N Mokonyane briefing following State of the Province Address

MEC for Housing Nomvula Mokonyane following State of the
Province Address

20 February 2007

Our main focus is to continue making sure that we have a sustainable human
settlement process able to achieve housing with secure tenure, within a safe
and healthy environment, and the development of integrated communities.

For the next financial year 2007/08 we plan to deliver 58 552 houses
throughout the province. We expect 297 760 people to benefit from this
initiative. In line with the Breaking New Ground (BNG) national housing
strategy, we have identified flagship projects per region for implementation.
All our housing projects will cater for the different needs of people, based on
their choice, needs and affordability. As we strive to fast-track delivery, we
will vigorously channel our energies on the effective implementation of the
five key priority areas:

* Mixed-housing Development
* Eradication of Informal Settlements
* Alternative Tenure
* Urban Renewal Programme
* 20 (PTP) Prioritised Townships programme.

1. Mixed-housing development

Through this programme, we aim to use innovative approaches that can deliver
large scale sustainable housing in partnership with private sector
stakeholders. In terms of this initiative the promotion of social and racial
integration as well as the location of new human settlements in close proximity
of the economic nodes of our towns and cities is of paramount importance. The
following projects forms part of our delivery strategy.

Olievenhoutbosch Ext 36 - We planned 4 452 units. For 2007/8 we will deliver
2 716 houses with different housing typologies. Nelmapius Ext 6.7.8 consist of
3 597 units and 2 000 units will be delivered in the 2007/8 financial year.
Thorntree View consist of 11 731 units. Currently 1 983 stands have been
serviced and construction will commence in the next financial year.
Middelvlei/Droogeheuwel will deliver 7 143 units. Installation of bulk services
will start in September 2007.

Kagiso/Azaadville project will yield 6 800 units. Construction and
Installation of services will start in July 2007. Westonaria South will deliver
8 500 units which will be used for relocating people from Bekkersdal due to
dolomite conditions.

Cosmo City - We completed 2 579 low cost houses. Already 2 839 Bonded Houses
have been transferred to owners. Three schools have been constructed and handed
over to the Department of Education. Doornkop will deliver 23 000 units and
installation of bulk services will start in October 2007.

Let me also put it on record that the Department has developed the Housing
Inclusionary policy to accelerate the momentum in the creation of Sustainable
Human Settlements. The policy will enable us to undertake other innovative
spatial development initiatives. Furthermore, the policy will ensure that
affordable housing becomes an integral part of commercially-driven
developments. We hope to implement this policy during the second quarter of the
next financial year, once approved by the Executive Council.

2. Formalisation and eradication of informal settlements

The Formalisation and Eradication of Informal Settlements is one of the key
priority areas. 47 600 serviced sites will be provided by the department. So
far, we have identified a total of 145 informal settlements that can be
upgraded where they are currently situated, 209 will be relocated to the
already identified areas. It is our expressed goal to complete the Eradication
of Informal Settlements by 2014. The usage of alternative building technology
is key in this regard. Already we have two pilot projects that we are
implementing in areas such as Nomzamo, Kaalfontein and a third one is being
finalised.

3. Alternative tenure

We are aggressively accelerating housing delivery by promoting Alternative
Tenure which provides alternative accommodation options for those not seeking
permanent housing. We also plan to regulate relationships between landlords and
tenants. To this end, we are reviewing the authority of the Housing Tribunal to
ensure that its decisions are effectively enforced.

Through this initiative we will deliver 3 000 social housing units in the
2007/8 financial year, targeting the inner-cities throughout the province's
municipalities so that we have diversified rental housing units catering for
different income groups.

Hostel Conversion - This plan will ensure that we integrate hostels into the
neighbouring communities thereby moving away from the old apartheid dormitory
accommodation. In 2007/8 the focus will be on completing Saulsville and
Mamelodi in Tshwane. In Johannesburg the construction of Diepkloof,
Meadowlands, Orlando West and George Goch will take place. In West Rand and
Sedibeng construction will be stepped up in Kagiso, Mohlakeng, Boipatong and
Sebokeng. Helen Joseph in Johannesburg and M2 Nobuhle in Alexandra will also
receive our utmost attention. Together with municipalities we are working out a
plan to address alternative property management and regulation of landlord and
tenant relationship for all of the above facilities.

Backyard Upgrade - A pilot project of 750 housing units is underway in
Orlando East and will deliver 500 units by end of March 2007. The remainder of
250 units will be delivered in the first quarter of the next financial year. I
am pleased to announce that the department will be extending the programme to
Boipatong Township with construction of 750 units this year, following on the
lessons learnt in Orlando East. Planning for other areas will commence in the
beginning of the next financial year as part of the 20 Prioritised Townships
Programme.

4. Urban renewal programme

Our Urban Renewal Programmes in Alexandra, Evaton, and Bekkersdal are on
track. Drastic measures are being taken to improve service delivery. The best
practices gained in Alexandra are being applied in other urban renewal
projects.

The Premier has announced our strategic decision to add Winterveldt to our
list of Urban Renewal projects. In partnership with the City of Tshwane, we are
currently conducting a pre-feasibility study to determine areas of
interventions and develop a comprehensive plan for the rejuvenation of
Winterveldt.

Alex Urban Renewal - We are proud to announce that the entire Alexandra has
been turned into a construction site. Our delivery has been accelerated and
currently there are 38 active projects including the Pan-Africa Taxi Retail
development, Marlboro Reconstruction and Development Programme (RDP) High
Density Housing and M2 Hostel Redevelopment.

Projects that will be carried in the next financial year include the
following: Presidents Place Social Housing, HIV/AIDS Hospice, Marlboro rental
units, Nokuthula Full Resource Centre and upgrade of Old Age Homes.

Evaton Urban Renewal Project - In our effort to speed up delivery of quality
service to our people, the department has taken a decision to terminate the
services of the lead company for failure to provide value for money and
leadership in the implementation of the project. We want to replicate best
practices from other projects such as Alex in this area.

The department has therefore designed a new approach that will focus on high
impact development by prioritising infrastructure upgrade, roads upgrade and
engineering services. We will also pay attention to housing and mobilise
private investors to economic developments with high impact and visibility. The
department will convert 2 000 pit-latrines into water-borne toilets and
eradicate 890 bucket toilets.

Bekkersdal Urban Renewal Project - The Bekkersdal Urban Renewal Project is
anchored on the relocation of communities from dolomatic areas to Droogehuiwel,
Middelvlei and Westonaria South. The following projects will be undertaken this
year: Khomo Hlaba Street and Godla Street upgrading; the Gateway Industrial
Precinct and West Clinic Upgrade. Our Local Economic Development includes the
brick-making plant as well as the Farmer Support programme.

5. 20 Prioritised Townships

The aim of the programme is to rehabilitate the 20 old townships in our
province. The programme will focus on the rehabilitation of the infrastructure,
environment and socio-economic developments. The short term focus will be on
dealing with addressing infrastructure in schools, health and community
facilities in all the identified townships.

Cross-border issues

Due to the recent demarcation process to re-determine the borders, as of
April this year, we will be taking over the Winterveldt housing project as well
as two projects from the Mpumalanga province. All these new projects also
require essential services and will be developed in line with our priorities
for 2007/2008.

Cross-cutting issues

We have adopted a sector-based approach to assist in the empowerment of
disadvantaged groups. The earmarked sectors are: women, youth, people with
disabilities and special needs groups such as the aged.

We have adopted 10 women companies as part of our women's empowerment
programme. We are now focused on promoting the participation of the youth in
the construction industry through the establishment of co-operatives, youth
service core and other related youth initiatives. Regarding people with
disabilities, the department is developing a database to give preference to
this sector.

On corruption, the department will reinforce its current campaign to stamp
out corruption both internally and externally. These include taking
disciplinary actions against officials and laying criminal charges against
developers engaged in fraud. Through the Servcon Housing Solution, we are
undertaking an occupancy audit to determine whether people occupying houses are
the rightful beneficiaries as recorded on our database. The audit will help us
take appropriate action to ratify the situation.

To improve the housing delivery process from project planning to project
implementation, we are shortening the turnaround time without compromising on
compliance and quality. This exercise will remove unnecessary delays being
experienced by our beneficiaries and service providers.

The Premier has laid the base for what needs to be done in our province and
we are optimistic that we will deliver on the commitments and mandate bestowed
to us by the people of Gauteng.

I thank you.

For more information contact
Victor Moreriane
Cell: 082 561 3768
Mongezi Mnyani
Cell: 082 602 5358

Issued by: Department of Housing, Gauteng Provincial Government
20 February 2007

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