There are 271 blocked projects comprising of 262 blocked projects for Breaking New Ground housing units and nine distressed social housing projects. Picture: Ayanda Ndamane / Independent Newspapers
AT least three provinces have indicated that they would need more than R7.7 billion to complete more than 260 housing projects that have stalled for various reasons across the country.
Five other provinces have not disclosed the amounts to be budgeted to resuscitate their stalled projects, a move that sees the expenditure to be incurred totalling further billions of rand.
This was revealed by Human Settlements Minister Thembi Simelane when she was replying to EFF MP Marshall Dlamini, who enquired about the blocked housing projects in each of the provinces and the reasons the projects have stalled.
Simelane said there were 271 blocked projects comprising 262 blocked projects for Breaking New Ground housing units and nine distressed social housing projects.
“These projects face diverse challenges ranging from contractor abandonment to infrastructure shortages and social disputes,” she said.
Simelane said the most severely impacted provinces were KwaZulu-Natal, Free State, and the North West, with substantial financial allocations already committed, particularly in KwaZulu-Natal, where over R5.8 billion has been budgeted.
In her written response, Simelane said there were 16 stalled housing projects plus one social housing project in the Eastern Cape.
“The reason for blocked projects is poor contractor performance and lack of municipal bulk infrastructure.”
She said the financial implication for the stalled projects was approximately R1.6 billion.
“The province will use framework agreements to appoint skilled professionals and contractors to expedite the completion of these projects.”
In KwaZulu-Natal, there were 46 blocked housing projects and two distressed social housing projects.
The delay in the completion of the projects was due to social resistance, bulk infrastructure challenges, and land invasions.
Simelane also said the province would need R5.8 billion to complete the stalled projects.
“The province has finalised an implementation plan and is actively engaging stakeholders to resolve the challenges,” she said.
The minister said the Western Cape needed R256.64 million for its 10 blocked projects that were delayed due to approval of beneficiaries, contractor inefficiencies, and incomplete documentation.
“Beneficiary records will be updated, and pending approvals will be expedited,” she said about plans to resuscitate the Western Cape housing projects.
She also said the Northern Cape has eight stalled housing projects that were abandoned by contractors.
The province needs R113 million to resuscitate the stalled projects and it plans to appoint new contractors to finalise the projects.
Simelane’s response showed that Free State’s 60 housing and one social housing projects were stalled due to contractors abandoning projects after receiving trench payments.
She said the province will conduct site verifications and municipalities will collaborate to resume construction in phases.
In Gauteng, there were 45 housing and three social housing projects that came to a standstill after contractors abandoned them.
Simelane said structural assessments of the incomplete houses have been completed at R18 million.
“An implementation plan has been put in place to restart the projects with 126 units, with construction designs undertaken,” she said.
Limpopo has 27 stalled projects owing to poor contractor performance, demands from business forums, and inaccessible terrain.
According to Simelane, the provincial department will conduct structural audits of 1 500 units, and then appoint new contractors to continue the work.
“The province has committed to construct 305 units in the 2024/2025 financial year, with a budget of R7.9 million.”
In Mpumalanga, there are two blocked housing projects and two distressed social housing projects.
The projects have challenges owing to a lack of municipal bulk infrastructure and illegal ground-floor occupations.
Simelane said plans to evict illegal occupants and restore site viability were in progress.
In the North West, there were 48 stalled projects due to misappropriation of funds by municipalities and escalating material costs.
Simelane said the houses’ structural conditions were being assessed and funds will be reallocated to ensure completion.
mayibongwe.maqhina@inl.co.za