SECTION 6 CAPITAL INVESTMENT FRAMEWORK (CIF)

Section 6: Capital Investment Framework

SECTION 6 CAPITAL INVESTMENT FRAMEWORK (CIF) 6.1 Introduction The Capital Investment Framework (CIF) leads to the actual implementation of the IDP and the SDF, realising the goals and the objectives of the City of Joburg via capital budget expenditure allocation to specific development projects. The CIF is an outcome of a joint initiative between the Development Planning Directorate, Finance and all service providers within the City (Municipal Owned Entities and core internal Departments). The CIF provides for strategic and effective implementation of the SDF’s development principles and strategies, which are in line with the City’s Growth and Development Strategy. The development strategies and investment programmes of the SDF provides the basis for the implementation and realisation for the development paradigms of GDS and the outcomes envisaged sector programmes. The SDF provides the development direction and spatial imperatives that will align City investment with the vision for the City and the Mayoral priorities. The CIF addresses and fulfils the realisation of the 6 identified Development Paradigms and the 12 Sector Areas of the Growth and Development Strategy and the IDP. The purpose of the CIF is to ensure the improvement and the management of the existing infrastructure by addressing the many developmental challenges within the City. The CIF indicates where Council should invest the capital budget for capital projects within a short to medium timeframe and translates a catalogue of “wish list” projects into a catalogue of strategies and projects collated from the Municipal Entities and Core Departments. The purpose of the CIF is therefore to:

• Improve service delivery through infrastructure and services that is planned, delivered, upgraded or managed in an objective and structured manner that support the City’s GDS vision and priorities;

• Prioritise projects and programmes through an information system;

• Direct future public and private investment • Strategically align capital budgets; and • Identify types of infrastructure and services planning and

implementation choices in a strategic manner that fulfils the City’s developmental priorities

6.2 Methodology employed CIMS (Capital Investment Management System) is utilised to determine priority projects for Capex allocation. CIMS was specifically developed and tailored to act as a single database for the Investment Programmes and all associated capital requests, delivering on the development paradigms of the CGDS. CIMS therefore functions as a prioritisation tool, reporting module on specific scenarios and project management / tracking module. The system provides a platform for the City to understand the citywide implications of investment decisions as it relates to the Strategic Agenda. The 2007/2008 capital budget represents a balanced sharing between the Programmes, giving equal prominence to the City’s historical backlogs, existing infrastructure and future growth. 6.3 Prioritisation The City has developed a model to log, prioritise and track projects on the annual Capital Expenditure (CapEx) budget. The MEs and core departments were required to submit lists of CapEx projects on an annual basis for evaluation and prioritisation. When priority projects


are implemented, tracking of the progress on these as well as regular report back and confirmation of progress is required. This section describes the methodology of prioritisation and how the various elements used within the model were derived and incorporated.

Although projects are often prioritised individually by the respective MEs and Divisions, the projects still need to be prioritised from a City perspective. The City perspective involves important strategic elements that may not be percieved as important from an MEs or internal division’s point of view. Strategic inputs need to be given to the decision makers to enable planning and suitable allocation of budgets and resources, to realise and affect the strategic direction provided by the City’s vision and current agendas.

A comprehensive model has been developed to address these various issues and to respond to the deficiencies that have been identified in the past. The model is accessible to all various City service providers via the internet. It also provides the ability to track and manage the progress on projects that have been approved for implementation.

The system that was developed for the City of Johannesburg is called the Capital Investment management Sytem (CIMS). The development of the system was influenced by a number of very important parameters. An understanding of the system’s users, the information required by the model and the magnitude of information that are required were key considerations.

Since a number of elements have to be covered by the model, the level of detail and the model’s sensitivity to these criteria were very important to establish from an early stage in the model’s development. The influence of the City’s annual programme and timelines were important as well as the level of feedback required by the City’s planners from time to time. New prioritisation elements are introduced annually by e.g. the mayoral priorities and these have to be taken into account in the prioritisation process. Typical, basic considerations taken into account by the model are:

• Project Locality in relation to priority development areas

• Financials • The projects contribution to City Programmes Identified in the

GDS and SDF • Mayoral Priorities • Planning and infrastructure Issues (e.g. Service Delivery,

Economic Growth, Social, etc.) • Technical Issues (legal obligations, technical requirements,

feasibility, etc.)

The purpose of the CIMS model is to ensure alignment of the capital investment programmes with the Mayoral priorities, the development paradigm and sector programmes of the GDS and the development direction of the SDF. It further provides an understanding of the development implications of certain investment decisions. 6.4 Overview of the City’s Capital Budget In order for the City to adequately and efficiently provide the necessary infrastructure to ensure that development is appropriate equitable and enhances the quality of life for all citizens, substantial capital expenditure is required. The CAPEX budget is funded from the tariffs, rates base and external funding (e.g. housing subsidy, Municipal Infrastructure Grant etc.). The Municipal Infrastructure Grant, (MIG), is utilised for the provision of bulk and basic services and is focused on providing these services to the poor. The specific allocation of MIG is detailed in the investment programmes. The broad breakdown of the respective line departments and Municipal Entities for the 2007/2008 financial year is depicted in Table 6.1 and Diagram 6.1 below: Table 6.1: Total City of Joburg Capex Budget Breakdown for all Municipal Entities and Core Departments, 2007/2008


CITY OF JOBURG CAPITAL BUDGET 2007/2008

Entity 2007/2008 Budget(R’000)

2007/2008 Percentage contribution to total Capex

2006/2007 Budget (R'000)

2006/2007 Percentage contribution to total Capex

Difference between 2006/2007 and 2007/2008 (R'000)

Office the Executive Mayor R 8,067 0.30% R 7,814 0.36% R 253 Revenue and Customer Relations Management

R 137,894 5.18%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% R 0 0.00% R 3,926 Arts, Culture and Heritage R 351 0.01% R 1,550 0.07% -R 1,199 Community Development: Social Services

R 4,030 0.15%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 and Recreation

R 216,518 8.14%R 115,000 5.29% R 101,518

Community Development: Other R 1,740 0.07% R 0 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 Department

R 765 0.03%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% R 0 0.00% R 330 Alexandra Renewal Project R 78,500 2.95% R 0 0.00% R 78,500 2010 R 13,600 0.51% R 0 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 R 0 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 R 0 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 Company

R 26,000 0.98%R 23,400 1.08% R 2,600

Johannesburg Tourism Company R 0 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 Market

R 0 0.00%R 54,065 2.48% -R 54,065

Johannesburg Development Agency

R 140,000 5.26%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


Diagram 6.1: 2006/2007 Budget

2007/2008 Budget (R'000)

0%

0%

Office the Executive Mayor0%

Finance1%

Economic development0%

Arts, Culture and Heritage0%

Community Development: Other0%

Housing2%

Health Services0%

Development Planning4%

Emergency Management Services0%

Transportation11%

Infrastructure and Services0%

Alexandra Renewal Project3%

20101%

City Power23%

Johannesburg Water25%

Pikitup Johannesburg0%

Johannesburg Roads Agency6%

Metrobus0%

Johannesburg City Parks0%

Johannesburg Zoo1%

Johannesburg Social and Housing Company1%

Johannesburg Tourism Company0%

Johannesburg Property Company2%

Metro Trading Company0%

Johannesburg Fresh Produce Market0%

Johannesburg Development Agency5%

Johannesburg Civic Theatre0%

Roodepoort Civic0%

Social Services0%

RMU

5%

Corporate Shared Services0%

Johannesburg Metropolitan Police Department0%

Community Development: Libraries0%

Sport&Rec8%

Environment0%


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:


Diagram 6.2: Capital Budget Allocation per Region

Capital Budget Allocated per region 2007/2008

Region A5%

Region B19%

Region C13%

Region D16%

Region E11%

Region F32%

Region G3%

City-wide1%


6.6 Allocation per all funding sources – Comparative 2006/2007 and 2007/2008

Table 6.3 and Diagram 6.3 below shows the allocation of funds to all core departments and entities, as per all funding sources:

Table 6.3: Overview of External Funds – Last financial year (2006/2007)

SOURCE OF FINANCE

Own Own Funding Capital Funding

Public Contributions

Loans Reserve Cash National Provincial CMIP/ Other

2006/07 TOTAL

Surpluses Grant Grant MIG BSC

Details

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


SOURCE OF FINANCE

Own Own Funding Capital Funding


Loans Reserve Cash National Provincial CMIP/ Other

2006/07 TOTAL

Surpluses Grant Grant MIG BSC

Details

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.


Diagram 6.3: Source of Funding – Other Grants

Source of Funding - Other Grants

COJ Funding74%

National Grant8%

Provincial Grant2%

MIG10%

Other 6%


Table 6.4 Overview of External Funds – Current financial year (2007/2008)

SOURCE OF FINANCE

COJ External Loan Details COJ Cash Surplus


National Provincial CMIP/ Other

Total Budget 2007/2008

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 2767Finance 15453 6800 8653Revenue and Customer Relations Management 137894 129000 8894Economic Development 3926 3400 526Corporate Shared Services 5127 3000 2127Development Planning 107784 100000 3284 4500Transportation 300804 300000 804Environment 3778 3000 778Infrastructure and Services 330 330Alexandra Renewal Programme 88500 78500 10000Emergency Management Services 5248 4700 548Johannesburg Metropolitan Police Department 765 765Arts, Culture and Heritage 351 351Community Development: Libraries 3450 3400 50Community Development: Social Services 4030 3700 330Community Development: Sport and Recreation 272518 215000 1518 56000Community Development: Other 1740 1740Health Services 4864 3000 1864Housing 92395 55000 1395 36000TOTAL CORE ADMINISTRATION 1070624 927400 35724 106500MUNICIPAL ENTITIES City Power 663000 474000 150000 39000Johannesburg Water 782000 672000 110000Pikitup Johannesburg 2886 2886


SOURCE OF FINANCE

COJ External Loan Details COJ Cash Surplus


National Provincial CMIP/ Other

Total Budget 2007/2008

Grant Grant MIG BSC

R 000 R 000 R 000 R 000 R 000 R 000 R 000 Johannesburg Roads Agency 225000 155000 70000Metrobus Johannesburg City Parks 20200 10200 10000Johannesburg 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 231886TOTAL 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.


Diagram 6.4: Source of Funding – other grants

Source of funding - other grants - 2007/2008

COJ External Loan83%

COJ Cash Surplus6%

CMIP/ MIG11%


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


Diagram 6.5: Sector Programme Capex Allocation

Sector Programme Capex Allocation 2007/2008

Economic development

2%

Housing4%

Infrastructure and basic services

51%

Environment1%

Spatial form and urban

management10%

Transportation18%

Health 0%

Safety0%

Financial sustainability

5%

Governance0%

Corporate and shared services

0%

Human and community

development9%


6.8 Investment Programmes The following 10 investment programmes have been developed to support the implementation of the CGDS and has influenced the outcome of capital budget allocations. The programmes are: 1. The Upgrading of Marginalised Areas Programme (UMAP) 2. The Regeneration Programme (RP) 3. Corridor Development Programme 4. Nodal Programme 5. Density programme 6. Strategic Transportation Interventions Programme (STIP) 7. Strategic Infrastructure Investment Plan (SIIP) 8. Sustainable Environment Programme (SEP) 9. 2010 Programme 10. Housing Programme These programmes provide a comprehensive solution and set of specific actions to address a number of developmental and infrastructure provision, upgrade and maintenance issues. The strategic developmental programmes will deliver benefits by integrating development and infrastructure proposals to ensure coordinated implementation. An Investment Programme does not

have to be confined to a spatial boundary, it can be issue or sector related. The Investment Programmes and associated projects have been prioritised in terms of their contribution and alignment to the Mayoral Priorities, Strategic Agenda, and the Sector Plans of the CGDS namely: Economic development, Human & community development, Housing, Infrastructure & basic services, Environment, Spatial form & urban management, Transportation, Health, Safety, Financial sustainability, Governance, and Corporate & shared services. The investment programmes are cross cutting to all the sector plans and integrate and align the capital implications from each of the Sector Plan programmes. The Investment Programmes are key to the City’s delivery strategy. The implementation of the above Programmes and projects will be the responsibility of the City’s MoEs and core Departments. Although responsibilities are sector specific, implementation will happen within an integrated framework. Please note that the total capex for the CIF programmes is greater than the City budget as there is an element of overlap on the programmes as some of the projects contribute to more than one investment programme.


Table 6.6 Total Capital Expenditure for Programmes 2007/2008

Programme Capital Spending 2007/2008 Capital Spending 2006/2007Difference in capex spend between the 2006/2007 and 2007/2008 financial years

The Upgrading of Marginalised Areas Programme (UMAP) R 462,682,099.00 R 553,605,205.00 -R 90,923,106.00

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 (STIP) R 455,000,000.00 R 321,515,000.00 R 133,485,000.00

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


Diagram 6.6: Capital Spending

Programmes - Capital Spending 2007/2008

The Upgrading of Marginalised

Areas Programme

(UMAP)6%

Nodal Programme

14%

Density Programme

23%Strategic

Transportation Interventions Programme

(STIP)5%

Corridor Development Programme

17%

Strategic Infrastructure Investment Programme

16%

Sustainable Environment Programme

0%

2010 Programme

8%

Housing Programme

1%The

Regeneration Programme (RP)

10%


6.7.1 The Upgrading of Marginalised Areas Programme (UMAP) This programme has been identified as one of the most critical aspects to bridge the divide between Joburg’s first and second economies, to ensure that balanced, equitable and shared growth has been attained by prioritising the development of marginalised areas and disadvantaged communities. The UMAP programme therefore seeks to provide critical infrastructure to marginalised areas by addressing the backlogs within the shortest possible time period.

The UMAP areas are Soweto, Diepsloot, Orange Farm and Greater Ivory Park, (including the areas of Kaalfontein and Rabie Ridge), and have been allocated a total capital budget of approximately R463m. The table below provides a breakdown of the capital budget allocated per marginalised area. From the four prioritised regions, Soweto gains the largest share (R411m) as it is a pivotal area for redevelopment, holding vast economic potential.

Table 6.7 Allocated Capital Budget per UMAP Area

Region 2007/2008 Allocated Capital Budget

2006/2007 Allocated Capital Budget

Percentage difference in 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%


Diagram 6.7: UMAP

UMAP 2007/2008 Allocated Capital Budget

Sow eto89%

Diepsloot7%

Orange Farm2%

Ivory Park2%


6.7.2 Regeneration Programme (RP) The key issue determining the allocation of capital in this Programme was the need to regenerate existing developed areas that have been and are in decline for a number of reasons, through: • Upgrading and maintenance of infrastructure • Pavement management • Stormwater management • Upgrading and maintenance of social, health and recreation

facilities

• Provision of new housing where possible • Provision of public transport facilities • Promote a safe environment • Protection of cultural amenities The City has committed more than R853m towards area regeneration projects in the Inner City and Alexandra. These funds address the upgrading of infrastructure, housing provision and the provision of social, health and recreation facilities.

Table 6.8 Allocated capital expenditure for the Regeneration Programme

Area

2007/2008 Allocated Capital Expenditure

2006/2007Allocated Capital Expenditure

Percentage difference in allocation between the financial years

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 development. These are areas developed around major movement networks. The Programme will incorporate intense residential and economic development that will be supported by the appropriate level of infrastructure and services provision. The programme will ensure that the identified corridor areas are planned and managed effectively through a number of key aspects:

• Higher densities are proposed and existing infrastructure and social amenities will have to be upgraded

• Implementation of the relevant SPTN routes • Ensuring mobility along important arterials

• Providing quality pedestrian facilities • Integrating with other transportation modes, especially rail Both the East West Development Corridor and the North South Development Corridor need extensive planning and management to optimise the development potential. The North-South Development Corridor has been allocated a capital budget of almost R656mand the East West Development Corridor a capital budget of almost R757m , totalling more than R1.4bn. It is interesting to note the incredibly vast capex expenditure increase between the 2006/2007 financial year on the Corridor Programme to the 2007/2008 financial year, showing the City’s serious intentions on restructuring the City to make it a more compact, competitive and dense one.


The main focus in the North South Corridor is respectively on electricity, water and roads; whilst the East West Corridor has respectively prioritised water, electricity and roads. However, both corridors have the same 3 main sectors as their priority and is strategically aimed at uplifting the core infrastructure of the City in order to attain a world-class African city status.

Please note that this programme does overlap with the Nodal and the Strategic Infrastructure Investment Programmes, and that there has therefore been a degree of double counting with projects, lending to a slightly higher total capital budget figure, below.

Table 6.9 Capex for the Corridor programme

Corridor

2007/2008 Total Capex Allocated to Corridor

2006/2007 Total Capex Allocated to Corridor

Percentage difference in allocation between the financial

years

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%


Diagram 6.8: Corridor Programme

Corridor Programme - 2007/2008 Total Capex Allocated

0%

North South Corridor46%

East West Corridor54%

6.7.4 The Nodal Development Programme The SDF has noted the key contribution that strong, viable nodes play as structuring elements within the City. This Programme supports the efficient management and growth of the City’s existing nodes through the following interventions:

• Upgrading and maintenance of infrastructure • Pavement management • Stormwater management • Upgrading and maintenance of social, health and recreation

facilities • Providing new housing where possible

• Providing of public transport facilities • Supporting the Gautrain Station development The nodes involve the following key areas: Sandton, Randburg, Stretford, City Deep, Baralink, Lenasia, Kliptown, Roodepoort, Nasrec, Fourways, and Ennerdale. The total budget of the nodal programme is R1,170,608,457. This is certainly a significant capex portion and once again shows the City’s strategic intent of densifiying and compacting the city to enable the provision of infrastructure, services, and economic development that will enhance the quality of life for all the City’s citizens.


6.7.5 Strategic Transportation Interventions Programme (STIP) The Strategic Transportation Interventions Programme (STIP) takes into account the City’s Bus Rapid Transit system (BRT) and endeavours to deliver on the SPTN. The SPTN consists of 325km of road networks along mobility spines and mobility roads that serve as a structuring element of the City in creating a more accessible City that presents greater economic and employment opportunities. The STIP is a culmination of a few of the City’s transport related entities, i.e. The Transportation Planning Division, the Metro Bus Municipal Entity, and the Johannesburg Roads Agency (JRA). Their contribution to the Strategic Transportation Interventions Programme (STIP) totals R455m. The main focus of the STIP revolves around the implementation of the Bus Rapid Transit system (BRT), its link with the Gautrain station developments and transport infrastructure for the 2010 World Cup. 6.7.6 Strategic Infrastructure Investment Programme (SIIP)

This programme includes the full spectrum of infrastructure and social amenities provision for strategic developmental interventions, such as Cosmo City, in the following areas:

• Infrastructure provision with relevant capacities • Provision of new social, health and recreation facilities • Procurement of land for open space provision as well as

services servitudes • Construction of new transportation linkages and facilities with the

focus on public transportation • New housing opportunities

• Public lighting • Resolving power outages • Addressing storm water drainage • Increasing the overall infrastructure capacity levels of the City to

meet rapid development

The capital budget allocated to this programme is almost R1.296bn. 6.7.7 Sustainable Environments Programme This programme is aimed at conserving the natural and built environment in the most sustainable manner within confined resources. The total capital budget allocated to the Sustainable Environments Programme is R13.2m, with R3m allocated towards key environmental priorities and R10.2m being allocated towards Johannesburg City Parks. 6.7.8 2010 Programme

The 2010 Programme is aimed at gearing the City for the 2010 World Cup in terms of its infrastructure requirements. The Municipal Entities and Core City Departments directly involved in the upgrading of infrastructure for 2010 are the COJ 2010 Department, City Power, Johannesburg Development Agency, Johannesburg Water, Social Development (Sports and Recreation), and Transportation. Their capital expenditure requirements for the 2007/2008 financial year is R704m. A basic breakdown of departmental and entity contributions is provided below, followed by a detailed list of departmental and entity projects.


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 (JDA)

R 80,000,000.00 R 385,000,000.00 R 84,191,000.00

Johannesburg Water (JW) R 4,800,000.00 R 10,000,000.00 R 0.00

Soc Development: Sports and Recreation

R 213,000,000.00 R 50,000,000.00 R 0.00

Transportation Planning Division (TP)

R 279,600,000.00 R 242,000,000.00 R 0.00

Total R 704,620,000.00 R 966,750,000.00 R 199,191,000.00


Diagram 6.9: 2010 Capital Expenditure per Entity 2007/2008

2010 Capital Expenditure per Entity - 2007/2008

2010 - Related Projects

2%City Power

16%


(JDA)11%

Johannesburg Water (JW)1%


30%


40%


Diagram 6.10: Capital Expenditure per Entity – 2008/2009


2010 - Related Projects

22%

City Power7%



5%


25%


(JDA)40%


Diagram 6.11: 2010 Capital Expenditure per Entity 2010/2011


2010 - Related Projects55%

City Power3%


(JDA)42%


0%


0%



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 0.00Ellis Park Stadium Development R 0.00 R 0.00 R 0.00 R 0.00Greening of undeveloped soccer fields in Soweto R 2,000,000.00 R 30,000,000.00 R 28,000,000.00 R 0.00Indoor Centre in Soweto which includes Olympic size swimming pool and gymnasium

R 0.00 R 60,000,000.00 R 40,000,000.00 R 20,000,000.00

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 Siemert Rd sub and refurbish/replace 11 kV breakers

R 19,270,000.00 R 4,000,000.00 R 0.00 R 0.00

2010 Ellis Park precinct: MV networks in Observatory area

R 0.00 R 6,000,000.00 R 2,000,000.00 R 0.00

2010 Ellis Park precinct: New distributors from Siemert rd to supply the proposed hotel and other developments

R 1,850,000.00 R 0.00 R 0.00 R 0.00

2010 Ellis Park precinct: Upgrade and extend the Fort/Doornfontein stndby distributors

R 2,500,000.00 R 0.00 R 0.00 R 0.00

2010 Ellis Park: Reconfigure bus bar and refurbish switchgear

R 0.00 R 8,500,000.00 R 4,000,000.00 R 0.00

2010 Nasrec area: New distributors from Crown sub station to the Nasrec area

R 9,000,000.00 R 10,000,000.00 R 0.00 R 0.00

2010 Training Venue: Orlando Stadium R 0.00 R 500,000.00 R 250,000.00 R 0.002010 Training Venue: Rabie Ridge R 500,000.00 R 250,000.00 R 0.00 R 0.002010 Training Venue: Rand Stadium R 500,000.00 R 250,000.00 R 0.00 R 0.002010 Training Venue: Ruimsig R 500,000.00 R 250,000.00 R 0.00 R 0.002010 Training Venue:Cecil Payne R 500,000.00 R 250,000.00 R 0.00 R 0.002010 Training Venues: Dobsonville R 0.00 R 0.00 R 0.00 R 0.00BIN.Crown. Establish new 88/11 kV Sub Station R 40,000,000.00 R 9,750,000.00 R 0.00 R 0.00Crown/Amalgam: Network Development R 0.00 R 0.00 R 0.00 R 0.00Ellis Park Precinct upgrade electrical network R 5,000,000.00 R 15,000,000.00 R 12,500,000.00 R 0.00



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 0.00UG Observatory / Siemert Rd SSs Upgrade MV Cables R 0.00 R 0.00 R 0.00 R 0.00UG Siemert Rd Depot Refurbish LV overhead lines R 0.00 R 0.00 R 0.00 R 0.00UG. Siemert Road Depot: Master Plan: Upgrade MV & LV networks

R 5,000,000.00 R 5,000,000.00 R 0.00 R 0.00

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 34,191,000.00Large 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 0.00Yeoville: 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 0.00Ellis Park Stadium - SPTN and Precinct (2010) R 42,900,000.00 R 42,900,000.00 R 30,000,000.00 R 0.00Inner City Distribution System(2010) R 20,000,000.00 R 10,000,000.00 R 0.00 R 0.00Intelligent Transport System (2010) R 49,700,000.00 R 64,300,000.00 R 25,300,000.00 R 0.00International Transit & Shopping Centre (2010) R 15,000,000.00 R 30,000,000.00 R 13,300,000.00 R 0.00N-S Flagship Project Parktown to Sunninghill (2010) R 45,400,000.00 R 44,600,000.00 R 0.00 R 0.00N-S Flagship Project Regina Mundi to Parktown(2010) R 25,700,000.00 R 25,700,000.00 R 0.00 R 0.00



Project Name 2007/2008 2008/2009 2009/2010 2010/2011 N17:Improved Access to Soweto / 2010 Soccer World Cup

R 14,000,000.00 R 0.00 R 0.00 R 0.00

Nasrec SPTN and Precinct (2010) R 57,900,000.00 R 15,900,000.00 R 0.00 R 0.00Training 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 This programme has been identified to address the housing backlog in The City of Joburg through adequate capital budget allocation. In the 2006/ 2007 financial year, Housing had been allocated R 42,132,193 and the Johannesburg Social Housing Company (JOSHCO) had been allocated R23,400,000, totalling R65,532,193 for the 2006/2007 housing year. This financial year sees R55m from

Housing itself, R26m from JOSHCO, and R25,205,200m from ARP. The total for all Housing related projects in the 2007/2008 financial year is R106,205,200, almost doubled that of the last financial year. Please note that the details of the housing programme are depicted in the sector plan.

Table 6.12 Detailed projects listing for the Housing Programme (Housing, ARP, and JOSHCO) 2007 - 2008

COJ FundingProject Name

2007/2008Housing

Tshepisong West – Water Supply Main and Reservoir R 955,000

Miriting (Kaalfontein X22) Local Distributor R 3,194,000Tshepisong 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



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 1,219,000Lawley Ext.3 Roads, Storm water & Bridge Culverts R 1,780,000Finetown East R 2,445,000Finetown Proper R 2,445,000Orange Farm Ext 9 R 2,445,000Vlakfontein Proper Roads and Storm water R 1,665,000City Deep (Hostel) R 7,618,000Kliptown 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 4,890,000Total for Housing R 55,000,000

Alexandra Renewal Project (ARP) Far East Bank Ext 10 (Completion of 830 Housing Units) R 1,140,000Storm water lines rehabilitation R 147,600Bulk Storm water: Buccleugh Ext 2 (Frankenwald) R 433,200Storm water: Highlands R 52,600Bulk Water: Buccleugh Ext 2 (Frankenwald) R 259,600Link Sewer network - Westlake site R 175,800Bulk water infrastructure for Heartland site - 2400 units R 74,400Frankenwald - Construction of Link Engineering Services R 4,800,000Implementation of Electric Network: Far East Bank Ext 9 (K206) R 226,200Bulk Electrical Supply: to Westlake site R 10,000Link Water Supply: Far East Bank Ext 9 (K206) R 2,200Highlands - Engineering Services R 1,800,000Link Water Supply Linbro Park R 181,400Erven 3359 and 3360 Far East bank (Completion of 520 Rental Units) R 3,415,000



2007/2008Bulk Road: Buccleugh Ext 2 (Frankenwald) R 365,200Bulk Storm water- Mias Land site R 38,400Linbro Park Land Acquisition R 4,200,000Link Roads Linbro Park R 560,000Bulk Electricity Supply to Buccleugh Ext 2 (Frankenwald) R 511,000Bulk Storm water Waterlake R 8,200Link Water Supply to Hartland Site R 147,200Link Roads: Far East Bank ext 9 (K206) R 500,200Bulk sewer to Westlake R 7,200Bulk water - Westlake site R 4,800Marlboro K206 Flats R 1,000,000Lombardy West Flats R 1,000,000M2 Nobuhle Hostel (Completion of 286 and commencement of 298 rooms R 4,145,000Total for ARP R 78,500,000

Johannesburg Social Housing Company (JOSHCO) Orlando Ekhaya Staff Hostel Redevelopment R 2,000,000Klipspruit Staff Hostel Redevelopment/conversion R 2,400,000Randburg Medium Density Housing (Selkirk) R 2,300,000Anthea Staff Hostel Redevelopment/Conversion R 2,400,000City Deep 2 (Hostel Conversion) R 2,400,000Lombardy East Medium Density Housing Project R 3,900,000CITY DEEP 1 (Mixed Housing Development) R 4,600,000Inner City (BG Alexandra) R 6,000,000Total for JOSHCO R 26,000,000Total for all Housing related projects R106,205,200

Documents

SECTION 6 CAPITAL INVESTMENT FRAMEWORK (CIF)