Cities Support Programme II – An Agenda for Spatial Transformation 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.

Background to the Cities Support Programme (CSP) Presentation Outline Background to the Cities Support Programme (CSP) Introduction to the CSP: The Spatial Transformation Agenda Gear Change – CSP I to CSP II Use of Public Transport as a Catalyst to CSP’s Spatial Transformation Agenda

Background to the Cities Support Programme

Background to the CSP (1) Key element of government’s response to challenges of urban growth faced by South Africa cities Premised on a need for large urban Metros to make a more focused contribution to national economic development and reduction in poverty as well as inequality National Development Plan recognized that sprawling, low density and segregated land-use patterns in South African cities are economically inefficient; recommending a more integrated and spatially-focused approach

Background to the CSP (2) CSP is a demand-driven programme CSP as an umbrella programme covers a range of support mechanism to eight (8) metros and broader intergovernmental environment Direct stakeholders of CSP include internal divisions within National Treasury and National Departments to ensure continuous, consistent and focus lens on challenges posed to and opportunities for urban growth. A results framework focuses on: (1) positioning and managing fiscal framework that supports urban growth; (2) create an enabling environment in which cities can achieve long-term growth strategies and (3) supporting eight (8) cities with implementation of these strategies

Introduction to the CSP: Spatial Transformation Agenda

CSP Elements

CSP Components Area CSP Phase 1 Core City Governance Support Human Settlements Support Public Transport Support Economic Development Support Climate Resilience Support

Introduction to the Theory of Change Average of 10 projects/ component 8 Metros

Strengthen CSP Team Structure Operations Coordinator Systems, monitoring & reporting Finance & SCM Programme Manager Strategic Support & Outcomes Management Knowledge, stakeholder management & Communications City Resilience Coordinator (DEA/DWS/DOE) Economic Development Lead (dti/EDD) Public Transport Lead (DOT) Human Settlements Lead (DHS) fiscal and Governance Lead (NT/DCoG/DPME) 3 City advisors

CSP Placement within IUDF Integrated Urban Development Framework Working Group Cities Support Programme ICM Support Programme Small Towns Programme Implementation Support Programmes Development Partners Forum Steering Committees Land & Infrastructure Spatial Planning Land Gov & Management Urban Infrastructure Inclusive growth & dev Human Settlements Transport & mobility Economic Development Governance Empowered Communities Urban Governance Sustainable Finances Task Teams Reporting Reforms Urban Finance WG Planning Alignment Climate Resilience? Econ Data ERLN successors

CSP Stronger Governance Alignment Budget Forum / Council City Budget Forum City Coordinators Forum Steering Committee Implementing Partners Forum IUDF Working Group IUDF Political Steering Committee CSP Participating Cities National Departments

Gear Change – CSP I to CSP II

CSP I Achievement Strengthening policy clarity and consensus on the need for and approaches to urban transformation for inclusive growth (and policy reform) Building consensus on a measurable outcomes framework to measure progress, including associated reporting reforms Supporting policy & fiscal reform in the areas of human settlements and public transport Strengthening city leadership, vision and plans Supporting city catalytic programme identification and preparation Introducing local fiscal reforms to support integrated city development Building programme management capability for the CSP Achievements to date

Institutionalisation CSP II Focus Institutionalisation Implementation Impact CSP II Focus

Use of Public Transport as a Catalyst to the CSP’s Spatial Transformation Agenda

CSP I Public Transport Achievement CSP Phase 1 Strategic financial review of Phase 1 Bus Rapid Transit (BRT), in particular regarding to affordability; There is also clearer understanding of the financing challenges and substantial reforms successfully carried out to the Public Transport Network Grant (PTNG) budgeting process, including reforms to the application and budget analysis process; Targeted support to specific cities on optimising their costs and enhancing revenues had led to a much clearer understanding of the financial implications of the systems; The grant framework was also changed to write in the requirements for fiscal and financially sustainable integrated public transport networks – the PTNG is now divided into a capital and operation grant, as had been called for; Developed guidelines for improving the quality of Integrated Transport Plans and to provide on-going support to the cities in developing their Integrated Public Transport Networks (IPTNs); Conceptualised and initiated a capacity building program for the National Department of Transport (NDoT). Achievements to date

Hindrances to Inclusive Economic Growth – Public Transport Lens – PT Policy CSP Phase 1 Amidst positive progressive development in public transport policy that positions customer-oriented transport services a number of policy directives have not been achieved despite clear policy clarity Integration (i.e. modal, spatial, institutional and planning integration) not achieved as yet; Intermodalism (i.e. an environment which encouraged use of the most appropriate mode of transport for any particular purpose); New sources of financing for public transport; Public transport function devolution

Hindrances to Inclusive Economic Growth – Public Transport Lens – PT Institutional CSP Phase 1 The NLTA (2009) transformed the scene for transport provision in South Africa by giving the responsibility of functions related to public transport to municipalities. The NLTA (2009) also declared the role of national and provincial government in public transport to be that of providing support, coordination, regulation, monitoring and capacity building. Currently, public transport services in Metros are not managed as a network, so modes of transport compete instead of complementing each other. Additionally, the lack of integrated planning and public transport service delivery has been on a decline. There is consensus in the Public Transport Sector that devolution of public transport functions, in particular rail and Public Transport Operating Grant-based bus, can result in a public transport system that supports inclusive economic growth. Moreover, devolution can only be effective only when related functions are consolidated, the Transport Authority taking on the devolved function(s) is well resourced with strong political accountability, adequate funding and full authority over the network.

Hindrances to Inclusive Economic Growth – Public Transport Lens – PT Funding CSP Phase 1 Need to integrate and align current public transport funding streams; Explore new and more secure revenue sources Any new funding source for public transport should be localised revenue source, and Revenue sources that works in tandem with consolidated transport powers

Institutionalisation CSP II Public Transport Priorities Institutionalisation Impact Implementation CSP II Focus CSP Phase 1 Institutionalise IPTN Toolkits and other knowledge products produced during CSP I Move from planning towards practical implementation of investment programmes and regulatory reforms Achieve modal integration and Transit-oriented Developments within the IPTN framework Strengthening partnerships with other state entities, specifically NDoT; CoGTA; SACN and SALGA

Development Objective: CSP II Public Transport Component Design Summary CSP Phase 1 Support the development of more compact, connected and transit-oriented cities through a programme of spatial transformation that is driven by capable metropolitan governance systems, and supported by enabling policy and regulatory frameworks and an appropriate set of fiscal incentives. Development Objective: Metro’s able to implement Public Transport strategies to accelerate inclusive economic growth and poverty reduction by building more inclusive, productive and sustainable cities; Policy environments that support metros to implement such Public Transport strategies; Fiscal incentives that support metros to implement such Public Transport strategies. Desired outcomes gather, generate and share innovative and appropriate practices in the fields of governance, urban planning, finance, human settlements, public transport, climate resilience, and economic development. CSP Activities Specific five-year objective of institutionalising within national departments, provinces and metros a set of policies, practises and activities which support the development.

ENABLING POLICY ENVIRONMENT CSP II PT Component Intervention Levels METRO SUPPORT FISCAL REFORM ENABLING POLICY ENVIRONMENT IPTN Spatial Planning Support City Modal Integration Impact of Road Asset Provision & Funding on Spatial Form & Spatial Outcomes PT Institutional & Governance Architecture City Capacity Building Programme Public transport Subsidy Policy Support Innovative Funding Methods for Public Transport Rail White Paper Implementation Devolution of Provincial Bus Function MBT Integration Reform 10 projects 8 Metros

National Treasury: Public Finance CSP II Public Transport Component Partnership Framework NDoT SALGA National Treasury: Public Finance Civil Society CoGTA SACN

CSP II Proposed Public Transport Component Strategic Leadership (Not instituted yet) CSP Phase 1 Name and Title Responsibility Department of Transport   Head of Department Chief NDoT Benefactor Mr Mathabatha Mokonyama DDG: Public Transport Strategic leader for NDoT, responsible for overall NDoT-to-NT: IGR relations management National Treasury Ms Malijeng Ngqaleni DDG: Intergovernmental Relations (IGR) Strategic leader for NT, responsible for overall NDoT-to-NT: IGR relations management Ms Sibongile Mazibuko CSP II: Programme Manager Strategic leader for the CSP, responsible for overall programme management

CSP II Proposed Public Transport Component Operational Leadership (Not instituted yet) CSP Phase 1 Name and Title Responsibility Mr Pule Setai   Chief Director: IGR Coordinate activities and involvement with regard to: Giving overall guidance to this process on behalf of NT: IGR / NDoT Ensuring synergy and coordination with regard to NT: IGR/NDoT Public Transport Planning, Monitoring, Reporting, and other process Ensuring NT: IGR/ NDoT own capacity to participate meaningfully Assisting with NT: IGR/ NDoT coordination by avoid reporting and planning clashes pertaining to BEPP, IPTN Plans, PTIPs, Benchmark and Budget Reporting etc. Ms Khibi Manana Chief Director: Public Transport Network Development Ms Malebo Matolong CSP II Public Transport Component Lead Lead on coordinating operational support to NDoT and Metros Give focused guidance on Public Transport Cities Support Programme Ensure partnerships are properly coordinated and managed Foster broader sector stakeholder buy–in pertaining to Public Transport in cities Resources mobilization and management pertaining to public transport technical support to cities Monitor and report performance

CSP II Proposed Public Transport Component Operational Leadership (Not yet instituted) CSP Phase 1 Name and Title Responsibility CSP II Coordinating Committee Chaired by Chief Director: Public Transport Network Development Other NDoT Membership: CD: Rail Regulation, CD: Rail Infrastructure & Industry Development, CD: Rail Operations, CD: PT Regulation, CD: PT Infrastructure & Industry Development Lead on coordinating support for the PT Component overall outcomes: Coordinating Committee to meet quarterly to discuss and report on progress pertaining to the support given to cities Coordinating Team can convene special meetings to deal with emergency and urgent issues pertaining to public transport in cities

CSP II Proposed Public Transport Working Groups CSP Phase 1 Working Groups Responsibility CSP II Rail-based Public Transport (chaired by NDoT Rail Branch) Provide project-level leadership on CSP rail-related projects CSP II Road-based Public Transport (chaired by NDoT Public Transport Branch) Provide project-level leadership on CSP bus, MBT and integrated public transportation and mobility projects Partners / Service Providers World Bank SECO GTAC Development Bank of South Africa (DBSA) CSIR Through the CSP II Public Transport Component Lead, provide project-level technical support for different CSP PT-related projects

Ms Malebo Matolong (PrEng) Thank You Contact Details: Ms Malebo Matolong (PrEng) Tel: 072 317 6776 malebo.matolong@treasury.gov.za