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MEC Priority Project

The MEC for Housing has identified a number of priority housing projects, which have been established to facilitate accelerated housing delivery within Gauteng Province.

In December 2003, approval was obtained to proceed to call for proposals to construct homes on a number of projects. These proposals were to be evaluated by the Departmental Acquisition Council.

There are six (6) essential services projects and one (1) social housing project, namely:

Essential Services:

  • Olievenhoutbosch
  • Heidelberg Ext 23
  • Palm Ridge
  • Johandeo
  • Mogale City
  • Golden Triangle

Rental Housing:

  • Kersiesdorp

 

Olievenhoutbosch

The MEC for Housing identified and listed a number of priority housing projects for accelerated delivery of which Olievenhoutbos Ext. 21 & 23 (G02060001) and Ext. 24 & 25 (G03030046) and Ext. 26 in Tshwane is one.

On the 27th of January 2004, the Department signed an agreement with GAMONT DEVELOPMENT for the construction of 2,905 top structures in Olievenhoutbos Ext. 21 & 23, Ext. 24 & 25 and Ext. 26. This project has three phases:

  • Phase 1 (500 untis) due for completion by 31 March 2004;
  • Phase 2 (1411) units to be completed by 31 December 2004, subject to approval to proceed being granted by the MEC based on performance on Phase 1; and
  • Phase 3 (994) units to be completed - extension on project in process of being approved.

Unforeseen factors, seriously impacted upon attainment of these dates. The unavailability of water for construction purposes delayed work, whilst heavy rains also affected construction.

Current project status (phase 1) is as follows:

  • Foundations in progress 60
  • Foundations completed 621 already 121 units into phase 2
  • Houses under construction 135
  • Houses completed 225

In summary, the developer had completed 225 of the targeted 500 units as at 31 March 2004. At the current building rate the outstanding Phase 1 structures amounting to 275 will be completed by mid April 2004.

Budgetary allocations were as follows:

  • 2003/4 R8 739 500 (500 units x R17 479)
  • 2004/5 R23 395 791 (1411 units x R16 581)
  • 2005/6 Phase 3 has been approved for extension. No information available as yet.

 

Heidelberg Ext 23 (G94060013)

HAC has provided approval to proceed with Phase 2 of the project, consisting of 2003 units. On the 7th of January 2004, the Department signed an agreement with Grinaker LTA Ltd for the construction of 2503 top structures in Heidelberg Ext. 23, to be completed in two phases:

  • Phase 1 (500 units) due for completion by 31 March 2004;
  • Phase 2 (2003) units to be completed by 31 December 2004, subject to approval to proceed being granted by the MEC based on performance on Phase 1.

Completion of phase 1 of the project overran due to the following constraints:

  • Site handover on 6 February 2004, was delayed by eight days;
  • One hundred and ten (110) excavations for foundations were destroyed by beneficiaries as a result of a misunderstanding, between SANCO and beneficiaries, regarding the size of top structure that could be accommodated by the foundations. The contractor lost four working days as a result of this factor.
  • Rain delays caused fourteen (14) lost work days.

Overall twenty six (26) working days were lost as a result of the delays highlighted.

Current project status (phase 1) is as follows:

  • Building contracts signed 223
  • Foundations in progress 26
  • Foundations completed 474
  • Houses under construction 64
  • Houses completed 227
  • Happy letters signed 60

In summary, the developer had completed 227 of the targeted 500 units as at 31 March 2004. At the current building rate of sixteen (16) top structures per day the outstanding Phase 1 structures amounting to 273 will be completed by 30 April 2004.

Budgetary allocations were as follows:

 

  • 2003/4 R8 644 500 (500 units x R17 289)
  • 2004/5 R34 629 867 (2003 units x R 17 289)

Construction delays will cause a revision of the 2004/5 budget to R39 349 764, i.e. an increase of R4 719 897.

 

Palm Ridge

HAC has provided approval to proceed with the construction of top structures by the Local Authority for the Palm Ridge (G98120399) project on 14 January 2004. The total project consists of 10 000 units.

Ekurhuleni Metropolitan Council selected to proceed as implementing agent for the construction of houses on the Palm Ridge project and in-principle approval has been granted for this approach.

The project will be completed in two phases:

  • Phase 1 (2 500 units) due for completion by 31 March 2004;
  • Phase 2 (7 500) units to be completed by 31 January 2005, subject to approval to proceed being granted by the MEC based on performance on Phase 1.

Budgetary allocations were as follows:

  • 2003/4 R8 644 500 (500 units x R17 289)
  • 2004/5 R34 629 867 (2003 units x R 17 289)

Construction delays will cause a revision of the 2004/5 budget to R39 349 764, i.e. an increase of R4 719 897.

 

Palm Ridge

HAC has provided approval to proceed with the construction of top structures by the Local Authority for the Palm Ridge (G98120399) project on 14 January 2004. The total project consists of 10 000 units.

Ekurhuleni Metropolitan Council selected to proceed as implementing agent for the construction of houses on the Palm Ridge project and in-principle approval has been granted for this approach.

The project will be completed in two phases:

  • Phase 1 (2 500 units) due for completion by 31 March 2004;
  • Phase 2 (7 500) units to be completed by 31 January 2005, subject to approval to proceed being granted by the MEC based on performance on Phase 1.

Budgetary allocations were as follows:

  • 2003/4 R39 104 800 (2 500 units x R15 641.92)
  • 2004/5 R99 300 300 (7 500 units x R13 240.04)

 

Johandeo

Seakay Engineering Services were appointed developers to the project on 26 January 2004. Johandeo, within the Umfuleni Local Municipality jurisdiction, is a two-phase project consisting of:

  • Phase 1 (500 units) due for completion by 31 March 2004;
  • Phase 2 (912 units) to be completed by 31 March 2005.

Progress on Phase 1, behind schedule as at 31 March 2004, was as follows:

  • Building contracts signed 655
  • Foundations in progress 53
  • Foundations completed 783
  • Houses under construction 283
  • Houses completed 359
  • Happy letters signed 359

Budgetary allocations were as follows:

  • 2003/4 R9 039 500 (500 units x R18 079)
  • 2004/5 R16 488 048 (912 units x R18 079)

An addendum to the developer's contract for the construction of an additional 597 units (Phase 2) has been approved. The total budget allocation has been increased, correspondingly, from R25 527 548 to R27 281 211.

 

Mogale City: (G94060076): Sinqobile, (98120350): Munsieville Ext. 4, Kagiso Ext. 12, Rietvallei Proper and Rietvallei Ext. 1

HAC has provided approval to proceed with the construction of top structures by the Local Authority for the Mogale City projects on 5 December 2003. The total project consists of 5 601 units.

Mogale City selected to proceed as implementing agent for the construction of houses on the abovementioned projects and in-principle approval has been granted for this approach.

The project will be completed in two phases:

  • Phase 1 - to be completed 31 March 2004
    Munsieville Ext. 4 - 600 units
    Sinqobile - 598 units
    Kagiso Ext. 12 - 600 units*
    Rietvallei Proper & Ext. 1 - 600**
  • Phase 2 - to be completed 31 December 2004
    Munsieville Ext. 4 - 228 units
    Kagiso Ext. 12 - 1046 units*
    Rietvallei Proper & Ext. 1 - 1929**

* The total project comprises of 2 146 units. 1 646 units will be completed in phases 1 and 2 and 500 units will be made available to the Peoples Housing Process programme.

** The total project comprise of 3 029 units. 2 529 units will be completed in phases 1 and 2 and 500 units will be made available to the People's Housing Process programme.

Budgetary allocations were as follows:

  • 2003/4 R45 171 126 (2 398 units x R18 837)
  • 2004/5 R60 334 911 (3 203 units x R18 837)

 

Golden Triangle

The City of Johannesburg (COJ) has been appointed as implementing agents, in terms of an agreement entered in terms of Chapter 3A of the National Housing Code.

The COJ created a special purpose vehicle, namely Golden Triangle Development Company, for purposes of developing the "Golden Triangle". The Departmental Acquisition Council has appointed Bahlodi & Associates as developers.

The Department and the Developer entered into an agreement on 22 November 2003 in respect of 5 330 Project Linked Subsidies for the installation of services and construction of toilet structures on the Property.

Under Phase 1 - The developer is committed to complete 500 top structures by 31 March 2004 and the balance (4 830) by December 2004.

The total budgetary cost of the project has been determined as R135 797 740, as follows:

  • Top structures R85 695 740
  • Services R50 102 000

 

Kersiesdorp

Kersiesdorp, a multiple phased project, has been allocated a R18 million budget. The project aims to improve the infrastructure and maintenance of the units. As at 31 March 2004, Phase 1 (paving, landscaping, palisade fencing, electrification) has been completed at an approximate cost of R7m.