Question NW4072 to the Minister of Human Settlements

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18 December 2015 - NW4072

Profile picture: Whitfield, Mr AG

Whitfield, Mr AG to ask the Minister of Human Settlements

With reference to her intervention in the Nelson Mandela Bay Metropolitan Municipality in the Eastern Cape, what (a) are the details of the R4,6 billion allocation to housing delivery in the specified municipality, (b) is the role of the Housing Development Agency (HDA) in this regard and (c) are the details of the agreement between the HDA, the specified municipality and her department?


(a) We indicated that the Nelson Mandela Intervention is supported by other sector departments, namely the National Treasury, Department of Cooperative Governance & Traditional Affairs and the Department of Water and Sanitation. Further, the projected funding for the intervention will be made available over the MTEF period through various Interdepartmental Grants such as the Human Settlements Development Grant (HSDG), the Urban Settlements Development Grant (USDG), the Municipal Water Infrastructure Grant (MWIG) and the National Skills Fund.

The breakdown of the projected R4.6 billion is at as follows:

Houses (16,191) R1.806 billion

Bethelsdorp 6500 Houses R721m

Kayamnandi 7000 Houses R776m

Walmer 2200 Houses R244m

Chatty (Military Veterans) 491 Houses R65m

Serviced Sites (15,700) R785m

Bulk Infrastructure (link and reticulation) and WWTPs R1.2 billion

Planning (greenfields) R82,1 m

Programme Management R428m

National Skills Fund (Skills Training) R300m

Estimated total R4.6 billion

(b) Role of the HDA

The National Department of Human Settlements (DHS), the Provincial Department of Human Settlements (PDoHS) and the Nelson Mandela Bay Municipality (NMBM) concluded a Memorandum of Agreement (MOA) and Implementation Protocol (IP), wherein the Housing Development Agency was appointed the implementing agent to implement and manage the NMBM Integrated Human Settlements Programme for a period of 4 years (1 July 2015 until 31 March 2019).

(c) Details of Agreement between the HDA, the Municipality and the Department

A Memorandum of Agreement (MOA), underpinning the institutional, funding and implementation arrangements was signed between the Minister of Human Settlements, the MEC for Human Settlements and the Executive Mayor of the NMBM – 30 June 2015. The three parties constitute the Executive Committee that exercises oversight over the Programme.

The relevant Departmental and Entity Accounting Officers comprising of the Director General, Provincial Head of Department for Human Settlements, City Manager and the Chief Executive Officer of the HDA signed an Implementation Protocol (IP) – 2 July 2015. The IP provides for establishment of a Project Steering Committee (PSC) comprising the Director-General, the Provincial Head of Department for Human Settlements and the City Manager to oversee the implementation of the programme.

The IP stipulates that a Technical Committee be established comprising senior officials from National, Provincial, Metropolitan Municipality and the Housing Development Agency (HDA) as a preferred Implementing Agent. The Committee is tasked with the day-to-day management of the projects forming part of the Programme.

In addition, the agreements provide for the following key elements:

  • The Provincial Department of Human Settlements is the developer for the housing and human settlements programme and projects with regard to construction of houses funded through the HSDG.
  • The Nelson Mandela Bay Municipality is responsible for all functions relating to spatial planning, bulk infrastructure and preparation of built environment performance plans, and will ensure that the USDG will be aligned to the HSDG allocations and targets and outputs.
  • As Implementing Agent, the Housing Development Agency will undertake the implementation of the Programme in line with an approved implementation plan in conjunction with the Province and Municipality.

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