Slide Main Title

1
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
MIG NDP
For services infrastructure For social economic infrastructure
Deals with backlog re basic service delivery, especially for poor Provides forward-looking development support to community commercial development
Targets all areas Targets township environments in specific precincts
Partnerships not required Partnerships desired with the private sector
Penalties rewards apply -
Emphasis on capacity building of LG -
7
Thohoyandou
Gauteng
Kimberley
Durban
East London
Cape Town
PE
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 Round Round Round Round All
Appli-cations 1 2 3 4 All
Recd 243 151 109 226 729
Awards 33 20 19 14 86
Muni Other Govern-ment NDPG Other (inc private sector Total
Baseline R1.34bn R1.9bn R8.75bn R17bn R29.3bn

• 86 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

11
Status Quo NDPG Portfolio
Ratio Muni Other Govern-ment NDPG Other (inc private sector
Promised 1 1 7 13
Actual 3 1 205 13
Desired 1 1 1 1
12
Township Regeneration Strategy
A WELL-FUNCTIONING RESIDENTIAL AREA WITH
BUSINESS NODES ATTRACTING PRIVATE SECTOR
INVESTMENT
Soweto Development Initiative Administrative
(JDA) political co-ordination (new Committees)
Pillar/Key Component
Accountability
Key involvement, responsibility action
Cross-cutting involvement action Regions,
Core, committees, etc.

• Guiding Principles
• Sense of Place
• City Future vs. City Past
• Sustainability of SDI, projects programmes

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
Conceptual Nodal Development

• Layout of roads rail basic public transport
• Public space paving, planting street
  furniture
• 3. Initial public buildings (eg clinic,
  library), public transport structures trading
  structures

1. School, recreational park, extension of
   landscaping
2. Public buildings, commercial, mixed use high
   density residential
3. Mixed use, high density residential medium
   density residential ? Demand-driven
4. High density residential medium density
   residential