Question NW75 to the Minister of Human Settlements
21 February 2024 - NW75
Opperman, Ms G to ask the Minister of Human Settlements
(1)Whether, given the fact that, in the 202021 financial year, her department purchased an Eskom building to the value of R16 million to address social housing needs in the Sol Plaatjie Local Municipality, her department did a cost analysis to convert the building into social housing; if not, why not; if so, what (a) was the projected cost and (b) is the current cost analysis; (2) whether, considering that the Government already owns a number of unused and vandalised state buildings, she has found that it makes sense to add more property to the list as opposed to using buildings that the Government already owns; if not, why not; if so, on what basis?
Reply:
1. According to the Northern Cape Provincial Department responsible for Human Settlements the department acquired the Eskom building through the Housing Development Agency (HDA) for the reported R 16 million.
(a) A projected cost analysis was prepared by LESEDI Technical Engineering CONSULTING (PTY) LTD for the HDA in August 2021 and the cost for the project conversion was estimated at R120 million.
(b) A current cost analysis has not been done.
2. A signed inter-ministerial agreement between the National Department of Human Settlements (NDHS) and the Department of Public Enterprises (DPE) affords the NDHS and its entities the first right of refusal from DPE to acquire disposable assets before availing them to the open market. The HDA as an Enabling Agent of the NDHS is tasked to acquire some of the properties availed by ESKOM for the purposes of provision of sustainable and affordable housing to communities. The HDA has identified a gap in the market for student accommodation in the various tertiary institutions in and around Kimberley. The HDA has therefore targeted the Eskom Towers building in Kimberley, for acquisition and redevelopment into student accommodation.
Student accommodation is renowned for being one of the less volatile asset classes thus providing investors an opportunity to plough funds with high prediction-confidence. The positive social-economic impact of this development besides job creation and an added revenue stream for the municipality has been an indication that investment in the ESKOM building is an advantage for development by the government.