Southern Corridor Programme

N/A

Amount Raised

N/A

Total Investors

Project Overview

The programme comprises of five priority component projects focusing on eight mega informal settlements. The goal is to transform these informal settlements into urban neighbourhoods, that will enable communities to access housing opportunities and other socio-economic amenities. Significant infrastructure investment is required. Some sites contain extremely poor ground conditions require land remediation. Assistance in developing appropriate multi-storey housing solutions is required.

Sectors

  • Affordable Housing
  • Informal Settlements Upgrading
  • Transport & Mobility
  • Urban Infill & Public Space
  • Waste Management
  • Water & Sanitation
US$753,000,000
Funding Goal
South Africa
Country
Africa
Region

Objectives

Yes, a document titled “Cape Town: Southern Corridor Integrated Human Settlements Programme” has been prepared. The objectives of the projects are listed in this document as follows:

  • To rehabilitate designated sites so that the maximum land possible can be made available for human settlement and related purposes.
  • To implement a phased decanting and re-settlement plan in consultation with the community to facilitate site rehabilitation and preparation for development.
  • To plan human settlement projects that are practical, sustainable and address the goal of the Southern Corridor.
  • To explore medium and higher density settlement solutions within funding and affordability constraints, that optimise urban settlement opportunities and minimise requirements for re-settlement to other sites.
  • To actively search for and procure other sites in the Southern Corridor that are suitable for development and to which communities may be resettled to facilitate site rehabilitation and preparation for development of overcrowded informal settlements.
  • In consultation with the community, undertake a beneficiary allocation process that is humane and fair, that matches as far as possible household needs and affordability with settlement solutions, and is within the constraints of prevailing policy.
  • To review prevailing policy to reveal opportunities for innovative solutions and policy changes that can assist in achieving the goal of the Southern Corridor Programme.

Progress Tracker

Phases

  • Phase 1 (Completed)

    Development framework, technical investigations, preliminary cost estimates. Phase 1 has been completed for all four component projects (development frameworks, technical investigations and preliminary cost estimates). This work was undertaken during 2018 and 2019

  • Phase 2 (Completed)

    Detailed planning, community consultation, approval of development rights, engineering design. Detailed planning, community consultation, approval of development rights and engineering design has been completed for all four component projects. The extent of work at the two greenfield sites, Welmoed and Ithemba sites are more advanced than the other projects as these sites are going to be used to decant a portion of the beneficiaries from the densely informal settlements in order to make space for the in-situ upgrading component. Statutory approvals have been obtained and engineering designs have been completed for Penhill and are being finalised for the iThemba site.

  • Phase 3

    Procurement of contractor, installation of bulk services. Contractors have been appointed for some of the sites to commence with bulk earthworks and infrastructure.

  • Phase 4

    Construction of internal services and top structures

  • Phase 5

    Procurement of contractor, installation of bulk services

  • Phase 6

    Community and economic development

Current Stage

Advanced design: Clear funding requirements, operational feasibility, financial model exists.
The programme is at the advanced design stage in all component projects, while the Welmoed and Ithemba components are about to break ground with bulk services and earthworks planned to commence early in 2020.

Timeline

Yes.

Project Milestones

The preliminary schedule of the 5 component projects is:

Penhill: Construction of bulk services and earthworks: 2020
Construction of internal services and top structures: 2021 – 2023
Beneficiary occupation: 2022 – 2024.

Thabo Mbeki Construction of bulk services and earthworks: 2020
Construction of internal services and top structures: 2021 – 2023
Beneficiary occupation: 2022 – 2024.

Kosovo (main site) Main Site: Construction of bulk services and earthworks: 2021
Construction of internal services and top structures: 2022 – 2024
Beneficiary occupation: 2023 – 2025.

Kosovo decanting site: Construction of bulk services: 2019
Construction of internal services and 440 top structures: 2020 2021
Beneficiary occupation: 2021

Airport Precinct Site remediation: 2021 – 2022
Construction of internal services and top structures: 2023 – 2024
Beneficiary occupation: 2024 – 2025.

Ithemba Construction of bulk services and earthworks: 2020
Construction of internal services and top structures: 2021 – 2023
Beneficiary occupation: 2022 – 2024

ESG Impact

The programme comprises a cluster of projects focusing on eight mega informal settlements along transport corridors of Cape Town. It promotes an integrated approach to ensure that socio-economic and connectivity issues are considered in the upgrading process. Furthermore, it seeks to promotes spatial transformation to address the historical apartheid planning, which settled poor people on the periphery with limited economic opportunities. The components of the programme include the provisions of affordable housing, upgrading of informal settlements, building on the existing rail, road and other bulk infrastructure to improve connectivity to the settlements, amongst other things.

The selected informal settlements are within close proximity to the airport and are along major transport routes. The close proximity to key routes and the airport will be used to leverage investment for economic development. In terms of the social impact the living condition of the families currently living in infomal settlements will be improve with decent shelter access to basic services and job opportunties during and after construction. Governance systems have been set and are operational. This includes project steering committees at community level. Inter governmental forum where the project is discussed by the different spheres of government is operational.

Beneficiaries

The beneficiaries will predominantly be people currently living in informal settlements and backyard dwellings in the southern corridor. Both those who qualify for a state subsidy and those who do not qualify will be accommodated. Approximately 50,000 families will benefit representing approximately 200 000 people based on a household size of 4.

SDG Goals

SDG 1: No PovertySDG 2: Zero HungerSDG 3: Good Health and Well-beingSDG 4: Quality EducationSDG 5: Gender EqualitySDG 6: Clean Water and SanitationSDG 7: Affordable and Clean EnergySDG 8: Decent Work and Economic GrowthSDG 9: Industry, Innovation and InfrastructureSDG 10: Reduced InequalitySDG 11: Sustainable Cities and CommunitiesSDG 12: Responsible Consumption and ProductionSDG 13: Climate ActionSDG 14: Life Below WaterSDG 15: Life on LandSDG 16: Peace and Justice Strong InstitutionsSDG 17: Partnerships to achieve the Goals

Rationale

SDG 3 – Good Health and Wellbeing
The health and wellbeing of beneficiaries and their families will improve with shelter, services and access to urban amenities. There will be opportunities to own property, a greater sense of belonging and service delivery to disadvantaged communities.

SDG 5 – Gender Equality
The allocation of housing will be based on gender neutral criteria. Since women bear a significant burden in caring for families, the improvement of living conditions and opportunity to own a formal dwelling will make a significant contribution to gender equality.

SDG 6 – Clean Water and Sanitation
Beneficiaries will be provided with clean water and sanitation, which are services they do not currently have.

SDG 10 – Reduced Inequalities
The provision of formal settlement solutions to over 50 000 families will help to reduce the extreme inequalities in urban living that exist in Cape Town.

SDG 11 – Sustainable Cities and Communities
The component projects are located within the urban fabric of Cape Town metropolitan area and generally on brownfield sites. Transforming informal settlements into medium density mixed use developments with adequate water and sanitation, will help to integrate the communities and create a more sustainable city.

SDG 16 – Life on the Land
One of the component projects, Penhill has provision for small scale farming operations

Risks and Limitations

What are the key risks, constraints and dependencies related to the project?

The following risks and constraints affect the project:

  • Funding constraints for bulk services and land preparation;
  • Technical solutions and funding for land remediation of the former dump site at the Airport Precinct;
  • Lack of a financial model to support the proposed new generation housing typologies of subsidized multi-story residential apartments required to address housing challenge within the densely populated informal settlements.

Risk mitigation and continuity

Project already endorsed by National and Provincial cabinets and there are resolutions in this regard.

Financing

Type of Investment

Grants

Financing Structure

Predominantly publicly financed, but public private partnerships are also being sought. These could include private sector participation in commercial projects (such as retail, light industry etc) and enterprise development. Opportunities also exist for market related housing to cross subsidise the affordable housing component

Secured Investment

$9,271,729.95 (ZAR 135.64 million)

Committed Government Funding

Yes. $126,133,333.00

National and Subnational Investors

$123 million (National and Provincial Department of Human Settlements) $ 2.47 million (National Department of Energy for Pehnill electrification)

Committed Private Funding

No

Support

Technical Support Required

N/A

Stakeholders

Governmental Buy-in

Yes. National and Provincial.

Other Forms of Governmental Support

The government will provide technical support.

National Ministries Involved

Mr Mbulelo Tshangana:
Director-General at the National Department of Human Settlements

SubNational Ministries Involved

Mr Thando Mguli: Head of Department at the Provincial Department of Human Settlements

Mr. Michael Webster: Executive Director: City of Cape Town

Other Entities Involved

N/A

Licenses and Permits

Yes

Environmental Authorisation, Land Use Planning

Updates

  • 10th February 2020

    Cities Investment Platform in progress - updates pending

  • 10th February 2020

    Project featured on the Cities Investment Platform, which was launched at the Tenth Session of the World Urban Forum (WUF10)

Supporting Documents

No supporting documents included.

FAQs

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