REPORT ON THE HERITAGE CITY

PROJECT

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Table of Contents 1. Introduction .................................................................................................. 2

2. The site .......................................................................................................... 2

3. Appointment of consultants for the project ............................................... 7

4. Project Cost ................................................................................................. 10

5. Planning process ......................................................................................... 10

6. The master plan .......................................................................................... 13

7. Project Implementation and Governance ................................................ 18

8. Project Funding .......................................................................................... 20

9. Concluding Remarks and Way Forward ................................................. 21

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1. Introduction While the principles and wish of Government, especially that of the Prime Minister, to

develop the Heritage City is not being questioned at all, the purpose of this report is to

draw urgent attention to major flaws in the way the Heritage City Project is currently

being conceived and developed through the Heritage City Company Ltd. The report

highlights key parameters, conditions and assumptions that have been omitted and

understated in the site identification and location, conceptual and architectural design as

well as the current process adopted for its implementation. It is meant to alert policy

makers of the risks, loopholes and costs associated with the current development

approach adopted by Heritage City Company Ltd. If unaddressed at this stage, it can lead

to major cost escalation, result in a poorly planned development for such a prestigious

and landmark project and finally become a major embarrassment for Government.

2. The site The selection of the site for the Heritage City project is a key issue that needs to be

carefully analyzed. The site chosen lies between 2 rivers and is adjacent to the Bagatelle

Dam under construction. To give access to the site, land will need to be compulsory

acquired, though SLDC owns over 2000 acres of land. Land will need to be acquired for

water supply and sewerage disposal.

The site slopes from 367m in the East to 296m in the East, which is a 71m drop. This will

require significant cuts and fills and will have incidence on the cost of the project.

Furthermore, storm water management could be a serious issue if these aspects are not

properly considered. The proximity of Bagatelle Dam is another issue that needs to be

closely looked into when dealing with storm water management. Overflow can create

serious flooding issues if the storm water management plans are not properly designed

and engineered.

Surprisingly, the concept engineering plan clearly specifies that:

i. River flood levels are not available, and therefore a free outfall is assumed; and

ii. Flooding due to potential failure of the dam is not accounted in the design.

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We would have assumed that such basic characteristics and prevalent conditions of

the site would have been taken on board before formulating advice to Government on

the suitability and relevance of the site for such a landmark development.

In addition, it is important to underscore the concerns associated with the current master

plan of the Heritage City Project. These include the limitations associated with scope of

integration with other developments such as the Highlands Smart City, the risk of

flooding owing to the topography of the current site identified and proximity of Bagatelle

Dam, the extensive offsite road works associated with the current site as well as costs

associated with land acquisition to allow accessibility. These are morefully described

below.

(a) The layout of Heritage City is more inward looking rather than outward looking

which is better suited for a site with Government Services. It means that it eliminates

any linkages with other developments such as the Highlands City development. The

master planner also advised that the site is enclaved by rivers Cascade and Terre

Rouge and the Bagatelle Dam acts like a man made barrier making integration into

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the larger Highlands City precinct difficult. It is the view of the masterplanners that

Heritage City at its current location will function as an island site with an autonomous

self-contained character rather than as a government/civic component of the larger

Highlands Smart City development.

(b) Risk of flooding due to Bagatelle Dam exists. The risk can only be quantified through

a comprehensive risk assessment of the dam design and construction. Mauritius has

no prescribed guidelines on dam and/or dam spillway sizing with regards to Probable

Maximum Flood (PMF) or Regional Maximum Flood (RMF). The guidelines of

South African National Committee on Large Dams (SANCOLD) are usually relied

upon for fixing such design criteria and only a detailed review of the design of the

dam can conclude if the possibility of having human settlements downstream of the

dam has been considered in the design process of the dam. There seem to be no

evidence of such a study having been commissioned for the development downstream

of the dam.

River

River

Bagatelle Dam

Heritage City Site

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(c) The current location of the Heritage City will require extensive offsite works for

access to the site. The traffic level of service on the M1 motorway at Reduit from

traffic generated by Heritage City will considerably worsen and this will require

extensive infrastructure works to mitigate such traffic impact. In reply to the question

about locating the Heritage City at the location originally foreseen in the SLDC

masterplan for the “New Administrative City” next to Aurea development at

Highlands with frontage on the M3 (Ebene – Verdun – Terre Rouge Link Road), the

masterplanner and the traffic engineer have confirmed that this will be a better option

from a traffic impact perspective and will require less offsite infrastructure works.

The initial capital costs for offsite works at Highlands will also be considerably less

than at its currently planned location.

(d) The current location of the Heritage City will require land acquisition of private lands

for the construction of roads to access the site of Heritage City. No such acquisition is

foreseen if the Heritage City is constructed at Highlands, at the site of the originally

planned “New Administrative City”.

The Correspondence from SLDC and LUXCONSULT is at Annex 1.

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The selection of site for the Heritage City project is questionable, taking into

consideration site grading, the 2 rivers bordering the site, and most importantly the

proximity with Bagatelle Dam.

The Conceptual Engineering Plans does not take into consideration any potential failure

of the dam.

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3. Appointment of consultants for the project The process for appointment of main consultants for the master planning and design of

the Heritage City project raises serious doubts as to whether the right process has been

followed. For a project of the scale, magnitude and scope of Heritage City (over 300

Arpents), the selection of the project team is critical to ensure the successful planning,

design and implementation of the project. It is critical to assess the credentials of the

project team members and past projects designed and implemented.

The project team should not be limited to master planners and engineers, but the

contributions of economists, financial analysts, quantity surveyors and other relevant

trades in the planning process are critical to evaluate the financial viability of the project.

In the case of the Heritage City, the process of hiring STREE Consulting as the principal

agent is completely opaque and dubious. Below is a sequence of events that induces

anyone to question whether the proper process of hiring the right consultants has been

followed:

1. On 12 February 2016, the Directors of Heritage City were informed that the services

of BDO were retained by the Ministry of Financial Services for the financial

modelling of the proposed Heritage City project and that BDO had submitted

proposals for a concept master plan for the project in collaboration with STREE

contracting, an engineering firm based in Dubai.

2. On 17 February 2016, BDO presented Saeed Ahmed Saeed, CEO of STREE to the

Board of Heritage City and BOO and STREE did a joint presentation of Heritage City

concept master plan.

3. On 4 March 2016, the Board was informed that pursuant to the High Powered

Committee recommendation, which was approved by Cabinet on 2 March 2016,

Government has agreed to procure the services of STREE for:

i. The detailed masterplan and engineering design for infrastructure works

ii. The government offices schematic design on a Government to Government

basis with the Government of Dubai.

4. STREE'S fee proposal is as follows:

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i. Detailed masterplan for 300 arpents and engineering - USD 1,840,000 (sent on

12 Feb 2016). This fee proposal had a list of major exclusions e.g. landscaping,

preparation of architectural guidelines, visuals etc. This was approved by the High

Powered Committee.

ii. Fee for doing the detailed landscaping design (excluded from master planning

fee) - USD 1, 912, 000, which is more than their fee for doing the detailed

masterplan and engineering itself. Their fee for the detailed master plan and

detailed landscaping design altogether comes to 3,752, 000 in total. (Note:

LUXCONSULT has been appointed for the master planning and detailed

engineering design for SLDC’s Highland Project, over 2000 Arpents of land,

for approximately USD 2 million).

iii. Thereafter, STREE consulting has been sending several proposals for:

a. Schematic design for Government Offices – USD 2.5m

b. Detailed design and preparation of tender documentation for Government

Offices

c. Detailed design of Parliament Building

d. Schematic Design for Townhomes and Villas

e. Detailed design and preparation of tender documentation for townhomes

and villas

f. Detailed design for Heritage Square and Mixed-Use Complex, including

interior design

iv. Total fees quoted by STREE, including concept master plan, works out to

approximately USD 18,657,000 (MUR 664m), and the fees have major exclusions

such as site supervision and reimbursable expenses (flights, accommodations,

etc.)

v. No local consultants are involved in the project and STREE has refused to enroll

any

Based on the above, there is no visibility on the professional fees that will be incurred on

the Heritage City Project.

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Only STREE’s fees is known to be nearly USD 19m. On top, there will be need to

include other professional fees for site supervision, project management, legal and notary

fees, survey fees, compulsory acquisition of land, finance costs and others.

Projects in the scale of Heritage City require multi-disciplinary skills. It is key that all the

trades are not allocated to the same consultant, otherwise there is no control on design

quality and costs.

It is imperative to confirm if a letter of engagement has already been awarded to STREE

consulting for the above services.

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4. Project Cost

STREE has estimated the total project cost for Heritage City to be USD 800m and this

does not include major off-site works such as CEB sub-stations, water connection, access

road connecting Heritage City, compulsory acquisition of land.

STREE has no knowledge of the local context, be they in terms of planning and

constructions costs.

The feasibility of the project, including market analysis, cost, revenue expectations, and

financing are not clearly defined; not to say unknown.

5. Planning process

Planning is a highly iterative process whereby plans are designed, reviewed, redesigned

and validated by the client in line with the objectives and financial sustainability of the

project, before a plan is finalized and accepted.

A master planning process has 5 key stages, as illustrated in the below table:

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Stages Physical Planning Economic Planning 1 – Project

Definition Designation of prime consultants for the

project, including land planners, architects, engineers, etc

Economists, Financial Analyst

2 – Analysis / Site Reconnaissance

§ Boundaries, Access and Views § Topography, slope, drainage § Vegetation Cover and Characteristics § Environment and Geological Features § Historical, Archaelogical & Cultural

attributes § Wind, temperature, rainfall, sun path, &

humidity § Zoning, land use, & permitting issues § Water, sewage,power, communications

§ Review & inventory of existing market conditions

§ Define target market and project elements § Identification & benchmarking of competing

and comparable projects, size, types, pricing, etc

§ Specify development programme, product types, and amenities

§ Timing of market support for various products

3 – Conceptual Masterplan workshops

§ Land use suitability and capacity studies of gross area available for development

§ Site development diagram and density studies

§ Preliminary Phasing Plans § Preliminary quantity take-offs relating to the

site infrastructure and special features § Review plans with planning authorities &

address comments

§ Work with planners to refine initial programme

§ Preliminary development costs § Project revenues on early master plan concept § Alternative cash flow analysis (to derive the

highest and best use from the site)

4 – Preliminary Master Plan Refinement

§ Refine masterplan and develop specific site plans

§ Architects document architectural styles, alternatives, and establish design criterial

§ Architectural massing studies are conducted § Engineers study soil suitability, water &

sewer, stormwater management & erosion control, alternatives for water supply, waster treatments, power supply, traffic impacts, etc

§ Refinement of financial analysis § Review cash flows § Alternative development strategies

5 – Final Illustration Master Plan

§ Illustration of special characteristics of the project

§ Detail location of facilities o Residential o Commercial o Recreational o Circulation Pattern (Vehicular

systems, parking, service areas, trails, pedestrian systems)

§ Landmarks, Vistas, Historical Sites § Utilities & Maintenance (water supply,

sewage treatment, surface water management, electrical supply/distribution, solid waste disposal)

§ Detailed project parameters (mix of components, pricing, etc)

§ Revised cash flow, costs and revenue projections

§ Absorption sensitivities § Key cost variables § Documentation of market and financial

reports

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Below is a list of fundamental questions that need to be answered to ascertain whether the

proper planning process was followed:

i. Was there a project brief given to STREE consulting and who prepared the

project brief?

ii. Was there a real estate market analysis carried out before defining the

components, notably the residential real estate, mixed use and commercial

components, to support the project brief?

iii. Was there a proper site due diligence out prior to the master planning?

iv. Were there design workshops held, and if yes, who formed part of the workshops?

v. Were the financial aspects validated at each stage of design?

vi. With whom STREE has been validating the plans at each stage of design?

In the case of the Heritage City project, there is no sign of the planning process being

diligently followed. it seems that the project has been purely consultant driven. As a

matter of fact, as at to date there is no management structure in place at the Heritage

Company Limited.

A project of this size, scope and magnitude requires that the process of the concept

and design plans are adopted in line with normal international standard. There are

serious question marks currently on the methodology, approach, planning,

development and implementation processes adopted so far by Heritage City Co Ltd.

Fundamental aspects of master planning that such a development project warrants

have simply been omitted, ignored or under-evaluated. If these issues are not

addressed at the initial stage, it may seriously compromise the whole development.

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6. The master plan

A preliminary analysis of the masterplan prepared by STREE Consulting reveals a

number of shortcomings, that are not deemed to be in line with sound urban planning

practices.

Below is a non-exhaustive list of 10 weaknesses found in the master plan:

i. Syndrome of suburbia

The master plan, in its actual form, depicts a syndrome of suburbia type development,

which the new generation of urban planners are normally against. There is only one

square in a 336-acre development.

336 acres of development gives the opportunity of creating several squares if the quarter-

mile rule is applied. Based on this rule, a 145ha development can easily yield around 3

squares. In this development, there is planned only one square within the elliptical zone.

In urban planning, if the street and walkways are well defined, they become excellent

open spaces. One should not rely solely on squares.

ii. Land Parceling Plan Vs Master Plan

The plan looks like a land parceling plan, on which uses have been superimposed. The

ellipse looks to be at the centre of the attraction and the remaining seems to have been

given less importance.

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iii. Street networks

The network of streets is not properly defined in the master plan. This is an essential

component of a good master plan. In the conceptual engineering plan, I read that there

will be 8 types of streets:

• A 32m, 6 lane entry boulevard from M2 to the Parliament House – Speed limit

70km/hr

• A 30m, 4 lane boulevard as the main peripheral – Speed limit 40km/hr

• 12 to 16m local access roads – Speed limit 30km/hr

The hierarchy of streets needs to be properly established and the circulation flow/pattern

defined, based on proper traffic impact assessments, the moreso that the project is almost

next to existing developments.

A proper network of streets should also show the interaction between vehicular and

pedestrian accesses. Nothing in this respect is shown in the masterplan, including

streetscapes.

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Mixed-Use development is not only about having many uses in one developments. In

fact, in it more about how each use will be interacting with each other

The master plan does not show a proper vehicular and pedestrian circulation plan. The

pathways are not defined. All these are fundamental elements of a master plan. This

raises question on the process for approving the master plan.

iv. Access to site

The masterplan and Concept Engineering Plans show 3 accesses to the development.

However, this is not supported by proper Traffic Impact Assessment; not only within the

project, but on the roads/highway to which the site will be connected.

v. Floor Area Ratio (FAR)

Based on the figures provided, it can be seen that a Floor Area Ratio of around 0.5 is

derived for the project. This may not be the most efficient planning if this is the case.

According to urban planners, a walkable urban development should aim for an FAR in

the region of 1.5 to 3, and yet have many open spaces.

vi. Parking

As per the master plan, 4 spaces are earmarked for parking spaces in the development. In

addition, provision is made for a single-storey basement parking under each building.

The masterplan, however, does not provide a detailed analysis of parking requirements

taking into consideration the carrying capacity of the master plan. If this is not done,

there is a possibility of ending up like Ebene City where poor parking provision has been

made and this generates an eyesore with reckless parking.

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Furthermore, the geotechnical survey of the site was conducted much after the

conceptualization of the master plan. The results of the survey and the topography should

be considered, prior to finalizing the parking plans.

vii. Architectural vernacular

Defining the Architectural style (or styles) is key in a master planning exercise. Nothing

as such is defined in the master plan. The scope of work of STREE, surprisingly,

excludes architectural coding.

This may lead to different design styles which may not be in harmony with each other.

viii. Landmark and Vistas

The master plan gives no consideration to any landmark and vistas that could otherwise

have been possible. These are key elements in a development of this scale which, in fact,

give a sense of direction.

ix. Sustainability – natural lighting and ventilation

Unless done but not presented, there is no analysis and consideration given in the master

plan to sustainable development principles. Sustainability is not only about having green

spaces and renewable energy. It should be first and foremost embedded in the design,

such as natural lighting, natural ventilation, etc.

x. Phasing

As planned, the 1st phase will have the Government buildings, private commercial

buildings (yet to be defined) and some residential components. The square will not be

developed and the retail mixed-use is not found in the first phase. The private commercial

spaces are yet to be defined.

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It is important to know what will be the retail offerings, including retail F&B and retail

services, when the Government offices, parliament, convention centre, and residential

units are completed. Otherwise, users of Heritage City will be amidst a field, with not

access to retail facilities.

The above is a non-exhaustive list of planning issues found in the master plan, which

again raises question on the experience of the master planner and the planning process in

terms of review and validation.

In short, the current approach is flawed and revealed a total lack of expertise available to

lead such a project. Ideally, the development of such a project as Heritage City should

have adopted an integrated planning approach which is depicted below.

- Sitelocationcharacteristics,existingtopography

- Siteandneighborhoodcontext- Constraints

Discussionswithstakeholders

- Workshops- Focusgroups- Onetoone

meetings

- Videoconferencewithinternationalcityplanners/developers

Urbandesignbrief

- Projectscope- Definitionofclear

objectivesandgoals- Implementation

timeframe

Approvalofcabinet

Funding

- VisionforthedevelopmentofHighlandsProject

Informationcollection

Appointmentofconsultant

RFPforConsultancyservices

Selection&Appointment

process

MasterPlanProcess

ConceptPlanDraftMaster

PlanPublic

ExhibitionFinalise

MasterplanApprovedMasterPlan

DevelopmentModel,MarketingandImplementation

Methodology – Integrated Planning Approach

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7. Project Implementation and Governance As at date, Heritage City Company Limited does not have any permanent staff or an

organization structure in place. There is only a Board of Directors, meeting on a monthly

basis. Serious concerns are raised on the way the project is being handled and managed.

In the absence of management staff and a CEO, it is clear that the project is being driven

blindly by Stree Consulting with no due diligence or checks being exercised on the

proposals being put forward by the consultants. Government, through cabinet, is therefore

being called upon to endorse the recommendation of Stree with no assurance that the

proposals have stood the test of minimum scrutiny.

On 02 August 2016, a Board Meeting is convened with defined agenda wherein one of

the items is for STREE consulting to present the detailed plans of one of the components

of the project. During the same meeting, the Board is requested to resolve the

implementation of the landscaping plan for the Heritage City project; while this was not

part of the Agenda. In addition, the Board is requested to appoint Stree for the detailed

design works with no formal board papers being circulated. This clearly flouts basic

principles of good governance, accountability and transparency. It is evidently clear that

the Chairman of the Board and most members of the board are being instructed to act

simply as rubber stamp directors with no possibility of questions being asked.

A copy of the Agenda is at Annex 2.

This is a clear indication that the project is not being managed properly and will lend the

Board, the Government, and the project into serious troubles.

The Heritage City Co Ltd has a duty to advise and make recommendations to

Government on the implementation of such a project. The current mode of operation is

that Government (Cabinet- considered as shareholder) seems to direct the Board, which

does not have any management staff. The Board is seen as a rubber stamp of

recommendations made by STREE Consulting. This is dangerous as an approach and

flouts all principles of governance. The Board should be fully satisfied with the proposal

and thereafter make its recommendation properly to Government on the best design and

concept plan having regards to all aspects of master planning.

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8. Project Funding It was initially understood that a G to G arrangement was proposed on the basis that the

Dubai Government was going to advance funds for the construction of Heritage City. It is

now almost clear that the Dubai Government will not be funding the project.

At its Board Meeting on 2 June 2016, the Directors were informed that the Government

of India will fund the construction cost of the parliament as well as the infrastructure

works; not the consultancy fees. However, the condition is that only Indian contractors

will have a right to tender for the works.

The cost of Heritage City has been broadcast as being USD800m with not a cent being

contributed by the Government of Mauritius so as not to increase public debt.

Based on the above, if Government is not receiving any funds from Dubai Government,

should STREE consulting be appointed for almost all consultancy services for the

project?

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9. Concluding Remarks and Way Forward It is to be reiterated that the aim of this report is not question Government’s decision for

the implementation of the Heritage City project.

However, for the proper implementation of the project, it is critical that all the issues

flagged in the report are addressed at outset to avoid any future surprises, which can

occur financially and from a planning perspective.

Any mishap can compromise the implementation of the project and can become a serious

nuisance factor for Government.

i. It is being recommended that Government takes a few more weeks to properly

analyze all issues, set up the appropriate management structure at Heritage City

Co Ltd or alternatively vest the project in State Land Development Company

which is already properly staffed for the implementation of the Heritage

City project .

and take the required decisions, before breaking grounds for the Heritage City project.

As a way forward, it is proposed that the following are assessed without undue delay;

ii. A Due Diligence on STREE Consulting.

iii. An evaluation of the technical and financial proposals of STREE consulting and

the agreements signed.

iv. Review of the Planning Process followed by STREE Consulting.

v. A proper site due diligence to assess adequacy of site and alternative locations.

vi. Review of the Master Plan with industry experts to assess the best location and

best use of the land.

vii. Site selection

viii. Uses and real estate mix

ix. Architectural design criteria

x. Phasing

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xi. Setting up the management structure of Heritage City Co Ltd or alternatively

using State Land Development Company which is already well staffed for the

implementation of the Heritage City project .

xii. Financial modelling for the project and financing plan.

Ideally, the development of such a project as Heritage City should have adopted an

integrated planning approach which is depicted below.

- Sitelocationcharacteristics,existingtopography

- Siteandneighborhoodcontext- Constraints

Discussionswithstakeholders

- Workshops- Focusgroups- Onetoone

meetings

- Videoconferencewithinternationalcityplanners/developers

Urbandesignbrief

- Projectscope- Definitionofclear

objectivesandgoals- Implementation

timeframe

Approvalofcabinet

Funding

- VisionforthedevelopmentofHighlandsProject

Informationcollection

Appointmentofconsultant

RFPforConsultancyservices

Selection&Appointment

process

MasterPlanProcess

ConceptPlanDraftMaster

PlanPublic

ExhibitionFinalise

MasterplanApprovedMasterPlan

DevelopmentModel,MarketingandImplementation

Methodology – Integrated Planning Approach