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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
Pilots were selected to reflect the range ofchallenges facing the South African Community
Six pilot areas:
– Ba-Phalaborwa
– Diepsloot
– Grabouw
– Motherwell
– Ngangelizwe
– Thaba-Cheuw
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
– R8M for capitalizing the LIA Company– R500M as investment facility
• Catalyzing and crowding in commercial investment in poverty-stricken 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: R500 Million• Linkage to other funding and support from DBSA and OM• Synergy and alignment with government policies / programmes• Collaboration with other role players
Institutional ArrangementsLIA Company
50%50%
OM DBSA
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
EXTENDED AND REFURBISHED
SCHOOL
URBAN RENEWAL AND NEW HOUSING
NEW URBAN EXTENSION ± 40
ERVEN
COMMERCIAL CENTRE
OCEAN VIEW HOTEL
RESORT HOUSING
RESTAURANT AND BEACHFRONT BAR
NEW COFFEE
BAY HOTEL
BEACH
WATERFRONT BOTH SIDES OF
INLET
RESORT ACCOMMODATIO
N
AGRICULTURAL FIELDS
TREE-TOP BISTRO &
BAR
Copyright: dmp
………………………………
Investment Opportunities
Property Development – Coffee Bay
• 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 back-packers resort accommodation.
Concept Urban Design Plan
Linkage Projects
• Hiking trails• Agriculture• Laundry• Fishing trips• Restaurants• Cultural events• Security services• Maintenance services• Gardening services