Eastern Cape Housing, Local Government and Traditional Affairs on Bucket
Eradication Programme

Bucket Eradication Programme in good progress

30 April 2007

In just less than nine months to the December 2007 national deadline to
eradicate bucket toilet system, the Department of Housing, Local Government and
Traditional Affairs (DHLGTA) have intensified efforts to ensure that the
humiliating bucket system of sanitation is removed. President Thabo Mbeki has
vowed that the bucket toilet systems, currently used by 230 000 households in
the country of which 58 474 households are in the Eastern Cape will be
eradicated by 2007. This commitment comes with other various service delivery
programmes presidential pronouncements that all communities will get clean
water and decent sanitation by 2010 and electricity by 2012. The president also
promised to replace all shacks and informal human settlements with houses by
2014 through an integrated human settlement programme.

The initial backlog for bucket toilets was 48 417 bucket units and this
included all other forms of unacceptable sanitation systems in both formal and
informal settlements. The verification exercise by both the Department of
Housing, Local Government and Traditional Affairs (DHLGTA) and Department of
Water Affairs and Forestry (DWAF) reduced the backlog to 37 192 units in the
formal settlements. By the end March 2007, 28 173 units were eradicated and the
remaining backlog is currently standing at 9019 units, which in terms of
funding it translates into R216 million. This includes connection and bulk
services.

In June/July 2006, a verification exercise was conducted by DWAF and the
backlog was reduced to 37 192 units in the formal settlements. The most
affected municipalities were Cacadu municipality, with Nelson Mandela Bay
Municipality having almost 90% of its 9 866 backlog in the informal
settlements.

To date a total of R284,8 million has been allocated to the Eastern Cape
towards "eradication of the bucket toilet system", with R213,8 million
allocated from Municipal Infrastructure Grants (MIG) programme ring-fenced
allocations and R71 million from DHLGTA. At the end of 2006/07 financial year
approximately 75% (27 894 units) of this backlog was eradicated.

The remaining bucket backlog is 9 095 and the total cost to eradicate this
backlog by Dec 2007 is R214 million. Included in this cost is R113 million for
the associated bulk sewer and water services. For 2007/08 financial year a
total sum of R226,3 million has been secured from different funding sources
such as DHLGTA, normal MIG allocation, MIG Ring-Fenced, and Municipal Equitable
Share. From the 2006/07 MIG reallocation process which prioritises bucket
eradication, the Department of Provincial and Local Government (DPLG) has
provided a sum of R148,9 million (referred as Ring-Fenced) and the remaining
balance of R86 million been provided by other funding sources mentioned here
above.

According to provincial MIG Manager in the Municipal Infrastructure Services
Mr Tshitsho Majavu the above scenario means that there are no financial
pressures in this province not to meet the national target of eradicating the
bucket by December 2007. "Although we are certain that there is enough
financial resources, there are impeding circumstances that are posing as major
challenges for the province to meet the set target of December 2007", Majavu
said. Majavu explained in the recent Select Committee on Land and Environmental
Affairs cabinet hearing that there were four general challenges confronting the
Eastern Cape province in the like of the following:

* the 2006/07 MIG re-allocation process, conducted by DPLG, has been proved
to have shortage of funding in some municipalities and surplus in others
* the absorption capacity, technical and administrative capacity at all spheres
of government
* timing and flow of allocations to municipalities and municipal budgeting
cycles
* pre-implementation timeframes take four to six months and project
implementation six to eight months. These timeframes unavoidably exceed
December 2007 and projected to June 2008, technically raising a question
whether the province will be able to meet the targeted deadline.

To address the above challenges, the department recommends that:
* the split in allocation by DPLG to municipalities need to be rationalised
prior the Gazette. DPLG should involve DHLGTA in the re-allocation
process
* identify level of technical support (before the end of March 2007) required
to implement projects - explore Development Bank of Southern Africa (DBSA),
South African Association of Consulting Engineers (SAACE), DWAF support
initiatives
* relax provisions of municipal finance legislation allowing expenditure before
July 2007 adjustment estimate of municipalities to be finalised
* sector departments and municipalities to expedite every process to ensure
speedy implementation. A bucket eradication programme (BEP) task team
(including sector departments) should be established before end March to
support and monitor the processes.

The allocation by the Department for 2007/08 financial year stands at R26
million with the rest of the funding such as the R190 million is being secured
from MIG and municipalities. Although the total sum of R216 million for the
physical construction of new units and for the known associated bulk has been
secured, other challenges to meeting the national target of December 2007
includes supply chain management processes, project registration and the delay
in environmental impact assessment and DWAF recommendation processes. The table
below shows progress as at the end of February in regard to the eradication of
bucket toilet system as per district municipality.

Alfred Nzo District Municipality
No. of units: 2 095
Replacement cost: R18 855 000.00
2005/06 BEP, departmental allocations: R765 500.00
Expenditure to date: R650 198.29
Eradicated units as per expenditure: 347

Amathole District Municipality
No. of units: 16 462
Replacement cost: R148 158 000.00
2005/ 06 BEP, departmental allocations: R10 069 000.00
Expenditure to date: R2 951 491.51
Eradicated units as per expenditure: 1 179

Cacadu District Municipality
No. of units: 11 841
Replacement cost: R106 569 000.00
2005/ 06 BEP, departmental allocations: R7 171 ,000.00
Expenditure to date: R5 034 190.71
Eradicated units as per expenditure: 1 080

Chris Hani District Municipality
No. of units: 4 066
Replacement cost: R36 594 000.00
2005/06 BEP, departmental allocations: R4 724 000.00
Expenditure to date: R1 382 122.12
Eradicated units as per expenditure: 1 416

OR Tambo Municipality
No. of units: 1 774
Replacement cost: R15 966 000.00
2005/06 BEP, departmental allocations: R621 000.00
Expenditure to date: R2 385 531.88
Eradicated units as per expenditure: 222

Ukhahlamba District Municipality
No. of units:
7 343
Replacement cost: R66 087 000.00
2005/06 BEP, departmental allocations:
R771 500.00
Expenditure to date: R8 357 666.14
Eradicated units as per expenditure: 1 386

Total Eastern Cape
No. of units: 43 581
Replacement cost: R392 229 000.00
2005/06 BEP, departmental allocations: R24 122 000.00
Expenditure to date: R20 761 200.65
Eradicated units as per expenditure: 5 630

Making an announcement during the tabling of the department's policy speech,
MEC Sam Kwelita stated that the department will complete the assessment of
backlog verification and funding requirements by end of March 2007 to address
the water service targets. Kwelita said the backlog verification and funding
requirements for sanitation will be completed by end June 2007 and electricity
will be complete by end October 2007. The department is establishing a
technical task team formed mainly by sector departments, specifically to
short-circuit the sector specific requirement processes. The Department has
further set aside R2 million for the development of a geographical information
system (GIS).

The Department acknowledges that this process of providing proper sanitation
for our people is not a smooth one. It has been a process that is faced by
municipalities with challenges such as lack of capacity and ability to spend.
More work continues in developing the capacity of municipalities and the
department to strengthen the local governments' ability to deliver sustainable
services.

For further information, please contact:
Mbulelo Linda
Spokesperson
Cell: 082 495 3067

Issued by: Department of Housing, Local Government and Traditional Affairs,
Eastern Cape Provincial Government
30 April 2007

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