New govt precinct for Tshwane to cost R18bn – De Lille

Public Works and Infrastructure Minister Patricia de Lille announced the first of five integrated precinct developments in Tshwane on Wednesday.

The first phase will see four government head offices as well as a shelter for victims of gender-based violence being built at the Salvokop development precinct, which is expected to be completed at the end of 2022.

“This development in Salvokop will see new government offices being developed and located closer to communities to bring about greater integration with this planned mixed-use development. It will also generate hope for the construction sector and our communities,” De Lille said in a statement.

She added Salvokop was part of the Tshwane inner city regeneration programme.

The total current development will encompass 524,000m² at an estimated cost of R18bn.

It will include:

• Provision for office space, commercial, residential, retail, open space, schools and healthcare;
• 24-hour security and community public spaces; environmentally sustainable and local content priority;
• Prioritisation of integrated public and non-motorised transport;
• The potential to create more than 5,000 jobs during the construction of phase 1.

“The Department of Public Works and Infrastructure [DPWI)] is committed to reversing the legacy of apartheid spatial planning by stopping urban sprawl and building compact, mixed-use developments that will bring communities closer to government services by using its property and land as a catalyst for public good,” De Lille said.

“Within the DPWI, I have a component focused to deliver on this. The planning and precinct development aims to guide the location of government infrastructure development for the state through integrated planning that will be sustainable, inclusive and accessible to communities by creating a destination where citizens can live, work and play in a central location.”

She said to achieve integrated development, collaboration was required with all spheres of the government and private sector.

“This collaboration is based on a directive issued by the Cabinet which confirms the importance of the government remaining within the inner city of Tshwane. This strategic collaboration also includes the National Treasury and other national government departments.”

The precinct will be one of five located within the inner city and it will be a benchmark precinct.

Stats SA’s head office, the first property to be completed in the precinct, is a flagship development of 56,000m² that was completed in 2016.

Phase one of the Salvokop development will accommodate an additional four government head offices – the departments of correctional services; higher education and training; social development and home affairs. It will also house agencies such as Sassa and the National Development Agency.

“This phase is expected to contribute an estimated R6.5bn of blended financing. The National Treasury is assisting the DPWI with accessing government grants and the DPWI will also be applying for funding from the president’s R100bn infrastructure fund,” said De Lille.

“The DPWI procured the land in Salvokop, Pretoria, for this first precinct development from Transnet for R79m.”

A DPWI tender for the provision of bulk and internal services is currently open to the market.

The contractor will be appointed by March 2020, while the construction of the bulk and internal services will commence in April 2020 and is set to be completed in December 2022.

“The legacy of apartheid spatial planning means that many of the poorest residents in our cities still live on the outskirts of these cities far away from opportunities and the government services which they need access to,” De Lille said.

“Last week, the DPWI also handed over a building in Salvokop to the Department of Social Development to be used as a shelter for victims of gender-based violence.”

De Lille said the government precincts would reduce costs, encourage shared services and promote the green and digital economy – and this would be embodied in the Salvokop development.

Next year, consultations would continue with other cities namely, the City of Cape Town, Buffalo City Municipality and City of eThekwini for similar developments, she added.

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