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Intervening towards a better future Summary of Tshwane’s City Strategy Implementation Agenda Executive Briefing Draft for Comment: Draft 5.1 October 2005

Tshwane CDS Implementation Draft 5.1

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Implementing the Tshwane CDS

Table of Content

EXECUTIVE SUMMARY ................................................................ 4

1. SETTING THE SCENE............................................................ 5 1.1 Background .....................................................................................................5 1.2 Purpose ............................................................................................................6 1.3 Process.............................................................................................................6 1.4 Intervention Selection......................................................................................7

2. CREATING AN INTERNATIONAL LOGISTICAL CLUSTER . 8 2.1 Introduction .....................................................................................................8 2.2 Project description......................................................................................... 10 2.3 Tshwane’s role in delivering the International Logistical cluster.................. 11 2.4 Resource requirements and delivery preconditions ....................................... 11 2.5 Start up and engagement requirements.......................................................... 12

3. COMPLETING A METROPOLITAN MOBILITY RING.......... 13 3.1 Introduction ................................................................................................... 13 3.2 Project Description ........................................................................................ 15 3.3 Tshwane’s role in delivering the Metropolitan Mobility Ring Initiative....... 15 3.4 Resource requirements and delivery preconditions ....................................... 16

4. DEVELOPING THE ZONE OF CHOICE ............................... 17 4.1 Introduction ................................................................................................... 17 4.2 Project Description ........................................................................................ 19 4.3 Tshwane’s role in delivering the Development of the Zone of Choice ......... 20 4.4 Resource requirements and delivery preconditions ....................................... 21

5. CONNECTING TSHWANE TO THE KNOWLEDGE ECONOMY ................................................................................... 22

5.1 Introduction ................................................................................................... 22 5.2 Project Description ........................................................................................ 24 5.3 Tshwane’s role in delivering the initiative and key next steps ...................... 24

6. WORKING INFRASTRUCTURE PROGRAMME.................. 24 6.1 Introduction ................................................................................................... 24 6.2 Project description......................................................................................... 26 6.3 Tshwane’s role in delivering a Working Infrastructure initiative.................. 27 6.4 Resource requirements and delivery preconditions ....................................... 28

7. MOVING TSHWANE INITIATIVE.......................................... 29 7.1 Introduction ................................................................................................... 29 7.2 Project Description ........................................................................................ 31 7.3 Tshwane’s role in the Moving Tshwane initiative......................................... 32 7.4 Resource requirements and delivery preconditions ....................................... 32


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8. VIBRANT CAPITAL PROGRAMME ..................................... 33 8.1 Introduction ................................................................................................... 33 8.2 Projects Description ...................................................................................... 35 8.3 Tshwane’s role in the Vibrant Capital initiatives .......................................... 39

9. QUALITY PUBLIC SPACES PROGRAMME........................ 40 9.1 Introduction ................................................................................................... 40 9.2 Project Description ........................................................................................ 41 9.3 Tshwane’s role in delivering Quality Public Spaces ..................................... 42

10. IMPLEMENTATION FRAMEWORK.................................. 43 10.1 Institutional design for delivery..................................................................... 43 10.2 Resourcing Framework ................................................................................. 45 10.3 Stakeholder Engagement ............................................................................... 46

11. CONCLUSION................................................................... 47


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Executive Summary In moving its City Development Strategy to concrete implementation Tshwane has identified a series of 8 lead-in initiatives through participative Rapid Planning Initiatives (RPIs). RPI outputs are outlined in some detail in this report to clarify the intended purpose and content of the proposed initiatives. The lead-in initiatives are: • Creating an international logistical cluster – establishing a cluster of road, rail

and air freight facilities in the Zone of Choice; • Completing a metropolitan mobility ring – completing the PWV 9 highway link

through the West of Pretoria; • Developing the Zone of Choice – developing a rich choice of housing

opportunities on well located land while contributing to meeting density preconditions for viable public transport;

• Connecting Tshwane into the Knowledge Economy – taking the Digital Hub initiative to its next level through the establishment of a new business joint venture partnership;

• Working Infrastructure programme – securing the existing infrastructure base through a planned re-investment programme;

• Moving Tshwane initiative – introducing a major public transport initiative; • Vibrant Capital Programme – developing key housing, commercial, symbolic

and public space initiatives focusing in the heart of the capital ; and • Quality Public Places Programme – improving the municipal service interface

by re-developing and improving existing municipal service points. Together the Tshwane CDS initiatives motivate public-led investment exceeding R10bn over the next 5 to 10 years that would: • Impact on eliminating urban poverty in Tshwane; • Unlock growth in the economy - Realizing an African Success; and • Contribute to a better city for all – creating an Iconic African City By articulating a concrete but ambitious action agenda whereby the City of Tshwane can work in close partnership with inter-governmental agencies and the investment community that will change the face of the Capital city for the next decades. The time has come to combine bold thinking with realistic actions in making our city work for its people.


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Developing the North

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Figure 1: Tshwane CDS Framework

1. Setting the scene 1.1 Background 1.1.1 For the better part of the 20th century Pretoria managed to externalise the

cost of its urbanisation through the jurisdictional exclusion of a vast rural hinterland that was nevertheless economically interdependent on the urban core. Local government boundary reform since the 1994 political transition progressively amalgamated Pretoria with the greater part of its northern hinterland1, establishing the City of Tshwane. From inception Tshwane was faced with a dualistic developmental challenge; serving the needs of a thriving urban economy inclining towards the south and bringing the sprawling and formerly neglected dormitory Apartheid townships in the north into the municipal services system.

1.1.2 Since 2000 local elections Council dealt aggressively with the integration

of the North through its housing programme and basic services roll out. Given the spatial economy of Tshwane Council’s intervention in the North to date was necessary and logical. However, there has been growing awareness of the limitations of impacting on the lives of the poor through the provision of only housing and services infrastructure. While the “basic needs” approach improved the quality of life of the urban poor this approach does not create sufficient economic opportunities and places enormous strain on municipal and individual household budgets. Most importantly, the basic needs approach, when implemented in relative isolation, does not impact sufficiently on transforming the ills of the Apartheid city, and even serves to further entrench undesirable settlement patterns.

1.1.3 In order to establish a developmentally sound and

politically viable approach to compliment its existing developmental effort Tshwane launched its City Development Planning initiative, culminating in Council adopting a CDS in September 2004. The CDS lays out a conceptual framework for Tshwane’s development that seeks interventionist public sector investment towards growing the urban economy while achieving improvements in the lives of ordinary people.

1 Additional areas are to be amalgamated from 2006 through boundary extensions into the Northern Province.


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• Public Private & Capital City Partnerships• Mayoral Imbizo Programme• Deepening Democracy – participation

Partnering for Development

• Customer Care programme• Institutional Restructuring• Municipal Operations Programme

Towards Developmental Service Delivery

• City Living • Creating Places of Value• Places of Reflection and Celebration

Living and Celebrating our City

• Connectivity Programme (movement, access, mobility, physical, economic, communications intersections and paths)

Connecting Tshwane

• Basic Need and related Bulk Infrastructure• Public-led Investment • Service Charter and Equitable Services

Foundations for Development

ProgrammeOptions

• Public Private & Capital City Partnerships• Mayoral Imbizo Programme• Deepening Democracy – participation

Partnering for Development

• Customer Care programme• Institutional Restructuring• Municipal Operations Programme

Towards Developmental Service Delivery

• City Living • Creating Places of Value• Places of Reflection and Celebration

Living and Celebrating our City

• Connectivity Programme (movement, access, mobility, physical, economic, communications intersections and paths)

Connecting Tshwane

• Basic Need and related Bulk Infrastructure• Public-led Investment • Service Charter and Equitable Services

Foundations for Development

ProgrammeOptions

Figure 2: Tshwane Rapid Planning Programme

1.1.4 However, while the CDS is in itself an important milestone it is critical to turn the CDS into a tangible and concretised programme of action for the city. This document summarises the CDS action agenda.

1.2 Purpose 1.2.1 It is the purpose of this document to define the CDS’s implementation in

terms of a package of selected initiatives and describing each in terms of:

o The Municipality’s role in activating each initiative; o Preliminary ideas on resourcing; and o The partnerships required in delivering these initiatives.

1.3 Process 1.3.1 During August and September 2005 the City of Tshwane conducted 5

Rapid Planning Initiatives (RPI) aimed at shaping a CDS implementation agenda.

1.3.2 The RPI technique draws upon significant amounts of the information and

conceptual ideas that already exist in the collective knowledge within the municipality and its stakeholders. A special facilitated RPI process allows this information and insights to be drawn out and “packaged” into a strategic response within a very short space of time. Because the strategic responses are developed closely with the very people that will be involved in implementation of proposals tend to generate realistic, pragmatic and often extraordinary rich solutions.


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1.4 Intervention Selection 1.4.1 RPI sessions aimed to identify ambitious high leverage and high impact

initiatives that would serve to concretise the CDS into action and: o Impact on eliminating urban poverty in Tshwane; o Unlock growth in the economy - Realizing an African Success; and o Contribute to a better city for all – Creating an Iconic African City.

1.4.2 In the current stage of CDS implementation development the focus is on

an action oriented project selection that will achieve the above objectives, but also are able to: o Create the right shifts in the city’s development pattern; o Are at sufficiently large scale; o Taking a long view; o Reaching beyond the municipal constraints; and o Be bankable.

1.4.3 Implementation, however, is also dependent in creating the correct

preconditions for delivery; including institutional alignment, securing financial resources and creating optimal stakeholder configurations.

1.4.4 From the above informants the RPI sessions concretized the following

CDS lead-in initiatives o Creating an international logistical cluster; o Completing a metropolitan mobility ring; o Developing the Zone of Choice; o Connecting Tshwane into the Knowledge Economy; o Working Infrastructure programme; o Moving Tshwane initiative; o Vibrant Capital Programme; and o Quality Public Places Programme.

1.4.5 In the sections below each of these lead-in initiates are summarised to

illuminate: o What the project is about – key elements; o Tshwane’s role in activating the strategy; o Resourcing requirements & delivery preconditions; and o Start-up and engagement requirements.


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PWV9 N1

Platinum Highway

Rail

Figure 3: Regional location of logistical cluster

Figure 4: Location of Logistical cluster in the North of Tshwane

2. Creating an International Logistical cluster

2.1 Introduction 2.1.1 Contemporary urban economic growth is dependent on the rapid

movement of goods and people. It is no longer sufficient to only be a location for the production of goods and services if raw material input and markets cannot be accessed rapidly and efficiently. Logistics and efficient freight movement are therefore key factors in facilitating economic growth and represent a major employment sector.

2.1.2 Traditionally mass movement of goods was rail

based. In more recent decades rapid growth of road based movement was experienced with loss of market share in rail freight. In addition to road and rail, a key growth area in logistics is the movement of goods through air freight.

2.1.3 Key locational advantages place Tshwane at a

nexus of north south and east west road and rail connections. Main rail linkages between east

and west coast ports and north south movement through the sub-continent runs through Tshwane, providing the city on a key comparative advantage. The missing link in the bundle of available freight movement modes, so to speak, is an international air freight facility.

2.1.4 A key site of

some 3 800 hectares in the Zone of Choice abuts the N4 east-west between Maputo and Walvis Bay/Luanda and N1 north-south road between the Cape and Cairo


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through the Rift Valley countries. In effect the intersection between the N4 and N1 provides a key logistical node within SADEC and sub-Saharan Africa.

2.1.5 Incredibly the site also abuts railway links with the key compass

directions. 2.1.6 Its location and size allows sufficient space to construct a new

international freight airport to complement the passenger services operating from elsewhere in the Gauteng region. In addition sufficient space also exists to create a container depot and transfer facility on the site.

Looking West

N1

N4 WestBon Accord

WonderboomAirport

“TIFA”

Regional Container Facility

Interchange ofHighest value

Rainbow Junction

Figure 5: Potential macro site utilisation

2.1.7 By locating a multi-modal logistical facility in the Zone of Choice Tshwane

can establish a new major job facilitator in the North that not only compliments the needs of the nearby automotive cluster but also can open economic opportunities for sectors that could benefit from the opportunities offered by improved transport linkages.


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11 Agriculture and hunting11 Agriculture and hunting12 Forestry and logging12 Forestry and logging13 Fishing, operation of fish farms13 Fishing, operation of fish farms

21 Mining of coal and lignite21 Mining of coal and lignite

22 Extraction of crude petroleum and natural gas22 Extraction of crude petroleum and natural gas

23 Mining of gold and uranium ore23 Mining of gold and uranium ore24 Mining of metal ores24 Mining of metal ores25 Other mining and quarrying25 Other mining and quarrying

30 Food, beverages and tobacco products30 Food, beverages and tobacco products31 Textiles, clothing and leather goods31 Textiles, clothing and leather goods32 Wood, paper and printing32 Wood, paper and printing

33 Fuel, petroleum, chemical and rubber products33 Fuel, petroleum, chemical and rubber products

34 Other non-metallic mineral products34 Other non-metallic mineral products35 Metal products, machinery and hhold appliances35 Metal products, machinery and hhold appliances36 Electrical machinery and apparatus36 Electrical machinery and apparatus

37 Electronic, sound/vision, medical & other appliances37 Electronic, sound/vision, medical & other appliances38 Transport equipment38 Transport equipment

39 Furniture and other items NEC and recycling39 Furniture and other items NEC and recycling41 Electricity41 Electricity

Figure 6: Comparative economic sector growth performance

2.1.7 A cursory look at existing high performance economic growth sectors

within Tshwane all suggest that transport equipment and metal products associated with the automotive cluster, other manufacturing and agriculture can all significantly benefit from a logistical intervention.

2.1.8 With an annual job creation target of 66 000 new jobs investment in a

logistical facility may be the single most important intervention in sustaining the locational advantages of the existing export oriented manufacturing at Rosslyn and associated employment.

2.2 Project description 2.2.1 To facilitate the development of a cluster of logistical infrastructure

specialising in the movement of freight for the largest economic region in sub-Saharan Africa by: o Enabling the development of a specialised freight airport [Tshwane

International Freight Airport initiative (TIFA)]; o Facilitating investment by Transnet into freight rail operations to make

use of the locational advantages of the site, including constructing new freight handling facilities;

o Encouraging the relocation of exiting an new container facilities on the TIFA site, including Capital Park;

o Encouraging the development of road freight facilities close to the N4-N1 intersection;

o Encouraging complimentary land uses, including light industrial, office and service industries in or around the core site; and in addition

o Negotiate complementary road realignment (K6) and constructing direct N1 and N4 access interchanges for the TIFA site.


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2.3 Tshwane’s role in delivering the International Logistical cluster

2.3.1 Tshwane is not currently contemplating to be the developer of the

logistical cluster and sees its role in forging a partnership between the key role players:

o Department of Transport – the logistical cluster is creating transport

infrastructure of national and international importance and will require the active involvement of DoT in all stages of development;

o Transnet – represents a key investor and it is critically important that Transnet’s investment planning in national rail infrastructure incorporates the logistical cluster. Tshwane in effect is hoping to attract a focussed portion of the R165bn announced by Cabinet towards sustaining a national economic growth rate of 6% and creating a million jobs within the next five years;

o Gauteng Province – as a key strategic supporter of a dedicated freight airport for the Gauteng Region and surrounding provinces;

o Civil Aviation Authority – the main statutory approval authority for the approval of a new international airport;

o Gauteng Department of Transport is currently the roads authority for the K6, a crucial access road to the proposed TIFA site. The realignment of the K6 is required and the possible construction brought forward;

o SANRAL – approval for and constructing interchanges on the N4 and N1 will be required by SANRAL; and

o Rand Merchant Bank, as the property owner through First Rand Properties and could be a commercial investor or developer of the TIFA site.

2.3.2 Tshwane does however have a critical responsibility as custodian of

changing land use rights. It is of critical importance that the TIFA site is not lost through the approval of unaligned development rights.

2.4 Resource requirements and delivery preconditions 2.4.1 According to its current approach to facilitate the development of the

International Logistical Cluster, Tshwane does not require any capital. While the City will have to provide some seed funding in order to support the facilitation and partnership fostering process this amount will be insignificant in relation to the actual development cost.


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2.5 Start up and engagement requirements

2.5.1 While the logic for the creation of a partnership to unlock the logistical cluster development is evident, it is felt that the creation of such a partnership is dependant on National Government adopting the initiative as a national priority. Establishing the buy-in and active support of the National Department of Transport is therefore a critical first step, closely followed by bringing the logistical elements of the proposal into Transnet’s planning and capital expansion configuration.

2.5.2 In addition the support of the Gauteng Province will also be required. In

order to facilitate engagement with these stakeholders an initial scoping, pre-feasibility and investment prospectus document has to be prepared that articulates the logistical cluster proposal in greater detail. It is proposed that Tshwane sponsors the development of such a report in order to kick start the stakeholder engagement process.

2.5.3 Once the key approval, funding and implementation agencies have been

secured Tshwane can facilitate an application to the CAA for the development of an international freight airport.

2.5.4 The land owner does not have a significant role to play in the initial stages

of the project, but has a high level of awareness of the proposals and could potentially finance and or develop aspects of the site under its control. Similar development proposals have already been shared with Tshwane.

2.5.5 Current preconditions mooted for the closing down of Wonderboom

Airport as part of such proposals, however, is premature as the success and viability of current investment in Wonderboom cannot be risked prior to finalization of political buy-in and statutory approvals for TIFA.


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3. Completing a metropolitan mobility ring 3.1 Introduction 3.1.1 The exorable rise in traffic has placed enormous strain on city mobility

routes. These highways are however the arteries that allows the city to function. This is especially true for cities such as Tshwane with far flung dormitory suburbs. Increasingly people simply stay too far away from the commuter rail system to reach their destinations without having to use one or more road-based public transport. As a consequence there is a natural increase in road use by ordinary people as almost all growth in public transport ridership is on road. Mobility routes are therefore a critical part in the establishment of viable pubic transport.

3.1.2 Incredibly, with the exception of the Platinum Highway section of the N4

and a section of the N17, no major road construction was done in the last 25 years – leaving Tshwane with a series road capacity deficit that affects urban efficiency negatively.

3.1.3 As 45% of the total Tshwane economic active population dwells north of

the Magaliesberg and only 23% of jobs are located in the North there is an existing high need for increased mobility; giving rise to strong north/south commuting patterns. In areas such as the western parts of Tshwane there is simply no mobility route to accommodate increased traffic flows. This is in stark contrast to the eastern parts of Tshwane served by the N1 and the south serviced by more than one parallel mobility routes. Development generally follows mobility, so it is no surprise that the eastern parts of Tshwane shows more growth vigor than the west.


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3.1.4 While reaching capacity constraints the N1 provides high capacity

(private) mobility to both the south and east of Tshwane along a north-south axis. The N4 services north areas along an east-west orientation while the N14 serves a similar role in the south. In effect Tshwane has three legs of a metropolitan ring road system in place. The missing link to complete a metropolitan mobility ring is located in the west; where the Mabopane highway terminates.

3.1.5 The key historical stumbling block to constructing this extension of the

PWV9 is the need for a tunnel through Daspoortrand. While SANRAL has the building of the PWV9 extension on their schedules of work (construction on the Sandton to N14 will start soon) only roads that can be viably tolled are currently considered priorities. Toll viability is a function of traffic volumes and SANRAL does not consider the PWV9’s predicted traffic volumes sufficient to merit construction.

3.1.6 If the priority of extending the PWV9 is also measured on the

developmental impact it will have on some of the most depressed and poorest parts of the city then the construction priority will change. SANRAL, however, is not in a position to consider non-toll viability considerations in it road prioritization system. It is thus clear that something has to be done to overcome obstacles in the constructing the missing link in Tshwane’s mobility ring.

Figure 7: Key mobility routes in Tshwane

N14

N1

N4

Platinum Highway

Completing PWV 9 link South


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3.2 Project Description 3.2.1 Completing the metropolitan mobility ring, in essence consists primarily

out of the extension of the Mabopane highway (PWV9) south to link up with the N14 and Sandton.

3.2.2 Even if the task appears strait forward multiple objectives are pursued.

The objectives of the PWV9 extension include: o Improving accessibility of the North; o Creating the opportunity to establish the development of an activity

corridor – an initiative that failed to date due to the absence of the highway link. A large body of work has already been done towards the MCDC Development Corridor that can be reviewed and updated;

o Reducing the cost and therefore increasing the sustained viability of the automotive cluster;

o Unlocking economic growth in Pretoria west, a long depressed area; o Supporting the rapid development of the South; and perhaps most

importantly o Providing a key structural component in creating a metropolitan-wide

public transport system.

3.3 Tshwane’s role in delivering the Metropolitan Mobility Ring Initiative

3.3.1 The City of Tshwane has no ownership and little direct control over the

PWV9. This road is operated by SANRAL on behalf of the NDoT. Tshwane is therefore necessitated in following an indirect development approach to ensure the PWV9 mobility link gets constructed. Tshwane’s role in activating metropolitan mobility ring initiative lies at three escalating levels: o Firstly Tshwane needs to lobby for the raising of PWV9’s priority

status to that of a national priority so as to facilitate its construction. For this reason the NDoT and Minister of Transport are key partners. As has been proven with the construction of the Platinum Highway (N4) the priority status of roads can be raised with strong political commitment. Tshwane’s argument for the construction of PWV 9 strongly rest on its role in improving public transport functionality in the city as a whole;

o Secondly, in order to complement National Government decision-making Tshwane may pursue the creation of a development partnership with SANRAL to overcome the viability thresholds of PWV9. Since it is accepted as a given that this road will have to tolled if it is to be constructed at all, then it may be necessary for Tshwane to provide top-up funding commitments to allow the project to go ahead. Top-up funding will effectively reduce SANRAL’s risk but,


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given the fact that traffic volumes could double within the planning horizon, will present a reasonable risk to the City to recover its financial commitments from tolls.

o Thirdly, should the PWV9 be constructed, Tshwane needs to optimise the developmental opportunities by delivering a bundle of related initiatives. Increasing the economic multiplier of investing in completing PWV9 will make it necessary to proceed with inter alia, infrastructure in support of a development corridor

3.4 Resource requirements and delivery preconditions Construction cost of the PWV9 will require between R1.3-1.5bn. The amount required to create toll viability is slightly less at R900million to R1.1bn, as toll income will cover the rest of the cost. It is however not likely that the whole amount will be provided by Tshwane as some will be provided in the form of grants and recovered from toll fee growth. The eventual financial impact will be subject to a negotiation between the key stakeholders. Engagement of NDoT and SANRAL will benefit from the preparation of a pre-feasibility study that sets out the project requirements in greater detail. Once a pre feasibility study has been completed stakeholder engagement can commence, starting with seeking national project status from NDoT.


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Creating market vibrancy

4. Developing the Zone of Choice 4.1 Introduction 4.1.1 There are several aspects to the development of

the Zone of Choice: o Protecting and growing existing jobs creating

sectors – mainly provided in GaRankuwa, Babalegi and specifically the Rosslyn-based automotive manufacturing cluster the key intervention planned in terms of the CDS is improved access through the proposed construction of PWV9 so as to reduce cost of business in the area. Modelling done as part of the MCDC Corridor has indicated that significant savings can be achieved through improved access;

o Growing new economic sectors in and around the Zone of Choice – the CDS has identified three key growth areas; Dinokeng, Agriculture and the establishment of the Logistical Cluster. However, in terms of an focused implementation agenda emphasis is placed on the Logistical Cluster as the highest priority intervention;

o Developing key site specific initiatives – such as Rainbow Junction, Wonderboom, Bon Accord and Onderstepoort; and

o Developing new housing on well located land- that serves to provide economic mobility and improve public transport viability.

4.1.2 In the development of the Zone of Choice Intervention specific emphasis

is required for public transport and housing development. This choice does not reflect negatively on the importance of other initiatives and projects in the area addressed in terms of IDP priorities, but mutually reinforce the vitality of the area. Yet, in terms of the RPI outcomes a housing initiative received the significant weight as a high impact high value initiative.

4.1.3 A basic point of departure is that poverty cannot only be effectively

addressed only in those areas where the poor are currently residing. An approach that only focuses on providing housing and basic services in townships may inadvertently entrench the inequitable spatial economy of Tshwane. The gap between subsidised housing for the poorest and access to bondable housing needs to be bridged. It is important in also


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Creative housing beyond RDP standards

providing assistance to people to acquire assets with real economic value in overcoming the constraints of a dual city where the poor are economically trapped in marginalised townships, unable to access the benefits of the urban economy.

4.1.4 While the townships cannot be neglected the City also has an obligation

to open opportunities for ordinary people in all parts of the city. A family living in Winterveld today, for example, will perhaps still live there in 20 years, albeit in better conditions. However, this does not mean that the next generation of their children also have to be settled in areas with low economic opportunity as they will have the choice to settle where they wish. If, however, they have to have such a choice then sufficient alternative locational options have to be created. Should the housing market not provide an appropriate range of housing opportunities, at different levels of affordability and various locations, then Tshwane should consider intervening and facilitate the creation of a richer housing choice to ordinary people.

4.1.5 Tshwane housing effort to date has primarily been

locked into the delivery of RDP housing with a more recent increase in inner city housing. Given the continuous energy required to deliver RDP houses (another 50 000 units are under planning) its is increasingly clear that moving beyond the RDP delivery paradigm will take extraordinary effort.

4.1.6 In opening choice in housing type, location and price

the CDS also want to pursue ways to create economic assets for the poor. RDP housing, as much as it provides access to critical shelter, does not leave the urban poor with much economic value. The language on poverty has to change from poverty relief to poverty elimination. Part of Tshwane’s CDS challenge is to increase wealth in the manner public resources are invested. A key source of increasing wealth is reflected in the investment individual households make in acquiring a dwelling with real economic value and the use of such a property to access capital. Increasing the range of housing opportunities in well located areas will increase in economic value because, unlike many peripheral townships, the location to economic opportunity can be translated into real capital assets. By creating a legacy of economic assets Tshwane in effect creates preconditions and opportunity for intergenerational economic mobility and capital creation.


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4.1.7 A critique of this development model points to the dangers of gentrification

whereby the initial beneficiaries sell state subsidised assets, sometimes at a massive discount. The benefits of the housing stock created and economic assets established will however be lasting and should in itself be sufficient motivation to counter possible distortions caused by gentrification.

4.1.8 In order to have a meaningful impact in the Zone of Choice on housing

and public transport viability, development needs to be delivered at scale. Individual site-based developments will not overcome the haphazard nature of urban form and is unlikely to break the private vehicle dependent development model prevalent. For this reason the CDS is proposing integrated development proposals for large consolidated pieces of well located land.

Quality Public Transport

K8

Wonderboom Small holdingsWonderboom Small holdings

OnderstepoortOnderstepoort

4.2 Project Description 4.2.1 Developing of the Zone of choice calls for a state-led development of a

public transport viable access corridor consisting of quality housing in excellent locations with mixed use.

4.2.2 The development concept calls for Tshwane to acquire land, provide seed

capital and create a dedicated, special purpose development entity with the mandate to develop the Zone of Choice.

Figure 8: New access corridor along K8 in the Zone of Choice


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4.3 Tshwane’s role in delivering the Development of the Zone of Choice

4.3.1 The CDS implementation premise is that the City of Tshwane ought to

take an active and interventionist role in the development of the Zone of Choice. This approach does not assume that the City will in all instances act as developer. Yet, the City has a keen interest to create the preconditions for making a different development model economically viable.

4.3.2 Tshwane’s agenda of work related to this initiative includes:

o Strategic and structured engagement of land owners as an important first tactical step to counter land speculation that may increase the cost of land acquisition to the City;

o Taking options, acquiring and consolidating key land parcels along the alignment of a new activity corridor route in the Zone of Choice. Specific sites to be considered include Wonderboom Smallholdings (in private ownership) and the southern section of the Onderstepoort Nature Reserve (publicly owner, but not by Tshwane);

o A key informant of the development of the Zone of Choice is a spatial development framework for the area. Despite progress made in setting planning frameworks for the North a significant amount of detail and integration remains in order to create a coherent development concept for public investment in the North;

o Preceding land acquisition Tshwane needs to do a land study to explore value, development rights, past development applications (as some negative records of decision is known) so as to inform land parcel selection;

o Since environmental considerations are key to unlocking strategic land in the Zone of Choice a proactive environmental assessment would be a significant lead time saving measure in procedural approvals for land development;

o Establishing a special purpose development entity/agency/company with a mandate to deliver on the development and the packaging of developments in the Zone of Choice;

o Initiative housing feasibility studies to configure the most appropriate housing delivery model to fit the Zone of Choice;

o Providing seed capital and balance sheet assets in the form of


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land holdings to the development entity to allow this company to access finance;

o Starting a negotiation process with Gautrans in relation to the priority in extending the K8 route as an activity corridor, including the possible realignment of the eastern section of the K8 and creating access to the N1;

o Incorporating the K8 activity corridor into the Tshwane public transport development agenda;

o Incorporating and aligning initial housing developments to the 2010 Soccer World Cup stadium that requires accessible housing nearby Rainbow Junction.

Figure 9: Zone of Choice main Transport Infrastructure

4.4 Resource requirements and delivery preconditions

4.4.1 Initial estimates of the capital start-up requirement for delivering the Zone of Choice are between R200-R250 million. Timing will be critically important as Tshwane must tactically secure land, either through taking options or acquisition, before land speculation drives the cost of land beyond viability thresholds. It is therefore critical to not only start this part of the development process as soon as possible but also to finance it sufficiently from 2006/07.

4.4.2 Provision on Tshwane’s capital budget is therefore an important

precondition for progress on the Zone of Choice. However, like in other CDS initiatives it is not likely that all the required funding will be secure out of Tshwane’s own capital or borrowing as this money is largely committed up the MTIEF outer years of 2008/09. Some reprioritisation is therefore

A draft development concept


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essential as well as raising new sources of capital funding. Key capital sources of funding considered include: o Sale of non-strategic assets; o Land swops; and o Partnering with land owners of strategic sites– including DoPW.

4.4.3 In addition to Tshwane’s start-up

investment requirement a key implementation proposal is to establish a special purpose vehicle that could act as development agent on behalf of Council to develop the Zone of Choice. A core precondition for the creation of such a special purpose vehicle is to provide it with a sufficient balance sheet of land assets and seed funding that will allow it to access funding in its own right.

5. Connecting Tshwane to the knowledge economy

5.1 Introduction 5.1.1 Tshwane has created a powerful communication

infrastructure whereby it can provide high capacity broadband digital transfer on fibre optic lines linked to its electricity network. The Digital Hub initiative offers significant opportunities for the city as it represents an existing capital investment.

5.1.2 The strategic value of the Digital Hub infrastructure is that it

serves to potentially reduce communication transactions cost and allows competitive advantage in linking Tshwane to the knowledge economy and “smart city” initiatives.

5.1.3 The purpose of the Tshwane Digital Hub is to provide

customers in the Tshwane area with an integrated bouquet of ICT based services and to stimulate economic growth in Tshwane by harnessing the ICT revolution. The key to this business plan is the balance between profitable businesses and economic development.

How it can look


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5.1.4 Technology product offerings flowing from the Digital Hub Infrastructure include : - o Voice Services o Wideband Services e.g. Integrated Services Digital Network (ISDN) o Low Capacity Digital Services o Bandwidth on Demand o Broadband Services o Value Added Network Service/Internet Service Provider (VAN/ISP) o Operator Services o Technical Services o Universal Service Obligations

5.1.5 The digital hub would facilitate Tshwane’s transition from 1st to the 2nd

economy by means of cheap broad band access. In the long term, the vision is to equip every household in the North with an email address and free access to internet within the next ten years. The North is equiped with networked powerline and can therefore be equiped with broad band connectivity; those communities can use computers as a learning tool. The digital hub could become a learning network; education could be offered via the internet. A connection from the University of Pretoria to Mamelodi and Atteridgeville is already in place. The challenge now consists of rendering the communities computer literate.

5.1.6 Tshwane is equipped with most of the broad band system infrastructure

(with a few circular nodes to add) but it may be confronted with potential bottle necks on the municipal borders. The forecast budget is R300 million per annum for the next 10 years, taking into consideration that the existing network can already generate income. It is also proposed to equip every new road with optical fiber pipelines; this will contribute to making Tshwane a digital city. If the broad band system is operational in the zone of choice, then it will become the most valuable location since the private sector will be driven there even more.

5.1.7 However, the Digital Hub initiative now has to move a next stage. Several

scenario’s are under scrutiny in order to facilitate the next step:

o Scenario 1 – Tshwane, and a licensed ICT operator including a Strategic Equity Partner (SEP) establishes a Metro Telco.(most profitable option);

o Scenario 2 – Tshwane lease Network (NW) infrastructure to licensed SA operators.

(Note: In both scenarios Tshwane retains the imperative to do its own Value Added Service Provision and may even elect to become a Value Added Network (VAN) supplier for other Tshwane customers. In this scenario, “Tshwane telco” would be a service provider competing


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with Telkom SA strictly within the Tshwane boundaries.)

5.2 Project Description 5.2.1 The point has now come to turn the Digital Hub infrastructure network into

a working business partnership that works for the City of Tshwane. Tshwane’s challenge is to unlock considerable value and to realize the investment potential of cheap broadband availability;

5.2.2 While Tshwane created the infrastructure – but is not necessarily well

positioned in being the operator of a broadband network. Next step is to facilitate a business joint venture whereby the infrastructure network can be leased or whereby the City can negotiate equity in a joint venture (and future profit) on the value of the infrastructure network.

5.2.3 Ownership of infrastructure, however, must remain with the City of

Tshwane due to its interrelation with electricity distribution networks. It follows that the establishment of a Metro RED is a matter that has to be dealt with in close cooperation with the future of the Digital Hub.

5.3 Tshwane’s role in delivering the initiative and key next steps

5.3.1 As legal impediments have been removed Tshwane in now in the position

to actively pursue an optimal business configuration that would best capture the value presented. Since significant capital outlay has been invested very little additional resources are required in order to capture the value of the business. Additional capital outlay of R300m per annum could in effect be done off-budget through a joint business venture.

5.3.2 A key first step in engaging in an exploration of the market is the

appointment of a transaction advisor that would represent the interests of the City and construct a business transaction on its behalf.

6. Working infrastructure programme 6.1 Introduction 6.1.1 Tshwane is exiting from a rapid urbanisation phase that started in the

1980’s with the de facto collapse of influx control. The rapid increase in urbanisation demand has coincided with a national trend of disinvestment of capital expenditure that progressively strengthened since 1985. With a


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relatively smaller pool of capital available the demand for municipal services and housing created a priority shift to new infrastructure expansion in the townships in line with urbanisation pressures. While massive progress has been made in extending infrastructure access to the urban poor this success has come at the price of neglect of the existing urban infrastructure.

6.1.2 An important urban economic theory construct is cumulative decay. The

economic theory of cumulative decay suggests that once infrastructure failure increases more failure would follow in a negative feedback loop. Electricity outages, for example, sucks up resources that would have been spend on preventative maintenance that in turn increases the risk for additional failures. As failures mount the cost of provision increases but the quality of service deteriorates. Once a city has entered into a cumulative decay cycle it takes an extraordinary fiscal effort to stabilise the service system. Anecdotal evidence mounts in Tshwane that the city may be entering a cumulative decay cycle, prompting an early response to arrest any further decline.

6.1.3 Securing the Tshwane’s municipal infrastructure for the future is of the

utmost strategic importance as it not only underpins the city’s tax base, but also underlies the urban economy. Without the tax base the municipality cannot play its crucial developmental role and a declining economy would undermine the quality of life of all citizens.

6.1.4 The City of Tshwane’s estimated remedial infrastructure backlog is R440

million. However, comparison with other South African cities suggests that this estimate may be conservative (the much smaller Buffalo City’s backlog exceeds R850 million). The estimated backlog in greater Gauteng tops R35bn. Evidence suggests that South African cities have been in a negative remedial investment phase since 1985 – which suggest that there is a growing 20-year reinvestment backlog that has to be overcome.

6.1.5 Infrastructure failure has recently come under the spotlight with not only

smaller municipalities facing crumbling municipal services infrastructure but also Johannesburg facing an electricity distribution crisis and Cape Town a crisis of water sufficiency and waste water quality.

6.1.6 It is noted that financial modelling by Tshwane looking at the impact of

different service expansion options essentially ignores the fiscal requirements of the existing infrastructure base.

6.1.7 Currently the various service departments in the City of Tshwane have

their own stand-alone approach to infrastructure management and this has lead to a silo approach. What is now required is an integrated corporate strategic approach that tackles the challenges head-on, and


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also finds innovative solutions to current problems. It is necessary that this be approached from a “global best practice” point of view.

6.2 Project description 6.2.1 An anchor tenet of the Tshwane CDS is “managing the existing urban

areas”. The Working Infrastructure Programme effectively gives substance to the CDS’s management of existing urban areas agenda and consist of a package of actions:

o Establishing a planned maintenance and refurbishment programme

that clearly quantifies the reinvestment backlog for the key water, sanitation, electricity, solid waste and roads infrastructure components – starting with an understanding of the assets base;

Figure 10: Asset base information

o A resource management programme to raise sufficient resources for

expansion and upgrade of municipal services systems, particularly where Tshwane will have to explore additional revenue mechanisms for infrastructure funding;

o A planned expenditure programme based on a sound fiscal principles whereby resources can be rationally allocated to different parts of the city according to infrastructure requirements;

o Preparing a Services Charter – that defines standards of delivery to citizens and sets a transparent reciprocity framework for local taxes and tariffs;

o Informs tariff and rates policy/structure reform; and o Introduces a facilities management programme for municipal service

infrastructure.


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Service/network Facility Asset Component

(for info only)

- Land o Right-of-way - Paved roads/parking o Formation

o Layerworks o Surfacing o Kerbs o Road markings o Reflective studs o Laybys

• Roads

- Unpaved roads/parking o Formation o Wearing course

• Footpaths - Hardened surface - Bridges o Deck

o Abutments o Piers o Furniture o Erosion protection

• Structures

- Retaining walls o Foundations o Walls o Anchors

- Street signs o Sign support o Sign backing plate o Retro reflective sheeting

- Traffic signals o Post o Signal unit

- External lighting o Post o Light unit

- Guard rails o Posts o Rail

• Street furniture

- Bus/taxi/commuter shelters

o Shelter o Seat

- Land See above

Road Transport

• Taxi rank/bus station - Paved roads/parking See above

Table 1: An illustrative asset framework

6.3 Tshwane’s role in delivering a Working Infrastructure initiative

6.3.1 The primary responsibility of Tshwane as service authority is to ensure

sustainable service delivery. At the core of this responsibility is the City’s role in ensuring service provider arrangements that facilitates meeting the Constitutional mandate of providing sustainability and ensuring social and economic development.

6.3.2 The strategic risk associated of cumulative infrastructure decay demands

a coordinated response from the City of Tshwane. It is thus recommended that a single coordinated programme is launched with immediate effect in close cooperation with all service units and the


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Municipal Treasury to give effect to the Working Infrastructure programme.

6.4 Resource requirements and delivery preconditions 6.4.1 It is not yet clear what Tshwane’s remedial/recapitalisation investment

requirement is. The financial resource requirements associated with the working infrastructure programme will however be significant. Following the R8.5bn. announced by the City of Johannesburg for similar investment it is recommended that Tshwane prepare for remedial investment backlog of at least R5bn.

6.4.2 There is thus an urgent need to embark on a structured and planned

approach to correct current budget imbalances and secure funding such as:

o Grants; o Borrowing:

o Municipal Bonds; and o Structured Bonds;

o Off balance sheet Project Finance; and o Tariff surcharges.

6.3.3 A key prerequisite in positioning Tshwane aassumes the creation of SPVs

in the form of municipal entities, such as REDs. The manner in which Tshwane thus organizes itself institutionally is therefore an essential consideration in preparing for delivering and funding a working infrastructure initiative. Careful consideration should thus be given on service delivery organization to maximize bankability, protecting balance sheet assets and improved risk profile for off-balance sheet funding.

Internal External

Vertical Integration

Horizontaldivision

Area Coordination

AreaManagement

Current Emphasis

Desired Emphasis

Figure 11: Positioning towards strategic institutional requirements


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7. Moving Tshwane initiative 7.1 Introduction 7.1.1 The Apartheid settlement pattern located poor people far from work

opportunities, creating travel demand over large distances. Improving the convenience, safety and quality of public transport is therefore a key element in overcoming the greatest urban inefficiency of the (im)perfect Apartheid City.

7.1.2 Intervention in public transport follows international developing city best

practise that has shown the strategic benefit on the lives of people through improved transport.

7.1.3 A key element in Tshwane’s CDS thinking is thus about creating the

preconditions for city-wide public transport solutions. 7.1.4 Public transport as it exists not just in Tshwane and in the rest of the

Gauteng Province, is largely a product of planning done in support of the pre-1994 political dispensation or planning done by operators in isolation to maximize their respective market share. This has lead to a public transport system that is fragmented, heavily dependant on subsidies and contains much inefficiency. Adequate levels of mobility are often not on offer by existing transport services in terms of access and affordability. Urgent government intervention is required to facilitate integration and to obtain better mobility, as well as transformation of the system for greater efficiency.

7.1.5 The northern part of Tshwane has a good but under-utilised rail network.

However, the rail infrastructure is generally old and lacking in maintenance. 13 of 29 the stations in the Tshwane area have no limited or no proper road access and 15 have no parking. Three lines traverse area north of Magaliesberg, including the Zone of Choice, namely the following lines: o City Centre to Ga-Rankuwa/De Wildt o City Centre to Sohanguve/Mabopane o Hammanskraal (freight)

7.1.6 On a typical weekday 930 000 passengers move through train stations,

with 22% transferring between trains. 70% of the rail users walk to stations and just more than 20% use taxis. The demand for transfers is increasing at stations such as Mabopane. The average line capacity utilization is below 40%, which indicates that huge potential exists to accommodate more passengers on rail.


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7.1.7 Some 121 000 passengers are transported daily by nine bus operators in Tshwane. Eight of these operators provide subsidised commuter services terms of contracts with the Gauteng Department Public Transport Roads and Works from townships on the periphery of the city to the CBD. The 9th, the municipal bus operator Pretoria City Transport (PCT), provides services between the former “white suburbs” and the CBD. Bus services are largely aimed at commuters and are operated during peak periods. Limited low frequency services are operated on selected routes in the off-peak. Bus services often complete with rail services for the same passengers. Provincially subsidised bus services passing through the Zone of Choice are as follows:

Table 2: Provincially Subsidised Bus Operations Passing through the Zone of Choice

Areas Served Peak Buses Trips Passengers Mabopane to CBD 195 133 7 600

Soshanguve (feeds rail) 191 657 36 200

Hammanskrall ot CBD 232 164 9 600

Brits to CBD 17 74 4 200

7.1.8 PCT transports approximately 4 000 passengers daily in the Zone of

Choice, with services in Doornpoort, Orchards, Pretoria North and Wonderboom. Almost half of these passengers are learners.

7.1.9 Mini-bus taxi operations follow same similar patterns as bus routes and

in most instances compete directly with buses. 14 000 permits are in circulation for the operation of taxi services in the Tshwane area. The latest Current public Transport Record indicates that 10 750 individual vehicles are operational in the Tshwane under the auspices of 43 taxi associations. Further statistics are shown in Table 3.

Table 3: Taxi Operational Statistics

Total operations in the City of Tshwane Total Number

Number of taxi ranks 112

Number of daily taxi vehicle trips 22 400

Number of passenger trips (AM peak) 70 700

Number of passenger trips (PM peak) 80 200

Number of daily passenger trips 250 000


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Figure 12: Transport problem definition

7.1.10 Planning intervening towards an improvement in the public transport

system immediately uncovers an extremely complex institutional arrangement in the planning, funding, ownership, regulating and operation of public transport.

Mode Responsibility NDoT Gautrans Tshwane

Policy & Regulation NLTTA RegulationsManagement & Control National Roads Proclaimed roads By agreementOperation SANRAL AgentFinance Tolling and Grants Partfunding - none Default funderPolicy & Regulation NLTTA Law enforcement Public Transport PlanManagement & Control Contract managementOperation GABS InterchangesFinance SubsidyPolicy & Regulation NDoTManagement & Control SARCCOperation MetrorailFinance Fares & National Fiscus

Road

Bus

Rail

Table 4: Institutional fragmentation in Transport

7.1.11 In overcoming the highly complex burdens in impacting positively in the

provision of transport addressing institutional fragmentation seems to be the most obvious first step.

7.2 Project Description 7.2.1 The key first step in making significant progress in improving public

transport in Tshwane is the establishment of a Transport Authority. However, the creation of a Transport Authority (TA) will only impact sufficiently if constituted in a manner that: o Consolidates ownership of infrastructure; o Assigns investment control; o Assigns planning authority over all land transport modes; o Ensures control over transport subsidy design; o Assigns operational contracting authority; and

Growing city

Growing movement of people and goods

Road dependent landuse pattern

Growth in Individual Private Tpt.

Growth in Road based PT

Progressive loss of railcommuter rail service

Deterioration of roads Infrastructure network

Gridlock

Failure


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o Aligns enforcement responsibility. 7.2.2 The key task is therefore to initiate and complete the creation of an

appropriate transport authority for the City of Tshwane. Once a TA has been created such an entity can relatively easily be merged into a TA for the Gauteng urban region as is proposed as part of the Global Urban Region initiative.

7.2.3 Additional tasks associated with the Moving Tshwane are:

o Continue work on sophisticating a coherent ambitious public transport led urban movement plan;

o Facilitate incremental infrastructure creation aligned to a public transport logic;

o Using the 2010 Soccer World Cup event as a catalyst for achieving city-wide intervention; and

o Address current bus operations owned and controlled by Tshwane.

7.3 Tshwane’s role in the Moving Tshwane initiative 7.3.1 Tshwane needs to play an active role in activating the TA establishment

process. In this regard existing initiatives towards establishing a TA is noted. However, caution should be exercised to ensure the TA does not remain a hollow shell that allocates responsibility to the city without any real authority.

7.4 Resource requirements and delivery preconditions 7.4.1 While the creation of an effective and efficient public transport system

could absorb significant funding resources Tshwane has currently limited authority to gear funding towards this initiative due to institutional constraints.

7.4.2 The TA’s creation is in many ways the precondition in overcoming the

difficulties in transport improvements. While the process of establishing a TA may be fairly complex the actual cost implications is minor. A proposed approach in establishing a TA is illustrated below that may help to smooth the required assignment process.


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Figure 13: Summary of proposed TA establishment process

8. Vibrant Capital programme 8.1 Introduction 8.1 The soul of cities remains symbolically and physically intertwined with the

centre. Centre remains a critical asset as generator of jobs and tax revenue. In addition the centre represents significant sunk capital investment in terms of public facilities, infrastructure and services.

8.2 City centres internationally but also in South Africa increasingly face

redundant and utilitarian obsolescence and subject to the (creative) destruction of value. Decentralised investment and relocation of investment to different location to escape the real and perceived problems of the central cities. However, many city centres are reinventing themselves to serve a different context and market. The downside of reinvention of CBDs is associated with crime and grime, anti-social behaviour, slum living conditions and the collapse of property value. Yet, CBDs are increasingly also home to an increasing number of urban poor, remain a vital link in the transport system and offers a high level of economic opportunity.

8.3 Tshwane, with a secured anchor tenant (Government Departments), has

ensured a solid future for its CBD. However, the high intensity of use and density of public buildings, amenities and public transport requires the centre to be managed in a different way than other parts of the city.

Tshwane decision To request TA Status Tshwane creates

Special Purpose vehicle

GPG engages in process of assignment re Public Transport

NDoT engages in delegation/ Assignment re Commuter Rail Enabling legislation

NLTTA MSA Chapter 8

CRSA - Sec 156(4) Assignment or Sec 99

CRSA - Sec 156(4) Assignment or Sec 99

Parallel procedures Sec 84 - MFMA

Sec 197 - LRASec 80 - MSA

Chap. 3 - MSA

Chap. 3 - MSA

DoRA - PT subsidies Transfer Roads funding transfer Roads status change Rail asset and funding transfer


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8.4 Up to now Tshwane’s focus has been on three areas: Tshwane as a Cultural City, Capital City and Investment Destination of Choice.

8.5 Also, 582ha in the city have been earmarked as a UDZ, which creates a

tax incentive as investors can claim back a major part of their investments. This creates an incentive to encourage businesses to refocus into inner city areas. Up to now, there have only been 8 applications for UDZ which are all brown fields for the residential market.

8.6 Through the RPI process the CDS four lead-in projects for the centre have

been identified:

o African City Urban Art project; o West Capital Urban Renewal; o Inner City Reinvestment; and o Tshwane Crossing (Tshwane’s Kopanong).

Nelson Mandela Development corridor

Tshwane Crossing

Inner City Reinvestment

West Capital Urban Renewal

Figure 14: Location of Vibrant City initiatives


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Functional urban art

8.2 Projects Description 8.2.1 African City Urban Art project 8.2.1.1 A key challenge for Tshwane is to find a niche as

an iconic African City. However, what is an African City? Little social consensus exists on what an African City is. The CDS process, rather than attempt at defining an African City, opted to use a social dialogue to explore Tshwane’s social consensus of what being a capital city in Africa means.

8.2.1.2 A process is therefore intended whereby

Tshwane can stimulate a social dialogue through the medium of public art. High in symbolic value, at relatively low costs and extremely visible an urban art competition can create a process of public engagement that could provide a high profile in a number of fields.

o Urban art can physically and symbolically upgrade public spaces in

Tshwane; o New symbols of the state and capital status of South Africa and the

location of the PAP can be developed; o Public spaces in all parts of the city can effectively be reclaimed as

public domain; o Urban art can create significant media profile and stimulate investor

interest; and o Art can be a unifying element in a divided city. The controversy around

the renaming of Pretoria, for example, can be linked to the quest to define an African character for Tshwane.

Figure 15: Inner City Reinvestment Initiative: Clusters and Corridors


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8.2.2 Inner City Reinvestment 8.2.2.1 Currently about 50% of all office accommodation in the CBD is occupied

by National Government Departments or Agencies. These offices are fragmented and dispersed spatially and do not match the desired SAPOA Grade B office space quality.

8.2.2.2 National government has made a public decision to remain located in the

centre of Tshwane and committed through public works. However it was also decided to regroup functions and upgrade the facilities in the CBD to contributing to the creation of a world class “African Capital City”.

8.2.2.3 The project involves inking three symbolic sites; Freedom Park, Church

Square and The Union Buildings visually and functionally. In addition the plan entails consolidating an infrastructure and public access spine along Paul Kruger and Church Streets to support the linkage reinforce and concentrate city centre activity.

8.2.2.4 Individual Departments is to be consolidates in appropriate locations along

these corridors to support functionality and public accessibility/image. Departments will thus be clustered in a series of nodes to support synergistic and functional relationships.

8.2.2.5 R21 billion has been earmarked for reinvestment in the Tshwane inner city

by DoPW and will include the physical redevelopment of blocks. Some R10bn of the initial amount has been committed/secured. The budget will be split three ways:

o refurbishment of existing buildings; o allocated to demolishing existing buildings ; and o developing new buildings .

8.2.2.6 In addition to the funding committed from DoPW there is a reciprocity

investment requirement on Tshwane of R2bn in the same area. 8.2.2.7 While Tshwane would contribute to the larger inner city reinvestment

initiative in the form of capital investment it can also anticipate demands to provide an effective institutional response to the management of the inner city.

8.2.3 West Capital Urban Renewal 8.2.3.1 The availability of large tracts of municipally owned vacant land in the

west of the inner city opens the opportunity to compliment existing housing efforts and development of the Zone of Choice. The central concept is to plan and systematically develop inner city housing at scale.


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8.2.3.2 West Capital Urban Renewal anticipated and complements the

Department of Housings new housing plan – “Breaking new Ground” – by expanding its housing delivery mandate beyond that of RDP housing, creating new housing in well located areas, providing a range of housing types and broadening access to a more comprehensive range of settlement choice. In addition to the creation of housing at scale other objectives are also pursued:

o Increasing public transport viability in the inner city – supporting the

ring rail; o Creating vibrancy in the inner city through 24h living, working and

recreation; o Improving the range of public amenities in the inner city area to

respond to changing age profile and increased population in the area; and

o Creating economic assets for people formerly excluded from opportunities through public investment into quality housing.

8.2.3.3 Demand for inner city housing is not being met. The two Social Housing

companies have recently provided some inner city housing; Tshwane Housing Company (91units) East City Housing (130 units). Apart from this there is no large scale social housing project in Tshwane. A recent densification study of the inner city identified 72 potential projects.

8.2.3.4 . There is a major opportunity in the west of the capital area to establish

the most significant national social housing initiative in the country as significant land parcels are available. In order for this to be realised, it is crucial for the process that an urban design framework be developed as a matter of urgency.

8.2.3.5 The investment framework for Pretoria West sets out some key issues

related the project. The framework aims at attracting middle income earners to move into the city and Pretoria West and aims at accessibility and precinct development. However, to gain the biggest impact from this project, the development of the PWV9 is key as it currently sterilises Pretoria West. Elements of the plan include:

o First precinct: Access road (Roger Disan Road) to Pretoria West needs to be redesigned.

o Second precinct: DF Malan Rd: The fresh produce market is a major area of connectivity.

o Area of UDZ: Mitchell Street: link into the west into PWV9 and the industrial area in the west.


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How it can look

8.2.3.6 In order to achieve overall integration of the area, Marabastad will be included in the plan and an overall urban design framework has to be developed for the entire area.

8.2.3.7 Currently the housing companies in Tshwane make use of the Institutional

Housing subsidy which enables the companies to implement the housing developments. One of the major problems the housing companies is encountering is financial which is presently being addressed with an EU support grant for which these companies can apply, for the purposes of internal development and project management purposes. The municipality mainly plays an enabling role for social housing development through helping housing companies to attain land.

8.2.4 Tshwane crossing (Tshwane’s Kopanong) 8.2.4.1 One of the Tshwane initiatives is to develop a new commercial, leisure

and symbolic public space around the Caledonian Sports grounds in the eastern part of the inner city. This initiative will serve to: o Anchor the Nelson Mandela Development Corridor; o Establishing a growth node between Hatfield and CBD; and o Revitalize Sunnyside commercially and residentially.

8.2.4.2 The Tshwane Crossing

project aims at attracting citizens and visitors to interact and recreate in the inner city. The Times Square, Federation Square and Potsdamer Platz models are being used as examples for this project. The proposed site for the project is be

the Caledonian sports ground. The project will be promoted as Tshwane’s Kopanong – a meeting place for residents.

8.2.4.3 Currently the Tshwane CBD lacks a place/space where one is offered a

wide range of recreational activities etc. There is a need for leisure opportunities in the city and “lighter entertainment”. It is envisaged that Tshwane crossing can provide just that. The intention is that the space will be easily accessible through walking and public transport.


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8.3 Tshwane’s role in the Vibrant Capital initiatives 8.3.1 Tshwane has a central role in implementing all four Vibrant City initiatives.

The table below summarises the key elements required. Project Institutional

preconditions Financing requirement

Financing mechanism

Abridged first steps

African City Urban Art project

To be set up as a Departmental project with immediate effect

R1 million Initial budget

Capital budget o Define project scope o Appoint adjudication

panel o Design adjudication

criteria o Launch media

campaign o Put out call for

proposals o Adjudicate o Implement

West Capital Urban Renewal

Establish dedicated delivery agent

R2 billion with initial seed capital provision of R200 million

o Create balance sheet of assets by transferring property portfolio

o Seed financing for initial capital investment

o Institutional housing grants

o Establishment of a special rating district

o Off-balance sheet borrowing

o Public-private partnerships and risk sharing joint ventures

o Create urban design framework for whole focus area

o Prepare pre-feasibility study

o Establish special purpose vehicle

o Package individual projects

Inner City Reinvestment

Create Tshwane special task team Appoint Tshwane liaison person and dedicated project manager Establish a dedicated inner city management entity that overcome limitations of current Inner City Task Team Joint venture partnership with

R2 billion reciprocal funding

o IGGs o Special rating

district o Special rates levy o Sales of non-

strategic assets o Borrowing o Operating budget

provision

o Finalise reciprocal capital investment requirement

o Prepare integrated urban design framework and public transport system design

o Determine institutional requirement for inner city management

o Establish dedicated institutional structures

o Conduct pre-feasibility studies

o Implementation


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Central business partnership

Tshwane Crossing (Tshwane’s Kopanong

Initially establish Departmental task team Establish Tshwane Kopanong Municipal Entity Development Company

R500 million o Seed funding o Land sales o Joint venture

partnerships o Capital budget

provision o IGGs

o Complete urban design concept

o Conduct pre-feasibility study

o Conduct public participation

o Release proposal calls o Enter into contractual

negotiations o Implementation

Total R2.7 billion Table 5: Delivering a Vibrant City initiative

9. Quality public spaces Programme 9.1 Introduction 9.1.1 Creating democratic local government since 1994 rightly focused on

establishing new structures of governance and local government institutions. Developmentally the emphasis was strongly upon providing access to basic municipal services and infrastructure creation in support of housing. While new local government institutions continue strengthening and remarkable progress are made with the provision of basic services limitations of this focus as a basis for the future are becoming apparent. Widespread dissatisfaction with the “performance” in local government and the “lack of delivery” persist despite the success cities had in rolling out basic services and achieving compliance with a new regulatory framework. Increasingly municipalities are called upon to articulate and implement a development agenda that can go beyond satisfying basic needs towards transforming the way our cities function and reinventing the way our cities perform as engines of growth.

9.1.2 It is increasingly appreciated that one of the perceptual problems relating

to poor service delivery and low levels of public confidence relates to how communities and individual interact with the municipality. Poor quality customer care facilities and inadequate public access points to transactional municipal services contribute to the general lack of quality municipal facilities.

9.1.3 In addition it is appreciated that the location of many municipal facilities

can also play a developmental role and creates opportunities due their location and ability to concentrate pedestrian traffic. It is interesting to note that decentralised American shopping centres require 1000 pedestrians per hour to be considered viable. Many places in Tshwane


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exceed this number significantly and yet do not seem to provide viable trading opportunities for micro enterprises.

9.2 Project Description 9.2.1 The aim is to create a Quality Public Spaces Programme whereby a

visible impact can be achieved in Townships in: o Establishing quality community service interface facilities and improve

the way public services are delivered – particularly community services and customer care facilities; and

o Creating places of opportunity through clustering and integrated design of public facilities to unlock economic opportunities.

9.2.1 In order to illustrate the

ideas behind the initiative an example is illustrated by using the Mamelodii MuniMun facility. Located in very close proximity to the Denneboom transport interchange and abutting well located public open space this facility is currently poorly designed and extremely limited in relation to its potential.

9.2.2 A comprehensive redevelopment of this facility is proposed to create a

municipal services “mall” which can be linked to retail along the existing road. By linking Denneboom with a pedestrian bridge additional traffic can be generated for retail viability.

Integrated design concept


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9.2.3 Mamelodi MuniMun is only one example of many places across Tshwane where the municipality can intervene in improving the quality of its service interface while unlocking economic opportunities through smarter use and design of its facilities. Often it is not so much about creating new facilities or one-stop-shops as it is about better utilisation of existing facilities. The idea is to intervene in the location of public facilities and redevelopment of selected existing facilities.

9.3 Tshwane’s role in delivering Quality Public Spaces 9.3.1 Tshwane has a core responsibility in relation to the Quality Public Spaces

programme as provider of municipal services. It therefore has to create an interdepartmental task team to coordinate delivery of services to meet the aims of this initiative.

9.3.2 In addition Tshwane is the direct interface between the community and the

provision of public services. Tshwane thus also needs to provide a coordination point for the location, design and optimisation of non-municipal service facilities such as schools, police stations, health facilities, welfare service points etc.

9.3.3 In addition to ensuring proper design of new facilities and the

redevelopment of existing facilities Tshwane also has a responsibility to ensure the proper management of public spaces and facility clusters. High utilisation levels require high levels of maintenance, cleanliness and law enforcement to maintain the potential impact.

9.3.4 It is therefore proposed that:

o A Quality Public Space programme be launched under the auspices of a lead Department;

o To create and strengthen appropriate intra-municipal and inter-governmental coordination structures;

o Provide ongoing provision on the capital budget for the implementation of the programme;

o Prepare a rapid launch with the announcement of a first project and quick results through constructing highly visible and high impact initiatives as part of this programme; and

o Provide an initial R50 million on the capital budget after which the amount can be adjusted flexibly to fit the needs of the programme.


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10. Implementation Framework

10.1 Institutional design for delivery 10.1.1 Two sets of institutional measures have to be taken in order to deliver the

Tshwane CDS: o Creating a strong centre in the organisation to provide corporate

leadership and dedicated implementation capacity; and o Special purpose delivery vehicles for programme roll-out.

10.1.2 Building a strong centre will require the extension of existing capacity in

the office of the City Manager. In addition clear governance, managerial, administrative interface and project delivery structures have to be established.

10.1.3 CDS delivery at the scale envisaged inevitably gets executed in a complex

environment with a bewildering array of decision-making and mandating structures that has to be coordinated with task teams focussing on specific interventions. In order to manage such a complex process the following project structures are proposed.

Project SponsorProject Director

Project Management

Mayco

SEOsCity Manager

Mayor

Steering Committee

Project Teams

Municipal Task Teams

Project Liaison Officers

Briefing & Mandating Structures

Implementation Process Management

Project Oversight Structures

Projects Execution

Figure 16: Organising for delivery


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10.1.4 It is proposed to manage the implementation process effectively as outlined above through:

a) Mandating Structures:

o The Mayor and Mayco remains the key political mandating entities; and

o Administrative mandating will work through SEOs and the City Manager.

b) Project Oversight Structures:

o Political oversight is to be provided through the appointment of a Project Sponsor from within Mayco. The task of the Project Sponsor is to carry in the political mandate of the municipality, to provide political leadership in executing the transformation agenda and to report back to Mayco and the Mayor; and

o Managerial project oversight is provided by a Project Director. Such a person gets appointed by the City Manager from senior management and will attend SEO meetings although does not have to be a Departmental or Service Unit Manager. The Project Director is ultimately responsible for project execution; and

o CDS Project Steering Committee: This committee will be the key management structure to guide project implementation. The Steering Committee will be chaired by the Project Director and will be attended by both the Project Manager and Project Liaison Officers (see below). Steering Committee meetings will be open to SEO representatives and may also be attended by the project Sponsor on an ad hoc basis.

o It is possible that joint political/administrative working groups will be required in providing leadership and guidance. Such groups will be constituted through the Steering Committee and managed through the Projects Office.

c) Implementation and Process Management:

o The key implementation management and coordination role is provided by a dedicated Project Management entity. The task of project management of a transformation initiative is primarily to provide technical leadership and specialist advice in shaping the transformation agenda, manage the implementation process through contract management of sub-consultants and coordinating the activities of transformation initiatives;

o It is anticipated that a Lead Consultant will be appointed to oversee the management of the total transformation initiative and to provide the Project Management service; and

o The Projects Office effectively provides a secretariat to the transformation initiative.


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d) Projects Execution o A range of specific projects are coordinated through the Projects

Office. It is anticipated that existing initiatives with transformational impact will be realigned to report tot the Projects Office, as well as a range of new projects as these come on stream.

o Individual component projects within the larger transformation initiative will in all likelihood be executed through the procurement, appointment and management of consultants. The management of such consultant contracts will be through the Project Office under the auspices of the Lead Consultant.

o Project Liaison officers from within the municipality will be assigned to individual transformation projects. These persons will represent appropriate expertise from the municipality and come from middle management positions. Their role would be to assemble task teams to work with consultant teams on guiding project execution. Project liaison officers will be represented on the Project Steering Committee. and

o Task Teams consisting out of appropriate municipal officials to act as project-based working teams, working with consultant teams in executing project implementation.

10.1.5 Special purpose delivery entities are required during the implementation

process, but are not necessarily a first step. It is thus recommended that the above project delivery structure at the centre of the organisation fist gets established, after which the creation of SPVs would flow as part of the implementation process.

10.2 Resourcing Framework 10.2.1 Tshwane will not be able to finance CDS delivery by being dependent

upon own capital funding. Its current capital budget capacity is R1.65billion and would require at least doubling in order to deliver the CDS. The CDS could absorb R10 billion, the majority of which may have to be committed within the first 5 years of implementation. Extensive packages of financing mechanism thus have to be brought into play in order to broaden the resourcing scope.

10.2.2 Success will depend on packaging widest possible investment rage of

funding options, including: Grants Revenue ringfencing – Revenue Bonds Partnerships

• Parastatal investments • Seed funding

Borrowing


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• Conventional • Bond issues • Gearing

Off balance sheet funding Revenue top up Sale of non strategic assets

10.3 Stakeholder Engagement 10.3.1 A key point of departure in the implementation of Tshwane’s CDS is that

the scale and scope require the CDS to become a national initiative. Tshwane thus plays the role of initiator, facilitator and implementation agent. It also means that broadening ownership of the CDS require intergovernmental engagement as a priority.

10.3.2 In addition communities have to be engaged to broaden public awareness

and knowledge of the CDS and its impact. A structured public hearings initiative is recommended that should be run in parallel to a carefully designed media campaign.

10.3.3 While the CDS document outlines a layered stakeholder enragement

approach a core element in the sophistication of the process is the utilisation of different engagement modes. A significant amount of climate setting and awareness building has already happened and it is not necessary to escalate the engagement into a negotiating mode whereby agreements, commitments and firm action can be established.

Informing

Consulting

Negotiating

Government ParastatalsCorporate

BanksFundersdonors

CommunityParty

Mod

es o

f Eng

agem

ent

Stakeholders

Contracting

Learning Institutions R&D and technology sectorLaborGovernment as anchor tenantDiplomatic community

Figure 17: Modes of engagement


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10.3.4 Different modes of engagement will apply during the various stages of CDS delivery. The anticipated use of information sharing, consultation, negotiating and contracting modes is illustrated below.

StrategyStrategy

Intervention designIntervention design

Regulatory Regulatory ApprovalsApprovals

Resource Resource FrameworkFramework

ImplementationImplementationManagementManagement

Impact monitoringImpact monitoring

Inform Consult Negotiate Contract

InstitutionalInstitutionalFrameworkFramework

PartnerPartnerSolicitation & SelectionSolicitation & Selection

Figure 18: Stakeholder engagement agenda

11. Conclusion 11.1 While this report summarises the outcome of RPIs in the latest

development phase of the CDS a rich amount of detail also exist in the form of individual RPI reports. This report is thus only a summary and in some instances, a further expansion of RPI works.

11.2 An extremely complex and demanding implementation roll-out stage is

now to follow. The CDS is entering into an extremely risky stage of development, facing a local government election that may disrupt strategic continuity of political leadership. At the same time firm commitments from public sector partners may either advance or stall implementation.

11.3 Maintaining momentum in implementation is thus now more crucial than

before.

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