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SECTION 6 CAPITAL INVESTMENT FRAMEWORK (CIF)

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  • 1. SECTION 6 CAPITAL INVESTMENT FRAMEWORK (CIF) 6.1 Introduction • Improve service delivery through infrastructure and services that is planned, delivered, upgraded or managed in an objective and The Capital Investment Framework (CIF) leads to the actual structured manner that support the City’s GDS vision and implementation of the IDP and the SDF, realising the goals and the priorities; objectives of the City of Joburg via capital budget expenditure • Prioritise projects and programmes through an information allocation to specific development projects. The CIF is an outcome of system; a joint initiative between the Development Planning Directorate, • Direct future public and private investment Finance and all service providers within the City (Municipal Owned • Strategically align capital budgets; and Entities and core internal Departments). The CIF provides for • Identify types of infrastructure and services planning and strategic and effective implementation of the SDF’s development implementation choices in a strategic manner that fulfils the principles and strategies, which are in line with the City’s Growth and City’s developmental priorities Development Strategy. 6.2 Methodology employed The development strategies and investment programmes of the SDF provides the basis for the implementation and realisation for the CIMS (Capital Investment Management System) is utilised to development paradigms of GDS and the outcomes envisaged sector determine priority projects for Capex allocation. CIMS was programmes. The SDF provides the development direction and specifically developed and tailored to act as a single database for the spatial imperatives that will align City investment with the vision for Investment Programmes and all associated capital requests, the City and the Mayoral priorities. delivering on the development paradigms of the CGDS. CIMS therefore functions as a prioritisation tool, reporting module on The CIF addresses and fulfils the realisation of the 6 identified specific scenarios and project management / tracking module. The Development Paradigms and the 12 Sector Areas of the Growth and system provides a platform for the City to understand the citywide Development Strategy and the IDP. implications of investment decisions as it relates to the Strategic Agenda. The 2007/2008 capital budget represents a balanced The purpose of the CIF is to ensure the improvement and the sharing between the Programmes, giving equal prominence to the management of the existing infrastructure by addressing the many City’s historical backlogs, existing infrastructure and future growth. developmental challenges within the City. The CIF indicates where Council should invest the capital budget for capital projects within a 6.3 Prioritisation short to medium timeframe and translates a catalogue of “wish list” projects into a catalogue of strategies and projects collated from the The City has developed a model to log, prioritise and track projects on Municipal Entities and Core Departments. The purpose of the CIF is the annual Capital Expenditure (CapEx) budget. The MEs and core therefore to: departments were required to submit lists of CapEx projects on an annual basis for evaluation and prioritisation. When priority projects Section 6: Capital Investment Framework
  • 2. are implemented, tracking of the progress on these as well as regular • Financials report back and confirmation of progress is required. This section • The projects contribution to City Programmes Identified in the describes the methodology of prioritisation and how the various GDS and SDF elements used within the model were derived and incorporated. • Mayoral Priorities Although projects are often prioritised individually by the respective • Planning and infrastructure Issues (e.g. Service Delivery, MEs and Divisions, the projects still need to be prioritised from a City Economic Growth, Social, etc.) perspective. The City perspective involves important strategic • Technical Issues (legal obligations, technical requirements, elements that may not be percieved as important from an MEs or feasibility, etc.) internal division’s point of view. Strategic inputs need to be given to The purpose of the CIMS model is to ensure alignment of the capital the decision makers to enable planning and suitable allocation of investment programmes with the Mayoral priorities, the development budgets and resources, to realise and affect the strategic direction paradigm and sector programmes of the GDS and the development provided by the City’s vision and current agendas. direction of the SDF. It further provides an understanding of the A comprehensive model has been developed to address these development implications of certain investment decisions. various issues and to respond to the deficiencies that have been identified in the past. The model is accessible to all various City 6.4 Overview of the City’s Capital Budget service providers via the internet. It also provides the ability to track and manage the progress on projects that have been approved for In order for the City to adequately and efficiently provide the implementation. necessary infrastructure to ensure that development is appropriate equitable and enhances the quality of life for all citizens, substantial The system that was developed for the City of Johannesburg is called capital expenditure is required. the Capital Investment management Sytem (CIMS). The development of the system was influenced by a number of very The CAPEX budget is funded from the tariffs, rates base and important parameters. An understanding of the system’s users, the external funding (e.g. housing subsidy, Municipal Infrastructure Grant information required by the model and the magnitude of information etc.). The Municipal Infrastructure Grant, (MIG), is utilised for the that are required were key considerations. provision of bulk and basic services and is focused on providing Since a number of elements have to be covered by the model, the these services to the poor. The specific allocation of MIG is detailed level of detail and the model’s sensitivity to these criteria were very in the investment programmes. The broad breakdown of the important to establish from an early stage in the model’s development. respective line departments and Municipal Entities for the 2007/2008 The influence of the City’s annual programme and timelines were financial year is depicted in Table 6.1 and Diagram 6.1 below: important as well as the level of feedback required by the City’s planners from time to time. New prioritisation elements are introduced Table 6.1: Total City of Joburg Capex Budget Breakdown for all annually by e.g. the mayoral priorities and these have to be taken into Municipal Entities and Core Departments, 2007/2008 account in the prioritisation process. Typical, basic considerations taken into account by the model are: • Project Locality in relation to priority development areas Section 6: Capital Investment Framework
  • 3. CITY OF JOBURG CAPITAL BUDGET 2007/2008 2006/2007 Budget Difference between 2006/2007 and 2007/2008 2007/2008 Percentage contribution to 2006/2007 Percentage contribution to 2007/2008 (R'000) Entity (R'000) Budget(R’000) total Capex total Capex Office the Executive Mayor R 8,067 0.30% R 7,814 0.36% R 253 Revenue and Customer Relations R 137,894 5.18% Management R 228,000 10.48% -R 90,106 Finance R 15,453 0.58% R 38,000 1.75% -R 22,547 Economic development R 3,926 0.15% R0 0.00% R 3,926 Arts, Culture and Heritage R 351 0.01% R 1,550 0.07% -R 1,199 Community Development: Social R 4,030 0.15% Services R 6,900 0.32% -R 2,870 Community Development: Libraries R 3,450 0.13% R 10,300 0.47% -R 6,850 Community Development: Sport R 216,518 8.14% and Recreation R 115,000 5.29% R 101,518 Community Development: Other R 1,740 0.07% R0 0.00% R 1,740 Corporate Shared Services R 5,127 0.19% R 14,000 0.64% -R 8,873 Housing R 56,395 2.12% R 42,132 1.94% R 14,263 Health Services R 4,864 0.18% R 7,305 0.34% -R 2,441 Development Planning R 103,284 3.88% R 72,155 3.32% R 31,129 Emergency Management Services R 5,248 0.20% R 16,585 0.76% -R 11,337 Johannesburg Metropolitan Police R 765 0.03% Department R 12,825 0.59% -R 12,060 Transportation R 300,804 11.31% R 94,000 4.32% R 206,804 Environment R 3,778 0.14% R 3,500 0.16% R 278 Infrastructure and Services R 330 0.01% R0 0.00% R 330 Alexandra Renewal Project R 78,500 2.95% R0 0.00% R 78,500 2010 R 13,600 0.51% R0 0.00% R 13,600 City Power R 624,000 23.45% R 354,020 16.27% R 269,980 Johannesburg Water R 672,000 25.26% R 533,055 24.50% R 138,945 Pikitup Johannesburg R0 0.00% R 45,645 2.10% -R 45,645 Johannesburg Roads Agency R 155,000 5.83% R 219,950 10.11% -R 64,950 Metrobus R0 0.00% R 7,500 0.34% -R 7,500 Johannesburg City Parks R 10,200 0.38% R 22,000 1.01% -R 11,800 Johannesburg Zoo R 13,600 0.51% R 19,800 0.91% -R 6,200 Johannesburg Social and Housing R 26,000 0.98% Company R 23,400 1.08% R 2,600 Johannesburg Tourism Company R0 0.00% R 1,700 0.08% -R 1,700 Johannesburg Property Company R 51,500 1.94% R 60,000 2.76% -R 8,500 Metro Trading Company R 2,500 0.09% R 1,500 0.07% R 1,000 Johannesburg Fresh Produce R0 0.00% Market R 54,065 2.48% -R 54,065 Johannesburg Development R 140,000 5.26% Agency R 158,419 7.28% -R 18,419 Johannesburg Civic Theatre R 1,000 0.04% R 1,618 0.07% -R 618 Roodepoort Civic R 500 0.02% R 2,800 0.13% -R 2,300 Total R 2,660,424 100.00% R 2,175,538 100.00% R 484,886 Section 6: Capital Investment Framework
  • 4. Diagram 6.1: 2006/2007 Budget 2007/2008 Budget (R'000) Johannesburg Civic Theatre 0% CommunityRoodepoort Civic Development: Libraries Johannesburg Development Agency 0%0% 5% Johannesburg Fresh Produce Market 0% 0% Metro Trading Company 0% 0% Office the Executive Mayor Johannesburg Property Company 0% 2% Finance Johannesburg Tourism Company 1% RMU 0% Economic development Johannesburg Social and Housing Company 5% 0% 1% Arts, Culture and Heritage Johannesburg Zoo Social Services 0% 1% 0% Community Development: Other Johannesburg City Parks 0% Corporate Shared Services 0% Housing 0% Metrobus 2% 0% Sport&Rec8% Health Services Johannesburg Roads Agency 0% 6% Development Planning Pikitup Johannesburg 4% 0% Emergency Management Services 0% Johannesburg Metropolitan Police Department 0% Transportation Johannesburg Water 11% 25% Environment 0% Infrastructure and Services 0% Alexandra Renewal Project 3% City Power 23% 2010 1% Section 6: Capital Investment Framework
  • 5. 6.5 Capex Allocation per Region – 2007/2008 The breakdown of the budget per region is depicted in the Table 6.2 below: Table 6.2 Overview of the City’s Regional Capex Share Capital Budget Allocated per Region 2007/2008 Region Capital Budget Allocated 2007/2008 Region A R 132,840,071 Region B R 480,771,071 Region C R 326,918,933 Region D R 410,988,099 Region E R 276,553,404 Region F R 774,614,071 Region G R 66,113,404 City-wide R 35,400,000 Last financial year, the City Centre (Region 8) was a key focus area and gained the largest CapEx portion of R273m. The Greater Soweto area (combination of Regions 6 and 10) was allocated. Once again, the Inner City (Region F) has received the largest portion (R774.6m), as depicted in Diagram 6.2 below: Section 6: Capital Investment Framework
  • 6. Diagram 6.2: Capital Budget Allocation per Region Capital Budget Allocated per region 2007/2008 City-wide 1% Region A Region G 5% 3% Region B 19% Region F 32% Region C 13% Region E 11% Region D 16% Section 6: Capital Investment Framework
  • 7. 6.6 Allocation per all funding sources – Comparative 2006/2007 Table 6.3 and Diagram 6.3 below shows the allocation of funds to all and 2007/2008 core departments and entities, as per all funding sources: Table 6.3: Overview of External Funds – Last financial year (2006/2007) SOURCE OF FINANCE 2006/07 TOTAL Own Own Details Public Contributions Funding Capital Funding Loans Reserve Cash National Provincial CMIP/ Other Surpluses Grant Grant MIG BSC R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 CORE ADMINISTRATION Office the Executive Mayor 10,522 7,814 2,708 Finance 44,153 38,000 6,153 Revenue and Customer Relations Management 236,462 228,000 8,462 Economic Development 500 500 Corporate Shared Services 15,624 14,000 1,624 Development Planning 84,761 72,155 2,306 10,300 Transportation 335,665 94,000 765 240,900 Environment 3,500 3,500 Infrastructure and Services 314 314 Emergency Management Services 17,106 16,585 521 Johannesburg Metropolitan Police Department 13,337 12,825 512 Arts, Culture and Heritage 1,884 1,550 334 Community Development: Libraries 11,100 10,300 800 Community Development: Social Services 7,722 6,900 822 Community Development: Sport and Recreation 158,404 115,000 1,404 42,000 Community Development: Other 338 338 Health Services 9,079 7,305 1,774 Housing 105,450 42,132 1,327 48,991 13,000 TOTAL CORE ADMINISTRATION 1,055,921 670,066 30,664 240,900 48,991 65,300 MUNICIPAL ENTITIES City Power 713,125 354,020 200,000 10,000 15,000 7,000 127,105 Johannesburg Water 726,776 533,055 6,000 142,000 45,721 Section 6: Capital Investment Framework
  • 8. SOURCE OF FINANCE 2006/07 TOTAL Own Own Details Public Contributions Funding Capital Funding Loans Reserve Cash National Provincial CMIP/ Other Surpluses Grant Grant MIG BSC R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Pikitup Johannesburg 51,645 45,645 6,000 Johannesburg Roads Agency 284,950 219,950 65,000 Metrobus 7,500 7,500 Johannesburg City Parks 30,000 22,000 8,000 Johannesburg Zoo 19,800 19,800 Johannesburg Development Agency 158,419 158,419 Johannesburg Property Company 60,000 60,000 Johannesburg Fresh Produce Market 54,065 54,065 Metro Trading Company 1,500 1,500 Johannesburg Tourism Company 1,700 1,700 Johannesburg Social and Housing Company 23,400 23,400 Johannesburg Civic Theatre 1,618 1,618 Roodepoort Civic 2,800 2,800 TOTAL UAC'S 2,137,298 1,505,472 6,000 200,000 10,000 15,000 228,000 172,826 TOTAL 3,193,219 2,175,538 36,664 200,000 250,900 63,991 293,300 172,826 COJ Funding accounts for the bulk of capital projects, followed by MIG and National Grants. Section 6: Capital Investment Framework
  • 9. Diagram 6.3: Source of Funding – Other Grants Source of Funding - Other Grants Other 6% MIG 10% Provincial Grant 2% National Grant 8% COJ Funding 74% Section 6: Capital Investment Framework
  • 10. Table 6.4 Overview of External Funds – Current financial year (2007/2008) SOURCE OF FINANCE COJ External Loan Total Budget Public Contributions Details COJ Cash Surplus 2007/2008 National Provincial CMIP/ Other Grant Grant MIG BSC R 000 R 000 R 000 R 000 R 000 R 000 R 000 CORE ADMINISTRATION Office the Executive Mayor 8067 5300 2767 Finance 15453 6800 8653 Revenue and Customer Relations Management 137894 129000 8894 Economic Development 3926 3400 526 Corporate Shared Services 5127 3000 2127 Development Planning 107784 100000 3284 4500 Transportation 300804 300000 804 Environment 3778 3000 778 Infrastructure and Services 330 330 Alexandra Renewal Programme 88500 78500 10000 Emergency Management Services 5248 4700 548 Johannesburg Metropolitan Police Department 765 765 Arts, Culture and Heritage 351 351 Community Development: Libraries 3450 3400 50 Community Development: Social Services 4030 3700 330 Community Development: Sport and Recreation 272518 215000 1518 56000 Community Development: Other 1740 1740 Health Services 4864 3000 1864 Housing 92395 55000 1395 36000 TOTAL CORE ADMINISTRATION 1070624 927400 35724 106500 MUNICIPAL ENTITIES City Power 663000 474000 150000 39000 Johannesburg Water 782000 672000 110000 Pikitup Johannesburg 2886 2886 Section 6: Capital Investment Framework
  • 11. SOURCE OF FINANCE COJ External Loan Total Budget Public Contributions Details COJ Cash Surplus 2007/2008 National Provincial CMIP/ Other Grant Grant MIG BSC R 000 R 000 R 000 R 000 R 000 R 000 R 000 Johannesburg Roads Agency 225000 155000 70000 Metrobus Johannesburg City Parks 20200 10200 10000 Johannesburg Zoo 13600 13600 Johannesburg Development Agency 140000 140000 Johannesburg Property Company 51500 51500 Johannesburg Fresh Produce Market Metro Trading Company 2500 2500 Johannesburg Tourism Company Johannesburg Social and Housing Company 26000 26000 Johannesburg Civic Theatre 1000 1000 Roodepoort Civic 500 500 TOTAL UAC'S 1928186 1546300 150000 231886 TOTAL CAPITAL 2998810 2473700 186724 338386 The 2007/2008 financial year sees a greater independence of COJ on external funds as COJ has funded 83% of its capital projects. MIG and no National Grants follow this for the 2007/2008 financial year. Section 6: Capital Investment Framework
  • 12. Diagram 6.4: Source of Funding – other grants Source of funding - other grants - 2007/2008 CMIP/ MIG 11% COJ Cash Surplus 6% COJ External Loan 83% Section 6: Capital Investment Framework
  • 13. 6.7 Sector Programmes capex allocation for 2007/2008 The 12 priority sector programmes of the GDS are distributed according to the following distribution in Table 6.5 and Diagram 6.4: Table 6.5: Distribution of priority sector programmes Capex allocation per sector programme Sector Programme Capex Economic development R 58,900,000.00 Human and community development R 222,100,000.00 Housing 106,205,200.00 Infrastructure and basic services R 1,296,000,000.00 Environment R 26,800,000.00 Spatial form and urban management R 243,284,000.00 Transportation R 455,000,000.00 Health R 3,000,000.00 Safety R 4,700,000.00 Financial sustainability R 135,800,000.00 Governance R 0.00 Corporate and shared services R 3,000,000.00 Section 6: Capital Investment Framework
  • 14. Diagram 6.5: Sector Programme Capex Allocation Sector Programme Capex Allocation 2007/2008 Governance 0% Corporate and shared services 0% Financial Economic sustainability development 5% 2% Safety Human and 0% community development Health 9% 0% Housing Transportation 4% 18% Spatial form and urban management 10% Environment 1% Infrastructure and basic services 51% Section 6: Capital Investment Framework
  • 15. 6.8 Investment Programmes have to be confined to a spatial boundary, it can be issue or sector related. The following 10 investment programmes have been developed to support the implementation of the CGDS and has influenced the The Investment Programmes and associated projects have been outcome of capital budget allocations. prioritised in terms of their contribution and alignment to the Mayoral The programmes are: Priorities, Strategic Agenda, and the Sector Plans of the CGDS namely: Economic development, Human & community development, 1. The Upgrading of Marginalised Areas Programme (UMAP) Housing, Infrastructure & basic services, Environment, Spatial form 2. The Regeneration Programme (RP) & urban management, Transportation, Health, Safety, Financial 3. Corridor Development Programme sustainability, Governance, and Corporate & shared services. The 4. Nodal Programme investment programmes are cross cutting to all the sector plans and 5. Density programme integrate and align the capital implications from each of the Sector 6. Strategic Transportation Interventions Programme (STIP) Plan programmes. 7. Strategic Infrastructure Investment Plan (SIIP) 8. Sustainable Environment Programme (SEP) The Investment Programmes are key to the City’s delivery strategy. 9. 2010 Programme The implementation of the above Programmes and projects will be the 10. Housing Programme responsibility of the City’s MoEs and core Departments. Although responsibilities are sector specific, implementation will happen within These programmes provide a comprehensive solution and set of an integrated framework. specific actions to address a number of developmental and infrastructure provision, upgrade and maintenance issues. The Please note that the total capex for the CIF programmes is greater strategic developmental programmes will deliver benefits by than the City budget as there is an element of overlap on the integrating development and infrastructure proposals to ensure programmes as some of the projects contribute to more than one coordinated implementation. An Investment Programme does not investment programme. Section 6: Capital Investment Framework
  • 16. Table 6.6 Total Capital Expenditure for Programmes 2007/2008 Difference in capex spend Programme Capital Spending 2007/2008 Capital Spending 2006/2007 between the 2006/2007 and 2007/2008 financial years The Upgrading of Marginalised Areas Programme R 462,682,099.00 R 553,605,205.00 -R 90,923,106.00 (UMAP) The Regeneration Programme (RP) R 853,114,071.00 R 318,363,153.00 R 534,750,918.00 Nodal Programme R 1,170,608,457.00 R 138,750,142.00 R 1,031,858,315.00 Density Programme R 1,820,852,457.00 R 0.00 R 1,820,852,457.00 Strategic Transportation Interventions Programme R 455,000,000.00 R 321,515,000.00 R 133,485,000.00 (STIP) Corridor Development Programme R 1,412,511,800.00 R 182,856,792.00 R 1,229,655,008.00 Strategic Infrastructure Investment Programme R 1,296,000,000.00 R 249,854,200.00 R 1,046,145,800.00 Sustainable Environment Programme R 26,800,000.00 R 56,000,000.00 -R 29,200,000.00 2010 Programme R 704,620,000.00 R 308,117,000.00 R 396,503,000.00 Housing Programme R 106,205,200.00 R 168,732,193.00 -R 62,526,993.00 Total R 8,308,394,084.00 R 2,297,793,685.00 R 6,010,600,399.00 Section 6: Capital Investment Framework
  • 17. Diagram 6.6: Capital Spending Programmes - Capital Spending 2007/2008 The Upgrading of Marginalised Areas Housing Programme 2010 Sustainable Programme (UMAP) The Programme Environment 1% 6% Regeneration Programme8% Programme (RP) 0% 10% Strategic Infrastructure Investment Programme 16% Nodal Programme 14% Corridor Development Programme 17% Density Strategic Programme Transportation 23% Interventions Programme (STIP) 5% Section 6: Capital Investment Framework
  • 18. 6.7.1 The Upgrading of Marginalised Areas Programme (UMAP) This programme has been identified as one of the most critical The UMAP areas are Soweto, Diepsloot, Orange Farm and Greater aspects to bridge the divide between Joburg’s first and second Ivory Park, (including the areas of Kaalfontein and Rabie Ridge), and economies, to ensure that balanced, equitable and shared growth have been allocated a total capital budget of approximately R463m. has been attained by prioritising the development of marginalised The table below provides a breakdown of the capital budget areas and disadvantaged communities. The UMAP programme allocated per marginalised area. From the four prioritised regions, therefore seeks to provide critical infrastructure to marginalised Soweto gains the largest share (R411m) as it is a pivotal area for areas by addressing the backlogs within the shortest possible time redevelopment, holding vast economic potential. period. Table 6.7 Allocated Capital Budget per UMAP Area Region 2007/2008 Allocated Capital 2006/2007 Allocated Capital Percentage difference in Budget Budget allocation between the financial years Soweto R 410,988,099.00 R 434,361,165.00 5.38% Diepsloot R 30,500,000.00 R 26,319,633.00 15.88% Orange Farm R 10,500,000.00 R 59,304,926.00 82.29% Ivory Park R 10,694,000.00 R 33,619,481.00 68.19% Total R 462,682,099.00 R 553,605,205.00 16.42% Section 6: Capital Investment Framework
  • 19. Diagram 6.7: UMAP UMAP 2007/2008 Allocated Capital Budget Ivory Park 2% Orange Farm 2% Diepsloot 7% Sow eto 89% Section 6: Capital Investment Framework
  • 20. 6.7.2 Regeneration Programme (RP) • Provision of new housing where possible The key issue determining the allocation of capital in this Programme • Provision of public transport facilities was the need to regenerate existing developed areas that have been • Promote a safe environment and are in decline for a number of reasons, through: • Protection of cultural amenities • Upgrading and maintenance of infrastructure The City has committed more than R853m towards area regeneration • Pavement management projects in the Inner City and Alexandra. These funds address the • Stormwater management upgrading of infrastructure, housing provision and the provision of • Upgrading and maintenance of social, health and recreation social, health and recreation facilities. facilities Table 6.8 Allocated capital expenditure for the Regeneration Programme 2007/2008 Allocated Capital Percentage difference in Expenditure allocation between the financial years 2006/2007Allocated Capital Area Expenditure Region 7: Alexandra R 78,500,000.00 R 45,000,000.00 74.44% Region 8: Central R 774,614,071.00 R 273,363,153.00 183.36% Total R 853,114,071.00 R 318,363,153.00 167.97% 6.7.3 Corridor Development Programme An important component of the restructuring strategy is corridor • Providing quality pedestrian facilities development. These are areas developed around major movement • Integrating with other transportation modes, especially rail networks. The Programme will incorporate intense residential and economic development that will be supported by the appropriate level Both the East West Development Corridor and the North South of infrastructure and services provision. Development Corridor need extensive planning and management to optimise the development potential. The North-South Development The programme will ensure that the identified corridor areas are Corridor has been allocated a capital budget of almost R656mand the planned and managed effectively through a number of key aspects: East West Development Corridor a capital budget of almost R757m , totalling more than R1.4bn. It is interesting to note the incredibly vast • Higher densities are proposed and existing infrastructure and capex expenditure increase between the 2006/2007 financial year on social amenities will have to be upgraded the Corridor Programme to the 2007/2008 financial year, showing the • Implementation of the relevant SPTN routes City’s serious intentions on restructuring the City to make it a more • Ensuring mobility along important arterials compact, competitive and dense one. Section 6: Capital Investment Framework
  • 21. The main focus in the North South Corridor is respectively on Please note that this programme does overlap with the Nodal and the electricity, water and roads; whilst the East West Corridor has Strategic Infrastructure Investment Programmes, and that there has respectively prioritised water, electricity and roads. However, both therefore been a degree of double counting with projects, lending to a corridors have the same 3 main sectors as their priority and is slightly higher total capital budget figure, below. strategically aimed at uplifting the core infrastructure of the City in order to attain a world-class African city status. Table 6.9 Capex for the Corridor programme 2007/2008 Total Capex Allocated Percentage difference in to Corridor allocation between the financial 2006/2007 Total Capex Allocated years Corridor to Corridor North South Corridor R 655,930,800.00 R 98,025,893.00 569.14% East West Corridor R 756,581,000.00 R 84,830,899.00 791.87% Total R 1,412,511,800.00 R 182,856,792 672.47% Section 6: Capital Investment Framework
  • 22. Diagram 6.8: Corridor Programme Corridor Programme - 2007/2008 Total Capex Allocated 0% North South Corridor 46% East West Corridor 54% 6.7.4 The Nodal Development Programme The SDF has noted the key contribution that strong, viable nodes • Providing of public transport facilities play as structuring elements within the City. This Programme • Supporting the Gautrain Station development supports the efficient management and growth of the City’s existing nodes through the following interventions: The nodes involve the following key areas: Sandton, Randburg, • Upgrading and maintenance of infrastructure Stretford, City Deep, Baralink, Lenasia, Kliptown, Roodepoort, • Pavement management Nasrec, Fourways, and Ennerdale. The total budget of the nodal • Stormwater management programme is R1,170,608,457. This is certainly a significant capex • Upgrading and maintenance of social, health and recreation portion and once again shows the City’s strategic intent of densifiying facilities and compacting the city to enable the provision of infrastructure, • Providing new housing where possible services, and economic development that will enhance the quality of life for all the City’s citizens. Section 6: Capital Investment Framework
  • 23. 6.7.5 Strategic Transportation Interventions Programme (STIP) • Public lighting • Resolving power outages The Strategic Transportation Interventions Programme (STIP) takes • Addressing storm water drainage into account the City’s Bus Rapid Transit system (BRT) and • Increasing the overall infrastructure capacity levels of the City to endeavours to deliver on the SPTN. The SPTN consists of 325km of meet rapid development road networks along mobility spines and mobility roads that serve as a structuring element of the City in creating a more accessible City The capital budget allocated to this programme is almost R1.296bn. that presents greater economic and employment opportunities. 6.7.7 Sustainable Environments Programme The STIP is a culmination of a few of the City’s transport related entities, i.e. The Transportation Planning Division, the Metro Bus This programme is aimed at conserving the natural and built Municipal Entity, and the Johannesburg Roads Agency (JRA). Their environment in the most sustainable manner within confined contribution to the Strategic Transportation Interventions Programme resources. (STIP) totals R455m. The main focus of the STIP revolves around the implementation of the Bus Rapid Transit system (BRT), its link The total capital budget allocated to the Sustainable Environments with the Gautrain station developments and transport infrastructure Programme is R13.2m, with R3m allocated towards key for the 2010 World Cup. environmental priorities and R10.2m being allocated towards Johannesburg City Parks. 6.7.6 Strategic Infrastructure Investment Programme (SIIP) 6.7.8 2010 Programme This programme includes the full spectrum of infrastructure and The 2010 Programme is aimed at gearing the City for the 2010 social amenities provision for strategic developmental interventions, World Cup in terms of its infrastructure requirements. The Municipal such as Cosmo City, in the following areas: Entities and Core City Departments directly involved in the upgrading of infrastructure for 2010 are the COJ 2010 Department, City Power, • Infrastructure provision with relevant capacities Johannesburg Development Agency, Johannesburg Water, Social • Provision of new social, health and recreation facilities Development (Sports and Recreation), and Transportation. Their • Procurement of land for open space provision as well as capital expenditure requirements for the 2007/2008 financial year is services servitudes R704m. A basic breakdown of departmental and entity contributions • Construction of new transportation linkages and facilities with the is provided below, followed by a detailed list of departmental and focus on public transportation entity projects. • New housing opportunities Section 6: Capital Investment Framework
  • 24. Table 6.10 Capex funding for 2010 – Financial years 2007/2008 – 2010/2011 Division 2007/2008 2008/2009 2010/2011 2010 - Related Projects R 13,600,000.00 R 210,000,000.00 R 110,000,000.00 City Power R 113,620,000.00 R 69,750,000.00 R 5,000,000.00 Johannesburg Development Agency R 80,000,000.00 R 385,000,000.00 R 84,191,000.00 (JDA) Johannesburg Water (JW) R 4,800,000.00 R 10,000,000.00 R 0.00 Soc Development: Sports and R 213,000,000.00 R 50,000,000.00 R 0.00 Recreation Transportation Planning Division R 279,600,000.00 R 242,000,000.00 R 0.00 (TP) Total R 704,620,000.00 R 966,750,000.00 R 199,191,000.00 Section 6: Capital Investment Framework
  • 25. Diagram 6.9: 2010 Capital Expenditure per Entity 2007/2008 2010 Capital Expenditure per Entity - 2007/2008 2010 - Related Projects 2% City Power 16% Transportation Planning Division (TP) 40% Johannesburg Development Agency (JDA) 11% Johannesburg Water (JW) 1% Soc Development: Sports and Recreation 30% Section 6: Capital Investment Framework
  • 26. Diagram 6.10: Capital Expenditure per Entity – 2008/2009 2010 Capital Expenditure per Entity - 2008/2009 2010 - Related Transportation Projects Planning Division (TP) 22% 25% City Power Soc Development: 7% Sports and Recreation 5% Johannesburg Water (JW) 1% Johannesburg Development Agency (JDA) 40% Section 6: Capital Investment Framework
  • 27. Diagram 6.11: 2010 Capital Expenditure per Entity 2010/2011 2010 Capital Expenditure per Entity - 2010/2011 Johannesburg Water (JW) 0% Soc Development: Sports and Recreation 0% Transportation Planning Division (TP) 0% Johannesburg Development Agency (JDA) 42% 2010 - Related Projects 55% City Power 3% Section 6: Capital Investment Framework
  • 28. Table 6.11 Comprehensive project lists for 2010 Programme in the financial years of 2007/2008 to 2010/2011 2010 PROJECTS COJ Funding Project Name 2007/2008 2008/2009 2009/2010 2010/2011 2010 Office Development of a Soweto Theatre R 0.00 R 70,000,000.00 R 30,000,000.00 R 0.00 Ellis Park Stadium Development R 0.00 R 0.00 R 0.00 R 0.00 Greening of undeveloped soccer fields in Soweto R 2,000,000.00 R 30,000,000.00 R 28,000,000.00 R 0.00 Indoor Centre in Soweto which includes Olympic size R 0.00 R 60,000,000.00 R 40,000,000.00 R 20,000,000.00 swimming pool and gymnasium Klipspruit River greening throughout Soweto R 11,600,000.00 R 50,000,000.00 R 80,000,000.00 R 90,000,000.00 R 13,600,000.00 R 210,000,000.00 R 178,000,000.00 R 110,000,000.00 City Power 2010 Ellis Park precinct: Install 3rd transformer at R 19,270,000.00 R 4,000,000.00 R 0.00 R 0.00 Siemert Rd sub and refurbish/replace 11 kV breakers 2010 Ellis Park precinct: MV networks in Observatory R 0.00 R 6,000,000.00 R 2,000,000.00 R 0.00 area 2010 Ellis Park precinct: New distributors from Siemert R 1,850,000.00 R 0.00 R 0.00 R 0.00 rd to supply the proposed hotel and other developments 2010 Ellis Park precinct: Upgrade and extend the R 2,500,000.00 R 0.00 R 0.00 R 0.00 Fort/Doornfontein stndby distributors 2010 Ellis Park: Reconfigure bus bar and refurbish R 0.00 R 8,500,000.00 R 4,000,000.00 R 0.00 switchgear 2010 Nasrec area: New distributors from Crown sub R 9,000,000.00 R 10,000,000.00 R 0.00 R 0.00 station to the Nasrec area 2010 Training Venue: Orlando Stadium R 0.00 R 500,000.00 R 250,000.00 R 0.00 2010 Training Venue: Rabie Ridge R 500,000.00 R 250,000.00 R 0.00 R 0.00 2010 Training Venue: Rand Stadium R 500,000.00 R 250,000.00 R 0.00 R 0.00 2010 Training Venue: Ruimsig R 500,000.00 R 250,000.00 R 0.00 R 0.00 2010 Training Venue:Cecil Payne R 500,000.00 R 250,000.00 R 0.00 R 0.00 2010 Training Venues: Dobsonville R 0.00 R 0.00 R 0.00 R 0.00 BIN.Crown. Establish new 88/11 kV Sub Station R 40,000,000.00 R 9,750,000.00 R 0.00 R 0.00 Crown/Amalgam: Network Development R 0.00 R 0.00 R 0.00 R 0.00 Ellis Park Precinct upgrade electrical network R 5,000,000.00 R 15,000,000.00 R 12,500,000.00 R 0.00 Section 6: Capital Investment Framework
  • 29. 2010 PROJECTS COJ Funding Project Name 2007/2008 2008/2009 2009/2010 2010/2011 New depot to replace Siemert Road R 29,000,000.00 R 0.00 R 0.00 R 0.00 UG Observatory / Siemert Rd SSs Upgrade MV Cables R 0.00 R 0.00 R 0.00 R 0.00 UG Siemert Rd Depot Refurbish LV overhead lines R 0.00 R 0.00 R 0.00 R 0.00 UG. Siemert Road Depot: Master Plan: Upgrade MV & R 5,000,000.00 R 5,000,000.00 R 0.00 R 0.00 LV networks UG. Van Beek 11 kv conversion R 0.00 R 10,000,000.00 R 12,000,000.00 R 5,000,000.00 R 113,620,000.00 R 69,750,000.00 R 30,750,000.00 R 5,000,000.00 Johannesburg Development Agency (JDA) Greater Ellis Park (2010) R 40,000,000.00 R 85,000,000.00 R 90,000,000.00 R 34,191,000.00 Large Scale Mixed Use Nasrec (2010) R 40,000,000.00 R 300,000,000.00 R 50,000,000.00 R 50,000,000.00 R 80,000,000.00 R 385,000,000.00 R 140,000,000.00 R 84,191,000.00 Johannesburg Water (JW) Yeoville District:Upgrade water infrastructure Phase 1 R 2,000,000.00 R 10,000,000.00 R 10,000,000.00 R 0.00 Yeoville: Upgrade supply (2005-2008) R 2,800,000.00 R 0.00 R 0.00 R 0.00 R 4,800,000.00 R 10,000,000.00 R 10,000,000.00 R 0.00 Soc Development: Sports and Recreation (2010) Cecil Payne Stadium R 0.00 R 20,000,000.00 R 25,000,000.00 R 0.00 (2010) Rabie Ridge Stadium R 0.00 R 20,000,000.00 R 0.00 R 0.00 (2010) Ruimsig Stadium R 0.00 R 10,000,000.00 R 0.00 R 0.00 (2010)Dobsonville Stadium R 34,000,000.00 R 0.00 R 0.00 R 0.00 (2010)Orlando Stadium R 145,000,000.00 R 0.00 R 0.00 R 0.00 (2010)Rand Stadium R 34,000,000.00 R 0.00 R 0.00 R 0.00 R 213,000,000.00 R 50,000,000.00 R 25,000,000.00 R 0.00 Transportation Planning Division (TP) BRT Planning (2010) R 4,300,000.00 R 1,700,000.00 R 0.00 R 0.00 Ellis Park Stadium - SPTN and Precinct (2010) R 42,900,000.00 R 42,900,000.00 R 30,000,000.00 R 0.00 Inner City Distribution System(2010) R 20,000,000.00 R 10,000,000.00 R 0.00 R 0.00 Intelligent Transport System (2010) R 49,700,000.00 R 64,300,000.00 R 25,300,000.00 R 0.00 International Transit & Shopping Centre (2010) R 15,000,000.00 R 30,000,000.00 R 13,300,000.00 R 0.00 N-S Flagship Project Parktown to Sunninghill (2010) R 45,400,000.00 R 44,600,000.00 R 0.00 R 0.00 N-S Flagship Project Regina Mundi to Parktown(2010) R 25,700,000.00 R 25,700,000.00 R 0.00 R 0.00 Section 6: Capital Investment Framework
  • 30. 2010 PROJECTS COJ Funding Project Name 2007/2008 2008/2009 2009/2010 2010/2011 N17:Improved Access to Soweto / 2010 Soccer World R 14,000,000.00 R 0.00 R 0.00 R 0.00 Cup Nasrec SPTN and Precinct (2010) R 57,900,000.00 R 15,900,000.00 R 0.00 R 0.00 Training Venues - P&R/Pedestrian Facil (2010) R 4,700,000.00 R 6,900,000.00 R 1,300,000.00 R 0.00 Total R 279,600,000.00 R 242,000,000.00 R 69,900,000.00 R 0.00 6.7.9 Housing Programme Housing itself, R26m from JOSHCO, and R25,205,200m from ARP. The total for all Housing related projects in the 2007/2008 financial This programme has been identified to address the housing backlog year is R106,205,200, almost doubled that of the last financial year. in The City of Joburg through adequate capital budget allocation. In the 2006/ 2007 financial year, Housing had been allocated R Please note that the details of the housing programme are depicted 42,132,193 and the Johannesburg Social Housing Company in the sector plan. (JOSHCO) had been allocated R23,400,000, totalling R65,532,193 for the 2006/2007 housing year. This financial year sees R55m from Table 6.12 Detailed projects listing for the Housing Programme (Housing, ARP, and JOSHCO) 2007 - 2008 COJ Funding Project Name 2007/2008 Housing Tshepisong West – Water Supply Main and Reservoir R 955,000 Miriting (Kaalfontein X22) Local Distributor R 3,194,000 Tshepisong West Roads and Storm water R 1,048,000 Kanana Park (Thulamtwana): Construction of Bridges, Bulk Water Sewer, Roads & Storm water R 3,735,000 Baralink(Motsoaledi) R 3,257,000 Pennyville -Construction of Bridges, Bulk Water Sewer, Roads & Stormwater R 1,957,000 Matholesville R 4,891,000 Section 6: Capital Investment Framework
  • 31. COJ Funding Project Name 2007/2008 Doornkop (Green Village)-Construction of Bridges, Bulk Water Sewer, Roads & Storm water R 4,891,000 Zandspruit Phase: Construction of Bridges, Bulk Water Sewer, Roads & Storm water R 1,273,000 Princess Plot 61 Roads & Storm water, Bridge Culverts R 1,219,000 Lawley Ext.3 Roads, Storm water & Bridge Culverts R 1,780,000 Finetown East R 2,445,000 Finetown Proper R 2,445,000 Orange Farm Ext 9 R 2,445,000 Vlakfontein Proper Roads and Storm water R 1,665,000 City Deep (Hostel) R 7,618,000 Kliptown combined R 4,891,000 Sol Plaatjies – Construction of Bridges, Bulk Water Sewer, Roads & Storm water R 401,000 Citrine Court reconstruction of flats R 4,890,000 Total for Housing R 55,000,000 Alexandra Renewal Project (ARP) Far East Bank Ext 10 (Completion of 830 Housing Units) R 1,140,000 Storm water lines rehabilitation R 147,600 Bulk Storm water: Buccleugh Ext 2 (Frankenwald) R 433,200 Storm water: Highlands R 52,600 Bulk Water: Buccleugh Ext 2 (Frankenwald) R 259,600 Link Sewer network - Westlake site R 175,800 Bulk water infrastructure for Heartland site - 2400 units R 74,400 Frankenwald - Construction of Link Engineering Services R 4,800,000 Implementation of Electric Network: Far East Bank Ext 9 (K206) R 226,200 Bulk Electrical Supply: to Westlake site R 10,000 Link Water Supply: Far East Bank Ext 9 (K206) R 2,200 Highlands - Engineering Services R 1,800,000 Link Water Supply Linbro Park R 181,400 Erven 3359 and 3360 Far East bank (Completion of 520 Rental Units) R 3,415,000 Section 6: Capital Investment Framework
  • 32. COJ Funding Project Name 2007/2008 Bulk Road: Buccleugh Ext 2 (Frankenwald) R 365,200 Bulk Storm water- Mias Land site R 38,400 Linbro Park Land Acquisition R 4,200,000 Link Roads Linbro Park R 560,000 Bulk Electricity Supply to Buccleugh Ext 2 (Frankenwald) R 511,000 Bulk Storm water Waterlake R 8,200 Link Water Supply to Hartland Site R 147,200 Link Roads: Far East Bank ext 9 (K206) R 500,200 Bulk sewer to Westlake R 7,200 Bulk water - Westlake site R 4,800 Marlboro K206 Flats R 1,000,000 Lombardy West Flats R 1,000,000 M2 Nobuhle Hostel (Completion of 286 and commencement of 298 rooms R 4,145,000 Total for ARP R 78,500,000 Johannesburg Social Housing Company (JOSHCO) Orlando Ekhaya Staff Hostel Redevelopment R 2,000,000 Klipspruit Staff Hostel Redevelopment/conversion R 2,400,000 Randburg Medium Density Housing (Selkirk) R 2,300,000 Anthea Staff Hostel Redevelopment/Conversion R 2,400,000 City Deep 2 (Hostel Conversion) R 2,400,000 Lombardy East Medium Density Housing Project R 3,900,000 CITY DEEP 1 (Mixed Housing Development) R 4,600,000 Inner City (BG Alexandra) R 6,000,000 Total for JOSHCO R 26,000,000 Total for all Housing related projects R106,205,200 Section 6: Capital Investment Framework

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