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Home > How to: The built environment value chain > Project preparation & implementation

Implementation

01
Follow-through into implementation
The planning, programming, project preparation and resourcing components of the built environment value chain have been elaborated on in the previous sections of this Toolkit. This section introduces the link to the implementation activities in the built environment value chain.
There is an urgent requirement to move from programme and project identification, preparation and financing to implementation of prioritised, feasible projects within the catalytic urban development programme that leverage further private and household investments and cumulatively build towards the achievement of the agreed spatial transformation outcomes. This section refers to the implementation of municipal projects (which is a subset of the pipeline of intergovernmental projects) within the catalytic urban development programme(s). The implementation of private sector related projects will be initiated and managed on a programme level and not at municipal project level.

There should be a direct and visible link between what is planned and budgeted, and what gets implemented and delivered, and how this contributes to the agreed outcomes – a more sustainable, productive, inclusive and diverse city which will culminate in economic growth and a reduction in poverty and inequality. The implementation of programmes and associated projects should result in transformed urban environments in priority precincts. Implementation also encompasses the procurement approach and risk mitigation (cash flow, time and quality).
Importantly, implementation is not limited to capital projects. A number of initiatives may be identified in Integration Zone and precinct plans that are required to leverage private sector and household investment, through for example, reforming the regulatory environment to remove hindrances to private sector and household investment in priority precincts or to put in place disincentives to locating investment outside of the targeted areas in a manner that undermines the outcomes sought. This may include aligning and restructuring economic development incentives as well as the removal of planning regulatory constraints to reduce financial risks and release land on to the market. Much work has been done to stabilise the regulatory environment in our cities. A next level of reform is now needed to tailor these systems to the transformational needs of our cities. If these reforms are not formalised into projects that are planned, monitored and have a defined output, they may not be implemented timeously as part of a suite of interventions in a precinct to achieve transformation.
02
Guidance for implementation

The implementation requirements for each precinct will be unique as it will relate to a particular place, its vision, current conditions and other factors.  The following guidance represent local and international lessons learned from previous precinct implementations:

01

Land assembly, land release and approvals
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02

Securing land
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03

Finance and financial arrangements
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04

Phasing/staging
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05

Ongoing market campaign
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06

Active partnerships
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07

Stick to the precinct plan vision
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Catalytic programme & resource planning
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Land assembly, land release and approvals
International experience has shown that delays in land assembly are the biggest stumbling block in implementation. This results in significant time delays and may result in waning interest in the planned programmes and projects. On the other hand, investors and developers view proposed metro programmes and projects with seriousness once land has been assembled and the necessary approvals have been secured. From the perspective of investors and developers, this significantly de-risk programmes and projects, and signify commitment and capability on the part of metros, to be solidified once there is metro budget commitment for the requisite infrastructure development.
Scope of approvals to be secured
The scope of approvals to be secured is both project- and place-dependent, and can include the following:
  • Land development applications inclusive of Category 1 and Category 2 applications (see table below)
  • Environmental authorisations
  • Transport authorisations
  • Water use licenses
  • Wayleave applications
  • Heritage exemption approvals
Table: Land development applications as per SPLUMA regulations
Category 1 applications Category 2 applications
Establishing a township or extending the boundaries of a township Subdividing (dividing a piece of land into two or more portions) any land where such a subdivision is expressly provided for in a land use scheme
Amending an existing scheme or land use scheme by the rezoning of land Consolidating any land (joining two or more pieces of land into a single entity)
Removing, amending or suspending a restrictive or obsolete condition, servitude or reservation registered against the title of land Simultaneously subdividing and consolidating land
Amending or cancelling the whole or part of a general plan of a township Seeking the consent of the municipality for any land use purpose or departure or deviation in terms of a land use scheme or existing scheme, which does not constitute a land development application
Subdividing and consolidating any land other than a subdivision and consolidation, which is provided for as a Category 2 application Removing, amending or suspending a restrictive title condition relating to the density of residential development on a specific erf where the residential density is regulated by a land use scheme in operation
Closing any public place permanently
Any consent or approval required in terms of a condition of title, a condition of establishment of a township or condition of an existing scheme or land use scheme
Any consent or approval provided for in a provincial law
Guidelines for land assembly, land release and approval:
  • Proactively reserve municipal-owned in spatially targeted areas of intervention.
  • Ensure that sufficient budget is available for land assembly and for the necessary approvals to be obtained (some of which may require detailed studies to be completed).
  • Provide sufficient time for land assembly and obtaining approvals.
  • Land is on the programme or project critical path – no physical development is possible without land. Schedule land assembly and approval activities accordingly.
  • As appropriate, align and restructure economic development incentives and remove planning regulatory constraints to reduce financial risks and release land on to the market – this may include adopting a formal policy for land release.
Securing land
Once land has been assembled, the risk of land invasion materialises that may cause programme or project delays, and result in additional expenditure not budgeted for, for example in legal fees and in resettling informal settlers.
Guidelines for securing assembled land:
  • Decide appropriate security arrangements for land to be assembled upfront, which may include, as appropriate, fencing, signage, CCTV monitoring and on-site security presence, or at least regular drive-by patrols.
  • Provide sufficient budget for securing land.
  • Consider alternative, active temporary use for land prior to construction activity, for example by utilising land for parking – this not only effectively secures the land, but can also generate income to pay for security arrangements and other programme or project expenses.
Finance and financial arrangements
Financing catalytic programmes and projects can be complex, multi-year endeavours requiring both staged and blended financing arrangements, and an enabling environment.
Guidelines for finance and financial arrangements:
  • Ensure that the metro’s financial policy environment is supportive of the long-term financial strategy for the integration zone, precinct or other spatially targeted area. This may require adjustments to, amongst other, the metro’s borrowing policy and / or its developer contribution policy.
  • Where necessary to secure or attract private finance in spaces where there is private sector hesitancy, consider effective development bonusses or rebates in conjunction with robust urban design concepts backed by feasibility studies and demonstrated efforts at de-risking the programme or project.
Phasing / staging

The implementation of precinct plans (or integration zone plans) is a multi-year initiative and should be staged with consideration to the following:

Guidelines for phasing / staging:
  • Where there are significant funding constraints, consider phased development, where first phases can produce serviced land that can be sold to in turn finance further development.
  • Prioritise infrastructure development; this demonstrates significant commitment to investors. Additionally, installing infrastructure in the early stages will generally come at lower cost compared to the effort of undertaking infrastructure development later in higher-density, more built-up environments where costs escalate due to limited on-site availability for bulk materials that necessitate more frequent transport, more effort is required to provide safe and healthy construction environments, and where additional measures such as traffic calming is required.
  • Prioritise all development that will give the precinct its unique character or advantage, or that will enable it to function as intended. For example, an Urban Hub cannot function as such without new or upgrading of existing PT facilities and access routes, and NMT linkages between the stations and the local areas should be implemented simultaneously.  In other words, a complete movement system must be implemented.
  • Consider how to activate land and land parcels through interim land use to attract interest in the area, improve security and generate revenue. Some options include open markets and temporary parking facilities.
  • Analyse the delivery requirements, timeframes and dependencies between projects within the programme, as well as critical path activities within major projects, and develop a realistic phasing strategy.
Ongoing marketing campaign
Precinct development or upgrading is often measured in years. Within that timeframe, interest in the programme or project may wane, and new and competing priorities and/or development may attract more attention and resources. To ensure ongoing support, continued marketing is required.
Guidelines for continued marketing:
  • Develop a marketing strategy tailored to identified stakeholders and their requirements;
  • Establish an online presence, with easy access to the precinct master plan, urban designs and phasing plan, as well as contact details;
  • Communicate and celebrate progress e.g. securing approvals, ground breaking, infrastructure development, securing key investors and anchor tenants;
  • Determine how the community will be on-boarded and kept involved through ongoing reference groups, consultation and engagement and other means;
  • Marketing at investor fairs; and
  • Erecting scaled signage on site to demonstrate what the future development or upgrading will look like; and
  • Place activation – find interim uses for land parcels or sub-precincts to be developed in later phases, to attract people and energy, and so increase place activation and desirability.
Active partnerships
Large-scale precinct development or upgrading require the active participation of multiple actors, including the metro, national and/or provincial government, state-owned enterprises, local businesses and community groups.
Guidelines for active partnerships:
  • Secure all necessary partnerships, identify the roles and responsibilities of partners, coordination requirements and governance arrangements, and agreements required; and
  • Where it is the intention to establish special rating areas, the processes for doing so needs to be activated as early in the implementation phase as possible, to on-board City Improvement District (CID) entities as soon as possible as key partners in the precinct.
Stick to the precinct plan vision
Many challenges, risks and distractions will arise over the course of the period over which the precinct plan is implemented, that may lead to implementation fatigue, loss of interest or deviation from the precinct vision. Some of the challenges, risks and distractions may include difficulty in securing the necessary funding, and/or a large investor that places demands that alters the precinct vision.
Guidelines for sticking to the vision:
  • A robust precinct plan, inclusive of its vision and objectives and supportive urban designs, should be clear in its vision and intent, but suitably flexible to accommodate changes over time – after all, a precinct development or upgrading results in long term changes and impacts within its geographic boundaries. Be clear which objectives are non-negotiable to achieving the vision, and which objectives, arrangements and actions are negotiable or even more favourable than originally anticipated;
  • Establish clear plans and actions for achieving stated precinct objectives, assign resources and responsibilities for achieving these, and review as and when appropriate; and
  • Continued and effective marketing, and keeping stakeholders informed and aligned to the vision, coupled with demonstrated incremental progress and success, minimises distortion of the precinct vision over time.