INDUCTION PACK 3

NDPG Overview

2

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

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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

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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

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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 -

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Thohoyandou

Durban

PE

East LondonCape Town

Gauteng

Kimberley

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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’

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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

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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

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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

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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

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Nodes as a Structuring ElementNodes as a Structuring Element

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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