Human Settlements to meet housing target through catalytic projects

3rd September 2015 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

Human Settlements to meet housing target through catalytic projects

Human Settlements Minister Lindiwe Sisulu
Photo by: Duane Daws

The Department of Human Settlements (DHS) will launch 77 “catalytic projects” across the country, which will allow it to achieve its target of building 1.5-million houses over the next five years.

Speaking on Thursday at a national contractors and developers workshop aimed at building partnerships with the private sector, Human Settlements Minister Lindiwe Sisulu on Thursday highlighted that the department had already identified public and private land that would be put at the disposal of developers. The budget needed to develop these catalytic projects had also been calculated.

While she was not willing to divulge the numbers as yet, Sisulu did note that the budget would be ring-fenced and chanelled through the Housing Development Agency (HDA), which would manage the 77 projects.

Asked whether Sisulu could give a breakdown of the number of projects being distributed in each province, she told Engineering News Online “it will be very difficult, as we are adjudicating them. We need to follow due process of procurement and supply chain regulations”.

Sisulu further highlighted that the DHS would introduce a “re-engineered” direct financing institution, which would be known as the Housing Finance Corporation.

DHS acting director-general of human settlements Mbulelo Tshangana noted that the adjudication process would be concluded this month. “We will have an opportunity to show by province [and] city what and where these projects are going to be. We will also conclude our funding model this month, so that we can influence the next budget in cycle,” he said.

The DHS would use the approach to stadia it took in the lead-up to the FIFA 2010 World Cup with regard to environmental-impact assessments and many other processes of approval necessary for the implementation of such megaprojects.

“I am committing to take this up with the relevant structures and ensure that all processes are understood and adhered to and endorsed through Cabinet,” Sisulu added.

The Minister would also lobby for the creation of a Human Settlements law, following the finalisation of the White Paper on Human Settlements, which would ensure that all involved in human settlements understood their different roles and responsibilities.

The  megaprojects would be a mix of different integrated settlements, which would include healthcare, educational, police services and social developments.

“Through these projects we pledge our land, our funding and our subsidies. For each of these projects we will require that we enter into a memorandum of understanding that has very strict adherence principles, timeframes, work ethics and the necessary penalty clauses,” Sisulu noted.