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 • N2 Gateway • Zanemvula • Khutson g Background • 2005 - N2 Gateway Project prioritized • 2006 - PHDs name “provincial pilot projects” • 2006 - Zanemvula Project (NMBMM ) and Khutsong Project (Gauteng) 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 Cape Town (Western Cape) 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, Free State 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 (Khayelitsha), 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 Blikkiesdorp • 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