City of Johannesburg Inner-city Project 2018 Agenda Understanding - PowerPoint PPT Presentation

“Corridors of Freedom - Re-stitching our city to create a new future” City of Johannesburg Inner-city Project 2018

Agenda Understanding our City 1 Funding Strategy 2 Financial Implications 3 Project Description 4 Potential Roles for DFIs 5 Key Questions 6 2

Understanding our City – Vision, Key Outcomes And Priorities

Understanding our City – Spatial Development Framework • The CoJ 2030 Spatial Development Framework ( SDF 2030 , approved September 2016) sets out the City’s development trajectory and area prioritisation . • The SDF seeks to address five major issues in Johannesburg’s spatial and social landscape: ▪ Spatial inequalities and the job-housing mismatch, ▪ Increasing pressure on the natural environment ▪ Urban sprawl and fragmentation, ▪ Exclusion and disconnection ▪ Inefficient residential densities and land use patterns

Understanding our City – Long Term Municipal Investment Need Four Stream Cash Demand(40% of Current MTEF (Year 1- 3) Total Capex Investment) Roads & Stormwater R 5,794,121,998 Water & Sanitation R 4,590,381,848 Electricity R 15,603,336,839 Solid Waste R 563,000,000 40% Demand Per MTERF R 26,550,840,685 100% Capex Needed R 66,377,101,712 Currently Approved MTERF Budget R 26,730,371,000 Shortfall R 39,826,261,027 • The four main Service Delivery infrastructure demands accounting for 40%, emanate from Roads, Water, Electricity and Waste • Total estimated 3 year capex cost is about R 66,4 billion versus currently approved Total Capex of R26,7 • This raises a capital expenditure gap of R39,8 billion

Funding Strategy Inner City Regeneration On Balance & Sheet Funding Economic Projects Common Attainment of Joburg 2040 Vision and IDP PPP & Off Balance 5% Economic Growth Sheet Funding

Understanding our City - Sources of Funding - Institutional Capabilities Sources of Funding 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - 2013 2014 2015 2016 2017 2018 2019 2020 (Adjust (Foreca (Foreca ed) st) st) Loan Funding 1,311,200 1,458,631 3,276,000 3,940,000 2,626,777 2,998,386 2,349,726 2,742,874 CRR & Surplus Cash 368,408 3,147,604 4,530,718 2,213,072 3,665,553 1,290,986 3,339,902 2,393,837 Grants and Contributions 2,868,251 3,094,028 3,021,231 3,170,485 3,613,240 3,084,698 3,761,103 3,821,815 Total 4,547,859 7,700,263 10,827,94 9,323,557 9,905,570 7,374,070 9,450,731 8,958,526 • The City increased its annual capital budget from R4,5 billion in 2012/13 financial year to R9,9 billion in the year under review. 7

Capital Funding Strategy – Liability Profile Bonds 7 749 000 000.00 DFI loans 9 705 043 559.30 Liability Profile Banks 1 418 034 774.84 Total 18 872 078 334.14 • Weighted Average: cost borrowing 12.46% • R2.733 billion to be redeemed in 2017/18 (Sinking Fund)  Nedbank R1 billion  COJ 04 R1,733 billion Bonds DFI loans Banks 8

Historical Capital Investment Trends Total Assets 90,000 80,000 70,000 60,000 BILLION 50,000 40,000 30,000 20,000 10,000 - 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 Total Assets 47,440 56,357 61,132 66,924 78,367 80,377 85,412 • The increase of assets over the years was mainly due to the growth in PPE and increase in cash and cash equivalents over the past years. • PPE increased from R36 billion in 2011 to R66 billion in 2017

Programme / project description 10

Inner-city Transformation Project – Rational for Project • The Inner City Roadmap : A framework for the City of Johannesburg (CoJ) in rolling out the Growth and Development Strategy 2040 in the inner city. • The Roadmap takes forward the work of the 2007-2012 Inner City Charter which is an outcomes-based approach that requires all departments involved in a particular issue to work together to resolve issues or roll out programmes. • The Roadmap takes an area-based management and partnership approach to guide municipal activity in transforming the inner city .

Inner-city Transformation - Planning: Medium Term Approach Through the Growth and Investment Stream… Inner City What we are resolving: Park Eastern • 10 Point Plan ( Inner City key Station Gateway Precinct priority- focus of 5% economic growth ) • Alignment with infrastructure at Westgate precinct level • Stimulating Economic Development and SMME Total Total 2018 Total Inner City Capex 2017/2018 /2019 2019/2020 Support Inner City - DP 115,000,000 160,000,000 160,000,000 • Agreement on priority precincts ( 3 Inner City - JDA 1,000,000 11,500,000 54,000,000 precincts in Medium Term ) TOTAL 116,000,000 171,500,000 214,000,000 = R 501,500,000 MTEF

Inner-city Transformation - Accelerating Economic Growth and Investment • Prioritized focus on Inner City, i.e. three key precincts:  Planning and Intelligence in place 1. Inner City Eastern Gateway  Ripe for Re-development and 2. Park Station Railway Seam (incl. Noord Street Precinct) investment Why?  High Impact – Favorable Yields 3. Inner City South West (Westgate)  Market is ready • Projects in the Inner City Eastern Gateway include, development infill for greater residential densities, parks, community facilities • Implementation of environment and social facilities to support of ICHIP / the Affordable Housing strategy for Inner City Renewal • Infrastructure upgrades in the Westgate Precinct to unlock investment • Public Environment Upgrades in Noord Street, Hillbrow Tower Precinct, Park Station funded from the Inner City Fund

Inner-city Transformation - Project Summaries PRIORITY 1: Strengthening the Core • INNER CITY HOUSING IMPLEMENTATION PLAN (ICHIP) • Overview: • A proposed housing strategy and implementation plan for the Johannesburg Inner City ( 2014 – 2022 ); • 30 000 Households in Risk- provision of rental accommodation of R1000 or less a month • Short to medium need of 30 000 units of accommodation • 6 Delivery Programmes • 5 Facilitation Programmes • Progress: • Developing Transitional/ Temporary Emergency Housing as critical for re-development of Bad buildings in the Inner City and improving living conditions (JOSCHO) • Assessing, identifying and packaging land parcels (800) for acquisition and re- development in the Inner City • Analysis of Capital Subsidies available to private sector to incentivise them to go down market

Inner-city Transformation - Project Summaries PRIORITY 1: Strengthening the Core • INNER CITY EASTERN GATEWAY • Overview: • Regeneration Strategy • The Inner City Eastern Gateway must become an inclusive series of inter-connected neighbourhoods accommodating an economically and demographically diverse resident profile in a well-integrated, liveable, high-density urban environment within easy reach of nearby job centres and social amenities . • Formalisation of housing densification , particularly around transit nodes ; Proposed densities for Phase 1 (2017 – 2022): 6 577 dwelling units ; • • Proposed densities for Phase 2 (2022 – 2037): 11 699 dwelling units • Diversified (including affordable and social) housing delivery; • Public environment upgrades (including pedestrian links and open spaces); • Increase accessibility and connectivity ; Infill development in strategic areas; • • New community facilities, schools and parks to cater for the increased population; • Progress: • Urban Development Framework (UDF) recently completed and currently undergoing approval. • Development Facilitation • Projects underway: • Contractor appointment for the implementation of the Jeppe Park upgrade up to practical completion stage. Scope development and project package for future developments . •

Inner-city Transformation - Project Summaries PRIORITY 1: Strengthening the Core • PARK STATION PRECINCT • Address infrastructure bottlenecks ; • Improve Public Transport Level of Service and Pricing; • Use Public Land to address gaps and ease congestion ; • Urban Management related issues are critical • Physical interventions aimed at relieving congestion and facilitating ease of access by improving key pedestrian linkages Projects: • • Construction of JITI is at an advance stage and progress is at 55% • Key City acquisitions by JOSCHO for Social Housing in the Precinct • Also a focus on creating supporting facilities like the completion of the Kazerne Inter-modal facility • Noord Street Trader Facilities

Inner-city Transformation - Release of Bad Buildings in the Inner city Is A Strategy To: • Fast track delivery of low cost housing • To have mix of land uses(social facilities and economic facilities) • City rejuvenation • Creating safe living environments