National requirements for the delivery and management of infrastructure MODULE 1

TOOLKIT EDITION 1 2018

MODULE 1
National requirements for the
delivery and management of
infrastructure
MODULE 1 National requirements for the delivery and management of infrastructure

MODULE PURPOSE
This module presents an analysis of urban challenges and expectations for cities and their pivotal role in the economic and
social development of South Africa, through considered infrastructure delivery and management in the context of the spatial
reform agenda. It also describes the unique value that this toolkit offers in supporting cities to meet these challenges, using
the Cities Infrastructure Delivery and Management System (CIDMS) that is founded on best practice and tailored for unique
application in the South African urban environment.

WHY
1. Infrastructure investments, the delivery of infrastructure and the management of infrastructure assets and services need
to support national policy and strategy relating to the development of the country. This module summarises key urban built
environment strategies and highlights strategic objectives for urban infrastructure.
2. The strategic objectives for urban infrastructure serve as outcome areas that define the parameters for decision-making in city
asset management systems, dealt with in Module 2 of this Toolkit.

OUTPUTS OF MODULE 1:
1. Identification of standards and best practices considered in the development of the CIDMS system.
2. Articulation of the key urban built environment challenges facing cities and identification of key national policy imperatives
with emphasis on infrastructure – this provides the broad legislative and physical context (as part of an environmental analysis)
informing the design of a city asset management system* responsive to its environment.
3. Identification of national expectations for urban infrastructure as outcomes to be achieved by cities – these outcomes become
the policy principles stipulated in a city’s asset management policy.

* Module 2 defines the asset management system.

KEY RELEVANT NATIONAL REGULATIONS, POLICIES AND STRATEGIES:

1. Spatial Planning and Land Use Management Act, No 16 of 2013
2. National Development Plan - 2030
3. Urban Networks Strategy
4. Integrated Urban Development Framework
5. National Infrastructure Maintenance Strategy

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 National requirements for the delivery and management of infrastructure MODULE 1

CONTENTS
Module 1 National requirements for the delivery and
management of infrastructure

1.1 INTRODUCTION 1.1

1.1.1 Purpose and scope of this toolkit 1.1
1.1.2 Best practice 1.5
1.1.3 Unique value of this toolkit 1.7

1.2 URBAN DEVELOPMENT AND INFRASTRUCTURE CHALLENGES 1.9

1.2.1 Fragmented cities 1.9
1.2.2 Carbon-intensive, resource-consumptive cities 1.11
1.2.3 Insufficient investment in infrastructure for growth 1.12
1.2.4 Insufficient asset care and the need for investment in asset renewal 1.15

1.3 EMERGING SOUTH AFRICAN URBAN POLICY 1.19

1.3.1 Spatial Planning and Land Use Management Act 1.19
1.3.2 National Development Plan (NDP) 1.19
1.3.3 Integrated Urban Development Framework (IUDF) 1.20
1.3.4 The Urban Network Strategy (UNS) 1.22

1.4 EMERGING URBAN POLICY AND IMPLICATIONS FOR INFRASTRUCTURE PLANNING 1.23
AND DELIVERY
1.4.1 Spatial form and structure of cities: more compact cities 1.23
1.4.2 Increasing the level and quality of investment in infrastructure and social amenities 1.26
1.4.3 Spatial prioritisation and focusing of infrastructure investment 1.29
1.4.4 Towards greater resource efficiency 1.32

1.5 HOW TO USE THIS TOOLKIT 1.33

1.5.1 Overall approach and lay-out of this toolkit 1.33
1.5.2 Words matter 1.36

1.6 SUMMARY 1.37

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MODULE 1 National requirements for the delivery and management of infrastructure

LIST OF
Figures that appear in this toolkit

FIGURE 1.1: Cape Town 1.2

FIGURE 1.2: Durban 1.2
FIGURE 1.3: Johannesburg 1.2
FIGURE 1.4: Sterile low-income housing development 1.9
FIGURE 1.5: Rapid growth in Johannesburg’s spatial footprint over the past 20 years 1.10
FIGURE 1.6: Typical South African city densities 1.11
FIGURE 1.7: An example of a complete street 1.12
FIGURE 1.8: Cape Town International Convention Centre 1.12
FIGURE 1.9: BRT station 1.12
FIGURE 1.10: Example of an urban renewal project 1.13
FIGURE 1.11: Example of upgrading of infrastructure works 1.13
FIGURE 1.12 Urban network concept 1.15
FIGURE 1.13: Lay-out and logic of the CIDMS toolkit 1.22
FIGURE 1.14: Urban network concept 1.30
FIGURE 1.15: Configurations of monocentric and polycentric cities 1.31
FIGURE 1.16: Lay-out and logic of the CIDMS toolkit 1.34

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 National requirements for the delivery and management of infrastructure MODULE 1

LIST OF
Case study and heading section where it appears

CASE STUDY 1: The need for asset renewal – just how badly can infrastructure failure affect us? 1.2.4
CASE STUDY 2: Capital cost of development at various levels of density 1.4.1

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MODULE 1 National requirements for the delivery and management of infrastructure

1.1 INTRODUC TION

1.1.1 Purpose and scope of this toolkit

Cities hold the key to unlocking the full economic growth potential of South Africa, and forging resilient social structures
that build a unified, inclusive nation of people who enjoy the full benefits of advanced health care, education, the arts, many
recreation activities and that special “buzz” that some successful cities offer (consider Figures 1.1 – 1.3 depicting South Africa’s
three largest cities).

By 2011 the majority of South Africa’s population resided

in the eight metropolitan cities. A large conglomeration of
people in fairly small city spaces (compared to rural settings)
creates economy of scale and opportunities for interaction,
“ Cities stand central in Government’s plans
for the economic and social development
of South Africa.”
collaboration, specialisation and innovation. Size allows cities
to develop the complex, specialised economic systems that are
necessary for economic growth and employment creation at
scale. Size also enables cities to provide both a wide range and No city can function without the availability and reliable
richness of social life, such as universities, advanced health care functioning of complex urban infrastructure support systems.
and access to the arts. Collectively, these benefits are called the Municipal infrastructure provides households, businesses,
“urban dividend”. Despite occupying less than 2 per cent of the institutions and other customers with energy and potable
land mass of South Africa, cities generate in the order of 60 per water. It enables movement through roads, bridges, sidewalks
cent of the country’s Gross Domestic Product (GDP) and account and transportation infrastructure. Municipal infrastructure also
for 60 per cent of the population by 2013. Cities stand central in protects cities from the dangers of flooding through stormwater
Government’s plans for the economic and social development infrastructure, from fire and other emergencies through
of South Africa. infrastructure such as fire hydrants and emergency response
facilities, and enables a healthy environment for human, animal
and plant life through the safe removal, treatment and disposal
of wastes. Municipal parks, open space and recreation facilities
enable the citizenry to enjoy varied social activities and provide
opportunities for social advancement and cohesion. Cities have
over decades invested heavily in infrastructure systems: over
50 per cent of the total replacement value of R1.16 trillion of all
municipal infrastructure in the country is vested in cities. This
toolkit has been developed to support cities to sustainably
increase both the level and quality of investment in infrastructure
in order to meet the economic and social aspirations of South
Africa as a developing nation.

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National requirements for the delivery and management of infrastructure MODULE 1

FIGURE 1.1: Cape Town

Cape Town, the Mother City. Considered one of the most beautiful
cities on the planet, it boasts the famous Table Mountain. After
Johannesburg it is South Africa’s most populous city and its
second main economic centre. This city has won many accolades
in recent years, including the World Design Capital for 2014 by the
International Council of Societies of Industrial Design. In the same
year the New York Times named Cape Town as the best place in the
world to visit. Source: Picked from internet.

FIGURE 1.2: Durban

Aerial view of Durban (eThekwini) featuring the Moses Madiba
stadium, extensive transport infrastructure, skyscrapers,
beachfronts and green open space. The city has the busiest
container port in Africa and is the second most important
manufacturing hub in South Africa. With its subtropical climate,
beaches and attractions such as the uShaka Marine World, it is
a major tourist destination. Durban is well known for its diverse
cultures and experiences. Source: Picked from internet.

FIGURE 1.3: Johannesburg

Johannesburg, the financial powerhouse of South Africa, and
indeed, of the continent of Africa. Johannesburg is home to South
Africa’s tallest buildings, two major universities, the country’s
mining houses and is also the location of the headquarters of
most major South African banks. Johannesburg also hosts the
Constitutional Court, the ultimate guardian of South Africa’s
progressive Constitution. Johannesburg also boasts a vibrant night
life and is a mecca for the arts. Source: www.ohphoto.co.za

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MODULE 1 National requirements for the delivery and management of infrastructure

In particular, this toolkit provides principles, methodologies, processes, techniques and case studies to assist infrastructure
planners and decision makers to:

Plan Make infrastructure Accelerate the Establish systems

comprehensively for investment choices delivery of and mechanisms
urban infrastructure designed to future- infrastructure that will ensure that
proof cities infrastructure is
optimally managed

These processes, in a nutshell, include:

01 CITY-LEVEL ASSET MANAGEMENT STRATEGY

AND POLICY 04 FORECAST AND MANAGE DEMAND
This includes the establishment and improvement upon Estimate the demand for infrastructure services, apply
resilient city-level asset management strategy and policy to demand management techniques to curb excessive resource
guide infrastructure planning, decision making and activities. consumption and unnecessary investment, and calculate
These will ensure that the city invests in and cares for assets net demand to be serviced. Servicing will be done through
supportive of smart and inclusive growth in such a way that risks infrastructure expansion and upgrading, and other tailored life
and costs associated with infrastructure are minimised, and that cycle solutions, as well as recurrent expenditure in the form of
optimum value is derived from infrastructure. operations and maintenance to serve changes in demand.

02 ASSET KNOWLEDGE 05 LIFE CYCLE PLANNING FOR ASSET

PORTFOLIOS
Develop, maintain, update and improve knowledge on the Develop life cycle plans for asset portfolios and cost life cycle
city’s existing infrastructure assets and amenities – service activities. This includes the formulation of programmes and
capacities and reach, failure mode status and trends, risk projects in the short to medium term, preparation of life cycle
profiles and life cycle requirements. funding estimates in the longer term, and scheduling and
optimisation of life cycle activities at asset portfolio level.

03 DECIDE SERVICE PACKAGES AND PROFILE THE

STATE OF SERVICES PROVIDED
Articulate and measure levels and standards of service,
assemble infrastructure service profiles, determine whether
service backlogs exist in the present time, and formulate plans
to address backlogs and service improvement needs.

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06 FINANCIAL APPRAISAL AND BUDGET

DEVELOPMENT 08 INFRASTRUCTURE PROCUREMENT
MANAGEMENT (IPM)
Undertake portfolio-level life cycle financial feasibility The procurement management process starts with the
assessment and budget development. This involves: procurement plan and strategy developed in Section 7.
Thereafter specialised infrastructure procurement management
• the preparation of revenue and expenditure forecasts
processes commence with solicitation or tender preparation
• matching of funding sources and invitations, followed by the tender evaluation, and finally
• determining tariff impacts and customer affordability where the award of the tender.
appropriate and
• assessing financial outcomes of investment on the city’s
financial position and performance over the longer term 09 CONTRACT ADMINISTRATION AND ASSET
HANDOVER
This stage involves contract administration (administration,
Capital and operating budget submissions are then prepared compliance assurance, contract data capture and the approval
and included in the city’s Medium-Term Revenue and of contract variations), and site activities, including the
Expenditure Framework (MTREF). management of the works and asset handover. It then concludes
with the contract close-out stage including the capturing of the

07
asset register data, and package completion or the payment of
PORTFOLIO, PROGRAMME AND PROJECT
MANAGEMENT (PPPM) the final account.
Review of the portfolio-level consolidated city infrastructure
plan and budget (developed in Sections 5 and 6 above) into a
programme and project level implementation plan including
overall, integrated scheduling, package preparation and
definition. The implementation plan includes the detailed and
scheduled aspect of land assembly and development controls.
This is followed by the preparation of the procurement plan
and strategy and then by detailed project level plans, including
detailed designs and specifications.

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MODULE 1 National requirements for the delivery and management of infrastructure

1.1.2 Best practice

This toolkit adopts an asset management approach to the planning and management of infrastructure. Asset management
is the process of decision making, planning and control over the acquisition, use, safeguarding and disposal of assets to
maximise their service-delivery potential and benefits, and to minimise their related risks and costs over their entire life.

The methodologies and techniques presented in this toolkit

are consistent with international and local best practice and
standards, inclusive of:
• Relevant standards of Generally Recognised Accounting
Practice, with specific reference to GRAP 17: Property, Plant
and Equipment.
• SABS: South African National Standard 55000: 2015. Asset
management – Overview, principles and terminology.
• SABS: South African National Standard 55001: 2015. Asset
management – Management systems – Requirements.
• SABS: South African National Standard 55002: 2015. Asset
management – Management systems – Guidelines for the
application of SANS 55001
• NAMS and IPWEA’ s International Infrastructure Management
Manual 2011.
Practices relating to infrastructure delivery meet the
As the focus in this first edition of the toolkit is on sound requirements of the Standard for Infrastructure Procurement
infrastructure investment decision making and acceleration and Delivery Management (SIPDM), which in turn is based on
of the delivery of infrastructure, some elements of asset the following standards:
management practice relating to the ongoing management of
• SABS: South African National Standard 10845-1: 2015. Construction
infrastructure portfolios are not dealt with in this toolkit.
procurement – Part 1: Processes, methods and procedures.
• SABS: South African National Standard 10845-2: 2015. Construction
procurement – Part 2: Formatting and compilation of procurement
documentation.
• SABS: South African National Standard 10845-3: 2015. Construction
procurement – Part 3: Standard conditions of tender.
• SABS: South African National Standard 10845-4: 2015. Construction
procurement – Part 4: Standard conditions for the calling for
expressions of interest.
• SABS: South African National Standard 10845-5: 2015. Construction
procurement – Part 5: Participation of targeted enterprises in
contracts.
• SABS: South African National Standard 10845-6: 2015. Construction
procurement – Part 6: Participation of targeted partners in joint
ventures in contracts.
• SABS: South African National Standard 10845-7: 2015 Construction
procurement – Part 7: Participation of local enterprises and labour
in contracts.
• International Standards Organisation 6701-1: 2014. Building and
civil engineering works − vocabulary – Part 1: General Terms.

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MODULE 1 National requirements for the delivery and management of infrastructure

1.1.3 Unique value of this toolkit

This toolkit does not aim to replace any of the standards, manuals and guidelines noted in the preceding section. So what
does this toolkit offer? Cities will benefit from the implementation of this toolkit in the following ways:

01 SYNTHESIS AND TAILORING FOR URBAN

APPLICATION 02 STANDARDISATION
The urban infrastructure management value chain requires an Standardisation holds many benefits. It limits costly investments
approach involving multiple disciplines, including engineering, in practice development, enables easy replication of systems,
urban planning, economics, finance, accounting and the practices and methods between cities, and allows structured
social sciences. These disciplines have over time developed training, sharing and transfer of capable built environment
dictionaries, guiding principles, best practice models, guidelines practitioners in and between cities. Standardised methods
and standards. Though representative of best practice in the for analysis, planning and reporting should lead to consistent
general sense in their respective fields, they in many instances outputs over time and comparable data and results between
have not been developed for particular application in the South cities. This allows for benchmarking and for objective assessment
African local government environment generally, and cities of status quo, progress and needs.
specifically. In other words, they require modification to respond
to the particular conditions and dynamics of South African Since the toolkit also synthesises and standardises across
cities, the prevailing legislative framework, the emerging urban the infrastructure management value chain, it allows
policy of the country and the desired city strategic outcomes as standardisation within a city. As a case in point, several cities at
established in the National Development Plan. present prepare, maintain and update two asset registers: one
for compliance and financial reporting purposes and another for
This toolkit collates, interprets, synthesises and tailors these infrastructure planning and management purposes. This toolkit
discipline-specific standards, methodologies and techniques offers one data model that allows the production of one asset
for specific application in the South African city space. But the register which complies with the requirements of the Generally
toolkit is also much more than a synthesised compendium of Recognised Accounting Practice (GRAP) standards applicable to
good practice from elsewhere. It showcases emerging home- infrastructure and amenities, and also supports infrastructure
grown urban best practice. It moves beyond sound principles planning and management through infrastructure risk profiling,
and descriptions of best practice and offers practical advice and renewals scenario modelling, asset care budgeting and more.
case studies of real-world application of best practices in South
African cities.

03 FLEXIBILITY
Many of the urban infrastructure challenges apply to all cities with metropolitan authority. But cities differ greatly in population
and economic size, growth prospects, spatial configurations and footprints, infrastructure capacities and supply arrangements, and
financial, administrative and technical capacity. This toolkit accommodates unique conditions and varying city capacities by offering
various levels of practice, from emerging to competent, expert and ultimately, leading practice. This allows cities with limited
capacity, either generally or in a particular field, such as demand management, to adopt a level of practice suited to its resources,
abilities and challenges. Cities with advanced practices, significant resources and an appetite for innovation have the flexibility to
opt for higher levels of practice and to contribute towards advancements in practice that can be replicated across cities.

“ Cities with advanced practices, significant resources and an appetite for innovation have the
flexibility to opt for higher levels of practice and to contribute towards advancements in practice
that can be replicated across cities.”

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 National requirements for the delivery and management of infrastructure MODULE 1

04 SPATIAL DIMENSION 05 OPTIMISATION

Urban infrastructure systems are distributed and linked The toolkit offers practices for vertical and horizontal alignment
across space, serving many different customers at multiple across projects, programmes, asset portfolios and ultimately,
points across the city. This toolkit blends innovative spatial the organisation as a whole.
techniques with accepted infrastructure asset management

06
practice to properly profile customers and access to services;
NUANCED LEVELS AND STANDARDS OF
to determine and manage the demand for infrastructure and SERVICE FOR CITIES
limit unnecessary resource consumption; to identify critical
This toolkit recognises that levels and standards for cities
infrastructure and risks; to analyse revenue and the potential
should differ from those accepted in other environments and
for revenue optimisation; to limit construction costs and to
should in fact even differ within the internal structure of a city,
support spatially-based infrastructure investment planning
depending on factors such as land use, density and the purpose
and decision making. It equips cities with the tools necessary to
of a particular area.
implement the provisions of the Spatial Planning and Land Use
Management Act (SPLUMA).

07 EMPHASIS ON MULTIPLE DIMENSIONS OF VALUE-FOR-MONEY DESIGN AND APPRAISAL OF

INFRASTRUCTURE INTERVENTIONS FOR CITIES
Cities must be financially resilient. They must therefore ensure that on balance their investments in infrastructure will contribute
towards a productive asset base and towards positive financial performance results. Unfortunately not all investments, infrastructure
and services have revenue-generating potential, and not all citizens have the ability to fully contribute towards paying for services
rendered. It is, however, in the interests of the city as a whole, including all of its residents and customers, that inclusive growth is
achieved which benefits all in the city in a manner that is financially sustainable.

This requires not only the application of robust investment appraisal techniques to ensure that the municipality remains financially
resilient, but also an assessment of economic, social and environmental benefits and costs (including risks) for the municipality
and for the wider community. This toolkit provides cities with the necessary decision-making framework and techniques for
multidimensional appraisal of municipal investment proposals.

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MODULE 1 National requirements for the delivery and management of infrastructure

1.2 URBAN DE VELOPMENT AND

INFR ASTRUC TURE CHALLENGES

Cities are the target of strong critique, despite the many benefits that they confer on their citizens and the country at large.
They are generally considered to be fragmented spaces which place limits on social inclusion and prevent the optimum
economic functioning of urban spaces. The National Planning Commission (2012: 168) notes that cities are not sufficiently
productive and do not produce enough jobs. The general view is that cities are carbon-intensive, and consume resources at
unsustainable levels. Infrastructure capacities in many instances limit economic growth, and infrastructure coverage does
not extend to all urban customers. Lastly, in relation to urban infrastructure, there is increasing concern about the ability
of cities to care for the infrastructure under their control, with the attendant risks of infrastructure failure, service-delivery
interruptions, loss of income and increased expenditure to return the service potential of assets.

1.2.1 Fragmented cities

City blueprints suffer from past apartheid practices that led to This often resulted in the development of sterile housing
separate development for various races, the result of which is projects lacking the key ingredients for sustainable human
multiple settlements often disconnected from the functional settlements. Large distances from places of employment
structures of the core city and its primary nodes. This situation opportunities place strain on the finances of the poor who have
was aggravated over the past twenty years by rapid urban to spend disproportionate amounts of their time and income
expansion outpacing the roll-out of public transportation on transportation. As a case in point Johannesburg over the
coverage (Burdett and Surjic, 2011: 292), and indeed of municipal past twenty years, like most of the larger metropolitan areas
infrastructure services as a whole in many instances. in South Africa, expanded its spatial footprint far beyond the
requirements of natural population and economic growth. In its
Several factors drove this rapid urban expansion, some of which first 120 years (up to the advent of democracy in South Africa)
include the degeneration of inner cities and the preference for the city grew its footprint to 737 045 955 m2. In the 20 years
living in security estates. But the largest driver of urban expansion since, the city expanded its footprint by 181 864 944 m2. In short,
was the well-intended need to develop large-scale low-income it grew by 20 per cent, as shown in Figure 1.5.
housing settlements for the poor on the urban periphery. Reasons
for the choice of location include: the nature of the low-income The rapid expansion of city footprints also contributes to low
housing subsidy which requires a single detached dwelling on density. Gross density, measured in households per hectare,
its own stand of defined size; the availability of large tracts of ranges from as low as 0.37 in Mangaung to 8.27 in Johannesburg.
inexpensive land at the periphery and administrative preference Though Johannesburg has the highest density of any South
for larger developments (Boshoff, 2014). African city, it is low compared to most European cities or
cities in the global south (cities in the developing world). Low-
density urban sprawl requires massive investment in expanding
municipal civil and electrical networks, rather than increasing
the intensity of use of existing networks. Such development
forces the implementation of public transportation systems as
the poor do not have access to employment and other social
opportunities within reasonable distance.

Perversely, though, low densities translate into low ridership on

public transportation systems which limits the financial viability
of such systems. The Integrated Urban Development Framework
FIGURE 1.4: Sterile low-income housing development
(IUDF) notes that providing public transport infrastructure will
Example of a sterile low-income housing development, designed for remain very expensive due to the fragmented spatial structure
residential accommodation. Note the absence of public open space, and low densities that translate into low ridership and therefore
amenities, movement infrastructure or other land use such as retail. higher operating costs per passenger.

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 National requirements for the delivery and management of infrastructure MODULE 1

FIGURE 1.5: Rapid growth in

Johannesburg’s spatial footprint over the
past 20 years
Growth in Johannesburg’s spatial footprint
over the past 130 years, measured in 10-year
intervals. Areas in red indicate development
over the past 20 years, predominantly on the
urban periphery.

LEGEND

Age of General Plans (Years)

1-20
21-50
51-70
71-90
91-100
101+

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MODULE 1 National requirements for the delivery and management of infrastructure

LEGEND

Households/Ha
Low 0-3
Medium 3-7
High 7+

FIGURE 1.6: Typical South African city densities

Cape Town (left) has a gross density of 4.37 households per hectare,
and eThekwini (right) 4.18 households per hectare. Note the
dispersed spatial form of both cities.

1.2.2 Carbon-intensive, resource-consumptive cities

South African cities tend to be characterised by low-density, dispersed growth where control over land use takes preference
over urban form. The transportation system is dominated by an automobile-orientated, hierarchical network, with limited
provision for pedestrian sidewalks and cycle lanes.

Cities globally account for over 80 per cent of global resource systems. Such systems tend to rely on non-renewable
consumption and pollution. The South African Cities Network resources, and they directly or indirectly produce waste
(2013: 192) notes that South African cities record per capita co2 or harmful by-products. Potable water supply systems, for
emissions of between 3.7 and 7.5 energy-related tons, waste example, deliver water through engineered hydrological
production of about 1 000kg per person per annum, and high and hydraulic components. The water purification plants and
mean water consumption of 223 litres per person per day. pump stations in these systems are generally energy intensive.
Despite these high levels of resource consumption and carbon The common approach is to increase supply volumes to
production, cities are not very efficient. The Gini coefficient meet expanding demand – this applies not only to water, but
ranges between 0.67 and 0.75 for cities, indicating high levels of electricity as well. Indeed, water and electricity are categorised
inequality. Cities also struggle to create employment at the rates as trading services in the municipal environment, and cities
necessary to move the country forward in a meaningful way. rely on the sale of these commodities to generate a significant
portion of operating income.
Cities have over time generally shifted towards complex,
centralised conventional high carbon (CHC) infrastructure

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1.2.3 Insufficient investment in infrastructure for growth

For the past decade or so, cities in general focused their capital a ten-year period, 91 per cent of which should be invested in
budgets on eradicating service access backlogs. This was, and infrastructure for growth and for renewal of infrastructure.
remains, an important objective. But service access backlogs The South African Cities Network (2013: 101) estimated higher
have largely been eradicated, and cities also need to invest levels of investment needs still, but its findings echo those of
in infrastructure for growth. This includes natural population the World Bank. Cities need to increase capital spending on a
growth and economic growth. In the medium-to-long term, sustained basis, and the lion’s share of investment needs are for
investment in infrastructure for economic growth creates the growth and renewal of infrastructure.
scope for job creation and progressive eradication of poverty,
which in turn alleviates the pressure on cities to support Investment in conventional infrastructure systems and public
the urban poor. In the meantime, infrastructure capacities amenities such as electricity distribution, landfill sites and
remain strained. There are many reported incidences where libraries, though very necessary, is not sufficient anymore. South
development applications by large industries, offering both African cities now compete in the global arena for scarce skills,
employment opportunities and steady municipal revenues, fixed capital investment, and a share of economic activity. This
were delayed due to bulk capacity constraints to the point that requires strategic investments in non-traditional assets, services
such investors decided to locate elsewhere instead. The UIDF and activities, examples of which include Wi-Fi zones, the
notes that capacity constraints on electricity will limit economic development of aerotropolis precincts, public rapid transport
growth to three per cent per annum, and that funding for systems, development of complete streets in compact urban
stormwater infrastructure is woefully insufficient. The World spaces along desired lines, convention centres, more attractive,
Bank (2009: 22) estimated that the 27 largest municipalities inclusive, safe and connected open space, notable urban art,
would require some R271 billion in capital investment over and more.

FIGURE 1.8: Cape Town International Convention Centre FIGURE 1.9: BRT station
The Cape Town International Convention Centre, an example of a Johannesburg bus rapid transport passenger station. Source:
city strategic investment. Source: www.cticc.co.za Rea Vaya

FIGURE 1.7: An example of a complete street

An artist’s impression of a complete street, allowing for the safe, simultaneous use of the street by pedestrians, motorists and cyclists. Also
notice the combination of hard and soft landscaping elements, the use of colour in paving choices, clear signage and road markings, and
attractive and functional street furniture. Source: blog.aarp.org

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Investment for growth is, for purposes of this toolkit, classified into four categories, namely:

01 NEW DEVELOPMENT 02 REDEVELOPMENT

Generally referred to as “greenfields” development. Such Or “brownfields” development. There are two types of
development is unconstrained by existing fixed structures. redevelopment projects, namely urban redevelopment projects
Large-scale low-income housing projects, such as the one and upgrading of infrastructure systems to increase capacity.
depicted in Figure 1.4, are typical examples of greenfields Urban redevelopment projects, also referred to as urban
development. From an asset management life cycle point of renewal projects, entail the rehabilitation of city areas, typically
view new development is seen as asset creation if the resulting at the scale of a precinct, by renovating or replacing dilapidated
assets will be under the control of the city. buildings with new housing, public buildings, parks and
roadways, generally in accordance with an urban design plan.
Upgrading or augmentation of infrastructure capacities follows
on initial infrastructure installation, the capacity of which
must now be upgraded to meet the increased demand for
infrastructure following an intensification of land use. Examples
of infrastructure upgrades include the widening of roads and
increasing water distribution pipe sizes.

Brownfields development is constrained by the existence of

fixed structures on the site chosen for development, causing
additional costs to demolish current structures prior to
commencing with the proposed development. Redevelopment
tends to be costly. In addition to the costs of demolition and
removal of rubble, such investment activities are often located
in developed areas where limited space is available for on-site
storage of construction materials, causing higher transportation
costs. Where construction takes place in the road reserve or on
FIGURE 1.10: Example of an urban renewal project
building fronts adjacent to sidewalks, it may be necessary to
Presidential urban renewal project: Mitchells Plain CBD transport institute measures to protect pedestrians from the potential
interchange in Cape Town. Source: City of Cape Town dangers of falling building rubble and tools, and to limit the
spread of dust. It may also be necessary to implement traffic
calming measures around the site. Inner city redevelopment
or projects involving the formalisation and upgrading of
identified urban nodes often involves the temporary relocation
of residents which further adds to the cost of the project.

Redevelopment is generally seen as asset replacement within

the context of asset life cycle management, if the purpose of
the redevelopment is fundamentally the same as that of the
structure(s) it replaces.

FIGURE 1.11: Example of upgrading of infrastructure works

Upgrading of Johannesburg Water’s Olifantsvlei Wastewater
Treatment Works to treat residential and industrial effluent more
efficiently. Source: City of Johannesburg

1.13
 National requirements for the delivery and management of infrastructure MODULE 1

03 RETROFITTING
A form of capital investment which adds new features or
technology to existing structures or systems to increase
efficiency or to add new capability. Adding bus rapid transport
(BRT) lanes and stations, or cycles lanes to existing roads are
typical examples of retrofitting. Other examples are replacing
existing standard windows in a building to double-glazed
windows to conserve energy, or fitting solar panels to robots
in the roads networks after initial installation to switch to
renewable energy rather than to continue relying on coal-
based energy. From an asset management point of view, the
construction of BRT stations will be seen as new asset creation,
the portion of the road’s capacity consumed for installation of
the BRT station as decreasing the capacity of the existing road
and efficiency retrofits as increasing the capacity of existing
infrastructure or buildings.

04 RENEWAL OF INFRASTRUCTURE
Renewal is capital expenditure on an existing asset which
returns the service potential of the asset or expected useful life
of the asset to that which it had originally.

1.14
 MODULE 1 National requirements for the delivery and management of infrastructure

1.2.4 Insufficient asset care and the need for investment in asset renewal

While cities need to increase spending on infrastructure, there are strong indications that they are increasingly unable to
sustain investments in existing infrastructure. Infrastructure assets in the main are characterised by longevity – their life spans
are generally measured in decades. Yet they age, and their condition deteriorates. This is inevitable, and will happen even
when a city applies robust maintenance management practices. This is because the purpose of maintenance is to ensure that
assets reach their intended design lives and are able to produce at defined performance standards. But maintenance can at best
slow the effects of ageing. Moreover, many long-life civil infrastructure assets have parabolic condition deterioration curves.

This means that the rate of deterioration in condition is very The Cities Network (2013: 98−102) reports that on aggregate
slow, and that assets tend to perform according to expectations 48 per cent of the service potential or economic benefit of
for most of their lives without any significant service-delivery city infrastructure has been consumed, deferred maintenance
scares along the way. This tends to create a false sense of security for 2012 amounted to R4,277 million and that asset renewal
that assets are in good working order, and will remain so. Then, needs exceeded the total of capital subsidies received by R6,404
towards the end of their lives, the deterioration in condition million. A sizable renewals backlog is mounting.
accelerates. At this point it becomes necessary to reinvest in
infrastructure to return the service potential or expected life Why is this of concern? The citizenry of South Africa has over
of the asset to that which it had originally. Of course, many successive generations invested in the development of municipal
condition-related events can cause early impairment or failure and social amenities. These assets contribute to the fixed capital
of infrastructure assets before the end of their expected useful wealth of the country, underpin economic activity and enable
lives. Examples include flood damage, operator error, vandalism, the delivery of social goods. In fact, all economic outputs of
substandard construction and overloading. Once infrastructure cities are dependent in one way or another on the ongoing
deteriorates beyond a certain point maintenance becomes availability of this infrastructure. And as city infrastructures
insufficient and asset renewal becomes necessary. deteriorate, service-delivery interruptions increase, causing loss
of both investor and business confidence as well as loss of trust
The National Treasury, the World Bank, the Financial and Fiscal by the citizenry that government is capable of providing reliable
Commission, the South African Cities Network and others have services. Furthermore, infrastructure in poor condition impairs
in recent years expressed concern about the state of municipal city revenues and often leads to increased expenditures, such as
infrastructure and about the insufficiency of asset care, both in in the form of increases in water losses and higher-than-normal
asset maintenance and investment in renewal. repair expenses.

REMAINING USEFUL LIFE (%EUL)

100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0
0
% CONDITION - DETERIORATION

10
20
VERY GOOD 30
GOOD 40
FAIR 50
POOR 60
VERY 70
POOR
80
90
100

FIGURE 1.12: Typical parabolic condition deterioration curve of civil infrastructure

1.15
 National requirements for the delivery and management of infrastructure MODULE 1

TOO MUCH OR TOO LITTLE INFRASTRUCTURE?

“
This toolkit highlights the need to invest in infrastructure to
Poor asset care and deteriorating
eradicate service access backlogs, to support population and
infrastructure not only threatens our economic growth, and to create better functioning cities in
current way of life, it also limits our general. The discussion on asset care suggests otherwise: it
growth aspirations.” seems cities control asset portfolios of extents beyond their
capacity to maintain and renew. So is there too much, or
too little infrastructure? The answer is both: cities need to
continuously assess their asset portfolios for rationalisation,
Poor asset care and deteriorating infrastructure not only expansion and optimisation to achieve the desired balance
threatens our current way of life, it also limits our growth between investments in infrastructure that: enables economic
aspirations. Reliable infrastructure networks are a precondition growth; yields sufficient municipal revenue and supports social
for growth, as new infrastructure created will generally need to upliftment. Some infrastructure and social amenities become
be connected to existing bulk and distribution infrastructure. redundant over time due to factors such as technological
Any city administration and its residents wish for fiscal stability. obsolescence, system reconfiguration, evolving city structures
When infrastructure deteriorates beyond a certain point, the and changes in land-use patterns, and changes in community
cost of addressing the mounting renewals backlog can be so behaviour and expectations. This creates scope for asset
large that it threatens the fiscal stability of a city. This in turn may rationalisation and optimisation, rather than simply continuing
necessitate significant increases in rates and tariffs to finance to care for assets no longer needed. Cities will need to continue
renewal programmes, which have severe short-to-medium to invest in new infrastructure and the upgrading of current
term impacts on especially poor households and small business systems if they desire to remain competitive, attractive spaces
owners. for investment, settlement and economic activity.

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MODULE 1 National requirements for the delivery and management of infrastructure

C ASE STUDY 1:
The need for asset renewal –
just how badly can infrastructure failure affect us?

LOAD SHEDDING

Following years of deferred maintenance and renewal on its

power stations, the national grid was experiencing serious
strain by early 2015.

It has been estimated that capacity constraints and load

shedding has cost the country some R300 billion since 2008,
and resulted in 1 million lost jobs.

By late 2014 the power utility was rocked by the silo collapse at
the Majuba Power Station, and at the start of 2015 many units
in Eskom’s 27 power stations experienced technical faults which
Collapsed silo at the Majuba Power Station.
required unplanned maintenance. This forced the utility to
Source: Andriesvanheerden.wordpress.com
announce a three-month-long period of planned load shedding
while it tended to urgent maintenance. WATER SHEDDING

At some points it became necessary for Eskom to implement In 2014 the Rand Water pump station at Eikenhof stopped
Stage 3 load shedding while units were taken out of service for pumping water due to an electricity outage.
maintenance. Stage 3 load shedding involved up to nine hours
of power cuts in two blocks per day to prevent a total collapse This electricity outage was caused by a faulty substation. This
of the system. The impact of this was felt throughout the nation. caused major water outages in the southern and western parts
National economic output was affected, and economic growth of Johannesburg, Krugersdorp and the south-western parts of
and employment constrained. It affected people in all of their Tshwane. There was a backup substation, but it had been out of
activities, from being subjected to increased traffic congestion service since 2012.
due to non-functioning signalling systems to their preparations
for supper at night. As the system was recovering from the Eikenhof outage, alleged
cable theft led to electricity outage at the Rand Water Palmiet
But all of these emergency repairs were just that − a multiyear pump station that supplies water to Ekurhuleni. The water
programme of asset renewal requiring large investment is crises took weeks to resolve and affected dozens of suburbs in
necessary to move the national grid from beyond fire-fighting all three metros in Gauteng. Major hospitals, schools, factories,
mode into a position of reliable long-term supply. businesses and households were affected.

HEADLINE MESSAGES:
• Poor maintenance and failure to invest in asset renewal can adversely affect society at scale.
• There are generally no quick fixes for large failures of strategic infrastructure – sound analysis of infrastructure failure
modes and risks and proactive asset life cycle planning culminating in sustained and planned investment in asset renewal
is a precondition to our desired way of life.

1.17
Introduction
National requirements
to the Cities’
forInfrastructure
the delivery and
Delivery
management
and Management System MODULE 1
of infrastructure

1.18
MODULE 1 National requirements for the delivery and management of infrastructure

1.3 EMERGING SOUTH AFRIC AN

URBAN POLICY

There is increasing recognition that the future prosperity of the nation lies in cities, and cities have now become the focus of
several national strategies. The following strategies provide direction and principles to be pursued in planning for, and the
delivery of, infrastructure in urban spaces. The Spatial Planning and Land Use Management Act (SPLUMA) also provides clear
principles for infrastructure planning. Hence it is included in the policy analysis.

1.3.1 Spatial Planning and Land Use Management Act

SPLUMA provides a comprehensive system for spatial planning and land use management, a key objective of which is to
guide land development. The Act provides the following principles in relation to urban infrastructure planning and delivery,
which require:

01 SPATIAL JUSTICE 03 EFFICIENCY

Specific attention must be given to ensure inclusion of persons Land development must optimise the use of existing
and areas previously excluded, with a particular emphasis on infrastructure, and decision-making processes must minimise
informal areas, which must be incrementally upgraded. negative financial, social, economic or environmental impact.

02 SPATIAL SUSTAINABILITY
Land development must be undertaken within the fiscal, In support of the above principles, SPLUMA requires: the
institutional and administrative means of cities, and must profiling of engineering infrastructure and services in relation
result in viable communities. Land development must be to existing needs; the preparation of population forecasts and
promoted in locations that are sustainable, and urban sprawl the identification, quantification and location of infrastructure
must be limited. This includes consideration of all current and requirements for future needs. Importantly, the Act also
future costs to all parties for the provision of infrastructure and requires a municipality to determine a spatially-based capital
community services. expenditure framework for its development programmes.

1.3.2 National Development Plan (NDP)

The National Planning Commission articulates in the NDP a of transit oriented development, new urban development
vision of urban compaction and densification (2012:285) to be and infrastructure investment should be concentrated around
achieved through affordable, well-located, large-scale, high- corridors of mass transit (between poor townships and primary
density housing development in inner cities. Non-sustainable nodes) and around current and emerging economic nodes.
townships, typically historically black townships and informal
settlements, should be retrofitted with public infrastructure The National Planning Commission recognises that spatial
to pursue sustainability, land value capture and attract private transformation is an initiative that will require massive
sector investment. Informal settlements should be upgraded investment in fixed assets by the public and private sectors over
and economic hubs supporting a range of economic activity decades, but believes that with strong policy, political will and
should be developed where sufficient market size exists, or consistent implementation a change in direction is possible
arrangements should be made to integrate townships with the within five years.
wider urban economic network. Public transport and connecting
corridors of development should be prioritised for investment
to spatially link large concentrations of urban poor into the city
mainstream life. Applying internationally accepted principles

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 National requirements for the delivery and management of infrastructure MODULE 1

1.3.3 Integrated Urban Development Framework (IUDF)

The IUDF, still in draft form and taking its cue from the NDP, Public transport modes should be strengthened non-motorised
offers a new take on urban investment by the developmental transport advanced and modal and spatial integration pursued,
state (September 2014: 6). It requires the shaping of new which will require investments in infrastructure, ICT technology
spatial forms in settlement and movement characterised by and operational capacity. Nodal-corridor improvements should
urban spaces that promote spatial equality, integration and be pursued through public sector investment and settlement
multifunctionality, where transport is integrated and people densification along priority nodes and corridors, in pursuit of
can easily access varied economic and social opportunities, and transport-orientated development, and new growth should be
sustainable infrastructure systems that offer access to all and accommodated in these areas. Importantly, the IUDF recognises
that facilitate inclusionary economic growth. the following three concerns:

A lack of know-how on how Providing public transport In addition to the high cost
to achieve nodal-corridor infrastructure will remain very of planned densification and
improvements and associated expensive due to the fragmented mobilisation, there is currently
land value capture. It therefore spatial structure and low densities insufficient funding for capital
calls for an action research that translate into low ridership investment and maintenance of
programme to develop such and therefore higher operating urban infrastructure.
knowledge. costs per passenger. Hence public
transport subsidisation needs to
be debated nationally.

According to the Financial and Fiscal Commission (2013: 136) an additional R8 billion is required per annum to recapitalise water,
sanitation and electricity systems to perform adequately. The UIDF also notes that funding for stormwater infrastructure is woefully
insufficient, and that capacity constraints in electricity will limit economic growth to 3 per cent per annum.

1.20
MODULE 1 National requirements for the delivery and management of infrastructure

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 National requirements for the delivery and management of infrastructure MODULE 1

1.3.4 The Urban Network Strategy (UNS)

The UNS has been designed based on the concept of An urban hub will typically accommodate mixed land use, and
hierarchical connectedness. The strategy intends to strengthen offer high-density accommodation, varied services, attractive
disadvantaged townships and link them into the functional public spaces and an intermodal public transport facility. It will
structure of the city in which they are located. This is done function as a gateway precinct that will link the secondary urban
through the creation or strengthening of capital webs in network (the residential areas surrounding the urban hub) with
neighbourhood or urban hubs through public sector investment the established primary urban network (main city network). It
via the Neighbourhood Development Partnership Grant is dependent on the existence of public transportation systems
(NDPG). A capital web, in this context, is a demarcated area of linking these areas to primary nodes and also advocates
focused public sector fixed capital investment that leads to the investments along corridors and movement lines.
emergence or strengthening of an urban hub which serves as a
town centre for the surrounding residential areas.

FIGURE 1.13: Example of an urban hub with concentrated The UNS offers a methodology for the identification of urban
public sector fixed capital investment hubs at various geographic scales and lists qualifying criteria
Urban design framework for Winterveld, a disadvantaged for urban hubs to be recipients of funding from the NDPG.
township in the Tshwane metropolitan area. Note the structured, For priority townships, these include being located within 7.5
multifunctional design incorporating a variety of land uses km of the CBD or other primary node, linking to such through
including social facilities (e.g. clinic and library), retail, and housing. some public transport movement line and featuring a minimum
The design is concentrated at the intersection of two major roads to population threshold of between 125 000−200 000 people.
ensure optimum connectivity.

1.22
MODULE 1 National requirements for the delivery and management of infrastructure

1.4 EMERGING URBAN POLICY AND

IMPLIC ATIONS FOR INFR ASTRUC TURE
PLANNING AND DELIVERY
1.4.1 Spatial form and structure of cities: More compact cities

The spatial form of cities is to be contained, and the pace of urban sprawl must be slackened, resulting in higher-density,
compact urban forms. Land development should support transport-orientated development which concentrates housing
development around large public transport points in sufficient densities to ensure the viability of public transport systems.
Large-scale low-income development beyond the urban edge does not meet this requirement and instead the focus
should be on infill development and construction of low-income housing units in inner cities, at or around railway and BRT
passenger stations.

This vision has several implications for the planning and delivery
of housing, infrastructure and social amenities, including:

• A consideration of appropriate low-income housing products

for more dense settlements and the costs associated with
them
• Since the ideal location for low-income housing units is
within the urban edge, in inner cities and around transport
interfaces where plot sizes are generally smaller than at
the urban edge or beyond, it is likely that more housing
development projects will need to be implemented than
is currently the case – unless urban high-rise solutions are
implemented which, at scale, may be cost prohibitive
• The costs of infrastructure creation and/or upgrading for low-
income housing projects are likely to increase as development
will increasingly be undertaken in brownfields or dense
inner city environments – this requires cities to revisit cost
assumptions, to factor these into infrastructure investment
models, and to provide for such in budget estimates and
grant applications
• Levels of service choices for infrastructure and social
amenities for low-income housing will have to be appropriate
for dense, viable settlements. This generally means the
adoption of higher levels of service.
A word of caution on urban compaction and assumed cost
efficiencies. Urban compaction offers many benefits. A key

“
perceived benefit of compaction is cost efficiency: it is widely
Urban compaction offers many benefits. assumed that infrastructure can be provided more cost
A key perceived benefit of compaction is efficiently to dense or compact spatial forms. This is, however,
cost efficiency: it is widely assumed that not necessarily true in all places and instances. The UN Habitat
(2009: 160) notes that research on this topic highlights that the
infrastructure can be provided more
relationship between cost efficiency and compact form is much
cost efficiently to dense or compact more complex, and that studies of actual developments indicate
spatial forms.” highly variable unit costs between types of infrastructure,
topography, geotechnical conditions, available capacity and
service thresholds.

1.23
 National requirements for the delivery and management of infrastructure MODULE 1

Case Study 2 indicates the differences in the capital cost basket that could have been applied for more productive purposes.
for infrastructure and social services to low-income households On the other hand, increased densities also contribute towards
at various densities in greenfield, brownfield and inner city more viable public transport systems, and if people are placed
developments in Ekurhuleni. In all instances it is less expensive in locations where they more readily have access to economic
to develop at lower densities in a greenfields environment. opportunities, dependency on the state for financial support
There are also other factors that drive up the costs of high- is likely to reduce over time. Hopefully, in time, indigents with
density low-income developments in city environments. These access to real economic opportunities will be converted into
include higher land costs, higher costs of housing products ratepayers, expanding the revenue base of cities. Cities also
appropriate for dense development, possible lower future need to be realistic in planning for infrastructure, transport and
financial benefits for the municipality from lower property social amenities on the basis of desired densities. High density
rates income and possible lower economic returns from land cities in existence generally formed as a result of:

Lack of transportation systems Highly authoritative Countries with big populations

and continued population government systems coupled with rapid
growth over centuries industrialisation

None of these conditions exist in South African cities. Our cities are fairly young, our legislation does not allow for highly authoritative,
central planning, the majority of the population is already urbanised, the pace of urbanisation has relaxed and city population
growth rates have declined.

1.24
MODULE 1 National requirements for the delivery and management of infrastructure

C ASE STUDY 2:
Capital cost development at various levels of density

The Ekurhuleni Metropolitan Municipality in 2011 estimated

the capital cost basket of providing infrastructure and social
amenities at various levels of density in order to test the
viability of spatial proposals.

At low densities of 35 dwelling units per hectare (du/ha) the

capital cost basket of inner city development, at over R160
000, is double that of greenfields development. This is partly
because higher levels of service options must be selected for
dense, inner city environments, and partly because of higher
construction costs in inner city spaces. Construction activity in
inner city spaces often also requires traffic-calming measures.
Limited space for the onsite storage of construction materials The capital cost basket of all forms of development, whether
requires more deliveries and higher transport costs, and since greenfields, brownfields or dense inner city environments,
construction activity takes place in active spaces, additional declines at higher densities. But at no point does brownfields
measures are required to make sites safe for pedestrians. (or inner city development) become less costly than greenfields
Construction in inner city spaces also often involves demolition development. However, from 110 du/ha upward, the capital cost
and the removal of building rubble prior to construction of the basket of brownfields development costs less than greenfields
desired structures. These and other factors drive up construction development at 35 du/ha. The equivalent threshold for inner
costs in inner city environments. city development is from 200 du/ha.

R 180 000

R 160 000

R 140 000

R 120 000

R 100 000

R 80 000

R 60 000

R 40 000

R 20 000

R-
35 69 90 100 110 140 160 200
du/Ha du/Ha du/Ha du/Ha du/Ha du/Ha du/Ha du/Ha

Green Brown CBD

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 National requirements for the delivery and management of infrastructure MODULE 1

None of the comments in the preceding paragraphs of 1.4.1 should be interpreted as an argument to discourage urban
densification or compaction. Urban and infrastructure planners are simply alerted to cost dynamics. These should therefore
be factored into investment planning models and budget requests, having also considered realistic densities that can be
pursued over various planning horizons given population size, growth rates and land availability within the urban edge.

1.4.2 Increasing the level and quality of investment in infrastructure

and social amenities
The level of investment in infrastructure and social amenities Not only do cities need to raise the level of infrastructure
will need to be increased and sustained at levels sufficient to: investment and sustain it, they need to improve the quality of
eradicate service access backlogs; accommodate the economic capital investments. Capital is always limited, and investment
growth potential of cities; provide for population growth; choices should seek the greatest possible benefit package, in
retain the capital wealth vested in city assets and respond to line with the desires of a city’s growth and development strategy.
changing social and environmental needs. This requires a shift The “quality” of an infrastructure investment is determined by
away from the limited focus of providing basic services to the desired outcomes of a city’s strategy. The South African
ongoing capital investment in new asset creation, upgrading Cities Network identifies four outcome areas for city growth and
and reconfiguration of informal settlements and infrastructure development strategies, these being (SACN, nd):
system capacities, and renewal – both infrastructure systems
renewal and urban renewal.

01 PRODUCTIVE CITIES 03 WELL-GOVERNED CITIES

Job and wealth creation and fighting poverty form part of Well-governed and managed cities are desired, and focus areas
the scope of this outcome. Specific focus areas relating to this include public infrastructure investment and asset management.
outcome include economic development and transport. It also

04
requires cities to invest in economic infrastructure.
SUSTAINABLE CITIES

02 INCLUSIVE CITIES
City development strategies must recognise and respond
to the reality of finite resources, and respond positively to
This outcome seeks quality of life for all urban dwellers, climate challenges. Key priorities include:
including access to employment and economic opportunities, • Renewable energy and waste-to-energy strategies
infrastructure services and social amenities. The environment
• Biodiversity and energy conservation
should be safe and secure allowing access to, and participation
in, the broad range of social benefits that cities offer. This • Green building standards
outcome is concerned with social inclusivity and includes • Sustainable public transport
multiple focus areas, some of which are transport, infrastructure • Moving towards carbon-neutral cities
services, housing and human settlements and land use planning
and management. The notion of sustainability is not limited to green matters
only. It also includes:
• Quality of life

“ The environment should be safe and secure

allowing access to, and participation in, the
• The cost of living
• Efficiency in providing infrastructure services
broad range of social benefits that cities offer.” • The costs of providing sustainable services

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MODULE 1 National requirements for the delivery and management of infrastructure

Quality of infrastructure therefore has multiple dimensions, and appraisal techniques such as Net Present Value (NPV), Internal
infrastructure investments must pursue multiple objectives. Rate of Return (IRR) and Benefit-Cost Analysis (BCA). This
Increasingly, cities will, for example, have to migrate towards is to ensure that cities make financially sound investment
greener infrastructure technologies, and will have to identify decisions that do not adversely affect their long-term financial
green retrofitting opportunities in their infrastructure renewal sustainability.
programmes in order to meet international climate change and
carbon targets. To ensure full social integration, higher levels
of service for both infrastructure and social amenities should
be pursued across the board, financial viability permitting. To
ensure financial viability in the longer run, cities will have to
balance investment for social purposes and those that increase
their revenue base. Infrastructure investments should pursue
wealth creation, limiting dependencies on cities’ coffers and
those of other spheres of government.

This Cities Infrastructure Delivery and Management System

(CIDMS) Toolkit supports investment decision making in line
with stated city strategic outcomes and objectives. It provides
guidance on how to construct an asset management system
This toolkit also supports planning around appropriate levels
that is both responsive to city strategy and informs and
and standards for urban spaces by offering an extensive range
strengthens city strategy. This is achieved through an asset
of levels and standards of service hierarchies for municipal
management policy and strategy aligned to the city strategy,
infrastructure and social amenities, as well as methodologies
and a multicriteria decision support system to evaluate the
for:
benefits and costs of investment opportunities, again aligned to
strategic outcomes. These matters are dealt with in Module 2: • Spatially determining appropriate catchment sizes and
Establishment of an Asset Management System of this toolkit. travelling distances for municipal services
In addition, this toolkit also provides methodologies, guidelines • Spatially profiling the state of service provision in a city
and quantitative techniques for the financial and economic
appraisal of capital investment proposals in Module 8: These tools and techniques are presented in Module 4: Levels
Investment Appraisal and Planning. These include financial of Service and Customer Profiling of this toolkit.

It is natural to want to spread a city’s capital budget across all wards, thereby ensuring spatial equality. Indeed, this is the approach
followed by most cities over the past decade or so. But this approach is not in the best interests of a city. This is because:

Capital funding will always be A city’s structure changes over Infrastructure investment is
limited time, and various suburban one of the few, but powerful
spaces will invariably find levers a city has at its disposal to
themselves in different phases influence urban shape, internal
of development, decline and structure and fabric
renewal, necessitating different
infrastructure responses

1.27
National requirements for the delivery and management of infrastructure MODULE 1

1.28
MODULE 1 National requirements for the delivery and management of infrastructure

1.4.3 Spatial prioritisation and focusing of infrastructure investment

These factors all point to the need to prioritise infrastructure investment spatially:

01 CAPITAL FUNDING SPREAD EQUALLY OVER

CITY SPACES HAS NEGLIGIBLE IMPACT 02 CHANGING CITY STRUCTURES AND
DIFFERENT PHASES OF DEVELOPMENT
Funding, whether in public or private organisations, is always Over time, city structures tend to migrate from a monocentric
limited relative to needs. Economists refer to this as the basic to polycentric form. A monocentric city structure is one with
economic problem. Applied to cities, there is increasing a dominant core, the Central Business District (CBD), which is
recognition that there simply isn’t sufficient funding available the hub of economic activity and employment in the city. A
to spread equitably across a city, and for which scale capital polycentric city is generally one with a weak, diffused core, and
investment benefits become insignificant. several competing primary nodes. Employment opportunities
in a polycentric city is dispersed.
To illustrate this point, consider a city with a municipal area
spanning 2 000 km2, which equates to 200 000 ha. Assuming that As cities migrate from a monocentric to polycentric structure,
the city has a sizeable capital budget of R10 billion per annum, various areas at suburban scale invariably find themselves
and it wishes to spread that equally across the municipal space, in a state of development, growth, decline or renewal.
the investment per hectare amounts to a meagre R50 000/ha, This necessitates a spatially nuanced urban planning and
which generally is not sufficient to provide infrastructure and infrastructure asset management set of responses responsive to
social amenities for even one household. This reality forces cities both the overarching strategic spatial vision for the city, and the
to prioritise infrastructure investment spatially, and to focus needs of a suburban area depending on its development status.
investments in particular spatial locations, to achieve value-for- For example: if a city desires a strong urban core and the CBD has
money investments. been in decline for a few years, the appropriate response would
be to develop a CDB design framework with the objective of

03 INFRASTRUCTURE INVESTMENT AS A LEVER

revitalising the CBD, typically as an urban renewal programme.

A city should have a strategic spatial vision for itself, which Such a programme would typically require focused, sizeable
should be articulated in its Spatial Development Framework capital investment in that space to, for example, upgrade or
(SDF). In a South African city, there will be several hundred renew infrastructure capacities, introduce additional social
thousand to millions of actors simultaneously making decisions amenities, reconfigure street layouts or retrofit the CBD to
on accommodation and movement that may shape a city other improve public transportation and develop complete streets.
than the one desired in the SDF. Fortunately a city has few,
but very powerful instruments at its disposal to ensure the
successful implementation of its spatial vision. These include
control of land use, development applications, and the type,
size and location of infrastructure investment.

The principle of spatial prioritisation is increasingly

acknowledged and applied in city spaces. The National
Treasury’s Urban Networks’ Strategy is founded on the
principle of hierarchical connectedness, and calls for the spatial
prioritisation of investment within defined spatial zones of
intervention. The Neighborhood Development Programme of
the National Treasury produced the “Urban Hub Design Toolkit”
to assist municipalities to identify, evaluate and develop hubs in
relation to the overarching urban network.

“ ...there is increasing recognition that there

simply isn’t sufficient funding available
to spread equitably across a city...”

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 National requirements for the delivery and management of infrastructure MODULE 1

FIGURE 1.14: Urban network concept

The urban network concept, indicating network
elements such as the CBD, corridors and
townships to be connected to developed areas, as
well as desired interventions for various network
elements Source: NDP Urban Hub Toolkit

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MODULE 1 National requirements for the delivery and management of infrastructure

The National Treasury’s Integrated Cities Development Grant This toolkit offers various techniques and tools to assist city
(ICDC) likewise has a spatial orientation, requiring investments planners in constructing robust SDFs. These take into account
to contribute to, among other aspects, high-density corridor infrastructure capacities; the current state of service provision;
development. SPLUMA by its very nature also adopts a the condition of infrastructure and risk exposure; and the capital
spatial approach. SPLUMA and the various urban policies and cost of infrastructure development across the surface of the
strategies discussed in preceding sections generally indicate municipal area.
a preference for spatially-focused infrastructure investment
in informal settlements and their incremental upgrading, in
inner city spaces, in primary nodes, and along transit-oriented
development corridors.
MONOCENTRIC CITY

POLYCENTRIC CITY

CBD
CBD

FIGURE 1.15: Configurations of monocentric and polycentric cities

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 National requirements for the delivery and management of infrastructure MODULE 1

1.4.4 Towards greater resource efficiency

Cities will increasingly need to become carbon-neutral spaces.

They will also need to take steps to become more resource
efficient, especially with regards to the consumption of water
and energy, as well as focus on curbing the generation of
waste. This will necessitate incremental green retrofitting or
reconfiguration of existing infrastructure systems and municipal
building portfolios. Future infrastructure planning and
investment should increasingly focus on reducing and reusing
scarce natural resources, for example by converting waste to
energy. This will be challenging. Municipal potable water and
electricity distribution systems to date have tended to be supply
focused, and have become major sources of revenue for cities.
The introduction of green building codes and the installation of
site-specific energy technologies such as solar panels and heat
pumps at scale will reduce dependency on carbon-intensive
power plants and will assist in cities becoming more carbon
friendly. The implementation of such programmes for low-
income housing units is also likely to be advantageous to cities
as the benefits of savings on bulk purchase costs of electricity
that is supplied to these households either free or at subsidised
rates will alleviate cost pressures. But when the approach is
followed with medium-to-high income households, cities are
likely to suffer revenue losses.

Greater resource efficiency also means optimising existing

infrastructure capacities, and managing the demand for
infrastructure services by means of spatial optimisation.
Tools and techniques for doing so are provided in Module 5:
Demand. The choice of location of infrastructure development
also influences the cost of construction, due to factors such as
slope and soil conditions. Module 5 further provides a spatial
capital cost premium development surface tool to assist cities
to make optimum locational choices for infrastructure, all other
things being equal.

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MODULE 1 National requirements for the delivery and management of infrastructure

1.5 HOW TO USE THIS TOOLKIT

1.5.1 Overall approach and lay-out of this toolkit

Government’s Infrastructure Delivery Management Standard (IDMS) is aimed at improving performance on the delivery of
infrastructure. The overall premise is that good planning is a prerequisite to the delivery of quality infrastructure. This toolkit
follows suit and adopts an infrastructure asset management approach to ensure robust planning that will result in relevant,
viable city infrastructure and social amenity portfolios of assets.

The CIDMS Toolkit comprises 12 modules as shown in Figure Armed with knowledge and informed estimates on current
1.16. Module 1 describes key national requirements for urban infrastructure capacities and needs, current and future levels
infrastructure, and establishes the normative framework for of service and demand, it is possible to proceed with lifecycle
CIDMS. Module 2 introduces the CIDMS and describes the planning. Module 6 provides processes and techniques for
approach to identifying stakeholders and their requirements, developing lifecycle strategies and plans per asset portfolio.
and to establishing AM policy and strategy. Module 3 presents Module 7 offers guidance on the preparation of AM plans and
the asset data model and provides guidance on the profiling of how these feed into and are directed by the city strategic AM
infrastructure for purposes of developing a state of city assets plan. A key output is the city infrastructure programme delivery
report that establishes current infrastructure capabilities, risks, plan and aligned performance plan. Note that this first version of
constraints and lifecycle needs. the toolkit does not focus in detail on infrastructure operations
and maintenance, though these are critical activities within the
Module 4 provides the approach and techniques used to asset life cycle. The focus is instead on capital works such as
profile customers, determine their needs and to establish new construction, upgrading and renewal. However, operations
levels and standards of service with respect to infrastructure and maintenance are still included in life cycle strategies
and community service packages. Module 5 focuses on future and planning and financial feasibility assessment, dealt with
demand, inclusive of estimating and spatially apportioning in Module 6: Lifecycle Planning, appraisal and budgeting.
future demand as well as demand management strategies for Module 7: Asset management plans, also includes in its scope
all major infrastructure services. Module 5 also emphasises the operations and maintenance.
need for sustainable practices, planning for climate change
resilience and the adoption of green infrastructure technologies
as appropriate.

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National requirements for the delivery and management of infrastructure MODULE 1

FIGURE 1.16: Lay-out and

logic of the CIDMS toolkit

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MODULE 1 National requirements for the delivery and management of infrastructure

Module 8 provides the approach and methodology for Module 12 describes AM enablers. It defines key roles,
infrastructure investment appraisal and prioritisation. Several competencies and organisational arrangements for AM. It
asset portfolios in the city space, such as roads and stormwater, describes the approach to the review and improvement of the
are not revenue-generating and conventional appraisal AM system, offers guidance on the packaging of AM plans,
techniques are not suitable to assess proposed projects. and presents high-level functionality requirements for AM
Likewise, some insight and interpretation is required to assess information systems.
the benefits of activities such maintenance expenditure, risk
reduction or other “soft” benefits such as social upliftment. On Many topics are included in the scope of this toolkit, and most
the other hand, attractive project proposals are sometimes are dealt with thoroughly in it. In several instances though,
associated with negative externalities such as environment good manuals and guidelines already exist which extensively
degradation, noise pollution and other adverse impacts. and authoritatively deal with specialist topics peripheral to this
This module therefore defines benefits and costs for major toolkit. Users of this toolkit are referred to these sources for
infrastructure services. It offers investment appraisal techniques additional reading where considered appropriate. Nonetheless,
at the level of project proposals. Ultimately, though, cities are it will be possible for users of this toolkit to use this source to
faced with capital constraints and have to make difficult choices fully design, implement and operate the Cities Infrastructure
regarding which projects to include in capital budgets from Delivery and Management System.
a range of infrastructure services. To this end Module 8 also
presents a multi-criteria analysis system to enable prioritisation.

Modules 9 – 11 articulate the infrastructure procurement and

delivery system, inclusive of contracting methods, processes,
controls and governance arrangements. This suite of modules
also provides guidance on the packaging of programmes and
projects in line with the requirements of mSCOA.

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 National requirements
National forfor
requirements the delivery
the deliveryand
andmanagement
managementof
ofinfrastructure
infrastructure MODULE 1

1.5.2 Words
This toolkit uses many words such as assets, capital and maintenance, which users will immediately recognise, and others
which they may not. It is natural to accept familiar words at face value, and to ignore the definitions for such words. This
is not advisable. The practice of infrastructure asset management, as noted before, is a multidisciplinary one, involving
engineers, accountants, financial analysts, economists, social science practitioners and urban planners. All attach their own
meaning to words.

This toolkit concerns itself with planning and delivering The complexity doesn’t stop there. What in practice is an asset:
infrastructure assets and other community assets such as the totality of a city’s potable water supply system, consisting
recreation facilities and cemeteries. But what is an “asset”? When of many facilities such as water treatment plants, reservoirs,
asked for a definition of an asset, most people will probably pressure towers and pump stations, or the facilities themselves?
say an asset is something you own that is of value to you. But Or is an asset the major elements comprising facilities, such as
the accounting definition of an asset is very different. It states pumps and motors? What if a city doesn’t have just one, but
that an asset is a resource owned or controlled by an entity as a several water supply systems? Detailed guidance on what is
result of past events and from which future economic benefits considered an asset is provided in Module 3: Asset data model
or service potential are expected to flow to the entity. Analysis and infrastructure profiling.
of this definition shows that ownership is not necessary, one
merely has to have control over the resource. And it is not The take-home message here is that users are advised to read all
enough that the resource has value right now, it has to deliver definitions offered in this toolkit very carefully. Defining terms
benefits in the future. In the case of assets such as infrastructure are generally provided in this toolkit wherever they first appear,
systems and social amenities, the future span of those benefits and a glossary of all terms is included at the start of the toolkit
must be for a period longer than twelve months. for easy reference.

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MODULE 1 National requirements for the delivery and management of infrastructure

1.6 SUMMARY

The future prosperity of South Africa will be determined by the ability of cities to: accelerate economic growth, facilitate wealth
and job creation and develop well-functioning and attractive urban spaces that promote social upliftment and inclusion,
which are also climate resilient and well governed.

Infrastructure systems and social amenities are critical enablers This toolkit presents best practice processes and techniques to
to achieving these outcomes. Accordingly, cities need not only assist cities to specifically deal with current urban challenges
to increase the pace of investment in infrastructure, but improve and to respond to the vision articulated in the National
the quality thereof, and then sustain both the higher levels Development Plan and emerging urban policies. Practices are
and quality of infrastructure investment. This requires across- nuanced to enable the adoption of a relevant suite of practices
the-board investment to eradicate service access backlogs, depending on the capacity of each city.
to reshape cities to become more inclusionary, to function
better and to become more resource efficient. It also requires
investment in infrastructure for population and economic
growth. Existing infrastructure is the backbone of the city, and
requires ongoing investment in renewal to ensure that the
growth aspirations of cities are not impaired.

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National requirements for the delivery and management of infrastructure MODULE 1

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MODULE 1 National requirements for the delivery and management of infrastructure

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1.41