A PERSPECTIVE FROM NATIONAL TREASURY

Neighbourhood Development Programme

(NDP)

Urban Networks Strategy focusing on

transformation of the Spatial Form

City Support Programme

(CSP)

Supporting Inclusive Urban Development

HOW THE ALIGNMENT OF INFRASTRUCTURE GRANTS

WILL IMPACT LAND ASSEMBLY?

A MORE STRATEGIC APPROACH IS CRITICAL TO

LEVERAGE REAL CHANGE

Available Public

Resources

Need in

marginalised areas

DIFFERENTIAL Private fixed

investment

… and this requires:

• Consensus on

concepts

• A programmatic

approach

• Strong partnerships

GA

P

• Spatial form:

– Severe structural inefficiency that inhibits economic growth & requires

increasing & unsustainable funding across spheres & sectors

– The long travelling times to workplaces and other urban amenities contributes

to low productivity levels and erodes disposable incomes for especially the

poor

– High levels of poverty

• The above is compounded by:

– Growing township populations due to increasing urbanisation from rural areas,

neighbouring countries & migration from informal settlements to backyard

shacks

– New human settlements that are being developed with similar inefficiencies

– Ad-hoc planning, funding (including grants) and infrastructure development

– Weak governance & vested interests

WHY FOCUS ON URBAN SPATIAL FORM?

Cities are the origin of the problems, but they are also the

origin of the solutions

CITY SUPPORT PROGRAMME (CSP) IS A COORDINATED

PLATFORM FOR IMPLEMENTATION SUPPORT TO CITIES

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•Promote spatial restructuring through transfer of human settlements, public transport and spatial planning functions

Functional alignment

•Enhance access to capital finance by cities, through debt, land-based financing and performance-based grants

Financing

• Strengthen strategic planning

• Protect the interests of poor and vulnerable groups in the development process;

• Fight corruption and enhance value for money

Governing Compact cities and a transformed urban

spatial form

City Support Programme Core city

governance

integrated,

strategic ,

participatory

planning and

financing,

poverty-focus,

anti-corruption

Produ

ctive

cities

Liveable,

integrate

d cities

Inclu

sive

cities

Sustai

nable

cities

Grants Implementation

support National systems

Human Settleme

nts Support (Access to land

and services)

Public Transport Support (urban

mobility and

efficiency)

Climate Resilienc

e and Sustaina

bility Support

Economic Development (public

and private sector

investment , job

creation)

Inp

uts

O

bje

ctiv

es

Ou

tco

me

s

… THAT IS FOCUSSED ON “GETTING THINGS

DONE”

Outcome & Impact Indicators of built env. transformation

• Identify and measure desired outcomes upfront

Strategy development

• Identification of Urban Network with Hubs and Integration Zones

• Urban Networks: A spatial strategy to align public spending & unlock private and HH investment

• Strategy focused on catalytic interventions necessary to achieve desired outcomes

City Implementation Support Plans

• Partnership agreement describing “package” of implementation support required to achieve outcomes

Systems alignment

• Alignment of national grants to support achievement of outcomes through agreed strategy; review and align regulatory instruments and policy

• Performance rewards for achievement of the strategy

Inclusive

Growth & Dev

Private Sector & HH Investment

Infrastructure Planning & Delivery

Precinct & Transport Management

Fiscal & Regulatory Instruments/Incentives

Funding (Budget Process)

Sphere + Sector Alignment

Project Pipeline

Spatial Targeting (Country; Metro & Sub-metro )

OUTPUTS

ACTIVITIES

OUTCOMES

INPUTS

IMPACT

SPATIAL TARGETING SHOULD BE UNDERTAKEN

AS PART OF A STRATEGIC FRAMEWORK

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FOCUS ON CITIES AS THEY ARE THE CENTRES OF

SOCIO-ECONOMIC AGGLOMERATION

• Higher per capita GDP, productivity and innovation

• High population concentrations, densities & lower

per capita infrastructure costs

METROS SECONDARY CITIES

• Urbanising (People driven

spatial targeting

• Regional role

HIERARCHICAL COHERENCE:

LAND USE INTENSITY & CONNECTIVITY

CBD

Urban Hubs

SPATIAL TARGETING ON URBAN NETWORK

FOCUS AREAS

Secondary Network

Primary Activity Corridor

Primary Public Transport Links

Secondary Transport Links

Primary Network that define the Integration Zones

INTEGRATION ZONES ARE A KEY TOOL FOR TO ALIGN,

SEQUENCE AND MANAGE PUBLIC INTERVENTIONS

• Ensure that public investments, services, regulations and incentives are focussed in defined spatial areas (spatial targeting) to optimise overall connectivity across the urban network hierarchy

• Provide clear signals to private sector

• Transport, human settlements, bulk infrastructure, economic infrastructure, land use management (eg zoning), tax and subsidy incentives

• A basis for intergovernmental coordination of investment (provincial and national functions, including SoEs)

Alignment of public

resources

• A relative bias in public resource allocation: resources will always be required elsewhere

• Sequenced and time-bound: focus can and should shift to other intervention areas within the network over time

Area-based prioritisation (sequencing)

• Enables measurement of progress in transforming the built environment

Measurement

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CHARACTERISTICS OF INTEGRATION ZONES

• Optimisation of network connectivity via the selection and & combination of individual network elements - CBD, Hubs, Corridors, Public Transport Links

Spatial

• Contains opportunities to leverage private investment Economic

• Contains opportunities to promote inclusion and desegregation

Social

• Contains opportunities for coordinated and catalytic public interventions (eg investment projects)

Programme

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• Strong urban network with a

hierarchy of well connected

nodes & linkages

• Efficient flows of people, goods

& information

• Targeted public infrastructure &

facilities that catalyse additional

private sector investment

• Good access to jobs &

amenities

THE UNS IS AIMED AT INCLUSIVE

DEVELOPMENT & GROWTH

Spatial Integration

URBAN NETWORK TOPOLOGY

CBD

Network Elements

Primary Network*

Secondary Network

Intervention

CBD X Regeneration and management

Primary Transport Link

X Develop/Upgrade and management

Activity Corridor

X Infill & Densification

Urban Hubs X X Mixed-use development and management

Secondary Transport Link

X Develop/Upgrade

USDG

HSDG

SHRZ

PHDA

PTIS

NDPG

SEZ

ICDG

UDZ Dev

Incentives

CBD

Developed

Area

Underserved

Townships

Underserved

Townships

Underserved

Townships

SPATIAL & FISCAL ALIGNMENT IS CRITICAL TO

ENSURE IMPACT

PRIORITISATION OF INTEGRATION ZONES AND

BUILD ENVIRONMENT PERFORMANCE PLANS

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TOWARDS VIBRANT URBAN HUBS

• High density, mixed use precinct that contains a diverse variety of land

uses, services and activities

• Function:

– “Town centre” for township/s

– Gateway to the rest of the wider urban area

• Efficient intermodal public transport system & a network of public

spaces and walkways

• Land use mix:

– Retail

– Recreation, hospitality & tourism

– Offices, banking

– Community facilities & government services

– High density housing

• Within an urban design framework that promotes a vibrant sense of place

in which to live, work and play 16

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NDPG 2013 – 2018: Add Strategic Spatial Planning

& Life Cycle Management

• From the start of the programme until the end of 2012/13 the

NDPG has enabled:

– Municipal business plans approved to a value of R4.0bn

– 255 project plans approved to the value of R3.9 bn.

– 129 Municipal projects enabled by the grant

– 98 projects currently in construction (June 2013)

– Formulation (and implementation) of the Urban Network Strategy

Intervention planning

• Precinct planning

• Identification of catalytic projects

Project Planning

• Detailed design

• Implementation management

NDPG 2006 - 2012

Strategic spatial planning

•Urban network identification & planning

Intervention planning

•Precinct planning

• Identification of catalytic projects

Project Planning

•Detailed design

• Implementation management

Life-cycle Management

•Performance monitoring and evaluation

•Precinct management

• Investment facilitation

NDPG 2013 - 2018

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INVESTMENT CASE STUDY: MAMELODI

(INITIAL APPROACH)

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INVESTMENT CASE STUDY: MAMELODI

(SPATIAL TARGETING)

R138m

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PRIMARY NETWORK FOR CITY OF TSHWANE

(PRELIMINARY)

HUB IDENTIFICATION FOR GAUTENG

CITY REGION (PRELIMINARY)

THE ALIGNMENT OF THE NDPG AND ICDG

• The alignment of the NDPG and ICDG is in terms of the CSP's

adoption of the Urban Networks Strategy (UNS) - toolkits developed by

the NDP are on the National Treasury Website.

• The aim of the UNS is to:

– To help define and establish Integration Zones (which are linked to the

ICDG) and include all the network elements linking the corridor that is

anchored by the Urban Hub and the CBD

– To crowd-in public investment to leverage private sector investment in Hubs

& Integration Zones by co-ordinating the implementation of a pipeline of

catalytic projects across sectors, i.e. housing, transport, economic

development.

• The BEPPs and related Built Environment Indicators will be used to

plan and measure spatial transformation with capacity support focused

on key institutional functions such as development planning, financial

management and infrastructure delivery (IDMS).

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STRATEGY IMPLEMENTATION PROGRESS

INSTITUTIONAL ALIGNMENT ON THE

URBAN NETWORK - Partnerships

• Partnership formation

– Across infrastructure sectors

– All 3 spheres

– Relevant SOEs (PRASA, Metrorail, Eskom, etc.)

• Partnerships functions

– Focus public resources (staff, systems) to deliver on targeted network

elements

– Integrate governance, finances & spatial planning

• Provide support to partnerships

– built environment/spatial planning and implementation

– capital budgeting (multi-year)

• Relevant sector policy dialogues (economic development, social

development, transport, human settlements, environmental) to

incorporate network targeting principles

CONSIDERATIONS FOR THE HDA IN THE DEVELOPMENT

OF A NATIONAL SECTOR-WIDE LAND ASSEMBLY

STRATEGY (LAS)

• Strategic Arrangements

– Who, What, Why & How informs the criteria for “well located land”

– What are the impact areas where the HDA can make a difference

• Spatial Arrangements:

– To focus on Metro’s (as intended to IP’s & MTOP’s) to identify land for

better located housing projects (and the other NDPG 10 Urban muni)

– Alignment of The HDA process to MSDF’s, Urban Network Plans and

Integration Zones ensuring more practical coordination and alignment

• Institutional / Process Arrangements:

– DORA 2014 provisions for BEPPs (fiscal alignment of metro

infrastructure grants) and output indicators of sector grants to include

critical interdependencies e.g. Dept of Human Settlements will continue

to measure performance on number of houses within 500m of public

transport

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NATIONAL TREASURY

Web: ndp.treasury.gov.za