Construction World September 2019

SEPTEMBER 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

P U B L I C A T I O N S

04 Big opportunities for young entrepreneurs Despite challenging times, the construction industry offers many opportunities. 08 Towering achievement for company’s women architects Co-Arc International Architects had many women working on The Leonardo project. 10 Top of mind The 3 rd Annual STEM Conference & Career Expo is taking place on 4 and 5 October. 12 Shopping mall banks on solar Solar has been an important addition to the Mtuba Mall. 14 Property Forum calls for commitment Economic growth will only happen when officials and politicians commit. 18 Local retaining wall system creates functional space Cape Town’s first fully integrated lifestyle residential estate. 20 Monitoring solution for natural hazards Alarms and monitoring solutions for new cuttings and embankments. 24 Resource infrastructure for projects Worley has a long history of delivering infrastructure solutions. 28 Monument to engineering innovation Showcasing excellence in the application of steel and concrete. 32 POD structure boots quality and innovation Paragon Group innovative design solutions. 34 SA’s grid capacity could be boosted by cogeneration Steam turbines could contribute to SA’s struggling national power grid.

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Construction PUBLICATIONS CR O WN COVERINGTHEWORLDOFCONSTRUCTION SEPTEMBER2019

ON THE COVER

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Marketplace

As construction development continues apace in Sandton, dubbed the financial district of South Africa, specialist geotechnical contractor Franki Africa has made a leading contribution to the provision of geotechnical solutions for decades of development within the Sandton

Environment & Sustainability

Property

FRANKI AFRICA supports decades of SANDTON DEVELOPMENT

Projects & Contracts

Equipment

Central Business District. Read the story on page 16

Products & Services

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In the second quarter of 2019, 350 441 t of cement was imported into South Africa. It is still significantly less than the almost 13 million tons produced locally, but what is of concern is that this represents a 136% increase since 2016. Why it is so unfair? Imported cement undercuts locally produced cement by 45%, hence the steep growth of such cement. Imports, primarily from Vietnam, are channelled into retail. In an industry where construction activity is depressed this becomes a significant factor, so much so that there is talk that the industrial capacity of the country is facing a crisis. South Africa has the capacity to produce 20 million tonnes of cement, but currently only produces 13 million tons on the back of low demand. On top of this, the recently

introduced carbon tax (that came into effect on 1 June) increases the cost of clinker (a major ingredient in the production of cement) by up to 2% – further increasing the unfairness of imports. The local cement industry has no option but to safeguard the local cement producing industry, hence this appeal. It is only a start though. The appeal was lodged on 5 August. Itac will, once it has decided that it wants to initiate a formal investigation, publish a notice of such an investigation in the Government Gazette. Realistically Itac will only announce its decision in 2020, a decision that may be delayed because it will be difficult to collect additional data. In an effort to safeguard the application even further, the TCI has applied for a designation on cement from the Department of Trade, Industry and Competition.

This will, if successful, mean that only local cement will be procured for any government projects.

Wilhem du Plessis Editor

Crown Publications, the publisher of Construction World, published the winners magazine for the CESA Aon Engineering Excellence Awards 2019. You can read it online by logging onto www.constructionworldmagazine.co.za CESAAON ENGINEERING EXCELLENCEAWARDS 2019

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MARKETPLACE

O ne might be forgiven for thinking that young people would be well advised to steer clear of construction when choosing a career. But with Youth Month still fresh in our minds, it’s worth reminding ourselves that, despite the real challenges it faces, construction still offers young people a potentially lucrative career, says Rob Newberry, an industry veteran who is currently working with the Master Builders Association North on initiatives designed to nurture small and medium enterprises (SMEs). “While it’s unfortunate that the bigger players are falling by the wayside, their ill fortune is definitely creating huge opportunities for SMEs in both the public and private sectors,” Newberry says. “Make no mistake, it’s a tough industry but, with hard work, it’s still possible to make excellent returns.” He explains that people consistently misunderstand the financial realities of construction. For example, a R3-million job would typically require 10% capital (R300 000) and could be expected to yield a profit of around 5% (R150 000). Too often, people write this off as insufficient because they see the profit in terms of the contract price. In reality, though, the R150 000 profits represents a 50% yield on the working capital of R300 000. “A well-run contractor typically achieves a return on funds employed of about 50%, and the same holds good for the smaller guys – provided they keep a tight grip on the project,” he says. “That’s a good return in anybody’s book. Government now realises this, it will look for ways to use the Extended Public Works Programme (EPWP) to incubate such small construction businesses, which will in time be able to grow into the space left by the former big guns.” Thando Nkosi is just one of the entrepreneurial types identified by Newberry as best suited to take advantage of the opportunities afforded by a disrupted construction sector. She inherited the entrepreneurial bug from her dad, who has his own construction business and she branched out on her own a year ago. She is a certified plumber, so her company focuses on plumbing and construction. Her company, Khepheph Trading Project, currently employs five people and uses a network of sub-contractors. “I wanted to be

independent – to make my own decisions and build up my own company. I didn’t just want to earn a salary,” she says. “It’s a bit scary, but luckily my dad is a great mentor.” Working in construction should also be seen as a way to participate in creating the infrastructure without which the rest of the economy simply cannot function. It’s also one of the industries capable of creating the large numbers of jobs our nation needs, so in many respects this is a career that offers the opportunity also to engage in nation building. Construction’s role as a foundation of the economy is also evident in the wide variety of companies that make up the extended value chain. Precious Lechesa, MD of Mmidi Occupational Health Services is another black, female entrepreneur who has seen the opportunities that construction offers. Mmidi offers SMEs a complete occupational health service at its clinic, allowing them to start working onsite with the minimal of hassle, but with the peace of mind that their employees are safe and they are not at risk on non-compliance. “Construction remains a big part of our market, but we are also branching out to service other sectors – the big companies closing their doors did definitely affect us,” Lechesa says. “We recently took advantage of the opportunity to exhibit at the Construction Industry Expo at a reduced rate, thanks to our membership of MBA North, so we are hopeful we made some new connections with the up-and- coming construction companies.” Both women are clear about one thing: it takes determination and drive to make it in the construction industry. Nkosi points out that the opportunities exist for entrepreneurs, with conventional jobs hard to come by. “Do your homework and find your niche – if you concentrate on that and work hard, you will succeed,” she says. Lechesa concurs. “You need to have a passion for what you are doing and that passion will make you rise above the rest. There are always opportunities in any field – all you need to do is come up with innovative ideas on how to solve the challenges facing your market,” she says. And, of course, following Newberry’s logic, a 50% percent margin is a prize worth grasping. 

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T he Master Builders Association North (MBA North) region has announced the winners of its prestigious annual regional Safety Competition, which recognises best practice in construction site safety. The awards form part of broader efforts by MBA North and sponsors Federated Employers Mutual (FEM) to improve safety in the construction industry, and provides a platform from which companies can benchmark their Health and Safety (H&S) Management Systems and implementation against other companies in the region and nationally. Due to the nature of construction work, workers are exposed to multiple risks. In 2018 alone, FEM statistics indicate that 22 fatal accidents occurred and 14 435 days were lost due to accidents on-site across the MBA North region, with the most common on-site injuries including amputations, penetrating injuries, broken bones, joint and muscle injuries and superficial wounds including burns and scalds. Motor vehicle accidents, including accidents involving vehicles transporting workers to the site and accidents involving roadside flag bearers, are the largest cause of construction-related fatalities (with eight in the region last year), followed by ‘struck by’ accidents (nine fatalities in the region last year) and falling from heights (three in the region last year). Herman Enoch, Marketing and Communications Manager at FEM, says FEM works closely with MBA North to promote construction sector safety best practice. “With 80 fatalities nationwide last year, safety on site is still a significant concern,” he says. “The major contractors and sub-contractors are committed to health and safety, but unfortunately we still see far too many self-employed ‘bakkie builders’ taking chances on site.” By participating in the safety competition, companies verify their compliance with relevant legislation and best practices in the industry. Participants in the competition are registered MBA North members and FEM policy holders, and sites were audited by MBA North H&S lead auditors. Gerhard Roets, H&S auditor for MBA North, says the region is fortunate to have sufficient resources to allocate one auditor per category, which ensures audits are consistent across each category. He audited 25 sites, with Michelle Kok

auditing 13; and Manie Van As auditing 18. Of the 66 entries received, the MBA North H&S auditors assessed 56 qualifying entries across Gauteng, as well as in Vryburg and Rustenburg in North West Province, Barberton and Ermelo in Mpumalanga Province, and Polokwane in Limpopo Province. The winner of the Federated Employers Mutual (FEM) trophy in Category I for projects of over R750-million plus was WBHO Construction for its River Creek Deloitte project. Auditor Gerhard Roets says the project stood out with a zero disabling injury frequency rate: “For a project of that magnitude, this is quite impressive,” he says. “The contractor and subcontractors all have a strong health and safety culture – from the top all the way down.” WBHO Construction was also named the winner in three other categories: R100-million to R250-million category for the Steyn City High School Phase 2; the R250-million to R450-million category for

Pretoria Head & Neck Hospital and the R450-million to R750-million category for the Trilogy Collection project. Belo & Kies Construction won two awards for its Toyota projects – taking awards in the R15-million to R40-million category for Toyota Vryburg; and the R40-million to R100-million category for Toyota Polokwane. In Category B2 – Manufacturers, ER Signs & Safety, Springs Workshop was named the 2019 winner, having won the category both in the region and at the MBSA National awards in 2018. Roets, who has played a role in auditing the competition for the past 10 years, says the calibre of entries was exceptionally high this year, an indication of good progress being made in health and safety among MBA North members in recent years. “Contractors and subcontractors take health and safety seriously, as do their customers,” he says. “This competition helps to raise safety awareness and to highlight companies focused on H&S best practice.” 

At the Awards Ceremony on 17 July at the Altron Conference Centre in Midrand, the following winners were announced:

Category A Category B1

Plant & Storage Yards: PROBUILD Construction

Allied Trades: PERI Formwork Scaffolding Engineering – Polokwane Branch Manufacturers: ER Signs & Safety – Springs Workshop R15m to R40m: Belo & Kies Construction – Toyota Vryburg R40m to R100m: Belo & Kies Construction – Toyota Polokwane 2 R100m to R250m: WBHO Construction – Steyn City High School Phase R250m to R450m: WBHO Construction – Pretoria Head & Neck Hospital

Category B2 Category D Category E Category F Category G Category H Category I

R450m to R750m: WBHO Construction – Trilogy Collection

R750m plus: WBHO Construction– River Creek Deloitte Best subcontractor with Site Establishment: Malinga Scaffolding – Safeways Mall Best subcontractor without Site Establishment: MFS Electronic Projects – 144 Oxford Road

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MARKETPLACE

T he 2019Q2 cidb SME Conditions Survey once again confirmed the woeful state of the South African building and construction industry. Building confidence ticked down from 33 to 30, as building activity slowed even further. Ntando Skosana, Project Manager for Construction Industry Performance, noted that, “With the exception of a marginal uptick at the end of 2018, General Builder (GB) sentiment has trended downwards since the beginning of 2017.” Across the grades, GBs in Grades 3 and 4 experienced the sharpest drop in sentiment – from 40 to 30 index points. Although Grades 7 and 8 registered an uptick in confidence, it was still relatively low at 29 (from 23 previously) as activity growth in the

segment remained under pressure. Across the Provinces, Gauteng was the only province where GB confidence declined – from 44 to 19. Skosana note that, “despite upticks in the other provinces, confidence remains below the respective long-term average. Furthermore, the building activity indicator suggests that all provinces are experiencing a severe shortage of building work, most notably in the Western Cape.” Civil Engineering (CE) confidence fell from an already depressed 31 index points, to an all- time low of 26. Skosana says that, “the level of confidence is concerning as it implies that almost 75% of respondents are dissatisfied with prevailing business conditions”. All the grades registered a decline in confidence. Similar to GBs, the drop was

most pronounced among CEs in Grades 3 and 4 where business confidence is now at 33. Across the Provinces, the Western Cape was the worst performer, with a drop in confidence to an all-time low of 18 index points. According to Skosana, “the marked deterioration in sentiment among CEs in the Western Cape was largely driven by weaker activity growth”. Overall, the results of the cidb SME business conditions survey point to continued, and broad-based (with respect to region and grade) weakness in construction activity in 2019Q2. “In addition to poor demand currently, there is no sign within the survey data to suggest that activity will improve over the short term,” Skosana concluded. 

increasing urbanisation and industrial development, according to AECOM Water Business Line Director Werner Comrie. In addition, there is serious ageing of existing infrastructure, which requires maintenance, refurbishment, or replacing. Water security is at risk, and this requires adequate project planning and prioritisation towards implementation and intervention. Commenting on the current state of the civil engineering industry in South Africa, Comrie admits that “it is the toughest it has been in decades.” This is due to limited spending by government, and also the private sector, on large and capital infrastructure projects. “We have seen the impact on the construction industry, and this is symptomatic of the wider civil engineering consultancy environment as well.” However, the infrastructure backlog continues apace. “Funding, accelerated decision-making, improved procurement processes, and quality engineering are required for this to be addressed successfully. If all the national and masterplanning that has been carried out is programmed for execution, there will be a lot to do. We remain positive that this will be the case, and are pleased to see

that infrastructure development is being prioritised as a primary driver of job creation and economic growth, where engineers can continue to play their primary role in the general wellbeing of society,” Comrie highlights. AECOM is able to add considerable value to this sector in the way that it manages deliverables, being more innovative in design and project delivery processes, using advanced digital technology, and creating internal leverage, with improved skills development and better integration and systems. “We also manage staff numbers to retain critical expertise and capacity, but outsource some specialist skills on an as-needed basis. We seek partners and clients that recognise the value we bring, and that we can have a long-standing relationship with.” An example of AECOM’s success to date in this critical sector is its involvement with the City of Tshwane as Owner’s Engineer for the Temba Water Treatment Works in Soshanguve. “This project is now in the commissioning phase, and will make a major contribution in improving the quality of drinking water in the far northern part of the city,” Comrie concludes. 

AECOM Water Business Line Director, Werner Comrie.

I ntegrated infrastructure delivery company AECOM has leading expertise in water resources planning and modelling, large dams, hydropower development, water and wastewater treatment, water conveyance and distribution, stormwater management, and water resilience. This stands it in good stead to avail itself of the opportunities presented by the National Water and Sanitation Masterplan. Significant growth in this sector can be expected due to the current backlog of sufficient water infrastructure for a burgeoning population, as well as for

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A s part of Co-Arc International Architects’ predominantly female- led team, Director Catharine Atkins and professional architect Malika Walele are familiar faces on the multibillion-rand construction site. Atkins heads Co-Arc’s team on the project, responsible as Principal Co-ordinator for all engineering and architectural disciplines. She oversees the entire construction documentation team. She is supported by Walele, Salome Daley, Janel Venter, Megan Holman, Angela Barnard, Keitsitse Losaba, Antonella Giuricich, Rachel Zwane and Mitchell Gibbon. The building itself was penned by Co-Arc’s Emeritus Partner, Francois Pienaar, but when it came to selecting the best team to execute the technical detailing, Co-Arc set up a highly skilled team on merit. The fact that women made up the majority of this team went unnoticed in the studio until a photo of the team was taken on site, quite late in the project. Atkins credits the conducive working environment at Co-Arc for creating a level playing field for all employees. While Walele has been on site each day, operating as the vital link between the construction outfits and the Co-Arc brainstrust, each woman on the team has contributed her technical and professional skills to the mixed-use project. Ultimately, The Leonardo will boast luxury residential apartments and penthouses, office and shopping space, restaurants and lifestyle recreation areas, and fundamentally alter the skyline of the city. But, unlike their male counterparts on similar projects, these female Architects face trials over and above those related to the dynamic world of construction; their gender remains a daily challenge. The South African Institute of Architects in the Eastern Cape calculates that just 21% of South Africa’s registered Architectural

Professionals are women, compared with about 31% in Europe (2010: Architect’s Council of Europe) and 20% in the United States (2004: AIA National Associates Committee Report). These relatively low numbers ensure that those already in the field battle to make themselves heard. Atkins, a founding partner of Co-Arc in 2005 with 23 years of experience under her belt, says Co-Arc is well aware of the issues facing young women at the coalface of the profession and, together with her partners, she has actively sought to promote the careers of outstanding women. Co-Arc knows full well that site work is essential for career advancement; and yet young female architects battle harassment when dealing with construction teams. For the past two-and-a-half years, Walele (27) has worked at The Leonardo, one of the biggest construction sites in Africa. She deals with some 2 000 men and a minority of women, almost all of whom do not operate at management level. Despite the support of on-site management, on occasion she’s had to stare down groups of men making inappropriate comments, turn down unwanted advances and shrug off sexism. “I’ve had to find mechanisms to deal with it, by saying something or even just ignoring it,” says Walele. “It can get to you and affect your work at times if you don’t deal with it. Being assertive and dealing with these incidents is crucial for women, as this behaviour is typical of all construction sites all around the world.” Despite the challenges, neither woman would give up the opportunity for the career-advancing experience one gains on a major project like The Leonardo. “I love being on site, and the growth trajectory is huge; so much more than being in an office,” says Walele. “I’d encourage any woman

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to do this. Unfortunately many women architects don’t believe they can, because it is so male dominated.” Ironically, in their experience, the more male colleagues are exposed to working with professional, competent women, the more mindsets change. In the past 30 months Walele has seen a notable shift in attitude from the foremen and managers on site who’ve often witnessed inappropriate behaviour towards her first hand. “It has opened their eyes and made them more sensitive and appreciative of the challenges women face, and may have a positive impact on the treatment of women on sites in future,” says Walele. “Once men become aware, it is easier to deal with incidents, and to confront someone if you need to.” While both women command immense respect, it has taken some time to get that message across. Atkins, who has mentored Walele since she joined the Co-Arc team in 2016 as a candidate architect, understands the depth of the fight ahead. The only woman among three male partners, Atkins admits it takes a lot more for her to make an impact outside the office than her male counterparts. “Yes, over the years you move your way up and you make yourself heard, and you secure the right to lead, but it’s a constant push,” she says. Recalling her words to Walele when she began working on site, Atkins recollects how she told the young architect to become harder: “Malika is petite, so she had to ensure that none of the guys thought they could walk all over her, but the partners believed she had what it takes to succeed.” These words proved prophetic for Walele, who admits to having toughened up in a matter of months. “I didn’t have time to play around and find my feet,” she recalls, adding that Atkins’s perspective and understanding proved invaluable. Certainly, Co-Arc’s bias to the

intellectual rigour, technical skill, passion and resilience of people, rather than gender or race, has created an environment where women can flourish. Unfortunately, says Atkins, discrimination is a constant theme for women in architecture; even during their time at university. “Back when I was studying it was a male-dominated world and there weren’t a lot of women around, so you had to speak up for yourself. This means that if you don’t have the right personality you might fade away and not be taken seriously.” But, as the Co-Arc team and women like Atkins and Walele build impressive resumes across the African continent, it becomes harder to side line their achievements. As a result, their own confidence is growing. It is for this reason that Co-Arc’s predominantly all-female team sends such a strong message, says Atkins. “This is highly unusual,” she admits. “Fortunately I’ve worked with our client, The Legacy Group, since I started at Co-Arc, so my relationship with them has grown over 15 years.” She had to earn their respect, but now they rely heavily on her and demanded she was part of the team for The Leonardo project. Ultimately, Atkins’ team has managed a slick operation and carved out a piece of South African architectural history in the process. “It’s hugely rewarding,” she admits, adding that over and above their professional expertise women bring stability and communication, and a notable level of detailing to any architectural project. For Walele, the Co-Arc team “is proof that women can change cities and create buildings that will be the tallest in Africa”. She adds: “I’ve never understood why architecture needs to be a male- dominated industry. Women are more than capable of doing this; it’s frustrating that more women in the industry aren’t doing it.” 

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MARKETPLACE

A s South Africa faces a critical shortage of skills in the fields of science, technology, engineering and mathematics (STEM), and youth unemployment is at an all-time high, closing this gap has become a vital imperative. In a bid to both tackle youth unemployment and seek innovative solutions to the STEM skills crisis in South Africa, the 3 rd Annual STEM Conference & Career Expo will be taking place from 4 to 5 October 2019 at the Ticketpro Dome in Johannesburg. While the overall rate of unemployment in South Africa remains high at 27,6% in the first quarter of 2019, more alarming is the rate of unemployment among South Africa’s youth, who account for 63,5% of all unemployed people. This is according to an article posted by Stats SA in May 20191, which also notes that unemployment rates for youth graduates, traditionally a more resilient statistic in the face of unemployment, also showed a sharp increase to 31% in Q1: 2019 as compared with 19% in Q4: 2018. “At the same time, South Africa is grappling with a crippling skills shortage in the STEM arena and we now find ourselves at a critical juncture in the country’s social and economic trajectory that demands our urgent attention. As highlighted by the Presidency, the Fourth Industrial Revolution is upon us and we need to be ready and equipped to leverage and unlock its opportunities for a prosperous and economically sustainable South Africa,” says Amalia Hendricks, STEM Conference & Career Expo Director. “This is a time of tremendous opportunity for the youth and stakeholders, including corporates and government agencies, who wish to stake their claim in the future of the country; we have a burning need for STEM skills in both the public and private sectors and we have an abundance of young STEM graduates eager to

make their mark in the workforce. As a key matchmaker in this realm, STEM Conference & Career Expo brings STEM graduates and business together to erode barriers to riding the 4IR wave,” she adds. The 3 rd Annual STEM Conference & Career Expo aims to build on previous years’ successes by matching STEM graduates with prospective businesses in this arena. “Our objective is to make recruiting technical graduates easier and more cost-effective, supporting companies in building talent pipelines that are underpinned by quality and diversity,” remarks Hendricks. Who should attend? STEM Conference & Career Expo attendees are made up of prospective and current university students as well as STEM graduates from all major tertiary institutions across South Africa looking for exciting career opportunities. Grade 12 learners are also invited to gain exposure to both STEM careers and university readiness seminars. Who should exhibit? Any and all businesses connected with and whose survival and prosperity depends on science, technology, engineering and mathematics have a responsibility to participate at the STEM Conference & Career Expo, not only to communicate their exciting career opportunities, but to showcase to future industry leaders what a resilient, forward-thinking business in STEM looks like. Exhibitor stakeholders include secondary schools, extra-curricular STEM education and training suppliers, universities and their departments, Government departments and agencies, and STEM-oriented recruitment agencies. 

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“W ith World Population Day being celebrated on 11 July 2019, it is a good time to reflect on the infrastructure availability across the continent. Last year, South African Finance Minister Tito Mboweni identified infrastructure delivery as a key enabler of economic growth. As asset management experts, we need to start looking at how we will accommodate the population of the future,” says Francois Joubert, Aurecon’s Africa Lead, Asset Management. A 2014 report by the World Economic Forum entitled Strategic Infrastructure: Steps to Operate and Maintain Infrastructure Efficiently and Effectively said that a country’s competitive economic advantage clearly depends on a properly articulated infrastructure vision and long-term planning, and it is particularly important in the fastest growing populations, namely those of Africa and Asia. The infrastructure challenges There are a number of infrastructure challenges that countries with fast-growing populations face, says Joubert, including the slow speed with which infrastructure is provided. “The lead time for infrastructure projects can’t keep up with the real-time rise in demand. Other challenges include predicting where the infrastructure will be needed; damage to existing infrastructure due to overuse, such as gridlocked roads that weren’t designed for the traffic they have to accommodate; as well as servicing informal settlements. In South Africa in particular, informal settlements are established in response to desperate need, and it is then very costly to retrofit infrastructure into them,” says Joubert. In addition, the recently released Auditor-General’s report for Local Government (2017-2018) also highlights the development of maintenance plans and policies, and asset condition assessments as challenges in optimising the management of current asset portfolios. Closing the infrastructure gap in SA Joubert believes the assets that will be needed the most in South Africa in the future include water and sanitation, electricity, roads, education, and health infrastructure. “South Africa has a significant infrastructure backlog due to historic policies, which is exacerbated by forces such as slow economic growth and under-employment. We currently have an ‘infrastructure gap’, which is the difference between what is required to provide a minimum acceptable level of service and what is currently available,” says Joubert. “In some cases, demand can be reduced if a public service can be satisfied in another way. Electricity consumption, for example, can be reduced through energy-saving initiatives. But a service such as transport can’t be reduced to support a rising population without jeopardising economic and social development,” explains Joubert. The second option, to build new assets, is resource intensive and

unappealing in a climate of tight fiscal budgets and limited private investing. “Several asset management best practice documents, such as Publicly Available Specification 55, the ISO55001 Standard, and the South African National Treasury’s Cities’ Infrastructure Delivery Management System highlight the importance of prolonging the life of existing infrastructure. As infrastructure advisory experts, we are focused on helping clients maximise the utility of existing assets,” says Joubert. This third option is an underexploited opportunity to optimise existing assets by making them more effective, cheaper or longer lasting. While this approach has often been neglected by policy- makers in the past, it is increasingly commanding attention in the current context of ageing facilities, rising demand, and constrained finances. Joubert says that government needs to prioritise its infrastructure spend and look at ways to maximise the utility of existing assets. “There is not enough budget to build everything required, so government will need to spend the limited maintenance and capital budgets on infrastructure that will maximise their returns. There are several ways that the utility of assets can be maximised, including using buildings for greater parts of the day, such as a school building that can double for other needs after school hours; mixed-use developments, such as combining office and retail, which are open during work hours, with residential, which is only used outside of working hours. Communities should be involved in infrastructure decisions and user-based consultations need to take place, preferably in the form of a design-led thinking workshop or consultation process,” says Joubert. Government will need to invest in proper master plans and asset management strategies in order for this to be effective, and Aurecon can assist with risk-based analysis and trade-offs among various infrastructure investments to ensure the desired return on investment is achieved. Johan de la Rey, Aurecon Principal, Capital Project Assurance, says that Aurecon can help by providing clients with the assurance they need in regard to effective delivery of infrastructure projects on time and cost, through independent assessment of governance, risk management and critical project controls. “Our team takes a deep dive into the critical controls (schedule, cost, contract, scope, financial, etc.) of projects to make sure that capital intensive projects set out to achieve what they were intended to, or to provide early warning that the programme or project is not on track to achieve specified milestones. Given limited capital budget availability, we help clients get the most out of capital programmes by optimising their existing investment spend and consequently their asset base,” comments De la Rey. 

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ENVIRONMENT & SUSTAINABILITY

T his was the message from Wasteplan CEO Bertie Lourens in a presentation at the 2019 SAPICS Conference in Cape Town. Africa’s leading event for supply chain professionals is hosted annually by SAPICS, The Professional Body for Supply Chain Management. This year, it attracted close to 800 delegates representing 28 countries. Lourens noted that, year after year, South Africa, which is the world’s 169 th most populous country, has ranked as the 17 th dirtiest energy producer on the planet – out- polluting the UK and France. “The carbon tax is an attempt to mitigate this consumer behaviour and reduce high greenhouse gas emissions while stimulating investor appetite for low carbon alternatives. As of 1 June 2019, South Africa started rolling out the Carbon Tax Bill, which will be implemented in stages and phased in over time to ensure a smooth transition,” he explained. Lourens summarised the carbon tax roll out for SAPICS delegates: “Phase 1 will run from implementation up to December 2022. The initial marginal carbon tax rate will be R120 per tonne of CO 2 (carbon dioxide equivalent). With the below thresholds K waZulu-Natal is known for its beaches and sunshine, and local retail businesses are starting to take advantage of all those sunny days to generate their own electricity with a view to 'going green' and to reducing their monthly electricity costs. Mtuba Mall is a 17 200 m 2 regional shopping centre situated 200 kilometres north of Durban. The mall’s owners have been keenly aware of the huge cost and greening benefits that could be achieved through harnessing solar energy. And now, thanks to SolarSaver, the mall is in a position to do just that. SolarSaver, a company that allows clients to install customised solar photovoltaic (PV) solution via a unique rent-

in mind, the effective tax rate is much lower and ranges between R6 and R48 per tonne. A basic percentage-based threshold (up to 60%) applies for the first phase of implementation that is not tax payable, in order to help businesses transition and adopt low carbon alternatives. Additional tax-free allowances include an additional allowance of up to 10% for process emissions; an additional allowance for trade exposed sectors, to a maximum of 10%; and an additional allowance of up to 5% based on performance against emissions intensity benchmarks. These benchmarks will be developed in due course. There is also a carbon offsets allowance of 5 to 10% per cent, depending on sector, and an additional 5% tax-free allowance for companies participating in phase 1 of the carbon budgeting system. As part of the tax, the carbon offset mechanism also allows companies to participate in a market- based approach to reduce emissions. Ensuring Right Reporting “Carbon emissions are submitted to the Department of Environmental Affairs (DEA) through legislation known as the National

Greenhouse Gas Emission Reporting Regulation (NGER). Here, companies that rely on energy generation from their own equipment are obligated to report on all business-related activities for tax purposes. “Once the carbon tax has been calculated, it will be paid to (and administered by) National Treasury, which will determine any further tax allowances, based on trade exposure, business performance, etc. At this point the process could become quite abstruse and bogged down by litigative complexities, and you’ll need some expert assistance,” he cautioned SAPICS delegates. “We would recommend getting experts to help you navigate the tricky terrain of tax law.” He stated that there were things businesses could do now to anticipate this burden and reduce their waste to landfill

to-own model, completed installation of a 1-megawatt (1MW) installation at the mall in July.

When Mtuba Mall was designed and developed five years ago, it aimed to be naturally kinder to the environment.

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so that less of the business is exposed to heavy carbon taxability, including investing in renewable energy, cool carbon projects and biogas digesters, and reducing waste to landfill. “Africa is uniquely poised to leapfrog fossil fuel, carbon heavy systems and adopt wind, solar and water energy on sustainable, large-scale levels,” Lourens asserted. “The tax will take all your activities into account, including the activities related to your waste disposal on site,” he informed SAPICS attendees. As a means of offsetting their carbon footprint, he recommended that companies invest in effective and environmentally sustainable projects that come in under the marginal carbon tax rate of R120 for every tonne of CO 2 e. “These partnerships are not only financially incentivising; they help

support worthwhile green initiatives in other parts of the world.” The biogas digester is a well proven technology that converts organic waste into a clean and sustainable energy source. Lourens explained that when organic waste such as discarded food waste is landfilled, it produces methane gas, which is many times more potent than CO 2 . Biogas digesters have been around in South African since 2014. “Unfortunately, many of the installations did not perform, with several facilities having closed- down or running with severe performance constraints. The most important lesson for successful implementation is the selection of an experienced local operational partner that can assist in the development process from start to finish,” he advised. Lourens said that the Western Cape Government has implemented legislation that will completely

ban organic waste to landfill by 2028, which will force companies to implement solutions for the waste. “New innovations are making Zero Waste to Landfill a reality. It requires an integrative approach with separation at source and effective down-stream waste management practises. This approach maximises recyclables recovery, while organic waste is isolated and treated using composting or biogas. The remaining waste consisting mainly of unrecyclable plastic packaging can then be converted, either into energy (such as electricity or oil) using Pyrolysis or, into bricks or concrete to build much needed infrastructure. The waste-to-energy landscape in South Africa is still in a vulnerable state, but we believe this will all soon change as our economy is shifting to a low carbon economy,” he concluded. 

Today, large open-air sections allow for abundant natural light and air flow, requiring less additional lighting and air conditioning. Dylan Niemann, General Manager of Mtuba Mall says, “We are always looking for new initiatives that help reduce our impact on the environment. In addition, the irregular power supply and load shedding threats over the last few years have forced us to search for alternative ways to generate our own electricity.” Solar has been an exciting addition to the mall, says Niemann. “A few years ago, the cost of solar was prohibitive, as we would need to outlay significant capital on set-up costs. SolarSaver’s rent-to-own offering has changed the game considerably as they cover the full cost of the installation and all the costs associated with the ongoing maintenance of the system. For a monthly rental fee, we can anticipate significant future savings on our current electricity costs, without the hassle of buying and maintaining a system ourselves. For Mtuba Mall, the SolarSaver solution is an absolute winner.” Stuart Batchelor, director of SolarSaver, explains that the Mtuba Mall solution includes 3 440 solar panels and 20 inverters.

“The mall’s objective was to generate as much electricity as possible for its own consumption. The project came with some unique challenges but we were able to come up with some innovative solutions. We’re also quite proud to have delivered such a large installation in a relatively remote location. The end result for Mtuba Mall is an anticipated solar output of 1 528 200 kWh per year.” “Retailers like Mtuba Mall are taking a long-term view. Installing a solar solution means they get the immediate cost-saving benefits, as well as the potential to install batteries and go off-grid in the future. But beyond this, they understand the need to embrace the sort of sustainable practices that will ultimately keep KZN green,” says Batchelor. SolarSaver is currently working on a number of other solar projects around KwaZulu-Natal. Installations currently underway include the Shelly Boulevard Centre on the South Coast, Sheffield Manufacturing in Durban and an Engen service station in Mt Edgecombe. These are in addition to a number of installations already completed in the province. 

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PROPERTY

A s an industry body representing the interests of the development, consulting and construction sectors involved in fixed capital projects, ranging from public infrastructure to private developments, the Western Cape Property Development Forum (WCPDF) recently welcomed the State of the Province Address (SOPA) delivered by the newly elected Western Cape Premier, Alan Winde, on 18 July. To a large extent, Premier Winde’s SOPA mirrored the SONA address of President Ramaphosa on the desperate need for economic growth and job creation. The property development industry is the bellwether industry that reflects the state of the economy. This industry, which began to haemorrhage a few years ago due to the state of the economy, is now in crisis mode. It is being decimated, on the one side, by the collapse of the construction industry and the resultant exodus of qualified contractors and consultants to foreign shores. On the other, and in terms of those who are unable to seek work elsewhere, particularly among its semi-skilled workforce, it is resulting in abject poverty and increasing numbers of “men at the side of the road”, who congregate daily in the desperate hope of a wage for the day. Private sector investment is being hamstrung by lack of political certainty and ever-increasing regulation and red tape. The construction industry employs labour and the consulting industry employs scarce skills. Developers, whether public or private sector, are entrepreneurial in their thinking and invest multigenerational. All are critical to the economy and to the wellbeing of our nation. All depend on growth as fuel for their respective specialist skills. Last week, the newly appointed Premier of the Western Cape, Alan Winde, for the first time officially placed a growth target of 2,5% on the table, the goal being to deliver on the desperate need for job creation. He has bought into the concept of an economic war room, and has included the property and construction industries among the first to be included. And to this end, he has set his personal focus on unblocking growth inhibitors, much the same language as used by President Ramaphosa in his most recent SONA address. Both President Ramaphosa and Premier Winde are clearly singing from the same hymn sheet even though they stand in different political realms. They have both confirmed their desire to lift the country to its full potential and create a future for generations to

come by addressing safety, education and economic growth. Winde has, without reneging on the Western Cape’s history of clean governance, thrown down the gauntlet to the standard delivery excuse of audit compliance: “We will not slow down a single second of delivery for the sake of compliance with the Auditor General.” These are strong words; the words of a statesman and not a party employee. Words that are synonymous, again, with those of President Ramaphosa. Party political opportunism and excuses have held the country to ransom for far too long. The Western Cape can be the practical illustration of leaders with different party-political affiliations using the same language, sharing the same goals and working together to achieve true value for its citizens. While we celebrate national and provincial leaders for delivering strong messages, service delivery remains largely a municipal function. We are yet, however, to hear this type of strong language come from the mouths of mayors and municipal functionaries. Our call therefore to each mayor in the Western Cape, and in the rest of South Africa, is: declare growth and reduction in red tape to be your personal commitment to the people of this country. Dare to challenge the NIMBYs who oppose change and, by implication, growth. Both President Ramaphosa and Premier Winde have voiced their concern on the tenacity of Apartheid planning and the lack of social integration. This will only be addressed if we use public resources to break down historic boundaries, by investing in infrastructure linking communities, and by redeveloping public-owned land. It is time to stop talking and to start doing. This power is at municipal scale. It is time for each mayor to declare their personal commitment. We wait in anticipation to hear similar language from the mouths of each mayor in the Western Cape, and also from each one in the rest of the country. More so, we expect mayors to go beyond lip service and start to truly measure their own performance in terms of capital budget expenditure and the removal of unnecessary hurdles to investment and job creation. We challenge each one of them to look their children and grandchildren in the eye and to guarantee them a better future. We expect each mayor to fight the 2021 local authority election from the basis of proven delivery and economic growth and not based on more promises. 

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ADVERTORIAL

Scan towatch interview

R aseroka’s current portfolio includes being Chairman of multiple companies while Letsoalo has over 16 years of corporate experience with various blue chip companies. Liz Brinkmann says the deal will open up opportunities for Jet Demolition. “Our clients are often multinationals who are concerned about meeting their own commitments for B-BBEE and want to work with companies that have at least 51% black ownership. “We have reached a point where Jet Demolition wants to be involved with people who are passionate about making South Africa a better place. We see that in Lebogang and Vincent. It will be a partnership to build and transform the company internally and externally. Jet Demolition has areas of true excellence, and this can be passed on to other companies. This is how we can make a difference to South Africa as a whole,” says Brinkmann. Finding the right partners The husband and wife team has been working on the deal for more than a decade. ”It may be a long time, but it was crucial to find partners that share the company’s value systems. We believed that we would rather have nobody than the wrong partners. In Vincent and Lebogang we have found the right partners. They both have the value systems that we were looking for,” explains Brinkmann. The deal will assist Jet Demolition especially in the area of middle management, as it will provide access to people that it wants to grow and mentor. Letsoalo says that the impact of successful transformation will be seen through the deal with Jet Demolition. “It is a rightful BEE transaction that allows the Non-Executive directors to also participate in growing and strategically lifting the organisation to the next level.” “It is fortuitous that we met Liz and Joe Brinkmann at a time when we have a new President who has indicated that he will improve the country,” says Raseroka. “We have had a drought in terms of infrastructure development, but there is no choice, as this will have to be improved and maintained for the country to grow. Jet Demolition would like to be one of those companies that raises a hand to say ‘you can count on us’ to make sure that everything that is not needed can be responsibly disposed of so that we can clear the way for the country to develop.” A strategic contribution There will be no direct change to the management of the business. Raseroka and Letsoalo will add strategic resources to Jet Demolition through their backgrounds, and so complement the existing operators of the business. “Increasingly we are finding that we need

to develop local suppliers at all of our sites. Lebogang, with her many years of experience in supply chain management, can bring that knowledge into the company, while Vincent can assist with bringing new talent into the company,” says Brinkmann. “Most businesses battle to find talent and many potential young people were misguided by ‘tenderpreneurship’. We want to provide a safe home to young people who want opportunities to learn good working principles, skills and good governance that will see them well into their future. The last 25-year period of entitlement and ‘tenderpreneurship’ is unsustainable,” says Raseroka. Ratsoalo has been involved in supply chain for many years, where she mentors and coaches entrepreneurs in the various sectors that drive the country’s GDP. “ Enabling African growth Raseroka says the increase in foreign direct investment in Africa increases multinationals’ need for safety standards, high ethics, and doing business the right way in African countries. “Jet Demolition’s aim is to increase its activity elsewhere in Africa. We have done work throughout Africa, including Mali, Sierra Leone and Algeria,” says Brinkmann, “but this has found us by referrals. We need to focus on business development in Africa and hope, through this new deal, that we will find the right people with the skills needed for such an expansion.” Passion for excellence Brinkmann says that passion and wanting to be excellent are what sets Jet Demolition apart. This passion has led to two consecutive World Demolition Awards, while the latest of many NOSCAR awards had a score of 98,15%, indicative of the company’s world-class safety system. ”We have a very entrepreneurial approach to things. If something needs to be done, people from all levels assist to make it happen rapidly. In addition, we have a very strong engineering approach to everything we do. We work as a team: We employ many engineers and brainstorm issues with our operations teams. This implies that people cannot merely be brought in; they have to become part of the team. Finding the right talent to enable us to do this sustainably is partially why this deal was vital,” says Brinkmann.  Joe and Liz Brinkmann will become Executive Directors, Lebogang Letsoalo will become a Non-Executive Director, and Vincent Raseroka will become the new Chairman. Pictured (from left) is Brinkmann, Raseroka and Letsoalo.

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