CommuniTgrow: Creating Sustainable Urban Economies

1. www.communiTgrow.com info@communiTgrow.com +27 (21) 689 8764

3. communiTgrow • a private company operating on a social enterprise model • designs, manages and implements city-scale contextualized urban economies in a holistic and integrated way to create communities that have access to: • Affordable housing • Education institutions • Healthcare facilities • Civic facilities and amenities • Basic services utilities designed on sustainable regenerative green technology • Technologically advanced urban transport, ICT and urban management networks • Permanent and sustainable jobs within the urban economy • All located within safe and walkable neighbourhood based green environments

4. communiTgrow’s Wescape Wescape is a private sector driven, designed, financed and implemented city-scale urban economy currently in process of delivery utilizing the communiTgrow model Estimated High Level Projections for Wescape over 20 years 200 000 Households300 000 Jobs200 Crèches8 Secondary Clinics25 Sports Grounds Eco industry Innovation Hub 800 000 Residents120 Schools20 Primary Clinics15 Community Centres4 Police Stations & Hospitals Centres for regenerative learning

5. Wescape Transition to an Urban Economy An integrated urban economy template for replicable learning cities

6. Comparative Dynamics & Urbanization Wescape: - 3100 ha - 15 – 20 years construction time • R140 bn construction cost • Peak targeted 200 – 300 000 jobs - 25km from Cape Town city centre • Located within Cape metropole, after the recently announced amendment to the urban edge approved by the CoCT and PGWC. Wescape is an enabler and conduit for high impact sustainable economic growth in the Cape Metropole, Western Cape, and National economies. Kusile Power Station: - 1355 ha - 8 – 10 years construction time - R169.7bn construction cost (Jul 2012) - Peak 12000 direct jobs during construction, 600 jobs at full operational capacity - Stated as a mega-project for SA Gauteng city region is an integrated cluster of cities, towns and urban nodes. It is the largest contributor to National GDP. - 47.7% of national employee remuneration - 50.4% of national company turnover - Jhb city centre to Midrand – 26.7km - Jhb city centre to Pretoria – 59.8km The single largest enabler of high impact economic stimulus in our National and Continental Economy is URBANIZATION (2 Billion by 2050; 70% urbanized). It already demands economic, social and public infrastructure beyond supply. The communiTgrow model is a holistic solution that embraces urbanization, and delivers a sustainable and regenerative urban economy.

7. National Social & Economic Priorities The two largest challenges facing South Africa: • job creation, especially for the young and unskilled • affordable housing The communiTgrow model is designed to create a significant amount of long-term jobs (especially for young & unskilled youth) through the development of city-scale urban centres, complete with thousands of residences, retail, commercial and industrial economic opportunities. Government economic stimulus drivers and enablers: • National Development Plan • New Growth Path • National Infrastructure Plan • Infrastructure Development Bill The communiTgrow model significantly captures and is aligned with national priorities to create economic stimulus ... ...at scale

8. Significance of Infrastructure Development Bill IDB object and definitions: “To provide for the facilitation andco-ordination of public infrastructure developmentwhich is of significant economic or social importance to the Republic; to ensure that infrastructure development in the Republic is given priority in planning, approval and implementation; to ensure that the development goals of the State are promoted through infrastructure development; to improve the management of such infrastructure during all life-cycle phases, including planning, approval, implementation and operations; and to provide for matters incidental thereto.” “infrastructure” means installations, structures, facilities, systems, services or processes relating to the matters specified in Schedule 1 and which are part of the national infrastructure plan. “strategic integrated project” means a public infrastructure project or group of projects contemplated in section 7;

9. Recommendation 1 • PRIVATE SECTOR APPLICABILITY • The Bill has been drafted on the basis of State-led projects only, and therefore overlooks the potential applicability to private sector mega infrastructure projects, eg. Wescape, which addresses at least 10 of the 17 identified project types in Schedule 1 of the Bill, at significant scale • Private sector developmental impact mega projects are risk biased towards the private entity and do not share risk on an equitable base with Government • However, an enabling regulatory environment can significantly reduce this risk and encourage private investment in social infrastructure • By default Wescape is a PPP as bulk services infrastructure will be handed over to the CoCT as fixed assets over time • communiTgrow Recommendation 1: • Clear mechanisms to be instituted to provide for submission & approval of private sector SIPs, to access the IDB as an enabler for strategic, integrated, high economic impact project delivery. • Experienced Business Sector non-conflicted Steering Committee participation to guide business premised decision making. • PICC review of private sector concepts such as communiTgrow urban economy model to be approved as State mandated projects for national roll out.

10. Recommendation 2 2. PRIVATE SECTOR INCENTIVES The private sector’s contribution and willingness to engage in strategic, integrated mega projects on an equitable risk basis, where financial, design, implementation, operational and maintenance risk are substantially absorbed from Government risk, requires clear incentive mechanisms as an enabler to buy-in and participation. • communiTgrow Recommendation 2: • Tax incentives should be explored with National Treasury • Preferential access to funding should be explored, as examples, by way of DFI’s and utilization of State mandated retirement funds to invest in private sector SIPs. • A clear process and framework for equitable risk sharing to be developed and instituted in the Bill.

11. Thank you www.communiTgrow.com info@communiTgrow.com +27 (21) 689 8764 @communTgrow @WescapeCT