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  • Renier Oosthuizen

Optimized decision making in the municipal space: Urban Settlements Development Grant


Context: As per the Division of Revenue Act, act 2 of 2013, each grant has a defined grant framework which states amongst others the criteria for eligible (capital) projects.


Process: Novus3 has interpreted the criteria of the USDG Framework and put together a USDG-eligibility Prioritisation Model using CP3. This enables the identification of the most eligible and least eligible capital projects within a municipality for USDG. This model was applied to a Metropolitan Municipality – which previously used human judgement to identify the most suitable projects for USDG funding.


Results: The results show that the USDG projects as identified by human judgement scores lower in terms of the USDG-eligibility model. If the USDG-eligibility model is used optimally, the municipality can fund projects with much higher alignment to the USDG framework than they are currently funding which impacts the municipality’s funding envelope and also have a variety of socio-economic spin-offs when considering the rest of the municipality’s capital expenditure budget.


Conclusion: This is one of a multitude of applications of the CP3 suite which can be used to optimize decision making within the municipal space.


#CP3 #USDG #Decision-making #Municipalities

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