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CITY of JOHANNESBURG – 24 May 2013 Structure of Presentation

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CITY of JOHANNESBURG – 24 May 2013 Structure of Presentation 2012/13 and 2013/14 BEPP/USDG REVIEW Portfolio Committee CITY OF JOHANNESBURG – 24 May 2013 Structure of Presentation 1. Overview of the City’s Development Agenda – City’s Urban Trends – Development Strategy and Approach – Capex process and implementation 2. Part One: 2012/13 Expenditure – Quarter One USDG expenditure 2012/13 – Quarter Two USDG expenditure 2012/13 – Quarter Three USDG expenditure 2012/13 – Quarter Four USDG expenditure 2012/13 – Recovery plan on 2012/13 USDG expenditure Part Two: 2013/14 Expenditure – Impact of the USDG for 2013/14 – Prioritization of 2013/14 projects 2 JOHANNESBURG DEMOGRAPHICS • Total Population – 4.4 million • 36% of Gauteng population • 8% of national population • Johanesburg is growing faster than the Gauteng Region • COJ population increase by 38% between 2001 and 2011. JOHANNESBURG POPULATION PYRAMID Deprivation Index Population Deprivation Index Based on 5 indicators: •Income •Employment •Health •Education •Living Environment 5 Deprivation / Density Profile Based on 5 indicators: •Income •Employment •Health •Education • Living Environment Development Principles PROPOSED BUILDINGS > LIBERTY LIFE,FOCUS AROUND MULTI SANDTON CITY SANDTON FUNCTIONAL CENTRES OF ACTIVITY AT REGIONAL AND LOCAL SCALE BARA TRANSPORT FACILITY, SOWETO NEWTOWN MAKING TRANSPORTATION WORK FOR ALL RIDGE WALK TOWARDS STRETFORD STATION BRT AS BACKBONE ILLOVO BOULEVARD BUILD-UP AROUND PUBLIC TRANSPORT NODESVRIVONIA ROADAND FACING LOWDENSGATE CORRIDORS URBAN RESTRUCTURING INVESTMENT IN ADEQUATE INFRASTRUCTURE IN STRATEGIC LOCATIONS INCLUSIONARY ECONOMIC DEVELOPMENT INCLUSIONARY ECONOMIC VILAKAZI STREET, SOWETO DEVELOPMENT INNER CITY CONNECTING ECONOMIC OPPORTUNITIES Range and Mix of Housing Typologies EMPHASIS ON RENTAL ACCOMMODATION BRICKFIELDS PENNYVILLE INCREMENTAL BACKYARD ENABLEMENT MELROSE ARCH EKHAYA NEIGHBOURHOOD PRECINCT DIEPSLOOT ORLANDO WEST PARK – TOWARDS SOCCER CITY NURTURE HUMAN POTENTIAL JABAVU LIBRARY PENNYVILLE ECD CENTRE PLACEMAKING FOR PEOPLE ELLIS PARK Walkable City Sustainable Human Settlements • - • LOW -CARBON - FOOTPRINT DESIGNING WITH THE CLIMATE > DESIGN GREEN INFRASTRUCTURE AND BUILDINGS QUARTER JOHANNESBURG SOWETO CORRIDOR: BRT AND RAIL PRECINCT DEVELOPMENT Soweto Corridor BRT and Rail Precinct Development : Decade 0 CBD Pennyville Orlando Jabulani Klipspruit Kliptown Soweto Corridor BRT and Rail Precinct Development : Decade 1 CBD Pennyville Orlando Jabulani Klipspruit Kliptown Soweto Corridor BRT and Rail Precinct Development : Decade 2 CBD Pennyville Orlando Jabulani Klipspruit Kliptown Soweto Corridor BRT and Rail Precinct Development : Decade 3 CBD Pennyville Orlando Jabulani Klipspruit Kliptown LOUIS BOTHA BRT CORRIDOR Louis Botha BRT Corridor Development :Decade 0 Inner City Rosebank Sandton Louis Botha BRT Corridor Development :Decade 1 Inner City Rosebank Sandton Marlboro Louis Botha BRT Corridor Development :Decade 2 Inner City Rosebank Sandton Marlboro Louis Botha BRT Corridor Development :Decade 3 Inner City Rosebank Sandton Marlboro Addressing Deprivation Levels Through Spatial Restructuring Defining the Demand – i.e. how much and within what affordability category Current and Projected Affordability Levels Housing Needs (high / middle / low income) Proposal re: Supply – i.e. what can be delivered and where? Principles Confirming founding principles to direct future growth Typology Strategic Area i.e. What could housing units look like, how much i.e. Where in the City can these units be do they cost and what density is created? delivered Baseline Projections – What are the contribution of Areas and how do they meet the demand? Informal Settlement Citywide Assessment 165,000 Informal Settlement Units 43,000 in Ivory Park 27,000 in Soweto 21,000 in Dieplsoot 17,000 in Gtr. Orange Farm 12,000 in Alexandra 1,000 in CBD Backyard Shacks – Citywide Assessment 320,800 Backyard Shacks Citywide • 164,000 in Soweto • 72,000 in Ivory Park • 41,600 in Dieplsoot • 27,000 in Gtr. Orange Farm • 7,000 in Alexandra • 3,000 in CBD Summary of Demand vs Supply Potential Strategic Development Area Supply 1 In-situ Upgrading 26,500 2 Nodes Within PPTN 75,500 Income Projected 3 Nodes Outside PPTN 30,585 Category Demand 4 TOD 74,117 Low Income 589 393 5 BRT 84,482 6 Short-Term North 56,929 Medium 176 437 7 Short-Term South 91,497 Income 8 Consolidation &Infill (North) 157,539 High Income 185 829 9 Consolidation &Infill (Mining Belt) 70,461 10 Redevelopment South Suburbs 23,775 951 658 Sub-Total 691,385 11 Expansion North 78,662 12 Expansion South 72,138 Sub-Total 150,800 13 Rest of the City 293,970 Sub-Total 293,970 Total 1,136,155 Identification of Strategic Development Areas MODEL- STRATEGIC DEVELOPMENT LED AREA YIELD 1 In-situ Upgrading 26,500 2 Nodes Within PPTN 75,500 3 Nodes Outside PPTN 30,585 4 TOD 74,117 5 BRT 84,482 6 Short-Term North 56,929 7 Short-Term South 91,497 8 Consolidation &Infill (North) 157,539 Consolidation &Infill (Mining 9 Belt) 70,461 Redevelopment South 10 Suburbs 23,775 Sub-Total 691,385 11 Expansion North 78,662 12 Expansion South 72,138 Sub-Total 150,800 13 Rest of the City 293,970 Sub-Total 293,970 Total 1,136,155 Income Group and Provisional Baseline Split per Strategic Area 90 000 80 000 70 000 60 000 50 000 Units 40 000 30 000 20 000 10 000 0 Consolid Consolid Redevelo Nodes Nodes Short- Short- ation and ation and pment Expansio Expansio Within Outside TOD BRT Term Term Infill Infill Southern n North n South PPTN PPTN North South (Mining (North) Suburbs Belt) LOW INCOME 11 539 2 422 29 212 20 313 41 160 61 362 58 732 43 909 10 318 11 065 44 407 MIDDLE INCOME 23 647 5 556 44 614 29 007 15 769 30 134 81 573 26 552 12 160 34 254 22 241 HIGH INCOME 40 314 22 608 291 35 162 0 0 17 234 0 1 296 33 343 5 490 MIXED USE TYPOLOGY Income Group Gross Density Height Funding Low - Middle 150 2 Project Linked Subsidy INCREMENTAL TYPOLOGY Income Group Gross Density Height Funding Low 50-260 1-2 Project Linked Subsidy INFRASTRUCTURE INVESTMENT • Asset management and refurbishment • Backlogs and liveability • Future growth – Public transport and TOD – Economic development – Densification including social and community facilities 45 ASSET MANAGEMENT City Power Investment USDG PORTION 47 City Power Investment • R200 million has been allocated to the on-going construction of an intake at Sebenza. The project’s ultimate cost will be approximately R800 million. The project aims to provide a stable supply of bulk energy from Eskom for the northern areas of the City. • The construction of a fourth intake for the City at Rivasdale in Soweto remains in the planning phase in 2013/14. R 15 million has been set aside for the project in 2013/14. The project is set to cost the City approximately R800 million. The project aims to provide a stable supply of bulk energy for the southern areas of the City. • R83 689 million has been allocated for the upgrading of identified 88kV overhead lines in the 2012/13 budget. This is an on-going project that is to cost the City R293 million in the next three years • R450 million will be used to implement the Revenue Generation Efficiency Project (Pre-paid system installation of semi-automated pre-paid & automated pre-paid smart meters). This project will allow for automatic centralised meter reading, so that meter readings will not have to be undertaken manually on a monthly basis. This project is to cost the City approximately R1 billion over the next two financial years. • Approximately R 94 million will be spent on the provision of new connections to developments predominantly in the north of the City. These projects are largely funded from service contributions 48 Water & Sewer Investment USDG PORTION 49 Water & Sewer Investment • R111.540 million will fund the upgrade of the Bushkoppies Waste Water Treatment Works (WWTW) in the south of the City, • R165 347 000 million is budgeted for the Driefontein WWTW expansion in Mogale City. • Operation Gcina Amanzi has been allocated an amount of R 239. 812 million to fund water infrastructure rehabilitation and water resource management in Soweto 50 Roads & Storm-water Investment USDG PORTION 51 Roads & Storm-water Investment • JRA had an increase of 183% increase on the R260 million on their allocation received in the 2012/13 financial year. • R90 million will go towards bridge upgrading; • R50 million for the upgrading of the M1 Highway; • R100 million for the resurfacing of roads; • R50 million for emergency storm water interventions; • R161 million for the tarring of gravel roads in marginalised areas. 52 Urban Renewal • The Housing Department has a budget of R465,858 million for 2013/14. The primary source of capital funding for the Housing Department is the Urban Settlement Development Grant (USDG) (R454, 858 million) which is for the construction of bulk infrastructure for low income housing projects. The Housing Department is in the process of shifting from RDP housing projects located on the periphery of the City to a strategy that focuses on higher density housing solutions in more centrally accessible locations. The intention is to complete the more peripheral projects in the medium term (three years) and to begin to plan for better located housing projects. Key projects to be undertaken by the Housing Department in 2013/14 are: Fleurhof Mixed Development (project includes a mix of RDP, rental flats and bonded accommodation options); Lakeside Ext 1, 2, 3 and 5 (Orange Farm) and Orange Farm Ext 9. • The projects that will cost the City the most in the three year medium term budget period is the Lufhereng Project (R126 million) and Malibongwe Ridge (Cosmo City) (R115 million). • In order to shift to a strategy that provides better located housing solutions for the poor, R20 000 000 has been put aside for land purchases in 2013/14, and R200 000 000 in the three year budget period. Similarly, an amount of R 10 million has been allocated to the implementation of Sustainable Human Settlement Urbanisation Plan (SHSUP) in 2013/14 (a total of R160 000 000 in the medium term period) to facilitate the implementation of the policy and to change how and where residential development is provided in the City.
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