1. Public Hearing Budget Vote No 30 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS: 25 MARCH 2010 1

2. Financial Expenditure 2009/10 2

3. 3 BUDGET/EXPENDITURE 23 March 2010

4. EXPENDITURE PER ECONOMIC CLASSIFICATION AS AT 23 MARCH 2010 4

5. Performance Strategic Plan 2010/11 5

6. KEY FACTORS TO BE CONSIDERED IN HOUSING DELIVERY Free State has a backlog of 200 000 households and 102 000 households live in informal settlements Many settlements are well-located and meet the spatial economic needs of households, but require tenure and basic services Informal settlement upgrade is significantly labour absorbing and can be linked to the EPWP and industrial policy on building materials Well-located affordable serviced land is a key constraint to subsidized and affordable housing delivery Function of long delays in land proclamation and servicing, land use planning and management (municipal capacity), regulatory red tape and a lack of bulk infrastructure are some of the constraints The public sector is a significant land owner with an ability to directly impact land market outcomes Currently available finance does not match escalating product prices 6

7. PROGRAMMES AND STRATEGIC GOALS Programme 2 Housing Needs, Research and Planning Strategic Goal Title: Improved housing delivery planning Goal statement To facilitate and undertake housing delivery planning Programme 3 Housing Development, Implementation, Planning and Targets Strategic Goal Title: Management of Housing Interventions Goal statementTo facilitate the allocation of subsidies and the creation of housing opportunities Programme 4 Housing Asset Management Strategic Goal Title: Management of housing assets and the Extended Enhanced Discount Benefit Scheme (EEDBS) Goal statement To provide for the effective management of housing assets and the upgrading of Land Tenure in respect of State Financed Rental Stock created before 1994. 7

8. NEW LOCALITIES AS PER OPERATION HLASELA 1.THABO MOFUTSANYANA Ficksburg Senekal Qwa Qwa 2.LEJWELEPUTSWA Welkom Odendaalsrus Bothavile Wesselsbron 3.XHARIEP Trompsburg Zastron Rouxville 4. MOTHEO Bloemfontein Thaba Nchu Botshabelo 5. FEZILE DABI Kroonstad Viljoenskroon Parys Heilbron Sasolburg Villiers 8

9. Budget Annual Performance Plan Outcome based plan Business Plan Programmes Township revitalisation FLISP Unblocked blocked projects NHRBC RURAL CRU SOCIAL HOUSING LAND Restitution / military veterans IRDP I IRDP II Units allocated 1800 2000 1800 10 LP 400 330 400 10 000 1900 100 1900 Opscap IDP Chapters Social & econ amenities 10% 20 4 halls Rectification of pre 1994 stock2 rooms 1800 Funds allocated 135m 44,9m 11,5m 30m 25,6m 85,5m 30m 20m 12,1m 4m 142,5m 10,3m 9 m 70 m 135m Informal settlements IRDP ii 3600 270m 9 Informal settlements IRDP 1 11300 250m EDDBS 170037,5m

10. Xhariep District Programmes Unblocked blocked projects PHP LAND Restitution IRDP I IRDP II Units allocated 650 500 sites 2 3 LP 50 IDP Chapters Social & econ amenities 3 1hall 2 rooms 100 Towns Trompsburg 100 Trompsburg 500 Trompsburg 1 Rouxville 1 Trompsburg 50 Letsemeng Rouxville 1 Zastron 100 Zastron 2 Zastron 1 Rouxville 100 Jaggersfontein 300 Bethulie 50 Za stron 100 Contractor/ service provider Mohokare Letsemeng Exec Summary Unblock 50 Rest 2 IRDP I 500 IRDP II450 (200) 2 rooms100 Total 1102 10

11. Trompsburg 50 Unblocked blocked projects PHP RestitutionTrompsburg 1 IRDP ITrompsburg 500 IRDP IITrompsburg 100 TOTAL651 LANDRouxville 1 Social & econ amenitiesRouxville 1 Zastron 2LAND Rouxville 100IRDP II Bethulie 50 Za stron 100 IRDP II Jaggersfontein 300 IRDP II 2 roomsZastron 100 11

12. Lejweleputswa District Programmes Township revitalisation Unblocked blocked projects PHP RURAL CRU Restitution IRDP I IRDP II Units allocated 1777 600 504 265 182 IDP Chapters Social & econ amenities1 halls Towns Welkom 300 (Hani park) Baruch 100 Odendaalsrus 392 Hostel G De Anker feasibility 20 Welkom 165 Henneman 70 Matjhabeng Ward 13 welkom Virginia 100 Bothavile 50 Wesselsbron 100 Wesselsbron 112 Calibra 200 Hani Park 300 Baruch 100 Odendaalsrus 290 Wesselsbron 107 Contractor / Service Provider Exec Summary Unblock 265 Rest 504 Rural 20 IRDP I 600 IRDP II1777 T/Rev 182 Total 3348 Red reflect changes made Welkom Naudeville 200 Bothavile 200 Welkom Badelia 200 Virginia Calibria 500 12

13. Township revitalisation Henneman 70 Virginia 100 Bothavile 50 Township revitalisation Unblocked blocked projects PHP Welkom 165 Wesselsbron 100 Unblocked blocked projects PHP RURAL CRUHostel G De Anker feasibility 20 Restitution Odendaalsrus 392 Wesselsbron 112Restitution Wesselsbron 107IRDP II IRDP IBaruch 100 Calibra 200 Hani Park 300 IRDP IIWelkom 300 (Hani park) Baruch 100 Welkom Naudeville 200 Welkom Badelia 200 Social & econ amenitiesWard 13 welkom 1 HALL Odendaalsrus 290 IRDP II Bothavile 200IRDP II Virginia Calibria 500 IRDP II 13

14. Thabo Mofutsanyana District Programmes Township revitalisation FLISP Unblocked blocked projects PHP RURAL LAND Restitution IRDP I Units allocated 1200 229 1 258 841 100 Towns Bethlehem Vogelfontein 450 Bethlehem 1 Ficksburg 1 Diyatalawa 50 Senekal 186 Harrismith 100 Bethlehem 100 Ficksburg 205 Qwa Qwa 100 Tshiame 155 Mohudi FDC 500 Makgolokweng 200 Senekal 2 Harrismith 226 Harrismith Schoenplatz Diyatalawa 50 Memel 100 Reitz 300 Warden road Vrede 200 Contractor Service Provider Exec Summary Unblock 841 Rest 229 IRDP I 1200 IRDP II 2350 T/Rev 100 FLISP 100 Rural 258 2 rooms 100 Total 5178 Clarens feasibility 14

15. Thabo Mofutsanyana District ProgrammesUnits allocated IDP Chapters Social & econ amenities 5 4 2 rooms100 Towns/ Municipality Dihlabeng Setsoto Maluti a Phofung Nketoana Phumelela Harrismith 100 IRDP II2350 Ficksburg 500 Senekal 100 Qwa Qwa 1000 Harrismith Tshiame 100 Bethlehem 150 Vrede 100 Memel 100 Reitz 100 Petrus Steyn 100 Contractor / service Provider Harrismith 300 Qwa Qwa 3 Warden 1 Clarens Mokobobo 100 15

16. Township revitalisation FLISPHarrismith 100 Bethlehem 100 Tshiame 155 Mohudi FDC 500 Unblocked blocked projects PHP Diyatalawa 50 Makgolokweng 200 RURAL Harrismith 226Restitution Harrismith Schoenplatz Diyatalawa 50 IRDP I RestitutionBethlehem 1 IRDP I Bethlehem Vogelfontein 450 Clarens feasibility IRDP I Memel 100 Warden road Vrede 200 Reitz 300 IRDP I LANDFicksburg 1 Unblocked blocked projects PHP Senekal 186 Ficksburg 205 Unblocked blocked projects PHP Senekal 2Restitution Ficksburg 500IRDP II Senekal 100IRDP II Bethlehem 150IRDP II Vrede 100 Memel 100 Reitz 100 Petrus Steyn 100 IRDP II Social & econ amenities Warden 1 Clarens Mokobobo 100 IRDP II Harrismith Tshiame 100 Harrismith 300 IRDP II Qwa Qwa 1000 Qwa Qwa 3 IRDP II Social & econ amenities 16

17. Motheo District Programmes Township revitalisation (dilapidated) Unblocked blocked projects (PHP) CRU SOCIAL HOUSING Restitution / military veterans IRDP I IRDP II Units allocated 2700 5900 130 400 150 873 350 IDP Chapters Social & econ amenities 3 1 2 rooms200 Towns Bloemfontein 1000 Bloemfontein Grassland (5900) Bloemfontein 18 (R) Bloemntein 400 Bloemfontein 150 Brandwag Bloemfontein 397 Bloemfontei 300 Batho Mangaung Bloemfontein Makgasa Hall Bloemfontein 100 Cairo Botshabelo 84 (php) Botshabelo 300 (PLS) Thabanchu 92 (php) Bloemfontein 50 (V) Mantsopa Naledi Botshabelo 1000 Thabanchu 500 Botshabelo 100 Van staden 50 Ladybrand 52 (R) Ladybrand 200 Contractor / Service prvd Exec Summary Unblock 873 Rest 130 IRDP I 5900 IRDP II 2700 T/Rev 350 CRU 150 2 rooms 200 Social housing 400 Total10703 17

18. Township revitalisation (dilapidated) Bloemfontei 300 Batho Township revitalisation (dilapidated) Van staden 50 Unblocked blocked projects (PHP) Bloemfontein 397 Botshabelo 84 (php) Botshabelo 300 (PLS) Thabanchu 92 (php)Unblocked blocked projects (PHP) Bloemfontein 150 BrandwagCRU Bloemntein 400SOCIAL HOUSING Restitution / military veteransBloemfontein 18 (R) Bloemfontein 50 (V) IRDP I IRDP IIBloemfontein 1000 Bloemfontein Grassland (5900) Social & econ amenities 2 rooms Bloemfontein Makgasa Hall Bloemfontein 100 Cairo Ladybrand 200IRDP II Ladybrand 52 (R) Restitution Botshabelo 1000 Botshabelo 100 IRDP II 2 rooms Thabanchu 500IRDP II 18

19. Fezile Dabi District Programmes Township revitalisation Dilapidated Unblocked blocked projects (PHP) CRU LAND Restitution IRDP I IRDP II Units allocated 1010 2900 177 6 LPs 400 330 100 IDP Chapters Social & econ amenities 4 1 Funds allocatedTowns Kroonstad 210 Viljoenskroon Kroonstad 177 Kroonstad 2 Sasolburg 400 Kroonstad 100 Heilbron 100 Mafube Parys 1 Parys 35 Heilbron 100 Sasolburg 45 Viljoenskroon 50 Sasolburg 1 Viljoenskroon 2 Parys 200 Sasolburg 400 Villiers 200 Metsimaholo Ngwathe Moqhaka Parys 1 Contractor / service prvd Exec Summary Unblock 330 Rest 177 IRDP I 2900 IRDP II 1010 T/Rev 100 CRU 400 Total 4917 19

20. Township revitalisation Dilapidated Heilbron 100 Unblocked blocked projects (PHP) Kroonstad 100 Unblocked blocked projects (PHP) LANDKroonstad 2 RestitutionKroonstad 177 IRDP IIKroonstad 210 Parys 35 Unblocked blocked projects (PHP) Parys 1LAND Parys 200IRDP II Social & econ amenities Parys 1 Unblocked blocked projects (PHP) CRUSasolburg 400 Sasolburg 1LAND Sasolburg 400IRDP II Viljoenskroon 50Unblocked blocked projects (PHP) Viljoenskroon 2LAND IRDP IViljoenskroon 2500 Villiers 200IRDP II Sasolburg 45 20

21. CHALLENGES / CONSTRAINTS 1.Shoddy workmanship 2.Fraud 3.Nepotism 4.Lack of effective monitoring 5.Rigging of tenders 6.Rigging of beneficiary lists 7.Collusion amongst contractors 8.Theft of building materials 9.Inferior building materials 10.Negligence 11.Use of incompetent contractors 12.Allocation of sites / demarcation 13.Pro-active Disaster Management 14.Planning and Risk Mitigation 21