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Strategic ObjectivesStrategic 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 ObjectivesNDP 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 TownshipsFocus 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 InitiativesNDPG & Other InitiativesType of Intervention Scope Focus
Programme
Cen
tral T
echn
ical
As
sist
ance
Te
chni
cal A
ssist
ance
G
rant
Cap
ital G
rant
Loan
s
Ince
ntiv
es
Ope
ratio
nal/t
rans
ition
al
fund
ing
Subs
idie
s
Trai
ning
Urb
an
Rur
al
Tow
nshi
p
Info
rmal
Set
tlem
ent
Infra
stru
ctur
e
Hou
sing
Econ
omic
deve
lopm
ent
Spat
ial R
estru
ctur
ing
Pove
rty R
elie
f
Nod
al d
evel
opm
ent
Inve
stm
ent (
cape
x)
Who
le to
wns
hip
inve
stm
ent (
cape
x)
Tow
nshi
p Li
nkag
es
Polic
y &
Stra
tegy
Res
earc
h
NDP
ISRDP
NSDP
SACN SCI (DBSA)
SHRP MPCCs (TSCs)
Top 20 Townships
URP
6
MIG vs. NDPG Capital InvestmentMIG 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 -
8
Grant Make-UpGrant 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?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
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Status Quo: NDPG PortfolioStatus Quo: NDPG PortfolioAppli-cations
Round All
1 2 3 4
Rec’d 243 151 109 226 729
Awards 33 20 19 14 86
• 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
NDPG30%
Municipality5%Other Levels of
Government7%
Other Investment (inc Private Sector)
58%
Muni Other Govern-
ment
NDPG Other (inc private sector
Total
Baseline R1.34bn R1.9bn R8.75bn R17bn R29.3bn
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R -
R 5,000,000,000
R 10,000,000,000
R 15,000,000,000
R 20,000,000,000
R 25,000,000,000
R 30,000,000,000
Promised Actual
NDPG Municipality Other Levels of Government Other Investment (inc Private Sector)
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
Status Quo: Status Quo: NDPG NDPG
PortfolioPortfolio
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 StrategyTownship 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
SOCIALDEVELOPMEN
T
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 & CatchmentsTownship 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 ScenariosTownship Development Scenarios
• Nodes as a structuring element• As starting pint for township regeneration• Place where public & private sector interests can be
combined
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 DevelopmentConceptual Nodal Development