PAN AFRICAN PARLIAMENT CONSTRUCTION PROJECT

Status report presented to International Relations Portfolio Committee

17 June 2015

1. INTRODUCTION• The Host Country Agreement between the Government and the AUC provides

for support to be rendered to the AUC without an expiry date

• From time to time, Government and the AUC review the appendices to the Agreement with consideration to the financial constraints as well as to improve efficiencies and effectiveness of operations

• Government committed in the Host Country Agreement to providing a dedicated, equipped and furnished permanent structure at its expense to house the Pan African Parliament complex

2. BACKGROUND TO CONSTRUCTION PROJECT • Project commenced in 2006 with DPW as implementing agent

• Government land was identified for a new construction - situated next to DBSA in Midrand and approved by Cabinet

• The project progressed through the design and bulk excavation, was postponed indefinitely due to environmental concerns raised by the public and Department of Environmental Affairs

• Following engagements between DPW and DEA, it was agreed that a revised Environmental Impact Assessment be conducted with full public participation

• Environmental process is yet to be concluded

3. CURRENT LEASE ARRANGEMENTS• Gallagher Estate has hosted the Pan African Parliament since 2004

• Lease agreement has been extended for a period of 5 years with effect from 1 March 2015 to 28 Feb 2020

• Monthly rental is R 2 895 250.00 (including offices and parking), which represents a 15% reduction from the previous rental of R 3 550 472.10 per month

• DIRCO provides financial support for the services as agreed in the Host Country Agreement

4. LONGTERM PLAN FOR SECURING PERMANENT ACCOMMODATION

• Given present fiscal constraints, DIRCO is engaging National Treasury in alternative funding mechanism for the project

• Public Private Partnership – with private sector funding, constructing, maintaining and operating the facility is under

consideration

• Indicative timeframes for PPP process:Feasibility Study – 4 – 6 monthsProcurement – 12 monthsNegotiations – 6 monthsConstruction – 18 – 24 months