Infrastructure
With reference to the Kuyasa Ward 99 Housing Retrofit Project, which was initiated to address poor workmanship in 2 373 RDP houses built as part of the People’s Housing Process, and considering the project was halted with fewer than 300 houses completed due to budget constraints:
(a) What is the (i) current commitment of his Department to completing this retrofit project, (ii) budgetary provisions and (iii) planned timeline and (b)(i) what are the key challenges that his Department faces in resuming or completing the remaining phases of the retrofit and (ii) what steps are being taken to overcome these obstacles?
It should be noted that all units were originally completed as per the relevant building specifications according to the subsidy allocation at the time, the retrofit came as a request following an update to building specifications and an increase in the subsidy allowances, after the units were originally completed.
- (i) The Department completed Phase 1A, but there is currently no commitment to implement the remainder of the project because the Department does not have the financial capacity to do so.
(ii) Unfortunately, the project had to be halted due to funding constraints and the Department cannot afford to continue with the remaining Phase 1B, Phase 2 and Phase 3. The Department has already made financial commitments on several projects across the Province, including several in the Metro region, and can no longer afford to absorb additional costs on projects.
(iii) Due to funding constraints, there is no planned timeline for restarting this project. The project will go ahead if only there is a significant injection of future funding from the National Department and private sector partners.
- (i) Grant allocations have been reduced by the National Department leaving just enough funding to complete the planned projects on the current Business Plan. The focus of the Department is to assist as many households as possible with new opportunities, as opposed to providing beneficiaries that have already benefitted additional benefits. Implementing the remainder of the Kuyasa project will set a precedent for all Projects in the Western Cape where it is demanded that projects be retrofitted once building specifications in terms of the subsidy are increased.
(ii) Budget cuts and financial constraints are beyond the control of the Department, and this obstacle will remain. Due to a strained fiscus, which results in significant budget cuts every year, the focus is now on the provision of opportunities for beneficiaries who have not benefitted before.
