1. NATIONAL TREASURY INSTRUMENTS IN THE CONTEXT OF LAND REFORM 37TH SOUTHERN AFRICAN TRANSPORT CONFERENCE 09 JULY 2018

2. About the presentation
How National Treasury instruments can assist cities to sustainably accelerate urban land reform.
Land reform in the presentation is narrowly about the acquisition and optimal use of well-located land in urban areas.
Focus on supporting viable public transport.

3. Effects of prevailing spatial forms
Severe structural inefficiency, inhibiting economic growth & requires increasing & unsustainable funding across spheres & sectors, including transport.
Long travelling times contributes to low productivity levels and erodes disposable incomes, for especially the poor.
Compounded by urbanisation and weak institutional responses.

4. An outcomes-based Built Environment Investment Strategy

5. The committed capital budget for transport and logistics is a positive development

6. Interventions must be across all spheres of government

7. Financial and Fiscal Commission Recommendations 2017/18
To enhance the impact on urban development, government should consolidate urban development grants.
COGTA and National Treasury should consolidate the urban development related grants (e.g. integrated city development grant into the urban settlements development grant) to achieve the Integrated Urban Development Framework objectives.
National Treasury should introduce an incentive grant specifically targeted at city compaction

8. Treasury instruments in context
Built Environment Value Chain 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 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

9. Fiscal Framework
Treasury requires cities to develop Built Environment Performance Plans (BEPP) to help grants become effective.
Division of Revenue Act requires cities to invest an increasing proportion of their grant allocations in the Integration Zones identified in their BEPPs.
MFMA requirement to develop Service Delivery and Budget Implementation Plans (SDBIPs)

10. How to get maximum returns from instruments
Cities must develop comprehensive plans e.g. BEPPs.
Deliberately introduce Spatial Budgeting into the National, SOE, Provincial & Municipal budget processes
More outcomes-based toolkits (e.g. IZ Planning Guidelines, models).
Toolkits to bridge the gap between planning and implementation.
Example from BEPP guidelines: The strategy for prioritised Integration Zone(s) should address issues such as public transport planning, identification of precincts, objectives for precincts and phasing, connecting the Integration Zone with the surrounds, land uses within the Integration Zone, development targets, especially for affordable and rental housing, land deals including swops, etc. within the Integration Zone (vs precinct level), public service delivery efficiencies, challenges and possible solutions.

11. Concluding remarks
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 there 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?

12. END OF THE PRESENTATION. THANK YOU.