1. SELECT COMMITTEE ON PUBLIC SERVICE: REPORT ON QUALITY SANITATION TO HOUSEHOLDS PROGRESS REPORT ON THE RURAL HOUSEHOLD INFRASTRUCTURE PROGRAMME (RHIP) 28 AUGUST 2012 By MR T ZULU DIRECTOR GENERAL

2. PRESENTATION OUTLINE Background RHIP Overview RHIP Objectives
Roles and Responsibilities
Progress per Province – 2010/11
Challenges – 2010/11
Progress per Province – 2011/12
Financial Performance – 2011/12
Job Creation – 2011/12
Challenges – 2011/12
Way Forward – 2012/13 & 2013/14

3. Draft and Confidential
Background
In May 2009 State President announced the transfer of sanitation function from DWA to NDHS
Programme was formally transferred on 1 Nov 2009
Staff transferred were component dealing with basic sanitation - high level of sanitation remained with DWA
Draft and Confidential

4. RHIP OVERVIEW
The Rural Household Infrastructure Programme is a special four year programme to provide basic sanitation to rural communities.
The budget allocation at R1.2 billion over four year period as a schedule 7 Grant .
NDHS appoints Implementation Agents & enters into SLAs with Water Services Authorities.
The budget split over 4 year lifespan:
2010/11: R100 million;
2011/12: R231,5 million;
2012/13: R479,5 million and
2013/14: R389 million.

5. RHIP OBJECTIVES
To support municipalities to address rural basic sanitation backlogs.
To improve the quality of life in rural communities.
To contribute to the rural development priority of government.
To contribute to job creation and Local Economic Development.
To contribute towards meeting the sanitation MDG targets of South Africa.
To accelerate delivery of sanitation to meet the 2014 target.

6. Roles and Responsibilities of Implementing RHIP
Grant being gazetted as a Schedule 7 Grant: Even though funds are gazetted against municipalities, it is transferred to the National Department for management /implementation in particular municipalities
National Department is responsible for identifying mechanisms for implementation - Implementing Agents which could be NGOs, CBOs, Public Entities or Managing Contractors.
National Department needs to agree with municipalities on the scope of the work to be done. This is for the purpose of aligning the RHIP projects to municipal IDPs. This necessitates identification of specific areas of operation up to ward level.
National Department needs to agree with municipalities on issues of operation and maintenance of infrastructure

7. Roles and Responsibilities of Implementing RHIP (cont…)
Municipalities are to ensure that RHIP projects appear in their IDPs.
All parties attend site meetings to monitor progress and identify means of interventions should there be obstacles during implementation.

8. Demographic Profile (National Perspective)
Population estimate
% of total population
households
Eastern Cape
13,50
Free State
5,46
Gauteng
22,39
KwaZulu-Natal
21,39
Limpopo
10,98
Mpumalanga
7,23
Northern Cape
2,17
North West
6,43
Western Cape
10,45
Total
100,00
The current population of 50.5 million (2011) can be split into more than settlements, of which:
~21.2 million people (or 42% of the population) live in large metropolitan areas
~9.1 million people (or 18% of the population) live in medium-sized cities and towns
~4.5 million people (or 9% of the population) live in small towns in rural areas
~15.5 million people (or 31% of population) live in small rural villages and scattered settlements
2018/11/20

9. SANITATION STAUTS QUO: Households National Sanitation Backlog Profile from the Period 1994 to (Source: Water Services National Information System (WS/NIS April 2011). Table 1.
Province
Households with no access to basic Sanitation - April 1994
Households with no access to basic Sanitation - Oct 2001
Households with no access to basic Sanitation - April 2011
Households Served 2009/2010
Eastern Cape
1,001,327
899,487
288,346
49,371
Free State
399,780
348,433
236,647
9,104
Gauteng
621,394
522,836
406,054
33,667
KwaZulu-Natal
939,542
1,063,336
348,629
92,149
Limpopo
800,352
840,257
464,257
37,151
Mpumalanga
421,757
434,306
296,169
13,420
North West
368,290
411,760
236,577
17,845
Northern Cape
143,068
85,530
47,909
2,958
Western Cape
388,745
153,239
80,743
4,707
National
5,084,255
4,759,184
2,405,331
260,372

10. PROGRESS PER PROVINCE - 2010/11
Allocation: 2010/2011
(R’000)
Number of Benefiting Municipalities
Target Number of VIP Toilets
VIP Toilets completed at 31 March 2012
% Completion
Eastern Cape
R18,000 5
2,559
100%
Free State
R3,000 1
300
Limpopo
R27,000 9
3,600
3,376
94%
KwaZulu-Natal 7
3,674
Mpumalanga
R4,000
515
Northern Cape
400
North West
R6,000 2
828
National Prog. Management
R12,000
Grand Total
R100,000 26
11,876
11,652
98%

11. CHALLENGES /11
Programme started in Oct 2010 (procurement delays).
Some WSAs did not fully grasp the nature of Schedule 7 Grant and delayed signing SLAs with NDHS as they wanted to implement the programme themselves.
Excessive rainfall was experienced during December 2010 and January 2011 which caused delays.
Implementing Agents struggled to source building material and have it delivered on site.
Some contractors struggled with difficult ground conditions i.e. hard rock and high water table.

12. PROGRESS PER PROVINCE - 2011/12
Allocation: 2011/2012
(R’000)
Number of Benefiting Municipalities
Number of VIP Toilets targeted
VIP Toilets completed as at 31 May 2012
% Completion
Eastern Cape
R65,000 13
7,462
7,185
96%
Free State
R10,000 3
1,297
1,198
92%
Limpopo
R48,000 12
5,864
4,081
70%
KwaZulu-Natal
R68,000 15
7,967
7,137
90%
Mpumalanga
R8,000 2
1,038
1,023
99%
Northern Cape 1
507
486
North West
R28,000 7
3,551
2,979
84%
Grand Total
R231,500 53
27,686
24,089
87%

13. FINANCIAL PERFORMANCE - 2011/12 (WITH ROLL-OVERS)
Province
2011/12 Allocation & 2010/11 Rollover
Expenditure at
31 March 2012
Work in Progress
KwaZulu-Natal
R80,487,091
R63,207,997
R17, 279,094
Eastern Cape
R65,000,000
R55,868,072
R9,131,928
Limpopo
R54,552,091
R26,688,032
R27,864,059
North West
R30,063,533
R22,711,497
R7,352,036
Free State
R12,924,676
R8,548,344
R4,376,332
Mpumalanga
R10,086,447
R7,943,553
R2,142,894
Northern Cape
R4,394,162
R2,298,425
R2,095,737
Grand Total
R257,508,000
R187,265,920
R70,242,080

14. 2010/11 Roll-overs PROVINCE AMOUNT LP R9 m FS R3 m MP R2 m KZN R12m
TOTAL
R26 m

15. RHIP 2012/13 Expected Delivery
Province
Allocation: 2012/2013
(R’000)
Number of Benefiting Municipalities
Estimated Target Number of VIP Toilets
Eastern Cape 15
15,165
Free State
18 000 2
2,000
Limpopo
88 000 12
9,775
KwaZulu-Natal 17
16,328
Mpumalanga
24 000
2,666
Northern Cape
9 000 1
1,000
North West
57 000 7
6,332
Grand Total 56
53266

16. No of Benefiting Municipalities Estimated Target No. of VIP Toilets
TEMP. JOB CREATION /12
Province
No of Benefiting Municipalities
Estimated Target No. of VIP Toilets
Jobs Created as at 31 May 2012
Eastern Cape 13
7,462
1,372
Free State 3
1,297
181
KwaZulu-Natal 15
7,967
1,254
Limpopo 12
5,864
867
Mpumalanga 2
1,038
324
Northern Cape 1
507 70
North West 7
3,551
658
Grand Total 53
27,686
4,726

17. CHALLENGES /12
The 2 appointed Implementing Agents (Mvula Trust and IDT) could not implement such a programme at scale and achieve the outcomes set.
The existing SLAs between the NDHS and the Programme Management Support Team (Maxima Global/TranSpace) on one hand and Mvula Trust and IDT on the other were not consistent with each other.
The process of handling claims of the Implementing Agents needed to be restructured to assist them with improved cash-flow management.

18. CHALLENGES /12 cont…
The recovery plans submitted in Sept 2011 by the 2 Implementing Agents were too optimistic.
The IAs ability to procure building materials from suppliers in large quantities posed a serious challenge to the outcomes of the programme.
The scope of work approved for the IDT was at high risk of not being completed by end of the 2011/12 financial year.
In December 2011 NDHS re-allocated 7,098 units from IDT and negotiated with Mvula Trust to complete these units by the end of the 2011/12 financial year.

19. Operations and Maintenance Challenges
2012 Division of Revenue Act: Basic Service component of the Equitable Share, breaks down the allocation between water, sanitation and refuse removal.
These funds are for operation and maintenance which include emptying of full pits and septic tanks.
Draft and Confidential

20. WAY FORWARD /13 & 2013/14
NDHS has reduced the previous allocations to IDT and Mvula Trust to approximately 60% of the 2012/13 budget (in line with NDHS Portfolio Committee recommendations).
NDHS is currently in process of allocating approx 40% balance of the 2012/13 budget to tender for additional Implementing Agents to be added to the programme.
The SLA of the Programme Management Support PSP is to be aligned to the performance of the IAs.
In 2012/13 both machinery & manual labour will be used in difficult ground conditions where needed.

21. Draft and Confidential
Thank you
Draft and Confidential