Question NW221 to the Minister of Public Works and Infrastructure

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10 May 2021 - NW221

Profile picture: Graham, Ms SJ

Graham, Ms SJ to ask the Minister of Public Works and Infrastructure

Whether, with reference to the current lease agreement with Abagold Ltd at the Hermanus Harbour, her department will (a) uphold the conditions of the lease and allow the lessee to apply for a 9-year and 11-month extension or (b) follow an alternative lease renewal process requiring an invitation to interested parties; if not, why not in each case; if so, on what date will the (i) decision be made as to which process will be followed and (ii) existing lessee be advised of the outcome of their application?

Reply:

The Minister of Public Works and Infrastructure:

a) I have been informed by the Department that the lessee can apply to renew the lease as per the conditions of the lease agreement.

b) Yes. If the decision is made to follow an open tender process, the lessee can apply when the property is advertised.

i) In terms of clause 2.2 of the Lease Agreement dated 15 November 2013 which is due to expire on 31 July 2022; this Department will facilitate a request for consideration for the relevant approval as to whether option a or b are to be followed. This process is anticipated to take approximately 3 months and expected to be finalized on or before 31 July 2021.

ii) The lessee will be advised of the outcome at the beginning of August 2021.