Overview of the ARP

ARP Institutional Arrangements

Written: June 2006

The origins of the Alexandra Renewal Project

Provincial government appointed a professional team to develop a business plan aimed at transforming Alexandra. A document entitled “ Overall Business Plan for the reconstruction and urban renewal of Alexandra” was finalised in September 2000. The implementation of the projects identified was estimated at R1.3 billion.

Resulting from this study, at the official opening of Parliament in February 2001, the State President announced a seven-year project to redevelop Greater Alexandra in Johannesburg. Subsequently a spatial development framework was developed focused on spatial, transport and environmental considerations.

Structure of the Alexandra Renewal Project in 2005

The Province (Department of Housing) and the City of Johannesburg are undertaking the Alexandra Renewal Project (ARP) jointly and have established a joint project office to implement the project. The joint project management team is accountable to a joint political and administrative structure.

The ARP is not a housing project but rather a urban renewal project that aims to bring together social, economic, physical and institutional factors together into a coherent integrated strategy.

As such the ARP has 11 functional areas, each of which has a list of projects. The functional areas are:

1. Education
2. Engineering
3. Environment
4. Health
5. Heritage
6. Housing
7. Local economic development
8. Local government capacity building
9. Safety and security
10. Sport and recreation
11. Welfare

These functional areas broadly fall into four primary categories - Housing Developments, Urban Services, Social Infrastructure and Local Economic Development.

ARP Project Team, mid-2005

Community involvement and political consultation

The ARP aims through it operations to encourage high levels of community involvement and civic pride. In an attempt to develop a coherent engagement with the community a development forum representing organised civil society has been established. Membership to the Alexandra Development Forum (ADF) is open to any organisation working within Alexandra. The ADF is the official communication channel for the ARP with the broader community.

The ARP also works closely with the elected ward councillors and ward committees and reports back on a regular basis. As such, project implementation decisions are made in consultation with both the political structures and the broader community.

Financing the ARP

The ARP receives an operational budget from the City of Johannesburg. This pays for rent, salaries and other operational expenses.

The ARP is not financed via a dedicated budget line, nor does a separate ARP fund exist. The ARP does not have a capital budget that they control. Rather the ARP packages projects in line with the overall business plan and submits such plans for political approval and budget allocation.

Capital projects are thus funded on a project-by-project basis against an approved business plan. A joint political committee, comprising the MEC for housing and the MMC’s for Housing and Planning, approves the business plans. The City of Johannesburg, Provincial Department of Housing and other departments then allocate budgets to finance the projects. No money has been specifically received by the City or Province to finance the ARP. Rather city and provincial government allocates monies from their own budgets according to its priorities.

To-date (February 2006) the ARP has spent R700 million (not including the housing subsidy) on a full range of projects against the eleven functional areas. The focus has now shifted primarily towards housing and local economic development.