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					                            INTERNATIONAL BUSINESS PLAN
                                       AND STATUS REPORT
                                                 APRIL 2007
   1. Vision
                  To establish a significant presence on the African continent, which is necessary to achieve
                   KV3‟s vision of being a world class consultancy by 2012.
                  To become the consultant of choice in targeted regions in Africa where long term growth and
                   sustainable earnings potential for KV3 are high.
                  To carry out professional services on projects of significant importance and value within and
                   outside RSA, i.e world class projects.
                  To increase KV3‟s income base beyond RSA in order to spread financial risk and to offset
                   future economic downturns and currency fluctuations in RSA.
                  To increase KV3‟s margins and total profit.


   2. Target/ priority international markets
                   Develop strategic partnerships with value adding firms, to penetrate selected geographic and
                    sectoral markets and to compensate for KV3‟s scarcity of resources and expertise in
                    specialist areas (see Section 7).
                   International Airports.
                   Roads and highways.
                   Environmental and waste management.
                   High voltage transmission, distribution and electrification.
                   Priority countries: Southern Sudan, Tanzania, Namibia, DRC, Zambia, Botswana, UAE.
                   Priority growth regions: SADC region, East Africa, West Africa, Arabian Gulf States.


   3. Methods to procure projects
                   Tendering (open/public tenders and selective invitation) – predominantly for donor funded
                    projects (World Bank, AfDB, EU, JBIC, other)
                   Unsolicited project initiation (existing clients, networks, partners, new target clients)
                   Joint lobbying and marketing with JV partners (planned initiatives with selected partners)




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             TARGET INTERNATIONAL MARKETS




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    4. Current International Business Structure


                                                                          CEO




KV3                                  FinancialDept          Divisional Director: International   Technical
                                     Corporate Man                                               Divisions
Management
                                     HR Man
and support:                         Bid Man




Subsidiary           V3              V3 Consulting       Kwezi V Three       Kwezi V3            ETC         ProMet Kwezi V3
                     Consultores -   Engineers           Engineers           Engineers RDC       (UAE)       Engineers
Companies:
                     Dormant         (Zambia)            Namibia             (DRC)                           (Botswana)
                     (Mozambique)




Non-KV3 office       Southern        Tanzania            Gabon               Nigeria             Ghana       Saudi Arabia
                     Sudan
presence:



    5. KV3 Country Managers
                 In October 2006 an improved management structure was established in the most active
                 international business development countries. Country managers were assigned to these
                 active business development countries with the primary objectives of integrating the KV3
                 technical divisions into the priority international markets and also for selected senior
                 personnel to take ownership and responsibility for growing these markets, with the support of
                 the Divisional Director International and the Bid Department.
                 The role of the country managers is essentially to take overall ownership of growing the
                 business and maximizing engineering opportunities, within a well directed and predetermined
                 business plan. Given the differences in the political, cultural and business environments in
                 these regions in comparison to the more familiar South African environment, the Divisional
                 Director International is required to provide a key supporting role to the country managers in
                 finding the most suitable project opportunities, strategic planning, local partnering and JV‟s,
                 contractual issues, client relationships, administering the subsidiary companies and offices,
                 etc.
                 The following country managers were assigned responsibilities, although future changes and
                 flexibility in these roles may be necessary as circumstances and business environment
                 conditions evolve.
                     Southern Sudan, East Africa and Ghana: Chris Liebenberg
                     Angola: Andre van der Walt
                     DRC, Cameroon, St Helena Island: Graham Isaac
                     Nigeria: Eric Smit
                     Gabon: Chris Cronje
                     Tanzania and Mozambique: Gerhard Verwey
                     Namibia: Jarvis Enkara (based in Windhoek)
                     Zambia: Chris Liebenberg & Jonathan Horn (Jonathan will assume full responsibility after
                      June 2007)
                     Botswana: Jonathan will continue with the current activity of finding a suitable entity for
                      KV3 to acquire/merge in order to establish an international design office outside RSA.
                     UAE and Middle East: Bertie Vorster
                     ProMet-KV3 mining entity and airport initiatives: Jonathan Horn.

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   6. Brief country synopsis & short term strategic actions (2007)
       6.1 Southern Sudan: Within the current JV Contract, KV3‟s electrical design obligations have
           essentially been completed. However, in the case of the roads and drainage sector the detail
           design of the remaining 9 towns still needs to be completed once the geotechnical and surveying
           field teams have been deployed. However, due to the backlog of fee payments, the JV has put
           the deployment of these field trips on hold for the time being. Beyond this only supervision of the
           current construction contracts in Juba remain, at which KV3 currently employs 3 site staff plus
           one in Nairobi. These contracts are likely to drag on for the rest of this year given the current poor
           construction performance.

             To date approximately R10M fees have been earned by KV3, of which only R4M has been paid.
             Further fees amounting to R20M, which includes about R6M of planned outsourced and direct
             costs, is expected to be earned this financial year under the current JV Contract. The extended
             works for R20M fees is on hold, pending the full payment by the client of all outstanding invoices.

             The World Bank has a potential $5 billion spending program over a 5 year period for Northern and
             Southern Sudan. The proportion of this that is actually made available and the projects that are
             finally rolled out will depend to a large extent on donor countries coming to the party, the
             probability of this occurring being largely dependent on political and economic improvements in
             the greater Sudan in the near future. The current thinking is that Southern Sudan will continue to
             be the focus of World Bank donor funds via the current joint MDTF scheme (World Bank 1/3,
             GOSS 2/3) that pays for the current JV projects, but with far less donor funds being made
             available than originally planned. Other future work prospects for KV3 are direct GOSS funded
             projects (high prospect especially at regional and state level), USAID funded projects
                                                               nd
             administered by Louis Berger (high prospect in 2 half of 2007 – US$700 million budget for rural
             roads and bridges) and future EU and AfDB funded projects (not likely before 2008).

             Current Actions:
                 KV3 proceeding with the establishment of 100% owned incorporated entities in Nairobi (or
                  Kampala) and Juba, with Juba being operated as a „satellite‟ office of Nairobi with only core
                  staff employed on a time & expense basis.
                 Interview being facilitated with a potential regional manager of KV3 in East Africa, Graham
                  Watson, without which the success of a KV3 presence in East Africa might not be
                  achievable.
                 MM and JH to explore the suitability of Multi-Konsults and Kagga & Partners for possible
                  acquisition and low cost design base to serve the Southern Sudan and East Africa region.
                 The intended launch of KV3 in Southern Sudan and Kenya to be marketed extensively with
                  GOSS, World Bank, USAID, EU and RSA Foreign Affairs to maximise client support and to
                  increase KV3‟s profile in the region.
                 Chris Liebenberg to further pursue avenues to deal effectively with the immediate technical,
                  contractual and financial risks within the current JV contracts.
       6.2 Botswana: ADA Consulting has now been considered as a potential candidate for acquisition to
           establish the international KV3 design office in 2007.
             Bergstan Africa have also recently indicated their willingness to re-open the negotiations with KV3
             to merge, following imminent restructuring of the Bergstan Group. The CEO has been briefed and
             will follow-up with informal discussions in the near future.
             In April 2007 Aker Kvaerner and ProMet-Kwezi V3 submitted its first comprehensive pre-
             qualification bid to Debswana for a large mining project in Botswana, a feasibility study for the
             Jwaneng MTP Replacement. Jwaneng is the richest diamond mine in the world.
             Actions: A comprehensive Due Diligence Report of ADA has been compiled and is currently being
             reviewed by Phil, JP and JH. A recommendation will be made to the CEO by 30 April 2007.
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             DP, ES, LS and JH to workshop KV3 design scope, responsibility marix and resource
             requirements with ProMet Africa for the expected Jwaneng project, by end April 2007.
       6.3 International Financial Services Centre (IFSC), Botswana: The establishment and registration
           of an international holding company, accredited to the IFSC is on hold, pending the outcome of
           the acquisition of ADA.. Price Waterhouse Coopers to be appointed to assist KV3 in this process.
       6.4 Zambia: The Zambia office is growing very well this year and it is expected to yield a 28% profit,
           before tax, in the current financial year. The recent appointment of a very capable and well
           regarded engineer, Mangani Zulu, has paid dividends and he has generated new work in his own
           right and also justified the temporary employment of additional contract engineering staff to
           service the increased Zambian workload. The country is benefiting from a stable democracy,
           healthy economic growth and the mining industry is booming.
             However, tensions have developed between the shareholder and the office manager, Mangani
             Zulu, regarding the operations and financing of the company. It appears that Mangani does not
             have adequate access to the day-to-day management functions or sufficient financial
             management control to perform his role properly.
             Actions: Due to his increased project responsibilities in Southern Sudan and the rapidly expanding
             Environmental Division and increased PPP activity, Chris Liebenberg handed over the
             responsibility of driving the business development and KV3 support to the Zambian office to
             Jonathan in November 2006. New lucrative markets were identified, particularly in the rapidly
             growing copper mining sector and a Zambian specific business plan with increased business
             expansion initiatives will be compiled by end April 2007.
             CL and JH to market the Zambian mining sector and address the office administration issues
             during an intended visit to Lusaka early May 2007.
       6.5 Namibia: The office manager, Jarvis Enkara, has been seconded to Namdeb in Oranjemund on
           a full time basis from December 2006 to end June 2007. This assignment is likely to be extended
           to December 2007. Okahandja B1 City Project, is being planned on a risk basis with significant
           scope for KV3. In March 2007, KV3 was shortlisted in a consortium with Lithon for a 237km road
           upgrade to be funded by a Japanese donor fund JBIC, Nkurenkuru to Elundu, in northern
           Namibia. The final technical and financial tender was submitted on 11 April 2007 (Total fee value
           N$ 57 million).
             Actions: An additional professional engineer for the Windhoek office to be recruited, to fulfill the
             role of acting office manager and also to pursue the Okahandja B1 City Project and other civil
             projects. Recruitment requirements and conditions have been approved by the board of Kwezi V
             Three Namibia.
             Mining projects to be pursued on behalf of ProMet-Kwezi V3.
       6.6 DRC: The DRC is still politically unstable and will be for the foreseeable future. This is unfortunate
           as most of us had hoped there would be stability after the presidential elections.
             The situation thus remains very volatile and the challenge for the government is to consolidate
             and expand recent political achievements and to transform the economy to unlock the vast
             resource potential and create an investor friendly business environment.
             The 12 month temporary term of Bevan Nganduna as office manager of the Kinshasa office
             expired in April 2007. A suitable and more senior replacement has been identified and is currently
             being interviewed. However, the DRC business has not been successful to date and so the future
             of KV3 in this country is also under investigation. Furthermore, KV3‟s business partner, Socodam,
             is financially constrained due to the new DRC government not paying its customs concessioning
             payments and therefore it is unable to pay its share of the KV3 office overhead costs.
             Actions: A large infrastructural project, 50km of access roads & drainage (USD 42 million) and
             bulk water supply & reticulation (USD 25 million) for poor neighborhoods in Kinshasa, has recently
             been approved for funding by the IDA division of the World Bank. JH to investigate more details
             from the World Bank representative for DRC and assess likelihood of KV3 winning this project. A
             country risk assessment also to be investigated. Then conclude the DRC investigation and
             recommend a strategy and actions to the CEO by mid May 2007.
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       6.7 Mozambique: The Mozambique office closed down at end June 2006 (see the Mozambique
           company report dated Feb 06). V3 Consultores Lda, including the current office address, has
           been registered as a dormant company. The shareholding has been transferred from Dave
           Pournara (now no longer employed by KV3) and Bertie Vorster to Jonathan Horn and Gerhard
           Verwey.
             Actions: All further project pursuits in Mozambique to be pursued by KV3 RSA. Roads projects to
             be pursued by the KV3-Pyramide JV, particularly ANE roads projects.
       6.8 Mauritius: KV3 is working on risk at this stage on a potential hotel and tourist villa development
           (20 ha) as the principal agent for a prominent developer/land owner in Mauritius, on the coast
           west of Port Louis. Connie de Lillie of Chameral Properties, well known to KV3, has offered KV3
           all engineering design and project supervision services. Connie has a 20% share in the SPV
           company formed to develop the hotel and villas. In principle funding has been granted by Investec
           subject to a complying feasibility report and land re-zoning approvals given.
             Actions: LS currently forming a professional team and also identifying a suitable hotel operator.
             Land re-zoning documentation being finalized after which project planning meetings will
             commence.
       6.9 Angola: Global Civil Solutions (construction) requested KV3 to partner with them in current
           infrastructure work being undertaken in Angola and other regions in Africa, mainly in rural roads
           and electrification projects. The MD, Andy Shand, met with A vd Walt and JH in Feb 2007 to
           discuss opportunities and mutual benefits.
             Actions: Specific project opportunities will be identified by Global on completion of current contract
             negotiations with clients in Angola. KV3 will then assess the scope, review the risks and respond
             to these opportunities accordingly.
     6.10 Saudi Arabia: In Feb 2006 - KV3 was appointed by SAACE, on behalf of DTI, to facilitate the
          establishment of the Arabian Gulf Export Group (AGEG) with the purpose of promoting more
          exports and business penetration by South Africans into Arabian Gulf region, initially targeting the
          Saudi Arabian market. This project has been identified by the RSA government as a pilot initiative
          which will later lead to the establishment of a larger “Phezulu Export Group” targeted at multiple
          international export regions. This project has given KV3 a high profile within the government and
          RSA industry councils and JH has subsequently briefed and accompanied the Minister of Trade
          and Industry, Mandisi Mpahlwa, on two state visits to Saudi Arabia, one of which included
          President M‟beki to further promote the AGEG. An extension to the KV3 appointment is currently
          being finalized, to establish the entities, operational procedures and offices in RSA and in Saudi
          Arabia that will execute the AGEG functions.

             Hans Karemaker has been working at risk on a significant abattoir project in Saudi Arabia, with a
             local Saudi developer. Divac-RSA will enter into a Design, Build and operational – Turnkey
             assistance to the Kingdom of Saudi Arabia Project Owners. Bigen Africa and Kwezi V3 will form a
             Joint Venture to undertake the engineering design, construction supervision and project
             management associated with the proposed abattoir and feedlot. The feasibility report has been
             completed and project finance has been approved by a Saudi Bank. Currently legal
             documentation and the formation of the operating entity are being finalised, before the
             commencement of the project.


             JH and a Bahrain based business colleague are facilitating a meeting between CEO of De Beers,
             Gareth Penny, and a prominent Prince and businessman in Saudi Arabia with an interest in
             investing a large amount of money in RSA. Prince Bandar also has a personal interest in
             diamonds and he intends to establish the largest jewellery retail centre in the Middle East in
             Riyadh. The business interest for KV3 is in picking up any engineering opportunities that may
             arise as a result of Prince Bandar‟s investments in RSA or possibly abroad. The following is an
             extract from the DATCO company profile, of which Prince Bandar is the Chairman.



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             „HRH Prince Bandar Bin Mohammed Bin Abdulrahman Al-Saud is one of the most renowned and
             successful Saudi business tycoons famed all over the Middle East. As a great personality he
             enjoys a sky-high status not only by virtue of his Royal blood, being a first cousin as well as a
             brother-in-law of his majesty the King, but also by his profuse business acumen. HRH's keen eye
             for investment has brought for him tremendous success, and it is under his able leadership that
             DATCO has also reached a most coveted level of successes today. HRH is also acclaimed
             worldwide for his humanitarian services and has been a major contributor to the UN sponsored
             rehabilitation programmes in Afghanistan and Iraq.‟

     6.11 UAE, Oman, Qatar, Bahrain: Due to the current challenges in KV3 regarding scarcity of
             productive engineering resources and inadequate, unavailable or lack of access to expertise in all
             the engineering sectors that may be required for a typical large project opportunity in the Middle
             East, a different strategic approach has been discussed with the CEO to penetrate the Middle
             East market (excluding the Emirate of Abu Dhabi). The following rationale and strategy is being
             finalised with a potential partner, PDNA, to provide design services on a sub-consultancy basis to
             Atkins in UAE, Oman, Qatar and Bahrain.
              KV3 and PDNA have identified certain strengths and specialist capacities within their
                respective companies which compliment each other well in a multi-disciplinary project team,
                for example M&E (KV3) and structures (PDNA).
              The market environment in the Gulf region is very harsh, globally very competitive,
                unaccommodating to small newcomer companies (within which both RSA companies would
                be classified) and cashflow management is unpredictable and unreliable in the Arabian
                business environment and this can easily destroy small isolated businesses struggling to
                penetrate the markets in the Gulf region.
              The typical project size, resource demands, fast-track delivery requirements, financial risk and
                the remote legal and contractual environment in the Arabian Gulf states are good reasons for
                two like-minded South African consultancies to work together effectively in a trusting
                relationship, pool together their knowledge, resources and share the marketing, risks and
                rewards.
              KV3 and PDNA have a good prospect of working jointly on a sub-consultancy basis for Atkins,
                which has a significant presence in the Middle East particularly in UAE, Oman, Qatar and
                Bahrain. Working directly for Atkins on projects already won by them, would alleviate to a large
                degree many of the above-mentioned risks and also allow us to negotiate sub-consultancy
                contracts for projects or components of projects only for the services and engineering
                disciplines for which we have adequate and available resources to deploy effectively from
                RSA, thereby also maintaining control of our ability to perform and deliver.
              KV3 already has a small presence in the Emirate of Abu Dhabi which is currently active, i.e
                Engineering and Technology Consultancy (ETC). So the proposed working relationship
                between KV3 and PDNA would not include any projects in the Emirate of Abu Dhabi.
             Actions: JH and the Divisional Director International of PDNA met with Roger Nickells, Regional
             Director of Atkins Middle East, on 20 February 2007 in Dubai. The above-mentioned prospect
             was discussed and well received by Atkins. The CEO‟s of KV3 and PDNA have been briefed and
             in principle approval given to proceed with this arrangement. Currently awaiting final review by
             PDNA of a proposed joint KV3/PDNA proposal to Atkins.
     6.12 Libya: A Libyan delegation under the leadership of a special envoy of Col Khadaffi visited South
             Africa earlier this year and invited Sipho Mahamba to introduce a consulting engineering company
             to the Libyan authorities in Tripoli.
             KV3 and Stefanutti and Bressan (S&B) were invited to join this delegation. The CEOs of KV3
             (Francois Jacobs), S&B (Gino Stefanutti) and Sipho visited Tripoli from 11 to 14 February 2007.

             Meetings were held with Mr Khalifa, the host and agent in Libya, the Ministers of Infrastructure
             Development, Transport, General Manager of a Libyan foreign bank, Head of the Saving and

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                                               Page 7 of 12 pages
             Real Estate Investment Bank, various officials from the Departments of Housing, Infrastructure
             and Co-operation and an attorney to assist with setting up business in Libya.

             Libya was exposed to sanctions for a long time. During this period, infrastructure maintenance
             was neglected, resulting in a huge backlog, not only in maintenance, but also the provision of new
             infrastructure. In certain areas, raw sewage is flowing into the sea, because the purification
             works are non-functional.

             There are Libyan consulting engineering companies based in Tripoli. The general view, however,
             is that they are fairly inexperienced, due to the lack of exposure beyond Libyan borders and the
             limited investment in development projects in Libya for a considerable time. They also lack the
             necessary capacity to handle the new investment in infrastructure development.

             The opportunity for KV3 to be involved in the reconstruction of Libya, stems from the view that
             there has always been a very good relationship between our governments on political level, but
             this has not adequately precipitated in economic benefits.

             During the meetings with the Ministers, it was stressed by them that they want KV3 involved in
             Libya, that we have an advantage of being first, but it was also pointed out that there is huge
             interest from various foreign companies, wishing to invest in Libya (Libya is one of the major oil
             producing countries in the world, with big reserves).

             The Minister of Infrastructure pointed out that they prefer working with RSA companies and he
             recommended that we work with a Libyan company. He indicated that 420 000 houses must be
             built by 2011.

             During meetings with senior officials, it was agreed that three regions would be allocated to KV3
             for the roll-out of infrastructure, namely:

              West Tripoli Area (± 1 300 hectares)

              Tarkhouna

              Azizia

             An agreement to this effect was signed with the Housing and Infrastructure Board. CD‟s of
             designs by other consulting engineers were handed to us in a meeting with these consultants, for
             us to review (ISO and British Standards are used in Libya).

             The government would also require the following assistance in addition to design, project
             management and design reviews:

                Training and capacity building

                Establishment of a management structure

             Compensation would be negotiated on a project-by-project basis and would be based on a
             combination of the following:

                Time and cost

                Man-months

                Percentage of project value

                Fixed price

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             The following other opportunities are also in the offing:

             1. Three new airports, including one in Tripoli.

             2. New offices for Libyan Foreign Bank. This is potentially a huge project which might include a
             shopping centre, hotel, etc.

             During our visit we were introduced to a potential JV partner, the Saving and Real Estate Bank.
             This is a government owned bank responsible for housing development. JV companies in Libya
             work on a basis whereby Libyan companies should have at least 35% shareholding. The
             advantage of having a partner like this, is that we do not have to tender for work, but can
             negotiate directly for a project. A meeting was also held with a Libyan attorney Dr Elaffi,
             recommended to us by the Special Envoy. During this meeting Dr Elaffi briefed us on the
             procedure for establishing such a company and provided us with a pro forma JV Agreement.

             Actions:

             That a JV Agreement be negotiated with the Saving and Real Estate Bank.

             That we should endeavour to keep KV3‟s shareholding as close as possible to 65%.

             That firm appointments be negotiated as a matter of urgency.

             That discussions be entered into with Libyan consulting engineering companies with the view of a
             merger or acquisition.

             That personnel be identified/sourced to support this initiative in anticipation of formal
             appointments.

             That an agency agreement be entered into with Mr Khalifa.

     6.13 New International KV3 Brochure: The rollout of a new international company brochure,
          separate company letterheads in the official national language and signage for each international
          office.
             Actions: New standardized letterheads completed and implemented. Office signage installed at
             the Windhoek and Kinshasa offices. Draft International brochure complete and currently being
             reviewed and proof read (Fred Wait is driving this together with other KV3 marketing material
             development).
     6.14 Country political and commercial risks: Due to the further growth of KV3‟s international
          business and particularly the current interest, activity and office presence of KV3 in some of the
          highest risk regions of Africa (eg. DRC, Sudan, Libya), it is necessary to investigate a
          comparative risk analysis of all the target countries and regions in Africa and Middle East.
             This information will also be used in making informed strategic decisions on new and future
             initiatives as well as resolving current and new issues/risks in KV3‟s international business
             operations.
             Actions: Professional and academic risk and research institutions to be explored for undertaking
             the required risk analysis for KV3. The CEO to be briefed on options and costs by end May 2007.




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    7. International partnerships and alliances, rev.2 (April 2007)

                                                                 ACTIVE INTERNATIONAL PARTNERSHIPS
Partnership category   Partner name       Country/ region       Business objective        Exclusive/ non-   KV3 relationship   Status                             Actions
                                                                                          exclusive         manager
Strategic alliances    AECOM              RSA,                  Integrated                Non-exclusive     J Horn             AECOM wants a structured           Recent joint meetings (AECOM-KV3)
(long term)                               (also Southern        transportation                                                 alliance with KV3, with            with govern transportation clients,
                                          Sudan, Angola,        planning, ITS,                                                 prospects of acquisition in        Treasury. RSA rep transferred to CT to
                                          Uganda)               municipal capacity                                             future (good access to USAID       work with KV3.
                                                                building, select PPP‟s                                         and USTDA funding)
                       COWI               RSA, West Africa,     Govt. & institutional,    Non-exclusive     C Liebenberg       COWI wants a structured            Recent meetings with top executives,
                                          East Africa,          water, sanitation,                          (KV3 PPP           alliance with KV3, with            Jan 07. CL has good working
                                          Southern Africa       enviro, Integrated                          champion)          prospects of acquisition in        relationships with COWI in Moz, Zam &
                                                                transportation                                                 future (good access to EU          DWAF on current projects. Letter sent
                                                                planning, select PPP‟s                                         funding, compatible business       to PJFJ by Exec Vice Preseident
                                                                                                                               culture)                           (Henning Therkelsen) suggesting a
                                                                                                                                                                  structured relationship.
                       DB International   All – International   Rail                      Non-exclusive     J Horn             DB International wants a           Negotiate MOU – DBI/TT/KV3 for
                       & Tubular Track                                                                      (need new KV3      structured alliance with KV3.      selected projects (KV3 has first right for
                                                                                                            rail champion?)    KV3 needs a strong int partner     alignment , earthworks & pavement
                                                                                                                               to penetrate the rail market.      design)
                       ProMet Africa      All – Africa          Mining infrastructure     Excl – Botswana   J Horn             Registered company – ProMet        Establish separate Namibian company
                                                                                                                               Kwezi V3 Botswana                  - May 07
Country Partnerships   Gibb Africa        Southern Sudan        All infrastructure        Exclusive         PJF Jacobs         JV Consultancy Contract, to be     Current JV issues to be actioned by CL.
(Local/ Regional)                                                                                                              terminated on completion of        JH and CL to implement office
                                                                                                                               current project.                   establishment actions –April 07.
                       Norplan            Tanzania              Roads                     Non-exlcusive     G Verwey           New relationship                   Review relationship in April 07
                       Lithon             Namibia               Roads and civil           Non-exclusive     J Horn             New (small, high quality, loyal)   Review relationship in April 07
                       Pirâmide &         Mozambique            Roads                     Non-exclusive     G Verwey           New (Small, BEE, very well         Review relationship in April 07
                       Envirowater                                                                                             connected to ANE, Moz Govt &
                                                                                                                               RSA govt)
                       ADA                Botswana              Acquisition for new int   Exclusive         J Horn             Financial report currently being   Due diligence to be done by KV3
                                                                design office                                                  drafted, to be followed by due     (March 07), then negotiate terms of
                                                                                                                               diligence by KV3                   acquisition
                       Conterra           Ghana                 All infrastructure        Non-exclusive     J Horn             New (med size, v well connect)     Review relationship in Sep 07
                       IGG                Abu Dhabi (UAE)       All infrastructure        Exclusive         B Vorster          Well established - current         Bertie to register KV3 branch in UAE.
                                                                                                                                                                  Identify suitable successor to Bertie for
                                                                                                                                                                  post 2008.
                       PDNA               Atkins -              Selected KV3              Non-exclusive     J Horn             New (PDNA and KV3 currently        Negotiate MOU with PDNA, then
                                          subconsultancy        infrastructure                                                 considering cooperation).          identify/pursue specific assignments
                                          assignments in        services, eg. M&E,                                             Atkins Reg. Director Middle        with Atkins April 07.
                                          Middle East           water treatment, envir                                         East is favourable to such an
                                                                and waste manage                                               arrangement


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                                                    Page 10 of 12 pages
Partnership category   Partner name       Country/ region        Business objective        Exclusive/ non-   KV3 relationship   Status                           Actions
                                                                                           exclusive         manager
Country Partnerships   Al-Msrafia Al-     Libya                  All infrastructure        Exclusive         PJF Jacobs         Mutual visits and negotiations   Key KV3 technical team to be deployed
– continued            Watnia                                                                                                   underway.                        to Libya to identify and scope viable
(Local/ Regional)      Investment Bank                                                                                                                           projects and commence resource and
                                                                                                                                                                 mobilsation planning. Country and
                                                                                                                                                                 project risk analysis to be carried out.
RSA contractors -      Basil Read         RSA                    Turnkey projects          Non-exclusive     PJF Jacobs         St Helena Airport, Krugersdorp   Negotiate MOU for special preference
special alliances                                                                                                               Stadium – current prospects      for KV3 in turnkey projects?
(Long Term)            Group 5            RSA                    Turnkey projects          Non-exclusive     J Horn             KZN hospitals – current pros     Negotiate MOU for special preference
                                                                                                                                                                 for KV3 in turnkey projects?
Project based          Atkins             RSA                    Gautrain                  Non-exclusive     PJF Jacobs         MOU and Service Contract         Current project (about 15 KV3
partnerships                                                                                                                                                     employees full time in Atkins office)
(Short Term)           Mott MacDonald     All - Global           Airports                  Non-exclusive     G Isaac            St Helena Island Airport         2nd round of bids due shortly, then site
                                                                                                                                                                 visit to St Helena Island
                       Nippon Koei        All Africa             JICA and JBIC funded      Non-exclusive     J Horn             Namibia and Mozambique           Currently shortlisted for Rundu to
                                                                 infrastructure projects                                        Roads projects – current         Elundu Road Project in Namibia
                                                                                                                                tenders
                       Pangea (RSA) &     RSA                    Eskom power               Non-exclusive     M Mulaudzi/ Ian    Tender submitted Feb 07          Await outcome of tender
                       Fichtner/Atkins/                          generation projects                         Young
                       Coyne & Bellier/                          (Cat B)
                       Worley Parsons
                       Fichtner           Swaziland              Hydro power                                 M Mulaudzi/ Ian    New – Swaziland prospect         Lobbying visit to key stakeholders,
                                                                 generation                                  Young                                               Mbabane planned – Feb 07




 2011/06/02
                                                       Page 11 of 12 pages
           8. New International Projects Awarded (last 6 months):
 Country            Date         Project                 Project     Project         Client             KV3 fee       Project      Comments
                    awarded      Description             No          period                             value         Director
 Southern           March        Additional designs      212380      12 months       GOSS                 R20 million Chris Lieb   JV with Gibb Africa.
 Sudan              2007         for 9 state capitals of                                                                           Work on hold due to
                                 Southern Sudan                                                                                    payment issues
 Namibia            Dec 2006     Productivity and        214660      6 months        Namdeb                 R470,000 G Enkara      T&E secondment
                                 operational training
 Namibia            Sep 2006     Policy formulation      223320      3 months        Namibia                 R50,000 G Enkara      Training assignment
                                                                                     Electricity
                                                                                     Commission
 Nigeria            Feb 2007     M&E refurbishment       223350      10 months       World Bank             R990,000 Eric Smit     Project underway –
                                 of World Bank bldg                                                                                very positive feedback
                                                                                                                                   from WB to date.
 Rwanda             April 2007   Feasibility study for   220380      10 months       AfDB                 R1.6 million Chris       Sub-consultant to DB
                                 Isaka – Kigali                                                                        Cronje      Int. Consultancy
                                 railway                                                                                           contract currently
                                                                                                                                   being negotiated
 Mozambique         January      PPP Strategy and        222820      6 months        World Bank            R 320 000 Chris Lieb    Partnership with
                    2007         Manual for Maputo                                                                                 COWI
 Mozambique         April 2006   Waste Management        216270      14 months       Danida                R 250 000 Chris Lieb    Working for COWI as
                                                                                                                                   International PPP
                                                                                                                                   specialist
 Zambia             Various      Network Mapping                     1 month each    Various other       R 72 000 per Chris Lieb   Subconsultancy
                                 (about 4 contracts)                                 consultants               project             spoecialist work
 RSA                Feb 2007     Masibambani III.        223650      6 weeks         EU                    R 380 000 Chris Lieb    Partnership with
                                 National water                                                                                    COWI
                                 funding support
                                 appraisal study




           9. Major projects for which KV3 has been shortlisted (last 6 months):
Country         Date             Project                 Project      Project           Client          KV3 fee        Project     Comments
                shortlisted      Description             No           period                            value          Director
St Helena       March 2007       New international       218230       36 months         DFID (UK)          R18 million G Isaac     JV with Basil Read,
Island          (2nd round)      airport – design,                    (design &                                                    Mott MacDonald,
                                 build, operate                       supervision)                                                 Blueprint, RAL

Namibia         Feb 2007         Rundu – Elundu          225220       42 months         Namibia          R19.5 million G Verwey    JV with Lithon, Seal
                                 Road upgrade                         (design &         Roads                                      and Nippon Koei.
                                                                      supervision)      Authority                                  Final tender
                                                                                        (JBIC funded)                              submitted on 11 April
                                                                                                                                   2007.
Gabon           April 2007       Civil and struct                     Defined period Megchem              Defined fee Chris        Design assignments
                                 designs (industrial),                for each                               for each Cronje       as sub-consultant to
                                 for Shell facilities                 assignment                          assignment               Megchem
Saudi Arabia    April 2007       Abattoir in Saudi       212030       18 months         Tackween            R7 million Hans      Divac – turnkey
                                 Arabia                                                                                Karemaker contractor
                                                                                                                                 Bigen/KV3 – PM and
                                                                                                                                 design




    JONATHAN HORN MIEAust, CPEng (Aust)
    DIVISIONAL DIRECTOR: INTERNATIONAL
    KWEZI V3 ENGINEERS

       2011/06/02
                                                                  Page 12 of 12 pages

				
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