5. Notes on project costs

Project costs can include the following:

Planning Valuation, Facilitator, Land use planner, Project manager.

Land acquisition Land price, conveyancing fees, notarial deed to draw up

and to register, VAT, transfer duties.

Infrastructure DLA requirements.

Running costs Maintenance of infrastructure, pumps, fences etc.

Inspection of land: diesel, transport etc.

In terms of the project cycle, the costs are as follows:

Project identification: Community facilitator, project manager if not a seconded

Member from the TLC.

Project Planning: Valuation, Land use planner - if PDA cannot provide

adequate support for designing feasibility reports and

land use plans/strategic assessment and infrastructure development.

Project appraisal and

transfer: Attorney for drawing up deed of sale, notarial deed,

Land purchase price, conveyancing fees, Deeds office registration fee for title deed and notarial deed.

Project Implementation: Day-to day- costs incurred by management committee (i.e.

Diesel for bakkie for inspection of commonage, etc)

Maintenance costs.

Actual costing of the grant provided by DLA:

The grant provided by DLA covers the land purchase price, a valuation and conveyancing fees. DLA grants are exempted from transfer and stamp duty ito the Provision of Land and Assistance Act, 1993 (Act 126 of 1993) and pays zero-rated VAT where the seller is a VAT vendor.

Land purchase: The grant is equivalent to the market value of the land or agreed price.

Infrastructure development: The grant is up to a maximum of 25% of the land value.