DEPARTMENTAL PERFORMANCE REPORT OCTOBER TO DECEMBER 2013

PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

DIRECTOR- GENERAL: T ZULU 12 FEBRUARY 2014

1

PRESENTATION OUTLINE

1. Overview: Departmental Third Quarter Non-Financial Performance (October to December 2013)

2. Departmental Expenditure vs. Performance (Targets / Outcomes)

3. Delivery Agreement (Outcome 8)

4. Job Creation

5. Sanitation

6. Financial Report

2

1. OVERVIEW OF DEPARTMENTAL PERFORMANCE (OCTOBER - DECEMBER 2013)

• The overall achievement by the Department during the third quarter of 2013/14 financial year is 77%

• Out of (118) targets which were planned for the period under review, (91) targets were achieved

• During this period, there was an improvement of 5% in performance compared to the second quarter of the financial year

• The drive of filling all funded posts continues.

3

cont• The current vacancy rate now stands at 19% (an

improvement of 6%)• The department has recruited 28 interns in line with

the Cabinet decision of 2002. This constitutes 70% of the requirement

• There is improvement in the issue of office accommodation. The refurbishment should be finalised by end of May 2014. The building should be ready for occupation with effect from end of June 2014.

4

cont

• The process on the consolidation of the DFIs is on track. The business case in being completed and the legislation process will follow.

5

OVERALL PERFORMANCE FOR NDHS (OCTOBER - DECEMBER 2013)

6

Overall performance Targeted 358

Quarter 1 85

Quarter 2 28

Quarter 3 91

Total 258

7

OVERALL PERFORMANCE TO DATE

ProgrammesFirst Quarter Second Quarter Third Quarter

Targets Approved

Targets Achieved

% Targets Approved

Targets Achieved

% Total Targets

Targets Achieved

%

Programme 1: Office of the Director-General)

10 6 60 9 7 78 8 5 63

Programme 1: Corporate Services

17 17 100 17 17 100 17 17 100

Programme 2: Human Settlement Delivery Frameworks

20 5 25 20 9 45 20 9 45

Programme 3: Human Settlement Strategy and Planning

22 14 64 23 10 43 19 12 63

Programme 4: Programme and Project Management Unit

13 8 62 14 7 50 18 14 78

Programme 5: Office of the Chief Financial Officer

23 23 100 24 24 100 23 23 100

Programme 6: Office of the Chief Operations Officer

13 12 92 11 8 73 13 11 85

Departmental 118 85 72 118 82 69 118 91 77

The aggregate performance of the Department to date is 72% ( 258 out of 354 annual target)

8

MAIN CHALLENGES

• Non availability of suitable land for Human Settlements in the Provinces

• Insufficient active monitoring presence in Provinces and Metros to monitor and verify performance of HSDG and USDG expenditure and delivery.

9

IMPROVEMENT MEASURES TO ADDRESS THESE CHALLENGES:

• Meaningful support from provinces and line functionaries to fulfill its functions.

• Managerial intervention to Provinces with Political support.

• Development of appropriate operational guidelines to coincide with the new MTSF 2014-19.

10

PERFORMANCE IMPROVEMENT MEASURES CONT

• Managerial intervention to Provinces with Political support because only five Provinces are implementing PHP

• Approved guidelines to standardize and guide the implementation of PHP across the sector.

• A workshop with relevant line function units on how to improve our IGR and Stakeholder Management

• Presentation of Technical Capacity Development Strategy at Technical MINMEC for consideration, approval and commitment

11

2. DEPARTMENTAL EXPENDITURE VS. PERFORMANCE (TARGETS / OUTCOMES)

Branch Final

Allocation Expenditure Variance%

Spent PlannedTargets

AchievedTargets

Variance/ Targets

Not achieved

% Achieved Targets

1: Administration 105 904 464 54 595 851 51 308 612 52% 25 22 3 88

2: Human Settlements Delivery Frameworks 11 193 757 9 353 294 1 840 463 84% 20 9 11 45

3: Human Settlements Strategy And Planning 17 223 726 7 273 194 9 950 531 42% 19 12 7 63

4: Programme Management Unit 59 899 452 18 257 084 41 642 367 30% 18 14 4 78

5: Office Of The Chief Financial Officer 19 158 443 15 213 934 3 944 509 79% 23 23 0 100

6: Office Of The Chief Operations Officer 15 404 907 15 129 961 274 946 98% 13 11 2 85

Total 228 784 748 119 823 319 108 961 429 52% 118 91 27 77

12

3. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS

• To Create Sustainable Human Settlements and Improved Quality of life through the:

– Upgrading of 400 000 households in informal settlements with access to secure tenure rights and basic services;

– Implementation of a National Support Programme (NUSP)– Delivery of 80 000 well-located and affordable rental accommodation;– Declaration of Restructuring Zones– Accreditation of 27 municipalities to undertake human settlements

functions;– Efficient utilisation of sate land for human settlements development;– Improved Property Market (Mortgage Default Insurance Scheme, Finance

Linked Individual Subsidy, Loans granted by Finance Development Institutions

13

UPGRADING OF INFORMAL SETTLEMENTS• Number of households provided with upgraded services as on

30 September 2013: 267 563 households.

• Represents 66.9% of 2014 target

• Over same period Provinces delivered 209 319 formal housing units to households in informal settlements – estimated that 125 591 constructed on newly serviced sites;

• Therefore total number of households provided with upgraded services: 393 154 households

• Representing 98.3% of 2014 target

14

OUTCOME 8 : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

PROVINCE 2014TARGET

TOTAL DELIVERY (30 SEPTEMBER

2013)

% OF TARGET2014

TOTAL DELIVERY (30 SEPTEMBER 2013)INCLUDING TOP

STRUCTURES ON NEW SITES

% OF TARGET2014

EC 59 440 40 048 67.4 54 800 87.2

FS 26 400 27 475 104.1 39 948 139.9

GT 96 760 64 427 66.6 102 894 105.7

KZN 78 200 40 637 52.0 60 605 75.8

LP 31 200 20 709 66.4 23 225 74.4

MP 26 480 17 389 65.7 24 984 94.4

NC 9 320 11 819 126.8 16 036 172.1

NW 28 840 13 900 48.2 26 144 90.7

WC 45 360 34 159 75.3 47 519 104.8

TOTAL 400 000 267 563 66.9 393 154 98.3

15

NATIONAL UPGRADING SUPPORT PROGRAMME

• Technical assistance for upgrading of informal settlements in place in 43 Municipalities to date:

– EC: Buffalo City (26 settlements): SLA being concluded with service provider; TOR submitted to Bid Specification Committee for Amahlathi, Elundini, Mhlonto and Mquma Municipalities; NMM: Negotiations in advanced stage;

– FS: Categorisation and mapping under way in six NUSP Municipalities;

16

cont

– GT: Categorisation underway in 21 settlements in City of Johannesburg, 66 settlements in Mogale City and 18 settlements in Ekurhuleni, SLA ‘s being concluded with service provider for City of Tshwane (30 settlements and Emfuleni (24 settlements);

– KZN: Service providers on site to conduct classification in Ladysmith: Newcastle (10 settlements) and Mzundusi (72 settlements);

17

NATIONAL UPGRADING SUPPORT PROGRAMME- TOR approved by Bid Specification Committee for 20

settlements in Ethekwini; TOR for Umhlatuzi (7 settlements) was advertised on 18 October 2013 and further engagements are planned for KwaDukuza ;

- LP: Developing of specific upgrading plans underway and additional 10 Municipalities identified for the same exercise;

18

cont

- MP: Service provider finalising classification in Govan Mbeki (43 settlements); TOR for Emalahleni (29 settlements) submitted to Bid Specification Committee; Agreement with TOR awaited from Thembisile (9 settlements), Steve Tshwete and Lekoa;

- NC: Service provider busy with categorisation and detailed upgrading plans in Gamagara (2 settlements),

19

cont

• Phokwane (7 settlements), Sol Plaatje (28 settlements) and Tsantsabane (5 settlements); List of settlements to be confirmed in Kara Hais and Ga-Segonyana, :

20

• NUSP:

– NW: Rustenburg: SLA’s to be concluded with service provider for categorisation and detailed settlement plans in Rustenburg (10 settlements), Madibeng (30 settlements); TOR advertised for another 8 settlements, : TOR submitted to Bid Specification Committee for Tlokwe, Kgetlengrivier and Maquassi Hills – will form one contract;

– WC: Drakenstein: Service provider appointed to produce development frameworks for 25 informal settlements in the COCT; 32 settlements in Drakenstein; SLA’s in the process of concluding in George (12 settlements) and Mossel Bay to produce development frameworkd and update master plan; TOR submitted to Bid Specification Committee in Stellenbosch (Nkanini and Langrug) while confirmation is awaited for the confirmation of the list of settlements in the Theewaterskloof

NATIONAL UPGRADING SUPPORT PROGRAMME

21

INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION

• Number of Rental Units delivered through HSDG up to 30 September 2013: 34 184 units;

• Programmes utilised: Social Housing Programme, Community Residential Unit Programme (CRU) and the Institutional Housing Subsidy Programme;

• Represents 42.8% of 2014 target

• Including USDG: Increased to 39 252 units

• Represents 49.6% of 2014 target

• Over same period private rental units delivered: 10 368 units

• Total number delivered: 49 620 units representing 62.0% of 2014 target

• SHRA:

– Completed Projects: 2143 units– Running Projects: 11 005 units– Approved pipeline and in various planning stages: 21 445 units

22

INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION

PROVINCE TOTAL DELIVERY % OF 2014TARGET

EC 3 065 25.8

FS 3 519 66.6

GT 10 678 55.5

KZN 8 817 57.8

LP 197 3.2

MP 739 14.0

NC 101 5.4

NW 2 868 49.7

WC 9 268 102.2

Total 39 252 49.6

23

WELL-LOCATED AFFORDABLE RENTAL ACCOMMODATION

• Revision of CRU, Social and Institutional Policies currently receiving attention as well as Low-income Rental Policy (Backyard) is being developed in consultation with SALGA;

• Restructuring Zones: 79 approved and 51 still under discussion- a number of smaller towns have been identified as restructuring zones for expansion of the social housing programme;

• Agreements signed with all Provinces and provincial Steering Committees in place to ensure increased geographical spread of Social Housing Institutions including Limpopo which was under represented

• Establishment of rental tribunals in Provinces and advisory offices within municipalities will be investigated to enhance institutional and regulatory capacity.

• In order to respond to the funding challenges a social housing programme budget review will be undertaken

24

ACCREDITATION OF MUNICIPALITIESPerformance to date:

• Level 1: 8 District Municipality/Municipalities;• Level 2: 8 Metros, 12 District Municipalities/Local Municipalities• Implementation Protocols concluded: 24 Municipalities• Assignment (Level 3 accreditation) of Metros: National Department and the

Municipal Accreditation Capacity and Compliance Assessment Panel met with provincial MECs and Executive Mayors on a one-on-one basis to provide feedback on the FFC findings and the way forward.

• A technical meeting between NDHS and National Treasury took place in August 2013 to agree on a funding estimate;

• In terms of an administrative decision the assignment process has been put on hold under further notice

25

cont• A total target of 27 municipalities has been achieved.• To date 23 implementation protocols have been signed.• Monitor the Implementation Protocol between the provinces and municipalities

ASSIGNMENT

• Consultative meetings with MEC’s and Mayors to expedite the conclusion of the signing of executive assignment agreements were held.

• Delays have been experienced in conclusion of the executive assignment agreements

• Expedite the conclusion and signing of the assignment executive agreements

26

PERFORMANCE IMPROVEMENT PLAN / REMEDIAL MEASURES

• All 9 Provinces to monitor 9 projects during the fourth quarter to address quarter 1, 2 and quarter 3 target

• Municipalities to fast-track implementation of RHIG as soon re-gazetting to WSA’s is finalized

27

OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT

• Actual delivery:

– 278 497,9 ha of state land identified for assessment and70 934,8 ha thereof assessed for suitability for release;

– 8 923.7 ha well located land has been released (FS, GP,KZN,LP+NW) for the extension of existing settlements, land tenure upgrading, integrated development or GAP market (includes 1 336,4 ha that was acquired);

– PHSD’s (private land acquired): 10 218,9 ha

– National Land Assembly Strategy for Human Settlements and accompanying land pipeline is being developed to:

• Facilitate forward planning; • Justify proper funding; • ensure focus on national priorities and avoid missed opportunities;

– 14 implementation protocols concluded with various organs of State;

28

cont

• Actual delivery: continues……

– 3 Medium term Operational Plans signed with Limpopo, Free State and Northern Cape setting out the support the Agency will provided over a three year period;

– 4 implementation protocols are currently pending (Gauteng PHSD, KwaDukuza Local Municipality, Buffalo City Metro and Free State PHSD including Mangaung Metro)

• Challenges experienced:

– Capital funding for acquisition;– Land release turn-around time;– Company interest on land;– Land claims on some prioritised properties;– Lack of planning and preparation for acquisition and release of land

29

OUTPUT 4: IMPROVED PROPERTY MARKET • Target is to provide 600 000 housing finance opportunities to households

in the GAP market;

• Contributors: Development Finance Institutions (NHFC, NURCHA, RHLF), Banks, Credit-linked subsidies, Financed Individual Housing Subsidy Programme (FLISP) and Employer Assisted Housing Programmes;

• Other interventions initiated to assist with reaching this objective:

– Mortgage Default Insurance Scheme: Concurrence from the National Treasury for MDI is still outstanding;

– Revised FLISP Policy implemented on 1 April 2012; – MOUs between NHFC and four banks signed to actively support the

implementation of the programme.

30

cont

– Programme rolled out in EC, NC, GT, NW and FS while KZN, WC and LP started collaboration with NHFC in second quarter of current financial year – 36 FLISP projects approved representing 7 070 units;

– Total number of units delivered: 466 households assisted – Bank bond finance of R46 million committed against FLISP approvals;

– Various marketing and communication initiatives (covered 215 municipalities) were launched to promote awareness of FLISP programme – includes 164 employer associations

31

cont

– An amendment to the revised policy has been proposed to address implementation problems:

• Scrap maximum value cut-off margin;

• Increase minimum subsidy quantum payable by R20 000;

• Increase differential income increment band category;

• Introduce open market payment subsidy route;

• Amend claw back mechanism; and introduce mechanism to exclude FLISP form pre-emptive right

32

cont

• Long term fixed interest rate instrument

– One of the market offerings that would go far to give certainty to households, being shielded to the interest rate volatility;

– In the current lowest interest rate environment and without the immediate steep inflationary expectations, such an instrument will not benefit the households and thus for now will not be cost effective as an offering;

– Instrument will be reconsidered when the market environment has become more inflationary

33

cont

• Loan funding from Banks:

– Number of housing finance opportunities contributed by Banks: 2010/11 (28 952), 2011/12 (21 008), 2012/13 (44 812) Total: 94 772 opportunities – remarkable increase in 2012/13 financial year can be attributed to increase of household income ceiling to R15 000;

– Housing Finance Sector consultative meeting planned for mid-November 2013 with a view to introduce more robust policy instruments

34

PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

INSTITUTION TOTAL DELIVERY % OF 2014 TARGET

NHFC (Mortgage Loans) 1 938 100.5

NHFC (Incremental Loans) 12 968 31.9

NHFC (Wholesale funding) 26 841 68.2

NHFC (Leverage) 35 616 277.4

RHLF 150 543 82.8

NURCHA 8 4 85 74.0

35

OUTPUT 4: IMPROVED PROPERTY MARKETINSTITUTION NUMBER OF LOANS

DFI’s 236 391

Banks 94 772

Employer assisted housing 644

Total 331 807(Representing 55,3% of 600 000 target)

36

• During the quarter, 7,276 serviced sited and 25,335 top structures were delivered.

• This delivery translate to 11,912 job opportunities if the definition of a person employed for a period of one year is considered

• If a temporary employment is considered for only that three months the delivery for that quarter is estimated to have created 25,145 jobs during the construction phase.

4. JOB CREATION

37

SANITATION

38

PRESENTATION OUTLINE

1. SANITATION DELIVERY PROGRESS

2. JOB CREATION

39

5. SANITATION DELIVERY PROGRESS

• 1 Quarterly progress report on the implementation of the RHIP in 26 municipalities on the number of units delivered and expenditureTarget not achieved due to National Treasury gazetted RHIG funding to municipalities those are not WSA’s. National Treasury and DHS were re-gazetting RHIG to WSA’s during the period under review

• 8 municipalities trained in Health & Hygiene programmes Target achieved, 8 municipalities trained in health and hygiene i.e. Vhembe,

Mogalakwena, Sekhukhune, Modimolle, Great Kei, Sol Plaatjie, Mier and Khara Hais

40

SANITATION PROGRESS Cont…

• 36 MIG projects monitored across 9 Provinces (i.e. 4 per Province)Target partially achieved, 22 MIG projects monitored i.e. Gauteng (Merafong, City of Tshwane, Emfuleni); Free State (Metsimaholo, Amelia, Dealesville, Hoopstad; Limpopo (Moepel Farm, Wydhoek, Sterkfontein, Sodoma village; North West (Khibitswane, Mapatsile, Letsopa Ext 6, Agisanang, Newer Ext 5, Morokweng, Uitkyk & Koffiekraal); Western Cape (Nomzamo, Vangurd & Lwandle)

41

SANITATION JOB CREATION• During the period under review sanitation jobs created were as follows:

• In Gauteng 76 jobs were created in Winterveldt

• In Free State 4,440 jobs were created

• Out of 9 regions only 2 regions reported 4,516 jobs created through sanitation programmes

• The National office visited several regions as part of support to job creation and youth development

REGIONAL SUPPORT

• 20 Job Creation Support Plans developed for municipalities in line with municipal IDPs

42

SANITATION JOB CREATION CONT…

• Developed Pit Emptying Strategy document to assist WSAs in Job Creation and SMME development

• Revised Reporting Template Developed to assist regions

TRAINING

• Training material developed for Health and Hygiene and Sanitation Builder Skills course

• Funding Proposals were submitted to SETAs, DBSA

CHALLENGES

• Non reporting by municipalities and regions

• Cooperation by key role players in municipalities

43

6. Financial Report - MTEF Allocation

Rand thousand

Medium term estimates

2013/14 2014/15 2015/16Indicative

2016/17Indicative

Administration 422,399 425 905 445 612 472 038

Human Settlements Policy, Strategy and Planning 84,055 89 396 94 299 100 332

Programme Delivery Support 226,922 298 475 307 715 325 404

Housing Development Finance 27,377,087 29 707 616 31 994 736 33 554 818

Total 28,110,463 30 521 392 32 842 362 34 452 592

Grants and transfers to entities constitute 97% of the total allocation.

44

Allocation MTEF: Transfer payments

Transfer Payments 2013/14 2014/15 2015/16Indicative

2016/17Indicative

Conditional Grants

Human Settlements Development Grant 16 983 872 17 084 369 18 532 576 20 409 567

Urban Settlements Development Grant 9 076 906 10 284 684 10 654 773 11 231 861

Municipal Human Settlements Capacity Grant - 300 000 300 000 300 000

Rural Households Infrastructure Development: Direct Grant 106 721 47 624 51 000 124 599

Human Settlements Development Grant: Indirect Grant 899 177 975 399

Rural Households Infrastructure Development: Indirect Grant 100 539 65 500 67 328

Sub Total 26 268 038 28 681 354 30 581 076 32 066 027

Entities

Social Housing Regulatory Authority: Operational 32 151 33 480 34 560 36 392

Social Housing Regulatory Authority: Capital Restructuring Grant 904 103 827 543 1 195 860 1 287 049

Housing Development Agency 97 497 101 047 104 615 110 160

Community Schemes Ombuds Services 20 000 40 000 53 000 28 000

Sub Total 1 053 751 1 002 070 1 388 035 1 461 601

Total 27 301 789 29 683 424 31 969 111 33 527 628 45

Summary of Adjustment Budget

Programme Original budget Rollovers Approved

Unallocated during 2013

ENE

Declared Unspent

Funds

Adjusted Allocation

1. Administration 422 399 000 422 399 000

2. Human Settlements Policy, Strategy and Planning 84 055 000 84 055 000

3. Programme Delivery Support 226 922 000 -20 000 000 206 922 000

4. Housing Development Finance 27 377 087 000 120 539 000 44 454 000

27 542 080 000

Total 28 110 463 000 120 539 000 44 454 000 -20 000 000 28 255 456 000

46

Adjustment Estimate

• Rollover approved– R100.5 million Rural Household Infrastructure

Grant– R17 million Community Schemes Ombud Service:

Capitalisation– R3 million Community Schemes Ombud Service:

startup funding

47

Adjustment Estimate

• Unallocated during 2013 ENE– R44 million Human Settlements Development

Grant: Disaster relief

• Declared Unspent Funds– R20 million National Upgrading Support

Programme

48

Expenditure per Programme 3rd Quarter

3rd Quarter

Programme Drawings Expenditure Variance % Spent

1. Administration 123 236 000 66 109 672 57 126 328 54%

2. Human Settlements Policy, Strategy and Planning 23 979 000 15 633 022 8 345 978 65%

3. Programme Delivery Support 65 210 000 22 360 940 42 849 060 34%

4. Housing Development Finance 9 247 064 000 9 239 719 431 7 344 569 100%

Total 9 459 489 000 9 343 823 065 115 665 935 99%

49

Expenditure per Programme as at 31 December 2013

Programmes Final Allocation1

Commitments2

Expenditure3 Variance = 1 - 3

% Spent

1. Administration 423,699,000 45,523,931 214,469,016 209,229,984 51%

2. Human Settlements Policy, Strategy and Planning 89,255,000 2,396,508 45,302,418 43,952,582 51%

3. Programme Delivery Support 199,202,000 19,285,907 66,853,645 132,348,355 34%

4. Housing Development Finance 27,543,300,000 2,069,596 18,069,780,550 9,473,519,450 66%

Total 28,255,456,000 69,275,942 18,396,405,630 9,859,050,370 65%

50

Expenditure per Branch : 3rd Quarter

3rd Quarter

Branch Drawings Expenditure Variance % Spent

1: Administration 105 904 464 54 598 116 51 306 347 52%

2: Human Settlements Delivery Frameworks 11 193 757 9 353 294 1 840 463 84%

3: Human Settlements Strategy and Planning 17 530 465 7 273 194 10 257 271 41%

4: Programme Management Unit 59 899 452 18 257 084 41 642 367 30%

5: Office of the Chief Financial Officer 9 247 216 267 9 239 211 415 8 004 852 100%

6: Office of the Chief Operations Officer 17 744 596 15 129 961 2 614 635 85%

Total 9 459 489 001 9 343 823 065 115 665 936 99%

51

Expenditure per Branch as at 31 December 2013

Branch Final Allocation Commitments Expenditure Variance%

Spent

1: Administration 362,522,000 44,266,751 177,470,206 185,051,794 49%

2: Human Settlements Delivery Frameworks 38,317,395 397,567 24,800,669 13,516,726 65%

3: Human Settlements Strategy And Planning 60,008,605 2,221,109 23,747,675 36,260,930 40%

4: Programme Management Unit 205,042,056 19,476,682 58,226,683 146,815,373 28%

5: Office Of The Chief Financial Officer 27,528,824,344 2,069,596 18,077,321,376 9,451,502,968 66%

6: Office Of The Chief Operations Officer 60,741,600 2,222,999 34,839,021 25,902,579 57%

Total 28,255,456,000 70,654,703 18,396,405,630 9,859,050,370 65%

52

Transfer payments 3rd Quarter Transfer Payments Drawings Expenditure Variance % Spent

Human Settlements Development Grant 4 455 415 000 4 455 415 000 - 100% Urban Settlements Development Grant 4 505 132 300 4 505 132 300 - 100% Rural Households Infrastructure Development - - - 0%

Social Housing Regulatory Authority: Operational 32 151 000 32 151 000 - 100%

Social Housing Regulatory Authority: Capital Restructuring Grant 182 000 000 182 000 000 - 100%

Housing Development Agency 48 749 000 48 749 000 - 100%National Urban Reconstruction and Housing Agency - - - 0%

Nelson Mandela University - - - 0% Bursaries Scheme - - - 0% UNHABITAT - - - 0% Community Schemes Ombuds Services - - - 0% Total 9 223 447 300 9 223 447 300 - 100%

53

Transfer payments as at 31 December 2013

Transfer Payments Total Allocation Transferred Variance % Spent

Human Settlements Development Grant 16,983,872,000 12,089,001,000 4,894,871,000 71%

Urban Settlements Development Grant 9,076,906,000 5,531,670,800 3,545,235,200 61% Rural Households Infrastructure Development 106 721 000

- 106 721 000 0%

Social Housing Regulatory Authority: Operational 32 151 000

- 32 151 000 0%

Social Housing Regulatory Authority:Capital Restructuring Grant 904 103 000 214,151,000 689,952,000 24%

Housing Development Agency 97,497,000 97,497,000 - 100% National Urban Reconstruction and Housing Agency 100 000 000 100 000 000 - 100%

Nelson Mandela University 3,749,000 3,949,000 -200,000 105%

Bursaries Scheme 4 220 000 3,294,355 925,645 78%

Community Service Ombudsman Scheme 17,000,000 - 17,000,000 0%

UN HABITAT 1 050 000 - 1 050 000 0%

Total 27,427,808,000 18,039,563,155 9,388,244,845 66%

54

Reasons for underspending• Special Investigation Unit (SIU) not providing the Department with

invoices.• The leasing of additional office accommodation was not utilised as issues

were not resolved with the Department of Public Works.• Delay in the implementation of the National Upgrading Support

Programme.• The inability of SITA to provide resources at an adequate level to maintain

the Housing Subsidy System as stipulated in the Service Level Agreement.

55

Interventions to address underspending

• Meetings were arranged with SIU on outstanding invoices for work performed but submission of invoices is still delayed due to outstanding supporting documents.

• A requirement for the submission of invoices from services providers is that municipal boards have to approve the plans and delays are being experienced in getting the approvals thus invoices can not be submitted.

• New SLA has been finalised and is in the approval process.

56

Human Settlements Development Grant Spending Performance 3rd Quarter

Provinces

1 October 2013 to 31 December 2013

Transferred Funds Spent by Provinces

Variance Spent vs Transferred

Spent as % of Transferred

FundsR'000 R'000 R'000Eastern Cape 800 256 715 652 84 604 89 Free State 288 009 489 748 (201 739) 170 Gauteng 1 069 311 847 248 222 063 79 KwaZulu-Natal 822 340 941 791 (119 451) 115 Limpopo 178 099 45 272 132 827 25 Mpumalanga 339 807 311 346 28 461 92 Northern Cape 97 852 94 756 3 096 97 North West 307 928 462 069 (154 141) 150 Western Cape 531 925 588 464 (56 539) 111 Total 4 435 527 4 496 346 (60 819) 101

57

Human Settlements Development Grant Performance as at 31 December 2013

ProvincesTotal

Available

Year to date (1 April 2013 - 31 December 2013)

Transferred Funds

Spent by Provinces

Variance Spent vs

Transferred

Variance Spent vs

Total Available

Transferred as % of

voted funds

Spent as % of Total Available

Spent as % of

Transferred Funds

Unspent as % of

Transferred Funds

Unspent as % of Total

AvailableR'000 R'000 R'000 R'000 R'000

Eastern Cape 2,523,803 1,796,268 1,645,621 150,647 878,182 71% 65% 92% 8% 35%

Free State 1,120,936 868,989 729,529 139,460 391,407 78% 65% 84% 16% 35%

Gauteng 4,108,399 3,141,810 2,177,182 964,628 1,931,217 76% 53% 69% 31% 47%KwaZulu-Natal 3,235,428 2,337,818 2,267,520 70,298 967,908 72% 70% 97% 3% 30%

Limpopo 1,324,742 178,099 203,344 -25,245 1,121,398 13% 15% 114% -14% 85%

Mpumalanga 1,124,332 894,992 557,284 337,708 567,048 80% 50% 62% 38% 50%Northern Cape 395,724 262,193 240,210 21,983 155,514 66% 61% 92% 8% 39%

North West 1,224,537 963,096 1,053,823 -90,727 170,714 79% 86% 109% -9% 14%Western Cape 1,925,971 1,625,848 1,528,773 97,075 397,198 84% 79% 94% 6% 21%

Total 16,983,872 12,069,113 10,403,286 1,665,827 6,580,586 71% 61% 86% 14% 39%

58

HSDG Delivery Performance as at 31 December 2013

Province

Annual Delivery Targets Delivery Performance as at 31 December 2013

% performan

ce

Variance Delivery

sites

Variance Delivery

Top Structure

Total Variance DeliverySites

(units)

Top Structure

(units)

Total Delivery Targets

SitesTop

Structure (units)

Total Delivery

Performance

Eastern Cape 17,265 20,412 37,677 6,804 7,955 14,759 39% 10,461 12,457 22,918

Free State 8,794 10,157 18,951 3,326 4,201 7,527 40% 5,468 5,956 11,424

Gauteng 15,460 28,023 43,483 2,230 15,902 18,132 42% 13,230 12,121 25,351

KwaZulu-Natal 10,018 26,682 36,700 1,157 20,120 21,277 58% 8,861 6,562 15,423

Limpopo 4,901 17,552 22,453 85 1,612 1,697 8% 4,816 15,940 20,756

Mpumalanga 1,000 14,287 15,287 2,967 5,957 8,924 58% 1,967 8,330 10,297

Northern Cape 7,987 3,673 11,660 714 1,362 2,076 18% 7,273 2,311 9,584

North West 5,053 15,230 20,283 149 7,562 7,711 38% 4,904 7,668 12,572

Western Cape 6,642 11,802 18,444 3,992 5,691 9,683 52% 2,650 6,111 8,761

Total 77,120 147,818 224,938 21,424 70,362 91,786 41% 55,696 77,456 133,152

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Challenges• Poor or slow performance by contractors• Slow delivery due to labour unrest and inclement

weather• Non-availability of suitable land for human

settlements developments

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Interventions• Provinces are requested to submit the recovery plans• Provincial visits to be conducted during the fourth quarter • The third quarter performance reviews to be conducted with

the Provinces and Metro’s

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Urban Settlements Development Grant Spending Performance 2nd Quarter

Municipalities

1 October 2013 to 31 December 2013

Transferred Funds Spent by Municipalities

Variance Spent vs Transferred

Spent as % of Transferred

FundsR'000 R'000 R'000Buffalo City 337 318 185 368 151 950 55Nelson Mandela 363 993 161 235 202 758 44Mangaung 387 867 131 376 256 491 34Ekurhuleni 792 456 518 895 273 561 65City of Joburg 669 995 193 819 476 176 29City of Tshwane 645 306 396 776 248 530 61eThekwini 711 450 524 104 187 346 74City of Cape Town 596 749 148 765 447 984 25Total 4 505 134 2 260 338 2 244 796 50

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Urban Settlements Development Grant Expenditure as at 31 December 2013

Year To Date (01 July - 31 December 2013) expenditure

Municipality

Total Allocation

Transferred Funds

Spent by Municipality

Variance Spent vs

Transferred

Variance Spent vs Total

Available

Transferred as % of

Available funds

Spent as % of

Transferred funds

Spent as % of Total

Available

Unspent as % of

Transferred funds

Unspent as % of Total

AvailableR'000 R'000 R'000 R'000 R'000

Buffalo City 613 305 337 318 254 888 82 430 358 417 55.0% 75.6% 41.6% 24.4% 58.4%

Nelson Mandela Bay 727 986 473 191 242 390 230 801 485 596 65.0% 51.2% 33.3% 48.8% 66.7%

Mangaung 596 719 387 867 226 899 160 968 369 820 65.0% 58.5% 38.0% 41.5% 62.0%

Ekurhuleni 1 584 912 1 030 193 715 806 314 387 869 106 65.0% 69.5% 45.2% 30.5% 54.8%

City of JHB 1 488 877 818 883 346 922 471 961 1 141 955 55.0% 42.4% 23.3% 57.6% 76.7%

City of Tshwane 1 290 611 838 898 612 794 226 104 677 817 65.0% 73.0% 47.5% 27.0% 52.5%

eThekwini 1 580 999 869 550 755 399 114 151 825 600 55.0% 86.9% 47.8% 13.1% 52.2%

City of Cape Town 1 193 497 775 774 304 445 471 329 889 052 65.0% 39.2% 25.5% 60.8% 74.5%

Total 9 076 906 5 531 674 3 459 543 2 072 131 5 617 363 60.9% 62.5% 38.1% 37.5% 61.9%

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Spending Performance per department as at 31 December 2013

Projects Category Budget Expenditure as at 31 December 2013

% Spent

Social Facilities 357 264 127 90 396 341 25%Economic Planning and Development 154 406 361 55 204 521 36%Land development programme 255 375 331 84 752 872 33%Human Settlements 1 093 994 520 468 398 302 43%Roads and Stormwater and Transport 1 205 942 077 692 339 616 57%Traffic Lights and Electricity 747 209 860 238 419 157 32%Landfill Sites 13 550 000 3 145 306 23%Sanitation , Water and Waste Water 3 050 544 505 1 270 424 907 42%Engineering Services 90 000 000 67 752 000 75%Environmental Resource Management 41 040 943 10 859 919 26%Public Safety 35 810 000 554 657 2%Project Management 226 327 370 52 879 236 23%Health and Social Development 75 008 626 32 939 415 44%Disaster and Emergency Management Services 25 554 350 4 236 050 17%Real Estate 86 600 000 10 552 161 12%Other 129 401 790 29 767 169 23%TOTAL 7 588 029 860 3 112 621 628 41%

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2nd Quarter Performance USDG

Number of hectares of land required for human settlements development 225.00 80 65

Number of hectares of land proclaimed (township establishment completed) 2,400.00 - -

Number of hectares of land procured for green and brown field development 1,049 20 44

Number of dwelling units developed per hectare 1,081 500 406

Number of sites serviced 10,796 7,800 4,254

Number of informal settlements upgraded (services provided): In Situ and relocated 2,407 905 645

Number of Title Deeds transferred to eligible beneficiaries 4,092 1,475 4,912

KMs of roads paved, gravelled, surfaced roads resealed and roads resurfaced/rehabilitated 15,067.30 275 554

KMs of stormwater drainage installed 91.00 23 46

KMs of pedestrian walkways constructed 98.60 56 35

Number of bus terminals or taxi ranks, bus/taxi stops constructed 8.00 2 -

Number of formal domestic customers receiving water services 78,184.00 615,194 2,107,999

Number of water service points installed for informal settlement dwellers within a 200m radius 1,055 1,510 1,437

OUTPUTS

Annual Target for 2013/14 as per the

SDBIPPlanned Target as at

31 Dec 2013Output delivered as

at 31 Dec 2013

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2nd Quarter Performance USDG

Number of additional households (RDP) provided with water connections 11,597 2,950 5,175 Number of consumer units provided with access to a free basic level of potable water, by means of an indvidual HH supply or in informal areas by means of a standpipe within 200m 172,317 166,755 2,304,417

Backlog of consumer units provided with a basic level of potable water above RDP standards and access to freee basic level of potable water 796,912 479,346 478,487

Number of sanitation service points (toilets) installed for informal settlement dwellers 4,528 4,830 7,606 Number of formal domestic customers receiving sewerage services and additional households (RDP) provided with sewer connections 1,118,169 1,021,162 2,478,325

Backlog in the provision of basic sanitation services (above RDP standards) 443,747 476,379 460,196

Number of households with weekly kerb-side waste removal services in formal areas 850,046 1,882,900 3,355,139

Number of informal settlements and additional households (RDP) with access to refuse removal 348,546 570,391 549,262

Number of waste minimisation projects initiated 5.00 5 7

Backlog of kerb-side refuse removal services to consumer units (once a week) 3.00 2 706

Number of high mast lights installed in informal settlements 388.00 184 288 Number of formal households with access to basic and free electricity and additional households (RDP) provided with electricity connection 390,456 98,380 2,191,809

Backlog of electricity connections to consumer units 398,448 294,948 368,981

Socio-Economic Amenities (Number of cemetries 4 and sports fields and stadia 0.74) 113.00 10 5

Number of jobs created using the Expanded Public Works Programme guidelines and other municipal programmes 57,128 36,050 27,649

OUTPUTS

Annual Target for 2013/14 as per the

SDBIPPlanned Target as at

31 Dec 2013Output delivered as

at 31 Dec 2013

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Challenges • Delays in projects due to roll-overs approved in December

2013 and January 2014• Land invasions and land disputes• Community disrupting projects progress due to labour issues• Delays in Eskom to supply points• Certain Metros not responding in line with Performance

Matrix

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Interventions

• Engage with NT to fast track roll over approvals: approved in October 2013

• Encourage metros to involve ward councilors• Bilateral engagements with Eskom and DOE • Bilateral meetings with Metros with reporting problems• Implement DoRA provisions (e.g. Withholding, issue non-

compliance letters)

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THANK YOU

“We have come a long way – Celebrating 20 Years of Freedom!”

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