'Plot 21' commends PPPs as the way to go
KABO MOKGOABONE
Staff Writer
| Thursday August 7, 2008 00:00
Two projects in Gaborone have come in handy for proponents of PPPs eager to illustrate the efficacy of this approach: one is the prompt delivery of the building housing the Office of the Ombudsman and the Lands Tribunal at the Main Mall recently.
The other is the SADC headquarters at the new CBD that is on track for completion in June next year.
The P50 million aesthetic, face-brick block on the corner of Khama Crescent and Queens Road at the Main Mall, which has already attracted the jazzy moniker of 'Plot 21' after its physical address, is the product of a partnership between the government and a private sector consortium led by the Botswana Insurance Fund Management (Bifm), the sole financier.
The consortium announced the presentation of Plot 21 to government on Monday. Bifm CEO Victor Senye told journalists during a media tour of the two buildings, after the presentation of Plot 21, that the consortium was delighted with the outcome of the project.
'We are not only happy to have been given the opportunity by government,' Senye said, 'but we are delighted that the project has been delivered on time and within budget.'
'Clearly, the contractual obligations of the parties play a significant role in ensuring that the delivery is achieved'.
Under a PPP, risk is normally transferred to a party best placed to manage it. The objective is to deliver the public services in the most effective way while stimulating the private sector's contribution to economic development, simultaneously allocating risk and return between the parties involved to ensure that the best interests of stakeholders are served.
Plot 21 commenced on February 21, 2007 and was completed by June 20,2008, delivered within budget and time. The building is already occupied.
The parties involved are the government of Botswana, which owns the piece of land; Bifm, which provided the bulk of the financing for the P54-million project; and Stocks & Stocks Botswana, which was responsible for design and construction.
The other shareholders are Stocks Building Africa, which is the consortium leader of the building, and a local facilities management company, Outsourcing Botswana, which is responsible for the management and maintenance of the building through the life of the 10-year concession to 2017.
Meanwhile, the Project Manager for the new SADC headquarters project, Samuel Sedumedi, says despite the challenges of the rains at the beginning of the year, the project should be delivered by June next year.
The project commenced on October 15 last year and is scheduled for completion by May next year.
The P160 million SADC project is steered by Bogwe Consortium which comprises Bifm, Stocks & Stocks Botswana and Outsourcing Botswana. It is co-financed by Barclays, Bifm and INCA of South Africa.
The financial agreement between Bongwe Consortium and the lenders was done on October 12, 2007 while the PPP agreement for the project design and construction was signed between the Secretariat, Bongwe Consortium and the government of Botswana on August 23, 2007.
The seven-floor SADC headquarters is being built on CBD Plot 54385 measuring 11,343,000 square metres on a 99-year lease to the Secretariat.
The building will accommodate the structures of the regional economic bloc, which are currently scattered around Gaborone. It has the capacity to accommodate 250 members of staff.