NDPG Objectives ‘To provide municipalities with assistance to develop appropriate project proposals for property developments in townships & new residential neighbourhoods that include the construction or upgrading of community facilities, & where appropriate, attract private sector funding & input’ (DoRA, 2006) To fund township projects that provide community infrastructure & create platform for commercial investment that Support project partnerships that improve quality of life & facilitate private sector investment Facilitate mobilisation of ‘dead’ capital in residential stock Support retention of local buying power Enable ongoing economic development National Treasury

Status Quo Dual nature: funds Technical Assistance & Capital Grant allocated for MTEF period NDPG Budget Year 1  R50m: Technical Assistance Year 2  R950m: Mostly Capital Grant Year 1  R1.5bn: Mostly Capital Grant To be in synergy with other grants that have LG focus, not duplication Capacity for Round 1 Unit established in July Outsourced capacity mostly (staff only end 2006) Applications closed end August 2006

Applications to Date 243 applications from over 60 municipalities Aggregate request for R5.1bn for variety of projects costing R47bn in total (but only +R6bn if strip out KZN non-eligible total project costs of R41bn) Includes KZN’s R41bn bulk infrastructure total costs!

Project Categories MPCCs & precinct development form 66% of bids by value Non-eligible applications form 21% of bids (mostly infrastructure) Other bids are for various community facilities

NDPG Process Collation & some database verification in-house High level recommendations & implications, preliminary projects evaluation complete Criteria   National Treasury

High-Level Observations 1 Some applications demonstrate Visionary, ‘big bang’ & ambitious township redevelopment Many sports & community facilities related projects Related to broader development strategic aims of LG’s own IDP, or NDPG Private sector interest emerging strongly especially in bigger township projects, leverage on the increase

High-Level Observations 2 Some applications not compliant Lack of alignment to NDPG goals No municipal Council Resolution Not in a township (often no maps provided) Other emerging issues Township renewal not prioritised enough across SA Big cities under-represented or not represented at all Applications for former ‘white’ nodes on basis of changed demography Applications for areas adjacent to, but not in, but with direct impact on townships Project management capacity in LGs: poor handle on project lifecycle costs & sustainability issues

Going Forward Shortlist of Top 35 projects adopted in principle after review by Treasury NDPG Reference Group Now further verification, budget adjustments, allocations & conditions underway of Top 35

Going Forward Top 35 R88m (TA) + R1.97bn (CG) with total project cost of R4.7bn 22 precincts or town centre developments (with 11 emerging precinct developments) & 3 MPCCs Includes strong private sector investment leverage potential Strategic alliance model  10-15 year programme budget over next 10 - 15 years Possible 2nd Round applications in October (?) 2006