Boidus Focus - Vol 3, Issue 1 [Feb 2013] by Boidus Botswana

OIDUS FOCUS Registered at GPO as a Newspaper | Volume 3, Issue #1

Botswana’s Architecture design & Urban Landscape Newspaper | F E B R U A R Y 2 0 1 3 www.boidus.co.bw

NEWS | page 02

BUILDINGS | pages 06, 07

COMMENTS | page 17

PRACTICE | page 18

Local Property Valuer Expert Completes Market Research on Traits of Valuation in Botsswana

Phase One of the Renovation of Poso House Complete The Maun Building Showcase

After all the diamonds are finished in the ground...what will become of these mining towns?

The Critical Issues at the heart of Botswana’s Public Projects Procurement Failures

P8.00 (Including VAT) BOIDUS FEATURE >

The 2013/14 Budget Speech and the Construction Industry

BOIDUS EXCLUSIVE >

Light at the End of the Tunnel or an Oncoming Freight Train?

by Kibo Ngowi & HK Mokwete

Meet the Boss: Dziki Nganunu

MD of Botswana’s biggest Insurance Company by HK Mokwete

As he puts it, Botswana Insurance Company (BIC) is the biggest and oldest Short term Insurance company by any measure, ‘Even if you were to use market share, number of staff or any other measure, we are by far the biggest Short term Insurance Company in Botswana.’ Boidus Focus sat down with Mr Dziki Nganunu to explore issues of Insurance in Botswana’s Building Industry. The Minister of Finance and Development Planning (MFDP), Hon Kenneth Matambo recently delivered the eagerly awaited Budget speech for 2013/14. For the Government dependent Construction Industry which has been stifled under the pressure of a 3 year long freeze on new projects,

the pronouncements concerning this year’s proposed government expenditure were eagerly anticipated. Boidus Focus Speaks to Experts and industry stakeholders to gain an insight into what this year’s budget means for construction. >>> CONTINUED PAGES 08, 13, 14

KEY CI BUDGET ITEMS Secondary Schools’ Staff Housing – P997 mil Maintenance of Government Buildings – P798 mil Maintenance of roads – P388 mil SHHA revolving fund – P133 mil

First we talk about his rise from an Engineer (Mechanical and Electrical) to

heading BIC. After completing his Engineering degree in the UK, Mr Nganunu returned and joined Debswana mines at Orapa and Letlhakane where he spent three years working as an Engineer. His next career move saw him shifting from engineering to business through an MBA degree studied in Chicago and as he explains the move and choice of study, going to the USA was very much influenced by a desire for diversity and experience in different working environment. >>> CONTINUED PAGE 04

Prime Plaza, Phase 1, New CBD, Fully occupied with tenants including CEDA and Kenyan Airlines

The President of BOCCIM, Mr Alex Monchusi says a construction Industry Bailout has been agreed in principle “...when you look at the budget allocations that have been made to construction it gives one hope that some amount of revival of the construction industry can be achieved.”

Chris Gofhamodimo (President of TBBA), however says the budget falls short and the little that is in the budget might be too little too late. ‘…Someone said “same wine just different bottle” and I say same chibuku different cartoon; only that wine gets better with time!’

Economist Keith Jefferies warns the Industry that the days of big government backed construction projects in Botswana are over. The Industry MUST explore alternative areas of growth.

Fears of Market Oversupply Abated by end of 2012

Gaborone Office Market Report - Knight Frank

by Boidus Admin / Source: Knight Frank Botswana In January this year Knight Frank launched its first Botswana based research report, summarizing the 2012 office market into a comprehensive data-driven account of Gaborone’s major sub markets; CBD, Fairgrounds, Main Mall & Gov’t Enclave, and Finance Park.

• Average Grade A rents achieved in Gaborone were 92 PER SQM • Prime rents settled at P110 per SQM per month though lease terms have become favourable to occupiers. >>> CONTINUED PAGE 05

Local News Page 2

BOIDUS FOCUS February 2013

REIB President Bids Fare- LOCAL NEWS FEATURES well to Real Estate Pioneer Collusion and Price Fixing maybe Rampant in Botswana’s Construction Maxwell Motowane by Kibo Ngowi

Assistant Minister of Local Government Maxwell Motowane passed away after a brief illness on the 22nd of December last year. At his funeral on the 30th of December in Letlhakeng Real Estate Institute of Botswana (REIB) President Maje Maje gave a speech that highlighted the late statesmen’s contribution to the real estate profession in Botswana. The speech is printed here: Ladies and gentlemen, dignitaries and Motowane family, I stand here today as a representative of Real Estate Institute of Botswana. REIB wanted us to come and bid Mr Motowane farewell in a respectful manner and they felt that having the President of the institute speak at the funeral would be a fitting gesture to the late Mr Motowane. Before his passing, Mr Motowane graced one of our annual dinner dances where he was the guest speaker. Before I can elaborate on what Mr Motowane said, let me

by Kibo Ngowi

first explain that Mr Motowane is the founding member of REIB, which he and others formed when they realised that our profession lacks guidance and that there were more challenges coming to the fore. One such challenge was that of fly-bynight operators. They tainted the image of our noble profession and Mr Motowane was forthright in fighting to uphold the image of the real estate profession. He also believed that more Batswana should participate in the development of our real estate across the country. On the day of the dinner dance, Mr Motowane made one memorable remark or challenge to all the membership. He said that we should now all graduate from running small real estate outfits and start running large real estate corporations. He believed that we have the capability to rise to the occasion. Ladies and Gentlemen with these few words, I would like to thank you all.

Local Property Valuer Expert Completes Market Research on Traits of VALUATIONS IN BOTSWANA

by Boidus Admin

was due to the fact that there is so little that is known about the processes of valuation and yet valuation plays a crucial role in lending processes and credit risk management which are all critical elements of a national economy. Also there has been outcry about over-valued property prices and the role that property valuers play.

The report which will soon be released for public consumption is focused on the valuation process for secured lending from the perspective of lenders operating in Botswana. The report forms the first part of a two part investigation that will take views and empirical data from both lenders and Valuers to examine the practices of valuation in Botswana. Mr Mengwe, says, the motivation to conduct the six moths detailed report

Mengwe explains that the first report was conducted by collecting lenders views, experiences on valuation reporting, instruction procedures and reviewing of various areas in valuation the process which might be a threat to an independence of valuers. The report will conclude with illustrating recommendations which will help improve the understanding and critical review of valuation process in Botswana’s lending market.

Tensions are running high in the South African construction industry as twenty of the country’s largest construction firms are under investigation by the competition authorities over running a cartel stretching as far back as two decades and many of the implicated firms have had a long-running presence in Botswana. The picture of endemic collusion emerged from affidavits taken in 2011 by the Hawks and National Prosecuting Authority from the construction firm Stefanutti Stocks Holdings, affidavits which were leaked to the Mail & Guardian this past week. The collusion detailed in them, as yet untested in court, is said to have taken several forms, such as dividing up markets, asking for “cover prices” and the use of “tender fees” or “losers’ fees”.

to be one of the most significant in the country’s history. To borrow a phrase that was used to justify the United States government’s rescue of the big banks after their own risk taking chicanery led to the global financial crisis, SA’s construction giants may just be ‘too big to fail’. Meanwhile, the UK competition watchdog Office of Fair Trading (OFT) has fingered a staggering 112 construction firms as having taken part in a cartel to fix prices when bidding for business. The inquiry spans 240 alleged cases where firms have colluded to inflate prices during a tender process, covering both the private and public sector, including building contracts for schools, universities and hospitals.

According to the Sunday Standard at least eight of the companies alleged to be under investigation have, over the years, collectively been shortlisted for tenders by the government of Botswana. Evidence suggests that the problem of construction firms colluding to fix prices is so widespread in South Africa

The picture that is now emerging of construction sector wide collusion amongst the big players in both SA and the UK begs one question: could the same thing be happening in Botswana? With a construction industry that is heavily reliant on foreign multi-national firms due to a lack of domestic firms with the capacity to handle mega infrastructure projects Botswana may turn out to be a feeding ground for the cabal that

that if the government was to heed the calls of some quarters for all the players involved to be blacklisted then there would be very few if any remaining firms with the capacity to handle the big projects characteristic of the state’s current infrastructure rollout, said

the SA media have dubbed the hard-hat mafia. The Botswana heads of the implicated construction firms should expect to be put under increasing scrutiny. That is, if the Competition Authority is prepared to take the bold action necessary.

Setlhoa Village Set to Cause a Steer on the High end Housing Market by Boidus Admin

The marathon case between Botswana Government and Tourism Development Consortium (Pty) Ltd, has recently seen prime land revert back to the market when TDC won an appeal case to have the previous court judgement reversed in their favour. Located in a pristine neighbourhood and situated adjacent to a heaving corner of what will soon be the busiest node in the city, Setlhoa Village will bring into play high-end suburban residential plots boasting high flyer landowners to match. The corner between airport road and where it crosses the A1 highway has within the past few years seen A-Grade shopping and commercial developments spring out in the area. These include, Airport junction, a mixed use development with hotel, Sebele centre and soon to be finished North Gate mall. The area also has the upcoming Block 10 development next to the Diamond Hub and the Botswana Innovation Hub as well. All these makes for exciting opportunities for the areas growth in property value and appeal to potential investors. How will Setlhoa compete against Phakalane, Mokolodi and Block 10?

With 40 million pula worth of infrastructure development already spent in the site and an envisaged 5 star hotel, the foundations for a luxury suburb are already set. Although Setlhoa is on a smaller scale to both Phakalane and Mokolodi, the city’s other two luxury suburbs but its secret will always be proximity to amenities such as schools, commercial centres, airport and major highway. The other advantage that Setlhoa might also exploit by its size is compactness. Sprawled developments across Gaborone are almost a cliché and new typologies of urban developments might just offer something different to the city’s property market. Should the residential market brace itself for an oversupply? Other significant high grade development land will soon be released into the market, notably; BDC’s block 5 Phase 2 and Kgale Phase 2 development. Adding to these developments, Setlhoa will probably add variety of choice at the high end of the residential market without necessarily addressing the bulk middle income market. Higher grade housing will certainly become more available in the markets but might not necessarily flood the housing markets.

BOIDUS FOCUS February 2013

International News Page 3

African Countries Launching New Cities; Konza City, Forest Hill City

by Boidus Admin / Source: konzacity.co.ke

KONZA CITY: Kenya’s Silicon Savannah

ABOUT KONZA Konza is set to be one of the most successful cities in Africa, competing economically and culturally with the best cities in the world. This site offers all the information and insight you need to fully appreciate and take full advantage of Konza’s phenomenal growth. Find out why some of the world’s most successful companies, the most talented people and major international investors plan to come to Konza. The new city is centrally located with excellent transport and communication links. Konza Techno City offers all the benefits of a greenfield, ‘clean sheet’ site but which is nevertheless right at the centre of things: 60km from the heart of Nairobi; 50Km from Jomo Kenyatta international airport; 500Km from Mombasa and its ports; the railway within 4Km.

BACKGROUND Konza Techno City is a Kenya Vision 2030 flagship project- a national long-term development blue-print to create a globally competitive and prosperous nation with a high quality of life by the year 2030. Under the economic pillar, Konza Techno City aims to promote Business Processing Outsourcing and Information Technology Enabled Services (BPO/ITES) industries for wealth and employment creation. The target is to create over 20,000 BPO/ITES jobs in the Medium Term Period (2015) and over 100,000 by the year 2030 while sustaining an annual GDP growth rate of 10% over the next 18 years. The Ministry of Information and Communications was given the mandate to initiate the project through a Cabinet Memorandum that approved the project among other projects to grow the ICT sector in Kenya.

FOREST HILL CITY: South Africa’s new mixed-use development Billion Group, on 7 February launched its ambitious Forest Hill City in Centurion, a staggering 72 000 square metre mixed-use commercial development scheduled for opening in April 2014. This new and exciting regional centre will ultimately combine office, retail and residential space in an exceptional location on a major interchange. The precinct is anchored by Forest Hill Mall. With a gross lettable area (GLA) of 72 000 m2 it’s the area’s largest mall, offering the best of South African and international fashion, food and entertainment brands. Forest Hill City is designed for ultimate shopping, working, living and leisure experiences, convenience and modern lifestyles. The architecture is of a contemporary South African flavor, utilizing space, texture, materials, light and style to create an integrated mixed-use development, all fused and perfected to world class standards.

Feature Page 4

BOIDUS FOCUS February 2013

Meet the Boss: Dziki Nganunu: MD of Botswana’s biggest Insurance Company

by HK Mokwete & Kibo Ngowi

‘...As an insurance company, our role is to try to minimise loss. Neither the principal, nor the contractor, nor the consultants nor the insurance company benefit from a loss. So it is in everyone’s interest to minimise losses...’ >>> FROM PAGE 01

WORK HISTORY Managing Director, Marsh February 2004 – March 2005 (1 year 2 months) Senior Business Project Consultant, CNA Insurance 2001 – 2004 (3 years) Head of Engineering, Anglo American - Morupule Colliery February 1997 – December 1999 (2 years 11 months) Engineer, Debswana August 1994 – January 1997 (2 years 6 months)

BF: Tell us briefly about BIC, its history and especially its involvement in the building industry in Botswana?

DN:

BIC was established in 1975 by the BDC and a multinational insurance group called Minets. At that time BIC wrote life insurance and non-life insurance. It used premiums received to develop many commercial and residential properties in Botswana. Due to changes in legislation the company was split into Botswana Life, BIFM and BGIL. All three were listed on the BSE under the banner BIHL. Several shareholding changes occurred over the years and eventually BGIL was renamed BIC and was sold out of the listed BIHL group. Therefore, today, BIC is a dedicated non-life or short-term insurer. It is the largest non-life insurer in Botswana by any number of measures, whether market share, total staff employed, size of balance sheet, number of products, number of branches or cumulative experience of staff. We insure the construction of roads, dams, power stations, mines, commercial buildings, industrial buildings, residential buildings, electrical reticulation systems, pipelines, airports, bridges and almost any other type of construction you can think of.

BF:

What is your impression of the level of activity and/or understanding of aspects of insurance across the building industry in Botswana? a. Why is it important to undertake insurance in building projects and what type of insurance options does BIC have?

DN:

In building projects, the contractor is responsible for all that happens on the construction site, be it accident to the workers, injury to the third party or any damage to property or machinery. The contractor has to bear the pain and complete the project on time. Even the smallest interruption to a building project can cause a significant amount of loss. So it is important for the professional to take out the right cover to protect the business from unpredictable losses. Contractors All Risk: - Covers all the eventualities and risks to the business as well as to the individuals involved.

Plant All Risk:- Covers all the construction plant and machinery on site. Erection All Risks:- Covers industrial plants during erection. Commercial Motor:- Covers vehicles used on site and on the road from a single vehicle to large fleets. Workers Compensation:- Covers employees for injury at work. Public Liability:- In case anything happens to a third party or to third party property. Professional indemnity: - It protects business professionals against claims for damages that they may become legally obligated to pay to a client as a result of an error or omission in the professional work provided to the client.

BF:

Construction projects are prone to delays, defects and other quality issues. How can building clients insure themselves against such?

DN: Insurance cannot prevent losses. What it can do is provide financial compensation in the event of a loss to enable the contractor to get back to work as soon as possible and thus minimise any delay. BIC even has a cover that allows the principal to get financial compensation if there is a delay to the completion of a project by the contractor. This is known as Advanced Loss of Profits.

BF:

Industry professionals such as architects, contractors, engineers and others are usually required to possess professional’s indemnity insurance (PI) while undertaking projects. Can you explain what this is and why it is so important?

DN:

Professionals are susceptible to being charged with professional negligence or a breach of duty by means of an error, an omission or even outright negligence. Professional Indemnity insurance offers financial protection in terms of legal costs and certain other costs in such cases. Litigation, as we know, is expensive and time consuming even if you win the case. With regard to professionals as Architects and Engineers who may be

accused of design errors, construction defects, inaccurate advice, inadequate or insufficient knowledge, professional indemnity insurance gives the professional financial protection.

BF:

What are the challenges you experience in dealing with industry professionals and their Professional indemnity?

DN: Professionals often do not understand why they have to take the cover. As a result they often take the minimum required by the principal. This can leave them woefully unprotected.

BF:

What other challenges do you face as an insurance company, particularly doing business in the construction industry?

DN:

As an insurance company, our role is to try to minimise loss. Neither

the principal, nor the contractor, nor the consultants nor the insurance company benefit from a loss. So it is in everyone’s interest to minimise losses. It is natural that contracting firms, or employees of contracting firms, will want to hurry to finish off their jobs so there will always be an incentive to cut corners in order to meet deadlines. This is when problems occur. Through policy wordings and risk surveys, we try to encourage companies involved in construction to work by the book and minimise the risk of a loss.

BF: The global recession has affected Botswana’s budget and construction industry significantly. How has your industry been affected as a result of the global recession?

DN:

There are certainly fewer construction projects going for tender so our construction business is indeed

down compared to a few years ago. On the other hand, other parts of our business are up and have compensated for the decline in construction insurance.

BF:

What does the future hold for your company as you look for growth?

DN:

We think the future is bright. Mining is doing well and we hope it will continue to do so. On the back of new mining projects, will be construction so even the construction area should do well. We also believe that infrastructure development is critical for any developing country, especially infrastructure that is of economic value. Without good infrastructure, the country’s future is dim. We think it is only a matter of time before the government will allow the private sector to finance and develop infrastructure in Botswana through public private partnerships (PPPs).

BOIDUS FOCUS February 2013

Markets Page 5

As new space has completed, not only in the new CBD but also in Fairgrounds and Finance Park, vacancy rates have increased. However, the impact of the delivery of this new space appears to be manifesting it-

ER OA D

G-West Phase 4 Kgale View

Primary Office Locations

G-West Industrial

CBD

Game City / Kgale View

Fairgrounds

Old Naledi

JS: Our clients seem to have appreciated this first report so I

think we will produce future editions. We are still a small market and there isn’t really a strong case for it to be more than an annual publication at the moment. We’ll probably look at putting something out on other sectors of the market later in the year.

CHAMA MOBUTO

Ext.10

Unviersity of Botswana

Ext.12

Ext.6 Ext.14

Cresta FairLodge grounds Mall

Village Centre

Tlokweng

Village Riverwalk

Fairgrounds

Tlokweng

Showgrounds Boipuso Hall Ditshupo Hall

Finance Park Commerce

Finance Park

Park

Lobatse

Take-up by sector - 2012

Take-up by sub-market

Prime and secondary rents 120 120 100 100

BWP

80 80 60 60 40 40

20 20

Professional

Fairgrounds

Corporate/Manufacturing/Mining

Finance Park

IT&T/Media

Main Mall & Government Enclave

Government

CBD Main Mall & Gov’t Enclave

Parastatal

Fairgrounds

NGO

Finance Park

Other Based on transactions recored by KF over 100 sqm

Prime Secondary

CBD

Prime Secondary

Banking & Finance

Source: Knight Frank

CENTRAL BUSINESS DISTRICT (CBD)

Stadium

Mondior

important as markets become more sophisticated. Major investors are often handling vast sums of money which are not their own they are probably looking after portions of your pension - and like all of us with stake in this market they probably struggle to gather the information to support their investment cases. They want to be able to make informed decisions, and we hope being able to pick up an objective view on the market from the likes of Knight Frank will aid their decision making and sign off process. Will this research be an annual report and what other reports are we likely to see from Knight Frank?

SEGODITSHANE

Ext.7

AT S

Marina

African Mall

Ext.6

No Mathata

NDE LA

Rail Park Mall Station

JS: Having reliable market information becomes increasingly

BF:

DE LA M EL S

RIV E

Gov’t Enclave / Main Mall

Bus Rank

AC H

Gabs West Shopping Centre

Maruapula

Prime Secondary

Why is a market research report important and how can it be useful to a property market and property investors?

Gaborone Game Reserve

Ext.9 Gaborone Golf Ext.5 Sun Course Township UB Ext. Princess Stadium National

Prime

BF:

Lansmore Hotel

G-West Phase 1

Block 9

Main Mall & Government Enclave

CBD

RO AD

Ext.11

We have been planning to put out some research on the market here for sometime. However, as is often the case with such projects it kept getting put on the back-burner. There are no third party data providers in Botswana, so we had to do all the time consuming data gathering ourselves. What really stood out quickly from the data we were analysing, was how well the CBD has done which seems to be against some people’s expectations given the enormous amount of space that has/is coming to the market there, the level of absorption has been rapid since the beginning of 2012 - and 2013 has already got off to a flying start!

High Court

SON

Strong competition for investment grade opportunities has seen further downward pressure on prime yields

OL OL

E DRIVE

NEL

•

NYERER

LOB

Owner-occupier appetite has been resilient, especially from small and medium sized businesses, with sectional title units selling well in all the major office locations despite rising build costs

Block 5

Partial

•

Broadhurst

Middlestar

G-West Phase 2

Molapo Crossing

Gabane

STE RN BYP AS S

The balance of negotiating power is now more even between landlords and tenants. Prime rents settled at P110 per sq m per month though lease terms have become more favourable to occupiers. Demand levels remain strong, though rental growth is likely to be curtailed by further new supply due to come to the market in the next two years

Block 3 Westgate Mall

Metcourt Inn Grand Palm

Stronger than anticipated take-up in the CBD has alleviated fears Gaborone would be saturated by the delivery of new offices in 2012. Concern has now shifted to ageing stock in secondary locations which have already seen substantial rental falls and will continue to struggle to attract tenants

•

Block 6

•

Molepolole

property research in 2000, 2012 initially focusing on the CenGABORONE tral London Office market. OFFICE MARKET Knight Frank My first exposure to African markets was in 2003 when I HIGHLIGHTS produced an in-depth report on the nine countries in subSaharan Africa where Knight Frank has offices. Following the publication of that report I switched my focus from London offices to pan European, African and Global research projects, eventually running Knight Frank’s global research and consultancy service from the UK where we worked on about 150 reports a year on markets from Sydney to Seattle and Singapore to Warsaw.

AT S

JS: I started work in

It was largely the state backed occupiers that boosted office take-up in 2012 with parastatals and government departments accounting for Circa 65% of transactions recorded over the course of the year.

As new space completed in 2012 takeup levels began to pick up. Expan-

LO B

RESEARCH

Please give a background of yourself (including your previous market research experience) and tell us about the research and its key highlights.

MA TAN TE D

BF:

OLD LOBA TSE ROAD

Sophistication of Botswana’s Property Market requires Market Data for its Decision Making Processes - Joe Simpson, Knight Frank

sion, consolidation, new entrants to the market and simply the ability to be able to relocate to modern offices capable of supporting modern business requirements all provided the motivation for office moves. Momentum picked up over the course of the year and although many occupiers are yet to move in, take-up of new offices in the CBD has been strong with a number of the completed schemes now at/ or close to 100% occupancy.

Historically, the primary driver of demand in the Gaborone market has been government. However, austerity measures led to the shelving of a number of office requirements and transactional activity was severely curtailed in 2010 and 2011. As well as a tighter public purse, a combination of a lack of good quality stock and a cautious approach from large private sector occupiers dampened letting activity.

ATS E

>>> FROM PAGE 01

self in secondary grade stock. Tenants have taken the opportunity to move and improve their day to day working environment.

NE W

by Boidus Admin / Source: Knight Frank Botswana

GABORONE OFFICE MARKET Fears of a market oversupply had abated by the end of 2012. The basis of these fears was not purely market driven. There has been aggressive speculative building on the part of developers, but the situation was also forced by the restrictive covenants placed on owners of CBD plots that require development within a set time frame thereby creating an artificial surge in office completions.

Knight Frank 2012 Gaborone Office Report [Extract]

Source: Knight Frank

MAIN MALL/GOV’T ENCLAVE

FAIRGROUNDS

FINANCE PARK

What is essentially now Gaborone’s ‘Old CBD’ has suffered in recent years as a lack of sufficient parking provision, ageing stock and increased competition from other office locations around the capital has pulled tenants away. There is demand for office accommodation in the area, but landlords of secondary buildings will have to consider their longterm strategies and work out their target market.

Although there has been some movement away from the Fairgrounds, principally due to expansion by occupiers, occupancy rates have been resilient and new developments in the market have let well. The most prominent scheme being BDC’s stunning looking Fairscape Precinct development which is already becoming a visible landmark as it emerges above the generally low rise skyline.

Rents in Finance Park fell significantly over the course of 2011. In 2012 a number of landlords revised their approach, cutting asking rents in order to secure tenants and offering flexible lease terms rather than see their properties sit empty, as the market appeared deluged by new supply.

Projected CBD office stock 160000 (000 sqm) 140 140000 120 120000 100 100000 80 80000

Half of all office take-up recorded 60 across Gaborone in 2012 took 60000 place in the New CBD and over the 40 40000 course of 2013 we should start to see the area really come to life. 20 Many of the supporting facilities are 20000 now operational, with the food and 00 2011 2012 beverage outlets in the piazza of the Masa Centre already proving a Source: Knight Frank draw for the lunchtime business and social clientele. Knight Frank expects the New CBD to account for an even greater portion of take-up in 2013.

2013

Knight Frank believes rents have now bottomed out in Finance Park.

Buildings Page 6

BOIDUS FOCUS February 2013

Phase One of the Renovation of Poso House Complete by Boidus Admin

ered parking (63 Bays) for the duration of the project. With plans for phase in process, we have extended the lease for the temporary parking to the end of October 2014. 4a. FUTURE PLANS / SOLUTIONS FOR PERMANENT PARKING PROVISION

‘Post Man’ giving a keynote address at the BotswanaPost media event held January 2013.

Boidus talked to Booster Nkomba, Head of Property and Administration, Botswana Post about the renewed face of the ‘Old CBD’. 1. RENOVATION TIMELINES (including phases) The project commenced on the 20th June 2011 and was scheduled for completion 23rd July 2012. The project intended to address the following issues; a. effects of wear n tear b. office ergonomics c. introduction of open plan offices (space optimisation realising 5 floors for rental to open market) d. redundancy power e. Increase Post office space f. Museum to promote Philately product 2. BUDGET OF RENOVATION FOR 1ST PHASE The project was awarded to BJ Builders at a total construction cost of P51, 692,624.07 for 57 weeks contract duration. The initial scope included a 3 level parkade which has since been

suspended to explore optimisation of the land value. The suspension further presented an opportunity to ensure the new development does not only harmonize our development with urban development standards, but most importantly, to remain relevant and be able to compete with upcoming A grade developments. 3. SPACE ALLOCATION IN NEW RENOVATED BUILDING (e.g. ground floor uses and other floors) There are a total of 11 floors all of which were occupied by Head Office staff. Through the newly adopted open plan office concept the same Head Office complement is now housed in a total of six floors. The ground floor houses a Post Office and a Philately museum giving a total of 7 floors for BotswanaPost and five excess floors available for rental to the open market. 4. PARKING SOLUTIONS (including temporary arrangements with Council for parking across the road) We secured an open space across the road where we provided secure cov-

The second phase of the project will provide a mixed use development for the much needed Social amenities (e.g. shops, coffee shops & restaurants, saloon) office space and commercial parking in the Government enclave. The idea is to bring life to the Government enclave beyond the normal working hours by linking the existing tower to the new development for easy accessibility from both the main and the service road.

Completed exterior of Poso House having undergone renovations.

5. FUTURE PHASES OF THE POSO HOUSE AND PLANS TO RE-DEVELOP MORE BOTSWANA POST SITES BotswanaPost has embarked on a journey to excellence through the 2011 – 2014 Corporate Strategy. The target is to be a P500 million revenue earner at a 60% cost to income ratio by 2014. These ambitious target calls for diversification of revenue streams and property were identified as a sustainable revenue stream given our large foot print with the majority of properties located in prime and strategic locations. An objective was subsequently incorporated into the new Corporate strategy “To unlock revenue potential in the property portfolio” culminating in the development of a Property Strategy. The property strategy will inform amongst others key things; risk mitigation, financing of the developments and the preferred part-

Poso House under construction during renovation phase one.

nership model. Each site will be subjected to a Due Diligence exercise to ensure space optimisation for realisation of maximum returns.

Completed image of BotswanaPost Poso House main public entrance

LANDSCAPE CORNER

VERMICULTURE by Wada Supang

Organic gardening is one that is free of synthetic chemicals common problems like pests, weeds and diseases are avoided or resolved using natural resources. On this column I will teach you about the role earthworms play in our gardens or environment. Vermiculture or worm farming is a relatively new concept in Botswana a lot of gardeners are still not aware of the role earthworms play in our gardens. What are Earthworms? The common garden variety are the brownish and generally belong to the amythas species, . There are believed to be over 3500 species of earth worms, varying in length from which less than 1 centimetre to about 3 metres. One of the world’s largest earthworms, megascolides australis, which is found in Australia, has an average length exceeding 1 metre. GARDEN EARTH WORMS When we take a look at nature and examine the role the earthworm plays in creating a healthy soil we realise that when leaves fall, roots die and animals deposit droppings,

earth worms move in and consume this organic matter. They also ingest soil particles and tiny stone in their gizzards turning it into solid and liquid fertilizer in the form of worm casts or worm tea while simultaneously aerating the soil and helping to neutralize soil 100PH levels. While the digestion process extracts what the worms need to sustain themselves it also impregnates the remaining matter with a host of microbes that originate from within the digestive system. This humus sup-

den where some leaves are allowed to mulch under tree than in pristine beds.

• grace the rest of your garden with lush, healthy plants.

It is advisable to avoid tilling beds at night if you want to encourage earthworm activity the earthworm tends to live in deep burrows during the day, but comes to the surface to forage at night. Disturbing the soil surface at this time may chase them away.

Add to these our tendency to burn or send to the rubbish dump the matter that we should recycle through composting and we end up with soil that is lacking in microbial life and which is increasingly infertile. While we were ignorant of the effects of these practices we could be forgiven for following them. Now that we know more about soil and its ecology

plies macro and micro nutrients and a multitude of microbes which act as stimulants to plant growth and flowering. They encourage the soil to release locked in nutrients and they inhibit some harmful plant pathogens.

A wormery is an opportunity to; • help counter global warming by reducing the waste flow to land fill sites. • save on fertilizer costs • restore the health of your garden soil • grow your own organic, nutritious vegetables and herbs and

To keep the earthworm in your garden happy, you can do the following; keep a small organic compost heap in one corner of the garden, which you can feed with kitchen left over’s unfortunately the compost heap will have a slightly strong odour and will attract more insects than a closed worm farm, but your wild worms will get to work immediately. Do not over-neaten your beds Earth worms feed on organic waste like fallen leaves, so they will have more to eat in a gar-

THE BENEFITS OF VERMICULTURE

we need to change the way we do things. Remember to save water at all times. Happy gardening.. Email swanscapes@yahoo.com for more information.

BOIDUS FOCUS February 2013

Buildings Page 7

BUILDING SHOWCASE: The Maun Experience

by Boidus Admin / Sources: (The Village Church) The Village Church facebook, (BOCODOL Centre) Courtesy of Agora Architects

THE VILLAGE CHURCH, designed by Doug Sluiter

The centreâ&#x20AC;&#x2122;s building which overlooks the tarred road to Matlapana is 4,000 square meters in size. The facility comprises of an indoor basketball court, gym and weight room, restaurants, recording and mega studio, Christian bookstore, Movie Theater and space for church functions. This sophisticated green building, which uses recycled water to cool the walls instead of an electricity

powered cooling system, was funded by the village church and US-based Prick Family foundation. He said the centre was built for utilisation by Ngamiland community. However, some of the spaces in it like conference rooms, office spaces and the restaurant will be leased out for the facility to financially sustain itself. Lackey divulged that a brand food outlet franchise has shown interest in operating from their restaurant space.

BOCODOL/DNFE REGIONAL EDUCATION CENTRE, designed by Agora Architects, Maun

Bocodol distant learning facility with 10,000 m2 educational and administrative accommodation, conference facilities, hotel, restaurant and 18 staff houses in Disaneng ward, Maun

Boidus Feature Page 8

BOIDUS FOCUS February 2013

Budget Speech Highlights: How the Construction Industry fared

by H. Killion Mokwete >>> FROM PAGE 01

2013/14 BUDGET SPEECH HIGHLIGHTS

PREVIOUS BUDGETS - 2009. 2010, 2011

SITUATION ON THE GROUND

2009 Budget Speech:…during NDP 9, availability of serviced land has been cited as a major constraint in areas such as tourism, residential, as well as commercial development…..In order to deal with these constraints, various strategies to make land readily available for development will be employed. These strategies include acquisition of freehold farms and creation of a land bank starting next financial year.

SHHA still does not provide for the bulk majority of income bracket above P3K. A strategic approach needed to address shortage of affordable housing and this includes availability of funding and also costs of services and building materials. • Land servicing still not completed • No available information on allocation of Lobtase or Gerald Plots • Effectiveness of BHC in managing and delivering SHHA Housing still to be tested.

LAND AVAILABILITY AND HOUSING 27…Through a low income housing programme, loans repayable over 20 years with zero interest have been channelled into a revolving fund under the Self Help Housing Agency. The fund now stands at P133 million. I wish to remind the beneficiaries that for the revolving fund to be able to finance additional loans there must be timely repayment of outstanding loans. To increase housing delivery, in April 2012, Government also established Botswana Housing Corporation as the Single Housing Authority for the purpose of implementing a public housing programme.

2010/11 Budget Speech is “Transforming our Economy after the Crisis: 2010 and Beyond”…The 2009 Budget Speech highlighted shortage of serviced land and speedy allocation of land as major constraints to investment in the economy. To address these challenges, land servicing is ongoing with a total of 605 plots serviced in Kasane since April 2009. A further 9 763 plots are currently being serviced in Gaborone (Tsholofelo area), Jwaneng (Unit 8), Lobatse (Airstrip plantation) and Francistown (Gerald Estates). The land servicing programme is also being extended to rural centres with the designs currently ongoing for Metsimotlhabe (Block 4) and Palapye (Extension 11). Land servicing in all these areas is expected to be completed in 2010.

MEGA PROJECTS 49…Government would undertake mega projects that included Kazungula Bridge, Integrated Transport Project, Morupule B project and the Tonota-Francistown dual carriage way road project. In this connection, I am happy to indicate that the design of the Kazungula Bridge has been completed and a loan has been secured from the Japanese International Cooperation Agency as Botswana’s contribution towards the construction of the bridge. On the integrated transport project, the Draft National Integrated Transport Policy was completed in June 2012. The policy is focused on enhancing and integrating infrastructural development within the road (including bridges), air, and rail transport sub-sectors that are critical for sustainable growth of other sectors of the economy. The other major components are improvements of traffic lights in Gaborone through establishment of a Centralised Traffic Command Centre and construction of three traffic junctions in the city.

2010/11 Budget Speech is “Transforming our Economy after the Crisis: 2010 and Beyond”. 33. While the policy on citizen economic empowerment is still being prepared, there are ongoing efforts such as provision of student loan/grants for those qualifying for tertiary level education; reserving certain categories of business to citizens and the local preference scheme. Citizen economic empowerment is also promoted through the implementation of mega projects in the country. The process, which enables citizen contractors to participate in mega projects, entails unbundling of large projects into smaller components that are more manageable by citizen contractors. Examples of these include; Dikgatlhong and Lotsane Dams, expansion of Morupule Power Station, Botswana International University of Science and Technology, and the four Senior Secondary Schools in Nata, Shakawe, Mogoditshane and Mmadinare. Where projects are awarded to non-citizen contractors, such contractors are encouraged to outsource or sub-contract some activities to smaller citizen companies. Capacity building of the citizen artisans is also ongoing. This is expected to enable them to find employment as well as assist them to meaningfully participate in the projects once employment is secured.

Lake in unbundling of projects still means the budget continues to support foreign based companies which exclusively qualify for implementation of these mega projects. Capacity building should be made a fundamental part of undertaking these projects. After all the foreign companies move on, our Local industry will be left unskilled and inexperienced to take the economy forward. Key failures of the so called include: • Out of reach of most local contractors. • Lack of local empowerment and capacity building • Contribute less in buying local products or promoting local building skills and techniques

BUILDING MAINTENANCE 61…The Ministry of Education and Skills Development is allocated the third largest share of P1.18 billion (10.59 percent). The Secondary Schools project constitutes the largest share of the Ministry’s budget, at P997 million which is approximately 82 percent of the total Ministry development budget to cover staff housing, expansion of Junior Secondary Schools and refurbishment of Junior and Senior Secondary Schools, construction of computer laboratories as well as provision of electricity in schools throughout the country.

2011 Budget Speech …To ensure that the existing infrastructure is adequately maintained and that Ministries exercise diligence in prioritising their needs between recurrent and new development expenditures, budgeting for the maintenance of facilities has now been decentralised to Ministries. To emphasise Government‟s commitment to facilities maintenance, for the next financial year alone P526 million has been allocated for major maintenance with a substantial part of this amount earmarked for reconstruction of dilapidated infrastructure like schools and roads. In addition, P200 million will be devoted to development of sewerage systems countrywide.

63…Mr Speaker, as I mentioned in the 2012 Budget Speech, maintenance and repair of existing Government assets is a priority, and continues to be. Hence, for the 2013/14 budget, about P1.77 billion has been allocated to maintenance and refurbishment of: Government buildings (P798 million), equipment (P548 million), roads (P388 million) and others (P32 million).

VI 2011/12 BUDGET PROPOSALS 60….Cabinet, which defined the budget process and priority areas for the 2011/12 Budget. The priority areas include: completion of ongoing projects; poverty eradication programmes; maintenance and efficient operation of existing public infrastructure, especially health, education and sewerage systems. The objective is to follow an expenditure path that is consistent with the commitment to reach a balanced budget by 2012/13, which was made during the 2010 Budget Speech.

The Maintenance budget has been pronounced since the projects freeze of 2009 and has always lacked fundamental underlying overreaching POLICY guidelines on government aims and resultant intent. The policy guideline on government maintenance strategy could for example focus on: • Energy saving strategies of upgrading of old buildings. This could call on buildings to be measured for their energy consumption • Green economy can be kick started by the upgrading of old government buildings to today’s world sustainable agendas. As things are the current maintenance lacks any bases beyond the physical fixing of badly done works.

OTHER ITEMS IN THE BUDGET 41…To instil fiscal discipline in public spending, the Public Procurement and Asset Disposal Board (PPADB) is implementing two projects, namely the Integrated Procurement Management System, and the Quality Management System. These systems will lead to improvement in procurement and set standards and processes leading to systematic flow of information, and reduction of costs. Since August 2012, the PPADB has continued to register all works, supplies and service providers, creating a database which will ultimately assist Government to deal with good contractors only. To further improve service delivery, the Board has embarked on training procuring entities at both central and local Government levels, started monitoring the compliance to procurement plans, and undertaken site visits to projects under implementation.

Procurement challenges especial on public projects will remain so until the industry is fully professionalized. To date, only Engineers and Real Estate have professionalized while the rest are still professionalizing at a snail pace. Ultimately issues of delivery come down to a few critical issues including: • Accountability of Ministries to the PUBLIC as the client

WHAT OPPORTUNITIES CAN YOUNG PEOPLE EXPLOIT FROM THE BUDGET PROPOSAL? 1. P798 million: Maintenance and re-

2. P997 million: ‘staff housing, expansion of

Essential maintenance of old building structures should present opportunities for artisans and trades from vocational training centres and brigades: • Carpentry trades • Painting • Mechanical and Electrical artisans • Roofing specialists * Register with PPADB

In Demand Services-Facilities Management Expertise: Managing of bulk construction projects is managed through ‘Facilities Manager’ who oversees the timely and quality delivery of given projects in bulk. Facilities management will eventually be the favoured option of procuring the maintenance projects.

furbishment of: Government buildings

Junior Secondary Schools and refurbishment of Junior and Senior Secondary Schools, construction of computer laboratories’

3. Building energy use: Most government build-

ings are known to be energy guzzlers. This could present opportunities for making these old buildings efficient in their use of energy through clean technologies or passive energy strategies. • Supply of energy saving products and solutions. • Water harvesting and green technologies for upgrading old buildings. • Measuring and certification of building energy use • Providing maintenance manuals for government buildings.

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DIARY/EVENTS

Northern Region lesedi@boccim.co.bw andy@boccim.co.bw

List/Find the latest Tender and Jobs In Construction Stay updated with current Industry Events and activities

CARTOONS

BOCCIM BUDGET SESSIONS NORTHERN REGION Maun Date: 11th Feb 2013 Time: 10:00am Venue: Maun Lodge Kasane Date: 12th Feb 2013 Time: 10:00am Venue: Mowana Lodge

CONTACTS

TENDERS JOBS EVENTS

Welcome | Diary/Events | Cartoons | Products| February 2013

Southern Region chanda@boccim.co.bw Phingie@boccim.co.bw

SOUTHERN REGION Ghanzi Date: 12th Feb 2013 Time: 18:30pm Venue: Kalahari Arms Hotel Tsabong Date: 14th Feb 2013 Time: 18:30pm Venue: Dikukama Hotel

electricaldistributors

Source: architecturelover.com / Cartoon by Larry Griffin

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We offer the following services: • Lighting Layouts & Designs • Technical Expertise • Lighting Consulting

BOIDUS FOCUS Classifieds February 2013 | Buildings Insurance Guide | DIY

BUILDINGS INSURANCE – what does a good policy look like? [Source: moneyadviceservice.co.uk]

‘Must have’ features

‘Should have’ features

‘Could have’ features

Things to watch out for

Sum insured – this must to be enough money to clear the site and rebuild your home if it was totally destroyed by fire or flood, for example.

Glass & sanitaryware breakage – cover for replacing windows, glass in doors, toilets and washbasins, if they are broken accidentally.

Accidental damage cover - covers you against the cost of any accidents that damage your home.

Buildings excess – an amount of money you have to pay towards any claim.

Legal expenses cover – cover for your personal legal expenses if you have problems such as employment disputes, bodily injury claims, etc.

Escape of water excess – if your house is damaged by leaking water or baths and sinks overflowing, you might have to pay a higher excess towards the claim than the normal excess.

Index-linked sum insured – the cost of rebuilding houses rises each year with inflation. Protecting, or index-linking your sum insured means you won’t be left underinsured.

Alternative accommodation – covers the cost of staying somewhere else (like a hotel or rented house) while your house is being repaired if you can’t live in it following major damage like a fire or flood. Public liability – covers you for the costs of being sued if anyone dies or is injured, or their property is damaged, because of something which happens at your home.

Underground services – cover for the underground pipes and cables bringing water, gas and electricity to your home and sewage away from your home. Blockage of sewer pipe – cover for the cost of clearing a blockage in a sewer pipe on your property.

Burst pipes – cover for the cost of repairing burst pipes (this is not the same as cover for damage by the leaking water). Tracing and accessing a leak – help with the cost of finding a leak and fixing it if it happens in your house, or underground.

Empty property – how long you can leave your home unoccupied (such as going away on a long holiday or for work) before your insurer restricts or removes cover for your buildings. Emergency helpline – an emergency number you can ring in the event of damage that needs to be fixed as quickly as possible.

Loss or theft of keys cover – if you lose your keys or have them stolen your insurer will pay to replace all the locks in your home.

Legal helpline service – a helpline you can call for advice if you have a personal legal problem.

Accidental damage excess – if you have accidental damage cover this is an extra excess you have to pay towards these sorts of claims.

Repairs guarantee – any repairs to your buildings will be guaranteed.

No claims discount – a discount off your annual premium if you haven’t made any claims in recent years.

Disclaimer: Boidus Media does not provide buildings insurance adversary services. Information given here is for reference purposes only. Boidus Media nor its advertisers will not be liable for any miss-application of information contained here.

DIY (DO-IT-YOURSELF) - How to Build A Rock-Solid Concrete Planter [Source: popularmechanics.com]

Concrete Planter

1. Form and Cast Screw together the inner and outer forms. Coat the exterior of the inner form with glue, and cover the surface with aluminum foil. Do the same for the inside face of the outer form. Spray cooking oil on the foil surfaces.

With basic carpentry tools, a wheelbarrow, and some tinted concrete, you can build this sturdy home for houseplants. See these three simple steps to see how you can Do-It-Yourself.

Concrete Form Plans

Place the inner form, topdown, on the mounting board. Screw through the bottom of the board into the form’s cross supports. Place the outer form over the inner one, and use angle brackets to secure the outer form to the mounting board.

Pour the concrete into the form. Repeatedly plunge a scrap-wood stick into the concrete to consolidate it. Overfill the form, then run an oscillating sander (without sandpaper) over the entire form to vibrate out voids. Strike off excess concrete. Form drain holes by pushing two dowels coated with petroleum jelly through the concrete.

2. Strip the Outer Form

After letting the concrete set for 18 hours, unscrew and disassemble the outer form. Grab and twist out the dowels with pliers.

3. Pull the Inner Form

Remove the screws driven through the bottom of the mounting board and into the inner form. Tip the planter over and pull out the inner form). After the concrete has cured for 24 hours, apply a liberal coat of clear masonry sealer to the entire planter. Once the sealer cures, you're ready to plant!

BOIDUS FOCUS Classifieds

Commercial Property | February 2013

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Baalakani Nlumbile - General Manager - Property Valuations & Investment Analysis. We are pleased to announce the launch of our Valuation and Investment Analysis Department headed up by Baalakani Nlumbile. Baalakani is a registered member of REAC (Real Estate Council of Botswana) and a sitting Committee Member of the Real Estate Institute of Botswana (REIB). He joins us from BDC where he has been since 2005. He holds a Bachelor of Science Degree with honours in Estate Management from Birmingham City University (UK) and a Master of Science Degree with merit in Finance from Bradford University (UK), School of Management. Contact Baalakani @ 71 393 311, 39 39 372 or valuations@seeff.co.bw

BOIDUS FOCUS Classifieds February 2013 | Products

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BOIDUS FOCUS February 2013

Boidus Feature Page 13

Budget Speech Highlights: Reaction from Economist, Industry Professionals by Kibo Ngowi

>>> FROM PAGE 01

The 2013/14 Budget Speech Clear Message: ‘Construction Industry Should Find Alternative Project Drivers’ - Economist Keith Jefferies source funds it’s always best to spend immediately because costs related to construction grow exponentially so you need to do them while you can because if you postpone them for another year they become more costly. Of course a drop was bound to happen at some point but that is the nature of the business.”

• The days of big government backed construction projects in Botswana are over • P3 billion Pension Fund firms should be encouraged to invest in local project developments The Botswana government’s treatment of the construction industry in recent times has left many local industry players voicing concern that government is presiding over the collapse of the sector. In the wake of this year’s Budget Speech Boidus Focus spoke to two economists to get their perspective on what the government budget means for Construction Industry (CI). A decline in spending on infrastructure projects in Botswana was inevitable says Economist Keith Jefferies because the government blundered in producing too many big projects in too brief a space of time in the past. “In hindsight I think that it was a mistake, on government’s part, to concentrate so much construction spending in such a short period of time because it was inevitable that once those projects were finished there was going to be a steep decline in the amount of construction spending” says Jefferies. He insists that the drop in government construction spending shouldn’t be seen as a consequence of the state’s increasing focus on budget balancing austerity measures but rather as the unavoidable outcome of excessive infrastructure development being done in a limited space of time rather than being spread out. Furthermore, Jefferies suggests that the failures government has had with project management evident in cost overruns, project delays and substandard quality can partly be attributed to this cramming of big projects. “The contractor will only do what he can get away with” says Jefferies so it’s up to the client, in this case government, to monitor projects and make sure things are done correctly. “It’s a mistake to think that if you want to do them all at once they’re all going to happen at once” Jefferies goes on to say, “Partly because these big projects are all happening at once you get delays with all sorts of things like capacity, material and skills so projects are rushed and the government’s ability to project manage is clearly overstretched.” An economic analyst who works closely with the Ministry of Finance and Development Planning (MFDP) but who spoke on condition of anonymity has a different view of the development of the country’s infrastructure. “Spreading projects over a longer period of time is an approach which ignores market trends” says the analyst, “When events happen around the world and we are able to

The analyst recommends that the domestic construction industry face up to the reality that government is doing what it can within the global economic challenges it is grappling with and find alternatives. “My advice to the construction industry would be to look for other players. We have pension funds coming home in excess of P3 billion according to a report released last year and this is money that is lying idle. So this is the moment for those who have the capacity in the private sector to persuade fund managers to get involved in construction. The problem with all companies in Botswana from the lowest sector to the highest is that everyone is focused on government tendering. We lack the proactive attitude to look for other sources.” Regarding the Botswana government’s constricting austerity measures Jefferies highlights that there are countries, especially in Europe, with far stricter austerity measures than Botswana and points out that the government actually increased spending during the global financial crisis in order to keep the economy alive. “The only way the Botswana government managed to increase spending during the crisis was by running very big budget deficits, borrowing and drawing down on its savings. Now is the time to actually try and restore those financial buffers so if there’s another crisis we’ve got resources to keep the economy going.” The analyst concedes that there are fundamental problems in the way the government budget is handled. The most glaring of which is the fact that while the budget speech is released in February the government’s financial year only begins in April. This means that the MFPD has to prepare the budget in the third quarter of their financial year meaning that they can’t assess whether the goals set out by the previous budget have even been reached before they have to draw up a new one. Another problem is that tendering for mega projects takes 120 working days meaning that there is always a strong chance that the construction budget will be carried over to the following year. Jefferies recommendation to government on how to handle the construction industry is based on two things: schedule large projects over a more manageable period of time and shift the cost focus from getting the cheapest option to getting the best value for money. He does however warn that, apart from a few exceptions, the days of big construction projects in Botswana are over. The analyst concludes by warning that the greatest government objective over time is to reduce spending. Government never has any desire to increase spending. The goal is always to reduce spending while meeting the social welfare needs of the country’s citizens so it’s up to players in the private sector to find alternative avenues for growth.

BOCCIM President on Government Budget - Alex Monchusi Boidus Focus spoke to Botswana Confederation of Commerce Industry & Manpower (BOCCIM) President Alex Monchusi to gain his perspective on the recently revealed government budget and what it means for the construction industry. “I would say that we had hoped for better but government warned us that the economic outlook remained gloomy so we were not entirely surprised” says Monchusi when quizzed on whether his organisation, widely regarded as the voice of the private sector, is satisfied with the government budget. However Monchusi is still hopeful that government can respond to the cries of a collapsing domestic construction industry. Of course in his position he has to remain hopeful. He emphasises that there are two important things that need to be done for this year’s budget to have any meaningful impact on the industry: • Unbundling of projects for the benefit of local construction companies and • A sincere effort to ensure the projects get off the ground this year instead of being carried over to the following year as has been the case with infrastructure budget allocations in the past. Unbundling of mega projects for the benefit of local companies, none of whom have the capacity to take on projects of such large magnitude and are thus repeatedly marginalised in favour of foreign multinationals, is an issue for which BOCCIM has long been fighting. “Unbundling is a proposal that we have long made and has indeed been embraced by the different government departments” says Monchusi adding that what is needed is for BOCCIM to liaise with the individual government departments to ensure the process can begin with projects that fall under the current budget allocations. “Of course we are worried that the policy is taking long to implement but there is an opportunity there to spread the work.” BOCCIM approached government to provide a bailout package for the construction industry as far back as 2011 and now Monchusi says that government has agreed to the bailout in principle but instead of cash they will work the package around the budget allocations. “We can’t expect a bailout of cash to be spent on things that have not been planned when the government has clearly said there is no money” stresses Monchusi “but when you look at the budget allocations that has been made to construction it gives one hope that some amount of revival of the construction industry can be achieved.” Monchusi does concede that a sense of optimism isn’t the only thing the current government budget inspires in him saying, “Given that there is just not enough money to meet all our wishes and desires, I would have hoped more money would have been put into ICT infrastructure development, particularly government.” Monchusi explains that he had hoped to hear of plans for tax returns, license and payment renewals to be done online because BOCCIM members spend a considerable amount of time on long queues which wastes their resources and harms business. He goes on to say that a fully developed ICT infrastructure would be very empowering for small and medium enterprises, especially those located in remote areas and for this reason BOCCIM will continue to lobby for ICT infrastructure development. As a final thought on the budget Monchusi expands the conversation beyond the construction sector and to the economy as a whole warning that mineral revenues have declined in the recent past and that government’s other major source of revenue, customs, is also in danger of declining with the impending liberalisation of regional trade. Meanwhile tax stands at a relatively low 14% share of total revenue. “In our view, as BOCCIM, there is an opportunity for government to increase its tax revenue stream through growing the private sector through privatisation and outsourcing – The busier and more prosperous the private sector the greater the tax revenue. Government has already expressed its desire to expand the private sector and downsize the public sector. The dwindling revenue stream suggests that we need to do that sooner rather than later.”

Boidus Feature Page 14

BOIDUS FOCUS February 2013

Budget Speech Highlights: Reaction from Economist, Industry Professionals by Kibo Ngowi & HK Mokwete >>> FROM PAGE 01

Tshipidi Badiri Builders Association (TBBA) President Chris Gofhamodimo Reviews the 2013/14 Budget with Boidus Focus BF: Apart from the refurbishment of schools which is the

only new thing, the maintenance and refurbishment budget has been ongoing for the last three budget years. What is your view on the effectiveness, impact and management of the maintenance and refurbishment budget thus far?

CG: Poor project planning and implementation has

always been the weakest link of development budgets and if we do not see some drastic changes in the way government departments/ministries handle their businesses, then theses budgets will always sound like broken records.

BF: What is your overall view of this year’s budget speech against previous budgets?

CG: Someone said “same wine just different bottle”

and I say same chibuku different cartoon; only that wine gets better with time! The development budget is only P1billion more than the previous one and I don’t see that making much difference as we did not benefit much on the previous one.

BF: What direct effect do you see this budget having on your industry sector?

CG: If the allocated projects are implemented and

the budget spent, then we will see some action in the industry; jobs being created and the industry breathing a slight sigh of relief.

BF: The largest part of the budget has been allotted

to mega infrastructure projects (dams, bridges etc.). In the past there have been discussions between BOCCIM and HLCC to have these projects unbundled. In view of this year’s budget speech what steps do you feel should be taken to ensure that these projects are unbundled for the benefit of the domestic construction industry?

CG: The only step that can be taken is a commit-

ment from Government to implement the unbundling of projects. This ties up with other policies like Citizen Empowerment and EDD. We have already made some recommendations to MIST on how they can unbundle mega projects and now the ball is in their court.

BF: The budget noted that project cost overruns,

substandard quality and delay of completion have been the biggest failures of project delivery. What is your

industry sector doing to alleviate these concerns?

CG: The Government has admitted in the speech

that project implementation is still a challenge here; planning, implementation and project management are the key factors to a successful project. They should start working on the initiatives they have put in place to alleviate this problem, and the industry should also up their game to ensure they deliver in accordance.

BF: What would you have hoped would be included in this year’s budget speech that wasn’t?

CG: Vigorous and bold resuscitation of the Construction industry.

BF: BOCCIM, after being approached by industry pro-

fessionals, has been trying for the last two years to get a bailout fund for the construction industry. Has this year’s budget reflected that? What has been and will be the impact of the lack of a bailout fund for the industry?

CG: There is neither commitment nor interest from

government to revive the industry and without a vibrant construction industry the results could be catastrophic – joblessness and poor quality lives. Tshipidi Badiri Builders Association (TBBA) was established and registered as an association in 1983 making it the oldest association that has been representing and protecting the interests of the Citizen Contractors (CC), as well as promoting the betterment of the Construction Industry (CI) in Botswana.

BOIDUS FOCUS February 2013

Education Page 15

UB Architecture Students Establish Association by Kibo Ngowi

UB Architecture Students at Day 1 assembly, January 2013

A group of students in the University of Botswana’s architecture department have established the University of Botswana Architecture Students Association. “Our aim is to bridge the gap between students and lecturers by creating an environment in which students are comfortable to approach their lecturers to discuss issues that affect their education and the profession of architecture” says Chairperson Gomotsang Gaoalafe. Though the organisation is still in its formative stages the ten member strong founding committee comprised of third year UB architecture students is clear on their objectives for the year ahead. The first is to begin

organising forums at which students from all years in the department can lead discussions on issues related to architecture that they feel strongly about, whether those issues are in the context of the school or in the community at large. Also on the agenda is to produce a publication which will showcase architecture students’ work. “We really want to get our work out there so we can show the public what we’re doing here” says Vice Chairperson Enoch Motswetla. The genesis of the organisation came about through an annual event that has become a rite of passage in the department called Day 1. It’s an occasion where freshmen are introduced

to the course and oriented on what to expect. The event was originally coordinated by the teaching staff of the department but last year it was handed over to senior students and the momentum that came out of successfully organising that event led to the creation of the association. “There had been talk of starting an association before but the wings grew out of that event” says Motswetla. Motswetla goes on to say that he and his fellow founding committee members are inspired by the example of architecture student associations in other parts of the world that have grown to not only improve their departments but their respective institutions as a whole. The Association is collaborating with the University of Botswana Town & Planning Society (UBTPS) to gain guidance from the established body on how they should proceed. As to the question of how the association will be kept alive after the founding committee members graduate Gaoalafe insists that they are eager to involve students from throughout the department and encourage them to take ownership of it. Public Relations Officer Mbaki Abel points to the example of another event on the architecture department calendar which has become a tradition. “At the end of every academic year the final year students exhibit their final projects and this is something that was started long before we came to the department but which still continues to this day so we’re confident that this initiative can live on after we leave” says Abel.

INTERNATIONAL STUDENTS

Architecture Student Associations Worldwide

by H. Killion Mokwete

The Architecture Students Network The Architecture Students Network (TheASN) will be an independent network of student representatives from schools of architecture within the United Kingdom. The aims of the network will be to work to support and promote architecture student events, harness student opinion, and engage with other established, relevant educational organisations both nationally and internationally.

Architectural Association School of Architecture (aaschool.ac.uk)

We work with The Standing Conference of Heads of Schools of Architecture (SCHOSA) in raising student issues and sit on the RIBA Architects for Change Committee promoting Equality and Diversity in the profession.

American Institute of Architecture Students The American Institute of Architecture Students (AIAS) is an independent, nonprofit, student-run organization dedicated to providing unmatched programs, information, and resources on issues critical to architectural education. The mission of the AIAS is to promote excellence in architectural education, training, and practice; to foster an appreciation of architecture and related disciplines; to enrich communities in a spirit of collaboration; and to organize students and combine their efforts to advance the art and science of architecture.

UB Architecture Students at Day 1 assembly, January 2013

The mission of the AIAS is: • To promote excellence in architecture education, training and practice. • To foster an appreciation of architecture and related disciplines. • To enrich communities in a spirit of collaboration. • To organize students and combine their efforts to advance the art and science of architecture. We serve as the sole student voice in the decision making process of such organizations as The American Institute of Architects (AIA), Association of Collegiate Schools of Architecture (ACSA), and National Architectural Accrediting Board (NAAB). Founding members of UB Architecture Student Association (clockwise from top left): Enoch Motswetla, Kago Manyake, Gomotsang Gaoalafe, Katlego Moatshe, Tariro Ncube, Balebile Maedza, Kaone Keboneilwe, Mbaki Abel, Kealeboga Chideka, Segofalang Modisenyane

Property / Financing Page 16

BOIDUS FOCUS February 2013

Alternative Construction Methods Urgently Needed by Jan Wareus, Architect/Town Planner

An interesting American professor in Ecological Economies (Herman Daly) wrote recently – “Upon having accumulated a lifetime of knowledge we all promptly die” and “successive generations repeat earlier mistakes”.. Let me oppose this with another column for Boidus and the development professionals. After a lifetime as a town planner, with all usual extrapolations of trends into the future, I’ve found that the crux of the matter is (and has always been) a fair discussion of the future as we can see it now. So much of the future has been defined by choices already made and opportunities long since foregone – not to talk about the stupid 25 year horizon of our development plans, based on already made choices. Facing a future with “less abundance” of finance and energy needs more than a simple Monopoly board and the few choices the playing cards indicate. We are not in times of self-full filling prophesies of ever growing GDP any longer, a fact you probably realized already. We are now in times when cost of manufacturing and energy needed must be seriously taken into account as well as the carbon footprint the construction industry is creating. Although the industry and many in the development professions (incl. real estate) seemingly treat this as a taboo subject, we have no other choice. My intention is to put some attention to building materials that are more “medium tech” than the old fashioned “low tech” technique in use at the moment. I’ll do so but first some words about the impassible construction methods we are currently (and traditionally) using and the consequences of that. Let us take a look at a UK paper (from Google) under the headings they use, starting with Climate Change - Building use in the UK contributes about 50%of the UK’s CO2 emissions and construction contributes another 7% (figures from 2004). The main base performance criteria for energy efficient buildings all concern the thermal performance of the building shell where most of the CO2 gains can be made. Waste - The waste going to landfills from the construction industry in 2004 was about 100 million tons. This is more than 3 times the amount of domestic waste collection (28 million tons) and this is equivalent to one house being buried in the ground for every 3 built…. and the calculations do not take into account an extra 25% energy for waste. These are figures for 2004 in the UK. But looking around in the un-built areas of Gaborone and the way we are knocking down, actually crushing, so called illegal buildings, I’m sure we are close to the UK figures (if turned into percentage). This doesn’t augur well regarding the coming re-development of older parts in our City. The report goes on highlighting “Resource Use” and points out that a large

proportion of construction materials are imported there, as here. And transportation of building materials over long distances is not only expensive (in the future, maybe unsustainable) as well as increasing the CO2 transmissions. The report ends with a note that the construction industry has a big impact (probably the biggest of all industrial sectors) on the carbon emission. And we know from other studies that the simple curing of concrete stands for +5% of the total carbon emissions to the atmosphere. In short, there is high time to discuss our building and construction methods – and there are actually much better alternatives than the use of concrete blocks and cement, for instance. Through my earlier experiences of building roundavels in concrete blocks against my neighbor who was at the same time building her’s from earth bricks, is that high building standards take time and costs money and also construction problems here are often caused by lack of supervision. Correct me if you can! And these conclusions are of importance when we talk about housing of the “common man” which is where I’m heading right now. I’m not saying this to embarrass the “large scale” construction industry – I know since long that they know perfectly well how to handle the issue of “prefab” – often the key to successful construction of scale. The construction of Sowa Town and the timely needs of the mining company didn’t seem to be congruent at the planning stage. There was the task of building more than 650 houses in a short time. The choice was – hand built masonry houses that would take a hoard of skilled bricklayers and supervisors (that wasn’t within the borders of Botswana) or some kind of “prefabrication and fitters” that many large construction firms could supply (in chorus). The clever architect from Anglo-American, Tony Young, recommended the “prefab” concept and a site factory. Consequently, housing needs were met with few delays. Consequently, I see no problem in the “large projects” done by BHC, Time and a few other developers. But it always looks to me as “experiments” rather than necessity. There is seldom any follow up of it, unfortunately – we’re always starting from zero.

But coming to building materials, there is a serious oversight here. And I’m talking about modern building blocks that have been used in more industrialized countries since the late 1920’s – the so called Autoclaved Aerated Concrete (AAC), produced under different labels since the old patent lapsed. Ytong, Leca, Xella, Siporex - the list is long. • It’s lightweight concrete of very exact dimensions easy to cut to preferred shape (by saw) and hardly in need of more than one millimeter of very thin mortar; • Furthermore, the products have much more of interesting advantages compared to conventional concrete – it uses less concrete since Portland cement is one of the most energy and carbon-intensive building materials; • Despite the energy-intensive autoclaving (baking) process, manufacturers say it takes about 50% less energy to make, because of the lower Portland cement content by volume and so far this no one has challenged this claim; • It’s lighter which cuts down transportation costs and fuel use; • It’s a better insulator to heat and cold and has excellent sound proof properties; • It is also fire resistant. A drawback is the fact that we have no manufacturer in Botswana but rumors are that there is someone experimenting with it somewhere in Gaborone North. It would be interesting to hear from him. Maybe he is also suffering from this modern syndrome of “patents” as most people in need of affordable medicine. Another one is that AAC is only feasible for low and mid-rise buildings – hence very popular for single family houses, schools etc. For higher buildings, reinforcements are needed – and most manufacturers have systems and solutions for this. AAC has the advantage that it can be produced in closed factory conditions as the “baking” gives unwanted emissions (but less than ordinary curing cement - remember the high amount of CO2 produced by this method). However, this fault in manufacturing ordinary stones can also be “cured” and it as to do with the ballast/aggregate used. Today it is mostly crushed gravel of certain size. It is clear that things are happening today from the sites I’ve been clicking. The new thing is to swop the old kind of aggregate to pebbles or crushed AAC. Then the old type of concrete stone will keep the CO2, dissolved in the AAC elements and the large amount of carbon is neutralized inside the stone. Clever – but it will need an interested manufacturer and probably a more expensive product.

A Guide to Owning Your Own Home by Charlotte Moeketsi What does it mean to be a home owner? A home owner also called owner occupied is a person who lives in and owns their home. The home which is a fixed property can be an apartment or a house. A home owner can also acquire property for the purpose of letting out for rental income. How can one be a home owner? Most homes are acquired by means of purchasing from real estate developers or previous home owners. Some are however inherited while some are constructed by owners. Acquiring a home can be very expensive for an individual or a family as it may cost several times their annual income. Often the individual (or family or company) would not have the means of raising the funds required to acquire the house immediately from savings. Attempting to Save for the purpose of acquiring a house may take several years before the enough funds are accumulated. It is for this reason that an individual (or family or company) may approach a financier to assist with the required funds. This is done by means of a home loan (also known as a mortgage loan). At Bank Gaborone we offer our customers an opportunity to realise their dreams of becoming home owners. What is a home loan? At Bank Gaborone we understand that at different stages in your life, whether you are single, married or with a growing family you have changing housing needs; therefore we provide the best financing option to help you own the property that will meet those needs. A Bank Gaborone home loan is a long term finance provided to you as a home owner or prospective owner for the specific purpose of acquiring land or a house, improving or building fixed property for residential purposes. The loan is granted against the security of a mortgage bond over the relevant property in favour of the bank. Who is eligible to obtain a home loan at Bank Gaborone? An individual or organisation with a regular income can apply for a home loan facility. The Bank will conduct all necessary credit reference checks. Is a deposit required? The minimum deposit required is only 10% of the purchase price or building cost and 25% for purchase of vacant land. For vacant land, the Bank will finance maximum of 75% of the open market value or purchase price, whichever is the lesser Monthly repayments The monthly repayment may not exceed 30% of monthly income (single or joint). Repayments are effected after registration of the bond. What is the loan tenor Years and rate (pricing)? The maximum loan repayment period is 25 years or retirement age 65. Our base lending rate is the prime lending rate. This means that the interest rate charged floats with the prevailing prime rate What are the requirements? 1. INDIVIDUALS • Personal balance sheet or Statement of Assets and Liabilities (form attached to the application form) • Proof of current residential address: utility bill (i.e. electricity/water) • Original/certified copy of Marriage Certificate/ante-nuptial contract/decree absolute (if applicable) • Past 3 months’ bank statements • Original/certified copy of your Omang /passport (expats) • Original/certified copy of work and residence Permits (expats) • Latest original pay slip/proof of income 2. COMPANIES, PARTNERSHIPS AND OTHER INSTITUTIONS • Last three years’ financial statements (management accounts if latest financials not available) • Cash flow projections for 5 years • Memorandum and Articles of Association (companies) • Partnership Agreement (partnerships) • Certificate of Incorporation (companies) • Constitution (other institutions) • Resolution to borrow (certified by company secretary) • Proof of shareholding (Forms 2 + 5) • Proof of current residential address : utility bill for each Director • Personal balance sheet for each Director • Proof of identity for each director 3. PROOF OR PROPERTY/PURCHASE OF PROPERTY • Valuation report (please contact home loans dept for details) • Copy of Deed of Sale • Copy of Title Deed 4. BUILDING LOANS • Approved plans and building permit • Three (3) signed building quotes • Bill of quantities • Soil analysis report • Architect’s profile • Contractor’s profile

Contact Bank Gaborone on: Email: homeloans@bankgaborone.co.bw Tel: +267 390 11 33 / +267 367 15 07 Customer Service: +267 713 333 00

BOIDUS FOCUS February 2013

Comments Page 17

EDITOR’S NOTE

2013/14 - New Year, Big Plans, Small Budget by H. Killion Mokwete, RIBA Chartered Architect

Comments & Letters

SEND YOUR COMMENTS AND LETTERS: EMAIL: mail@boidus.co.bw VISIT: www.boidus.co.bw

Boidus Botswana shared ‘Seeff Properties Botswana’ Photo:

Would you live in the CBD, Gaborone? We are doing a survey to establish the interest in living and working in the new CBD. For example iTowers building which has shops, offices, restaurants and apartments... Baodiretse Baatshwana: Only in housing that has properly placed sociological issues at the core of their design. Its a fact that tower like these are quickly going to turn into difficult to police areas thereby becoming a cesspool and ideal places for drug lords & pusher, high class angels of the night, gambling e.t.c.

We welcome our dear readers back to a new year and would like to thank you for continuing to support us and also for continuing to take an interest in aspects of our local construction. 2013 brings a new look of our print publication of Boidus Focus and also a renewed focus in increasing a wider readership base across the breath of Botswana.

Cloo ZeBest: Definitely not. This mix of land use based upon overlapping zones of living, working and leisure is perceived to be more sustainable and has worked well for compact cities of Asia, Europe and USA. But questions still remain as to whether that model works here.

Our outreach plans for 2013 will see us taking a road show across Botswana to interact with our readers and also participate in public education on critical matters of the local building industry. The road show which will over six moths take us through the diverse towns and urban centres of Botswana will also aim to bring these areas to you through special features to be publicised on Boidus Focus. Boidus Focus will also continue to host industry seminars with its partners and will look to create platforms for the exchange ideas addressing critical aspects of our built environment. The seminars schedule will soon be revealed on this space and we will invite you to join us in discussions. The Year 2013 begins with signs of continued stagnation of the industry. Although it has been the norm for the past two years for the Budget speech to have nothing in the form of stimulus to industry growth but focused on a balanced budget, the question that remains unanswered is: At what costs does the balanced national budget come and to whose benefit is a balanced budget if industries such as the construction sector are in dire straights? Answers to such questions will continue to unravel in real time events as the year progresses. The industry faces daunting challenges ahead. The stimulus package once requested by BOCCIM on behalf of the ailing industry has still not materialised and yet prospects of a new project roll out seemsbleak. Perhaps, as one economist put it, the industry needed this jump shock to wean itself from government dependency. But to get to real independence, there will be some casualties.

Boidus Focus Team 2013 EDITOR H. Killion Mokwete DESIGN Bridget T. MacKean JOURNALISM Kibo Ngowi

SALES H. Killion Mokwete Thabo Serona

GUEST COMMENTARY Keith Jefferies Alex Monchusi Chris Gofhamodimo Dziki Nganunu Joe Simpson

DISTRIBUTION Nako Kabomo

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People do not accept changes unless there’s an alternative that gives a good or better quality of life. I-Towers offering a good alternative? I don’t think so. Refiloe Aphiri: I would most certainly love to stay here. Convenience is key. However, its the price tag that matters. Rental and home ownership is beyond us in this country. Working class citizens are unable to afford even the basics.

Assuming I buy a penthouse as my only house and live there with my family. Where would they pitch a tent for my funeral. Does the scheme provide for such?

Kaone Selato: I would buy to rent but I wouldn’t live there

But buying and building a house on a plot in Tlokweng will cost me less and I’ll have a piece of land to do my backyard gardening and pitch a tent when I get married.

Agatha Sejoe: Own an apartment and lease it to tourists there?, definitely yes..but me living there?, absolutely not. I prefer peace and serenity in a non-conjested environment where I enjoy my eco-friendly gardening on a large plot and hear the birds sing every morning. Thank you very much.

High rise inner city living is not sustainable in Botswana, and it will continue to be unsustainable until there is a cultural change in our society. Lifestyle change cannot be imposed but can only be encouraged. Architects, planners, developer etc have little direct say upon the way in which people should live in the future.

Boidus Botswana discussion via ‘SA Commercial Prop News’:

Student Accommodation is ripe for investment too her in Botswana. Question is why are developers not exploiting the opportunity? Refiloe Aphiri: Ah there are some guys from gabs who jumped at the opportunity (insider trading) and shut doors for others! My question now is where in SA since the MoE has cut down, tremendously, the number of students it sends for international studies there? Reason Sam Dambe Mojoko: Students here are a bad investment,they always late in payments and i guess we all know the blame game btwn them and MOE when it comes to their allowance(s)...It might look viable but for now(in Bots)we have a long way to go... Laurence Mwale: I think the reason why investors are not keen on that market is because that market in Botswana is volatile. The students are dependant on one sponsor the gov who is always moving the goal post... If you look at the past two years and analyze the students subsistence allowances you will realize that they has been a lot of changes and reductions which could easily affect an investor who relays on students income... If you look at many small cities in the UK with universities they relay mostly on students to sustain the economy and they work very hard to attract foreign students who bring in a lot of money... Its a pity that our country is failing to exploit that niche... Boidus Botswana: Laurence Mwale, you have a very

valid point..this over dependence on government for everything is killing creative thinking and innovation in Botswana. Sometimes government needs to just not get involved and let innovative ideas develop. A while back we interviewed some local investors who were willing to partner with UB to build and run student housing..but the biggest stumbling block they faced was that there are no regulations specifically to student hostels. So obtaining planning and or operating license was a problem. Thato Hollauf: student accomodation is still not viable(profitable) in Botswana considering that most students depend on gov stipend which is also very low. Refiloe Aphiri: It is very low- what govy could be saying here is, let us rotate the income in our country, Batswana who are able to house students (2 or 3 bedroom houses) come forward and submit applications, negotiate rent and let businesses run. Why do they have to export money out of here....zero ROI. Kana ke gore ha re akanye ha re theogetse betso LOL (ha se ko govy). Jan Wareus: I think some experimental community student dwellings would be interesting not only for students but firstly for retired people and also for working people interested in cutting costs and positive for “alternative living” as they are in EU and not the least USA.

Boidus Botswana discussion:

After all the diamonds are finished in the ground and the factories across our mining towns are shut...what will become of these mining towns i wonder? Kevin Ling: Creating new culture for the society not consuming the natural resources.

But you get there nyaa ruri what is gonna be o them after all has been taken away...

Agatha Sejoe: Forget the towns, the country?

Rex Reabetswe-Tjadiwa Butale: Ee goin to make biggest stadiums in the world...

Boidus Botswana: hehehe..@ Kevin Ling, its good to hear from you man. But you see, all that is great.,.but what will actually happen to the PLACES and its PEOPLE? Currently, with all the wealth they produce, none of these towns have anything to show for it and what is scary is that there are no signs of a plan B. Mosetsana Kedidimetse: good ques Goabamang Moabi Lethugile: Ene gone mme seriously this mines are really not doing anything socially or infrastructure wise ...Ke di Ghost towns heela..okare western movies .bojang nyana bo roller mo tseleng go le rolenyana..o ipotsa gore ba investor kae? Di ne di tshwanetse go nna diproto type kind of small towns...

Boidus Botswana: hehehe..biggest stadiums indeed. Kana if all was planned well, there could be an ‘aftermining’ micro economy created in these towns. Are we going to just abandon all the legacy of having been the largest rough diamond producers in the world and come out with nothing? Kondwanie Chirembo: Very good question this one ... hopefully you can put it across as part of comments to the recent budget. Personally I would think tourism would be an ideal sector to take over in those areas ... currently these are restricted areas and once mines close people would be interested to see how the operations were being undertaken etc

Find Boidus on DISCLAIMER: Please note that the views expressed in 'Comments and Letters' are neither those of Boidus, its management, nor its advertisers.

Professional Practice Page 18

BOIDUS FOCUS February 2013

The Critical Issues at the heart of Botswana’s Public Projects Procurement Failures

by HK Mokwete, RIBA Architect

While listening to a media briefing by Mr Dikagiso Mokotedi, permanent secretary at Ministry of Science and Technology (MIST), about the now 3 year delayed renovation of the national stadium, I could not help but notice the signs of a broken procurement system at the heart of Governments public projects. Although at the briefing, the PS insisted that no questions be asked about all other delayed or incomplete projects across the country, the jury is already in about the state of our procurement systems, and as he readily admitted it, the problem is systemic and runs through the whole industry even in the private sector. On closer account of the context of our procuring practices, it is however possible to put a bottom to what really are the key issues. The problems surrounding our procuring practices fortunately are text book problems that should be easily addressed provided there is enough will power and authority to do so. Below I will explore the key critical issues that define the depths of the issues: Unregulated Professional Industry Project procurement in an industry where professionals are largely unregulated will always be challenging. Unregulated professionals have no code of ethics which binds them to certain rules of professionalism and conduct. In such an environment, the industry’s interests are not safeguarded and are open to exploitation by unethical elements who are in it just for financial gain over service delivery and consumer protection. The current situation in Botswana’s construction industry is such that only Engineers, through Engineers Registration Board (ERB) have a Registrar and are the only ones who legally can account for just who is practicing as a

qualified engineer in Botswana. The importance of a Registrar in any profession can not be understated when it comes to consumer protection and keeping the integrity of a profession in check. Only when a profession knows itself can it be able to weed out undesirable elements. The rest of the industry professionals such as Architects, Quantity Surveyors and other technical service providers only have professional associations which are in themselves voluntary and have little legal basis to take anyone outside their group to task for misconduct. Contractors too have no legally protected regulatory body. Over and above these challenges of keeping track of professionals through legal registrars, there is real little that can be done about rogue elements that are found to be unethical except litigation routes which the client can access through the courts and even then this does not guarantee that they will be stopped from ever practicing in the profession. Where regulator frameworks exist, professionals found guilty of gross misconduct can face criminal charges and be kicked of the profession and never be allowed to practice in the field again. This would also apply in public or private projects. Consumer protection and professional integrity are at the core of every professional regulator. Currently PPADB may ‘blacklist’ contractors but only from working on public projects. These contractors can still continue to practice in the private sector and therefore the consumer and professions are still not protected form such. Outdated Procurement Strategies

Procurement strategies are continually shifting away from traditional process, where the architect is the key client consultant, to project manager lead, contractor led and to management lead procurement structures. The choice and use among the different options is a subject of serious deliberation requiring professional advice. Choosing the wrong procurement strategy for a particular project can spell disaster from the start. The different array of choices has all different points of emphasis, from a time/delivery emphasis, quality and budget led emphasis. Take for example a school that has a date of admission set by elements beyond the control of the client, its procurement key emphasis has to be TIME based. This means the choice of procuring strategy would put the school being delivered on time as key emphasis. This would see the traditional method of procurement where the architect is the lead consultant NOT favoured because the method is well-known for time delays. The appropriate method of procurement will include the management model and or contractor lead method (Design Build). Where quality of design is emphasised, for example in the procurement of a hospital, then the architect lead procurement might deliver better results, as the quality of the product can continuously be monitored throughout the building process. In Botswana however, little is done to access and develop the right procurement process for varying projects because of their different needs. The same processes used for schools are used for stadiums, police stations and office buildings. Dispute Resolution In construction nothing runs smoothly. True to Murphy’s law, what can go wrong WILL go wrong. The construction process is always going to have snags and issues that might lead to disputes. Regardless of whom the client is, either close friend, family or government, dispute resolution and management processes should be put in place BEFORE construction can commence. These processes of dispute must be agreed by both parties in contract and be legally binding. Dispute resolutions in an internationally recognized contract document put the interest of the project first. This means that before the litigation route can be pursued which usually is outside the realms of the building contract, first building processes of dispute resolution should be followed. These include mediation, arbitration and other agreed forms. Litigation is only made an option at the completion of the project where the aggrieved parties can seek legal recourse and or compensation. While the project is still under construction, the award decision by the arbitrator is final. This protects the project from what has become a norm in Botswana public projects, where disputes are first resolved in courts and hence rendering the project unfinishable. Mr Mokotedi answering my question at the media briefing highlighted that they have now learned their lesson and will in future be addressing dispute resolutions issues early on in the contracts which is a welcome development. Flawed Tendering Process Procuring projects through awarding of tenders is suspect and vulnerable to crippling problems if tenders are awarded to the undersigning contractors (who does not meet required qualities to undertake the project successfully) or when the tendering process carries with it no quality assurance procedures that can be both measured and carrying proper periodic review measures. In Botswana problems of the tendering system are more basic. Tendering with a view to appoint the right contractor or professional should only be undertaken when the right adequate information to adjudicate the said tender is available. In many cases building projects are put out to tender for appointing the contractor for example with inadequate information. In case of the National Stadium, SSKI Airport, contracts were awarded to contractors with little detailed design information. This is almost like giving a contractor a blank check. It is well known that projects designed and detailed while in progress of construction throws out of the window at least two critical components of contractual agreement without which the project is likely to fail. Projects designed on site (unless with clear control measures) are more than definitely going to encounter time delay issues through extension of time. This is simply because specifications undertaken on while schedule adds uncertainties to delivery of materials . The other key component jeopardised by designs on site is Cost. Value engineering is a process usually done well before the tendering process to ensure that alternative affordable materials and or methods can be used to deliver the project on time. The bill of quantities produced which should be part of the tendering package is a very important part of the contractual document which ensures the contractor can deliver on time and or quality of the specification. DBES has regularly admitted to projects being awarded without detailed design and all project specification, therein lies the problem.

BOIDUS FOCUS February 2013

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BOIDUS FOCUS February 2013