1. 1 DEPARTMENT OF PUBLIC WORKS Presentation to Portfolio Committee Disposal Strategy Facilities Management Contract 14 June 2005

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

3. 3 DISPOSAL PROCESS 1.Identify possible superfluous properties from asset register 2.Obtain approval from user-department for disposal 3.Obtain approval from relevant Provincial State Land Disposal Committee (NDPW, DLA, province) 4.Obtain Ministerial approval 5.Dispose through open tender 6.Tender committee makes recommendation to Minister

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

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

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