROGRESS MADE AND RECOMMENDATIONS OF THE

PORTFOLIO COMMITTEE ON THE RURAL HOUSING IINFRASTRUCTURE

PROGRAMME

09 NOVEMBER 2011

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Presentation Outline•Introduction•Implementation Model•Progress - Phase 1•Progress - Phase 2•Jobs Creation•Budget and Expenditure 2010/11•Budget and Expenditure 2011/12

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• Challenges• Recovery Plan• Portfolio Committee (PC) recommendations• Progress on implementation of PC

recommendations• Conclusion

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Introduction • The National Treasury allocated a budget of R1.2

billion to the Programme over the 2010/11 Medium Term Expenditure Framework for provision of basic sanitation and some water projects in rural communities made up as follows:

2010/11: R100 m2011/12: R231m 2012/13: R479.5m 2013/14 : R517.25m

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Implementation Model

• The Department appointed two service providers to support implementation as it lacked internal capacity. The service providers appointed are:The Mvula Trust and The Independent Development Trust (IDT)

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Progress - Phase 1 Province Budget

(R’ 000)No of municipalities

Targeted Households

Toilets completed

EC R18 000 5 2567 2559FS R3 000 1 400 300KZN R27 000 7 3675 3117Limpopo R27 000 9 3600 2208MP R4 000 1 450 499NC R3 000 1 400 400NW R6 000 2 828 828National R12 000TOTAL R100 000 26 11920 9 911

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In Limpopo progress is slow due to the following reasons:Some municipalities took time to sign service level

agreementsSome contractors’ contracts had to be terminated

and new ones appointedThere are areas with hard rock and digging of pits

is slow

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Mpumalanga16 households are located in area with high water

table and this matter will be addressed in the current year programme with appropriate technology

KwaZulu-NatalThe Emnambithi programme started very late due

to stakeholder consultation required.

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Progress Phase 2Province 2011/12

R’000Benefiting councils

Targeted Households

Pits dug Toilets completed

EC R65 000 15 7522 4711 2701

FS R10 000 3 1297 0 1

KZN R68 500 17 7969 281 1244

Limpopo R48 000 12 6084 0 4

M’langa R8 000 2 1038 5 0

NC R4 000 1 507 0 0

NW R28 000 28 3561 0 221

TOTAL R231.5 57 27978 4171

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Jobs CreationProvince 2010/11 2011/12

(cumulative)EC 244 721FS 18 0KZN 523 786

Limpopo 408 570Mpu 239 233NC 34 144NW 277 394TOTAL 1733 2848

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Budget and Expenditure 2010/11Province Allocated (R’000) Expenditure (R’000)EC 18,000 18,000FS 3,000 485KZN 27,000 11,858Limpopo 27,000 8,448Mpu 4, 000 1,914NC 3,000 2,606NW 6, 0000 3,937Management Fee 12,000 10,215TOTAL 100,000 57,461

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Budget and Expenditure 2011/12Province Allocated ExpenditureEC R 65 000 000 R 12 835 376FS R 10 000 000 R 1 027 254KZN R 68 500 000 R 6 134 811Limpopo R 48 000 000 R 280 000Mpu R 8 000 000 R 2 006 259NC R 4 000 000 -NW R 28 000 000 R 1 241 768Total R 231 500 000 R 23 525 468

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Challenges

• The phase 2 programme was delayed as service providers had to complete phase 1 programme .

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Recovery Plan• The Department has demanded and received

recovery plans from the service providers• The plans have monthly targets from August 2011 to

March 2012• Weekly reports are submitted to monitor progress

made • Meetings have been held with service providers and

their main contractors to identify problem areas and recommend action plans

Recovery Plans for RHIPMONTH IDT MVULA IDT & MVULA

August 200 630 830

September 670 1960 2630

October 2324 3268 5592

November 3477 2090 5567

December 3293 1639 4932

January 2012 3220 633 3853

February 2012 3686 243 3929

March 2012 Contingency

TOTAL 16870 10463 27333

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Delivery up to 31 October 2011• As at 31 October, both Mvula and IDT had

delivered 5504 completed units• 3840 units were under construction• The Mvula Trust is on target• The IDT was slightly behind as contractors for

2011/12 were only appointed after completion of 2010/11 work

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Portfolio Committee Recommendations• That the NDHS develop a framework to

manage the programme• That Co-operatives should be considered in

implementation of the programme• That the NDHS should report on jobs created • That IDT be put on terms to complete phase 1

Programme and the Department seek legal opinion on terminating the contract due to non-performance

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• The NDHS must in future ensure that the programme is introduced in terms of appropriate IGR protocol to provinces and municipalities

• That “happy letters” should be signed by benefiting municipalities and beneficiaries

• That the NDHS should develop a risk and recovery plan to mitigate future challenges

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Implementation of the PC Recommendations• An Implementation framework has been

developed • Co-operatives are being considered in

implementation of the programme & the first site is the Ndwedwe project

• A report on jobs created will be part of future reports to the Committee

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• There is a marked improvement in the IDT performance therefore a legal opinion to terminate has been put on hold whilst the performance is being monitored

• The necessary “Happy letters” are being signed by beneficiary municipalities and beneficiaries.

• A risk register has been developed for the programme and is subject to the monitoring of the Departmental Risk Committee

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Conclusion

The Programme is being monitored very closely to ensure that it is completed on time,

within the budget and that it meet the quality requirements.