Construction will start this month on a new Pretoria head office for the Department of Education in what is South Africa's first public private partnership based on the National Treasury's standardised provisions for PPPs.

The PPP agreement with the department for the design, construction, finance, operation and maintenance of the head office was concluded by The Sethekgo Private Party (Pty) Ltd.

Sethekgo shareholders are Old Mutual Investment Group Property Investments, Makhosi Concessions, Fikile Concessions, Drake & Scull, Stercorp Capital and Old Mutual Ideas Fund.

Project funding for the 30,000m2, four-storey development, bounded by the Civitas Building, Struben, Paul Kruger and Bloed Streets in the Pretoria CBD is being provided jointly by Standard Bank and Old Mutual Specialised Finance.

Construction of the building which will house conference and printing facilities as well as a staff restaurant, will be undertaken by Group 5, Makhosi Infrastructure and Fikile Construction. The facilities management will be undertaken by a joint venture between Drake & Scull and Old Mutual Investment Group Property Investments.

"Governments internationally are increasingly adopting the PPP process to enable the provision of public facilities and services," said Robin Bugler, project executive at Old Mutual Investment Group Property Investments. "It is a recognition by government that they are best positioned to focus on governing a country and the private sector is best positioned to maximise value for money in the provision of certain facilities and services."

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