Housing projects in limbo while thousands wait

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25-04-2023
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IOL
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Several housing projects earmarked for people in informal settlements have not materialised, despite a huge demand and a growing backlog.

As early as 2020 the City was warned that the cancellation of tenders due to the responsiveness clause would have a ripple effect on housing projects.

The warning came after a tender for the construction of civil and electrical infrastructure and top structures for farm 1438 in Sir Lowry's Pass Village was referred back to the Bid Adjudication Committee (BAC).

The committee raised concerns pertaining to a "responsiveness" criterion which required that the tenderer should provide proof that the company operates from an office within 100km of the City of Cape Town.

An internal memorandum written in March 2020 which the Weekend Argus has seen, advised that the criterion seemed to be adequately met.

"We bring to your attention that should a decision be made to cancel this tender: the ramifications thereof will be significant. These terminations result in a knock-on effect which ultimately causes huge time delays to the projects in procuring another contractor," the memo warned.

A different housing development project by Airports Company South Africa (ACSA) known as the Symphony Way Corridor has stalled for three years. The project involved the relocation of three informal communities, namely Freedom Farm, Malawi Camp and Blikkiesdorp into formal housing.

Cape Town International Airport (CTIA) regional general manager, Mark Maclean, said: "We understand that all works are currently suspended, to allow the City, the law enforcement agencies and the contractors an opportunity to identify, agree and implement measures that would protect the development.“

ACSA and the City signed a Memorandum of Agreement (MoA) regarding the development of a strip of land located on the eastern and western side of Symphony Way, now known as Symphony Way Development Corridor and includes the Symphony Way Urban Park.

The airports company required the land for the airport expansion, commercial and industrial development which in turn would likely contribute to the social and economic opportunities for the surrounding communities, said Maclean.

The work included the realignment of the existing runway and the construction of a second parallel runway.

The City's Human Settlements Directorate was solely responsible for the housing component, the relocation of the three informal communities, provision of formal housing and awarding of housing tenders.

And the memo also highlighted that in "recent years" three housing projects, namely Delft, Belhar-Pentech and Kannonkop, the services of contractors were terminated as a result of poor performance.

"These terminations result in a knock-on effect which ultimately causes huge time delays to the projects in procuring another contractor.

As a result, the City inevitably also incurs additional costs to appoint another contractor to complete the works. During this period of abeyance, vandalism and theft occurs on site, resulting in the City having to appoint another contractor to rectify the vandalised works, as well as to appoint additional security companies to secure the site," said the communique.