NATIONAL ASSEMBLY. CAPE TOWN

7 SEPTEMBER 2005

PROJECT: AUGUST 2005 REPORT

1. INTRODUCTION AND BACKGROUND

The Free State Province identified the provincial pilot project in Mangaung Local Municipality. This project is carried out at an area called Grasslands. It is a joint venture between the Province and the local municipality.

2. HISTORICAL BACKGROUND

This project came about as a consequence of land invasion on a large scale on private property in the small-holdings area of Bloernfontein located in the south eastern extends of the city. Over a period of time the numbers grew to more than 3000 households.

Most of the informal settlers started to put forward requests for services to the local municipality and the problem was amplified in different forums. The local municipality was also alerted to the plight of the land owners via several delegations to the province and the local municipality who were unable to deal with the situation comprehensively. Inter-actions then ensued between the parties and as a consequence, the Department of Land Affairs was approached for availing resources to purchase plots from their respective owners in order to solve the land problem. A tri-partite arrangement was struck between the local municipality, the province and the department of land affairs to deal with the matter.

3. PROGRESS REPORT

The progress report will follow the following format:

• Phases of the project (phase 1,2 & 3)

• Stages of land development process

• Allocation of sites to households

• Infrastructure Roll-Out

• Housing, Social and Economic Amenities

3.1 Phases of the project

The scope of this project will be over 3 financial years starting from 2004/2005 to

Phase I was mainly identified for middle-income households and was allocated to a private developer in an effort to promote private sector involvement at scale and integrate socio-economic groupings within the city. The development of this phase delivered a total of:

• 1241 residential sites

• 3 business sites

• 7 public open spaces

• 2 municipal sites

• 3 worship sites

• 3 school sites

The level of services installed in this area is full level of services that means tarred roads, house connection of water, full water borne sewerage and electricity.

Phase 2 has been earmarked for low-income households, the majority of which have been relocated from the initially invaded private property. The development of this phase delivered a total of:

• 2831 residential sites

• 7 business sites

• 3 public open spaces

• 3 municipal sites

• 5 worship sites

• 3 school sites

• 3 crëches

The level of services installed in this area is intermediate level of services that means gravel roads, erf connection of water, ventilated improved pit latrines form of sanitation and pre-paid electricity. At present the level of services is temporary and what we have on the ground is:

• Scraped dirt roads

• Temporary pail system

• Non-defined storm water system

• 1400 electricity connections (the second phase for the 1431 sites is unfolding)

• Water provided at RDP standards

The Township Register has however been delayed to date because the land that belongs to the Free State Development Corporation was included in the layout plan. The Free State Development Corporation has agreed to donate the land to the Mangaung Local Municipality. The problem is that the land has to be subdivided in the submission of Phase 2 to the Office of the Surveyor General and the Deeds Office.

Phase 3 is an extension of phase 2 and will produce approximately 3200 residential sites. The process of land acquisition is at 85% of all earmarked properties, parallel to this action, planning and surveying of the land is taking place for finalization in the 2005/2006 financial year.

Phase 3 of Grassland is currently being formalised and the application for Township Establishment has already been submitted to the MEC awaiting his approval. There is however problem with Phase 3 in that the illegal squatters realising that the area is being formalised came to occupy the area, thus disturbing and delaying the formalisation process.

The municipality successfully applied for Eviction Order in the court of law through

Prevention of Illegal Occupation and Unlawful Eviction Act (PIE). The illegal occupants were supposed to have vacated the area by the IS' June 2005 to allow the completion of formalising the area.

In last month reported we indicated that some of the plot owners have agreed to sell their properties and the Municipality is expropriating other properties whose owners refused to sell. However, this is not the case anymore as owners of the holdings are now refusing to sell their land to the Mangaung Local Municipality for various reasons and the Executive Mayor has decided not to follow the route of expropriation. The municipality is currently at all efforts to resolve the situation.

3.2 Phases of development

The following land development processes have been concluded:

• Land acquisition

• Planning & surveying

• Opening of township register

• Installation of infrastructural services

• Disposal of sites

Note well: As highlighted above, phase 3 is still under land acquisition stage.

3.1 Allocation of sites

During the latter part of 2003 the local municipality allocated the residential sites to households that were located in the area as they became available after the survey process was concluded, in total, 2831 sites were allocated and captured in the data base of the municipality. This could be regarded as part of a Living Waiting List of prospective beneficiaries.

3.2 Infrastructure roll out

Refer to the information supplied under level of services for phase 2 above.

3.3 Housing, Social and Economic Amenities

Under phase 2 there is a requirement of housing subsidies for 2831 relocated

households.

There are 14 sites allocated for the creation of social amenities that are readily available. Feasibility studies will be undertaken to identify and prioritise the needs and provide costing thereof.

The social amenities sites that are available are creches, municipal sites, worship and parks.

There are 7 business sites available in the area that will be put to the private sector for acquisition and development. Requests for development proposals/ bids will be advertised to solicit interested parties.

4. CHALLENGES

The following are challenges facing the pilot project:

• Funding the feasibility studies

• Funding for the land acquisition in phase 3

• Funding the installation of infrastructure to the intermediate level of service

• Funding the construction of houses

• Funding for the creation of social and economic amenities

• Land invasion (transition land for temporary relocation)

• Relocation costs

• Conflict management resources

• Community development resources (to promote organic community

resilience)

• Unwilling landowners to sell their land

Please note that the Free State Housing Fund is already committed for the financial year 2005/2006 towards housing subsidy units that no funding could be made available for the other elements of the Comprehensive Housing Plan.