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Council: 2022-07-29

A80 PROPOSED TOWNSHIP ESTABLISHMENT ON PORTION 123 (A PORTION OF PORTION 2) OF THE FARM GROOTVERLANGEN 409 IS.

Report: Executive Mayor: 2022-07-07

1. PURPOSE
   1. The purpose of this report is to inform Council about the approved funding from the Development Bank of South Africa (DBSA) for the proposed Township Establishment on Portion 123 (a Portion of Portion 2) of the Farm Grootverlangen 409 IS.
2. BACKGROUND
   1. Gert Sibande District Municipality requested Lekwa Local Municipality (The Department of Planning and Economic Development) to submit a list of farm portions which they would like to be assisted with funding for township establishment.
   2. Portion 123 (a Portion of Portion 2) of the farm Grootverlangen 409 IS was among the list of farm portions that were submitted to GSDM, (Please refer to Annexure A- The Final Gert Sibande TE Applications).
   3. Portion 123 (a Portion of Portion 2) of the Farm Grootverlangen 409 IS, is an area earmarked for strategic development in the Municipal Spatial Development Framework for Lekwa Local Municipality, 2017. The property will yield approximately 70 erven.
   4. In addition, the Gert Sibande District Municipality (GDSM) requested funding from the Development Bank of South Africa (DBSA) on behalf of the Lekwa Local Municipality and the request by district has been approved by the DBSA. (Please refer to Annexure B1 for Approval letter and Annexure B2 Grant Agreement from DBSA).
   5. Subsequently the Development Bank of South Africa has appointed a service provider by the name of Pfukani-Kusile consulting to undertake the process of the township establishment and an inception meeting for the introduction of the appointed service provider was held on 06 June 2022. (Please Refer to Annexure C for inception presentation).
3. DISCUSSION

1. 1. Formulation of the problem
      1. Lekwa Local Municipality is experiencing a multitude of informal settlements which interferes with land use control and service delivery. The ever-increasing sporadic mushrooming of informal settlements is due to the growing need for serviced stands and access to land. 

1. 1. Motivation
      1. There is a great demand from the community of Lekwa Local Municipality to acquire serviced stands for residential development that demand is currently fuelling land invasions and the mushrooming of informal settlements
      2. A number of interrelated factors have driven the emergence of informal settlements such as population growth, rural-urban migration, lack of affordable housing and serviced stands, insufficient delivery of basic services, economic vulnerability and low-paid work;
      3. These factors result in an ever-increasing need for new township establishments and affordable serviced stands, hence the mushrooming of informal settlement. There is a need to establish townships to allow for the allocation of stands and improved land use management control in Lekwa Local Municipality.
      4. Moreover, the proposed development will promote sustainable functional and integrated human settlements by maximizing resources efficiently whilst enhance the regional identity and unique character of a Lekwa Local Municipality.

1. 1. Organisational and Personnel implications
      1. The appointed Service provider is currently in the process of establishing Project Steering Committees (PSC) to provide support to the broader interest of the municipality in the execution of the project. A list for both the PSC and Technical Steering Committee (TSC) was submitted to the service provider on the 09/06/2022 (Refer to Annexure D for a list of PSC and TSC).
      2. The PSC will provide oversight for the operational issues associated with the feasibility study and the township establishment project support to Lekwa Local Municipality. In addition, the PSC will be responsible for monitoring projects budget, progress, benefits realized and also monitoring risks, quality and timelines of delivery.
      3. PSC will comprise of the following: Delegated representative from Lekwa LM, Delegated representatives from the Development Bank of South Africa (DBSA), Key members from Pfukani-Kusile consulting, Representatives from Gert Sibande District and relevant Sector Departments and State-Owned Entities.
   2. Financial Implications
      1. The DBSA is responsible for cost that will be incurred for the township establishment of Portion 123 (a Portion of Portion 2) of the farm Grootverlangen 409 IS.
      2. The DBSA has appointed a service provider of their choice for the project.
   3. Public/Communication Implication.
      1. The affected community and stakeholders should be notified about the development that is to take place in their vicinity.
      2. The responsible councillors and community leaders of the affected wards will be requested to facilitate the public community consultations.
   4. Strategic focus
      1. The proposed township establishments will avail land to the community and allow for better control and improved service delivery. It is also in line with the strategic development goals of the Municipality as the proposed location is earmarked high density residential development in the Municipal Spatial Development Framework for Lekwa Local Municipality, 2017.

RECOMMENDATIONS BY THE EXECUTIVE MAYOR

1. That the report of the Executive Mayor regarding approved funding for the township establishment of the portion 123 of the Grootvelangen 409 IS by the Development Bank of South Africa (DBSA) BE NOTED.
2. That community consultation BE CONDUCTED in ward 10 with the assistance of the responsible councilors and community leaders on the 11^th July 2022 at Town Hall.
3. That the Municipality CONSIDERS as a matter of urgency the upgrade of the bulk infrastructure to accommodate such proposed township establishments 

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