Part Three Sustainable Communities Initiative Programme Background to
Part Three: Sustainable Communities Initiative & Programme
Background to the SC Initiative • Problem Statement – Localities with numerous socio-economic problems – Good policies and funding available, but few if any South African examples of ‘best practice’ at local level • Opportunity – National Strategy for Sustainable Development – Strong Government and partner emphasis on delivery of economic and social development at local level – Championed by DBSA Governor – Mr. Trevor Manuel, DBSA Chairman Jay Naidoo and DBSA MD, Mandla Gantsho – Initiative at the heart of DBSA’s vision and mission – Create synergy between local and national/provincial development activists
Vision of the SC Initiative • Cohesive communities that live in places where life can take place in a positive way • People live, work and play in an environment of human dignity and opportunity
Core Underlying Principles of SC • • • A sense of justice A sense of place A sense of history A sense of limits A sense of craft A sense of nature
Tourism and Farming (game, fish and urban agriculture) • Partnerships between private sector and communities, (Unilever) • Community owned facilities • Supported by Government and municipal structures • DBSA funds capacity building and support • Facilities run and managed on commercial basis
Role of DBSA in the Initiative • • Create examples/footprints of ‘Sustainable Communities’ Facilitate and unblock obstructions Provide dedicated technical assistance Knowledge management and sharing – ‘best practice’ Resource mobilisation and integration Provide bridging finance for non-bankable projects Leave municipality with capacity for further roll-out
Progress with the Initiative • • Six pilot areas (Motherwell, Ngangelizwe, Grabouw, Phalaborwa, Lydenburg, Diepsloot) Ongoing stakeholder interaction Strategic frameworks prepared for each – Strategic scan and identification of challenges – Strategic direction – Implementation plan – Resource mobilisation Draft business plans prepared MOUs signed with municipalities Training of staff and other stakeholders Next steps – Finalise business plans – Implementation to commence in July 2006
Six pilot areas: – Ba-Phalaborwa – Diepsloot – Grabouw – Motherwell – Ngangelizwe – Thaba-Cheuw Pilots were selected to reflect the range of challenges facing the South African Community
Tentative Budget (million Rand) Pilot TA Grant Preparation Assistance Capital Investment Motherwell 2 14 540 Ngangelizwe 2 4 320 Total 4 18 860
Part Four: Local Investment Agency (Wild Coast)
LIA Background • Joint DBSA / Old Mutual initiative – R 8 M for capitalizing the LIA Company – R 500 M as investment facility • Catalyzing and crowding in commercial investment in povertystricken areas with economic potential • Facilitating project development and investment – – Overcome investment constraints Leverage resources into viable commercial projects Creating a link between development and commercial ventures Accelerated economic growth and job creation • Wild Coast as first phase
The Wild Coast LIA Company • • Mission: Project development / preparation / packaging Focus: Private, commercially sound ventures and PPPs Sectors: All economic sectors subject to triple bottom line Lifespan: 10 years Separate Investment Facility: R 500 Million Linkage to other funding and support from DBSA and OM Synergy and alignment with government policies / programmes Collaboration with other role players
Institutional Arrangements LIA Company OM DBSA 50% LIA LTD Co BOARD OF DIRECTORS
LIA: Progress • Approval and support from: • DBSA / OM Boards • Minister of Finance • Eastern Cape stakeholders consulted • Shareholders agreement signed • Company registered • Vijay Makanjee appointed – office based in East London • Spatial Investment Framework prepared • Coffee Bay conceptualised as a Sustainable Tourism Village • Formal Launch – 23 May 2006
Wild Coast LIA Spatial Investment Framework
Possible Investment Nodes – Mthatha: commercial, services, retail, value add manufacturing – Port St Johns: tourism facilities, accommodation, retail – Coffee Bay: tourism facilities and accommodation – Key Mouth: tourism facilities, high order residential
Coffee Bay Concept Urban Design ……………… RESTAURANT AND BEACHFRONT BAR NEW COFFEE BAY HOTEL TREE-TOP BISTRO & BAR WATERFRONT BOTH SIDES OF INLET RESORT HOUSING OCEAN VIEW HOTEL BEACH RESORT ACCOMMODATION EXTENDED AND REFURBISHED SCHOOL AGRICULTURAL FIELDS URBAN RENEWAL AND NEW HOUSING NEW URBAN EXTENSION ± 40 ERVEN Copyright: dmp COMMERCIAL CENTRE
Investment Opportunities Property Development – Coffee Bay Concept Urban Design Plan • 40 -Room Boutique Hotel (redevelopment of Coffee Bay Hotel). • Tree-top bistro and bar associated with hotel. • Approximately 40 New Residential Locations. • Expanded school. • Commercial centre at entrance to town including a service station, convenience store and general dealer. • Caravan Park/Eco-lodges upgrade. • Beachfront restaurant and bar. • Waterfront development on both sides of inlet, including bistros, sundowner decks, approximately 60 Resort Units and backpackers resort accommodation.
Linkage Projects • • • Hiking trails Agriculture Laundry Fishing trips Restaurants Cultural events Security services Maintenance services Gardening services
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