Municipal Innovative Infrastructure Municipal Innovativefinancing Conference 2018 Infrastructure Financing Conference 2018

Municipal Innovative Infrastructure Municipal InnovativeFinancing Conference 2018 Infrastructure Financing Conference 2018

Programme

Date: 13 – 15 June 2018 Host: Ekurhuleni Metropolitan Venue: Emperor’s Palace, Kempton Park

Unlocking Infrastructure Financing to Accelerate Service Delivery

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Executive Director: Municipal Finance, SALGA Mr Simphiwe Dzengwa

The South African Local Government Association (SALGA) will host the Municipal Innova- tive Infrastructure Financing Conference that will bring together municipalities, industry experts and key stakeholders in local government infrastructure funding. The conference aims to ‘Facilitate Shared Learning between Municipalities’ through creating a platform to explore, deliberate and share ideas on innovative funding mechanisms for South African municipalities.

Funding for local government capital infrastructure in South Africa is limited, considering the constitutional mandate to provide basic infrastructure services to communities. Given the limited resources in the form of grant funding and own revenue, municipalities have to find innovative streams of investing in infrastructure and augmenting capital budget deficits in order to accelerate the eradication of infrastructure backlogs and to fulfil their developmental role.

The objectives of the conference are to;

• Be a one stop shop between municipalities and financiers

• To showcase best practices on municipal innovative infrastructure financing

• To provide a focus on the evolution of municipal trading services and how innovative infrastructure financing can help municipalities with this evolution.

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Day 1: Wednesday, 13 June 2018

Session 1: Welcome & Setting the scene (09H00 – 11H15)

Facilitator: Cllr Mpho Khunou, Chairperson of SALGA Municipal Finance Working Group 07H00 – 09H00 Registration

09H00 – 09H20 • Opening and Welcome • Cllr Mzwandile Masina, Executive Mayor: Ekurhuleni Metro 09H20 – 09H45 • General Role of • Cllr Parks Tau, President: municipalities in catalysing SALGA the economy through infrastructure investment 09H45 – 10H10 • How municipalities • Mr Mcebisi Jonas, Special contribute to the macro Presidential Special Envoy economy through leveraging on Investment capital infrastructure 10H10 – 10H20 • Introduction of the Hon • Cllr Mpho Khunou Minister of COGTA National Chairperson, Municipal Finance Working, SALGA 10H20 – 11H00 • The IUDF and identifying • Hon Andries Nel, Deputy intermediate cities as zones Minister: COGTA of growth how to effectively enable capital funding of infrastructure projects in these municipalities 11H00 – 11H15 • Reflection by SALGA • Mr Simphiwe Dzengwa, Executive Director,

SALGA 11H15 – 11H45 Media Briefing (Acting CEO, Dep. Minister, President, Presidential Envoy) Tea Break

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Session 2: Policy Environment & Funding Gap Needs (11H45 - 13H00)

Facilitator: Mr Subesh Pillay, Gauteng Legislature 11H45 – 12H30 Legislation and Policy • Ms Judy Nkosi, Director, Environment for Municipal National Treasury Infrastructure Financing: • Mr Steven Kenyon, • The Municipal Borrowing Director, National Treasury Policy Framework • Ms Cassandra Nkuna, • Amendments to the DoRB Director, National Treasury • The IUDF Grant

• Development Charges

• An understanding of the new policy reforms in municipal infrastructure financing. 12H15 – 13H00 Infrastructure Investments • Mr Chucheka Ben needs just how much does local Mhlongo, Executive government need to invest in? Director, Infrastructure Finance: DBSA • Investment for economic growth, backlogs to be eradicated • How much Local Government invest must invest to drive sustainable development and economic growth 13H00 – 14H00 Lunch

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Session 3: Credit Worthiness, what kind of Municipality can borrow (14H00 – 17H00)

Facilitator : Ms. Shiva Makotoko, Inca 14H00 – 14H10 • Introduction of the Hon • Cllr Mpho Khunou Minister of Finance National Chairperson, Municipal Finance Working, SALGA 14H10 – 14H30 • A broad overview of the • Hon Nhlanhla Nene, macroeconomic climate and Minister of Finance potential of borrowing in local government 14H30 – 15H00 • Business solutions – • Dr Xolani Ngobese, Infrastructure challenges Municipal Infrastructure for rural municipalities and Support Agent MISA delivery coordination at Local Government 15H00 – 15H30 Tea Break Municipal Credit Rating & Institutional Arrangements 15H30 – 16H00 This session will discuss the • Mr Sefotle Modiba, following: Director: Group Treasury, City of Johannesburg • Methodologies applied by the Credit Rating Agencies; • Ms Sylvia Chahonyo, General Manager, South • A dedicated rating tool for SA Africa Moody’s Investors Municipalities Service • Municipal Credit Worthiness for Urban Municipalities. • How municipalities with declining industries and demarcated spaces are managing credit worthiness. 16H00 – 16H30 This session will discuss the • Ms Kgomotso Letsatsi, following: Executive Director, Matmap Investments • Stable and predictable revenues; • Mr Sibonelo Mbele, Chief Investment Officer • Operating Surpluses Finance, Pension and • Financial Planning Major Projects, eThekwini Metropolitan Municipality • Financial health and good governance 16H30 – 17H00 • Day 1 closing remarks • Mr Simphiwe Dzengwa, Executive Director, Municipal Finance: SALGA 18HOO - 21H00 Networking Cocktail (Hosted by DBSA CEO)

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Day 2: Thursday, 14 June 2018

Session 4: Infrastructure Funding And Changing Climate (09H00 – 10H30)

FACILITATOR: Ms Telly Chauke, SALGA

09H00 – 09H30 This session will discuss the fol- • Mr Gray Marguire, Chief lowing: Director, Environmental Sustainability: • Exploring Opportunities for Department of Domestic Local Investments Environmental Affairs & • Innovation Finance for Development Planning Sustainability • Mr Jay Bagwan, Executive Manager: Water Research Commission 09H30 – 10H00 This session will discuss: • Ms Rebecca Cameron, Professional Officer, • Bringing financiers and Climate Change, Energy municipalities together to and Resilience: ICLEI realise local climate action. 10H00 – 10H30 • Building for future SA Cities • Sithole Mbanga, CEO, – City Features: Certainty and South African Cities uncertainty Network 10h30 – 11h00 Tea Break

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Session 5: Break Away Sessions (11H15 - 12H30)

Project Preparation Session Lenders And Fiscal Tools To Fund Investors Session Infrastructure Session (Sponsored By Vodacom) (Sponsored By Absa) (Sponsored By Old Mutual)

Problem Statement – The Problem Statement Problem Statements – All capacity of municipalities to – South Africa has municipalities in the country access development projects fairly mature and well struggle to spend their feasible enough to attract developed financial infrastructure grants. private finance is limited. Global sector. Private impediments to greater private infrastructure finance • How can Municipalities infrastructure investment at options are readily improve on their municipal level include; available dependent capacity to interpret on the municipality’s grant conditions as - Capacity Constraints ability and capacity articulated in the DORB to leverage these grant frameworks? - Lack of Awareness financing tools. • What key supply • Is proper project • What Innovative chain interventions preparation the key to financing may be initiated by unblocking infrastructure instruments can municipalities to execute bottlenecks? municipalities infrastructure projects linked to grants? • What project preparation explore to facilities are available to fund their • Grant funding for repairs local government? infrastructure and maintenance of projects? infrastructure, what is • Proposals on a dedicated available? Project Preparation Facility: SALGA’s Role? Expected Outcomes • Is there alignment • A discussion on Expected Outcomes between political vision the different • How to initiate public and management financing tools implementation? infrastructure projects with their on private land suitability for each category • Understanding of the Expected Outcomes extent to which litigation • A perspective is impeding spending on • Better understanding from financiers roll out of infrastructure of alignment between on the sector’s projects physical planning, financing appetite infrastructure planning and their key • Understanding of the and financial planning. observations new developments in the reform of infrastructure • Know –how on • Matchmaking financing, what possible development of Bankable of prospective support can be provided projects projects to municipalities, A • Matchmaking of DORB Technical forum? prospective projects 12H30 – 13H30 Lunch

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Session 6: Break Away Sessions (13H30 - 14H45)

Project Preparation Session Lenders And Fiscal Tools To Fund Investors Session Infrastructure Session (Sponsored by Vodacom) (Sponsored by ABSA) (Sponsored Old Mutual)

Problem Statement – The Problem Statement Problem Statements – All capacity of municipalities to – South Africa has municipalities in the country access development projects fairly mature and well struggle to spend their feasible enough to attract developed financial infrastructure grants. private finance is limited. Global sector. Private impediments to greater private infrastructure finance • How can Municipalities infrastructure investment at options are readily improve on their municipal level include; available dependent capacity to interpret on the municipality’s grant conditions as - Capacity Constraints ability and capacity articulated in the DORB grant frameworks? - Lack of Awareness to leverage these financing tools. • What key supply • Is proper project • What Innovative chain interventions preparation the key to financing may be initiated by unblocking infrastructure instruments can municipalities to execute bottlenecks? municipalities infrastructure projects linked to grants? • What project preparation explore to facilities are available to fund their • Grant funding for repairs local government? infrastructure and maintenance of projects? infrastructure, what is • Proposals on a dedicated available? Project Preparation Facility: SALGA’s Role? Expected Outcomes • Is there alignment Expected Outcomes between political vision • A discussion on and management the different • How to initiate public implementation? financing tools infrastructure projects with their on private land suitability for each category • Understanding of the Expected Outcomes extent to which litigation • A perspective is impeding spending on • Better understanding from financiers roll out of infrastructure of alignment between on the sector’s projects physical planning, financing appetite infrastructure planning and their key • Understanding of the and financial planning. observations new developments in the reform of infrastructure • Know –how on • Matchmaking financing, what possible development of Bankable of prospective support can be provided projects projects to municipalities, A • Matchmaking of DORB Technical forum? prospective projects 14H45 – 15H30

Tea Break

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Session 7: Report Back and Closure (15H30 - 16H30)

Facilitator: Mr Lucky Leseane, SALGA 15H30 – 16H15 • Commission Report Back • Mr Lucky Leseane, and Recommendations Provincial Executive - a concise report on the Officer : SALGA commissions’ discussions and Gauteng Office pronouncements made.

16H15 – 16H30 • Closing Remarks • Mr Simphiwe Dzengwa, Executive Director, Municipal Finance: SALGA Closure, Debrief for Masterclass

DAY 3: Friday, 15 JUNE 2018

Session 8: Half Day Masterclass (08H00 - 13H00)

Facilitator: Mr James Matsie, Salga

08H00 – 10H30 A high level technical training • Mr Daniel Mazibuko, on aspects discussed in plenary Associate Analyst Sub- and commission. The session is Sovereign Group, Moody’s designed for municipalities to delve into detail and have a ‘one • Mr Andre Kruger, Project on one’ conversation on specific Manager, African situations they are encountering Investment and Integration in process of building projects Desk: Nepad Business and financing them. Foundation • Detailed Methodology for • Mr Geoff Makhubo, Sub-Sovereign States Concillor, City of Johannesburg • A Session on Public Private Partnerships • Mr Tshepo Ntsimane, Head of Infrastructure Finance • Municipal Pooled Financing for Metros, Secondary Cities Process and Water Boards: DBSA • Funding Regional Facilities for Water 10h30 – 11h00 Tea Break 12H50 – 13HOO Way Forward and Closure

Lunch, Departure

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Notes

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Notes

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Contact Details: Social Media Telephone: Facebook: South African Local (012) 369 8000 Government Association (SALGA) Fax: (012) 369 8001 Twitter: @SALGA_Gov YouTube: SALGA TV Physical Address: Menlyn Corporate Park, Block B 175 Corobay Avenue Cnr Garsfontein and Corobay Waterkloof Glen ext11 Pretoria