The Urban Development Financing Grant (UDFG)
The Urban Development Financing Grant (UDFG) is an incentive-based financing grant and is targeted at the eight metropolitan municipalities.
The UDFG is intended to:
- Increase investment in resilient infrastructure and spatially targeted urban development
- Enable and incentivise efficient urban services and spaces that grows the economy and contributes towards financially sustainable metropolitan municipalities
This new financing grant incorporates the allocations and programmes of the previous Neighbourhood Development Partnership Grant (NDPG) and the Programme and Project Preparation Support Grant (PPPSG) earmarked for the metropolitan municipalities, whilst a significant portion of the new grant will be used to incentivise the performance of the Metropolitan trading services (water and sanitation, electricity and energy, and solid waste management) and also Budget Facility for Infrastructure.
Over the MTEF the UDFG will be administered through the following components, namely:
- Metro Trading Services component
- Neighbourhood Development Partnership component
- Programme and Project Preparation component
- Public Employment Programme
- Budget Facility for Infrastructure
