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INDUCTION PACK 3 NDPG Overview

INDUCTION PACK 3 NDPG Overview. Strategic Objectives. Mandate

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INDUCTION PACK 3 NDPG Overview

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  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. 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 Focus on Townships

  5. NDPG & Other Initiatives

  6. MIG vs. NDPG Capital Investment

  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 • 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

  12. Economic Sector Support & Business Node Develop-ment Infras-tructure & Services Planning, Land Use Manage-ment & Land Release Social Develop-ment & Education & Childcare Safety & Security Natural Environ- ment EDU DPTE DPTE SOCIAL DEVELOPMENT JMPD Environmental Management EDU, M&T, JDA, DPTE, MTC, JPC DPTE, Big 5 UACs, EDU DPTE, JPC, EDU SD, EDU, Province & National JMPD, Regions DPTE, Regions, Citiparks & other UACs 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 • School, recreational park, extension of landscaping • Public buildings, commercial, mixed use & high density residential • Mixed use, high density residential & medium density residential → Demand-driven • High density residential & medium density residential

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