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Gauteng considers building material warehouses

Article Published: Saturday 21 April 2007

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Due to the high demands for building stadiums for the 2010 FIFA Soccer World Cup, the Gauteng (Johannesburg and Pretoria)Department of Housing is considering setting up building material warehouses.

At a meeting this week between the department and stakeholders in the housing industry, concerns were raised by small and medium developers.

They are contracted to deliver high volumes of low-cost housing but are concerned that building stock, including cement, might run out due to the need for construction projects related to 2010.

Addressing delegates, Housing MEC Nomvula Mokonyane said both the Provincial and national Departments of Housing are already investigating options to protect small and medium size developers from competition for material.

"Because Gauteng faces unique challenges, we are looking at warehousing as a serious option," she said, adding that the provincial government is aware of the current competition between government and the private sector for technical and project management skills.

In this regard, she said, the department had conceptualised a business model in which outside professional resource teams are contracted to provide the relevant skills.

"The Department has introduced service level agreements with contracted companies to ensure that professionals with the best skills were commissioned to undertake housing projects."

She said while the provision of low-cost housing remains a priority, the department will also accelerate the provision of affordable rental units.

The department, also plans to convert hostels across all municipalities into affordable rental accommodation.

It will also continue with a pilot project to build backyard accommodation in Orlando, Soweto and Sebokeng in the Vaal area.

"Our housing backlog consists of a high number of people who come from other provinces with no intention to settle permanently in the province.

"We therefore need to make sure, as the provincial government, that we provide them with decent rental accommodation while working in the province," said Ms Mokonyane.

The MEC further called on municipalities, government departments, state owned enterprises and other interest groups to start planning jointly in what she referred to as central planning.

She said this would address both the housing and infrastructure backlogs quickly.

Housing projects in Ekurhuleni, she said, were moving faster because the local municipality had allocated over R1 billion, to assist the department accelerate housing and delivery of essential services.

About 60 000 houses will have to be built every year in the province to make a significant contribution against the housing backlog.

Earlier this year, the national department of housing said a target of 500 000 affordable houses would have to be built each year in order to meet the growing population's need.

The Department of Housing has managed to build more than 2 million houses in 12 years, with an annual churn out of 250 000 houses.

With the backlog estimated at 2.4 million homes, government has realised that public and private partnerships are crucial in meeting their objective of having a "nation free of slums by 2014." -

The Federation of the Urban and Rural Poor (FEDUP) Programme also aims to facilitate the building of houses by communities.

FEDUP is supported by the People's Housing Process (PHP), a government programme which provides funds to communities through a registered association for training, project management and the overall building of houses.

The programme also encourages communities to work together to save and build their own houses. By working together the communities gain skills as the construction work will be done its members themselves.

FEDUP is represented in all nine provinces and has helped communities build 20 000 houses in South Africa since 1996.

It administers the daily and monthly savings of members, and to date has accumulated R10 million from its 80 000 members, which has an estimated impact on over 500 000 beneficiaries.
 
- BuaNews




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