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UMHLATHUZE MUNICIPALITY

MUNICIPAL COMMUNITY HOUSING PLAN

Prepared by the

FIRST HOUSING PLAN CONSORTIUM

Contact: Robert Mann

[email protected]

(031) 2020160 First Housing Plan Consortium

CONTENTS

Page 1. EXECUTIVE SUMMARY 1 2. METHODOLOGY 2 3. BACKGROUND 4

3.1 IDP Vision, Principles and Mission 4 3.2 IDP: Housing and Infrastructure 7 3.3 A Comprehensive Plan for the Development of

Sustainable Human Settlements, ‘BNG’ strategy 9 3.4 Housing Typologies 12 3.5 Economic Activity 14 3.6 Employment Trends 15 3.7 Population Growth Forecasts 16 3.8 Housing Needs Assessment 16

4. LAND IDENTIFICATION 21 5. INTEGRATION WITH OTHER SECTIONS 25

5.1 Background 25 5.2 District infrastructure planning 26 5.3 Roads 31 5.4 Electricity 31

6. AVAILABILITY OF INFRASTRUCTURE TO RURAL NODES 32 7. HOUSING DELIVERY PLAN 34

7.1 Slums Clearance and Rural development 34 7.2 Low income Greenfield development (Current Projects) 35 7.3 Low income Greenfield development (Planned Projects) 35 7.4 Hostel Upgrades 36 7.5 Middle Income or credit linked Housing 37 7.6 High Income Housing 38 7.7 Relocations 38 7.8 Housing response to HIV/Aids 38 7.9 Summary of Housing priorities 39

8. PERFORMANCE MEASUREMENT 40

8.1 Preliminary assessment 40 8.2 Pre-feasibility 40 8.3 Feasibility 41

9. INSTITUTIONAL ARRANGEMENT 42 10. CASH FLOWS 43 11. PROGRAM 44

TABLES Table 1: Priority List for Housing Projects 2

Table 2: IDP Nodes 9

Table 3: Housing Typologies 13

Table 4: Unemployment statistics 14

Table 5: Calculation of Housing Demand 20

Table 6: Potential land for development 22

Table 7: Total backlogs per local municipality for sanitation supply as at July 2005 28

Table 8: Total backlogs per local municipality for water supply as at July 2005 28

Table 9: Households by water supply (census 2001) 29

Table 10: Households by sanitation supply (census 2001) 30

Table 11: Availability of infrastructure to rural nodes 32

Table 12: Middle income possible housing projects 37

Table 13: Housing priority list 39

GRAPHS Graph 1: Housing Typologies in Umhlathuze 12

Graph 2:% of informal dwellings in Umhlathuze Municipality 18

PLANS Plan 1: Spatial Development Framework 6

APPENDIX 1: CURRENT HOUSING PROJECTS DETAILS 2: PROJECT DEVELOPMENT AREAS PLAN

1 EXECTUVE SUMMARY

The Umhlathuze municipal area is characterised by a shortage of suitably well located land for housing

development. However the municipality has identified a number of potential land parcels that have

potential for housing development.

The removal of slums and informal settlements is a priority of the Department of Housing, and the census

of 2001 identified 5 812 informal dwellings, with 53,22% located in Khoza and 19,48% in Dube, these

areas are therefore the areas of greatest need in relation to slums clearance projects. The Slums backlog

has therefore been estimated at 5812.

There is a total of 10034 traditional dwellings, within the Municipal boundary, with Dube (27%),

Zungu/Madlebe (21%) and Khoza (14%) identified as the areas of greatest need in terms of rural

housing. However only 66% of these dwellings are to be added to the Housing need backlog calculation

as these are the homesteads below the minimum basic level of services provision (Rural Housing backlog estimation = 6622).

A total of 6 119 “living quarters” were identified (however only 30% of this figure has been added to the

social housing backlog figure, as many units are student accommodations) (Total estimated Social Housing backlog = 1836), indicating an urgent need to prioritise the upgrade of hostels, two areas

namely Esikaweni and Nseleni have been selected due to the need identified and pilots initiated in these

areas. The total estimated housing demand for the Umhlathuze Municipality can be calculated at 14 270.

Based on the housing needs assessment, the DoH’s priority programs and the feasibility for development

the following project priority list has been compiled.

HOUSING PRIORITY LIST Sites Est. Value (R/Mill)

Slums clearance – Rural Housing Projects 3700

1. Esikhaweni / Dube Wards 12,13,14,15,16,20 & 22 1500 63

2. Nseleni / Khoza Wards 5,7 & 8 1200 50.4

Rural housing 2000

3. Madlebe Ward 24,25,27, 28 & 29 1000 42

4. Mkhwanazi Ward 10, 11, 18 & 30 1000 42

PLS & Greenfield housing projects 5700

1. Umhlathuze Village P2-5 Ward 9 2000 84

2. Aquadene Ward 2 1000 42

3. Corridor (investigate) Ward 14 1500 63

4. Iniwe (investigate) Ward 29 1200 50.4

Hostel Upgrades 441

Esikhaweni Ward 20 & 21 324 12.6

Nseleni Ward 8 117 4.6

HIV Aids 30

HIV project (location to be determined) 30 1.3

Total 11841 455.3 mill

Table 1: Priority list for housing projects

Programs for implementation and cash flows have been calculated for all of these projects in sections 10

and 11.

2 METHODOLOGY The Umhlathuze municipal area is characterised by a shortage of suitably well located land for housing

development. This has meant that historically the Municipality has not had many housing projects

implemented through the Department of Housing (DoH) Subsidy Scheme. However in realizing that the

identification of well located land for development is critical, the Municipality has commissioned a number

of studies in order to assist in this process. Primarily two documents focus specifically on land

assessment and the processes for securing this land namely:

Umhalthuze Housing Needs Assessment Helgaard Botha Ass Aug 2005

Umhlathuze five year development plan Metaplan Oct 2005

As well as a number of other complimentary documents that will assist in the housing delivery program

namely;

Umhlathuze Environmental Services Management Plan Futureworks Nov 2005

Umhlathuze Engineering Geological Study Golder and Ass April 2005

Furthermore a hydrological study and a number of socio economic surveys have been completed which

will provide invaluable support information for direct housing project delivery in the future. The Spatial

Development Framework is also currently being updated and amended.

The housing sector plan has therefore been based predominantly on the IDP and the information detailed

above. While at the same time an assessment of the current housing projects, the pilot hostel program

and the municipality’s vision for housing in the area has been incorporated. The plan has been developed

in consultation with all the relevant municipal departments and through a close working relationship with

the Municipal Housing official (Mr. Siphiwe Thusi) who has shared in our learning experience and has

been invaluable through the support he has provided.

Details of the ongoing development of the plan have been communicated through the Housing Forum

meetings to service providers, housing officials, relevant departments and councilors and this plan will

now been advertised in the local media. It is envisioned that once the housing sector plan process has

been completed Mr. Thusi and his development team will be fully competent in managing and updating

this plan.

The department of Housings guidelines for the development of the Housing sector plan has been strictly

followed ensuring the inclusion of critical sections such as:

Background, IDP linkages, Land identification, Current housing projects, Planned projects

And other relevant sections such as;

Integration with other sections, Spatial Development Plan, Performance measurement, Housing institutional framework As well as concluding with a housing delivery plan which includes a priority list of housing projects, a

housing delivery program and housing program cash flows.

3 BACKGROUND

3.1 IDP Vision, Principles And Mission

The First Housing Plan consortium was appointed by the Umhlatuze Municipality to compile a Municipal

Housing Sector Plan. This plan is to be developed based on the guidelines provided by the Department

of Housing KZN. The Integrated Development Plan developed in 2002 outlines the following basic

principles, aims and objectives.

3.1.1 The Vision

The vision for the City of uMhlathuze is as follows:

“The City of uMhlathuze metropolitan area, as a port city, will offer improved quality of life for all its

citizens through sustainable development. It will be a renowned center for:

Trade;

Tourism and nature-lovers;

Coastal recreation;

Commerce;

Industry;

Forestry; and

Agriculture.

3.1.2 The principles

The vision is underpinned by the following principles:

Sustainable growth and development.

Quality, affordable services.

Financial health and fiscal discipline.

Transformation and integration.

Accountable and transparent local government.

Recognition - diversity.

Respect - fundamental rights.

Equity.

Focus on supply side economics and asset management.

Safe and secure living environment.

Importance of a Metropolitan Open Space System and natural assets.

3.1.3 The Mission

The uMhlathuze Municipality has set the following mission for itself:

“We aspire to develop uMhlathuze as the industrial, commercial and administrative center within the

natural beauty of the region, providing a range of efficient municipal services thereby ensuring economic

development, dynamic investment growth and the improvement of the quality of life for all.”

Plan 1: Current Spatial Development Framework for Umhlathuze

3.2 IDP: Housing and Infrastructure Housing and infrastructure provision is highlighted in the IDP based on a number of challenges and the

potential implementation strategies in order to meet these challenges. The main housing and

infrastructure challenges are detailed below.

3.2.1 IDP Challenge 1:

Community upliftment and empowerment of rural areas Settlement patterns and particularly the physical segregation of areas should be improved to make the

area more economically viable.

Transportation in the region should be improved.

More appropriate standards should be used for the rural areas, e.g. in terms of walking distances

to facilities.

Stimulating development in all settlements in the area

Water provision to farms and rural areas

Reasons for ongoing urbanisation should be explored.

3.2.2 IDP Challenge 2: Economic development and attraction of investment

Spin-offs from service delivery and development should be promoted.

Economic spin-offs should also create social benefits.

The overall IDP Challenge and Key Issues can be stated as follows:

“From the Situational Analysis and needs identification, it is clear that the communities residing in the

rural areas have a lower income and are more severely affected by aspects such as poverty and

deprivation, than the urban community. Community upliftment and empowerment programmes should

therefore be focused on the rural areas. Economic development, attraction of investment and

maintenance of development standards in the urban areas are however essential to ensure the overall

growth and development of the City of uMhlathuze.”

3.2.3 Strategic Development Rationale

The physical segregation and distortion of the area is evident, with Ngwelezane, Esikhawini, Vulindlela

and Nseleni forming separate physical entities within the urban area. These areas are however

completely reliant on Empangeni and Richards Bay for employment, goods and services. Although

Empangeni and Ngwelezane are growing physically closer together, it is not currently possible to

integrate Vulindlela, Esikhawini and Nseleni physically with any of the other urban areas. Empangeni and

Richards Bay have a strong peripheral dependency, with large tribal areas which have a high population

density, situated outside the formal urban areas. In terms of population density, concentration and

service demands, large sections of these tribal areas can be classified as emerging urban settlements.

The Strategic Development Rationale for the City of uMhlathuze is therefore to develop the area with a

hierarchy of nodes. Nodes will also be established in the rural areas to provide access to social and

economic opportunities. Several of the densely populated rural areas can be classified as emerging

urban settlements, where the future urban form should be shaped from an early stage to ensure

efficiency and enable formalisation and upgrading.

The Strategic Development Rationale puts forward an incremental development approach, where the

upgrading of existing services and provision of new services are focused in specific areas according to

settlement and nodal classification. The formalization emerging urban settlements and identification of

nodes in rural areas would provide the directives to shape the future urban form and would determine the

priority areas for infrastructure service provision. This would ensure that areas with high population

concentrations situated outside the primary nodes in the area, particularly in rural areas, are first in line to

benefit from upgrading and new service provision. This approach would also ensure that existing service

levels are maintained and pressure on services is alleviated. This requires the cooperation of all levels of

government and service providers, to ensure coordinated, focused and integrated efforts towards

community upliftment and development.

The following key development objectives are suggested in the IDP:

Spatial Development

Poverty Alleviation and Gender Equity

Local Economic Development

Environmental Management

Institutional Development

The IDP further suggest the following main development nodes

DISTRICT NODES

PRIMARY NODES

TERTIARY NODES

Empangeni Ngwelezane Madlebe Tribal Authority

Richards Bay Esikhawini Dube Tribal Authority

Vulindlela Khoza Tribal Authority

Nseleni Mkhwanazi Tribal Authority

Meerensee

Felixton

Ngwelezane

Table 2: IDP Nodes

3.3 A Comprehensive Plan for the Development of Sustainable Human Settlements, ‘BNG’ strategy

The “Breaking New Ground” document was approved by Cabinet and presented to MINMEC on 2

September 2004. This document suggests a number of progressive changes to the delivery of housing in

South Africa. Since the documents approval in September 2004 a number of these suggested changes

have been incorporated, the following is a summary of the major relevant shifts in housing delivery

strategy currently being incorporated based on this document.

The new human settlements plan reinforces the vision of the Department of Housing, to promote the

achievement of a non-racial, integrated society through the development of sustainable human

settlements and quality housing. Within this broader vision, the Department is committed to meeting the

following specific objectives:

Accelerating the delivery of housing as a key strategy for poverty alleviation

Utilising provision of housing as a major job creation strategy

Ensuring property can be accessed by all as an asset for wealth creation and empowerment

Leveraging growth in the economy

Combating crime, promoting social cohesion and improving quality of life for the poor

Supporting the functioning of the entire single residential property market to reduce duality within

the sector by breaking the barriers between the first economy residential property boom and the

second economy slump.

Major relevant Changes suggested through this document include:

The new human settlements plan moves towards more holistic, integrated, flexible and responsive

mechanisms which address the multi-dimensional needs of sustainable human settlements.

As part of an approach which envisages that municipalities will play a significantly increased role

in the housing process, municipalities must take the lead role in negotiating the location of

housing supply to facilitate spatial restructuring. This will also encourage integration between

housing delivery, spatial planning, infrastructure provision, Municipal IDP and budgetary

coherence.

Enhancing Spatial Planning, through greater coordination and alignment of various planning

instruments and economic policies, lies at the heart of sustainable human settlements. This

requires more than mere coordination between departments but there needs to be a single

overarching planning authority and/or instrument to provide macro-level guidance to support the

development of sustainable human settlements.

The housing chapter of Municipal Integrated Development Plans must be considerably enhanced

to include municipal housing needs assessment, the identification, surveying and prioritisation of

informal settlements, the identification of well located land for housing, the identification of areas

for densification, the linkages between housing and urban renewal and the integration of housing,

planning and transportation frameworks, and will link these to a multi year implementation plan.

(These suggestions have been incorporated through the Housing Sector Plan and its suggested

format)

It is important that the programme respond to the capacity needs of communities, ensuring that

they are empowered to constructively engage with municipalities in identifying and fulfilling their

housing needs.

Municipal capacity building is highlighted as critical to the success of the new housing plan. A

comprehensive programme for capacity building in the housing sector is suggested.

Some changes were suggested to subsidy bands including the collapsing of the 3 subsidy bands

below R3500 and the introduction of finance products/instruments to medium income households

(earning R3, 500 to R 7,000 p.m.).

Progressive Informal Settlement Eradication is a primary aim of the new policy. Informal

settlements must urgently be integrated into the broader urban fabric to overcome spatial, social

and economic exclusion. (This aspect had already been recognized by the KwaZulu-Natal

Minister of Housing, Mr. Dumisani Makhaye in 2001/2 through the Slums Clearance program,

prioritizing the insitu upgrading of informal settlement as the KZN DoH’s primary focus.)

Promoting densification and integration of previously excluded groups into the city and the

benefits it offers and to ensure the development of more integrated, functional and

environmentally sustainable human settlements, towns and cities. One aspect of this process

can be achieved through supporting urban renewal and inner city regeneration

An overall strategy to facilitate the release of well-located public land to municipalities is being

developed, furthermore funding for the acquisition of private land for housing purposes will no

longer form part of the housing subsidy. (The responsibility for the acquisition of land for housing

development now rests with the Department of Land Affairs)

Developing a rural housing programme which is to deal with a comprehensive range of rural

housing related issues, such as tenure, livelihood strategies and broader socio-cultural issues.

(This policy has now been compressively developed and the initial rural housing projects are now

being implemented in KZN)

The document also suggested greater use of the ‘social housing instrument’ to facilitate the

production of effectively managed institutional housing in the areas where demand for institutional

or managed housing, of all types, exists.

In summary the discussion document places greater emphasis on the process of housing delivery

(emphasizing planning and engagement), the quality of the housing product (both in terms of location but

also in terms of final housing form) and the long-term sustainability of the housing environment (leading

to a focus on institutional capacity).

Additionally it should be noted that the Expanded Public Works Programme (EPWP) is aimed at

alleviating and reducing unemployment by the provision of work opportunities. The principles/guidelines

of the above plan/programme should be taken into account when housing projects are undertaken.

3.4 Housing Typologies1 The 2001 census shows that the City of uMhlathuze, which encompasses an area of 796 sq. km

(compared to Durban 2 297 sq. km) had a population of 289 186, which was housed in a total of 67 106

dwellings.

Of the total of 67 106 dwellings, by far the largest number of dwelling, 37 799 dwellings were houses or

brick structures on a separate stand or yard, whilst 10 034 dwellings were traditional

dwellings/huts/structures made of traditional materials, and 7 727 were flats in blocks of flats.

There were 4 321 informal dwellings/shacks not in back yards, but in informal /squatter settlements,

whilst 2 568 dwellings were in town house/cluster house complexes, and 1 873 were houses/flats/rooms

in a back yards. A further 1 263 dwellings were rooms/flatlets not in backyards but on shared properties

and 1 225 informal dwellings/shacks in back yards. Caravans and tents accounted for 266 dwellings and

boats 30.

Housing Types

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Graph 1: Housing Typologies in Umhlathuze

1The following sections have been drawn from the uMhlathuze Housing Needs Assessment, Helgard Botha Ass, Sep 2005.

DISTRIBUTION/GEOGRAPHY BY DWELLING

No % No % No. % No. % No. % No. %1 Dube 8286 17% 2695 27% 855 20% 488 16% 345 27% 42 14% 127112 Richards Bay 9945 21% 628 6% 63 1% 366 12% 87 7% 78 26% 11167

3 Zungu/Madlebe 6697 14% 2110 21% 259 6% 811 26% 136 11% 33 11% 10046

4 Esikhawini 7051 15% 78 1% 30 1% 133 4% 31 2% 15 5% 73385 Khoza 2342 5% 1401 14% 2660 62% 507 16% 138 11% 77 26% 71256 Nkwanazi 3149 7% 1259 13% 361 8% 369 12% 217 17% 15 5% 53707 Mkhwanazi 1971 4% 1457 15% 39 1% 90 3% 9 1% 0 0% 35668 Empangeni 3290 7% 36 0% 6 0% 152 5% 45 4% 9 3% 35389 uMhlathuze 1963 4% 47 0% 15 0% 72 2% 224 18% 6 2% 2327

10 Nseleni 2182 5% 18 0% 6 0% 77 2% 0 0% 6 2% 228911 Benjani 554 1% 275 3% 27 1% 15 0% 0 0% 0 0% 87112 Vulindlela 595 1% 30 0% 0 0% 15 0% 31 2% 15 5% 68613 Umlalazi Nature

Reserve51 0% 0 0% 0 0% 3 0% 0 0% 0 0% 54

14 Kwambonambi F. R.

18 0% 0 0% 0 0% 0 0% 0 0% 0 0% 18

Totals 48094 100.00% 10034 100.00% 4321 100.00% 3098 100.00% 1263 100.00% 296 100.00% 67106

71.67% 14.95% 6.44% 4.62% 1.88% 0.44%

TENT/CARAVAN/BOA TOTALBACKYARD SHARED PROPERTYTRADITIONAL INFORMALNO. GEOGRAPHICAL AREA

FORMAL

Table 3: Housing Typologies

Dube has the largest number of traditional dwellings with 2 695 (27%), followed by Zungu/Madlebe with 2

110 (21%), Mkhwanazi 1 457 (15%), Khoza 1401 (14%) and Nkwanazi 1259 (13%). Khoza with 2 660

(62%) has the largest number of informal dwellings/shacks in informal settlements, followed by Dube with

855 (20%) and Nkwanazi 361 (8%).

3.5 Economic Activity

In the universe of all persons in uMhlathuze in 2001, aged 15-65 i.e. a total of 186 319 persons, 67 390

(36.17%) were employed and 46 065 (24.72%) unemployed. The balance of 72 864/ (39.11%) were

defined as not economically active. Therefore of the economically active population of 113 455,

unemployment as per the official definition, stood at 40.69%. Unemployment amongst Africans was the

highest at 47.41%. The foregoing is summarised in Table 4 below:

African % Coloured % Indian % White % Total %

Employed 49 434 52,6 941 79,0 4 014 91,6 13 001 93,6 67 390 59,4

Unemployed 44 562 47,4 250 21,0 370 8,4 883 6,4 46 065 40,6

Sub-total 93 996 100,0 1 191 100,0 4 384 100,0 13 884 100,0 113 455 100,0

Not economically active 1

63 913 40,5 515 30,2 2 469 36,0 5 967 30,1 72 864 39,1

Total 157 909 1 706 6 863 19 851 186 319

Table 4: Unemployment statistics

Note 1: % expressed as % of total of population group e.g. 63 913 as a % of 157 909.

Of the approximately 67 400 persons employed in uMhlathuze in 2001, a total of 31 541 (46.8%) earned

R1 600 per month or less, 45 055 (66.85%) earned R3 200 per month or less and only 3 584 (5.32%)

earned R12 801 per month or more. Whereas 46,8% of total employed earned R1 600 per month or

less, of the African income earners 58.95% earned R1 600 per month or less, the figure for Coloured

income earners was 23.13%, Indians 16.90% and Whites 11.56%.

With the housing subsidy eligibility set between R0-R1500 (highest subsidy = R36 528) and R1500- R3

500 (Full subsidy with beneficiary contribution R2479) per month as well as, from the 1st of April 2006 a

credit linked option for income earners between R3500-R7000 , it is clear that the majority of households

in uMhlathuze will qualify for a housing subsidy, with a very high percentage being eligible for the

maximum available subsidy.

3.6 Employment Trends

Since the development of the port in 1976, the main driver of economic growth has been the port itself,

and the major heavy industry that it has attracted. The port handles about 87million tonnes a year,

representing 51% of South Africans seaborne trade, and transport storage and communications

accounted for employment of 4 365 (6.48%) in 2001, and manufacturing employment of 10 089

(14.97%). Importantly, whilst manufacturing ranked second in terms of employment, after community,

social and personal services at 13789 (20.46%), transport/storage and communications only ranked

seventh.

Employment in wholesale and retail trade at 9 146 (13,57%) could well surpass manufacturing in the

short-term, and financial, insurance, real estate and business services with 5 300 employees (7,86%),

like wholesale and retail trade, will benefit from the planned new projects and expansion of existing

plants/facilities.

Recognising these trends and in anticipation of future growth in the non-manufacturing sectors of the

economy, provision has been made for the C.B.D. of Richards Bay to expand both to the north and

south. The proposed northern expansion is 90510 hectares, and the southern expansions 192070

hectares (total 28,2580 hectares). A realistically achievable F.A.R./P.A.R. would probably not exceed

say 1,0 in the medium term, yielding 282 580 m² of floor space. At say 1 worker/employee per 25 m² -

30 m², across a wide spectrum of uses, including shops, offices and service industry, this expansion can

provide employment for about 9 500 – 11500 people – a very significant number.

However not all of the employees will be “new” employees, and that there may be a movement of some

firms from the industrial areas for example, easy access to the CBD and the provision of affordable

housing within and close to the C.B.D. will be key challenges.

3.7 Population Growth Forecasts Important to the future demand for housing is the projected growth of population, and over the next

decade this will be greatly influenced by the aids pandemic, with very high H.I.V. infection rates,

especially in KwaZulu Natal, and the deaths resulting from opportunistic diseases such as T.B., which is

prevalent amongst those with weakened immune systems.

On a national basis, the population is expected to increase but at declining growth rates, from

approximately 1.53% in 2001, to 0.6% in 2005 and only 0.1% in 2007, at which point the population

begins to decline each year, with the population in 2015, projected at 46 599 840, some 885 529 less

than the 2005 estimate of 47 485 369. With the highest incidence of H.I.V. infections the decline in

population of KwaZulu Natal will be proportionately higher.

Infection rates in KwaZulu Natal, are projected to peak this year at 19.2% (compared with national at

16.2% in 2006 ), and aids deaths peak in 2009 at 194 690 (25.6% of the national total of 760 174 for that

year). By 2010 accumulative aids deaths, for KwaZulu Natal are projected at 1 141 060, and in that year

life expectancy is projected at only 37 years, a decline of 22 years from 59 in 2000. The national figure is

projected at 41 in 2010, a decline of 15 years from 56 in 2000.

The foregoing analysis leads us to conclude that the probability is that there will be very limited, if any,

“natural” population growth in uMhlathuze between now and 2015, with a slow recovery in growth

thereafter. Migration from other areas will however continue, but this rate of migration is very difficult to

estimate.

3.8 Housing Needs Assessment

3.8.1 Introduction

In uMhlathuze housing needs vary greatly across a wide spectrum of housing developments, from the

formal up-market suburbs of Richards Bay, to the informal housing/shack development and traditional

homes found largely in the tribal authority areas. It is however in these rural/tribal authority areas that the

greatest needs exist, and after the finalisation of existing housing projects, the removal of slums and

informal settlements and rural housing development are the next two priorities in terms of the Provincial

and National Departments of Housing. The question of land tenure is therefore a major challenge in

uMhlathuze.

Much of the land within the City of uMhlathuze not readily developable due to limitations such as private

land ownership, lack of suitable infrastructure, environmentally sensitive wetlands, geotechnical and

environmental considerations, however there is an urgent need to give careful consideration to the

process of urban densification and the identification of well located land for development.

With work opportunities in the C.B.D.’s of both Richards Bay and Empangeni likely to increase

significantly in coming years, as employment in industries, other than manufacturing, such as financial,

insurance, real estate and business services and wholesale and retail trade grow , there will be an

increasing need for housing within or close to the C.B.D.’s.

Although great strides have been made in recent years, in the provision and planning of essential

services in the tribal authority areas, there are often no or inadequate sanitation facilities, long distances

to water supplies, limited electrification and no municipal refuse disposal systems in these areas. (See

infrastructure shortages section 3.2.2)

3.8.2 Slums clearance

The analysis of the census data undertaken quantifies and identifies the locations of the immediate need

for housing. A total of 5 812 informal dwellings/shacks including 1225 back yard shacks and 266

caravans/tents being used as dwellings are identified. Of these 4321 are informal dwellings not in back

yards or caravans and tents i.e. in informal settlements. This data clearly indicates that the most pressing

housing need, in terms of slum clearance, is to be found in Khoza with a total of 2660 (62%) informal

dwellings (excluding shacks, tents or caravans). Dube follows with 855 (20%), then Nkwanazi with 361

(8%), and finally Zungu/Madlebe with 259 (6%) of informal dwellings.

Having determined that Khoza is the area of greatest need, in terms of slums clearance, one is able to

focus on affordability and the need for subsidies. Census data indicates that over 90% of the labour

force (persons 15-65 years ) in the tribal authority areas are unemployed and earned no income or R1

600 per month or less. The formal township figures being Esikhawini, 70,27%, Nseleni 84,62%,

Zungu/Madlebe 86,99% (which includes Ngwelezane), and Vulindlela 87,74%, which can be compared

with Empangeni at 43,79%, and the combined Richards Bay at 52,92%.

% of informal dwellings in informal settlements in the Umhlathuze Municipality

62%20%

8%6% 1% 3% Khoza

DubeNkwanaziZungu/MadlebeRichards BayOther

Graph 2: % of informal dwellings in Umhlathuze Municipality

Khoza with a population of 24 164, and a labour force of 15 311, is the area of greatest need, and of its

labour force, 67,59% are unemployed or report no income, and a total of 93,87% have no income or

earn R1 600 per month or less.

Dube has a population of 52 238, has a labour force of 31 433, with 21 663 unemployed or reporting

no income, and a total of 92,7 % reporting no income or an income of R1600 per month or less.

Therefore the housing backlog in terms of slums clearance is calculated at 5812.

3.8.3 Rural Housing

Dube has the largest number of traditional dwellings with 2 695 (27%), followed by Zungu/Madlebe with 2

110 (21%), Mkhwanazi 1 457 (15%), Khoza 1401 (14%) and Nkwanazi 1259 (13%).

Whilst many of the 10 034 traditional dwellings offer more than adequate housing, often in idyllic

settings, the reality is that many of these traditional dwellings do not provide satisfactory shelter,

compounded by the absence of basic services and amenities. Based the infrastructure backlogs

determine in the district infrastructure master plan 66% of these households are below the acceptable

RDP minimum standard in 2004/5. This therefore indicates that the backlog or need for rural housing can

be calculated at 6622 housing units.

3.8.4 Social Housing/Hostels

There are 6 119 “living quarters” and whilst these are not considered housing units for purposes of the

census, they should be considered when assessing housing needs.

The largest number are to be found in Vulindlela, namely 1854, outnumbering the other types of housing

by a ratio of 2.7:1,0 However an inspection of these units in Vulindlela indicates that many of these living

quarters have been developed to cater for the needs of students studying at the University, and are

probably suitable for the intended use. The next significant number of “living quarters” is the 1 510 within

uMhlathuze, the vast central area encompassing the port and extending inland beyond Empangeni,

north-eastwards to Khoza and to the south-west to Felixton.

The Esikhawini Hostels Socio-Economic Survey of 2003, shows 1402 individual “quarters” with a

population of 4 709 ( head of household 1 477, dependents 1 563, spouses 129, lodgers 1 540).

According to the survey 87% of respondents regard the hostels as their permanent residence. However

due to the large number of living quarters catering for students it is estimated that only 30% of the total

figure should be included in the social housing backlog estimations. Therefore the housing backlog in

terms of Social Housing or Hostels can be estimated at (6119 x 30%) = 1836.

3.8.5 Middle income housing

The large gap between middle income housing prices in the townships and those in Richards

Bay/Empangeni, makes it difficult for the majority of African middle income earners to move to Richards

Bay and Empangeni, should they wish to do so, and a significant proportion of their needs should be

provided for within the townships, where the pressure on land and house prices is far less, with sites

seldom selling for more than R35 000, and attractive houses for more than R250 000, about one half the

price in Richards Bay/Empangeni.

With the Employment Equity Act and Black Economic Empowerment increasingly coming to the fore,

demand for middle income housing (and upper income) from this quarter will increase significantly and

must be catered for.

This need for middle income housing in Richards Bay and Empangeni, which has grown significantly in

recent years, is in part due to the fact that Africans are entering this market in increasing numbers, and

now reportedly constitute roughly one-third of the market.

3.8.6 Upper income housing

The demand for upper income housing in Richards Bay can be met by a number of planned projects

including the proposed golf-course estate and Meerensee infill sites, whilst in Empangeni there is not

significantly high demand at the upper levels. Furthermore with much of the land surrounding the town in

private ownership, this demand should be supplied by the private sector.

3.8.7 Summary of Housing Needs and Priorities The removal of slums and informal settlements is a priority of the Department of Housing, and the census

of 2001 identified 5 812 informal dwellings/shacks including caravans/tents being used as dwellings,

with 53,22% located in Khoza and 19,48% in Dube.

A total of 10 034 traditional dwellings/huts/structures made of traditional materials within the

Municipal boundary, and taking into consideration that the rural housing policy and subsidies cater for the

development of “formal” structures in the tribal authority areas, a programme of development should be

implemented. However only 66% of this figure will be added to the housing backlog calculation based on

those dwellings that are currently below the minimum acceptable basic service level (6622).

A total of 1836 “ living quarters” specifically related to a social housing need were identified, the

presence of living quarters in general is indicative of a need for social housing. Therefore the upgrading

of the hostels and the conversion of some to flats for sale or rent should be prioritized. Therefore the total

estimated housing demand for the Umhlathuze Municipality can be calculated at 14270.

Slums Clearance Rural Hostels Total

1. Khoza 53% 1. Dube 27% 1. Esikhaweni 76%

2. Dube 20% 2. Zungu/Madlebe 21% 2. Nseleni 16%

Est. Backlog 5812 6622 1836 14270

Table 5: Calculation of Housing Demand

4 LAND IDENTIFICATION One of the primary issues facing the uMhlathuze Municipality is the identification of suitably located land

for development. The Municipality has recognized this need through focusing much of its capacity to the

investigation of land that is suitable for housing development. The identification of land is a priority of the

“Umhlathuze five year development plan” completed in October 2005 by Metplan (Richards Bay) Inc.

This plan lays out a development approach to the securing of land for low medium and high income

housing. Based on this plan and discussion with the municipal housing officials the following areas for

development have been suggested. The Department of Land Affairs is currently looking to identify land, in the municipal area, to be included

in the land reform program. The department have been liaising with the Municipality to assist in the

process of identifying such land for development, however no suitable land has been identified as yet.

POTENTIAL LAND FOR DEVELOPMENT

Land Est.

No of

Sites

Property description,

Extent & (est. Value),

ownership

Potential issues? Bulks

Low Income

Umhlatuze Village

Phasing 2-5

3000 State land. Na Transfer of dev rights to Municipality OK

Aquadene/Birdswood ex 1000 750Ha. Na Well farmed forest land may be difficult to

acquire

Na

Esikhaweni / Vulindlela

Corr

800 Mix of private and state ownership. Na

High Agri value, Bulks to be extended, private

ownership

Sanitation capacity needs

upgrade

Gobandlovu/

Esikhaweni Infill

1000 Private Ownership, Na Private Ownership Sanitation capacity needs

upgrade

Iniwe 1500 Private Ownership, Na Private Ownership Na

Medium Income

Aquadene Corr 572 Por 13 (of 1) of Erf 11488,

20 Ha, Council

EIA and bulk sanitation to be upgraded Sanitation bulk network to

be upgraded

Intingwe 400 Na Na Na

Hillview Phase 2 230 Por 7,10 of Erf 7955, 26Ha, Council

EIA, DFA approval and poss Clayey soils OK

Wild-en-Weide ex 1719 Rem Erf 11494 & 11497,

326 Ha, (R8-10 Mill)

Private land availability for development is

doubtful

Birdswood ex 69 Erf 8511, 8512, 8552,

22 Ha (R1 mill), Council EIA still to be undertaken OK

Ngwelezane Phase 2 170 Na None OK

Wild-en Vilde –

Brackenham buffer

50 12Ha, Council NA Na

Emphangeni 100 1/4709 Na OK

High Income

Mzingazi Golf Es 178 Lot 5333, 7437& rem Erf 629

17Ha

NA OK

Mzingazi 180 Por Rem Erf 533, Council Environmentally sensitive area requires EIA Further investigation req

Lighthouse Node 130 (R4.7 Mill)19ha, Council EIA to be completed OK

Meerense, Dune route

Loodvislyn

100 Erf 7438, Council, 37Ha (not all

developable)

Environmentally sensitive, public opposition OK

Two Mile Node 70 9.4 Ha (R2.35 mill), Council EIA and re-Zoning OK

Meerensee, Krewel

Kring Junction

70-100 Erf 7429, (R2.5 Mill) 10 Ha, Dept of Education,

Accessing land from Dept of Edu OK

Soetwater Node 70 Por 115 of Erf 5333, 10.75 Ha

(R2.7 Mill), Council EIA and rezoning application OK

Marina Na Na EIA Na

Canal Node 400 56 Ha (R14 Mill) OK

Water Works Nodes Na 10 Ha EIA, environmentally sensitive area OK

Honey Farm Na 280 Ha EIA, Dev only in 2-3 years OK

Empangeni Airport

North

Na Rem Erf 197 No12418, Por Farm

Wiltan Park

NA Na

Meerensee 5 385 Rem 5333 143Ha, Council Township est., DFA, poss public opposition Require new electrical sub

est. R28 mill

Meerense retirement

Village

195 Lease 39 of Erf 5333, 6.7 Ha,

Council

EIA and rezoning OK?

Empangeni/ Nyala Park 30-35 3Ha,Erf 1937, Dept of Education?,

ReZoning, acquiring land from Dept of

Education

OK

Empangeni/ Richem 31 Erf 3169, 6.4 Ha, Dept of Education

ReZoning, acquiring land from Dept of

Education

OK

Empangeni CBD 45 Por 2 of Erf 8911 and por 2 Erf

37, 11.4 Ha, Gov Na OK

Table 6: Potential Land for development

5 INTEGRATION WITH OTHER SECTIONS

5.1 Background Integrated development is multi-faceted or multi-sectoral and therefore truly answers to the specific

needs and circumstances of communities. It is thus critical that the distinction is clearly understood

between integration at the broad IDP level and integration at the project level.

Project level integration is concerned mainly with ensuring that development at the community or project

occurs in a manner that is holistic, multi-sectoral, appropriate and sustainable. This means ensuring that

housing is accompanied, not only by the necessary water road, water and sanitation infrastructure, but

also by other forms of development such as:

agricultural and economic development (e.g.: support to de-facto micro enterprises),

the provision of appropriate social facilities such as those relating to education and primary health

care,

assistance to special needs groups (e.g.: those infected or affected by HIV / AIDS, orphans and

vulnerable children, the aged etc).

At a planning level an integrated approach should ensure the appropriate prioritization of projects and

their co-ordination with their associated supporting departments to maximise development impact which

will most effectively gear up local community initiative and energy, thereby reducing dependency in the

long run.

Therefore the delivery of projects must be coordinated between departments. This integration can

happen at a town planning stage through the establishment of education, health, economic development

areas. However it is the responsibility of the Municipal housing official to ensure that all of the

departments are aware of the proposed developments and that funding is coordinated to ensure

maximum development benefits. At a basic level this plan should ensure that MIG funding is correctly

coordinated with the proposed delivery of housing over the next five years.

In order to improve cross-sectoral integration service provider forums (SPF’s) were established in the

mid-1990s. Initially these forums were established at a provincial level and later in the regions and

districts. This initiative represented a breakthrough in translating the principles of integrated development

into a workable form. The aim of SPF’s was to improve coordination among major service provider

departments and to find synergies by working co-operatively.

These were non-statutory arrangements intended to promote co-ordination in the delivery of services in

the KZN regions (later called districts). But by time the IDP process was fully underway in 2001, the

district SPF’s had all experienced teething problems, some weathering these better than others. Many

had degenerated into little more than “talk-shops” characterized by inconsistent attendance2 .However it

is hoped that the existing housing forum should where necessary include relevant service departments to

ensure better integration on housing projects in the Municipality.

5.2 District infrastructure planning

The infrastructural backlog has been identified during the Uthungulu District IDP process and is outlined

below to provide an overview of the municipal infrastructure needs.

According to the IDP the current level of services provided in the rural areas is well below the accepted

planning standards and the installation of services in the past was sporadic and ineffective. The overall

objective in the provision of infrastructure, both physical and social, is in addressing the current backlogs

to provide for balanced growth in an equitable manner with the emphasis being on accessibility to basic

services which need to be provided in a sustainable and affordable manner to the Mbonambi Municipal

community.

2 Robinson, P, Methods of achieving integration in development planning: Early experiences from South African municipalities, P12

5.2.1 Service Level Policy

The following information forms the basis of the uThungulu District Municipal strategy, which has been

drawn from the district’s Water Services Development Plan, updated in 2005, defining target levels of

service to be achieved by the end of the 2006/2007 year in respect of the various services:

Water

To provide at least 90% of the population with water at a volume of 5litres /capita/day within a

1000m walking distance as a first objective and as a secondary objective

To provide at least 35% of the population with water to the RDP level of service being 25 litres

/capita/day within a 200m walking distance.

Sanitation

To provide basic health hygiene to at least 90% of the population

To provide at least 25% of the population with sanitation facilities at least in the form of a VIP

latrine.

Short Term Supply To reach the first objective of the UDM water supply policy of providing at least 90% of the population

with water at a volume of 5 /capita/day within a 1000m walking distance by the end of the 2006/07 budget

year, the settlements with no formal water supply will be provided with a borehole and a hand pump.

Long Term Supply To reach the second objective of the UDM water supply policy of providing at least 35% of the population

with water to the RDP level of service by the end of the 2006/07-budget year, existing projects were

expanded or new projects initiated.

5.2.2 Water and Sanitation service backlogs The overall estimated backlogs for sanitation and water supply in the Uthungulu District, per local

municipality, are provided below.

Table 7: Total backlogs per local municipality for sanitation supply as at July 2005

Table 8: Total backlogs per local municipality for water supply as at July 2005

5.2.3 Water supply A large number of households within the Umhlathuze rural areas have no access to potable water supply.

It has been estimated that currently 65.6% of households within these areas are below the accepted RDP

standards for water supply. In the traditional areas inadequate water supply is the main cause of

diseases, as many households have to make use natural water systems such as rivers and streams.

Piped water inside dwelling

Piped water inside yard

Piped water on community stand: distance less than 200m from dwe

Piped water on community stand: distance greater than 200m from Borehole Spring

Rain-water tank

Dam/pool/stagnant water River/stream

Water vendor Other Totals

1 1877 277 240 253 11 21 6 5 45 35 77 28482 2747 827 30 51 9 0 0 0 0 0 29 36953 1925 262 37 135 0 0 0 0 3 4 0 23694 1788 882 28 50 0 3 0 0 0 0 29 27845 24 191 228 467 4 5 48 4 193 0 156 13256 82 1100 804 1336 78 228 10 162 166 11 357 43407 351 516 528 1273 5 0 4 0 3 3 82 27728 1211 418 6 18 0 0 0 0 0 3 3 16679 1225 458 17 78 0 0 0 6 0 0 12 1805

10 11 91 15 65 38 167 18 11 1110 17 123 167611 3 13 49 47 20 17 10 105 668 34 4 98112 174 1567 164 52 3 3 0 0 5 0 99 207913 60 1890 319 433 190 79 97 147 207 5 189 362914 614 2576 139 81 13 9 23 3 3 8 202 368515 26 430 198 174 18 18 33 18 81 11 95 111716 365 2029 83 89 0 0 4 0 6 0 76 266817 1156 251 10 53 0 0 0 0 3 0 3 149318 44 1890 172 80 15 52 15 11 208 3 89 259719 1237 1241 98 50 0 0 0 3 4 0 29 268120 1222 194 35 91 0 0 0 0 0 0 3 156521 740 709 3 15 0 0 0 0 0 0 6 149422 201 2406 177 171 7 0 4 8 5 7 103 311123 556 600 50 84 0 0 0 33 61 0 9 141624 11 189 542 674 3 0 3 4 8 0 14 147225 39 779 902 730 5 15 3 3 0 3 103 260726 1805 284 19 64 3 0 3 0 0 3 7 221427 1524 618 89 128 0 0 0 0 0 0 9 239528 389 615 274 187 101 6 6 3 36 0 19 166429 22 57 522 912 25 3 4 0 190 0 31 179530 461 432 39 95 7 334 4 3 219 0 22 1646

21890 23792 5817 7936 555 960 295 529 3224 147 1980 6759032.39% 35.20% 8.61% 11.74% 0.82% 1.42% 0.44% 0.78% 4.77% 0.22% 2.93%

Households by Access to Water

Ward

Table 9: Households by water supply (census 2001)

5.2.4 Sanitation The historical provision of sanitation within the area of the District Municipality has being supplied on an

un-coordinated and ad-hoc basis. This service is normally supplied by the individual households itself as

aqua/ privy or pit latrine, which is suitable throughout the scattered and sparsely populated areas.

Flush toilet (connected to sewerage system)

Flush toilet (with septic tank)

Chemical toilet

Pit latrine with ventilation (VIP)

Pit latrine without ventilation

Bucket latrine None Totals

1 2167 27 134 246 131 13 129 28472 2979 121 414 9 150 0 23 36963 2282 39 5 6 0 0 30 23624 1998 21 670 34 20 5 35 27835 18 9 11 501 490 17 273 13196 157 102 298 1149 2087 20 523 43367 713 42 98 101 1209 27 573 27638 1638 4 0 0 0 0 15 16579 1407 85 0 76 85 6 137 1796

10 30 7 6 551 709 171 193 166711 5 5 83 86 486 3 303 97112 100 146 405 434 871 25 90 207113 138 72 333 300 2008 81 684 361614 1028 90 460 356 1543 111 84 367215 33 16 206 81 476 10 280 110216 698 149 507 851 358 22 68 265317 1451 0 0 7 4 0 10 147218 111 128 310 98 1147 10 774 257819 1602 52 8 343 523 13 124 266520 1527 3 3 0 3 0 6 154221 1444 8 0 3 3 6 7 147122 551 253 326 297 1329 21 310 308723 875 67 9 147 132 3 162 139524 15 17 102 647 363 15 289 144825 84 73 526 935 465 28 468 257926 2054 76 0 9 3 0 39 218127 1914 73 177 14 132 7 55 237228 846 16 70 193 348 4 160 163729 19 50 256 533 757 18 134 176730 621 14 8 66 705 5 197 1616

28505 1765 5425 8073 16537 641 6175 6712142.47% 2.63% 8.08% 12.03% 24.64% 0.95% 9.20%

Households by Sanitation

Ward

Table 10: Households by sanitation supply (census 2001)

The lack of proper sanitation facilities within the tribal areas can adversely affect the quality of the

underground water system. In these areas only 9.7 % of households have access to flush sanitation

facilities, while 40.3% of the households have no access to sanitation facilities.

5.3 Roads The Department of Transport has established Road Transportation Forums, which prioritise the provision

thereof in terms of the needs expressed by the community.

An assessment of the location of the proposed development nodes have indicated an adequate all

weather access to each of these. The nodes are further located on bus routes, which enhances the

development potential thereof. The identified development nodes are located on district roads and it is

proposed that these roads been maintained to improve their quality. Each housing project within the

traditional areas will have to evaluate the current condition of the roads provided in that area to determine

if any roads upgrades are required.

5.4 Electricity

The Eskom coverage indicates than an adequate supply is available to most of the identified

development nodes. However there are deficiencies in the electrification grid in portions of the Mbonambi

tribal area.

An analysis of the usage of electricity based on information obtained from the 2001 census indicates that

while just over 50% of the population in the area have electricity 46% still use candles as there main

source of light.

6 AVAILABILITY OF INFRASTRUCTURE TO RURAL NODES

No. Rural Node Status Quo and Project proposed Comment

1 Nseleni/

Khoza

o Pipe from Mandlazini Reservoirs to augment supply to

Nseleni reservoir was completed during December 2004.

o A new 10Ml reservoir has been built in Nseleni.

o Sewerage treatment plant capacity is 3Ml/day. The current

inflow is 0,9Ml/day. Refurbishment of the plan will take place.

No problems

anticipated with the

supply of water and

sanitation to new

housing projects.

There is capacity.

2 Esikhawini/

Dube

o Water pipeline from Forest Reservoirs near Esikhawini

towards the east to supply informal areas north of Esikhawini

and west of Lake Cubu. Project should be completed during

Jan/Feb 2007 – MIG funding application has been submitted.

o Increase the capacity of the Cubu Reservoir by an additional

9 Ml on the budget for 05/06 and completion during 06/07.

o Additional 20 megalitre reservoir at the Esikhawini Reservoir

to make storage 60 Ml in the same time frame as above.

o Esikhawini purification works to be upgraded – planning for it

during 05/06 and completion during 07/08.

o 6. Construction of rising main for Esikhawini sewerage also to

happen during the same timeframes as no. 5 above.

No problems


supply of water and

sanitation to new

housing projects.

There is capacity.

3 Ngwelezane

(Madlebe)

o MIG project to increase pipe sizes for reticulation in Madlebe.

Site handover was on the 19th of April. Project should be

complete by December 2005.

No problems


supply of water and

sanitation to new

housing projects.

There is capacity.

Table 11: Availability of infrastructure to rural nodes

Notes:

The size of the sewerage treatment plant at Esikhawini is 12Ml/day (current inflow approximately

9Ml/day) and the Vulindlela plant has capacity of 2,8Ml/day (current inflow approximately

1,4Ml/day).

Ngwelezane is supplied from a WTW in the Mhlathuze River and water is stored in reservoirs are

on the edge of town. The WTW provide 8 Ml and Ngwelezane town only uses about 4 Ml/day.

The Madlebe area to the north of Ngwelezane uses on average 2 Ml/day. There is thus a spare

capacity of about 2 Ml/day.

Ngwelezane has sewerage treatment plant has capacity for 5,8Ml/day and the current inflow is

about 2,5Ml/day.

In general, the capacity of existing treatment plants can be expanded.

Nseleni supplied by Mandlazini Reservoirs (47,5Ml). The source of the Mandlazini Reservoirs is

the Mzingazi Lake.

Dependant on the location of the proposed housing project, some bulk infrastructure may be

required to service the housing project. This required bulk infrastructure will be financed by MIG.

Mzingazi areas have good reticulation and a 300 line feeds the Mbonambi TA and passes through

the area. Source is the WW at Lake Mzingazi.

Mzingazi WTW also being improved. Mechanical and electrical improvements will increase the

capacity to 65Ml/day opposed to the existing 45 Ml/day.

It is noted that the private forest area, between Esikhawini and Vulindlela can be serviced should

the need arise.

7 HOUSING DELIVERY PLAN Based on the IDP, the Housing Needs Assessment and the uMhlathuze five year development plan the

following plan has been developed.

7.1 Slums Clearance and Rural development

There are no current projects in this category

Proposed projects

Priority 1: Khoza

Priority 2: Dube

Priority 3: Madlebe

Priority 4: Mkhwanazi

The areas of Khoza, Dube and Madlebe have been identified as the areas of greatest need for

development. These areas have also been identified as both primary nodes of development through

Ngwelezane, Esikhaweni and Nseleni and then directly identified as tertiary nodes for development in the

IDP. The area surrounding Nseleni on the boundary of Khoza traditional area and the area surrounding

Esikhawini on the boundary of the Dube traditional area can be classified as informal or slum

settlements.

Therefore the proposal is to firstly implement two projects based on a dual or mixed methodology which

caters for both the requirement for Rural housing and the upgrading of the existing slum settlements.

These project will comprise an insitu upgrade of the informal settlement where possible3 linked to a rural

development initiative in the surrounding traditional authority area.

It is suggested that due to the advanced stage of packaging the Dube upgrade and rural development

project be implemented first and thereafter the Khoza upgrade and rural development project should be

packaged.

3 Many of the houses in these informal settlement have been formalized and represent a significant investment on the part of the ‘owner’ however they fall directly in the main road reserve of under power lines where no development is possible.

It should be noted however that much of the high density residential development surrounding the

Esikhawini Urban Area, especially that on its northern, north-eastern and eastern boundaries is on land

identified as “No development recommended” in terms of the Geotechnical Development Zones for the City of uMhlathuze, prepared by Golder Associates and dated January 2005. It is recommended that

the geotechnical no development areas in this area be further investigated. At Nseleni, land on the western boundary of the township is not recommended for development.

Both these no development areas need to be investigated further as part of the project feasibility studies

for the suggested projects.

Finally a third rural housing initiative should be packaged in Madlebe.

7.2 Low Income Greenfield development (Current Projects, see also Appendix 1)

7.2.1 Umhlathuze Village Phase 1(1191) K19990054

The first phase of the Umhlathuze village of 1191 sites is approximately 40 % complete. 4

7.2.2 IDT project (250) K19990040

Approximately 50 (20%) of the 250 sites have been consolidated in the IDT project.

7.3 Low income Greenfield development (Planned Projects)

7.3.1 Umhlathuze Village Phase 2-5 The development of the next phases of the Umhlathuze village project will provide approximately 3000

new sites. The development of these well located sites just outside Empangeni area is crucial for the

implementation of the other programs namely the Hostel upgrades and the insitu upgrades of Dube and

Khoza informal settlements. These sites should have a pre-allocated no of sites for relocation from the

parallel slums clearance and hostel upgrade projects. The exact amount of relocations can only be

4 The mini project comprising of 18 adjoining two roomed housing units, in Ngwelezane should also be noted

determined through a number of socio-economic surveys to be carried out during the feasibility stages of

the suggested projects.

7.3.2 Aquadene

Approximately 1000 low income housing sites should be available from the +- 2000 available sites in the

Aquadene development, the remainder being allocated to middle income or credit link bond housing

development. This project is well advanced with the land secured by the DoH, the town planning at an

advanced stage and conditions of establishment already approved for a portion of the development.

Furthermore agreement has now been reached with the community on the proposed development.

7.3.3 Iniwe and Corridor Investigations are currently underway to identify further parcels of land for development. Current areas of

relevance and potential for low to middle income housing include the Corridor farm between Esikhaweni

and Vulindlela and Iniwe. These properties may be able to yield 1500 (Iniwe, 280 Ha) and 1200 sites

(Corridor 220 Ha) of both low and middle income housing opportunities.

Investigations into the availability of and suitability of these two sites should be implemented as a matter

of urgency.

7.4 Hostel Upgrades

7.4.1 Esikhawini hostel upgrade (360 units) A pilot project for the upgrading of 36 families in the Esikhawini hostel has been completed and this can

now be extended to include the full 360 families in the project. Finance for the whole project has already

being secured. Relocations from this project should be accommodated in either the Umhlathuze village

phases 2-5 or on the two land parcels corridor and Iniwe farm.

7.4.2 Khoza Hostel upgrade (117 units)

The initial packaging of the Khoza hostel upgrade is now well underway. The project has been packaged

based on R80 000 of funding secured from the DoH. However one of the primary concerns for this

project is the availability of sites for relocating excess families from this project.

Apart from potential relocations to the other low income housing project such as the Umhlathuze village’s

phased 2 and 3, a piece of wooded farm area owned by Sappi in the immediate vicinity may be a

potential for settling the relocated families from the project. Relocations from this project should be

accommodated in either the Umhlathuze village phases 2-5 or on the land parcels to the south of the

Nseleni settlement.

7.5 Middle Income or credit linked Housing A number of potential projects in the middle income range (R3500-R7000+) have been identified. While

many of these projects will cater for income earners above the minimum R7000 required for the DoH’s

credit linked subsidy option, options for the inclusion of subsidy beneficiaries on the credit linked scheme

should be investigated on a project by project basis.

These potential projects may be drawn from the following possibilities; however the feasibility each

project will have to be evaluated before any definite estimates on the number of units to be produced is

finalized.

Project Est. Sites Potential issues/Comments

Aquadene 1000 Project feasibility and planning underway

Aquadene Corr 572 EIA and bulk sanitation to be upgraded

Sinkniti 400 Potential for development to be investigated

Hillview Phase 2 230 EIA and DFA approval required, poss clayey soils

Wild-en-Weide ex 1719 Access to private land may be difficult

Birdswood ex 69 EIA required

Ngwelezane Phase 2 170 Potential for development to be investigated

Wild-en Vilde –Brackenham buffer 50 Potential for development to be investigated

Emphangeni Erf 1/4709 100 Potential for development to be investigated

TOTAL pot mid- income sites 4310

Table 12: Middle income possible housing projects

7.6 High Income Housing It is estimated that the number of potential developments in the high income housing range is sufficient to

meet the demand for housing in this range. It is also envisages that most of these development will be

completed through the private sector developers.

Potential high income developments have been identified in table 1, in section 2.

7.7 Relocations

It is critical that housing projects are not delayed due to the lack of alternative sites for relocations.

Therefore a careful analysis of projects in existing settlements should be carried out to estimate the

number of relocations required in the planned projects. Until this evaluation has been carried out at least

25% of all partial or full Greenfield developments should be allocated for relocations. Thereafter all new

Greenfield projects should have a separate number of relocation allocations based on a careful analysis

of the surrounding projects to allow for overflow from other projects.

7.8 Housing Response To HIV/Aids

The KwaZulu – Natal Department of Local Government and Housing, in its document

“ Aids : Provision Of Housing ”, states that 1 in 3 people (should read adults) in KwaZulu Natal are

infected with HIV, and by 2010 there will be 750 000 AIDS orphans in the Province ( it is estimated that

by 2008 there will be 1,5 million children headed households in South Africa). The document submits

that the Province can assist with the alleviation of the crisis caused by AIDS by providing funding for the

victims of the disease on one of the following bases:

• Through the establishment of cluster homes or children’s villages for AIDS orphans;

• Through the provision of transitional housing for adults and children who are suddenly faced with

having no bread winner as a result of death because of AIDS;

• By the provision of facilities for home based care where families are prepared to assist by looking

after victims of AIDS, whether persons with AIDS or AIDS orphans.

It is the last of these bases (home based care) that currently finds favor, and where appropriate, the

Council should access the necessary funds in line with the Province’s guidelines.

It is suggested that the Municipality as a matter of urgency package and implement a HIV based project.

This project should be initiated though an established social welfare NGO.

7.9 Summary of Housing priorities The following table provides a priority list for the delivery of housing projects in the Umhlathuze

Municipality. It is however important to note that this list is drawn from current available information on

the projects in question and that depending on new information which may come to light, this list may be

amended on a yearly basis (with sufficient justification to the DoH). Furthermore this list of projects is

divided into a number of sections i.e. Slums clearance, rural housing, PLS etc. and therefore

HOUSING PRIORITY LIST Sites Est. Value (R/Mill)

Slums clearance – Rural Housing Projects 3700

1. Esikhaweni / Dube Wards 12,13,14,15,16,20 & 22 1500 63

2. Nseleni / Khoza Wards 5,7 & 8 1200 50.4

Rural housing 2000

3. Madlebe Ward 24,25,27, 28 & 29 1000 42

4. Mkhwanazi Ward 10, 11, 18 & 30 1000 42

PLS & Greenfield housing projects 5700

1. Umhlathuze Village P2-5 Ward 9 2000 84

2. Aquadene Ward 2 1000 42

3. Corridor (investigate) Ward 14 1500 63

4. Iniwe (investigate) Ward 29 1200 50.4

Hostel Upgrades 441

Esikhaweni Ward 20 & 21 324 12.6

Nseleni Ward 8 117 4.6

HIV Aids 30

HIV project (location to be determined) 30 1.3

Total 11841 455.3 mill

Table 13: Housing priority list

Note:

The number of sites indicated is a rough estimate that will have to be updated during the

feasibility and packaging phase of the projects.

Not all of the projects will be completed with in the 5 year horizon

Packaging and evaluation should commence on Corridor and Iniwe as soon as possible

It is expected that packaging on the third and fourth rural projects, Madlebe and Mkhwanazi will

only commence in 2007.

8 PERFORMANCE MEASUREMENT In order for the housing sector plan to be practical and useful it must be effectively and accurately

monitored. A suggested method of monitoring and evaluation of housing projects at packaging or

feasibility stage can be drawn from PPT’s DOH project packaging course. The information from this

course is available to housing officials within the municipality who have already completed the course.

Therefore projects in the packaging or feasibility stage should be monitored based on the required

information collected in the Preliminary Assessment, Pre-feasibility, and Feasibility stages, as outlined

below.

8.1 Preliminary assessment This stage involves a lightweight upfront project assessment which is mainly desktop, and usually

requires a site visit where relevant stakeholders can also be met. Risks and opportunities are identified

before commencing with full scale and costly pre-feasibility. It is in this stage that the rough budget and

scope for pre-feasibility and feasibility are defined. Information collected in this stage should form the

basis for motivating for the release of preparation funding.

8.2 Pre-feasibility It is in this stage that project preparation starts in earnest and significant project budget is required. It

entails careful assessment of the project basics (e.g.: land availability, site suitability etc) by a team of

specialists. The project concept and rough capital and operating budgets are produced. Key risks are

eliminated, quantified or referred to the feasibility phase for resolution. The risks clarified in this stage

form the basis for the projects success or failure. This stage equates to the conditional approval stage in

relation to the DoH’s process detailed in Chapter 3A of the Housing Code.

The main project risks clarified in this stage are as follows:

Land Audit

Initial social facilitation (community and other stakeholder support)

Environmental scoping report (preliminary)

Assessment of Bulk Services (of less importance in rural housing projects)

Preliminary Geotech (of less importance in rural housing projects)

Planning issues - site constraints and yield (of less importance in rural housing projects)

8.3 Feasibility It is in this stage that more detailed work by project team takes place. The focus is to resolve outstanding

risks (from the previous stage) and to finalise the project concept, design and cost parameters.

Information clarified in this evaluation results in a final applications to the DoH for full project approval

through the PLS application form.

The main project activities carried out in this stage are as follows:

Land assembly / land agreements

Further social facilitation

Socio-survey

Social compact

Preliminary town planning layout (Settlement plan required for rural housing projects)

Preliminary engineering design and costs (of less importance in rural housing projects)

Top-structure delivery

i. Designs and cost estimates

ii. PHP plan if required

9 INSTITUTIONAL ARRANGEMENT The current institution preferred arrangement for housing delivery in the municipality is based on the

turnkey strategy, as outlined in Ch 3a of the housing code, though the use of independent Implementing

agents (IAs). However a number of problems relating to this strategy have arisen both within the

municipality and the province, usually because of the appointment of inexperienced or unscrupulous IAs.

This has culminated in the DoH requiring a tri-partite agreement between the IA or Project Manager, the

DoH and the Municipality.

While this tri-partite agreement will go a long way in alleviating a number of the current institutional

problems experienced, it is still vital that the municipality looks at ways of increasing internal capacity in

order to manage the delivery of housing projects internally in the future.

Due to the dynamic nature of policies relating to housing delivery in the province, it is vitally important

that the relevant municipal housing official engages with the DoH before any institutional arrangements

for the delivery of housing projects is finalised. This will ensure that the housing institutional

arrangements are current and relevant at the time of project delivery.

10 CASH FLOW

UMHLATHUZE PROJECT CASH FLOW

Mill 2006/7 2007/8 2008/9 2009/10 20011/12 Total

Sites Value 1 July- 31 June

1 July- 31 June

1 July- 31 June

1 July- 31 June

1 July- 31 June

Current Projects Umhlathuze Village 1191 28.8 14.4 14.4 28.8IDT Project 50 1.3 0.65 0.65 1.3Planned Projects

Rural/Slums Esikhaweni / Dube 1500 63 2.4 20.2 20.2 20.2 63Nseleni / Khoza 1200 50.4 1.92 16.16 16.16 34.2Madlebe 1000 42 1.6 13.47 15.1Mkhwanazi 1000 42 1.6 1.6PLS 0Umhlathuze Village P2-5 2000 84 16.8 16.8 16.8 50.4Aquadene 1000 42 8.4 8.4 8.4 8.4 33.6Corridor 1500 63 0.2 0.2Iniwe 1200 50.4 0.2 10.08 10.08 10.08 30.4Hostel Upgrades 0Esikhaweni 324 12.6 3.2 3.2 3.2 3.2 12.6Nseleni 117 4.6 1.1 1.1 1.1 1.1 4.6HIV/Aids 30 1.3 0.3 0.3 0.63 TOTALS 12112 485.4 15.1 30.5 61.7 77.9 91.3 276.5

11 PROGRAM

APPENDIX 1: CURRENT HOUSING PROJECTS DETAILS

CAPITAL PROJECTS: HOUSING PROJECT NO.1 PROJECT DESCRIPTION: UMHLATHUZE HOUSING PROJECT (K 1999 0054 PHASE ONE) PROJECT MANAGER : INFRASERV/ DEZZO HOLDINGS CONTACT PERSON : TONY JONES (DEZZO), JOSH VALOO (UMHLATHUZE) PROJECT PHASES/ACTIVITIES TOTAL

BUDGET TARGET DATES

PROGRESS/ PERFOMANCE

COMPLETION BY

PHASE 1 Construction of services and top structures- 1191. - Enlisting of applicants from J-223, J464 & J1169 Hostels - Construction of top structures and infrastructure services

R38m

17/11/2006 25/02/2006 17/11/2006

100% 100% complete 40% complete

J. Valoo

PHASE 2 Packaging and approval of application. - Procurement of services (Project Manager + DOH) - Formal appointment

N/A 30/06/2006 31/03/2006 30/04/2006

0% complete 0% complete 0% complete 0% complete

J. Valoo

PROJECT NO. 2 PROJECT DESCRIPTION : ESIKHAWINI HOSTEL UPGRADE PROGRAMME PROJECT MANAGER : Bvi CONSULTING ENGINEERS CONTACT PERSON : DAVID LUTHULI (UM), RODNEY FOX (BVI) PROJECT PHASES/ACTIVITIES TOTAL

BUDGET TARGET DATE PROGRESS/

PERFOMANCE COMPLETION BY

PILOT PROJECT Refurbishment of J464 Flat - Re-allocation of tenants - Signing of Lease Agreements - Snag listing - Finalize allocations - Fencing and security

R11, 96m

30/10/2005 18/12/2005 18/12/2005 30/03/2006 30/03/2006 30/03/2006

98%complete 75% complete 75% complete Underway 75% complete 0% complete

D. Luthuli

PHASE 1 Refurbishment of Madala and Sokesimbone Flats - Call for Tenders - Adjudication of Tenders and Appointment

30/06/2007 30/05/2006 30/04/2006


D. Luthuli

PROJECT NO. 3 PROJECT DESCRIPTION : NSELENI HOSTEL UPGRADE PROGRAMME (Packaging) PROJECT MANAGER : UMHLATHUZE MUNICIPALITY CONTACT PERSON : DAVID LUTHULI PROJECT PHASES/ACTIVITIES TOTAL

BUDGET TARGET DATE

PROGRESS/ PERFOMANCE

COMPLETION BY

PHASE 1 - Secure Funds from KZN- DOH - Socio Economic Survey - Structural Surveys & Assessments - Secure alternative land for the displaced tenants

R80 000 (P1)

30/05/2006 31/03/2006 30/06/2006 30/06/2006 30/11/2006

100% 100% complete 0% complete 0% complete 0% complete

D. Luthuli

PHASE 2 REFURBISHMENT OF UNITS - Call for Tenders for Refurbishment - Adjudication of Tenders and Appointments

30/11/2007 N/a N/a

D. Luthuli

PROJECT NO. 4 PROJECT DESCRIPTION : LAND PROCUREMENT PROJECT MANAGER : UMHLATHUZE MUNICIPALITY CONTACT PERSON : S’PHIWE THUSI PROJECT PHASES/ACTIVITIES TOTAL

BUDGET TARGET DATE

PROGRESS COMPLETION BY

Liaise with various Stake Holders, Estate Agents etc to acquire land for housing development

R5m

30/06/2006

30% complete

S. Thusi

PROJECT NO. 5 PROJECT DESCRIPTION : IDT HOUSING CONSOLIDATION PROJECT K19990040 PROJECT MANAGER : RURAL DEVELOPMENT SPECIALISTS CONTACT PERSON : JOSH VALOO PROJECT PHASES/ ACTIVITIES TOTAL

BUDGET TARGET DATE PROGRESS COMPLETION

BY PEOPLE’S HOUSING PROCESS - Set up Site offices and Community Support Centre

(RDS) - Schedule monthly meetings with the beneficiary

community , the Community Based Partner (Bambisanani) and the Developer (RDS)

R1.3m

30/11/2006 31/04/2006 31/03/2006


J. Valoo

APPENDIX 2: PROJECT DEVELOPMENT AREAS PLAN

UMHLATHUZE MUNICIPALITY HP rev 16 final - · PDF fileUMHLATHUZE MUNICIPALITY MUNICIPAL...

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