How effective are the NT Spatial Transformation Instruments? Honourable Ministers of Finance and Human Settlements, Mayor Tau, Fellow panelists and distinguished guests I am taking a big picture view and not focusing on human settlements as a sector, but rather on the built environment as a whole.

Presentation Framework Introduction What are the instruments? How effective are they? How can we improve effectiveness?

Introduction

Outcomes-based Public Investment Strategy An Outcomes-based Built Environment Investment Strategy Private Investment Outcomes-based Public Investment Strategy Inclusive Urban Form Household Investment Do more with less Catalyse private sector investment

Inclusive Urban Form

Walkability 400m WALKING DISTANCE 800m WALKING DISTANCE

Walkability Precinct A Precinct B

BEPPs - Built Environment Value Chain Spatial Targeting Intergovernmental project pipeline Capital Funding Implementation Reporting & Evaluation Targeted Urban Management Institutional Arrangements & Operations Budgeting

Spatial Targeting – The Urban Network TOD Straegy Tpt planning included Mass transport on primary routes, with a focus on rail Taxis to be incentivised onto the feeder routes

What are the instruments?

What are the instruments? BEVC Component Instrument Public Transport Dimension Spatial Planning BEPP Guidelines Across each part of the BEVC. SDF & IPTN alignment Urban Network Strategy Connecting prioritised IZ nodes IZ Planning Guidelines Urban Hub Precinct Planning Guidelines Location of PT facilities at precinct level Informal Settlement Upgrading Guidelines Regional connectivity NDP TA Grant Funding of IZ and precinct planning Intergovernmental Project Pipeline IDP alignment PT as the most important IZ project Precinct Planning Toolkit PT as one project type part of multi-sector/sphere pipeline Capital Funding Funding mix (own/grants/borrowing/VC) DORA PT and Human Settlement grant allocation/s, Conditions MFMA/Budget Circulars PT capital budget SDBIP IDP and municipal budget alignment for PT ICDG PT investment NDPG Capital Grant Precinct PT and NMT investment Borrowing Policy Borrowing for PT investment Implementation PT procurement CIDMS PT projects Targeted Urban Management Portfolio approach towards nodal segmentation/TOD Precinct Management Guidelines TOD Urban Development Zone Tax Incentive CBD TOD Development Charges Policy Private sector TOD Institutional Arrangements & Ops Budget Sector alignment within and between spheres. Political dimension PT Ops budget Reporting & Evaluation PT inputs, activities, outputs and outcomes Sectoral and sphere planning creates silos. ST can fix this Missing link between Planning and funding Challenges within each component and the linkages and sequencce between them

How effective are the instruments?

How effective are the instruments? Output/Outcome Levels Level of high density, mixed-use investment in targeted Integration Zone (TOD) precincts Private Sector Commercial, Retail and Light Industrial Residential Households investment in housing Public Sector Transport options to regional opportunities Community and Government facilities Level of investment in spatially prioritised informal settlements Prioritised, established commercial nodes and CBDs Level of affordable housing investment (public and private) Affordable and safe public transport options from marginalised residential areas

How effective are the instruments? Input/Activity Levels To what extent is economic development, housing and transport addressed in each part of the BEVC? How many targeted zones/nodes are there? How realistic is the extent of the targeted zones/nodes – is this affordable to the public & private sectors and households? Is their economic appetite for this? To what extent is spatial prioritisation aligned between sectors within and between spheres/SOEs? Between IPTN and BEPP Integration Zone TOD nodes? Degree to which outcomes-based spatial prioritisation is altered by politicians How effective is the overall funding mix? What percentage of the total capital budget (all spheres) is being allocated to the investment in the 3 spatial targeting categories? Is the UDZ leverage in CBDs sufficient?

UDZ Cost-Benefit Analysis – 2014 R14.4 billion

How can we improve the effectiveness of the instruments?

How can we improve effectiveness? Introduce Spatial Budgeting into the National, SOE, Provincial & Municipal budget processes – (political) agreement on spatial priorities (Integration Zone/TOD nodes) and intergovernmental project pipelines per TOD node? Assignment of housing and transport functions to qualifying municipalities Role of DORA/grant conditions – PRASA, Transport, Human Settlements Balance between persuasion and prescription More outcomes-based toolkits (e.g. IZ Planning Guidelines) BEPP to be strengthened and established as the instrument that integrates other built environment instruments (across government) Programme preparation guidelines to be released to bridge the gap between spatial planning and implementation Better private sector linkages via SAPMI More support towards improved spatial targeting, i.e. affordability/market absorption analysis

Thank You