ADD NAME/TITLE HERE Presentation on

N2 GATEWAY, ZANEMVULA AND KHUTSHONG PRIORITY PROJECTS

to

SELECT COMMITTEE ON PUBLIC SERVICES

OCTOBER 2009 Purpose • The purpose of this presentation is to provide:

– Information on the determination of and categorization of national priority projects; – a briefing on the following priority projects • Gateway • Zanemvula • Khutson g

Background

• 2005 - N2 Gateway Project prioritized

• 2006 - PHDs name “provincial pilot projects”

• 2006 - Zanemvula Project (NMBMM ) and Khutsong Project () identified as prioritised projects

Determination of Priority Projects i. pronouncement by the State President, Cabinet or the Minister of Human Settlements or a decision by Minmec or the DG of Human Settlements; ii. may have initially been determined as a provincial pilot project; iii. capability to achieve identified national priorities; iv. fulfill the intent of the Comprehensive Plan - roll out an integrated sustainable human settlement; v. cooperative management in terms of inter-governmental protocols by the different spheres of government as

Determination of Priority Projects v. more than likely to be a mega project - deliver around 2 000 housing units or more or a number approved by the relevant MEC of the Province; vii. have a positive and visible impact on the lives of the affected communities; viii. is enrolled with the NHBRC and meets all the minimum national norms and standards; ix. has completed the P1 and P2 phases; and x. encapsulates all the relevant information in a Project Business Plan and submits Categorisation of Priority Projects i. ranking of the project outcomes in the national apex of priorities; ii. level of oversight and management input provided by the NDOH; iii. manner in which the project is funded; and iv. project’s state of readiness to deliver – inter alia, EIA, geotech investigations, land-legal, township establishment, Business Plans, etc. A1 Priority Projects – fullest facilitation and management input, oversight and monitoring by the NDOHS; – managed by three spheres of Government (cooperative and implementation agreements) – Allocated with ring-fenced funds, specifically for these priority projects; – Required to provide the NDOHS with monthly reports of progress; and – Reports to the meetings of Minmec. Project Project Location

N2 Gateway () Zanemvula Nelson Mandela Metro Municipality (Eastern Cape) Khutsong Merafong City (Gauteng)

A2 Priority Projects – Managed by the three spheres of Government – Provided with oversight and management at a more strategic level by the NDOHS; – Funded by the provincial grant allocations; and – Required to provide the NDOHS with monthly reports of Projectprogress. Project Location Grasslands Manguang Local Mun, Lerato Park Sol Plaatjies Mun, N Cape Emnambithi Urban Renewal Emnambithi/Ladysmith Mun, KZN Mokopane Ext 20 Mokopane Local Mun, Limpopo Duncan Village Redev. Initiative Buffalo City Mun, E Cape Klarinet Emalahleni Mun, Mpumalanga Ouboks Umsobomvu Local Mun, N Cape Chief Albert Luthuli Ext 6 Ekurhuleni Metro Mun, Gauteng

A3 Category Priority Projects

- New categorization (based on request to be accommodated within the 20% allocation of the total housing grant) Province Project Location

Free State Phakisa Estate Mtjabeng (Welkom), Bloemside Informal Settlement Upgrading Gauteng Hostel eradication upgrading programme (4 Regions)

KwaZulu-Natal Ethekwini-Cato Crest Upgrading, Amoatana, Empheleni Mpumalanga Ehlanzeni-Verulam (Umjindi), Gert Sibande (Rooikoppen-Lekwa) Northern Cape Khara Hais-Upington (various areas) Western Cape Kosovo-Phillipi, B M Section (), Enkanini (Khayelitsha) N2 Gateway Project

- located in Cape Town in the W Cape - conceptualised to address poverty and vulnerability of residents living along the N2 between the airport and the city - number of units planned around 22 000 units - planned as a pilot and to test the capacity of national, provincial and local government to execute settlement upgrading at scale overall layout plan includes socio

N2 GATEWAY LOCALITY PLAN

JOE SLOVO PHASE I OBJECTIVE: Rental units NO OF UNITS: 705 STATUS: • All units completed and occupied • Payment of Rental - 5% payment rate - Rental agreements in place - Identification of beneficiaries based on response to advert - Structural condition approved by engineers WAY FORWARD - Property management of rental units currently with Thubelisha - Turnaround strategy is being discussed by the different spheres of Government JOE SLOVO PHASE II OBJECTIVE: Bonded housing (FNB)

NO OF UNITS: 43

STATUS: • All units completed and handed over to beneficiaries

WAY FORWARD - Transfer of properties

JOE SLOVO PHASE III

OBJECTIVE: BNG houses Show Village

NO OF UNITS: 49

STATUS: • All services installed & top-structures completed • Beneficiary allocation completed

WAY FORWARD - Transfer to beneficiaries to be undertaken - Energy efficiency pilot with Danish funding in terms of Government to Government agreement for solar panel heating units on roofs JOE SLOVO PHASE III (A,B,C)

OBJECTIVE: Planned for High density.

NO OF UNITS: currently 1500

STATUS: • Subject of Constitutional Court judgment • Current planning to densify – Dependent on the results of the socio-economic study and the conditions stipulated in the Constitutional Court decision

– Draft layout design • Community consultation engagement with Joe Slovo Task Team at community level

WAY FORWARD - Continuous engagement with Joe Slovo Task Team on type of units, allocation, etc.

NEW OBJECTIVE: in-situ upgrade (712 contractorREST built + 443 PHP)

NO OF UNITS: 1155 units

STATUS:

• 572 units complete • competition between PHP associations for beneficiaries

WAY FORWARD

• Services installation need to be concluded and some people need to be relocated

DELFT 7 - 9 OBJECTIVE: Greenfields component to accommodate backyarders and households decanted from Joe Slovo

NO OF UNITS: 3912 UNITS

STATUS: • 2752 units complete • 98% of roads and internal services installed • Conversion from rental to BNG - will increase numbers • TRAs on 4 and 4.1on serviced land where houses have to be built

WAY FORWARD

• Need to resolve non-qualifiers Ct tii

DELFT

OBJECTIVE: BNG (originally rentalSYMPHONY + BNG)

NO OF UNITS: 4227

STATUS: • 2733 in precincts 4 & 6 units complete • Contractor left the site due to, inter alia : – contractual disagreements with Thubelisha in Precincts 1 & 2 – quality and counter-claim disputes to be resolved

WAY FORWARD

• Resolution of contractual issues, quality and counter- claims • Completion of houses

TRAs • Intersite : Langa • Tygerberg : Hospital U2 Building • Delft : TRA 4 + 4.1 • Delft TRA 1,2, 3 Tsunami • Delft : TRA • TRA 5 : to be erected • Phillipi TRA • Blue Downs TRA

N2 GATEWAY

SOCIO-ECONOMIC PROFILE • IN THE TARGETED AREAS, 97% HOUSEHOLDS LIVE IN INFORMAL DWELLINGS

• UNEMPLOYMENT RATE IS 57%

• 85% OF HOUSEHOLDS EARN INCOMES OF LESS THAN R1 600 PER MONTH

• 82% OF RESIDENTS DO NOT HAVE MATRIC

• 27% OF HOUSEHOLDS HAVE ACCESS TO ELECTRICITY

• LESS THAN 3% HOUSEHOLDS HAVE ACCESS TO ADEQUATE SANITATION (FLUSH AND CHEMICAL)

• LESS THAN 3% HOUSEHOLDS HAVE ACCESS TO DRINKABLE WATER (ON SITE OR IN DWELLINGS) N2 TOWN PLANNING GATEWAY TOWNSHIP PRECINCT EIA APPROVAL ESTABLISHMENT JOE SLOVO PHASE 1 COMPLETE IN PROGRESS JOE SLOVO PHASE 2 COMPLETE IN PROGRESS JOE SLOVO PHASE 3 COMPLETE IN PROGRESS DELFT TOWNS 7 TO 9 COMPLETE COMPLETE DELFT SYMPHONY COMPLETE COMPLETE NEW REST COMPLETE IN PROGRESS APPLICATION IN BOYSTOWN IN PROGRESS PROGRESS DISTRICT 6 COMPLETE COMPLETE N2 CURRENT STATUS: PHASE 1 SERVICES ( AS GATEWAYAT 11 SEPT 2009)

PROJECT NO. OF LAND PROJECT SERVICES COMMENTS TYPE SITES REHAB

Includes FNB bonded DELFT SYMPHONY units. 2 018 BNG sites BNG 6 244 100% 100% (All precincts) were converted to 1 333 bonded sites Roads on precinct 2 are DELFT 7-9 BNG 3 912 100% 95% 70% complete DELFT 7-9 BNG 616 N/A 0% Social unit conversion EXTENSION NEW REST BNG 619 N/A 90% JOE SLOVO PHASE 1 RENTAL 705 100% 100% FNB JOE SLOVO PHASE 2 43 100% 100% BONDED JOE SLOVO SHOW BNG 49 100% 100% VILLAGE JOE SLOVO PHASE 3 BNG 100% 0% Re-design: High density

BOYSTOWN BNG 1 308 0% 0% N2 GATEWAY CURRENT STATUS: PHASE 1 TOP STRUCTURES ( AS AT 11 SEPT 2009)

UNITS UNITS NO. OF FOUNDA- WALL ROOF HANDE PROJECT COMPLET UNITS TIONS PLATE LEVEL D E OVER DELFT SYMPHONY 5 560 4 314 2 944 2 867 2 733 2 377 (All precincts) DELFT 7-9 4 528 3 055 3 049 2 979 2 752 2 710 NEW REST 1 155 602 595 579 539 514 JOE SLOVO (Excl. 797 92 92 92 92 49 re-design BOYSTOWN 1 308 0 0 0 0 0

TOTALS 13 348 8 063 6 680 6 517 6 116 5 650

MISMATCH BET SERVICED SITES AND NO. OF UNITS PREDOMINENTLY DUE TO LOSS OF PREC 3&5 BNG SITES TO 1 333 UNITS AND NEW REST SITES OF WHICH 536 WAS PREVIOUSLY SERVICED BY CoCT N2 CURRENT STATUS: PHASE 1 FINANCES TOTAL COST ESTIMATE = R4 527 055 000 GATEWAY EXPENDITURE AS AT 31 JULY 2009

PAYMENTS PAYMENTS TO PROJECT RECEIVED VARIANCE CONTRACTORS (Province/CoCT) DELF SYMPHONY 338 680 283 338 295 430 -384 852 DELF 7-9 291 440 942 325 235 336 33 794 393 JOE SLOVO PRECINCT 1 39 566 308 42 582 000 3 015 691 JOE SLOVO PRECINCT 2 9 945 105 9 945 105 - JOE SLOVO PRECINCT 3 5 032 635 7 794 130 2 761 495 NEW REST 38 431 611 39 651 885 1 220 273 MIG 119 453 575 72 966 424 -46 487 150 PHILLIPI TRA 1 972 705 1 500 000 -472 705 BOYSTOWN 19 743 - -19 743 PROFESSIONAL FEES - 32 361 949 32 361 949 LEGAL 5 274 532 - -5 274 532 OTHER EXPENSES 383 246 9 841 653 9 458 407 TOTAL 902 621 611 934 237 853 31 616 242 Challenge

• shifting dynamics within the Province sinces 2004; • Inadequate appropriate land • Community issues (product choice, demolition of shacks and removals of people to accommodate servicing and construction of units, affordability of new units to current residents, poor quality of construction and quality and management of the Temporary Residential Areas [TRA’s]) • legal and security action and costs (invasions and evictions) • Non payment of rentals by tenants • Handover from Thubelisha to HDA • Institutional arrangements • Implementing the Constitutional Court decision • Lack of planning and under funding in relation to

Implementation going forward • Note lessons learnt from initial phase of the project and implement best practice • Ensure that the recommendations from the Auditor-General’s report dated June 2008 are implemented • Discussions re the transfer from Thubelisha to to H D A are underway • Processes to implement Concourt ruling are underway Zanemvula • located in Nelson Mandela Bay Metropolitan Municipality (includes Port Elizabeth, Uitenhage, Despatch and surrounding peri-urban areas. • Given prominence during Presidential Imbizo • National significance and a Ministerial Project, as envisaged in the Comprehensive Plan • Intent was to address the housing and development needs of the communities to:- ● Enable access to habitable, affordable and sustainable human settlements; ● Contribute to the upliftment of the socio-economic conditions of the households; ● Facilitate urban renewal and urban regeneration ● Mobilise institutional capabilities to execute sustainable and integrated settlement upgrading, at scale and at speed. Scope of the project

• The project will involve – informal settlement upgrading for approximately 6 400 erven – New greenfield or infill areas for another 9 000 erven – Provision of 3 600 erven for upgrading and/or improvement of existing dwellings – Total scale of the project may reach approximately 20 000 erven.

Areas of concern to be addressed

• Informal settlements below the 100-year flood line of the Chatty and Little Swartkops rivers.

• upgrade informal settlements above the 100-year flood line. • households who live in backyard shacks within the formal areas of Soweto-on-Sea and Veeplaas.

• densities which did not contribute to healthy and acceptable standards of living; and

• previously developed areas in the Soweto-on- Sea/Veeplaas areas where the quality and standard of top structures, requires urgent rectification Areas of concern

• Heavy rains in August 2006

• -> major implications on the lives of families living in the flood plains of the Chatty and Swartkops rivers • -> emphasized the need and urgency with which this project needed to move ahead. Zanemvula • managed as a National Priority Project • implemented in terms of inter-governmental-relations protocols. • Cooperative Agreement - signed by the last Minister of Housing and her political counterparts in 2006 • Implementation Agreement - signed by Administrative principals of the NDOH, E Cape PHD and the NMBMM during 2006. • Thubelisha was appointed as the implementing agent for the project on 17 July 2007. is the source area • around 3 500 households were moved to the Chatty and Bethelsdorp areas on a shack to shack basis – no TRAs • Housing construction commenced here and around 3000 houses were handed over by the last Minister of Housing by 02 April 2009 • Transfer from Thubelisha to HD A is in process