Business Plan - new flea market and station

Submission by PD Naidoo & Associates Consulting Engineers (Pty) Ltd P a g e | i

BA-PHALABORWA LOCAL MUNICIPALITY

NEIGHBOURHOOD DEVELOPMENT

PARTNERSHIP GRANT

PROJECT BUSINESS PLAN

NEW FLEA MARKET AND REST STATION

Ba-Phalaborwa Local Municipality The Municipal Manager Private Bag X01020 Phalaborwa 1390 Compiled for: Name: Dr. SS Sebashe Telephone: 015 780 6808 Fax No. 017 781 0726

PD Naidoo & Associates (Pty) Ltd P.O. Box 1287 32 Bell Street Nelspruit 1200 Compiled by: Name: Mr Anton Kruger Telephone: 013 752 5013 Fax No. 013 752 5014

http://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22

Submission by PD Naidoo & Associates Consulting Engineers (Pty) Ltd P a g e | ii

TABLE OF CONTENTS

1. Introduction 1

2. Background 1 2.1 General 1

2.1.1 The South African Craft Industry 1 2.1.2 Ba Phalaborwa Urban Renewal Framework and the Craft Industry 3

2.2 Flea market and rest station 3

3. Project vision and objectives 5 3.1 Project vision 5 3.2 Project objectives 5

4. Brief project description (Phase 1) 6

5. Status Quo 6 5.1 General 6 5.2 Demographics 6 5.3 Socio Economics 7

5.3.1 General 7 5.3.2 Gender distribution 7 5.3.3 Age distribution 7 5.3.4 Household income 8 5.3.5 Formal Employment and Unemployment 9 5.3.6 Sub sector economic growth, 1996 - 2008 9 5.3.7 Key issues highlighted in BPLM tourism strategy 11

5.4 Informal traders 13

6. Demand 13

7. Detailed project description 14 7.1 Location and site description 14 7.2 Success factors 14

7.2.1 Important Market and Success Elements 14 7.2.2 Generic Success Factors 15

7.3 Project scope 15 7.4 Design criteria 16

7.4.1 Water Design Criteria 16 7.4.2 Sewers 17 7.4.3 Internal Roads and Parking Areas 17 7.4.4 Storm Water Drainage 17

7.5 Phasing of development and future additions pending outcome of urban renewal 18 7.6 Institutional arrangements 18 7.7 Design team and procurement 19 7.8 Availability of services 19

8. Development impact 20

9. Implementation plan 21

10. Project costs 23


Submission by PD Naidoo & Associates Consulting Engineers (Pty) Ltd P a g e | iii

ANNEXURE A- Locality Plan ANNEXURE B -Plans ANNEXURE C- Photos


Submission by PD Naidoo & Associates Consulting Engineers (Pty) Ltd P a g e | 1

1. Introduction

PDNA Engineers were appointed by the Ba-Phalaborwa Local Municipality (BPLM) to support the LM to:

a). Compile an urban renewal strategy b). Compile business plans for 6 projects identified by the Ba-Phalaborwa sustainable

development strategy (flea market and rest station, MPCC, cultural village, flea market, 2x taxi ranks). The projects have already been constructed.

The programme is part of National Treasury’s Neighbourhood Development Partnership Grant (NDPG) to eradicate poverty through the upliftment of previously disadvantaged areas. The main aim is to stimulate investment through urban upliftment (renewal). It is planned that the PDNA urban renewal strategy (URS) will be competed in April 2012. Ideally it is required that the strategy and business case precede the development of he project business plans in order for the strategy to support the projects as a business case. It is however anticipated that information from the URS will be used to augment the project plans. The project forms part of the initial package of projects that was identified as “quick win” projects that can stimulate other development, and will have an impact on the ultimate goals of the programme. The purpose of this project plan is to provide sufficient information to National Treasury on the flea market and rest station to release funds to BPLM for the implementation of the project.

2. Background

2.1 General

2.1.1 The South African Craft Industry

It is estimated that there are at least 1.2 million people active in the trades and related sectors in South African, a figure that encompasses the craft industry. The value of the sector is estimated at approximately R1.8 billion. The global turnover of the craft industry is estimated at over US$35 billion per annum. In the United States alone the craft industry generated $10.85 billion in 1995. Over a thousand formal craft retail outlets exist in South Africa which sell curios, arts and crafts. Numerous craft markets and several festivals also exist and the informal selling of craft is becoming a familiar feature of our landscape, with craft being sold by the side of roads and busy public spaces. Structure of the industry The craft industry includes a broad range of utilitarian and decorative items, media, materials and functions ranging from glass, textiles, ceramics and jewellery to curios, industrial appliances and everyday utility objects. It is possible to discern five broad categories within the craft industry:



• Traditional Art constitutes culturally specific products, whose meaning and significance is generated and shared by members of a specific community. Such goods are often produced for the domestic market, for example clay beer pots in KwaZulu-Natal.

• Designer Goods result out of the deliberate adaptation of Traditional Art to satisfy the tastes of the high-income market and are often decorative in nature. For example, Ndebele patterned beaded headbands or Swazi Christmas ornaments.

• Craftart overlaps significantly with Traditional Art and has been defined as products that are produced entirely by hand, by skilled producers but which are not considered ‘fine art’.

• Functional wares are mass-produced handmade goods that are produced in small batch production processes, either in small workshops or factories. Examples include pottery, furniture and utility objects such as crockery and cutlery.

• Souvenirs are “inexpensive, universal trinkets or simplified crafts” which often sell the memories of a particular location.

Characteristics of the market South African craft is not a large player in the global craft industry and unfortunately has a poor reputation in the formal international business sector due to the lack of quality and unreliable supply. The greatest success in the penetration of international markets has been with Alternative Trade Organisations such as ProTrade in Germany. Local exporting success has been experienced by those agencies focusing solely on crafts and which deal with a limited selection of crafters, influencing their product lines and operating with much smaller volumes than the more commercial export agencies. Low barriers to entry into the industry have allowed women entrepreneurs to become involved, often adapting traditional skills such as sewing and beading to generate a source of income. Craft production is often home-based meaning that women can integrate it with household or agricultural work. Craft production is recognised as playing a key role in product and process innovation. Products initially produced in the craft industry are often later manufactured on a larger scale. The process of innovation mirrors the nature of craft production through an adaptive approach towards materials and a close relationship between designer and production, customer and manufacturer. The craft sector is closely linked with a number of other industries such as the tourist industry and the formal manufacturing and retail sectors. This happens through joint supply and distribution chains, product development and marketing strategies. The future of the industry Obstacles to development At present the craft industry in South Africa is undeveloped and uncoordinated. Key obstacles to successful development are linked to: • a lack of access to credit facilities and micro-finance services; • inadequate access to appropriate communication, transport and utilities infrastructure; • problems related to production processes, volumes and deadlines, product quality and product

development; • irregular and inappropriate marketing strategies; and • difficulty in obtaining materials for production. Opportunities in the craft sector Several countries such as Mexico and Morocco are actively promoting the development of their craft sectors. Strategies are mostly focused on sustained support in the form of financial assistance to craft enterprises, quota systems, and the stipulation that public sector contracts contain an element of craft production where appropriate. In addition, the promotion of fair trade is



assuming increasing importance in the marketing of goods imported from developing countries around the world. In many cases Alternative Trade Organisations play an important role in the international craft sector. The turnover of Fair Trade in Europe in 1994 amounted to 200 million ECU. The three largest markets for South African crafts are Europe, the UK and the United States of America. Germany is a particularly faithful market for South African products. A recent study of the market in the USA maintains that a window of opportunity has emerged for African manufacturers to supply major US retailers. African Americans are the single largest ethnic group, representing almost 30 million consumers.

2.1.2 Ba Phalaborwa Urban Renewal Framework and the Craft Industry

The Urban Renewal framework has the aim of integrating the strategies, goals, objectives, land use policies and guidelines of National Government, Government and Ba-Phalaborwa Local Municipality into an urban and rural development framework. This framework will provide a business case and development concepts with projects that can be funded by the neighborhood Development Partnership Grant. This will then act as catalyst for public as well as private investment as well as the formation of Public Private Partnerships in historically disadvantaged areas. The framework involves the integration of town planning, economic analysis, transportation and road planning, urban planning and water services engineering to ensure the future sustainability of investments. The framework further has the aim to ensure the enhancement of quality of life. The future development and growth of the area will require positive public as well as private interventions in order to create sustainable investment and business confidence within the area. These interventions require:

• proper planning and direction • funding capital • infrastructure • natural resources on a local and regional level.

This Business Plan for the flea market and rest station quick win project is part of the abovementioned interventions which will eventually feed into the further detailed planning and implementation phases of the urban renewal plans.

2.2 Flea market and rest station

The vision of the Ba-Phalaborwa Local Municipality is: “Growing the economy and creating employment through wildlife tourism”. It has coined a slogan for this purpose, with is: “Ba-Phalaborwa – the Jewel of wildlife tourism”. The mayor announced that the municipality has adopted a new vision to “Grow the economy and create employment through wildlife tourism”. This vision and this proposed branding calls for a robust tourism development strategy that will include product development, service improvement and development facilitation. Of the key issues with regards to the local economy that are identified in the IDP are:



1. Increased number of people without an income is entrenching poverty; 2. The need for establishing the contribution of the informal economy to municipal

development and overall individual and household ways of life; 3. Noting the economic potential of he tourism industry in the area, steps need to be taken to

develop/review, adopt and implement a Tourism Strategy for the Ba-Phalaborwa Municipality;

Strategic development interventions are proposed in the IDP on the basis of local needs and development sustainability in order to absorb the anticipated job losses and to promote new job creation. Key focus areas identified are as follows:

• Informal trading support and other interventions to promote entrepreneurship • General leisure experience • An interesting transit stop • Provision of infrastructure in support of tourism, and

In view of the abovementioned it is recommended that a flea market and rest station be developed on the R71 to:

a). Act as a tourism “hot spot” must visit attraction. This is in line with the BPLM strategy to market tourism aggressively.

b). Provide jobs and relief poverty

It is anticipated that existing previously disadvantaged artists and craftsmen/women will be drawn into the project.



3. Project vision and objectives

3.1 Project vision

The project vision is to create a sustainable flea market and rest station that will form part of the tourism “hot spots” in Phalaborwa. The flea market will attract tourism, generate revenue and create jobs. The flea market will act as a showcase for local art of the community in the BPLM area. The facility will also serve other associated needs (resting station, etc). The project will form a very important building block (sense of being) in the overarching urban renewal strategy.

3.2 Project objectives

The main objectives of the project are to:

• Construct a flea market and rest station to act as a “hot spot” to tourists and people in the

BPLM area (must see places). To provide an environment that will draw large numbers of

visitors. The flea market will be constructed in phases as follows:

o Phase 1 – Rest station, exhibition halls, stalls, ablution facilities

o Phase 2 – Additional shops and curio stalls

• Attract tourists through exhibitions of local artists

• Create a sense of pride and being

• The project is expected to enhance the possibility of declaring Ba-Phalaborwa as an Eco-

Town in the future.

• Support to local artists with

o Infrastructure

o Exhibition facilities

• Formalising of flea market – create safe environment for tourists

• Target the disadvantaged and unemployed in the provision of employment opportunities

• Create jobs for unemployed men, women and the disabled

• Target those with skills in the production of traditional arts and crafts

• Involve the development and promotion of heritage, art and culture that has until now, been

neglected and marginalised

• Stimulate a full diversity of heritage, arts and culture so as to bring out universal access

• Provide backward linkages with the formal sector



4. Brief project description (Phase 1)

Construct a flea market and rest station building consisting of:

• Rest station (restaurant) • Exhibition halls • Stalls (manufacturing areas) • Ablution facilities • Parking area

5. Status Quo

5.1 General

There is currently not a similar flea market and resting station in the BPLM area. Local art and curios are mostly sold by shops in BPLM and by informal traders.

5.2 Demographics

The demographic information from a house count conducted for this study can be seen below.

Area Township House Count Total

Persons per stand Total

A2 Ben Farm 2477 4 9908 A1 Humulani 2464 4 9856 A1 Kharula 1373 4 5492 A1 Lulekani A & B 1382 4 5528 A1 Matiko Xikaya 3289 4 13156

B1 Ga-Makhushane 1833 4 7332

B1 Namakgale 10294 4 41176 B2 Mashimale R1 636 4 2544 B2 Mashimale R2 1024 4 4096 B2 Mashimale R3 1792 4 7168 B3 Maseko 752 4 3008 C Mahale 526 4 2104 C Gaselwane 1674 4 6696 C Nondweni 228 4 912 D Gravelotte 990 E Phalaborwa 25887 F Prieska 162 4 648

Total 27316 4 146501



5.3 Socio Economics

5.3.1 General

Socio Economic information is important as it assist the planning and design processes. The information below will be used by the planners to ensure that the infrastructure developed is in line with the socio economic landscape of BPLM.

5.3.2 Gender distribution

The table below indicated the distribution of gender within the Planning areas.

Planning Area

Place Male Female Total % Males

% Females

0 NP334: Ba Phalaborwa 64124 66968 131092 48.9 51.1 A1 Humulani 14620 16606 31226 46.8 53.2 A2 Ben Farm 4720 4934 9654 48.9 51.1 B1 Ga-Makhushane 5260 5739 10999 47.8 52.2 B2 Namakgale 16518 16825 33343 49.5 50.5 B2 Ga-Mashishimale 5234 5678 10912 48.0 52.0 B2 Mashishimale 539 587 1126 47.9 52.1 B2 Ga-Mashishimale 192 219 411 46.7 53.3 B3 Ba Phalaborwa Ba Nakome 1262 1319 2581 48.9 51.1 C Mahale 705 840 1545 45.6 54.4 C Masala 182 207 389 46.8 53.2 C Nondweni 287 365 652 44.0 56.0 C Ga-Selwana 2098 2471 4569 45.9 54.1 D Gravelotte SP 220 98 318 69.2 30.8 D Gravelotte Township SP 250 168 418 59.8 40.2 E Phalaborwa Part 1 SP 6590 6348 12938 50.9 49.1 G Letaba NU 2762 2906 5668 48.7 51.3 G Lulekani NU 436 255 691 63.1 36.9 G Namakgale NU 188 166 354 53.1 46.9 G Phalaborwa NU 1059 691 1750 60.5 39.5 G Die Eiland SP 23 19 42 54.8 45.2 G Letaba Ranch SP 19 11 30 63.3 36.7 G Majeje SP 0 0 0 0.0 0.0 G Ruskamp 27 29 56 48.2 51.8 G Murchison SP 931 488 1419 65.6 34.4

Source: Census 2001

5.3.3 Age distribution

The age distribution in 2001 within the various Study Areas is indicated in the table below.

Planning Area PLACE NAME 0-19 20-59 60+ Total

NP334: Ba Phalaborwa 45.0 50.6 4.4 100.0 A1 Humulani 52.1 43.8 4.1 100.0 A2 Ben Farm 48.6 47.4 4.0 100.0 B1 Ga-Makhushane 45.5 49.9 4.6 100.0 B2 Ga-Mashishimale 49.6 44.7 5.8 100.0 B2 Mashishimale 51.6 43.0 5.4 100.0 B2 Namakgale 42.4 54.4 3.1 100.0 B2 Ga-Mashishimale 46.8 48.0 5.3 100.0 B3 Ba Phalaborwa Ba Nakome 49.6 45.1 5.3 100.0



Planning Area PLACE NAME 0-19 20-59 60+ Total C Ga-Selwana 54.8 38.5 6.7 100.0 C Mahale 58.7 35.9 5.4 100.0 C Masala 63.8 30.3 5.9 100.0 C Nondweni 60.2 35.2 4.6 100.0 D Gravelotte SP 17.3 77.7 5.0 100.0 D Gravelotte Township SP 26.6 71.7 1.7 100.0 E Phalaborwa Part 1 SP 33.7 60.0 6.3 100.0 G Die Eiland SP 9.1 90.9 0.0 100.0 G Letaba NU 35.4 61.1 3.5 100.0 g Letaba Ranch SP 7.9 81.6 10.5 100.0 G Letaba Ranch SP 18.8 59.4 21.9 100.0 G Lulekani NU 13.3 76.7 10.0 100.0 G Murchison SP 24.8 72.1 3.0 100.0 G Namakgale NU 11.6 82.3 6.1 100.0 G Phalaborwa NU 22.5 73.2 4.3 100.0 G Ruskamp 18.5 81.5 0.0 100.0

Source: Census 2001 From the above table it is evident that:

• Youths in the age group 0-20 years within the municipal represent 45% of the population. The western areas experience however higher contributions. The relatively large youth group present in the area provides huge pressure on the Ba Phalaborwa area in the supplying of schools and the number of local young people who have completed their schooling and are looking for jobs.

• The economic active age groups (20-60 years) represent 50.6 % of the population of Ba Phalaborwa. The size of this group provides pressure on the local economy to provide jobs

• The percentage of elderly people (4.4 % for Ba Phalaborwa) does not indicate a tendency for elderly people to settle in the area after retirement.

5.3.4 Household income

The distribution of income in 2001 within the various Study Areas is indicated in the table below.

PLANNING AREA PLACE NAME

No

inco

me

R1

- R4

800

R4

801

- R 9

600

R9

601

- R 1

9 20

0

R19

201

- R

38

400

R38

401

- R

76

800

R76

801

- R

153

600

R15

3 60

1 - R

307

200

R30

7 20

1 - R

614

400

R61

4 40

1 - R

1 22

8 80

0

R1

228

801

- R2

457

600

R2

457

601

and

mor

e

Not

app

licab

le

(inst

itutio

ns)

Tota

l

A1 Humulani 35.9 9.2 14.0 14.8 13.9 7.5 3.1 0.8 0.4 0.1 0.2 0.0 100.0 A1 Ruskamp 12.5 12.5 62.5 12.5 12.5 100.0 A2 Ben Farm 31.7 9.6 16.2 18.2 16.1 6.0 1.4 0.1 0.1 0.1 0.5 100.0 B1 Ga-Makhushane 26.9 8.3 19.2 23.1 16.1 5.4 0.7 0.2 100.0 B1 Namakgale 22.4 6.1 10.4 15.3 21.9 15.9 6.0 1.3 0.2 0.1 0.2 0.1 0.1 100.0 B2 Ga-Mashishimale 24.0 11.1 21.4 21.2 16.2 3.4 2.1 0.4 0.2 100.0 B2 Mashishimale 20.4 7.1 23.2 22.3 21.3 5.7 100.0 B2 Ba Shai-Ditlou 60.7 8.4 11.2 7.5 5.6 2.8 2.8 100.0 B3 Ba Phalaborwa Ba

Nakome 24.8 10.8 25.9 22.4 11.9 2.9 0.6 100.0



PLANNING AREA PLACE NAME

No

inco

me

R1

- R4

800

R4

801

- R 9

600

R9

601

- R 1

9 20

0

R19

201

- R

38

400

R38

401

- R

76

800

R76

801

- R

153

600

R15

3 60

1 - R

307

200

R30

7 20

1 - R

614

400

R61

4 40

1 - R

1 22

8 80

0

R1

228

801

- R2

457

600

R2

457

601

and

mor

e

Not

app

licab

le

(inst

itutio

ns)

Tota

l

C Mahale 45.6 18.6 18.6 11.3 4.5 0.8 0.8 100.0 C Nondweni 49.4 12.3 17.5 14.3 4.5 1.9 100.0 C Ga-Selwana 45.8 14.4 22.0 10.5 4.7 1.8 0.6 100.0 D Gravelotte SP 4.2 11.9 35.1 15.5 7.7 13.1 8.9 4.2 100.0 D Gravelotte

Township SP 6.1 4.1 8.2 29.0 49.8 2.4 100.0

E Phalaborwa Part 1 SP

4.3 1.0 3.4 4.3 7.3 18.9 28.9 22.8 6.3 1.5 0.7 0.2 0.4 100.0

F Masala 41.9 20.9 19.8 8.1 3.5 3.5 100.0 G Letaba NU 3.2 51.1 31.6 10.1 2.7 0.5 0.7 0.1 100.0 G Lulekani NU 2.1 22.1 27.5 16.1 16.4 7.0 5.2 2.3 1.0 100.0 G Namakgale NU 26.9 37.3 18.9 5.5 4.5 1.5 3.0 1.5 100.0 G Phalaborwa NU 5.9 21.7 34.1 20.7 12.1 1.7 1.8 0.8 0.5 0.3 100.0 G Die Eiland SP 11.1 29.6 40.7 14.8 100.0 G Letaba Ranch SP 25.9 70.4 100.0 G Murchison SP 1.9 4.0 2.9 39.8 32.0 12.5 4.6 1.9 0.4 0.4 100.0 NP334: Ba-Phalaborwa 22.9 11.0 15.3 15.8 15.4 9.4 5.8 3.0 0.8 0.2 0.2 0.1 0.1 100.0

Source: Census 2001 According to the above statistics it is clear that 23% of households in Phalaborwa have no income. The western areas represented by Planning areas A1, A2, B1, B2, B3, C and F shows very low income levels with high percentages of no income.

5.3.5 Formal Employment and Unemployment

Formal employment versus unemployment: Ba-Phalaborwa Municipality

Race Employed Unemployed Not economically active

Unspecified Institutions Unemployment Rate

Black 27033 14485 32378 977 1654 34.9

Coloured 130 56 130 0 11 30.1

White 3409 263 1289 136 97 7.2

Total 30572 14804 33797 1113 1762 32.6

5.3.6 Sub sector economic growth, 1996 - 2008





5.3.7 Key issues highlighted in BPLM tourism strategy

• The Ba-Phalaborwa area attracts mainly domestic leisure and VFR travellers. Leisure and VFR travellers comprise 80% of the overnight visitors to the study area, whilst business travellers make up the remaining 20%.

• Opening of the road to the GLTP and the positioning of Phalaborwa Gate as the premier KNP entrance will stimulate higher growth in the domestic leisure market segment.

• The positioning and marketing of the Ba-Phalaborwa area as a resort in the wild with lots of things for visitors to do will stimulate further growth in the domestic leisure market segment.

• Establishing Ba-Phalaborwa area as a resort in the wild (ie a destination in its own right rather than just a transit stop to the Kruger)

• The level of business tourism in a specific area is to a large extent determined by the level of economic activity in that area

• The domestic leisure market has a high potential for growth • The domestic transit market segment has good potential for growth.



Source: Grant Thornton



5.4 Informal traders

In order to gain a perspective on informal trading (not necessarily crafts) the information from the LEDS on informal traders are as follows: TRADING PLACE NUMBER OF TRADERS TRADERS INTERVIEWED Checkers Car Park 27 26 Phalaborwa Taxi Rank 60 60 Namakgale 143 12 Majeje/Lulekani 68 5 Mashishimale 37 24 Makhushane 28 - Maseke 20 13 Seloane 24 8 Gravelotte 7 5 Buyelani 3 3 TOTAL 417 156

All the traders have indicated that the municipality does not provide them with any development support.

6. Demand

As indicated above there is a huge need in the BPLM with regards to:

1. Job creation. Existing previously disadvantaged artists and craftsmen/women will be drawn into the project

2. Develop Tourism in the Ba-Phalaborwa Municipality. A tourist “hot spot “ . 3. An "Arts and crafts area", where artists and craftsmen from all over the towns and rural

areas of the BPLM area can manufacture, exhibit and sell their wares in an "African Market" atmosphere. These people would not have otherwise been accessible for the tourists

4. Coffee and restaurant that will serve visitors with shop that will sell refreshments.



7. Detailed project description

7.1 Location and site description

The proposed location for the flea market and rest station can be seen in Annexure A. The site can be reached via the R71 and is south of the R71 travelling from Phalaborwa to Namakgale, 700m before the turn off to Namakgale. The site area is approximately 1.5 ha in size. The selection of the site was based on the following criteria:

• Popular tourism routes • Site availability • Availability of services • EIA requirements • Location • Accessibility • Visibility • Proximity to other associated infrastructure • Current zoning • Compatible neighbours • Future expansion potential

7.2 Success factors

7.2.1 Important Market and Success Elements

There are a number of critical aspects that plays a vital role in the success of a Flea Market, these

are:

ü Location

ü Accessibility

ü Mobility and transportation networks

ü Pedestrian movement networks

ü Security

ü Tourism routes

ü Infrastructure

ü Marketing

The abovementioned elements are critical success factors and the lack of even one such element

could potentially affect the success of the flea market.



7.2.2 Generic Success Factors

The through traffic is critical to the success of a flea market. If no one is aware of the flea market

the market will not succeed. There are other success factors that need to be done in order to

maximise the viability of the flea market:

ü Linked to a tourism route – The flea market must be integrated into a tourism route and

be a stop-off point on such a tour. The flea market could be linked with the existing cultural

village as well as the heritage centre to form a tourism route. This will increase the number

of visitors as well as provide exposure to other destinations along the route.

ü Marketing – Marketing is critical as people, the community and tourists must be made

aware of the flea market. The more people are aware of the flea market the greater the

through traffic becomes at the market. Integrated marketing with existing cultural villages

and heritage centres will have further economic benefits.

ü Quality Control – Quality control measures must be implemented to ensure that the goods

and products sold at the flea market is of good quality.

ü Knowledgeable guide/manager – a knowledgeable guide or manager of the market

needs to be informed of all the processes and be able to take visitors and tourist through

the facility and illustrate the design and production processes of the products.

The designers and crafters should pay a levy and/or rent; this could be a minimal fee to ensure

that the facility is maintained in a proper working order and ensure a good business climate for

workers as well as visitors to the flea market.

7.3 Project scope

A plan of the proposed project can be seen in Annexure B. The project consists of the following:

Phase 1 No. Item 1 Rest station (restaurant) 2 Exhibition halls 3 Stalls 4 Ablution facilities 5 Parking area

It is anticipated that the following SMME's will be accommodated:



− Pottery − Traditional materials and clothing − Weaving of mats and baskets − African beadwork − African wood craft (wood carving) − Wool weaving and spinning − African sculptures (soap stone)

7.4 Design criteria

7.4.1 Water Design Criteria

The design standards of the PBLM as well as any other governing authority will be followed in conjunction with the “Guidelines for Human Settlement Planning and Design” as applicable. The design criteria to be used in the final design of the water services is summarized below:

Table 3 - Water Supply - Design Standards

Summer Peak Factor (SPF) 1,5

Daily Peak Factor 2,5

Design Peak Flow Rate (DPFR) for domestic flows GAADD x SPF x DPF

Maximum velocity 1,2 m/s

Minimum residual head under peak flow conditions 25 m

Maximum static head 90 m

Maximum linear flow velocity under conditions of

domestic peak flows

1,5m/s

Pipe type uPVC pressure pipes to

SABS 966 part 1

Fire flow at any one hydrant under the condition of

domestic peak flows

15 ℓ/s

Fire flow SABS 090 Low Risk Group

1

Minimum pipe diameter 75mm Ø

Minimum pipe class Class 9

Duration of fire flow 2 hrs

Minimum residual head (fire plus domestic peak flow) 7m

Maximum linear velocity under conditions of fire

fighting

2,0m/s

Minimum depth of cover 1.0m



7.4.2 Sewers

The design standards of the BPLM, as well as any other governing authority will be followed in conjunction with the “Guidelines for Human Settlement Planning and Design”. The sewer reticulation system will be designed using commercial type uPVC piping according to S.A.B.S. 1601. Conventional sewer manholes of pre-cast concrete ring construction will be provided with frames and covers.

Average Annual Daily Flow (AADF) 80% of water supplied

Peak Factor (PF) 3.5

Minimum pipe diameter 110 mm

Minimum flow velocity 0.7m/s (full flow)

Peak design flow Full bore capacity of pipe

Allowance for extraneous flows 15%

Spacing of the manholes 80m maximum distance and at all changes in

gradient or direction

Septic tank Guidelines for Human Settlement Planning and

Design

7.4.3 Internal Roads and Parking Areas

All internal roads infrastructure will be designed in accordance with the following standards:

• Guidelines for Human Settlement Planning and Design (Red Book)

• Guidelines for the Provision of Engineering Services (Blue Book)

7.4.4 Storm Water Drainage

All storm water infrastructure will be designed in accordance with the following standards:

• Guidelines for Human Settlement Planning and Design (Red Book)

• Guidelines for the Provision of Engineering Services (Blue Book)

Minimum pipe size 450mm Ø

Minimum pipe gradient 1/150 = (0,67%)

Outlet structures Designed to limit soil erosion

The storm water will be channeled from parking areas with adequate slopes to outlet structures and to the natural water course.



7.5 Phasing of development and future additions pending outcome of urban renewal

• Phase 1 – Rest station, exhibition halls, stalls, ablution facilities • Phase 2 – Additional shops and curio stalls

7.6 Institutional arrangements

7.6.1 Funding and implementation • National Treasury – funding agent • BPLM – implementing agent

7.6.2 Operation and maintenance

Two options for the O+M of the facility exist:

1. BPLM will be responsible to operate and maintain the facility with service level agreements with crafters

2. The flea market and resting station creates the opportunity for a public private partnership. BPLM can conclude a contract with a private operator who in this case can be a local cooperative of local craft manufacturers.

The estimated number of staff to operate and maintain the facility (not restaurant) is as follows: Project start up (phase 1) Position No. Allocation Function Secretary 1 Not full time Stall allocations and

arrangements with craft makers

Cleaners 2 Full time Cleaning Security 1 Full time Security General Artisan 1 As and required General maintenance work

It is anticipated that additional temporary staff will be employed during busy periods (holiday periods). Exact numbers of temporary cannot be given at this stage. Estimated Maintenance cost

Province LM Entity Comments Condition

Facility - Extent of

improvements (sqm)

Construction cost

Planned maintenance

per year

Un Planned maintenance

per year

Limpopo Ba

Phalaborwa Gaselwane

MPCC Building

new 5 892 R 10 020 000.00 R 125 250.00 R 450 900.00

Limpopo Ba

Phalaborwa

Flea market and rest station

Building new 5 403

R 7 140 000.00 R 89 250.00 R 321 300.00



7.7 Design team and procurement

7.7.1 Design team

Discipline Professional support required

Procurement method

Architectural drawings and details

Architects Open tender

Structural and civil engineering

Civil engineer Open tender

Electrical design Electrical engineer Open tender Compile SoQ for tendering Quantity surveyor Open tender Mechanical (if required) Mechanical Open tender

7.7.2 Construction

An open tender process will be followed for appointment of the contractor, as the project cost will be above R500 000. The CIDB guidelines and regulations will be followed as far as practically possible.

7.8 Availability of services

7.8.1 Water

The proposed flea market is close to the settlement of Namakgale. The settlement of Namakgale is serviced mainly with house connections. Water is available close to the identified site. The water supply can be regarded as reputable with minimum breakages in supply. Institutional arrangement Municipality Water services authority Mopani District Municipality Water services provider (bulk) Water Board Water services provider (retail) Ba-Phalaborwa LM

The planned facility will be connected to the existing water reticulation system with a metered connection. No on site water storage will be required.

Building Area (m²) Annual average daily demand (ℓ/day) AADD

Offices and shops 600 400ℓ/d/100m² 2400ℓ/d

Total 2 400 ℓ/d

The estimated water requirements of he planned facility is minimal and will not impact on the current demand requirements of the settlement. 7.8.2 Sewer

The settlement of Namakgale is serviced mainly with full borne sanitation, with sewer reticulation lines and main outfall lines gravitating to the STW. The sewerage generation of the proposed



facility is regarded as minimal and will not impact on the STW capacity. The facility will be connected to the existing sewerage reticulation network. The daily sewage outflow is estimated as 80% of the AADD. 7.8.3 Roads

Access to the site is via the R71. Approvals for access to the property according to the Governing authority’s norms and standards will be required. The initial trip generation is expected to be low. The access to the property will be upgraded with adequate slip lanes and turning lanes. The facility will make provision for parking on site. Additional parking will be made available as the need arises. 7.8.4 Waste disposal

Waste disposal will be done by BPLM as part of the waste disposal service for Namakgale which is once per week. The waste will be disposed at the BPLM waste disposal facility. The initial waste stream from the development is not expected to be large. Once the waste stream increase a separate holding facility for waste will be constructed on site. 7.8.5 Electricity supply

The settlement of Namakgale is fully electrified and electricity is supplied by the BPLM. The expected demand of the facility is low and will not impact on the overall demand of the settlement. Adequate procedures for connection to the existing electrical reticulation will be followed.

8. Development impact

The following development impacts are envisaged:

1. Create sense of being, pride

2. Support local craft trade workers with infrastructure and exhibition opportunities.

3. Job creation

4. Important landmark for tourists

5. Showcasing of local area trades and skills

6. Safe environment for tourists

7. Economic leverage for other activities

8. Development and promotion of heritage, art and culture



9. Implementation plan



Item

Programme

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 1

0

Mon

th 1

1

Mon

th 1

2

Mon

th 1

3

Mon

th 1

4

Mon

th 1

5

Mon

th 1

6

Mon

th 1

7

Mon

th 1

8

Mon

th 1

9

Mon

th 2

0

Identify potential stakeholders and local crafters that will make use of facilities

Conduct stakeholder workshops with regard to demand, facilities to be included, location, linkages with other programmes

Combine inputs from stakeholders and compile proposed to council

BPLM Approve proposal

Appoint professional team

EIA

Architect Plans, structural design

Approval by BPLM

Tender process Tender evaluation and recommendation Approved by LM Appointment Construction Overall project management



10. Project costs

The estimated project costs can be seen below. Item Estimated cost Project costs R 7 140 000 Professional fees @ 17.56% R 1 253 784 Total R 8 393 784 Estimate qualifications are as follows:

1. The elemental system of construction was used as base to do the estimates. 2. Estimates are based on the attached preliminary drawings for each project 3. The estimates are indicative of current replacement costs and should only be used to

determine budgets for the development of each project. 4. No allowances were made for land cost and land formalization procedures. 5. Allowance for professional fees is as per the current norms and standards. 6. It was assumed that “normal” founding conditions are applicable for all buildings. 7. No allowance was made for special foundations and blasting of rock, etc. 8. All external works (pathways, road works, fencing, etc.) were measured as per the layout

drawings.



1 2 2 2 1 PRIMARY ELEMENTS 3 520 634.49 4 302 10 505 4 550 5 376

666 352 560 874 535 891 1 757 517 Foundations 283 797.36 450 m 630.00 86 38 35 109 4.68%Ground Floor Construction 169 772.36 653 m² 260.00 155 27 59 163 2.80%External Envelope (incl. doors, windows, finishes, etc) 1 829 598.34 1 271 m² 1 440.00 268 68 105 328 30.16%Roofs 457 079.44 653 m² 700.00 155 27 59 163 7.53%Internal Divisions 86 936.40 212 m² 410.00 46 60 1.43%Floor finishes 97 945.59 653 m² 150.00 155 27 59 163 1.61%Internal wall finishes (incl. doors, etc) 180 234.00 212 m² 850.00 46 60 2.97%Ceilings & Soffits 69 731.29 498 m² 140.00 27 59 163 1.15%Fittings - - m² 50.00 0.00%Electrical Installation 228 539.72 653 m² 350.00 155 27 59 163 3.77%Mechanical Installation - - m² 900.00 0.00%Internal Plumbing 117 000.00 18 No 6 500.00 9 1.93%

2 SPECIAL INSTALLATIONS / EXTERNAL WORKS 1 679 250.00 27.68%

Earthworks 50 050.00 5 005 m² 10.00 0.83%Soil drainage 45 000.00 150 m 300.00 0.74%Water supplies 43 500.00 300 m 145.00 0.72%Boundary, Screen and Retaining walls, Fencing 213 000.00 284 m 750.00 3.51%Paving, walkways, etc 396 000.00 2 200 m² 180.00 6.53%Roadworks, minor earthworks 796 500.00 2 655 m² 300.00 Ancilliary Buildings - - no - 0.00%Landscaping, irrigation, etc 97 500.00 1 500 m² 65.00 1.61%Fire Services 37 700.00 26 no 1 450.00 0.62%

4 PRELIMINARIES AND GENERAL 577 764.94 9.52%

5 CONSTRUCTION COST SUB-TOTAL 5 777 649.44 95.24%

6 CONTINGENCY ALLOWANCES 288 882.47 PRICE AND DETAIL DEVELOPMENT (say 2.5%) 144 441.24 2.38%BUILDING CONTRACT CONTINGENCIES (say 2.5%) 144 441.24 2.38%

7 ESTIMATE OF CURRENT CONSTRUCTION COST 6 066 531.91 100.00%(EXCLUDING VAT) NOV. 2011

8 ESCALATION 194 945.63 PRE-TENDER ESCALATION (5 Mnths) 72 836.30 1.20%CONTRACT ESCALATION (11 Mnths) 122 109.33 2.01%

9 VALUE ADDED TAX @ 14% 876 606.86 14.45%

10 ESTIMATE OF ESCALATED CONSTRUCTION 7 138 084.40R COST AT CONTRACT COMPLETION DATE sayINCL. VALUE ADDED TAX 7 140 000.00R 403.93 m² 117.66%

Stalls (2 No)

Cost %

ELEMENTAL ESTIMATE OF CONSTRUCTION COST - FLEA MARKET AND REST STATIONS

Code Description Cost

R Quantity Unit Cost per

Unit Rest

Station

Toilet Blocks (2 No)

Exhibition

Halls (2 No)


Annexure A


Annexure B


Annexure C



Documents

Business Plan - new flea market and station