Urban Settlements Development Grant USDG Policy Framework Workshop 6 April 2011. PRESENTATION OUTLINE. USDG POLICY FRAMEWORK Built Environment Context Approach & Objectives Built Env. Performance Plan & Intermediate Results Indicators Eligibility & Participation
Policy Framework Workshop
6 April 2011
Human Settlements - well managed entities in which economic growth and social development are in balance with the carrying capacity of the natural systems on which they depend for their existence and result in sustainable development, wealth creation and poverty alleviation and equity (Housing Code). There is a continuum of settlements from rural to urban. The USDG relates to urban human settlements.
8 Metro’s +
Built Environment– refers to the human production of space within the context of urban settlements including infrastructure that supports services required for quality living, both from the social and economic perspectives. The built environment includes infrastructure services, housing, public transport and land use management practices. It also includes community facilities, such as sports fields, arts and recreational facilities, community halls and other social infrastructure that are as critical to building resilient, cohesive, safe and healthy communities.
Infrastructure Development includes addressing the development of new services, upgrading, rehabilitation, and where necessary replacement.
While it is a direct response to the constitutional rights of access to basic services, it also provides for economic growth. It is a key source of revenue for Cities % Towns.
Built Environment Performance Plan– refers to the plan that a city compiles and submits to national government in respect of the USDG procedure, the content of which is focused on the approach of the city in managing its built environment to contribute to the national outcome of integrated infrastructureplanning and performance.
“Sustainable Human Settlements and Improved the Quality of Household Life”
Consolidation of funding a key issue for realisation of the human settlements mandate
The provision of Bulk and Link Infrastructure continues to be a matter plaguing the optimum performance of the human settlements sector
MIG Cities was established to promote integrated planning and funding of the urban built environment agenda in the large cities.
Cabinet decision in December 2010 that USDG be established, and funding be allocated from the HSDG and the disestablished MIG Cities grant.
USDG intends to integrate the release of well located land to the function of planning and funding of the built environment.
2. INTENTOF USDG
“Additional” R 21 billion for human settlements function over the MTEF allocated directly to Cities & Towns
USDG will augment and support grant allocations from provinces to municipalities under the HSDG; it must also support integration of HSDG projects into mainstream city development.
Should compel improvement in development planning and also improve inter-governmental co-ordination (all 3 spheres) of development.
USDG aims to encourage cities to be proactive developers of infrastructure by mobilising domestic capital while at the same time addressing and re-dressing the location of development. It should compel Cities and Towns to manage their capital expenditures in an integrated manner, across all services in good locations and covering the lifespan of projects (development, M&R, upgrading, rehabilitation, replacement).
USDG should address PRO POOR BIAS INCLUDING ECONOMIC GROWTH
Not either or, but both: USDG focus should be biased towards lowering the costs incurred by poorer households in accessing serviced urban land with secure tenure.
Human Settlements Development Plan to be addendum to BEPP Submission for alignment and integration of Housing / Human Settlements into mainstream city development
The BEPP Panel will consist of the members currently serving on the Human Settlement Basic Services Task Team and others as per the TOR (Annexure C)3. Composition of the BEPP Panel
+ Two to three experts selected by consensus of the Panel
The BEPP Panel will receive the first drafts of the USDG BEPP’s submitted by the 8 Metro’s seven (7) days prior to the assessment thereof.
In addition the review of the 1st drafts will take place as part of the Annual Budget Reviews conducted by National Treasury with delegated municipalities (Benchmarking)
Evaluation criteria (Intermediate Results Indicators) will be used for assessment
Intermediate Results Indicators
draft for discussion today
First Draft BEP
Submission of 1st draft
Consultation with Metro’s
Panel workshop and review plans
Alignment of Benchmarking for budgets and evaluation for USDG.
Second Draft BEP
Submission of 2nd draft
Panel review plans
Submission of final BEP
Submit by 31 March
6 April 2011
18 to 21 April 2011
4 to 9 May 2011
23 may 2011
6 to 15 June 2011
24 June 2011
Report on performance against the targets provided for in the BEPP Intermediate Results Indicators and in conjunction with the reporting requirements of MFMA Section 71:
“The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality and the relevant provincial treasury a statement in prescribed format on the state of the municipality’s budget reflecting the following particulars for that month and for the financial year up to the end of that month” and Section 72:
“The accounting officer of a municipality must by 25 January of each year—(a) assess the performance of the municipality during the first half of the financial year, submit a report on such assessment to—(i) the mayor of the municipality; (ii) the National Treasury; and (iii) the relevant provincial treasury”Reporting Requirements, M & E
Municipalities must comply with reporting requirements as per DORA Section 9 (1) & Section 11 (2)
The flow of the first instalment depends on the submission and approval of BEPP including agreed Intermediate Results Indicators;
The flow of the 2nd, 3rd instalments will be conditional upon submission and approval of signed-off quarterly reports
Rationalisation of various sector specific funding streams to promote more effective planning and implementation of the built environment by Cities and Towns
1. Water Services Projects
2. Community Based Public Works Programme
3. Local Economic Development Fund
4. Urban Transport Fund
5. Building for Sport and Recreation Programme
Delivery Agreements (USDG specific) will be the political commitment to reflect Grant Framework / DORA.
Capacity Support from National (and World Bank) provided with funding
Link to institutionalised budgeting and reporting process convened by National Treasury for all Departments6. INSTITUTIONAL ARRANGEMENTS
THANK YOU the