Major land developments projects Major infrastructure development Debt capital market Concluding remarks

Transcription

1 GROWING MANGAUNG TO GREATER HEIGHTS Extended Provincial EXCO Lekgotla 27/28 AUGUST 2015

2 Presentation Outline Major land developments projects Major infrastructure development Debt capital market Concluding remarks

3 Urban Development The 3 regional nodes, including CBDs, remain important generators of economic activity in MMM; CBDs also contain the greatest levels of existing public and private infrastructure; It is critical to reverse the relative degeneration that has occurred; It is also fundamental to spatially transform the urban space to grow the local economy.

4 Major LandCITY Development - Bloemfontein FOOTPRINT Estoire N8 Airport node New Zoo Kwagga Fontein Cecilia Park Old CECELIA 124 ha Zoo Equestrian Multipurpose Facility AIRPORT NODE 700 ha BRANDKOP 140 ha PELLISIER 62 ha Brandkop BRANDKOP 5/ ha Vista Park 2 & 3 Hillside view

5 Mixed development Major Land Development - Botshabelo & Thaba Nchu Botshabelo Mall PULA! CBD rejuvenation Upmarket Lifestyle estate, integrated with airport, hotel and nature reserve

6 BRANDKOP

7 Brandkop - Deliverables 286 ha of vacant land known as Brandkop 702; Provision of external engineering services (Water, Sanitation, Roads, Electricity), up to registration of sites; Project to deliver 2187 new stands; Commercial Educational Social housing GAP housing Mid and Upper level housing

8 Brandkop - Progress to Date Urban layout plans completed; EIA process in progress; Final scoping report to be completed 15 September 2015 Engineering designs at advanced stage; Possible 35 ml reservoir for multi land development Gas supply to be provided as an alternative energy source Municipality to invite private developers to expedite project implementation; MMM to spend at least R300 million within next three years for bulk infrastructure.

9 Brandkop 702

10 URBAN DESIGN: Building footprint

11 Brandkop Town Planning Layout

12 CECILIA PARK

13 CECILIA 166 ha of vacant land, near Langenhoven Park Provision of external engineering services (quarry, water, sanitation, roads, N1 overpass bridge, electricity), up to registration of sites; Project to deliver 643 stands; Residential Recreational and retail facilities Mixed use (hotel, boutique hotel, place of assembly, business premises, gymnasium, office)

14 Cecilia - Progress to Date Township establishment (85% progress) Layout plans completed Proposed zoning and use completed Spatial development concept plan completed EIA (80% complete) Scoping and public participation completed Busy with assessment report To be submitted to province by 30 September 2015 Municipality to invite private developers to expedite project implementation

15 CECILIA PARK

16 URBAN DESIGN Building footprint

17 CECILIA TOWN PLANNING LAYOUT Public Open Space Single houses Public building School Business

18 N8 AIRPORT DEVELOPMENT

19 OVERVIEW OF N8 AIRPORT NODE AIRPORT DEVELOPMENT NODE INVESTMENT Total Estimated Cost R2,6 billion R87 million to be spent on planning and design in the 2015/16 About R200 million to be spent on servicing Phase 1 of the land in the 2015/16 PROJECT INFORMATION 700 ha of vacant land, near Bram Fischer International Airport Mixed land use READINESS 98% completion of township establishment process and related services reports

20 Progress to Date Environmental Impact Assessment (EIA); Draft EIA compiled; Public participation started. Submission of comments closed on 22 April 2015; Carried out Bird Study as per ACSA and CAA, who registered as Interested and Affected Party; Final EIA Report to be submitted by 31 August 2015 Township establishment Layout plans completed.

21 Progress to Date Engineering designs completed; Contractor for Earthworks appointed; Tender advert for the municipal services (water, sewer, stormwater, roads and electricity) for Phase 1 to occur by 31 August 2015; Land disposal for Phase 1 at advanced stage Hotel development, and International Convention Centre (ICC)

22 N8 AIRPORT NODE N8 Railway business node

23 business node business node

24 urban square

25 N8 AIRPORT NODE N8 Railway ICC precinct

26 ICC precinct ICC precinct

27 N8 AIRPORT NODE N8 Railway shopping mall

28 shopping mall shopping mall

29 N8 AIRPORT NODE N8 Railway tertiary institution

30 shopping mall tertiary

31 N8 AIRPORT NODE N8 Railway mixed/integrated high density

32 N8 AIRPORT NODE N8 land release 1

33 business node shopping mall ICC precinct Land release /2014

34 N8 AIRPORT NODE N8 land release 2

35 tertiary mixed-use commercial / show rooms land release /2015

36 VISTA PARK 2 & 3

37 VISTA PARK 2 VISTA PARK 3

38 Vista Park - Deliverables Vista Park township consists of the following components: o o o o o o Social and subsidised housing; Bonded single residential housing; Military veterans; Sports and recreational facilities; Schools and churches; Regional Hospital (to be developed by the Provincial Government).

39 Layout plans complete Progress to date EIA processes completed Township establishment completed Service Level Agreement to be signed with the municipality by 30 August 2015 for Vista 2 Township establishment approval by Municipal Tribunal planned for 28 August 2015

40 VISTA PARK 2 Layout

41 Vista Park 3 Layout

42 HILLSIDE VIEW

43 Hillside View - Deliverables Hillside View township consists of the following components: BNG Units Social Housing Units 495 Gap Housing Units 153 Bonded Housing Units

44 Hillside View - Progress Civil works completed Phase 1 building construction in progress 400 units to be completed To be completed 30 October 2015 Civil works completed Phase 2 engineering services in progress To be completed 30 June 2015 Beneficiary application started

45 LOCATION

46 URBAN DESIGN Building footprint

47 HILLSIDE VIEW TOWN PLANNING LAYOUT Vista campus Public building Business School

48 Hillside View Progress to Date

49 MILITARY VETERANS HOUSING

50 Military Veterans Housing 30 single story houses currently being build in Lourierpark

51 ZOO LAND DEVELOPMENT

52 Progress to Date Preparation of new Zoo site in progress to facilitate relocation of animals from old Zoo site; Investors required for the outright purchase of existing Zoo land for private development; Tender to be issued subject to approval by Council; Anticipated to occur during September 2015.

53 UNIQUE ECOLOGICAL DEVELOPMENT vs TRADITIONAL ZOO Current green lung of Mangaung Future green lung of Mangaung Proposed new location: sqm Current location: sqm

54 New Zoo Location - Kwaggafontein Conference & Lapa facilities Langenhovenpark

55 ZOO LAND 277 ha including the Loch Logan Waterfront

56

57 WAAIHOEK REDEVELOPMENT PROJECT

58 WAAIHOEK REDEVELOPMENT INVESTMENT Total Estimated Cost R3,7 billion R20 million to be spent on planning and designs of Phase 1 (S T Georges Bridge) in the 2015/16 R300 million to be spent on construction from 2016/17 PROJECT INFORMATION ±4ha of land, in the CBD Integrated mixed use development READINESS Design completed for Phase 1, Final Precinct Plan completed and will be presented to Treasury on the 7 th Sept 2015 for final approval AT THE HEART OF IT ALL BLOEMFONTEIN BOTSHABELO THABA NCHU BLOEMFONTEIN BOTSHABELO THABA NCHU AT THE HEART OF IT ALL

59 Waaihoek - Progress to Date Buitesig Bridge Bridge at detailed design stage Good cooperation from Transnet Construction expected to start January 2016 Waaihoek precinct Conceptual plans completed Stakeholder consultation in progress Design incorporating Student accommodation Commercial properties

60 Buitesig Bridge Buitesig Bridge Provide additional access from eastern part of Bloemfontein into CBD

61 BUITESIG BRIDGE Connecting St George s Street and Mckenzie Street

62 New Buitesig Bridge Cooling Towers Government Garage

63

64

65 THABA NCHU SOUTHERN NODE DEVELOPMENT

66 Black Mountain Lifestyle Estate

67 Thaba Nchu Upmarket Lifestyle Estate Integration of Thaba Nchu airport, Black Mountain Hotel and Maria Moroka Nature Reserve Create an Upmarket Lifestyle estate Convert airport into a Hangar Current progress Council approved the nodal development In contact with national department for transfer of airport land to Mangaung Metro Conceptual planning stage

68 L o c a l i t y Plan Botshabelo Thaba Nchu Airport and Aviation School Maria Moroka Nature Reserve Black Mountain Hotel 16.3 km from National Route (N8) Black Mountain Lifestyle Estate

69 S i t e Identification Black Mountain Hotel Lifestyle Estate (80.7 ha) Airport and Aviation School (572 ha) Maria Moroka Nature Reserve Black Mountain Lifestyle Estate

70 E s t a t e Overview Approximately 50 plots Plot size range from 0.5 ha to 1.5 ha Dam Airport and Aviation School A i r p o r t O v e r v i e w 9 Hole Golf Course Black Mountain Lifestyle Estate

71 E s t a t e Visualisation Black Mountain Lifestyle Estate

72 G o l f C o u r s e Black Mountain Lifestyle Estate

73 ADDRESSING INFRASTRUCTURE DEVELOPMENT

74 Key Infrastructure Development Projects Bulk water supply - New project New pipeline from Gariep to Bloemfontein to address water shortage Bulk water supply - Ongoing projects Construction of reservoirs and associated pipeline to improve storage capacity Upgrading of water pump station to improve equipment reliability Bulk sanitation Bulk sanitation Upgrading of existing waste water treatment works Building of new Eastern WWTW Sanitation reticulation Botshabelo and Thaba Nchu Roads rehabilitation programme

75 Bulk Water Supply to the City The current main source of water supply to the Mangaung Area is from the Welbedacht dam in the Caledon River. 145 ml/day is provided from the Welbedacht WTW. Water is transferred via Knelpoort dam, Rustfontein Dam, Mockesdam to the treatment works at Rustfontein (100 ml/day) and Maselspoort (110 ml/day).

76 Bulk Water Supply to the City Water Balance and Projected Water Requirements

77 Gariep Dam to Bloemfontein Scope of Works: Water supply capacity of 200 Ml/day Pipeline which is 180km long and with 1.4m diameter Intermediate and terminal Reservoirs Potential renewable energy (3 Solar PV farms) Current Bloem Dam outlet pipe

78 Gariep Implementation Plan Capital investment: R4.3 billion rands Activity Date Notice to proceed with construction January 2016 Approval of project management plan February 2016 Approval of designs April 2016 Delivery of first water November 2019 System hand over February 2020

79 Maselspoort Water Treatment Plant Current Projects: Refurbishment Maselspoort Pumpstation Upgrade Project 97 % complete All pumps installed Two high lift pumps fully commissioned One High lift and two low lift pumps commissioning done on 12 August 2015 Building refurbishment to follow this financial year.

80 Pumpstation Refurbishment Old High lift pumps removed Old pumps and pipework removed New pumps New variable speed drives

81 Water Pressure Tower in Heuwelsig

82 New North-Eastern WWTW North-Eastern WWTW is currently in construction Phase 1 (15Ml/day) was extended by 20% to include the first portion of Phase 2. Estimated construction completion by End December 2015 Phase 2 will increase capacity to 45Ml/day Budget available for 2015/16 FY - R84.3 million;

83 Basic Sanitation Backlogs Eradication Programme

84 Basic Sanitation Backlogs Eradication Programme Eradicate VIP s and Pit toilets Bloemfontein Botshabelo Thaba Nchu Eradicate 2104 bucket toilet No more buckets in Thaba Nchu R3.2 billion rands is required to eradicate sanitation backlogs

85 Table 2.3 Basic Sanitation Backlogs Buckets - Bloemfontein Area No of Buckets Khotsong 300 Meriting 23 MK Squire 700 Sejake 10 Crofort 10 Namibia 67 Tambo 120 Park Square 73 Ipopeng 46 Lusaka 15 Sub-Total: 1347

86 Table 2.3 Basic Sanitation Backlogs Buckets - Botshabelo Area No of Buckets Botshabelo: Section K 155 Section F 259 Section C2 138 Section L 41 Section D 17 Section A 7 Section J 56 Section H1 84 Sub-Total: 757

87 Waterborne sanitation Buckets 526 Buckets VIP toilets Botshabelo

88 Mangaung

89 Thaba Nchu

90 Backlogs Eradication Programme 2013/15 Project Total Erven Project Area Planned W1202A Botshabelo Section J 494 W1202B Botshabelo Section J 397 W1202C Botshabelo Section F and F Ext 130 W1202D Botshabelo Section F and F Ext 370 W1202E Botshabelo Bulk Sewer Line Sec F N/A W1202F Thaba Nchu, Seroalo 623 W1202G Botshabelo Section K 436 W1202H Botshabelo Section K 480 W1202I Thaba Nchu, Bultfontein W0901E Bloemside W0901L Bloemside 6 and Botshabelo F 399 W0901E (Extended) Peter Swart (Bloemside 2) 143 W1202B (Extended) Buckets Botsh Section K 165 W1202C (Extended) VIP s Section A 188 Totals: 4270

91 Backlogs Eradication Programme 2015/16 Budget: R Connections: Location Area Units to Implement Botshabelo Section H & J 567 Botshabelo Section W 833 Botshabelo Section F 638 Botshabelo Section F & K 571 Thaba Nchu Seloshesa Thaba Nchu Bultfontein 3 & Mangaung Sonderwater & MK Square 584 Mangaung Khotsong 623 Thaba Nchu Bultfontein 1 756

92 Internal Bulk Water Services that Supports the Programme Description Suburb Expected Expenditure 2015/2016 Construction of an 8Ml Reservoir Botshabelo Section F R Bulk Water Pipelines Botshabelo Section F R Ml Naval Hill Reservoir Longridge Reservoir Supply Line Bulk Wate Supply to Mangaung: Naval Hill Reservoir 4Km Delivery Lines Bloemfontein R Bloemfontein R Bloemfontein R

93 Bulk Water Pipe line in Botshabelo Section F

94 Bulk Reservoir in Botshabelo Section F

95 Internal Bulk Sanitation that Supports the Programme The table below reflects the current bulk sanitation expenditure and the anticipated expenditure for the next financial years: Project No Budget 2014/2015 Budget 2015/2016 Upgrade WWTW (ThabaNchu) Total Amount R R Upgrade WWTW (Botshabelo) Total Amount R R Extension to WWTW (North-Eastern WWTW) Total Amount R R Upgrade WWTW (Sterkwater) Total Amount R R

96 SITE LAYOUT BOTSHABELO WWTW

97 Heavy Rehabilitation of Roads Maphisa road Batho roads Botshabelo roads Bloemfontein key roads Kenneth Kaunda; Walter Sisulu Road; St. Georges and First Avenue Intersection;

98 WORKS IN PROGRESS ON MAPHISA ROAD Cost: R30 million

99 TOWNSHIP ROADS REVITALISATION Paving of Roads

100

101 Kenneth Kaunda Rehabilitation

102 Pavement Rehabilitation Project in the City EPWP Project; Aim is to contribute towards the rejuvenation of the CBD; Focus on the paving of sidewalks; R 24 million to be spent in the past financial year from Operational Budget (R & M); R30 Million will be spent in 2015/16 from (R&M); for Botshabelo and Thaba Nchu.

103 Work in Progress

104 First Avenue Crossing

105 Arterial Road Signs

106 Debt Capital Markets

107 1. Debt Capital Markets Overview 2. Financial Overview 3. Proposed Offer 4. Issuance Milestones

108 Debt Capital Market Overview Investment Grade Bonds Equity Capital Markets Unsecured Commercial paper Financing Debt Capital Markets Non Investment Grade / High Yield Infrastructure notes Structured Lending Secured Asset Backed Operations, Consumer Finance Receivables, Trade receivables Debt Capital Markets ( DCM ) are financial markets for the buying and selling of short-term and long-term debt securities, such as commercial paper, bonds, bank notes, debentures, etc These markets channel the wealth of savers to those who can put it to longterm productive use, such as companies, governments (including municipalities, local or national government) to make long-term investments.

109 Total Listed Debt Instruments by Issuer Of the R2 trillion debt instruments listed on the JSE, approximately R1.55 trillion (77%) is issued by Government, SOE and municipalities Municipalities account for 1% of the total which amounts to R18 billion Banks and Cooperates account for a mere 23% combined, amounting to just under R500 billion

111 Financial Overview Key Metrics Financial Position Asset Base 2014 Audited Results against 2011 ( all shows an improvement) Strong net surplus of R954 million (2011: R238m) Progressive increase of the City s total asset of R 14.7 billion (2011: R11,6m) Collection Rate 92% (2011: 88%) Cash & Cash equivalents Audit Report R million (2011: R246m) Unqualified (2011:Disclaimer) Current Ratio 1.4 (2011: 0.7) Debt: Revenue 0.08 (2011: 0.01)

112 Total Capital Expenditure Trends 112

113 Capital Expenditure: Sources of Funding 2015/ / / /13 113

115 The Proposed Offer Issuer Documentation Issuer Rating Rating Outlook Offered Securities Proposed Amount (DMTN) Debut Issue Amount Tenor (Maturity) Coupon (Dates) Issue Date Settlement Date Listing Mangaung Metropolitan Domestic Medium Term Note Programme A2.za Stable Senior unsecured notes R 5 billion Up to R 1 billion Up to 10 years or such longer period as may be determined Payable semi-annually in arrears 21 October 2015 ( subject to Council approval) 3 days from the auction date JSE Deadline for stakeholder comments 26 August 2015

117 Issuance Milestones Legal/ regulatory processes Publication of Information Statement (MFMA) 6 August Commence drafting of Programme Memorandum 3 August 2015 Council approval for establishment of DMTN programme and issue of debt September 2015 JSE formal approval of Programme Memorandum 23 September Roadshow announcement Marketing/ investors processes 31 August Investor roadshow 2 nd Week of Oct 15 Cape Town Johannesburg Bond auction 21 October 2015 Settlement/ Listing 26 October

118 Investors to be Visited Momentum Asset Managers Momentum Holdings Sanlam Capital ABSA Asset Managers / Capital Liberty Public Investment Corporation Investec Argo Future growth Allan Gray Stanlib Nedbank Sasfin DBSA Prudential Kagiso Omsfin Prescient Local Businesses - Indirectly through Financial Institutions

119 Concluding Remarks The developmental agenda set by Council in 2011 is showing visible progress on the ground City is still faced with challenges related to Sustainable provision of Bulk Water Access to acceptable sanitation Provision of acceptable roads and stormwater condition Reliable provision of electricity Opportunities for private investment to accelerate development of strategic land parcels exists

120 Thank you for listening!