A Moment of Reflection

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A Moment of Reflection
2
Overview of the N2 Gateway Business Plan
Alternative Futures, Alternative Possibilities
and Alternative Realities through Institutional
Dialogue

• Media Launch of the N2 Gateway Project
• 14 February 2005
• The tragic illusion of our times, with the
  unrestrained gamble on technology and the free
  movement of capital, decreed the irrelevance of
  the debate on development. To reverse this error,
  we must now affirm the appropriateness of using
  public funds for the rebuilding of society and
  solidarity and the promotion of growth. It is, in
  many cases, a matter of reviving the foundations
  of community life, such as the right to food,
  childhood, old age and housing, which are forms
  of affirmative action in our globalised worldThe
  path that is needed is not the existing one, but
  the one we are building we must broaden and
  deepen it. We live in an age of unparalleled
  human possibilities. None of the excuses given in
  the past for the failure to realise great hopes
  has any technological or financial justification.
  And wherever an obstacle emerges, dialogue can be
  started to restore the human condition to the
  course of history (Luiz Inacio da Silva,
  President of Brazil January 2005)
• N2 Gateway Alternative Futures, Alternative
  Possibilities and Alternative Realities through
  Institutional Dialogue

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AlternativesFortitude, Change and Transformation

• Designing a dream city is easy rebuilding a
  living one takes imaginationThe city is not a
  problem that can be solved. It is the eternal
  impossible question of how we as strangers can
  live together. Rebuilding a living city a city
  which jumbles together multiple and conflicting
  differences therefore requires less a utopian
  plan than a poetics of political imagination
  (Donald, 1997)
• Because the city is a problem that cannot be
  solved - the eternal question - there are no
  emancipatory urban peaks to climb and scale. A
  progressive urban future and politics is the very
  act of climbing, daily tenaciously, audaciously
  and incessantly. Once again, Lulas words are
  instructive Each day, even if we advance a
  centimetre, we are going forward - without any
  miracles, without breaking away from our
  international commitments, simply doing what
  needs to be done
• N2 Project Alternatives through Small Steps and
  Learning by Doing

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The Poetics of the Alternative Imagination
Confluence of Forces the Projects Rationale

• Second Decade of Freedom Moving our country and
  society towards the eradication of poverty and
  underdevelopment by expanding socio-material
  citizenship, enhancing the process of social
  cohesion, and building social solidarity
• Central Focus on the growth and development of
  the First Economy and responding to the
  challenges confronting the Second Economy (the
  structural manifestation of poverty,
  underdevelopment and marginalisation)
• Commitment to build sustainable human settlements
  that restores the dignity and citizenship of the
  poor and is responsive to their coping and
  livelihood strategies
• A critical pillar of restoring dignity and
  citizenship reducing vulnerability ameliorating
  poverty addressing the shelter needs of our
  large floating population and, enhancing
  safety and security is the focus on informal
  settlements

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Introduction

• Sustainable human settlement development is core
  to the realisation of the objectives of the
  Second Decade of Democracy it is the material
  foundation of the alternative we strive towards
• N2 Gateway Project is a crucial pillar of the
  realigned housing strategy within which arresting
  the growth of informal settlements and upgrading
  is central to the realisation of the aims, goals
  and objectives of the Comprehensive Housing Plan
  (CHP)
• Architects of the N2 Project perceive informal
  settlements as not merely a housing problem
  it is a manifestation of structural social
  change, necessitating creative and innovative
  intervention on institutional, programmatic,
  financial and management levels
• The N2 Project attempts to build on the
  initiatives of this government to restore
  stability to property markets and ensure that its
  benefits are equitably distributed through the
  development of alternative housing
  options/choices (including social housing,
  hostels upgrading, phased upgrading of old stock)
  that trigger broader economic opportunities in
  the city
• The net effect of this project intervention would
  be to renegotiate the targeting of private sector
  investment in the city in line with the
  commitments of the Financial Sector Charter and
  removing the disincentives contributing to
  redlining

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Introduction

• Hallmark of the present project derives from
  robust institutional infrastructure underpinned
  by a partnership between three spheres of
  government, welded together to achieving
  sustainable human settlement outcomes that
  immediately arrests the spatial marginalisation
  of the poor
• Sustainable human settlement development includes
  wealth creation, poverty alleviation and equity -
  citizens living in a safe and secure environment
  and have adequate access to economic
  opportunities, a mix of safe and secure housing
  and tenure types, reliable and affordable basic
  services, educational, entertainment and cultural
  activities, and health, welfare and police
  services
• As pilot, the Project serves to illustrate how
  the three spheres together pioneer a new approach
  to integrated and sustainable human settlements
  (higher densities, socio-spatial integration,
  compaction) (re)activation of primary and
  secondary markets) through learning by doing

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The Context

• Housing Backlog 220 000, 240 000 245 000, (261
  000)
• Waiting List Grows by 25 000, 16 000 (new
  households moving into province) (p.a.)
• Number in Informal Settlements 84 000, 100 000,
  142 983
• Present Housing Delivery Rate 11 000, 10 000
  (p.a.)
• Backlog Growing 8 000, 15 000 (p.a.)
• Stats extracted from various documents (IDP,
  Court Papers, Census)

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Need Depth

• Existing Backlog 142 983 households
• Backlog Grows (con) 15 000 p.a.
• Assumption - 40 settle in informal settlements
• Delivery 19 167 (sites allocated to IS current)
  and projected unit delivery (4001 in 3/4 10 979
  in 4/5 4773 in 5/6 4373 in 6/7)
• In 2006/7 backlog will be 168 610 and will have
  increased by 30 606 households (138 004 in 2/3)
• Provisional Estimate Cost for Servicing Informal
  Settlements (85 000 dwellings) is R99.1m in 3/4
  less than 1 of total budget to service needs of
  465 000 and 5.8 of current R1.7bn directed at
  poor areas
• Budget rises to R248m in 6/7 but is still based
  on servicing needs of 85 000 dwellings when the
  backlog is 168 610
• Also critical Citys entire budget for SISP is
  dedicated to capital costs and there is no
  operational budget to maintain services installed

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Need and Depth

• Clearly, there is an urgent need for a new
  initiative that will simultaneously
• Mobilise hitherto under-utilised capacity and
  build new institutional capacity
• Engineer modes of urban development and informal
  settlement upgrading with a particular emphasis
  on integrating the city, improving equity,
  restructuring the spatial economy by deepening
  access of the poor to the benefits of the city,
  programmatic alignment with other key initiatives
  (including urban renewal, upgrading of existing
  stock through the tenure option programme (TOPs),
  effecting systemic reforms in the financing and
  operational infrastructure of/for the
  metropolitan spatial economy
• Mobilise additional funding mechanisms necessary
  to accelerate the pace of development and support
  compact, high density settlements

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Targeting of the Pilot Project

• Given its Pilot nature (showcase and spearhead
  new CHP), project design seeks to secure an
  appropriate balance between three competing
  objectives
• Sufficient scope to allow concentrated focus of
  resources necessary to move to rapid
  implementation
• Allow scope to develop innovative and replicable
  solutions to complex and fluid settlement
  dynamics
• Intervene at a sufficient scale to catalyse and
  trigger the envisaged urban-shelter developmental
  outcomes detailed in the CHP, the Provincial
  Growth and Development Strategy, the Citys IDP,
  Citys Housing Plan as articulated in the
  Presidents Opening Address to Parliament (11
  February)

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Socio-Economic Targeting

• This project is targeted at developing practical
  models for accelerating development and
  socio-economic support for the poorest. The
  targeted constituencies are
• Household resident in informal settlements
• Households accommodated in backyard shacks
  adjacent to informal settlements
• The core projects will interface with other
  projects in the city thereby generating
  multiplier and knock-on effects in other parts of
  the city
• Given the importance of restorative justice and
  national reconciliation, the project also
  includes District Six

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Spatial Targeting

• Given the above, the selection of informal
  settlements targeted is guided by the following
  criteria
• High density settlements located centrally within
  the metropolitan area
• Settlements are well located relative to regional
  movement systems and economic opportunities
• Neighbourhoods are highly visible income and
  shelter poverty is acute service levels are poor
  (although improving) residents lives are under
  constant threat (fires, disease, crime), subject
  to flooding, and significant parts of settled
  land are unsuitable for habitation

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Spatial Targeting and Selected Settlements

• Whilst the project is presently geographically
  limited to the informal settlements located
  adjacent to the N2 between the Bhunga Avenue
  Interchange near Langa and Boystown in Crossroads
  and also includes District Six, it is meant to
  bolster and complement existing and planned
  metropolitan shelter programmes and projects, and
  significantly boost the delivery rate of housing
  production. The lessons gleaned from the pilot
  can serve to enhance the developmental
  performance of other City concurrent and planned
  
• 15 504 households living in targeted settlements
  and with inclusion of backyarders (6141) 21645
• Of these households 8766 households will be
  accommodated in- situ to which will be added 30
  from backyards. The remainder are to be
  relocated to greenfields

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Project Purpose

• Purpose of the N2 Gateway is to comprehensively
  address the housing and development needs of
  communities located in the targeted areas in such
  a way that individual and household livelihoods
  are enhanced people are housed in habitable,
  affordable and sustainable housing the city is
  improved through urban renewal, regeneration, and
  socio-economic development and, the
  institutional capacity necessary to address wider
  upgrading needs is assembled. This project
  triggers and complements other initiatives at
  restructuring the spatial economy of the city so
  that its benefits are more equitably distributed

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Contribution of Project to the Western Cape and
the CHP

• Significant dent on housing backlog (7 of
  Western Cape and 15 of inadequately housed
  citizens in City)
• Project targets a significant component of the
  most vulnerable in the city and province,
  residing in living environments that violates
  their dignity and denies citizenship
• Strives to bolster livelihood and coping
  strategies builds the assets of the poor
  frontal assault on shelter poverty improves and
  enhances urban efficiency and productivity
  through urban renewal/regeneration, socio-spatial
  integration, and activation of primary and
  secondary housing markets builds the
  social-public economy
• Makes a substantial contribution and complements
  other socio-economic programme/project
  interventions so as to fulfil the objectives of
  Citys housing plan, IDP, targets of the
  Provincial Housing Development Plan, CHP (UISP
  and Social Housing), and integration of all
  informal areas and other spaces of confinement
  (old and new housing estates) into the Citys
  fabric

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Project Outcomes Key Result Areas

• Result Area 1 Poverty and vulnerability of
  residents of target area is reduced and their
  levels of socio-economic empowerment is enhanced
• Result Area 2 Performance and sustainability of
  the metropolitan system is enhanced
• Result Area 3 Capacity of national, provincial
  and local government to execute settlement
  upgrading at scale is enhanced

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Project Outcome Key Result Area 1

• Result Area 1 Poverty and vulnerability of
  residents of target area is reduced and their
  levels of socio-economic empowerment is enhanced
• Residents housed in habitable, safe and
  affordable housing with secure tenure and access
  to affordable and reliable basic services
• Safe and secure public environment with access to
  good quality educational, transportation,
  recreational and cultural facilities
• Individual and household livelihood and coping
  strategies are strengthened
• Economic circumstances of residents are enhanced
  through improved positioning in the city labour
  market and increased rates of enterprise
  formation and survival

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Project Outcome Key Result Area 2

• Result Area 2 Performance and sustainability of
  the metropolitan system is enhanced
• Public transport and service efficiency and
  equity is improved through compact development
  and integration of areas into the metropolitan
  movement system
• Primary and secondary markets are activated in
  targeted areas and surrounding areas
• Industrial and commercial development in
  proximate locations is promoted
• Water and energy efficiency is secured through
  the application of appropriate technologies
• Number of households living in informal housing
  is reduced
• Environmentally vulnerable areas have been
  cleared and rehabilitated

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Project Outcome Key Result Area 3

• Result Area 3 The capacity of national,
  provincial and local government to execute
  settlement upgrading at scale is enhanced
• National, provincial and local policy on informal
  settlement upgrading and integrated settlement
  development is tested and lessons incorporated
  into the policy review process
• Working models for inter-governmental
  co-operation and the mobilisation of private and
  popular sectors are developed and disseminated
• Skills, technologies, systems and procedures
  appropriate to settlement upgrading at scale have
  been developed and extended

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Project Design/Implementation StrategyProject
Approach

• The envisaged project approach consists of a
  combination of 5 basic steps
• Effecting immediate improvement in the quality of
  peoples lives through provision of basic health
  and safety services to all households in targeted
  areas (Citys SISP)
• Upgrading of areas within existing settlements
  deemed suitable for human habitation by means of
  in-situ and roll-over upgrading so as not to
  disrupt (minimise disruption of) fragile
  socio-economic fabric (Joe Slovo, New Rest,
  Boystown, portions of Kanana and Lusaka)
• Re-establishment of households displaced by
  de-densification and the clearance of
  uninhabitable land in new greenfield developments
  in relative proximity
• Where absolutely unavoidable, the temporary
  accommodation of households displaced by
  upgrading in transit accommodation
• Once vacated, the land not suited for housing
  development is to be developed for community uses
  and protected against re-occupation (Barcelona,
  Europe, Kanana)

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Proposed Brownfield and Greenfield Development

• Guiding Principles
• Minimal relocation
• Focus on state owned land
• Preferably no environmental constraints and
  other encumbrances
• Availability of bulk services
• Suitable for fast track development
• Focus on large tracks of land (gt10 ha)

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Infrastructure and Services Required

• Electricity With the exception of Epping, medium
  voltage reticulation is needed which includes
  building of major substations and primary cable
  rings
• Waste Water Greenfield areas require major
  upgrading of waste water treatment works long
  lead time for the construction of this
  infrastructure
• Water Water treatment and bulk supply capacity
  is available to all of the listed greenfield and
  brownfield sites as well as District Six
• Solid Waste New regional transfer station or
  upgrading of existing installations required to
  serve greenfield sites
• Transport Infrastructure Public transport
  facilities which are to include transport
  interchanges will be required for all greenfield
  sites
• Community Facilities Estimated cost of
  construction in respect of new facilities and
  upgrading of new facilities amounts to
  R105,100,000. The annual operating costs of new
  facilities is R2,630,000 ensuring that they are
  adequately staffed is R8,049,026 annual
  maintenance is R3,400,000 (59-60- facilities
  required per area)

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Implementation Approach

• Approach in line with short term financial flows
  with an eye on sustainable human settlement
  formation
• Area-based approach wherein implementation
  consortia work in teams guided and directed by
  officials from three spheres
• Bridging finance to ensure implementation at
  scale and within reasonable time line

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Functional Area Work Streams

• Given the scale and complexity of project and the
  need to carefully manage an array of risks,
  implementation is to be managed through work
  streams divided into ten (1) functional
  areas/sectors
• These are Statutory Planning Urban Planning and
  Precinct Layout Economic Development Housing
  Land Assembly Economic Development
  Participation and Communication Community
  Services Engineering Services Transportation
  District Six
• Each functional area/sector details a purpose
  deliverables, current status, statement of work
  required, and risks and abatement strategies

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Statutory Planning

• Deliverable Appropriately zoned and subdivided
  greenfield and brownfield sites within
  established townships

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Urban Planning and Precinct Layout

• Deliverable Broad spatial frameworks for each
  of the identified land parcels starting with
  Phase One set up and appoint project design
  teams for each site whose primary responsibility
  is settlement design (layout) and design/refine
  unit

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Housing

• Deliverable The development and allocation of
  22 700 dwelling units and securing of all
  requirements for their maintenance and operation

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Land Assembly

• Deliverable Identification and rapid assembly
  of land that is in within legal parameters and
  statutory processes

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Engineering Services

• Deliverable Regional infrastructure, earthworks,
  roads, stormwater drainage, sewerage, potable
  water, solid waste services, electrical
  reticulation, street lighting

30
Community Services

• Deliverable Social infrastructure and services,
  emergency services and social development
  programmes

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Transport

• Deliverable A safe, functional and dignified
  movement system catering for interactive social
  and movement needs of residents, with an emphasis
  on non-motorised and public transport and to link
  communities to wider city opportunities

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Economic Development

• Deliverable An array of LED programmes and
  projects formulated, funded and in implementation

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Participation and Communication

• Deliverable All involved and affected
  communities have regular access to accurate
  information about the project are positively
  involved in decision making and monitoring
  engaged in the process of acquiring life skills
  to exploit new opportunities

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District Six

• Deliverable 4000 housing units (500 for N2)
  Development Framework and precinct plans new
  zoning scheme and design guideline public space
  interventions

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Institutional Framework and Governance

• Project is driven by a partnership between three
  spheres of government
• The City of Cape Town is the main implementation
  agency of the project. Provincial and national
  Departments of Housing provide support to the
  initiative via (inter alia) facilitating access
  to land unlocking and mobilising funding
  streamlining regulations and fast tracking
  applications and, fostering an enabling and
  empowering implementation environment. A working
  Memorandum of Understanding/Operational Agreement
  enshrines this division of labour and
  responsibilities and identifies the critical
  success factors
• The Business Plan was generated by the collective
  input of six working groups (Finance, Economic
  Development, Land, Housing Typologies,
  Communication and Participation and Community
  Facilities), comprising high ranking officials
  from various departments in provincial and local
  government
• Project oversight and co-ordination is directed
  by an Intergovernmental Steering Committee
  constituted by senior officials from the
  municipality, provincial and national Departments
  of Housing
• The respective officials of the Task Team report
  directly to an Executive Committee comprising the
  Mayor, MEC and Minister of Housing. Their links
  to these politicians (who are in regular contact
  with one another) enables rapid resolution of
  problems and speedy decision making.

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Funding and Financing

• Magnitude of the N2 gateway project coupled with
  the vertical (inter governmental) and horizontal
  (intra governmental) financial complexities have
  led to the development of a financing program
  impacting on all spheres of government and
  requires significant financial innovation/flexibil
  ity (especially the various existing housing
  programs) when addressing the funding structures
  of the project.
• In this regard and acknowledging the timeframes,
  the financial resources incorporated into the
  high level budget have focussed specifically on
  immediately accessible and realisable sources of
  funding whilst noting the flexible approach
  required by the custodians of these financial
  resources
• The realisation of these budget programs is
  solely based on the targeted commitments being
  received from the primary funders, inter alia,
  the National Department of Housing (NDOH), the
  Department of Provincial and Local Government
  (DPLG) and the City of Cape Town (CCT).
• Key informants of the financing program proposed
  have, inter alia, included addressing equity
  across the City, long term affordability to the
  target communities, replicability and sustainable
  environments

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Monitoring and Evaluation

• As the project commences, a programme (and
  associated multi-stakeholder institutional
  infrastructure) will be installed to monitor and
  evaluate the Project on an ongoing basis so as to
  determine the impact of the project on residents,
  neighbouring communities, wider economic
  metropolitan functioning (labour and property
  market)
• Monitoring and evaluation will comprise the
  collection of quantitative and qualitative
  information
• Proposal that the monitoring and evaluation
  processes be undertaken on a centralised basis
  comprising a desk top study of all existing data
  on N2 areas a questionnaire that obtains
  baseline data from residents (deepening the
  findings of the enumeration study) measurement
  of indices such as crime statistics, pollution
  levels, aerial photographs etc annual progress
  surveys undertaken after that in the first 3
  months of every year (utilising methodology and
  information collected in terms of the baseline
  survey above
• In addition to the above a data base and
  management system will be developed for all
  research and methods formulated to integrate the
  data collected. This should include a GIS system.