Rural Precinct Development: PMTE briefing

Meeting report

Briefing by Property Management Trading Entity (PMTE)

The presentation introduced Planning and Precinct Development (PPD) as a division the Property Management Trading Entity (PMTE) of the Department of Public Works (DPW). The presenters were Mr Peter Chiapasco, Associate Deputy Director General, Department of Public Works; Ms Sasa Subban, Deputy Director General, Department Public Works; and Ms Zelmarie Van Rooyen, Associate Creative Director, Department of Public Works. It was highlighted that their core mandate is to support integrated development and the creation of government precincts in collaboration with National, Provincial and Municipal counterparts. Core objectives were addressing spatial imbalances in respect to the National Development Plan (NDP), to direct government spending and reduce lease costs.

PMTE included a follow-up session from the previous meeting with the portfolio Committee in September 2016. This included the need for strategic plan with criteria for spatial selection; clear definitions of urban and rural; project plan (time lines and expected completion dates); projects: lease profile, budgets and potential job creation; alignment with sector departments; and feasibility studies and methodology.

The presentation also discussed the criteria for spatial targeting. Investment/economic growth areas included areas subject to government investments in infrastructure and social programmes (NDP); areas with growth in employment; municipalities with the highest interment potential; and largest cities and towns/economic centres.

Intervention areas were small harbours; agri-parks initiative; areas targeted by sector departments for development; small and rural towns that perform as regional service centres; areas with high population density; areas experiencing growth in population (immigration); and mining town; areas of deprivation and areas with the highest economic potential.

Over a third of South Africa’s population live in the former homelands, and a large proportion of this group is economically marginalised. Many rural areas in the country still face massive service underdevelopment, including poor road infrastructure, lack of basic services like running water, primary healthcare, sanitation and electricity.

The monthly lease total for the 36 large Municipalities is R212 416 566. The process for development has four stages; spatial selection, precinct identification, investment analysis and site enablement. The presenter also highlighted their current projects, particularly the Tshwane Inner City project. With each project PPD discussed the total lease portfolio, the extent of development, the site enablement budget, an indication of job creation figures, the construction start date, project budget and project implementation timeframe.

In terms of alignment to sector provinces, PPD set up technical forums with social clients (Department of Home Affairs, Department of Labour, SASSA, Department of Justice, SAPS, and SARS). PPD also engaged with sector departments and public entities such as National Treasury (City Support Programme); Department of Public Serviced and Administration; Government Communication and Information Services; Department of Rural development and Land Reform, Human Settlements, SALGA; and CSIR. PPD also engaged with Provincial Public Works Roads of the Western Cape, Eastern Cape, KwaZulu-Natal and Mpumalanga.
Largest cities and towns/ economic centres

Discussion

Ms D Kohler–Barnard (DA) noted that there was no mention of the Rural Precinct Development programme in the PMTE Annual Performance Plan of 2016/17. This is very odd and she asked for clarification on this matter. She also asked for a detailed cost breakdown per user Department, Municipality, Provincial and National Department of each Precinct Development Programme. She asked how they chose the amount spent per province and who was responsible for that

Ms E Masehela (ANC) asked about one of the objectives highlighted in the presentation in which the Rural Precinct Development by PMTE seeks to address the imbalances of the past. Most of the projects were in urban areas and there was no focus on the rural areas, therefore PMTE was not meeting one of their objectives, which is to address the imbalances of the past. There must be radical focus on rural areas. She also asked whether they had their own budget or were working with a government department; and whether PMTE worked with private partners to assist with the projects.

Mr K Sithole (IFP) thanked the delegation for their presentation. He was worried about the pipeline of the project and said he did not know when development would take in the rural areas. Another concern he voiced was the communication between the Province, Municipality and PMTE concerning land acquisition. He thought there was a communication breakdown between PMTE, the Province and Municipalities. He highlighted in the list of Municipalities, Nkandla is under the uThungulu and asked where about in the uThungulu Municipality was development taking place. He also corrected a spelling mistake whereby the Municipal District known as Ukahlamba was called Ukalamba in the presentation and the delegation apologised for the spelling mistake. He highlighted from the presentation the inner-city development in Tshwane and asked in which area of Tshwane the project was focusing; Mamelodi East or West, where about in Mamelodi?

Ms S Kopane (ANC) referred to slide 6 of the presentation and asked for clarification of the difference between poor and rural Municipalities? She also highlighted that during the presentation they did not articulate the needs list for the user department.

Mr F Adams (ANC) said development work can never be completed because it involves perpetual planning and constant improvements on undeveloped areas. One can never say that one building is erected and sit back and relax because there were always new things to be developed. He asked about the monthly lease cost of R212 million referred to in the presentation. He understands that in 1994 there were buildings which belonged to the state and asked what happened to those buildings because he understood that some of those buildings were standing empty and buildings are being leased from friends and acquaintances. He asked the delegation if they had ever picked up those things and what have they done about it. He highlighted this because he wanted to know what happened to those buildings and expressed that he felt that the monthly lease cost of R212 million per month is ridiculous because some of the buildings are not worth the lease amount. They must look into getting government’s own buildings. He also asked if Tshwane was part of the planning phase of Municipal Precincts, and if there were any counter actions from Municipalities and Provinces to the development of Government Precincts.

Ms P Adams (ANC) asked about the introduction section of the presentation where the delegation articulated that they were using seven professionals. The number of professional employed for the development of rural precincts was not sufficient for the task at hand and the amount of work to be done. After 23 years of democracy people are more impatient and are frustrated. She also addressed this to the Chairperson and further requested that the delegation breaks down who the professionals are and whether they received outside labour. She asked by how much the lease costs could be reduced and by when this could take place. She also asked in which homelands the division working was in and what economic impact this will have on the people. She asked about the criteria for spatial targeting and highlighted that areas with high population densities should be targeted, particularly mining towns. She also asked what plans were made to uplift the mining towns. She also alluded to the presentation and asked how they could develop a precinct without land being available.

Ms Kohler-Barnard remarked that the delegation had said they were paying R212 million per month on leases despite the fact that there are abandoned buildings. She could personally take them to Durban and show them abandoned buildings. In the past, the Committee was told that the days of non-payment of the leases had passed, so why was rent not paid in Empangeni for the Crime Intelligence Unit and as a result, they were locked out of buildings managed by PMTE while there are empty unoccupied buildings. The province in this instance shifted blame to PMTE. She also asked that assurance be given to the Committee that things like that will never happen again.

Mr P Chiapasco responded to comments and questions concerning vacant buildings, PMTE’s approach is always looking to reduce spending. If a dilapidated building was found it was assessed whether it would cost more to refurbish it or to simply lease a building. If leasing were more cost effective, they usually chose that as opposed to refurbishing and using more money.

Ms Van Rooyen responded to the question of addressing imbalances of the past and stated that it is a concern. She used Alice and Stellenbosch as examples. Both are university towns yet one is more developed and attracts more investors than the other. One is extremely disadvantaged and has no housing and building projects like the other. She understood the impatience most people have concerning seeing change and said that these projects will start in the next 1 to 2 years. She also apologised for a spelling typo which was highlighted by Mr Sithole earlier on.

In responding to Ms Masehela’s question, Ms van Rooyen said she understood that it is not all the poorest Municipalities which are in the rural areas some of them are actually in urban centres.

Ms Subban spoke about the strategies they used in order lower lease costs which include making an assessment and having criteria by which they will choose. PMTE also have criteria in terms of making services acceptable to the people like access and friendliness of the environment.

On the number of professionals, they work with 5 town planners and 2 architects.

The Chairperson welcomed the Director General of PMTE who walked in late into the meeting.

Ms Masehela asked about the Polokwane Municipal District and where in Polokwane the projects were carried out. She also raised concern about the starting times of the projects, that they are too far and that the community need these projects running as a matter of urgency. She gave the example of the rural communities surrounding Polokwane, where some of them can be as far as 60km from the city and that inconveniences people because they have to wake up earlier to catch a 5:30 am bus to the city.

Ms Subban highlighted the social impact of bringing government services to the people while also alluding to the population growth in urban areas as a result of the migration of people from rural areas. The development 2km outside of Polokwane is strategically placed in proximity to major public roads, shopping centres, taxi ranks and many other facilities used by the people in order to make it accessible to the people.

The meeting was adjourned.