Th role of public-private partnerships in service delivery : the case of the Mitchell's Plain Housing Development Project

Iwegbuna, Jerry Chukwudi (2019-04)

Thesis (MPA)--Stellenbosch University, 2019.

Thesis

ENGLISH SUMMARY : This thesis investigates the nature and activities of Public-Private Partnerships in the development of affordable housing in the City of Cape Town. The study analyses the involvement and success of affordable housing projects developed through the collaboration of the City of Cape Town, the Cape Town Community Housing Company and the National Housing Finance Corporation in Mitchell’s Plain. Due to the limited resources available to the City of Cape Town, engagement with the private sector became necessary in order to utilise the private sector finance, expertise, and transfer risks. Affordable housing is defined in this study as the housing market segment for households earning between R3 500 and R15 000 per month, which is usually referred to as the “gap market”. Studies in the housing sector have argued that the gap income bracket has been conspicuously under-catered for by the private housing sector, as well as by government policies on subsidised housing for the low to moderate income earners. To investigate how the public and the private sector help each other in the development of affordable housing projects, this study utilises two affordable housing projects in Mitchell’s Plain, namely: the Harmony Village (Rental Programme) and the West Cape Villas (Owner Programme). Desk-top literature reviews and semi-structured interviews were conducted to obtain information from the officials of the Cape Town Community Housing Company, National Housing Finance Corporation, City of Cape Town, as well as the beneficiaries, who were involved in the affordable housing projects with respect to their experiences, lessons learnt and suggestions on how to implement more efficient housing projects in the future. The literature review and data collected from respondents during the interviews were evaluated using theoretical frameworks that apply to affordable housing and Public-Private Partnerships (PPPs), in order to determine if the case study projects and activities of the PPPs are in line with theories and policies developed to guide public-private activities and affordable housing development. The findings also highlighted some of the challenges of PPPs and affordable housing projects which have to be mitigated in order to ensure successful PPP housing projects. The findings reveal that using PPPs for affordable housing developments improves the efficiency and delivery of housing to the communities in the City of Cape Town. The analysis of the findings was also used to propose solutions to the challenges of PPPs and housing projects, and recommendations as to what can be done to improve the outcome in PPP projects with regards to affordable housing delivery in the future.

AFRIKAANSE OPSOMMING : Hierdie navorsing het die aard en bedrywighede van Openbare-private Vennootskappe ten opsigte van die ontwikkeling van bekostigbare behuising in die Stad Kaapstad ondersoek. Die betrokkenheid en sukses van bekostigbare behuisingsprojekte, wat as gevolg van samewerking tussen die Stad Kaapstad, die Kaapstadse Gemeenskapsbehuisingsmaatskappy en die Nasionale Behuisingsfinansieringskorporasie in Mitchell’s Plain ontwikkel is, is ontleed. Weens die beperkte hulpbronne wat aan die Stad Kaapstad beskikbaar was, het betrokkenheid by die privaatsektor nodig geword om dié sektor se finansies, kundigheid en oordragrisiko’s te kan benut. Bekostigbare behuising word in hierdie studie beskryf as die huismarksegment vir huishoudings wat tussen R3 500 en R15 000 per maand verdien, en wat gewoonlik na verwys word as die “gapingsmark”. Studies op die gebied van die huismarksektor het in die verlede daarop gewys dat dit opvallend was hoe die gapingsinkomste deur die private behuisingsektor onderskat is, asook deur die relevante regeringsbeleid ten opsigte van gesubsieerde behuising vir die lae tot matige inkomstegroepe. Om vas te stel hoe die openbare en private sektore mekaar onderskraag met die ontwikkeling van bekostigbare behuisingsprojekte, is met hierdie studie van twee sulke bekostigbare projekte in Mitchell’s Plain gebruik gemaak, naamlik Harmony Village (Verhuringsprogram) en die West Cape Villas (Eienaarskapprogram). Lessenaar-literatuuroorsigte is gedoen en semi-gestruktureerde onderhoude is gevoer om inligting te bekom van amptenare van die Kaapstadse Gemeenskapsbehuisingsmaatskappy, die Nasionale Behuisingsfinansieringskorporasie, die Stad Kaapstad, sowel as die begunstigdes wat by die bekostigbare behuisingsprojekte betrokke was, veral wat betref die toepassing van hulle ondervinding, lesse wat hulle geleer het en hul voorstelle oor hoe om doeltreffender behuisingsprojekte in die toekoms te implementeer. Die literatuuroorsig en inligting wat deur middel van die onderhoude met die respondente bekom is, is geëvalueer deur gebruikmaking van teoretiese raamwerke wat op bekostigbare behuising en Openbare-private Vennootskappe van toepassing is. Dit is gedoen om vas te stel of die gevallestudieprojekte en bedrywighede van die Openbare-private Vennootskappe (PPPs) in lyn is met teorieë en beleide wat ontwikkel is om openbare-private bedrywighede en bekostigbare behuisingsontwikkeling te lei. Die onderhoude het ook sommige van die uitdagings van PPPs en bekostigbare behuisingsprojekte benadruk wat getemper moet word ten einde suksesvolle PPP behuisingsprojekte te verseker. Die bevindings van die veldstudie-analise toon dat die gebruik van PPPs vir bekostigbare behuisingsontwikkelings die doeltreffendheid en lewering van behuising aan die gemeenskappe van die Stad Kaapstad verbeter. Die ontleding van die bevindings is ook aangewend om oplossings aan die hand te doen vir die uitdagings rondom PPPs en behuisingsprojekte, asook aanbevelings oor wat gedoen kan word ter verbetering van bekostigbare behuisingsvoorsiening in die toekoms.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/106247
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