A lack of private sector funding was the biggest challenge to the completion of the N2 Gateway project, housing director-general Itumeleng Kotsoane has said as the flagship housing project reels from yet another setback - the technical insolvency of its housing agency, Thubelisha.
"If we want to deal with the housing backlog, we need to encourage more private sector funding."
Kotsoane said a Section 32 company that could borrow and invest money was to be set up.
This was the only way to make "a dent" in the housing backlog, now at 300 000 homes.
This company, the National Housing Agency (NHA), would take over the N2 Gateway and other housing projects from Thubelisha within the next six months.
The national Department of Housing has said the "politically-divided environment" and the resistance of Joe Slovo residents to moving to Delft to clear land needed for the Gateway project were responsible for Thubelisha's failure to meet its delivery targets.
"That Thubelisha was engaged in delivering a national pilot project in Cape Town, experimenting with and quantifying the delivery of a range of new housing typologies - in a multi-stakeholder, politically-divided environment - also provided challenges," said Kotsoane.
Thubelisha's performance review for 2007/08, presented to Parliament's portfolio committee this week, showed that the company had made a loss of almost R70-million.
Thubelisha would, however, have enough money to continue its mandate until the NHA took over.
Kotsoane said Thubelisha and another state housing agency, Servcon, was being shut as part of the government's rationalisation of state institutions.
"The institutional rationalisation in the housing sector was designed to improve and accelerate housing delivery."
Kotsoane said Thubelisha had a "specific time in history", and there was now normality in the housing market in the townships.
"There were limits on Thubelisha in terms of its mandate and legislation. As it was a Section 21 company, it had to go to the market and raise its own money (for projects)."
The Democratic Alliance has slammed the Department of Housing and Thubelisha for "creating a divisive and politicised housing project" that it claims ignores the housing needs of people in Nyanga, Crossroads, Bonteheuwel and Athlone.
"To date this project has been nothing but a disgrace," said councillor Mzuvukile Figlan.
Meanwhile, some residents of Joe Slovo have agreed to move to temporary areas in Delft.
The Cape High Court ruled in April that more than 4 500 households had to be evicted from Joe Slovo so construction of the next phase of the N2 Gateway project could begin.
Prince Xhanti Sigcawu, general manager of the N2 Gateway project, said about 120 households would have moved voluntarily by the end of the week.
"We are determined to minimise further delays," he said.
Kotsoane said the shutting down of Thubelisha would not affect the delivery of the N2 Gateway project, which was three years past its delivery deadline. He said there was no question that what had been started would be finished. - Cape Times
"If we want to deal with the housing backlog, we need to encourage more private sector funding."
Kotsoane said a Section 32 company that could borrow and invest money was to be set up.
| '...we need to encourage more private sector funding' |
This company, the National Housing Agency (NHA), would take over the N2 Gateway and other housing projects from Thubelisha within the next six months.
The national Department of Housing has said the "politically-divided environment" and the resistance of Joe Slovo residents to moving to Delft to clear land needed for the Gateway project were responsible for Thubelisha's failure to meet its delivery targets.
"That Thubelisha was engaged in delivering a national pilot project in Cape Town, experimenting with and quantifying the delivery of a range of new housing typologies - in a multi-stakeholder, politically-divided environment - also provided challenges," said Kotsoane.
Thubelisha's performance review for 2007/08, presented to Parliament's portfolio committee this week, showed that the company had made a loss of almost R70-million.
| 'To date this project has been nothing but a disgrace' |
Kotsoane said Thubelisha and another state housing agency, Servcon, was being shut as part of the government's rationalisation of state institutions.
"The institutional rationalisation in the housing sector was designed to improve and accelerate housing delivery."
Kotsoane said Thubelisha had a "specific time in history", and there was now normality in the housing market in the townships.
"There were limits on Thubelisha in terms of its mandate and legislation. As it was a Section 21 company, it had to go to the market and raise its own money (for projects)."
The Democratic Alliance has slammed the Department of Housing and Thubelisha for "creating a divisive and politicised housing project" that it claims ignores the housing needs of people in Nyanga, Crossroads, Bonteheuwel and Athlone.
"To date this project has been nothing but a disgrace," said councillor Mzuvukile Figlan.
Meanwhile, some residents of Joe Slovo have agreed to move to temporary areas in Delft.
The Cape High Court ruled in April that more than 4 500 households had to be evicted from Joe Slovo so construction of the next phase of the N2 Gateway project could begin.
Prince Xhanti Sigcawu, general manager of the N2 Gateway project, said about 120 households would have moved voluntarily by the end of the week.
"We are determined to minimise further delays," he said.
Kotsoane said the shutting down of Thubelisha would not affect the delivery of the N2 Gateway project, which was three years past its delivery deadline. He said there was no question that what had been started would be finished. - Cape Times
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