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4 the Capital Investment Framework PROJECT INFORMATION Prepared for: uMgungundlovu District Municipality Address: Planning Shared Services Centre 242 Langalibalele Road Pietermaritzburg 3200 Contract No.: 35/2016 Project: Capital Investment Framework Date: February 2019 Prepared by: Strategic Planning Resources cc t/a StratPlan Address: Postnet Suite 75 Private Bag X3 Westville 3630 UMGUNGUNDLOVU DISTRICT CAPITAL INVESTMENT FRAMEWORK TABLE OF CONTENTS 1 INTRODUCTION ............................................................................................................... 1 1.1 PURPOSE ................................................................................................................................ 1 1.2 BACKGROUND ........................................................................................................................ 1 1.3 APPROACH.............................................................................................................................. 2 2 UNDERSTANDING CAPITAL INVESTMENT ........................................................................ 3 2.1 INTRODUCTION ...................................................................................................................... 3 2.2 DEFINING CAPITAL INVESTMENT .......................................................................................... 3 2.3 NATIONAL TREASURY GUIDELINES ON CAPITAL PLANNING .............................................. 3 3 FOUNDATIONS OF THE 2018 CIF ....................................................................................... 5 3.1 INTRODUCTION ...................................................................................................................... 5 3.2 TOWARDS 2050 - A LONG TERM SPATIAL VIEW .................................................................... 5 3.3 SPATIAL ECONOMIC DEVELOPMENT TRENDS ................................................................... 11 3.4 THE 2014 SPATIAL DEVELOPMENT FRAMEWORK .............................................................. 15 3.5 THE CAPITAL INVESTMENT PLANS / PROJECTS .................................................................. 18 4 THE CAPITAL INVESTMENT FRAMEWORK ...................................................................... 23 4.1 INTRODUCTION .................................................................................................................... 23 4.2 FOCUS OF THE CAPITAL INVESTMENT FRAMEWORK ........................................................ 23 4.3 THE CAPITAL INVESTMENT PROJECT DATABASE ............................................................... 24 4.4 CAPITAL INVESTMENT PROJECT PRIORITISATION CRITERIA ............................................. 25 4.5 OVERVIEW OF CAPITAL INVESTMENT PROJECTS ............................................................... 27 4.6 CAPITAL INVESTMENT PROJECT DATABASE ...................................................................... 31 5 INSTITUTIONAL ARRANGEMENTS .................................................................................. 62 5.1 BACKGROUND ...................................................................................................................... 62 5.2 PURPOSE OF THE CAPITAL INVESTMENT FRAMEWORK .................................................... 62 5.3 RELATED INITIATIVES ........................................................................................................... 62 5.4 PREPARING FOR CAPITAL INVESTMENT PLANNING .......................................................... 63 6 WAY FORWARD AND LESSONS LEARNT ......................................................................... 64 7 THE PROJECT DATABASE ............................................................................................... 65 BIBLIOGRAPHY: ................................................................................................................... 66 APPENDIX 1: EXTRACT FROM 2014 SPATIAL DEVELOPMENT FRAMEWORK (COMPONENTS) .. 67 LIST OF ANNEXURES: ANNEXURE A: CIF PROJECT INFORMATION SHEETS (available on request) FEBRUARY 2019 i UMGUNGUNDLOVU DISTRICT CAPITAL INVESTMENT FRAMEWORK LIST OF TABLES: TABLE 3.1: ADDRESSING THE 2011 TO 2050 HOUSING NEED .............................................................................. 9 TABLE 3.2: A COMPARATIVE 2010 ECONOMIC STRUCTURE (GVA IN RM) ........................................................ 10 TABLE 3.3: IMPACT OF VARIOUS ECONOMIC GROWTH RATES ON DISTRICT GVA (RM) (2010 TO 2050) ......... 10 TABLE 3.4: 2010 AND 2050 STRUCTURE AND VALUE OF ECONOMY IN GVA (RM) ............................................ 11 TABLE 3.5: STATUS OF STAKEHOLDERS REPONSES TO INFORMATION REQUESTS FOR UMDM CIF ............. 19 TABLE 3.6: OVERVIEW OF PROJECT DATA COLLECTED FOR COMPREHENSIVE CIF PROJECT DATABASE ..... 21 TABLE 4.1: CAPITAL INVESTMENT PROJECTS PER SDF COMPONENT AND MUNICIPALITY ........................... 27 TABLE 4.2: COMPETENCY FOR IMPLEMENTING CAPITAL INVESTMENT PROJECTS ....................................... 28 TABLE 4.3: DISTRIBUTION OF CAPITAL INVESTMENT PROJECTS IN SECTORS ............................................... 28 TABLE 4.4: CAPITAL INVESTMENT PROJECT DATABASE: SUMMARY LIST PER SDF COMPONENT ............... 32 LIST OF DIAGRAMS: DIAGRAM 3.1: 2030 AND 2050 POPULATION GROWTH FOR THREE SCENARIOS .............................................. 7 DIAGRAM 3.2: SCENARIO 2 - RURAL AND URBAN POPULATION GROWTH ....................................................... 8 DIAGRAM 3.3: CURRENT AND PROPOSED 2050 DISTRIBUTION OF HOUSING TYPES ...................................... 9 DIAGRAM 3.4: UMGUNGUNDLOVU SPATIAL DEVELOPMENT FRAMEWORK ................................................... 17 DIAGRAM 4.1: CATALYTIC PROJECTS AS DEFINED IN THE PGDS ..................................................................... 26 LIST OF MAPS: MAP 3.1: THE 2007 UMGUNGUNDLOVU SDF – THE STARTING POINT ............................................................. 16 MAP 4.1: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS - IMPENDLE MUNICIPALITY ................. 53 MAP 4.2: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – MKHAMBATHINI MUNICIPALITY ....... 54 MAP 4.3: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – MPOFANA MUNICIPALITY ................. 55 MAP 4.4: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – MSUNDUZI MUNICIPALITY ............... 56 MAP 4.5: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – RICHMOND MUNICIPALITY ................57 MAP 4.6: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – UMNGENI MUNICIPALITY .................. 58 MAP 4.7: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – UMSHWATHI MUNICIPALITY ............. 59 MAP 4.8: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – UMGUNGUNDLOVU DISTRICT .......... 60 MAP 4.9: SPATIAL LOCATION OF CAPITAL INVESTMENT PROJECTS – UMGENI WATER ................................ 61 FEBRUARY 2019 ii UMGUNGUNDLOVU DISTRICT CAPITAL INVESTMENT FRAMEWORK 1 INTRODUCTION 1.1 PURPOSE This report presents the Capital Investment Framework of the uMgungundlovu District Municipality. As this is the first attempt at preparing a Capital Investment Framework (CIF) this document also sets out the current understanding of the purpose of the CIF and the base information that informed the development of the CIF. With this as background the document then presents the 2018 Capital Investment Framework of the District. 1.2 BACKGROUND The 2017 Terms of Reference for the compilation of a Capital Investment Framework, prepared by the uMgungundlovu District Municipality, states that: In terms of the Local Government: Municipal Systems Act No. 32 of 2000 (MSA), municipalities are required to compile Spatial Development Frameworks (SDF) as a core component of integrated development plan. Further in the MSA Regulations S2 (4) (e) stipulates that, “a spatial development framework reflected in the municipal integrated development plan must set out a capital investment framework for the municipality’s development programmes”. Accordingly, the Spatial Planning and Land Use se Management Act 16 of 2013 (SPLUMA) in terms of Section 21, which reads: “a municipal spatial development framework must determine a capital expenditure framework for the municipality’s development programmes, depicted spatially’’. As per these legislative requirements, the proposed CIF stems from the basis above, and is informed by the outcomes of SDF that was completed by the District Municipality in 2014, including Local Municipal SDF’s. Notwithstanding the requirements for a Capital Investment Framework (CIF) as reflected in the Spatial Land Use Management Act (SPLUMA), Act 32 of 2000 the CIF should also address the following (as per the Terms of Reference): . Development of Capital Investment Framework for the study area in accordance with objectives; . Review, update and enhance where necessary the existing data about the District; . Identify and undertake assessment of critical components for CIF to achieve objectives of the project.; . Indicate the kinds capital investment that would be desirable in the area or in specific parts of the area; . Detailed implementation plan actions and estimated costings, encompassing timeframes and include roles and responsibilities; . Recommendations on institutional arrangements and collaborations; . Alignment of prioritisation of programmes and projects of municipalities, agencies and line departments; . Alignment with the District EMF with more focus on key focus areas (KFA); . Alignment with UMDM Technical Services Department current projects; and . Identity
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