INDUCTION PACK 3
NDPG Overview
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
2
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
3
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
4
Programme
SACN
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SCI
(DBSA)
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SHRP
MPCCs
(TSCs)
Top 20
Townships
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URP
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NDP
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ISRDP
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NSDP
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5
Research
Policy & Strategy
Township Linkages
Nodal development
Investment (capex)
Whole township
investment (capex)
Scope
Poverty Relief
Spatial Restructuring
Economic development
Housing
Infrastructure
Informal Settlement
Township
Type of Intervention
Rural
Urban
Training
Subsidies
Operational/transitional
funding
Incentives
Loans
Capital Grant
Central Technical
Assistance
Technical Assistance
Grant
NDPG & Other Initiatives
Focus
    
  
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
-
6
Thohoyando
u
Gauteng
Kimberley
Durban
East London
Cape Town
PE
7
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’
8
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
9
Status Quo: NDPG Portfolio
Applications
Round
3
All
1
2
Rec’d
243
151
109 226 729
Awards
33
20
19
Other Investment (inc
Private Sector)
58%
4
14
86
Other Levels of
Government
7%
Baseline
NDPG
30%
Municipality
5%
Muni
Other
Government
NDPG
Other (inc
private
sector
Total
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
10
Status Quo:
NDPG
Portfolio
R 30,000,000,000
R 25,000,000,000
R 20,000,000,000
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
R 15,000,000,000
R 10,000,000,000
R 5,000,000,000
RPromised
Actual
11
NDPG
Municipality
Other Levels of Government
Other Investment (inc Private Sector)
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)
Planning,
Social
Land Use
DevelopManagement &
ment &
Education
Land
&
Release
Childcare
Economic
Sector
Support &
Business
Node
Development
Infrastructure &
Services
Safety &
Security
Natural
Environment
EDU
DPTE
DPTE
SOCIAL
DEVELOPMENT
JMPD
Environmental
Management
Accountability
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
Key
involvement,
responsibility
& action
Pillar/Key
Component
Cross-cutting involvement & action: Regions, Core, committees, etc.
Guiding Principles
•‘Sense of Place’
•City Future vs. City Past
•Sustainability of SDI, projects & programmes
12
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
13
Township Development Scenarios
• Nodes as a structuring element
• As starting pint for township regeneration
• Place where public & private sector interests can be
combined
14
Nodes as a Structuring Element
15
Conceptual Nodal Development
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 16
residential