i

A Feasibility Study: The Upgrading of the

Johannesburg Urban Collar

Project Number 001.088P

PROJECT SCOPE
Revision 01 19 November 2013

DOCUMENTS INCLUDED:
1. Scope Definition
2. Scope Statements
3. Logical Framework Analysis

ii

Table of Contents

1. Scope Definition ................................................................................................................. 3
2. Scope Statement ................................................................................................................. 6
Project LFA ................................................................................................................................ 7
1. Participation Analysis ..................................................................................................... 7
2. Problem tree analysis ......................................................................................................... 8
3. Objectives Tress Analysis .................................................................................................. 9
4. Alternatives analysis ........................................................................................................ 11
5. Project Elements .............................................................................................................. 12
6. External Factors ............................................................................................................... 12
7. Indicators.......................................................................................................................... 12


3

1. SCOPE DEFINITION
The project to be undertaken by PM Consultants is to prepare a report at feasibility level on
the upgrading of the Johannesburg Urban Collar. The collar encompasses the following areas.
Brixton/Mayfair/Fordsburg in the West
Hillbrow/Johannesburg City/Dorrnfontein in the Center
Malvern/Bezhuidenhout Valley/Bertams in the East
Many of the areas in the Johannesburg Urban Collar are categorized as great risk areas by
banking institutions with regard to the issuing of loans in the forms of mortgage bonds. This
is due to the following factors:
High Crime Rates
Building Hijacking
General Area Degradation
High Instances of Loan Defaultment
The focus of the prepared report is, taking the above factors into account, to evaluate
innovative financial methods to achieve this developmental objective. The report must also
give adequate attention to the culture of non-repayment with regard to services rendered and
the problems associated with bond defaultment. It is expected that this report will be read and
evaluated by professionals and laypersons alike and so should be self explanatory and
technical jargon should be avoided where possible, explained if needed and used wisely if
necessary.
Other requirements are that the solutions proposed must account for existing projects aimed
at the upgrading of any area in the Johannesburg Collar, namely the current Urban
Development Zone initiative extending from Fordsburg through the center and towards
Bertams. It is essential that any methods put forward do not negatively impact existing
initiative to upgrade the Johannesburg Urban Collar.
The key stakeholders involved are:
CEO and Chairman of the PM Consultants,
National Government,
4

Municipality of Johannesburg,
Project Sponsor,
PM Consultants- Engineering and Technology Department CEO,
PM Consultants- Engineering and Technology Department Principal Engineer,
PM Consultants- project team appointed to complete the project,
PM Consultants-Project Team (7 Junior Engineers),
Sub-consultants and Specialists,
Customers that will be using the final system (Locals affected),
In addition to these above mentioned stakeholders, other external bodies that form part of the
sphere of influence of the project, include:
Regulatory Authorities,
Trade Unions,
Lobby Groups,
Government Agencies,
Socialists,
Economists,
Media outlets,
Banking institutions.
The projects five main areas are:
1. Planning,
2. Developing Financial Solutions,
3. Projects Close Out,
4. Compilation of Project Report,
5. Handover of Report to Sponsor.
Each of these work areas will be approached in a unique manner and will be further divided
into smaller and more manageable work packages. Thus, allowing the project team to identify
all items of work required to be carried out to complete the project, in addition to providing
an easy means of establishing if the Clients criteria for acceptance are satisfied. The work
areas will be divided into smaller work packages through research and interaction with
experienced persons. A benefit of establishing the work packages in this manner ensures
5

areas of high importance and the activities which are not explicitly included in the project are
accounted for.
The project is to be undertaken by junior engineers within PM Consultants. They are
expected to complete all required work relating to the projects five main areas given above
with limited guidance from experienced project managers, by attending Project Management
seminars and making use of prescribed and other textbooks.
The junior engineers are to perform research into the current situation of degradation, high
crime rates, building hijackings and loan defaultment and to provide innovative financial
solutions to help upgrade the areas. They are also required to looking the effects of bond
defaultments and the culture of nonpayment with regard to services. They are to compile this
information into a structured, easy to follow report, and after following all close out
procedures, to hand this report to the client no later than 29
th
of November 2013 at a cost of
between R600,000-00 to R900,000-00.













6

2. SCOPE STATEMENT
The scope statement will be logically set out using the Logical Framework Analysis (LFA)
technique as it is easy to understand and will ensure all aspects are covered as well as
ensuring all unnecessary topics are left out. The 7 steps are:
1. Participation Analysis
2. Problem Tree Analysis
3. Objectives Tree Analysis
4. Alternative Analysis
5. Project Elements
6. External Factors
7. Indicators












7

PROJECT LFA
1. PARTICIPATION ANALYSIS
Institutions Interest Groups Other
Banking Institutions
Media
Government
Big Business
Local Residents
Local Businesss
Investors
Groups needing more in depth analysis are:
Government
Local Residents and Local Businesses
Government Local Residents and Local
Businesses
Problem Low Economic activity
Decentralization
Population lack access to
funding to invest in area
General Area degradation
Concentration of Illegal
Immigrants
Building Hi Jacking
Non-repayment



Lack access to mortgage
bonds
High Bad Debt concentration
Properties are devaluating as
general area degrade
No investment in area
Crime
Building Hi Jacking

Interests Increase Economic Activity Access to financing
Upgrade of Area
Potentials Policy making has largest influence

Have a big influence over
effectiveness of methods
implemented
Linkages Need to collaborate with local
residents, local businesses and big
business to increase the economic
activity in the stated areas
This will upgrade areas and lower
risk of investing and to the access of
mortgage bond loans.
Lowering of the risk from high risk
category is dependent on
implementation of Methods
proposed

This Participation Analysis shows that the Primary focus should be on the Government
and their influence over the situation. The government has the greatest potential impact
on all the relevant stakes and so will ensure that all requirements are met.
8

Areas High Risk For Banks and Lack of Investment Opportunities
2. PROBLEM TREE ANALYSIS
















HIGHER
LEVEL
EFFECT
DIRECT
EFFECTS
DIRECT
CAUSES
ROOT CAUSE
HIGH CRIME
RATES
BUILDING
HI JACKING
AREA
DEGREDATIO
N
LOAN
DEFAULTMEN
TS
RECKLESS LENDING
(HIGH LEVELS OF
BAD DEBT)

MOVEMENT OF
ECONOMIC HUB OUT OF
CITY CENTER

LACK OF
DISPOSABLE
INCOME

LOW INCOME
PEOPLE AND
ACTIVITIES
MOVING INTO
COLLAR

DECENTRALIZATION
OUT OF COLLAR

LOW ECONOMIC
ACTIVITY IN COLLAR

SMALLER
BUSINESSES
STRUGGLING FROM
LOWER TURNOVERS
GLOBAL
ECONOMY
SLOWED

TREND OF CORPORATE
INVESTERS MOVE OUT
OF CBD
GLOBAL
RECESSION

LACK OF
UNDERSTANDING OF
DEBT AND
ASSOCCIATED
OBLIGATIONS AND
EFFECTS

FOCAL PROBLEM
9

AREAS RISK LEVEL REDUCED AND INCREASE
ATTRACTIVNESS AND OPPORTUNITIES FOR EXTERNAL
INVESTMENT

3. OBJECTIVES TRESS ANALYSIS















HIGHER
LEVEL
EFFECT
DIRECT
EFFECTS
FOCAL OBJECTIVE
REDUCE
CRIME RATES
RECLAIM HI
JACKED
BUILDINGS
UPGRADE
AREAS
REDUCE
INSTANCES OF
LOAN
DEFAULTMENTS
STOP SUB
PRIME LENDING

HIGHER INCOME
PEOPLE AND
ACTIVITIES
ATTRACTED BACK
INTO THE COLLAR

INCRESE
DISPOSABLE
INCOME
ATTRACT CORPORATE
INVESTORS AND BIG
BUSINESS INTO
COLLAR
INCREASED
ECONMONIC
ACTIVITY IN
URBAN COLLAR

RECENTRALOZATION
INTO URBAN COLLAR
JOB OPPORTUNITIES
OPEN UP AND
SMALLER BUSINESSES
FLOURISH

EDUCATE EXISTING
PEOPLE ON DEBT
AND ITS EFFECTS

REDUCE EFFECT
OF GLOBAL
RECESSION

ESTABLISH
GOOD MORALS
TO AVOID
RECKLESS
LENDING

ESTABLISH GOOD
MORALS TO AVOID
RECKLESS LENDING

MOVEMENT OF
ECONMOIC HUB
BACKMINTO CENTER
10

11

4. ALTERNATIVES ANALYSIS
Alternative 1: Deals with changing the behavior of people involved to stimulate the economy
Alternative 2: Deals with attracting economy stimulating activities into the area
Criteria Alternative 1 Alternative 2 Remarks
Chances of Success Low High Extremely difficult to
change the current
culture which has
become common place
Cost High High Both costs will be high
Cost/benefit Low High Greater benefit from
Alternative 2 as brings
needed external
investment in to solve
the problem and
stimulate growth.
Time Horizon Long Medium Alternative 1 will take
generations to fix the
problem.
Capacity of
PM Consultants
No Yes Alternative 1 will
require external social
and behavior
specialists.
Alternative 2 requires a
facilitation role in
implementing.
Social Risk High Low Alternative 1 seeks to
change social behavior
which could have
adverse impacts

Alternative 1 seeks to change the behavior of the people that resulted in the current situation. Even
if it is successful it will only stop or slow the current rate of decline and will take many generations
to first recover from the defecate before any improvement can occur.
Therefore Alternate 2 will be the focus going forward.





12



5. PROJECT ELEMENTS
6. EXTERNAL FACTORS
7. INDICATORS
DEVELOPMENTAL
OBJECTIVE
Upgrade the Johannesburg
Urban Collar
INDICATORS
High risk
category
removed
EXTRENAL
FACTORS
Increasing
economic activity
will upgrade collar

IMMEDIATE
OBJECTIVE
Identify all relevant factors
and alternate financial
solutions for input into
developing implementation
plan
All required
documents
received
Can influence
current policies

OUTPUTS
Analysis of current
situation
Proposed financial
solutions
Analysis of proposed
solutions
Report containing all of
the above
Report
completed and
to required
schedule
Credible resources
required
Current economic
stability


ACTIVITIES
Research current situation
Research problems with
bond defaultment and
culture of non payment
Research innovative
financial solutions
Identify most appropriate
solutions
Assess feasibility of most
appropriate solutions
Prepare report
INPUTS
Funds to prepare
report 200-
300hours
Meeting and
discussions
Success dependent
on willingness of
corporations to
participate