Investment propels development

All major capital programmes are taken through the City’s stage-gate process on their way to implementation to ensure strategic optimisation and effective delivery

The City of Cape Town stimulates growth by investing in suitable economic and social infrastructure to support economic development.

Since 2012/13, the City has invested over R51 billion in infrastructure development. Of this, R24 billion has gone towards new infrastructure development and R27 billion to the refurbishment of existing infrastructure. Resources are allocated according to a strategic infrastructure asset management plan and asset register. Approximately R29 billion is earmarked for investment in infrastructure over the three financial years from 2021/22 to 2023/24. In 2020/21, the City developed its Infrastructure Planning and Delivery Framework. It builds on the infrastructure programme of the past few years to ensure that there is a pipeline of infrastructure investments that will help re-energise the economy and stimulate economic growth in the wake of Covid-19 and the national lockdown. To ensure optimal investment, all infrastructure projects proposed for inclusion on the capital budget are assessed against an implementable delivery plan to

ascertain implementation readiness, tender readiness (i.e. must be on the City’s demand plan), strategic alignment, spatial targeting, and implementation capacity.

In addition, all major capital programmes are taken through the City’s stage-gate process on their way to implementation to ensure strategic optimisation and effective delivery.

Infrastructure investment insights The processes associated with the Medium-Term Integrated Infrastructure Investment Framework and MSDF are used to obtain valuable information on the cost of the infrastructure investments required to facilitate growth that would respond to actual needs.

In line with national requirements, the City has assigned a champion for the implementation of the Cities Infrastructure Delivery and Management System (CIDMS). CIDMS is a South African National Standard (SANS) 55001-compliant asset management system tailored for application in South Africa’s metropolitan cities.

Developed by National Treasury’s Cities Support Programme – in partnership with the cities of Cape Town, eThekwini and Johannesburg – the CIDMS is designed to: • help cities optimise performance across the urban infrastructure value chain by offering best practice processes, techniques and tools • achieve strategic objectives and desired outcomes • serve as an integrated system that incorporates the requirements of national policy and strategy, legislation, relevant standards as well as best practice in multiple disciplines • support good governance and transparency, including making and communicating informed decisions. National Treasury also developed a bespoke CIDMS implementation strategy for the City. Adopting this strategy presents massive potential benefits for the administration and offers ratepayers the assurance that new assets will be well looked after. It will also allow the City to benchmark itself against other cities worldwide and ensure that it has a world-class asset management approach. All of this will be possible because the CIDMS strategy will allow the City to access useful statistical data for informed decision-making, plan better for asset replacement and capital spend, optimise the deployment of human capital, extend the useful life of assets, leverage accurate data about the condition/location of all assets, and maintain complete records of maintenance carried out and the associated costs per asset.

Water system resilience Strengthening, refurbishing and maintaining Cape Town’s bulk water supply system remains a key focus for the City. A number of strategic interventions are already in place to achieve this, such as a computerbased drought management plan. The City also continues to play a key role in the Western Cape Water Supply System, by reviewing and finalising water allocations and water-use licensing applications from the regional catchment system. Moreover, the administration collaborates closely with neighbouring municipalities and the national Department of Water and Sanitation to utilise regional water supplies more effectively.

The City has a detailed process flow to ensure that its water and sanitation data are accurate and its management systems are effective. It continues to invest in repairs and maintenance of its water and sanitation infrastructure, which makes a noticeable difference to Cape Town and its people. Infrastructure is required to supply citizens, communities, businesses and industries with potable water, as well as to collect, treat and discharge wastewater, to manage stormwater run-off, and to prevent flooding.

Energy supply Of course, another vital resource that requires functional, efficient infrastructure is electricity. The City has been hard at work in maintaining and expanding electricity access across the municipal area.

The City’s 30-year switchgear maintenance programme continues across town. In FY 2020/21, R26.98 million was invested in circuit breaker replacement, and a further R129.87 million in the like-for-like replacement of ageing infrastructure. Distribution networks continue to be expanded in response to new developments and load densification, with an investment of R111.1 million having been made in this regard.

A 15-year network development programme is also underway, with R137.8 million invested in the upgrade and refurbishment of substations, underground cables and overhead power lines across the metro. In addition, the City continues to run various programmes aimed at providing stable electricity services to informal settlements, backyarders and subsidised housing developments. These services require various network upgrades, maintenance or replacement at various times, and are constantly monitored to reduce the potential for power failures in these areas.

Electricity project highlights in 2020/21 included: • the ongoing provision of subsidised electricity connections to informal settlements and subsidised housing developments • investment of R19.8 million in 1 721 new connections for informal settlements and backyard structures, as well as infill electrification projects • the continued roll-out of electricity services to backyard dwellers at Council rental units • investment of approximately R3.4 million of Urban Settlements Development Grant funding and R16.4 million of Informal Settlements Upgrading Partnership Grant funding to ramp up electricity services.