Close: 3 July 2017 STATE OF CITY FINANCES 2018 DANGA MUGHOGHO 20 JUNE Danga Mughogho State of City Finances
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1 STATE OF CITY FINANCES 2018 DANGA MUGHOGHO 20 JUNE 2017 Close: 3 July 2017 Page 1 of 6
2 Contents Close: 3 July Contents... 2 Introduction... 3 Background... 3 Chapter Heading... 3 Chapter Background... 3 Scope of Work... 4 General Tasks... 5 Source of the Data... 5 Methodology... 5 Deliverables... 5 Reporting and Approval of Chapters... 5 Timeframes... 5 Payment Schedule... 6 Expertise Required... 6 Resources & Costing... 6 Criteria for Selection... 6 Submissions & Enquiries... 6 Page 2 of 6
3 Introduction The South African Cities Network (SACN) was established in 2002 by the Minister for Provincial and Local Government, in collaboration with the mayors of South Africa's largest cities and the South African Local Government Association (SALGA), with a mandate to: Promote good governance and management in South African cities; Analyse strategic challenges facing South African cities, particularly in the context of global economic integration and national development challenges; Collect, collate, analyse, assess, disseminate and apply the experience of large city government in a South African context; and Promote shared-learning partnerships between different spheres of Government to support the management of South African cities. The primary thematic areas of the SACN focus on the city as a productive, well-governed, sustainable and inclusive space. The work of the SACN aims to assist and guide cities to become effective drivers of local and national development within a context where the rapid growth of city populations requires increased service delivery and improved city management. Finances and the management thereof is fundamentally important in enabling the city to perform its functions effectively. Background The South African Cities Network (SACN) has been involved in reporting on the state of its member cities finances (State of City Finances reports - SoCF) over a number of years. The SoCF is a publication aimed at creating and disseminating knowledge on financial matters specifically relating to cities. Three SoCF reports have previously been produced (the last in 2015). SACN is now embarking on producing the 2018 edition of the report. This is a call for proposals for one of the chapters that will form part of the 2018 SoCF Report. Chapter Heading Financing Climate Change Adaptation and Resilience. Chapter Background Climate change has been identified as a key risk to South Africa (Second National Submission to UNFCCC). National policy and regulatory responses to climate change adaptation include the promulgation of the National Climate Change Response Policy (NCCRP) White Paper, the creation of the South African Risk and Vulnerability Atlas (SARVA), the development of the Long-Term Adaptation Scenarios, South Africa becoming a signatory to the Paris Agreement and, in line with UNFCCC recommendations, the development of a National [Climate Change] Adaptation Strategy, a process that is currently underway. Climate change adaptation is an important consideration for municipalities: from a risk perspective, the Department of Environmental Affairs (DEA) has identified that climate change and variability already have a direct impact on the ability of municipalities to meet [their] objectives. Furthermore, extended dry seasons, increasing temperatures, extreme storms and sea level rise result in drought, crop failure, livestock death, damage to infrastructure, runaway fires and will further entrench poverty with the increase of vector-borne disease, disabling of existing livelihoods and damage to household assets. 1 Cities are addressing climate change adaptation and resilience at several levels. The cities of Cape Town, Durban, Johannesburg and Mogale City all have explicit climate change strategies and plans in place that address adaptation. 2 In addition, some of these cities are part of initiatives such as 100 Resilient Cities (Cape 1 DEA, SALGA and CoGTA, Guide to integrating climate change risks and opportunities into municipal planning. 2 City of Johannesburg (2009) Climate change adaptation plan; City of Cape Town Framework for Adaptation to Climate Change; City of Durban (2014), Climate Change Strategy, 2014; Mogale City, Climate change framework and operational climate change plan strategy. Page 3 of 6
4 Town and Durban) 3 and the C40 Cities Climate Leadership (Durban, Johannesburg, Cape Town, Tshwane) 4 which address climate change adapation, or participate in multi-sector initiatives such as CIPSL s City Innovation Platform on resilience. 5 Further information can be found in several local government publications: SA local government response to climate change (SALGA, 2016) SA Cities Network, Synthesis report: analysing SA cities climate change resilience DEA, SALGA and CoGTA, A guide to integrating climate change risks and opportunities into municipal planning The potential costs of climate change impacts are high. In 2007/08, for example, floods in the Western Cape Province cost the government in excess of R1 billion each year, and road repairs resulting from extreme weather events used up almost 97% of the total transport budget of the Province in Losses of R2.5 billion were incurred (damage to property and roads) through eight extreme weather events in the Eden District alone, between 2003 and The costs to municipalities of the recent droughts, particularly in KwaZulu-Natal and the Western Cape, are yet to fully assessed but are likely to be high. While these weather-related events cannot be attributed to climate change, the impacts mirror those predicted by climate change models (DEA, Long-Term Adaptation Scenarios). Addressing the costs arising from climate change impacts and the financing of the measures necessary to adapt to climate change is therefore a central aspect of any city s ability to build the necessary resilience to climate change. This chapter will therefore look at the financing of cities climate change adaptation plans and resilience. Scope of Work The focal product for this assignment will be the successful completion of Chapter 8: Financing climate change adaptation and resilience. A narrative based on the following topical headings should be contextualized within the cross cutting issues of governance, the sustainability of municipal finances, as well as reporting on any innovations (or opportunities for innovation): An overview of the challenges and opportunities faced by cities in financing climate change adaptation, including the financial risks to cities in not adequately addressing climate change adaptation, such as liabilities arising from inadequate infrastructure management; Budgeting for climate change adaptation costs. This includes a summary of processes used by cities to estimate the costs of climate change adaptation and incorporation of those findings into cost-benefit analyses that form part of the budgeting process; The interaction between national-, provincial- and city-level finances in addressing climate change adaptation, addressing cross-governmental issues such as water security, disaster risk management, resilient infrastructure and health; and Best practice examples, both locally and internationally, of financing mechanisms used to address adaptation, including but not limited to an analysis of the role of insurance in such mechanisms. The chapter must provide a basis for comparison across the nine largest cities in South African (the 8 metropolitan municipalities and Msunduzi). The publication should be pitched to the targeted audience of municipal practitioners generally, the private sector and investors Page 4 of 6
5 General Tasks The general tasks include: i. Liaise with the project coordinator (Cornerstone Economic Research). ii. Attend all required workshops (2 author s workshops) and meetings. iii. Provide bi-weekly updates to the project coordinator. The SACN Authors and Data Guide will apply to all of the chapters, and end notes should be used for supplementary remarks and references. Source of the Data The chapter should be based on credible research and reliable data. Researchers are encouraged to use budget and expenditure data from the National Treasury Local Government Budget Database. Any research that is drawn from should be high quality research underpinned by reliable and credible data. Any such research and data collected for the purposes of writing the chapter must be submitted to SACN. Methodology The typical methods to be employed include primary and secondary data analysis, document analysis, case studies, modeling, key informant interviews, and expert opinion. SACN products are meant to be evidencebased, and as such must be explicit about citing evidence, and identifying any assumptions, speculations or uncertainties. As the publication is meant to reflect local government perspectives and point of view, it is important that as far as possible these are actively sought and obtained through appropriate research methods. Deliverables The following are the deliverables expected: A chapter of between 5,000 and 7,000 words in length, excluding end notes, figures, graphics and illustrations. The chapter should be written to a high professional standard. Data and supporting documents on which the chapter is based. An executive summary of 400 words of the key messages in the chapter. Reporting and Approval of Chapters The Contractor will liaise with the project coordinator (Cornerstone Economic Research) throughout the drafting phases of the chapter, and respond to engagements with chapter reviewers, designers and communications teams during this period. Final approval of draft chapters will rest with SACN. Timeframes The timelines for the completion of various sections in this chapter are as follows ACTIVITIES DATES Submit draft project outline 11 August 2017 Submit first draft of chapter 15 November 2017 Receive comments from Project coordinator and SACN November December 2017 Review comments received December 2017 Submit final draft 16 February 2018 Page 5 of 6
6 Payment Schedule The Contractor will be paid according to the following payment schedule and upon submission of an invoice, progress report and, where relevant, a time sheet: The Contractor shall receive 20% of the fees payable upon receipt of chapter outline (estimate August 2017). The Contractor shall further receive 30% of the fees payable upon the scheduled submission of the first full draft of the assigned SoCF chapter (estimate November 2017). The Contractor shall further receive 50% of the fees payable upon the scheduled submission of the final draft of the assigned SoCF chapter (estimate February 2018). Payment will be triggered by the successful evaluation and approval by the project coordinator and SACN. Expertise Required Contributors should display relevant experience, technical expertise or capabilities with respect to the following: Municipal financial issues and experience working with municipalities on this. Good understanding of municipal management and related issues. Understanding of the South African environmental policy environment. Resources & Costing A maximum of R incl. VAT will be allocated to this assignment. As part of the submission bidders should provide a project programme including a cost breakdown providing an hourly/daily rate per assigned resource. Bidders should note that project workshops will be in Johannesburg. The SACN will cover the verified travel costs for those service providers travelling from outside of Gauteng. Criteria for Selection Bids will be adjudicated on relative value for money gauged against the following criteria: Professional fee structure, 20% Proven track record to deliver on similar projects, 40% References of personnel that will work on the project; 20% The level of involvement of previously disadvantaged individuals; 20% Bidders are encouraged to be competitive in their pricing, and take note of the guidance on resources and costing indicated above. Submissions & Enquiries The award of this tender will be based on value for money, which will be determined on the basis of the assessment criteria indicated above. As the SoCF project is calling for a number of chapter contributions service providers can bid for more than one chapter, but should do so in separate proposals. Interested service providers should provide the SACN with: A brief proposal indicating the topic heading which the bid is responding to, the proposed approach and project plan (specify any particular capabilities, innovations, or limitations); An all-inclusive time-based quote for the activities as outlined above (prices should include VAT, and daily / hourly personnel rates applicable must be indicated clearly); and Copies of corporate profiles and personnel CVs to support the evaluation. Proposals and quotes (or enquiries before 26 June only) should be sent by to sadhna@sacities.net by close of business on 3 July Page 6 of 6
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