INDUCTION PACK 3 NDPG Overview

2 Strategic Objectives Mandate –“To support neighbourhood development projects that provide community infrastructure & create the platform for other public & private sector development, towards improving the quality of life of residents in targeted underserved neighbourhoods (townships generally)” Purpose: –“A Technical Assistance [TA] Grant aimed at supporting the development of township development plans –A Capital Grant aimed at supporting nodal investment into the construction or upgrading of community facilities, which may attract private sector investment” DoRA

3 NDP Programme Objectives –Promote private sector investment & other public spending in townships –Provide institutional support & technical capacity to municipalities –Direct capital investment into township, nodal & linkage projects –Promote knowledge, best practice & innovation in township development

4 Focus on Townships Challenges –Exclusion by design –Absence of township & township nodal development capacity (forward-oriented versus backlogs-driven) –Limited funding for capital works for public facilities & places –Limited municipal capacity to assemble & align multiple funding sources in single large-scale multi-faceted property development project –Mismatch between capital investment & maintenance & operational budgets Features –Large concentrations of poor households –High levels of unemployment –Slower household income growth –Poor-performing residential property markets –Considerable fiscal burden Opportunities –Limited income retention –Undiversified & marginal local economies –Untapped markets - limited private sector investment

5 NDPG & Other Initiatives

6 MIG vs. NDPG Capital Investment MIGNDP For services infrastructureFor social & economic infrastructure Deals with backlog re basic service delivery, especially for poor Provides forward-looking development support to community & commercial development Targets all areasTargets township environments in specific precincts Partnerships not requiredPartnerships desired with the private sector Penalties & rewards apply- Emphasis on capacity building of LG-

7 Thohoyando u Durban PE East London Cape Town Gauteng Kimberley

8 Grant Make-Up Technical assistance (Schedule 7 mainly, also Schedule 6) –Strategic planning → Township regeneration strategy, business case & business plan) –Capacity → development coordination, construction management –Detailed planning → for capital investment from NDPG → feasibilities, design work Capital Grant (Schedule 6 only) –For any capital cost, as usually spent by councils –To make projects happen Nodal & precinct projects Linkages General improvements Used in conjunction with other grants that have a local government focus → ‘synthesis’

9 What does Leverage mean? Includes –Other government funding streams –Mobilisation any non-governmental support & resources –Private sector –Investor groupings Formal developers Project financiers Equity investment funds Community investment funds Stokvels NGOs, CBOs & other community organisations Cooperatives Any non-government organisation or individual Not purely financial → “sweat equity”, land, in-kind

10 Status Quo: NDPG Portfolio Appli- cations RoundAll 1234 Rec’d Awards awards to 51 municipalities for +135 townships Leverage of Other Funds → NDPG → R8.7bn of total +R29bn project value NDPG is catalyst but perception is that it can ‘do it all’ → changing mindset is challenge MuniOther Govern- ment NDPGOther (inc private sector Total BaselineR1.34bnR1.9bnR8.75bnR17bnR29.3bn

11 RatioMuniOther Govern -ment NDPGOther (inc private sector Promised11713 Actual Desired1111 Status Quo: NDPG Portfolio

12 A WELL-FUNCTIONING RESIDENTIAL AREA WITH BUSINESS NODES ATTRACTING PRIVATE SECTOR INVESTMENT Soweto Development Initiative: Administrative (JDA) & political co-ordination (new Committees) Cross-cutting involvement & action: Regions, Core, committees, etc. Guiding Principles ‘Sense of Place’ City Future vs. City Past Sustainability of SDI, projects & programmes Township Regeneration Strategy Economic Sector Support & Business Node Develop- ment EDU EDU, M&T, JDA, DPTE, MTC, JPC Infras- tructure & Services DPTE DPTE, Big 5 UACs, EDU Social Develop- ment & Education & Childcare SOCIAL DEVELOPMENT SD, EDU, Province & National Planning, Land Use Manage- ment & Land Release DPTE DPTE, JPC, EDU Safety & Security JMPD JMPD, Regions Accountability Key involvement, responsibility & action Pillar/Key Component Natural Environ- ment Environmental Management DPTE, Regions, Citiparks & other UACs

13 Township Nodes & Catchments Concentration of activity in township Typically economic also social, civic, transport –Intensity of land uses –Strong relationship to transport & other movement Nodes are dynamic Nodal hierarchies in urban & rural areas

14 Township Development Scenarios Nodes as a structuring element As starting pint for township regeneration Place where public & private sector interests can be combined

15 Nodes as a Structuring Element

16 1.Layout of roads & rail – basic public transport 2.Public space – paving, planting & street furniture 3.Initial public buildings (eg: clinic, library), public transport structures & trading structures 4.School, recreational park, extension of landscaping 5.Public buildings, commercial, mixed use & high density residential 6.Mixed use, high density residential & medium density residential → Demand-driven 7.High density residential & medium density residential Conceptual Nodal Development