TODAY MARKS THE BEGINNING OF PHASE TWO OF THE N2 GATEWAY PILOT PROJECT

The construction of Phase two of the N2 Gateway pilot project in Cape Town
has now officially begun. This was confirmed today in a meeting between the
Western Cape Housing and Local Government MEC, Mr Richard Dyantyi, the MEC
for Community Safety, Mr Leoanard Ramatlakale and the Minister of Housing Ms
Lindiwe Sisulu.

This announcement comes after the successful completion of the first phase
of the pilot project. Speaking today after the meeting, Minister Sisulu said
all 705 housing units have been completed and the allocation process of
families has already started. She said discussions with the communities to
work on the modalities of occupation have already kicked off and that the
province will determine the date of occupation and make an announcement in
due course.

The purpose of the meeting of these spheres of government was to confirm the
readiness of phase one for occupation and to also review progress made on
the second phase of the project. The finishing touches of the soft
landscaping being undertaken on the first phase of the project will not
impede the occupation.

Residents now have an option of whether they want to rent or own a property.
Phase one consists of rental stock and all backyarders from the areas of
Langa, Guguletu, Bonteheuwel, Bokmakierie and Nyanga are invited to apply to
be considered to rent. An aggressive communications and media advertising
campaign will be undertaken to invite interested people who live within this
radius to submit their names. A special task force in the office of the
Western Cape MEC will oversee the processing of applications.

"Despite the hiccups, the N2 Gateway project is a success on a scale that
has never been attempted in the history of housing construction in this
country", said Minister Sisulu.

Regarding the second phase of the project, the meeting confirmed that the
construction of 1400 temporary units at Delft 7-9 to temporarily re-locate
the existing residents of Joe Slovo to enable work to begin has also
commenced.
The MEC is engaging in a consultation process with the community where he is
communicating these processes and options that residents have.
"When the project is completed, it is envisaged that 22 000 houses, a
combination of rental, ownership through Government housing scheme and
credit link through financial institutions will replace the shacks that are
currently occupying the land adjacent to the N2 national road from the City
of Cape Town. This is a new concept which needs to be explained to the
people" said the MEC, Mr Richard Dyantyi.

The N2 Gateway project is a pilot project of the Government's Comprehensive
Human Settlement Plan approved by the Cabinet in September 2004. This
project will demonstrate the new way of building human settlements with all
basic social and economic amenities accompanying the houses.

Phase two of the project is run along different lines and will be run
entirely by Thubelisha Homes. The government structures that have been
overseeing and managing phase one have now pulled back. It is no longer
necessary for government to be hands on in this phase.

ENDS

Enquiries: Minister of Housing Spokesperson
Monwabisi Maclean
083 634 5199
monwabisi@housing.gov.za
www.housing.gov.za

Western Cape Housing and Local Government MEC Spokesperson
Vusi Tshose
083 581 5265
Vtshose@pgwc.gov.za