R500 million boost for Port Elizabeth housing
Housing delivery in the Nelson Mandela Bay municipality got a boost with the gazetting of an additional R500 million by National Treasury to speed up the provision of sustainable human settlements in the city.
The additional funding is aimed at bolstering the work of Human Settlements Minister Lindiwe Sisulu’s Cabinet-sanctioned intervention team in the municipality and its availability will seriously help ease the shortage of housing in the Eastern Cape, the human settlements department said in a statement on Sunday.
“Cabinet took a decision to intervene in the municipality with the sole purpose of stabilising the institution and up-scaling housing delivery.
These extra funds are a demonstration of government’s commitment to develop the municipality and improve the lives of the citizens of the metro,” human settlements director general Mbulelo Tshangana said in the statement.
The ministerial intervention team – led by acting executive director for human settlements in Nelson Mandela Bay Mandla Mabuza – had as one of its priorities the stabilisation of the revolving fund, which was a bridging finance mechanism used by the metro to pay contractors while waiting payment from Bisho.
A total of R146 million would be used to reduce the revolving fund which was currently standing at R341 million.
The fund would be reduced in the next few months with the aim of closing it in the medium-term.
The metro would also receive additional funds to deliver houses in Rosedale, Uit Tyriville, Wells Estate, and Motherwell NU, among others, by the end of the current financial year, the department said.
The Housing Development Agency (HDA) would receive funds to deliver houses in Chatty, Sisulu Village, Joe Slovo West, Soweto-on-Sea, and Walmer.
The Eastern Cape human settlements department would be allocated an additional R48 million for value created in building multi-purpose community centres in Motherwell and Langa, a social housing project in Willowdene, and a housing project in Motherwell, among others, before the end of the current financial year.
The province would use the balance of R100 million to cover commitments outside Nelson Mandela Bay.
“From now onwards, Nelson Mandela Bay is going to be a construction site that should see the benefits being felt by the citizens of the city.
We have managed to stabilise the housing department in the few months we have been there and its now all systems go,” Tshangana said.