City of Cape Town: A new approach to the City's MSDF Overview Prepared for - 27th June 2018
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Content • Context is Everything…Reality check • MSDF Approach and Growth Direction • Spatial Transformation: Designation of areas, investment rationale and land use guidelines • “The Blue Turtle” – the City’s Urban Inner Core and Spatial Priority • Comparing old with new – CTSDF 2012 vs MSDF 2018 • Way Forward
Munic % Pop Growth p.a. Contextual Challenges No. Municipality Category (2001-2011) 1 Gamagara B3 5.84 2 Musina B3 5.53 National/Provincial: 3 Bitou B3 5.22 4 Steve Tshwete B1 4.76 • Fiscal constraints… 5 Swartland B3 4.56 6 Midvaal B2 3.94 • Credit Rating Downgrades… 7 Overstrand B2 3.8 8 Emalahleni B1 3.58 • Flat-lined economic trajectory… 9 Rustenburg B1 3.5 10 Saldanha Bay B2 3.45 • Complex regulatory and 16 City Johannesburg Metro 3.18 reporting environment…and 18 City of Tshwane Metro 3.1 22 Bergrivier B3 2.85 • Urbanisation and growth of 24 Knysna B2 2.77 metro / secondary towns 26 Stellenbosch B1 2.71 27 Witzenberg B3 2.64 30 George B3 2.59 32 City of Cape Town Metro 2.57 33 Drakenstein B1 2.56 37 Swellendam B3 2.39 City of Cape Town Neighbouring Munics Other WC Munics
Contextual Challenges National/Provincial: City: • Fiscal constraints… • Water availability / drought • Credit Rating Downgrades… • Affordability and housing • Flat-lined economic trajectory… • Access to jobs and services • Complex regulatory and reporting environment • Failing rail and congestion • Urbanisation and growth of metro / • Increasing informality secondary towns • Increasing dependencies on state for services / support • “Jobless” growth • Spatial fragmentation and inequality
Key Metro Scale Spatial Insights Atlantis Century City CBD Belville Athlone Khayelitsha Mitchells Plain Strand
Key Metro Scale Insights – In Quantitative Terms 1. 2008 – 2017 unemployment rate incr. from 19.2% - 22.7% (“Strict”) 2. Burgeoning costs for City – R1,4bn – R1,9bn re: costs of free basic service packages (2016/17 – 2019/20*) 3. Low-income group spends up to 43% of income on access (well in excess of international norms) – est. 500,000 citizens unable to afford any transport means 4. 1996 - 2016 households living in informal settlements incr. by 39%; in informal backyards 257%; informal dwellings 76% (18% of all h’holds)
Legal Aspects: Municipal Spatial Development Framework (MSDF) MSDF: component of the City’s 5-yr IDP 2017-2022 MSDF: provides longer term view of City growth, development and investment (10-20 yr) MSDF legally required to … • guide overall spatial distribution of current and desirable land uses within a municipality; • give effect to the IDP vision, goals and objectives; • align City’s spatial development goals, strategies and policies with national and provincial spatial principles, strategies and policies; • Direct and support private and public investment by identifying priority investment areas; and • Provide policy guidance to direct decision-making and investment.
Legal Aspects: Municipal Spatial Development Framework (MSDF) Section 22 of SPLUMA: “22. (1) A Municipal Planning Tribunal or any other authority required or mandated to make a land development decision … may not make a decision which is inconsistent with MSDF. 2) …may depart from the provisions of MSDF only if site-specific circumstances justify a departure from the provisions of such MSDF.” S.9 of Municipal Planning By-Law: “9. (1) … the City may deviate from provisions of MSDF only if site specific circumstances justify the deviation
Changing MSDF Narrative and “Use” of the Document From… a largely prescriptive tool • Used to argue merits / demerits of development outside urban edge or changes in Spatial Planning Categories - SPCs to allow development. • Mapping informed by SPCs (highly detailed and technical, resulting in duplicating land use processes). To… a facilitative tool • Used to promote development in priority spatial locations; supported and guided by legal framework and adaptable land use management system – speed and confidence for those proposals aligned to strategic intent.. Whilst…Flagging potential risks! MSDF does not exempt applicants from considering spatial aspects reflecting developmental risks, flagged biodiversity aspects in need of verification, areas of agricultural significance etc. which may be subject to OTHER legislative process
MSDF: Inward Growth and Investment Rationale Spatial Transformation premise: > ACCESS TO > OPPORTUNITIES FOR > # of PEOPLE. To achieve this, City focus is on inward 2012 - 2018 growth and investment to support infrastructure in support dense, diverse and transit oriented land uses. IDP commits City to this ...
Spatial Transformation and Transit-Oriented Development (TOD) – IDP The City intent on building a more inclusive, integrated and vibrant city that: • addresses the legacies of apartheid • rectifies existing imbalances • avoids the creation of new imbalances in the delivery of services. Key to achieving spatial transformation is transit-oriented development (TOD) and associated intensification of land use (diversification and densification). Emphasises strategic location of new development strategically around public transport. IDP 2017 -2022
Spatial Vision and Investment Rationale
2018 CTMSDF Spatial Vision “The City is intent on building – in collective partnership with the private and public sector - a more inclusive, integrated and vibrant city that addresses the legacies of apartheid, rectifies existing imbalances in the distribution of different types of residential development, and avoids the creation of new structural imbalances in the delivery of services. Key to achieving this spatial transformation is transit-oriented development (TOD) and associated densification and diversification of land uses.”
Areas of Land Use Intensification (based on TOD principles) City’s spatial focus based on an Urban Inner Core comprising: • Majority of “Very Needy” communities as identified in Socio-Economic Index • Integration Zones (Metro- South East, Voortrekker Road, Blue Downs) – BEPP rationale • Majority of commercial and industrial nodes - ECAMP • Transit Accessible Precincts (TAPS)f • Full extent of Urban Development Zone (UDZ) • Inclusive of airport / ports & primary freight infrastructure • Public Transport: Phase 2a implementation of My Citi and Blue Downs passenger rail link extension
R13 R14 Billion Billion Proposed approach will have impact on where and what City prioritises re: capex & opex / infrastructure investments
R13 R14 Billion Billion …and it should have fundamental impact on decision-making re: applications, budgets etc.
Spatial Transformation Areas (STAs): Rationale and Investment Assessing proposals with differentiated “rules of the game” re: investment and land use guidelines for each STA City Infrastructure and STA City OpEx Investment Urban Inner Core - UIC Priority Priority Priority when serving existing development / Incremental communities. Growth and Consolidation Subject to capacity / Priority Master planning when Areas – IGA serving proposed development. Discouraged Growth Areas – Zero Zero DGA* Focused on Critical Natural enhancement and To maintain Areas – CNA* expansion of assets asset and access to assets Unique Areas May be May be high x 4 ** high * NB: Change in naming convention ** NB: Atlantis, Paardevlei, PHA, Swartklip more detailed policy / investment guidelines
Spatial Transformation Areas (STAs): Extent and Determination Spatial Extent in Hectares % extent UIC 41,589 17 IGA 49,792 20 DGA 69,544 28 CNA 83,652 34 • UIC + IGA= “available” urban footprint for intensification and direct capex/opex funding +/-37% of City’s geographical boundary • Urban Edge removed in favour of policy and investment rationale that discourages growth in DGA • Intensification proposals in DGA will not ordinarily be supported • NB: 4ha “grid-based” delineation – not cadastral • Determination of STAs concluded via extensive discussion with District Planning / Environment
Principle, Policy and Strategy
Risk… Biodiversity… Agriculture / Water… From CTSDF 2012 – emphasis on land use / urban edge, cadastral To MSDF 2018 – nested maps directing metro – scale intent & policy Consolidated Spatial Plan Concept
MSDF approach seeks to: • Provide Metro-scale principle and strategic direction to progressively transform Cape Town’s urban form and function • Implies curbing urban sprawl and peripheral, segregated development in favour of inclusive integrated development. • Clearly identify “no go” areas and protect critical natural areas • Maximise intensity of • latent land use rights; • and vacant land within existing urban footprint
Spatial strategy 1: Building an inclusive, integrated, vibrant city Applicability in STA POLICY UIC IGC DGA CNA SUB-STRATEGY NO. P1 ✅ ✅ Encourage integrated settlement patterns P2 ✅ ✅ P3 ✅ ✅ Transform the apartheid city P4 ✅ ✅ P5 ✅ ✅ P6 ✅ ✅ Support incremental development processes P7 ✅ ✅ P8 ✅ ✅ Address spatial economic imbalances. P9 ✅ ✅ Proactively support publicly-led land reform and new P10 ✅ ✅ housing delivery Enhance unique sense of place and quality of built form P11 ✅ ✅ P12 ✅ ✅ ✅ ✅ P13 ✅ ✅ ✅ ✅ P14 ✅ ✅ Enhance value of heritage resources and scenic routes P15 ✅ ✅ ✅ ✅ P16 ✅ ✅ ✅ ✅ P17 ✅ ✅ ✅ ✅ Promote accessible, citywide destination places P18 ✅ ✅
Spatial Strategy 2: Manage urban growth, and create a balance Applicability between urban development and in STA environmental protection POLICY UIC IGC DGA CNA SUB-STRATEGY NO. Encourage a more compact form of development P19 ✅ ✅ Make efficient use of non-renewable resources P20 ✅ ✅ Appropriately protect the citizens of Cape Town from risk areas/ P21 ✅ ✅ ✅ ✅ activities/events P22 ✅ ✅ P23 ✅ ✅ P24 ✅ ✅ ✅ ✅ Appropriate management of development impacts on natural P25 ✅ ✅ resources and critical biodiversity networks P26 ✅ ✅ ✅ P27 ✅ P28 ✅ Protect and enhance the city’s rural environment P29 ✅
Spatial Strategy 3: Plan for employment, and improve Applicability in access to economic STA opportunities SUB-STRATEGY POLICY UIC IGC DGA CNA P30 ✅ P31 ✅ ✅ Promote inclusive, shared economic growth and ✅ ✅ P32 development ✅ P33 P34 ✅ ✅ P35 ✅ P36 ✅ ✅ Integrate land use, economic and transport planning P37 ✅ ✅ and support the sustainable operation of the IPTN P38 ✅ ✅ P39 ✅ P40 ✅ P41 ✅ Support the development of economic gateways, and ✅ ✅ manage land uses around them appropriately. P42
Land Use Guidelines and Approach (Old vs New)
CTSDF – Map 6.1 2018 MSDF – Consolidated Spatial Concept In terms of mapping- similarities Broadly Broadly aligns aligns Urban and Industrial SPC Urban Inner Core and inside urban edge Incremental Growth areas Broad support for land use intensification – similar “structure”
CTSDF – Map 6.1 2018 MSDF – Consolidated Spatial Concept In terms of guidance- different concept and scale Spatial Land Use Structure focus – Concept cadastral and Investment “levels” Land use SPCs + urban edge: Spatial Transformation Areas: Activity, Development Routes: cadastral Reduced “urban” footprint, IPTN trunk delineation structural emphasis and Investment Priority: 4ha grid delineation basis
Urban Inner Core (Land Use Guidelines) Desired Land Use Outcome: diverse and dense land uses in association with current and future public transport infrastructure provision. • Preferred zoning categories: GR2-6, GB1-7 and MU1-3 as per the City’s Development Management Scheme (DMS) in corridors and nodes and SR2 (incremental upgrading of informal settlements) where applicable. • Differentiated intensification guidelines outlined in Density Table (adapted from approved Density Policy) • Refrain from the following land uses: o single residential developments around main transport corridors and stations; o low worker density around main transport corridors and stations (such as large warehousing); o noxious land uses that limit the nature of development on adjacent land due to Environmental Health Regulations; o any land use which is only viable subject to the provision of extensive ground level parking areas (i.e. where densities are too low to make structured parking on site viable); o mono-functional, single storey public sector buildings; and o single storey schools and sports fields that are not shared. • Spatial manifestation of the legislative requirements including areas where: o inclusionary housing policy applicable; o high priority be given to the capital infrastructure projects and programmes; o the strategic assessments of environmental sensitivities have shown that on-site protection or mitigation is less practical than off-site offsets; o detailed local plans should be developed, shortened land use development procedures may be applicable, o high priority is given to coordination, alignment and integration of sectoral policies; o Etc… Ensure that: o All new public facilities make use of land in an optimal manner, are designed to cater for an augmented and intensified user base (users living and working in Urban Inner Core), are multi-storey and are accessible via public transport. o High rise buildings are designed to allow conversion of uses between residential and non-residential. o All structured parking to have floor to ceiling heights allowing for conversion to non-parking land uses over time.
Should the provisions of spatial plans of a lower order in the hierarchy (including district and local spatial development frameworks and other existing local-scale structure plans) be deemed to be inconsistent with the MSDF, the MSDF will take precedence. The City’s local scale plans are cadastrally defined, whereas the spatial planning categories in the MSDF are no longer cadastrally defined. District plans may be used to interpret the MSDF on a local, cadastral scale in cases where the spatial designations between both documents are aligned. District plans may not be used to interpret the MSDF on a local, cadastral scale in cases where the MSDF shows areas designed in Discouraged Growth Areas that are indicated for urban development in the district plans. Approved MSDF Extract: Page 173
NEW: Spatial Transformation Areas (STAs) Land Use Desired land use outcome: limit land use Guidelines to agriculture and rural zone uses Status quo with preferred zoning of Agriculture, Rural or Open Space as per the Development Management System In event that City Tribunal approves contrary to above guidelines following rules apply… INVESTMENT CITY CITY GRANT PRIVATE SECTOR PARTNERSHIP CAPEX OPEX AVAILABILITY Privately Zero Zero No grant Zero incentives funded areas. utilisation for permitted development. City will not co-finance Self-funded and infrastructure subject to and private extraordinary sector conditions of payments approval would be greater than conventional development charges
Extraordinary Conditions of Approval Discouraged Growth Areas – In event of approval by Tribunal CONDITION OBJECTIVE PRINCIPLE HOW THIS IS ACHIEVED IN PRACTICE PRINCIPLE OF FAIRNESS Determine costs and • The City has limited capacity transfer cost back to City will not pay for any City requires the developer to pay: and has confirmed that it will applicant capital costs related to not service this area. required infrastructure • all capital costs of utilities and social and will not pay for infrastructure. • Applicants cannot apply to operating costs of use grant funding for the first infrastructure until 20 • all operating costs for infrastructure for a 20 year 20-years of operation due to years post occupancy. period post occupancy. speculative nature of development. Mitigate against risk in The City will require: the event that • The City has an obligation to applicant does not / • a bank guarantee to cover the total operating protect residents, should the can not honour cost of infrastructure for the first 20 years of developer default on commitments operation. operating of services City will not carry obligation. speculative risks. • the developer to include a provision in title deed re “premium rating area” concept and to • The City needs to ensure that comply with Consumer Protection Act ito prospective buyers can informing prospective buyers of risk and cost make informed decisions. associated with servicing arrangements. Protect public good • The City’s commitment to Despite this being a self- • Developer required to ensure that residents have spatial transformation applies funded project, the City access to social infrastructure and employment to all areas. will insist on the creation opportunities through conditions requiring the of a liveable provision of privately-funded social facilities (such • Whilst grant funding cannot environment conducive as schools) and transport to places of be used to fund affordable to spatial transformation employment. component of housing, indigent grants can apply.
Approved MSDF Extract: Page 52
Anticipated Process Outcomes – post MSDF approval • Basis of contention shifts from the urban edge “line” / SPC category to principle and approach • Avoid routine “challenges” of SPC on “old” SDF Map “6.1” and process of SDF amendment – arguably an inappropriate at Metro scale • “Nested SDF maps” highlight risks / development inhibitors that may trigger other legislation requirements (e.g. NEMA, Act 70 of 1970 etc. ) - processes managed by national / provincial / local administrators • Reflects these aspects spatially (in detailed risk, agricultural environmental maps) but indicates that ground-truthing etc. would be required via the stipulated processes – not duplicating these or requiring amendment to plan(s) and MSDF • Will not deter developers / landowners to be “inside” UIC + IGA – will need to amend IDP / MSDF to do so (annual basis) • Infrastructure Investment Programme and review of District Plans critical implementation aspects
Determining Consistency with MSDF NB: (SOP being prepared): • Applicant needs to consider development directives / spatial informants / land use outcomes described in MSDF (at least maps 5a-d) • Sectoral policies (Tech Supplement A) may also be applicable • Are there “refrain from…” land uses (noted in UIC)* • Land use intensification proposals in DGA / CNA would not ordinarily be consistent with the MSDF* If yes to * are there site specific circumstances or stated land use exceptions applicable? NB: Applicant’s responsibility to motivate these for consideration of MPT
Consistency Outcome Processes available: MPB-L application • Lobby via District Plan procedure and review process associated other process that may be • Advocate change of IDP relevant via annual IDP review process
MSDF Implementation
Inner City Affordable Housing Initiatives Integrated Public Transport Network SDF Implementation Plan Priority TOD Precincts / Projects
Built Environment Performance Plan / Capital Expenditure Framework DORA requirement: annual plan and integral part of the municipal package of strategic plans. Unlocks access to following grants: Human Settlement Development Grant / Urban Settlements DG (HSDG / USDG) Integrated City Development Grant (ICDG) Public Transport Network Grant (PTNG) Neighbourhood Development Partnership Grant (NDPG) Integrated National Electrification Programme Grant (INEPG) Required to articulate the City’s investment rationale and institutional arrangements to address spatial and sectoral integration reflecting: • strategic principles and priorities established in IDP and MSDF; • intention and desired impact of 2018/19 R9.2 capital budget and operating budget of R39,8bn (total budget R49,1bn) and outer MTREF years; • investment rationale of other state departments and entities; and • strategic themes emphasised in guidelines issued annually by National Treasury. • NB: First time BEPP being submitted as Capital Expenditure framework (CEF) in support of MSDF (S.21 SPLUMA)
MTREF budget2018/19 2018/19 – 2020/21 (Spatial Transformation Areas Analysis) 2018/19 2020/21 20% 36% 27% 8% 9% Urban Inner Core Incremental Growth Areas Critical Natural Assets Source: City of Cape Town Built Environment Performance Plan 2018/19
Capital Spatial Time Utility Infrastructure cost (R Transformation interval IMMEDIATE PRIORITY 1.0? million) Area Electrical Bellville South Substation 83.5 Backlog Urban Inner Core Electrical Blackheath Substation (Blackheath) 239.9 Backlog Urban Inner Core Sanitation Increase Zandvliet WWTW capacity 336.4 Backlog Urban Inner Core Sanitation Upgrade outfall sewers in the Mitchells Plain drainage area 54.4 Backlog Urban Inner Core Sanitation Upgrade PS, rising main and collector sewer for the Rietvlei PS drainage area 28.4 Backlog Urban Inner Core Electrical Spine Road Substation 145.2 1 Urban Inner Core Electrical Mitchells Plain 106.5 1 Urban Inner Core Electrical Acacia MTS 154.9 1 Urban Inner Core Electrical Erica MTS 1506 1 Urban Inner Core Electrical Erica-Swartklip-Voorbrug 132 kV UG Cable 342 1 Urban Inner Core Electrical Belhar Substation UG & OHL (Behar) 661 1 Urban Inner Core PRIORITY 1.1? Electrical Philippi Substation (Philippi) 386 1 Urban Inner Core Electrical Metal Substation (Airport) 246.8 1 Urban Inner Core Electrical Platinum Substation (Vlakte) 110 1 Urban Inner Core Electrical Plattekloof-Muldersvlei Substation, 132 kV UG cable 133.9 1 Urban Inner Core Water Pipeline reinforcement to Paarden Island booster pump station 106.6 1 Urban Inner Core Water New bulk supply pipelines to Khayelitsha area 72.4 1 Urban Inner Core Upgrade outfall & PS of the Bridgetown PS drainage area & construct a new Sanitation 194.2 1 Urban Inner Core rising main to connect to CF3 outfall sewer Sanitation Increase Athlone WWTW capacity 620.6 1 Urban Inner Core Sanitation Increase Mitchells Plain WWTW capacity 49.1 1 Urban Inner Core Electrical Broad Road 42.2 2 Urban Inner Core Electrical Koeberg 50 2 Urban Inner Core Electrical Observatory 82.3 2 Urban Inner Core PRIORITY 1.2? Electrical Oakdale UG Cables 170.2 2 Urban Inner Core Electrical Tamboerskloof 126.4 2 Urban Inner Core Electrical Woodstock 77.3 2 Urban Inner Core Electrical Killarney Substation (Ascot North) 87.4 2 Urban Inner Core Electrical Acacia-Montague Gardens Substation, 132 kV UG cable 190 2 Urban Inner Core New PS, rising main / outfall sewer to divert flow from Green Point Sea Outfall Sanitation 87.9 2 Urban Inner Core catchment to Athlone WWTW drainage area Indicative Infrastructure Triggers in Support of MSDF – UIC source CoCT BEPP 2018/19
Capital Spatial Time Utility Infrastructure cost (R Transformation IMMEDIATE PRIORITY 1.0? interval million) Area Electrical Depot Substation 90.3 Backlog IGA Electrical Pinotage MTS 555 Backlog IGA Water 100 Ml Contermanskloof Reservoir and supply pipelines 156.5 Backlog IGA Water 100 Ml Steenbras Reservoir and supply pipelines 286.7 Backlog IGA Electrical Monte Vista Substation 154.9 1 IGA Electrical Gordon’s Bay Substation 87.2 1 IGA Water 300 Ml Muldersvlei Reservoir and linking supply pipelines* 413.4 1 IGA SECONDARY PRIORITY – Water Muldersvlei WTW and raw water supply pipelines* 3,081.80 1 IGA Water Pipeline between Muldersvlei Reservoir and Transfer Reservoir* 21.1 1 IGA Water 300 Ml Transfer Reservoir 262.5 1 IGA Water 150 Ml Blackheath Upper Reservoir 179.7 1 IGA ASSUME UIC INFRASTRUCTURE Water New bulk supply pipelines to Deep South area 83.4 1 IGA Water 40 Ml Blaauwberg 1 Reservoir, rising mains & pump station 45.2 1 IGA Water Bulk supply pipeline from Faure WTW to Helderberg area 70.4 1 IGA Sanitation Increase Potsdam WWTW capacity 575.4 1 IGA NEEDS RESOLVED? Sanitation Increase Macassar WWTW capacity 391.8 1 IGA Sanitation Increase Wesfleur domestic / residential WWTW capacity 143.2 1 IGA New PS and rising main for flow from Gordons Bay drainage area and IGA Sanitation 92.8 1 completion of diversion outfall to alleviate pressure on Lourens River PS Upgrade outfall, PS and rising main for Railway PS drainage area including IGA Sanitation 13.6 1 downstream outfall upgrades Electrical Muizenberg Substation UG cables 149.5 2 IGA Water Pipeline between Transfer Reservoir and Glen Garry Reservoir 365 2 IGA Electrical Kraaifontein Substation 0 N/A IGA Electrical Pelican Park Substation 0 N/A IGA Electrical Stellendale Substation 0 N/A IGA Sanitation Increase Fisantekraal WWTW capacity 0 N/A IGA Indicative Infrastructure Triggers in Support of MSDF – IGA source CoCT BEPP 2018/19
Financial Year POLICY ELEMENTS FROM MSDF 2017/ 2018/ 2019/ 2020/ 2021/ 18 19 20 21 22 New Term of office IDP Preparation / MSDF Draft complete ? Revise and adapt master planning of utilities Prioritise, plan and implement TOD precincts Review district plans Assumption: District Plans Complete Promote intensification / management in Annual IDP / MSDF Review + Annual IDP / MSDF Review + Integration Zones (local area planning, tools etc.) District Plan Initiation Social Facility Optimisation Plans per sub- metropolitan area Land acquisition strategy to include a section for transit accessible/ well-located ECAMP updates, high level assessments / predictions re: industrial land demands Maintain database of undeveloped and partially developed land / state-owned land Ensure Greater Cape Metro Regional Strategic Investment Framework (2016) institutional arrangements in place Timelines and Processes in Support of MSDF Implementation
SDF Linkages to District Plan Review MSDF provision that reviewed Timeline (subject to change): District Plans to at least… • September 2018: Draft Status Quo Analysis Report Interpret at district level, the reviewed MSDF vision, spatial • December 2018: Completed transformation areas and Issues workshops on Status objectives; Analysis; Confirm cadastral extent and • March 2019: Finalised Status delineation of Urban Inner Core Quo Analysis and Identification and Incremental Growth and of Areas of Intervention; and Consolidation Areas; and • June 2019: Conceptual Spatial Confirm designation and extent Development Framework of district and local nodes.
Find us at: tda.gov.za ***MSDF approved 25th April 2018: download it here*** ***Download the key MSDF maps in high res .pdf format here*** Enkosi… Dankie… Thank you for your interest and attention. peter.ahmad@capetown.gov.za 48
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