Question NW3676 to the Minister of Public Works and Infrastructure
28 October 2022 - NW3676
Siwisa, Ms AM to ask the Minister of Public Works and Infrastructure
In light of the fact that the Development Bank of South Africa (DBSA) has been at the helm as the implementing agency for the Telkom Towers project since 2015, and to date the project has not been completed despite numerous promises to do so, what are the reasons that the DBSA is still retained as an implementing agency despite the fact that the Portfolio Committee on Public Works and Infrastructure does not have jurisdiction over DBSA but the Independent Development Trust which is an entity within her department and has a responsibility to provide infrastructure according to its mandate?
Reply:
The Minister of Public Works and Infrastructure
Background
The Department of Public Works and Infrastructure (“DPWI”) was informed by the Telkom Retirement Fund (“TRF”) itself on 07th March 2015 that the subject property was still on the market, which led to the Department investigating the viability of the property and an eventual acquisition in 2015 for use as government accommodation.
The Telkom Towers Complex comprised of 10 buildings that measure 221,954m² with a gross lettable office accommodation area of 115,480m². There are 2234 parking bays totalling 60,624m². However, the PPS building which, until today, remains a National Key Point Building would not be available to a new owner as Telkom required to lease this building indefinitely.
The migration plan from SAPS into Telkom towers was delayed since December 2015.
Response
In order to respond to the immediate upgrade requirements for the Telkom Towers North Building and Annex buildings, a project was commenced through the Development Bank of Southern Africa (“DBSA”) as Implementing Agent to DPWI, in accordance with the SAPS migration plan. The site was handed over to the contractor on the 24th June 2019 and practical completion was obtained on 31st August 2021. The DBSA has not been an implementing agent for Telkom Towers since 2015, as they were only engaged to complete two buildings out of the entire complex.
The DBSA is a government owned entity and development finance institution under the National Treasury. The Independent Development Trust (“IDT”) is also a government owned entity under the DPWI. On or about 22 June 2022 the National Treasury approved the inclusion of IDT as an Implementing Agent for the DPWI. The DPWI and IDT are currently finalising the Memorandum of Agreement for collaboration and cooperation as an Implementing Agent on DPWI’s infrastructure portfolio.