Indaka Municipality Housing Development Plan

INDAKA MUNICIPALITY HOUSING DEVELOPMENT PLAN

PREPARED BY: Prepared by Excellence At Work Consultants: Contact Person: Sifiso Ndlovu Tel: (033) 345 5694 Fax: (033) 345 3730 E-mail: [email protected]

Address: P O Box 101318 Scottsville Pietermaritzburg 3209

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EXECUTIVE SUMMARY

1.1 Appointment of Consultants by Indaka Municipality

 Excellence At Work Consultants cc was appointed as Housing Plan Consultants for the Indaka Local Municipality in April 2006.

 In May 2006 a working copy (Version 0) was submitted to Indaka Municipality, which highlighted findings and predicted analysis of the housing plan. Following this report, Excellence At Work was instructed to proceed with the preparation of a Detailed Housing Plan for the Indaka Municipality.

 Extensive house to house survey was required to assess the type of dwellings, levels of services, and income levels within the municipality.

 Consultants were appointed by Indaka Municipality to undertake house to house survey, under the guidance of the municipality.

1.2 Purpose of this report

 The purpose of this report is to present the findings and the number of households without basic shelter, and the plan to provide access.

 To provide the basis for skills transfer to the communities of Indaka Municipality.

 To ensure that policy guidelines of Department of Housing, District Municipality, Department of Labour, Department of Education, Department of Agriculture and Environmental Affairs, etc. are adhered to.

1.3 Housing Sector Plans

 The Municipal Systems Act of 2000 formally introduced Integrated Development Plans (IDP’s), as the primary form of planning to be adopted by all metropolitan, district and local municipalities throughout the country.

 The Provincial Department of Housing (DoH) KZN supports the role of the Housing Sector Plan (HSP), which is aligned with and complement the development plans and strategies of other affected municipalities and other spheres of government.

 The DoH has provided both financial and capacity building support to local municipalities in order to assist them in drafting these housing sector plans, and Indaka Municipality is one of them.

 The Housing Sector Plan Steering Committee (HSPSC) has conducted workshops within the coastal, inland and Northern Regions to provide municipal capacity building. These workshops were used as a stepping stone in order to assist the initial round of 20 targeted municipalities, which had received funding from the DoH for the development of the housing plans.

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1.4 Purpose of housing sector plans

 Is to ensure the effective allocation of limited resources (specifically financial and human) to large pool of potential development interventions.

 Is to provide a formal and practical method of prioritiizing housing projects and obtaining political consensus for the sequencing of their implementation.

 To ensure more integrated development through bringing together the relevant cross-sectoral role players to coordinate their development interventions in one plan.

 To provide greater spatial linkages between the spatial development framework and the physical implementation of projects on the ground.

 To ensure that there is a definite housing focus for the IDP.

 To provide a critical link between integrated developments planning and the practical reality of delivering housing projects on the ground.

 To ensure effective subsidy budgeting and cash flows both at the local municipal and provincial levels.

1.5 Step-by-step process of preparing HSP

 This housing plan was developed parallel with the IDP and also aligned after the draft IDP has been completed. The process included but not restricted to the following phases:

o Phase 1 Analysis: this phase consists of identifying housing demand both through analysing data and through meeting with Ward Councillors & Ward Committees and relevant stakeholders, i.e. Water Services Authority, MIG Programme Manager, etc

o Phase 2 Strategies: this phase is about considering the relevance and applicability of housing sector policy guidelines within the municipal context. Target for housing delivery were specified and the methodology for their achievement clarified.

o Phase 3 Projects: housing projects were identified through the house-to-house survey.

o Phase 4 Integration: The compilation of sector programmes and plans was finalised, and ensured most efficient use of all available resources.

o Phase 5 Approval: The workshop with all councillors and senior management was conducted to ensure confirmation and amendment of all projects, and to align to

 IDP objectives and strategies;  Consolidation of the requirements of individual projects from resources available;  Achievement of coherence and integration between the projects of different sectors;

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INDAKA MUNICIPALITY HOUSING PLAN Version No.2 I N D E X PAGE NO. 1. Introduction and Background ...... 6 1.1 Terms of Reference ...... 6 1.2 Purpose of this report ...... 6 1.3 Demographic Information ...... 6 1.4 Service levels for core services ...... 7 1.5 Financial and Staffing information ...... 7 1.6 Financial & Demand Projections ...... 8 1.7 Local Context ...... 10 1.7.1 Spatial Linkages ...... 10 1.7.2 The preparation of the Land Use Management Plan ...... 12 1.7.3 Economic issues ...... 12 1.7.3 Agricultural Production in Tribal Areas ...... 13 1.7.4 Tourism ...... 13 1.7.5 Social Context ...... 14 2. Current Housing Demand ...... 15 2.1 Projected Housing Demand ...... 15 2.2 Projected Capital Required ...... 16 2.3 Graphical Presentation of Housing Demand...... 16 2.4 Land identification...... 17 2.5 Challenges ...... 17 3. Current Housing Situation ...... 18 3.1 Current Housing Projects ...... 18 3.2 Project in planning phase – Phase 1...... 18 3.3 Projects scheduled for Phase 2 - Planning...... 19 4. Integration with other sectors ...... 19 4.1 Water and Sanitation...... 19 4.2 Roads ...... 19 4.3 Electricity ...... 19 4.4 MIG ...... 19 4.5 Landfill Site ...... 19 4.6 Disaster Management ...... 19 4.7 Schools ...... 19 4.8 Clinics ...... 20 5. Housing Institutional Framework ...... 20 6. Spatial Development Plan...... 21 6.1 Primary Service Centre ...... 21 6.2 Secondary Service Centre ...... 21 6.3 Tertiary Service Centre ...... 21 7. Performance Management System (PMS) ...... 21 8. Conformity to policy guidelines ...... 21 8.1 Gender Issues ...... 21 8.2 Labour based construction ...... 22 8.3 Involvement of PDI’s ...... 22 8.4 Employment policy ...... 22 8.5 Manpower utilization targets ...... 23 8.6 Wages and labour standards...... 24 8.7 Consultants and other Supports Services ...... 24 8.8 Tender procedures ...... 24 8.9 Financial procedures ...... 24 8.10 The environment ...... 24 8.11 Design standards ...... 24 9. Reporting monitoring and evaluation ...... 25 9.1 Reporting procedures...... 25 9.2 Key Performance Indicators ...... 25 9.3 Monthly Reporting ...... 25 9.4 Monitoring & Evaluating & Projects reviews ...... 25 9.5 Project Audits...... 25 9.6 Project Close Out Report ...... 25 10. REFERENCES ...... 26

Page 4 of 26 TABLES

"1" Nine Year Capital Programme ...... 4 "2" Projected Number of houses ...... 5 "3" Population information ...... 8 "4" The population shifts ...... 9 "5" Service levels for the core function...... 9 "6" Indication budget information ...... 9 "7" Indication the overall staffing levels ...... 10 "8" Indication the overall staffing levels ...... 10 "9" Nine Year Capital Programme ...... 10 "10” Projected Number of houses ...... 10 "11” Projected housing demand ...... 17 "12” Projected capital required ...... 18 "13" Schedule of projects in planning...... 18

FIGURES

"1" Graphical presentation of Capital Programme ...... 4 "2" Graphical presentation of Capital Programme ...... 11 "3" Location of Indaka Municipality ...... 12 "4" Wards Layout ...... 13 "4" Graphical presentation of Capital Programme ...... 13 "5" Existing Organogram for Housing Department ...... 17

ANNEXURES

"A" CAPITAL EXPENDITURE PROGRAMME

"B" GANTT CHART

"C" WSDP

“D” SDF

“E” PMS

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1. Introduction and Background

1.1 Terms of Reference

o Excellence At Work Consultants cc was appointed as Housing Plan Consultants for the Indaka Local Municipality in April 2006.

o In May 2006 a working copy (Version 0) was submitted to Indaka Municipality, which highlighted findings and predicted analysis of the housing plan. Following this report, Excellence At Work was instructed to proceed with the preparation of a Detailed Housing Plan for the Indaka Municipality.

o Extensive house to house survey was required to assess the type of dwellings, levels of services, and income levels within the municipality.

o Consultants were appointed by Indaka Municipality to undertake house to house survey, under the guidance of the municipality.

1.2 Purpose of this report

o The purpose of this report is to present the findings and the number of households without basic shelter, and the plan to provide access.

o To provide the basis for skills transfer to the communities of Indaka Municipality.

o To ensure that policy guidelines of Department of Housing, District Municipality, Department of Labour, Department of Education, Department of Agriculture and Environmental Affairs, etc. are adhered to.

o To formalize the municipal strategy in the following categories:

. Rural Housing . Rental Housing . Urban Housing . Capacity Building

1.3 Demographic Information

According to the census 2001 results, the population for Indaka Municipality is approximately 113 643 persons. When compared with the 1996 results, an 18.5% increase is indicated.

When examining the population of the Indaka municipality, approximately 95% of all households are found within the rural areas.

The table 3 below illustrates the population information for Indaka Municipality.

Table 3: Population Information

Population Population Urban Urban Rural Rural Households Households Municipality 1996 2001 1996 2001 1996 2001 1996 2001 District 55 4398 656 976 30 304 43 836 64 566 91 010 94 870 138829 Indaka 98 059 113 643 2 154 2 714 12 893 18 656 15 047 21 473

It would appear from the 1996 and 2001 census results that, overall KZ233 experienced a high population growth of approximately 16%. The high population growth in KZ233 is cause for concern due to the municipality’s limited capacity.

Page 6 of 26 The table 4 below illustrates a population shifts from 1996 to 2001.

Table 4: The population shifts 1996 - 2001 (n) Urban (n) Rural (n) Population Municipality population population Households 1996 - 2001 1996 - 2001 1996 - 2001 1996 - 2001 District 18.5 44.65 40.96 42.14 Indaka 15.89 26 44.7 42.03

1.4 Service levels for core services

The information on the service levels was obtained from Stats SA and draws on the census 1996 and 2001. It would appear from the data that 5.6% more households had access to RDP water in the Indaka Municipal area than was found in 1996.

It would appear that service delivery levels have improved for most areas across the Indaka Municipal area for sanitation, water, refuse removal and electricity.

Table 5 below illustrates service levels for core functions (%)

Table 5: Service levels for the core function RDP RDP RDP RDP Refuse Refuse Electricity Electricity Municipality Water Water Sanitation Sanitation Removal Removal 1996 2001 1996 2001 1996 2001 1996 2001 District 61.56 67.78 24.1 27.08 26.83 29.46 43.56 58.00 Indaka 54.77 62.19 0.34 13.51 1.45 13.20 27.39 46.80

1.5 Financial and Staffing information

Indaka Municipality demonstrated a moderate increase in the estimated operating expenditure for the 2007/2008 operating periods, and the capital expenditure has equally improved.

Table 6 below illustrates budget information compared to the District

Table 6: indication the budget information % Change Opex Opex Opex Opex Capex % Operating Budget Budget Capex Municipality Budget Budget Budget Change Budget Per Per Budget Name Actual Estimates Actual Capex 2006/07 Capita Capita Est 2007/08 2006/7 2007/8 2006/07 Budget – 2006/07 2007/08 2007/08 Uthukela District 142,937,494 162,515,330 13.70% 218 247 119,597,453 115,058,580 -3.80% - Indaka 21,811,447 23,263,307 6.66% 192 205 73,39,000 6,482,584 11.67%

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The staffing budget as a percentage of the total operating budget within Indaka is 45.07%. This is illustrated in tables 7 & 8 below:

Table 7: indication the overall staffing levels Staff Staff Opex Staff Staff budget as budget as Municipality Budget Budget Budget % of Total % of Total Name Actual Actual 2007/08 Opex Opex 2006/07 2006/07 2006/07 2007/08 Uthukela District 142,937,494 59,824,411 68,050,180 41.85% 41.87% Indaka 21,811,447 10,337,862 11,711,334 47.40% 50.34%

Table 8: indication the overall staffing levels Staffing Staffing Staff Staff per Staff per % % per Municipality Employees Employees Employees capita capita change change capita Name 2005 2006 2007 ratio ratio 2005 to 2006 to ratio 2005 2007 2006 2007 2006 Uthukela District 561 564 578 0.53% 2.48% 1171 1165 1137 Indaka 63 75 74 19.05% -1.33% 1804 1515 1536

1.6 Financial & Demand Projections

The estimated five year Capital Expenditure Programme is R741 million, from 2008/2009 to 2012/2013 financial year. This is illustrated in Table 1 below per ward. More detailed analysis is in Annexure A.

Table 9: Five Year Capital Programme “000”

CAPITAL WORKS - INDAKA MUNICIAPLALITY R 42,007 R 52,173 R 64,799 R 80,480 R 99,956 HSG Project HOUSING DESCRIPTION ESTIMATED EXPENDITURE IN R x 1000 No. No. of Rank Basis (ESCALATED BY 8% PA FROM 2008/2009) of Houses Est. "2008/09 "2009/10 "2010/11 "2011/12 "2012/13 1 HOUSING NA001 Ward 1 3,723 G 1,760 20,240 21,859 23,608 30,097 NA002 Ward 2 3,412 G 1,760 20,240 21,859 23,608 25,497 NA003 Ward 3 2,916 G 1,760 20,240 43,718 47,216 0 NA004 Ward 4 2,939 G 1,760 20,240 21,859 23,608 25,497 NA005 Ward 5 62 G 0 0 0 3,182 0 NA006 Ward 6 3,071 G 0 0 6,083 6,569 42,568 NA007 Ward 7 2,929 G 0 0 5,322 5,748 40,628 NA008 Ward 8 3,732 G 0 0 4,895 5,286 51,714 NA009 Ward 9 5,945 G 1,760 20,240 21,859 23,608 60,804 NA100 Ward 10 2,271 G 0 0 6,273 6,774 31,427 SUBTOTAL OF HOUSING 2 CAPITAL; 8,800 101,200 153,727 169,207 308,231

Page 8 of 26 The graphical presentation of predicted annual figures is illustrated in figure 2 below:

741 741 741 741 741 741 741 741 741 741

700

600

500

433

400

300

264

200

110 100

9 0 0 06/07 & 08/09 09/10 10/11 11/12 12/13 07/08 2008/2009 to 2012/2013 CAPEX PROGRAMME

CAPEX BUDGET PREDICTED CASHFLOW ACTUAL EXP.

Table 10 below illustrates the projected houses per ward for the next nine years:

Table 10: Projected No. of houses

No. of Ward Houses "2008/09 "2009/10 "2010/11 "2011/12 "2012/13 "2013/14 "2014/15 "2015/16 "2016/17 HOUSING Ward 1 3,723 40 460 460 460 131 543 543 543 543 Ward 2 3,412 40 460 460 460 131 460 460 460 481 Ward 3 2,916 40 460 920 920 576 0 0 0 0 Ward 4 2,939 40 460 460 460 131 460 460 468 0 Ward 5 62 0 0 0 62 0 0 0 0 0 Ward 6 3,071 0 0 128 128 128 768 640 640 639 Ward 7 2,929 0 0 112 112 112 733 619 619 622 Ward 8 3,732 0 0 103 103 103 933 830 830 830 Ward 9 5,945 40 460 460 460 131 1097 1098 1099 1100 Ward 10 2,271 0 0 132 132 132 567 436 436 436 Total No of Houses 31,000 200 2300 3235 3297 1575 5561 5086 5095 4651

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1.7 Local Context

1.7.1 Spatial Linkages

The Indaka Local Municipality (KZ233) is one of the five (5) Local Municipalities under Uthukela District Municipality, and was established in December 2000. Uthukela District is located in the west of the KwaZulu-Natal Province. It is predominately rural municipality. Indaka has no national roads running through it. The major road is the Helpmekaar road, which runs from Ladysmith and joins the Dundee- Pomeroy road (MR 32). Most of the community access roads are in a very bad condition; some now only exist as tracks.

The physical linkages of the municipality with the surroundings are generally restricted to Ladysmith and Dundee / Glencoe (the roads and rail networks exists). The National (N11) Route to the west of Indaka Municipality is a major link to the region of Indaka to Newcastle and Mpumalanga Province, which is located further north.

The municipality is in the boarders of the following areas, Emnambithi Municipality (Southern Side), Imbabazane Municipality, Msinga Municipality, Ndumeni Municipality. This is illustrated in figure 3 below:

Figure 3: Location of Indaka Municipalities

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The Indaka Municipality’s offices are located at Ekuvukeni Township, which has been identified as the administrative center for Indaka. Being a new municipality, the administration is still in the process of being established.

The iNdaka Local Municipality is situated approximately 125Km West of Ulundi and 30 Km East of Ladysmith and covers an area of 991 Km2 (see locality plan in Figure 4 below, which illustrates allocation of Wards).

Figure 4: Wards Within Indaka Municipalities

Indaka Municipality consists of 10 wards and it is a rural area municipality. One of the striking features of the Indaka municipality is the spatial segmentation of the Tribal Authorities. The southern segment is comprised of the Mabaso, Ingwe, Mthembu and Sithole Tribal authorities, whilst the northern segment is home to Mchunu, Sigweje, Mbhense and Nxumalo Tribal authorities.

Indaka accounts 9% of the total area of the uThukela District Council. Indaka Municipality (KZ233) has a total population of 99 447 the gender composition of the municipality indicates that 44% is male and 56% is female. This indicates that the majority of the people in the municipality are of previously disadvantaged grouping (women).

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About 97% of the municipal population consists of people from rural areas and 3% is Whites, Indians and coloureds. The above statistics indicate that the Housing priorities will be in rural subsidy than urban housing

The municipality has medium income citizens i.e. teachers, nurses, public employees that are leaving within the jurisdiction of the municipality. There is a fair demand for the medium income housing accommodation, including rental stock. The council will be considering the availability of land for the development of medium income housing development in consultation with Amakhosi.

According to the data at the Surveyor Generals Office, Indaka Municipality comprises 51 parent land parcels which are subdivided into 507 rural land parcels and 5 310 urban land parcels. The municipality has 2 townships, i.e. Ekuvukeni with 3400 subdivisions and Waaihoek with 1910 subdivisions.

Indaka municipality has few privately owned commercial farm land, and small holder free settlements, and the five tribal authorities, namely:

1.7.2 The preparation of the Land Use Management Plan

The plan is being prepared by Consultant, appointed by Indaka Municipality. The plan is ensuring that the involvement of Amakhosi and all other relevant stakeholders is optimized.

The appropriate centres are being considered for the location of rural services centres, and the identification of economic linkages between corridors to promote economic integration and development.

1.7.3 Economic issues

Indaka Municipality have two main industrial areas i.e. agriculture and tourism.

In terms of employment, Agriculture is the biggest employer in the area, at 30%, and is the strongest sector in the economy of the Indaka Municipality contributing some 20% to the Gross Geographical Product (GGP) of the Ladysmith Area. Commercial agriculture occupies 20% of the municipal land area, and this land is being farmed fairly intensively for grain, vegetables, seed, table potatoes and pastures for dairy and semi-intensive mutton and beef production.

The opening up of the South African economy after 1994 had a big impact on the farming sector with the phasing out of subsidies and the removal of protection for South African producers. In the process of adjusting to the changing circumstances the less efficient producers have either sold their farms, or leased the land to other producers or are concentrating on products for niche markets.

The opportunities available within Indaka Municipality for commercial agricultural sector include:

 Expanding local production of timber products;  Exploring the opportunity for the production of high value crops and for local processing of agricultural produce;  Developing partnerships with the small growers in the communal areas to produce these crops by contract agreement; and  Creation of cadre of small commercial farmers through the new LRAD programme.

To realize these opportunities, however, a number of constraints need to be addressed which include:

 Theft of livestock;  Impacts of the implementation of Land Reform and Labour legislation; and  Imposition of rates on farm land

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1.7.3 Agricultural Production in Tribal Areas

These areas are characterized by lack of individual ownership of land, high settlement densities in the planned areas and sparse settlement in the remoter areas. The area of arable land allocated to homesteads is small, stocking levels are uncontrollable and there is a lack of control over animals which results in damage to crops.

The traditional settlement areas have considerable agricultural potential. The main agricultural activity within these areas is the traditional ranching of cattle, but over- grazing and stock theft are limiting returns from this sector. Small holder agriculture includes maize, dry bean and vegetable production on a small scale.

Recent research data from the Indaka area indicates that the portion of unemployed adults of working age is high at 70% and therefore most households grow maize for subsistence purposes. The data has also shown that “on farm” incomes are contributing less to family income while the proportion of income from pensions is increasing.

Producing for household consumption is the norm, with limited production for sale. However, there are opportunities for developing these areas and encouraging small- scale commercial production, provided that the constraining issues are addressed. These include:- a lack of expertise, skills, knowledge, access to a range of inputs such as traction power to work the lands, and better quality seed and fertilizer. The management of livestock would need to be addressed.

1.7.4 Tourism

The District Municipality within which the Indaka Municipality is situated includes some of the most interesting and relatively undeveloped tourism opportunities in the Province. Although most of the Drakensberg resorts fall outside the Indaka Municipality, their associated attractions are integral to the District and Local Municipalities, and provide opportunities for employment and economic growth.

Although there are number of constraints to developing tourism in the Indaka Municipality, the opportunities seem far more numerous. Indaka includes in its area portion of the tourism brandering known as the Ilenge Mountain that includes curves for Amazimu, natural water source, etc.

The tourism that falls in the Indaka area include: mountain biking, flyfishing, horse riding, rafting. In addition are few self-catering and bed and breakfast establishments.

Some of the key development issues that require consideration are:

 Substantial private sector involvement and investment;  Establishment and co-operation of partnerships among key stakeholders, especially with local communities;  Appropriate and responsible infrastructure provision; and  Effective marketing strategies and efficient information centers.

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1.7.5 Social Context

The majority of people in Indaka are unemployed i.e. about 87% are unemployed. A very high proportion of women are unemployed, as a result a number of activities have been initiated in the area to help women earn some sort of income, including sewing groups, crafts, gardening, savings clubs and the use of women contractors by Uthukela District.

The statistics indicates that HIV/AIDS is one of the problems faced by the municipality, due to an estimated high number of people affected. The municipality has developed an HIV/AIDS policy.

Most of the areas within the jurisdiction of the municipality have primary and secondary schools, which are further away from other rural pupils. The municipality together with the department of education is looking at ways of easing the distance for the pupils.

There is no tertiary institution within the jurisdiction of the Indaka municipality, students traveled to Ladysmith, Pietermaritzburg, Durban, etc for tertiary requirements. The municipality is investigating options of establishing a tertiary institution within its area of jurisdiction.

There is no hospital within the jurisdiction of Indaka municipality, but there are five clinics, which only operate from 08h00 to 17h00, which has resulted for the municipality to establish a primary health care forum to discuss the challenges and problems encountered by the residents.

Most wards within the jurisdiction of the municipality have community halls.

The municipality is in the process of establishing the help desk where beneficiaries will receive assistance with any information or queries. In rural areas beneficiaries will be taught about their rights and the taking of their houses when they receive subsidy. Housing Education will be conducted to those beneficiaries that are in the waiting list and to those who have already received houses.

Page 14 of 26 2. Current Housing Demand

2.1 Projected Housing Demand

Indaka municipality has a current demand of 31 000 rural houses (this figure has been verified through the house-house survey conducted by the municipality), which is illustrated in table 11 below. The projected housing demand has been categorized into three (3) phases, as follows:

. Phase 1 – projects currently in planning and targeted for Construction April 2008 . Phase 2 – projects due to start detailed planning November 2008 . Phase 3 – projects due to start planning in July 2010

For a Gantt chart with all projects divided into phase, please refer to Annexure “A” and Annexure “B” for more details. The projects have been prioritized during the IDP compilation process.

There is also a demand of approximately 5000 medium income houses, in which the municipality will initiate the planning in 2010/2011 financial year. The process will include obtaining suitable land for development.

The Municipality is planning in the future to formalize and secure tenure for 27 000 traditional dwellers in the various areas. Table 11 below illustrates the housing demand for the entire municipality.

Table 11: Projected Housing Demand

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2.2 Projected Capital Required

Table 12 below illustrates the projected capital required per financial year to meet the prioritized housing demand as depicted in Table 1 above.

R CAPITAL WORKS - INDAKA R 81, MUNICIAPLALITY Subsidy R 44,000 R 47,520 R 51,322 R 55,427 R 59,862 R 64,650 R 69,822 75,408 441 HSG HOUSING Project DESCRIPTION No. No. of Escalated Houses (R x 1 000) "2008/09 "2009/10 "2010/11 "2011/12 "2012/13 "2013/14 "2014/15 "2015/16 "2016/17 HOUSING NA001 Ward 1 3,723 244,034 1,760 20,240 21,859 23,608 30,097 32,505 35,105 37,914 40,947 NA002 Ward 2 3,412 220,095 1,760 20,240 21,859 23,608 25,497 27,536 29,739 33,585 36,271 NA003 Ward 3 2,916 112,934 1,760 20,240 43,718 47,216 0 0 0 0 0 NA004 Ward 4 2,939 150,756 1,760 20,240 21,859 23,608 25,497 27,536 30,256 0 0 NA005 Ward 5 62 3,182 0 0 0 3,182 0 0 0 0 0 NA006 Ward 6 3,071 227,710 0 0 6,083 6,569 42,568 38,311 41,376 44,617 48,186 NA007 Ward 7 2,929 219,105 0 0 5,322 5,748 40,628 37,054 40,019 43,430 46,904 NA008 Ward 8 3,732 285,781 0 0 4,895 5,286 51,714 49,685 53,660 57,953 62,589 NA009 Ward 9 5,945 424,803 1,760 20,240 21,859 23,608 60,804 65,728 71,051 76,805 82,949 NA100 Ward 10 2,271 162,082 0 0 6,273 6,774 31,427 26,100 28,188 30,443 32,878

SUBTOTAL OF HOUSING CAPITAL; 2,050,484 8,800 101,200 153,727 169,207 308,231 304,456 329,394 324,744 350,724

2.3 Graphical Presentation of Housing Demand

Figure 4 below illustrates the projected cash flow required to meet the prioritized housing demand as depicted in Table 12 above

2050 2050 2050 2050 2050 2050 2050 2050 2050 2050 2000

1700

1500

1375

1046 1000

741

500 433

264

110

0 0 9 06/07 & 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 07/08 2008/2009 to 2016/2017 CAPEX PROGRAMME

CAPEX BUDGET PREDICTED CASHFLOW ACTUAL EXP.

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2.4 Land identification

About 98% of the land in the Indaka Municipality’s area of jurisdiction is owned by the Mgonyama Trust, whereby rural housing development is a priority. Therefore the Municipality does not own any land, and has scheduled the negotiations for land acquisition in 2010 /2011 financial year. It is assumed that the property rates Act processes would have been finalized and the municipality would be in a better position to introduce land acquisition for development purposes to Amakhosi Forums.

The municipality has resolved that there would be no land made available for greenfields until the insitu upgrade is complete.

The municipality has established the participation forum with the traditional authorities within its area of jurisdiction. The purpose of the forum is to discuss all development related issues, and the housing development is priority number one on the agenda. The traditional authorities have given the rural housing their full support. The forum also looks at land issues and how to fast track the implementation of this housing plan.

LUMS has been finalized in identifying suitable land for medium income houses and other housing needs.

2.5 Challenges

The main challenges for the housing development include but not restricted to the following:

 The planning and construction of bulk infrastructure (e.g. water, sanitation, roads, etc) in line with the housing development. In many cases the district infrastructure plan is not aligned to the housing project, which creates a bottleneck in during the project life cycle phases. The housing department will identify, assess and align the district, MIG programme in line with the housing programme.

 The relationship between Amakhosi and the municipality. The forum has been established by the municipality, and the housing department is tasked to facilitate the communication channels to ensure synergy between these two key stakeholders.

 The dissemination of information from the municipality to the wards committees. The ward committee and communication policy has been prepared by the municipality, and it tasked the housing department to facilitate the dissemination of information relating to housing issues to the ward committees.

 Since the project is not a green field project but an insitu upgrade, land claims will not have an impact on housing development but Land Affairs was not available to give proper information so as soon as it is received it will be sent as an addendum to this plan.

Page 17 of 26 3. Current Housing Situation

3.1 Current Housing Projects

Mhlumayo in Ward 1 has received Final Approval by the Department of Housing to date. The approval for projects in planning phase is expected not later than 31 August 2008.

3.2 Project in planning phase – Phase 1

The Table13 below illustrates the existing projects per ward pending approval to proceed with the construction phase from the department of housing: Also please refer to Annexure “A” for more detailed information. The table illustrates houses planned for construction, and the total capital expenditure of R569, 171,000 for the next 4 years. The communities within which the projects will be executed have access to yard water connection, minimum 200m walking distance, sanitation, community roads, access to public transport, etc. Table 13: Scheduled of planned projects CAPITAL WORKS - INDAKA Version: MUNICIPALITY 1 HSG HOUSING Total Estimated Project DESCRIPTION Cost Current No. No. of Rank Basis Prices of Houses Est. "2008/09 "2009/10 "2010/11 "2011/12 "2012/13 1 HOUSING NA001 WARD 1 1551 G 97,564,000 40 460 460 460 131 PHASE 2 NA01 KwaHlathi 1551 1 G NA01A Planning Implementation & NA01B Close Out 40 460 460 460 131

NA003 WARD 2 1551 G 92,964,000 40 460 460 460 131

PHASE 2 NA03 Uitvaal 1551 1 G NA03A Planning Implementation & NA03B Close Out 40 460 460 460 131

NA005 WARD 3 1551 G 112,934,000 40 460 460 460 131 PHASE 2 NA05 Limehill 1551 1 G NA05A Planning Implementation & NA05B Close Out 40 460 460 460 131

NA007 WARD 4 1551 G 92,964,000 40 460 460 460 131

PHASE 2 NA07 Vaalkop 1551 1 G NA07A Planning Implementation & NA07B Close Out 40 460 460 460 131

NA009 WARD 9 1551 G 128,271,000 40 460 460 460 131

PHASE 1 NA09 Mhlumayo 1551 1 G NA09A Planning Implementation & NA09B Close Out 40 460 460 460 131

NA10 WARD 10 369 1 G 44,474,000 40 76 76 77 100 PHASE 2 NA10 Sahlumbe 369 NA10A Planning 40 76 76 77 100 Implementation & NA10B Close Out 2 TOTAL OF PHASE 1 7,755 569,171,000 240 2,376 2,376 2,377 755

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3.3 Projects scheduled for Phase 2 - Planning

Please refer to Annexure “A” & “B” for phase 2 projects

4. Integration with other sectors

The municipality is currently in communication with various stakeholders in addressing the following key services which impact in the sustainability of housing development.

4.1 Water and Sanitation

Uthukela District Municipality, as the Water Services Authority (WSA) has prepared the five (5) year Water Services Development Plan (WSDP), which map out in detail how the backlog for water and sanitation is to be addressed for the Indaka municipality. The planned list of projects has been aligned to the WSDP. The municipal department of housing will be attending the set stakeholders meeting with WSA

4.2 Roads

In terms of the IDP, the municipality has developed a 5 year roads infrastructure programme, which takes into account all the developmental nodes and housing development within the municipality. The plan is funded by the Municipal Infrastructure Grant (MIG).

4.3 Electricity

There are 27 000 households with no electricity in the area. The commitment has been received from Eskom in the next five (5) years and the areas to be electrified are Mteyi, Ekuvukeni, Limehill, Spanditkron, Vaalkop, Qibukhowe and Tholeni totaling to 1987 connections. The prioritized areas by eskom have been taken into account in the identified lists of projects. The department of housing will be attending the set stakeholders meeting with Eskom.

4.4 MIG

The municipality has a prioritized list of MIG projects, as per the integrated development plan. This housing plan has been aligned the MIG programme, and the housing department will be playing a role in the MIG technical meeting.

4.5 Landfill Site

The municipality has an existing landfill site, which is in the process of complying fully with the legal requirements.

4.6 Disaster Management

The municipality has developed the disaster management plan in line with the provincial guidelines.

4.7 Schools

The municipality has established a quarterly meeting forum with the department of education, and other stakeholders with keen interests in education. One of the main objectives of the forum is to discuss the current demand and future needs of learners. The department of housing within the municipality will ensure that there is integration between the development of houses and learners need.

Page 19 of 26 4.8 Clinics

The primary health care function is one of the highest priorities of the municipality. The municipality is in the process of finalizing the clinics backlog and also taking into account the future housing development.

5. Housing Institutional Framework

The figure 6 below illustrates the existing organogram for the housing department:

Housing Manager S57

Projects Administrator Personal Assistant H Admin (Vacant)

Construction Project Help Desk Accounts Officer Manager (Vacant) (Vacant)

The above organogram has been made possible by the conditional grant funding received from the Flanders Government through the Provincial Department of Housing.

The Department of housing has been providing capacity building and training to the housing department staff. The municipality has established the Housing Help Desk (HHD) where customers or beneficiaries of the housing department get assistance.

The road shows through ward committees will be scheduled, where communities will be enlightened with the housing programme, general issues, etc.

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6. Spatial Development Plan

6.1 Primary Service Centre

Ekuvukeni is identified as a primary service centre. The area has some form of semi urban setting in that it acts as a major rural service centre within Indaka Municipality. It accommodates the municipal offices, police station and schools. The area includes a mixture of land uses namely administrative, social and settlements. Ekuvukeni will be further developed for services, businesses, institutional and administrative activities and a detailed Central Business Development plan is in a process of being drawn up.

6.2 Secondary Service Centre

There are four centres that were identified as Secondary Service Centres and they are Lime hill (Vaalkop, Choboza,etc), Sahlumbe (Hlathi, Ezihlabeni etc.), Hlumayo (Mkhumbane, Mgababa etc) and Ilenge (Cannibalism route). These centres currently perform few functions such as service delivery and to limited extent commercial activities.

6.3 Tertiary Service Centre

There are a number of tertiary centres, whichn are emerging. The first one is Amabolwane- Okhalweni and exists in an underdeveloped area and has the potential to develop into commercial centres and is intended to facilitate service delivery. Other centres are Makayane, Mpameni, Fifty Park, Mangweni, Cacane, Oqungweni, and Mlilweni in Ward 9. While the tertiary centres in Ward 10 include Ludimbi, Manqofini and Msusampi. Please refer to Annexure E for a graphical presentation.

7. Performance Management System (PMS)

With regards to Table 13, targets are set out as the baseline of delivery performance depending on the approvals by Department of housing. The municipality has adequate technical capacity to speedily deliver housing projects and is prepared to acquire additional technical staff should a need arises.

Please refer to Annexure F for a graphical presentation.

8. Conformity to policy guidelines

8.1 Gender Issues

The programme will focus on women as they normally have the responsibility for preparation of food, minding small children (those most vulnerable to water and sanitation related diseases) and looking after the sick. By focusing on this group and giving them the information to allow them to make the decisions regarding health and hygiene it will enable them to break out of the cycle of disease and poverty. This will include information on breast-feeding, nutrition and care of sick family members.

The main problem in construction has been that women, because of their gender roles in rural areas are excluded from construction training. In the Indaka area the main focus will be to motivate women to be part of the builder’s training. Local Health Workers who are women will also do health and hygiene training.

The Implementing Agent and or project manger will ensure that women are actively participating in the programme through the following mechanisms:

A ratio of 1:1 (women: men) will be adhered to in the key Project staff positions (Quality Assessor, Bookkeeper, Builders, Health workers, Beneficiaries administration, etc).

The Indaka Municipality is cognisant of the above issues and will meet the challenges set out above the respect to the following groups: Page 21 of 26

Housing Project Committee: IA/PM will ensure that 50% of the Committee is constituted by women. Moreover, it will provide additional mentoring and training to ensure that women are empowered in terms of their skills and confidence.

The presence of 50% women in decision making structures may provide the necessary enabling environment for women to articulate their views, concerns and suggestions.

Peer Educators. The IA will ensure that at least 50% of Peer Educators will be women. Their role in decision making in relating to the implementation of the housing projects will raise the profile of women through reinforcing their role as ‘educators’ and contributing to creating a healthy and safe environment.

Local Builders have traditionally been men. In this programme women will be trained, not as individuals, but through women’s groups, these will be trained in all aspects of construction, health and hygiene promotion, marketing and construction of facilities. This will raise the profile of the women as providing a valuable contribution to the village and simultaneously empower them economically. IA/PM will endeavor to ensure that 30% of the local builders will be women.

An indication of the numbers of and active participation from women will form one of the Key Performance Indicators for the monitoring and evaluation components of this project.

The Project Steering committee is composed of both males and females. This is great improvement considering the fact that the survey revealed that most development committees have a high composition of men.

8.2 Labour based construction

Labour intensive construction will be employed for all aspects of the project including:

 Digging;  Carting materials such as sand, gravel etc.  Constructing the superstructure.

The production of construction materials and construction/improvement of housing facilities will be carried out by local suppliers and builders. No machinery will be used.

It is anticipated that numerous temporary jobs will be created. Such jobs include: builders and assistant builders (women), field/health workers, Quality Assessor and Facilitator/bookkeeper. Hence training will be provided to the foregoing job categories.

The IA/PM will ensure that all construction is labour based. The tasks will be allocated to as many community members as possible to ensure that the majority of the community benefits. The committee will be responsible for engaging labour. Both skilled and unskilled labour will be solicited from the area.

Wages and standards will be agreed prior to the commencement of work. 15 builders will be prioritized for training.

8.3 Involvement of PDI’s

The project specifically caters for the involvement of local PDC’s. Examples of this are sourcing local mud block manufacturers and using only local suppliers of building materials. The Housing Project Committee will be encouraged, with guidance from the project manager to negotiate with local suppliers to aim to lower prices of materials delivered to avoid the necessity of importing cheaper materials from outside of the Indaka Municipality

8.4 Employment policy

The Works shall be carried out using labour-based construction methods, where appropriate, and the IA/PM shall adhere to the principles set out below.

The IA will empower the Housing Project Committee (HPC) to manage the construction through the use of local labour and community based contractors. Page 22 of 26

Labour-based or labour intensive construction may be defined as the economically efficient employment of as much labour as is technically feasible to produce the standard of construction demanded by the specification and allowed by the funding available. In other words, Works based on labour-intensive principles aim at devoting the highest feasible proportion of Project costs to unskilled, semi-skilled and skilled labour without jeopardizing the technical quality of the product demanded by the specification. Labour-based methods of construction result in the creation of a significant increase in employment opportunities per unit of expenditure. The intensive employment of labour achieves value for money through innovative techniques of work and management. In particular:

 As far as possible, payment of wages for labour is related to production output: a reasonable “task” is set, upon completion of which the labourer may go home or start a new task and  Employment is either on a daily/casual/temporary basis or in the form of a short-term contract.

A high degree of community participation shall be exercised throughout the process. This will be monitored by the IA. /PM

The IA/PM shall note that:

 The HPC will be required to employ the site staff, namely the bookkeeper, storekeeper and quality assessors, etc. People residing within the project area are to be given priority for employment and SMME opportunities.

 It is required for the IA/PM to provide all training, superintendence, labour (i.e. local people where labour-based works are performed) and materials for the execution of the labour intensive construction.

 The HPC will be responsible for encouraging the community to provide community- based contractors.

 Sites where labour-based methods or SMME development cannot be practiced shall be identified by the IA/PM and specifically approved in writing by the Housing Manager prior to commencement of construction.

 The IA shall note the minimum wages as prescribed by legislation.

8.5 Manpower utilization targets

Number of Jobs to be created: the Housing Manager to devise a strategy to maximize number of jobs to be created per project

Number of Persons to be trained: the Housing Manager to decide on the number of persons and categories to be trained per project

Number of Training Courses to be held: the Housing Manager to decide on the training courses required per project

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8.6 Wages and labour standards

The IA/PM and HPC will ensure that reasonable rates are paid for labour on each component of the construction of the houses. The IA/PM shall have regard for the stipulation laid down for all Housing Projects that labour is employed from the local community through the Institutional Labour Desk, HPC or similar arrangements that have been established for this purpose. Throughout all his/her activities the IA/PM shall ensure that the objective of leaving behind skills in the community is met.

The IA/PM shall empower the HPC to utilise labour desks, to be set up as appropriate, to assist in identifying available local labour, semi-skilled labour and Sub-Contractors where available. The Labour Desk shall also be used to assist and advise regarding conditions of employment, minimum wages, disputes and disciplinary procedures.

Although the IA/PM shall ensure that the HPC adheres to the statutory minimum wage rate or recommend negotiated additional incentive payments based on performance. Such negotiations should be approved by the HPC prior to implementation of the said incentives.

The Occupational Health and Safety Act must be adhered to.

8.7 Consultants and other Supports Services

All consultants will be appointed in consultation with the Department of Housing and a commitment given by the Consultants to empower local support services to assist in the Implementing of the projects.

8.8 Tender procedures

The programme emphasis will be placed on negotiating competitive supplies of materials from local suppliers in the Indaka area and areas within Uthukela District Municipality. The suppliers of cement, sand, blocks, etc, will be sourced within the project unless otherwise no suppliers in the area. This will be carried out by the IA/PM in consultation with the HPC. If bulk supplies are to be directly procured by the IA/PM, the approved bid procedures of the Indaka Municipality will be used.

8.9 Financial procedures

The financial procedures to be used will be as approved and/or audited by the Department of Housing for housing projects.

8.10 The environment

Issues relative to the environment have been addressed under clauses 4.2.2 and 5.2.7 within the body of this report (Refer Annexure D, Groundwater Protocol)

8.11 Design standards

The design standards will be as minimum level of services as set down by the Department of Housing.

The onus will be on the IA/PM to monitor these standards and make sure they are met.

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9. Reporting monitoring and evaluation

9.1 Reporting procedures

The Implementing Agents (IA) or Project Managers (PM) will report to Indaka Municipality’s Housing Manager on a weekly or monthly basis or as need (s) arise (s).

M&E Data will be provided by IA or PM via Email for direct electronic input into Indaka Municipality and Department of Housing M&E system.

The content of this data will cover achievement of project milestone dates, reporting number of units constructed, reporting KPIs covering social and technical aspects of the project.

Indaka Municipality will provide the Department of Housing with an activity report at the regular monthly programme progress meeting or as when required. The Housing Manager will be responsible for compiling and submitting reports to the Department of Housing.

9.2 Key Performance Indicators

The IA/PM will provide the Indaka Housing Manager with an activity report at the regular monthly projects progress meeting. The IA/PM will be responsible for compiling the final report for submission to Indaka Housing Manager and for entering M&E data into the Department of Housing M&E system.

9.3 Monthly Reporting

The IA/PM will provide the Indaka Housing Manager with an activity report at the regular monthly housing programme progress meeting. The IA/PM will be responsible for compiling the final report for submission to Housing Manager and for entering M&E data into the Department of Housing M&E system.

9.4 Monitoring & Evaluating & Projects reviews

The Housing Manager will be responsible for entering M&E data into the Department of Housing M&E system. The responsible person is Mrs S Sithole. There will be an ongoing monitoring of projects against milestones and KPIs by the IA/PM, Housing Manager and Department of Housing at monthly programme progress meetings, where corrective actions will be planned if required. Department of Housing and Indaka Housing Manager will be at liberty to evaluate any portion of the work in detail or an independent agency from time to time.

9.5 Project Audits

Project audits will be undertaken by the Department of Housing / Housing Manager / Ndabezitha / IA/PM officials before completion of the project. The audits will be conducted on technical, social and health and hygiene aspects of the project.

9.6 Project Close Out Report

A project close out report will be prepared by the IA/PM after completion of the projects, providing details of the execution of the project in terms of the planned scope of works (Technical, ISD, Financial and Health and Hygiene) as detailed in the Business Plans and subsequent approved Variation Orders.

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10. REFERENCES

a) Indaka Municipality – Mrs Sithole

b) uThukela District Municipality – Clive Van Niekerk & Wynard Veljoen

c) Dermacation Board Website

d) Jefferes & Green(WSDP) – Evette

e) Department of Housing Website

f) Department of Housing(PMB) – Thokozani Magagula

g) Department of Housing (DBN) – Nirvash

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