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									Urban Renewal In Cape Town:
      The Way Forward
  Presentation to the Executive Committee.

              Shahid Solomon
             Program Developer
                August 2002
   A National Government

The focus is on the specific national government
urban renewal programme for Khayelitsha and
Mitchell’s Plain.
Other urban renewal initiatives are important but not
part of the national programme eg. Cape Renewal
Strategy, Wesbank, Kew Town.
  Objectives Of The Urban
   Renewal Programme

To mobilise people so that they can become active
participants in upliftment.
To co-ordinate and focus the three spheres of
To secure private sector co-operation and
To reprioritise and re-align the budgets and
expenditures of the three spheres of government.
To pilot approaches to ensure cluster and inter-cluster
as well as cross-sphere approaches to planning,
budgeting and implementation.
  What Is Urban Renewal?

A 5 to 10 year process.
Of developing inter-governmental, business,
community and donor partnerships.
In order for…
    The City to better meet community needs through:
        Infrastructure upgrading.
        Improved service delivery.
    Simultaneously with:
        Communities being better empowered to
        access city opportunities through development
   What Is Urban Renewal?

City that better                     Communities
     meets            Urban             better
  community          Renewal      equiped to access
     needs           Process      city opportunities

Infrastructur      Development       Development
 e upgrading       partnerships      programmes
and improved
     What Is Urban Renewal?
Examples: City that better meets community needs:

(A) Infrastructure upgrading.
   Urban integration:
        Corridor development (Wetton-Landsdowne
        and North/South corridors).
        Major nodal development (KBD, MPCBD).
        Local nodes/dignified places.
   Public transport facilities:
 What Is Urban Renewal?
   Examples: Infrastructure Upgrading

Economic infrastructure:
    Tourism routes/facilities.
    Urban farms and produce markets.
    Telecentres and business support centres.
    Trading markets.
Crime prevention:
    Street lighting.
    Police stations.
    Safe houses.
 What Is Urban Renewal?
   Examples: Infrastructure Upgrading

Settlement upgrading:
    Conventional housing.
    Informal settlement upgrade/relocation.
    Managed land settlement.
    Higher density/social housing.
    Social facilities (orphanages, clinics, libraries).
 What Is Urban Renewal?
   Examples: Infrastructure Upgrading

Environmental upgrading:
    Recreation nodes and facilities.
    Coastal/wetland management.
    Dump sites.
     What Is Urban Renewal?
Examples: City that better meets community needs.

(B) Improved service delivery.
    Waste management.
    Postal services.
    Social and welfare services.
    Health services.
    Safety, security and emergency services.
       What Is Urban Renewal?
Examples: Communities better empowered to access city
   Development programmes:
      Skills development and literacy.
      People’s housing processes.
      Business development.
      Community-based service delivery.
      Digital divide: ICT skills development.
      Youth/women empowerment.
      Community safety and violence prevention.
      Civil society capacity building.
         Funding Opportunities
         Over The Next 5 Years
                          Current      Potential
National Government       R103m      R1000m – R2000m

Provincial Government       ?        R500m – R1500m

City                        ?        R1000m – R2000m

Donors                    R75m       R200m – R1000m

Total                    R173m ?     R2700m – R6500m
    An Urgent Call To Action

National government has assigned top-echelon
cabinet ministers and WCPG has assigned the Premier
as political champions.
If Cape Town does not move fast, our communities
may miss the boat on major funding opportunities.
  Key Success Factors for an Urban
  Renewal Management Framework

     Effective Political Leadership:
         Bring political representatives from all three
         spheres of government together – to avoid red
         tape, delays and misalignment.
     Inter-departmental buy-in:
         Active involvement and buy-in of relevant officials
         and line departments in the City, the Province and
         at national level.
     Donor Support:
         Effectively lobby donors for grant finance, and
         form partnerships with NGOs

  Key Success Factors for an Urban
  Renewal Management Framework
     Business Involvement:
         Credibility with the business sector to attract significant
         private investment.
     Community Empowerment:
         Empower and involve local communities and Sub-
         Councils in decision making.
     Implementation Capacity:
         Capacity to effectively budget for and integrate and
         drive 200-500 projects and account for results and
     Alignment with City priorities and systems:
         Integration with IDP.

       Risks To Be Managed

Perception of managers and district staff that urban
renewal lies ‘outside’ their sphere of responsibilities
with resultant low co-operation and/or duplication.
Line departments shift budget and resource priorities
to other areas.
Tensions may develop between the urban renewal
management framework and established political
Urban renewal framework may become an ‘end in
    The Need for a Dedicated
      Support Framework

Urban Renewal of Khayelitsha and Mitchell’s
Plain is a vast task.
Transparent ringfencing of the financial contributions
of Council, national and provincial government and
A ‘board’ of key political leaders in an efficient
decision making structure.
Can be established quickly to capture opportunities.
Flexibility and responsiveness essential.
                  Functions Of
             Management Framework

     Effectively deliver a 5-10 year urban renewal
     programme for Khayelitsha and Mitchell’s Plain.
     Manage inter-governmental co-ordination.
     Develop partnerships with donors and the business
     Develop and manage a delivery programme and
     financial mechanisms.
     Effectively manage projects.

                  Functions Of
             Management Framework

     Secure community involvement and ownership.
     Develop the capacity of community institutions in
     Khayelitsha and Mitchell’s Plain to be able to play an
     effective longer term role in development.
     Develop the medium term capacity of the municipal
     administration to achieve urban renewal throughout
     the city.
     Ad-hoc advice for other urban renewal areas.

        Components Of Management
 Local Vision                    Overall Vision          Local Vision
 Local Strategy                  Strategic Integration   Local Strategy
 Local Partnerships              Financial Support       Local Partnerships
                                 Technical Support
     Khayelitsha                 Capacity Building           Mitchell’s Plain
      Steering                                                  Steering
     Committee                                                Committee

              Sub-Council reps     Enabling Entity                      Sub-Council reps
              Civil society                                             Civil society
              NGO’s                                                     NGO’s
              Local Business                                            Local Business

     Khayelitsha                                            Mitchell’s Plain
       Project                    Ad-hoc support to             Project
  Management Team                 other Urban Renewal      Management Team

Project Managers                                         Project Managers
Contractors                          Imlementation:      Contractors
Service Providers                   200-500 Projects     Service Providers
       Components Of Enabling Entity
                                                              Local Steering       Business
        Executive     Provincial             National
                                                                Commttee            Sector
        Councillors     MECs               Ministers/DGs
                                                              Representation     Representation

                               Board                             MOU           National
  Section 21 or
Public Corporation
   or in-house
   department                                                                  Provincial
                             Support                 Inter-governmental
                               Core                     Coordination
Province      City    Official secondees

                       Project Managers
                                                       Service Level            Donors
                        Proposed Components
                           Of Business Plan
                                                                Metropolitan Spatial
Stratey/Policy        BUSINESS PLAN                           Development Framework
from 3 spheres                                                Principles and Objectives
 of government

                         Vision and                                    Contextual
                          Strategy                                     Framework

                                                           Khayelitsha          Mitchell’s Plain
    5 year                                  Package       Development           Development
    MTIEF                                   of Plans       Framework             Framework

                                                            District                District
                                                             Plans                   Plans
  Monitoring                             3 year Rolling
     and                                  Programme
  Evaluation                               of Projects      Precinct                Precinct
                                                             Plans                   Plans

                                                            Project                 Project
                  Integration into                           Plans                   Plans
                 National, Provincial,
                   City and Donor
                  budgets and IDP
                              Process Plan
                      Sep 2002                   Trigger Report

                     Core Partner                City Task Team
Sep 2002
                                                                            Lead Projects
                                     Interim Board and
  KFW                 Process           Management               Oct 2002
Feasibility          Agreement          Framework
               Mar 2003

                         Draft                                    Final Managing
                                           MOU                                              Feb 2003
                     Business Plan                             Entity and Framework

                                         2002/2003 IDP:
   Apr 2003           and public
                                      Plan and process links

                         Final               Review of Business
   May 2003
                     Business Plan            Plan with 2004/               Mar/June 2004
                                                 2005 IDP
   July 2003         Programme/
          Staff Implications

The City does not currently have the staff to drive or
support the urban renewal programme. A Project
Leader and contract based core staff component for
the Enabling Entity will be needed.
      Financial Implications

Urban Renewal is core business and a
constitutional obligation.
Business Plan will quantify operating costs of
management framework.
Urban renewal to be linked to the City’s IDP, MTIEF
and budget processes through the business plan to
ensure financial sustainability.
         Costs – Short Term

Business Plan to cost from R2,5 million to R3,0
million: urgent funding needed.
Annual operating cost of the Management Framework
and Enabling Entity may be in the range of R4 million
to R6 million per annum.
  Costs – Medium/Long Term

The future operating costs of new facilities and
infrastructure to be funded by Council must be
factored in.
Pressure will be put on Council to match government
and donor capital contributions with its own capital.
       Benefits – Short Term

At least R77 million of capital grant funding is
available from government for 2002/2003 and
2003/2004, together with at least R25 million of
donor finance.
Utilisation of local labour and skills training schemes
linked to capital projects will help relieve
unemployment and all of the downstream costs this
imposes on Council.
Major credibility boost for IDP if short term results
can be delivered.
Benefits – Medium/Long Term

Could attract unprecedented levels of national government
and donor funding over 5-7 years.
Climate conducive to private sector investment, to
strengthen the City’s tax base and avoid further
Culture of payment for services.
Immense costs of poverty (social impacts of crime, policing
measures and under utilisation of economic skills base)
Infrastructure is optimally matched to needs and
community takes care of new facilities.
Learning experiences for renewing other parts of the City.
Improve the image of the City and its attractiveness to
tourists and investors.

Exco to appoint an Urban Renewal Sub-Committee
supported by EMB Task Group (Development, Finance,
Community Services, Strategy)
Urban Renewal Sub-Committee to be mandated to finalise:
   Negotiation of a final Process Plan with core
   government partners (national and provincial).
   The design, development and funding of a Business
   The nature and form of an enabling entity and
   framework (with any interim arrangements).
   A Memorandum of Understanding with core partners
   and key stakeholders.
   Integration of the Urban Renewal Programme in the
   City’s IDP.

Dedicated internal Urban Renewal Project Leader and
Technical Support Team to be appointed.
Advertisement and selection process for consultants to
develop Business Plan to be initiated immediately.
Temporary operating budget of R200 000 and consultants
fees budget of R400 000 to be identified immediately,
further requirements for the balance of 2002/2003 to be
accurately quantified, and funds allocated thereto.
Funding (R2.26 million) from national and provincial
government and donors to complete the Business Plan to be
sought, but in any case to be identified and reserved as a
contingency fund in the 2002/2003 operating budget.
Thank You

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