1. NELSON MANDELA BAY METROPOLITAN MUNICIPALITY
PRESENTATION TO THE NATIONAL
PORTFOLIO COMMITTEE
ON HUMAN SETTLEMENTS
PARLIAMENT CAPE TOWN
8 December 2011

2. BACKGROUND
The National Portfolio Committee on Human Settlements visited the Nelson Mandela Bay Municipality on oversight business on 29 November 2011
A number of issues were raised for the Municipality to respond on including but not limited to the following and subsequently the Municipality received an invite to make a presentation to the Portfolio Committee on the following :
1 .Implementation of USDG
2. Expenditure report on the USDG,monthly cash flows
3. IGR Protocol on USDG
4. Fischers Corner informal settlement
5. Grogro informal settlement
6. Land Audit and
7. Nceba Faku Village

3. USDG HISTORY
From its introduction the USDG was intended to address and to give effect to integration and sustainability components of Human Settlements and to this effect the funding, as conceived by NMBM was intended to cover the following capital projects:-
Land Planning
Provision of water and sanitation services
Provision of adequate housing
Electricity
Roads & Stormwater

4. Urban Settlements Development Grant
Conditions per DoRA
Agreed Multi year performance targets
Prioritise Residential Infrastructure for:
Water
Sanitation
Refuse Removal
Street Lighting
Solid Waste
Connector & Bulk Infrastructure
Roads supporting Human Settlements

5. Urban Settlements Development Grant CONDITIONS per DoRA (cont’d)
Draft Performance Framework submission by 30 March 2011, Final approval by 7 June 2011
BEPP submission ratified by Council
Grant may be used for:
Acquisition, Development or re-Development of Land
Basic Infrastructure Services for Poor Households incl Bulk Services
Upgrading of Informal Settlements

6. Urban Settlements Development Grant 2011/12 Allocation Methodology
Total Allocation: R502 million
MIG & MIG-Cities:R247 million contractually committed to projects based on MIG & MIG-Cities framework
16 March 2011: Communication to seek clarity on definition and utilization of USDG. National Treasury agreed with our thinking and no response from National Human Settlements

7. USDG allocation methodology:
Change the current township to sustainable human
settlements
Upgrade bulk services to accommodate demand due to
housing delivery.
Provide tarred roads to attract economic activity and
integration
Acquisition of land for housing delivery
Provide reticulation services for housing delivery
Current delivery capacity of implementing Directorates

8. USDG PERFORMANCE COMPARED TO BUDGET
From 1 July to 30 November 2011
Directorate
Allocation
In Millions
Spending %
Roads & Stormwater
R173,0
R40,8
24%
Electricity & Energy
R 30,0
R 4,8
16%
Water Services
R 64,7
R13,9
21%
Sanitation Services
R107,0
R14,9
14%
Human Settlements
R105,0
R17,7
17%
Public Health
R20,5
R 5,0
TOTAL
R502,0
R97,1
19%

9. USDG PERFORMANCE COMPARED TO CASH FLOW
From 1 July to 30 November 2011
DIRECORATE
Cash Flow
In Millions
Spending %
Roads & Stormwater
R62,2
R40,8
66%
Electricity & Energy
R 4,6
R 4,8
103%
Water Services
R17,8
R13,9
78%
Sanitation Services
R14,5
R14,9
Human Settlements
R17,5
R17,7
101%
Public Health
R 7,7
R 5,0
65%
TOTAL
R124,3
R97,1

10. ACTION PLAN: Fast tracking contractors appointments
Mitigate the time constraints in the Compliance with National Legislation affecting SCM which is not always conducive in fast tracking contractors appointments
Fast tracking EIA approvals

11. Specific Matters raised by National Department of Human Settlements:

12. Grogro Informal Settlement
The land is privately owned.
Residents have been staying there since 1965
Initially there 30 households but the settlement has since grown to about 300 households.
Residents residing in the area for years without any form of services. They do not have water provision.
The policy of the Metro is that it does not provide services on private land.

13. Grogro Informal Settlement (cont’d)
The fact that the government was at least providing
scholar transport was positive.
The land has been leased to various lessees over time
The Deputy Executive Mayor has initiated a process to
acquire the land and the land-owner has shown
willingness to dispense with the land
Process of acquiring the land in question has started
with technical comments being sought and a final report
to Council will be submitted early next year.
HDA to be involved as it is its mandate to acquire land on
behalf of municipalities.

14. Fitches Corner About 80 households have been staying on an
undevelopable cemetery site since 1987
They form part of the7 year housing Plan
They are planned for relocation to St Albans
RoD conditions for St Albans are restrictive leaving no
land for housing development. Biodiversity and wetland
issues.
DEDEAT is not prepared to change the conditions and
the RoD and has since lapsed.
The following services are, however, available in Fitches
Corner ; water supply, refuse collection and traditional
pit sanitation

15. Fitches Corner (cont)
They are now being planned for relocation to Rocklands,
Kuyga or Chatty
Rocklands and Kuyga will require planning and environmental approvals with a lead time of about 12 – 15 months
Chatty is ready for relocations however there is a political intervention that will unlock community resistance in the area.

16. Nceba Faku Village (Chatty 756)
This is a rectification project which was approved by the Province. On the bases of assessment and further technical advise, the minor rectification works were changed to a demolish and total rebuilt. The construction works are thus awaiting additional funding approval from the Province

17. LAND AUDIT GRAP requires all immovable assets to be identified &
valued- not only vacant land but buildings as well.
As per audit land parcels have been identified
Land Audit incorporated into LAMACS (Land Asset
Management System)
Accurate data base – all municipal land
Identifies transactions – leases, sales etc
Leases linked to billing system
All land for the 7 year housing plan secured
There are only 7 land parcels greater than a thousand
squares but smaller than a hectare in the inner city.
To this effect we will rely on the assistance of HDA

18. ACTION PLAN No Challenge Intervention Capacity Responsibility Timeline1
EIA restricted areas
Acquiring alternative suitable land
Competency rests with HDA
HDA
DEDEA 2
Traditional pit toilets in Fisches corner
Provision of a bucket system
Capacity is available
Water and Sanitation
Feb-12 3
Households staying in undiginified areas
Relocation of Grogro and Fisches Corner informal settlements to Chatty
Portfolio Councillor/Mayor/
Acting ED Human Settlements
Jan-12

19. CONCLUSION Capacity to spend the Capital Budget does exist
Under performance is addressed by various forums and committees, internally and politically, to ensure delivery in terms of Budget
At these sittings spending is measured against Cash Flow targets which is reconciled to Budgets

20. THANK YOU