Speech by Minister of PublicWorks,
Mr.Thulas Nxesi Programme Director Founder and CEO of the South African Construction Awards, Mr. Loyiso Ngavu The representative of the host city Representatives of the construction sector Most importantly the 2014 SACA awards finalists present Ladies and gentlemen It is with great pleasure for me to be here at the 7th Annual SA Construction Industry Awards 2014 event and to have this opportunity to share some success stories and experiences. This is a multi-faceted and very complex Field to operate in, it requires a professional and dedicated people to make it work – that’s you. But it also needs strong, clear and determined support from all the stakeholders. I also want to welcome the participants from industry and client organisations that are here today, many of whom have participated in the development of these awards. This marks a milestone in the industry's participation in the development of these awards developed in partnership with state – owned - entities.
National Infrastructure Plan The President of the country and Cabinet have allocated over R1 trillion over the next five years to investment in infrastructure - reaffirming that the creation and maintenance of infrastructure is central to driving the economic growth of the country and job creation. The National Infrastructure Plan for the country – led by the President - speaks to the following: the need to develop a comprehensive plan which would address the legacy of apartheid spatial planning by integrating those parts of the country – rural areas in particular – which had been historically excluded from economic development. the need to use infrastructure development as a lead sector in developing the necessary economic linkages to drive inclusive economic growth and development; and the need for infrastructure development to lead the struggle against the triple evils of poverty, unemployment and inequality. Eighteen major long-term Strategic Integrated Projects (SIPs) have been developed to promote regional economies and job creation. Examples include: SIP1: (coordinated by the Minister of Public Works) aims to unlock SA’s northern mineral belt centred in Limpopo through key infrastructure provision in Waterberg and Steelpoort districts, initiate new energy and industrial development, develop a new city around Lephalale, shift coal transport from road to rail in Mpumalanga and increase rail capacity to Richards Bay whilst supporting regional integration. SIP6: Integrated Municipal Infrastructure Project – to assist the least resourced districts to address all infrastructure, maintenance and basic services backlogs. This infrastructure delivery plan needs to be delivered – by the construction sector - in a manner that provides value to the country – and this value depends on appropriate planning of the infrastructure, and also value delivered by contractors through the construction process. This infrastructure must be delivered to the right standard and quality, and on time.
However, all too often we have seen examples of poor quality construction, contractors failing to deliver, excessive price escalations, and dare I say it -collusion. This has cost the country many millions of Rands – even billions. The cost of poor quality has been estimated by the cidb to be around R4 billion per year.
Combatting collusion In relation to the issue of collusion, I just need to flag that the findings of the Competition Commission and subsequent processes – I believe - mark a major milestone - and hopefully a turning point in the evolution of the construction sector in this country. Of course the findings leave us with a dilemma: Wrong-doers need to be held to account – no matter how big they are. But we are also dependent on what is a vital sector of the economy as a lead driver of economic development and job creation. My own view is that we have to strategies on how best to use this moment in the life of the construction industry to promote transformation and development of the sector. This is something we can start to think about and discuss for the future. However, I encourage clients, and public sector clients in particular, to adopt these standards now, and incorporate them into our conditions of contract. In this regard I am pleased that the Standard for Skills Development will shortly be incorporated into the 18 SIPs. Ladies and gentlemen, I now want to turn to something that is very close to my heart - the announcements of the 7th South African Construction Awards 2014 here tonight. Infrastructure is not only about cement, stone, steel and other building materials. Infrastructure is also about the people who create and maintain the infrastructure, and the skills they bring to bear on the construction process. It is about the human potential, it is about the designers, the managers, the foremen, the supervisors, professionals, artisans and general workers. Each of you is being recognised for excellence in relation to your outstanding performance in the project that benefits our community. You are being acknowledged for your hard work, your commitment and your creativity. Without you there would be no new improved infrastructure like roads, bridges and stadiums which we pride ourselves with and clearly benefiting in making life easier for our residents. You make a difference. This is the ultimate win-win situation and it affords us the opportunity to forge partnerships to eradicate poverty in our country. You are empowered to deliver services such as roads, houses, stadiums, schools etc – to your people, and in the process you also create work opportunities and incomes for unemployed families. And when you do this well, you give our country hope for a better Future for all. To Mr. Loyiso Ngavu I salute you for making this biggest construction event in South Africa. I congratulate the winners on their accomplishment and I express my thanks to the construction industry and to the Jozi Media team on this initiative. This serves as an example of how infrastructure delivered by the state is also delivering skills, and employment opportunities. Thank you
CHIEF EXECUTIVE'S FOREWORD As the industry seeks to improve enterprise-level outcomes, and policy-makers to build our national prosperity, Construction Journal’s vision is for a building and construction industry that maximises its potential by being both fair and productive. OUR APPROACH
transition to Construction Journal.
The building and construction industry is, by nature and long tradition, collaborative. It takes sophisticated co-operation to build a road, a skyscraper or a mine. Construction Journal will join forces with industry to make sure the same high-level collaboration that happens on the job also happens with respect to workplace laws and workplace culture.
Above all, we seek to be visible. A publication that only springs into action at certain flashpoints cannot hope to create lasting change. Increasing information channels to and building partnerships with our industry is critical to our success, and we will continue to pursue meaningful, respectful engagement with all parts of the building and construction sector.
Construction Journal is focussed on integrating the way we deliver services. We are working with other agencies, industry and key stakeholders to ensure that we make the strongest contribution to getting workplace relations settings right. Our approach is hands-on. We are visible on work sites and we listen hard to the industry at all levels – from the tools through to key industry events. We will regulate from the front – in a proactive, pre-emptive way, rather than waiting for contraventions to occur before we act. We seek to be agents of positive impact in our industry, not just to prosecute malfeasance after the event.
OUR WORK PROGRAM Construction Journal investigates across the full range of civil penalty breaches in the FW Act. Over the coming year, our content will focus on six key areas: • unprotected industrial action • freedom of association • coercion • right of entry • wage and entitlements • sham contracting We approach each of these harms with a range of tools from along the whole regulatory spectrum, from voluntary resolution through to enforcement strategies including civil penalty action. We retain from the former regulator the power to intervene in court matters brought by other industry participants, and we exercise that power when we judge that it is in taxpayers’ interests to do so. Employers can also expect that Construction Journal will focus on breaches that were not a strong feature of the former regulator’s approach, including breaches of modern awards, discrimination, adverse action and failure to comply with notices or record-keeping obligations. As well as pursuing our regulatory interventions in the industry, I am committed to finding ways to build the industry’s capacity to – and willingness to – fashion its own solutions. Where elements of the industry evince a commitment to better dispute management, Construction Journal will provide advice and guidance. At the same time, it should be absolutely clear to all industry participants that Construction Journal will be a vigourous and effective litigant in the public interest. This commitment to ensure that the rule of law is upheld is undiminished, despite the confused rhetoric of those sceptical about the successful
NEW WAYS TO CREATE VALUE There is currently a thriving – though not always accurate – national conversation about productivity and about the workplace relations settings appropriate to ensuring and enhancing it. Construction Journal intends to contribute to that conversation in a way that is agnostic of politics and focused instead only on well-supported evidence. There is a large and growing body of scholarship suggesting that employee engagement is a key driver of enterprise-level productivity, as well as a reliable predictor of shareholder value and return on equity. It makes business sense to treat employees fairly, and it makes sense for individual employees to take an active role in increasing their productivity in their workplace. Construction Journal’s object to encourage harmonious practices obliges us to support industry participants in finding common ground with employers, employees and their representatives in workplace issues, as well as to undertake the hard compliance for which the former regulator was well known. It is through taking this ‘long-view’ approach to compliance that Construction Journal will contribute to industry in a lasting way, beyond the band-aid approach of a regulator focused entirely on the ‘now’. Our industry can be a leader for the new productivity frontier. I consider it Construction Journal’s priority to both address the productivity challenge in construction, and by doing so, create markers for other industries about how they can best bring the pieces of the puzzle together. The construction industry can provide positive examples, and positive direction. If we address inefficiencies in construction, other industries – in particular those industries that need infrastructure to be productive, like mining, transport and the services sector – are enabled to follow suit. Construction Journal does not just expect industry participants to be cooperative, harmonious and productive. But through patient, diligent and ethical work, I am confident that we can make a lasting difference in this industry, for the benefit of all South Africans.
Loyiso Ngavu Chief Executive South African Construction Awards Board
EDITOR’S NOTE I am delighted to have the opportunity to welcome you to the 9th annual SA Construction Awards ceremony which, as many of you will know, is the biggest event of its kind in the construction industry's calendar. I am especially pleased that the organisers of the 2016 event have agreed to raise money for the Construction Industry Trust for Youth. The awards will go to the best in the business in one of the SA's most important industries. The SA construction industry generates 10% of the SA's gross domestic product, and employs 1.4 million people. SA designers, civil engineers, contractors and component and product manufacturers also have an excellent international reputation and are now ranked in the global top 10. The SA construction industry's work – at home and overseas – cannot, however, be delivered without continued attention to training and improving skills at all levels. Some significant strides forward have been made by the industry over the past years. But the industry must now redouble its efforts and work even harder to improve training and to genuinely engage with the education community. These efforts will, I'm sure, be supported by the activities of the Construction Industry Trust for Youth. As you may know PUBLIC WORKS assists young people, either as individuals or through support to community projects, whose social or personal circumstances act as obstacles to access to those skills. I am therefore grateful that, in celebrating your own industry's undoubted prowess and best practice, you are also willing to help others to start on that path. With your help, Green
Construction Journal will raise money for a very worthwhile cause. I hope you will give generously and have an enjoyable evening. I offer my thanks to the founder of SACA Awards, His Excellency Mr Loyiso Ngavu and staff of Jozi Media for ensuring the success of this event. The evening would not be possible without the efforts of the generous sponsors of the awards, and I would like to extend my thanks to them also, and to those who have willingly given of their time to help with the judging. I also offer my congratulations to all those who are among the 2016 nominations for the exceptionally high standard of their entries; it is these high standards which help to ensure the continuing, major contribution of your industry to the country. Together we moving SA forward, see you at the 9th SA Construction Awards 2016.
Chantal Kruger
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Editor-In-Chief Justice Mashaba Justice@jozi-media.co.za Jozi Media Founder & CEO Loyiso Ngavu Cell: 082 689 4588 loyiso@jozi-media.co.za Sub Editor Chantal Kruger chantal@jozi-media.co.za Contributors Department of Public Worls, Arive Alive, SANews,gov.za, Babalwa Buthelezi, Graham Andrews, Nick Sally, Gordon Clive, Phinah Ramalepe, Sfiso Ndebele, Kobus Venter, Rob Dickson, and Vusi Khumalo.
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CONTENTS 10 GCIP South Africa honours clean technology enterprises
CAPE TOWN'S CASTLE TO BE RENOVATED 23
11 Gas is the way to go for South Africa 12 'Green' residential properties have a competitive advantage 13 SA needs and deserves an energy revolution 14 Now is the time to deploy smart building technologies 15 BMW South Africa’s Rosslyn plant receives first renewable energy 16 Cape Town turns green for annual sustainability summit 17 New Beaufort West mall to open soon
WOMEN IN CONSTRUCTION INDUSTRY 27
20 Green buildings now the law in South Africa 22 A Heritage to be proud of 24 Green technology in construction industry in South Africa gains pace 26 The impact of transport on economic development of Africa 30 Kenya construction and infrastructure sector to grow by 9% this year 31 Design for construction of Pietermaritzburg N3 interchange in South Africa under way
PLANS TO MITIGATING ENERGY CRISIS IN 28 SOUTH AFRICA
32 Buhari launches 260km Super Highway construction project in Nigeria 34 Kwikspace in South Africa constructs fireretardant buildings at major Dam 35 Newly constructed Biobulk waste water treatment plant in South Africa to be commissioned 36 Preparation begins for construction of Nuclear Power Plants in South Africa 38 Abland to construct grade A office Park in South Africa 40 Construction firms in South Africa to restructure as market demand tumble
CONSTRUCTION OF KPMG PLACE STARTS IN 37 CAPE TOWN
SUSTAINABILITY
GCIP South Africa honours clean technology enterprises
The Global Cleantech Innovation Programme (GCIP) South Africa recently acknowledged the inventive work of small and medium enterprises (SMEs) at the annual awards ceremony which was held at the CSIR International Convention Centre in Pretoria. The event was opened by the CEO of Technology Innovation Agency (TIA), Barlow Manilal. TIA primarily funds and nurtures South Africa's technology innovations to support the creation of new industries, create sustainable jobs and improve quality of lives.
innovation through technology development. "The impact of the support to SMEs has resulted in significant improvement in technical skills, product quality, productivity, costsavings, energy efficiency, waste management and most important of all employment creation."
"TIA's partnership with the United Nations Industrial Development Organisation (UNIDO) and the Global Environment Facility (GEF) in this initiative has demonstrated thought leadership by anticipating the relevance of the Cleantech sector and its potential economic and social impact in South Africa and indeed Africa," said Manilal.
First place was awarded to Khaya Power, showcasing their unique micro-gasifier stove design that gasifies the solid fuel used and then burns it like a gas fire. The emissions meet the highest standards for stoves and are safe to use indoors.
Economic development "Enabling dynamic SMEs in developing countries and emerging economies to fully access national and global markets is crucial for job creation, women's empowerment, innovation, and overall economic development," said Gerswynn Mckuur, national programme manager for GCIP South Africa. The Minister of Science & Technology, Naledi Pandor, highlighted that since 2010 TIA has supported more than 8,130 small and medium enterprises in accelerating technical
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Runner-up awards The runner-up awards were presented to Carbotect, which is a colour-based diagnostic aid used to verify the quality and safety of liquid consumer products; and to Green Tower, which has developed a patented hybrid solar heat pump for domestic hot water, utilising energy and water efficiently. The Most Promising Youth Led business award was presented to Solar Veranda, whereas The Best Women Led business in the programme was won by the ZingCO electric vehicle project. Zuka received the accolade for Innovation for Social Impact for their product which employs vermicomposting biotechnology that helps nourish the soil.
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Gas is the way to go for South Africa As South Africa grapples with its energy challenges, there is near constant attention on it. But there is little discussion about South Africa's long-term energy plan and an emerging supply shortfall in only ten years (by 2025). Current installed capacity and new coal plants, Medupi and Kusile, when fully operational, should cover the country's needs until 2020, but then what? By 2025 we estimate a power gap of 6GW to 10GW will emerge, equivalent to millions of households' electricity needs. The only solution that can close that gap within ten years, while South Africa finalises its long-term energy mix plans, is natural gas power.
Environmentally sound - New combined-cycle gas turbine plants produce less than half the carbon emissions of new coal plants. And while nuclear energy technically has the lowest carbon emissions of all, it is also associated with radioactive waste and high disposal costs. Complements renewables - Gas is better positioned to support an ambitious renewables development programme; because gas can be switched on within an hour, it is the perfect complementary power source. Coal and nuclear power plants cannot ramp generation up and down in the same way.
Today, both coal and nuclear power are cheaper than gas, but this is changing. Estimates indicate new gas plants would cost R1.10 per kilowatt hour compared to coal at 73 cents and nuclear power at 86 cents. But by 2030, South African domestic coal prices are expected to rise by 87%.
Gas-based industries - Utilising gas for power could allow South Africa to achieve the scale that would enable gasbased industries to emerge. For this to happen, significant domestic and regional production will have to be unlocked to allow prices to drop within the range where this becomes economical, at under $6 per MMBtu.
Carbon taxes The government is also imposing carbon taxes from 2016 that will affect coal prices more than gas. On the other hand, if regional gas options do prove feasible and are developed, the price of gas could drop, making it more competitive. However, with only a ten year time-frame, cost will not be the main consideration. Timely power supply is South Africa's most urgent need. South Africa has 14.4GW of ageing power generation infrastructure that will be decommissioned after 2020. Together with a population that is both growing and increasing its average standard of living, supply will come under renewed pressure. Gas as base-load generation, supplemented with additional renewable power, is the best option South Africa has to close the gap in the time available.
Advantages of gas There are a number of advantages to gas that make it an attractive option to close South Africa's looming energy gap: Fast lead times - Natural gas plants need just two to four years from conception to construction due to their modular nature. This is much shorter than either coal or nuclear power. It will be an unusual feat to deliver new, fully operational coal and nuclear plants by the mid-2020s. These technologies remain options for longer time frames (nearer 2030). Lower capital expense - The initial capital expense of building a gas power plant is significantly lower than coal and nuclear plants. ConstructionJournal
The biggest question facing gas power is where to source gas from. The Southern African region has many alternatives, but most of these have not yet been proven to be economically viable. A carefully thought out programme is needed to unlock this potential. Most likely, gas would be sourced by importing LNG to meet the immediate demand, while simultaneously completing an appraisal programme to prove the viability of the regional alternatives.
Cooperation is important Cooperation with new partners in regional governments and private sector players will be important in unlocking regional gas, as both government and business have a role to play. The government could finalise regulations, issue permits for pilot well drilling, and complete necessary environmental impact assessments. There is an option to consider guaranteeing the purchase of gas as an end-user for a number of years, given that early production costs are likely to be higher than imported gas. The private sector has a critical role to play in bringing expertise and investing in the opportunities. Depending on the scope pursued and the scale achieved, investments could reach R600bn to R1tn by 2030. Gas is the way to go for South Africa, but given the ten year time frame the urgency to act on this opportunity is growing.
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'Green' residential properties have a competitive advantage
There is a swelling tide of interest among consumers in energy conservation which has recently been fuelled to a large extent by the frequency and inconvenience of load shedding combined with significantly increasing electricity costs. "As the affordability of energy saving features improves, in coming years we are bound to see the desirability of homes which incorporate such features increase exponentially as being 'green' receives a higher ranking on the scale of considerations among home buyers," says Dr Andrew Golding, chief executive of the Pam Golding Property group.
costs of any home, while at the same time serving to preserve the world's scarce resources as well as reducing the impact on the environment. Our vision is to reach a point in the hopefully not-too-distant future, where this becomes integral to a home's specifications when selling and that buyers understand the value of this versus 'less green' homes.
"While it's not possible to quote actual numbers, there is no doubt that residential properties offering green or energy and water saving features as well as emergency or backup power solutions, are at a competitive advantage in the marketplace and are becoming sought after by buyers in preference to properties that don't offer such features. In a trend which began making its presence felt some 12 to 18 months ago, we are seeing 'green' features and energy efficiency definitely adding to the saleability of a property," says Dr Golding.
"We have always believed that leadership and responsibility go hand in hand. Responsibility aside, it is a great privilege to partner with the GBCSA in their capacity as the 'green' custodians of the built environment in this effort to create consciousness regarding the sustainability of our planet right where it surely begins - at home," says Stroebel.
GBCSA partnership "This need not be prohibitive and is one of the reasons why we have partnered with the Green Building Council of South Africa (GBCSA) - to drive a better understanding of value in the residential property market with regard to a home's green credentials," says Anthony Stroebel, group marketing director for Pam Golding Properties and a newly appointed director of the Green Building Council of South Africa. "Fundamentally, this has a positive impact on the running
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Commercial properties Brian Wilkinson, CEO of the GBCSA, says going green increasingly makes economic and environmental sense, as clearly demonstrated in the commercial property sector. "A huge part of the success of our journey in green building and environmental sustainability in the commercial property sector has been a close partnership with industry leaders such as Nedbank and Growthpoint, especially in terms of their credentials in this arena. "It is important for us as a relevant movement to increase awareness and penetration so entering into the residential 'green' home sector was a natural progression for us, and Pam Golding Properties is an ideal fit," says Wilkinson.
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SA needs and deserves an energy revolution The African Climate Reality Project says it's time for South Africa to look up and not down for its energy solutions. In an apparent state of conflict over its energy policies, South Africa flounders as a victim of load shedding in the grip of Eskom's continued reliance upon coal and now also must seriously review its 'intended nationally determined contribution' (INDC) and declare a commitment to reducing carbon pollution ahead of the climate change conference in Paris this December (COP21).
more than South Africa's current energy needs, according to a study conducted by the CSIR's Energy Centre. And wind has already protected us from shedding; wind energy helped to avoid more than 200 hours of load shedding in the first six months of 2015 alone, an equivalent value of R1.5bn. Added to this is the fact that wind energy saved Eskom around R300m in expenditure on diesel and coal during the same period.
Role of consumer pressure
High potential for solar
Just as a huge defeat for 'big oil' was scored when Shell, in bowing to mounting opposition, pulled out of its controversial drilling operation in the Alaskan Arctic this past week, the indicators are that consumer pressure could really help bring about a universal review of how we derive our energy. Shell was 'surprised' and apparently caught offguard by the force and scale of the opposition it met - and, meanwhile, the case for wind and solar energy is becoming ever more plausible and compelling.
Most regions in South Africa receive more than 2,500KW hours of sun energy per square metre per year, making the country's potential for solar energy one of the highest in the world. But SA is only tenth on the chart of countries that are effectively harnessing the sun's energy. Germany's at the top of the list with 1.5 million solar plants (small to large rooftop and utility scale) that yield an installed capacity of 40GW; whereas SA produces 1GW of installed utility scale solar capacity.
In the first six months of 2015, renewable energy contributed R4n worth of benefit in savings for SA (Source: CSIR). Six years ago, the price of wind-generated electricity cost a third of coal power (62c compared with 168c per kilowatt hour for coal). To build a wind farm, it costs half that required to develop a new coal power station and it only takes 18 months to establish a wind farm - Eskom's Medupi Power Station has been ten years in production and is still not operational.
Solar is also an ideal solution for delivering power to the 15% of South Africans without access to electricity. By providing homes, townships and entrepreneurs with small, portable solar panels and solar kits, South Africa could be empowering people with affordable electricity right now.
Job creation
Eskom currently generates 95% of South Africa's electricity. Its plants house technology that will continue to age, and in turn increase the risk, frequency and severity of load shedding. Load shedding is a symptom of larger environmental and economic issues. In South Africa, electricity insecurity is our daily reality, and it's paralysing our economy. One former Eskom advisor has predicted that load shedding will occur until 2023. Patching up old plants is just a temporary fix, tantamount to slapping a plaster over a gaping wound. Meanwhile, South Africa's power sector is responsible for nearly half the country's carbon emissions because of its reliance on coal.
According to Greenpeace Africa, renewable energy will create around 80,000 jobs annually while coal will lose 10,000 jobs. To date, the solar industry alone has created 20,000 and is set to contribute an estimated R2.9bn to socio-economic development in rural regions over the next 20 years. Everyone knows that Eskom cannot cope with the country's energy demands and that its load shedding programme is having a crippling effect on the economy and causing widespread stress and discomfort to all South Africans. The African Climate Reality Project (ACRP), which works closely with the Energy Centre of the CSIR, says that wind and sun are far more valuable as inexhaustible resources than the minerals we've been digging up out of the ground for energy. South Africa has enough wind potential alone to generate
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Electricity insecurity
Phasing out unsustainable coal plants and replacing them with wind, solar and other clean energy technology has to be the best way for South Africa to step into the light of a lowcarbon energy future, one that provides clean, affordable energy for all South Africans and protects the environment and climate for future generations.
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Now is the time to deploy smart building technologies The grid - the infrastructure that delivers electricity from our local utility and municipalities to buildings - is over-taxed.
Because of increasing demand during peak time periods and the imminent output of renewable energy sources such as solar and wind when South Africa's independent power producers (IPP's) start contributing with supply, the grid is less able to provide a stable energy supply.
Advanced diagnostics and automated measurement, verification and reporting of energy and greenhouse gas emissions savings.
However, by linking all supply and demand elements through intelligent two-way communication, the grid could constantly monitor demand and adjust delivery accordingly. That's the idea behind the 'smart grid'.
Automatic demand response to dynamic pricing signals from the grid. By utilising smart building technologies, owners and tenants can vary electricity usage in response to signals from the grid when prices change to consume electricity when it's cheaper, and they can reduce demand when the grid is reaching capacity.
For example, by interfacing with home appliances or building controls, the smart grid could allow those energyconsuming devices to operate in off-peak periods and disable them during peak periods to save energy, reduce strain on the grid and enable users to consume electricity when it is least expensive.
Natural progression In South Africa, we do not have a 'smart grid' per se but the natural progression to our energy crisis is to implement the technology in order to connect demand to supply capabilities and deliver bi-directional information between the utility and the consumer. It will drive consumer usage and behaviour through 'time of use' billing and enable facilities (and consumers) to reduce their consumption during peak periods. Facilities will be able to control their energy loads by having them connected to a smart grid and enable companies to manage their own load shedding. This will deliver significant financial benefits to organisations and assist the utility to manage demand better. To deliver all the benefits the smart grid has to offer, smart buildings need to be connected to it. A smart building provides some or all of the following advanced capabilities: Optimised coordination of energy loads, on-site energy generation and energy storage. Fully integrated control of lighting, heating, cooling, ventilation, IT, and other energy consuming systems, using weather data and information from security, scheduling and other business systems to optimise performance.
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Continuous two-way communication between the building and the grid.
This is known as 'demand response'. Smart building management systems can automate a short-term reduction in energy demand through load shedding or load shifting. For example, if the owner sets an electricity price threshold for the building and the grid signals that the price will exceed that threshold at a particular time of the day, the system would automatically reduce energy demand in the building at that time. The system could turn off non-critical loads, reduce lighting levels and let building temperatures float within limits or start the use of stored or on-site energy generation.
Reliability and security Combining smart grid and smart building technologies improves reliability and security, while reducing energy costs and greenhouse gas emissions. Johnson Controls has been providing smart building technologies to customers for years and those customers are reaping the benefits. Commercial buildings in the US now consume 18% of the country's energy and 36% of the electricity. In a recent energy efficiency indicator study, 44% of facility executives in the US selected smart building technology as one of the top three technologies expected to have the greatest price-performance improvement over the next ten years. The time to deploy smart building technologies is now. Doing so could avoid $33bn in energy costs and eliminate 160 million tons of carbon emissions annually by the year 2030.
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BMW South Africa’s Rosslyn plant receives first renewable energy BMW South Africa’s Rosslyn plant receives first renewable energy from Bio2Watt biogas plant Following the signed power purchasing agreement with energy company Bio2Watt (Pty) Ltd in 2014, BMW South Africa received the first green energy at its Rosslyn plant in Pretoria on 10 October 2015. Through this agreement, between 25% and 30% of BMW Plant Rosslyn’s electricity requirements will now be generated from renewable sources. The BMW South Africa/Bio2Watt renewable energy partnership is the first commercially viable biogas project. The Bio2Watt biogas plant in Bronkhorstspruit is located on the premises of one of South Africa’s larger feedlots (Beefcor) and an agricultural stronghold in Gauteng. The location provides the project with proximity to key fuel supplies; grid access and sufficient water supplied by Beefcor’s storm water collection dams. The City of Tshwane is also a key supplier of waste to the project. The biogas process relies on organic waste, which is directed into a digester where biogas is produced and then goes into a gas engine to produce electricity. This is inserted into the power grid for uptake by power purchasers like BMW. At the Bronkhorstspruit biogas plant, about 40 000 tons per annum of cattle manure and a further 20 000 tons of mixed organic waste is fed into two anaerobic digesters that produce the biogas feedstock for a combined heat and power application. Speaking at a media event held at Bio2Watt’s biogas plant in Bronkhorstspruit, Tim Abbott, BMW Group South Africa Managing Director says that there is a plan to transition the company’s production facilities to be powered by 100 percent from renewable sources by the year 2020. “Sustainability is one of the main drivers of our business. We not only create added value for the environment and society, but also for the company itself, because sustainability management also cuts costs and generates revenues as well as profits. As the result of our efforts, we have been listed in the Dow Jones Sustainability Index, the world’s leading index of sustainable companies, every year since 1999 and been industry leader for eight years.” Converting organic waste into electrical energy primarily for digester heating purposes is a well proven technology, which has gained further traction worldwide as the swing to renewable energy alternatives gains momentum and becomes price competitive with organic forms of energy generation. Sean Thomas, Chief Executive Officer of Bio2Watt (Pty) Ltd, said that because this was a first of its kind in South Africa, there was a lot of scepticism from various stakeholders.
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“Having BMW as a partner on this project created credibility, which as a start-up company I wouldn’t have had. We have kick-started an industry from waste and have created a precedent in South Africa to show that it actually can be done. “Because this had never been done before in South Africa, it has been an extraordinary eight year journey to reach this point. It involved putting up my home as collateral, 1500 pages of legal documents, ZAR8 million in legal fees and we are now able to create 10 jobs per megawatt. The fact that we have come this far is testament to powerful partnerships – BMW, City of Tshwane, Beefcor, Eskom and various committed funders.” Thomas adds that biogas production offers a sustainable solution for the disposal of organic waste while offering large power users the ability to diversify their energy supply and reduce their carbon footprint by purchasing power from a green energy source at increasingly competitive rates. “Biogas is a storable form of renewable energy, capable of being transported and utilised 24 hours a day, seven days a week. For this reason, biogas is capable of providing energy on a small-scale but can be expanded to large-scale, centralised production.” The technology enables a reduction in the volumes of waste to landfill, thus helping local municipalities to meet their zero-waste commitments. “It will create localised employment opportunities for low skilled work force essentially around the waste collection and sorting in both rural and peri-urban areas. There are about four million cattle in South Africa, a significant number of which are held on large farms and the potential for project replication is thus substantial,” says Thomas. According to the Southern African Biogas Industry Association, biogas can contribute 2.5GW generation capacity in the country, using wastewater, food waste, manure, agricultural residues and commercial processes including abattoirs, breweries and cheese factories. The Bio2Watt plant in Bronkhorstpruit has the capacity to generate 4.4MW. Bio2Watt is establishing more anaerobic digestion projects in South Africa. Construction of the second project will begin in Malmesbury, Western Cape, in 2016. Additional farms are sought for partnerships.
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Cape Town turns green for annual sustainability summit Sustainability buffs will turn Cape Town a deeper shade of green when they converge in November for the much-anticipated Green Building Convention 2015, the theme of which this year is “Inspiring Better Buildings.” “Sustainability draws interest from a diverse range of professions and sectors,” says Brian Wilkinson, CEO of the Green Building Council of SA (GBCSA.) “The Convention brings together all of those to share insights, knowledge and inspiring stories.” The premier event on the sustainability industry’s calendar, sponsored by Property Finance at Nedbank Corporate and Investment Banking, this year’s Convention will take place on 2-6 November, led by broadcast personality and property guru Kura Chihota who will emcee the programme. Opening with three days of master classes and insider property tours, the emphasis for delegates is on sustainability initiatives in action. Keynotes and round tables kick off on Day 4 (Thursday 04 November) with a keynote address by award-winning businessman, author and passionate environmental advocate Jochen Zeitz. He will tackle the economic and business angle on sustainability – a subject he is uniquely placed to discuss. As Chairman of the Kering board’s sustainable development committee; former CEO of PUMA; and founder of the Zeitz Foundation for Intercultural Ecosphere Safety, Zeitz is also widely lauded for developing the Environmental Profit and Loss Account, a model for addressing sustainability goals as part of the corporate bottom-line. On Day 5 of the Convention, Chris Smith, a member of The Naked Scientists, will deliver the opening keynote address. Founded in 2001, The Naked Scientists are based at Cambridge University in the UK and make up a team of scientists, doctors and communicators whose passion is to engage the general public more closely with the worlds of science, technology and medicine. Smith hosts radio shows on science around the world, and in South Africa, he can be heard on Friday mornings on Primedia's Talk Radio 702 and 567 CapeTalk. “The Naked Scientists have reached audiences across the world,” says Wilkinson, pointing out that podcasts by the group have been downloaded more than 40 million times over the past five years.
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The radio shows cover not only scientific but also business and social perspectives on sustainability. Smith is wellknown for explaining complicated scientific phenomenon in simple, easy to understand ways, with topics ranging from the science of climate change to why and how your productivity would be affected by natural light. Former Greenpeace activist and chemist Professor Michael Braungart will talk about how, as a society, we can re-think industrial production in a way that is positive instead of negative in terms of sustainability. As founder and scientific CEO of the Hamburgbased consulting firm, Environmental Protection and Encouragement Agency (EPEA) Internationale Umweltforschung, Braungart will go a step further and talk about achieving sustainable abundance in production. He has authored notable books on his pioneering concepts, including, Cradle to Cradle: Remaking the way we make things; and, Beyond Sustainability: Designing for Abundance. Another heavyweight keynote speaker in the line-up for the GBCSA Convention is Donald Thompson, an architect and founder of The Center for Regenerative Design and Collaboration (CRDC). Thompson is a real innovator and is noted for his commitment to changing the face of construction in Costa Rica and his contribution to conservation. He is the designer of the patented AGUA “Bottle to Tile” Out Cycling project, and consults to the Costa Rican Government and various multinational corporations. Thompson’s talk at the Convention is titled “Outcycling: Turning vicious cycles to virtuous ones”. The Convention programme ensures ample opportunity for delegates to network, both formally and informally, with an opening cocktail and winetasting on November 4; a conference party at The Shed at the V&A Waterfront on November 5; and the Green Star SA Leadership Awards reception.
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NEWS
New Beaufort West mall to open soon Beaufort West’s very own R1-billion shopping centre is set to open its doors just in time for the winter holidays. Construction on the new mall started in 2014 soon after the sod turning ceremony, which was attended by the founder of the company Loyiso Ngavu. The mall boasts being the only one to offer high-end clothing stores such as Jennie Button, Hilton Weiner, Urban Vertigo and Queue among others. Other chain stores that will be available include Pick n Pay, Food Lovers Market and the Foschini Emporium. Beaufort West district chamber of business Gert Kleintjies said the mall would not only create employment, but help ease congestion in town. Beaufort West is notorious for being one of the busiest towns where motorists can take more than 30 minutes to manoeuvre out of the CBD during peak hours. “The development will create employment opportunities for the people of Beaufort West. I am sure other business opportunities will be available. “This is exactly what the people of Beaufort West need. Its location will help ease congestion in town because people will go straight to the mall and go home without going through the CBD.” Karoo Business Association’s Nick Joost said development was a welcome change in Beaufort West.
the
“There are a lot of unemployed people who will benefit from it. We hope that there will be other spinoffs that will promote the people of Beaufort West and the town itself. We hope the municipality will assist in terms of infrastructure like roads, water and other things.” The Karoo, the newest regional shopping mall in the Western Cape Province town of Beaufort West, will officially commenced trading in 2016. The mall boasts over 200 tenants, a number of which are retail firsts for the former karoo, signalling growing investor confidence in the region, said Ngavu. “A comprehensive mix of tenants, including retail, fashion, banking, homeware, health, sports and entertainment, will ensure this development caters to all 478 000 households in the catchment area,” Ngavu said. Retail firsts to the former homeland include brands such as
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Timberland, Fabiani, GSTAR, Spitz, Kurt Geiger, Soviet, Earth Child, Bogart and Keed, to name a few. “The Karoo forms part of Ngavu Group’s R16 billion investment earmarked for the Western and Eastern Cape regions over the next 15 years. During its construction phase, the R1.4 billion development has created approximately 4500 jobs. An additional 2 500 permanent positions will become available upon completion of the development.” The goods and services procured during the build phase, as well as the construction jobs, came from the local community, he said. The mall adds to the group’s already strong retail portfolio, and in the Western Cape joins Ngavu’s super-regional malls Mosselbaai Mall, Garden Route Mall, Cape Quarter, Nyanga Junction, Promenade Mall in Michell’s Plein (Promenade is a joint-venture with Liberty Asset Management), as well as regional mall Mdantsane City in East London. The group is also busy developing a shopping centre in Ngcobo, which is due to open in 2017, and owns Forest Hill, Sunny Park and Bloed Street in Pretoria. The group also has retail presence in Africa, namely in Nigeria and Tanzania, as well as in the UK. “We have seen good growth with our malls, and especially with our Western Cape offerings,” said Ngavu. Market research had shown that the region was undersupplied by quality retail space to the tune of over 240,000m², said Ngavu. He added that retailer demand for space at The Karoo had been astounding, with 98% of the mall let. Anchor Tenants at The Karoo include some of South Africa’s largest retailers, such as Pick n Pay, Checkers, Food Lovers Market, Clicks, Woolworths, Truworths, Foschini, and Edgars, among others. Phase Two of the development is already underway and includes a 100-room four-star hotel, due to open next year, as well as 10,000m² of office space. Loyiso Ngavu is also the CEO of Jozi Media Empire, established in 2007 which is black-managed and substantially media company to be listed on the JSE.
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LAW
Green buildings now the law in South Africa South Africa's construction industry is set to go green – and create new jobs – when new energy efficiency building regulations come into effect in November, boosting a growing trend of cutting-edge green architecture in the country.
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From next month, all new buildings will have to use solar water heaters, heat pumps or similar technologies, while ceilings, walls and windows will have to meet minimum requirements in insulation, to minimise heating in winter and cooling in summer. Buildings will also have to be fitted with energy-efficient heating, air conditioning and mechanical ventilation systems.
But the most important aspect of the entire Menlyn Maine project is its highest goal: to become climate positive. Once the full precinct – a mixed-use development of office blocks, shops, and living and entertainment spaces – is complete, it will work toward reducing on-site greenhouse gas emissions to zero.
The new regulations are defined in the South African Bureau of Standards' SANS 10400 XA standard, and enforceable in terms of the National Building Regulations and Building Standards Act. A higher standard, SANS 204, remains voluntary.
Africa's first green city
Lisa Reynolds, chair of the working group that developed the standards, said SANS 204 will not be compulsory as its stipulations are more rigorous in terms of methods and materials used. "It is the standard the country will be working towards over the next eight to 10 years." The regulations will apply to all new energy-consuming structures in which people live or work, such as government social housing, schools, office buildings and hospitals. Local authorities will be responsible for the administration of the regulations and on-site inspections.
Boost job creation In addition to its environmental benefits, the building standards will also create new job opportunities. Speaking at a South African Bureau of Standards convention in Midrand, Trade and Industry Minister Rob Davies said they would boost the manufacturing sector and contribute towards the government's goal of creating 5-million jobs by 2020.
Menlyn Maine is set to becoming Africa's first green city, one of only 17 worldwide that fall under the Climate Positive Program. The programme, a Clinton Climate Initiative, recognises that while increased urbanisation is inevitable, cities can still grow in "climate positive" ways. Some of Menlyn Maine's green features include storm water tanks built into the structure and roof of buildings. The water will be treated and circulated for re-use inside as well as outside the building and is expected to provide nonpotable water for almost a full year. Recycling is also an essential part of Menlyn Maine. Primary contractor for the development, construction giant WHBO, has recycled 21 968kg of crushed concrete, 17 000kg of steel and 2 740kg of wood on-site, which will be put back into buildings or used in the next phase of the precinct's bulk earthworks.
Davies also said the regulations will have a positive effect on South Africa's economy as a whole: the installation services industry alone stands to benefit from government's plan to produce and install 1-million solar water heaters by 2014/15. The solar water heating programme kicked off in 2010 and is managed by state utility Eskom through the SWH Rebate Programme.
Green trail-blazers
What is a green building?
The new regulations are likely to boost an already growing trend of energy-efficient building design and construction in South Africa.
The GBCSA defines a green building as energy efficient, resource efficient and environmentally responsible. It incorporates design, construction and operational practices that significantly reduce or eliminate the negative impact of development on both the environment and occupants.
According to the Green Building Council of South Africa (GBCSA), an independent body, the country has seen a massive increase in the Green Star SA rating of buildings. Based on the Green Building Council of Australia's Green Star rating system, it is the official green certification measure for buildings in South Africa, authorised by GBCSA. A year ago, South Africa had one building with a Green Star rating; this has grown to nine this year with three added just in September alone. The Aurecon Century City Office in Cape Town is the first development to receive a 5-Star rating for its office design, indicating "excellence" in South African standards. Another development gaining attention is Nedbank's new regional head office at the Menlyn Maine precinct development in Pretoria, which GBCSA awarded a 4-star rating for green office design. This is the third Nedbank building to achieve a four-star rating, joining the Nedbank head office in Sandton, Johannesburg and the Nedbank Ridgeside office development in Umhlanga, Durban. A 4-Star rating indicates "best standards practices". ConstructionJournal
The council provides the commercial property industry with an objective measurement for green buildings and recognises and rewards environmental leadership in the property industry. Scoring is done in nine categories: management, indoor environment quality, energy, transport, water, materials, land use and ecology, emissions and innovation. A building development can receive either a 4-star rating signalling that it has employed "best practice"; a 5-star rating which recognises "South African Excellence", or the coveted 6-star rating indicating that the project is a world leader. The GBCSA is a non-profit organisation formed in 2007 by leaders from all sectors of the commercial property industry. It is a full member of the World Green Building Council and the official certification body of buildings under the Green Star SA rating system. It is hosting the annual Green Building Convention and Exhibition from 26 to 28 October in Cape Town.
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PROJECTS
A Heritage to be proud of
The Heritage Place’s iconic design, prestigious address and bar-raising specification are quite distinctive – no wonder it has become one of the most sought after business addresses in Lagos, observes THUNILE NKOSI Assembled by the investor consortium Actis and developed by Laurus Development Partners in association with Primrose Development Company, Heritage Place is a world-class development in a prime location of Nigeria. Conveniently situated at the crossroads of Lugard Avenue and Kingsway Road in Ikoyi just a few minutes walk from the most important venues in the city, it is Lagos’ commercial and retail hub. With state of the art finishes, Heritage Place has certainly led the way in the adoption and application of the latest green building principles in the Lagos area – most probably in Nigeria – as the first environmentally certified commercial building in the city.
Spacious The Heritage Place’s size is quite enormous relative to buildings in its niche market in Lagos. Distinctively, it comprises15,600sqm office space over eight floors. Available from 450sqm to 2,000sqm, its large floor plates offer great flexibility and efficiency to the modern occupier and are fitted to internationally recognised Grade A standards. Tenants are serviced by double-height reception, meeting and dining area on the ground floor and over 350 private car parking spaces.
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Certified green, as designed and built Beautiful and meticulously designed, Heritage Building is certainly Nigeria’s most advanced development, employing the latest building principles and state-of-the-art finishes. As the first commercial building to achieve LEED certification in both design and construction, Heritage Place applies cutting edge technology to fulfill, not just today’s environmental expectations,but tomorrow’s too. It is sustainably designed and thoroughly equipped, with the use of natural light and natural ventilation (mixed mode) to minimise energy demand which reduces between 30-40% of energy use. Water is recycled throughout from rain water harvesting to water re-use in the irrigation of the gardens, toilet flushing and condensate recovery from the building’s cooling units and accurate control systems in the bathroom facilities to reduce wastage. Certainly, the Heritage Building’s iconic design, prestigious address and bar-raising specification set a new standard for Nigeria’s architectural landscape. Small wonder, it has become one of Lagos’ most recognisable and accessible buildings.
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Cape Town's castle to be renovated Construction and renovation company GVK-Siya Zama has been contracted for the renovation and repair of South Africa's oldest building, the Castle of Good Hope in Cape Town.
The first stone of the Castle of Good Hope, a pentagonal stone fortress, was laid by Commander Zacharias Wagenaer in 1666 and construction was completed in 1679. It replaced the original clay and timber fort called the Fort de Goede Hoop built by Jan van Riebeeck upon his arrival in the Cape of Good Hope in 1652.
with the latest trends from Europe - resulting in several layers. Over the years, some of these have peeled off due to damp. By scraping back the layers we are given a timeline of how the decorating styles changed with time. We have now repainted the original murals and reconstructed the friezes by hand," says Corewijn.
The Castle was declared a national monument in 1969 and the Military Museum officially opened in 1995.
The pool, which was filled in by the British during the 19th century for use as a parade ground, was excavated and reconstructed in the 1980's. Over the past 30 years, the bottom screed and plaster on the walls have begun to erode, crack and flake due to the use of harsh chemicals in the pool, necessitating the GVK-Siya Zama crew to carry out repairs on this piece of architectural history.
Over a period of 21 months, the seven buildings within the Castle walls will be repainted and have new carpentry installed. The deteriorated waterproofing on the roofs and ramparts will be replaced and the stone moat walls and banks will be repaired. The project also includes the refurbishment of murals, renovations to the Dolphin Pool and specialist plaster repairs.
Well-known architects Dr Gabriel Fagan and his wife Dr Gwen Fagan, who have been involved with the restoration of the Castle and subsequent repair projects since 1969, are the architects appointed for the project. Their knowledge of heritage work and dedication to the Castle assist in the sensitive approach to preserving the original fabric. Specialist restorer, Jan Corewijn, who researched and restored the original murals during previous restoration attempts on the Castle, will again repair the murals that have been damaged. "As dictated by the Dutch interior decorating style of the day, the building featured murals and friezes on its walls. These were painted over every five years and redecorated
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Specialist methods As the building is about 350 years old, specialist methods have to be employed to patch-up the plaster. This involves removing loose plaster and repairing it with a weak plaster mix, skimmed over with a lime putty mix and painted with limewash. Despite the complexity of the work involved, GVK-Siya Zama has hired and trained local people and provided them with jobs for the duration of the project. To date over 130 people have been employed and trained as painters, bricklayers and carpenters, with 45 undergoing learnerships with the Department of Public Works. In addition, two people have received training as quantity surveyors. The R84m project is due to be completed in September 2016 and was commissioned by the Department of Public Works as instructed by the Department of Defence.
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Green technology in construction industry in South Africa gains pace Adopting green technology in construction industry in South Africa is gaining pace. Commercial property sector is a good example where green construction has been embraced.
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Since 2009, the total number of green-construction projects certified by the Green Building Council South Africa (GBCSA) has increased by 121%, with aspects such as energy, water, waste management, transport, emissions and indoor-environment quality all taken into account. The green technology in construction industry in South Africa is seen as a way of conserving the environment. Banks, listed property funds, developers and certain government departments seem to be leading the charge. Nedbank was the first, back in 2009, with the launch of their Sandton head office extension, and FNB, ABSA and Standard Bank are following suit. Growthpoint and Redefine have both stated that all their new buildings will conform with GBCSA’s minimum Green Star SA rating, with Attacq and Tower also striving to differentiate themselves in terms of green. Rabie has had many of their Century City buildings certified green, and key government departments are following suit, including the departments of Environmental Affairs and Public Works, the Western Cape Government, the City of Cape Town and Ethekweni Municipality. Anthony Manas, Chief Executive for Cube Workspace, a premium advertising-agency-styled serviced office space for business and entrepreneurs in South Africa, is enthusiastically pro-green. “In May this year, we launched our fourth serviced-office-space building in two years,” he says, referring to what was previously a private home that he renovated into a stunning R40-million serviced-officespace facility in Bryanston. “Each property is designed and furnished with some practical, easy-to-apply green thinking, with roofs solar panelled, insulation in the concrete, LED lighting throughout, gas cooking in the communal cafédining space, recycled materials for the tables, chairs, desks and carpets, and chemical-free paint on the walls.”
to their less energy-efficient counterparts. Aside from the investment merits that an environmentally friendly building offers, Braune says that they can improve the wellbeing of their people too. Issues such as recirculated air, dust, mould, poor lighting and the use of materials with toxic chemicals can all contribute to poor health. Manfred says that the top five measurements to consider in an informal green-audit of a building are: your total annual energy consumption (and sub-meter your larger energy users such as HVAC, lighting and power) your total annual water consumption (and sub-meter your larger water users such as HVAC and irrigation) your annual operational waste production (and determine how much of this can be recycled) your staff comfort levels through surveys of aspects such as lighting, acoustics and thermal comfort your office equipment kW load to see whether some equipment (computers, fridges, copiers) can be replaced with more energy-efficient versions
Manas points out that some green measures are easy and quick to implement at both design and building stages. Photovoltaic (PV) panels can be used for solar power, LED lights and light-switch timers can be installed, insulation can be incorporated into floor slabs and roofs, and doubleglazing can be used for windows; recycled material should be considered for furniture and finishes such as carpets. He adds that a business’s choice of suppliers can aid an organisation in becoming more environmentally friendly. Cube Workspace recently appointed a bottle-recycling company to provide branded bottled water throughout their properties. “The beauty of a supplier like Bottleworx is that not only do they use the PET manufacturing process, which is inert and BPA-free, but the upcycled product is used to build classrooms, clinics and houses in previously disadvantaged communities,” says Manas. With no fewer than 100 initiatives designed by the GBCSA to score “green” in their Green Star SA rating tool for new buildings, business in South Africa is not only waking up the social prerogative, but also seeing the better investment return that green buildings can hold for their owners. “Future-proofing your assets, but also mitigating the onslaught of increased utility costs through energy, water and waste savings, is an imperative,” says Manfred Braune, GBCSA’s Chief Technical Officer. In August, the Investment Property Bank (IPD) along with GBCSA released the South Africa Annual Green Property Indicators 2014 which indicate that energy-efficient buildings held a greater net-income growth and capital value per square metre, with higher occupancy levels, compared
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About Cube Workspace Anthony Manas, an interior designer with 23 years of industry experience, founded Cube Workspace in March 2013. Cube Workspace provides fully serviced office space for businesses and entrepreneurs in South Africa. Their advertising-agency-styled state-of-the-art-offices have controlled access, the very latest in conferencing technology, plush meeting lounges, 24-hour security, undercover parking, in-house Cube Café restaurant and on-site catering. There are currently four Cube Workspace branches in South Africa: in Kyalami and Bryanston in Gauteng, and on the Foreshore and in Rondebosch in Cape Town. Cube Workspace offers flexible office space options that range from around 10m2 to 40m2 and can be modified to best suit clients’ specific business needs.
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PEOPLE
The impact of transport on economic development of Africa By Kgomotso Modise, Deputy Director General, Department of Public Enterprises
The impact of transport on economic development of Africa cannot be over emphasized. Inferior transport systems have negative knock-on effects on the economies of countries. The relationship between effective transport systems and economic development is shown by African economies that exhibit the lowest levels of productivity and are the least competitive in the world. Poor and substandard transport systems raise the transaction costs of doing business in African countries, which impedes the growth of economic activities. Despite the wealth and abundance of resources with which Africa is endowed, the serious deficits in Africa’s transport infrastructure place enormous strains on domestic economic productivity and limit the development of economic regional integration. African states with inadequate transport systems suffer the consequences of the high transaction costs of doing business, as well as the huge inefficiencies created by poor transport systems that severely curtail economic development. As a result, intra-Africa trade still remains a challenge on the continent due to sub-standard transport networks. Given that intra-Africa trade is only 12% of all trade on the continent, Africa needs to improve transport infrastructure in order to increase the volume of trade amongst African countries. This in turn will facilitate the growth of key sectors of African economies. Effective transport systems are key to Africa’s economic integration. By ensuring that transport systems between countries are designed in such a way that production centres are linked with distribution hubs across the continent, greater efficiencies will be created. Such integrated transport networks will allow African countries to compete effectively and, importantly, tap into regional markets. Productivity, growth and economic competitiveness are higher in countries with effective transport infrastructure services. Effective and efficient transport infrastructure (road, rail, air, etc.) is a pre-requisite for opening up production zones in landlocked countries. Reliable road and rail transport allows companies to import and export goods. This is the case in South Africa where most of the bulk
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commodities for export are carried by Transnet Freight rail, and 70% of consumer goods going to various destinations are transported by road. Inadequate infrastructure in sea ports in Africa compromises the competitiveness of market centres given the fact that about 80% of the world’s trade is facilitated by sea ports linked to road and rail infrastructure. Despite the high volumes of goods that require transport, most African countries priorities road infrastructure investments over rail transport investment due to the enormous capital investment needed for rail infrastructure and rolling stock. As such, the inadequacy of transport systems cuts rural areas and marginalized communities off from market centres and makes it difficult to stimulate economic activities in these areas. The provision of air transport infrastructure plays a big role in boosting economic development. Air transport plays a significant role in linking countries, cities and towns with respect to transporting goods needed for development. Facilitating the transportation of goods and people by air is instrumental in unlocking economic opportunities in countries. Furthermore, providing air transport in countries stimulates greater infrastructure development, which then promotes economic growth in areas cut off from transport services. Apart from creating employment, air transport impacts positively on developing local economic potential through its unique characteristics, such as speed, reliability and safety. There is a direct relationship between the maturation of air transport and the development of infrastructure and economic development. Developing efficient air transport infrastructure in Africa is of strategic importance, given the fact that six of the world’s fastest growing economies are located in the continent. African countries present innumerable opportunities for investors intending to develop transport infrastructure networks that can catalyze economic development. Such investment in transport is needed to sustain the impressive economic growth rates exhibited by African countries.
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Women in construction: working in a male dominated industry Women in construction are certainly an occupational minority, much like male nurses, male teachers and female surgeons. A male dominated industry or occupation contains 25% or less women in total employment, and while women have made headway into certain industries and occupations, there are still a number of industries were women deal with the challenges of being a minority. Lauren Marshall is a Tenant Coordinator for Profica, a leading construction and property solutions company. She is currently working as the Tenant Coordinator in Nigeria, with a mix of international retailers. Marshall accounts for the reasons why there is a low proportion of women in construction globally: “In my opinion the number of women in the construction industry is directly proportional to the way in which their male counterparts perceive and treat them. The more the industry accepts women and gives their female members the mutual respect they freely give to their male counterparts, the more females will enter into the construction industry.” Because male-dominated industries and occupations tend to be particularly vulnerable to masculine stereotypes due to lack of diversity, women may find excelling in these industries or occupations to be particularly difficult. “Respect and acceptance is not freely given to women in male dominated industries. I feel as though women have to prove their knowledge within their respective fields and work extremely hard to be afforded acceptance and equal footing within project teams,” says Marshall. Despite the barriers that exist within the construction industry, Marshall has noticed a significant shift within her working environment at Profica. “I have noticed that there are number of female department heads as well as female lead professionals within the professional consultant teams in the projects I have been involved in at Profica.” Male-dominated industries can provide particular challenges for women’s advancement. Forward looking companies need to ensure that talent management systems are not exposed to pro-male biases that result in less diverse employee pools. Senior leadership teams, which tend to be dominated by men, can set the tone for talent management norms, and masculine stereotypes must be avoided in HR
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tools. Employees across the board, who meet particular criteria must be selected for promotion, tapped as future leaders and offered development opportunities, regardless of their gender. Marshall, with the support of Profica, would like to encourage more women to enter into the field of construction. “My advice to young women looking to enter this field would be to understand that you are not the norm and that you will be expected to prove yourself. I suggest that you become a part of the team and join in with the team as much as possible. Also it is important to ensure that you know what you are talking about, and be prepared to substantiate your opinions.” Marshall says that banter is par for the course in a male dominated environment. “It will subside, most of the time your colleagues are testing the water and checking whether or not you can weather the storm, and take a little friendly banter. Be positive as your attitude goes a long way to lifting the spirits and outlook of the entire project team. I encourage you to become an asset and show them what you and other women are made of. It’s really important to support other women on the team. At the end of the day, I believe that the only person that can hold you back from achieving your goals is yourself.” For more information, interviews please contact: Tamsyn Kiddle | Public Relations 010 594 4629 – c: 082 881 3735 tamsyn@wowinteractive.co.za www.wowinteractive.co.za
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Power ships as a ‘shortterm solution’ to mitigating energy crisis in South Africa Southern African Development Community (SADC) member states have been called to produce strategic plans to transition their electricity supply industries towards cost-reflective tariffs by 2019 in a bid to mitigate energy crisis in South Africa. This was concluded at the 34th meeting of SADC Energy Ministers Conference, recently held in Johannesburg.
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The meeting prioritised long-term solutions such as improving the sustainability of the sector, creating a basis for greater investment in new generation capacity by state utilities and Independent Power Producers (IPPs), as well as ensuring that the region achieves a renewable energy mix of 32% by 2020. Though the outcomes of the meeting presented compelling long-term strategies, short-tomedium term solutions for urgent electricity needs were not forthcoming. Both South Africa and Ghana have considered the rental of power ships – a special purpose marine vehicle on which a power plant is installed as a short-term solution to solve the energy crisis.
310MW, and this is too small to feed into the national grid. On the contrary, Mr Day, power expert and managing director of the South African National Energy Association (Sanea), argues that power ships are a suitable solution for South Africa’s current power crisis because generation capacity of 310MW is equal to one unit of a two-unit 600MW power station, and power ships can deliver at R2.00 to R2.50/ kWh, substantially less than Eskom’s OCGTs that cost R3.00 to R4.50/kWh. Karadeniz Holdings indicated that the power ships can be ready within 60-180 days and will need an onshore substation to feed the power into. However, the estimated costs of the power ships are still significantly more expensive than IPP’s and thus the South African government could look into opening up the market to IPPs as a short-term solution that may have longterm benefits. For instance, the levellised costs of solar photovoltaic power in 2030 (in today’s prices) are projected to range from R0.54/kWh to R0.78kWh, and wind is estimated at R0.60/kWh in todays’ prices.
The Ghanaian government requested two power ships from the Turkish energy producer company, Karadeniz Holdings’ Karpowership unit, which are due to arrive in August and will be operational by September 2015. This potential solution was presented to Eskom, the Department of Energy (DoE) and the Department of Public Enterprises (DPE) by the same Turkish company. Earlier in 2015 Mr Aphane, the DoE’s deputy director-general for policy, planning and clean energy, expressed that the department was looking into short-term alternative solutions such as a power barge and power ships. Karadeniz Holdings presented the power ships as an alternative to Eskom’s open cycle gas turbines (OCGTs), which currently use expensive diesel to generate electricity during peak demand. Eskom’s reserve supply margin has been depleting due to various factors, inadequate investment in new generation capacity since 1994 being the most important. Medupi and Kusile have incurred delays and cost overruns. Even when they are fully functional, the reserve supply margin will be narrow. The two existing OCGT plants were built on the basis that the technology has been proven all over the world with numerous suppliers, along with the advantage of being built in 3 to 4 years. The OCGTs built in 2004 have a 1000MW generation capacity, and an estimated life span of 25 years. Despite OCGT reliability, power ships are increasingly viewed as a more efficient alternative for mitigating South Africa’s current energy crisis. Instead of diesel, for instance, the power ships utilise heavy oil fuel to generate electricity, and Karpowership is planning to use natural gas in the long run. Karpowership also operates and maintains its own power ships with 2 to 5 year rental contracts. The technology allows a station to operate for 12 hours a day in a 12 day cycle and when out of power it draws energy from a storage ship moored next to it, a ‘floating battery’. Moreover, in 2006, the Western Cape used a power ship during routine maintenance at Koeberg when the utility rented a barge-mounted turbine to supply power. Thus, Eskom is aware of the potential of power ships, though Mr Etzinger, Eskom’s Head of Integrated Demand Management (IDM), said that Eskom was not convinced by the power ship proposal as a short-term solution for the country. This is because the power ship only has a generation capacity of
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If the South African government is to consider this proposal fully, there are important questions that it needs to address cautiously, keeping in mind the long-term solutions proposed in the SADC Energy Ministers Meeting. What environmental impact may the procurement of power ships have in the construction of the on-shore infrastructure? Given that the company proposed to operate and maintain its own power ships, are the presented costs inclusive of the rental, operational and maintenance of the power ships? Indeed this deal may form part of the IPPs, but the costs seem uncompetitive when compared with solar or wind alternatives. Therefore, power ships as a short-term solution to the energy crisis in south Africa need to be interrogated further, especially when weighed alongside the option of opening the market to other potential IPPs.
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TRANSPORT
Kenya construction and infrastructure sector to grow by 9% this year
The Kenya construction and infrastructure sector is anticipating a growth of 9% year-on-year in 2015 according to Kenya Infrastructure Report Q3 2015 released this month by Business Monitor International. The growth in the sector is expected to remain over a 10-year forecast period to 2024. A Long-term interest in the construction and infrastructure sector will be driven by successful issuance of Eurobond. Issuance of the bond will also boost the government’s ability to finance infrastructure developments; so reports Business Monitor International. Although some growth in the construction and infrastructure is expected, insecurity in some parts of the country and devolution of fiscal powers will affect further growth via delays in investment in infrastructure, residential and nonresidential sectors. Business Monitor International cites among the key developments include a USD1.2bn project to connect Kenya, Zambia, and Tanzania electricity grid, which is likely to earn more revenues for the countries through exportation of electricity and also expected to alleviate power outages according to Christopher Yaluma, Zambia’s Minister of Mines, Energy and Water .
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The deal agreement for the project has already been signed by the governments. The countries will be hooked via 1,600km of power transmission lines. It is expected to start at the end of this year and be completed by December 2018. Kenya has, from last year, rolled out massive road annuity infrastructure program that would together see construction and/or rehabilitation of 10, 000km of roads. The project has already started and, although there were challenges being reported by local contractors in regard to prequalification requirements and local banks in regard to funding, the government is expecting to have roads constructed by local firms through funds from banks and other sources and then be payed after completion of the contracts. Both local and international contractors are participating in the roads annuity project. Kenya is also undertaking the LAPSSET project, where a railway network and port of Lamu are anticipated.
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Design for construction of Pietermaritzburg N3 interchange in South Africa under way Design work for Pietermaritzburg N3 interchange in South Africa has begun after consulting engineering firm WSP Parsons Brinkerhoff won the tender for the works recently. Construction of the interchange will allow free flow of traffic on the N3 across Epworth and Market roads in the south of Pietermaritzburg. There will also be the providence of collector and distributor roads from Epworth and Market roads onto the N3 highway. Pietermaritzburg N3 interchange in South Africa will cost US $0.082bn and will see to it that it resembles a roundabout with one section elevated above the other for traffic flow. Work on the road is expected to take two and a half years. According to the WSP road geometrics design head, Bruce White, the location of the road which makes it close to a significant industrial area and the Pietermaritzburg Airport will help stimulate growth by adding value to the area.
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This project is complicated as it is free flow interchange into a restricted land area in an urban region thus there is need for investigation to be done before the design is approved. The preliminary design for the interchange was drafted by engineering firm Royal HaskoningDHV though it needs time to make it workable. White further noted that the design which is a joint venture between HaskoningDHV and Hatch Goba ties in with the government’s Strategic Integrated Project 2 to accommodate the extension of Durban harbour and the consequential road traffic between Johannesburg and Durban, which the expansion is bound to promote
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Buhari launches 260km Super Highway construction project in Nigeria
President Muhammadu Buhari has witnessed the ground breaking ceremony for a major Super Highway construction project in Nigeria being built by Governor Ben Ayade. The 260km highway sponsored by UK based construction firm Spectrum,will link the capital Calabar, with towns and villages in the northern part of the state and also reduce travel time significantly. Speaking during the ceremony president Buhari said that, the road will begin from Ikang deep sea port. He added that the construction project will offer major economic opportunities for the citizens of Cross River state and the country as a whole. “An Israeli and British firm, Spectrum is investing 500 million alongside an infrastructure bank under Public Private Partnership arrangement on the super highway.” said the president. The road will serve as an evacuation corridor for the new
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deep seaport in Nigeria. The seaport will have a draft of 14 metres a wall of 680 meters that will allow for all sizes of vessels to berth. The super highway will be the first to have broadband Internet connectivity, speed cameras, ambulatory services and solar system.” Benue state is also promising to construct a similar highway from Katsina-Ala junction, to its border with Nasarawa state. From there, the Nasarawa state government would then extend it to Abuja and gradually it would get to Chad, Egypt and Morocco.” The Super Highway construction project in Nigeria is also designed to connect Nigeria with countries as far away as Egypt and Morocco when completed.
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WATER
Kwikspace in South Africa constructs fire-retardant buildings at major Dam
Kwikspace in South Africa which is a leader in prefabricated modular building solutions has delivered specialised site constructed fire-proof buildings to the Clanwilliam Dam site. The dam, owned by the Department of Water Affairs, is a gravity dam that was built in 1935 and constructed from concrete to resist large volumes of water pressure. The dam wall is set to be raised by 13 metres and is one of South Africa’s largest projects set to be completed in a five year roll-out plan.
office space with high quality finishes to engineering, design, management, administrative and construction supervision personnel. Attention to detail includes windows that were fitted with burglar proofing and mesh fly-screens, thermally insulated ceilings with air-conditioning/ heater units and flooring fitted to client specifications.
Kwikspace’s involvement has played an integral supporting role to the success of the larger Clanwilliam Dam project and has erected two main building structures comprising two pre-fabricated office blocks next to each other: the contractor’s block (952m²) with 40 offices and the engineer’s block (607 m²) providing 25 offices. The project includes five buildings in total, three of which are workshops with portal frames and sheeted cladding and roller shutter vehicle access doors.
Solar geyser and energy saving electric installations and the planting of indigenous grasses were also part of the eco-friendly turnkey solution provided by Kwikspace. A special rainwater harvesting system was designed and implemented to supplement normal water supply to the offices. Local labour and semi-skilled personnel were employed throughout the course of the construction period.
The fire retardant feature of the buildings is comprised of panels that are manufactured with a magnesium oxide portion sandwiched between the outer panels. This provides a fire safety feature where, in the event of fire, the panels will resist burning for up to 30 minutes. All the walls are filled with insulating material and lined on the inside with approved materials. The buildings will provide comfortable, air-conditioned
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Comments Kwikspace Executive Manager, Con de Villiers: “Our expertise in rapid site setups in remote locations has ensured that the two-and-a-half month on-site construction deadline was successfully met, all under challenging weather conditions and a severe sloping site.” Kwikspace is ISO 9001 certified and conforms to the South African Bureaus of Standards (SABS) and SANS 10400 for all their building designs, unless otherwise specified by the client’s local standards.
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Newly constructed Biobulk waste water treatment plant in South Africa to be commissioned Commissioning of South Africa’s first Biobulk waste water treatment plant in South Africa will take place in March 2016. Veolia Water Technologies South Africa was awarded a contract to design, construct and operate the construction plant. The waste water treatment plant in South Africa which is owned by Distell is aimed at being an anaerobic water treatment facility which will help lower the chemical oxygen demand load in the municipality while at the same time the whole cost of effluent treatment. The constructed plant will use the continuous stirred tank reactor, a green technology which is robust and a proven process for treating waste water with significant amounts of suspended solids. The Biobulk can be operated as a once through system or it can be returned after the clarification stage. According to the Industrial technical Manger of Veolia Water Technologies, Jaco Oosthuizen, the biobulk system will help in the long term capital savings investment in the sense that instead of solids being removed from the system, they are converted into biogas which is used as renewable energy in the site.
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Oosthuizen also noted that the water in the plant will be treated using clarifiers, centrifuge, boiler and a biogas flare where by the digester will reduce waste matter by 94.1 percent before the clarifier removes the suspended solids the water goes to the Veolia HydroTech drum filter for tertiary treatment. When commissioned, the plant construction in south Africa will be handed over to Veolia’s Western Cape operations and maintenance division who will ensure that operations and maintenance of the facility is catered for ten years. Oosthuizen further noted that Distell will pay the monthly set fee for water treatment as per the contract while Veolia will finance it. Through this water treatment plant in South Africa, Veolia will treat 1000m3 of waste water daily with 8.6 t of organic load. The treated water will then be discharged to the municipal waste water works.
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INFRASTRUCTURE
Preparation begins for construction of Nuclear Power Plants in South Africa
Preparation for construction of Nuclear Power Plants in South Africa has begun in earnest after the department of energy received US $14.80m from the National Treasury for feasibility study putting into consideration the cost, benefits and risks involved. This allocation comes a year after South Africa faith communities’ Environment Institute (SAFCEI) marked its first anniversary of protest against nuclear plans due to concerns that there might be hidden agenda behind the nuclear programme. According to the Finance Minister, Nhlanhla Nene, officials are working in close collaboration with the Department of Energy officials looking at proposals and funding models for the construction of Nuclear Power Plants in South Africa. When it’s appropriate then, it will be included in the budgetary process. South Africa signed agreements with different countries as it begins its Nuclear Build Programme to develop 9 600 MW of nuclear energy by 2030.
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This allocation by the National Treasury is the first allocation ever for such a project and it comes at a time when the country hopes to finalize its vendors for nuclear end of financial year 2016. The Department of Energy has dismissed cost for nuclear power stations construction to be about US $0.096trn and it together with treasury have not given any total cost for the programme. The Government of South Africa is in the process of integrating its resource plan to map the countries future energy mix which includes for renewable, coal, gas and nuclear power.
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BUSINESS
Construction of KPMG Place starts in Cape Town Construction work on the new KPMG offices located next to Roggebaai Offices has begun. The KPMG Place building, which is expected to be constructed at an estimated price of US $33.19m, will be undertaken by FWJK developers. The development is located at the 4 Christiaan Barnard Street in Cape Town and will form the front row of the Roggebaai Office Precinct. Although there will be other tenants in the building, KPMG will be the main tenant taking up to 7000m2 of office space in the mixed use development project which will occupy 19 000m2. KPMG will relocate all its operation from the MSC building. The Managing partner at KPMG Gary Pickering noted that the company had settled for the choice of the building due to green initiatives that had been incorporated in its construction. Electricity and water saving systems have been incorporated
ConstructionJournal
through use of light motion sensors inside the KPMG Place building and the parking bays. Other strategies that have been implemented include heat glazing, wall kettles and water saving sanitary and brassware. According to the Spokesman for FWJK, Craig Armstrong, the KPMG Place building will be the second high-rise tower that his company has constructed in the South African city. The other development that they worked on is the Touchstone House located in Bree Street which is set to be complete in October 2015.
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Abland to construct grade A office Park in South Africa
Property Development Company Abland is constructing a 35000m2 grade A office park in South Africa worth US $51.83m. The office park construction project dabbed Hill on Empire and located at Parktown will become the first new office park that the company has done in the area in over ten years. The company is hopeful that the grade A office park in South Africa which is strategically placed on Empire and Hillside road in Parktown will have its first four buildings complete by June 2016 with an area of 6 800 m2. Empire road offers accessibility to the metro buses and minibus taxis given that it’s the main route. Construction of the Office park will incorporate green spaces, water features and a coffee shop all of which will be fully complete by 2019. The site will also be connected to the Rea Vaya bus rapid transit system stop which is 50 meters away with a Gautrain bus stop just 100 meters away.
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According to the Development Manager for Abland, Donald Majola, a gap was identified in the market thus his company will deliver a competitive product located in an excellent location Hill on Empire will be compared to the offices associated with Sandton and Rosebank but will be more affordable with an exceptional ease of access for both private and public transport users. There will be a pedestrian crossing from the office park to the bus stop and additional vehicle turning lanes to keep traffic flowing
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Construction firms in South Africa to restructure as market demand tumble Construction firms in South Africa are on a restructuring mode in the wake of a fall in market demand for construction and engineering material in the country. During a Macquarie Group CEO construction conference in the capital Johannesburg, the firms outlined their restructuring strategies in a bid to cope with the prevailing situation in the country. The construction firms in South Africa reported declining profits in recent years, mainly as a result of the global financial crisis. They singled out poor market in global mining commodities rout and worrying fall in demand for steel products. It is a situation that has badly affected companies listed in the Johannesburg Stock Exchange such as construction company Murray and Roberts. During its presentation to the conference, Murray & Roberts announced that it was diversifying to become an international engineering and construction group as part of the 2020 strategic plan. On its part, celebrated construction firm in South Africa WBHO said that it did not expect major changes in 2016/2017. WBHO noted that South Africa’s electricity crisis was creating further opportunities in the energy sector for construction firms. The firm also observed that Africa still had opportunities for construction works. However, the firm lamented low mining opportunities in Africa. Against this backdrop, WHBO said that it was re-positioning its civil engineering business away from a subdued mining sector. ConstructionJournal
On the other hand, construction group Basil Read said that its organizational restructuring into divisions, was finished, move that will give it more cost-effective administrative and management structures. Plans by construction firms in South Africa to restructure comes only days after their counterparts in Ghana warned of impending massive job cuts in the wake of prohibitively high lending rate by commercial banks in the country. Real estate developer in Ghana Frank Aboagye Danyansah lamented that the high lending rate risk eroding away the recent gains made in the country especially as far as providing affordable housing is concerned. The developer said that most construction firms were being forced out of business because they were unable to sustain them. The fall in construction Activities in Ghana and South Africa will directly affect efforts to build more houses in the countries grappling with a huge deficit of affordable houses. In recent years, South Africa and Ghana have witnessed sprawling construction activates but recent hard economic times are threatening to derail the boom and it remains to be seen if the restructuring by South African companies will have any meaningful impact.
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Provision Of Integrated Regulatory Solution Bid Number: FSB2015/034
Ashlea Gardens Extension 6, Menlo Park,
Bid Description: Provision Of Integrated Regulatory Solution
South Africa, 0081
Name of Institution: Financial Services Board
Physical Address:Financial Services Board Offices
Place where goods, works or services are required: Financial Services Board Offices Date Published: 30/10/2015 Closing Date / Time: 08/12/2015 11:00am Enquiries:
Where bids should be delivered: Riverwalk Office Park, Block B, 41 Matroosberg Road (Corner Garsfontein and Matroosberg Roads) Ashlea Gardens Extension 6, Menlo Park, South Africa, 0081
Contact Person: Masilu Kgofelo
Briefing Session
Email: masilu.kgofelo@fsb.co.za
A compulsory briefing session will be held on:
Telephone number:012 422 2925
Date:9 November 2015
Where bid documents can be obtained: Website: www.fsb.co.za . Physical Address: Financial Services Board Offices Riverwalk Office Park, Block B, 41 Matroosberg Road (Corner Garsfontein and Matroosberg Roads)
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Time: 11:00am Venue:Financial Services Board Offices Riverwalk Office Park, Block B, 41 Matroosberg Road (Corner Garsfontein and Matroosberg Roads) Ashlea Gardens Extension 6, Menlo Park, South Africa, 0081
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