Neighbourhood Development Partnership Grant

10 October 2007 Presentation to Select Committee on Finance

Presented by NDP Unit (National Treasury)

NDPG Objectives

“To provide municipalities with assistance to develop appropriate project proposals for

property developments in townships & new residential neighbourhoods that include the

construction or upgrading of community facilities, & where appropriate, attract private

sector funding & input”(DoRA, 2006)

Focus Areas

• Township areas• Strategic spatial-economic development projects

– With potential – With critical mass

• Land use restructuring• Stimulating property markets• Purchasing power retention• Public sector investment as catalyst• Leveraging non-governmental investment &

partnerships• Ensuring municipal championship• Kick-starting township regeneration

NDP Unit Operations

• Established in July 2006 to administer NDPG

• NDP Unit → Chief Director, 4 Directors & support staff

• Business Plan approval pending• Strategic alliances per project per

municipality

Project Stages & NDPG

1

Concept

2

Pre-feasibility

3

Detailed Investiga-tion

4

Business Case & Business Plan

5

Detailed Project Design & Implemen-tation

6

Exit

7

Review

CG AwardTA Award

Technical

AssistanceCapital Grant

Funding Envelope

Building the NDPG Portfolio

• Stage 1 → 22 Funding Agreements concluded, disbursing funds now

• Stage 2 → awards approved 6 September 2007

• Stage 3 → closed 20 September 2007• Stage 4 → bids early 2008• Target 100 projects

Applications Stage 1 Stage 2 Stage 3 Total

Received 243 151 +153 394

Awards 35 20 Pending 55

NDPG Estimated Portfolio Values

Portfolio Value per Funding Source Stage 1 Stage 2 Total

TA R113.7m R106.6m R220.3m

CG R2.3bn R1.9bn R4.2bn

Total NDPG over 10 years at current values

R2.5bn R1.9bn R4.6bn

Investment by Municipalities R500.0m R603.9m R1.1bn

Other Levels of Government - R984.0m R984.0m

Other (including Private Sector) R6.3bn R7.7bn R13.9bn

Total Project Costs R9.2bn R11.1bn R20.4bn

NDPG as Catalyst for Regeneration

• Typical projects• TA

– Regeneration strategies

• CG– Nodal/precinct projects– Linkages → internal & external_– General environmental improvements

Estimated Investment by Others (inc Private Sector)

69%

Estimated Investment by Municipality5%

Estimated Investment by Other Levels of Government

5%

Estimated NDPG Funding Envelope21%

Ref Township1_037 Swalala (Phola)1_038 Kanyamazane1_043 Mpophomeni1_064 Nkowankowa & 4 MPCCs1_065 Katorus (Katehong): Palmridge1_066 Kwa-Thema1_067 Kwatsaduza1_068 Mayfield/Daveyton/Etwatwa 1_069 Tswelopele/Tembisa 1_070 Tsakane/Duduza (Blue Gum)1_071 Mining belt informal settlements 1_072 Katlehong, Tembisa, Wattville, Daveyton, Duduza 1_077 Tokyo Sexwale, Jeffrey's Bay1_079 Bridgton1_092 Ndwedwe1_097 Khwezi-Naledi1_103 Masifunde1_106 14 Townships1_107 Greater Edendale1_108 Greater Edendale1_169 Kwamashu1_171 Inanda, Ntuzuma, Kwamashu1_176 Inanda, Ntuzuma, Kwamashu1_182 KwaZakhele1_183 Motherwell1_185 Ngangelizwe1_189a Belgrade1_189b Highflats1_223 Soweto1_226 Galeshewe1_230 Galeshewe1_237 Maitland Garden Village1_241 Ikageleng1_242 Soweto1_243 Soweto 2_049 Khayelitsha2_034 Mitchells Plain2_032 Langa & Athlone2_097 All Townships2_040 Diepsloot2_128 KwaDabeka & Clermont2_033 Khayelitsha2_060 Rini2_024 Mhluzi2_028 Helenvale2_044 Soweto2_045 Soweto2_030 Gqebera2_112 Soweto 2_102 Orange Farm2_079 Rooikoppen2_130 Mpumalanga2_029 New Brighton2_031 Nyanga2_127 Umlazi, Malukazi & Others

Project Sizes

Project Size No of Projects

< R50m 27

Between R50m & R100m 14

Between R100m & R200m 8

Between R200m & R500m 5

> R500m 1

Total 55

Ref Township Project Municipality Province Total NDPG 1_037 Swalala (Phola) Business & Services Node Mbombela Local Municipality Mpumalanga 22,000,000 1_038 Kanyamazane Urban Renewal project Mbombela Local Municipality Mpumalanga 18,000,000 1_043 Mpophomeni Township Node uMngeni Local Municipality KwaZulu Natal 18,000,000 1_064 Nkowankowa & 4 MPCCs NkownakowaTown Centre & MPCCs Greater Tzaneen Local Municipality Northern Province 84,800,000 1_065 Katorus (Katehong): Palmridge High Street Development Ekurhuleni Metropolitan Municipality Gauteng 10,500,000 1_066 Kwa-Thema Development & Community Node Ekurhuleni Metropolitan Municipality Gauteng 10,500,000 1_067 Kwatsaduza Large area social facilities Ekurhuleni Metropolitan Municipality Gauteng 51,750,000 1_068 Mayfield/Daveyton/Etwatwa Economic & Community Node Ekurhuleni Metropolitan Municipality Gauteng 21,320,000 1_069 Tswelopele/Tembisa Economic & Community Node Ekurhuleni Metropolitan Municipality Gauteng 21,320,000 1_070 Tsakane/Duduza (Blue Gum) Community Node Ekurhuleni Metropolitan Municipality Gauteng 21,320,000 1_071 Mining belt informal settlements Upliftment of informal settlements & development Ekurhuleni Metropolitan Municipality Gauteng 21,320,000 1_072 Katlehong, Tembisa, Wattville, Daveyton, Duduza Rehabilitation & Renewal Ekurhuleni Metropolitan Municipality Gauteng 21,320,000 1_077 Tokyo Sexwale, Jeffrey's Bay Eyabantu Neighbourhood Centre Kouga Local Municipality Eastern Cape 23,931,000 1_079 Bridgton Business Centre Upgrading Oudtshoorn Local Municipality Western Cape 35,800,000 1_092 Ndwedwe Village Centre Ndwedwe Local Municipality KwaZulu Natal 255,350,000 1_097 Khwezi-Naledi Sports Facility & Economic hub Senqu Local Municipality Eastern Cape 20,500,000 1_103 Masifunde High Street Upgrading Knysna Local Municipality Western Cape 52,000,000 1_106 14 Townships Tsosoloso Programme (Public Spaces) City of Tshwane Metropolitan Municipality Gauteng 730,000,000 1_107 Greater Edendale Qokololo Stadium Refurbishment Msunduzi Local Municipality KwaZulu Natal 10,700,000 1_108 Greater Edendale Ekhrosini Livestock Market Msunduzi Local Municipality KwaZulu Natal 27,000,000 1_169 Kwamashu Town Centre Renewal eThekwini Metropolitan Municipality KwaZulu Natal 62,000,000 1_171 Inanda, Ntuzuma, Kwamashu INK URP eThekwini Metropolitan Municipality KwaZulu Natal 223,960,000 1_176 Inanda, Ntuzuma, Kwamashu Bridge City eThekwini Metropolitan Municipality KwaZulu Natal 81,100,000 1_182 KwaZakhele Njoli Square Redevelopment Nelson Mandela Metropolitan Municipality Eastern Cape 122,600,000 1_183 Motherwell Sustainable Community Development Nelson Mandela Metropolitan Municipality Eastern Cape 29,150,000 1_185 Ngangelizwe Sustainable Community Development Nodes King Sabata Dalindyebo Local Municipality Eastern Cape 58,900,000 1_189a Belgrade MPCC/TSC uPhongolo Local Municipality KwaZulu Natal 6,600,000 1_189b Highflats MPCC/TSC Sisonke District Council KwaZulu Natal 6,600,000 1_223 Soweto Kliptown Parking & Other City of Johannesburg Metropolitan Municipality Gauteng 35,065,000 1_226 Galeshewe Business Centres Renewal Sol Plaatje Local Municipality Northern Cape 152,300,000 1_230 Galeshewe Heritage Area Conservation Sol Plaatje Local Municipality Northern Cape 17,580,000 1_237 Maitland Garden Village Oude Molen & Maitland Redevelopment City of Cape Town Metropolitan Municipality Western Cape 102,000,000 1_241 Ikageleng MPCC/TSC Ramotshere Moiloa Local Municipality North West 10,330,000 1_242 Soweto Bara Central Precinct (Baragwanath) City of Johannesburg Metropolitan Municipality Gauteng 37,340,000 1_243 Soweto Orlando eKhaya (Heroes Bridge & Link Road) City of Johannesburg Metropolitan Municipality Gauteng 36,700,000 2_049 Khayelitsha Kuyasa & Other Nodes City of Cape Town Metropolitan Municipality Western Cape 270,000,000 2_034 Mitchells Plain Mitchells Plain & Lentegeur CBDs City of Cape Town Metropolitan Municipality Western Cape 238,000,000 2_032 Langa & Athlone Athlone Power Station Redevelopment City of Cape Town Metropolitan Municipality Western Cape 130,000,000 2_097 All Townships Johannesburg Secondary Property Market City of Johannesburg Metropolitan Municipality Gauteng 109,000,000 2_040 Diepsloot Diepsloot South City of Johannesburg Metropolitan Municipality Gauteng 108,000,000 2_128 KwaDabeka & Clermont Clermont Urban Renewal eThekwini Metropolitan Municipality KwaZulu Natal 105,000,000 2_033 Khayelitsha Monwabisi Coastal Node City of Cape Town Metropolitan Municipality Western Cape 103,000,000 2_060 Rini Townships Regeneration (Rini & Others) Makana Local Municipality Eastern Cape 93,000,000 2_024 Mhluzi Township Restructuring Steve Tshwete Local Municipality Mpumalanga 80,000,000 2_028 Helenvale Urban Renewal Nelson Mandela Metropolitan Municipality Eastern Cape 71,000,000 2_044 Soweto Zola Node City of Johannesburg Metropolitan Municipality Gauteng 55,000,000 2_045 Soweto New Canada Station Node (Orlando) City of Johannesburg Metropolitan Municipality Gauteng 55,000,000 2_030 Gqebera Fountain Road Redevelopment Nelson Mandela Metropolitan Municipality Eastern Cape 53,500,000 2_112 Soweto Vilikazi Street Precinct City of Johannesburg Metropolitan Municipality Gauteng 51,500,000 2_102 Orange Farm Stretford Station Precinct City of Johannesburg Metropolitan Municipality Gauteng 50,000,000 2_079 Rooikoppen Taxi/Bus Hub & Recreation Precinct Lekwa Local Municipality Mpumalanga 43,500,000 2_130 Mpumalanga Urban Centre eThekwini Metropolitan Municipality KwaZulu Natal 30,600,000 2_029 New Brighton Red Location Cultural Precint Nelson Mandela Metropolitan Municipality Eastern Cape 23,000,000 2_031 Nyanga Nyanga Transport Interchange City of Cape Town Metropolitan Municipality Western Cape 17,000,000 2_127 Umlazi, Malukazi & Others Umlazi-Malukazi Nodal Redevelopment eThekwini Metropolitan Municipality KwaZulu Natal 207,000,000