Municipal Innovative. Infrastructure Financing. Programme. Conference Unlocking Infrastructure Financing to Accelerate Service Delivery

Transcription

1 Municipal Innovative Infrastructure Financing Conference 2018 Municipal Innovative Infrastructure Programme Date: June 2018 Host: Ekurhuleni Metropolitan Venue: Emperor s Palace, Kempton Park Unlocking Infrastructure Financing to Accelerate Service Delivery 1

2 Executive Director: Municipal Finance, SALGA Mr Simphiwe Dzengwa The South African Local Government Association (SALGA) will host the Municipal Innovative Infrastructure Financing Conference that will bring together municipalities, industry experts and key stakeholders in local government infrastructure funding. The conference aims to Facilitate Shared Learning between Municipalities through creating a platform to explore, deliberate and share ideas on innovative funding mechanisms for South African municipalities. Funding for local government capital infrastructure in South Africa is limited, considering the constitutional mandate to provide basic infrastructure services to communities. Given the limited resources in the form of grant funding and own revenue, municipalities have to find innovative streams of investing in infrastructure and augmenting capital budget deficits in order to accelerate the eradication of infrastructure backlogs and to fulfil their developmental role. The objectives of the conference are to; Be a one stop shop between municipalities and financiers To showcase best practices on municipal innovative infrastructure financing To provide a focus on the evolution of municipal trading services and how innovative infrastructure financing can help municipalities with this evolution. 2

3 Day 1: Wednesday, 13 June 2018 Session 1: Welcome & Setting the scene (09H00 11H15) Facilitator: Cllr Mpho Khunou, Chairperson of SALGA Municipal Finance Working Group 07H00 09H00 Registration 09H00 09H20 Opening and Welcome Cllr Mzwandile Masina, Executive Mayor: Ekurhuleni Metro 09H20 09H45 General Role of municipalities in catalysing the economy through infrastructure investment 09H45 10H10 How municipalities contribute to the macro economy through leveraging capital infrastructure 10H10 10H20 Introduction of the Hon Minister of COGTA 10H20 11H00 The IUDF and identifying intermediate cities as zones of growth how to effectively enable capital funding of infrastructure projects in these municipalities Cllr Parks Tau, President: SALGA Mr Mcebisi Jonas, Special Presidential Special Envoy on Investment Cllr Mpho Khunou National Chairperson, Municipal Finance Working, SALGA Hon Andries Nel, Deputy Minister: COGTA 11H00 11H15 Reflection by SALGA Mr Simphiwe Dzengwa, Executive Director, SALGA 11H15 11H45 Media Briefing (Acting CEO, Dep. Minister, President, Presidential Envoy) Tea Break 3

4 Session 2: Policy Environment & Funding Gap Needs (11H45-13H00) Facilitator: Mr Subesh Pillay, Gauteng Legislature 11H45 12H30 Legislation and Policy Environment for Municipal Infrastructure Financing: The Municipal Borrowing Policy Framework Amendments to the DoRB The IUDF Grant Development Charges Ms Judy Nkosi, Director, National Treasury Mr Steven Kenyon, Director, National Treasury Ms Cassandra Nkuna, Director, National Treasury 12H15 13H00 An understanding of the new policy reforms in municipal infrastructure financing. Infrastructure Investments needs just how much does local government need to invest in? Investment for economic growth, backlogs to be eradicated How much Local Government invest must invest to drive sustainable development and economic growth 13H00 14H00 Lunch Mr Chucheka Ben Mhlongo, Executive Director, Infrastructure Finance: DBSA 4

5 Session 3: Credit Worthiness, what kind of Municipality can borrow (14H00 17H00) Facilitator : Ms. Shiva Makotoko, Inca 14H00 14H10 Introduction of the Hon Minister of Finance 14H10 14H30 A broad overview of the macroeconomic climate and potential of borrowing in local government 14H30 15H00 Business solutions Infrastructure challenges for rural municipalities and delivery coordination at Local Government 15H00 15H30 Cllr Mpho Khunou National Chairperson, Municipal Finance Working, SALGA Hon Nhlanhla Nene, Minister of Finance Dr Xolani Ngobese, Municipal Infrastructure Support Agent MISA 15H30 16H00 16H00 16H30 Tea Break Municipal Credit Rating & Institutional Arrangements This session will discuss the following: Methodologies applied by the Credit Rating Agencies; A dedicated rating tool for SA Municipalities Municipal Credit Worthiness for Urban Municipalities. How municipalities with declining industries and demarcated spaces are managing credit worthiness. This session will discuss the following: Stable and predictable revenues; Operating Surpluses Financial Planning Financial health and good governance Mr Sefotle Modiba, Director: Group Treasury, City of Johannesburg Ms Sylvia Chahonyo, General Manager, South Africa Moody s Investors Service Ms Kgomotso Letsatsi, Executive Director, Matmap Investments Mr Sibonelo Mbele, Chief Investment Officer Finance, Pension and Major Projects, ethekwini Metropolitan Municipality 16H30 17H00 Day 1 closing remarks Mr Simphiwe Dzengwa, Executive Director, Municipal Finance: SALGA 18HOO - 21H00 Networking Cocktail (Hosted by DBSA CEO) 5

6 Day 2: Thursday, 14 June 2018 Session 4: Infrastructure Funding And Changing Climate (09H00 10H30) FACILITATOR: Ms Telly Chauke, SALGA 09H00 09H30 09H30 10H00 This session will discuss the following: Exploring Opportunities for Domestic Local Investments Innovation Finance for Sustainability This session will discuss: Bringing financiers and municipalities together to realise local climate action. 10H00 10H30 Building for future SA Cities City Features: Certainty and uncertainty 10h30 11h00 Tea Break Mr Gray Marguire, Chief Director, Environmental Sustainability: Department of Environmental Affairs & Development Planning Mr Jay Bagwan, Executive Manager: Water Research Commission Ms Rebecca Cameron, Professional Officer, Climate Change, Energy and Resilience: ICLEI Sithole Mbanga, CEO, South African Cities Network 6

7 Session 5: Break Away Sessions (11H15-12H30) Project Preparation Session (Sponsored By Vodacom) Problem Statement The capacity of municipalities to access development projects feasible enough to attract private finance is limited. Global impediments to greater private infrastructure investment at municipal level include; - Capacity Constraints - Lack of Awareness Is proper project preparation the key to unblocking infrastructure bottlenecks? What project preparation facilities are available to local government? Proposals on a dedicated Project Preparation Facility: SALGA s Role? Is there alignment between political vision and management implementation? Expected Outcomes Better understanding of alignment between physical planning, infrastructure planning and financial planning. Know how on development of Bankable projects Matchmaking of prospective projects Lenders And Investors Session (Sponsored By Absa) Problem Statement South Africa has fairly mature and well developed financial sector. Private infrastructure finance options are readily available dependent on the municipality s ability and capacity to leverage these financing tools. What Innovative financing instruments can municipalities explore to fund their infrastructure projects? Expected Outcomes A discussion on the different financing tools with their suitability for each category A perspective from financiers on the sector s financing appetite and their key observations Matchmaking of prospective projects 12H30 13H30 Lunch Fiscal Tools To Fund Infrastructure Session (Sponsored By Old Mutual) Problem Statements All municipalities in the country struggle to spend their infrastructure grants. How can Municipalities improve on their capacity to interpret grant conditions as articulated in the DORB grant frameworks? What key supply chain interventions may be initiated by municipalities to execute infrastructure projects linked to grants? Grant funding for repairs and maintenance of infrastructure, what is available? Expected Outcomes How to initiate public infrastructure projects on private land Understanding of the extent to which litigation is impeding spending on roll out of infrastructure projects Understanding of the new developments in the reform of infrastructure financing, what possible support can be provided to municipalities, A DORB Technical forum? 7

8 Session 6: Break Away Sessions (13H30-14H45) Project Preparation Session (Sponsored by Vodacom) Problem Statement The capacity of municipalities to access development projects feasible enough to attract private finance is limited. Global impediments to greater private infrastructure investment at municipal level include; - Capacity Constraints - Lack of Awareness Is proper project preparation the key to unblocking infrastructure bottlenecks? What project preparation facilities are available to local government? Proposals on a dedicated Project Preparation Facility: SALGA s Role? Is there alignment between political vision and management implementation? Expected Outcomes Better understanding of alignment between physical planning, infrastructure planning and financial planning. Know how on development of Bankable projects Matchmaking of prospective projects Lenders And Investors Session (Sponsored by ABSA) Problem Statement South Africa has fairly mature and well developed financial sector. Private infrastructure finance options are readily available dependent on the municipality s ability and capacity to leverage these financing tools. What Innovative financing instruments can municipalities explore to fund their infrastructure projects? Expected Outcomes A discussion on the different financing tools with their suitability for each category A perspective from financiers on the sector s financing appetite and their key observations Matchmaking of prospective projects 14H45 15H30 Tea Break Fiscal Tools To Fund Infrastructure Session (Sponsored Old Mutual) Problem Statements All municipalities in the country struggle to spend their infrastructure grants. How can Municipalities improve on their capacity to interpret grant conditions as articulated in the DORB grant frameworks? What key supply chain interventions may be initiated by municipalities to execute infrastructure projects linked to grants? Grant funding for repairs and maintenance of infrastructure, what is available? Expected Outcomes How to initiate public infrastructure projects on private land Understanding of the extent to which litigation is impeding spending on roll out of infrastructure projects Understanding of the new developments in the reform of infrastructure financing, what possible support can be provided to municipalities, A DORB Technical forum? 8

9 Session 7: Report Back and Closure (15H30-16H30) Facilitator: Mr Lucky Leseane, SALGA 15H30 16H15 Commission Report Back and Recommendations - a concise report on the commissions discussions and pronouncements made. Mr Lucky Leseane, Provincial Executive Officer : SALGA Gauteng Office 16H15 16H30 Closing Remarks Mr Simphiwe Dzengwa, Executive Director, Municipal Finance: SALGA Closure, Debrief for Masterclass DAY 3: Friday, 15 JUNE 2018 Session 8: Half Day Masterclass (08H00-13H00) Facilitator: Mr James Matsie, Salga 08H00 10H30 12H50 13HOO A high level technical training on aspects discussed in plenary and commission. The session is designed for municipalities to delve into detail and have a one on one conversation on specific situations they are encountering in process of building projects and financing them. Detailed Methodology for Sub-Sovereign States A Session on Public Private Partnerships Municipal Pooled Financing Process Funding Regional Facilities for Water 10h30 11h00 Tea Break Way Forward and Closure Mr Daniel Mazibuko, Associate Analyst Sub- Sovereign Group, Moody s Mr Andre Kruger, Project Manager, African Investment and Integration Desk: Nepad Business Foundation Mr Geoff Makhubo, Concillor, City of Johannesburg Mr Tshepo Ntsimane, Head of Infrastructure Finance for Metros, Secondary Cities and Water Boards: DBSA Lunch, Departure 9

10 Notes 10

11 Notes 11

12 Contact Details: Telephone: (012) Fax: (012) Physical Address: Menlyn Corporate Park, Block B 175 Corobay Avenue Cnr Garsfontein and Corobay Waterkloof Glen ext11 Pretoria Social Media Facebook: South African Local Government Association (SALGA) YouTube: SALGA TV 12