1 DEPARTMENT OF PUBLIC WORKS P ROGRESS REPORT ON THE LEBOMBO PORT OF ENTRY 22 FEBRUARY 2011

2 TABLE OF CONTENTS Purpose Background Status quo

3 PURPOSE To provide progress report to the portfolio committee as per the visit to Mpumalanga( Lebombo border post)

4 Background The project was initiated in 2007 with the guess estimate of R300m by the time the tender of Professionals was concluded. The scope of works was to address four separate needs namely; Main Border Facility, Freight Facility, KM 4 Road, and Railway Station. An exercise to determine the actual needs by respective Government Departments from both South Africa/ Mozambique (SARS, Home Affairs, SAPS, NIA, Agriculture, and Health) in respect to one stop border post was concluded in September 2008 resulting in an approval of the Master Plan, and space needs document

5 Background The preliminary estimate of the entire development including professional fees, and escalation was R1.9m in December These costs included preparatory projects for fencing off the construction site, relocation of tenants from Border Post to a temporary Housing Complex, and preparation of temporary Border Post. The Department held a meeting on the 04th December 2008 to advice the Consultants about financial constraints to carry out the entire development at once. Only the Main Border Facility was to be prioritised at the estimate costs of R400m.

6 Background In January 2009 it became clear that National Treasury would not adjust MTEF allocation for Lebombo. A decision was taken to only implement Civil Works Project (Project N) with minor renovation for offices/ processing offices in preparation for 2010 World Cup on South African Side of the Border. The implementation of this project would also serve as the Phase 1 of the One Stop Border Post. The DPW executive management held a briefing meeting with Mozambique Government about the decision and its implication and advised Mozambique to prioritise undertake same improve within their side of the border.

7 Background Upgrading of Lebombo border post (RSA side) for Separation of traffic (light vehicle; freight; buses and pedestrian) - Design allows for later incorporation of the OSBP - Concurrent negotiations with MOZ on land agreements Estimate Costs of implementation: R150m (excluding construction based escalation). The tender for Project N was advertised in March 2009 and awarded the same year. The funding required for Project N was R based on the recommendable bidder’s price. The allocation confirmed for this financial year is R The DPW/ Treasury Regulations emphasises that no bids should be awarded without confirmation of the required funds.

8 Background In September at the meeting/ workshop held in Pretoria, both South Africa and Mozambique agreed that every party should develop required infrastructure for the purpose of 2010 World Cup Tournament. These will emphasise that a construction of bypass road for freight transports, pedestrian facilities all with a capacity for co-location and joint operations.

9 Background In October, DPW advertised the tender of the project to address the upgrade of the border, construction of bypass road, and redevelopment of temporary pedestrians building as the permanent operations office for pedestrians. In January 2010, the successful bidder was handed the site with clear instruction to prioritise the bypass road, and other civil structures. In June 2010, the bypass road was handed over to BCOCC for utilization, while the contractor in Mozambique handed over the road to Mozambique Border Post Authorities.

10 Status Quo Additional work or changes to align the buildings to operations requirements were requested which at the time of tender they were provided such as: Information Technology Civil Infrastructure in all new buildings (100% Complete as per request) Installation of Air-condition Unit for Server Room (Pedestrian Building) Burglar Proofing and Ramps at the Allocated Offices (previously Houses) Changes on SAPS offices (Pedestrian Buildings) Installation of security fence (as advised by NIA/SAPS Report) towards border line for pedestrians

11 Status quo Installation for Boom Gate and Spikes at bypass road Installation of Toilet facilities at the Canopies The items above are under attention by the Contractor, and instructions issued in December 2010 are due for completion by the 25/02/2011 while other external works awaits authorisation by Bid Committee.

12 Status quo During the visit by Portfolio Committee to Lebombo Port of Entry, a concern was raised about the appearance of the precinct. The Portfolio Committee advised the Department to initiate program to improve the landscaping and general cleaning of all Port of Entries as the faces of the Country when receiving visitors. The Department has taken the advice with humility and discuss the matter with minister to start a job creation program at all Port of Entries.

13 Status quo The Department has recruited 80 youth with assistance of the Mpumalanga Provincial Public Works (EPWP) and Local Municipality as direct employees of the Department for the period of twelve (12) months. The employees will be divided into service categories being General Cleaning and Horticulture. This implies that the Department will provide all necessary resources in the form of cleaning equipment, protective clothing, cleaning consumables, vehicles (1 ton Bakkie & 5 tons Truck) and operation flow manuals. During the twelve months period of operations the Expanded Public Works Program (EPWP) Co-operatives Desk will establish co-operative.

14 Status quo The members of the co-operative would be selected from the group based on the selection criteria of EPWP. EPWP will further ensure the registration of co- operative with Department of Trade and Industry. The Department will enter into a three years negotiated contract/s with co-operatives. The launch project will be Lebombo Port of Entry, and in April 2011 the services will expand to all border post between South Africa & Swaziland.

15 Status quo The Mandate of Public Works in the development and improvement of Port of Entries is on fixed infrastructure and the following remains the responsibility of individual department. Installation of Computer hardware Data Cabling Movable Furniture and Stocks Purchasing of Goods Scanners Relocation program and procedure to allocated buildings.

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