OIDUS FOCUS Registered at GPO as a Newspaper | Volume 3, Issue #3
Botswana’s Architecture Design and Urban Landscape Newspaper | M A Y 2 0 1 3
www.boidus.co.bw
NEWS | page 03
MARKETS | page 05
SUSTAINABILITY | page 06
PRACTICE | pages 14, 18
Addis Abeba Chamber of Commerce Headquarters Winning Proposal / BC Architects
Housing Finance in Africa: A Review by Finmark Trust [2011 Yearbook]
Managing the Transition to green and healthy business
THE PM SPHERE - Stakeholder Engagement - Avoiding White Elephant Creations
P8.00 (Including VAT) BOIDUS EXCLUSIVE FEATURE >
Turnstar Holdings Acquisition; Mlimani City Mixed-use development in Tanzania
BOIDUS EXCLUSIVE >
The future for Growth Lies in the African Emerging Property Markets by Kibo Ngowi & HK Mokwete
Botswana’s Construction Industry Failing to Attract Foreign Direct Investment by HK Mokwete / BIDPA and FIAS Reports Extracts A report by the US think tank, Foreign Policy has ranked Botswana in first place on the continent and second in world out of 102 best places in the world out of attractiveness as an investment destination. The rating based amongst other things on the ease of
doing business, the return on investments and the stability of the country, makes Botswana a top tier destination in investment attractiveness, beating amongst others, European, Americas and other economic powerhouses. >>> CONTINUED PAGE 04
Community Outreach Architecture; Sedyea’s Youth Football Centre Completed by Kibo Ngowi Top and Bottom Left Images: Mlimani City Shopping Mall Bottom Image: Mlimani City Conference Centre Interior PublicRight Piazza
Turnstar Holdings is a giant in the Botswana property market with assets in excess of P1.2 billion. In an exclusive interview Boidus Focus learned that the company’s recent acquisition of a P77 million property in Tanzania is just the first step in an aggressive
S TA T E
OF OUR
CITIES
expansion plan into Africa. Turnstar is also adding value to its newly acquired property through the development of a hotel with a botanical garden, extensions to the existing mall and conference centre as well as a value mart and office blocks. Turnstar
Holdings is undoubtedly the company to watch in commercial property. >>> CONTINUED PAGES 08, 13
On the 19th of April 2013, the South East Football for Hope Centre officially opened. Located on the SEDYEA site in Ramotswa, the project is the 11th of 20 planned centres across Africa as part of the official campaign of the 2010 FIFA World Cup. The South East District Youth Empowerment Association (SEDYEA) is a youth-led sports and
CBD Executive Seminar
community development program that is using the power of football in the fight against HIV and AIDS by providing youth with the knowledge, skills and support to remain HIV free. Boidus Focus spoke with it’s Architect Elisa Engel, Design Fellow for Architecture for Humanity about the project. >>> CONTINUED PAGE 07
EVENT HOSTED BY:
MEDIA PARTNER:
BOIDUS MEDIA E
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E
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Bringing together CBD stakeholders such as landowners, developers and Investors to engage on matters of CBD Development.
‘Exploring Challenges and opportunities in developing the Gaborone Central Business District‘
Local News Page 2
BOIDUS FOCUS May 2013
Big Changes to Planning LOCAL NEWS FEATURE System coming as Town and Boidus Media Host CBD Executive SemiCountry Planning Bill passes nar at Masa Centre on the 20th of May by Boidus Admin
by Boidus Admin
gions. The decentralisation process is meant to reduce bureaucracy and improve efficiency in determination of planning applications. The bill was passed on 17th April with one amendment to clause 2, where definition of land tribunal was altered to mean ‘such land tribunal as may be established under an Act of Parliament.’ The Bill, after coming into effect, would make provision for the orderly and progressive development of land in urban and rural areas. The structuring of the Planning System and its management will soon see big changes as per the newly passed Town and Country Planning Bill of 2012 which was presented by the Minister of Lands and Housing Mr Lebonaamang Mokalake last month. The big changes will mainly affect the administering, management and implementation of the Botswana planning system. Changes will see powers transfer from the Ministry to Local Authorities who will assume control of planning for their respective re-
It would also preserve and improve the amenities for the qualification and regulation of physical planners and connected matters. The Bill has further provided for the establishment of an Appeals Committee where those aggrieved by decisions of the director of Town and Regional Planning regarding registration of physical planners, suspension or cancellation of membership, and other items, would lodge their complaints.
Boidus Media will host an Executive Seminar on the 20th of May at Masa Centre, Lansmore Hotel. As part of the seminar, there will be a CBD Project Showcase, which will be hosted on the Masa Sqaure and a Wine Tasting social event in the evening on Masa’s Roof top deck. The aim of the seminar is to bring key stakeholders of the CBD developments such as investors, development owners, government, industry champions and the public in sharing of ideas and opportunities about our upcoming CBD. Envisaged as the future heart of Gaborone City, the CBD is slowly taking shape and the seminar seeks to make it a centre stage focus. The Seminar which is themed, ‘Developing a 21 Century CBD-Challenges and Opportunities’ will bring Mr Maurice Mdlolo, Chief Operating Officer (COO) for Sandton City and Jo Noero, one of Africa’s leading ar-
chitect and scholars. Local panelists will include representatives from the DTRP, CBD Committee, and Gaborone City Council along with Mr Leta Mosienyane, an accomplished Urban Designer, Richard Arthy, a local landscape architect, Joe Simpson, a Market Researcher and Director at Knight Frank and other industry champions. Local financing institutions will also present opportunities for financing developments and or investment opportunities. The Seminar will be officiated by Ministry of Trade and Industry, BOCCIM President Mr Alex Monchusi and Hon MP Ntuane. Limited seats are available for the Seminar while the Project’s Showcase will be free to attend. For more information contact: Killion – 75505291 or email: killion@boidus.co.bw
EVENT DETAILS: Speakers, Guests, and Topical Issues MAIN SPEAKER Developing a 21st Century CBD; Lessons from Sandton City Maurice Mdlolo, COO Sandton City Maurice is the Chief Operating Officer at Liberty Properties, Managers of Sandton City. With 20 years in the business, he will be coming to discuss his international experience with managing projects of this scale, and to give advice on the future of Gaborone’s Central Business District.
KEY TOPICAL ISSUE Urban Design: Blueprint to Success of the CBD Presented by Jo Noero and Leta Mosienyane
Landowners Collaborate to Upgrade Road Safety in CBD
Jo Noero, Noero Architects - International award-winning Architect
& Urban Designer and accomplished academic scholar; former director of School of Architecture at University of Cape Town.
by Kibo Ngowi
Leta Mosienyane, Mosienyane & Partners International -
Accomplished Architect & Urban Designer with both local and international projects ranging from Botswana to West Africa; has both published and taught across Europe.
OTHER SEMINAR TOPICAL ISSUES Role of Government in the Developing of CBD Presenters from DTRP and GCC Managing vehicular access and Parking facility, challenges and opportunities Derek Morris (Interpark) Property Market Saturation Joe Simpson, Knight Frank Botswana KEY VIP GUESTS OF HONOUR In a move that demonstrates the power of collective responsibility landowners of companies operating in Gaborone’s Central Business District (CBD) have banded together to develop speed bumps by raising the pedestrian walkways at all intersections within the area.
The companies that came to the table were iTowers, Primetime, Time projects, FNB, RDC and GH group. Marlin says that the initiative became a priority because he and others realised that the safety of staff and visitors was greatly compromised by the lack of proper intersections in the CBD.
The CBD which has in recent times become a centre of development in Gaborone with numerous businesses developing property and moving into the area had become a safety concern for the pedestrians who walk its streets.
Many landowners refused to participate in the initiative insisting that it is council’s responsibility to maintain the roads and they have already played their part through the payment of taxes. Marlin maintains that adopting such an attitude does nothing to help the situation because council has already demonstrated that they are either unable or unwilling to improve road safety in the area so it falls on the shoulders of the people who have a vested interest in the viability of the area.
Time Projects’ Director for commercial projects Brett Marlin took up the initiative to improve road safety in the area by contacting all the CBD landowners and inviting them to contribute money towards building the speed bumps.
Ministry of Trade and Industry
Honourable Assistant Minister Keletso J. Rakhudu
EVENT SPONSORS:
BOCCIM President
Mr. Alex Monchusi
Hon. Member of Parliament
Honourable MP Botsalo Ntuane
BOIDUS FOCUS May 2013
International News Page 3
Bad Buildings Kill - Rana Pla- INTERNATIONAL NEWS FEATURE za and the Case For Strin- Addis Abeba Chamber of Commerce Headquarters Winning Proposal / BC gent Building Practices Architects by Boidus Admin / Source: inhabitat.com
by Boidus Admin / Source: archdaily.com
BC Architects, in collaboration with ABBA architects and Adey Tadesse, won the competition for the Addis Abeba Chamber of Commerce Headquarters in Ethiopia with their approach towards a “glocaldesign”. With the goal of sensibly involving local materials in this
The Rana Plaza tragedy in Bangladesh, where over 700 people lost their lives when an eight-story garment factory collapsed on April 24th, brings about issues such as lack of corporate social responsibility and more importantly, building practices. Without proper building codes, appropriate architecture & engineering, safe building practices and government oversight, inadequate building practices put people at risk. This incident makes it plainly obvious that the construction industry in Bangladesh is broken – and everyone involved, from the owners to the architects, engineers, planning commission, inspectors and even the municipality is to blame.
mid-high-rise building, this resulted in a local nature stone façade system inspired by a ‘Netela’ (threaded Ethiopian textile which so nicely shows the threads of cotton and which has a character of both shadow and transparency).
blame. Another factor in this disaster is the local government’s permitting and approval process. As the garment industry is a huge source of income for Dhaka and Bangladesh, corners are often cut and corruption is rampant. Bribes likely occurred at many points along the multi-stage approval process, which allowed for a poorly constructed building to exist putting hundreds of people at risk. Once operational, the situation was likely made even worse by the addition of even more equipment and people than it was designed for, which further weakened an already poorly built factory.
The ultimate fault is not clear with-
While fast fashion is certainly a culprit, this accident would have never happened if architects, engineers, contractors and inspectors had done their job correctly from the very beginning.
out further engineering investigation. It could be the building was not designed and engineered as a garment factory to handle the weight of all the people and equipment. There are also reports saying it was designed to be a six-story building, but two more floors were added on top, so the actual construction of the factory could be to
Cutting corners is a bad practice in any line of work, but especially dangerous in the building industry. Hopefully, in the wake of this accident, the local government can revamp their process and begin truly enforcing the codes that were in place. Other countries and cities should also take head – bad buildings kill.
BC Architects on their design At this moment in Addis Ababa, a chaotic arrangement of individual building blocks burdens the city’s collective and common spaces, due to an absent or ineffective planning culture. This, with other urban parameters, leads to tangible effects such as unsafe or absent pedestrian walkways, a lack of accessible parks and squares, and petty theft and violence in undefined public spaces. We aim to create potential outside and inside the building, acting both as an urbanist and an architect, through the relationship of the building to the urban surrounding, and through the internal organization of the functions. At the same time, we aim to generate an architectural language serving the needs of an international entrepreneurial community, while being in line with local materials and identity.
Boidus Feature Page 4
BOIDUS FOCUS May 2013
Botswana’s Construction Industry Failing to Attract Foreign Direct Investment (FDI) by HK Mokwete
>>> FROM PAGE 01 This however seems to not be transferring direct investment into the Botswana’s construction industry. A recent report by BOTSWANA INSTITUTE FOR DEVELOPMENT POLICY ANALYSIS (BIDPA), ‘Institutional Reforms of the Construction Industry in Botswana, 2012’ has revealed that Foreign Direct Investment (FDI) into the Construction in Botswana has dwindled from a mere average of 1% to nill by 2009. This is despite the sector having been consistently outperformed other much sectors such as Tourism and Mining which have had the bulk of the FDI. The BIDPA report does not elaborate on the possible reasons for this lack of FDI in Botswana’s construction Industry, but notes that at these levels the construction industry falls way short of the 40% average FDI aspirations of the counties Vision 2016: Report Abstract: 1.1.1 INVESTMENT: The year 2009 recorded the least contribution of Construction towards both FDI and other investment (Table 4). Vision 2016 estimates that Botswana ought to attract FDI at an average rate of 40% per annum from 1996 to 2016 in order to realize Vision aims. Where construction is concerned, it can be concluded that its contribution to FDI is lower than the rate required meeting Vision 2016 goals. International Investor Experiences and challenges of investing in African Infrastructure Sectors Tracking and documenting International experiences in investing in African Infrastructure sectors, FIAS had some pointed observations that ring true to home:
Attracting Foreign Direct Investment Into Infrastructure, Why Is It So Difficult? By Frank Sader, Foreign Investment Advisory Service, Occasional Paper 12 Report Extract (Executive Summary page 9, 10): Nightmare stories abound of investors experiencing lengthy delays or project cancellations because of political, administrative, and legal impediments. Investors were blocked by existing state−owned service providers, • Conflicting government authorities, • Government biases in favor of official funding or local investor participation, • Political and social protests against individual projects, • Unclear award procedures, • Corruption, • Governments reneging on contracts signed by previous administrations, • Existing legislation impeding effective private sector participation, and • A lack of overall sectoral liberalization In addition, potential investment projects became stalled in political debates. After millions of dollars spent in project preparation, taking recourse to legal means of dispute resolution was often the only way out, leaving unfulfilled the potential of large−scale investments from the private sector.
vate service providers. This slows down or even stops privatization efforts. At the same time, market entrants through greenfield investments tend to encounter a myriad of hurdles, political, administrative and legal, that stall project implementation and often lead to the cancellation of planned investments. What should be done in order to attract inward FDI in the Construction Industry? Countries that have managed to attract substantial amounts of FDI into their infrastructure sectors have done so by instituting basic reform measures. They recognized the need to install a policy framework that allows for an effective implementation of private infrastructure projects in a way that meets investor needs as well as the social and political objectives of governments. However, this does typically require a significant reform effort by the government, an effort that cannot be replaced by ad hoc measures whenever problems arise in the preparation of individual projects.
The core of the problem lies in the lack of overall sectoral reform in developing country infrastructure markets, combined with the complicated nature of
To overcome the lack of coordination and inject the necessary expertise, governments can develop a streamlined administrative process in conjunction with a facilitating unit designed to manage private infrastructure projects throughout the implementation process. Project finance specialists in such a unit can assist the responsible line ministries and sectoral authorities across the various infrastructure sectors in the preparation
project finance transactions unfamiliar to the typical civil servant. Virtually every country experiences resistance from special interest groups and existing state−owned enterprises to introduce competition by opening markets to pri-
of individual projects for private sector participation. This may encompass assistance in • Identifying potential private investment projects; • Preparing and evaluating detailed
technical, legal, and financial feasibility studies; • Developing tender documentation and the bidding process; • Evaluating bids received; and • Negotiating with preferred bidders.
The Foreign Investment Advisory Service (FIAS), a joint facility of the World Bank and the International Finance Corporation (IFC), helps developing and transition−economy governments design initiatives to attract foreign direct investors.
Table 4: Levels of Foreign Direct Investment in Botswana for Construction Industry (P ‘Million) Foreign Direct Investment Year
Equity
Non Equity
1999
3
2000
6
2001 2002
Other Investment
Total
% of TFDI
Equity
Non Equity
Total
% of Other
5
8
0.1
0
40
40
0.9
9
15
0.2
0
25
25
0.44
5
18
23
0.22
-
5
5
0.12
4
9
13
0.17
-
4
4
0.08
2003
1
9
10
0.13
2
831
833
15.6
2004
11
17
28
0.66
-
12
12
0.27
2006
5
3
8
0.12
0
24
24
0.25
2007
5
3
8
0.14
0
10
10
0.11
2008
5
19
24
0.36
0
16
16
0.37
2009
1
0
1
0.01
0
0
0
0.00
2005
Source: BoB Annual reports (various)
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BOIDUS FOCUS May 2013
Markets Page 5
Housing Finance in Africa: A Review by Finmark Trust [2011 Yearbook]
by Boidus Admin / Source: Finmark Trust, 2011 Yearbook
2011 YEARBOOK HOUSING FINANCE IN AFRICA A review of some of Africa’s housing finance markets
September 2011 Published by the Centre for Affordable Housing Finance in Africa a division of the FinMark Trust
Africa is booming. Construction cranes in Lusaka, Accra, and Nairobi, traffic jams in Dar es Salaam and virtually every other city, the streets are packed with vendors, and roadside shops sell furniture, building materials, intricately carved doors. There’s a sense of activity and bustle. Piles of bricks are everywhere, and everywhere people are building. With the highest urbanization rates in the world, people are moving in every day, contributing to the economy, looking for a place to work, and a place to stay. The activity highlights the opportunities and challenges in investing in this dynamic continent.
incremental processes that are affordable to lower income earners. The potential for scale is substantial, and the investment in innovative approaches at this stage will translate into exponential growth in the future.
Still reeling from the past two years, investors are faced with lackluster opportunities in Europe, North America, even East Asia. Africa is attractive. Nine countries in Sub-Saharan Africa have a GDP growth of over 7 per cent (the rate needed to double an economy in ten years); and just over half are expected to grow at above 5 per cent a year. The African population is a new market, with unexplored opportunities and new demand to consume everything from financial services, to beverages, appliances, cars and houses. The economic rationale for investing in Africa is shifting from an emphasis on taking out, to an emphasis on selling to. In some countries, economic policy is explicitly shifting in favour of this approach, and governments are investing in infrastructure in an effort to attract private investment. Financial services and credit access is growing. The middle class is growing: more than a third of the population earns enough to have something to spend, but not so much that it will travel elsewhere to buy it. This is the new dimension to the picture that investors are beginning to appreciate. Within this new awareness, a key area of attention must be the housing of this growing population. Developers face challenges, including: the complexity of the development process, access to finance, and infrastructure. With these and other difficulties, Africa’s mortgage market is tiny. There is certainly room for growth. Affordability is a critical challenge, and current markets are structured to deliver housing that is too expensive for the population. A new house delivered is not necessarily an end product, however. The use of microloans for housing is becoming prevalent, and an incremental housing process that proceeds in line with a household’s affordability becomes possible. A key area for innovation involves stepping beyond the narrow silos of housing finance and housing construction, and finding the link between the two in such a way that promotes
With our competitive interest rates and great discounts from our building partners, Barclays Home Loans is the best way to build your dream home. It’s so flexible you can buy, build or renovate your home. For more information contact Barclays Home Loans Centre on 3170647
Guest Column / Sustainability Page 6
ENERGY Spain Produced 54 Percent of its Electricity from Renewable Sources in April [Source: inhabitat.com]
BOIDUS FOCUS May 2013
SUSTAINABILITY TODAY
Managing the Transition to green and healthy business by Phenyo Motlhagodi Environmental sustainability and the green economy are becoming regular topics in panel discussions and are finally attracting decent albeit insufficient media attention. This is indeed a welcomed move, but as I look around at the discussion tables, all I see is academics, students, environmentalists, green activists and focal coordinators from the various environmental Non
Image Source: inhabitat.com
Renewable energy is gaining major momentum in Spain. In April, the country set a new record with renewable energy accounting for 54 percent of the electricity generated in Spain. April’s figure just outpaced March’s record of 51.8 percent of electricity generated by renewables. And those numbers should continue to grow, as wind and solar development continues in the Mediterranean country. Spain’s electrical grid operator, Red Electrica De Espana (REE), reports that hydropower made up 25 percent of April’s overall electricity generation, wind power accounted for 22 percent, solar photovoltaic came in at 3.6 percent and solar thermal at 1.3 percent. If this current pattern holds, Spain may produce more electricity from renewables than it has in recent years. In 2006, renewable energy accounted for just 19% of the electricity generated in Spain. The percentage peaked in 2010 at 35 percent and kept steady around 32-33 percent in 2011 and 2012. Spain is targeting wind power to supply 40 percent of the electricity consumption by 2020, and the country is looking to grow its solar photovoltaic potential. To that end, Extramadura in Western Spain, which gets 3,200 hours of sun a year, just announced a new 250 MW unsubsidized solar plant. Once built, the PV plant is projected to be the third largest in the world.
Image Source: inhabitat.com
Wind Turbines in Andalusia, Spain Image Source: cleantechnica.com
Profit Organisations (NPOs). That is all good and well, but, where are the corporates? I am not referring to the Heads of Marketing and Communication or their Public Relations officers who are there to pledge their support in the form of the much needed cheque to an upcoming sustainability convention. I am looking for the CEOs and the MDs, where are they in these discussions, to not only talk about what they can contribute from the CSR/CSI budget to NPOs but rather: what they too can implement in their own offices to ensure true sustainability, why aren’t they accompanying the delegates they sponsor to climate change summits to bring back to their own structures? Energy efficiency should be a priority for companies, more so that Botswana is moving to higher, cost reflective pricing. Fair enough, the corporate world is not oblivious to green ideas, we have seen the wonderful new green building that houses the offices of property developers in the CBD who are also responsible for the bulk of structures in this country so that is a good sign. We have also seen in the past couple of years leading companies’ partner up in Maruapula for a huge development of a golfing range which as expected is largely green from lighting to water use. Let me put it into perspective: When Industrial Development Corporation (IDC) and the German Development Bank in South Africa launched the R 500 million Green Energy Efficiency Fund (GEEF) pre the climate change summit COP 17 in 2011, “they set out to provide increased access to energy efficiency and renewable energy financing across all sectors.” Banks and development corporations establishing lending funds or corporates going at it alone are just some of the ways of going about it, but “setting up the fund was crucial to South African business and they realized that”. It is a sure way of remaining relevant in business practice to ensure sustainability; the green economy ensures employment and a return on investment that makes financial sense.
In 2010, the mobile operator MTN South Africa “put its money where its mouth is” in respect of green business, when it unveiled its R 22 million, 2MW tri-generation plant. The facility was designed to produce power, recycle water and increase energy savings. The plant which is situated at the company’s head office in Fairlands was set up to establish a self-sustaining power supply which has since been successful thanks to this methane-driven generation. The idea here is “ensuring that the company’s expansion and growth plans are not hampered by energy shortages or lack of power supply to drive it forward”. The challenge is looking at what is available and what is needed and coming up with a plan
using new technologies and what is available to them positively. The BMW plant in Pretoria today powers 50% of its premises with energy they garner from waste sewerage ponds behind their buildings.
to connect the two, and that is what MTN did. “The tri-generation plant is a result of a unique solution to meet MTN’s strategic objectives. It will generate electricity, as well as water for the air-conditioning systems in the buildings. This is achieved through a second re-absorption chiller cycle using waste heat from electricity generation. Using methane gas is also a plus, since it is clean-burning, sustainable gas that is reliable and offers a consistent supply. The plant was designed to manage potential energy shortages and reduce power consumption, increase savings and initiate a sustainability model to reduce the brands carbon footprint. In addition, it is expected to assist in reduction of greenhouse gas emissions, as it reduces the reliance on coal-based electricity generation and its associated environmental consequences. ” According to MTN, it has lowered its electricity consumption in its first six months by 37% and expects a return on its investment of R 22 million within a five-year period. There are many more examples of proactive corporates going green and
ane mining from landfills to power up businesses as they do in Durban, they too are smiling at their returns on green investment and their reduced carbon footprint. They are genuinely greening their practice without mediocre short term green activities then ranting and raving about it in the media. This is what we really need to promote in business circles locally, to the multinationals who have done it in their countries of origin and to the local brands which are yet to start.
There should be great pressure on companies to do more with less, and to do it in a responsible and sustainable way. The past decade has seen companies locally build their own premises as a direct response to growth in assets and personnel, now they need to be thinking of ensuring that all business practices are aligned to a sustainable, cost cutting model that will reduce their carbon footprint. In future issues we will look at meth-
The message that COP 17 (lowly attended by local companies) gave is: The greenest thing you can do in general is to stop wasting: a message many local organisations have not fully taken to heart in reducing energy. So to corporates: campaigns that aim to make normal things look green are seldom “green” in the true sense. They are like cosmetic surgery, rather than healthy lifestyles. Do not just support/sponsor “green”, go green in your own business, you will see that great return on the investment, and that is what it is: an investment.
CONTACTS | tel: 3922395 | fax: 3924923
BOIDUS FOCUS May 2013
Boidus Feature Page 7
Community Outreach Architecture; Sedyea’s Youth Football Centre Completed by Kibo Ngowi
Central Atrium
BF: Can you briefly tell us about the project and how you personally got involved in it? Give us your background as an architect and also about Architecture for Humanity and what other similar projects you/they have done elsewhere.
EE: The South East Football for Hope Centre is one of 20 centres being built across Africa as part of the ‘20 Centres for 2010’ campaign. ‘20 Centres for 2010’ is a collaboration between Fifa (the football world governing body) and streetfootballworld (an umbrella organisation for NGOs dealing with football as a means of social change) and constitutes part of the 2010 World Cup legacy. The South East Football for Hope Centre in Ramotswa consists of a new building housing teaching and administration spaces, a computer room,
changing rooms, showers and toilets. This is complemented by a training size artificial turf football pitch. The facility has been built for our local centre host, the South East District Youth Empowerment Association (SEDYEA). SEDYEA is a youth-led organisation who through football and their peer education program is doing very valuable work with regards to HIV/Aids awareness training and youth empowerment. Architecture for Humanity is a US based non-profit design services firm founded in 1999. It taps into a network of more than 40,000 professionals willing to lend time and expertise to bring design, construction and development services to those who would not otherwise be able to afford them. Each year 10,000 people worldwide directly benefit from structures designed by Architecture for Humanity. The South East Football for Hope Centre is Archi-
tecture for Humanity’s first project in Botswana, but as part of the Football for Hope Program similar centres are being built in other southern African countries such as South Africa, Mozambique, Zimbabwe, Lesotho, Namibia and Tanzania. For the past 19 months I have been a Design Fellow with Architecture for Humanity, working on the project in Ramotswa. Design Fellows donate their professional services for the duration of a project and live and work in the communities they are serving. I am originally from Germany, but as a teenager I lived in Swaziland for two years. I then went on to study Archi-
tecture in the UK and complemented this with a Postgraduate Diploma in Development Practices. After graduating I worked for an Architecture practice in London, focussing on education design. My particular interests are how user groups can be involved in the design process and designing spaces for learning. In 2012 I decided to take up a Design Fellowship with Architecture for Humanity. I have hugely enjoyed my return to Southern Africa and working very closely with SEDYEA and our local consultants.
BF:
Tell us about key considerations that informed your design idea, especially how you reconciled the existence
Multi-Tech Consult (Pty) Ltd, a firm of Consulting Engineers and Project Managers, started operating in 1999 under Certificate of Incorporation No CO.99/3948 and is registered with Botswana Government Public Procurement and Asset Disposal Board (Former CTB – Ref:12/1/366) Civil Engineering Infrastructure planning, design and construction supervision of civil works including: • Road works (urban roads, rural roads and highways) • Pavement failure evaluation, Pavement design and Shoulder sealing design • Storm water drainage • Water reticulation • Sewerage reticulation and associated facilities • Water retaining structures i.e. water dams • Soil erosion protective works to river banks, road banks and electricity pylons • Sanitary land fill sites, • Bridges, site selection, site investigation, site survey, engineering planning, hydrological studies, hydraulic calculations, structural design, • Earth-dam, Rock-dam and associated appurtenances, • Irrigation schemes, • Airports, runways, taxiways, aprons, service roads marking signage, drainage and signalling, • Sports facilities including large capacity covered and open stadiums.
Main Reception Area
of the structures that were already in place.
EE:
SEDYEA have been operating hugely successful youth programs from their existing facility in Ramotswa for years. They had a small existing building, a (sand) football pitch, a vegetable garden and a small kitchen container for their catering program. The first step was to work very closely with SEDYEA to establish what current and future activities they are planning on the site, what facilities were required to run these activities and how the existing amenities needed to be supplemented to achieve this. >>> CONTINUED PAGE 14
Multi-Tech consult provides professional services and advice in civil infrastructure including roads, water, wastewater and structural engineering. The firm also provides project management services right from feasibility studies to implementation stage through to training and initial project operation. Louie Ville Horizons 200-unit residential development in Block 8, Gaborone [Structural Engineers]
Structural Engineering Design & Construction supervision of (among others) the following: • Housing scheme (Low and High cost) • Commercial and office buildings • Industrial warehouses • High rise structures • Timber and steel structures • Structures which are sensitive to shrinkage cracking or settlement cracking • Short and long span bridges and culverts Expertise in Ground Water Resource Surveys in Drought Prone Areas including: • Exploration and Design • Mapping • Supervision of water well drilling and construction
Zambezi Towers Mixed-use development in CBD [Structural Engineers]
Expertise in Hydropower Planning and Implementation • Tunnelling works including rock supports • Dam works, earth dam, concrete dams Expert in Environment Impact Assessment including: • Bio-physical Impact studies • Socio-economic Impact studies • Archaeological Impact studies
YEM Graphics
>>> FROM PAGE 01
Boidus Feature Page 8
BOIDUS FOCUS May 2013
Turnstar Holdings Acquisition; Mlimani City Mixed-use development in Tanzania
by Kibo Ngowi & HK Mokwete
a doubt creates ample opportunities for foreign and local players to have a piece of this lucrative pie, despite poverty and unemployment challenges that are still widespread within the continent.
Bonolo Moagi Asset Manager >>> FROM PAGE 01 BF: Please briefly introduce Turnstar Holdings to our readers and explain its core business in the property market.
TH:
Turnstar Holdings Limited is a variable rate loan stock company listed on the Botswana Stock Exchange in 2002, with a portfolio of 10 premier properties valued at over P1.2 Billion Pula (As at January 2012). Our core business is premised on investing in properties that generate above average yields. The company has an inhouse asset and management team that provides asset and property management services for its property portfolio.
BF:
What projects currently in development is Turnstar involved in?
TH: As part of our strategy to offer our unit holders’ superior diversification through increasing our footprint in Africa, Turnstar Holdings recently acquired a mixed use property Development in Dar- Es- Salaam, Tanzania worth $77 Million. The development is an unrivalled, quality mixed use development comprising of a modern retail shopping centre, an A grade office park, world class conference centre and a premium residential estate.
BF:
Are there any plans to expand the infrastructure on the Mlimani property?
TH:
Currently, Turnstar Holdings Limited is working on final preparations plans for Phase 3 of the Mlimani City Development Plan, which constitutes development of a hotel with a botanical garden, extensions to the existing mall and conference centre, value mart and office blocks. BF: What informed your company’s decision to acquire property in Tanzania?
TH: As part of Turnstar’s pan African vision, investing in emerging market opportunities led to the acquisition of Mlimani City Development. This property was confirming with the current market needs for quality property development and was generating favourable yields which made it an ideal development to invest in. The development of Mlimani is a Public Private Partnership (PPP) between its developer GH Group (a foreign investor from Botswana) and the University of Dar es Salaam in whose land, Mlimani City is located. The acquisition
consisted of funds raised from shareholders and funds obtained from a bank in Botswana.
BF:
What are the key aspects of the Tanzania Project? (e.g. sizes, value and other project details)
TH: The development comprises the following; Mlimani City Shopping Centre 18,794m² GLA Mlimani City Conference Centre 4,403 m² Mlimani City Meadow Villas 50 secured housing units Mlimani Office Park Buildings 1-4 11,308m² GLA The undeveloped portion comprises a site earmarked for a Value Centre, an extension of the existing shopping centre, a hotel site and a botanical garden all standing on around 40 hectares of land.
BF:
What are the challenges and opportunities of doing business in other emerging African Markets?
TH: Opportunities of doing business in other emerging African markets include the following; • Amid uncertainty in the global economic atmosphere, Tanzania property market and certainly majority of African markets are still enjoying a boom. The property market is certainly among the most active sectors of most African economies. This is largely driven by private investors and developers. Africa is becoming more accessible from a business and cultural perspective, given than the continent is well endowed with mineral and mining resources. • According to McKinsey’s first continental survey of urban African consumer behaviour, there is a surging consumer market that is both price and brand sensitive and internet savvy. This indicates a substantial increase of the middle class consumer. The African population is increasing in wealth and sophistication and this leads to demand on quality produce and services. • With a billion people and just under 500 shopping centres on the continent, it is evident that the continent is underserved in terms of shopping centres. This without
The challenges are; • Political instability is still a major concern – posing capital flight as investors look to put their money where they feel it’s safe and they can recoup their investments. • Regulatory framework - The question that potential investors need to pose is that ‘is the legal frame work such that one will be comfortable approaching the courts and not take forever to get fair justice?’. Unpredictability in regulations, whether they will arbitrarily change, affecting ones investment. (e.g. indigenisation without consideration of business sense to it, where you are expected to give shareholder to locals without financial input from them) or repatriation of profits suddenly being restricted for whatever legal reason they come up with. • Currency risk –investors need to take caution where the local currency is unstable and the country is not dollarized. • Infrastructure, Amenities/services ,etc. most developing countries are still struggling with infrastructure development of roads, electricity, water and sewage, access to land – scarcity of serviced land within cities etc. making developments costlier. • Access to finance – domestic banks in Africa generally do not have a large monetary balance sheet, hence unable to lend money to fund large projects. • Culture barrier – corruption and dependency on foreign aid.
Mlimani City Office Park
Mlimani City Office Park
Mlimani City Conference Centre
BF:
Many local investors interested in venturing into property would be keen to know what it takes to invest in a foreign country. Can you give advice to aspiring investors wishing to cross borders on the best approach to adopt?
TH:
Thorough country assessments and due diligence of projects of any magnitude are essential before venturing into unknown territories. Identifying local partners to deal with is key. Mlimani City Conference Centre
Mlimani City Meadow Villas
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Welcome | 2013/14 Calendar Events | Tenders/Awards| May 2013
2013/14 CALENDAR EVENTS
TENDERS/AWARDS
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CBD Executive Seminar
Plot 8913 Maakgadigau Road Tel: (+267) 360 2000 or 390 6853 Gaborone West Industrial Site Fax: (+267) 390 6822 Private Bag 0058, Gaborone TOLL FREE: 0800 600 751
The Public Procurement and Asset Disposal Board (PPADB) was established by and Act of Parliament as an independent parastatal authority, under the Ministry of Finance & Development Planning responsible for the coordination and management of prudent procurement of works, supplies and services for Government, and the disposal of public assets. VISION: To be the centre of excellence in public procurement and asset disposal by 2018. MISSION: To lead the effective implementation of a devolved, efficient, cost effective and transparent public procurement and asset disposal system through and appropriate regulatory environment.
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Bringing together CBD stakeholders such as landowners, developers and Investors to engage on matters of CBD Development.
Exploring Challenges and opportunities in developing the Gaborone Central Business District (CBD).
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UIA 2014 WORLD CONGRESS IN SOUTH AFRICA
3-7 AUGUST
UIA General Assembly
8-10 AUGUST
Durban International Convention Centre (ICC) On the twentieth anniversary of South Africa’s re-birth, the UIA Congress will celebrate the African profession as a meaningful contributor to world architecture and thought leadership in city development; as well as the continent’s contribution in the affairs and evolution of architecture globally. Architects, engineers, designers, technologists, planners, thinkers and writers from all over the world will gather, with the public, for a week of lively and challenging talks, workshops, events and happenings.
In Accordance with Clause 86 and 87 of the PPADB Act, the Board shall advertise: (a) All applications by contractors for registration and thereafter the decisions on the grades and codes accorded to applicants; (b) All tenders being invited; bids received and award decisions and prices. The board is also required to publicize the decisions arising from complaints and challenges dealt with by the Board or the Independent Complaints Review Committee.
Tender No: TB9/3/92/2000-2001 Tender Title: Department of Buildings and Engineering Services’ request for direct appointment of the following contractors to complete the outstanding works on the Construction of the Botswana Public Service College Auditorium as follows: i. Benmas (Pty) Ltd for Electrical Works ii. Alucraft (Pty) Ltd for Aluminium Doors and Windows iii. Rodlin Design for Auditorium Seating iv. Decorex Curt CC for Stage Curtains Works Adjudication Decision: Approved Submission Date: 25.02.2013 Tender No: TB9/3/92/2000-2001 Tender Title: Department of Buildings and Engineering Services’ request for direct appointment of Bonanza Equipment (Pty) Ltd for mechanical works on the Construction of the Botswana Public Service College Auditorium. Adjudication Decision: Did Not Approve Instead the Department was authorized to invite all the bidders who were earlier short-listed being: i. Pipework Services (Pty) Ltd- Grade E ii. Bonanza Equipment (Pty) Ltd- Grade E iii. Integrated Mechanical Services- Grade E Submission Date: 25.02.2013 Tender No: PR 9/3/3/7-I Tender Title: Department of Building and Engineering Services’ request for the engagement of Complant Botswana (Pty) Ltd for emergency repair of the Sir Seretse Khama International Airport (SSKIA) blown roof, and Geoflux and William Lee & Associates to determine the cause of the structural failure roof. Adjudication Decision: Approved Submission Date: 05.03.2013
Board Adjudication Decisions for the 14th March 2013 Board Sitting Tender No: PR9/3/3/12-III Tender Title: Department Building and Engineering Services’ request to award the tender for the Construction of Infrastructure Works & 9No of Flats at Mogoditshane Senior Secondary School to ZhongGan Engineering and Construction (PTY) Ltd at a contract sum of BWP56, 434, 878.95 for a construction period of 425 days. Adjudication Decision: Approved Submission Date: 01.03.2013
Board Adjudication Decisions for the 11th April 2013 Board Sitting Tender No: PR 9/3/3/12- III Tender Title: Kgalagadi Resources Development Company (Pty) Ltd T/A Solar Power’s request for the Department of Building Engineering Services’ to apply the Economic Diversification Drive (EDD) in the tender for the “Supply, Installation and Commissioning of Domestic Solar Water Heaters for Mogoditshane Senior Secondary Staff Houses”. Adjudication Decision: Did Not Approve Submission Date: 09.04.2013
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Board Adjudication Decisions for the 7th March 2013 Board Sitting Being held on African soil for the first time ever, the WorldGBC Congress will run in parallel with the premier 6th annual Green Building Convention at the Cape Town International Convention Centre from 16th – 18th October 2013. This year we play host to the largest international network influencing the green building marketplace, comprising 92 global councils – making this the most distinctive sustainable building gathering to accelerate the green building movement - ever hosted on our continent.
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Board Adjudication Decisions for the 28th March 2013 Board Sitting
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Tender No: PR 8/1/3/12-II Tender Title: Department of Local Government Technical Services’ request to award the tender for the Procurement of Construction of Water Treatment Plants and Evaporation Ponds at New Xade and Radisele to N&M Services (Pty) Ltd at a cost of BWP40, 894, 066.86. Adjudication Decision: Approved Submission Date: 26.03.2013
MINISTRY OF ENVIRONMENT, WILDLIFE & TOURISM Board Adjudication Decisions for the 28th March 2013 Board Sitting
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Tender No: PR 18/1/2/12-I Tender Title: Department of Wildlife and National Parks’ request for retroactive authority to pay Puma Energy (Pty) Ltd for the Supply of Aviation Fuel at Maun, Gaborone, Francistown and Kasane used during the Aerial Survey Campaign for a total value of BWP 170,716.49. Adjudication Decision: Did Not Approve Submission Date: 22.03.2013
COMMITTEE DECISIONS: Adjudication decisions on Ministerial Tender Committee decisions are available on the PPADB website: www.ppadb.co.bw
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BOIDUS FOCUS Classifieds May 2013 | Home Improvement Ideas
EXTERIOR HOME IMPROVEMENTS - DIY Roofing and Walls 8 THINGS YOUR ROOF IS TRYING TO TELL YOU
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[Source: popularmechanics.com]
Missing shingles, granules filling the gutters, water stains on the ceiling after rainstorms—they all point to roofing problems. Pay attention to these warning signs and act before the problem gets worse and more expensive to fix.
Problem: Water Spots on your Ceiling
Problem: Water Spots Appear on Exterior Walls
What the Roof is Trying to Tell You: The roof has a leak, which can be tricky to pinpoint. “A slow leak is harder to find than a big leak,” says Joan Crowe, director of technical services for the National Roofing Contractors Association (NRCA). “If it’s just a couple of drips, it can be hard to find.”
What the Roof is Trying to Tell You: The step flashing where the roof meets a wall is loose, rusted, or otherwise damaged.
Problem: Shingles are Cupping What the Roof is Trying to Tell You: The attic may not be properly vented, and you might need to reshingle.
Problem: Your Gutters are Filled with Granules and Wash out the Downspouts What the Roof is Trying to Tell You: The shingles are deteriorating or reaching the end of their lifespan.
Problem: The Roof is Missing Shingles
Problem: Cracking Shingles
What the Roof is Trying to Tell You: You might have a critter getting on your roof, or the sealant strip under the shingles may have been damaged.
What the Roof is Trying to Tell You: The granules have probably worn off, allowing the shingles to become brittle. They probably need to be replaced.
Problem: The Roof Leaks when the Temperature Fluctuates Between Warm and Freezing What the Roof is Trying to Tell You: You probably have ice dams. Ice dams are caused by freeze-and-thaw cycles that allow ice to build up on the roof and block melting snow from draining off. That backed-up water can get under the shingles and leak inside. Ice dams can form in as little as 1 or 2 inches of snow.
Problem: There are Black Stains on the Roof What the Roof is Trying to Tell You: There are algae growing on the shingles.
BOIDUS FOCUS Classifieds
Products | May 2013
BOIDUS FOCUS Classifieds May 2013 | Products
PRODUCTS
Eco-Insulation reaches out to community
FRANCISTOWN BRANCH OPENING APRIL 2013
Supported by Architecture for Humanity, Football for Hope is an outreach initiative of FIFA™ given impetus by it's “20 Centres for 2010” programme that began in South Africa as the official campaign for the FIFA World Cup™ 2010. The centres are operated by Grassroot Football, where a large focus is not only on the development of soccer, but on the prevention of AIDS. At the most recently completed pro-bono project, Eco-Insulation donated their services and products to the construction of the latest South East District Football for Hope Centre, located on the SEDYEA site in the village of Ramotswa. The Eco-Insulation produce was professionally pumped into the roof above the ceiling of the main conference area and offices.
Francistown Contact No.:
74 71 83 11 P.O. Box 10039, Gaborone, Botswana Unit G1, Plot 22055, Gaborone West Industrial Tel: 3190837 / 71449624 e-mail: eco-insulation@vbn.co.bw www.eco-insulation.co.za
PRODUCTS: Boards, Shelving, Worktops, Coatings, Timber & Mouldings, Doors & Windows, Hardware, Tools, Kitchen accessories, House brands SERVICES: Deliveries, Quotations, Cutting, Drilling
GABORONE OUTLET NOW OPEN
Plot 50675, Opposite Airport Junction Mall, Tel: +267 395 9632/3, Fax: +267 395 9637
BOIDUS FOCUS May 2013
Boidus Feature Page 13
Turnstar Holdings Acquisition; Mlimani City Mixed-use development in Tanzania / Turnstar Holdings Limited Profile
by Kibo Ngowi & HK Mokwete >>> FROM PAGE 01
Other Key Projects by Turnstar Holdings Limited Game City Mall, Gaborone
Turnstar Holdings Limited Annual Report 2012 The company does not distribute capital profits. The property portfolio is well diversified across the major sectors of commercial property that’s being office, retail and residential in the following spread by value; • 21% Commercial (2011: 21%) • 76% Retail (2011: 76%) • 3% Residential (2011: 3%)
Our company Turnstar is one of the largest Botswana listed property invesment company with a quality portfolio of 9 properties valued at P 749,144,794 and a market capitalisation of P 501,553,752 as at January 2012.
Game City, our first flagship property, is a world class retail centre comprising of shopping experience with a tenant mix that includes fashion, supermarkets, furniture and household goods, restaurants, food courts, multi-screen cinema complex and banking facilities. We seek to remain abreast of international trends in order to maintain our competitive edge. The Game City Phase II project has brought more multinational stores to the foot of Kgale Hill and was completed during the current year with total expenditure capitalised being P85M for the entire project. To date the new wing is 99.9% let with tenants such as Clicks, Pep, Coricraft, Woolworths and O’Hagans. Phase II has not only served to improve the shopping experience of our patrons, but has also created value for our unit holders with rental income increasing by P1.2 million per month.
Fairgrounds Office Park, Gaborone
Nzano Shopping Mall, Francistown
Turnstar is a variable rate loan stock company and effectively, distribution is made bi-annually to unit holders from all profits generated through rental income less operating costs and interest on debt. Our Strategy According to Mr Jacob Motlhabane, MD “We have seen that competition will in crease in the near future, with all future developments earmarked (including those already commissioned). Thus to achieve revenue diversification and protection against future competition we are looking for external growth. With Botswana’s small market, future growth prospects will be constrained. One way to achieve this growth is to attain a PanAfrican reach.”
Professional Practice / Boidus Feature Page 14
BOIDUS FOCUS May 2013
THE PM SPHERE Stakeholder Engagement - Avoiding White Elephant Creations by Brad Jones
Community Outreach Architecture; Sedyea’s Youth Football Centre Completed by Kibo Ngowi
This topic will try to discuss ways of identifying the stakeholders in our built environment projects, how they can be engaged to reduce project failure by way of increasing acceptance of project products. The other benefit of engaging users is to ensure longer benefit realisation of our project products. In using the term stakeholder we may have to consider that a stakeholder comprises those that are impacted upon directly and indirectly by a project. In the wide sense of the description we may confine ourselves to focus on: customers, users, suppliers, department of labour, department of occupational health and safety, politicians, special interest groups (such as unions, environmental organisations), employees, operations and maintenance personnel etc. After the initiation the project manager should address the stakeholder identification through the communication strategy preparation. Identifying key project stakeholders can assist in giving feedback to the client or project sponsor about how to allay the fears of or discomfort that key project decisions may have on the welfare of the stakeholders. How many bus ranks have been constructed the country over to be rejected by their intended users and remain white elephants? In such cases the project mandate for the project manager may have been to develop plans for a bus rank at an identified plot on the outskirts of town. As a project manager it may be a notch on our belt that we constructed a bus terminal outside town, but 10 years later it would be a scratch to any project manager’s ego to find the structure they put up abandoned and housing goats and donkeys. Below are a few cases of projects where i believe the stakeholder engagement was unconvincing to say the least. Stadio Delle Alpi (Turin, Italy)– Case of a product that missed its intended recipients Take the example of the Stadio Delle Alpi in Turin, Italy. This was a stadium constructed for the 1990 Italia 90 Soccer World Cup in Italy. The inclusion of an athletics track but absence of a warm up track meant that the stadium would never be able to host major athletics events. This omission reduces the number of potential users of the stadium from three (two football clubs Juventus and Torino, and the Italian Athletics Federation) to two (Juventus and Torino). This stadium was a 69000 seater and hosted the second round match between Argentina and Brazil and the memorable semi-final between other perennial rivals England and Germany, both having 60000 attendances. Despite an existence of over 10 years and Juventus’ notable prestige in Italy and Europe the stadium only recorded its highest ever attendance in 2003’s Uefa Champions League semi-final between itself and Real Madrid of 66,299. Factors contributing to this below than expected benefit realisation for the municipality which owns the stadium as is the case in many European cities and its clients Juventus and Torino FC are that the athletics track reduced the distances between the spectators and the action on the football pitch, obscuring of spectator views caused by advertising billboards and the exposure to the elements of spectators.
We >>> soon FROMfound PAGE that 07 SEDYEA’s potential far exceeded our budget for the Football for Hope Centre – this meant that we needed to be clever to try and stretch the budget. We established that many activities could take place outside, provided that there was cover from the sun and the rain. It is much more cost effective to build shade areas than to build fully enclosed spaces, and so we aimed to maximize the amount of usable area by creating a covered and shaded ‘outdoor seminar space’ that connects the admin and sanitary areas and can double as an extension to the multi-purpose room, as well as a stage and spectator area during match days. The circulation areas are covered but external and generous enough to double as casual meeting areas. Low walls, inspired by the traditional Tswana ‘lelwapa walls’, provide informal seating.
The existing kitchen area has been extended with an outdoor meal preparation area through a donation from the German Embassy. External spaces are as important as internal spaces – the new building is arranged in an L-shape and together with the existing building and one of the shipping containers that the pitch arrived in – now re-purposed for use as a tuck shop – forms an arrival courtyard for the whole centre. The outdoor seminar space acts as a link between this space and the two football pitches.
BF: What challenges if any did you face in the process of designing the centre?
EE:
The two main challenges were to design a building for a comparatively severe climate and a relatively tight budget.
The mono-pitch roof allows rainwater harvesting and an in-kind donation of a solar installation by Yingli International provides the building with electricity.
Botswana has quite an extreme climate with hot summers and cold winter nights. The challenge was to de-
The expensive correction- Juventus Stadium Fast forward to present, Juventus have purchased the stadium from the municipality for 25 million euros, demolishing the stadium in 2009 and reopening in 2011 as the JUventus Stadium, torino moving to the Olympic stadium. The new stadium has no athletics track and is a 41000 seater with Juventus matches more atmospheric. Given the size of the institution I am of the belief that in 5-10 years the stadium may not suit the demands of accommodating growing crowds. However this is an expensive correction (reconstructing a stadium) to make for not delivering a product that would have accommodated stakeholder requirements adequately. There were competing interests during the planning and design of such a stadium: being the athletics federation who believe they can pitch world class events to be hosted in Turin, the football clubs who needed a stadium to accommodate football spectator needs. These are competing interests because to enjoy a football match you have to watch from as close to the pitch as possible and world class athletics events require additional space which widens the distance between the pitch and the fans, not forgetting the running track. Thus the omission of a running track should have killed the inclusion of an athletics track. In the end the municipality has disgruntled clients and high running costs of keeping the stadium up to standards. This is typical of European cities excluding Britain where municipalities construct multipurpose stadia to derive multiple streams of income from such as the San Siro and the Stadio Delle Alpi. Lessons for our local project managers and property developers Stadia (National, Lobatse, and Francistown) Now try to import these lessons to our local levels of stakeholder engagement. Out of all government owned stadia in recent times the busiest has been the Molepolole Sports Complex. We know the embarrassing debacle that was of the National Stadium refurbishment. Now supposing these stadia fall within the property portfolio of BNSC. What can BNSC and its stakeholders being the various sporting codes do to extract maximum use of all their properties and ensure enduring projects?
sign a building that would be cool in summer and warm in winter without resorting to air conditioning. Orientating the building’s long side along an East-West axis minimizes overheating caused by the hot afternoon sun. Generous overhangs and external sun shades are designed to shield the building from the summer sun, but relatively low North facing windows allow the lower lying winter sun to enter the building and help warm it during the cold months. Generous room heights and good cross ventilation further minimize overheating. The white finish on the metal roof reflects heat, and a generous in-kind donation of ceiling insulation by Ecoinsulation drastically minimizes heat gain and heat loss through the roof. The second significant challenge was the very tight budget. In addition to trying to maximise usable floor area (as described above), the materials used were chosen to be cost effective and robust – stone walling, clay brick walls (providing good thermal insulation), brick and stone paving, screed flooring. The walls are ‘bagged and painted’ internally and externally, which is more robust and more cost effective than plastering walls. In addition, our local supporters made a huge contribution to the project through donating their professional services and materials – it would have been impossible to realise this project without their help.
SPONSORS: FIFA / streetfootballworld / SEDYEA (South East District Youth Empowerment Association) / Adidas / Coca-Cola / Emirates / Hyundai / Sony / Visa / Yingli Solar / Greenfields / Architecture for Humanity / Eco-Insulation / CTM Gaborone / Sanitas Nurseries & Garden Centre / Gaborone Hoses And Fittings CONSULTANTS: Mosienyane and Partners International (PTY) LTD, Architects, Town Planners, Urban Designers, Property Consultants / Kille & Dannhauser, Chartered Quantity Surveyors / NMA Consulting (Pty) Ltd, Consulting Engineers / Nichris (Pty) Ltd a/t AG Georgiades, Consulting Engineer / A. R. Edwards and Associates, Consulting Electrical And Mechanical Engineers PRINCIPAL CONTRACTOR: Rimu Enterprises SEDYEA changing lives through football
Can it work on having two or three national stadiums, each having its own focus? Supposing the national stadium in Gaborone is remodelled as a football stadium with guaranteed cup finals, guaranteed national team matches. >>> CONTINUED PAGE 18 P.O. Box 1731 Gaborone
Tel: 3913335 Fax: 3900902 Email: nma@nma.bw
BOIDUS FOCUS May 2013
LOCAL COMPANIES DEDICATE TIME AND RESOURCES TO FOOTBALL FOR HOPE AR Edwards & Associates AR Edwards & Associates, an electrical and mechanical consulting firm established in 1979, were the mechanical & electrical consultants for the project. Their main works include but are not limited to providing detailed electrical and mechanical designs and supervision of both government and private projects. Their electrical department has two sections: The Power Department which deals mainly with designs of substations, HV transmission and LV distribution lines for Botswana Power Corporation and the Building Services department which deals with the deigns of electrical services of buildings. Their involvement in the Ramotswa project mainly entailed providing detailed electrical and wet-services designs, preparations of tender documents, tender adjudication as well as supervision of the project. Some of the most recent projects they have been involved in include the new SADC House, MASA Towers, Diamond Trading Company Botswana (DTCB) Offices, ITowers, Fairscape and The Office Development Project, just to name a few. Tshepo Radikara of A.R. Edwards & Associates explains that they were delighted to be given the opportunity to fulfil their social and corporate responsibility of giving back to the community as one of the oldest electrical and mechanical consulting engineering firms in the country. “Taking into account the nature of the project, our biggest challenge was to provide an electrical design that could be achieved within a shoe-string budget while still being pleasing to the eyes,” Radikara adds. “We therefore had to come-up with a very simple yet aesthetically appealing lighting design utilising the cheapest light fittings available locally. Having been involved in so many projects in the country and having dealt with many light fitting suppliers, we were able to achieve what we set out to do to the delight of the Architect and the whole project team.” The project team from A.R. Edwards & Associates was headed by the company’s Mechanical Principal Engineer Mr. John Brady with Mr. Tshepo Radikara as the Electrical Engineer for the Project.
NMA Consulting (Pty) Ltd NMA Consulting (Pty) Ltd, formerly Newton McDonald and Associates (Pty) Ltd, a 100% citizen owned company established in Botswana in 1980, provided civil and structural engineering services in the project. They roped in Alex Georgiades to assist with the structural engineering, so he did the structural design while they did the supervision. NMA is also a majority shareholder of UWP Consulting (Botswana) (Pty) Ltd, a subsidiary of the international engineering consultancy UWP Consulting (Pty) Ltd with a staff complement of 300 people and specialist expertise in various engineering fields. NMA provides a wide variety of services assisting clients with the conceptualisation and budgeting of projects through survey, design, project management and monitoring of construction. NMA’s core competencies are Infrastructure development: land development projects consisting of roads, storm water drainage, water and sewer reticulation; Roads: national roads such as primary and secondary roads for the roads department, as well as tertiary roads for local authorities; Structures: Structural design for factory shells, double storey buildings and large houses. Other areas of competency include Road materials and pavements; Airfields and airports; Sports stadia and recreational facilities; Multi-storey buildings and bridges; Water distribution systems in primary and secondary assets; Sanitation systems in primary and secondary assets; Storm water drainage in primary and secondary assets and Railway sidings. Moemedi Rabolo of NMA Consulting explains that small projects offer a rare opportunity for young engineers to be exposed to the holistic nature of building projects. “As a company that deals predominantly with big projects, we rarely get to appreciate how the different disciplines work together and affect each other to achieve the project goal,” says Rabolo. “I guess this is the biggest lesson I learnt as a young engineer involved in this project; it taught me the value of team work.” People from the NMA Consulting office involved in the project were Christopher Long who served as Project manager and Moemedi Rabolo who served as Project engineer.
Education Page 15
Institutional Reforms of the Construction Industry in Botswana [BIDPA Extract]
by Boidus Admin / Source: Prepared by Botswana Institute for Development Policy Analysis (BIDPA) 1.1 TRAINING REGULATORS AND TERTIARY INSTITUTIONS Constant, relevant and responsive training and skills development for construction is required due to constantly changing construction technologies. The institutional framework for training and skills development in construction includes regulators, and training institutions. 1.1.1 UNIVERSITY OF BOTSWANA (UB) UB is the country’s largest institution of tertiary education and training. The faculty with direct relevance for construction, the UB Faculty of Engineering and Technology has the following specific objectives with regard to construction: 1. To produce quality pre-professional cadre;
2. To contribute to development through research; and 3. To develop communities by applying knowledge gained through research The lack of a National Qualification Framework in Botswana means that the UB does not have a mechanism for assessing entrants from other training institutions such as the brigades or the technical colleges. The university also faces challenges of negative perceptions from stakeholders; the perception that UB students lack practical training exposure. Being the only university in Botswana to date, the UB might be hampered by lack of pressure to be innovative and thus responsive to the needs of the economy.
End of Year Exhibition of students’ works: Department of Architecture & Planning
by Boidus Admin
PRESS RELEASE The Department of Architecture and Planning at the University of Botswana will host a public End of Year Exhibition of students’ works from semesters 1 and 2 on the 17th May from 1700hrs. The exhibition, which is open to the general public, will be held in the University of Botswana, Block 205 in the main campus. This event is focused on establishing links with the industry and the community at large; as well as creating exposure and showcasing the students’ creative talents. The exhibition is held at the end of every Academic Year and usually remains open for the 3 months of the university vacation.
The exhibition will be officiated by the Chairperson of the Architecture Registration Council, Mr G. S. Manowe, who will deliver the Key Note speech. Other guests include the Dean of Faculty of Engineering, Professor J.M. Chuma and the Head of Department for Architecture and Planning, Professor B. Bolaane.
Property / Financing Page 16
BOIDUS FOCUS May 2013
Managing Risk in Construction Projects by Boidus Admin
References: 1. ‘Risk Management’ Scott Cullen, AECOM, www.wbdg.org/project/riskmanage.php 2. Risk Management: Title 9/3/04, www.constructingexcellence.org.uk ness, contracts, finance, purchasing, estimating, and project controls. The process is ongoing, a never-ending cycle and iterative process of identification, quantification, modeling, management and monitoring. The analysis can include identified risks, estimate and schedule items, new risks, secondary risks, scope changes, change orders, and actual costs, so as to provide a graphic depiction of the changing nature of project risk over time.
Risk management is a proactive project management tool used to reduce the susceptibility to losses incurred during a course of action, which leaves an auditable trail of changes. The process focuses project resources on reducing vulnerability, providing early visibility of potential problem areas and creating mitigation actions. Good risk management should involve the entire project team, including design, engineering, busi-
How to get started Risk management is an organized method of identifying and measuring risk and then developing, selecting, implementing and managing options for addressing risks. There are several types of risk that an owner should consider as part of risk management methodology. These include: • Schedule risk • Cost risk • Technical feasibility • Risk of technical obsolescence • Dependencies between a new project and
other projects • Physical events beyond direct control Risk management seeks to identify and ultimately control Risk Mitigation and Monitoring Risk mitigation and the development of appropriate response actions is often the weakest part of the risk management process - the ongoing management and monitoring of identified risks, and the addition of new risks to the model, require constant vigilance. When managing risks, there are several risk strategy options to be considered. Risks may be avoided entirely (usually by eliminating their cause or root), transferred to another party (through contracts or insurance), or exposure to the risk can be reduced (through planned action measures). Acceptance of the risk should be considered only as a last resort, and should only be applied for items that cannot be addressed by any other strategy.
For each risk item, an achievable target risk reduction goal should be set, and proactive steps or action items identified by which the goal can be attained. The mitigation steps must be appropriate, cost effective, and achievable. The development of these steps should encourage problem solving and innovative solutions, with the objective of avoiding the risks or reducing their impact as much as possible. When discussing action items, it is important to remember that interpretation of each risk will differ from person to person, with the recommended course of action varying according to the person or organization's perceptions of project management, objectives, environment, experience, and risk tolerance level. Similarly, opportunities can be discussed, and steps or action items developed which can increase their probability of occurrence or their level of impact. In addition to creating action items for the risk, the risk manager may want to ask the following questions: • What is the root cause or trigger for this risk? • Does this risk have an impact on business, or just on the project? • How will we know when the risk has occurred? • What will happen if the risk occurs? • How are we currently handling this risk? • What steps can we take to better manage or mitigate this risk? • What should we do if we fail to manage this risk? Risk management is an ongoing and iterative process, which should be conducted throughout the lifecycle of the project. Each risk manager must review all of their risks on a monthly basis or more frequently, and update the risk assessment sheets, even if only to note that there has been no change. What are the benefits of risk management? • Minimising uncertainty on projects or during changes in company organisation; • Better decision-making – risk management either as a stand-alone projects or linked with a value management exercise (see value management fact sheet), can ensure that strategic decisions are well-founded; • Providing a hard focus on critical problems. For construction projects these will include risks associated with design, construction and maintenance/operation. Risk management techniques will complement a whole life costing approach (see whole life costing fact sheet); • Better briefing (see briefing fact sheet) • Better work planning – risk management enables you to balance high-risk projects with lower-risk projects. • Clearer accountability – once risks are established, risk-minimisation can be assigned to individuals within your team. • Better ‘partnering’ (see partnering fact sheet) – risk management help provide partners with a common purpose. What type of risks could affect construction projects? These are some potential risks, a number of which could also be relevant to organisational change. Particular risks for construction industry clients: • The income or benefits from a building or project could be lower than expected. • Poor advice could lead to: use of inappropriate management tools for the project; choice of inappropriate procurement routes; failure of systems to identify & secure the quality required by the client; a project which is poor value for money. • Completion could be delayed because of: disruption; inefficiencies and/or lack of coordination in the supply chain; disputes; poor quality work; bankruptcy. • There could be unforeseen project costs, including variations. • Higher than expected running costs could result from: defective design; unmet specifications; defective construction. >>> CONTINUED PAGE 18
BOIDUS FOCUS May 2013
Comments Page 17
EDITOR’S NOTE
Coming of Age of Botswana’s Property Market
Comments & Letters
Boidus Botswana shared a link @ sacommercialpropnews.co.za:
‘South African big construction companies admit to R26 billion bid-rigging’
by H. Killion Mokwete, RIBA Chartered Architect
Boidus Botswana: This is shocking! Is it prevalent in Botswana I wonder?
The gathering of delegates, professional panelists, guest speakers, VIP, and invited guests to the first ever CBD Seminar is a sure sign of good things to come. The event which is a platform extension of what Boidus Media brings to the built environment is aimed among other things to stimulate interaction, debate and also opportunities for business exchange in what is arguably the biggest private sector led building project in Botswana.
Kaone Selato: If its related to the 2010 World Cup,the govt new they were doing it,and understood why they were doing it...none of them had the capacity to build more than one stadium with deadlines looming...so the only plausible scenario was to sit down and divide the tenders amongst themselves,so that everyone gets a slice..the RSA govt knew it
The emergence of CBD at the heart of Gaborone has been in the pipeline for over 25 years and its promise to the city is only becoming apparent. The CBD in its original conception was conceived as a future heart of Gaborone and the identity of the City. It is only proper that such a momentous undertaking therefore take centre stage in many platforms of business expositions, seminars, showcases and others. The emergence and maturity of our local private sector in investment in property, has come of age and all is evidenced in the number of growing property listed entities at the Botswana Stock Exchange. This stern confidence in the private sector has probably been the key input in the previous excellent growth in the property market and the construction industry sector at large. This confidence is also a reflection on the goodwill and support that the private sector has been willing to lend to supporting this CBD seminar. Events and other initiatives of this nature in the industry can only become possible through the continued confidence and support from generous sponsors who not only see this as a necessary part of developing our property market, but also as a business opportunity. It is events like this and many others in neighbouring countries such as SAPOA , Design Indaba, African Property Summit and others that champion industry interaction and showcase innovation. Our markets maturity needs to confidently support, take advantages and opportunities that such activities bring. I would like to thank our partners, event sponsors, and industry captains, guest of honour, exhibitors and delegates for making the vent possible.
Boidus Team EDITOR H. Killion Mokwete
JOURNALISM Kibo Ngowi
DISTRIBUTION Nako Kabomo
DESIGN Bridget T. MacKean
SALES H. Killion Mokwete Thabo Sarona
GUEST COLUMNISTS Phenyo Motlhagodi Brad Jones
SEND YOUR COMMENTS AND LETTERS: EMAIL: mail@boidus.co.bw VISIT: www.boidus.co.bw
Jan Wareus: The situation in Botswana has all the signs of bid-rigging among the major players, too. Who is digging into our local situation - Boidus? Boidus Botswana: @jan. I can’t say. But when the same players involved there are here, we can only hope they play clean here. Jan Wareus: Hope? As I said earlier - Bob Hope, Steve Jobs and Johnny Cash are no more - and we have no hope, no jobs and no cash!
Village Development Plans Destroy Rural Neighbourhoods Article originall published on www.boidus.co.bw 24/10/2011 PETER FENI: maitengwe village one of the large villages so far its us to guide and monitor the village committies how the develoments coming and were and when thru our MP can we try to see that roads in the village of maitengwe to planned now becouse the village is developing fast so we see the face of the village so may people are travelling crossing to zimbagwe via maitengwe and we need to stop this pitlortree toilets very fast becouse the number of people in the village its growning fast JAN WAREUS: Can’t agree more, Killion! When I represented Swedeplan, once upon a time (1990, I think) we were coming up with a serious “Village Upgrading Manual”. And was/is is totally ignored! Instead DTRP insisted on “Urban Development Standards” in ALL invitations to planners for tenders. This is a professional shame for the DTRP planners! JW KEAGILE DANCE PIUS: TUTUME SUB-LANDBOARD ARE SWALLOWING BEFORE THEY COULD CHEW Reading Mr Mokwete’s article(Oct 24 ’11) makes me very emotional, more especially that the landboard is swallowing unchewed boluses which are going to cause complications to the villagers like me. In all the Maitengwe Kgotla’s there is ample space to accomodate all the current home seekers which therefore means the decision to force all the current home seekers to the so called Maitengwe lay out is devoid of any sense. As stated in the article the chosen area for the lay out is not conducive for human habitation at all and thus should be left for catle grazing. The vast majority of people who needs plots now stay in urban areas and when i picture a situation whereby my mum will be walking from Shuzhwa to Maitengwe lay out almost everyday to check on my property a hot tear
oozes off my eye. Bathu ba kanyikwedu koti tola makole ano pinda makumi manna even double that kuti our village ebe toropo, so lets rise on our feet and talk to our leaders about these issue because its us who suffer the consequences. BAGALI: We hav forced an annual meetin on d first of every january pa libala gwe bola to discuss dis issues nd among em shud b d removal of d current crop of leadership,t failed nd failed so bad.esoecially dis so called plots…ku nkange ey refused it,our chief gleefully,wthout consultation,agreed wth d Ngwato landboard..such things need to b reversed.nd dar needs us,together under a tree to solve it.so ther u got it..spread d word nd c u ther. KAGISO JOBE: I think we need to give tribal authorities more control on land allocation and do away with the nationalistic approach which obviously is not working. I understand the dilemma of the government to allow all its citizen access to land anywhere in the country but that shouldnt be at the expense of destroying our unique cultures in the country. We know very well that we have different tribes in Botswana that have different social and economic needs, therefore we cannot go around copying development plans without changing them to suite their new places. Social amenities and development infrastructure are necessary in any settlements, but they can be introduced with great care. adapting them to the needs of the people. BIDUBA: The problem with our planning is that we apply same standards in all settlemts. The village character should be the ones that determine how we plan for settlemnts. Every village is unique on its own but we a failing to recognise this when we do our layouts. Our villages has over time lost character and identity because of how we do our planning.
Boidus Botswana shared a link @ evolo.us Prishtina Central Mosque / Tara O. Amayesh
Jan Wareus: Very refreshing to see architects attempting to create something new. Being spiritual, so to say, as leading architects have always been. Instead of just permutations of existing buildings as we see here (except for the new Hub). As well as Utzon’s Sidney landmark became “the Sails” this will become “the Sliced Loaf” and we need more of it!
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Boidus Botswana shared a news item from ‘Gabzfm News’ Govt plans to demolish houses in Tswaane Jan Wareus: I have always stated that it it is much quicker, cheaper and human to change the plan rather than to demolish “illegal” developments that can be legalized with a plan and a fine! I think this is power play by government planners and a shame for the profession! Further on that statement : I started to report on the planning failures that resulted in unnecessary “yellow monsters” in year 2000 when the Mogoditshane “squatter destruction” started and the poor planning
that was the justification. I have all the facts in documents from June 2000 and reports to the then VP, the Minister and the PS’s of the time to no avail. Consequently, I had to realize that behind DTRP’s power play was solid and strong business interests and the planners were just handymen or executioners with convenient (poor) plans. There were very strong private interests behind the yellow monsters! And the same situation we have today - where is the independent press that dig and can report on this?
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Professional Practice Page 18
BOIDUS FOCUS May 2013
THE PM SPHERE Stakeholder Engagement - Avoiding White Elephant Creations by Brad Jones >>> FROM PAGE 14
The Lobatse is remodelled as an athletics stadium as well as home stadium for Extension Gunners and BMC with guaranteed use for all school finals for BISA athletics and BAA meetings as well as all international athletics meets. The Francistown is earmarked the same way as Lobatse. With the above investment in stadia our infrastructure strategy lags behind in supporting the stadia construction. That is a matter for the transport department, bus owners and railways parastatals to take into consideration. These are all stakeholders who are not being stimulated by significant developments that can boost economic gains and also increase the enjoyment and utilisation of our sporting facilities. Bus terminals (Tonota, Lobatse and Jwaneng) Now let us draw lessons from the recently completed bus terminals in Tonota, Lobatse and Jwaneng and their non-use or under-utilisation by the prospective or intended users. In the case of the Jwaneng bus terminal there is a stated underutilisation by taxi operators who proclaim that they were not consulted on the development of the bus terminal. They insist that the bulk of their business remains in town at the various malls while the bus terminal is located along the Trans-Kalahari highway on the outskirts, and they would subject themselves to loss of potential business by taking residence at the new bus terminal. If the location of the bus terminal was not done in consultation with the affected stakeholders then the project manager has not collected user requirements nor does satisfy the quality planning process. Conversely the taxi association may have been obstinate to come to the party and not been fully appreciative that for the public to be served better and safely we needed a relocation of the bus terminal. However where strides are made in the right direction it must be lauded for the government has instituted such measures as the Urban Development Committee (UDC) and the District Development Committee (DDC) which are forums for tracking what government departments are doing in their respective communities vis a vis development projects. These can be reinforced by the participation of the local chapter of BOCCIM, the stakeholder bodies such as churches, taxi associations (if not affiliated to BOCCIM) among others. With such steps we can make our public projects more responsive to user needs and as encompassing of stakeholders as possible. We will reduce incidences of the above occurring etc. With a district level of strategic planning and engagement we can also engage the local institutions such as banks, schools and colleges to develop programmes that can reinforce or support the projects and developments. With a brewery constructed in a district it makes sense to realign the teachings of the local brigade to teach courses in instrumentation and plant maintenance. This localised planning also is more responsive to modern challenges such as the recession and assists in reducing local brain drain to other areas of the country who may be under tremendous strain. Parting shots - In conclusion the following items need a looking into: 1. Strengthening our stop-go milestone points in our projects to ensure that nobody has been left behind. Before projects proceed to the next stage we should have a register of identified participant sign-offs. At the initiating phase we should have a register of potential stakeholders and judge their expectations from our proposed project, their potential influence. At each stage bring the stakeholders to a meeting and discuss the project achievements to date to get their feelings on the project. If before the procurement phase the community through appropriate forum was brought to know about the proposed bus terminals they would have put their feelings known. They would have even given the project manager other alternatives (do nothing, do minimal and do something), such as identifying alternative sites. 2. Differentiating between project sponsor and customers/ users. Many projects have project sponsor performing user roles as well. In the end the project delivers products that actual users don’t approve of and expensive reworking is needed. The Turin stadium is an example of this where the sponsor may have left the users behind and delivered a stadium that is neither sufficient for athletics nor satisfactory for football. With users on board it would have been decided between the Italian Athletics Federation and the two resident football clubs to abandon the athletics track. Scope creep is minimised. We avoid a situation where a project to install airconditioners in a school is about to be completed when a user who didn’t know about the project also brings a request for an airconditioner in their office too. Next we shall look at the project management approaches including methodologies, training, and project management offices. DISCLAIMER: Please note that the views expressed in this essay are neither those of Boidus, its management, nor its advertisers.
Managing Risk in Constr. Projects References: 1. ‘Risk Management’ Scott Cullen, AECOM, www.wbdg.org/project/riskmanage.php 2. Risk Management: Title 9/3/04, www.constructingexcellence.org.uk
>>> FROM PAGE 16 Particular risks for main contractors specialist contractors: • Poor tender/briefing documents • Client who will not commit • Inexperienced client • Non-standard contract documentation • Ultimate client failing to sufficiently acknowledge and reward quality and value for money • Poor design for construction, for example when ‘buildability’ is not properly addressed • Unexpected problems relating to the site, such as contamination or unusual ground conditions • Co-ordination problems – this could be a particular problem for specialists • Component and/or materials suppliers unable to meet delivery and/or cost targets • Faulty components and/or materials • Accidents and injuries to staff • Weather interrupting work • Delayed payments
• • • •
Poor documentation of records Lack of co-ordination of documentation Poor guidance for operatives Poorly trained or inadequately trained workforce • Industrial disruption Particular risks for designers: • The client does not have the necessary resources or experience to support the project; • The project is larger and/or more complex than in the designer’s previous experience; • Responsibilities in non-traditional procurement may not be clear at the outset; • Procurement routes might restrict the level of design input; • Poor tender or briefing documents; • Non-standard contract documentation; • Poor, inadequate, inaccurate or inconsistent product information; • Delayed payments; • Poor documentation of records.
IS YOUR BUSINESS BUILDING A FIRE RISK? by ..... Many fires are not accidental and in certain instances could possibly have been avoided. This is not to be confused with arson. Botswana has had their fair share of fires in recent years and even though that there is insurance cover; it has numerous knock on effects. For example if your company’s turnover revolves around selected customers one or more of those customers may not return once you have recovered from the effects of the fire. Below are some observations following inspections of properties. This article focuses mainly on the fire aspect of risk management. It is fair to say that every company should practice good governance and implement risk management/housekeeping in their businesses. In most cases, the lack of implementation is not intentional but rather due to the attention given to the day-to-day running of the business. Another factor is that with the economic crunch still present, companies are diverting the money allocated to preventative maintenance and using it elsewhere and the money for preventative maintenance changes to breakdown repair/maintenance. The situation is further made worse by the lack of regulations and compulsory standards. It has been established that most fires start due to electrical short circuits. These short circuits occur because of a lack of annual inspections, incorrect maintenance, inadequate repairs, the use of outdated equipment (possible budget restraints), illegal wiring, cheap or low quality equipment (adaptors) and general disregard for equipment. The motto “Don’t fix something that’s not broken” always applies. Fires need fuel and this is often supplied in great quantities, due to a lack of good housekeeping. A packaging company, wood working, furniture manufacturer will naturally have a higher chance of catching fire, not only because of the raw material but also due to other factors such as dust, saw dust, wood shavings etc. The housekeeping, management of the waste and the storage of raw materials are what differentiates a good risk from a poor risk. With lack of housekeeping there is also the tendency to overlook the employees. Many employees work in conditions that are not safe, and require among others; protective clothing, face masks, goggles which may not be issued. As owners and managers there is a responsibility to offer employees a safe working environment which includes using employees that are skilled to do the work, ensuring minimum exposure to injury, disease and so forth. Insurance companies carry out routine surveys to determine their exposure to a risk and to impose risk improvement requirements which are often precedent to the policy being issued or renewed. Detailed below are typical short falls in basic risk management. (Some may not apply to smaller companies) • Insufficient fire fighting equipment. • No fire marshals or trained fire fighting team. • No evacuation drills and assembly
area. • No trained first aiders and/or first aid boxes. • No procedures in the event of a serious injury • Lack of regard to waste management and incorrect storage of flammable liquids. • No maintenance programmes on buildings, machinery and plant. • No disaster plan. • No disclaimers in lodges, hotels, sport clubs etc. • Incorrect storage of LP gas. • No formal Safety Health and Environment (S.H.E) program in place (protective clothing). • Lack of back up on debtors, creditors, stock inventories and copies being kept off the premises. • Under insurance The absence of regulations and the lack of capacity to control the existing regulations have allowed landlords, company owners to get away with absolute minimum standards. Botswana Bureau of Standards (B.O.B.S.) has been successful in passing a number of compulsory standards which will go a long way to improving minimum requirements and these remains on going. For example; the storage of gas bottles in a building caused a fire to reach new levels when gas bottles started to explode and gas leaked out of containers deemed to be “empty” .The fire simply became a conflagration and resulted in unnecessary additional damage and the potential risk to lives. Had the bottles been stored outside in a well ventilated cage (compulsory standard) things would have been radically different. Sadly it sometimes takes a fire before companies accept the need for risk management and it’s on going implementation. Basic standard risk management is the responsibility of all companies irrespective of the sector, be it administrative, manufacturing or mining. Does your company fall into this category? Ensure that you minimize your risks, by applying necessary risk management and measure.
Botswana Insurance Company Limited Tel: 3600500 | Fax: 3972867 Website: www.bic.co.bw | Mobisite: m.bic.co.bw
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