1. ETHEKWINI METRO BEPP REVIEW Day 1 of Mid-Year Budget & BEPP Review BEPP 2015/16 – 2017/18 26 February 2015

2. OBJECTIVE OF BEPP REVIEW Objective engage in an institutionalised process enhance intergovernmental alignment Organised platform for BE support 2

3. Update… Guidelines for 2015/16 – 2017/18 Metros reviewed the BEPP process in July 2014 Pipeline of Catalytic projects in integration zones within UNS Upgrading of Informal Settlements Draft 2015/16 BEPP Refinement and consolidation of elements of 2014/15 BEPP Circulation of comments Sector specific inputs Stakeholder engagement 3

4. MTBPS October 2014 – Unprecedented priority on the Role of Cities reshape South Africa’s urban environment through integrated spatial planning; investment in dynamic city development; integrated housing and transport programmes; support for business activity and job creation Different approach to local government infrastructure financing. Incentives to encourage large urban municipalities to promote more compact, efficient and equitable cities Planning will focus on developing mixed-use precincts that can help to catalyse economic activity, and on upgrading informal settlements Support will be provided to municipalities for revenue collection and management of infrastructure financed from both own revenue and grants. Reforms to grants will improve the uptake of available resources for social infrastructure. 4

5. MTBPS October 2014 – Fiscal Reform Recognises need for massive investments in urban infrastructure Highlights the importance of cities to expand own direct contributions to investment programmes Recognises that national grant programmes should provide flexibility to cities to design locally appropriate solutions Accelerates the process of fiscal reforms Promote partnerships (in infrastructure delivery) with the private sector and SoE’s; Provide incentives for cities to restructure the urban spatial form; Rationalize the number of grants, while ensuring that well-performing municipalities have greater discretion over grant utilization; Commits government to a new approach to LG infrastructure financing over the next three years 5

6. Catalytic Urban Development Projects within Integration Zones will demand… 6

7. CSP/NT Support for Catalytic Urban Development Projects within Integration Zones 7 Refocusing grants for urban spatial transformation Urban Regeneration / Land Conference held in November 2014 Project level support that seeks to better integrate spatial planning and land use with transport systems DBSA examining ways to encourage greater private investment - infrastructure bonds - municipal bond underwriting - project finance - various contracting models City Infrastructure Delivery Management System Project Preparation Facility to build a robust pipeline of well- designed, catalytic projects for implementation over the medium term. NDPG supporting MELD Corridor with precinct planning

8. How do cities respond? Improved planning and coordination across sectors… Targeted effort on focusing resources on the core issues Prioritisation is critical Clear demonstration of capacity to absorb all support 8

9. Purpose for today… Cross-sectoral discussion Support city to realise spatial, economic, environmental, social transformation Support vertical and horizontal alignment Feed into the finalisation of the BEPP for Council approval by 29 May 2015 9