Infrastructure

1. (a) The department spent the entire R282,315,000 available as per annexure B. It should be noted that at the end of February 2025 the ISUPG was incorrectly reduced by R100m from the original R382,315,000. While the implementation of some phases of large projects could be delayed, accrued payments for March 2025 were paid in the 2025/26 financial year which will have an impact on funding available to initiate new projects.  The Western Cape Province was initially allocated R382,315 million under the Informal Settlements Upgrading Partnership Grant (ISUPG) for the 2024/25 financial year. However, following a national reduction to the provincial human settlements budget, the ISUPG allocation was reduced by R100 million.

(b) (i) Despite the complexity and evolving nature of the Informal Settlements Upgrading Partnership Grant, the Department achieved 100% expenditure of the revised allocation for the 2024/25 financial year, following a R100 million budget reduction.

(ii) The ISUPG was utilised across various informal settlement upgrading projects in line with the approved Business Plan, focusing on the provision of basic services, planning, tenure support, and infrastructure upgrades. The R100 million budget cut, however, had notable implications. Several planned upgrading projects had to be reprioritised, rescheduled to future financial years, or scaled down in scope to remain within the reduced funding envelope. The Department engaged with affected municipalities to communicate these changes and manage expectations.  A detailed list of projects funded and associated expenditure is attached as Annexure B.

2. All the projects meet the national government spending framework and are compliant as per the business plan approved by the National Department of Human Settlements.

Yes, all projects implemented under the ISUPG are fully compliant with the national government’s spending framework, including the Division of Revenue Act (DoRA), UISP Guidelines, Human Settlements Grant Framework, and Project Readiness Matrix (PRM).  All projects were assessed and approved through the Department’s Grant Allocation Assessment Committee (GAAC) process and are included in the approved 2024/25 Business Plan.  The ISUPG-funded projects are located across various municipalities, in the province as listed in Annexure B.