Capitol1
July 14th, 2010, 10:43 AM
PPP project for Department of Basic Education successfully handed over on time and within budget
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Group Five today announced that it was issued with a Certificate of Completion from the Department of Education for the successful completion of a new serviced Head Office for the Department of Basic Education in Pretoria. The PPP is a 27-year project, ranging from construction through to operations and maintenance.
Group Five’s Building business unit was the lead construction partner on this PPP, which started in 2007. Its joint venture construction partners were Makhosi Infrastructure and Fikile Construction.
“The success of this project can be attributed to effective partnering across all stakeholders. The level of contractual complexities inherent in PPPs do not easily allow for variations during the construction phase. However, our deep understanding and experience of the risk allocations within PPPs enabled us to accommodate two significant changes during the project while still completing on time,” said Group Five CEO Mike Upton.
Group Five has more than a decade of experience in the PPP/concessions market, having invested in or operated contracts in South Africa, Hungary and Poland. The group is currently pre-qualified for a number of other South African PPP projects across the transport, energy and buildings sectors. In a number of these cases, concessions vary from 15 to 25 years. If successful, these contracts are therefore set to provide the group with further secured construction and investment opportunities.
PPPs have been identified by the South African government as a means to deliver infrastructure contracts through the involvement of the private sector, as these partners can design, construct and manage assets, as well as raise debt and provide equity, thus reducing the burden on national resources.
Upton concluded:
“The financial engineering and operating models of concessions or PPPs require an in-depth knowledge of structured project finance, debt and equity raising, engineering, design and construction contracts and operations and maintenance, which we have managed to deliver on. We are extremely proud of this, as it has once again proven our ability to deliver on extremely complex projects and work with a number of different partners. It is also another example of our ability to work across the infrastructure value chain to receive income across a contract and not just from the construction portion.”
“We are also extremely pleased about the safety on this project, with no fatalities and only two minor injuries over the three years – a great achievement. Furthermore, we procured 38% of our contract value through BBEEE companies and 45% through SMMEs working in Tshwane. Both these initiatives empowered the community around the facility, something we rate highly.”
The facility provides A-grade office accommodation:
• Consisting of a low rise structure with two parking basements and ground, plus three levels of offices
• It includes a refurbished historical building – Jansen House and its stables
• The constructed area is approximately 52 000m2 and the rentable area approximately 34 000m2
• It houses approximately 1 200 Department of Basic Education employees, includes secure printing facilities for national examinations and has a conference centre and ministerial office accommodation
http://i764.photobucket.com/albums/xx289/capitol_1/dept_education-1.jpg
http://i764.photobucket.com/albums/xx289/capitol_1/PPP1-1.jpg
http://i764.photobucket.com/albums/xx289/capitol_1/doe01-1.jpg
http://i764.photobucket.com/albums/xx289/capitol_1/PPP2-1.jpg
http://i764.photobucket.com/albums/xx289/capitol_1/PPP3-1.jpg
Group Five today announced that it was issued with a Certificate of Completion from the Department of Education for the successful completion of a new serviced Head Office for the Department of Basic Education in Pretoria. The PPP is a 27-year project, ranging from construction through to operations and maintenance.
Group Five’s Building business unit was the lead construction partner on this PPP, which started in 2007. Its joint venture construction partners were Makhosi Infrastructure and Fikile Construction.
“The success of this project can be attributed to effective partnering across all stakeholders. The level of contractual complexities inherent in PPPs do not easily allow for variations during the construction phase. However, our deep understanding and experience of the risk allocations within PPPs enabled us to accommodate two significant changes during the project while still completing on time,” said Group Five CEO Mike Upton.
Group Five has more than a decade of experience in the PPP/concessions market, having invested in or operated contracts in South Africa, Hungary and Poland. The group is currently pre-qualified for a number of other South African PPP projects across the transport, energy and buildings sectors. In a number of these cases, concessions vary from 15 to 25 years. If successful, these contracts are therefore set to provide the group with further secured construction and investment opportunities.
PPPs have been identified by the South African government as a means to deliver infrastructure contracts through the involvement of the private sector, as these partners can design, construct and manage assets, as well as raise debt and provide equity, thus reducing the burden on national resources.
Upton concluded:
“The financial engineering and operating models of concessions or PPPs require an in-depth knowledge of structured project finance, debt and equity raising, engineering, design and construction contracts and operations and maintenance, which we have managed to deliver on. We are extremely proud of this, as it has once again proven our ability to deliver on extremely complex projects and work with a number of different partners. It is also another example of our ability to work across the infrastructure value chain to receive income across a contract and not just from the construction portion.”
“We are also extremely pleased about the safety on this project, with no fatalities and only two minor injuries over the three years – a great achievement. Furthermore, we procured 38% of our contract value through BBEEE companies and 45% through SMMEs working in Tshwane. Both these initiatives empowered the community around the facility, something we rate highly.”
The facility provides A-grade office accommodation:
• Consisting of a low rise structure with two parking basements and ground, plus three levels of offices
• It includes a refurbished historical building – Jansen House and its stables
• The constructed area is approximately 52 000m2 and the rentable area approximately 34 000m2
• It houses approximately 1 200 Department of Basic Education employees, includes secure printing facilities for national examinations and has a conference centre and ministerial office accommodation