SPECIAL PRESIDENTIAL SPECIAL PRESIDENTIAL PACKAGEPACKAGE

Response to the action in Response to the action in identified mining towns to identified mining towns to

PORTFOLIO COMMITTEEPORTFOLIO COMMITTEE15 August 2013

PurposePurpose

The purpose of this presentation is to provide the Portfolio Committee with a Report regarding work undertaken in respect of the Special Presidential Package for the identified mining towns

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Problem statementProblem statement• Increasing mining activity has resulted in

the mushrooming of informal settlements which have put a strain in the existing infrastructure and basic services.

• This has impacted on the living conditions of the mining communities and manifest:– overcrowded hostels– shacks in appalling conditions in informal

settlement– very poor access to basic services

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BACKGROUNDBACKGROUND• 16 October 2012

– Discussion at meeting of the Ministers, “Servicing the Special Presidential

Package: A short-to-medium term response to the deepening global economic crisis, exacerbated by wild-cat and violet strikes in the mining and trucking sectors”.

Resolutions taken include…Resolutions taken include…• Systems to be put in place to :

• operationalise the package; and• finalise the implementation framework;

• Lead/convening departments/agencies to :• co-ordinate relevant stakeholders toward developing a

Plan of Action per project for five years;• Alignment of the departments :

• those that lead the development of the Plans per element of the package; with

• those assigned the responsibility to lead the SIPs;

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Resolutions continues…Resolutions continues…• Monitoring and evaluation system :

– to track progress made in implementing the plan;• High level committee will :

– meet on a monthly basis and evaluate actions;• High level team will :

– receive an Implementation Plan – setting out who, what, when and with what resources

from each constituency; and • Impact will be received on a six-month basis.

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Meeting of Economic Cluster issues identifiedMeeting of Economic Cluster issues identified• 07 November 2012

– Living conditions of mine workers– Integration of mine-workers into municipal

human settlement plans and programmes– Consultations required with relevant

stakeholders to develop the Plan.– Electrification : Ramp up from 190 000-350

000 households across the country

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IDENTIFIED TOWNSIDENTIFIED TOWNS– Sekhukune (Greater Tubatse);– Welkom;– Emalahleni – Lephalale;– Rustenburg;– Klerksdorp;– West Rand; and– Carletonville

Outcomes of the interventionOutcomes of the intervention

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2. Improved socio-

economic conditions of

mine communities and labour

sending areas

3. Improved working

conditions of mine workers

1. Integrated and

sustainable human

settlements in mining towns

4. Ensuring decent living conditions for mine workers and meaningful contribution to the development trajectory of

mining towns and labour sending areas.

Anticipated Outcomes Anticipated Outcomes

• upgrading informal settlements;• providing fully subsidised housing; • providing low income rental accommodation;• making Finance Linked Subsidies available

for bonded housing stock.

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Processes undertakenProcesses undertaken• brief desk-top studies of identified mining towns. • requested funding from National Treasury• prepared a Human Settlements Framework • Met provincial departments, municipalities and

relevant social partners / stakeholders • Template for the content list of the Draft Human

Settlements Implementation Plan – sent to municipalities to be finalised

• Details of work undertaken NDOHS in comprehensive document– presented to the IMC on 23 April 2013 by DMR

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Processes going forward ..Processes going forward ..• Alignment :

– with NUSP initiatives– HDA - planning and implementation processes– Input by mining houses;

• Further meetings with – DCog, DoL, DTR, DMR, provincial departments

and municipalities to ensure that the objectives and outcomes of mandate for the Presidential Package are achieved

• Assistance offered to municipalities with finalising their HSDPs by June 2013

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Assistance provided by the DHSAssistance provided by the DHS• Housing Development Agency (HDA)

– Finalisation of proposals for project and programme management expertise – Undertake land assembly processes

• Social Housing Regulatory Authority (SHRA)– Facilitate rental delivery and management structures– Provide grant allocations for Rental Programme

• National Housing Builders Registration Council (NHBRC)– Enrol projects and ensure structural integrity of the housing units– Provide a warranty on housing units, technical and skills training expertise

• National Housing Finance Corporation (NHFC)– Determine affordable housing need– Assist with the management of the Finance Linked Subsidy Programme

(FLISP)• National Upgrading Support Programme (NUSP)

– Technical expertise provided for upgrading if informal settlements14

Modus operandi for accelerated deliveryModus operandi for accelerated delivery • Each Mining Town will :

– Be managed as a National Strategic Priority by the Project Management Unit (PMU) at DHS

– Have a dedicated Project Manager who will be responsible for all aspects of delivery. The HDA will appoint these Project Managers in 3 months

– Be monitored with financial and non-financial delivery tracked on a monthly basis

– Processes will be underpinned by Implementation Protocols

– Be funded from special ring-fenced funding for the informal settlement component

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Proposed Proposed Management Management

StructuresStructuresMeeting of DGs

Coordinating Task Team

NDOHS : PMU

Project Steering Committee – IGR DG, HOD, MM

Technical Task Team – IGR + PMU + sub committees

Operations TeamAt Municipal PMU

(HDA) Local leadership,

Community, Sector Depts and Stakeholder Reps

M & EDPME

Sub Committees, eg. beneficiary

admin., Communications,

etcPROVINCE

Tracking of monthly progressTracking of monthly progressAspect Month 1 Month 2 Month 3 Month 4 Month xPre- planning

Land Assembly

EIA/ Geotech

Bulks WaterSewerroads

Township Layout

establishment

Civils

Internal reticulationTopstructures Foundations

Wall platesRoofsCompleted

Beneficiary admin

ApplicationsApprovalsAllocations

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Addressing the ProblemAddressing the Problem• A principle decision to allocate 10% of completed

housing units to qualifying mineworker households • Cognisance is taken of the backyard dwellers and the

NDHS is looking at a mechanism to address this issue• An official waiting list is being compiled by the North

West Province.– A Demand Database process is underway and the

municipalities are being trained to utilise the system. The pilot in Bojanala has commenced

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2013/14 HSDG Allocation 2013/14 HSDG Allocation

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Mining Towns Sites Budget

(R ) Units

Budget

(R)

Total Allocation

% Allocation

Greater Tubatse : Burgersfort & Steelpoort (LP)

2,471 39,154 135 2,284 41,438 3.13

Lephalale (LP) 730 147,261 120 56,336 203,597 15.37

Rustenburg (NW) 1,450 37,397 1,920 143,784 181,181 14,80

Matlosana (NW) 0 0 1,705 113,207 113,207 9.24

Madibeng (NW) 1,915 53,308 645 67,312 120,621 9.85

Matjhabeng (NW) 943 35,270 1,172 107,505 149,424 13.33

Emalahleni (MP) 1,500 39,000 639 68,345 107,345 9,44%

West Rand (GP) 6,150 202,948 3,419 341,401 618,058 14,9%

Carltonville (GP) 0 0 0 0 97,046 2,4%

Total 15,159 554,338 9755 900,174 1,631,917% National Allocation 9.60%

2013 – 2014 - LIMPOPO2013 – 2014 - LIMPOPOTown Program Sites Bdgt-Sites Units Bdgt-Units

Annual Bdgt %

Tubatse Rental 0 0 0 0 0 0

FLISP 0 0 0 0 0 0

ISUP 2,471 R39,2m 0 0 R39,1m 2.96

Other 0 0 135 R2,3m R2,3m 0.17

Total 2.471 39,2m 135 R2,3m R41,4m 3.13

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Lephalale Rental 526 R33,7m 120 R56,3m R90m 6.79

FLISP 0 0 0 0 0 0

ISUP 2 R0,6 m 0 0 R0,6m 0.05

Other 202 R113m 0 0 R113m 8.53

Total 730 R147,3m 120 R56,3m R204m 15.37

2013 – 2014 NORTH WEST2013 – 2014 NORTH WESTTown Intervention Sites Budge - sites Units Budget - units Annl

Budget%

Matlosana Rental 0 0 100 R5,9m R5,9m 0.48

FLISP 0 0 0 0 0 0.00

ISUP 0 0 200 R11,8m R11,8m 0.96

Other 0 0 1,405 R95,6m R95,6m 7.80

Total 0 0 1,705 R113,2m R113,2m 9.24

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Madibeng Rental 0 0 95 R30,4m R30,4m 2.48

FLISP 0 R7,5m 200 R13,5m R21,1m 1.72

ISUP 1,915 R45,8m 0 0 R45,8m 3.74

Other 0 0 350 R23,4m R23,4m 1.91

Total 1,915 R53,3m 645 R67,3m R120,6m 9.85

2013 – 2014 - NORTH WEST2013 – 2014 - NORTH WESTTown Intervention Sites Budget Sites Units Bdgt Units Annl Budget %Rustenburg Rental 0 0 120 R38,4m R38,4m 3.14

FLISP 0 0 100 R6,8m R6,8m 0.55

ISUP 1,450 R37,4m 500 R33,8m R71,2m 5.82

Other 0 0 1200 R64,8m R64,8m 5.29

Total 1,450 R37,4m 1,920 R143,8m R181,2m 14.80

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2013 – 2014 FREE STATEFREE STATEMining Town Intervention Sites Bdgt -Sites Units Bdgt - Units Annl Budget %

Matjhabeng Rental 3 0 50 R49,2m R49,2m 4.39

FLISP 0 0 0 0 0 0.00

ISUP 740 R22,5m 765 R52m R81,1m 7.24

Other 200 R12,8m 357 R6,4m R19,1m 1.71

Total 943 R35,3m 1.172 R107,5m R149,4m 13.33

MPUMALANGAMPUMALANGA

Town Intervention Sites Bdgt -sites Units Bdgt - Units Annl Bdgt %Emalahleni Rental 0 0 239 R40m R40m 3.5

FLISP 0 0 0 0 0 0

ISUP 1000 R26m 400 R28m R54m 4.8

IRDP 500 R13m 0 0 R13m 1.1

Other 0 0 0 R0,5m R0,5,m 0.04

Total 1,500 R39m 639 R68,3m R107m 9.44

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GAUTENGGAUTENGTown Intervention Sites Bdgt -sites Units Bdgt - units Annl Budget %West Rand Rental 0 0 279 R75m R75,2m 1.8

FLISP 0 0 100 R12,4m R12,4m 0.3

ISUP 1,450 R75,8m 1,490 R124m R200m 4.8

IRDP 4000 R103,8m 0 0 R104m 2.5

Other 700 R23,3m 1,550 R130m R226,7m 5.5

Total 6,150 R202,9m 3,419 R341,4m R618m 14.9

PHASE 1 PHASE 1

BOJANALA DISTRICT BOJANALA DISTRICT MUNICIPALITYMUNICIPALITY

MARIKANAMARIKANARUSTENBURGRUSTENBURGMADIBENGMADIBENGMOSES KOTANEMOSES KOTANE

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Demographic Profile of BojanalaDemographic Profile of BojanalaDemographic Profile of Bojanala by 2011

Total population

Year

(Census

date)

NWBPDM

(DC 37)

MLM

(D 371)

LMoM(D

372)

RLM

(D 373)

KRLM (D

374)

MKLM

(D 375)

2006 3 384 836 1 275 060 182 252 365 750 446 545 39 276 241 238

2010 3 489 740 1 323 921 185 306 377 057 475 226 40 477 245 854

2011 3 509 952 1 507 506 186 948 477 381 549 575 51 049 242 553

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Economic Profile of BPDMEconomic Profile of BPDM

 

Economically

Active

Population

Households Earning category (Monthly)

Municipality % <1500 1500<x<10000 >10000

Bojanala

Platinum DM 34.20% 13.29% 59.76% 26.96%

Moretele 23.00% 16.36% 65.87% 17.78%

Madibeng 32.50% 14.63% 62.03% 23.34%

Rustenburg 45.30% 8.97% 53.95% 37.08%

Kgetleng 50.40% 11.69% 60.10% 28.21%

Moses Kotane 21.30% 18.62% 64.35% 17.03%27

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Informal Settlement information 2013 - 2014Informal Settlement information 2013 - 2014

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PROVINCE DISTRICT MUNIC

LOCAL MUNIC

MINING TOWN

NO. OF INFORMAL

SETTLEMENTS

NO. OF HOUSEHOLDS IN INFORMAL

SETTLEMENTS

NO. OF HOUSE-HOLDS PLANNED FOR UPGRADING

North West

Bojanala Madibeng Madibeng 34 18,532 12,734

Bojanala Rustenburg

Rusten-burg

24 34,846 11,970

Bojanala Moses Kotane

Mogwase 1 715 715

TOTAL 56 51,093 25,419

Provincial overall allocationsProvincial overall allocations

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2013/14 Provincial 2013/14 Provincial allocations per mining townallocations per mining town

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MADIBENG (2013 – 2014 )MADIBENG (2013 – 2014 )PLANNED TARGETS + ALLOCATIONSPLANNED TARGETS + ALLOCATIONS

Intervention Sites Budget - sites

Units Budget - units

Annual provincial budget

Rental 0 0 100 R30,4m R30,4m

FLISP 0 0 200 R13,5m R27,0m

ISUP 1,915 R45,8m 0 0 R45,8m

Other 0 0 350 R23,4m R23,4m

Total 1,915 R45,8m 650 R67,3m R126,6m

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MADIBENG (2013 – 2014 )HOUSING UNITSMADIBENG (2013 – 2014 )HOUSING UNITSPLANNED TARGETS + ALLOCATIONSPLANNED TARGETS + ALLOCATIONS

Intervention Units Budget - units Annual provincial budget

Rental 100 R30,4m R30,4m

FLISP 200 R13,5m R27,0m

Fully subsidy 350 R23,4m R23,4m

Total 650 R67,3m R80,8m

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MADIBENG (2013 – 2014 ) SERVICED SITES MADIBENG (2013 – 2014 ) SERVICED SITES PLANNED TARGETS + ALLOCATIONSPLANNED TARGETS + ALLOCATIONS

Intervention Sites Budget - sites Annual provincial budget

ISUP 1,915 R45,8m R45,8m

Total 1,915 R45,8m R45,8m

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Madibeng – planned deliveryMadibeng – planned delivery

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Madibeng – FLISP + Private sectorMadibeng – FLISP + Private sector/ Mining interventions/ Mining interventions

Mining company

Project

Units

Type Beneficiaries approved

Status quo and milestones

Lonmin (Madibeng)

Wonderkop

3655 1000 serviced sites in current year

150 Socio-economic study of people in area . Planning for area will determine typologies to be constructed. Confidentiality agreement to be signed between Lonmin and NW Province

A development study to determine the capacity of bulk services required is to be undertaken.

Lonmin intends to donate serviced land in Marikana in EX 2 and % to the munic and is yet to be finalised.

Sunset Bay /Hernic Ferrochrome

Sunway Village

500

200

1000

FLISP

rental

full subsidies

Subsidy admin

Land and services commitment by the mine to the value of R24mill for the FLISP and rental.

Construction for the fully subsidised commenced in January 2010 and completion is anticipated in March 2015Time lines and funding

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Marikana AreaMarikana Area

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Marikana Marikana Mining company

Project Units Type Status quo

Lonmin(Rusten-

burg)

MarikanaAlsa

15000 Rental + subsidised

Provincial Treasury allocated R75mill for land acquisition. HDA is assisting Rustenburg with preliminary assessments for land assembly

Marikana 2-5

3000 Rental A draft agreement between Lonmin and Municipality in process for 3000 units. Lonmin will provide land to house their workers

Tharisa Madit-lokwa

800 Full subsidy

The Mine has donated land and Town Planning processes have commenced

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MARIKANA - WONDERKOPMARIKANA - WONDERKOPSTATUS QUO DELIVERY PROCESSES PLANNED /

UNDERWAY Number of informal structures

3656 around the area (Wards 25 & 26);

Informal settlement upgrading programme

Serviced sites in 2013 - 2014

Planning underway

1000 sites to be serviced as part of Phase 1

Land Acquisition was discussed with the Bapo ba Mogale Tribal Authority in relation to Wonderkop

Tribal Authority noted :i.Lonmin must access land for the people living in Nkaneng as these people as these households are associated with the mines and are largely migrant workers.ii.no development can take place on tribal land to benefit migrant workers but should rather benefit local peopleiii.Want houses, water, electricity and sanitation in land under their jurisdiction

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MARIKANA - WONDERKOPMARIKANA - WONDERKOPSTATUS QUO PROCESSES GOING FORWARD

Land R75 million allocated for land purchase in the 2013 – 2014 financial year

HDA has engaged with private land owners on 9 portions of land for housing. Pre- acquisition and pre-feasibility reports are being prepared by the HDA – this will determine land suitability for human settlement purposes

Informal settlement upgrading

R25,6 mill has been allocated by Province for 1000 services in this financial year

Bulk water and sanitation services for are not available for Wonderkop in this financial year but plans are being made for the 2014/15/16 financial year depending on timeous approval from MIG.NW province cannot provide the 1000 services until bulk services are provided.

ISUP processes initiated

Engaged with National Upgrading Support Programme (NUSP) for the categorisationand profiling of settlements and the development of an Upgrading Programme. DG has approved the Terms of Reference for NUSP to operationalise 40

MARIKANA - NKANENGMARIKANA - NKANENGSTATUS QUO PROCESSES GOING FORWARD

Land The occupation in the informal settlement is illegal as it is on privately owned land

HDA is assisting with land assembly

Informal settlement

About 4979 informal structures with a population of 19 916 located on private land. Area is serviced by temporary toilets, 1 per 20 households.

NUSP is assisting with procurement of a service provider to finalise the business plan for the upgrading of the informal settlement.

Province has allocated funds for the upgrading programme and the purchase of land from the owner. It is anticipated that upgrading will take place in 2014 – 2015

Bulk infrastructure

No bulk services are available

Discussions are underway with Rand andMagalies Water Boards

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RUSTENBURG SERVICED SITESRUSTENBURG SERVICED SITESPLANNED TARGETS + ALLOCATIONSPLANNED TARGETS + ALLOCATIONS

Intervention Sites Budget Sites Annual Budget

ISUP 1000 R25,7m R92.9m

Total 1000 R25,7m R92,9m

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RUSTENBURG RUSTENBURG PLANNED TARGETS + ALLOCATIONSPLANNED TARGETS + ALLOCATIONS

Intervention Units Budget Units Annual Budget

Rental 200 R63m R55mFLISP 154 R6,8m R6,8m

ISUP 1000 R67,2m R92.9m

Other 1200 R64,8m R64,8m

Total 2554 R201.8m R219,5m

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Rustenburg (2013 – 2014)Rustenburg (2013 – 2014)FLISP + Mining interventionsFLISP + Mining interventions

Mining company

Project Units Type Approved beneficiaries

Commencement date

Status Quo

Anglo Plat Seraleng 1000 100FLISP

54 Aug 2010

Mining company is providing land and interest free loans

Project commenced in 2012 and is expected to be completed in 2015. Construction is underway, however, delivery is delayed due to strike action

Implats Platinum Village

2420 54 FLISP

54 TBA 54 Confirmed FLISP for 2013 – 2014. Number of FLISP units to be reworked for outer years

Mine has planned an integrated village with socio-economic amenities as well as free standing units

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Moses KotaneMoses Kotane

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Project Units Type Budget (R’000)

Commence Date

Completion date

Status

Mmatau and Siga

300

Full subsidy

19 000 April 2012 March 2013 Completed in March 2013

Contractor will be on site during August 2013

Pella 278 Full subsidy

17 000 April 2012 March 2013 Completed in March ‘13

NEW PROJECTS FOR 2013 – 2014

Mmatau 200 Full subsidy

15 000 October 2013 March 2014 Contractor will be on site by October 2013

Moses Kotane Rural

1200 Rural Housing

81 000 September 2013

March 2014 Contractor will be on site by October 2013

Saulspoort 921 Full subsidy

109 000 August 2013 March 2014 Contractor will be on site by October 2013

Moses Kotane Mining contributionsMoses Kotane Mining contributionsContributor Project

localeUnits Type Status quo

Wesisizwe / Bakubung

Mogwase 2500 Low and middle income

Land disposal to be completed by end July 2013

Maseve Ledig 32 units over 3 years

Low income R2.4m ready project. Construction of 32 Units commenced in first week of June 2013. Completion anticipated in 2015

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Land ownershipLand ownershipMunicipality Land available Status Quo

Moses Kotane 800ha owned by the municipality

No Township Establishment as yet and the provision of bulk engineering services is required

Madibeng 2 portions in Bokfontein was acquired by the munic

HDA is assisting in acquiring the remainder of the third portion

Rustenburg Ramochana (Rustenburg X13)

Town and Townlands of Rustenburg 272 JQ

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Extent and number of properties of land identified by the HDA

  Total Land Identified by HDA Transnet Public Land Private Land Land Owned,

Transferred, Released

AreaNo. of

Properties

Extent (ha) No. of Properties

Extent (ha)

No. of Propertie

sExtent (ha)

No. of Propertie

sExtent (ha) No. of

Properties Extent (ha)

Bojanala District148 26 740.1852

17 9.5436 113 14 319.6419 14 2 707.4856 4 9 703.5140

Rustenburg Local Municipality

109 21 106.4180

12 2.6730 88 10 003.2600 7 2 636.0043 2 8 464.4806

Marikana

21 84.8555

12 2.6730 9 82.1825 0 0.0000 0 0.0000

IMC oversight visitIMC oversight visit• 02 August 2013• Ministers, Deputy Ministers, Directors-

General, officials• Projects visited

– Mogwase (Saulspoort Ph2 – in situ upgrading)– Rustenburg (Boitekong Ex 12 – CRU)– Rustenburg (Bokamoso – Mining Company)– Madibeng (Sunway – subsidised)

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Phase 2Phase 2

• Initial meeting commenced with –Emalahleni–Matlosana–West Rand

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Thank youThank you