Saldanha Bay Municipality

Inter-municipalco-operation:LED Initiatives

S e r v e G r o w a n d S u c c e e d To g e t h e r

INTRODUCTION

 “The more autonomous municipalities are, the more they need to cooperate; the more they can cooperate.”Presentation outline:

Definition and characteristics of Inter-Municipal Cooperation (IMC) An appropriate legal framework SBM & IMC (vision, mission & values) Economic significance of SBM requires cooperation Economic background of Saldanha Bay Key SBM LED project for IMC Why the need for IMC What support expected from SALGA Concerns / challenges of IMC IMC bebefits

DEFINITION AND CHARACTERISTICS OF IMC• IMC is when two or more municipalities agree to work

together on any of the tasks assigned to them in order to gain mutual benefits,

• Agreement is voluntary,

• Better coordination in development planning or more efficient and visible development policy;

AN APPROPRIATE LEGAL FRAMEWORK FOR IMC

A pre-condition to help IMC to flourish is an appropriate legal framework: • The Constitution make provision for co-operative government which

include inter-municipal cooperation and simultaneously requires from municipalities to promote intergovernmental relations

• The White Paper on Local Government states that all spheres of government are inter-related and inter-dependent and planning for development should be conducted together, for the same geographical areas

• The Municipal Structure Act states that municipal planning must be aligned with & compliment the development plans & strategies of other affected municipalities or other organs of state to give effect to the principles of co-operative government

• It further states that a municipality may provide service through a service level agreement with other municipalities

VISION & MISSIONSBM AND IMC

(Vision, mission & values)SBM is committed to co-operate with other stakeholders & municipalities in our area, as reflected in our vision Serve, Grow & Succeed TogetherGovernment expects from us to promote & explore the economic significance of the SBM area as embedded and acknowledge in our Mission Statement, which in itself requires collective thinking & action:We, the community of Saldanha Bay, want to make this the area of choice within which to live, do business and relax. We want to be:• A leading municipality; Render quality service at a reasonable price;• Be a place in which all have access to developmental opportunities;• Utilise the riches of land and seas in a sustainable manner; and strive to achieve the three

aims of sustainable development, namely human well-being, economic success and ecological responsibility.

VALUESCompetence (the ability and capacity to do the appointed job)Responsiveness (serve needs of citizens

Accountability(responsible for actions & results)

Integrity(honest & do the right thing)Caring (those we serve & work for)

STRATEGIC FOCUS AREAS & OBJECTIVES OF SBMEconomic significance is well defined within the strategic focus areas & objectives which provide ample space for cooperation through communication and the sharing of best practices with other municipalities:

Local Economic Development      To diversify the economic base of the municipality through industrialisation, whilst at the same time nurturing traditional economic sectors Basic Service Delivery        To maintain /expand basic infrastructure as a catalyst for economic develop Good Governance & Public Participation

To develop and use a multi-platform communication system to ensure swift and accurate dissemination of information, to provide ethical and effective leadership and to ensure compliance with the tenets of good governance as prescribed by legislation and best practice.

ECONOMIC SIGNIFICANCE OF SBM REQUIRES

COOPERATION

Economic background of Saldanha Bay

• Blessed with strong economic development initiatives around the port;• Anchor initiative is the establishment of the industrial development zone (IDZ) for

investment attraction of targeted sectors: Renewable Energy production & manufacturing cluster Oil supply base/hub for the Oil and Gas cluster National Infrastructure Plan in 2012 with the aim to invest billions in building new and

upgrading existing infrastructure and it outlines a number of Strategic Integrated Projects (SIPs) of which two have direct relevance for Saldanha Bay municipality:

– SIP 5: Saldanha-Northern Cape Development Corridor (rail and port expansion, back- of-port industrial capacity (IDZ) and strengthening maritime support capacity)

– SIP 8: Green Energy in support of the South African economy• Tourism is recognised as a potential generator of wealth and jobs and is of substantial

importance to unlock further growth/development in the Saldanha Bay Municipal area.• Aqua culture is thriving inside the port area and is a good sustainable job creator with

Saldanha producing top quality products into a growing market. Growth here however may conflict with the expansion of port activities.

KEY PROJECTS

SIP 5SALDANHA – NORTHERN CAPE

SBM LED Initiative for inter-municipal

cooperation (IMC)• IDZ (district impact), a potential initiative for inter-municipal cooperation• Saldanha Licensing Company (LICO) established with WESGRO on board;• Business plan (Oil & Gas) submitted & announcement is awaiting;• Economic challenges of IDZ require inter-municipal cooperation;• IDZ cooperation with other municipalities with regard to:

skills development; regional road links, air freight (IDZ), upgrading of rail infrastructure; alternative bulk water sources to bridge future shortfall; future environmental challenges; urgent upgrade of electrical bulk supply (consider Renewable energy); the port as a regional driving force that determine import & export

capacity, needs to be conferred with on new economic developments

WHY THE NEED FOR INTER-MUNICIPAL COOPERATION?

• Municipalities join forces to improve their efficiency, effectiveness , share expertise & to get answers to challenges;

• Mayors are not elected to create IMC and citizens do not seek additional complex institutions, but both are eager to see more investment in infrastructure, attract private investors, create jobs and opportunities;

• IMC enables any municipality facing these kinds of economic challenges to join with other municipalities to act together;– An example - donation to Laingsburg Municipality of two municipal refuse

removal trucks which were no longer conducive for the Saldanha Bay Municipal area

• Direct and indirect functions performed by municipalities can be performed jointly through an IMC arrangement such as Community Services & their infrastructure (Economic Development);

• Current economic environment in SBM area is IMC friendly, since projects with district impact can be beneficial to the whole West Coast region; and

• Capitalise on current well coordinated West Coast District IMC - models.

WHAT SUPPORT IS EXPECTED FROM THE LOCAL GOVERNMENT ASSOCIATION (LGA)

 

The LGA (SALGA) can play a key supporting role to make IMC work effectively amongst municipalities, since:• The LGA is more trusted by municipalities as it represents

their interests and can draw on best practice, but also encourage more progressive municipalities to become leading examples;

• It has its own communications channels with the Government; and

• LGA support in terms of training, organising networks, guidance on feasibility studies and advocating IMC through the hosting of seminars/conferences.

CONCERNS / CHALLENGES OF IMC

• Buy-in from Councils due to political differences;• Competition mentality of municipalities;• Distance between municipalities;• Ownership and management/control issues• Cost implications and financial constraints;• Adequate contributions & openness regarding resources and

lack of capacity/expertise to make IMC work• Obstacles that limit IMC are caused by complex legal

processes, municipalities not sharing all challenges and those who are not in line with the reality of quick societal changes due to new technology, new economic realities etc.

INTER-MUNICIPAL CO-OPERATION BENEFITS

• Allows management to focus on more strategic matters

• Improve access to higher standard of technology

• Assists in achieving policy goals of government by strengthening municipalities

• Establishment of level of standards and raising standard performance.

Thank you

for more info visit

www.sbm.gov.za