ETHEKWINI METRO

BEPP REVIEWDay 1 of Mid-Year Budget & BEPP Review

BEPP 2015/16 – 2017/18

26 February 2015

OBJECTIVE OF BEPP REVIEW

Objective

engage in an institutionalised

process

enhance intergovernmental

alignment

Organised platform for BE

support

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Update…

• Guidelines for 2015/16 – 2017/18

Metros reviewed the BEPP

process in July 2014

• Pipeline of Catalytic projects in integration zones within UNS

• Upgrading of Informal Settlements

• Draft 2015/16 BEPP

Refinement and consolidation of

elements of 2014/15 BEPP

• Circulation of comments

• Sector specific inputs

Stakeholder engagement

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MTBPS October 2014 – Unprecedented priority on the Role of Cities

reshape South Africa’s urban

environment through

• integrated spatial planning; investment in dynamic city development; integrated housing and transport programmes; support for business activity and job creation

Different approach to local

government infrastructure

financing.

• Incentives to encourage large urban municipalities to promote more compact, efficient and equitable cities

• Planning will focus on developing mixed-use precincts that can help to catalyse economic activity, and on upgrading informal settlements

• Support will be provided to municipalities for revenue collection and management of infrastructure financed from both own revenue and grants.

• Reforms to grants will improve the uptake of available resources for social infrastructure.

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MTBPS October 2014 – Fiscal Reform

•Recognises need for massive investments in urban infrastructure•Highlights the importance of cities to expand own direct contributions to investment programmes•Recognises that national grant programmes should provide flexibility to cities to design locally appropriate solutions

Accelerates the process

of fiscal reforms

•Promote partnerships (in infrastructure delivery) with the private sector and SoE’s;•Provide incentives for cities to restructure the urban spatial form;•Rationalize the number of grants, while ensuring that well-performing municipalities have greater discretion over grant utilization;

Commits government to a new

approach to LG infrastructure

financing over the next three years

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Catalytic Urban Development Projects within Integration Zones will demand…

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CSP/NT Support for Catalytic Urban Development Projects within Integration Zones

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Refocusing grants for urban spatial transformation

Urban Regeneration / Land Conference held in November 2014

Project level support that seeks to better integrate spatial planning and land use with transport systems

DBSA examining ways to encourage greater private investment - infrastructure bonds - municipal bond underwriting - project finance - various contracting models

City Infrastructure Delivery Management System

Project Preparation Facility to build a robust pipeline of well-designed, catalytic projects for implementation over the medium term.

NDPG supporting MELD Corridor with precinct planning

How do cities respond?

Improved planning and coordination across sectors…

Targeted effort on focusing resources on the core issues

Prioritisation is critical

Clear demonstration of capacity to absorb all support

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Purpose for today…

Cross-sectoral discussion

Support city to realise spatial, economic, environmental, social transformation

Support vertical and horizontal alignment

Feed into the finalisation of the BEPP for Council approval by 29 May 2015

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