Finance MMC Geoffrey Makhubo, delivering his 2015/16 Budget speech, clearly signalled Joburg’s commitment to the Corridors of Freedom programme, allocating over one-third of the City’s three-year capital budget to the departments and agencies responsible for implementing the programme.
Finance MMC Geoffrey MakhuboFinance MMC Geoffrey Makhubo briefs journalists ahead of his 2015/16 Budget speech at the Sandton Convention Centre (Photo: www.joburg.org.za).Addressing councillors, citizens and the media at the Sandton Convention Centre on Tuesday, 26 May, MMC Makhubo tabled a R52.6-billion budget for 2015/16, including a R9.9-billion capital expenditure budget – up from R7.7-billion the previous year.
At the same time, he announced a three-year capital budget of R29-billion, saying the City’s finances were in good shape and that it was sticking to its commitment to spending R100-billion on capital projects over a 10-year period.
Ratings agency Fitch, he noted, had recently reaffirmed Johannesburg’s long-term rating at “AA-(zaf)” with a stable outlook. He quoted Fitch as saying that it “expects activity generated by the implementation of the city’s R100-billion, 10-year investment plan to support the performance of the City of Joburg’s economy, and to lead to an average GDP growth of 3% per annum over the medium term”.
MMC Makhubo made it clear that the Corridors of Freedom programme would be a main beneficiary of its capital spending, identifying it as one of four key priorities for 2015/16.
The Corridors programme seeks to overcome the legacy of apartheid town planning by optimising development in and around high-intensity movement corridors, starting with the Empire-Perth Corridor connecting Soweto to the CBD, the Louis Botha Corridor between the Joburg CBD, Alexandra, Sandton, Diepsloot and Ivory Park, and the Turffontein Corridor.
Makhubo said Strategic Area Frameworks had been developed for all three corridors, outlining land, infrastructure and urban design elements to support mixed-use developments in high-density nodes along each corridor. The average population density in the three corridors, he noted, was expected to increase more than six-fold in the long term, from 7 000 to over 41 000 people per square kilometre.
R11.9BN CAPITAL BUDGET FOR ECONOMIC GROWTH CLUSTER
To enable the full implementation of the Corridors programme, Makhubo allocated a three-year capital budget of R11.9-billion to the Economic Cluster of departments, including R1.3-billion for Development Planning, which is responsible for the overall co-ordination of the programme, and R3.5-billion for Transport.
The bulk of Transport’s R3.5-billion capital budget will be spent on the phase 1C expansion of the Rea Vaya bus rapid transit (BRT) network – the backbone of the Corridors programme – as well as on the associated roll-out of non-motorised transport infrastructure.
Over the past few years, the City has built dedicated pedestrian and cycling pathways in various communities, including Braamfontein, Brixton and Soweto. Makhubo said these would continue to be rolled out in other communities such as Orange Farm, Ivory Park, Auckland Park and Rosebank.
“In the Sandton CBD alone we are investing about R150-million to widen sidewalks, add cycle lanes and introduce, not only the Rea Vaya BRT, but also dedicated public transport lanes for all forms of public transport,” he said.
“We are doing this because if we want Sandton to continue to grow as a business, financial and retail hub, it needs to be easily accessible and the streets need to be attractive and safe for all road users.
“The pain you are enduring on Katherine Drive today, as we construct the dedicated lanes for Rea Vaya, will be worth it in addressing congestion in Sandton. In future, more people will opt for Rea Vaya as a reliable public transport option.”
R829-MILLION CAPITAL BUDGET FOR JDA
Makhubo also allocated a one-year operating budget of R99-million and a three-year capital budget of R829-million to the Johannesburg Development Agency (JDA), one of the lead implementing agencies of the Corridors programme.
“The JDA plays a development facilitation role on behalf of various city departments and will implement projects including inner city renewal, Rea Vaya roll-out and other developments in priority implementation zones.”
Earlier in his speech, Makhubo said the City had “reached an important stage in the development of post-apartheid Johannesburg where concerted efforts of planning, stakeholder mobilisation and resourcing have culminated in an implementation phase.”
The community-based planning approach that had been introduced in Region E in 2013 had been rolled out to all regions, the Finance MMC said, enabling the City to appreciate the diverse needs of all its communities.
“Yet we all share the common collective goals of a liveable, sustainable and resilient City … This budget is grounded in the reality of a City that is growing ever more confident in its ability to meet the needs of its communities while progressively rolling back the economic and social legacy of its apartheid past.”