1. 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

2. 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

3. 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!

4. 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

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

6. 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

7. 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

8. 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

9. 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  year programme budget over next years
Possible 2nd Round applications in October (?) 2006