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.

The building design is based on an African aesthetic and will provide modern facilities and services for 1 200 departmental staff. 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.

The project is based on a 27-year contract period that envisages two years of construction and 25 years of operations, said a director of Sethekgo, Robin Bugler, project executive at Old Mutual Investment Group Property Investments.

“Governments internationally are increasingly adopting the PPP process to enable the provision of public facilities and services,” he said. “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. 

“The key aspects on which government determines the merits of adopting the PPP process for a specific project are affordability, risk transfer and value for money.”

Bugler said that in South Africa, PPP projects are providing a strong tool for government to encourage BEE participation in large property and infrastructure projects.

“The process has been instrumental in involving BEE participation in all aspects of equity participation and skills transfer. In this project it is evidenced in various aspects including equity shareholding, design consultancy services, construction and facilities management services. “

Bugler said it was to the credit of both government and the private sector that challenges in establishing market benchmarks that satisfy the newly established PPP requirements had been overcome. A foundation had been established for the project to be undertaken with confidence and for the structuring of future PPP projects.