Infrastructure 2021

INFRASTRUCTURE 2021

www.businessmediamags.co.za

UNLOCKING GROWTH IN AFRICA

SUSTAINABLE DEVELOPMENT Falling by GOALS the wayside?

ON-TREND

Mixed-use developments

AfCFTA

Unlocking trading opportunities

16 on Bree, Cape Town.

CONCOR EVOLVES Targets growth

FROM THE EDITOR

INFRASTRUCTURE www.businessmediamags.co.za

UNLOCKING GROWTH IN AFRICA

PUBLISHED BY Arena Holdings PO Box 1741, Saxonworld, 2132 011 280 3000

EDITORIAL EDITOR Nelendhre Moodley 011 280 5782 moodleyne@arena.africa ART DIRECTOR Shailendra Bhagwandin 011 280 5946 bhagwandinsh@arena.africa SUB-EDITOR Andrea Bryce

SALES ADVERTISING CONSULTANTS Ilonka Moolman 011 280 3120 moolmani@arena.africa Noël van Breda 011 280 3456 noelvb@arena.africa

PRODUCTION PRODUCTION CO-ORDINATOR Gail Mortinson 011 280 5369 mortinsong@arena.africa

CONSTRUCTION SECTOR

CAUGHT BETWEEN A ROCK AND A HARD PLACE

T

he effects of the COVID-19 pandemic continue to bite deep with many companies closing shop or retrenching. The latest unemployment figures are a testament to just how difficult times have become.

According to Statistics South Africa, the official unemployment rate rose to 32.6% in the first quarter of 2021 while the number of employed people remained at 15 million.

With the country well into the third wave of COVID-19, South Africans are bracing for more shocks and more heartache. Last year the construction industry was among the most severely impacted by the hard lockdown, with a number of companies going into business rescue or liquidating.

Now more than ever infrastructure spend is needed as the catalyst to reignite the economy.

But is it still too much talk and too little action?

Each year government allocates billions towards infrastructure development, but the slow pace of project rollout does little to fire up the economy.

However, people interviewed for this edition

Concor.

The company is now eyeing new opportunities in the renewable energy market and looking to establish its own property development portfolio focused on mixed-use developments (pg 2).

Also in this edition, the City of Joburg flags key projects it is busy rolling out (pg 6), and Paragon Architects discusses the surge in appetite for mixeduse developments (pg 26). The FSE unpacks the challenges associated with our water situation (pg 19) and Cova Advisory gives insight into how the AfCFTA agreement will unlock trillions of rand in trading opportunities (pg 14). n

Nelendhre Moodley

CONTENTS

PRINTING Novus Holdings

6

MANAGEMENT BUSINESS MANAGER Claire Morgan morganc@arena.africa

seem to be upbeat, reporting the release of a variety of large-scale infrastructure projects into the market, especially by SANRAL and the Department of Public Works, signalling that industry is at least on the right path.

For many companies in the sector the pandemic has been the catalyst for a revised business strategy focused on a lean operating structure and improved efficiencies, including our cover story,

2

14

GENERAL MANAGER MAGAZINES Jocelyne Bayer COVER STORY

CONCOR EVOLVES: TARGETS GROWTH

© Copyright: Arena Holdings. No portion of this magazine may be reproduced in any form without written consent of the publishers. The publishers are not responsible for

19

unsolicited material. Infrastructure is published by Arena

JOBURG: A CITY ON THE RISE

AFCFTA: UNLOCKING TRILLIONS OF RAND IN TRADING OPPORTUNITIES

26

Holdings. The opinions expressed are not necessarily those of Arena Holdings. All advertisements, advertorials and promotions have been paid for and therefore do not carry any endorsement by the publishers.

www.businessmediamags.co.za/infrastructure

FSE: ARE SDGS FALLING BY THE WAYSIDE?

PARAGON: ON-TREND: MIXEDUSE DEVELOPMENTS

I N F R A ST R U C T U R E

1

I N F R AST R U CT U R E – C OV E R STO RY

Radisson RED.

CONCOR EVOLVES TARGETS GROWTH

By Nelendhre Moodley

A

gility, flexibility and an innate evolutionary mindset has seen diversified infrastructure and services construction company Concor adapt to meet the changing times. Following the devastating impact of the COVID-19 pandemic on the construction sector, Concor has adopted a new business model.

This will ensure, apart from survival during these challenging times, a strategy for future growth and sustainability, Fezeka Nompumza, executive: business development and stakeholder engagement at Concor, tells Infrastructure in an exclusive interview.

The construction sector has long been in the doldrums with the onset of COVID-19 adding a further layer of despair to an already struggling industry. Last year saw a number of local construction companies go out of business, enter business rescue or diversify into other sectors.

For Concor, the pandemic was the catalyst for its revised strategy, with the company taking a strong stance to reduce inefficiencies and bolster growth.

Concor’s new operating model is project- and outcomes-based, focusing on the two engines of its business – construction and mining services.

“Our operating model is based on streamlined methodology and direct reporting lines to management. The centralised manner of operation 2

I N F R A ST R U C T U R E

offers a bird’s-eye view of the entire business allowing for inefficiencies to be easily spotted and weeded out, especially at project delivery level, which ensures that projects are delivered on time, within budget, safely and at the highest quality.

“Furthermore, the model encourages teamwork and drives cross-selling that offers clients the full suite of Concor’s services,” says Nompumza.

"CONCOR LOOKS TO EXPAND INTO SOLAR PHOTOVOLTAIC, GAS-TO-POWER AND BATTERY STORAGE." – NOMPUMZA Underpinning Concor’s new operating model is its set of five values: teamwork, care, agility, delivery and trust.

“Embedded in the new operating model is the key aspect of teamwork and working in collaboration with our clients to build trust in our capability as a high-quality on-time project delivery house.”

The model, officially implemented in November 2020, has already started delivering benefits. “For example, we are able to leverage off more from the various teams within Concor.”

Fezeka Nompumza.

EYEING AREAS OF GROWTH According to Nompumza, 2021 is proving to be a much better year than 2020, with construction industry activity already getting off to a good start. There has been an increase in the number of building (mostly government) and civil sector tenders being awarded.

“While infrastructure rollout relies heavily on private sector participation, contributions from the fiscus will certainly determine success or failure. The president announced several large megaprojects in the pipeline, funded in part by the private sector, the fiscus and contributions from the R100-billion Infrastructure Fund.

“The economic impact of infrastructure expenditure on the economy is immense, leading to job creation and supporting more sustainable economic growth. However the rollout of mega infrastructure projects will rely deeply on the private sector to support the financial void and, considering the size and scope of these projects, expectations are that they will be rolled out over decades, if not longer.”

Meanwhile, with an eye to the future, the infrastructure development specialist has honed in on providing its expertise to the power sector, in particular renewables, and specifically wind farms. “Having established a solid base in the

Radisson RED.

development of wind farms, we are looking to diversify into other complementary technologies such as solar photovoltaic, gas-to-power and battery storage.”

Concor has established a firm foothold in the renewable energy market and is building on the relationships it established in the Renewable Energy IPP Procurement Programme (REIPPPP) Bid Window 1.

“We believe that if you build a relationship based on trust with the client, you can achieve massive spin-offs from it. For instance, we established a strong relationship with one of our clients in REIPPPP Round 1 and since then the client has partnered with Concor through subsequent rounds, and we foresee this relationship expanding through to Round 5.”

Concor has also identified projects in government’s gazetted Strategic Integrated Projects (SIPS) pipeline and remains upbeat following the release of some 50 SIPS projects

by Minister of Public Works and Infrastructure Patricia de Lille in July last year.

“The release of these projects, at a time when the economy was stalling following the onset of COVID-19 and the subsequent hard lockdowns, went a long way in rejuvenating market confidence and acting as a catalyst to the country’s economic recovery plan.”

Further to this, national roads agency SANRAL recently released a number of projects into the market for pricing, including road upgrades, maintenance and rehabilitation. “We are waiting for Cleaning of a foundation at Roggeveld Wind Farm.

SANRAL to adjudicate and award these contracts.”

While the civil engineering segment of the construction sector has proved to be resilient, the private building sector has faced extreme challenges, forcing participants to be extremely price- and cost-conscious.

“Given that the private building sector has just about collapsed, the forthcoming jobs will be heavily focused on margins, and with the residential and commercial sector being monopolised by developers, it is anticipated that margins will be tightly squeezed.”

To unlock opportunity in the building segment, Concor is eyeing the establishment of its own property development portfolio based on a partnership with government in the rollout of mixed-use developments.

The construction specialist is already developing Conradie Park, a mixed-use establishment, in Cape Town.

“The Conradie Park Development is a partnership between Concor and the Western Cape government and incorporates a mix of housing developments in the affluent suburb of Pinelands. The project is an industry game changer as it is the first development that includes actual and practical integration of low-, middle- and high-income earners – a work, play, live and learn environment within a single development.”

The R4bn Conradie Park Development involves the construction of 3 500 homes on 22 hectares.

“These types of developments are setting the trend and precedent going forward,” says Nompumza.

Specialised steel bracing is visible on the preserved 200-year-old facade wall at 16 on Bree in Cape Town.

A wind turbine base at Perdekraal East Wind Farm.

"CONCOR EYES ITS OWN PROPERTY DEVELOPMENT PORTFOLIO BASED ON A PARTNERSHIP WITH GOVERNMENT." – NOMPUMZA In another game-changing move, Concor recently adopted the alternative building technology methodology to speedily construct and deliver the Jubilee Hospital, in Hammanskraal, a 300-ICU-bed unit. Work on the turnkey project began in July 2020 and was completed by November 2020.

“This facility is the first accelerated programme from a healthcare infrastructure delivery point of view. The state-of-the-art hospital is a mindset game changer for industry and the end user as it showcases the successful use of new technologies to deliver large-scale projects in a fraction of the time.”

Other notable developments under construction that Concor, in a joint venture with Mota-Engil, is busy with include the Msikaba Bridge near Lusikisiki in the Eastern Cape and the SKA MeerKAT project, in partnership with OptiPower.

Msikaba is a cable-stayed steel deck bridge that spans the Msikaba River, and the SKA project involves foundation construction for 25 satellite dishes.

TACKLING THE CHALLENGES One of the key challenges the industry faces is the slow pace of project adjudication, particularly at government level, where a high-level skills set is in short supply.

“Industry needs government to swiftly adjudicate and award projects as delays create uncertainty in the market. Companies plan around these proposed projects and not releasing them into the market timeously means that the resource allocations remain in limbo until the projects are released.

“Apart from resulting in retrenchments, the uncertainty has seen an increase in the number of highly skilled personnel emigrating.”

To help government award projects on time, Nompumza encourages public-private partnerships as a way to share in the skills pool. n I N F R A ST R U C T U R E

3

COLUMN: CESA

INFRASTRUCTURE DELIVERY FAILURE FUNDING IS NOT THE PROBLEM

P

eople across South Africa continue to live without basic necessities, such as running water and electricity, due to the ongoing failure of infrastructure provision. While many projects lie in the pipeline, they remain dormant as the state fails to execute on promises made.

However, with projects approved and budget allocated, it appears that the bottleneck is not necessarily in funding. While government’s pocket is indeed tight, there are other factors at play that are preventing planned projects from going ahead.

A key issue is the lack of skills and technical capacity employed by the state. Government is aware of this issue, and is shining a spotlight on professionalising the public service. However, efforts need to go beyond developing skills to developing integrity and accountability.

Last year’s Auditor-General’s report from the late Thembekile Makwetu revealed many issues facing South Africa’s municipalities that go beyond financial mismanagement. Rather, this mismanagement is symptomatic of other underlying problems that I’ll attempt to unpack.

The report did an excellent job of breaking down the problems by province, but here is what I took away: municipal offices are characterised by poor company culture, and unfit leadership.

The report cites an ongoing culture of a lack of accountability as well as a tolerance of transgressions, exacerbated by leadership which fails to influence robust systems of internal control to drive good governance and discipline.

Stellenbosch Waste Water Treatment Works.

“Dysfunctional control environments” are listed as an issue across provinces, with an “unwillingness to comply with legislation, and a general disregard for internal controls and accountability”.

Many of the issues are related to the appointment and management of public servants. In some cases, prolonged vacancies in key positions caused instability in councils. In other cases, those who were appointed didn’t face adequate performance management measures and faced no consequences for transgressions.

Municipalities are not blind to these problems. Many employ consultants, mostly management and financial consultants, with possibly a small number also emanating from the engineering consulting industry, to assist in overcoming their internal control issues.

Some achieved that goal with an improved audit from 2018 to 2019. The report, however, highlights that improvements in many cases were driven by the appointment of appropriate consultants. However, other municipalities paid their staff and the consultants for the same service – without any value being realised.

4

I N F R A ST R U C T U R E

The right talent, managed appropriately by transparent leaders, is the answer to the problems with government spending. The AG’s report showed that municipalities that have both attracted and retained staff with the right skills have benefited from this continuity and managed to maintain good audit outcomes. By contrast, municipalities characterised by unstable administrative leadership were unable to improve their outcomes.

At the core of the matter lies the fact that government offices are just like any other organisation. They require effective corporate governance, comprehensive human resource management practices, a skilled workforce, appropriate leadership and a responsible code of conduct. Having these elements in place puts the organisation in the position to meet client needs.

The problem with the public sector is that they have no competition and do not see themselves as being in service to the South African public.

Unfortunately too, as the owners of public infrastructure, there are several hurdles that have to be cleared before such custodianship may be relinquished to well-meaning and desperate citizens, private sector organisations and businesses to effect such urgent maintenance and repairs.

This is understandable.

However, where such public sector entities have been proven to be dysfunctional due to capacity constraints, there should be a greater appetite for embracing the partnership that can be leveraged between the parties to achieve a win-win outcome.

It doesn’t always have to begin with a “stand-off” and a court ruling on such matters.

While efforts are under way to improve the areas of concern raised by the AG’s report, the private sector is putting up its hand to offer assistance. Industry bodies, like Consulting Engineers South Africa and many other like-minded industry organisations, have members who offer consulting services, much like those credited with improving audit results.

We have the technical capacity and professionalism that is unfortunately in short supply in government. We welcome the opportunity to forge a meaningful partnership in a skills- and knowledge-sharing journey that will help lead to a professional, accountable public service capable of the oversight required for implementing new build infrastructure and maintenance projects.

As stated in the late AG’s Integrated Annual Report 2019/20, “Accountability is at the heart of the level of trust in any government and is an ultimate indicator of the administration’s capacity to manage public resources in a way that benefits the citizens it serves.”

The consulting engineering industry is well placed to assist in this regard. n

The views expressed are the author’s own and do not necessarily reflect Infrastructure's editorial policy.

CHRIS CAMPBELL CEO, Consulting Engineers South Africa

INFRASTRUCTURE

Kaalfontein Ebony Park Clinic.

Fleurhof housing project.

JOBURG

Rea Vaya Watt interchange project in Alexandra.

A CITY ON THE RISE

By Rodney Weidemann

T

he City of Johannesburg understands how vital certain types of infrastructure are to reignite the economy and deliver a better life for all. Infrastructure spoke to Mayor Geoff Makhubo about future plans.

Infrastructure development is the keystone element in government’s plan to reignite the economy, spur growth and create jobs. In fact, in his State of the Nation Address this year, President Cyril Ramaphosa announced that the country would embark on a massive rollout of infrastructure.

Speaking to Makhubo, we learnt that a top priority for the city was addressing the housing backlog.

“There are several projects we are working on to address the housing backlog, especially for those citizens still waiting for RDP homes.

Firstly, we have a 24 000-unit megaproject west of Soweto, which will be a mixed-use development and includes residential, commercial and academic infrastructure. We are also involved in a 16 000-unit project in Fleurhof, Roodepoort,” he says.

“Other housing projects include Riverside and Diepsloot East, which are also mixed-use, mixedincome projects that will deliver around 10 000 units. And in Southern Farms, we will begin next year with a project that will deliver around 7 000 units.”

Makhubo says the city has also launched a highimpact programme in Orange Farm to help improve economic activities by improving all necessary infrastructure – streetlights, storm drains, road repairs and more – to enable it to become part of the urban system. A similar project will be undertaken in the Greater Ivory Park region.

“We are also aware that we need to take care of our history. We understand the need for significant improvement in the Kliptown area – where the Freedom Charter was adopted – and have plans for economic upliftment stretching from Kliptown to Eldorado Park,” says Makhubo.

He says the city is also collaborating with 6

I N F R A ST R U C T U R E

provincial and national government regarding the improvements for both the Lanseria Airport and Grand Central Airport precincts – projects that will boost both development and employment opportunities.

“The other critical infrastructure that is needed is high-speed broadband connectivity. To this end, we are looking at partnering with the private sector to help extend the broadband network to provide universal access to key commercial hubs, as well as linking underprivileged areas. This is vital, as access to high-speed connectivity is a key catalyst to economic growth.”

THE FOUR KEYS Four types of critical infrastructure Joburg needs: Housing – to overcome historical backlogs.

1 2

Social infrastructure – such as libraries and community halls, to truly provide a better life for all.

3

Infrastructure to stimulate economic growth – preparing roads and utilities in areas where business is anticipated to start booming.

4

Upgrading aged infrastructure, which includes retrofitting this to be smart.

"IMPROVEMENTS FOR THE LANSERIA AIRPORT AND GRAND CENTRAL AIRPORT PRECINCTS WILL BOOST DEVELOPMENT AND EMPLOYMENT OPPORTUNITIES." – MAKHUBO Another focus area is the need to create a job-intensive but low-carbon economy, he says. “For example, we are looking into the potential offered by hydroponic farming, which will not only create jobs, but will improve the nation’s food security as well.

“Ultimately we will need to adapt, to create a more sustainable future – something Joburg has done before, when it survived the decline of the mining industry to reinvent itself as a financial powerhouse.”

It is also imperative to look at clean alternative energy sources, the mayor notes, most notably solar and waste-to-energy projects. In addition, the city is working with the private sector on ways to help reduce emissions and develop a truly green economy moving forward.

Executive Mayor Geoffrey Makhubo.

“Lastly, we have heard talk before about Joburg becoming a smart city. Here, we already have a smart city directorate looking into the opportunities and programmes that will take us in this direction.

“While the need for ubiquitous high-speed broadband is critical to success, we are fortunate to have two universities – the University of the Witwatersrand and University of Johannesburg – that have strong focuses on Fourth Industrial Revolution subjects, such as how to retrofit smart infrastructure into the city’s existing systems,” says Makhubo. n

The City of

Joburg

Accelerating

Service Delivery Statement by Executive Mayor of the City of Johannesburg Cllr Geoffrey Makhubo.

“To improve the daily experiences of our residents street by street, ward by ward, the City has launched an accelerated service delivery programme.

A people centred and driven programme aimed at resolving basic service delivery challenges all over the City. The key focus of this programme is basic services, specifically roads, stormwater drains, sanitation, water and electricity infrastructure repairs and maintenance. The programme is aimed at getting the City working for communities once more.”

For more information on this programme, please visit any of the City’s official social media handles.

www.joburg.org.za @CityofJoburgZA @CityofJohannesburg CityofJoburg

I N F R A S T R U C T U R E – C O R P O R AT E P R O F I L E

KNIGHT PIÉSOLD FOCUSED ON AFRICA’S INFRASTRUCTURE DEVELOPMENT

The multibillion-rand Western Aqueduct project.

C

onsulting engineering firm Knight Piésold continues to entrench its footprint in Africa and invest in local skills and expertise to support the growth of infrastructure development in the countries in which it operates.

From its humble beginnings in South Africa on 1 April 1921, Knight Piésold has established and grown its local operations within Southern Africa, through its offices in Namibia, Zambia, the Democratic Republic of the Congo, Botswana, Madagascar, Swaziland, Mauritius and South Africa.

Vishal Haripersad, regional manager for Knight Piésold in Southern Africa, explains that operations across Africa were staffed by locals in the country, and supported by the collective skills, knowledge, and expertise of both its Southern African and global teams.

“This has happened without Knight Piésold losing its unique culture, identity and heritage; and without needing to be acquired by a global company to grow and expand. In fact, through organic growth and expansion, Knight Piésold has grown into a truly international organisation, with offices in Australia, North and South America, the United Kingdom and throughout Africa.

“While we are supported by a global workforce, our on-the-ground talent is sourced locally. Africa has a young, enthusiastic and competent population 8

I N F R A ST R U C T U R E

The Neckartal Dam project in Namibia.

who should be included on this growth journey. We remain committed to being strategic partners in the countries in which we have a footprint, and also being able to contribute to growth by providing muchneeded employment opportunities using the local talent pool.”

Further, the median population for Africa, he explains, is projected to reach 1.68 billion by 2030, which presents significant opportunities for the public and private sectors to help shape the continent for growth across various industries.

Haripersad believes that there is tremendous opportunity for social development and economic growth in Africa, which will be driven by the energy, mining and infrastructure sectors. He says population growth would directly increase the rate of urbanisation, as well as the need for electricity, water, houses, roads, and other much-needed infrastructure.

“There is no question that despite the challenges across the continent, the opportunities that present themselves are significant. For example, as the demand for electricity grows, we are already seeing the rise of energy projects in Africa. The power pool is changing and growing, and although there are challenges with electricity provision up into the continent, there are developments under way to change this.”

DELIVERING LARGE INFRASTRUCTURE PROJECTS He says while the company’s strength lies in its ability to call on an enviable track record of delivering large infrastructure and mining projects throughout Africa, it believes that through the divisionalisation of its business it is better geared to partner with clients to a more focused and efficient service.

This is evidenced through its recent and current involvement on several megaprojects throughout Africa, which include Knight Piésold being part of the consortium involved in the design and supervision of the construction of both the Katse and Mohale dams, forming a key part of Phase 1 of the Lesotho Highlands Water Project located in Lesotho, and part of the team working on key elements of Phase 2 of this project.

In South Africa, Knight Piésold was the lead consultant in the design and construction supervision on the multibillion-rand Western and Northern Aqueduct projects. These are largediameter pipelines necessary to bring potable water to the rapidly developing areas of the eThekwini municipality, in KwaZulu-Natal.

Knight Piésold has also played a key role in both the design and construction supervision of the South Africa-based Ingula Pumped Storage

Vishal Haripersad.

Ingula Pumped Storage Scheme.

Scheme. This is a critical project for the country, completed under the auspices of state-owned power utility Eskom, entailing the design and construction of dams, roads, tunnels, caverns and all related aspects of the project.

The company was also the lead consultant in the design and construction supervision of the Neckartal Dam project, located in Keetmanshoop in Namibia, which is the largest infrastructure project undertaken in the country.

Through its execution of these and several other projects, as well as others in the pipeline, Knight Piésold has proven its ability to undertake both large mega infrastructure projects, as well as its ability to provide the mining industry with

"THERE IS NO QUESTION THAT DESPITE THE CHALLENGES ACROSS THE CONTINENT, THE OPPORTUNITIES THAT PRESENT THEMSELVES ARE SIGNIFICANT." – HARIPERSAD a complete infrastructure offering and deliver on time, on budget and on brief.

“As we look to the future and determine how we position ourselves as a business to play a significant role in facilitating and developing this growth, we have come to realise that for our business to be as successful as possible within the environments in which we operate, we need to adapt and grow.

“With our strong belief in the capacity and capability of African excellence, we are focused on ensuring that we continue to enhance the capacity of our business within Southern Africa, through the continued training and development of local talent.

“We will also continue to look to expand our operations as developmental needs arise, such that we can continue to play a role in the development of local talent,” Haripersad says. n

Integrated engineering and environmental services to help you achieve more.

CELEBRATING 100 YEARS OF ENGINEERING EXCELLENCE. www.knightpiesold.com

Knight Piesold Southern Africa

kp_rsa

I N F R A S T R U C T U R E – C O R P O R AT E P R O F I L E

WAREHOUSING AND LOGISTICS FACILITIES ON THE RISE Bulk earthworks and demolition.

I

CON Group MD Wayne Neary says he has seen a boom in industrial developments recently following the successful completion of the earthworks for a new warehousing facility near OR Tambo International Airport in Johannesburg.

ICON Group is a trusted provider of bulk earthworks, demolitions and civil engineering construction services.

“Industrial nodes are popping up in metroadjacent areas, where greenfield land is being developed for warehousing and logistics. This has been a trend for some time but seems to be on the rise as individuals and businesses do more commerce online in efforts to minimise exposure to the coronavirus.”

Property near major highways and close to cities, such as Johannesburg and Pretoria, are prime for development as property developers aim to meet the growing demand for industrial spaces.

ICON’s latest warehousing-related project is situated with easy access to the R21 in Ekurhuleni, where the company has completed the earthworks to prepare the site for three warehouses to be developed by JT Ross Property Group.

Neary’s team began work on-site in early February. Despite the heavy rains posing a challenge, the earthworks portion of the project

Wayne Neary.

was completed on deadline. The R4-million project was awarded to the company due to their strong track record in the area, their price competitiveness, and their reputation in the industry.

Looking ahead, Neary expects a continued increase for logistics services and industrial parks but adds that mixed-use and residential developments are sure to follow in these same locations. “We are seeing that more people want to live close to work, and property developers are striving to meet this demand with more housing complexes popping up in traditionally industrial areas,” Neary says.

I N F R A S T R U C T U R E – C O R P O R AT E P R O F I L E

CMA CS UPHOLDS STANDARDS IN PRECAST CONCRETE PRODUCTION aintaining verifiable standards is essential for the viability of any economy, especially one like South Africa’s which is plagued by a swollen bureaucracy, high unemployment and widespread corruption.

Despite its international junk status, one of the underlying strengths of South Africa’s economy is that it continues to subscribe to the maintenance of standards across a broad front as measured against South African National Standards (SANS) specifications.

South Africa’s multibillion-rand precast concrete industry is no exception. It is benchmarked against no fewer than 16 SANS standards which over the years have been developed and written by the Concrete Manufacturers Association NPC (CMA) and its members in collaboration with the South African Bureau of Standards – Standards Division.

© ISTOCK – hadkhanong

M

These standards give precast concrete producers a substantial advantage, namely the capacity to offer their clients measurable and consistent levels of best-practice quality which can only be achieved in a factory environment.

Architects, structural engineers and other professionals know this, which is why precast construction continues to gain market share.

However for standards to carry any weight

they must be officially certified, i.e. by CMA Certification Services (CMA CS) (Pty) Ltd – a SANAS-accredited certification body – C75.

CMA CS specialises in the certification of precast concrete products and its list of producers has been steadily growing since it was founded in 2016.

In short, certified products bring peace of mind to the professional team that specifies them and the clients whose structures are built with them.

I N F R A S T R U C T U R E – C O R P O R AT E P R O F I L E

AWARDS PROGRAMME CELEBRATES WOMEN IN THE CONSTRUCTION INDUSTRY

I

n a traditionally male-centric industry such as construction, it is important to make tangible efforts towards transformation and inclusion.

Industry bodies play a vital role in these efforts, driving the direction of the construction sector.

With this in mind, the Construction Industry Development Board (cidb) created an awards programme – inaugurated in 2020 – that celebrates and encourages women in the construction industry.

The Empowerment and Recognition of Women in Construction (ERWIC) Awards 2020 were met with great success, and achieved their goal of showcasing female-led projects and achievements in the sector. The awards programme is set to take place again this year, with entries open from 7 June to 16 July 2021, with the awards ceremony following in August – Women’s Month.

The aim of the awards is to encourage excellence among women and commitment among stakeholders to support women in their professional growth and development. Through the ERWIC

Awards, the cidb also aims to promote role models for women in lower grade construction categories, and motivate women in the higher grades.

The awards also recognise entities and individuals who support gender transformation and mentorship of women within the industry. This year there are 12 categories: • Project Delivery Excellence of the Year • Rural Project of the Year • Mentoring Entity of the Year • Transformation Entity of the Year • Innovative Entity of the Year • Business Resilience of the Year • Youth-owned Woman Construction Entity of the Year (aged 35 and younger) • Woman-owned Construction Entity of the Year • Woman Mentor of the Year • Women with Disability Contractor of the Year • Exceptional Woman in Construction Contributor of the Year • Chairman’s Award

CEO Cyril Vuyani Gamede at the ERWIC Awards.

Winners of the cidb ERWIC Awards 2020.

Notably, the Business Resilience of The Year award aims to recognise the entity that showed resilience, agility and adaptability in 2020 during the COVID-19 pandemic.

For more information and to enter the awards visit www.erwicawards-cidb.co.za.

2021 cidb is recognising excellence among women in construction.

Enter to showcase your projects and achievements.

ENTRIES CLOSE 16th July 2021 For more info: www.erwicawards-cidb.co.za

NSDV CREATES ‘NEC 3/4 FOR NEWBIES’ TIP SERIES F

ree legal advice may sound like the start of another lawyer joke, but NDSV has developed an ‘NEC 3/4 FOR NEWBIES’ series designed to see you build – rather than billed – more by the hour. Written by construction law specialist, educator and director at NSDV, Cameron Staude, it reflects the company’s culture of approachable transparency.

TIP #1. UNDERSTAND THE PRICING MECHANISM The NEC 3/4 ECC is one contract with five pricing options, the most common being A or B. Option A is a lump sum contract used for design and build work. Option B is a remeasurement contract based on a bill of quantities, where the employer deals with the design.

For Option A, the contractor must align its activity schedule with its cash flow; the contractor is only

paid once the activity is completed and they carry the risk of a change in quantities.

Check: For cash-flow purposes, contractors may break down the activity schedule into activities to be completed and claimed for monthly.

For Option B, the employer assumes the risk of a change in quantities – the contractor simply prices the bill of quantities and is paid monthly based on quantities worked, multiplied by rate.

Check: Small print matters; employers can shift the risk of the quantities onto the contractor in the bill. Check its preamble to learn who carries that risk, and whether missing or unpriced quantities are assumed to be included elsewhere.

NEC 3/4 is the Governments’ contract of choice; being able to successfully navigate it is as essential as their services.

Cameron Staude.

Easy. Less legalese can mean less legal fees when advice is quicker to decipher. For additional, free ‘NEC 3/4 FOR NEWBIES’ tips, simply search NSDV Firm on LinkedIn.

Get quoted and build more by the hour As Construction Law specialists, NSDV’s services help ensure our clients’ projects proceed without pricey delays, whilst remaining fully compliant.

We can assist operationally too, offering day-to-day commercial management should you require it once the up-front negotiations and legal groundwork have been covered in accordance with FIDIC, NEC, and JBCC contract stipulations.

For more information on how you can benefit from our dedication and extensive experience, visit linkedin.com/company/nsdvfirm/ today.

© ISTOCK – Chalirmpoj

I N F R A S T R U C T U R E – C O R P O R AT E P R O F I L E

T R A N S P O RT

AfCFTA

UNLOCKING TRILLIONS OF RAND IN TRADING OPPORTUNITIES

By Nelendhre Moodley

T

he recently finalised African Continental Free Trade Area (AfCFTA) agreement, which was promulgated into law from 1 January 2021, is set to have a monumental impact on trading in Africa. To get a clearer understanding of what the agreement means for traders, Infrastructure caught up with Caroline Rheeder, associate director: customs at Cova Advisory.

HAS THE AFCFTA AGREEMENT BEEN RATIFIED AND ADOPTED? It has been signed by 54 out of 55 countries. A number of countries, including South Africa, have adopted its terms into their law. However countries and companies have yet to start trading on this platform.

WHAT ARE SOME OF THE KEY STICKING POINTS THAT ARE BEING IRONED OUT? Rules of origin is a big one (i.e. the rules by which a product can be considered as ‘Made in South Africa’); non-tariff barriers and things like permits and licences; as well as reciprocity between trading regions or trade blocs.

In order to better understand the requirements, at the end of March the South African Revenue Service (SARS) published a new adjusted work plan. The intention is to hold technical workshops with traders starting in May. However the workshops have been postponed to later on in the year as the AfCFTA secretariat needs to finalise things like rules of origin, and other countries need to domesticate their tariff offers, trading documents and other critical implementation documents.

14

I N F R A ST R U C T U R E

PLEASE ELABORATE ON THE TARIFFS SURROUNDING THE AFCFTA, AND THE KIND OF CHANGES THAT WILL BE EXPECTED IN TERMS OF BORDER POSTS? Over a set period of time, 90% of products that currently attract customs duty will end up at 0% customs duty. This is a big cost saving on import.

One of the challenges of the agreement, which is perhaps trickier than liberalising tariffs, is to make border posts more efficient and for different countries to work together on this.

It requires funding and political will. There are significant efforts being made towards this. In fact, funds have been made available to the AfCFTA secretariat to help countries with matters such as revamping border posts and increasing efficiency.

"THE POINT OF THE TRADE NEGOTIATIONS UNTIL NOW HAS BEEN TO ENSURE ALL INDUSTRIES ARE REPRESENTED – HOWEVER THIS IS NOT ALWAYS POSSIBLE." – RHEEDER HOW WILL THE ADOPTION OF THE AFCFTA BENEFIT THE CONTINENT AND SOUTH AFRICA IN PARTICULAR? This region holds enormous potential for intraAfrican trade. It holds significant buying power,

which all member countries should be considering as opposed to relying on their traditional markets, further afield.

Multiple products and industries stand to benefit but I see agriculture as holding a great deal of potential for a wide variety of member states.

Our fruit, for example, does exceptionally well in Europe, helped in part by the trade agreement we have with the European Union.

The AfCFTA will offer similar support for some of our products, noting that sugar remains a sensitive area, given its importance in countries similar to ours.

WHILE THE AFCFTA IS TOUTED TO BRING MANY OPPORTUNITIES, ARE THERE ANY DOWNSIDES TO THE ADOPTION OF THE ACCORD? There may be a defensive position that manufacturers/producers would want to take, should they find themselves faced with unanticipated imports at reducing rates of customs duty. The point of the trade negotiations until now has been to ensure all industries are represented – however this is not always possible.

To properly assess whether a business may be threatened by such imports, it is important to understand its current profile (i.e. What do you make? Where does it come from? Who is your competitor?) and then match that with the offers that South Africa has put on the table.

It may well be that while there might be increased imports, these won’t actually threaten a local manufacturer. But a business will not know this until an assessment is done, taking the varying factors at play into account.

© ISTOCK – Alextov

AfCFTA ▪ Electrical and transformer Focused on motor accelerating intra-African

▪ Operating support and monitoring.

© ISTOCK – Milos-Muller

© ISTOCK – hallojulie

© ISTOCK – djedzura

"OVER A SET PERIOD OF TIME, 90% OF PRODUCTS THAT CURRENTLY ATTRACT CUSTOMS DUTY WILL END UP AT 0% CUSTOMS DUTY." – RHEEDER

installation. trade and boosting Africa’s trading

position in the global market.

▪ Electrical panel installation.

WHAT IS THE CURRENT VALUE OF INTRA-AFRICA TRADE AND HOW IS THE AFCFTA EXPECTED TO BOOST THIS? In mid-March, the Department of Trade, Industry and Competition presented a status update in Parliament during which they stated that of the R8-trillion worth of imports in 2019, into Africa, only R1-trillion was from African countries. The AfCFTA will boost this by offering preference and benefits to goods made in Africa, meaning external products will pay more duty.

CAN YOU ADVISE ON THE PRACTICAL STEPS THAT A SOUTH AFRICAN ORGANISATION CAN TAKE TO PREPARE FOR AFCFTA? While looking outwards (i.e. questioning what is happening with the agreement, and what the status is), companies should do some work right now, for example establish what their current trader profile is, and then assess this against the impact of the trade agreement.

Establish who you are in the value chain – are you an importer, exporter, manufacturer, or all three?

Will your market share in South Africa be affected by new imports? If you say no, make sure it is based on proper research.

What are your opportunities in Africa as an exporter?

Which are the new markets for your goods?

If you import raw materials and components, can you source these regionally as opposed to globally?

And most practical of all, at the very least, update your registration with SARS Customs to reflect trade under AfCFTA (even if you are not sure yet whether you will use it). Do not let admin requirements trip you up when it’s relatively straightforward to do that preparatory work now.

WHAT ARE THE REALITIES OF AFCFTA FOR IMPORT AND EXPORT BUSINESSES ALIKE? The realities are that if you want to participate, you need to get all the facts and marry these to your own business. There are potentially big opportunities for exporters and importers,

Caroline Rheeder.

however companies will never know this if they don’t at least do the research and preparation now.

HOW CAN SOUTH AFRICAN FIRMS BECOME MORE INVOLVED IN THE AFCFTA? There is still much work to be done in terms of developing the terms of the agreement and realising the benefits. There are a number of industry associations representing their sectors and organised business at these talks. It is recommended that you get involved.

This issue is exciting but complex. Reach out for professional help should you need it. It’s the focused steps taken now that will bear the most fruit later. n I N F R A ST R U C T U R E

15

T R A N S P O RT – C O R P O R AT E P R O F I L E

Gautrain OR Tambo Station

GAUTRAIN

A SMART TRANSPORT

INFRASTRUCTURE

THAT CHANGED THE FABRIC OF GAUTENG

A

s an infrastructure project, Gautrain is a sustainable transport system that increases mobility in Gauteng, demonstrating government’s commitment to economic development and moving people forward.

Gautrain as a public transport mode has positively changed the minds of South Africans, from creating jobs during the development phase, to enhancing mobility, community upliftment and economic growth.

This smart mobility mode has transformed commuters’ behaviour and their perceptions.

It has resulted in a modal shift from cars to rail which has generated several social, economic and environmental benefits, reducing passengers’ carbon footprint by 52% per trip.

The Gautrain Project was designed as a vehicle for economic growth and job creation in Gauteng.

Its strategic objectives are among others to manage urban sprawl and spatial development, accelerate economic growth, contribute to job creation and infrastructure delivery, and improve accessibility and mobility.

Since inception, the project has been breaking new ground to ensure that specific socioeconomic development objectives are met.

Gautrain has had a huge impact on business 16

I N F R A ST R U C T U R E

Gautrain Centurion Station.

activity, with additional investment in the retail industry. During construction, Gautrain generated various positive economic spin-offs, including a R20-billion contribution to the province’s GDP. It is estimated that R46bn total GDP impact has been added to the provincial economy due to property development induced by the Gautrain, contributing a further 245 000 jobs.

"PROPERTY VALUES NEAR STATIONS ARE GROWING FASTER – BY 3% RELATIVE TO SURROUNDING AREAS." It has been over 10 years since the first Gautrain stations were opened in time for the 2010 Soccer World Cup, and it is clear how, in line with international trends, the values of homes and properties in the areas around the Gautrain stations have been boosted.

Contributing to the goals of transit-oriented development, better land use and redressing apartheid special development planning has led to many high-end corporates competing for space in new office buildings close to the stations.

Gautrain Sandton Station.

Gautrain Marlboro Station.

According to a study conducted by Hatch on the economic and social impact of Gautrain, property transactions within 2km of its stations have grown > much faster in the past years. New residential

T R A N S P O RT – C O R P O R AT E P R O F I L E

Gautrain Hatfield Station.

FOLLOW US ON: Twitter: @TheGautrain Facebook: www.facebook.com/gautrain Website: www.gautrain.co.za Call centre: 0800 4288 7246

space has also been catalysed around stations and the residential night-time population has increased by over 3 000 since 2010. Property values near stations are growing faster – by 3% relative to surrounding areas.

Gautrain has continued to shape perceptions and behaviours related to public transport in Gauteng and encouraged more sustainable land use and development patterns which are centred around transport nodes and infrastructure.

It’s not only contributed to the province’s economy but has promoted people’s quality of life though reduced road congestion. There are 21 300 fewer cars on the roads every day, which means commuters save time. This translates to increased productivity levels of up to 10 to 12 working days a year.

The service has moved towards a more reliable transport mode of 99.67% service availability. As a modern transport infrastructure system, Gautrain has changed the image of the province and that of public transport.

Transport has played a role in shaping the Gauteng City Region for most of its history.

Gautrain supports the economic integration of the Gauteng City Region and represents a key step in bringing the cities of Johannesburg, Tshwane and Ekurhuleni closer together. Gautrain is making a significant contribution to creating a 18

I N F R A ST R U C T U R E

"THE GAUTRAIN PROJECT HAS GENERATED SEVERAL SOCIAL, ECONOMIC AND ENVIRONMENTAL BENEFITS AND REDUCES PASSENGERS’ CARBON FOOTPRINT BY 52% PER TRIP." Gautrain Midrand Station.

larger and more economically powerful Gauteng region, connecting the scattered urban centres of the three metropolises into a highly accessible network. It’s made rapid travel between major commercial nodes across the province possible.

Gautrain doesn’t compete with other modes of

public transport such as taxies and buses, which all have an important role to play in the total transport system. The service consists of a fleet of modern low-entrance and low-emission buses with comfortable seating, providing feeder and distribution services to and from Gautrain stations. n

WAT E R

SUSTAINABLE DEVELOPMENT GOALS

© ISTOCK – Eisenlohr

FALLING BY THE WAYSIDE?

By Nelendhre Moodley

E

very year government allocates billions of rand for infrastructure development; yet South Africa’s water woes continue. To gain a clearer understanding of whether government’s interventions are making a dent in the country’s dire water situation and whether it is on track to meet its Sustainable Development Goals, Infrastructure caught up with Federation for a Sustainable Environment CEO Mariette Liefferink.

“While South Africa boasts world-renowned water policies and legislation, implementation remains a serious challenge. The launch of the National Planning Commission’s National Water Security Framework in February this year shows that South Africa has severe water security issues. This is due largely to a backlog in water infrastructure, insufficient maintenance and investment, inequality in access to water and deteriorating water quality as well as climate change,” says Liefferink.

She says if demand continues to grow at current levels, the deficit between water supply and demand could be between 2.7 billion m3/a and 3.8 billion m3/a by 2030 – a condition that will be exacerbated by climate change.

“The availability of water of acceptable quality is predicted to be the single greatest and most urgent development constraint facing South Africa.”

Despite government continuing to plough hefty sums into infrastructure investment, it is estimated that the Department of Water and Sanitation (DWS) has a whopping R300-billion funding gap over the next 10 years.

“R898bn is required to meet the current needs.

As it stands, the available funding is R565bn.

Dense vegetation growth instream due to pollutants, causes hydro and habitat change.

Infrastructure is ageing (57% depreciated) and needs urgent refurbishment and renewal. The refurbishment backlog requires an injection of R59bn (around R12bn per annum over five years) while the renewal backlog totals R332bn.

“Without funding, the Master Plan cannot be implemented. The water and sanitation sector is

2.7 billion m3/a – 3.8 billion m3/a WATER DEFICIT BY 2030 currently not financially sustainable. A turnaround towards financial sustainability is not an option.

What is required is a combination of improved revenue generation and a significant reduction of costs.”

IS SA ON TRACK TO MEET ITS SDGS? While the country has on paper penned its signature to many policies, strategies and agendas promising to adhere to the Sustainable Development Goals (SDGs) for water-related solutions, to date South Africa remains on the back foot in terms of meeting its promises. The SDGs came into effect in 2016. The target date for outcomes to be achieved is 2030.

Liefferink says there’s been very little progress in advancing the SDG agenda even though the guidelines are aligned with Vision 2030 (the National Development Plan) and the Medium Term Strategic Framework (MTSF) Outcome Targets.

The SDG programme informs relevant “vehicles” such as the National Water and Sanitation Master Plan (NW&SMP) to translate the gaps into actions that can be implemented in line with meeting the 2030 objectives.

“However, although these actions have been identified in the NW&SMP, most of these actions > I N F R A ST R U C T U R E

19

WAT E R

SUSTAINABLE DEVELOPMENT GOALS ▪ Electrical motor and transformer installation. (SDGS) ▪ Electrical panel installation.

The SDGs are a collection of 17 global goals ▪ set by the UN General Assembly in 2015 Operating support and monitoring. known as the 2030 Agenda on Sustainable Development.

The SDGs cover social and economic development issues including poverty, hunger, health, education, global warming, gender equality, water, sanitation, energy, urbanisation, environment and social justice.

"WHILE SOUTH AFRICA BOASTS WORLD-RENOWNED WATER POLICIES AND LEGISLATION, IMPLEMENTATION REMAINS A SERIOUS CHALLENGE." – LIEFFERINK

In Tweelopiespruit, iron percipitate can be seen covering the substrate.

A fishway for a dam in Limpopo River.

have not been implemented. It is doubtful that South Africa will achieve the eight targets of the SDG6 by 2030.”

Key concerns hindering progress in meeting the targets include the critical lack of data across many segments, including on rural water quality, the wetlands, surface and groundwater quality, quantity and quality of effluent discharged by municipalities, and unlawful water users with pollution potential. Also a lack of consistent and accurate water use and water loss data in all major water sectors such as agriculture, industry and municipalities.

This lack of and inadequate data poses high risks to decision making and planning, given that reliable information on the status of the country’s water resources is needed to understand and enable spatial and non-spatial analysis and water use and demand, among others.

“The last time any meaningful data on reliable water supply was obtained was in 2011. Aside from the major gaps in accessing requisite information from other national departments, there exists a severe lack of processes in place to accelerate the uptake of appropriate sanitation technologies for households and institutions such as schools.

“Currently there are more than 2.8 million households without access to improved sanitation services,” says Liefferink.

20

I N F R A ST R U C T U R E

Phragmites dominates the riverine vegetation.

WATER INFRASTRUCTURE PROJECTS ON THE GO In his 2021 State of the Nation Address, President Cyril Ramaphosa said the country had billions of rand in planned infrastructure development.

“We have now developed an infrastructure investment project pipeline worth R340bn in network industries such as energy, water, transport and telecommunications. This includes the rehabilitation of the N1, N2 and N3 highways, the student housing infrastructure programme, and the Mokolo-Crocodile Water Augmentation Project (MCWAP).”

The MCWAP transfer scheme has two phases, of which Phase 1 was completed in 2015. “Until the commissioning of Phase 2A of MCWAP, Mokolo Dam will be operated at a higher risk in order to meet the growing water requirements,” says Liefferink.

Aside from the MCWAP transfer from the Vlieepoort abstraction works to the Lephalale area, numerous transfer schemes are currently being planned or constructed, including: • ORWRDP-2B and 2G transfer from Flag Boshielo Dam (Olifants River Catchment) to the Mogalakwena municipal area.

• Transfer from the Nandoni Dam (Luvuvhu/Letaba River Catchment) to Louis Trichardt and Matoks (Sand River Catchment).

SPOTLIGHT ON VAAL RIVER SYSTEM PROJECTS The Vaal River system, which supports homes and businesses in the Gauteng region, is highly polluted and in need of attention. According to the latest SA Human Rights Commission report (February 2021), 19 million people depend on the Vaal River

system for drinking, domestic and commercial use.

However “the Vaal River has been polluted beyond repair and the sewage problem has reached crisis levels”.

Currently there are numerous large-scale infrastructure developments related to the Integrated Vaal River System, including: • The Lesotho Highlands Water Project: The date of impoundment for LHWP Phase 2 project has been moved to 2027.

• Tugela-Vaal transfer scheme: A cumulative volume of 115.21 million cubic metres of water was transferred in the 2020/2021 operating year.

• Thukela Water Project bridging study: A

© Stephan du Toit – Mogale City Local Municipality October 2019

Iron sulphate precipitate from acid mine drainage on the rock face.

professional service provider has been appointed to update the hydrology of the Thukela Catchment.

• A feasibility study for Noordoewer/Vioolsdrift Dam (NVD) as the proposed yield replacement for Polihali Dam was completed in May 2020. However, a bridging study is required to finalise the optimal dam size, site and type selection before the project can be implemented. This process is likely to take another two years at a further joint cost of about R10-million.

• Roodeplaat Water Treatment Works is earmarked for extension to 120 million litres per day (Ml/d) from the current 60 Ml/d by 2060.

• Further to this, water demand and conservation

measures that have been identified include: • Rand Water Project 1600 – aimed at reducing water consumption through improved efficiency, which is yielding results.

• City of Johannesburg is planning the reuse of waste water which will reduce the demand from the Upper Vaal.

• City of Ekurhuleni conducted a feasibility study in the reuse of effluent from the Olifantsfontein Waste Water Treatment Works (WWTW). This will help reduce water demand from the Upper Vaal.

• Plans for the eradication of unlawful water use (irrigation) within the Middle Vaal and the Upper Vaal (upstream of confluence of the Mooi and Vaal rivers) is under way; with a focus on big unlawful irrigators (top 10%), for a start.

• Sewage pollution of the Vaal Barrage requires that the national and provincial governments conduct a detailed needs assessment for the clean-up and rehabilitation of the Vaal River. The DWS has been tasked to develop and implement policies to deal with the water crisis in South Africa and contamination of the Vaal River.

• Mine water effluent treatment: The recalibration of the salinity and hydrology model for the Vaal is to be conducted as soon as possible. n

ENERGY

ENERGISED GOLD FIELDS GOES GREEN

By Nelendhre Moodley

G

old Fields recently received approval for the construction of a 40MW solar power plant at its South Deep mine.

Infrastructure caught up with the gold miner’s executive vice president: South Africa Martin Preece to chat about the company’s energy strategy and its focus on renewables.

WHAT ARE SOME OF THE CHALLENGES GOLD FIELDS FACES IN TERMS OF ENERGY, AND HOW IS THIS AFFECTING BUSINESS? In South Africa, unreliable and unaffordable supply from the national utility Eskom poses a major risk for all mining companies. This not only impacts on costs and erodes margins, but also has an opportunity cost implication as a result of the inability to operate due to load curtailment.

WHAT IS GOLD FIELDS’ ENERGY STRATEGY GOING FORWARD? Gold Fields’ energy objectives are based on four pillars that promote a shift to self-generation using renewable energy sources. Energy must be available, reliable, cost-effective and clean.

During 2020, renewable electricity made up 3% of the Gold Fields Group’s electricity consumption. Once the South Deep solar project is commissioned, renewable’s contribution to the group’s total consumption will rise to around 11%.

Also last year, Gold Fields successfully implemented solar and wind renewable projects, backed by battery storage, at two of its Australian mines, Agnew and Granny Smith. It’s also committed to renewables at its other Australian mines, Gruyere and St Ives, and the new Salares Norte project in Chile when it starts operations in 2023. All its other mines are reviewing renewable energy options.

22

I N F R A ST R U C T U R E

HOW DOES THIS ENERGY STRATEGY INFLUENCE BUSINESS OPERATIONS AND ALIGN IN TERMS OF LOWERING GOLD FIELDS’ CARBON FOOTPRINT? After salaries and wages, energy is generally the second biggest cost item for our mines, accounting for between 10% and 20% of operating costs. As such, it is critical that our energy strategy not only ensures security of supply but also cost-effective energy supply.

As important is our focus on reducing our carbon emissions and meeting commitments we have made in this regard. Our approach is not only good for the environment, but makes business sense too.

The biggest contributors to carbon emissions are the electricity we purchase from outside suppliers

and the diesel consumed by our fleet of mining vehicles and machinery. Replacing coal-, diesel- and ultimately gas-powered electricity with renewable sources makes a direct contribution to lowering our carbon emissions.

Renewables have the added benefit of being largely on-site with many of our renewable sources directly supplying our mines without requiring an extensive grid network.

As for replacing our diesel-powered fleet, that will take time. And while we are trialling battery electric vehicles, this is still at an early stage and not viable yet. Over time though, we envisage that our fleet won’t be powered by diesel but rather by electric batteries and potentially hydrogen fuel cells.

R120-MILLION PER YEAR ESTIMATED COST SAVING FROM THE SOLAR PLANT AT SOUTH DEEP

DESCRIBE THE ROLE THAT RENEWABLES WILL BE PLAYING IN POWERING GOLD FIELDS’ PROJECTS, ESPECIALLY IN AFRICA AND SOUTH AFRICA, AS WELL AS GLOBALLY. In 2020 renewables accounted for only 3% of our energy mix, 11% if hydro was included, as our Peruvian mine receives power from a utility that uses mostly hydro power. This year the percentage will start rising as our Granny Smith and Agnew mines in Australia will have a full year of supply from their micro-grids. Agnew on average is already consuming 57% of its electricity from renewable sources.

As the solar plant at South Deep comes on stream in 2022, renewables (excluding hydro) will account for 11%. Gruyere in Australia and Salares Norte in Chile, when it becomes operational in 2023, will also have a share of renewables in their energy mix in the near future. If all our current renewable plans come to fruition we should have up to 25% of electricity from renewable sources by 2025.

For now, the South Deep solar plant remains our only renewable plant on the continent, as our two Ghanaian mines, Tarkwa and Damang, currently have dedicated gas plants powering their operations and have only started commencing studies into the long-term viability of renewables.

WHAT DOES APPROVAL FOR THE SOUTH DEEP SOLAR POWER PROJECT MEAN FOR THE COMPANY? While other mining companies have developed or are in the process of developing their own solar plants, what makes the South Deep solar project unique is that Gold Fields is the first mining company in South Africa to build, own and operate its own solar plant on such a large scale.

This reduces our exposure to Eskom in terms of reliability and above-inflation cost escalation and allows us to enjoy the full cost benefit associ-

ated with the renewable energy source. It also addresses the opportunity cost of lost production during frequent load curtailments instituted by Eskom.

Once completed, the solar plant has the potential to provide around 22% of South Deep’s average electricity consumption, translating into a cost saving of roughly R120 million per year and reducing our carbon footprint by 100 000 tonnes per year from 490 000 tonnes to 390 000 tonnes.

GOLD FIELDS RECENTLY RECEIVED THE GREEN LIGHT FOR THE CONSTRUCTION OF A 40MW SOLAR POWER PLANT AT ITS SOUTH DEEP MINE. PLEASE SHARE WITH US THE DETAILS OF THE SOLAR POWER PROJECT. As far as possible, goods and services required to build the plant will be sourced locally in South Africa. We are evaluating local companies that manufacture and supply solar panels, which make up a significant portion of the capital spend.

Specialised equipment such as inverters will however have to be imported.

We applied for our licence on the basis of selfgeneration for self-consumption in June 2020.

The licence was awarded in February this year. We anticipate that construction will take between 12 and 18 months and should be completed during 2022.

The 40MW solar plant has a generation capacity of 339KW per hectare and the plant footprint will cover 118ha, roughly the size of 200 soccer fields.

The plant will generate 22% of the average electricity consumption of the mine or 94GWh per year.

Two hundred and forty jobs will be created during the construction phase, while a team of 12 people will be required to operate the plant once commissioned.

While the plant will provide significant direct employment opportunities during construction, South Deep Gold Mine in South Africa.

"ENERGY IS GENERALLY THE SECOND BIGGEST COST ITEM FOR OUR MINES ACCOUNTING FOR BETWEEN 10% TO 20% OF OPERATING COSTS." – PREECE GOLD FIELDS ▪ Electrical and transformer Gold Fields motor is a globally diversified gold

installation. producer with nine operating mines in

▪ Australia, Africa and West ElectricalPeru, panelSouth installation.

Africa as well as one and project in Chile.

▪ Operating support monitoring.

The company employs over 10 000 people.

more importantly it will enhance the sustainability of the mine which means we can continue to employ and develop employees, contribute to community development projects through our social and labour plans and contribute to the fiscus through taxes and royalties.

ARE THERE ANY IMMEDIATE PLANS TO REPLICATE THE SOLAR PROJECT AT ANY OF YOUR OTHER AFRICAN PROJECTS? Our two Ghanaian mines, Tarkwa and Damang, are currently studying longer-term renewable options, including solar. They currently have dedicated gas plants powering their operations and as gas is a low-carbon solution we have a bit of time before implementing renewable supplies. n I N F R A ST R U C T U R E

23

E N E R G Y – C O R P O R AT E P R O F I L E

CO-CREATING SOLUTIONS TO SA's ENERGY CRISIS

By Janice Foster, Energy Unit leader, Zutari

Cookhouse Wind Farm Development, South Africa.

T

he national procurement of new power generation has been reinitiated by a request for proposals (RFP) issued by the Department of Mineral Resources and Energy to procure 2 000MW under the Risk Mitigation Independent Power Producers Procurement (RMIPPP) Programme by June 2022 and with Renewable Energy Independent Power Producer Procurement (REIPPP) Window 5 bids due in August 2021.

A direct response to the short-term electricity supply gap identified in the Integrated Resource Plan of 2019, the RMIPPP Programme aims to alleviate our current electricity supply constraints.

It is similar in structure to the REIPPP Programme, but is the first programme of its kind to be technology-agnostic.

This means that hybrid plants are an option, and some of the preferred bidders selected comprise multiple technologies such as gas, renewables and battery energy storage.

The RFP for REIPPP Window 5 has been released with a published August bid date. And if Window 6 and Window 7 materialise, this will be positive not only for the energy industry, but also for the wider economy, as it provides certainty for the full value chain.

I believe the immediate challenge to the rollout of these RMIPPP projects relates to schedule and scale. In terms of installed capacity, the preferred bidder projects are larger than any we have seen under REIPPP, and are large even on a global scale.

The tight timelines and project scale have resulted in some skill constraints in the consulting engineering space, with electrical engineers in high demand at the moment. We expect this constraint to impact local contractors as well as they look to put these projects together. Despite these challenges taken as a whole, such procurement 24

I N F R AST R U C T U R E

Zutari Energy Unit leader Janice Foster.

Kashimbila Dam and Hydropower Project, Nigeria.

"ZUTARI’S MAJOR COMPETITIVE ADVANTAGE IN THE ENERGY SPACE IS THAT WE ARE A ONE-STOP SHOP." – FOSTER programmes are a successful and proven way to get new energy generation onto the grid and reassuring investors.

In terms of latest trends, we are seeing increased demand for renewable energy among mining and larger power-use clients. With the cap on self-generation having been lifted, there is significant interest in exploring the inclusion of renewable energy into the energy supply mix in these environments.

This shows the impact of how even relatively minor changes in policy can create an enabling environment that will further drive the rollout of renewable energy in the country.

On the technology front, the size of turbine technologies continues to grow. This has a knock-on effect on the balance of plant design and therefore the details that need to be included in environmental approval applications. Thus it is always important for developers to take a forward view in their project development planning to

ensure projects are not limited to using older and less efficient technology when they reach construction stage.

The speed at which technologies are changing and improving is a big part of what makes this industry such an exciting one to be part of.

Hydrogen remains an interesting future energy solution that, although still in its infancy, when it comes to rollout on a significant scale is likely to attract increased interest in the local market.

One of Zutari’s major competitive advantages in the energy space is that we are a one-stop shop.

Working closely with our other delivery units, we can do everything from providing environmental assessments to detailed geotechnical investigations and structural design and, of course, all of the detail in terms of the electrical engineering.

I believe we are one of the best energy teams on the continent, encompassing end-to-end services and a team of highly experienced individuals. n

Tired of seeing green?

Beyond compliance, ratings, and awards.

Think innovation catalyst, new opportunities, and wealth creation.

Deliberately co-created solutions enabling communities, environments and economies to thrive. A single-minded focus to continually deliver a lasting impact.On every project. For every client. Every single day.

Visit zutari.com/beyondgreen

M I X E D - U S E D E V E LO P M E N T S

DEMAND FOR

MIXED-USE DEVELOPMENTS SOARS

By Nelendhre Moodley

Business Square shopping mall with hotel apartments and offices in Muscat, Oman.

M

ixed-use developments seem to be on-trend both locally and on the continent, with a rising number of projects under way and in the pipeline.

Infrastructure recently caught up with Henning Rasmuss, director at Paragon Architects, to chat about the factors driving the appetite for mixeduse developments.

young consumers still being fascinated by the traditional allure of first-time home ownership.

COVID-19 has led to a massive shift in ownership of B-grade and C-grade office buildings, and many of those are now available for residential redevelopment. There is not much else one can do with those workplace carcasses left behind by shrinking and failing companies.

WHAT ARE SOME OF THE KEY HOUSING DEVELOPMENT TRENDS? Key trends include micro-living in highly serviced buildings, highly branded low-cost urban renewal projects, and for the mass market, row after row of price-point-driven walk-up apartments.

They also include student housing, which falls somewhere in the low-cost refurbishment market.

Interesting new departures may be bulking up developments on top of or next to shopping malls and their parking lots – long overdue and finally arriving.

"IT IS IMPORTANT TO THINK OF MIXED-USE AS 'THE NATURAL NORMAL', NOT AS SOMETHING THAT IS NEW AND RISKY." – RASMUSS

SHARE WITH US THE DRIVING FACTORS FOR THESE TRENDS? Affordability limits squeeze down the number of square metres, coupled with upper-middle-class 26

I N F R A ST R U C T U R E

Costs of transport, non-available infrastructure budgets and a general demand for urban convenience are driving housing demand to shopping malls. Although shopping malls have additional challenges of underperformance, they are able to support the additional bulk of existing infrastructure.

MIXED-USE DEVELOPMENTS ARE EMERGING AS A KEY TREND – WHY IS THIS AND WHAT ARE THE ASSOCIATED BENEFITS? The traditional South African city is modernist in conception, with working, living and playing neatly separated by vehicle corridors. Overlay apartheid spatial planning onto this, and we have properly dysfunctional cities that are expensive, inefficient and alienating.

Some of the mixed-use trends come from consumer demands and a new perception of city life as something desirable with high amenity and social value. Perhaps more so for Millennials and Gen-Z citizens.

Couple this with the shrinking and underperforming economy, we have less average risk appetite, smaller average projects, and more co-development partnerships. More specialist development skills need to be combined to pull off larger developments.

The benefits of mixed-use development are obvious: more convenience, less travel, greater choice, increased integration, more complex decision-making perhaps, but balanced with more robust income models. Furthermore, there is more nuanced and layered decision-making going into

developments. All in all, a positive landscape for work and life.

to development. Johannesburg as a city is in a deterioration freefall.

WHAT IS THE APPETITE FROM HOME BUYERS FOR SUCH DEVELOPMENTS? Right now the buyers are probably at the upper end of the market, in more highly branded “destination” and “funky address” developments. But the market is broadening, and low interest rates at the moment are making buyers bullish. It’s an interesting time.

WHICH MIXED-USE DEVELOPMENTS HAVE PARAGON ARCHITECTS DESIGNED RECENTLY, OR ARE IN THE PROCESS OF DESIGNING? In Cape Town we have been working on a very intricate site in the City Bowl, with the varied functions of the development really being stacked on top and inside of each other. The permutations of uses and adjacencies are vast, and decisionmaking is wide open, but also unpredictable.

Also in Cape Town, a super-flexible masterplan is afoot at the Newlands Stadium, and in Nelson Mandela Bay we are working on a mixed-use precinct centred around sport as a connector.

Interesting that open spaces are becoming desirable and valued, especially in tough South African urban settings. In Malawi we are working on a vast mixed-use precinct in Lilongwe, adjacent to the airport. This is more of a new town, but we are using the Millennium Development Goals as a design driver.

And in Angola, we are being commissioned to design a super-integrated business and living complex in the middle of Talatona. That project

WHAT ARE SOME OF THE LATEST MIXED-USE INITIATIVES UNDER WAY? In Cape Town, the vast Harbour Arch is probably leading the way. Expansions and redevelopments in the Cape Quarter similarly show that there is viable demand. Redevelopments around Pretoria University and the east of that city have some inventive new models.

In Johannesburg there has been a lot of talk about Cresta Shopping Centre as a test for additional housing to be inserted next to the mall. Generally though, Johannesburg is in a dark infrastructure decline. There is a lot of talk, but there are many capacity constraints

"THE BENEFITS OF MIXED-USE DEVELOPMENTS INCLUDE: MORE CONVENIENCE, LESS TRAVEL, GREATER CHOICE AND INCREASED INTEGRATION." – RASMUSS The Galloway Column project consists of hotel apartments, retail and a church in Accra, Ghana.

PARAGON ARCHITECTS ▪Paragon Electrical Architects, motor and established transformer in October

1997, installation. is an internationally active African business in Johannesburg ▪design Electrical panelbased installation.

and Cape Town, South Africa.

Paragon Group comprises three divisions: Paragon Architects, Paragon Interface and Paragon Architects South Africa.

The group delivers commercial architecture, master planning, interior design and space planning to clients in all property sectors.

It is a member of the Green Building Council South Africa (GBCSA).

Paragon Architects South Africa has a broad-based black economic empowerment rating of level 4 under the Construction Industry Transformation Charter. The company is 51% black South African-owned by Thulani Sibande.

▪ Operating support and monitoring.

Momo Precinct which includes offices, retail, apartments and a gallery in Rosebank, South Africa.

will have a little bit of everything and opens opportunities for multiple smaller co-developers, breaking the mould of dominant family-based control of major projects in that city. It is a large site that can comfortably be phased.

ANY OTHER INFORMATION YOU WISH TO IMPART? From a continental African perspective, it is interesting to look at the traditional East African super-mixed-use multi-storey retail and residential complexes that line so many streets in Kampala and Kigali and also Accra and Dakar. There are definitely lessons here about what can be achieved when you “break all the rules” of development, or if you never followed them in the first place.

Mixed-use is quite natural in large parts of the continent, and is not a new thing. It is important to think of mixed-use as “the natural normal”, not as something that is new and risky. It is how people want to live – naturally.

What happened under the tenets of modernist planning is that people across the world had their lives disaggregated and distorted. There is hopefully now a reversal to “real cities for real people”. n I N F R A ST R U C T U R E

27

LEGAL ADVICE

Mixed use schemes demand orderly rules Mixed use schemes Mixed use schemes demand orderly rules demand orderly rules Over the last decade and a half, mixed use developments have become increasingly popular. The fanfare surrounding these developments are fuelled by a shortage of green development sites, planning policy aimed at Over the last urban decade and aand half, regenerating areas, anmixed ethosuse that developments havewhere become people should live theyincreasingly work. popular. fanfare surrounding theseuse Over the The last decade and a half, mixed By ‘mixed use’ we any aremean fuelled bydevelopment a shortage ofwhich green developments have become increasingly comprises a mix of commercial, office, retail, development sites, planning policy aimed at popular.

The fanfare surrounding these hotel or leisure withfuelled residential use.

Whilst this regenerating urban areas, and an ethos that developments are by a shortage of green creates opportunities for developers, investors, people should live where they work.aimed development sites, planning policy at property managers and owners, regenerating urban areas, and anmixed ethosuse that By ‘mixedpose use’ we mean any development which schemes significant legal and people should live where they work. comprises a mix of commercial, office, retail, management issues for developers. Careful hotel or leisure with residential Whilstwhich this By ‘mixed use’implementation we mean any development planning and isuse. essential. creates opportunities for developers, comprises a mix of commercial, office,investors, retail, What thewith issues? property managers and owners,use. mixed usethis hotel orare leisure residential Whilst schemes pose significant legal and creates opportunities for developers, investors, The mixture of commercial and residential use management issues for owners, developers.

Careful property managers mixed use poses tensions and and challenges.

These include, planning many and essential. schemes poseimplementation significant legalisand amongst others: management issues for developers. Careful What are the issues?

•planning The range different interests of the andofimplementation is essential. stakeholders.

In any development there use The mixture of commercial and residential What are the issues? are a multiplicity of stakeholders whose poses tensions and challenges. These include, interests are not aligned including the use amongst many others: The mixture of commercial and residential developer, landowner, the investors, poses tensions and challenges. These planning include, • authority, The rangebuilding of different interests professional of the consultants, amongst many others: stakeholders.

In any development there team and end users. In a mixed use are arange multiplicity of can stakeholders whose • development The of different interests ofmore, the there be many interests are not aligned including the stakeholders.

In any development there including hotel consultants, hotel operators, developer, landowner, the investors, planning are a multiplicity of providers, stakeholders whose affordable housing residential authority, building consultants, professional interests are not aligned including the selling agents, commercial letting agents, team andmanaging end users.

Inthe a mixed use planning developer, landowner, investors, retailers, agents, maintenance development there can be many more, authority, building consultants, professional contractors, and the like. including consultants, hotel operators, team and hotel end users.

In a mixed use • development Tension between end use enjoyment affordable housing providers, residential there can beand many more, and nuisance For example, having selling agents, commercial letting agents, including hotellevels. consultants, hotel operators, retailers, managing agents, maintenance affordable housing providers, residential contractors, and the like. letting agents, selling agents, commercial retailers, managing agents, maintenance • Tension between end use and enjoyment contractors, and the like. and nuisance levels. For example, having • Tension between end use and enjoyment and nuisance levels. For example, having

a restaurant, bar, gym or supermarket which gets early morning deliveries may be viewed as a nuisance by residential tenants.

In phased developments, the timing for completion and occupation of residential a restaurant, bar,scheme gym or supermarket which elements of the will need to be gets earlycarefully morningindeliveries may bethat viewed planned order to ensure asrestaurant, a nuisance by gym residential tenants. a bar, oroccupiers supermarket which nuisance to residential caused In phased developments, themay timing gets early morning deliveries be for viewed by construction is minimised. completion and of residential as a nuisance byoccupation residential tenants.

Guiding the developer’s team elements of the scheme will need to for be In phased developments, the timing tocompletion includecarefully appropriate planned in orderrules toof ensure that and occupation residential nuisance of to residential occupiers caused elements scheme willto need to be Developers arethe often advised employ by construction isin minimised. planned carefully order to ensure that use special management structures for mixed nuisance to residential occupiers caused developments one sees many Guiding the and developer’s teaminstances by construction is minimised. where the body corporate assigns all its rights

to include appropriate rules

to a Property Association Guiding theOwners’ developer’s teamor a Master Developers areAssociation. often advised to employ Homeowners’ Whatever the to include appropriate rulesfor mixed special management structures use suggestion, the guiding constitutions and rules developments and one sees many instances Developers are often advised to employ are of utmost importance to adequately where the corporate assigns all its rights special management structures for mixed use account forbody the different interests of the to a Property Owners’ Association or a developments and one sees many instances various parties. For example, an often- Master Homeowners’ Association.

Whatever therights where the body corporate assigns all its encountered headache relates to the suggestion, guidingAssociation constitutions rules to a Property Owners’ or aand Master allocation ofthe expenses to the correct are of utmost importance toWhatever adequately Homeowners’ Association. the component within the development. account for the the guiding differentconstitutions interests of the suggestion, and rules Another overlooked concern is various parties.

For example, anprovision often- to are of utmost importance to adequately exclude certain types of relates businesses, and/or to encountered headache to the account for the different interests of the include rules which protect the interest allocation of expenses to the correct various parties. For example, an often- of occupiers regarding possible competition. component within the development. encountered headache relates to the allocation of expenses to the correct It may also be necessary to ensure that one Another overlooked concern is provision to component in within the development. component a types mixed use scheme does notto exclude certain of businesses, and/or dominate the which other. It may often be idealofto include rules protect the interest Another overlooked concern is provision to separate components in a scheme and maketo occupiers regarding competition. exclude certain typespossible of businesses, and/or provision for separate budgets, include rules which protect the trustees, interest of It may also be necessary to ensure that one meetings, the like. occupiers and regarding possible competition. component in a mixed use scheme does not dominate It may bethat ideal to It may alsothe be other. necessary tooften ensure one separate components a scheme and component in a mixed in use doesmake not provision for budgets, dominate theseparate other. It may oftentrustees, be ideal to meetings,components and the like.in a scheme and make separate provision for separate budgets, trustees, meetings, and the like.

LEGAL ADVICE LEGAL ADVICE

In crafting scheme rules, the draftsperson must remain within the provisions of the Sectional Titles Act and Sectional Title Schemes Management Act. This is more difficult than is appreciated at first glance because the primary In crafting rules, the draftsperson must purpose ofscheme the legislation, when first enacted, remain within the provisions of the was to provide a legal framework forSectional people to Titles Act own and Sectional Title Schemes In crafting scheme the draftsperson must own their flats rules, and to manage the resulting Management Act. This more remain within the provisions of difficult the Sectional schemes.

Despite manyisadaptations tothan the is appreciated atSectional first because the primary Titles Act and Title Schemes applicable laws, thisglance underlying purpose remains. purpose of theAct. legislation, when first enacted, Management This is more difficult than is Good rulesatcome first, not later was to provide a legal framework forthe people to appreciated first glance because primary own their own flats and to manage the resulting purpose of the legislation, when first enacted, So, giving expert advice to a developer when schemes.

Despite many to the to was to provide a legal framework people the rules are crafted, is ofadaptations utmostfor importance. applicable laws, this underlying purpose remains. own their flats and to manage the resulting When theown developer of the scheme applies for schemes.

Despite many adaptations to the the opening of the register, he or she may Good rules come first, not later applicable laws, this prescribed underlying purpose remains. change a few of the management So, giving expert advice to a developer when rules, and onlycome those first, which not are alterable.

Good rules later the amended rules are crafted, is of utmost importance.

No or new management rule may When the expert developer of the applies So, giving advice to developer whenfor contradict any provision ofascheme the Act or be opening of the register, he or she may the rules are crafted, is of utmost importance. unreasonable and all rules must apply equally change a few of the prescribed management When the developer of applies to owners of section putthe to scheme the same use. for rules, and only those whichhe areoralterable. the opening of the register, she may The ideal opportunity for developers to may ensure No amended or the newprescribed management rule change a few of management the existence appropriate rules for contradict anyofthose provision of the Act or the be rules, and only which are alterable. development, exists establishment unreasonable and allprior rulestomust apply No amended or new management rule equally mayof the body corporate as it is quite tricky to to owners of section put of to the Act same contradict any provision or use. be amend the rules later on, when the scheme has been unreasonable and all rules must apply equally The ideal opportunity for developers to ensure opened and to owners of registered section putintothe thedeeds sameoffice use. and existence of appropriate rules for the on athe body corporate has come into existence development, prior to establishment of The idealofopportunity for to ensure transfer the exists units in thedevelopers development. body corporate as it is quite tricky to amend the existence of appropriate rules for the Contact Steyn (philips@stbb.co.za), the rulesPhilip later exists on, when the has been development, prior toscheme establishment of Annetjie Coetsee (annetjiec@stbb.co.za), opened registered deeds office and the bodyand corporate as itin isthe quite tricky to amend Allan White (allanw@stbb.co.za) Steven a body corporate come into or existence on the rules later on, has when the scheme has been Borwick (stevenb@stbb.co.za) for expert transfer and of the units in the development. opened registered in the deeds office and assistance. a body corporate has come into existence on Contact Philip Steyn (philips@stbb.co.za), transfer of the units in the development.

Annetjie Coetsee (annetjiec@stbb.co.za), Allan White (allanw@stbb.co.za) or Steven Contact Philip Steyn (philips@stbb.co.za), Borwick Coetsee (stevenb@stbb.co.za) for expert Annetjie (annetjiec@stbb.co.za), assistance.

Allan White (allanw@stbb.co.za) or Steven Borwick (stevenb@stbb.co.za) for expert assistance.

stbb.co.za Commercial Law | Conveyancing | Development Law | Labour Law | Estates | Family Law | Litigation | Personal Injuries & Third Party Claims

stbb.co.za stbb.co.za

Cape Town T: 021 406 9100 Blouberg T: 021 521 4000 Centurion T: 012 001 1546 Claremont T: 021 673 4700 Tyger Valley T: 021 943 3800 Bedfordview T: 011 453 0577 Fish Hoek T: 021 784 1580 Illovo T: 011 219 6200 East London T: 043 721 1234 Commercial Law | Conveyancing | Development Law | Labour Law | Estates | Family Law | Litigation | Personal Injuries & Third Party Claims Helderberg T: 021 850 6400 Fourways T: 010 001 2632

Commercial | Development Law Blouberg | Labour Law | Estates Family Law | Litigation | Centurion Personal Injuries & Third Party Claims Cape Town Law | Conveyancing T: 021 406 9100 T: 021| 521 4000 T: 012 001 1546

Big enough to take on anything.

Small enough to make it personal.

120 years of having the right people in your corner.

Since our doors opened at the turn of the century, we have been passionately pursuing the kind of partnerships that are both highly professional, and highly personal, solving both big and small problems with equal aplomb.

Whether we assist first-time home owners with the transfer of their home or consult

on a multi-million Rand development, we approach it with the same personal touch.

Being in your corner means we have pledged to support, defend and assist you in all the things that matter to you.

We are here for the long run.

We are The Big Small Firm.

stbb.co.za Commercial Law | Conveyancing | Development Law | Labour Law | Estates | Family Law | Litigation | Personal Injuries & Third Party Claims

Cape Town Claremont Fish Hoek Helderberg

T: 021 406 9100 T: 021 673 4700 T: 021 784 1580 T: 021 850 6400

Blouberg Tyger Valley Illovo Fourways

T: 021 521 4000 T: 021 943 3800 T: 011 219 6200 T: 010 001 2632

Centurion Bedfordview East London

T: 012 001 1546 T: 011 453 0577 T: 043 721 1234

H E A LT H & S A F E T Y – C O R P O R AT E P R O F I L E

ASP Fire is undertaking a detailed survey of older buildings in Joburg.

STOPPING FIRES BEFORE THEY START

M

ost fire engineering efforts focus on post-ignition fire safety systems that are designed to contain or suppress a fire. Food and pharmaceuticals are two industries that cannot afford any smoke contamination of products, let alone the loss of product, equipment, buildings or business continuity.

A group of innovative fire engineers at ASP Fire led by CEO Michael van Niekerk focuses on preventing fires through a practical, common sense approach that business owners and managers can understand.

Fire risks that cannot be prevented are managed or mitigated through fire-detection and firesuppression systems that are risk-appropriate and reduce the risk to a level as low as is reasonably practical. There is a point of inflection beyond which the cost of reducing risk no longer represents a value-for-money exchange, or before which the spend does not reduce fire risks to an acceptable level.

Implementing no-nonsense measures that reduce or eliminate fire risks in a sustainable manner is a no-brainer approach to fire management.

Understanding and addressing the top contributors to ignitions, such as electrical faults, lighting faults, heating or cooking-related ignitions or heat-based packaging equipment failures and arson, help reduce

The food and pharmaceutical industries are two industries that cannot afford any smoke contamination of products.

30

I N F R A ST R U C T U R E

fire risk through a no- or low-cost approach to fire management.

This approach, however, just like a new year’s resolution, is difficult to implement, especially when there are 1 000 employees to get into shape. This approach often requires time and a managementdriven implementation of the changes to effectively reduce risk.

Van Niekerk and his team take care to explain why, how and what fire-protection systems are required

"ASP FIRE’S FIRE-PROTECTION DESIGNS ARE BASED ON LOCAL SOUTH AFRICANBASED CODES AND STANDARDS." – VAN NIEKERK for each particular combination of building, process or storage configuration and population levels.

Business owners must understand how their hard-earned cash that is going to be spent on a multimillion-rand fire suppression system will effectively reduce their risks before they make the procurement decision. They need to clearly

understand why they need to spend the money, including the risk of loss of life and business interruption that may result in them losing a key market position to a competitor.

ASP Fire has successfully designed fireprotection systems for clients from mining and explosive manufacturers to industrial-agricultural packhouses and the retail, residential and hospitality industries. This wide experience base helps the ASP Fire team better understand the requirements of each business or organisation that it deals with.

These fire-protection designs have been based on local South African-based codes and standards, including SANS- and ASIB-based designs, as well as international standards such as NFPA, FM Global and the British BS fire-protection codes.

Engaging with the local and international insurance industry is just as important as engaging with the client. A healthy relationship based on mutual respect and cooperation has ensured that key insurer concerns are addressed, while providing clients with an appropriate risk-reduction programme that meets their cash flow or capital availability needs.

The approval of a fire-protection design at the early stages of design development results in a solution that meets the needs and expectations of all of the parties involved in the process.

Van Niekerk and his team of engineers and support staff are passionate about providing great service to their clients. They are available and willing to jump into a plane or car and travel to visit clients and see the fire risks first-hand, whether in Cape Town, Upington or Tzaneen. The emphasis is on building relationships and providing a transformational service to clients across Africa that endures beyond a single transaction. n

STOPPING FIRES BEFORE THEY START!

Fire Risk Assesment Rational Fire Designs +27 11 452 2169

ASPFIRE Chat to us on LinkedIn

BUREAU VERITAS

EXPERTS IN QUALITY ASSURANCE/ QUALITY CONTROL AND CONSTRUCTION SAFETY SERVICES A world leader in Testing, Inspection and Certification Services, Bureau Veritas delivers high quality services to help our thousands of clients meet the growing challenges of quality, safety, environmental protection and social responsibility.

We provide Quality Assurance/Quality Control (QA/QC) services during the on-site construction phase, to ensure that projects are built according to the quality plan approved by the Project Owner, and that construction activities comply with relevant national and international regulations.

Our QA/QC services provided during the construction phase include: • Reviewing the consistency of the quality plan and execution drawings as submitted by the contractor(s) and approved by the Project Owner; • Proposing any necessary amendments in order to meet the specified quality requirements; • Performance of planned inspections; • Checking the compliance of site works with execution drawings, project specifications and approved materials; • Through the examination of testing and/or inspection reports, we will verify the quality of building materials, prefabricated components and their origin according to the given specifications; We provide Construction Site Safety services, which include reviewing project documents and performing inspections related to applicable local Health and Safety standards and codes, in order to inform the Project Owner about the implementation of the Health and Safety measures on the construction site along the project duration.

Construction Site Safety may apply both to Health and Safety issues regarding the own activity of the Project Owner’s main contractor(s) and/or sub-contractor(s), and to the risks resulting from the simultaneous or successive interventions of other project participants during the construction project. Our services are structured to support the life cycle of your building and infrastructure assets, from planning and design, through procurement of materials, components, equipment and services, to construction and operation.

We facilitate business continuity and environmental protection by assessing the safety and performance of in-service facilities. Our stringent daily monitoring of onsite construction operations ensures a safe work environment for direct employees, contractors and sub-contractors.

Contact us for assistance with all your QA/QC and construction safety requirements, and certification needs

Bhavin Mistry Business Developer 011 217 6300 www.bureauveritas.africa Bhavin.mistry@bureauveritas.com

E N G I N E E R I N G – C O R P O R AT E P R O F I L E

DESIGNING ENGINEERING SOLUTIONS FOR MINING AND PUBLIC INFRASTRUCTURE

S

emane has its roots firmly in the mining industry and over the years the company has used its experience to expand into the public sector market.

The disciplined and rigorous project-planning and risk-management principles widely applied in the mining industry have proved beneficial to public sector clients. Semane applies these principles in the delivery of critical and urgent public infrastructure according to the highest technical standards, on time and within budget.

“Semane Engineering Solutions is an independent majority black-owned provider of multi-disciplinary engineering solutions in mining and public infrastructure. I am proud to say I have been involved since day one,” says Semane chairman Joel Mokgohlwa.

Semane Engineering Solutions has worked with dozens of clients and taken on hundreds of projects in sub-Saharan Africa. The company, which has built up a huge amount of industry experience, is well respected for its track record of delivering engineering solutions to clients such as Anglo American, BHP Billiton, De Beers, Exxaro, Foskor, Goldfields, Great Dyke, Kumba, Rio Tinto, Pikitup, Seriti, Universal Coal and many others.

“Our strategy is anchored on first-class execution, a people development-oriented approach and a client-centric focus to the delivery of sustainable infrastructure in sub-Saharan Africa,” says CEO Muzi Siyaya.

The company recently celebrated its 21st anniversary. From the outset, what has made Semane successful is its technical and project management expertise. “It matters a great deal 34

I N F R A ST R U C T U R E

to our clients that we understand their challenges – often better than they do. We take our role as a trusted adviser seriously. We design ingenious and innovative solutions that can have huge financial payoffs in the long run,” says Siyaya.

Semane adopts an end-to-end solution to the delivery of infrastructure. “We work with our clients to design appropriate infrastructure delivery strategies, including project finance and structuring. Our clients get what they value above all else: reliable outputs. They know their solution is designed for peace of mind,” says Mokgohlwa.

"WE DESIGN INGENIOUS AND INNOVATIVE SOLUTIONS THAT CAN HAVE HUGE FINANCIAL PAYOFFS IN THE LONG RUN" – SIYAYA Semane operates in the following markets: mining, water, transport and infrastructure.

The company has a depth of technical expertise backed by highly experienced engineers who have worked extensively in the mining, water and transport industries.

“With our advanced project management tools and systems, Semane can deliver complex projects in the private and public sectors, using both the EPCM and EPC infrastructure delivery methods,” says Siyaya. n

OVER THE YEARS, THE COMPANY HAS BUILT UP A ▪ Electrical FORMIDABLE motor andDATABASE transformer OF PROJECTS AND DESIGNS: installation.

▪ panel installation.

• Electrical Konkola Copper Mine – Nº 4 ShaR, ▪ Operating infrastructure and and plant: Zambia support monitoring.

• Umtu – Nº 1 ShaR surface infrastructure: Kalagadi Manganese, SA • Khutala Colliery – mini pits DPS: BHP Billiton, SA • Orapa Mine – 2000 expansion project: Debswana, Botswana • Goedgevonden Colliery – coal handling and treatment plant: Xstrata Coal, SA • Sadiola Gold Mine – infrastructure, Mali • Waterval Smelter – smelter project: Anglo Platinum, SA • Mponeng Mine – ShaR deepening project, AngloGold Ashanti, SA • Zibulo Colliery – opencast and underground mine: Anglo Thermal Coal, SA • Geita – owner mining project: AngloGold Ashanti, Tanzania • Mogalakwena – opencast infrastructure: Anglo Platinum, SA • Gold Mine – CIS plant, Mali • Arnot Colliery – provincial roads intersections and mine rehabilitation: Exxaro, SA • Rapid Loading Terminal – Anglo Thermal Coal, SA • Mafube Colliery – LifeX Expansion, Anglo Coal, SA

Muzi Siyaya, CEO Semane Engineering.

© ISTOCK – scyther5

SEMANE ENGINEERING SOLUTIONS

© ISTOCK – SeventyFour

SEMANE DESIGNS ENGINEERING SOLUTIONS FOR MINING AND PUBLIC INFRASTRUCTURE. Our clients are pioneering.

Any mining and public infrastructure project is a monument to the people who envisaged it.

How would you like to What type of engage with Semane? engineering solution are you From pre-feasibility studies to project handover. looking for?

22 Wellington Road, Parktown, Johannesburg, Gauteng 2193, South Africa

Get in touch Tel: +27 (0) 11 891 1600 Fax: +27 (0) 11 833 1039 General: corporate@semane.com Sales: sales@semane.com Accounts: accounts@semane.com

www.semane.com

From civil infrastructure to control and instrumentation to environment impact.

T E C H N O LO G Y – C O R P O R AT E P R O F I L E

© ISTOCK – gorodenkoff

BUILD SMARTER

WITH DIGITALISATION RIB CCS ▪ Electrical motor and transformer

Start your digital transformation journey installation. today. Partner with RIB CCS. ▪ Electrical panel installation.

Visit www.ribccs.com for more.

▪ Operating support and monitoring.

T

he construction industry is tool-based – there are different tools for different jobs. This creates silos of information and work that are unstructured and uncollated. Andrew Skudder, CEO of RIB CCS, talks about a solution-based collaborative platform and one central database.

“This digital platform approach empowers the sector to use the increasingly important asset – data – to make better decisions and ensure that projects are delivered more efficiently, on time and within budget,” says Skudder.

WHAT VALUE DOES RIB CCS BRING TO THE CONSTRUCTION SECTOR? Our mission as a business is to digitally transform the construction and engineering industry into a more sustainable, advanced industry.

Digital transformation increases collaboration, productivity and efficiency which results in greater profitability and sustainability for companies.

By assisting construction companies to build more with fewer resources, we then benefit society. Those saved resources can be directed to another project. An effective built environment (and the associated infrastructure) is key for people’s quality of life and prosperity.

WHAT IS THE MTWO COMPLETE CONSTRUCTION CLOUD? This is a cloud platform that provides end-toend management across the design, build and operate phases of the construction life cycle. It is a partnership between RIB and Microsoft. RIB hosts iTWO 4.0 software with 5D BIM (five-dimensional building information modelling) capabilities on the Microsoft Azure platform.

36

I N F R A ST R U C T U R E

Furthermore, Microsoft Azure offers worldclass cyber security and other capabilities like AI, HoloLens and mixed reality that are layered on top of the software – creating additional value. A critical part of MTWO is 5D BIM, which allows experienced users to develop models that demonstrate how changes to materials, layouts, square metreage and other design elements affect the appearance of a facility, as well as the cost and schedule of construction.

With a 3D model, costing and time schedule, a client can simulate a project before construction has started and then optimise that project. A 3D model is a visual representation of the project and if you add a functionality like HoloLens, one can even do a virtual walkthrough. Artificial intelligence functionalities on MTWO are chatbots, voice assistance and machine learning.

"BY ASSISTING CONSTRUCTION COMPANIES TO BUILD MORE WITH FEWER RESOURCES, WE THEN BENEFIT SOCIETY." – SKUDDER The beauty of MTWO is that it is open architecture with open APIs, and this allows it to interface with other tools within the construction value chain. RIB CCS is bringing this product to the Southern African, UK and Middle East regions.

We are also continuously working on further enhancing the platform with new technologies and modifications that may improve or better reflect the way that contractors operate within these markets.

Andrew Skudder.

WHAT ARE COMMON MISCONCEPTIONS ABOUT DIGITALISATION? People think that digital transformation is expensive and time consuming. MTWO can be implemented in months, not years. But this often depends on a client’s implementation approach – some clients choose to start with estimating, and then a few months later move on to planning and, a few months later, procurement. Buying a bestof-breed solution that is purposely built for your specific industry can be expensive, but there is limited customisation and no development.

We will be developing an out-of-the-box solution, where MTWO can be reconfigured and pre-customised, which lowers the barriers to entry.

But if there is poor planning with no digital roadmaps and unclear objectives, digital transformation can be expensive and time consuming. Change management, led from the top, is key to a successful transformation.

“The construction industry has taken the longest time to embrace digital technology. But we are now at an interesting stage within the built environment where we have solutions like MTWO that are available to us. This is a unique opportunity for owners, developers and contractors to embrace this technology and create a more collaborative, transparent, efficient, and productive industry,” concludes Skudder. n

E IV NT S U E CL D EV X E RI B HY

23 - 25 AUGUST 2021 | jOHANNESBURG, SOUTH AFRICA

CONNECTING THE CONSTRUCTION INDUSTRY IN SOUTHERN AFRICA ACCELERATE YOUR BUSINESS BY SUPPORTING AFRICA’S CONSTRUCTION GROWTH AND RECOVERY

Meet industry buyers and distributors

Gain access to latest project updates

Access to alternative market opportunities

Access to credible and affordable training

NEW THIS YEAR! EXTENDED CONTENT DRIVEN FEATURE:

Connect with a wider audience face- to-face and digitally.

Contact Kenneth Masvikeni T: +27 21 700 5509 E: KennethMasvikeni@dmgevents.com Host city:

Co-located with:

AFRICAN

CONSTRUCTION POWERED BY: NAFBI

AWARDS

www.africanconstructionexpo.com

C O R P O R AT E P R O F I L E S

Michael van Niekerk, CEO ASP Fire

ASP Fire: modern, client-based, innovative fire engineering

ASP Fire is a group of passionate, innovative consulting fire engineers who provide cost-effective, risk-appropriate fire-protection solutions to clients across all industries in Africa.

Michael van Niekerk leads this team of engineers that focus on understanding the real fire risks that their clients face and develop fireprotection systems based on design codes and standards, as well as bespoke, performance-based solutions engineered to meet the specific needs of the business they are assisting.

A client-centric approach results in clients understanding the fire risks that they face, as well as the appropriateness of the fire-protection systems that have been developed by ASP Fire, helping clients in the decision-making process.

ASP Fire has clients across South and Southern Africa and is active in all areas of the built environment, from new to historic buildings and from residential to industrial-agricultural and ultra-high-risk manufacturing facilities. Website: www.aspfire.co.za

ERWIC AWARDS © ISTOCK

CELEBRATE WOMEN IN THE CONSTRUCTION INDUSTRY

The Empowerment & Recognition of Women in Construction (ERWIC) Awards, first held in 2020 by the Construction Industry Development Board (cidb), was met with great success. It achieved its goal of showcasing femaleled projects and achievements in the sector.

The awards programme is taking place again this year, with entries opening from 7 June to 16 July, and the awards ceremony taking place in August.

In a traditionally male-centric industry, it is important to make tangible efforts towards transformation and inclusion. The ERWIC Awards aim to encourage excellence among women and commitment among stakeholders to support women in their professional growth and development.

Through these awards, the cidb aims to promote role models for women in lower grade construction categories and motivate women in the higher grades. The awards recognise entities and individuals who support gender transformation and mentorship of women within the industry.

For more information and to enter the awards visit www.erwicawards-cidb.co.za

42

I N F R AST R U C T U R E

Henning Rasmuss, director at Paragon Group.

Eswatini Railways Head Office.

Paragon Group is an internationally active African design business. We deploy curiosity and empathy as guiding values to design memorable and desirable spaces for life to unfold.

We are optimistic and energetic, focused and competitive, uncovering real lifestyle potential in each project we touch.

We are excited about the present and future of African cities, and we are heavily invested in this continent and its future. We fully embrace the South African construction and development community as an ecosystem in which we thrive.

We are acknowledged as a preferred employer and career builder for young architects, technologists and interior designers. We know that our projects can compete with the best the world has to offer. We continue to work in the grand tradition of Johannesburg as a centre for pragmatic innovation and astounding centres of excellence.

Website: www.paragon.co.za

Pinsent Masons is a full-service international law firm and provides a network of offices in 26 locations across the globe in Europe, Africa, the Middle East and Asia Pacific.

Our extensive Africa practice, serviced primarily by our teams in Johannesburg, London, Paris, Dubai and Beijing, has market-leading expertise within the energy and infrastructure sectors. Our construction team in particular is recognised by leading independent legal directories as first in class.

At Pinsent Masons we pride ourselves on innovation and our commitment to diversity. We were named Law Firm of the Year at the Legal Business Awards 2019 and The Lawyer Awards in 2018. These awards recognise our achievements, from continuing to be a market leader across our five focus sectors, to expanding our revenue streams outside of traditional legal services through a range of innovative new law products.

Website: www.pinsentmasons.com

Junaid Banoobhai

Jason Smit

Partner +27 10 493 4604

Partner +27 10 493 4564 jason.smit@pinsentmasons.com

junaid.banoobhai@pinsentmasons.com

DIGITALLY TRANSFORMING THE ENGINEERING AND CONSTRUCTION INDUSTRY

Technological advancements have always driven the built environment forward. It’s this technology that’s helped increase productivity, improve collaboration, and tackle more complex projects. It’s what drives our business too, and what makes us the preferred supplier of specialised software solutions to the engineering and construction industry, serving more than 40 000 users in over 80 countries.

Underpinned by more than 35 years of industry expertise, passion and innovation, we offer digital solutions that are intelligent by design, fit for purpose and aimed at transforming operating models and adding value to the businesses we serve.

Managing the entire construction project life cycle in real time, our software and services give you complete control, from estimate to final account, making us the global software company of choice for leading companies in the built environment.

Partner with us and ensure you never get left behind. Visit www.ribccs.com or email sales@ribccs.com.

I N F R A ST R U C T U R E

43

© ISTOCK – SeventyFour

C O R P O R AT E P R O F I L E S

SEMANE DESIGNS ENGINEERING SOLUTIONS FOR MINING AND PUBLIC INFRASTRUCTURE. 22 Wellington Road, Parktown, Johannesburg, Gauteng 2193, South Africa Get in touch Tel: +27 (0) 11 891 1600 Fax: +27 (0) 11 833 1039 General: corporate@semane.com Sales: sales@semane.com Accounts: accounts@semane.com

www.semane.com

Zutari – 90 years in business

The firm’s award winning client service and ability to create tailor-made solutions to meet clients’ individual and business needs have grown the once small, traditional practice into arguably the largest property practice in South Africa today, with a well established reputation for providing practical advice in all areas of law.

The Big Small Firm

stbb.co.za

Commercial Law | Conveyancing | Development Law | Labour Law Estates | Family Law | Litigation | Personal Injuries & Third Party Claims Cape Town Claremont Fish Hoek Helderberg

44

T: 021 406 9100 T: 021 673 4700 T: 021 784 1580 T: 021 850 6400

I N F R A ST R U C T U R E

Blouberg Tyger Valley Illovo Fourways

T: 021 521 4000 T: 021 943 3800 T: 011 219 6200 T: 010 001 2632

Centurion T: 012 001 1546 Bedfordview T: 011 453 0577 East London T: 043 721 1234

Zutari is an infrastructure advisory, design and engineering consultancy.

Our purpose is to co-create an engineered impact that enables environments, communities and economies to thrive.

In the past 90 years, we’ve formed a deep-rooted relationship with Africa, the Middle East and their people. Staying in business for almost a century is testament to our agility and resilience.

We have moved beyond traditional engineering and work collaboratively to integrate technical and creative thinking. This process of co-creation allows us to unearth new opportunities with our clients and partners. It’s how we expand our creative capacity to engineer solutions for impactful, lasting change.

Zutari is a future-fit digital practice – we continuously innovate to deliver better solutions.

Our broad collective of in-house, industry-recognised engineering consultants and trusted advisers provides seamless and integrated delivery. We combine technical mastery, creative intelligence and digital smarts to reframe traditional engineering for a new world.

Website: www.zutari.com