Embed Size (px)
Citation preview
EXECUT IVE SUMMARY O F POLOKWANE I NTERNAT IONAL CONVENT ION C ENTRE
F EA S I B I L I TY S TUDY Prepared for: POLOKWANE MUNICIPALITY (PUBLIC PARTICIPATION)
PREPARED BY:
Genial Shelter Architect
1
TABLE OF CONTENT 1. INTRODUCTION AND BACKGROUND .................................................. 2 2. MUNICIPAL NEED ............................................................................ 2 3. MUNICIPAL OBJECTIVE .................................................................... 2 4. PREVIOUS FEASIBILITY STUDY ......................................................... 3 5. CURRENT STUDY ............................................................................ 4 6. OUTPUTS ....................................................................................... 4 7. CURRENT AVAILABLE FACILITIES ...................................................... 7 8. SOLUTION OPTION ANALYSIS ........................................................... 8
Technical Availability .......................................................................... 8 9. PREFFERED OPTION ANALYSIS ....................................................... 11 10. LEGAL DUE DILIGENCE ................................................................. 11
Site ............................................................................................... 11 Lapsed Title Deed Conditions ............................................................. 12 Current Land Use ............................................................................. 12 Minerals, Water and Heritage ............................................................ 13
11. LEGAL ISSUES ............................................................................. 14 12. TECHNICAL ISSUES ..................................................................... 14 13. DUE DILIGENCE: SOCIO-ECONOMIC STATUS .................................. 15
Municipal Socio-Economic Objectives .................................................. 15 14. ECONOMIC EVALUATION .............................................................. 16
International Tourism Base Analysis ................................................... 16 Provincial Tourism Analysis ............................................................... 17
15. POLOKWANE CONFERENCE AND ACCOMMODATION SUPPLY .............. 18 16. ACCOMODATION DEMAND ANALYSIS ............................................. 18 17. LOCAL ECONOMIC BENEFITS ......................................................... 19
2
1. INTRODUCTION AND BACKGROUND
The City of Polokwane(CoP) has a vision objective of becoming a smart city
by the year 2030. The vision of the municipality is “The ultimate in innovation
and sustainable development”.A number of anchor projects were identified
that would ensure economic development.
The Polokwane International Convention Centre (PICC) was identified as one
of the anchor projects to be undertaken.
It is Important that the development of the PICC , is aligned with the CoP
strategic Objectives. The PICC will do so by accelerating higher economic
growth and development of CoP. The development will create temporal and
permanent job opportunities;
Promote viable economic atmosphere by establishing a PICC in order to
enhance economic opportunities with social, cultural and economic
development that enable celebration of diversity and foster inclusion.
2. MUNICIPAL NEED
To promote the optimal use of a municipal asset in the form of land, in order
to bring about economic growth within the municipal area through the
establishment of an international convention centre
3. MUNICIPAL OBJECTIVE
• Development of a facility that would cater for the need of having
adequate facilities to host delegates in access of 1500
• To investigate and select a procurement choice that will bring about
value for money, risk transfer and affordability in delivering the
International convention centre
• To attract investment for the construction, operations and maintenance
of the ICC
• To create economic empowerment opportunities for local small,
medium and micro enterprises (SMME)
• To promote job creation for local
3
• To promote environmental conservation
• To ensure compliance with all legislation related to PPPs
4. PREVIOUS FEASIBILITY STUDY
The overall need of the municipality was defined as to stimulate economic
growth and development by attracting investment through the design and
building of an international convention center. Generally this is perceived to
bring more investment. The feasibility study conducted by the municipality in
2004, was favorable towards the building of an ICC. These were the findings
as per sub-section 8.2. Of the Feasibility study report: 2004.Ouputs of
previous study are below:
4
5. CURRENT STUDY
Architectural Simulations Figure 1 Architectural Simulation
Site Plan Figure 2 Site Plan
6. OUTPUTS
ü Building Specifications
5
� Capacity to hold 3000 people, 2 000 in plenary, and 1 500 in
break-away rooms with average capacity of 50 pax and the
1 500 in exhibition rooms
� Ablution facilities:
o 60 male
o 45 female
o 10
� Air conditioning in all the meeting rooms (standard and spec)
� Disability accessible points into the building and in the meeting
rooms
� SHEQ compliant.
� Entrance and exit points: the complex will have maximum of 3
entrance and exit points
� Emergency exits must be provided within the building
� Fire and evacuation corridors must be provided.
� Entrance and exit points: the buiding will have 3 entrances &
Exit point
o Combined Entrace and exit point
o Conference entrance and exit point
o Hotel entrance and exit point
o Support spaces as follows:
o 2 Projection rooms;
o 2 equipment Storage;
o 2 Rear Projection rooms
o 1 Conference Reception with capacity of 500;
o 1 Break Lounge/Pre-function with capacity of 100;
o 1 Outdoor Event Space with capacity of 100;
o 2 Smoking areas with capacity of 10;
o 1 praying area with capacity of 10;
o Kitchens/Dining spaces as follows:
o 1 Large
o 1 Small
o 1 Dining area A with capacity of 500 delegates;
o 1 Dining area B with capacity of 200 delegates;
o 1 Dry Store
6
o 1 Cold store
ü General Infrastructure:
• Land: 249 828 sq. meters available for development
• Equipment: AV equipment, Interpretation services equipment,
presentation equipment
• Water capacity: 600 000 litres of water per day
• Sewer Capacity: sewerage flow of 30 litres per second
• Drainage: HY- 8
• Electrical Capacity: 47 000 000 KwH for both ICC and hotel
o Back-up generator and Uninterrupted power supply
• Holding Capacity: 3000 pax
• IT capacity: To be based on the latest technology in place.
• Ecological requirements: energy conserving methods with lighting,
lifts, escalators, flushing systems, natural light optimisation
ü Parking requirements:
• Basement Parking with 300 bays
• Surface Parking with 750 bays
• Parking for people living with disability 55
ü Access points: Entrance and exits to the PICC from road network
• Two entrance and exit points into the PICC site for public
• One entrance and one exit point into the PICC for suppliers and
deliveries
• 2 designated loading zones
o One For the Kitchen
o One Day to day deliveries
ü Operational Outputs
Conference and Convention
• Core Conference Services:
o Meeting, exhibition and conference co-ordination
o Physical security system: access control, security guards,
security booths in meeting rooms with a capacity more
than 100.
o Ventilation: heating and air conditioning
o Environmentally friendly lighting
7
o Audio and visual equipment
o Parking: access and management of parking spaces
o Emergency services
o Food aid and catering
ü Supporting Services:
o Utilities: maintenance of water and lights
o IT system including the set-up of a business room with at
least 5 computers, 1 printer and access to Wi-Fi
o Cleaning service
o Pest control service
o Waste management service
o Landscape and garden
o Audio and visual equipment
o Interpretation
o Lifts and escalators maintenance service
o Vending machines
o Car Wash
o Professional fees:
ü Non-negotiable
o No labour broking services
o Fire and medical services
o Disaster Management
ü Financial services
o Foreign exchange businesses
o Bank facilities.
7. CURRENT AVAILABLE FACILITIES
Figure 3 Available Facilities
Name of Facility Capacity
8
Jack Botes Hall 1200
Nirvana Hall 600
Westenburg Hall 600
Ngoako Ramahlodi Sport Complex 4270
Mankweng Hall 400
Moletjie Hall 100
Polokwane Show Ground 10 000
Chuene resort 200
New Peter Mokaba Stadium 45 000
New Peter Mokaba Stadium Press Theatre 140
New Peter Mokaba Stadium Executive Lounge 500
8. SOLUTION OPTION ANALYSIS
Technical Availability
1. Ngwako Ramahlodi Sporting Facility.
2. Site next to GAAL airport
3. Site next to New Peter Mokaba Stadium
4. Southern Gateway Extension 1.
NGWAKO RAMAHLODI SPORTING FACILITY
Advantages Disadvantages
9
• Existing Facility with services
• Located in the township, it will bridge
the spatial divide
• Brings economic activity to the township
• Low CapEx, as it will only be extended
• Safety of international delegates
• Minimal building capacity to expand
• Bulk infrastructure may be burdened
• Limited parking space
• The refurbishment to meet international
convention centers may inflate the CapEx
to as much as that of a green field
• The facility used as an ICC may replace the
need of the local youth for a sporting
facility
SITE NEXT TO GAAL AIRPORT
The site is next to the airport; therefore easily access the mall of the north,
as it is just 15 minutes away. This means that restaurants, financial services,
and other amenities are also easily accessible.
Advantages Disadvantages
• Located in the industrial precinct
• Will promote movement of people between
the airport, ICC and Mall of the North,
thereby increasing economic activity in that
spatial node
• Township establishment process still
needs to be done
• Un-serviced land, with no priority in
infrastructure plans
• Land is owned by the provincial DPW
• The process to get land transferred to
municipality might be lengthy and delay
the project implementation.
• The site is next to Defence Force, which might be seen to compromise the security of the state.
• Due to the site being adjacent to GAAL,
the development might interfere with
the Aviation authority and not comply
with certain regulations as per aviation
authority.
SITE NEXT TO NEW PETER MOKABA STADIUM
According to the municipality there is no available site next to the new Peter
10
Mokaba Stadium. This is a sports precinct that falls under SDA 3 of the
municipality and has the following developments underway and in existence.
There is currently the following developments within the area:
ü Peter Mokaba Stadium
ü Virgin Active Gym
ü Municipal Airport
ü Hotel under Construction
ü Municipal Golf Course
SOUTHERN GATEWAY EXT.1
• Barren land, preferably owned by municipality
• Availability of bulk infrastructure
• Site readily available and accessible by road and air
• In close proximity with shopping and other amenities
• Capacity to combine both convention and exhibition
• Promote environmental conservation with existence of green belts or
buffer zones
• Meets overall strategic objectives of the municipality of spatial planning
and socio-economic development
ADVANTAGES DISADVANTAGES
• Site is owned by municipality
• Township establishment already done
• Site zoned for 1 ICC, hotel and green belt
• Budget of R2 000 000 spent on township
establishment and related studies
• Existing bulk services
• Site at strategic position to place iconic
building of international standards for
easier marketing.
• EIA and record of decision obtained
• Site within SDA 2 and development
corridor prioritized by municipality
• Corner Prominence
Geotech, Record of decision and traffic impact
study conducted in 2005, need for review in
2015
11
9. PREFFERED OPTION ANALYSIS
After Technical studies and capacity, land use and ownership, as well as
socio-economic and BBEEE targets,The most suitable Site for Development is
the is Southern Gateway Extension 1 on the follwing basis :
o Socio economic and BBBEE target rating are medium for all
other options while Southern Gateway rates high.
o The strategic Objective for the other options is also medium with
southern gateway with high ranking.
o The risks are high in other options with medium risks at
southern Gateway.
o The overall rating was good at
Township establishment already done at Southern Gate
10. LEGAL DUE DILIGENCE
Site The site was proclaimed as an approved township in terms of Chapter IV of
the Town-Planning and Ordinance No. 15 of 1986
The CoP now holds ownership of the proposed site by virtue of CCT No. T
043899/10
� Site Issues
o The site consist Of Erf 3 zoned for the Convention
centre;Erf 4 zoned for the Hotel and Erf 5 zoned as
public park;
o Cureently vacant;
o The Land Currently Valued at R6,9 Million;
o Owned by the City of Polokwane;
� A servitude of a right of way in favour of the general
public is created against Erf 3 and Erf 4;
� There is no land claim lodged against the identified site ;
� The identified site is not mortgaged
12
Lapsed Title Deed Conditions Figure 4 Lapsed Title Deeds Condition
� All the conditions in respect of the Portions 408 to 412, which may
have hampered the constructions of the PICC on the identified site,
were lapsed on the 25th day of July 2010 in terms of the provisions of
Section 6 of the Agricultural Holdings Act No 22 of 1919 read with
section 36 of Ordinance 20 of 1957.
� Safe to state that, our investigation revealed that there are no existing
conditions which may hamper the construction of the PICC on the
identified site, it is not necessary, for the purpose of this study, to
repeat all the conditions contains in the Title Deeds of Portions 408 to
412 herein. For the full description of the lapsed conditions see copies
of the Title Deeds of Portions 408 to 412 marked as Appendix “A”
Current Land Use
� Currently being used an illegal dumping site.
� The waste that is being dumped on the site does not appear to cause
any extensive contamination to the site, which may be classified as
high risk, in terms of The National Environmental Management: Waste
Act 59 of 2008,to necessitate that a site assessment be undertaken.
13
� Furthermore, as it appears on Figure 5 below , there seems to be no
waste or substance dumped on the site which may affect the
environment or affect the use of the site for the construction of the
proposed PICC
Figure 5 Current Land Use
Minerals, Water and Heritage • Mineral rights have not been severed from the ownership of the identified
site In accordance with the Mineral and Petroleum Resources Development
Act [ MPRDA] (Act 28 of 2002) mineral rights are no longer relevant to
the establishment of a township and any development on a proclaimed
township
Comment
• The CoP needs to revisit it’s Township Planning Scheme, 2007 and amends
it accordingly to be in compliance with the Amendment to the Deeds
Registries Act as discussed above.
• Given the amendments to the Deeds Registries Act mineral rights it is very
unlikely that the proposed development of the PICC may be affected by
any possible exploration of mineral rights.
• National Water Act No. 36 of 1998; Section 144 of the Act: A layout
plan, duly certified by a professional engineer, reflecting the flood lines
may be required for compliance with the provisions of the National Water
Act if it was not submitted when the township was established in 2010.
14
• National Heritage Resources Act No.25 of 1999: No signs that it was once
a graveyard or a stone-age village. Enviro Xcellence Consulting
Geohydrological & Environmental Scientists in their 2005 Scoping Report.
Limpopo Provincial Heritage Resources Authority (LIHRA) must be advised
of the intended development.
o The National Building Regulations and Building Standard Act 103
of 1977 [The NBRBSA]:construction of a building must take
place within the confines of the zoning that is applicable to the
Erf to be developed
11. LEGAL ISSUES
• Removal and/or replacement of Eskom Power line: there are Eskom
line crossing the identified site
• Geotechnical investigation: In the light of the fact that the
proposed PICC is a more than one storey building, a revised geo-
technical investigation may be necessary to determine the relevant
NHBRC site classification
• Land Claims: No land Claims on identified site
• Road networks: Roads must be proclaimed by LM
• Water And Sewer: All water networks should be constructed to the
satisfaction of the CoP, at the expense of the PP
12. TECHNICAL ISSUES
• Geological overview: medium-grained, yellowish, laminated sandstone
of the Makgabeng formation of the Waterberg Group. Additional
investigation will have to be carried to the depth of 15.0m to confirm site-
specific conditions.
• Subsoil condition: The site generally slopes gently in the NW direction
along its entire width. This implies that during construction phase, the
amount of earth works will be reduced since less ground leveling will be
required. This will reduce on damage to the environment
15
• Road network:corner prominence allowing for high visibility and access
to and from the N1 and efficient traffic flow through the existing Lawton
road and other auxiliary roads. Need to upgrade some master plan roads
like Dawson and Cross road in terms of upgrading the road class from
gravel to paved road. It is proposed that side roads will be introduced for
approach traffic from N 1. Dawson and Cross road will have to be
upgraded to a main street to accommodate larger volumes of traffic.
• Transport: Polokwane has various forms of transport ranging from road,
railway and Air transport. Public transport amenities e.g. taxi- bus railway
facilities, Airport facilities can be enhanced with establishment of links
between the taxi/bus terminals, the railway station, Polokwane
International Airport and BRT system
• Drainage: sufficient existing drainage for storm water and drains at the
existing roads
• Water Supply: As per the Final AR water 2014, there is a water mains
running along Lawton road. A proposed water line shall be extended to
run along Dawson road, with various connections into the proposed ICC
area
• Sanitation: there is a 150mm diameter sewer line along Lawton road
and a 250mm diameter running across Holding 78/0. A sewer network will
be installed a cross the site and connect to the 250mm diameter sewer
line
• Power Supply: The site has existing 3 Phase lines that run through in
some parts of the land. Once the design is finalized, it will be necessary to
relocate such lines
• Building structure: It is envisage that the structure can have maximum
of 6 levels inclusive of the basement.
13. DUE DILIGENCE: SOCIO-ECONOMIC STATUS
Municipal Socio-Economic Objectives
o To increase the quality of communities by providing sufficient
stimulation, assistance and creating liveable cities
16
o To reverse the current outflow of youth after the age of 24 by
providing real opportunities to kick start long term careers within
Polokwane and to create a healthy and balance society
o To create an environment in which there is stimulation for the
youth to develop and prosper
o To facilitate the integration of women into the labour market and
to ensure a transfer of skills and knowledge
o To adopt and effectively implement a strategic health care
infrastructure development plan
o To contribute to the maintenance and refurbishment of educational
infrastructure
o To establish and monitor a safe, secure and accessible CBD.
� Youth development: retain at least 10% of young people migrating
annually
� Women Empowerment: to empower at least 20% of local women
� Socio-economic infrastructure: to upgrade and refurbish at least 50%
of existing social infrastructure.
� Skills Development: to empower 5% of unskilled labour especially
local, black youth and women
� SMME development:
o to train at least 60% of SMMEs on the municipality’s database
o to provide 10% of the registered SMMEs with access to economic
opportunities
� Black Broad Based Economic Empowerment (BBBEE): to promote
preferential procurement for black owned SMMEs and other larger block
owned enterprises
14. ECONOMIC EVALUATION
International Tourism Base Analysis � Tourism has the highest Multiplier Effect due to its strong linkages with
socio-economic development of the society .Development of the industry
not only enhances revenue growth but has a direct influence on Job
creation. Furthermore as tourism development is integrated it also injects
17
in sectors like, hotel, Power, Water, Transportation, Agriculture and Allied,
Small-Scale sectors and etc.
o South African Tourism-Although international tourism has
grown, the domestic tourism market has become less predictable,
with a growing black middle class having disposable income yet
relatively limited interest on domestic tourism.
o International Tourism-Since 1994, tourist arrivals increased
by over 120%, averaging growth of at least 8% per annum.
Foreign tourism peaked in 2008 then dipped temporarily in
response to the global recession and economic meltdown of
2009-2011.
o Source Markets-Africa and the Middle East account for the
largest share of international visitors to South Africa, with 75% of
all foreign arrivals with North and South America, Asia, and
Australasia constitute less than 5%.
o Purpose of Travel-Prior to 2008, holidays were cited as the
main reason for visiting South Africa. However this is no longer
the case as business travel is a growing market segment for
travel in the international arena.
o Expenditure-Foreign tourists spend an average R8,350 per trip
in South Africa. 2010 had higher than normal expenditure due to
world cup.
Provincial Tourism Analysis � Gauteng remained the most visited with 39% of tourist arrivals in 2014,
which indicated a negative growth of 4,8% from 2013.
� Limpopo, the second most visited province, realised growth of 8% in
tourist arrivals in the period 2013-2014
� Limpopo is one of the three provinces that showed the highest increase in
tourist visits to the province.
� Limpopo’s tourism revenue from foreign receipts grew by 0,5%. Although
Limpopo is the second most visited province in the country it does not
seem to capture proportional tourism revenue and its share of bed nights.
18
15. POLOKWANE CONFERENCE AND ACCOMMODATION SUPPLY
� There are at least 41 conference and meeting venues with estimated
78 167 in carrying capacity of space dedicated for conferences and
banqueting. Peter Mokaba and Polokwane Show Ground contribute 70% of
the total capacity contributing 45000 and 10000 respectively.
� Accomodation Supply- According to the Limpopo Tourism, there are
135 lodging establishments, with a total room supply of about 3112 and a
total of 5377 number of beds. The CoP is under-supplied as its accounts
for 24% of province’s tourism flow.
o Guest houses and Bed and Breakfasts holding 65%, 1897 rooms
and 3321 beds
o 6 Hotels holding 4%, with a total of 823 beds and 515 rooms
o Lodges, motels and resorts being the balance holding 30%, with
622 of the rooms and 1068
16. ACCOMODATION DEMAND ANALYSIS
� International standards of hotel operation recommend an average
occupancy level of at least 62.5% or higher.The CoP currently has average
hotel occupancy rate of about 48.1% amongst its 515 hotel rooms which
translates to about 187 975 room-nights per annum representing only
48%, which is an under-performance.
� In order to meet the international target, CoP would need to increase
occupancies amongst its existing hotels by 14.4%, representing 26 316
room-nights per year.
o Leisure Market Base: Hotel demand within the Regional Hotel
Market Area is driven primarily by leisure markets, as described in
the preceding sections on the region’s tourism base analysis. An
increase of 32% to 5,6 million visitors, making it the most visited
province domestically in 2014.
o Sports-and Event-Based Tourism: Events are another source of
room night demand in the Market Area. Mapungubwe and other
cultural and sports events hosted within the region bring about a
19
demand for accommodation. According to the Mapungubwe Socio-
Economic Impact study conducted by Limpopo tourism indicated
that only 3% of the attendees of the festival stayed in overnight
accommodation and hotels, the rest stayed with family and friends
or were just day visitors.
17. LOCAL ECONOMIC BENEFITS
� Conventions and exhibitions have direct economic benefits for the
hotels, restaurants, travel agents and professional conference
organizers in terms of arrangements for accommodation, transport,
food, sight-seeing and shopping.
� By hosting MICE events, CoP would be creating employment
opportunities not only for those in the hospitality industry but also
for students and volunteers who are required for the various related
coordination activities.
� Hosting a MICE event is a high impact opportunity for CoP to
showcase and market the entire gamut of its soft power which
includes various facets like, art and culture, literature, history,
education, media, traditional fashion and cuisines.
� Participants in international conventions provide an environment for
exploring the possibilities of Foreign Direct Investment (FDI),
technology transfers and joint ventures.
