Neighbourhood Development Partnership Grant 10 October 2007 Presentation to Select Committee on Finance Presented by NDP Unit (National Treasury)

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Presentation transcript:

Neighbourhood Development Partnership Grant 10 October 2007 Presentation to Select Committee on Finance Presented by NDP Unit (National Treasury)

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)

Focus Areas Township areas Strategic spatial-economic development projects –With potential –With critical mass Land use restructuring Stimulating property markets Purchasing power retention Public sector investment as catalyst Leveraging non-governmental investment & partnerships Ensuring municipal championship Kick-starting township regeneration

NDP Unit Operations Established in July 2006 to administer NDPG NDP Unit → Chief Director, 4 Directors & support staff Business Plan approval pending Strategic alliances per project per municipality

Project Stages & NDPG 1 Concept 2 Pre- feasibility 3 Detailed Investiga- tion 4 Business Case & Business Plan 5 Detailed Project Design & Implemen- tation 6 Exit 7 Review CG Award TA Award Technical Assistance Capital Grant Funding Envelope

Building the NDPG Portfolio Stage 1 → 22 Funding Agreements concluded, disbursing funds now Stage 2 → awards approved 6 September 2007 Stage 3 → closed 20 September 2007 Stage 4 → bids early 2008 Target 100 projects ApplicationsStage 1Stage 2Stage 3Total Received Awards3520Pending55

NDPG Estimated Portfolio Values Portfolio Value per Funding SourceStage 1Stage 2Total TAR113.7mR106.6mR220.3m CGR2.3bnR1.9bnR4.2bn Total NDPG over 10 years at current values R2.5bnR1.9bnR4.6bn Investment by MunicipalitiesR500.0mR603.9mR1.1bn Other Levels of Government-R984.0m Other (including Private Sector)R6.3bnR7.7bnR13.9bn Total Project CostsR9.2bnR11.1bnR20.4bn

NDPG as Catalyst for Regeneration Typical projects TA –Regeneration strategies CG –Nodal/precinct projects –Linkages → internal & external_ –General environmental improvements

Project Sizes Project SizeNo of Projects < R50m27 Between R50m & R100m14 Between R100m & R200m8 Between R200m & R500m5 > R500m1 Total55