MEDIA STATEMENT
\nTO ALL MEDIA
\nFOR IMMEDIATE USE
\n5 February 2024 <\/p>\n
DEPARTMENT OF HUMAN SETTLEMENTS INITIATES BOLD STEPS TO UNBLOCK PROJECTS, PAVING THE WAY FOR SUSTAINABLE INTEGRATED HUMAN SETTLEMENTS<\/p>\n
In her 2023\/24 Policy Speech, Honourable Siphokazi Lusithi, MEC of Human Settlements, committed to leading decisive efforts to systematically unblock historically blocked\/stalled projects. This commitment stems from the acknowledgment that since 1994, the ANC-led government has successfully delivered subsidized housing to over 3 million households, marking a significant quantitative achievement in South Africa’s developmental goals.<\/p>\n
The 2022 Census by Statistics South Africa (StatsSA) reported a remarkable 20.4% increase in households living in formal dwellings in the province over ten years, reaching 83.6% in 2022. Access to piped water inside dwellings has also risen from 18.3% in 2001 to 49.5% in 2022, contributing to extended homeownership and increased productive assets for the people.<\/p>\n
However, despite substantial government-led investments, the demand for shelter continues to grow due to factors such as urban migration for economic opportunities and a growing population.<\/p>\n
Background and Context<\/p>\n
Honourable MEC Lusithi launched a campaign to systematically unblock historically stalled projects across the province, ensuring value for money and responding to the needs and aspirations of our people, as articulated in the 2023\/24 Policy Speech. The ongoing campaign involves rigorous oversight of both blocked and ongoing projects, engagements with various stakeholders, including communities and contractors, and the enhancement of departmental systems to prevent future occurrences.<\/p>\n
The Eastern Cape Department of Human Settlements is pleased to provide a comprehensive update on the remarkable progress made in unblocking historically stalled projects within the province. At the start of the 2022\/23 financial year, the department faced the challenge of 87 stalled or blocked projects, translating to 23,975 housing units spread across all eight regions, each encountering unique challenges.<\/p>\n
Through strategic interventions and collaborative efforts, we proudly announce the successful unblocking of 58 projects, translating to 12 759 housing units, with plans in place to address the unblock the 11 216 housing units in the remaining 29 projects. <\/p>\n
Project Unblocking Overview <\/p>\n
At the commencement of the 2022\/23 financial year, the Eastern Cape Department of Human Settlements grappled with 87 stalled\/blocked projects across its eight regions. These projects faced various challenges, ranging from poor contractor performance to issues related to the rural nature of certain areas and the unavailability of serviced sites. However, determined to address the housing needs of our communities, the department took significant steps to overcome these challenges.<\/p>\n
Out of the 87 blocked projects, the department successfully unblocked 58 projects, now slated for implementation over multiple years. Professional Services Providers were appointed to assess the construction status, contractors engaged to complete works, and planning processes initiated. The department anticipates a substantial number of completed houses on these sites by the end of the 2023\/24 financial year.<\/p>\n
Challenges and Regional Dynamics<\/p>\n
Each region faced distinct challenges. For instance, O.R. Tambo, Alfred Nzo, Chris Hani, and Amathole Regions witnessed contract terminations due to poor contractor performance. Nelson Mandela Bay Region struggled with the unavailability of serviced sites, while Sara Baartman Region grappled with the long-standing issue of insufficient bulk infrastructure. These challenges underscore the diverse dynamics faced by the department in different regions.<\/p>\n
The majority of blocked projects were initiated by municipalities in the past, with insufficient pre-planning and implementation activities. To address this, the department introduced Project and Home Enrolment with the National Home Builders Registration Council (NHBRC) to ensure project readiness before implementation, preventing future project blockages.<\/p>\n
Financial Overview and Future Plans<\/p>\n
The department required a budget of approximately R3.269 billion to construct about 23,975 housing units on the then 87 blocked projects, which now has 29 blocked projects. The financial allocation reflects the department’s commitment to overcoming historical project challenges and meeting the housing needs of our communities. Plans are underway to secure funding from various sources, with the National Department pledging support on a case-by-case basis.<\/p>\n
Regional Breakdown<\/p>\n
A detailed breakdown of unblocked projects, remaining blocked projects, and required funds for completion has been provided for each region, showcasing the department’s transparency and commitment to addressing specific challenges unique to each area.<\/p>\n
\uf0a7\tIn Amathole Region, the department has successfully unblocked eleven projects and is now remaining with three blocked projects.<\/p>\n
\uf0a7\t In the Buffalo City Metro, we proudly announce the successful unblocking of three projects, with one remaining blocked project.<\/p>\n
\uf0a7\tIn the Joe Gqabi Region, we are working tirelessly to address the seven remaining blocked projects.<\/p>\n
\uf0a7\tIn the Nelson Mandela Bay, a total of six projects have been unblocked, with ten remaining blocked projects.<\/p>\n
\uf0a7\t In Sara Baartman Region, we have progressed to unblock a total of five projects, remaining with five blocked projects.
\nThe high number of projects blocked due to Bulk Infrastructure in the 2022\/23 Financial Year totals 27 unblocked projects, requiring funds of approximately R2.423 billion for completion. The 58 unblocked projects have housing units on various stages of construction. <\/p>\n
Collaborative Efforts and Future Outlook<\/p>\n
The department has undertaken several measures to address project blockages, including the establishment of a panel of contractors, appointment of Implementing Agents, and fast-tracking additional funding applications. Continuous engagement with municipalities and implementing agents, alongside collaboration with the National Department, demonstrates a concerted effort to ensure the successful completion of these projects.<\/p>\n
The Eastern Cape MEC-MMC Forum is a platform established by the Honourable MEC for a coordinated political-administrative interface between local and provincial governments to inform and enable a shared understanding on critical matters pertaining to the transformation of the sector and the delivery of integrated Human Settlements in the Eastern Cape.<\/p>\n
The MEC-MMC implementation platform plays a critical role in coordinating the establishment of sustainable integrated human settlement. Municipalities should address delaying issues related to bulk infrastructure as it requires funding from different grants, and Municipal By-Laws must be applied to prevent land invasions.<\/p>\n
Conclusion<\/p>\n
The Eastern Cape Department of Human Settlements remains steadfast in its commitment to addressing housing challenges and ensuring the timely completion of stalled projects. The establishment of a National Steering Committee on Blocked Projects underscores the collaborative approach adopted by the department and sets the stage for successful project implementation over multi-years.<\/p>\n
\u201cWe are acutely aware that the phenomenon of blocked projects represents a serious predicament for people in dire need of subsidized houses. It requires bold and decisive action to turn around the situation for the benefit of the people. We are committed to ensuring that all projects are unblocked with the introduction of new integrated settlements that will contribute in building the Eastern Cape we want.\u201d said MEC Siphokazi Lusithi <\/p>\n
Our goal is to leave no one or place behind, consistently aligning with the UN Habitat emphasis on the importance of human settlements that promote economic growth, social inclusion, and environmental sustainability.<\/p>\n
Issued by the Eastern Cape Department of Human Settlements<\/p>\n
For media inquiries, please contact:<\/p>\n
Siyabonga Mdodi
\nSpokesperson to MEC S. Lusithi
\nMobile: 0723458457 | Email: SiyabongaMd@ecdhs.gov.za<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"1080","footnotes":""},"categories":[26,191],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/posts\/102462"}],"collection":[{"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/comments?post=102462"}],"version-history":[{"count":1,"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/posts\/102462\/revisions"}],"predecessor-version":[{"id":102463,"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/posts\/102462\/revisions\/102463"}],"wp:attachment":[{"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/media?parent=102462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/categories?post=102462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ecdhs.gov.za\/index.php\/wp-json\/wp\/v2\/tags?post=102462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}