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DEPARTMENTAL PERFORMANCE REPORT OCTOBER TO DECEMBER 2013 PORTFOLIO COMMITTEE ON HUMAN PowerPoint Presentation
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DEPARTMENTAL PERFORMANCE REPORT OCTOBER TO DECEMBER 2013 PORTFOLIO COMMITTEE ON HUMAN

DEPARTMENTAL PERFORMANCE REPORT OCTOBER TO DECEMBER 2013 PORTFOLIO COMMITTEE ON HUMAN

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DEPARTMENTAL PERFORMANCE REPORT OCTOBER TO DECEMBER 2013 PORTFOLIO COMMITTEE ON HUMAN

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  1. DEPARTMENTAL PERFORMANCE REPORT OCTOBER TO DECEMBER 2013 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS DIRECTOR- GENERAL: T ZULU 12 FEBRUARY 2014

  2. 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

  3. 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.

  4. 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.

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

  6. OVERALL PERFORMANCE FOR NDHS (OCTOBER - DECEMBER 2013)

  7. Overall performance

  8. OVERALL PERFORMANCE TO DATE

  9. 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.

  10. 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.

  11. 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

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

  13. 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

  14. 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

  15. OUTCOME 8 : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

  16. 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;

  17. 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);

  18. 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;

  19. 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),

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

  21. NATIONAL UPGRADING SUPPORT PROGRAMME • 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

  22. 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

  23. INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION

  24. 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

  25. ACCREDITATION OF MUNICIPALITIES Performance 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

  26. 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

  27. 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

  28. OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT • Actual delivery: • 278 497,9 ha of state land identified for assessment and 70 934,8 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;

  29. 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

  30. 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.

  31. 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

  32. 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

  33. 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

  34. 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

  35. PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

  36. OUTPUT 4: IMPROVED PROPERTY MARKET

  37. 4. JOB CREATION • 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.

  38. SANITATION

  39. PRESENTATION OUTLINE • SANITATION DELIVERY PROGRESS • JOB CREATION

  40. 5. SANITATION DELIVERY PROGRESS • 1 Quarterly progress report on the implementation of the RHIP in 26 municipalities on the number of units delivered and expenditure Target 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

  41. 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)

  42. 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

  43. 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

  44. 6. Financial Report - MTEF Allocation Grants and transfers to entities constitute 97% of the total allocation.

  45. Allocation MTEF: Transfer payments

  46. Summary of Adjustment Budget

  47. 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

  48. Adjustment Estimate • Unallocated during 2013 ENE • R44 million Human Settlements Development Grant: Disaster relief • Declared Unspent Funds • R20 million National Upgrading Support Programme

  49. Expenditure per Programme 3rd Quarter

  50. Expenditure per Programme as at 31 December 2013