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R500 million to bolster housing delivery in Nelson Mandela Bay

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 inadequacy of suitable housing in the Eastern Cape Province.

"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," said Human Settlements’ Director-General Mbulelo Tshangana.

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 is a bridging finance mechanism used by the metro to pay contractors whilst awaiting payment from Bhisho.

A total of R146 million of these funds would be used to reduce the revolving fund which is currently standing at R341m. The fund would be reduced in the next few months with the sole purpose of closing it in the medium term.

The Metro would also receive an additional R83 million to deliver 803 houses in Rosedale; 187 in Tyreville (Uitenhage) ; Wells Estate 603; Motherwell NU 29; and Joe Slovo Uitenhage by the end of the current financial year.

The Housing Development Agency (HDA) will receive R122 million to deliver 921 houses in Chatty 1060; Sisulu Village; Joe Slovo West; Chatty 491; Soweto-on-Sea and Walmer.

On the other hand, the Eastern Cape Department of Human Settlements would be allocated an additional R48 million for value created in building Multi-Purpose Community Centres in Motherwell and KwaLanga; social housing project in Willowdene and a housing project in Motherwell 1262, among others, before the end of the current financial year.

The province would also 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 area. We managed to stabilise the housing department in the few months we have been there and its now all systems go,” said Tshangana, the new Director-General for the National Department of Human Settlements.


Issued by the Ministry of Human Settlements. For more information please contact Xolani Xundu at 083 788 5747.

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