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SA to spend R143bn on housing through public-private partnerships

Posted On Wednesday, 26 February 2014 16:42 Published by
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The state will build 216 000 houses and connect 905 000 households to electricity over the next two years, Finance Minister Pravin Gordhan said in Parliament on Wednesday.

Pravin Gordhan

This is in addition to other housing schemes the state has embarked, in partnership with the private sector and several public-private development institutions.

Delivering his fifth Budget Speech in Parliament, Minister Gordhan said the housing budget for the 2013/14 financial year was R143 billion.

Between 1994 and 2013, government built over 2.7 million houses across the country.

The National Development Plan (NDP) has now recommended that responsibility for housing should shift to municipalities in order to improve coordination of urban programmes.

All metros have been directed to implement programmes to overcome dominant spatial patterns.

The Human Settlements spending focus over the next two years will be on transferring grants to provinces and municipalities to fund the delivery of low income housing, the purchase of land to upgrade informal settlements and the upgrade of some informal settlements.

The urban settlements development grant is expected to deliver more than 215 housing units and upgrade 92 000 services sites in informal settlements.

The integrated city development grant, which is being introduced in this year's budget, will ensure that large, low income communities on the urban edge are better connected to centres of economic and social activity through investments in public transport.

The Treasury says municipalities will receive the grants on condition that they produce built environment plans and that these plans support better coordination of investments and are aligned to national development plans.

Last modified on Wednesday, 26 February 2014 17:00
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