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ETHEKWINI WEEKLY BULLETIN By 2030 eThekwini will be Africa’s most caring and liveable city “KEEPING YOU IN THE KNOW” E Thekwini Municipality has received an unsolicited proposal from Seaworld Investment Holdings (Pty) Ltd recommending the redevelopment of the Virginia Airport site into a mixed-use development. The development will comprise commercial, hotel, upmarket residential, offices, leisure and related developments. Total capital outlay for the project is R6.1 billion. The Municipality is not required to fund the development and will only offer its services and expertise in the implementation of bulk infrastructure and services. The proposal also states that SeaWorld Investment Holdings (Pty) Ltd would source funding and develop a brand new airport, five times the size of Virginia Airport in Scottburgh. This proposal has been treated strictly in line with the provisions of legislations and policies governing Supply Chain Management (SCM) in this country. It has also been circulated on print media and City’s website for comments and input by members of the public, National Treasury, Provincial Treasury and the Auditor General of South Africa as directed by relevant legislation. Once the City receives input and comments, a decision whether or not to accept the proposal will be made. The Virginia Airport site is currently leased to operators for both business and recreational aviation. When the lease expired in October 2011, the City did a feasibility study to investigate alternative and optimal use of the site to advance the economic development aspirations of the City and grow the rates base. The study concluded that the site was no longer suitable to be utilised as an airport for a variety of reasons including that the City was no longer benefitting financial returns from that use as it does not generate rates income for the City. Plans have been made to relocate commercial flight operators to King Shaka International Airport with the flight school operators relocating to Scottburgh. Operators will not be moved from Virginia until arrangements to relocate them have been finalised. The City and Virginia Airport operators have agreed on the mechanisms to ensure a continuous and regular engagement until the project is concluded. This demonstrates the City’s commitment to a cordial working relationship with Virginia Airport operators and commitment to support the aviation industry. VIRGINIA AIRPORT REDEVELOPMENT PROPOSAL MOOTED INCREASED RATES AND TAXES The proposal from the study has been assessed by a technical task team. The outcome of the assessment demonstrated that the proposal satisfies the minimum requirements in terms of Section 37 (2) of the SCM Regulations. These clauses relate to the legality of the proposal in terms of procurement regulations as follows: The product or service will be exceptionally beneficial to or have exceptional cost advantages for the municipality or municipal entity; The person who made the bid is the sole provider of the product or service and The reasons for not going through the normal bidding processes are found to be sound by the Accounting Officer. The proposal’s attractive features include that eThekwini would receive an equity value of 10 percent shares in Seaworld City. EThekwini would also benefit from increased rates and taxes from the proposed redeveloped land use of the Virginia site. An artistic impression of the proposed redevelopment at the Virginia Airport Site.

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Page 1: ViRGiNiA AiRPORT ReDeVeLOPMeNT PROPOsAL MOOTeDbylaws.durban.gov.za/Resource_Centre/ewb/October... · by 2030 eThekwini will be africa’s most caring and liveable city 9 October 2015

EThEkwiniwEEkLY BuLLETin

www.durban.gov.za

9 October 2015 [Issue 5]by 2030 eThekwini will be africa’s most caring and liveable city

“KEEPInG YOu In THE KnOW”

EThekwini Municipality has received an unsolicited proposal from Seaworld Investment Holdings (Pty) Ltd recommending the

redevelopment of the Virginia airport site into a mixed-use development.The development will comprise

commercial, hotel, upmarket residential, offi ces, leisure and related developments. Total capital outlay for the project is r6.1 billion.The Municipality is not required to

fund the development and will only offer its services and expertise in the implementation of bulk infrastructure and services.The proposal also states that SeaWorld

Investment Holdings (Pty) Ltd would source funding and develop a brand new airport, fi ve times the size of Virginia airport in Scottburgh. This proposal has been treated strictly

in line with the provisions of legislations and policies governing Supply Chain Management (SCM) in this country. It has also been circulated on print media

and City’s website for comments and input by members of the public, national Treasury, Provincial Treasury and the auditor General of South africa as directed by relevant legislation. Once the City receives input and

comments, a decision whether or not to accept the proposal will be made.The Virginia airport site is currently

leased to operators for both business and recreational aviation. When the lease expired in October

2011, the City did a feasibility study to investigate alternative and optimal use of the site to advance the economic development aspirations of the City and grow the rates base. The study concluded that the site was no

longer suitable to be utilised as an airport for a variety of reasons including that the City was no longer benefi tting fi nancial returns from that use as it does not generate rates income for the City.Plans have been made to relocate

commercial fl ight operators to King Shaka International Airport with the fl ight school operators relocating to Scottburgh. Operators will not be moved from Virginia until arrangements to relocate them have been fi nalised.The City and Virginia airport operators

have agreed on the mechanisms to ensure a continuous and regular engagement until the project is concluded. This demonstrates the City’s commitment

to a cordial working relationship with Virginia airport operators and commitment to support the aviation industry.

ViRGiNiA AiRPORT ReDeVeLOPMeNT PROPOsAL MOOTeD

incrEaSED raTES anD TaXESThe proposal from the study has been assessed by a technical task team. The outcome of the assessment

demonstrated that the proposal satisfi es the minimum requirements in terms of Section 37 (2) of the SCM regulations. These clauses relate to the legality of the proposal in terms of procurement regulations as follows:

• The product or service will be exceptionally benefi cial to or have exceptional cost advantages for the municipality or municipal entity;

• The person who made the bid is the sole provider of the product or service and

• The reasons for not going through the normal bidding processes are found to be sound by the Accounting Offi cer.

The proposal’s attractive features include that eThekwini would receive an equity value of 10 percent shares in Seaworld City. EThekwini would also benefi t from increased rates and taxes from the proposed redeveloped land use of the Virginia site.

an artistic impression of the proposed redevelopment at the virginia airport Site.

Page 2: ViRGiNiA AiRPORT ReDeVeLOPMeNT PROPOsAL MOOTeDbylaws.durban.gov.za/Resource_Centre/ewb/October... · by 2030 eThekwini will be africa’s most caring and liveable city 9 October 2015

2 eThekwini weekly BulleTin issue 5

www.durban.gov.za

ETHEKWInI Mayor James nxumalo, Deputy Mayor Nomvuzo Shabalala, members of the Executive Committee and City offi cials this week met with Transnet national Ports Authority (TNPA) offi cials to discuss possible partnerships between the City and the parastatal. recognising the role the

Durban Port plays in growing the City’s and South africa’s economy, the productive meeting saw City offi cials make a commitment to work closely with TnPa to spur further development and investment in the Port and therefore the City.a working committee has

been formed for City and TNPA offi cials to work together and fi nd solutions to issues discussed at the meeting. Follow up meetings will take place where feedback will be given by the working committee.nxumalo welcomed the discussion which saw a number of presentations by TnPa and Transnet Ports authority delivered. These presentations included input on current Port operations as well as plans to expand and further invest in South africa’s most attractive Port.new projects include

expanding the cruise terminal

which will accommodate 4 000 people, have parking for 600 vehicles and a retail area. This will be a boost for the local tourism sector. Plans to expand the container

terminal were also discussed. an update on the Dug Out port was also given.nxumalo said the Durban port

was one of the biggest in africa and it was important for City leaders to better understand its operations.the city will partner

with Transnet in hosting the Port Festival to be held next year.He said the expansion of the port including the Dug Out Port was an amazing project as it would create many job opportunities as it aimed to employ between 10 000 and 20 000 people in the next 50 years.“There are a number of good

plans for the port in terms of making sure that they are maximising on the capital

investments and again in terms of exports and imports. These are some of the issues we will further deliberate on in the next meeting,” nxumalo added. Shabalala applauded

the radical economic transformation from the various Port projects and was impressed with the improvement of the cruise terminal which will have an impact on tourism.

PLANs TO DeVeLOP DuRBAN’s PORT iN FuLL sWiNG

THE City will provide skills development to assist those who want to access economic opportunities. This was to address the scourge of attacks against Municipal contractors causing disruptions to several services across Durban.In a follow-up meeting with a

group that had threatened to attack contractors,eThekwini Municipality Mayor, Councillor James nxumalo tasked various City departments to fi nd

out what skills development programmes the Municipality can offer to the group.addressing the group of

about 15 people at the City Hall, nxumalo said the Municipality would continue to engage with them. He further explained that there rules and regulations that have to be followed by the City before such a process can be implemented.nxumalo will meet with the

various department heads, before reporting back to the group. The problem of contactors being attacked started when some local residents picketed and blocked Municipal vehicles, demanding that they be hired. The pickets soon escalated into criminality when work equipment belonging to contractors and personal belongings were stolen.The attacks, which have

claimed the life of one inspector, have had dire fi nancial implications for the City, which has lost thousands of rands in stolen equipment and loss of productivity. businesses and the economy were also affected.Contractors were able to resume work after the City met with the group last month and found an amicable solution to address their grievances without further disruptions.

CITY TO PROVIDE SKILLS DEVELOPMENT IN A BID TO END ATTACKS ON CONTRACTORS

From left Transnet Port Terminals chief Executive karl Socikwa, Deputy Mayor cllr nomvuzo Shabalala, eThekwini Mayor cllr James nxumalo and Transnet national Ports authority chief Executive richard vallihu went on a helicopter ride this week as part of a Durban Port visit to strengthen relations between the city and Port authorities. Picture: GuGu MQaDi

Page 3: ViRGiNiA AiRPORT ReDeVeLOPMeNT PROPOsAL MOOTeDbylaws.durban.gov.za/Resource_Centre/ewb/October... · by 2030 eThekwini will be africa’s most caring and liveable city 9 October 2015

issue 5 eThekwini weekly BulleTin 3

www.durban.gov.za

Durban beaches are among the safest, cleanest and well maintained in South africa. This is according to the international blue Flag programme after they awarded two beaches in the City with full blue Flag status this week.The blue Flag programme

announced that uShaka beach and Westbrook beach received the full blue Flag status. While the umhlanga main beach, umgababa, umdloti main beach, umdloti tidal beach and brighton beach received the pilot status flag. The pilot status is a step towards

reaching the full blue Flag status. Mayor James nxumalo said

this is a great achievement for eThekwini and a positive boost for tourism as well as our economy. nxumalo also condemned the

littering on City beaches, and appealed to holidaymakers and residents to use the receptacles provided and become responsible for their waste and the environment. “Our beaches are consistently

well maintained which is why they are great tourist attraction sites,” said nxumalo.

a blue Flag is an international award given to beaches, boats and marina’s that meet excellence in areas of cleanliness, safety and environmental standards. In South africa, this programme is managed by the Wildlife and Environment Society of South africa. This is South africa’s 13th year of running the blue Flag and it was the first country outside Europe to join the programme. nxumalo also said Municipal

education officers run regular awareness campaigns to ensure that everyone plays their part in

keeping Durban clean.“a positive attitude can

transform the social ills, poor economic and environmental conditions in our City. It takes a concerted effort from all stakeholders to keep a City clean and we all must become ambassadors of our beautiful City. a clean environment leads to a positive attitude and better quality of life. This positive approach attracts investments, which enables growth and job creation,” added nxumalo.To view the full list of blue

Flag beaches visit www.blueflag.org.za

eTHeKWiNi AWARDeD BLue FLAG sTATus FOR iTs BeACHes

EThEkwini aT Your SErvicEEach week we focus on a key area of service delivery. October is Transport month and we will highlight service delivery initiatives that have been implemented to improve public transport in the City. The Municipality is rolling out a highly strategic transport infrastructure programme, the Integrated rapid Public

Transport network, also known as Go!Durban. Go!Durban will ensure that

commuters enjoy a safe, efficient and affordable transport network, featuring environmentally friendly as well as integrated motorised and non-motorised transportation.This r20 billion project is set

to transform public transport in our city and connect 600 000 commuters through nine public transport corridors by 2027. Construction is underway in

various parts of the City. The Municipality also encourages residents to adopt non-motorised transportation like cycling to reduce our

City’s carbon emission and promote a healthy lifestyle and sustainable environment. The Municipality has

invested r12 million in the construction of cycling lanes. Over the years the City has tarred municipal road networks spanning more than 8000 kilometres, constructed bridges and sidewalks.

Durban’s beaches are among the cleanest, safest and well-maintained in South africa. Thousands of holidaymakers visit Durban’s warm beaches all year around.

Page 4: ViRGiNiA AiRPORT ReDeVeLOPMeNT PROPOsAL MOOTeDbylaws.durban.gov.za/Resource_Centre/ewb/October... · by 2030 eThekwini will be africa’s most caring and liveable city 9 October 2015

www.durban.gov.za

Email: [email protected]

If you would like to submit feedback or contribute to eThekwini Weekly bulletin

EDiToriaL TEaMEDiTor: Tozi Mthethwa, Head of Communications • conTEnT EDiTor: Gugu Mbonambi

wriTErS: nondumiso Mathomane, Charmel Payet, Ziyanda Dlembula &

Mandisi Hlatshwayo • DESiGn anD LaYouT: Zakhe ntshingila

THE study commissioned by eThekwini Municipality into homelessness in the City is progressing well with the fi rst phase of the three phase study already completed.The study, conducted by the

Human Sciences research Council, will provide an in-depth look into the homeless situation in the City and what interventions need to be taken to address it. It will also assist in driving policy in the City in this regard.The fi rst phase consisted

of communication with stakeholders including non-governmental organisations (nGOs), government departments and the homeless.The second phase, which

will start early next year, will include lengthy, in-depth interaction with the homeless living in the Central business District and surrounding residential areas.The third and fi nal phase

of consultation will include feedback sessions and policy direction based on the fi ndings of the study.

While the study will drive positive change in the City, offi cials are currently working hard to address homelessness in eThekwini.Fifteen former street

children last week entered

the government rehabilitation centre with a further fi ve boys expected to join them. Former homeless people who volunteer at the Denis Hurley soup kitchen have also been selected to study a hospitality

course as part of skills development.nomusa Shembe from Safer

Cities said the Qalakabusha Intervention Programme which was launched last year involves departments across the three spheres of government including local, provincial and national.Interventions include outreach

programmes as well as offering psycho-social support. Shembe said they assisted

in getting treatment for drug addicts living on the street as it was vital to their holistic rehabilitation.“We don’t force anyone to

seek treatment, they must be willing to accept it. Part of the programme is assisting people get birth certifi cates and identity documents. We also embark on skills development and reunite those living in the streets with their families,” she said. Shembe said they worked closely with various nGOs and have had numerous successes. She said over 30 people have been rehabilitated and reunited with their families.

CiTY sTuDY TO DOCuMeNT HOMeLess PeOPLe uNDeRWAY

A Municipal offi cial from Safer Cities takes down the details of a homeless person as part of the Qalakabusha intervention Programme’s outreach initiative which offers assistance to those living on the street to get their lives back on track.

aS THE country celebrates Public Transport Month, it is crucial for all of us to understand that a reliable and effi cient public transport system does not only link communities and parts of the City that have been disconnected for decades, but it is also the cornerstone of our economy.The eThekwini leadership is committed to developing the Municipality from the ashes of apartheid

into a prosperous City. The residents of eThekwini are our priority and one of the ways to demonstrate our commitment to them is by ensuring that our City prospers through developing a City-wide public transport system that is safe and affordable.If the City is to achieve higher rates of growth in economic development, address unemployment and inequality, we need a vastly improved public transport

system that will bring about far-reaching benefi ts for public transport users and all residents and visitors in the City.Construction of the multi-billion rand GO!Durban project is under way with the development of the C3 Corridor from bridge City, in KwaMashu, to the Pinetown Central business District in the fi rst phase of the project.The fi rst corridor or trunk route is expected to be

operational in 2016. In 2014, GO!Durban achieved several milestones, these include the awarding of fi ve major construction tenders, engagements with community stakeholders, businesses and eThekwini citizens.

TRANSFORMING LIVES THROUGH AN EFFICIENT PUBLIC TRANSPORT

cllr James nxumaloMayor of eThekwini