AFRICA - Practical Approaches and Structures PRESENTATION TO THE - - PowerPoint PPT Presentation

STRATEGIES FOR DELIVERING MASS HOUSING PROGRAMMES IN AFRICA - Practical Approaches and Structures PRESENTATION TO THE SHELTER AFRIQUE AND MINISTRY OF HOUSING, TCHAD SYMPOSIUM 11 JUNE 2013 TAFFY ADLER, HOUSING DEVELOPMENT AGENCY, SOUTH AFRICA

Outline

• The HDA
• Two South African case studies
• Brickfields: the largest social housing/ rental

project situated in Johannesburg

• N2 Gateway Priority Project: the largest

government sponsored project situated in Cape Town

• Lessons to be learnt from both projects

The Housing Development Agency

The HDA was established by an Act of Parliament in 2008 to address the land acquisition and assembly process so as to accelerate housing delivery and human settlement development. The two main objectives of the Agency are to:

• Identify, acquire, hold, develop and release well-located

land and buildings

• Provide project management support and housing

development services Details of our work can be found on our website: www.thehda.co.za

Brickfields… yesterday Before… New Build

Brickfields… today

Case Study 1: The Brick fields Social Housing Project

Case Study 1: The Brick fields Social Housing Project

Case Study 1: The Brickfields Social Housing Programme

Department of Housing Grant Subsidies Poverty Alleviation Fund ABSA Equity Gauteng Partnership Fund Equity Gauteng Partnership Preference Shares Johannesburg Housing Company Equity ABSA Loan National Housing Finance Corporation Loan Anglo American Corporation Loan Anglo Gold Loan ApexHi Loan Total Private Sector Total Public Sector R 19 million R 6,1 million R 2,9 million R 10 million R 10 million R 14,3 million R 1,5 million R 25 million R 25 million R 3 million R 2 million R 1 million R42,5 million R77,3 million Brickfields Funding The Brickfields Project of 750 units cost R120 million

JHC pledge of 150 shares to DoH as security pursuant of JHC’s obligations with DoH

DOH SUBSIDY

Put & Call Options DOH R19M AngloAmerican R3M Anglogold R2M JHC R1.5M APEXHI 1M

BHC

Board of BHC 2 x JHC 1 x GPF Property Management Agreement JHC R135/unit p.m. Property Development Agreement JHC R1315 per unit Schedule of Priority Repayment: 1. ABSA Debt 2. NHFC Debt 3. Shareholder Equity 4. Subsidy Cost of Debt: 1. NHFC – Prime less 2% over 20 years term subordination for 3 years 2. ABSA – prime less 1% over 10-years 3. BHC considers purchasing term loan

R42.59M

ABSA

Gauteng Partnership Fund

JHC R10M R10M R29.4M R120M Indemnity

SPV BVI802

Guarantee ABSA NHFC BOND R 60m AGENT- ABSA R50 million

NHFC

R25 M each

BRICKFIELDS A great Public Private Partnership 647 units, 1000m2 Retail, Parking, crèches etc. R120 MILLION capital investment

R6.11 million Guarantee

ABSA

Brickfields Funding

Gauteng Partnership Preference Shares Poverty Alleviation Fund 2.9M R14.3M

Case Study 2: The N2 Presidential Priority Project

Case Study 2: The N2 Presidential Priority Project

Case Study 2: The N2 Presidential Priority Project

Case Study 2: The N2 Presidential Priority Project

Case Study 2: The N2 Presidential Priority Project

Case Study 2: The N2 Presidential Priority Project

N2 Gateway Summary - Financials

HSS No Project Description Total Project Approved Total Expenditure up to 31/03/2013 2013/2014 Budget 2013/2014 Expenditure %2013/2014 Budget Spent % of Total Approved Budget Spent Balance available

• n approved

Budget W08030006 Delft Symphony Precinct 1&2 – 1850 T/S (1851) 141 170 723 137 204 370 3 966 353 0.00% 97.19% 3 966 353 W10060003 Delft TRA 5 & 5.1 68 255 245 54 494 460 7 410 715 0.00% 79.84% 13 760 785 Joe Slovo Phase 3 (2639) W08080001 UISP 116 214 718 35 537 306 13 211 220 0.00% 30.58% 80 677 412 W08080001 Top Structure 286 633 145 54 809 056 30 839 400 0.00% 19.12% 231 824 089 W08080001 Bulk Services 37 819 049 15 693 509 9 000 000 0.00% 41.50% 22 125 540 W12030030 Electrical Reticulation 53 827 167 15 912 973 9 000 000 0.00% 29.56% 37 914 194 Total 494 494 079 121 952 844 62 050 6208 0.00% 24.66% 372 541 235 Boystown W10070005 UISP 132 844 821 54 740 643 49 529 999 0.00% 41.21% 78 104 179 W10070005 UISP E.O.T 7 067 272 7 067 272 0.00% 100.00% W10070005 Top Structure 118 247 375 39 526 072 36 254 324 0.00% 30.92% 78 721 303 MIG 20 368 849 13 145 915 7 222 934 0.00% 58.34% 7 222 934 Total 278 528 317 60 867 724 93 007 265 0.00% 39.24% 164 938 101 TRA 6 (422) 64 555 831 30 897 479 0.00% 0.00% 64 555 831 Phillipi Upgrade 15 315 200 15 315 200 0.00% 0.00% 15 315 200 Phillipi TRA (400) 47 977 907 28 403 128 0.00% 0.00% 47977907 TOTAL N2 GATEWAY 1 110 297 302 428 131 576 241 050 753 0.00% 38.56% 682 165 726

Lessons Learnt: One size does not fit all

• PPP dependent on the track record , financial and

capacity resource of the different parties

• PPP will be successful depending on appropriate

structuring of the risk and reward profile of project

• PPP dependent on the legal and regulatory framework
• perating in the environment
• PPP dependent on the political environment within which

the project operates

Lessons learnt: PPP can incorporate different roles for the different parties

• Developer
• Financier
• Project manager
• Owner / manager

Lessons learnt: PPP can only ultimately succeed if properly structured for implementation

• Planning from land to stand and beyond
• Funding appropriate to project and risk
• Project management
• Post development management

Thank you