NATIONAL COUNCIL OF PROVINCES
FOR WRITTEN REPLY
QUESTION 309
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 12/08/2011
(INTERNAL QUESTION PAPER: 22/2011)
Mr M J R de Villiers (DA-WC) to ask the Minister of Basic Education:
(1) Whether, with reference to the statement by her department that
the increase of 34,5% in administration expenditure is as a
result of the office accommodation sub-programme and the public
private partnership (PPP) unitary fee, her department will
provide a detailed cost analysis of the total budget to be spent
on the building(s) to be constructed; if not, why not; if so,
what are the relevant details;
(2) what (a) was the total amount spent on consultancy fees, (b) are
the names of the consultants and (c) amount was spent on the
unitary fee of the PPP;
(3) (a) what was the total amount spent on office equipment and
furniture, (b) what amount was spent to relocate to the new
building and (c) from which fund was this amount sourced?
CW377E
ANSWER:
1. The PPP agreement for the financing, design, construction,
operation and maintenance of office accommodation was signed on
20 April 2007 and construction commenced during the 2007/08
financial year. Due to the restructuring of Government and
consequently the establishment of the Department of Basic
Education and the Department of Higher Education and Training a
process was followed to determine which Department should occupy
the new office building that was meant for the Department of
Education according to the PPP contract. Through this process
the contract was transferred to the Department of Basic
Education which commenced occupying the new office building as
from 15 February 2010. The unitary fee is payable for a period
of 25 years and will be adjusted annually with the CPIX. At the
end of the 25 years contract period the entire property,
including the building and its furniture and equipment, will be
transferred to the Department of Basic Education. The
commencement of the PPP accounting term is the date from which
the Department of Basic Education is entitled to exercise its
right to use the asset. The private party in turn assumes an
obligation to provide such services, normally in accordance with
performance requirements set by the Department of Basic
Education. Therefore the unitary fee as indicated is not only
for accommodation, but also includes the transfer of risk,
building maintenance provision and maintenance of furniture and
the payment of all utilities i.e. cleaning services, security
services, etc. The unitary fee therefore contains payments for
the capital expenditure, which includes the design and
construction of the building, as well as a maintenance segment.
2. (a) The total amount spend on consultants for the 2010/11
financial year amounts to R520 838.07 and R18 986.70 has been
paid to-date for the 2011/12 year.
(b) Turner & Townsend
(c) The total unitary payment for the 2010/11 financial year was
R122 961 342.75..
3. (a) The amount for office equipment and furniture are included
in the capital costs and are included in the unitary fee to be
paid to the Private Party.
(b) The amount for the relocation to the new building is also
included in the unitary fee to be paid to the Private Party.
(c) The amount is sourced from the Office Accommodation fund.