SPATIALY TARGETED INVESTMENT GLOBAL PLATFORM for SUSTAINABLE CITIES - AFRICAN REGIONAL WORKSHOP 15 May 2018 – Abidjan Côte D'ivoire

SPATIALY TARGETED INVESTMENT GLOBAL PLATFORM FOR SUSTAINABLE CITIES - AFRICAN REGIONAL WORKSHOP 15 May 2018 – Abidjan Côte d'Ivoire

Herman Pienaar UN-HABITAT

•Context for capital investment •Essential ingredients for capital planning •Systems and models to support •Outcomes

2 15 May 2018 HERMAN PIENAAR © About Plans in General

Is planning only shadow boxing?

• Direct capital investment • Link to sources of finance • Central to decision-making

3 15 May 2018 HERMAN PIENAAR © FROM PLAN TO IMPLEMENTATION

? HOW

15 May 2018 HERMAN PIENAAR © 4 MUNICIPAL ENVIRONMENT

•Complex system and organization •Legislative requirements and restrictions •Political pressure and power •Government interface with civil society, business and communities •Institutional arrangements and power imbalances •Mayoral priorities •Various strategies •Various pressure groups •Budget approval on annual basis •Urgent responses required - Decisions required on a daily basis

5 15 May 2018 HERMAN PIENAAR © VISION, KEY OUTCOMES AND PRIORITIES

What? Where? What is the plan? Relationship and Interaction? Interventions?

15 May 2018 HERMAN PIENAAR © 6 THE NEED FOR SPATIAL PLANS

• Development vision • Development approach / model – must solve problems • Priority areas (programmes) • Targets and outcomes • Integration of sectoral plans • Interventions required

15 May 2018 HERMAN PIENAAR © 7 INFRASTRUCTURE INVESTMENT (CAPITAL) IS SPATIAL

• Asset management and refurbishment • Backlogs and liveability • Future growth capacity LOCATION AND AREA AFFECTED NETWORK/SYSTEM EFFECT

Power

8 15 May 2018 HERMAN PIENAAR © RELATIONSHIP TO SPACE

INDIRECT SPATIAL RELATIONSHIP Tangible results Spatial interpretation/ solution INTERVENTIONS REQUIRED TO IMPLEMENT THE PLAN

LOCATION

DIRECT SPATIAL AREA AFFECTED RELATIONSHIP NETWORK/SYSTEM EFFECT

15 May 2018 HERMAN PIENAAR © 9 How to make it work? ELEMENTS FOR INTEGRATED DEVELOPMENT: PLANNING – INVESTMENT - OUTCOMES

PLANNING CAPITAL INVESTMENT DEVELOPMENT URBAN MANGEMENT FACILITATION MONITORING AND EVALUATION

35% 38% Joburg 2040 15% 11%

15 May 2018 HERMAN PIENAAR © 11 HIGH LEVEL STRUCTURE OF PLANS

PLANNING

Provincial City Growth National Spatial and Spatial Development Development Development Framework Strategy Plan

Transport Plan

Spatial Plans Economic Strategy SDF/SAF/Precinct plans Integrated Environmental Policy IDP

CIP (Business Plan for Sectoral Plans Sectoral Human Settlements Implementation) Plan

Asset management Capital Budget Plans Plan

15 May 2018 HERMAN PIENAAR © 12 CAPITAL INVESTMENT GAINS

CAPITAL INVESTMENT

Asset management and refurbishment

Backlogs and Future growth liveability capacity

Individual pieces of infrastructure needs to do more than just one thing

15 May 2018 HERMAN PIENAAR © 13 SPATIAL TARGETING

Deprivation Areas Transformation Areas Economic Areas

15 May 2018 HERMAN PIENAAR © 14 SPATIAL TARGETING FOR ASSET MANAGEMENT PLANS

WATER SEWER ELECTRICITY

15 May 2018 HERMAN PIENAAR © 15 CP³ COMPONENTS Spatial and financial Analysis

Financial System Project Management System

SPMU CP³

Business Cycle

System Architecture

Legislative Framework

mSCOA

Economic Impact Module

15 May 2018 HERMAN PIENAAR © 16 CAPEX Planning and Investment

◦ Capacity SDF ◦ Functionality CIP ◦ MTEF PMO ◦ Backlog

Planning Budgeting Execution

Report Budget Modelling Prioritise and fit track

CP³ BUDGET CYCLEANNUAL BUDGET CYCLE

Project Project Management Input Planners managers

Multi-criteria Monitoring and CP³ Candidate Prioritisation Budget Fitting Evaluation information Project List Model (M&E) template S S Budget Project P P Approval informatio M M n / O O Sources of capital readiness projects Filter Economi Economi c Model c Model Departments Masterplan(s) / Asset Management Plan(s) Spatial and Stakeholder text Consultation reporting

Executive input Electoral Wards SDF Layers Other Systems Priority Areas Etc.

15 May 2018 HERMAN PIENAAR © 18 PRIORITISATION

15 May 2018 HERMAN PIENAAR © 19 COMPARING APPLES WITH PEARS

SPATIALLY TARGETED INVESTMENT

A PARTICULAR MIX OF FACILITIES AND SERVICES THAT INCREASE EFFICIENCY, ? SUSTAINABILITY AND LIVEABILITY

15 May 2018 HERMAN PIENAAR © 20 JOHANNESBURG SPATIAL DEVELOPMENT FRAMEWORK

Deprivation Areas Transformation Areas

Economic Areas

15 May 2018 HERMAN PIENAAR © 21 Strategic Area Framework – Main Elements

Movement and Connectivity Social Facility Clusters Economic Footprint

Density and Urban Form Power Network Water and Sewer Network

15 May 2018 HERMAN PIENAAR © 22 DENSIFICATION FOR URBAN EFFICIENCY AND VALUE INCREASE

Empire Perth Corridor

COMBINE Transport (modal) density Public (social) density Economic (job) density Residential (people) density CREATE URBAN VALUE Quality urban environments =Sustainability with increased social and economic value

15 May 2018 HERMAN PIENAAR © 23 Strategic Area Framework and Priority Precincts

15 May 2018 HERMAN PIENAAR © 24 PRECINCT DEVELOPMENT - THINK FRUIT SALAD

3000 m² Commercial Library High Street upgrade BRT Station 1500 new res units (pot 12000) Storm water 9,2 Ha Park infrastructure Rec Centre Walkways network Indoor and Outdoor Sport facilities Power and water network upgrades

BRT Station ORANGE GROVE – FUTURE FORM

Existing units - 7133 Additional units - 13447

15 May 2018 HERMAN PIENAAR © 26 SUITE OF SPATIAL PLANS LINKED TO INVESTMENT OUTCOMES

SPATIAL CAPITAL PLANNING INVESTMENT PLAN

Direction Strategy City Capital Policy Pattern of investment reflects high level strategic plans Investment Principles SDF Plan Priority areas

Movement network Economic nodes Social facilities Strategic Projects and interventions Strategic Density Area from plan to reach envisaged Area Principles and Design Elements Framework outcome Programme Priority precincts Interventions/Projects

Detailed Urban Design Precinct Principles and design guidelines Precinct Projects and interventions Development Land use Plan from plan to reach envisaged outcome Pedestrian networks Interventions/Projects

15 May 2018 HERMAN PIENAAR © 27 TARGETED CITY LEVEL INVESTMENT

15 May 2018 HERMAN PIENAAR © 28 ALLOCATION PER DEPARTMENT AND ENTITY

15 May 2018 HERMAN PIENAAR © 29 SPATIALLY TARGETED AREAS % CAPEX ALLOCATION 4% DEVELOPMENT PROGRAMME APPROACH

6% 3%

4% 3%

4% 3% 5% 8% 6% 3% 11% 11%

16%

15 May 2018 HERMAN PIENAAR © 30 Spatially Targeted Priority Areas investment

City of Johannesburg 2017/18 MTREF Capital Budget by Spatial Target Areas and Deprivation Areas R1,000,000,000 R900,000,000 R800,000,000 R700,000,000 R600,000,000 R500,000,000 R400,000,000 R300,000,000 R200,000,000 R100,000,000 R-

Sum of Total 2017 / 2018 Sum of Total 2018 / 2019 Sum of Total 2019 / 2020

15 May 2018 HERMAN PIENAAR © 31 NEW vs REFURBISHMENT

NEW.

REFURBISHMENT

4355914545

4544655361 4643746845

3446053795

3431582668 3251866249

1 2 3

Public Works

City of Transport Tshwane

Intergovernmental Project Pipeline City of Platform PRASA Johannesburg

City of Gauteng Ekurhuleni Province

Rest of Soweto Alexandra Ivory Park Diepsloot Orange Farm

Social Development Housing JOSHCO Health JDA Sports and Recreation Arts, Culture and Heritage Libraries Com. Dev. Head Office

Project planned vs. actual milestones

Comments can be added for Target milestones why milestones as recorded has not been previously on achieved monthly page

Comments Project Attach evidence preparation

Actual is key milestones as achieved during a month (editable)

On the progress page the user can view the target milestones and add the actual milestones. The user can add comments if there is any variances between the actual and target milestones.

Project planned vs. actual expenditure variances

| actual

Monthly Budget Actual Commitment RemOrdPur Assigned Variance

R – 25 000.00 Link figures from monthly R – 5 000.00 page R 10 000.00

R 0.00

R 10 000.00

Link figures R 30 000.00 from SAP integration R – 15 000.00 Calculated R – 10 000.00

variance R – 80 000.00 field R 35 000.00

R 25 000.00 Total R500 000.00 R300 000.00 R 50 000.00 R50 000.00 R100 000.00 R0

Actual financial spend figures gets uploaded via the monthly expenditure SAP report.

Monthly financial summary report per project per MOE (RAG Dashboard)

39 ELEMENTS FOR INTEGRATED DEVELOPMENT: PLANNING – INVESTMENT - OUTCOMES

PLANNING CAPITAL INVESTMENT DEVELOPMENT URBAN MANGEMENT FACILITATION MONITORING AND EVALUATION

35% 38% Joburg 2040 15% 11%

•Plans as end products – its really only the start •Need for investment always outstrip funding availability – how to prioritise multiple competing projects and interests? Spatially Targeted Investment – link it to the plan •Institutional alignment – Set up protocols and process with strong political support •Avoid a sectoral approach to planning and budgeting. •Systems approach – • Create a system and process to facilitate all the different interests and align to the development strategy • Plan to the level of the project • Get to grips with infrastructure implications of spatial plans • Balance the need for refurbishment vs new infrastructure linked to financial viability • Financial integration – direct the budget to the plan •Political leadership (a good integrated plan/system helps) • Not knowing what to do – needs a plan • How to get it done – needs a system (a method of implementation) • How did I do? – needs monitoring