Premier

Question by: 
Hon Cameron Dugmore
Answered by: 
Hon Alan Winde
Question Number: 
9
Question Body: 

With regard to the Conradie Better Living Model:

  1. Whether any public funds have been spent on the project since its inception to date; if not, why not; if so, (a)(i) how much of these funds were spent on consultants, (ii) what is the detailed breakdown of the consultants who were paid and (iii) what is the empowerment status of each of these consultants;
  1. what is the total (a) number of beneficiaries who benefitted, (b) amount in state subsidies awarded to them to date and (c) anticipated amount in subsidies that will be spent at the completion of this project;
  1. whether provision was made for the building of a public primary and high school on the property; if not, why not; if so, what are the relevant details;

(a) what process was followed to determine which private education provider will operate the schools on the premises and (b) what are the details of the minutes of meeting where these decisions were taken;

  1. whether such providers will pay rental for the properties on which the school or schools are to be built; if not, why not; if so, what are the relevant details;
  1. whether any black-owned companies will benefit from this project; if not, why not; if so, (a) what are the details of such companies and (b) what is the extent to which they will benefit from the project?
Answer Body: 
  1. [a][i][ii][iii] Funding was secured from the Department of Transport and Public Works [DTPW] for enablement with the appointment of the Transaction Advisory team consisting of Technical, Legal and Financial specialists.

Consultant

Specialist

Amount

BBBEE Status

ARG Design

Technical

R 3 023 363

2

Edward Nathan Sonnebergs Inc

Legal

R 5 672 679

2

Ignis Project & Finance Solutions

Finance

R 6 309 570

4

KPMG Services

Finance

R 4 591 215

2

Cast Stone Mouldings

Project Manager

R 4 769 168

4

Total

 

R 24 365 168

 

 

The City of Cape Town has allocated Urban Settlement Development Grant [USDG] funding of R221m for bulk services and R55m for electrical services for the site.

 

The Department of Human Settlements [DHS] allocated R118m Human Settlement Development Grant [HSDG] funding to the project.

  1. [a] Conradie will deliver 432 Social Housing units in phase 1 of the rollout. In January 2022 the first block of phase 1, consisting of 66 units, was handed over and to date 180 social housing units have been handed over to the Social Housing Institute [SHI] who will manage the Social Housing. 32 units are currently occupied which equates to 51 occupants.

[b] No state subsidies are awarded to end beneficiaries. The Social Housing Regulatory Authority [SHRA] allocates a grant/subsidy per social housing unit for the development which is managed and controlled by a fully accredited Social Housing Institute.

[c] The SHRA Consolidated Capital Grant [CCG] for Conradie phase 1 that was approved is R330k per unit which equates to R143million in total.

  1. No, the City’s rezoning approval was very specific in that two affordable private schools must be provided onsite, for a minimum of 1,600 learners. The surrounding public schools would then be upgraded in terms of capacity if needed, to accommodate those that cannot utilize the affordable private schools.
  1. [a] The operation of the private education provider was an open market process undertaken by the Developer that looked at school offering, proposed school fee, growth strategy of the school provider, the financial capability and status of the school provider and offering to the new community.

[b] There has been no school provider appointed at this stage. Being a key aspect of the development, the success of the school is highly linked to the success of the development and its children, hence it is a key element of the success of Conradie Park.

  1. Yes, this will be a commercial, private school that will have to pay for the land, the services, and the physical building that the school will be housed in. This is a normal, commercial private school operation.
  1. [a] During the construction phase of the project, there are numerous empowerment targets around youth, women, disabled, ex-convicts and ex-drug addicts, EME and SME businesses that the Developer must meet which are regulated as per the Land Availability and Development Agreement [LADA].
  1. The developer is engaging the local business forums in this regard and ensuring they employ from within the local communities.

The developer and main contractor are a Level 1 BBBEE company with 92% black ownership, 64% black women ownership, both in voting rights and in economic interest, along with their full Professional Consultant team having exemplary BBBEE credentials as part of the project procurement.

Date: 
Friday, February 18, 2022
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