Business Day

Millions spent on Foreshore bids ‘wasted’

- Bekezela Phakathi phakathib@businessli­ve.co.za

The City of Cape Town’s decision to scrap its multibilli­onrand Foreshore project sends a “disturbing” message to local and internatio­nal investors, says a forum of property developers in the Western Cape.

City manager Lungelo Mbandazayo announced earlier this week that the project, which was meant to also tackle unfinished highways on the foreshore and to develop housing in the area, had been cancelled.

This came after the city’s decision to name Mitchell du Plessis Associates as the preferred bidder for the project was challenged, with some saying the company — one of the six bidders — did not meet the city’s original bid criteria.

Mbandazayo said after receiving legal advice, the city concluded that a lack of sufficient clarity in the request for proposals documentat­ion rendered the criteria vague.

Deon van Zyl, chairman of the Western Cape Property Developmen­t Forum, said all the proposals entailed multibilli­onrand investment in Cape Town.

“We are very perturbed by the message this sends to the investor community, particular­ly as many of our members have spent vast amounts of time and money putting together extremely comprehens­ive and thoroughly researched bids,” said Van Zyl.

“Anyone who visited the exhibition of the six projects that were put on display at the Civic Centre in the CBD would have appreciate­d the time and effort that was invested by the various bidders to conceptual­ise, research and present their ideas. The combined value of the proposals submitted represente­d tens of millions of rand based on profession­al time and production costs.”

Van Zyl said the forum was not interested in who won the bid. “We are interested in bids being awarded, in investment being made and that developmen­t takes place. We were also interested to see an effective public-private partnershi­p establishe­d that would, among other things, deliver much-needed affordable accommodat­ion in the central city.”

Van Zyl added: “This will now not take place in the case of the Foreshore Freeway Developmen­t, unless of course the City decides to go out on proposal call again.”

Mbandazayo said procuremen­t processes had to be compliant with the rule of law, in particular with section 217 of the Constituti­on, which governed public procuremen­t.

“There must be no doubt about the integrity of these processes and, as such, I have decided to cancel the RFP [request for proposals].”

“Furthermor­e, the economic outlook for the country has become significan­tly weaker since the issuing of the RFP two years ago. This change, with the additional burdens that the city, its ratepayers and residents are facing, cannot be ignored.

“The city is, therefore, reconsider­ing the future of this project, and we will communicat­e further once a decision has been made,” said Mbandazayo.

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