Boidus Focus - Vol 3, Issue 8 [Dec 2013]

OIDUS FOCUSwww.boidus.co.bw

P8.00 (Including VAT)

NEWS | page 02

Registered at GPO as a Newspaper | Volume 3, Issue #8

Botswana’s Architecture Design and Urban Landscape Newspaper | D E C E M B E R 2 0 1 3

Defective Materials and Work-manship in Construction Proj-ects - How to protect yourself?

PROF. PRACTICE | pages 18

Profile: Botswana’s Leading Building Material Suppliers

CLASSIFIEDS | page 11Government to Promote Intro-duction of Residential Develop-ment into the CBD

SUSTAINABILITY | page 04Icowork officially opens; a new concept for workspace in Botswana

BOIDUS EXCLUSIVE >BOIDUS EXCLUSIVE FEATURE >

>>> CONTINUED PAGE 08 >>> CONTINUED PAGE 15

by Boidus Admin

The New Revised Develop-ment Control Code 2013Finally, the long awaited Development Control Code 2013 [DCC] has come into effect as of November 2013. In development terms this is a big leap in advancing the terms that guide every development in the country. The DCC is the guiding document that regu-lates, land use activity, planning and planning applications. It is a critical

element that has a binding effect on all development environments in all planning gazette areas.

Boidus Focus will serialize and discuss the new Code in the next three issues to make it more accessible and ap-preciated by the building industry.

by H. Killion Mokwete

>>> CONTINUED PAGE 04

Affordable Housing Market-Unchartered Territory

2013 End of Year Review - Botswana Property and Construction Industry

by Boidus Admin

A review of key year industry highlights that mark the success, challenges and future opportunities of the Bo-tswana Property and Construction Industry.

FNB Botswana takes the lead and brings together industry stakehold-ers to a desktop discussion to explore opportunities of unlocking the afford-

able housing market which remains unexplored. Boidus Media partici-pated in the event as a facilitator.

Victor Senye Stan Garrun

Property Market remains a good investment but weakness beginning to appear

Infrastructure Development Op-portunities in the Construction Industry Still Unexplored

Towards a Regulated and Professional Con-struction Industry• Positiverealreturns

• Especiallyattractiveinanen¬vironmentoflowinterestrates(negativerealrates)

• Animportantassetforbothinstitutionsandindi-viduals

• Stillalargeamountofinvest¬mentinproperty

Imbalances are appearing, markets are distorted • Dangerofoverinvestment• Leadstofallingrentalyieldsandpoorreturnsfor

investors• Knockonimpactonbanks• Inadequatesupplyofaffordablehousing• unbalancedlending-toomuchlendingforretail

andcommercialproperty,notenoughforresidential

Botswana’s Institutional Investors Called to Invest Capital in Local Infrastructure Development

• InfrastructureinRoadNetworks• Energy-Coalpowerplants

Alternativeenergysystems• Water-DredgingExisting

Damns• Housing-Affordablehousing

infrastructureandresearch

PlansareadvancedforthesettingupofanIndus-tryConstructionRegulatorspearheadedbyBOCCIM,MISTandLocalProfession-alsAssociations.ThelongawaitedBotswanaCon-structionIndustryAct(BICA)willuseramongstotherthings:‘Registration and regulation of all Contrac-tors operating in Botswana’s Construction Industry’

BOIDUS FOCUSDecember 2013

Local and Regional NewsPage 2

by Boidus Admin

Icowork officially opens; a new concept for workspace in Botswana

LOCAL NEWS FEATURE

Today marks an important chapter in our effort to trans-form the concept of ‘office’ or ‘work’ in our city. It’s a journey that started 12 months ago with a bit of travel to more developed cities to benchmark and ensure that our product is to international standard.

We are a coworking office space. The question then is what is coworking and why do we believe our city is ready for it?

Coworking is an innovative office solution tailored for freelancers, small businesses and startups, to form a community of professionals that work from the same place with shared facilities. Their key objectives are to establish professional relationships, cut operating costs and broaden general business knowledge and skills. The result is a kind of work environment that is inspir-ing, collaborative with potential to grow one’s profes-sional development.

I have been a freelancer for the past twelve years. I know the advantages and disadvantages of being an independent professional. The fact that you don’t have a proper professional structure means you lose out on ever growing corporate trends. Icowork will therefore fill that gap as you continue to work for yourself but not by yourself.

One of our services is that we will have monthly busi-ness talks where we network in a casual setting and dis-cuss various core issues that affect small business such as tax, financial planning, and business development.

The world is collaborating more than ever before. America, Europe, and Asia are big on coworking spaces. Africa has been slow but there has been an upsurge in recent years in South Africa, East and North African countries. This is due to the increasing complexity of city economies and the recent economic downturn which led to more innovation and creativity to remain relevant.

The knowledge economy and smart cities that we all wish to attain do not just come about because of fancy buildings and infrastructure, but rather by creative and innovative city residents who choose to push boundar-ies and solve the ever complex challenges of the city. Management of Icowork has decided to go where the world is going and we believe our city is ready given the good number of qualified independent profession-als and small businesses who wish to work at the best location in town.

We chose the CBD because it offers a convenient lo-cation for professional consultancy firms. We also re-ject the trend where CBD is dominated by government ministries and big corporations. We should balance the

Massive Chaos and a Tussle for Land in Ramotswaby Keeletsang P. Dipheko

While people are still waiting to see how the 285 residential plots in Tlok-weng will be allocated to Batlokwa, residents of Ramotswa have recently been faced with the same incident of residential plots allocations. It’s almost a year since the Batlokwa land tussle case has been traced with the Land Tri-bunal.

The Malete Land Board authority re-cently advertised 385 residential plots, and the land board has received the overwhelming response of thousands of applications. The night before the date of application, people had already set up camp outside the Land Board premises. During the day of collection of applications the police had to be called to rescue the situation as chaos broke out and people thronged the Malete Land Board to apply for resi-dential plots.

In an unexpected turn, most of the people who spent the night at the land board waiting to be given application forms, testified that they are not from Ramotswa. This made many of Balete furious with the land board authority, their concern being that people come to work at the Malete Land Board and then invite their relatives and friends to allocate them plots in Ramotswa.

Balete have now raised the concern that their parents’ fields are being taken due to shortage of land, yet the same

land board still fails to provide them with residential plots. Instead, people from other villages are given plots from their fields. Furthermore, the number of applications for plots is exacerbated by outsiders who are looking for a second or third plot in Ramotswa to sell or de-velop for rent.

When asked how they are dealing with these issues, a Malete Land Board em-ployee said the problem that they are facing is that they are very close to Gabo-rone. People are now leaving Gaborone to surrounding areas for residential plots, and this is why Ramotswa ended up hav-ing a massive number of outsiders.

Furthermore people strongly believe that the amended Tribal Land Act, which states that every Motswana has the right to acquire tribal land any-where in the country, unlike previously, is no longer relevant, as there is greed and selfishness that drives this alleged unfair allocation of land.

Meanwhile Kgosi Mosadi Seboko has pleaded with the land board authorities to give residents of Ramotswa plots as most are in need of plots.

As per the two cases of Tlokweng and Ramotswa, Batswana are concerned with the way the government, through the institution of the land boards, ap-proaches access to tribal land/owner-ship, especially in urban centers.

tenancy mix of the CBD to avoid class segregation and elitist impressions. Small business can be creative and run their businesses from here and not be intimidated by it. The freelance professional who cycles to work or walks to work with a backpack should know that Ico-work gives him an office at the best location in town and he doesn’t have to change who he is to belong. That’s how we will attain the best vibe and energy of the CBD streets.

The capacity of our space is twenty stations. We are cur-rently half full and processing the other batch of ap-plications. We do not have a website running yet but we can be contacted at our facebook page or Icowork 72114393.

HOW WE BUILT IT

We started from an honest and clear premise: we had a tight budget, therefore our implementation path had to rely on other people pitching in money, labour and skills to make it a reality. I have a background of creativity and DIY in building projects therefore I was at the forefront from design, project planning and construction. We could not afford professional designers or contractors, so it was always myself and an assistant or a technician from conception to construction. We did not get any funding from a bank so initial capital was from family and friends and over time, potential members advanced their membership fees in order to make the project a reality. Coworking is different from office sharing, desk sharing or an executive temporary office suites solution. It is about people doing it for themselves. It is built from the bottom up. I knew that I had skills in design but had limitations in IT solutions and marketing. Therefore the approach was that we will build the infrastructural framework and have faith that we get members who will fill other gaps. The result is exactly as we imagined it and the group is getting better even before our official opening.

The other critical thing is that the design seems com-plete but it is actually an incomplete canvas, waiting for members to personalize the space with other cre-ative and practical ideas that will make it feel lived in and relevant to the nature of their businesses. So it will be an ever changing office atmosphere showcasing our member’s profiles, inspiration walls, and project displays.

Finally, when I get asked how much we charge per square metre, my response is that we do not sell space. We sell relationships and membership to a great com-munity of professionals. There is soul and personality in our model and you can’t get that any where else in this city.

What Will Be Mandela’s Spa-tial Legacy?by Boidus Admin / [Source: archdaily.com]Extract from Vanessa Quirk’s essay ‘what will be Mandela’s Spatial Legacy?’Vanessa Quirk is the manager of editorial content at ArchDaily, where she writes about architecture, design, and urban planning.

There are few systems of government that relied so heavily upon the delin-eations of space than the Apartheid government of South Africa (1948-1994). Aggressively wielding theories of Modernism and racial superiority, South Africa’s urban planners didn’t just enforce Apartheid, they embed-ded it into every city – making it a daily, degrading experience for South Africa’s marginalized citizens.

When Nelson Mandela and his party, the African National Congress, were demo-cratically elected to power in 1994, they recognized that one of the most impor-tant ways of diminishing Apartheid’s legacy would be spatial: to integrate the white towns and the black townships, and revive those “shriveled twin[s].”

As we remember Mandela – undoubt-edly the most important man in South Africa’s history – and ponder his leg-acy, we must also consider his spatial legacy. It is in the physical, spatial di-mensions of South Africa’s towns and cities that we can truly see Apartheid’s endurance, and consider: to what ex-tent have Mandela’s words of reconcil-iation and righteous integration, truly been given form?

Inspired by writings like Le Corbusier’s 1922 Ville Contemporaine, which out-lined the concept of housing for tem-porary labor, as well as Ebenezer How-ard’s Garden Cities, Apartheid planners relied heavily upon existing Modernist models of suburbia. According to au-thor David Kay, they believed that by using these Modernist principles, they could actually mold the native popula-tion in their image:

“…‘all reference to older modes of life, to history, to the sedimented place of memory, and to sociability had been eliminated’. This was the Apartheid state’s attempt to mold and reform the African society into a more mod-ern, orderly underclass in spaces that were sterilized of all remnants of older African cultures and beliefs.”

FIFA pressured city officials to con-sider building a stadium in the largely middle-upper class, white neighbor-hood close to the attractive V&A Wa-terfront. Green Point Stadium, FIFA suggested, would attract visitors and establish Cape Town as a world-class destination for major events, tourism, and investment.


AdvertorialPage 3

FNB ROUNDTABLE Stakeholder DiscussionUnlocking the Affordable Housing Market Opportunities

Arrival

Welcome Remarks

FNBSA Housing Finance Botswana National Housing Strategy Botswana Affordable Housing Market

Revised Development Control Codes Tea Break Local Authorities and Housing Supply

Affordable Housing Developer Experiences Alternative Building Products Development/ Regulatory Framework and Performance

Feedback and Way Forward LUNCH

07:30 - 08:00

08:05 – 08:30

08:30 – 09:00

09:00 - 09:30

09:30 –10:00

10:00 – 10:30

10:30 – 11:00

11:00 - 12:00

12:00 – 12:25

12:25 – 12:45

12:45 – 1300

13:00


Arrival

Welcome Remarks





07:30 - 08:00

08:05 – 08:30

08:30 – 09:00

09:00 - 09:30

09:30 –10:00

10:00 – 10:30

10:30 – 11:00

11:00 - 12:00

12:00 – 12:25

12:25 – 12:45

12:45 – 1300

13:00


Arrival

Welcome Remarks





07:30 - 08:00

08:05 – 08:30

08:30 – 09:00

09:00 - 09:30

09:30 –10:00

10:00 – 10:30

10:30 – 11:00

11:00 - 12:00

12:00 – 12:25

12:25 – 12:45

12:45 – 1300

13:00

FNB BOTSWANA HOSTS FIRST EVER AFFORDABLE HOUSING STAKEHOLDER ROUND TABLE FORUM TO EXPLORE AND UNLOCK OPPORTUNITIES WITHIN THE AFFORDABLE HOUSING MARKET. In his opening remarks, Mr Boiki Tema, Director of FNB Property Finance highlighted how FNB Botswana aims to become the Thought Leaders by developing awareness and fostering engagement and become ‘the go to’ bank on matters of affordable housing in Botswana. Themed, ‘Unlocking the Affordable Housing Market Opportunities’ the round table sought to take a lead in exploring the following key subject areas of Affordable Housing.Reviewing Botswana current housing profile and finding a common shared defining element of what is ‘Affordability in Housing in Botswana’. Representations were lead by speakers from:

MINISTRY OF LANDS AND HOUSING (Department Of Housing) Mr G. RabaloneGovernment challenges: • The provision of public officers housing

remains a challenge due to government budgetary constraints

• Demand for funding and plots exceed what government can afford

Government proposed way forward: Government alone cannot resolve these challenges and would need to leverage on the strength of the Private Sector. Government therefore wishes to collabo-rate with the private sector on:• the provision of housing for the un-served market• construction of public officers housing countrywide including remote areas

DEVELOPMENT REGULATORY FRAMEWORKS AND THEIR IMPLICATIONS ON RESIDENTIAL DEVELOPMENTSThe Received Development Control Code – DTRP, Mr L. Ooke

Categorization is aimed at making the DCC user friendly for the individual developer or ease of reference.> Individual Housing (Single Family Detached Dwelling Unit, Single Family Semi-Attached Dwelling Unit, Duplex)> Multifamily Housing (Townhouses, Multifamily Dwellings/Flats, Apartments, Upper Story Residential, Live/Work Unit)> Mobile Housing (Manufactured (mobile) Home), Residential Mobile Home Park

In the new code planning decisions and reviews will done at Local Authority level and Planning Tribunals will consider appeals (once TCPB is rectified by Parliament and Cabinet)

GUEST ATTENDING STAKEHOLDERS FEED BACK:

Mr G. GiachettiNigeria Experience - RDC Group experiences in Nigeria where Satellite Cities of a demand of 1 million and more housing units.

Former Hon. P. BalopiGovernment should take lead in engaging all relevant stakeholders across government entities with private sec-tor to enable the opportunity.

REAL ESTATE INSTITUTE OF BOTSWANAPresident Mr M. Maruping The property market is very thirsty for affordable housing. Prospective buyers are fatigued due to a sustained increase in property prices over the last few years. The market is ripe and only players need to come to the fore. Government, com-mercial banks, private developers and pension funds need to start talking because affordable housing can only be affordable in the real sense if all players participate.

GABORONE LOCAL AUTHORITIES & HOUSING SUPPLY [GCC] Chief Physical Planner, Mr L. Lesenyegile Challenges; • Lack of adequate housing creates market for

informal housing growth in SHHA areas (back yard shacks / one roomed houses)

• Informal multifamily housing• Poor or inadequate housing sanitation

services health risks

Opportunities;• Gaborone Development Plan provides opportunity for vertical growth in the

already developed areas• CBD – opportunity for mixed land use development, High Density Development• New Development Control Code provide relaxation which enables intensification

LESSONS FROM SOUTH AFRICA’S AFFORDABLE HOUSING MODEL AND FNB SA DEVELOPMENT FINANCING PRODUCTS FNB Housing Financing, FNBSAHousing Finance Manager, Mr M. Marias

The SA model encourages home ownership, with those earning below R3000 eligible for social housing under government assistance. Affordable Housing in South Africa defined through income earnings and thresholds of R3000 to R25000 earners and it is a Billion Rand market: Current FNBSA: • >100,000 homes financed• Loan book >R13bn

Some key observations and lessons: • Subsidy does have an impact (FLISP subsidy in SA where government provides financial

assistance to first time home buyers) • Developments & retail business integrated in development has good impact on sales

Residential development process:• Experienced developer with capital essential• Various finance parts to the project• More than one financier will normally participate• Specialised developers (land zoning, stands, top structures)

ALTERNATIVE BUILDING MATERIAL PRODUCT DEMONSTRATIONSAlternative building technologies that re-duce, time, cost and manpower - Reliability, Mr R. Simba

FNB ROUNDTABLE Stakeholder DiscussionUnlocking the Affordable Housing Market Opportunities 04.12.2013

[Left and Centre Image] Attendees at the FNB event, [Right Image] FNB Botswana CEO, Lorato Edith Boakgomo-Ntakhwana


Boidus FeaturePage 4

by HK MokweteAffordable Housing Market- Unchartered Territory

>>> FROM PAGE 01

Contextualising the subject of Hous-ing and Affordability in Botswana What constitutes housing according to local and international standards and are our existing housing stocks living up to those standards?

Housing as a Human right- UN Hab-itat AgendaThe United Nations Article 25 of the Universal Declaration of Human Rights recognises the right to housing as part of the right to an adequate standard of living. The right to housing is codified as a human right in the Universal Declara-tion of Human Rights:

“Everyone has the right to a standard of living adequate for the health and well-being of himself and of his fam-ily, including food, clothing, housing and medical care and necessary social

services, and the right to security in the event of unemployment, sickness, dis-ability, widowhood, old age or other lack of livelihood in circumstances be-yond his control.” (article 25(1))

In Botswana, His Excellency Presi-dent Ian Khama recognizes the role that housing plays in one’s dignity. His social housing scheme, ‘Presiden-tial Housing Appeal,’ was launched in 2010 and to date has contributed 316 housing units to the most needy through private sector donations. The challenge at Policy level is that most of the existing housing strategies such as SHHA, BHC (SiHA) still do not address the increasing demand for ‘affordable housing’ in Botswana. According to recent data from Finscope some 60% (2011) of Botswana’s population has no access to quality housing.

In reference to the global context, the world is experiencing a global housing crisis. About 1.6 billion people live in substandard housing and 100 million are homeless. These people are in-creasingly urban residents, and every week more than a million people are born in, or move to, cities in the devel-oping world (UN Habitat)

Housing as an investmentOf the 39% of investors in Botswana, 8% have been noted to invest in hous-ing. According to results of the IPD Consultative Property Index 2012, the Residential Market Sector outper-formed most sectors (second from In-dustrial) including bonds office, and re-tail by 7.8 % margins. This points to the potency of Housing not only as a right and prerequisite to dignity but also as a good source of investment with poten-tial for bringing financial rewards.

Personal Income Survey -2011 (Finscope-2011)

Income bracket % number of people

>10,000 3.2%

1,000≥10,000nc 26.3%

250≥1,000 35%

Noincome 27%

Typical Mortgage Facilities in Botswana

Mortgage ValueAverage Earning Rate per month over 25yrs

Minimum50,000 P1,300permonth(nodeposit)

Average500,000 P4991.20permonth(nodeposit)

Average cost of houses in Botswana

Average House Low Cost Houses Average House Price

Gaborone Block 9-Typicaltwobedroomsandhalf(2½),450sqmplotsize

P500,000.00

Serowe-BHCLowcost,2bed-rooms,Floorareaapproximately50m²

P408,128.00

Francistown-GeraldEstate,3bedlowcost+TitleDeed

P200,000.00

Affordability in HousingIn broad terms affordability can be seen as a function of one’s personal situa-tion, their assets, income, debt, com-mitments and others (Kecia Rust, 2013).

If, therefore, affordability in housing is measured as a function of the house price, land price or cost of the desired housing investment; then it is worth noting the following statistics at a na-tional level to contextualise affordable terms with personal income situations in Botswana as part of seeking the me-dian for defining ‘affordability’.

With the key information above, see below what experts had to say about affordability in Botswana:

Botswana Affordable Housing Market Overview-Real Estate Institute of Bo-tswana (REIB) - Mr Modiredi Maruping

South Africa’s Affordable Housing Market - Kecia Rust & Adelaide Steedley

Affordablehousingisreallyonlyachievableifcon-sideredholistically.Fromtheonsettheplanning(thisdeterminesfuturesupply)andservicingofthelandmustconformtoaffordablehousingstandards.TherelevantMinistryispresentlylookingatmodalitiesofavailingservicedlandwithprivatedevelopers.Theyarelookingatoptionswhereforinstanceadevelopermaygetapieceoflandfromgovernmentforfreeorhugediscount,servicethelandandgivebacktoGovernmentaportionofservicedlandtobeallocatedonanaffordablebasistodeservingBatswana.

AR300000houseisnot“affordable”justbydefinition–theassessmentisrelative• Affordablemarketareasaremorestable,theyareactive,andtheyaregrowing,providingabuffertothemorevolatilehighvaluemarket

• Affordableareasholdconsiderableequity.Supply(new&resale)isinsufficient–opportunityforgrowth

• Lenderspersistinthehighvaluemarket.Why?» Afunctionofhousingsupply?Afunctionofconstructioncapital?» Afunctionofcreditindebtedness?» Afunctionofinformationandriskperceptions?

Secondly,theprocessesmustallowforaffordablehousingtobedeveloped.Thebuildingcodeasitstandsprescribeshighbuildingstandardsthatareunafford-abletothelowincomepopulation.Weshouldgofortheminimumneededtoensuresatisfactoryenvironmenthealthandsafety.Incidentalcostssuchlandsurveys,bondregistrationsandtransfers,loanarrangementfees,valuationsandtime(waitingforplanstobeapproved,waitingforwatertobeconnected,waitingforpowertobeconnected)alsocontributetounaffordability.

Thirdly,buildingmaterialssupplierscontinuetoincreasepricesbutlowerthequalityofbuildingmaterials.Aroof-ingsheetisleanerbutmoreexpensive!

Fourth,considerationmustbegiventoqualityworkman-ship.Thecostofmaintenanceoverthelifeoftheprop-ertymustalsobeaffordable.

Fifth,themortgageratesmustbeaffordable.

Sixth,theremustbeclinicsandshopsaroundtomakeliv-ingintheneighbourhoodaffordableandsafe.


MarketsPage 5

South Africa’s Affordable Housing Market - Kecia Rust & Adelaide Steedley

by Boidus Admin / An access frontier for housing finance in Botswana, A FinScope Overview Presentation extract, 2011Available Market Data for Affordable Housing Market Opportunity

Available Data that makes a case for a radical ap-proach to both financing and analyzing potential customer’s affordability situations in exploring the Affordable Housing Market:

Criteria that may also limit access to loan fa-cilities Identification document• 16% of potential borrowers don’t have re-

quired IDBanking history:• Require any active bank account at least 3

months old (no proxy in the survey data)• Use instead that the applicant must currently

be banked (with any institution for any length of time)

• 44% of the potential market is unbankedAwareness of mortgage bond / housing loan• 57% of potential borrowers did not indicate

any awareness of a mortgage bond or hous-ing loan

Age• Maximum age for product is 60 years - assume

maximum loan term of 20 years therefore con-straint is maximum age 40

• 51% of potential borrowers are too old (aged 41+)

11/23/2011

5

41% of adults are currently banked*

“Personal experience with various products and services, that is, those owned in your name”: Bank (Have now and use)

(Adults 18+)

0.1%

0.1%

0.2%

0.3%

0.6%

1.4%

2.5%

3.8%

12.4%

14.1%

19.5%

26.2%

0% 5% 10% 15% 20% 25% 30%

Treasury bills/certificate

National savings certificate

Offshore investment

Islamic banking

Money market account

Internet banking

Fixed deposit bank account

Cell phone banking

Current/cheque account

A savings book

Savings/transaction account

An ATM card

Small sample

sizes (n<40)

9

Awareness of**

76%

53%

78%

41%

Source: FinScope Botswana 2009* This includes credit products from the bank (indicated on the next slide)** “What financial products in Botswana are you aware of?” (Multiple response, not a showcard)

29%

36%

22%

9%

-

8%

7%

7%

Percentage

39% of adults make use of some kind of non-bank investment mechanism. Around 8% say they invest in their own homes

Source: FinScope Botswana 2009Note: Several categories were excluded in the chart due to very small sample sizes * The exact question reads: “There are many ways to invest money other than putting it in the bank. Which of the following best describes your experience with the following ways of investing or ways to make additional money to what you normally earn.”

3.7%

3.7%

3.9%

5.4%

6.5%

6.6%

6.9%

7.1%

8.2%

9.8%

10.8%

11.6%

11.8%

0% 2% 4% 6% 8% 10% 12% 14%

Investment in another house/flat/property that you rent out

Investment in a plot of vacant land

Lending money to other people (benefit from profit or earn interest)

A fixed deposit account at the bank

Investment in a village home/ home at the lands / home at the cattle post

Investment in farm land

Investment in your own existing business

Voluntary contributions to a pension or provident fund

Improving your home

Retirement annuities

Endowments or life insurance with an insurance company

Burial society

Investment in cattle or livestock

Non-bank investment mechanisms: Have now(Adults 18+)

Percentage

10

11/23/2011

6

Taken together, 24% of adults have and use a credit product (from a bank, formal provider or informal source)

Bank and non-bank credit and loan products: Have now and use(Adults 18+)

Source: FinScope Botswana 2009Note: Question is“Personal experience with various products and services, that is, those owned in your name”: Bank, Other loans, Retail cards (Have now and use)Note: This analysis excludes store loyalty/club cards** “What financial products in Botswana are you aware of?” (Multiple response, not a showcard)

0%

0%

1%

1%

1%

1%

1%

1%

1%

1%

4%

4%

4%

4%

5%

9%

0% 2% 4% 6% 8% 10%

Loan from a Government Scheme to buy a house

Loan from Pawn shops

Bank overdraft

Loans from credit unions

Loan from an employer/friend/family to buy a house

Mortgage bond or housing loan from a bank

Loan from a micro-finance NGO

Loan from an informal money lender (e.g. mashonisa/cash loan shop)

Vehicle loan from a bank

Other loan from employer

Store card where you buy on account and pay later

Personal loan from a bank

Other loan from friend or family

Buying on credit from store

Loan from motshelo

Credit card

Bank credit products/services Non-bank formal InformalPercentage

Awareness of**

11

Small sample

sizes (n<40)

49%67%

57%

61%

38%

56%

50%

27%42%39%

13%

22%

40%

45%

47%

43%

13% of adults have taken out a loan in the past 12 months. Of these borrowers, far more have borrowed to buy a car than to buy or renovate a house. Over a fifth say they borrowed to pay off other debts.

Source: FinScope Botswana 2009

Taken out a loan in the past 12 months(Adults 18+)

Purpose of taking the loan(Adults 18+, Taken out a loan in past 12 months)

Yes130,711

13%

No863,143

87%

0.2%

0.7%

1.0%

1.1%

2.6%

2.6%

3.0%

3.3%

4.0%

4.7%

6.5%

7.4%

11.1%

11.3%

22.3%

22.4%

23.4%

0% 10% 20% 30%

To purchase land

For medical expenses

To pay for water/ electricity/ telephone

For travel or holiday

To expand business

Money to study

Do not have a loan

To start a business

For a burial/funeral

To buy a house

To pay for children's school fees

To buy food/clothing

For house renovation/extension

To buy furniture/electrical appliances

Other

To pay off debts

To buy a car/vehicle

Small sample

sizes (n<40)

12

Percentage

Note: While 13% say they have taken out a loan in the past year, 24% currently have

and use a credit product

Roundtable Presentation Images, FNB




SustatinabilityPage 6

by Phenyo Motlhagodi

Sustainable Procurement

SUSTAINABILITY TODAY

The positive evolution in society is not without negative impacts, including the exhaustion of nat-ural resources and unrestricted growth in carbon emissions, leading to drastic changes in weather patterns and our environment otherwise gener-ally described as Climate Change. These changes reach all faces of societies; men, women and chil-dren alike. With the complexities of the world laid out in front of us, how do we even begin to iden-tify a solution? There are numerous stakeholders involved, each with a different standpoint. So, more than anything, the answer lies in achieving clarity. Sharing information amongst one another is crucial, especially when the issues involved are deep rooted throughout all of society.

The improved focus on sustainability has also forced organisations to adopt a new attitude to how they operate. The change is happening throughout the supply chain. Internationally, stakeholders agree that a sustainable purchas-ing approach can result in real opportunities for development, but only if sustainable activities are in line with the company strategy. Purchasing de-partments are becoming increasingly involved in steering innovation in their own organisations, as they are the first point of contact with suppliers. As such, this has seen the official launch of the international Sustainable Purchasing Leader-ship Council in July 2013. “The Council builds on two prior collaborations: The Keystone Center’s Green Products Roundtable and a pilot project conducted with the Association of the Advance-ment of Sustainability in the Higher Education. The Council seeks to continue its history of constructive partnership and coordination with initiatives, with the goal of accelerating the mar-ket’s adoption of the purchasing and tools they produce. The structure is a collaborative space in which many organisations and individuals come together to enhance clarity, consistency and co-ordination around sustainability in the institu-tional procurement marketplace.”

This strategy, establishment of such Councils etc., if adopted early enough throughout Africa and most importantly in the less industrialised Botswana, would bring a world of good. The benefit is just not for the consumer but for the manufacturers and suppliers themselves. The reality is that we are living in the information age. Consumers have ac-cess to information about products and the manu-facturing process. As such, strategic brand com-munication can result in a rise on new products. Much to the same effect, because of the consumer knowledge, bad publicity can ruin brand percep-tion, market share and profits.

Because of this new consumer behaviour, pro-curement heads are going through a shift to satisfy a consumer more aware of the social and environmental impact of the products they buy. “The way an organisation manufactures its prod-ucts and sources its raw materials can not only affect the bottom line, but also make or break a brand. Protection of brand image is critically im-portant for organisations fighting to maintain or grow their market share. Implementing good en-vironmental protection practices is a key compo-nent to any Corporate Social Responsibility (CSR) policy and can be used to effectively to add value to a brand.” These are the core values of the con-sultants at the global Bearing Point, renowned for its principles in management and technology consultancy. Procurement today cannot focus on cost alone as it is no longer practical. Today, other dynamics come to play, at an equal if not greater footing. Most organisations realise the impor-tance of implementing and communicating their CSR policies; the challenge locally is implement-ing sustainable purchasing. It is quite clear that organisations are aware of what they must do, and are aware of the importance of communi-cating their environmental practices to their con-sumers. However, implementing these changes has been slow as it is often seen as a cost. “To make sustainable purchasing a reality for a larger number of organisations, it is important to ap-proach it as a value creation activity for both the organisation and its customers. Purchasing plays a critical role in delivering this value to the rest of the organisation.”

It is worth noting that locally, Debswana, UNDP and Kgalagadi Breweries Limited have been at the forefront of policy formation, implementa-tion and active communication of this practice, as evident in the various media platforms avail-able. The sharing of those ideals is essential to the rest of the corporate community and most importantly, Government, who by far is leading the procurement pack. Perhaps it is unfair to ask corporate entities to share their strategies with competitors; maybe professionals in procure-ment industry should be looking at setting up a local and internationally recognised Sustainabil-ity Forum for their own professional relevance. Overall, entities should be looking at those at the forefront to learn from them and keep up with global trends, especially those key to sustainabil-ity for the brand and its consumers with all their differences.

Phenyo Motlhagodi - Facebook@PhenyoOnRadio - Twitter

Could our homes soon be powered by the MOON? Engineers plan to cover satellite in solar panels and beam en-ergy back to Earth[Source: www.shimz.co.jp]

ENERGY

• ShimizuConstructionplanstofitsolarpanelsaroundthemoon’sequator• Panelswouldbe250-milewideandtheringwouldstretch6,850miles• PowergeneratedwouldbesenttoEarthusingmicrowavesandlaserlight• Thefirmclaimsitwouldprovidean‘inexhaustibleamountofenergy’

1. Lunar solar cells -Toensurecontinuousgenerationofpower,anarrayofsolarcellswillextendlikeabeltalongtheentire11,000kmlunarequator.Thisbeltwillgrowinwidthfromafewkilometersto400km.2.Electric power cables -Thecableswilltrans-fertheelectricpowerfromthelunarsolarcellstothetransmissionfacilities.3.Microwave power transmission antennas -The20km-diameterantennaswilltransmitpowertothereceivingrectennas.Aguidancebeacon(radiobeacon)broughtfromtheEarthwillbeusedtoensureaccuratetransmission.

4. Laser power transmission facilities -High-energy-densitylaserwillbebeamedtothereceivingfacilities.Aguidancebeacon(radiobeacon)broughtfromtheEarthwillbeusedtoensureaccuratetransmission.5. Transportation route along the lunar equa-tor-MaterialsneededfortheconstructionandmaintenanceoftheSolarBeltwillbetransport-edalongthisroute.Electricpowercableswillbeinstalledunderthetransportationroute.6.Solar cell production plants-Theplantswillmoveautomaticallywhileproducingsolarcellsfromlunarresourcesandinstallingthem.

Source: www.proudlyafrican.info


Guest ColumnistPage 7

What we offer• Landscaping,Irrigation,Design

&Layout• CivilWorks&Construction• WasteManagement• CleaningServices• GeneralSupplies• SecurityServices• Farming

ABOUT USLandscape Solutions (Pty) Ltd wasestablishedin2000andhasovertheyearsevolvedtobecomeoneofthelargestandmostspecializedLandscap-ingservices,CleaningservicesandWasteManagementservicesproviderCompanyinBotswana.Itisawhollycitizenownedcompany.

our servicesLandscapeSolutionsarespecialistsinCorporateGardenDesignsandMaintenance,GolfCourseandBowl-ingGreenMaintenance,SportsFieldsandRehabilitationofoldareas.

our CLIENTSSome of our key clients include: JwanengMine/PPADB/BotswanaNationalProductivityCentre/UniversityofBotswana/DCEC/MinistryofFinance/CITF/Deb-swanaLodge(Gaborone)/SebeleCo-operativeCentre

GaboronePlotNo.182,Unit6,GIPCP.O.Box81216,Gaborone

Tel:3121955/Fax:3160052Mobile:71636703

JwanengPlot5061

P.O.Box839,JwanengTel/Fax:5883002Mobile:72435938

Find us onlineEmail:[email protected]

Website:www.landscapesolutions.co.bw

Welcome to Landscape SolutionsRevel in our most distillate landscaping services

by Ngozi Chukura

Building a Legacy: A Theory for Gaborone

THEORY FEATURE

“The prints traced by my shoes on the way from my house to the gallery are more impor-tant than the canvases on view there,” -Alberto Greco.

Interaction with the city, emphasising a lived bodily experience, is like an organic inter-course with the buildings and their histories. Gaborone is poised on the precipice of another significant time in its history; its transformation into a Diamond City. How do we create a city that is world class but still appreciates the value of its history and respects the interactions of its people?

In a series of articles, I would like to unpack some of these questions and propose that we look at our capital with more intimacy; that we appreciate the intangible ways that econom-ics, politics, the needs of the people and the vision of the city planner and architect are all interlinked. I hope that it will give all of us the opportunity to appreciate our city more; to toy with the idea of Gaborone’s potential to be an exemplary city in the region and the world.

Gaborone is growing fast. In 2001, the popula-tion of the city stood at 186 007. This number is predicted to increase to 443 647 by 2027. It is expanding perhaps as fast as it did, 49 years ago when the first citizens of the almost Re-public of Botswana decided that it would be their capital city, and set about putting in place the infrastructure that would make it a func-tioning administrative capital. Back then, there were fewer than 18 000 people living in the capital. Now, there are close to 232 000.

This means that every day, 232 000 people

wake up, go to work, worship, study, innovate, walk, cycle and drive; give birth, die and thrive, here. There is something magical in the fact that even though a city is made up of brick, tar, and stone, its essence, its soul, is made up of the people who inhabit it. The city is a testa-ment to the lives they have led.

Experiencing the city is very different, depend-ing on whether you walk through it, take pub-lic transport or drive. Its character changes depending on whether or not it is morning or night: the Exponential Building in the CBD looks unimposing by day, but turns into an undulating beacon of light, after the sun goes down.

Celebrated British architect of Ghanaian de-scent, David Adjaye, said in an interview with fashion designer and property developer, Oz-wald Boateng: “I’ve been to 52 countries and 52 capital cities… As a person born on the continent but having left in my early teens, I wanted to see it again for myself… I wanted the experiences and the narrative of the continent to be my own, so the only way to do that was to explore it myself… I made a decision that taxi drivers are the most unbiased people… I would let them run me around the town for as long as they could… What I didn’t have were the nar-ratives and insights into individual lives, but I made friends along those journeys, incredible things happened,” he said.

In an interview with the Financial Times, former Mayor of Gaborone, Veronica Lesole said that the planners of Gaborone didn’t do a good job because they didn’t give the city enough room to expand. Whether or not it was wise, it was

clear that when the city planners of the ‘60s chose Ebenezer Howard’s Garden City model for Gaborone, they didn’t anticipate how large the city would grow.

When one walks through the Main Mall to-day, they might notice the crush of buildings; some older than others, jostling each other on either side of the central walkway. It is like a tree whose rings tell its age. Some who lived in the city when it was just a small cluster of government offices remember that back in the ‘60s, the Main Mall was the financial hub of Gaborone.

Many people who lived in the capital at the time were civil servants, and worked in the government enclave. Then, the Main Mall and the African Mall were the centres where Ga-borone’s small population would interact, and where people’s lives would intersect. Many people met at the bank, whenever they needed to transact. Whenever people needed to buy groceries on their way home, it was there that they would ‘bump into’ each other.

These places were loci of activity and intercon-nectivity. Lekoma Mothibatsela spoke a little about how the city has grown and changed, over the years. “The four original buildings which housed the ministries are still there, but they are dwarfed by other buildings in the gov-ernment enclave. I am glad that they have been preserved, because they are historical pieces.” He speaks fondly of the development of the Main Mall, in particular, naming some of the businesses that established themselves then and are still part of the mall, today. “President Hotel was there, but was much smaller at the time. It was, I think, the most modern hotel in the country. It was built in 1966. For Indepen-dence, there were really no other hotels that could accommodate visiting heads of state from other African countries. Government then rushed to build the hotel for the visiting dig-nitaries.” Civil servants, he said, would walk in from the government enclave for after- work drinks and to socialise.

Mothibatsela is a member of the Smart Partner-ship, a consortium that has invested in property in the city for many years. He has seen it grow and change and mentions that now, the city is much bigger than it was in the ‘60s. There are also many more people who live here, now. It would seem as though the intimacy and sense of community isn’t the same as it was when the city was still a small cluster of government ad-ministration buildings and residences.

The Main Mall and African Mall are no longer the economic hubs that they were, in yesteryear, even though some of the same businesses are thriving there, today. The Notwane Link Phar-macy, Gaborone Hardware and Botswana Book Centre are still operational there, today.

The CBD was laid out in 1996 with the hopes that it would be the city’s new economic hub, and it is taking over as the site for the eco-nomic activity of the city. Gleaming beacons of progress began to push up out of the ground, changing the landscape of Gaborone. The Min-istry of Health building, the Attorney General’s chambers and the CBD stood as symbols of the ever more cosmopolitan Gaborone, its as-pirations to be a world class city, changing its landscape with world class buildings. Financial institution, First National Bank, has moved their offices there; Citizen Entrepreneurship Develop-ment Agency is based there and so is Botswana Export Development and Investment Authority.

There is one thing that is important to remem-ber as we continue on our journey to give Ga-borone a ‘character’ through its architecture: A building’s purpose may be dictated by those who plan for its construction, but its story is made up of the characters and movements of the people that occupy it daily; those who live here, meander through its passages, do busi-ness, worship, raise their families here. As we stand on the edge of Gaborone’s tomorrow, it could be worthwhile to think about the possi-bility that the city doesn’t make the people; the people make the city and we can be visionary about how we develop ours.


Boidus FeaturePage 8

2013 End of Year Review - Botswana Property & Construction Industry by Boidus Admin

>>> FROM PAGE 01

Property and Construction Activity in Decline Massive Strides in Professionalizing and Regula-tion of Contractors in Botswana’s Construction

TheInvestmentPropertyData-bank(IPD)resultsshowcontin-uedturndownoftheBotswanapropertymarket.Thepropertymarketandtheconstructionactiv-ityduringtheyear2013wereshowntobeinslightdecline..The2ndinstalmentoftheIPDPropertyConsultativeIndexhighlightedadeclineinoverallpropertyreturnfrom20.6%inperiod2011to17.8%in2012.PresentingtheDataatthisyear’sBotswanaBreakfastForum,IPDExecutiveDirectorandHeadofSouthAfricabranch,MrStanGarrun,highlightedthecontinuedgoodperformanceoftheprop-ertysector.

InstitutionalInvestorscalledtostageandinvestinlocalinfra-structuredevelopments:

FUNDSHORT DESCRIPTION

ESTIMATED NET WORTHSOME KEY PROJECTS

MotorVehicleAccidentFund

Asat31December2011portfoliomarketvaluewasP2.4billionwithanoverallassetal-locationasfollows:•Equities55.7%•Fixedincome21.6%•PropertyInvestments4.7%•Cash&cashequivalents18.0%OffshoreinvestmentsAssetsplacedwithBlackrockInvestmentMan-agementincreasedfromP234.6million($37million)inDecember2010toP333.4million($45.3million)inDecember2011.

TheBotswanaPublicOf-ficersPensionFund(BPOPF)

Asatthe31stMarch2012,theassetsofthisportfoliowereinvestedmainlyinequalities/shareswithalowerallo-cationtobondsandcash,andalternativeinvest-mentssuchasproperty.

EmergingMarketEquities,20.18%OffshoreHedgeFunds2.11%OffshoreCash,1,16%OffshoreBonds8.53%DevelopedMarketEquities29.33%

AfricaFunds(DomesticAssetStatus)0.73%DomesticPrivateEquity5.34%DomesticProperty0.39%DomesticCash5.63%DomesticBonds9.10%DomesticEquities17

BotswanaInsuranceHoldings

SanlamLimited,amulti-facetedfinancialservicesgroupthatishighlyre-spectedacrossAfrica,isthemajorityshareholderintheBIHLGroupwitha53%shareholding.

TheGrouphastotalassetsofP12.2billion.In2010,Revenue:>Netpremiumincomeincreasedby29%toP1.6billion>Freeincomeincreasedby14%toP137mil-lion>Valueofnewbusinessincreasedby16%toP132.3million

-OmbudsmanHQ-2008-SADCHeadQuarters-2009-RailParkMall-2010

DebswanaPensionFund

TheFundiscurrently(2010)invested58%BondsandCash,4%Property.Thefundportfo-lioinvestmentswereinlinewiththepredeterminedrangesofitsstrategicassetallocationandre-balancinglimitsattheendof31December2011.

At31December2010,theFundvaluewasP3.2billion,upbyP200millionupfromprevi-ousyear’svaluationofP3billion.

IPD Botswana Annual Property Consultative IndexResults for the year to 31 December 2012

The IPD Botswana Annual Property Consultative Index measures ungeared total returns to directly held standing property investments from one open market valuation to the next and in 2012 returned 17.9%

IPD Botswana Annual Property Consultative IndexTotal return

%Income return

%Capital return

%12 months 12 months 12 months

All Property 17.9 11.0 6.3

Retail 16.6 10.6 5.5

Office 15.2 11.7 3.2

Industrial 28.4 12.5 14.3

Residential 24.4 8.8 14.4

Other* - - -

*No results published for confidentiality reasons.

Comparative DataEquities 7.7 - -

Bonds 6.3 - -

Inflation 7.4 - -

Data sources: BSE All Share, BSE Bond Index, CSO Botswana CPI National

IPD Botswana Annual Property Consultative Index database profileCapital value

BWP (m)Capital value

%Number of properties Number of funds

All Property 2,850.2 100.0 103 7

Retail 1,463.0 51.3 18 5

Office 661.7 23.2 21 7

Industrial 279.4 9.8 26 4

Residential 157.9 5.5 27 4

Other 288.3 10.1 11 2

The figures above represent the full coverage of the IPD Botswana Annual Property database as at December 2012. The IPD Botswana Annual Property Consultative Index employs only fully revalued assets from that database.




%Income return

%Capital return



Retail 16.6 10.6 5.5

Office 15.2 11.7 3.2



Other* - - -



Bonds 6.3 - -

Inflation 7.4 - -





All Property 2,850.2 100.0 103 7

Retail 1,463.0 51.3 18 5

Office 661.7 23.2 21 7



Other 288.3 10.1 11 2





%Income return

%Capital return



Retail 16.6 10.6 5.5

Office 15.2 11.7 3.2



Other* - - -



Bonds 6.3 - -

Inflation 7.4 - -





All Property 2,850.2 100.0 103 7

Retail 1,463.0 51.3 18 5

Office 661.7 23.2 21 7



Other 288.3 10.1 11 2


Presentingatthisyear’sConstructionIndustryPitsothemed“ConstructingtheEconomy:ConsolidatingStrategyPartnership”,MrUlfSoderstroomhasembarkedonestablishmentofaconstructionindustryregulatingauthorityandcontractorregistrations.Stridesmadetodateinclude:

ENGINEERS’REGISTRATIONBOARD• TheEngineers’RegistrationBoardisformallyconstituted.• TheEngineers’BoardhasreceivedfinancialassistanceforGovernmenttomakeitoperationalandselfsustaining.

• AmendmentstoActenacted.

ARegistrarwithateamhascommencedworktoenableregistrations.REG-ISTRATIONOFPROFESSIONALS• TheArchitects’RegistrationCouncil• TheQuantitySurveyorsAct

…WhiteElephantpublicprojectcontinuetoblighttheoverallpictureofconstructionindustryinBotswana.Alistoftheseprojectsincludes:

Project Start Date

Finish Cost

FrancistownStadium

2007 Initialdate2009postponedtoApril2010March2011LastpostponedtoDecember2012

P175million

AdditionalcostP60million

EstimateddamagedcostP600000

SirSeretseKhamaIn-ternationalAirport

June10,2008

May11,2010July122012contractwithSinohydrotermi-nated

P433million

Changing Gaborone SkylineTheRiseoftwotallestskyscrapersredefiningthecapitalcityskylineandcreatingnewpointsoffocusandidentities:

1.TheiTowersfirstphasecompleteandoperational.TheCheesegratershapedtallestbuildinginBotswanahasimposeditsfacetotheCBDmakingitthemostrecognizablereferencepointbymiles.TheiTowershaveatotalof174units,64unitsinTower1and110unitsinTower2.TheTowerboostsa‘SkyLounge’thefirstofitskindinBotswana,privateartgalleryandalsohighendrestaurant,atasteoftheartsGym;numerousretailstoreswillserveresidentsandA-Gradeofficespace.

2.TheBotswanaDevelopmentCorporation,FairscapePrecinctplaceisslowlydominatingtheeasternsky,makingitthebestviewtotheeastofthecitywithitsgleaminghoneycombstructurallattice.ThePrecinctalthoughstillnotcomplete,hasnowmadeaclearstatementofitsformandwillseeahighgradeoftallofficespaceandmixeduseplaceenterthecity’spropertyscape.

ClassifiedsBOIDUS FOCUSWelcome | 2014 Calendar Events | Tenders/Awards| December 2013

2014 CALENDAR EVENTS TENDERS/AWARDS WELCOME

BOIDUS FOCUSCLASSIFIEDS

TO LIST YOUR

T: +267 73805898E: [email protected]

TENDERSJOBSEVENTS

List/Find the latest Tender and Jobs In Construction Stay updated with current Industry Events and activities

PROPERTY LISTINGS

Browse latest Hot selling properties List your property to reach your buyers

PRODUCTS DIY

Showcase your products Start your own DIY project

BUSINESS LISTINGS

List your business and get Boidus Recommendation

Plot 8913 Maakgadigau RoadGaborone West Industrial SitePrivate Bag 0058, Gaborone

Tel: (+267) 360 2000 or 390 6853Fax: (+267) 390 6822TOLL FREE: 0800 600 751

The Public Procurement and Asset Disposal Board (PPADB) was established by and Act of Parliament as an independent parastatal authority, under the Minis-try of Finance & Development Planning responsible for the coordination and management of prudent procurement of works, supplies and services for Government, and the disposal of public assets.

VISION: To be the centre of excellence in public procurement and asset disposal by 2018.

MISSION: To lead the effective implementation of a devolved, efficient, cost effective and transparent public procurement and asset disposal system through and appropriate regulatory environment.

VALUES: 1. Fairness and Equity2. Integrity3. Customer Service4. Partnerships5. communication6. Tranparency

Critical Factors of Tender adjudication1. Capacity2. Capability3. Value for Money4. Delivery Period5. Price

Decision Criteria of Tender Adjudication1. Highest Technical Score2. Highest Technical & Financial

Scores (Combined)3. Compliant & Loset in price

In Accordance with Clause 86 and 87 of the PPADB Act, the Board shall advertise:(a) All applications by contractors for registration and thereafter the decisions on the grades and codes accorded to applicants;(b) All tenders being invited; bids received and award decisions and prices.

The board is also required to publicize the decisions arising from complaints and challenges dealt with by the Board or the Independent Complaints Review Committee.

COMMITTEE DECISIONS: Adjudication decisions on Ministerial Tender Committee decisions are available on the PPADB website: www.ppadb.co.bw

PPADB Toll Free No.0800 600 751

Board Adjudication Decisions for the 10th October 2013 Board Sitting

Board Adjudication Decisions for the 26th September 2013 Board Sitting


Board Adjudication Decisions for the 7th November 2013 Board Sitting

Board Adjudication Decisions for the 7th November 2013 Board Sitting



MINISTRY OF INFRASTRUCTURE, SCIENCE & TECHNOLOGY

MINISTRY OF STATE PRESIDENT

MINISTRY OF MINERALS, ENERGY & WATER RESOURCES

MINISTRY OF LOCAL GOVERNMENT

Tender No: PR 9/3/3/13-1 Tender Title: Department of Building and Engineering Services (DBES)‘s request for the Provision of Resident Staff for the Pre and Post Contract Consultancy Services for the Proposed Police Housing at Block 10 in Gaborone at an amount of BWP2,388,000.00.Adjudication Decision: ApprovedSubmission Date: 04.10.2013

Tender No: PR 9/3/105/1999-2000 Tender Title: Department of Building and Engineering Services’request to award the contract for direct appointment of Mr. Keith Rettig at BWP1, 911, 717.00 (VAT Inclusive) for Consultancy Services for the Construction of Integrated Sports Facilities at Francistown. Adjudication Decision: ApprovedSubmission Date: 18.09.2013

Tender No: PR 2/2/3/13-2 Tender Title: Office of the President’s retroactive request to engage Tajin Investment (Pty) Ltd T/A Mogote Electrical Installation for the Installation of Electrical and Mechanical Equipment at Office of the President at an amount of BWP 323 366.74 inclusive of 12% VAT.Adjudication Decision: Did not ApproveSubmission Date: 28.08.2013

Tender No: PR 10/1/1/13-1 Tender Title: Ministry of Minerals, Energy and Water Resources (MMEWR)’s request for direct appointment of Aurecon Consultants for the Consultancy Services for Morupule B, Unit 5-6 (Brownfield) and Mmamabule (Greenfield) Project. Adjudication Decision: ApprovedSubmission Date: 25.10.2013

Tender No: PR 8/1/3/12-1 Tender Title: Department of Local Government( Technical Services)’s request to award the tender for the Construction of Boteti Northern Cluster Rural Villages (Khumaga, Moreomaoto, Motopi, Makalam-abedi, Phuduhudu and Chanoga/Xhana) Water Supply Rehabilitation Project to Red East Construction at BWP 166,366,072.47.Adjudication Decision: ApprovedSubmission Date: 24.10.2013

Tender No: TB 9/3/188/2001-2002 Tender Title: Department of Building and Engineering Services (DBES)’s request to award the tender for the Completion of Snags at Tlokweng Braille Centre and Hydrotherapy Pool to Nkulo Enterprises (Pty) Ltd at an amount of BWP 369 488.00.Adjudication Decision: Did not ApproveSubmission Date: 21.10.2013

Tender No: PR 2/2/3/13-1 Tender Title: Office of the President’s retroactive request to pay Whyte & Plumbers (Pty) Ltd for the remedial works at the Office of the President at an amount of BWP 303 502.00 inclusive of VAT.Adjudication Decision: ApprovedSubmission Date: 04.10.2013

On the twentieth anniversary of South Africa’s re-birth, the UIA Congress will celebrate the African profession as a meaningful contributor to world architecture and thought leadership in city development; as well as the continent’s contribution in the affairs and evolution of architecture globally.

Architects, engineers, designers, technologists, planners, think-ers and writers from all over the world will gather, with the public, for a week of lively and challenging talks, workshops, events and happenings.

UIA 2014 WORLD CONGRESS IN SOUTH AFRICA

EAST AFRICA PROPERTY INVESTMENT SUMMIT

UIA Congress 3-7 AUGUST

UIA General Assembly 8-10 AUGUST

Durban International Convention Centre (ICC)

“The outlook for the sector is encouraging and there are a lot of unique and attractive opportunities in the East African Market.” Michael Turner - Managing Director Actis East Africa

Attend the most noteworthy platform for learning about real estate development in East Africa with an agenda packed full of quality content and expert speakers. The East Africa Proper-ty Investment Summit will deliver a fresh and unique approach to the challenges and opportunities present in the region.

Kenya• Annual GDP growth:

4.3%• FDI Inflows forecasted to

average US 1.3 Bn p.a• Average Annual Growth

Rate: 4.81%• Projected Growth Rate of

5.2% in 2014• Population: 44 Million

Uganda• Annual GDP growth : 5.7%• Average Annual Growth Rate:

5.76%• 46.4 Billion GDP• FDI Inflow $792.3• Population: 34.7 Million Ethiopia• Annual GDP growth : 8.5%• The second Largest Population

in Africa • One of the fastest growing econo-

mies in the world• Average Annual Growth Rate: 5.1%• Population 94.9 Million South Sudan• Average Annual Growth Rate: 11.4%

Burundi• Annual GDP Growth: 4% • Average Annual Growth Rate: 2.6% • FDI Inflows at $1.7 Million

Tanzania• Annual GDP Growth 7.5%• One of the fastest growing econo-

mies in Africa and the world• Average Annual Growth Rate: 7%• GDP: 13.7 Billion• Population: 48.2 Million

Rwanda• Annual GDP Growth : 5.7 %• Amongst the fasted reforming

countries in the world• Dubbed “Africa’s new Singapore”• Average Annual Growth Rate: 8.0%

ClassifiedsBOIDUS FOCUS

Sponsored by

December 2013 | Home Improvement Ideas

DIY Projects - 6 Steps to the Perfect Inground Pool Sponsored by

There’s nothing like installing a concrete swimming pool to one-up your neighbor’s aboveground version. But planning yourdreampoolcanbeharderthanitfirstseems.Consideryour options and obligations before breaking ground, and inground pool construction will proceed swimmingly.

1. Pick a PoolThere are three main types of inground pools. In order of popularitytheyare:concrete,vinyl-linedandfiberglass.

Concrete pools are truly custom-built and can be formed to virtually any size or shape. Once the concrete cures, it’s either plasteredsmooth,painted,finishedwithatexturedaggregatesurface or tiled.

It typically takes longer to install a concrete pool than any other kind—generally between three and 12 weeks—but it’s considered the strongest, most durable type of pool. And, unlike any other type of inground pool, existing concrete pools can be remodeled, enlarged and updated.

Vinylpoolsaremadefromapreformedflexiblelinerthatfitsinto the hole and attaches to a reinforced wall frame made of steel, aluminum or non-corrosive polymer. Most vinyl pools are rectangular, but L-shaped and freeform liners are also avail-

Source: popularmechanics.comable. And vinyl liners come in dozens of patterns and colors to satisfy anyone’s personal preference or poolscape design. Construction time for a vinyl-lined pool is generally one to three weeks.

Fiberglass pools are factory-molded into one giant bowl-shaped piece, which is set into the excavated hole by a crane. Asaresult,fiberglasspoolscanbeinstalledmuchfasterthanother pool types. In some cases, installation takes as little as three days.

Fiberglasspoolshaveasupersmoothgelcoatfinishthat’sextremely durable and stain resistant. Unlike concrete, fiberglasspoolsarenonporous,sotheytendtousefewerchemicalsandharborlessalgae.However,fiberglasspoolscome in fewer sizes and shapes than concrete or vinyl pools. And the huge molded pools must be shipped via truck, which are often forced to take long, circuitous delivery routes.

2. Compare PricingCost varies widely depending on the region of the country, type of pool, soil condition, circulation system, accessories and, of course, the size and shape of the pool. Even the time of yearcaninfluencetheprice;somecontractorsofferdiscountsfor pools built during the off-season when business is slow.

Generally speaking, concrete pools are the most expensive, followedcloselybyvinyl-linedpools,andthenfiberglass.However,ahigh-end,tricked-outfiberglasspoolcouldcostmore than a barebones concrete pool.

3. Check With ZoningInground swimming pools are subject to building and zoning regulations just like any other home-improvement project.

Building and zoning rules differ from town to town, but ordinarily you must satisfy certain setback distances from the pool to property lines, septic tanks, wells, sewer lines, wetlands and the like. There are also codes concerning pool barriers and gate hardware. For an extra level of protection, especially if you’ve got young children or grandchildren, con-sider mounting alarms on all house doors and gates leading to the pool, and installing a power safety cover over the pool.

4. Site the Pool* Let the Sun Shine In: Take advantage of free solar energy by picking a pool location that’s open to the sun and well away from any trees. * Block the Breeze: Building a pool in a windy location greatly increases water evaporation, which means you’ll constantly have to add pool water to maintain the proper level. * Stay High and Dry: Avoid building in a low-lying area, which couldresultinthepoolfloodingwithmudanddebrisduringperiods of heavy rain. * All Clear Above and Below: The pool shouldn’t be located beneath overhead telephone or electrical wires, or directly over buried sewer lines, septic systems or electrical cables. * Keep Eye Contact: Whenever possible, build the pool within view of the house. That way, you can keep an eye on swimmers even while you’re indoors. * Accommodate Accessories: When determining pool place-ment, be sure there’s enough room for installing accessories, such as a whirlpool spa, slide, diving board, bench seats and utility shed.

5. Choose a Circulation SystemThe pool’s circulation system is designed to keep the water cleanandcrystalclear.Todothiseffectively,itusesbothfiltra-tionandsanitization.Theheartofthefiltrationsystemisthepump. This draws water from the pool’s bottom drains, sends the surface water through an automatic skimmer, and then passeseverythingthroughafilterbeforerecirculatingittothepool.Therearethreetypesoffilterscommonlyused:sand,cartridge and diatomaceous earth (DE).

6. Beware of Budget-BustersThe true price of an inground pool is often about twice the cost of the pool itself. That’s because there’s so much more to an in-groundpoolthanaholefilledwithwater:Youneedtoenhancethe landscape, buy accessories and invest in pool maintenance.

Here’s a list of items that aren’t typically included in the price of the pool: outdoor lighting, landscaping, pathways, decks, fencing, patios, privacy screens, whirlpool spas, outdoor sound system, water test kits, shade structure, patio furniture, equipment shed, storage cabinet, pool toys, additional outdoor electrical outlets and telephone line.

ClassifiedsBOIDUS FOCUSProducts | December 2013

PROFILE: Botswana’s Leading Building Material Suppliers

Boidus Interview with Mr Shaikh- Builders World Operations Managing Director

BF: What are your views on the lack of standards for build-ing material products in Botswana being a challenge?

• Builders World has to rely partly on SABS approved prod-ucts as BOBS does not cover all products.

• Builders World, through BOCCIM, is lobbying government and policy makers to impose quality tests on imports.

• There is a need for the industry to come together and form an association that can engage policy makers and help develop and protect the industry from unscrupulous suppliers.

BF: What do you think about challenges posed by Foreign Building material imports?

The customer is the one who stands to lose most. The prob-lems start after a few years when customers need to repair and maintain their houses with these foreign materials. Because there are no replacements materials, either people incur additional costs to buy replacement or then have to re-place the whole project with what they should have invested inthefirstplace.

• There is a need for consumer awareness and public edu-cation. Suppliers and product promoters should engage in educating consumers about the value and quality of their products. For example, of the many cement products that are available, there are some that have high quality and will give high quality results which in the long term returns value for money.

• Builders World holds periodic demonstration and activa-tion events which are aimed at education professionals and building materials consumers.

BF: Why did you re-brand Builders World?

Builders World has re-branded its motto/logo to ‘Build For Life’from‘WeBuildwithYou’inordertoreassertourimageas that of a long-term partnership with our customers. To this end, Builders World ensures quality products and customer

satisfaction.

BF: Tell us about the services and customer care at Builders World.

We have various customer ancillary services such as:

• Our estimating department helps produce a bill of cost for our clients’ building plans from the architect

• Free delivery within 30k radius of Gaborone• Free gift as a token of appreciation for every client no mat-

ter how small their purchase• PurchaseFlexibility-Wemakesureclientshavetheflex-

ibility to return, replace and swap goods as part of their buying process. Sometimes clients have excess products which they no longer need so we take back these goods in exchange for their money or swop.

• Over and above this, Builders World strives for customer happiness.

• Come to us for; » Better pricing » Improved service quality » Sensitivity to customer feedback

Boidus Focus sat down with the Head of Marketing, Estimations and Social Work for Jamal Trading, Mr. Didarul Islam Bhuiyan, to

gain some insight on one of the country’s leading building material suppliers. He had this to share with us.

• For those customers who come to Jamal Trading with a plan, a full estimation of the cost of materials to build the house is done free of charge.

• Free delivery of supplies for houses within Gaborone which is done step by step as the need arises for certain supplies so as to avoid risk of theft.

• Customers can open a deposit account with the store into which they deposit and access money for pur-chasing goods anytime and this account comes with discounts on all products.

• Branches within Gaborone can be found in Tlokweng,

Phakalane, and G-West Industrial.• Branches outside Gaborone can be found in Lobatse,

Molepolole, and Thamaga.• We also plan to open branches in Mogoditshane, Francis-

town, Mahalapye and Maun starting with Mogoditshane in 2014.

• Our prices and our products are our strengths. People love us because our materials last.

• These days there’s a lot of overseas competition because some people like to go to China to buy materials because they’re very cheap there but people should be careful to buy quality products no matter where they purchase.

• Mr. and Mrs. Ahmed are the founders and Mrs. Ahmed is the CEO of Jamal Trading Company as well as Nata Timber and Eezi Build.

Boidus Interview with George Haskins - Haskins

BF: What is the state of the building material suppliers in Botswana, in view of other foreign competing players such as Chinese imported material?

• The market is becoming a lot more competitive • Choppies have entered the building material suppliers

industry, which is good for consumers, to give them a lot more choice.

• For the past 10 years it has been Haskins, Jamaal, Builders World and Cash Build but now there are a lot of suppli-ers that have emerged, including the likes of Builders Warehouse.

• Individuals and companies are buying from China.• Most companies buy from China through South African

companies as well as Botswana-based ones.

BF: Ancillary services provided by building material sup-pliers can make competition tough;

• Haskins try to be little more specialized in certain areas • We are making an effort to differentiate ourselves from

the mass market• We have established a relationship with Honda, a high-

quality product, and use their trailers for marketing their products

• Haskins joined farming and are always exhibiting at agriculture shows

BF: Are there buying/purchase plans or schemes, that dif-ferentiate Haskins from other leading building material suppliers?

• Haskins has become strong in the farming market.• We have open days; recently we invited 20 suppliers and

attracted consumers; they also had an opportunity to win amazing prizes.

• Interact with our consumers so that they are sure of the products they are purchasing.

BF: And what about consumer education?

• Our consumer education drive started when we advertised with Boidus Focus. We did features to educate people about certain things in the building industry.

• We have been involved in different expos, giving demon-strations to consumers and interacting with them directly.

• We like to create the atmosphere of exchange with our cus-tomers. Instead of just showing the products with the price, we strive to facilitate understanding with our clients.

Botswana’s Building material suppliers have come of age, from the days when consumers used to rely on ‘general dealers’ and local co-operatives for their assorted building materials and other equipment supplies. Today, a cut-throat, competitive building material suppliers industry is emerging, with the key players having to remain relevant in order to retain their customers.

Boidus Media sought to build a picture and understand the evolution of this industry by speaking to some of the long established and leading ma-terial suppliers. Below are conversations with Mangers of Builders World, Haskins and Jamaal Trading Company:

ADVERTISE YOUR PRODUCTS HEREAND REACH YOUR C U S T O M E R S

Construction IndustryArchitecture

Built EnvironmentArts & Culture

Property InvestmentWHY BOIDUS? • the consumer of the built environment needs to be in a position to access in-formation regarding what the architectural industry is up to • a platform for discussion and dis-course needs to be created where open, earnest discussions on important issues take place

GABORONEKILLIONT: +267 75505291E: [email protected]

FRANCISTOWNWADAT: +267 71480679E: [email protected]

ClassifiedsBOIDUS FOCUSJune 2013 | Advertising


AdvertorialPage 13

MONTHEND SPECIALS

Cement CEMENT TILE CEMENT

GLOSS ENAMEL 5LTRWHITE/CREAM

ACRYLIC PVA 5LTRWHITE/CREAM/PEACH

BLACK/G.BROWN

BUILDERSMART PAINTS

Valid from 19th-11-2013 to 14th-12-2013 Open Sundays: 24th Nov & 1st & 8th Dec 2013

WIN

www.afrisam.co.za

STAND THE CHANCE

TO WIN A MOTORCYCLE

WHEN YOU BUY A BAG OF

AFRISAM’S ALL PURPOSE CEMENT.

CHECK OUT THE BACK FOR DETAILS.

BUILDERTO BIKERIN 5.2 SECONDS

GABORONE: TEL: 3927558 Fax: 3927559

124.95 134.95

54.95

MANAGERS SPECIAL

DURA ROOF TILES

DURA ROOF TILESSABS & BOBS

APPROVED

41.50

CORRUGATEDSHEETS PER MTR

IBR SHEETS PER MTR

18.50

31.50Free Local Delivery!Plot Number 14389, New Lobatse Road, Gaborone

STANDARD 1.8MTR

CHICKEN MESH 1.2X13 X PER ROLL

1.8X13 X PER ROLL

FENCING

FENCING

FIELD FENCE

599.95

BARBED WIRESINGLE 17KG

28kg

324.95

199.95

FENCE BINDING WIRE 2.0MM x 5kg

4.0mm x 5Kg

54.9552.95 31.95

559.95

859.95

GATE DOUBLE 3.0M X 1.2MTR

GATE SINGLE 900 X 1.2MTR

294.95

119.95

DIAMOND MESH 1.2X2X75MM

CORNER POLES 1.8MTR

44.95

209.95

STAY 1.8X38

25.95

1.8X13 X PER ROLL

1.2MTR x 100MTR

ROOFING

ROOFING SHEETS

26.95

ACRYLIC PVA 20LTRWHITE/CREAM/PEACH

194.95


AdvertorialPage 14

DIAMOND CUTTING

CURTAIN RAIL

ELECTRICREADY

LITE 6ʼ+LAMP

ELECTRIC WIRE

ELECTRICAL

DULUXGLOSSENAMEL

MEDALWATER PROOFING

PAINTS

PAINTS

PLASCON ACRYLICPVA WHITE/ CREAMPEACH20LTR

MISCELLANEOUS

Plot No. 14389 G.West Industrial, Gaborone

ROLLER BRUSH TRAY

12.50

THINNERS 750ML

19.95

TURPENTINE 750ML

19.95

PER MTR

12.75

199.95DULUX CAPITOL

PVA WHITE20LTR

DULUX CAPITOL

PVA CREAM& PEACH20LTR

209.95

239.95

199.95

5LTRALL COLORS

84.95

ENERGY SERVER

8.95

47.95

EXTENSION CORD 5M

PVC CONDUIT PIPE 20MM

7.50

2.5MM/100M

1.5MM/100M

22.95

154.95

234.95

109.95 12.95

GAS CANISTERDISK 250MM DPC 4.5 INCH

DPC 6 INCH

WELDING ROD 2.5MM / KG

12.95

9.95

DOUBLE SOCKET OUTLET ROUND

24.95

GYSER SWITCH

SINGLE SOCKET OUTLET ROUND

SINGLE SOCKET OUTLET SQ.

16.95

10.959.95

DOUBLE SOCKET OUTLET SQ.

FLUSH 12 MOD

DISTRIBUTION BOARD

BULKHEAD PVCDISTRIBUTION BOARD SURFACE 12 MOD

16.95 89.95

72.9519.95

EARTH LEAKAGESINGLE POLE

CBI

569.95

5LTRWHITE&CREAM

709.95

CUTTING DISK230MM

14.95


Professional PracticePage 15

The New Revised Development Control Code 2013by Boidus Admin

BACKGROUND TO THE REVIEW PROCESS

The review of the Development Control Code (DCC) of 1995 has become necessary, given the fact that it was prepared 13 years ago. Evi-dently, with the passage of time, most of the conditions (physical, social, economic and en-vironmental) under which it was prepared have changed and new and more complex forms of developments, and land uses are emerging. The need for the review of the Development Con-trol Code of 1995 is a reflection of the develop-ment dynamics being experienced in the coun-try. These dynamics are the results of a number of factors which include the Socio – economic profile of the population and the state of the economy which have both improved, as well as physical planning factors which are constantly changing. As noted, physical developments, particularly in our urban centres, are becoming more complex. It is therefore important that the DCC be reviewed such that it is aligned with current development realities. It will be out of place if the regulations and guidelines which are meant to facilitate orderly developments do not evolve with the changing times.

A review of the DCC of 1995 has also become necessary if it is considered that the approach to the control of developments is taking new

directions in the contemporary planning sys-tem that is emerging globally. A land use management approach which seeks to put mechanisms in place to encourage and assure that the desired types of land developments satisfy the safety, liveability, health and gen-eral welfare criteria is now being favoured by most planning authorities around the world. In this regard, it becomes important that Bo-tswana keeps abreast with such new directions through benchmarking, but of course adapt-ing these to suit its peculiar physical, social, economic and cultural conditions and circum-stances.

The need for the review of the DCC of 1995 becomes more compelling when it is realised that: i. The current code does not offer enough

flexibility in its application in terms of al-lowing adequate discretions to responsible Planning Authorities with regards to the granting of waivers on standards and re-quirements, however insignificant they are. For instance, applications for grant of waiv-ers on set-backs have to be referred to the Town and Country Planning Board (TCPB).

ii. New forms of developments and land uses not catered for by the 1995 code are now emerging, e.g. infrastructure developments such as dams, sanitary landfills, airports, gymnasiums, cemeteries, and historic sites.

iii. The provisions of the 1995 code relate only to site specific developments (at the indi-vidual plot level), leaving out developments at a wider spatial area, e.g. neighbourhood level.

There is a marked departure from the DCC OF 1995. These are informed by the following:

a. The introduction of new regulatory con-cepts and ideas, so as to align the revised

Code with current development realities in the country and current international best practices which have been adopted and adapted to suit Botswana’s circumstances, through benchmarking.

b. Botswana is one of the few countries with a single Development Code that is applied in the whole country. As presently constitut-ed, the Development Control Code of 1995 is applicable to urban and rural settlements that are Declared Planning Areas. The issue with this arrangement is that the universal-ity of application of one single code across Declared Planning Areas of the country does not make it responsive to the unique planning issues and challenges that should be addressed within the context of particu-lar areas, given their differing levels of de-velopment, cultural characteristics and dif-ferences in economic status. To address this issue, the revised DCC has adopted a format that provides a general guiding regulatory framework for developments, with more detailed standards and regulations which can be easily applied in the more urbanised centres of the country. Furthermore, the revised DCC recommends that it becomes mandatory for all settlement development plans, as and when they are prepared, to have their own specific regulatory stan-dards for developments. This would inform of land use zoning and land use activity regulations that address the peculiarities of their jurisdictional areas, based on the tem-plates and regulatory framework provided by the revised national Development Con-trol Code. Such area specific land use zon-ing and land use activity regulations shall be integral components of the development plans.

Amongst the major highlights of the revised code are the following:

HOW TO USE THE CODE LAND USE ACTIVITY TITLES PRINCIPAL AND ANCILLARY USESThissectionismeanttoincreasetheeaseofuseoftheCodeandconsequentlyenhanceitsuserfriendliness.Itprovidesbasicinformationtousersonthebasicorganisationoftheregulationsandgivesresponsestoanumberofquestions/querieswhichmightbefrequentlyaskedorraised.

Suchquestions/queriesandresponsesaresetforthasfollows:Q.IWANTTOESTABLISHANEWUSEINANEXISTINGBUILDINGQ.IWANTTOCHANGETHEUSEOFMYPLOTQ.IWANTTOSUBDIVIDEMYLANDQ.IHAVEAUSE,BUILDINGORSIGNTHATISNONCON-FORMING:

ThefollowingLandUseActivityTitlesareestablishedunderthisCode:

i. ResidentialLandUseActivitiesii. Civic&CommunityLandUseActivitiesiii. CommercialLandUseActivitiesiv. IndustrialLandUseActivitiesv. Sport&RecreationLandUseActivitiesvi. TransportationLandUseActivitiesvii.Utilities&UtilityServicesviii.OpenLandUseActivities(Agriculture,resourceextraction)

ForregulatorypurposetheDetailedClassificationofLandUseActivitiessetinTable2.2includethefollowing:

i. PrincipalUse–theprimaryorpredominantuseofanypieceofland(plot/property).The“PrincipalUse”portionofeachlanduseactivitytitlelistsprinci-palactivitiescommontothattitle.Thenamesofactivitiesaregenericandarebasedoncommonmeanings,notonwhataspecificusemaycallitself.

ii. AncillaryUses-ausethatisonthesameplot/propertyas,andofanaturecustomarilyincidentalandsubordinatetotheprincipaluse,structure,orbuild-ingontheproperty.Noancillaryusemaybeestablishedonasitepriortotheestablishmentofapermittedprincipaluse,(unlessitisapartofthesequencingprocesswithinthetimeallowedforpropertydevelopment.)

i. All – inclusiveness in terms of use catego-ries and land use activities which have been added and for which provisions for their regulations have been made. This is in view of new and more complex forms of devel-opments, as well as new land use activities that are emerging in Botswana, particularly in urban centres;

ii. While allowing for the current levels of lim-ited discretionary powers to responsible lo-cal planning authorities, the provisions of the revised code allows for total powers to responsible local planning authorities with regards to decisions on planning applica-tions and permits. This accords with the current thinking on the revision of the Town and Country Planning Act (TCPA) of 1997;

iii. Provision of a Matrix Table which indicates the principal uses within each use zone and which ancillary uses that go with each principal use. Furthermore, the revised code outlines permitted, conditional and prohibited uses within specific zones. This, it is believed would make things easier for developers when filing applications for planning permissions, in the sense that at a glance, they know what the requirements are. In addition, the Matrix Table is meant to serve as a template in the preparation of settlement Development Regulations, as part of Settlement Development Plans. This of course should be modified/adapted to satisfy and meet the development pecu-liarities of individual settlements;

iv. Sight has not been lost of other develop-ment related legislations and regulations, such as the Building Control Code; Urban Development Standards (UDS) and the Town and Country Planning Act (under revi-sion). Key and relevant provisions of these have been adopted and incorporated into the revised DCC as a means of addressing the issue of multiplicity of development related pieces of regulationsand their har-monization.

v. Certain provisions of the 1995 DCC which are considered to still be valid and relevant are retained in the revised Code.

EDUCATION FEATURE: Career Review for Academic Year 2013/2014BOTSWANA INTERNATIONAL UNI-VERSITY OF SCIENCE & TECHNOLOGY

BIUST is widening international and regional opportunities for higher education in Science, Engineering and Technology.

COURSES OFFERED • BSc Information Technology• BEng Telecommunication Engineering• BEng Energy Engineering• BEng Geological Engineering

CONTACT DETAILSOCAAT Plot 1055 Modipane Road OodiPrivate Bag 041, Bontleng, GaboroneTel: +267 3926909, Fax: +267 3926904Email: [email protected] Web: www.biust.ac.bw

BA ISAGO UNIVERSITY

COURSE Diploma in Real Estate

The programme is designed to enhance the competencies and upgrade the knowledge of Property Managers, Owners, Consultants and Practitioners. At the end of this programme, participants will have an extensive overview of real estate industry and be knowledgeable in real estate laws and regulations.

CONTACT DETAILS: GABORONE CAMPUSPlot 54831, Block 7, Corner of Western Bypass(Motsete& Mogoditshane Road)Email: [email protected]: (+267) 3957744Fax: (+267) 3957709

UNIVERSITY OF BOTSWANA – FACUL-TY OF ENGINEERING & TECHNOLOGY

COURSES OFFERED• Bachelor of Architecture• Bachelor of Engineering (Mechanical Engi-

neering)• Bachelor of Science (Real Estate)• Bachelor of Engineering (Civil Engineering)• Bachelor of Science (Urban and Regional

Planning)• Bachelor of Land Management

CONTACT DETAILSUniversity of Botswana Admissions4775 Notwane RdGaborone, Botswana Private Bag UB 0022Tel: +(267) 355 0000 Gaborone, Botswana

LIMKOKWING UNIVERSITY OF CREATIVE TECHNOLOGY

Limkokwing is a private institution dedicated to the development of creativity and innovation. It creates flexible pathways creating the right environment for the building of skills, talents, and knowledge.

COURSES OFFERED• Associate Degree in Architecture Technology• Bachelor of Arts in Interior Architecture• Associate Degree in Interior Design• Associate Degree in Retail Design & Management

CONTACT DETAILSP.O. Box 294, Gaborone, BotswanaPlot 59140, Block 7, Gaborone, BotswanaTel: +267 318 0135, Fax: +267 3922 356Web: www.limkokwing.net

>>> FROM PAGE 01


Professional PracticePage 16

Performance and Retention Bonds: Avoiding Pitfalls by Boidus Admin / (Adapted from www.inhouselawyer.co.uk and www.hklegal.co.uk)

AVOIDING PITFALLS ON CALLS ON PERFOR-MANCE BONDS:Calling on a performance bond should result in swift receipt of the bond amount by the benefi-ciary. However, there are risks involved in making calls on performance bonds, which can result in complex proceedings leading to delay and cost.

UNDERSTANDING A PERFORMANCE BONDA performance guarantee assures payment to the employer in the event that the contractor does not ful-fil his obligations in terms of the underlying contract.

In other words, Performance bonds are a type of promise to pay or guarantee of payment provided by a third party (the surety or the guarantor) to an employer (the beneficiary) as security against the non-performance of a contractor (the principal). In the construction industry, the surety or guarantor is likely to be a financial institution, such as a bank or an insurance company and the amount of the security provided by a performance bond would

typically be between 10 and 20% of the underlying contract value.

The advantage of performance bonds for employ-ers is that, in the event that the non-performance of a contract is as a result of the insolvency of the contractor, or of their parent company, the em-ployer retains some security by having the ability to call upon the third party to pay out on the bond. While most developers are advised to seek both performance bonds and parent company guar-antees, precedent case law highlights the impor-tance of paying careful attention to the drafting of performance bonds in order to avoid potential pitfalls when making a call on the bond.

UNDERSTANDING TYPES OF BONDPerformance bonds can generally be categorised into three types; conditional bonds, on-demand bonds and hybrid bonds.

Conditional bonds; A conditional bond or a ‘see

to it’ bond is characterised by the requirement for the beneficiary, when making a call on the bond, to have a judgment or award evidencing a proven breach of the underlying contract, and a loss suf-fered by the employer as a consequence of this breach. In this respect a conditional bond is gen-erally seen as a guarantee, in that it imposes an obligation upon the guarantor, subject to the ben-eficiary establishing proven default in the underly-ing contract. It, however, differs from a guarantee in that the beneficiary is not required to first seek recovery from the principal.

On-demand bond; In contrast to this, a ‘pure’ on-demand bond is characterised by the absence of any conditions required to make a call on the bond other than the making of the call itself. In this way, a primary obligation is imposed upon the surety (or ‘bondsman’). In practice, the risk to an issuer of performance security of a call is signifi-cantly greater in view of the fact that loss, default or breach does not need to be proven. This risk is reflected in the increased costs of this kind of security compared to a conditional bond.

Hybrid bond; Hybrid bonds, as the name would suggest, could fall anywhere along the spectrum between conditional bonds and ‘pure’on-demand

bonds. As a result of the varying degree of con-ditionality present in hybrid bonds, making a call on these bonds can create the most difficulties in practice. A hybrid bond will require some condi-tions to be satisfied by the beneficiary in order for them to make a call on the bond. For instance the beneficiary may have to produce specific docu-ments evidencing the grounds under which they believe the principal has breached the underlying contract or the loss that they have suffered.

EXPIRY DATEIt is important to look out for clauses dealing with the expiry date of the bond, especially given that there is usually a relationship between the trigger for the expiry of the bond and the underlying con-tract. Clauses dealing with the expiry of the bond could include specific procedures for renewing or extending the bond when certain circumstances are met. Careful consideration of these clauses should be given in respect of the timing of a call and the potential benefits that could be obtained by renewing or extending the bond. Depending on what type of bond has been purchased, it may be necessary to extend the bond beyond expiry in order to fulfil the procedural conditions required to make a valid call on the bond.

Fixed-term expiry dates should be treated with caution, as there is not only the risk of projects overrunning but there may well be events capable of triggering the expiry of the bond before the fixed expiry date.

THE UNDERLYING CONTRACTThe terms of underlying contracts will often im-pact on a bond call and so it is essential that these are examined before calling on a bond. The un-derlying contract could go so far as to stipulate the circumstances under which a call can be made.

CORPORATE DUE PROCESS AND FINANCIAL DUE DILIGENCEIn order to comply with the conditions of a bond, a beneficiary may have to provide statements from company directors to evidence that they have an honest belief that there has been a breach of con-tract by the principal or that the company has suf-fered a loss. To guarantee that all of the conditions of a call are satisfied, it should be kept in mind that there may be an amount of corporate due process required in order to get any appropriate authori-sation or necessary documents such as witness statements or board minutes.

Financial due diligence on the contractor is advis-able wherever there is a wider commercial context under which a call on a bond could be made and where a bond call could have the effect of jeop-ardising a broader commercial interest.

EVIDENTIARY REQUIREMENTS AND CHAL-LENGES TO A CALLIn a similar way, companies should consider and take immediate steps to obtain any evidence they might need in the event that their bond call is challenged. Beneficiaries are often required, when making a call, to specify what breach has been made by the contractor and the grounds upon which they are making a call. If the call is chal-lenged, evidence may be needed to show that the call was not fraudulent. Beneficiaries should give careful consideration when specifying the breach as to what evidence they have available to support their specification.

JURISDICTIONAL ISSUESIf there are multijurisdictional issues and it is antic-ipated that any call will be resisted, then the ben-eficiary under a bond should have a clear strategy in place that can be implemented if a challenge is made. It is also important to take care when se-lecting the governing law and jurisdiction of the bond agreement. Some jurisdictions may be per-ceived to be more difficult than others or more uncertain, perhaps as a result of political bias or

ATTENTION CONTRACTORSLET US TAKE YOUR RISK

Tel: +267 31 88015Plot 115, Unit 6Kgale Mews, Millenium Park

www.beci.co.bw

BECI is the only credit insurer in Botswana, set up in 1996. The primary function of BECI is the granting and development of credit insurance. The company has evolved through time into issuance of other related products, such as Construction Guarantees and related guarantees. BECI has been instru-mental in the development of credit discipline in the country.

BECI is a subsidiary of Botswana Development Corporation

BECI provides guarantees to ensure that your con-tract will be performed according to its terms. In the event that the contract is not performed, BECI will pay damages if the contractor cannot.

BECI surety bonds, or guarantees, include:• Bid/tender bond• Performance bond• Advance payment bond• Retention bond• Letters of intent

BECI also provides insurance cover for:• Contractor’s All Risk, and• Worker’s Compensation

With construction insurance from BECI, you can get on with your contract works without having to worry about the risks that often come with a project.

BUILD WITH CONFIDENCE

LOSS, DAMAGE AND INJURY

For over 15 years, BECI has been helping entrepreneurs in Botswana to minimise credit risks, improve cash flowandfocusonwhatreallymatters:growing their businesses.

>>> CONTINUED PAGE 18


2013 ends just as it started, with little ado in construction Industry. Industry key stakeholders still speak loudly of the lack of opportu-nities for survival. The loud murmurs are most pitched when you speak to local contractors who cannot be satisfied by the rollout of the direct allocation of maintenance projects. Although meant well and could go a long way to provide a base for the industry, the proj-ects are still plagued by delays, uncertainty and obviously limited to just small works.

The real project opportunities lie in ‘Unbugling of the Mega Projects’ which still remain all talk with no action. Mega projects such as BIH, Kazungula Bridge, and the Mmamabula Power plants are all still be-ing pitched to the mega international contractors while local compa-nies remain on the sidelines or at best teamed up in formality JVCs.

The highlight of the year from a Boidus point of view has been the willingness of the industry to come together and talk, share and net-work. Boidus Media initiated two key events this year, including the CBD Executive Seminar (May) and the Botswana Property Breakfast Forum (September) both of which are billed as annual events. The response and support was phenomenal and very encouraging. Just like all other mature markets and industries elsewhere, Botswana’s property and construction industry needs to develop constant dia-logue within itself, with policy makers and consumers in order to stay relevant.

The challenges that remain as the industry prepare to welcome 2014 is the continued government austerity, Industry regulation, limited areas of market growth and the continued failure to penetrate re-gional markets. The future of the growth of the industry lies with its ability to wean itself from government work and explore alternative regional markets as potential areas for growth.

One would think that since there is a construction Pitso by the Min-istry of Infrastructure Science and Technology (MIST) there would be a speedy appearance of change in the industry, but it looks like the ministry is still failing to address issues of concern by the industry.

CommentsPage 17

EDITORH.KillionMokwete

DESIGNBridgetT.MacKean

PROOF READINGNgoziChukura

Boidus Team

by H. Killion Mokwete, RIBA Chartered Architect

Subscribe Now Get your copy delivered to your door:

send your details to:

Find Boidus on

B O I D U S F O C U SBotswana’s Architecture Design & Urban Landscape Newspaper

Year Ends Same as it began EDITOR’S NOTE

SALESRefiloeNokoThaboSarona

DISTRIBUTIONRoySelebalakhai

PHOTOGRAPHYMokgweetsiPhetabosigo

JOURNALISMKeeletsangP.Dipheko

GUEST COLUMNISTSEuanMasseyPhenyoMotlhagodiNgoziChukura

GABORONE

KILLIONT: +267 75505291E: [email protected]

FRANCISTOWN

WADAT: +267 71480679E: [email protected]

Editors Choice - Building of the Year- FNB HEADQUATERS-CBD Corporate Identity meets Staff welfareOur pick of the Building of the Year, is focused on celebrating a newly complet-ed and opened building from the pool of other outstanding buildings that we have featured over the year 2013.

The FNB’s CBD Headquarters opened in the early half of the year is our ‘Edi-tors Choice-Building of the Year’. The First Place as it is called is a synergy in design of both the clients brief require-ments and people focused building finished with a humane touch that is normally devoid of office space.

The key feature which is evident throughout the building is expression of the ancillary facilities. As Ms Chanda Masedu, explained it “Staff welfare was

a major design feature as evidenced by the Pause Areas contained on each floor, complete with furniture arranged in the style of a cafe; vending machines; coffee-makers; television sets with DSTV subscriptions; a staff gym and a staff canteen.” These areas, she says, all have wireless internet access allowing staff to breakout and even work on the balcony overlooking the entire CBD.

The mahogany finished four sto-rey core lavishly gives one a soft and homely welcome to what is otherwise sharp and business spaces associ-ated with banking buildings. The of-fice suites boast an airy open plan with customized personal desks, a truly 21st century working environment.

At fourth level, the private client suites feel more like a home, as do the beauti-fully finished reception and ‘Pause Ar-eas’. At ground floor the welcome area and reception present a colourful wel-come and the staff canteen will eventu-ally break out to the outside at ground floor of the building.

The screen façade of the building is protected with vertical louvers provid-ing an intelligent sun screening from the north sun. All this has been done to ensure a quality working environ-ment for FNB staff and a machine lime efficient building. The building scores excellent on all fronts and sets a new standard for corporate architecture in Botswana.

by Boidus Admin


Expert ContributorsPage 18

Botswana Insurance Company Limited Tel: 3600500 | Fax: 3972867

Website: www.bic.co.bw | Mobisite: m.bic.co.bw

Theprovisionofinsuranceisimportantandindeedintheeventofamajorlossforabusinessentity,itbecomestheonlyviablemeansofrepayingfinanciersorensuringbusinesscontinuity.However,rarelydoesinsurancereceivetheattentionandpriorityitdeserves.

Inorder tounderstandandappreciate thisareaofbusiness, it isnecessarytostartatthebeginning.Theidentificationofriskisobvi-ously thefirst step towards thedevelopmentof riskmanagementandreductionstrategies.

Businessinsurancecanprotectabusinessfromclosingduetocata-strophicloss.Fires,floods,theftandotherformsofnaturaldisastershaveseentheendofmanybusinessesinBotswana.Whenacom-panycarriesinsuranceagainstthesetypesoflosses,itsaformofguaranteethattherewillbusinesscontinuity.

Oneimportantelementthatoftengetsoverlookedishavingapre-ventionordisasterplaninplace.Thesesimple,yeteffectivepreven-tionstrategiescansaveabusinessinthelongrunandreducetheunnecessarydamage.

Wheninbusiness,alwaysensurethatyou:

Maintain an active risk management programCompaniesmustcreateapolicystatementthatconveysit’scommit-mentandencouragesemployeesinvolvement.

Construct adequately Thedesignofthecompanybuildingwilldeterminetheextentoffireexposure.

Have fixed protection where needed Whenitcomestopreventingfiredamageandlossoflife,automaticsprinklersremainthebestmethod

Implement prevention programsCompaniesmustinvestincontinuedtrainingforequipmentusageaswellasintheserviceandmaintenanceoftheequipment.Main-tain regularpreventativemaintenanceprograms forbuildingsandequipmentandhaveregularinspectionofelectricalequipmentforpotentialoverheating.constantlyimproveyourpreventionprograms.

Ensure good housekeepingAvoidthebuildupofcombustiblewasteanddeposits(dust)andre-movehazardsfromtheworkplace.

Ensure that you have special hazards protectionWellprotectedfacilitiesisolateflammableliquid,adequatenaturalormechanicalventilationinconfinedareas.

Have an emergency response serviceThereshouldbeadequateandfunctioningequipmentinstalled,anda plan for response timeswith specific personnel overseeing theplananditseffectiveness.

Conduct trainingThere should be regular training to ensure employees are quali-fied touse themachinery in their dailywork, ongoing training onfirefightingandlosspreventionaswellasananeffectiveHealth&Safetydepartment.

Planningiscriticaltopreparingfortheunexpected,ensurethatyourcompanyconductsanextensiveriskassessmentandenoughcover-age,becausewhentheunfortunatehappens,youwouldn’twantanysurprises.

by Euan Massey, director MDA Abdulla Consulting

Defects in construction projects are not new.

The Latham report published in the UK in the mid nine-ties highlighted defects in construction as a major issue. Although most countries don’t have construction indus-tries large enough to warrant reports of the scale and import of the Latham report, it is clear that defects in construction projects in Southern Africa remain a major concern. The recent collapse of a floor slab, the size of a football field, at a shopping centre under construction in Tongaat, just outside of Durban, South Africa, and the suggestion that the collapse occurred due to defective materials and / or engineering, highlights the impact which defects may have on a project.

How do parties to construction contracts protect them-selves against defects, particularly those found in mate-rials and workmanship?

It is a term of all construction contracts, implied by law, that the contractor is to execute the work, first, in a proper and workmanlike manner and, secondly, that the materials used must be of sound quality and fit for their designated purpose (see Hughes v Fletcher 1957 1 SA 326 (SR)). These provide general rights to protect a party against defects.

The construction or supply contracts should, however, go further and provide specifics as to the requirements for quality of materials and workmanship.

So, for example, the FIDIC 4th Edition Red Book (reprint-ed 1992) provides for the engineer to carry out tests of materials and plant (clause 37.3) and if such tests reveal that the materials or plant are defective or otherwise not in accordance with the contract, then the engineer may reject such materials or plant (clause 37.4). There are tests on completion – that is tests which need to be passed before the works are considered complete – which tests are to be stipulated in the contract. There is also a taking over procedure which requires that the works only be taken over if they are substantially com-plete in accordance with the contract (clause 48.1).

These provisions are typical of those found in construction contracts for protecting the rights of the employer against defective work – but what do they mean practically?

The first point to note is that they all rely on the content of the contract. Here we are talking about the informa-tion specified in the contract (typically the information provided by the employer or his professional team). All too often this portion of the contract is overlooked and

not properly dealt with. Amendments to specifications and the formulation of tests on completion should be project specific and not something borrowed from a previous project. A set of generic descriptions, specifi-cations and tests often fail to pass muster when it comes to protecting yourself against defects.

The next point to note is that they all provide rem-edies which are considered fairly harsh to the uniniti-ated. Asking a contractor, subcontractor or supplier to remove work or materials and reconstruct or resupply same is often considered an onerous remedy which may severely impact such party’s finances and introduce con-siderable delay to the completion of the project.

During the development of one of our client’s apartment blocks they discovered that the columns to their new three storey building were out of tolerance, which im-pacted the aesthetics to some of the upmarket kitchens. Putting aside the remedy against the client’s architect or engineer, the contractual remedy against the contractor, at that stage, was to knock the building down and re-construct – an unsavory remedy for a number of reasons including the time likely to be taken to reconstruct. Our client decided against such remedy and ultimately ne-gotiated a discount with the contractor. The lesson here is that parties may want to include other remedies not found in all construction contracts, for example, pay-ments linked to quality (not always advisable), extended defects liability periods and low performance damages.

The third and final point is that defective work needs to be proactively managed. The above example provides an illustration of one of the effects of poor management and which could ultimately result in a finding of fault on the part of the employer’s professional team (Van Immerzeel & Pohl and others v Samancor 2001 (2) SA 90 (SCA)). It is important that all parties under a construc-tion contract recognise their rights under the contract and police such rights closely. Ignoring such rights and trying to find a “non-contractual” solution could prove disastrous.

MDA Abdulla Consulting are experts in providing legal and commercial advice in respect of construction con-tracts.

>>> FROM PAGE 16

Defective Materials and Work-manship in Construction Proj-ects – How to protect yourself?

CONSTRUCTION FEATURE

Performance and Retention Bonds: Avoiding Pitfalls by Boidus Admin / (Adapted from www.inhouselawyer.co.uk and www.hklegal.co.uk)

because litigation takes more time and so is more costly. Also, the approach of the courts to various procedures as-sociated with litigation may differ and this could have a material impact upon a call. As a result of this, local advice should be sought to determine course of action.

AVOIDING PITFALLS ON CALLS ON RETENTION BONDMost project agreements call for stage payments to be made as the work pro-gresses. Stage payments are triggered by presentation of progress certificates certi-

fied by the project engineer or consultant. These stage payment clauses frequently provide for the employer to retain a cer-tain percentage of each stage payment as cover for any hidden defects in the com-pleted works which may arise at a later date. Typically the percentage retained by the employer ranges between 5 and 10% of the stage payment.

Recovery of retention is a problematic area for all parties in the contractual chain, with non-payment of retention often being the cause of substantial cash flow problems. With insolvency rates currently at a record high, it is now

more important than ever for contrac-tors and sub-contractors to focus on recovering retention.

Firstly, retention is often not released on time and in accordance with the contract. This is a problem for all par-ties in the contractual chain. In a typical construction contract, the level of reten-tion can often be more than the level of profit margin; therefore, until reten-tion is paid, it essentially means that the party having their retention withheld may be in loss.

Secondly, in the case of sub-contracts,

the release of retention is often depen-dent on circumstances outside of the sub-contractor’s control, such as the remedying of defects under the main contract by other parties.

RECOVERY OF RETENTIONUnfortunately, it is becoming more and more unusual for paying parties to re-lease due retention when they are re-quired to; therefore, a strategy needs to be formulated in relation to recovering retention. The contractual position re-garding recovery of retention will vary; however, in all cases it is vital that par-ties who are owed retention ensure that

they are organised and have maintained their records properly. To promote good record keeping and increase chances of obtaining retention payment, it is ben-eficial to produce an appropriate spread sheet for each contract which specifies notable information relating to the con-tract. For example, the project name, start date and practical completion. Against applicable milestones, it should be highlighted when and how much re-tention is due to be released.

Parties owed retention monies should be persistent in chasing payment, re-sorting to formal applications for pay-ment (with interest) if necessary. If the above steps do not help, it might then be necessary to take formal legal steps to recover retention.


AdvertisingPage 19

INTRODUCING THE FIRST CO-WORKING OFFICE SPACE

IN BOTSWANA

Are you a freelancer, small business or startup?

Interested freelancers are invited to our o�ce to make enquiries and submit membership applications.

Location- Unit 5, Matante Mews CBDDate: 4th Dec 2013Time: 10a.m- 5p.m

Pre-opening session

LIMITED SPACE AVAILABLECONTACT [email protected]

Opening January 2014Membership feeP2800/person/month

Free internet Free co�eeMonthly business discussionsBoard rooms and Storage lockers

icowork

Experts say it is the o�ce of the future…We say it is already here!Come and join us. Just bring your computer, the rest is on us.


AdvertisingPage 20

Documents

Boidus Focus - Vol 3, Issue 8 [Dec 2013]