WEST RAND DISTRICT MUNICIPALITY Confidential, not for Public Viewing

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PROJECT CHARTER
WEST RAND SUSTAINABLE HOUSING SETTLEMENT
STRATEGY

WEST RAND DISTRICT MUNICIPALITY

C/O PARK STREET SOUTH & 6 STREET
TH

RANDFONTEIN

MAY 2010

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WEST RAND DISTRICT MUNICIPALITY Confidential, not for Public Viewing

DOCUMENT VALIDATION
Name Function Signature Date
Prepared Henk Swanevelder Project Manager 24/05/10
Reviewed Line Manager
Approved Client

DOCUMENT CHANGE RECORD

Revision No Change Note Date Change Description
No.

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WEST RAND DISTRICT MUNICIPALITY Confidential, not for Public Viewing

TABLE OF CONTENTS
PAGE:

1. Project Purpose/Justification..............................................................4
1.1 Business Need/Case...........................................................................................4
1.2 Business Objectives............................................................................................4

2. Project Description...........................................................................6
2.1 Project Objectives and Success Criteria.................................................................6
2.2 Requirements....................................................................................................6
2.3 Constraints........................................................................................................6
2.4 Assumptions......................................................................................................7
2.5 Preliminary Scope Statement...............................................................................7

3. Risks.............................................................................................8

4. Project Deliverables.........................................................................8

5. Summary Milestone Schedule............................................................9

6. Summary Budget...........................................................................10

7. Project Approval Requirements........................................................11

8. Project Manager............................................................................11

9. Authorization................................................................................12

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1. PROJECT PURPOSE/JUSTIFICATION

The purpose of the WRSHSS is to compile an implementation strategy and

programme, action plans and a prioritisation- and funding model of all
associated programmes and projects needed for short-,medium- and long
term sustainable human settlement development in the WRDM and its
constituencies.

1.1 Business Need/Case

The West Rand Regional Master Plan for Housing, 2009, indicated that for
the short-, medium- and long term (2010 – approx. 2020), an additional
almost 140,000 housing units will have to be provided the eradicate the
existing backlogs and to address the current population growth in the
area. It must be pointed out that this 140,000 housing units exclude the
future demand from Merafong City Local Municipality, as this municipality
was only re-demarcated into Gauteng after the study commenced. It
must also be pointed out that this figure only indicates the need in the
housing subsidy (government housing subsidy of approx. R55,000) – and
affordable housing markets (houses from approx. R250,000 – R450,000),
and that the high end housing market (> R500,000) is excluded.

Therefore, in order to align all municipal efforts in service delivery, and to

influence provincial- and national budget spending, it is of paramount
importance that a strategy be devised to make it possible to develop this
amount of houses, but in a sustainable manner. Time for building of the
old RDP type of housing typology are finished and we are now entering a
new dispensation where sustainable human settlements will be
developed.

1.2 Business Objectives

The primary objectives of the Sustainable Human Settlement Strategy for

the West Rand District Municipality can be summarised as follows:

 To compile a Sustainable Human Settlement Strategy for each of

the four local municipalities in the West Rand District and to
consolidate this information at the District Level. This
Sustainable Human Settlement Strategy must build on the work
conducted as part of the West Rand Regional Master Plan for
Housing, 2009.

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 To incorporate and align the Sustainable Human Settlement

Strategy with the contents of all sector plans, on both local- and
district municipal level, including (but not limited to):

o All Infrastructure Strategies and Plans,

o Transport Strategies and Plans,
o Environmental Strategies and Plans
o Local Economic Development Strategies and Plans,
o Social Services Strategies and Plans, and
o Aligning and integrating the above-mentioned Strategies
and Plans with the Integrated Development Plans and
Spatial Development Frameworks of the respective
municipalities and that of the District Municipality.

 To incorporate or formulate proposals to align the Sustainable

Human Settlement Strategy with initiatives such as (but not
limited to) the West Rand Urban Renewal Strategy,
Neighbourhood Partnership Development Grant Initiative, the
Gauteng 20 PTP Programme, and the National Rural
Development Programme, etc.

 To incorporate and align the Sustainable Human Settlement

Strategy with the contents of other applicable National and
Provincial Programmes, Projects and Initiatives.

 To identify Disparities and Conflicts between the above-

mentioned Strategies, Plans, Programmes and Projects on Local
-, Provincial – and National Level and make proposals to address
these disparities and conflicts.

 To compile an Implementation Strategy for Projects and

Programmes for the Sustainable Development of each identified
SDA located within the Local Municipalities as well as the DMA.

 To calculate Cost Estimates for the Implementation Strategy

compiled for each of the identified SDAs located within the Local
Municipalities as well as the DMA.

 To compile an Action Plan for each municipality to execute the

Implementation Strategies and Programmes for each SDA based
on a Prioritisation Model, focussing on short term projects.

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 To propose a Funding Model to fund each Action Plan for each

municipality.

 To compile the Sustainable Human Settlement Strategy in order

to achieve housing accreditation status for the West Rand
District Municipality, and also to enhance efforts and endeavours
for the West Rand to operate as a Uni-City.

2. PROJECT DESCRIPTION

The WRSHSS is a high level strategic plan that will aim to influence and co-
ordinate implementation initiatives and spending from all levels of
government on infrastructure-, housing- and related local government
services planned for the short-, medium- and long term.

2.1 Project Objectives and Success Criteria

See Business Objectives above. Once a consultant was appointed, this

section will further be expanded on.

2.2 Requirements

This project must meet the following list of requirements in order to

achieve success:

 In-binding will be of utmost importance from all stakeholders,

especially the four local municipalities. These municipalities could also
be seen as co-owners of this project.

 It is anticipated that the project sponsor, the DBSA, will have a set of
requirements and this will be included once a consultant has been
appointed.

Additional requirements may be added as and when necessary, with

project sponsor approval, as the project moves forward and after the
consultant has been appointed.

2.3 Constraints

 Possible reluctant participation from stakeholders and project co-

owners.

 Further constraints will be identified once the consultant is appointed.

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2.4 Assumptions

The following are a list of assumptions. Upon agreement and signature of

this document, all parties acknowledge that these assumptions are true
and correct:

 It is assumed that the DBSA will allocate funding for this project. The
appointment of a consultant will therefore be subjected to this. Should
funding not come from the DBSA, and no other source of funding be
secured, this project will have to be terminated.

 It is assumed that all stakeholders and co-owners will actively

participate in this project, will buy into it and will incorporate the
outcome of the project in their future business efforts.

 Further assumptions will be identified once the consultant is appointed.

2.5 Preliminary Scope Statement

 The scope of work includes the collation, evaluation and analysis of

existing documents with a view to their integration to maximize the
developmental potential, as well as to cater for the expected growth of
the region, taking into consideration existing backlogs.

 The study will essentially comprise five processes running parallel to

one another: that of the four local municipalities individually, and the
district as a whole, taking in consideration that extra work might be
needed to bring Merafong City on par to the other municipalities as
they were only recently re-demarcated from the Northwest Province
into Gauteng Province.

 The process will thus comprise the compilation of a Sustainable Human

Settlement Strategy for each of the four local municipalities within the
district municipality, parallel to one another and will involve officials,
political representatives, and the communities from each of these
municipalities at grass root level, as well as representation from
Provincial and National Government where applicable. The technical
process will rely heavily on the participation of officials and political
representatives from the various municipalities, provincial – and
national government in terms of technical inputs and decision making
process. It will thus be a collective process with incremental decision
making and with a focus towards capacity building of all involved in
terms of the contents of this study. The four local processes will

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eventually culminate in a consolidated West Rand District Municipality

Sustainable Human Settlement Strategy.

 During the process the West Rand District Municipality will perform the
roll and function of aligning – and coordinating agent regarding cross-
border issues between various municipalities.

 Further scope statements will be identified once the consultant is

appointed.

3. RISKS

The following risks for the WRSHSS project have been identified. The
project manager will determine and employ the necessary risk
mitigation/avoidance strategies as appropriate to minimize the likelihood of
these risks:

 Insufficient funding.

 Further risks will be identified once the consultant is appointed.

4. PROJECT DELIVERABLES

It must be stated that this section will have to be re-addressed once the
project consultant is appointed. It is therefore proposed that a thorough
project initiation workshop be convened, facilitated by a competent person,
and final deliverables be identified. Any further changes to these deliverables
must be approved by the project sponsor and / or Project Steering
Committee. The following preliminary deliverables must be met upon the
successful completion of the WRSHSS project:

 Implementation Action Plans (IAPs) for identified SDAs, linked to

short-, medium- and long term time-lines. The exact extend of this IAP
must be defined and designed in the above-mentioned proposed
project initiation workshop.

 Regional Project Prioritisation Model.

 An uniform IT driven Project Management Methodology

Implementation System (PMMIS), linked to the municipalities' financial
systems.

 An uniform IT driven Business Plan Generating System (BPGS), linked

to the PMMIS and the municipalities' financial systems.

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 A Funding Model for the IAPs for the SDAs.

 Any further deliverables as identified in the proposed project initiation

workshop.

5. SUMMARY MILESTONE SCHEDULE

The project Summary Milestone Schedule is presented below. As

requirements are more clearly defined this schedule may be modified. Any
changes will be communicated through project status meetings by the
project manager.

These milestones are, however, only a guideline and could be re-defined in

the proposed project initiation workshop.

Milestones are as follows:

 Milestone 1: Assess and confirm SDAs as identified in the West Rand

Regional Master Plan for housing.

 Milestone 2: Identify SDAs for Merafong City LM and amend/add

SDAs to the other LMs and DMA wherever necessary.

 Milestone 3: Incorporate and align all sector plans, programmes,

projects and initiatives of all spheres of Government affecting SDAs
and determine the viability of each SDA.

 Milestone 4: Identify disparities and conflicts within each SDA.

 Milestone 5: Identify beneficiary communities per SDA

 Milestone 6: Compile Land Use Budget per SDA and Compare with
Beneficiary Allocation

 Milestone 7: Compile a Development Concept/Framework per SDA

 Milestone 8: Compilation of a multi disciplinary implementation

strategy for projects and programmes for the sustainable development
of each identified SDA

 Milestone 9: Calculation of cost estimates for the implementation

strategy compiled for each of the identified SDA located within the
Local Municipalities as well as the DMA.

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 Milestone 10: Preliminary prioritisation and phasing of projects and

programmes based on a prioritisation model for short/medium/long-
term sustainable human settlement development per SDA.

 Milestone 11: Compile a comprehensive action plan for each

municipality and for District as a whole to execute the implementation
strategies for each SDA, based on Milestone 10, focussing on short
term projects.

 Milestone 12: Develop a funding model for the comprehensive action

plan for each municipality and for District as a whole.

 Milestone 13: Develop an uniform IT driven PMMIS, linked to the

municipalities' financial systems.

 Milestone 14: Develop an uniform IT driven BPGS, linked to the

PMMIS and the municipalities' financial systems.

 Any further milestones as identified in the proposed project initiation

workshop.

6. SUMMARY BUDGET

A preliminary project budget was requested from the consultants that

completed the West Rand Regional Master Plan for Housing, 2009. This was
purely done to get a basic idea of the costs. The following table contains a
summary budget based on their submission.

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 WEST RAND DISTRICT MUNICIPALITY Confidential, not for Public Viewing

BUDGET BREAKDOWN FOR SUSTAINABLE HUMAN SETTLEMENT STRATEGY FOR WEST RAND DISTRICT
MUNICIPALITY
Mogale City LM Randfontein LM W estonaria LM Merafong LM W RDM (approx.
(12 SDAs) (10 SDAs) (4 SDAs) (SDAs t.b.d.) 30 SDAs)

Ste p 1 Ass e s s ide ntifie d SDAs R 50,000.00 R 50,000.00 R 30,000.00 R 80,000.00 R 0.00

Inte rvie w Lo cal

Ste p 2 R 20,000.00 R 20,000.00 R 20,000.00 R 20,000.00 R 10,000.00
Sta ke ho lde rs fo r Inputs

Ste p 3 P rio ritis a tio n o f SDAs R 10,000.00 R 10,000.00 R 10,000.00 R 10,000.00 R 10,000.00

C o nd uct Bro a d
Ste p 4 Be n e ficia ry Allo ca tio n pe r R 90,000.00 R 90,000.00 R 60,000.00 R 60,000.00 R 30,000.00
SDA

Fo rmula te De ve lo pme nt
Ste p 5 R 100,000.00 R 100,000.00 R 60,000.00 R 70,000.00 R 70,000.00
C o nce pt pe r SDA

C a lcula te De ve lo pme nt
Ste p 6 C a pa city a nd La nd Us e R 80,000.00 R 80,000.00 R 50,000.00 R 70,000.00 R 0.00
Bud ge t pe r SDA

Fo rmula te
Ste p 7 Imp le me nta tion Stra te gy R 80,000.00 R 80,000.00 R 50,000.00 R 60,000.00 R 120,000.00
p e r SDA

C o s ting a nd P ha s ing o f
Ste p 8 P ro je ct/Actio ns pe r SDA R 70,000.00 R 70,000.00 R 20,000.00 R 30,000.00 R 60,000.00
a nd pe r Municipa lity

TO TAL per Municipality R 500,000.00 R 500,000.00 R 300,000.00 R 400,000.00 R 300,000.00

GRAND TOTAL R 2,000,000.00

* All a mo unts a re e xcluding VAT w he re a pplica ble

7. PROJECT APPROVAL REQUIREMENTS

Success for the WRSHSS project will be achieved when all deliverables, as
indicated above, are delivered and / or installed in the WRDM and its four
Local municipalities. Success will be determined by the Project Sponsor, the
Development Bank of Southern Africa, who will also authorize completion of
the project.

8. PROJECT MANAGER

Henk Swanevelder is named Project Manager for the duration of the

WRSHSS Project. Mr. Swanevelder’s responsibility is to manage all project

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tasks, scheduling, and communication regarding the WRSHSS project. Mr.

Swanevelder will coordinate all resource requirements through the Executive
Manager: Infrastructure and Project Management, Mr Danny Govender, of
the WRDM. Mr. Swanevelder is authorized to approve all budget
expenditures up to, and including, the allocated budget amounts, as
determined through the approved procurement process of the WRDM. Any
additional funding, including authorising of contingency amounts, must be
requested through the Project Steering Committee. Mr. Swanevelder will
see to it that monthly updates be submitted to the Project Steering
Committee.

9. AUTHORIZATION

Approved by the Project Steering Committee:

__________________________________ Date:_______________
<Project Steering Committee Chairperson>
<Title>

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