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Presentation to Select Presentation to Select Committee on Public ServiceCommittee on Public Service

Overview of the Strategic and Annual Overview of the Strategic and Annual Performance Plans Performance Plans

2013/14 – 15/16 2013/14 – 15/16

Mr. T.W. ZuluMr. T.W. ZuluDirector-GeneralDirector-General

VISION VISION “A NATION HOUSED IN SUSTAINABLE HUMAN SETLLEMENTS ““A NATION HOUSED IN SUSTAINABLE HUMAN SETLLEMENTS “

MISSION MISSION “ TO FACILITATE THE CREATION OF SUSTAINABLE HUMAN “ TO FACILITATE THE CREATION OF SUSTAINABLE HUMAN

SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFESETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE” ”

ContentContent

Strategic Overview of the Department – 2013/16

Values Budget Structure of the Department Human Settlements Priorities Performance Indicators and Targets Financial Information Key Risks And Challenges

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Strategic OverviewStrategic Overview

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The Department implemented the approved turnaround strategy with effect from 01st April 2012.

An organogram was approved by DPSA with effect from 01st April and a process on migration of staff and personnel has been completed.

The National Treasury approved a revised budget structure which is consistent with the strategic plan but not the organisational structure.

A key issue intended to receive priority is the matter of alignment of the strategies with plans, budget and performance.


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A process will also unfold to further refine strategies and alignment to national development goals and priorities and this includes matters related to policy and strategic infrastructure development.

A key issue to receive attention is the alignment of roles, responsibilities, obligations and accountability for the household sanitation function.

The year will also require term reports to be completed and this includes Outcome 8 as well as the 20 year review of government


The material and key performance indicators, outputs and outcomes as contained in Outcome 8 and the objectives in the Estimates of National Estimates (ENE) receive priority focus in the strategic and annual performance plans of the Department.

The Department will use the 2013/14 financial year as one that imbeds the National Development Plan in respect of strategy, policy and operations for sector and institutional transformation and implementation.

The targets as contained in the Delivery Agreement signed between the Minister and the President also form a key basis of the strategic focus areas of planning, funding and implementation.

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The following are key programme and projects activities for the period head:

The implementation of the revised FLISP programme.

Implementation of the management of the Rectification Programme by the Department.

Focus on the accreditation programme

Improving on the social and rental housing units delivered.

Better and improved intergovernmental collaboration and coordination.


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Special and designated group and sector focused programmes including “Youth Builds”, “Women's’ Builds” and the “Each One, Settle One” programmes are to be up scaled and planning and funding improved.

Better and improved output and target monitoring including quality and value for money through the Programme Management Unit is envisaged.

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ValuesValues

The core values of the Department based on the Constitution include :

Accountability Fairness and equity Choice, quality and affordability Sustainability Innovation as well as adherence to;

Batho Pele principles.

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DEPARTMENTAL ORGANOGRAMDEPARTMENTAL ORGANOGRAM

CD: EXECUTIVE SUPPORTMr. S.S. Nkosi

CD: INTERNAL AUDIT, RISK MANAGEMENT AND SPECIAL INVESTIGATION Mr. T. Mashabane (Act)

CD: HS StrategyDr Z Sokopo

DIRECTOR-GENERALMr T Zulu

CD: HS Planning Mr A Arendse

CD: Stakeholder Relations & IntergovernmentalMr W Jiyana

CD: Corporate SupportMr E Sithole

CD: CIOMr M Xaba

CD: LegalServicesAdv J Tladi

DDG: HS Strategy

&Planning

Mr N Chainee

CD: Governance FrameworksMr T Nobotana

CD: Operational Policy FrameworksMr L vd Walt (Act)

DDG:CorporateServices Ms NLetsholonyane

DDG: HS Delivery FrameworksMr M Maphisa

CD: Human ResourcesMs. M. Snyman

DDG: Chief Of OperationsMs. S. Ngxongo

CD: Regulatory Compliance ServicesVacant

CD: Technical CapacityDevelopment Mr M Maclean

CD: Enterprise Architecture Mr M Moerane

CD: Chief Investment Officer

Mr M Hitge (Act)

CD: Financial Management

Mr N Mbengo

DDG: Chief Financial Officer

Ms F Matlatsi

CD:Communication

s ServicesMr X Xundu

CD: Programme & Project PlanningMs J Bayat

CD: Programme Implementation FacilitationMr J Wallis

CD: Sanitation ProgrammeMr P Chauke (Act)

DDG: Project Management Unit (PMU)Mr J Wallis

(Act)

CD: Programme Monitoring & EvaluationMr P Chauke

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CD: Advisory ServicesMr L Jolobe

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Budget Programme StructureBudget Programme Structure

• Programme 1: Administration.

Purpose: Provide strategic leadership and administrative support services to the department

• Programme 2: Human Settlements Policy, Strategy and Planning.

Purpose: Manage the development and compliance with human settlements sector delivery frameworks and oversee integrated human settlements strategic and planning services.

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Budget Programme StructureBudget Programme Structure

• Programme 3: Programme Deliver Support.

Purpose: Support the execution of human settlement programmes and projects and oversee the implementation of the household sanitation programme

• Programme 4: Housing Development Finance

Purpose: Fund and monitor the delivery of all housing and human settlements programmes, including oversight of public entities reporting to the Minister of Human Settlements and manage all matters related to improving access to housing finance and developing partnerships with the financial sector.

Human Settlement Priorities

1. Accelerated delivery of housing opportunities

2. Access to basic services

3. More efficient land utilisation

4. Improved Property Market

Upgrading of 400 000 households in Informal

Settlements

Affordable Rental Housing Stock

20 000 units p.a.

National Bulk Infrastructure Programme and Increased Access to Basic Services

Acquisition of 6250 ha state owned land

Supply of Affordable Housing Finance

to 600 000 households

14Draft, Confidential & Not for Publication

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Performance Indicators and Performance Indicators and Targets Targets 2013/142013/14

Draft, Confidential & Not for Publication

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Indicators Programme Outcome to

which it contributes

PastCurre

ntProjected

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Number of additional municipalities assessed for accreditation level 2 per year

Human Settlements Policy, Strategy and Planning

Outcome 8: Sustainable

human settlements

and improved quality of

household life

- 6 10 10 5 5 5

Total number of municipalities provided with technical assistance for informal settlement upgrading per year

Housing Development Finance

- 20 20 20 49 49 49

Number of additional residential units completed per year


161,854 121,879 120,610 72,223 132,705 138,540 137,898

Number of additional sites serviced per year (green fields)


64,362 63,546 58,587 26,308 77,248 81,883 85,568

Key Performance Indicators

Draft, Confidential & Not for Publication

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Indicators Programme Outcome to

which it contributes

PastCurren

tProjected

2009/10 2010/112011/1

22012/1

32013/1

42014/1

52015/16

Number of additional households upgraded in well-located informal settlements with access to secure tenure and basic services per year (Brownfields)


- 52,383 66,639 22,460 62,752 66,517 69,510

Number of additional hectares of land prepared for human settlements development per year


Outcome 8: Sustainable

human settlements

and improved quality of

household life

- 4,945 2,000 2,000 2,000 2,000 2,000

Number of additional loans granted in the affordable housing segment per year


- 47,616 69,576 69,970 63,798 62,344 67,527

Number of additional households provided with on-site sanitation in rural areas per year

Rural Household Infrastructure Programme

- 11,652 19,225 5,818 11,858 12,296 12,588

Key Performance Indicators

Financial InformationFinancial Information

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2013 MTEF Allocation2013 MTEF Allocation

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Rand thousand

Medium term estimates

2013/14 2014/15 2015/16

Administration 422,399 426,948 445,106

Human Settlements Policy, Strategy and Planning

84,055 89,301 92,967

Programme Delivery Support 226,922 239,335 251,305

Housing Development Finance 27,377,087 29,450,583 31,957,214

Human Settlements Development Grant

16,983,872

17,918,321

19,667,204

Urban Settlements Development Grant

9,076,906

10,334,684

10,699,773 Rural Households Infrastructure Development

106,721 113,124 118,328

Departmental Public Entities

1,133,751

1,002,070

1,388,035

Total 28,110,463 30,206,167 32,746,592

Rand thousand

Medium term estimates

2013/14 2014/15 2015/16

Housing Development Agency 97,497 101,047 104,615

National Urban Reconstruction and Housing Agency

100,000 - -

Social Housing Regulatory Authority: Operational

32,151 33,480 34,560

Social Housing Regulatory Authority: Capital restructuring grant

904,103 867,543

1,248,860

Total 1,133,751 1,002,070 1,388,035

Transfer payments to Public Transfer payments to Public EntitiesEntities

Human Settlements Development Grant Human Settlements Development Grant Provincial AllocationsProvincial Allocations

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Provinces 2013/14 2014/15 2015/16

R`000

Total Allocation by province



Eastern Cape 2,523,803 2,662,663 2,922,546

Free State 1,120,936 1,182,609 1,298,035

Gauteng 4,108,399 4,334,441 4,757,497

Kwazulu-Natal 3,235,428 3,413,440 3,746,602

Limpopo 1,324,742 1,397,629 1,534,042

Mpumalanga 1,124,332 1,186,193 1,301,969

Northern Cape 395,724 417,497 458,247

North West 1,224,537 1,291,911 1,418,005

Western Cape 1,925,971 2,031,938 2,230,261

Total 16,983,872 17,918,321 19,667,204

Human Settlements Development GrantHuman Settlements Development Grant

• Goal - The creation of sustainable human settlements that enables an improved quality of household life

• Purpose - To provide funding for the creation of sustainable human settlements

• Outcome 8 - Facilitation and Provision of Access to Basic Infrastructure, Top Structures and Basic Socio Economic Amenities that contribute to the creation of sustainable human settlements

• Improved rates of employment and skills development in the delivery of infrastructure

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National Priority Programme AllocationsNational Priority Programme Allocations

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Province Town 2013/14 2014/15 2015/16

Eastern Cape Duncan Village 109,767 117,881 129,386 Gauteng Lufhereng 182,944 196,468 215,644 Diepsloot 91,472 98,234 107,822 Sweetwaters 45,736 49,117 53,911 Khutsong 96,046 103,146 113,213 Sub Total 416,198 446,965 490,590 Kwazulu-natal Cornubia 120,743 129,669 142,325 Limpopo Lephalale 291,651 313,211 343,781 Western Cape Drommedaris 62,736 67,374 73,950

Total 1,001,095 1,075,099 1,180,032

20% Allocation to Specific Outcome Targets20% Allocation to Specific Outcome Targets

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2013/14

Province Upgrading of Informal Settlements

Rental and Social Housing

Land acquisition

National Priority Programme

EASTERN CAPE 145,778 170,074 24,296 109,767

FREE STATE 62,861 73,338 10,477 -

GAUTENG 246,500 287,584 41,083 416,198

KWAZULU-NATAL 191,022 222,860 31,837 120,743

LIMPOPO 77,345 90,235 12,891 291,651

MPUMALANGA 67,424 78,661 11,237 -

NORTHERN CAPE 22,712 26,497 3,785 -

NORTH WEST 71,894 83,876 11,982 -

WESTERN CAPE 115,558 134,818 19,260 62,736 Total 1,001,095 1,167,944 166,849 1,001,095

HSDG Allocations to Metropolitan HSDG Allocations to Metropolitan CouncilsCouncils

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Provinces Metropolitan 2013/14 2014/15 2015/16

Eastern Cape Nelson Mandela 206,900 220,800 242,351

Gauteng Ekurhuleni 933,800 996,600 1,093,871

Jo'burg 1,314,000 1,403,000 1,539,937

Tshwane 788,600 841,700 923,852

Sub Total 3,036,400 3,241,300 3,557,661

Kwazulu-Natal eThekwini 878,400 937,600 1,029,113

Western Cape Cape Town 733,484 782,870 859,280

Grant Total 4,855,184 5,182,570 5,688,405

Business PlanBusiness Plan

• Credit Linked Individual Subsidy Programme:– R47 million to be spent;

• Financed Linked Individual Subsidy Programme:– R112 million to be spent;

• Rectification Programme– R430 million to be spent;

• Accreditation support to municipalities:– R40 million to be spent;

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• Blocked projects:– R184 million to be spent;

• Land Parcels;– R278 million to be spent;

• Rental and Social Housing:– R1.1 billion to be spent;

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• Incremental Housing Programmes:– R7.6 billion to be spent;

• Rural Housing Programme: – R811 million to be spent.

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Current Challenges Current Challenges

• Lack of bulk and link infrastructure and related funding to implement projects;

• Delays in the planning of supply chain management;

• Lack of technical capacity at provinces and municipalities;

• Poor in the alignment, cooperation and coordination of strategic objectives and programmes of Provinces, Municipalities and Entities

• Inadequate medium and long term pipeline planning for programmes and projects;

• Deficiencies in data management and integrity.

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InterventionsInterventions• Provinces and Municipalities to align all grants to

ensure bulk infrastructure is in place before implementation of programmes and projects;

• Provinces and Municipalities must develop and align programme and procurement plans

• Feasibilties to ensure programme and project readiness.

• Programme Management Units to be established and prioritised.

• Provinces to utilise the HSS to administer and report on all human settlements delivery programme and processes.

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Measures Undertaken by DHS Measures Undertaken by DHS Provincial Business plans for 2013/14 have

been received and analysed by the DHS.

The 2013/14 Allocation letters sent to Provinces to allow for programme and project planning

From 28 February to 1 March – 3rd Quarter Mid Term reviews were conducted with Provinces and Council on Performance, Spending and Planning for 2013/14

DHS commented on 2013 DoRA Bill including Grant Frameworks.

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Urban Settlements Development Urban Settlements Development GrantGrant

Grant Purpose:Grant Purpose:

– To improve the efficiency and coordination of To improve the efficiency and coordination of investments in the built environment through:investments in the built environment through:

– Providing large municipalities with appropriate Providing large municipalities with appropriate resources and control over the selection and pursuit resources and control over the selection and pursuit of investment programmes in the built environment;of investment programmes in the built environment;

– USDG is an instrument for Metropolitan Council to address linkages between public housing and economic growth to simultaneously and contribute to Human Settlements Outcomes

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USDG - ObjectivesUSDG - Objectives

• USDG intends to integrate the release of well located land to the function of planning and funding of the built environment;

• Encourage cities to be proactive developers of infrastructure on well located land by mobilizing domestic capital;

• Compel improvement in development planning Compel improvement in development planning and also improve inter-governmental co-and also improve inter-governmental co-ordination (all 3 spheres) of development.ordination (all 3 spheres) of development.

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USDG - ObjectivesUSDG - ObjectivesIntroduced to address:

– Problems of inadequate control and management of investment in the built environment;

– Inadequate coordination of planning and weak accountability of all role players; and

– Focus on the development of urban land and infrastructure that is intended to the lay the foundation for local municipalities to gradually assume a greater role in managing built environment investments

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USDG Allocations to Metropolitan USDG Allocations to Metropolitan Councils Councils

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Provinces Metros 2013/14 2014/15 2015/16

EASTERN CAPE Buffalo City 613,305 698,290 722,958

Nelson Mandela 727,986 828,863 858,144

Sub Total 1,341,291 1,527,152 1,581,102

FREE STATE Mangaung 596,719 679,406 703,407

GAUTENG Ekurhuleni 1,584,912 1,804,532 1,868,280

Jo'burg 1,488,877 1,695,189 1,755,074

Tshwane 1,290,611 1,469,450 1,521,361

Sub Total 4,364,400 4,969,171 5,144,715

KWAZULU-NATAL eThekwini 1,580,999 1,800,076 1,863,667

WESTERN CAPE Cape Town 1,193,497 1,358,879 1,406,883

Grant Total 9,076,906 10,334,684 10,699,773

Challenges Challenges Lack of Coordination and alignment

experienced within Metros that causes poor service delivery coordination for USDG;

Lack of capacity to carry out programme plans;

Critical vacancies and consistency of personnel managing the USDG;

Land acquisition challenges and limited land in close proximity to the city centre;

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Challenges Challenges

Multi-year projects are budgeted for in one financial year due to inadequate planning of projects;

Lengthy procurement processes; Legal challenges - Tenders being

contested in court for major projects; Management and governance of informal

settlements;

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InterventionsInterventions

• Improving the alignment and coordination in implementation of the USDG;

• Capacity constraints to be addressed through the Cities Support Programme established by National Treasury;

• Metropolitan Municipalities encouraged to appoint officials on a full time;

• Land acquisition management to be improved with the assistance of the Housing Development Agency;

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InterventionsInterventions

• Conducting of project readiness and attached list of projects as addendum to Performance Matrix;

• Councils to develop a programme plans aligned to procurement plans

• National and Provincial support for land acquisition, informal settlement upgrading and policy formulation to support council implementation

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Support Processes In Place Support Processes In Place • The Department has developed and presented a

turnaround strategy to improve spending for the Councils’ and presented to Technical MinMec, Portfolio Committee on Human Settlements etc.

• Performance Matrix developed that addresses human settlements related issues

• Consulted with National Treasury to incorporate the matrix in the Service Delivery Business and Implementation Plan (SDBIP) reporting template so as to have one single reporting template

• Support to be provided through the National City Support Programme (CSP) to the Metros with capacity constraints.

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Support Processes In PlaceSupport Processes In Place• The Department has the following systems in

place for monitoring the implementation of the USDG:– Quarterly oversight visits are planned with all

Councils to monitor progress and to address challenges.

– Quarterly reviews are conducted with Metros.– Monthly Expenditure Analysis and Quarterly

feedback to individual metros.– Regular reviews and programme and policy

support with Sector Department to Councils – City Budget Forum, Outcome 9, NUSP and Accreditation .

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Rural Households Infrastructure GrantRural Households Infrastructure Grant

• The purpose of the Grant is to provide capital funding for the reduction of rural water and sanitation backlogs and to target existing households where bulk dependent services are not available.

• The grant was initiated as a schedule 7 grant in the 2010/11 financial year and amounted to R1.2 billion.

• The grant has allowed for 50 065 Household to have been served with basic sanitation since its inception in 2010.

Rural Households Rural Households Infrastructure GrantInfrastructure Grant

• The schedule of the grant has changed from schedule 7 to 5b with effect from 2013/14.

• The Grant will be implemented by municipalities with the support of the Department

• For the next three years the grant allocation is as follows: 2013/14: R106 million

2014/15: R113 million and 2015/16: R118 million.

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RHIG Allocation per MunicipalityRHIG Allocation per MunicipalityEastern Cape 2013 (R’000) 2014/15 (R’000) 2015/16 (R’000)

Mbhashe 4 500 4 500 4 528

Mnquma 4 000 4 500 4 000

Engcobo 4 511 4 000 4 000

Elundini 4 000 4 500 4 000

King Sabata Dalindyebo

4 000 4 500 4 000

Matatiela 4 000 4 500

Total Eastern Cape 25 011 27 000 20 528

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Free State 2013/14 (R’000)

2014/15 (R’000) 2015/16 (R’000)

Maluti a Phofung 4 000 4 500 5 000

Total Free State 4 000 4 500 5 000

RHIG Allocation per MunicipalityRHIG Allocation per MunicipalityKWAZULU-NATAL 2013/14

(R’000)2014/15 (R’000) 2015/16 (R’000)

Umzumbe 4 000 4 500 5 000

Umnambithi/ Ladysmith 4 000 4 124 5 000

Umvoti 4 000 4 000 5 000

Dannhouser 4 000 4 500 4 000

Nongoma 4 500 4 000 5 000

Jozini 4 000 4 000 5 000

Umhlathuze 4 000 5 000 5 000

Umlalazi 4 000 4 000 5 000

Ndwedwe 4 000 4 000 5 000

Umzimkhulu 4 000 4 500 5 000

Total KwaZulu- Natal 40 500 42 624 49 000

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RHIG Allocation per Municipality RHIG Allocation per Municipality ..

LIMPOPO 2013/14 (R’000) 2014/15 (R’000) 2015/16 (R’000)

Great Giyane 4 500 4 000 5 000

Great Tzaneen 4 000 4 500 4 500

Thulamela 4 000 4 500 4 500

Lepel- Nkumpi 4 000 4 500 4 500

Great Tubatse 4 000 4 500 4 500

Total Limpopo 20 500 22 000 23 000

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MPUMALANGA 2013/14 (R’000) 2014/15 (R’000) 2015/16 (R’000)

Nkomazi 4 500 4 500 4 000

Total Mpumalanga

4 500 4 500 4 000

RHIG Allocation per MunicipalityRHIG Allocation per Municipality

NORTHERN CAPE 2013/14 (R’000)

2014/15 (R’000) 2015/16 (R’000)

Ga- Segonyana 4 210 4 500 4 000

Total Northern Cape 4 210 4 500 4 000

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NORTH WEST 2013/14 (R’000)

2014/15 (R’000) 2015/16 (R’000)

Ratlou 4 000 4 500 4 000

Greater Taung 4 000 4 500 4 000

Total North West 8 000 9 000 8 000

National Total 106 721 113 124 118 328

Departmental Support To Departmental Support To MunicipalitiesMunicipalities

The Department will support municipalities in the following manner:

• approve the business plans submitted by municipalities;• Continuously monitor implementation and provide support

to municipalities;• Submit monthly financial and quarterly non- financial

reports to National Treasury;• Submit an annual evaluation report after the end of the

financial year; and• Prepare a payment schedule for the transfer of the grant

to municipalities.

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Departmental Support To Departmental Support To MunicipalitiesMunicipalities

• The Department is in the process of filling vacant posts at regional offices in order to provide support.

• Monitoring and reporting processes and schedules are being developed to report on financial and non-financial progress

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Thank youThank you