This fiscal year, the Department of Human Settlements will undertake its affordable housing initiative in mining villages in collaboration with mining firms.
The Minister of Human Settlements, Mmamoloko Kubayi, made the announcement during a Human Settlement and Exhibition Indaba held at the Durban Exhibition Centre.
The two-day Indaba, which began on Sunday under the theme “Transforming Human Settlements Environment through Accelerated Planning, Implementation, and Public-Private Partnership,” aims to mobilize private investors, academia, non-governmental organizations, and traditional leaders to partner with the government to accelerate the delivery of sustainable human settlements across the country.
Kubayi, addressing the delegates, stated that the department is in the process of building a partnership framework between the government and mining businesses that would guide the collaborative design and implementation of partnership projects in chosen communities.
Over R500 million for large-scale infrastructure projects
A total ring-fenced budget of R548 million has been provided to provinces in the 2022 DORA (Division of Revenue Act) Framework to facilitate the implementation of large-scale infrastructure projects in mining towns.
Kubayi stated that a change of policies, grant design, and financing methods is necessary to increase funding sources for State housing programs in the light of competing developmental agendas and funding restrictions.
This endeavor will necessitate an examination of the grant architecture and project flow. An review of the current grant architecture, funding stream expenditures, and allocation will disclose the extent to which existing grants are utilized, underutilized, or allocated optimally. The mapping of allocation and expenditure patterns will yield useful information for identifying specific intervention areas. In addition, the analysis can provide light on whether the relevant grant frameworks require revisions or enhancements, or whether the entire housing and human settlement government grant and funding structure requires a complete revamp,” Kubayi said, adding that the process is already underway.
Enhancing the quality of the existing project pipeline
To address the present housing backlog, the Minister also emphasized the need to dramatically improve the quality of the current project pipeline.
She stated that a pipeline study is required to see how the quality of projects in various phases might be enhanced.
“Projects in planning, shovel-ready projects, and projects in execution can be identified for targeted interventions and improvements through this research. This will also reveal areas in which institutional arrangements might be reinforced to expedite delivery.
“The Department of Human Settlements and its entities are collaborating closely with the Infrastructure Fund and the Development Bank of South Africa to improve the quality of the pipeline, and these efforts are already bearing fruit,” the minister explained.
She said that the Integrated Residential Development Programme (IRDP) faces difficulties with infrastructure limits and securing private sector finance, noting that “only as a project evolves can it overcome these obstacles.”
One of the identified strategies for accelerating delivery under this program is to expedite the implementation of the large-scale infrastructure required by these advancements. Within six to twelve months, the Bulk Infrastructure Funding and Financing intervention can be designed and implemented.
“The reality is that the rapid rate of urbanization will continue to put pressure on the housing supply system in cities and lead to an increase in informal settlements. Our Informal Settlements Upgrading Programme is currently underperforming, and we must consider new ways to implement it,” Kubayi stated.
She noted that in addition to the urgent need for the provision of essential services in a way and at a speed that does not violate human rights, there is an increasing demand for urban land for human settlement. – SAnews.gov.za