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					   SA TRANSPORT
  CONFERENCE 2001
 INTEGRATED DEVELOPMENT:
  ARE WE GETTING IT RIGHT?

 The Platinum Toll Highway within the
 Tshwane Metropolitan Municipal Area
            as case study




   Paper presented by Mike Krynauw
City of Tshwane Metropolitan Municipality

                "Meeting the Transport
                Challenges in Southern
                       Africa"
        CONTENT

INTRODUCTION
DEFINITIONS
LEGISLATION AND POLICY
DIRECTIVES
Platinum Toll Highway PROJECT:
GENERAL
Platinum Toll Highway PROJECT:
MAIN ISSUES
INTEGRATED DEVELOPMENT
ASSESSMENT
CONCLUSION



              "Meeting the Transport
              Challenges in Southern
                     Africa"
        INTRODUCTION
Since 1994 : Fundamental restructuring of laws
regulating structure, powers and functions of all 3
spheres of Government:
Restructuring of general planning and transport
legislation:
   Development Facilitation Act (1995)
   National Land Transport Transition Act (2000)
Series of New Local Government Legislation
including Municipal Systems Act (2000)
National Spatial Development Initiatives (SDI’s) by
National Department of Trade and Industries:
   Maputo – Walvis Bay Corridor of which the
   Platinum Toll Highway is a sub-element
   Platinum Toll Highway starts from N1 as new
   Northern bypass of Pretoria to Brits and
   Rustenburg, ending at the Botswana border post
   near Lobatse

                    "Meeting the Transport
                    Challenges in Southern
                           Africa"
        DEFINITIONS
DEVELOPMENT:
“Sustainable development, and includes
integrated social, economic,
environmental, spatial, infrastructural,
institutional, organisational and human
resources upliftment of a community …”
(MSA, 2000)


SUSTAINABLE DEVELOPMENT:
“Sustainable development is development
that meets the needs of the present without
compromising the ability of future
generations to meet their own needs”
(Brundtland Commission, 1987)


                "Meeting the Transport
                Challenges in Southern
                       Africa"
 DEFINITIONS cont.

INTEGRATED DEVELOPMENT PLAN:
As prescribed in section 25 of MSA,
2000 – A single, inclusive and strategic
plan for the development of a
municipality that includes a spatial
development framework.


SPATIAL PLANNING:
“A public sector activity, which creates a
public investment and regulatory
framework within which private-sector
decision making and investment occurs”
(GP : D & P, 1999)



               "Meeting the Transport
               Challenges in Southern
                      Africa"
 LEGISLATION AND
POLICY DIRECTIVES
CONSTITUTION OF RSA:
  Everyone has the right to the
  environment through reasonable
  legislation and other measures that
  secure ecologically sustainable
  development and use of natural
  resources while promoting justifiable
  economic and social development.
  Co-operative Government :
  Government is constituted as
  national, provincial and local spheres
  of government – distinctive,
  interdependent and interrelated.

             "Meeting the Transport
             Challenges in Southern
                    Africa"
   LEGISLATION AND
POLICY DIRECTIVES cont.
   National and provincial government
   may not compromise or impede
   a municipality’s ability or right to
   exercise its powers or perform its
   function.
   If municipalities are required to
   comply with national and provincial
   planning requirements it must be
   i.t.o. Chapter 5 of the Municipal
   Systems Act.
      Consultation with the affected
      municipality
   All spheres of government are
   obliged to observe the principle of
   co-operative government..
                "Meeting the Transport
                Challenges in Southern
                       Africa"
   LEGISLATION AND
POLICY DIRECTIVES cont.
 DEVELOPMENT FACILITATION ACT
   (1995)
  Interim measure to bridge gap between
  apartheid laws and new planning system
  Parallel to existing planning legislation
  including The Physical Planning Act
  (1991)
  General Normative Principles:
     Reject low-density, segregated,
     fragmented and mono-functional
     development
     Embrace compact, integrated and
     mixed-use settlements
     Binding to all spheres of government

                 "Meeting the Transport
                 Challenges in Southern
                        Africa"
   LEGISLATION AND
POLICY DIRECTIVES cont.

  All laws, policies and administrative
  practices affecting land development
  should inter alia : promote sustainable
  development that:
     is within fiscal, institutional and
     administrative means
     establishes viable communities
     protect the environment
     meets the basic needs of all citizens
     in an affordable way




                  "Meeting the Transport
                  Challenges in Southern
                         Africa"
LEGISLATION AND POLICY
    DIRECTIVES cont.
 NATIONAL ENVIRONMENTAL
   MANAGEMENT ACT (1998)
  The state’s responsibility to respect,
  protect, promote and fulfill the social and
  economic rights under the Constitution
  Environmental management must place
  people and their needs at the forefront of
  its concern, and serve their physical,
  psychological, developmental, cultural and
  social needs equitably
  Development must be socially,
  environmentally and economically
  sustainable


                 "Meeting the Transport
                 Challenges in Southern
                        Africa"
LEGISLATION AND POLICY
    DIRECTIVES cont.

  Decisions must take into account the
  interests, needs and values of all
  interested and affected parties
  Social, economic and environmental
  impacts of activities, including
  disadvantages and benefits, must be
  considered, assessed and evaluated
  and decisions must be appropriate
  Decisions must be taken in an open and
  transparent manner and access to
  information must be provided
  There must be intergovernmental co-
  ordination and harminisation of policies
  and actions


                "Meeting the Transport
                Challenges in Southern
                       Africa"
LEGISLATION AND POLICY
    DIRECTIVES cont.


 NATIONAL LAND TRANSPORT TRANSITION ACT
   (2000)
   Municipalities = transport planning
   authorities (PA’s)
   PA’s to prepare integrated transport
   plans (ITP’s)
   PA’s to approve development proposals
   Binds state and parastal institutions and
   utilities
   ITP’s = transport component of IDP’s



                  "Meeting the Transport
                  Challenges in Southern
                         Africa"
LEGISLATION AND POLICY
    DIRECTIVES cont.

 WHITE PAPER ON SPATIAL PLANNING AND
   LAND USE MANAGEMENT (2001)
   Normative approach presented in the
   form of principles and norms
   5 Principles
      Sustainability
      Equality
      Efficiency
      Integration
      Fair and good governance
   Apply to all spheres of government, state
   organs and other agencies involved in
   spatial planning, land use management
   and land development

                 "Meeting the Transport
                 Challenges in Southern
                        Africa"
LEGISLATION AND POLICY
    DIRECTIVES cont.

  Guide preparation of IDP’s and its
  spatial development component
  Local government forms the most
  important sphere for decision making
  through key planning instrument : The
  IDP
  Minister of Land Affairs ultimately
  responsible for monitoring of planning
  policy and system
  White Paper to be followed by Land
  Use Act




                 "Meeting the Transport
                 Challenges in Southern
                        Africa"
Platinum Toll Highway
PROJECT : GENERAL

New or upgraded infrastructure
Safer traveling environment
Job Creation (Indirect)
    ± 7 000 Regional
    ± 14 000 RSA
Impact on GDP :
    R1 355m Regional
    R2 198m RSA
Personal Income Generation
    ± R1 800m RSA
    18,7% Lower income households
Predicted Tax Revenue
    ± R731m annual
    R6 100m NPV


            "Meeting the Transport
            Challenges in Southern
                   Africa"
            ANALYSIS OF TOLL FEES (R)
Gautrans = 15,5c/km                            RSA Ave. = 21c/km

   Position                          Distance (km)             Bakwena          Gautrans           RSA
                                                                                                   Average
   N1 : Maubane (Ramp)               42,9(N)                   7,60             6,65               9,01
   N1 : Hammanskraal                 47,2(N-
                                     47,2(N-S)                 21,00            7,32               9,91
   (Mainline)                        35,4(S-
                                     35,4(S-N)                 21,00            5,49               7,43
   N1 : Hammanskraal                 11,0                      8,20             1,71               2,31
   (Ramp)
   N1 : Murrayhill (Ramp)            8,6                       3,50             1,33               1,81
   N1 : Walmansthal (Ramp)           6,8                       1,80             1,05               1,43
   N1 : Kameeldrift (N1)                  (N-
                                     35,4 (N-S)                3,80             5,49               7,43
   (Main)                                 (S-
                                     13,8 (S-N)                3,80             2,14               2,90
   N1 : Zambezi (Ramp)               7,2                       3,50             1,12               1,51
   N1 : Stormvoel (Ramp)             3,6                       2,90             0,56               0,76
   N4 : Kameeldrift                       (E-
                                     16,2 (E-W)                4,70             2,51               3,40
                                          (W-
                                     34,3 (W-E)                4,70             5,33               7,22
   N4 : Dr. Swanepoel                33,0 (W)                  4,70             5,12               6,93
   (Ramp)
   N4 : Brits (Main)                      (E-
                                     34,4 (E-W)                4,70             5,33               7,22

                                                                         N1            N4          Nat. Average
   Average Proposed Toll Free (c/km) (Bakwena)                           35,8          19,9        21,0

   Analysis of Average Toll Fees in South Africa for Class 1 (Light) Vehicles at Mainline Toll Plazas in c/km

                 Peri-
                 Peri-Urban   Rural (State)    Rular (Prov.)     Peri-
                                                                 Peri-Urban (Platinum)        Rural (Platinum)
                 (State)
  Min            9            16               17                31                           11
  Max            23           28               27                31                           25
  Average        17           21               21                31                           18

   Analysis of Average Toll Fees at Ramp Toll Plazas on the Platinum Toll Highway for Class 1 vehicles in c/km

  Storm     Zambezi      Dr.           Wallmans-
                                       Wallmans-          Murray-
                                                          Murray-      Hammans-
                                                                       Hammans-        Maubane         Average
  -voel                  Swanepoel     thal               hill         kraal
  82        49           36            26                 23           31              18              38
 Platinum Toll Highway
PROJECT : MAIN ISSUES

 Tolling in General
    Most expensive way of user
    charging
    Cost of operating tolling system
    48% (R1719m) of project capital
    requirement
    Tolling of existing infrastructure
    controversial
    No supporting road network around
    N1
    Traffic diversion onto congested
    network
    Attitudinal survey results



              "Meeting the Transport
              Challenges in Southern
                     Africa"
Platinum Toll Highway :
  MAIN ISSUES cont.

 Environmental Impact Assessment
    Record of Decision based only on
    bio-physical aspects
    Social and economical aspects to
    be sorted out with Minister of
    Transport and NRA
    Not all reasonable alternatives
    investigated
 Toll fees
    Very high on N1
    Value of time used R60/h
    Cross subsidisation urban to rural
    Tshwane urban: 42% of income
                      22% of cost

               "Meeting the Transport
               Challenges in Southern
                      Africa"
Platinum Toll Highway :
  MAIN ISSUES cont.

 Toll fees (cont.)
    Internal Rate of Return (IRR):
    Tshwane urban: 78,9% - 117,3%
    N1 (Total) : Neg. IRR – Just
                  disbenefits
    N4 (Total) : IRR = 39,5%
    Total project : IRR = 34,2%
    Discounts/Concessions?
        Regular users
        Public transport
        Ad hoc approach
        No involvement of local authority
        councillors


               "Meeting the Transport
               Challenges in Southern
                      Africa"
Platinum Toll Highway :
  MAIN ISSUES cont.

 Socio-economic
   Direct impact : 75 000 residents
   Indirect impact : 400 000 residents
   Annual disbenefit @ V.o.T. = R32/h
                          : R520m
 Local Road Network
   No compensation
   Metropolitan authority’s problem
   Competing roads
   North-South linkage problem in
   Tshwane




              "Meeting the Transport
              Challenges in Southern
                     Africa"
Platinum Toll Highway :
  MAIN ISSUES cont.
Public Participation
   Information sessions
   No meaningful consultation
   Ignoring public and council positions
Integrated Development Plan
   Tolled N1 not part of Metro IDP
   Gauteng provincial spatial framework
National Spatial Development Initiative (SDI)
   No financial support from Treasury
   Driven by agency maximising own
   opportunities
   Lack of project champion/driver/co-
   coordinator
   Western bypass of Pretoria excluded –
   would have advanced development
   opportunities dramatically


                "Meeting the Transport
                Challenges in Southern
                       Africa"
Platinum Toll Highway :
  MAIN ISSUES cont.
Inter Governmental Relations
   No co-operative governance between
   3 spheres of government
   Project detail kept secret i.t.o toll strategy
   Ignoring GPMC and Tshwane Council
   resolutions
Lack of Holistic Funding Strategy for
Transport
   Maximising own benefits
   Distortions / outflow of capital
   Cross subsidisation
   Current obligation w.r.t. N1 ?
   Annual fuel tax income : ± R40m
   Massive investment in tolling
   infrastructure

                  "Meeting the Transport
                  Challenges in Southern
                         Africa"
Platinum Toll Highway :
  MAIN ISSUES cont.


Lack of Holistic Funding Strategy for
Transport (cont.)
   After 30 year concession period?
   What is going to happen with the
   annual income after tax of R731m –
   will a fair share of it be made
   available to Tshwane?




              "Meeting the Transport
              Challenges in Southern
                     Africa"
   5 NORMATIVE PRINCIPLES
     PRINCIPLE OF SUSTAINABILITY

  THE PRINCIPLE OF SUSTAINABILITY REQUIERS
  THE SUSTAINABLE MANAGEMENT AND USE OF
  THE RESOURCES MAKING UP THE NATURAL
  AND BUILT ENVIRONMENT



     PRINCIPLE OF EQUALITY

THE PRINCIPLE OF EQUALITY REQUIERS THAT
EVERYONE AFFECTED BY SPATIAL PLANNING,
LAND USE MANAGEMENT AND LAND DEVELOP-
MENT ACTIONS OR DECISIONS MUST ENJOY
EQUAL PROTECTION AND BENEFITS, NO UNFAIR
DISCRIMINATION SHOULD BE ALLOWED



                 "Meeting the Transport
                 Challenges in Southern
                        Africa"
  NORMATIVE PRINCIPLES (Cont.)
  PRINCPLE OF EFFICIENCY

 THE PRINCIPLE OF EFFICIENCY REQUIERS
 THAT THE DESIRED RESULT OF LAND USE
 MUST BE PRODUCED WITH THE MINIMUM
 EXPENDITURE OF RESOURCES

  PRINCPLE OF INTEGRATION

THE PRINCIPLE OF INTEGRATION REQUIERS
THAT THE SEPARATE AND DIVERSE ELEMENTS
INVOLVED IN DEVELOPMENT PLANNING AND
LAND USE SHOULD BE COMBINED AND COOR-
DINATED INTO A MORE COMPLETE AND
HARMONIOUS WHOLE




               "Meeting the Transport
               Challenges in Southern
                      Africa"
   NORMATIVE PRINCIPLES (Cont.)

  PRINCIPLE OF FAIR AND GOOD GOVERNANCE

THE PRINCIPLE OF FAIR AND GOOD GOVERN-
ANCE REQUIRES THAT SPATIAL PLANNING,
LAND USE MANAGEMENT AND LAND DEVELOP-
MENT MUST BE DEMOCRATIC, LEGITIMATE AND
PARTICIPATORY




                "Meeting the Transport
                Challenges in Southern
                       Africa"
      INTEGRATED
     DEVELOPMENT
     ASSESSMENT


SUSTAINABILITY?                x

EQUALITY?                      x

EFFICIENCY?                    x

INTEGRATION?                   x

FAIR AND GOOD GOVERNANCE?               x




               "Meeting the Transport
               Challenges in Southern
                      Africa"
       CONCLUSION


The way in which the development of
the Platinum Toll Highway within the
Tshwane Metropolitan Area was
approached must be seen as a bad
example of Integrated Development
and is certainly not in line with land
development principles and norms as
developed by Government since 1994.




                "Meeting the Transport
                Challenges in Southern
                       Africa"

				
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