March 2004 - Public Private Partnerships by sdsdfqw21


									Innovative infrastructure and service delivery by
South African national and provincial government and public entities.
                                                                                                              March 2004 Number 14

  Public Private
The Gauteng Provincial Government (GPG) has announced plans for a major precinct
taking up 24 city blocks in the Johannesburg Central Business District (CBD), and the
feasibility study on a PPP model for delivery of the serviced accommodation is currently
with the National Treasury for approval. The province aims to achieve signing of a PPP
contract within 18 months from the start of the bidding process.

This significant project sets out to boost Gauteng public               linkages within and between departments, some of
service delivery through providing a cost-effective                     which are accommodated in different buildings
working environment, interaction between departments,                   scattered throughout the CBD.
and good accessibility to the community. Empower-
ment, optimal city spatial planning, incorporation of                   The detailed space requirement analysis targets 150 000
heritage sites, and inner city rejuvenation are also                    square meters of required office accommodation. Fox
                                                                                                                                    This publication is
identified as key outcomes.                                             Street and a portion of Main Street to the south;             sponsored by:
                                                                        Pritchard Street to the north; Rissik Street to the east;
Current GPG property arrangements provide                               and West Street to the west are the planned
inadequate public access and poor operational                           parameters of the new precinct. Whilst some buildings
        have been identified for upgrade or heritage protection
        measures, others have been identified for demolition to
        create appropriate public spaces.

        “This project enables the GPG to become a landlord, instead
        of being a tenant. This will harness the expertise and finance of
        the public sector in a PPP arrangement,” says Jack van der
        Merwe, Chief Executive of Gauteng’s Department of Public
        Transport, Roads & Works. “The GPG is committed to the
        regeneration of the Johannesburg inner city. Furthermore,
        creating a government precinct will enhance the interface
        between the people and government, and even more
        importantly, government and the people.”

        The GPG departments to be housed within the proposed
        precinct include:
        • Office of the Premier
        • Public Transport, Roads & Works
        • Finance and Economic Affairs
        • Agriculture, Conservation, Environmental & Land Affairs
        • Education
        • Housing
        • Health
        • Provincial Safety & Liaison
        • Development Planning & Local Government
        • Social Services & Population Development
        • Sports, Recreation, Arts & Culture

        The project will consolidate GPG’s long-term position in the
        Johannesburg CBD, and is expected to leverage further
        private sector investment in the city. Urban inner city tax
        incentives that are now in place also improve the viability of
        new developments in the Johannesburg CBD.

          A C C O M M O D AT I O N P R O J E C T S O N T H E M O V E :
            F O R E I G N A F FA I R S TA K E S A W O R L D V I E W
                                   Recently appointed Director General of Foreign Affairs, Dr Ayanda Ntsaluba has put a
                                   new spark of action into the long-awaited Pretoria headquarters for South Africa’s
                                   foreign relations. And his vision does not stop at this significant Pretoria project.

                                   Now also registered with the National    DFA’s transaction advisor for the Pretoria project is SPP
                                   Treasury’s PPP Unit is a Department      Project Solutions, a consortium comprising G5, Vela VKE,
                                   of Foreign Affairs (DFA) initiative to   Resolve Group, Marsh, ME Corporation, Deneys Reitz and
                                   review all South Africa’s foreign        Sangena Investments. The feasibility study is well
                                   mission accommodation facilities, to     underway to identify the best procurement choice for a
                                   identify optimal value solutions.        working environment that will meet the department’s
                                                                            needs and align with its objectives. A number of potential
Foreign Affairs Director General
                                 The world-wide feasibility study,          sites are currently being assessed in collaboration with the
      Dr Ayanda Ntsaluba
                                 using the PPP Unit’s method, will get      City of Tshwane and the department of Public Works.
        going with the selection of a transaction advice team in the
        forthcoming months. The brief will be to start with an options      If a PPP is the chosen route, the feasibility study will be
        analysis of South Africa’s foreign mission facilities per region:   submitted to Treasury for approval in terms of Treasury
        Africa, Asia, Middle East, Europe, America and South America.       Regulation 16, after which bid documents can be prepared.
        Detailed studies for identified projects will follow.
                                                                            The headquarters project is a key part of the DFA’s
        The high-priority Pretoria headquarters project was registered      strategic plan to 2005, and the department’s committed
        with National Treasury during October 2003 in terms of              management team is driving a timetable that aims for
        Treasury Regulation 16, and a full-time Project Officer will be     occupation of the new serviced facilities towards the end
        appointed shortly as prescribed.                                    of 2006.

To decide whether a proposed PPP is in the best interests of                 be risk-adjusted and calculated as a net present value. Risk is a
government, Treasury Regulation 16 to the Public Finance                     central factor impacting on the value-for-money conclusions of
Management Act (PFMA) requires the head of the relevant                      this comparison, and a comprehensive risk matrix is required.
department or public entity to do a thorough feasibility study.              Affordability remains the driving determinant of feasibility, and
Bidding documents may not be issued to the market unless                     if this cannot be demonstrated, the institution must either
Treasury has approved this study.                                            adjust its output specifications or abandon the project. PPP
                                                                             types, BEE targets, project structure and sources of funding,
National Treasury’s PPP Unit is finalising new guidance on how               and PPP payment mechanisms are all proposed at this stage.
to do project feasibility studies. This will be published as a
module in the new PPP Manual and issued as a Treasury                        Once the procurement choice conclusions are reached and
Practice Note in terms of the PFMA.                                          the information verified, the study can move to stage five,
                                                                             an economic valuation, using established micro-economic
The feasiblity study involves eight stages:                                  techniques.
• Needs analysis
• Options analysis                                                           Stage six is the finalisation of a procurement and implementa-
• Project due diligence                                                      tion plan that will demonstrate that the institution has the
• Affordability, value-for-money and risk transfer assessment                capacity and budget to undertake the project as envisaged.
• Economic evaluation
• Procurement and implementation plan                                        A final feasibility study report is then compiled for submission
• Feasibility Study for Treasury approval                                    to Treasury in the prescribed format, ensuring that the case for
• Revisiting of the feasibility study throughout procurement                 the project is comprehensively argued and that conclusions are
The identification and prioritisation of needs is the first stage.
Here, the government institution must clarify its objectives, find           The feasibility study becomes government’s project handbook
budgets for the required services and/or infrastructure, analyse             in every stage that follows its completion, enabling thorough
institutional and stakeholder factors, and then specify the                  procurement documents and draft contracts to be compiled,
outputs that the project wants to achieve. Getting the output                private sector bids to be evaluated against the feasibility
specification right is key. It requires that government decides              benchmarks, negotiations to be conducted, and contracts to
what it wants to achieve, not how it wants to achieve it. These              be managed.
outputs are costed later in the feasibility study models and are
cornerstones of the project.                                                 If the project is procured as a PPP, the feasibility study is
                                                                             revisited as part of the final treasury approval prior to the
The options analysis stage enables the institution to explore a              signing of the PPP agreement with the private party. If at any
range of possible technical, legal and financial options for                 stage during procurement or after the signing of a PPP
delivering the required service to the output specifications. A              agreement, the assumptions underlying the approved
PPP is not itself an ‘option’ – rather, it may be a procurement              feasibility study are to be changed materially, the government
choice for a preferred option. For example, a department                     institution is required to seek Treasury approval for such
needs a new head office. Its options may be three: to refurbish              changes.
its existing building, or to rent another building, or to build a
new one. The refurbishment and new build options could be                    The new National Treasury PPP Manual will be available
achieved either by conventional procurement or via a PPP.                    electronically on from April 2004.
However, the procurement choice is only made later in the                    Published copies will be issued in June 2004.
feasibility study in the value-for-money assessment.

A thorough due diligence undertaking is              FEASIBILITY STUDY FRAMEWORK
stage three, in which all legal, project site,
                                                     1. Needs Analysis        2. Options Analysis   3. Project         4. Value for Money     5. Economic
socio-economic and black economic empower-                                                             Due Diligence      Affordability          Valuation
ment (BEE) matters are investigated by the                                                                                Risk Transfer
government institution to uncover anything                                                                                Assessment
that may impact on the project.
                                                     Strategic Objectives       Options Analysis           Legal            Base PSC
                                                                                                                                              6. Procurement and
Stage four is pivotal in the feasibility study. It                                                                       Risk-Adjust PSC         Plan
enables government to determine the best                    Budget             Options Selection            Site         PPP Reference
procurement choice for the project (PPP or
other), using the three regulatory tests of                                                                            Sensitivity Analysis
affordability, value-for-money and risk transfer.        Institutional                                                                        7. Feasibility Study
                                                                                                         Socio-eco        Affordability          for Treasury
The method involves a comparative                        Environment
                                                                                                                                                 Approval I
assessment of delivering the outputs through                                                                            Value for Money
public sector procurement (Public Sector             Output Specifications                                             Procurement Choice
Comparator) with delivering the same outputs
through a PPP (the PPP Reference).                                                                                       Info Verification    8. Revisiting
                                                                                                                                                 Feasibility Study
                                                       Project Definition                                                                        for Treasury
Detailed guidance is given on how to                                                                                                             Approval III
construct these models, each of which must

                             MORE, SMARTER, FOCUSSED:
                           SECTORAL SPECIALISATON IN PPPs
                 Striding ahead following completion of the new National Treasury PPP Manual and Standardised
                 PPP Provisions, the PPP Unit is now aiming to bring out specialised Sectoral Toolkits for PPPs.
                 The initiative kick-starts this year with four PPP conferences for the health, fleet, IT and eco-
                 tourism sectors.

                 Further conferences are planned for 2005 to assist the               INFORMATION TECHNOLOGY PPPs CONFERENCE:
                 development of toolkits in the government office                     17-18 AUGUST 2004
                 accommodation and schools sectors.                                   Seven major IT projects are in the PPP preparation pipeline,
                                                                                      and the Labour department’s partnership with Siemens

                 The National Business Initiative (NBI), in collaboration with        Business Solutions is well underway. Optimising smart
                 the PPP Unit, will be securing private sponsorship for these         solutions is a high government priority, and deal innovation
                 conferences, and will handle logistics.                              by both the public and private sectors is essential.

                 Who should attend?                                                   What’s on the agenda?
                 • National, provincial and local government senior managers          • Case study on Labour department IT PPP
                 • Private sector service providers and investors                     • Proposed Cash Hall management PPP for Justice department
                 • Financial institutions                                             • Smart Card, Back Record Conversion project in Home Affairs
                 • Project Officers of currently registered PPPs                        National Identification System (HANIS)

                                                                                                                                                                   I N F O R M AT I O N
                 • PPP transaction advisors                                           • Free State Social Development department’s Grant
                                                                                        Payment PPP
                 HEALTH PPPs CONFERENCE:                                              • Eastern Cape province-wide IT PPP
                 5-6 MAY 2004, BLOEMFONTEIN                                           • Output vs Input in IT PPP agreements
                 Hosted by the Free State Health department, which led the            • Definition of scope in IT projects
                 way in South Africa’s first co-location PPP in 2002, conference      • Clauses specific to IT PPP agreements
                 delegates will be invited to visit the operating PPP facilities at   • Private Finance Initiative and PPPs in IT: comparing UK and
                 Pelanomi and Universitas hospitals. Top speakers in                    SA models
                 healthcare services from both the public and private sectors         • Respective roles of SITA (ITAC) and its regulation for
                 will share current local and international PPP experience.             procurement, the Framework for Supply Chain
                                                                                        Management, and Treasury Regulation 16 to the Public
    H E A LT H

                 What’s on the agenda?                                                  Finance Management Act
                 • Case study on Bloemfontein co-location hospitals
                 • Proposed pharmaceutical system for Eastern Cape                    ECO-TOURISM PPPs CONFERENCE:
                 • Medical aid scheme for state employees                             19-20 OCTOBER 2004
                 • Municipal health PPPs in the UK                                    Numerous eco-tourism PPPs have been concluded by South
                 • Using PPPs on a large scale                                        Africa’s conservation authorities in recent years. Processes
                 • Soft facilities management in KwaZulu-Natal                        followed and outcomes achieved are many and varied – and

                 • Procuring and managing PPPs (with case study)                      the opportunities for more, both big and small, continue to
                 • Procuring and managing Transaction Advisors                        grow. A draft toolkit for the sector is in development, and will
                 • Military health facilities project                                 be debated at this conference prior to finalisation.
                 • Integrated information systems for hospitals
                 • PPPs in Western Cape Health department                             What’s on the agenda?
                 • National vaccine PPP                                               • Reviews of existing eco-tourism PPPs from public sector
                                                                                        perspective (case studies: SANParks, North West Parks,
                                                                                        Western Cape, Greater St Lucia Wetlands, Limpopo)

                 13-14 JULY 2004                                                      • Private investors’ and operators’ experience to date (case
                 With fleet PPPs rolling out in many provinces, local authorities       studies)
                 and at national level, this conference will draw on a wealth of      • BEE in eco-tourism PPPs
                 lessons learned to date by both private and public partners.         • Working group sessions on each proposed module of the

                                                                                        draft Eco-tourism PPPs Toolkit: feasibility studies, BEE,
                 What’s on the agenda?                                                  procurement processes, contractual issues, contract
                 • Case study on Eastern Cape fleet                                     management.
                 • Pricing structures for fleet PPPs
                                                                                      To register as a delegate, contact Flo Mkwanazi
                 • Legal framework
                                                                                      Tel: 011-482 5100, e-maill:
                 • Preparation of tender documents
                 • BEE in fleet PPPs                                                  To offer sponsorship, contact Nevina Smith
                 • Code of conduct for bidders and officials                          Tel: 011-482 5100, e-mail:
                 • Contractual issues for fleet PPPs                                  Venues, prices and programmes will be confirmed on application to the NBI.

PPP type indicated by combination of private party risk for: D: design; F: finance; B: build; O: operate; T: transfer of assets back to government
BEE: Black economic empowerment

Project and government                    PPP type                   Project Officer       Private Partner                          BEE as % of equity        Financing and        Transaction                Value to gvt      NPV of
institution                               Contract duration                                                                         and sub contracting       Arrangers            Advisors to                (NPV of unitary   benefit to
                                          Date Financial Close                                                                                                                     government                 charge)           government

 1. Fleet Management                      DFO                        Tshego Motaung   Pemberley Investments (Pty) Ltd               Equity: 25%               Equity: 100%         Deloitte & Touche          R181 million      N/a
    Northern Cape Dept Transport,         5 years                    (053) 839-2109   comprising: Imperial Holdings                 Sub-c: 25%
    Roads and Public Works                November 2001                               and Africa Kosini
 2. Inkosi Albert Luthuli Hospital        DFBOT                      Hermann Conradie Impilo Consortium (Pty) Ltd                   Equity: 40%               Debt: 70%          PricewaterhouseCoopers; R4.5 billion           N/a
    KwaZulu-Natal Dept Health             15 years                                    comprising:Mbekane Health &                   Sub-c: 40%                Equity: 20%        White & Case; EC Harris;
                                          December 2001              (033) 395-2019   Wellbeing, AME International,                                           Govt contribution: Aloecap; Hiltron
                                                                                      Vulindlela Holdings, Siemens,                                           10%
                                                                                      Drake & Skull, Omame                                                    Rand Merchant
 3. Eco-tourism                           DFBOT                      Charles Maluleke      Koko Moya Wilderness Trail (Pty) Ltd;    Equity: 30% 30%, 40%      Equity: 100%       DBSA; White & Case       N/a                   R25 million cash
    Manyeleti 3 sites.                    30 years                   (015) 288-0049        Tinswala Lodges (Pty) Ltd;               Sub-c: 30%, 30%, 40%
    Limpopo Dept Finance,                 December 2001                                    Pungwe Game Reserve (Pty) Ltd
    Economic Affairs, Tourism
 4. Universitas and Pelonomi Hospitals    DFBOT                      Mr Shuping            Community Health Management/             Equity: 40%               Equity: 100%         Ignis; Naude’s Attorneys   N/a               R43 million cash
    co-location Free State Dept Health    16,5years                  (051) 430-8989        Netcare consortium                       Sub-c: 40%                                                                                  plus R38 million in
                                          November 2002                                                                                                                                                                         form of upgrade
 5. Information Systems                   DFBOT                      Deon Haasbroek        Siemens Business Solutions               Equity: 30%               Equity: 100%         KPMG                       R1.5 billion      N/a
    Department of Labour                  10 years                   (012) 309-4551        Consortium                               Sub-c: 25%
                                          December 2002
 6. Chapman’s Peak Drive toll road        DF(part)BOT                Ben Veldman           Capstone 252 (Pty) Ltd comprising:       SPV: 30%                  Debt: 44%            Ignis; Jeffares & Green;   N/a               R450 million
    Western Cape Dept Transport           30 years                   (021) 483-2004        Concor, Thebe Investments,               Design & construct        Equity: 10%          Hofmeyr, Herbstein &                         in form of capital
                                          May 2003                                         Marib Holdings, Haw & Ingles             sub-c: 10%                Govt Contribution:   Gihwala; Intertoll;                          works and
                                                                                                                                    Ops & maintain            46%                  Decathlon                                    operations
                                                                                                                                    sub-c: 50%                Rand Merchant
 7. State Vaccine Institute               Equity partnership         Gerrit Muller         Biovac Consortium                        Equity: 15%               Equity: 100%         PricewaterhouseCoopers; N/a                  R15 million systems
    Dept Health                           4 years                    (021) 312-0717                                                 Sub-c: n/a                                     Deneys Reitz                                 investment; & NPV
                                          April 2003                                                                                                                                                                            vfm of R60m over
                                                                                                                                                                                                                                current spend
 8. Humansdorp District Hospital          DFBOT                      Eugene Jooste         Metro-Star Hospital (Pty) Ltd            Equity: 25%               Equity: 90%          Ignis; PHI Attorneys       R18.9 million     R15 million upgrade
    Eastern Cape Dept Health              20 years                   (040) 609-3702        comprising: Metropal Hospital and        increasing to 40%         Govt Contribution                                                 plus R34 million
                                          June 2003                                        Season Star Trading 123                  Construct sub-c: 50%      10%                                                               cash
                                                                                                                                    Ops & maintain
                                                                                                                                    sub-c: 40%
 9. Fleet Management                      DFO                        Mr M Nkalane          Fleet Africa Eastern Cape (Pty) Ltd      Equity: 25%               Debt: 100%           Deloitte & Touche          R553 million      N/a
    Eastern Cape Dept Transport           5 Years                    (043) 604-7425                                                 Sub-c: 25%                Rand Merchant
                                          August 2003                                                                                                         Bank
10. Head Office Accommodation             DFB0T                      Hamida Fakir          Rainprop Consortium comprising:          Equity: 55%               Debt: 80%            Ignis, Utho Capital,       R870 million      N/A
    Dept of Trade & Industry              25 Years                   (012) 310-1564        WBHO, Atterbury Property Holdings,       Design & Contruct         Equity: 8%           Ledwaba Mazwai/
                                          August 2003                                      Parkdev S.A., Rebserve Facility          sub-c: 43%                Govt Contribution:   MasonsB.I. Assoc.
                                                                                           Management, Propnet, Zwelinzima          Facilities Manage         12%
                                                                                           Holdings, Prop 5 Corp, Rainbow           sub-c: 50%                Standard Corporate
                                                                                           Construction, WDB Investment                                       & Merchant Bank
                                                                                           Holdings, PDSA
11. Cradle of Humankind Interpretation DBOT                          Michael Worsnip       Furneaux Stewart Gapp consortium         Operating equity: 53%     Govt: 100% capex PricewaterhouseCoopers; N/a                      R39 million cash
    Centre Complex Gauteng Dept        10 years                      (011) 355-1400        comprising: Stocks, Fikile, Thebe        Construction sub-c: 40%   Equity: 100% opex White & Case
    Agriculture, Conservation,         October 2003                                                                                 Ops sub-c: 25%
    Enviroment and Land Affairs

National Departments                     Project Officer                Project                                            Status                                               Preferred bidder              Transaction Advisors
 1. Dept Arts Culture Science &          Peter Pedlar                   Head Office Accommodation Services                 Transaction Advisors to be appointed.                                              Not yet appointed
    Technology                           (012) 337-8587
 2. Dept Correctional Services           Mollet Ngubo                   Negotiation of two existing PPP prison contracts   Feasibility Study underway.                                                        Kagiso Financial Services; Ledwaba Mazwai; Carter Gobel Lee;
                                         (012) 307-2557/2487            and feasibility 4 new prisons                                                                                                         P D Naidoo
 3. Dept Defence/Armscor                 Kevin Hanafey                  Simons Town Naval Dockyard                         Pre-feasibility business case underway.                                            PricewaterhouseCoopers
                                         (012) 428-3472
 4. Dept Defence                         Brig Gen H Wallis              Various hospitals                                  Treasury Approval I due March 2004.                                                Ignis; PHC Inc
    South African Military Hospitals     (012) 671-5244
 5. Dept Education                       Carmen Coetzee                 Head Office Accommodation Services                 Negotiations.                                        Sethekgo Consortium           KPMG
                                         (012) 312-5661
 6. Dept Enviromental Affairs            Edwin Maseda                   Sustainable Working Enviroment Service Delivery    Project re-registered. Inception.                                                  Not yet appointed
    & Tourism                            (012) 310-3750                                                                    Transaction Advisors to be appointed.
 7. Dept Foreign Affairs                 Peter Bolinck                  Sustainable Working Enviroment Service Delivery    Project re-registered. Feasibility Study underway.                                 Deneys Reitz; G5; Vela VKE; ME Corporation
                                         (012) 351-1910
 8. Dept Foreign Affairs                 Peter Bolinck                  Missions Accommodation Services                    Inception.                                                                         Not yet appointed
                                         (012) 351-1910
 9. Dept of Home Affairs                 Gareth Warner                  IT-HANIS                                           Feasibility Study completed.                                                       PricewaterhouseCoopers; AloeCap; White & Case
                                         (083) 257-0275
10. Dept Justice                         Alan Mackenzie                 IT Cash Hall Payment System                        Feasibility Study underway.                                                        Ernst & Young; CSIR
                                         (012) 315-1019
11. Dept Land Affairs                    Thizza Tsoanyane               Head Office Accommodation Services                 Transaction Advisors to be appointed.                                              Not yet appointed
                                         (012) 312-8286
12. Dept Social Development              Selwyn Jehoma                  IT SOCPEN System                                   Transaction Advisors to be appointed.                                              Not yet appointed
                                         (012) 312-7647
13. Dept Transport                       Themba Nkosi                   IT Road traffic offences system                    Feasibility Study underway.                                                        Deloitte & Touche
                                         (012) 309-3597
14. Dept Transport                       Nashee Sewpersadh              Fleet Management for National Departments          Transaction Advisors to be appointed.                                              Not yet appointed
                                         (012) 309-3165
15. Dept Water Affairs & Forestry        Christo Marais                 Working for Water: secondary industries            Revised Treasury Approval I and IIA pending.                                       KPMG; Stellenbosch University; Edward, Nathan & Friedland;
                                         (021) 405-2200                                                                                                                                                       Nosipho
Provincial Departments                   Project Officer                Project                                            Status                                               Preferred bidder              Transaction Advisors
16. Eastern Cape Dept Health             Lulu Peteni                    Pharmaceutical Management & Distribution           Feasibility Study complete.                                                        PricewaterhouseCoopers; White & Case; Utho Capital;
                                         (040) 609-3763                                                                                                                                                       LEAP Architects
17. Eastern Cape Dept Health             Eugene Jooste                  Grahamstown & Port Alfred Co-location              Completion of Feasibility Study delayed to                                         Ignis; PHI; EC Harris; Annette van der Merwe; Peter De Boere
                                         (040) 609-3581                                                                    March 2004.
18. Eastern Cape                         Ian Assam                      IT System for Eastern Cape Province                Transaction Advisor to be appointed.                                               Not yet appointed
    Provincial Administration            (082) 578-1891
19. Free State Dept Education            Kevin Abrahams                 Schools                                            Feasibility Study underway.                                                        KPMG; Ashira; HLM-SV Architects; Africon
                                         (051) 430-8989
20. Free State Dept Health               Mr Shuping                     New build hospitals in Trompsburg and              Completion of Feasibility Study March 2004.                                        Ignis; EC Harris; PHI
                                         (051) 405- 4818                Lady Brand
21. Free State Dept Transport            Strover Maganedisa             Fleet Management                                   New RFP to be issued.                                                              Deloitte & Touche
                                         (051) 405-4697
22. Free State Dept Social Development   Dr Shirley Havenga             IT Grants payment system                           TAIII application received.                                                        Ernst & Young
                                         (051) 409-0635
23. Gauteng Dept Public Works &          Nicolette Huluba-Mitrofan      Gauteng Kopanong Precinct                          Feasibility Study underway.                                                        Kagiso Financial Services; Ledwaba Mazwai; PD Naidoo
    Transport                            (011) 355-2686                 Working environment service delivery
24. Gauteng Dept Transport               Gautrans                       Gautrain Rapid Rail Link                           Bid evaluation underway.                                                           Khuthele; Arcus Gibb; Kagiso Financial Services
                                         (011) 355-7300

                                                                     INCEPTION                            FEASIBILITY                                    PROCUREMENT                                  NEGOTIATIONS
National Departments                   Project Officer        Project                                           Status                                              Preferred bidder              Transaction Advisors
25. Kwa-Zulu Natal Dept Economic       Mel Clark              Dube Trade Port                                   Feasibility Study underway.                                                       PricewaterhouseCoopers; EC Harris; SDG; Siwendu & Partners
    Development and Tourism            (031) 310-5400

26. Kwa-Zulu Natal Dept Health         Hermann Conradie       Soft FM for Health Facilities                     Transaction Advisor appointed.                                                    PricewaterhouseCoopers; White & Case; Turner & Townsend;
                                       (033) 395-2019                                                                                                                                             Siwendu; Gasa; L Msimang

27. Kwa-Zulu Natal Dept Transport      James Mlawu            Vukuzakhe Plant Park Depot                        Transaction Advisor to be appointed.                                              Not yet appointed
                                       (082) 803-7779

28. Limpopo Dept Health                Clifford Motsepe       Polokwane hospital Renal Dialysis. Ellisras,      Transaction Advisor appointed.                                                    Ignis; Munyai Malaka; SPP; Phatshoane Henney Inc; Vele VKE;
                                       (015) 295-8163         Phalaborwa & Duiwelskloop Co-location                                                                                               Care Clean; Resolve Workplace Solutions

29. Limpopo Dept Health                Clifford Motsepe       Provincial Linen Management Services              Transaction Advisors appointed.                                                   Ignis; Munyai Malaka; SPP; Phatshoane Henney Inc; Vele VKE;
                                       (015) 295-8163                                                                                                                                             Care Clean; Resolve Workplace Solutions

30. Limpopo Dept Health                Clifford Motsepe       Accommodation for clinical staff at various       Transaction Advisors appointed.                                                   Procurement Dynamics; Turner & Townsend;
                                       (015) 295-8163         hospitals                                                                                                                           Nalane Manaka Attorneys; SAB&T

31. Limpopo Dept Transport             R Kgosana              Emergency Vehicles Management Services            Transaction Advisors to be appointed.                                             Not yet appointed
                                       (015) 295-1014

32. Mpumalanga Dept Education          Jan Kriel              Schools                                           Transaction Advisors to be appointed.                                             Not yet appointed
                                       (013) 766-5122

33. Northern Cape Dept Housing &       Peter Wakelin          Eco-tourism:                                      Transaction Advisors to be appointed.                                             Not yet appointed
    Local Govt and Dept Agriculture,   (082) 553-8692         10 business sites
    Land Reform, Environment &

34. Northern Cape                      Pat Mokhali            Provincial Government                             Treasury Approval IIA – March 2004.                                               Ignis
    Dept Public Works & Transport      (053) 839-2107         Office Accommodation Services

35. North West Dept Health             Dr TGK Oosthuizen      Victoria Hospital                                 Inception.                                                                        Not yet appointed

36. North West Dept of Transport       Teboho Molaba          Fleet Management                                  Draft Feasibility Study.                                                          Deloitte & Touche
                                       (018) 387-4709

37. Western Cape Dept Health           Japie Du Toit          Hermanus hospital co-location project             Negotiations.                                       Mediclinic Holdings           Ignis
                                       (021) 483-5844

38. Western Cape Dept Health           Japie du Toit          Swellendam hospital co-location project           Treasury Approval I application delayed.                                          Ignis; PHI
                                       (021) 483-5844

39. Western Cape Dept Health           Japie du Toit          Conradie Hospital replacement                     Treasury Approval I application due March 2004.                                   KPMG; Africon; Deneys Reitz Consortium
                                       (021) 483-5844

40. Western Cape Dept Health           Japie du Toit          Eerste River Hospital-Facility Management         Treasury Approval I delayed pending resolution of                                 Ignis; EC Harris; PHI attorneys
                                       (021) 483-5844                                                           HR issues.

Public Entities                        Project Officer        Project                                           Status                                                                            Transaction Advisors
41. Eastern Cape                       Andrè de Vries         Bus company restructuring                         RFP in review.                                                                    Deloitte & Touche
    Mayibuye Transport Corporation     (043) 604-7424

42. Greater St Lucia                   Terri Castis           Eco-tourism:                                      Negotiations underway.                                                            White & Case; Delano Caras
    Wetlands Park Authority            (083) 309-3587         14 business sites

43. Ezemvelo KZN Wildlife              Derek Potter           Black Rhino conservation                          Transaction Advisor to be appointed.                                              Not yet appointed
                                       (033) 845-1513

44. Mpumalanga Parks Board             Abe Sibiya             Eco-tourism:                                      Transaction Advisors to be appointed.                                             Not yet appointed
                                       (013) 759-5307         21 business sites

45. National Housing                   Luthando Vutula        Rental Housing                                    Feasibility Study underway.                                                       Not yet appointed
    Finance Corporation                (011) 644-9872

46. South African Revenue Services     Roger Khouri           IT-Container inspection                           Options analysis completed.                                                       Deloitte & Touche
                                       (012) 422-5200

47. Western Cape                       Adnaan Abrahams        Eco-tourism:                                      Negotiations underway.                                                            Dynacon Technologies; Bell, Dewar & Hall; Busico.
    Nature Conservation Board          (021) 483-4874         15 business sites

                                                           INCEPTION                              FEASIBILITY                              PROCUREMENT                                    NEGOTIATIONS
      2004 SEES EXCITING DEVELOPMENTS                                                           PPP FOUNDATION
          FOR TREASURY’S PPP UNIT                                                                TRAINING 2004
                                                                                          Dates:       9-10 March
                                                                                                       1-2 June
    Uven Bunsee has been appointed                                                                     14-15 September
    acting Head of the PPP Unit at                                                                     24-25 November
    National Treasury, taking the reins                                                   Place:       Johannesburg
    from Aijaz Ahmad at the start of 2004.                                                Cost:        R2 300 +VAT
    Advocate Bunsee was formerly head                                                     Travel and accommodation not included in price.
    of the PPP Unit’s legal desk, having                                                  This acclaimed introduction to South
    driven the production of Standardised                                                 African PPPs has been run by the PPP
    PPP Provisions during 2003.                                                           Unit and the NBI since 2001, attracting
                                                                                          over 1000 people to date, and it
    Ahmad takes up the position of Chief                                                  continues to be booked up in advance.
    Advisor to the PPP Unit, focusing on                                                  The practical two-day session is packed
    strategic planning for the medium and                                                 with useful and inspiring material.
    long-term.                                                                            Enthusiastic presenters explain the
                                                                                          regulatory framework for PPPs, how to
                                                                                          appoint and manage advisors, how to
    The year will see the PPP Unit              Advocate Uven Bunsee, Acting Head
                                                                                          do a PPP feasibility study, how to run
    expanding its capacity to regulate the          PPP Unit National Treasury            sound PPP procurement, how to
    growing number of PPPs in the                                                         structure empowerment in PPPs, gives a
    pipeline, and to provide quality                                                      short introduction to project finance,
    technical advice and support to             ment Act. The Municipal Finance           explains key PPP contracting terms, and
    projects. With some 50 national and         Management Bill, soon to become           introduces PPP contract management
    provincial projects registered with the     law, makes explicit provisions for PPPs   principles. The two days are interspersed
    Unit, the demands on the PPP Unit’s         at municipal level, and requires that     with current South African case studies
    eight professional staff are significant.   the National Treasury take a view on      presented by speakers who have done
                                                their feasibility.                        the deals, and participants are given
    “The PPP Unit’s small inception team                                                  short assignments to consolidate learning.
    has established high standards for PPPs     “We are reviewing the responsibility                  To book contact:
    in South Africa, produced comprehen-        this places on National Treasury in                   Faye Dolley at NBI
                                                                                                      Tel 27 (11) 482 5100
    sive PPP guidelines, done extensive         respect of municipal PPPs and will
                                                                                                      Fax 27 (11) 388 0167
    training, and facilitated eleven deals      be recommending a comprehensive                       Email
    to closure in the last three years. More    strategy to ensure that they are given
    and more departments and public             the technical support necessary for
    entities are seeing the value that can      success”, says Ahmad.                       PPP Transaction Advisor
    be achieved for quality public service                                                   workshop in demand
    delivery through PPPs,” says Bunsee.        In addition to its growing regulatory
    “We will be growing our team to             and technical assistance roles to South   The PPP Unit’s first Transaction Advisor
    ensure that the best possible project       African government institutions, the      workshop in February was over-
                                                                                          subscribed 100%, and two repeats
    solutions are achieved.”                    PPP Unit responds to numerous
                                                                                          have been scheduled. The one-day
                                                enquiries from other governments
                                                                                          session is for professional consultants
    National Treasury’s current mandate to      exploring their options for PPPs. Calls   who want to be Transaction Advisors
    regulate PPPs is in the national and        come mainly from African countries,       to government for PPP projects in
    provincial spheres of government in         but also from South America and from      terms of Treasury Regulation 16 to the
    terms of the Public Finance Manage-         the former eastern Europe.                Public Finance Management Act.
                                                                                          Guidance is provided on how to
                                                                                          prepare bids.
        NEVINA SMITH JOINS NBI’s PPP TEAM                                                 Dates: 16 March and 20 July 2004
                                                                                          Time: 1000 – 1600
              With an academic back-            co-ordination and delivery of PPP         Place: National Treasury,
              ground in education, training     training programmes for National                 240 Vermeulen St, Pretoria
              and development (RAU)             Treasury’s PPP Unit; delivering, with     To book, email:
              and a previous position as        the South Africa Banking Council as a
              Project Manager for the           technical partner, a capacity building
              NBI’s Colleges Collabora-         programme on behalf of the SADC                    How to contact:
              tion Fund (CCF), Nevina is        Banking Association to the public and               National Treasury PPP Unit:
              well placed in her new            private sectors in all SADC countries;    Tel: (27-12) 315-5741 Fax: (27-12) 315-5477
    capacity as Project Manager for the         and raising sponsorship.                      Email:
    NBI’s PPP programme.
                                                                                          National Business Initiative PPP Programme:
                                                Nevina’s appointment once again
                                                                                          Tel: (27-11) 482-5100 Fax: (27-11) 388-0167
    Since her appointment in October            shows the NBI’s commitment to PPPs        Email:
    2003, Nevina has been focusing on           in SA.

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