R101 Million invested in housing development

The Executive Committee on Tuesday, 18 August 2015 approved additional funding of R101 million to ensure the first phase of the Cornubia Integrated Human Settlement Development would be completed.

City Manager Sibusiso Sithole said funding had to be approved to ensure the City was able to meet their housing obligations which included the relocation of several identified transit camps at the site.

“There is a sense of urgency in this matter as we have been dealing with it for months. If we don’t find a solution we will sit with this infrastructure which will be wasteful expenditure which we don’t want,” he said.

Nigel Gumede, Chairperson of the Human Settlements and Infrastructure Committee, said there is a demand for housing in the Municipality and government had the responsibility of providing the service.

“We cannot sit on our laurels because the housing coffers have run dry. We have identified a problem but we need to keep moving to provide this service,” he said.

Beryl Mphakathi, head of Human Settlements presented a report to the Executive Committee outlining challenges facing the development and the necessity of additional funds.

She said the pilot phase, Phase 1A, was at an advanced stage with 482 top structures on fully serviced sites.

The funding shortfall of R101 million is to ensure completion of the eight sub-phases in Phase 1, of which one, Phase 1B, was already at implementation stage.

Additional funds are needed to complete Phase 1B. Currently three contractors are engaged with the implementation of 2 186 sites.

Of this 803 sites are ready for top structure construction, 741 by another contractor will be completed this month while the third contractor will be implementing 642 serviced sites. Top structures will be completed by April next year.

Mphakathi said attempts to find solutions to address the shortfall were reviewed. This included seeking additional funds to make up the shortfall or reducing tender prices.

There are ongoing discussions between the Municipality and the National and Provincial Government to ensure funding for human settlements is prioritised.