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DISPOSAL STRATEGY

DEPARTMENT OF PUBLIC WORKS Presentation to Portfolio Committee Disposal Strategy Facilities Management Contract 14 June 2005. DISPOSAL STRATEGY. Historically, disposals were reactive and focused on high-value properties

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DISPOSAL STRATEGY

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  1. DEPARTMENT OF PUBLIC WORKSPresentation to Portfolio CommitteeDisposal StrategyFacilities Management Contract14 June 2005

  2. DISPOSAL STRATEGY • Historically, disposals were reactive and focused on high-value properties • Now implementing more systematic disposal programme focused on properties no longer required for service delivery or prestige purposes • In process of creating new institutional capacity in the Department to coordinate the systematic disposal programme

  3. DISPOSAL PROCESS • Identify possible superfluous properties from asset register • Obtain approval from user-department for disposal • Obtain approval from relevant Provincial State Land Disposal Committee (NDPW, DLA, province) • Obtain Ministerial approval • Dispose through open tender • Tender committee makes recommendation to Minister

  4. ADJUDICATION CRITERIA • Now must be in terms of PPPFA: functionality, price, preference • Some functionality points allocated for socio-economic benefits from intended development / use • Preference points for BEE, women, youth and disability

  5. DISPOSAL PROGRAMME • Phase 1: 177 properties, estimated value = R12m, largely residential and vacant stands. Currently beginning step 5 of the disposal process. Dispose by March 2006. • Phase 2: 25 properties, estimated value = R418m, largely vacant foreign properties. Currently at step 3 of the disposal process. Dispose by March 2007. • Phase 3: approximately 2000 properties, estimated value = R3 billion, mixed types of properties. Currently at step 2 of the disposal process. Dispose by March 2009.

  6. FACILITIES MANAGEMENT CONTRACT • Open tender process resulted in appointment of WSP-Sidibene in 2002, on a two-year contract • Additional work was added to the contract on the request of Parliament, resulting in a delay to the retendering process in 2004 • Further delay in retendering due to Department producing new tender documentation, informed by international best practice • Retendering now in progress – Request for Qualification issued on 11 June 2005 • Target timeframe for appointment date of successful tender: 1 November 2005

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