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The City's development agency is excited by the 'really significant projects' it is implementing around Johannesburg – particularly in the inner city.
Work around the Ellis Park precinct
THE Johannesburg Development Agency (JDA) received its biggest capital expenditure budget ever, up from last year's R770-million budget.
The budget for 2008/09 stands at R1.2-billion, with its capital expenditure target for the first quarter at 7,5 percent, according to a report on the JDA's performance by the development planning and urban management and shareholder unit. The unit plays an oversight role to the JDA.
"The capital budget of the JDA for the 2008/09 financial year is the biggest capital budget allocated to the JDA in its entire history," indicates the report. The report covers the first quarter only, from the months July to September 2008.
The role of the JDA is to stimulate and support area-based development initiatives in Johannesburg, in support of the City's Growth and Development Strategy. The JDA co-ordinates and manages capital investment and other programmes, on behalf of the City's departments and agencies.
JDA's CEO Lael Bethlehem says the largest part of this budget is to be spent on the Rea Vaya bus system, at present being constructed in the city. Phase 1A is due to be completed by June.
"We are very excited to have really significant projects to implement which will have a major impact on the city. The BRT will have a transformative effect on the inner city," she says.
Inner city developments
Bethlehem says the other major area the budget will be used for is the inner city fund, set up as a result of the inner city charter, formulated in 2007. This fund has been given R1,5-billion over a five-year period.
Some R200-million has been allocated from the fund for this financial year, and is being used to upgrade the greater Doornfontein area, which includes Bertrams and a portion of Troyeville, to be finished by May this year.
"This work will be complemented by other work in the Ellis Park precinct," says Bethlehem, referring to the major upgrade to the precinct, in preparation for the 2010 Soccer World Cup™.
"We are very excited to have really significant projects to implement – they will have a major impact," she adds.
"It's fantastic to see investors piling in on the back of the City's investments. This is the mayor's commitment bearing fruit."
Unqualified audit and expenditure
The JDA believes it will achieve an unqualified audit, as "no major issues have been raised by the Auditor-General to date".
Regenerating Yeoville
"At the time of reporting, there were no indications that JDA will not achieve an Unqualified Audit Opinion consistent with the previous year."
While expenditure for the first quarter was below expectation, it is expected that expenditure for the second quarter will be 30 percent, against the target of 25 percent.
Some projects – Yeoville regeneration; Hillbrow, Berea extension, the Governor's House and Quartz Street; and the Greater Ellis Park – showed progress way above the projected targets.
"It is comforting to note that on the 2010 projects JDA appear to be ahead of schedule. Both the Greater Ellis Park development (28 percent above target) and the NASREC Precinct (eight percent above target) are progressing well."
The report indicates that "the overall standard of reporting by the JDA was very good".
Jobs, BEE and SMMEs
In all 889 short-term jobs were created during the first quarter, more than double the JDA's target of 355 jobs. A short-term job consists of a job of at least 80 working days.
On BEE, the JDA has achieved a 68 percent BEE spend as a percentage of total procurement of operating and capital budgets. Total procurement for this quarter was R1,67-billion, of which R1,13-billion was BEE spending.
Procurement spend on small, micro and medium enterprises (SMMEs) as a percentage of operating procurement is 55 percent, perfectly in line with its target of the same percentage.
"The JDA is presently conducting an exercise in analysing its OPEX spending to determine on which items it can increase SMME spending in order to sustain the target."
JDA workforce
In respect of the Employment Equity Plan, the JDA has achieved 83 percent, against its target of 90 percent. JDA's workforce is currently made up of 89 percent black staff (target 80 percent); 66 percent female staff (45 percent); and 17 percent black female staff in management positions (35 percent).
Progress on the Governor's House
Of the 63 staff members, 50 percent are construction staff, made up of engineers, quantity surveyors and architects.
The JDA says that attempts to increase the representation of black females in senior management is dependent on vacancies arising.
Staff turnover in the first quarter is zero, against a target of 10 percent. This is described as "commendable".
The JDA has also recorded 100 percent compliance to the City's HIV/Aids policy. The JDA's programme covers awareness and educational campaigns, the provision of free condoms, videos and free help lines. It provides assistance to employees who may have the disease, and informs them of their rights and benefits.
In addition, the JDA has given training to junior staff and junior to middle managers. Most of the JDA staff have registered for further educational study with Unisa, Damelin and Wits University.
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