Novus3 supporting the City of Tshwane Built Environment Performance Plan 2020/21

3 April 2020

The Built Environment Performance Plan (BEPP) aims to achieve an alignment between various built environment grants assigned to the municipal space, together with enhancing the capital planning and implementation of targeted urban investment. One of the key processes within the BEPP includes the annual capital expenditure planning and budgeting process, which is facilitated by means of the City of Tshwane Capital Planning System (CAPS) – a configured and rebranded version of the Novus3 Capital Planning Prioritisation Performance system (CP3).

During 2019/20 National Treasury announced the termination of the BEPP. In light of this, the City will be submitting the last BEPP for the 2020/21 financial year with a particular focus on establishing a transitioning out of BEPP framework. This is to ensure that institutional and planning reforms identified through the process of the BEPP strengthens the range of plans with specific reference to the SDF; IDP and the annual budgeting process.

The key highlights of the 2020/2021 BEPP include:

  • The current alignment of the BEPP to municipal process, together with promoting intergovernmental planning which aligns to the Inter-Governmental Framework Act (IGRFA) and the District Coordination Model declared by The President of the Republic of South Africa;
  • Determining a Theory of Change which guides the City’s various planning and budgeting processes through the establishment of a desired set of long-term goals and strategies;
  • Instituting a transition out of BEPP framework and a detailed work plan to guide the annual IDP and budgeting process. This ensures the actioning of BEPP principles through existing legislated processes followed within the City;
  • An innovative approach to the establishment of a spatial planning and targeting profile of the City. This includes a clear understanding of the current spatial structuring matrix; priority development areas (PDA’s) and the alignment of human settlement (housing) together with transport planning and investment initiatives;
  • How the City is aligning its capital expenditure with respect to the Urban Network Structure, Priority Investment Areas, MSDF Nodal and Corridor programmes and catalytic land development programmes;
  • The inclusion of a Long-Term Financing Strategy and Model to allow for sustainable resourcing of capital investment;
  • Determining affordable funding envelopes spanning over a 10-year period and understanding the City’s capital demand in line with sustainable investment principles; and
  • How the City has matured in the institutional process through the establishment of the capital budget and BEPP-related steering committees and task teams;

By utilising the true potential of CP3-CaPS, through institutional wide buy-in of the software as a service, it was possible to effectively navigate the budgeting and planning cycle.

This empowered the City to respond successfully to the 2020/21 BEPP Framework as established by National Treasury.

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Capital investment prioritisation

Novus3’s innovative and celebrated approach to prioritsation, stems from significant multi-disciplinary experience that was gained in-situ at local government level, firmly rooted in an understanding of the built environment. Through the use of the CP3 system, our clients have the ability to appraise large and complex capital demand requirements within minutes, resulting in defendable, evidence based budgets. The results are often challenged and stress tested by politicians during political debates – the process therefore repeatedly have been proven to be beyond reproach and consistently reliable.

IDP Process Plan and change management

Novus3 provides advisory services to our clients, supporting them in setting up the correct structures and mechanisms internally which becomes the basis for sustainable and collaborative planning and implementation. The IDP process plan has a number of inter-related complexities that plays out on a cyclic basis year-on-year. Pre-empting and reacting to upcoming requirements in the IDP process pro-actively, renders the process into a constructive and demonstratable outcomes-based process.

Public sector budget and fiscal impact simulation

The financial management of public sector funding at local government level, even on a small scale, often rivals the complexity encountered at huge, listed, multi-national companies in the private sector.. Local governments have to operate and make smart financial decisions within a complex and exceedingly stressful environment. Compliance with legislation, policy frameworks and accepted accounting practices have to be maintained. Simulating these complexities allows our financial executives to ask “What if?” questions and reliably peer into the future with a long-term understanding of the implications of decisions that are taken in the present.

Spatial Development Frameworks

Novus3’s specialised knowledge and access to bespoke and purpose-made spatial and other analytic tools, provided the company with the opportunity to develop unparalleled experience in the development of Capital Expenditure Frameworks (CEFs) by bringing a practical angle to the formulation of implementation plans. A realistic roadmap is provided on how to realise the objectives developed in the Spatial Development Frameworks of the municipalities where we were involved. In return for the development and submission of these CEFs, these municipalities were awarded with significant additional funding from central government.

Built Environment Performance Plans

As part of the National Treasury City Support Program, Novus3 was regarded as specialist advisors on the built environment value chain – a process embedded in Built Environment Performance Plans (BEPPs). BEPPs were intended to form the bedrock of municipal capital planning and management for larger cities (metros). Novus3’s specialist knowledge played a big role from an advisory and capacity building perspective during the development of a number of BEPPs that were developed for a number of metros.

Infrastructure Capital Investment Plans

Infrastructure investment has to find a balance between addressing historical backlogs and inequalities, maintaining satisfactory prevailing functionality and level of service and strategically investing in unlocking future opportunities and growth whilst acknowledging a plethora regulatory constraints, policies and rules. In the process, certain strategic outcomes are sought which may manifest spatially strategically or environmentally. Our infrastructure capital investment plans provide the strategic guideline and provide the recommendations to find this balance.

Capital Expenditure Frameworks

Novus3 has developed multiple capital expenditure frameworks (CEFs) for multiple municipal clients and are regarded as the sector leaders in this area. These CEFs are financial roadmaps providing clear direction on financial constraints, the most important capital and investment priorities, an understanding of the unique local fundamentals and a sustainable response to these multiplicity of challenges.

Project preparation processes

The efficient planning and execution of projects from the moment of idea conception until the last brick has been laid has been the subject of study from as early as the reign of the Roman Empire. The governance process within the public sector has to play an important role in the journey of project preparation. The under-expenditure of allocated funding regrettably is often the only element in the built-environment that consistently re-occurs. All too often, funding is allocated to projects that simply are not ready to proceed to the next step. Novus3’s CP3 system is used to aid clients in the progressive steps involved in the project preparation journey.