presentation to parliament portfolio committee nurcha: background & business plan and budget...
TRANSCRIPT
PRESENTATION TO PARLIAMENT PORTFOLIO COMMITTEE
NURCHA: BACKGROUND & BUSINESS PLAN AND BUDGET 2009/10
Presented by Cedric de Beer
NURCHA IS
• A DEVELOPMENT FINANCE INSTITUTION
• A PUBLIC ENTITY
• A SECTION 21 COMPANY (TAX EXEMPT)
• A JOINT VENTURE:
– GOVERNMENT OF SOUTH AFRICA
– SOROS ECONOMIC DEVELOPMENT FUND
JV AGREEMENT RENEWED IN AUGUST 2005
OUR MISSION
NURCHA INITIATES PROGRAMMES AND TAKES
CONSIDERED RISKS TO ENSURE A SUSTAINABLE FLOW
OF FINANCE FOR THE CONSTRUCTION OF LOW-INCOME
AND AFFORDABLE HOUSING, COMMUNITY FACILITIES AND
INFRASTRUCTURE. WE WORK IN PARTNERSHIP WITH ALL
ROLE-PLAYERS IN THESE MARKETS TO MAXIMISE THE
DEVELOPMENT OF SUSTAINABLE HUMAN SETTLEMENTS
OUR VISION
TO BE REGARDED AS A PARTNER OF CHOICE FOR
THOSE SEEKING INNOVATIVE BRIDGING FINANCE
SOLUTIONS
CURRENT MANDATE
NURCHA ENSURES AVAILABILITY OF BRIDGING FINANCE
TO SMALL, MEDIUM AND ESTABLISHED CONTRACTORS
BUILDING LOW AND MODERATE INCOME HOUSING AND
RELATED COMMUNITY FACILITIES AND INFRASTRUCTURE
PROGRAMMES
NURCHA LENDS TO
1. SMALLER CONTRACTORS
2. MEDIUM & LARGER CONTRACTORS & DEVELOPERS
BUILDING
1. SUBSIDY HOUSING
2. AFFORDABLE HOUSING
3. COMMUNITY FACILITIES AND INFRASTRUCTURE
NURCHA’S DEVELOPMENT OUTPUTS SINCE 1996
Number of loans made 1 128
Value of loans R1.6 billion
Value of projects R9.9 billion
Total houses in projects 316 000
Houses built 225 850
DEVELOPMENT OUTPUTS FOR NURCHA’S FINANCING PROGRAMME FOR THE YEAR APRIL 2008 TO MARCH 2009
Subsidy Housing
Affordable Housing
Emerging Contractors:
Infrastructure & Community Facilities,
TOTALS
Loan contracts signed 60 12 64 136
Value of loans R169.6m R93.3m R149.9m R412.8m
Value of projects R1,268.7m R487.4m R928.9m R2.7 billion
LOAN VALUES BY PROVINCE
Gauteng42%
KwaZulu Natal11%
Free State14%
Limpopo7%
Western Cape10%
Eastern Cape7%
Northern Cape0%
North West5%
Mpumalanga4%
ENVIRONMENTAL REVIEW
1. CREDIT CRUNCH & RECESSION
• CONSERVATIVE BANKS• FEW BANK LOANS• FEW BUSINESS LOANS• LESS CONSTRUCTION ACTIVITY• IMPORTANT TIME FOR DFI’S
2. SUBSIDY HOUSING• EXPECTED GROWTH IN OUTPUTS• MORE LARGER CONTRACTORS
ENVIRONMENTAL REVIEW
3. AFFORDABLE HOUSING
• PREDICT DEFINITE DECLINE IN SALES• OPPORTUNITY FOR GROWTH IN RENTAL• INCREASING DEMAND FOR NURCHA FINANCING
4. COMMUNITY FACILITIES & INFRASTRUCTURE• GROWTH IN BUSINESS• MORE ESTABLISHED CONTRACTORS
NURCHA’S ORGANISATIONAL DEVELOPMENT PLAN
1. OPEN FIVE REGIONAL OFFICES
2. PROJECTS IN AT LEAST EIGHT PROVINCES
3. MAJOR FOCUS ON CUSTOMER RELATIONS
4. ENHANCED PROJECT CONTROL AND REPORTING
CAPACITY
BUDGETARY IMPLICATIONS
1. INCREASED SPENDING ON SYSTEMS DEVELOPMENT
• ICT COSTS• CONSULTANTS
2. INCREASED BRANDING COSTS
3. NO OTHER OVERHEADS FOR NEW REGIONAL OFFICES
BUDGET BALANCE SHEET
BUDGET INCOME STATEMENT
MAJOR ITEMS OF EXPENDITURE