Experience and Appointments of Relevance
FEASIBILITY STUDIES AND BUSINESS PLANS
|Year||Appointment and Client||Brief & Deliverables||Project Value|
|1989 to Present||Numerous feasibility studies and business plans for securing finance or equity participation.||A broad range of feasibility studies have been undertaken for various clients for the establishment of a viable business case and / or market assessment for a particular business or market opportunity. If the feasibility study proves that the business concept is viable, then a business plan could be compiled thereafter. Business plans have been written for a diverse range of businesses from casino’s, restaurants, brickfields and quarries, security companies, retail petrol sites, supermarkets, manufacturing concerns, service industries, and property development companies. In each instance, a comprehensive set of projected financial statements is produced in standard accounting format, including funding scenarios, with comprehensive ratio analysis and investment returns indicated. Risk analysis is also undertaken.||Varied|
PROPERTY AND INDUSTRIAL DEVELOPMENT ORIENTATED
|Year||Appointment and Client||Brief & Deliverables||Project Value|
|2017||Waterfront, marina and commercial development for the Port of Port Elizabeth. [FEL 2] Transnet National Port Authority (TNPA)||
RIC are part of the Transnet Capital Projects consortium who have been appointed by Transnet, National Port Authority (TNPA) to undertake a ‘Feasibility Study’ for the Port of Port Elizabeth (PoPE) Front End Loaded 2 [FEL 2] study which needs to formulate the business case in detail and test for financial feasibility within the market context.The deliverables for the project are:
|2015||Waterfront, marina and commercial development for the Port of Port Elizabeth. [FEL 1] Transnet National Port Authority (TNPA)||
RIC are part of the ECI Joint Venture consortium who have been appointed by Transnet, National Port Authority (TNPA) to undertake an option analysis and feasibility study for a 38 hectare portion of land initially, and then to include a further 50 hectare of land to be vacated by the manganese ore facility and petroleum tank farm by 2021. The first phase of this work was delivered in December 2015. RICs role is to undertake property valuations for the land pre and post development, evaluate the market for the proposed development, formulate a market demand projection over a thirty year timeframe, analyse a range of options formulated by the technical team with regard to the appropriateness and viability in terms of market demand, financial implications and economic and social impact within the City.
A full financial analysis was also required in order to understand the financial implications for TNPA as a landlord port, for an appointed property developer and manager for the superstructure, and for the tenants or business and tourism operators within the waterfront precinct. At this stage of the study, the infrastructure requirements are estimated to be R 250 million with the superstructure or built environment for phase one anticipated to be R 9 billion. A detailed Cost-Benefit Analysis (CBA) and Economic Impact Assessment (EIA) have also been undertaken for each of the development options.
|2015||Baakens River Valley and NMB CBD Market Assessment and Urban Renewal and Regeneration Plan.||RIC was part of a GAPP Architects led team which undertook an evaluation of the Baakens River Valley and CBD Market Assessment for the urban renewal and regeneration of these precincts including St Georges Park and the connection with the existing port. An overview of the NMB economy, tourism, culture and heritage sector, property market and the socio-demographic situation was required in order to formulate an accurate and realistic market demand forecast and economic impact assessment over a twenty-year horizon. The redevelopment plan proposes twelve interventions at an estimated cost of R 300 million to the NMBMM which will unlock and facilitate private sector development of approximately R 2.9 billion and stimulate economic development within the heart of the City. A detailed financing plan was prepared together with a Cost-Benefit Analysis (CBA) and Economic Impact Assessment (EIA).||R2.9 bn|
|2014 to 2016||NMB Vision 2030||RIC is a founding member of this strategy and planning ‘Thinktank’ which is a collaborative effort between the Nelson Mandela Metropolitan University (NMMU) and the Nelson Mandela Bay Business Chamber (NMMBBC) and has interactions with all members of civil and public society within Nelson Mandela Bay (NMB) Municipality. The vision is bold and has been crafted after a careful analysis of the socio-demographic and economic landscape within the City, primary industries and trends, emerging trends and key focus areas such as the maritime industry, tourism, skills development, infrastructure provision and competitive cities enablers. The Vision 2030 is an ongoing policy document and has been well received by all City stakeholders and is assisting in informing strategic direction in the City.|
|2014||Indwe Aggregate and Sand Quarry for the East Cape Development Corporation (ECDC)||The ECDC had been approached by a BEE company which needed to finance a dolerite quarry to produce aggregate, rock and sand in the Indwe District, east of Queenstown. Perform a detailed market assessment to establish the need for the quarry including who the competition is together with their prices and product volumes. Undertake a feasibility study to evaluate the capital expenditure and operating costs. Prepare a business plan which incorporates a loan funding structure, risk analysis and full ratio and performance analysis.||R25 m|
|2013||PRASA Motherwell passenger rail economic impact assessment.
In collaboration with Gibb Engineers.
|Perform an economic impact assessment on both the construction and operation of the proposed passenger rail service to link Port Elizabeth CBD to Motherwell, and then later, to Coega. Undertake a socio-demographic study of the area to determine the service delivery and demographic benchmarks. Determine the optimum tariff structure based upon the anticipated passenger volumes. Analyse additional positive economic impacts such as a decrease in accidents costs, improved productivity through travel time savings and the benefits of reduced carbon emissions. Compile a financial executive summary on the PRASA corporate template.||R1.5 bn|
|2013||Foxwood Dam feasibility study. In collaboration with Arup Engineers.||Part of a team evaluating the feasibility and viability of a storage dam on the Koonap River to supplement the supply of domestic water to the town of Adelaide within the Nxuba Municipality in the Eastern Cape, on behalf of the Department of Water Affairs. Establish a socio-economic profile for the municipal area in order to perform water demand analysis of the medium to longer term for the viability and Cost-Benefit Analysis required to evaluate the economic impact of the project.||R2.3 bn|
|2012||Nelson Mandela Bay Industrial Development Strategy
Client: NMBBC & NMBMM.
|RIC was part of a team which undertook an evaluation of the NMB economy and socio-demographic situation in order to formulate an industrial strategy and policy for the city to halt a declining economy. A socio-demographic and economic profile of the City over ten years was constructed and analysed. Global, regional and local trends were evaluated together with the specific primary industries in the City, and a series of recommendations and strategies were formulated in order to provide guidance to business, the public sector and all stakeholders.||Varied|
|2012||Plettenberg Bay Small Boat Harbour and marina:-
Economic Impact Assessment (EIA) (Western Cape Marina Investments (Pty) Ltd)
|The client is in the process of preparing a commercial development plan for a small boat harbour and marina, with associated retail, hotel, commercial and residential components in the Piesangs River estuary behind the Beacon Isle Hotel. In terms of the Environmental Impact Assessment requirements, an Economic Impact Assessment was required in order to gauge the public benefit in terms of socio-economic impact to the region. A detailed Cost Benefit Analysis was undertaken in order to evaluate all of the positive and negative factors and propose mitigation measures.||R1.8 bn|
|2012||Return Effluent (RE) water project within Nelson Mandela Bay for the Coega Development Corporation||Perform an economic impact assessment on both the construction and operation of the proposed Return Effluent facility to be constructed within the Nelson Mandela Bay Metropolitan Municipality (NMBMM) using the Fishwater Flats Waste Water Treatment Facility as the source of water, for the supply of industrial water to the Coega Industrial Development Zone and Deepwater Port. Establish a socio-economic profile for the NMBMM in order to be able to benchmark the impact of the project.||R1.8 bn|
|2012||Pretoria Automotive Supplier Park Freight Consolidation Centre. (Department of Trade and Industry, DTI)||The study was funded by the DTI who are interested in establishing a Freight Consolidation Centre in the Pretoria Automotive Supplier Park in order to increase the competitiveness of the Pretoria Auto-motive Cluster. The study entailed an evaluation of Consolidation Centre best practice, the SA automotive industry and its prospects, the current logistics and supply chain practices, road and rail freight volumes and options, and the overall financial feasibility of the centre based upon a set of operating parameter’s and volumes committed.||R500 m|
|2012||Coega IDZ analysis of the land valuation model and pricing strategy.||The Coega IDZ needed to evaluate their competitive position within the industrial property market and the national policy framework for IDZs, and refine their industrial tenant selection criteria and the financial parametres to be used for providing turnkey property developments to these industrialists in a manner that ensured the sustainability of the IDZ. An analysis of national and international property leasing precedents was required to develop the financial model to be adopted for tenant placement, together with the legal and taxation implications of long-term leasehold land transaction for all parties.||R2.59 bn|
|2011||Nelson Mandela Bay Stadium:- Analysis and business plan. (Mandela Bay Development Agency)||The Nelson Mandela Bay Municipality (NMBM) has constructed an R 2.4 billion soccer and rugby stadium for the FIFA Soccer World CupTM, which now needs to become self-sustaining. Assist with the preparation of an economic overview of the city and the stadium, and formulate masterplan development proposals that can be implemented to improve the profitability of the stadium over the medium to long-term. Prepare financial feasibility studies and business plans for presentation to the private sector for bid responses.||R2.4 bn|
|2011||Milo Granite Mining (Pty) Ltd||Prepare a financial feasibility study and business plan for a granite mining business in the Komga District within the Eastern Cape in terms of the prescribed conditions of the Mineral and Petroleum Resources Development Act of 2002. Oversee the preparation of the Social and Labour Plan, the Mining Work Programme and the Environmental Management Plan as required by the Act. The licence was successfully attained during 2009.||R10 m|
|2010 to 2013||East London Industrial Development Zone (East London Industrial Development Zone – ELIDZ)||The initial feasibility study and business plan was undertaken during 2000, together with a transport analysis and strategy to utilise the port of East London as a business-enabling tool for the IDZ. Subsequent to this a range market assessments, feasibility studies, financial analyses and annual business plan updates have been undertaken. We also participated in the evaluation of the potential for Renewable Energy in the ELIDZ and the Eastern Cape province and assisted with a Photo Voltaic project for 75 MW of off-grid electricity.||R2 bn|
|2002 and 2003||East London Port expansion. (National Ports Authority and ELIDZ)||Appointed consultant for the preparation of various feasibility studies for the expansion of the Port of East London and the construction of a container terminal on the west bank of the port. Stakeholder engagement and the integration of the proposed development into the surrounding business community and civil society. Freight and logistics analysis was needed as well as an indication of the import and exports through the port.||R1.5 bn|
|2008||East London IDZ retail, commercial and service phase. (ELIDZ)||Investigate the demand and assist the East London IDZ with the preparation of an Expression Of interest (EOI) from interested and capable developers and financiers, to participate in the development opportunities identified within the 48-hectare former golf estate alongside the IDZ.||R1 bn|
|2007||Nelson Mandela Bay Convention||Assist the MBDA with the drafting of a Request For Proposal (RFP) document and legal framework for the securing of an operator and financier for a 2,000 seat plenary convention centre within the NMBM. Assist with the coordination and implementation of the RFP process and the various stakeholder engagements that are required.||R850 m|
|2009||Kings Beach precinct economic evaluation and development assessment. (MBDA)||On behalf of the MBDA investigate the development potential and economic impact of the consolidated Kings Beach precinct under the assumption that the current constraints were removed and that unfettered development could take place. Evaluate the financial returns and cost implications for the municipality if they were to act as Master Developer for the development potential of the precinct.||R36 bn|
|2010||Coega IDZ and NMBM housing requirements for the PetroSA oil refinery. (NMBM)||An evaluation of the demand for residential accommodation within the NMBM was performed, together with an analysis of the peak housing requirements for the staff and construction personnel of the proposed PetroSA Oil Refinery in the Coega IDZ. Various property development alternatives were investigated for the provision of the required additional accommodation needs.||R500 m|
|2003 to 2007||Straddle Carrier Implementation. Port of Port Elizabeth and Cape Town. (African National Engineering)||African National Engineering (ANE) together with Kalmar Engineering (Finland) procured the South African Port Operations (SAPO) contract to supply 120 new twin motor container handling Straddle Carriers (SC) at R 6 million each. Project managed the delivery, commissioning and servicing of 15 SC in the Port of Port Elizabeth and 45 SC in the Port of Cape Town.||R720 m|
|2003||Rail upgrade between East London and Gauteng
East London Industrial Development Zone. (NPA & ELIDZ)
|Evaluate the current rail situation between East London and Gauteng and propose scenarios for additional cargo volumes to use an upgraded railway line. The scenarios were evaluated from a logistical point of view to calculate rolling stock requirements, as well as from a financial point regarding the operating revenues to Spoornet or a private operator, and the cost savings to be passed on to the potential users, DCSA and BMW.||R3 bn|
|2001||Swaziland Millennium Hotel and Conference Centre.
|Working in association with the London based project and facilities managers, EC Harris and the South African office of KPMG, prepare a financial feasibility study and demand forecast for a 500-room five-star hotel and linked conference centre close to Mbabane in Swaziland.||R1.5 bn|
|1998 to 2000||William Moffat Retail Park in the NMBM
(Knight Street Incorporated)
|Acting on behalf of the client and property developer, Knight Street Incorporated, prepare financial feasibility studies and secure the required finance for the multi-million Rand retail development in the NMBM. Approach and negotiate with various national tenants to participate in a greenfields concept for the Eastern Cape. Assist with the project management and implementation of the construction and commissioning of the development.||R90 m|
|2000 and 2001||Aqaba Special Economic Zone Authority (ASEZA) (The Services Group & World Bank)||Worked alongside the World Bank and The Services Group from Washington DC, with the formulation and implementation of a 700 square kilometre Special Economic Zone (SEZ) together with the expansion and reorientation of three ports. Prepare twenty-year financial forecasts and property development scenarios for land parcel demand and facility development within the SEZ.||R100 bn|
|Year||Appointment and Client||Brief & Deliverables||Project Value|
|2010||Arts and Culture business plan for the Athenaeum Building and ArtEC Gallery in Bird Street. (Mandela Bay Development Agency)||The Mandela Bay Development Agency on behalf of the Nelson Mandela Bay Municipality successfully applied for a Lotto Grant in order to effect improvements and provide management support to certain arts and culture buildings in the Central Precinct of the municipality. Our brief was to write the business plan for the renovation and upgrade of the 110-year-old Athenaeum Building and the ArtEC building. Inherent in the brief were an evaluation of the Arts and Crafts sector in the municipality and the commercial feasibility of art gallery and entertainment or hospitality related facilities within the precinct.||R3.2 m|
|2010||Kouga Municipality Economic Impact Assessment for a wind farm development. (Red Cap Investments)||Red Cap Investments is a privately funded developer of Renewable Energy projects who are in the process of establishing a 300 Mega Watt series of wind farms within the Kouga Municipal areas of St Francis Bay, Cape St Francis and Oyster Bay. Inherent in the Environmental Impact Assessment is the requirement for an Economic Impact Assessment. Our brief was to establish the socio-economic and tourism profile of the area to be affected by the wind farms, investigate the costs and benefits to the affected society at large, and propose actions for mitigation of any anticipated negative impacts.||R4.5 bn|
|2010||Sundays River Agri-Tourism Business Plan. (Cacadu District Municipality)||The Sundays River Local Municipality needed to investigate the impact on tourism of the establishment of an ‘outsourced’ tourism unit to promote and develop agri-tourism in the area. A tourism profile was developed and the business plan assumptions modelled over a 20-year timeframe to measure the economic impact of the tourism interventions.||R150 m|
|2001 to 2006||Statue Of Freedom (NMBM and MBDA)||As project initiators, perform the pre-feasibility study for the project and then assist the client, the Nelson Mandela Bay Municipality (NMBM) and Mandela Bay Development Agency (MBDA) with the performance of a feasibility study, architectural competition and business plan.||R100 m|
|2004||New Brighton Renaissance Art Park (NMBM)||Perform a property feasibility study for a development proposal for the establishment of a tourism and commercial centre with a residential component within a municipal disused quarry alongside New Brighton.||R150 m|
|2005||Bethelsdorp Local Economic Development (BDT and NMBM)||As part of an integrated Local Economic Development strategy, compile an overview report on the tourism industry within the NMBM and more specifically within the Bethelsdorp context.||R50 m|
|2006 to 2007||Integrated Beachfront Development Project (NMBM & Afri- Coast Engineers)||Perform an Economic Impact Assessment and Cost-Benefit Analysis study on the integrated beachfront projects currently being implemented along the coastline of the NMBM. This study required the development of a tourism profile to determine the impact of the various R 100 million value infrastructure projects.||R100 m|
|2008||Addo Elephant National Park economic evaluation of tourism impact. (SA National Parks & World Bank)||The World Bank is providing infrastructure finance to South African National Parks and required an economic evaluation and cost-benefit analysis of the impact of this expenditure. This study evaluated the economic impact and tourism demand and spending patterns within the Addo Elephant National Park and of the abutting businesses and tourism establishments.||R400 m|
|2009||Kings Beach precinct development potential, economic & tourism impact. (MBDA & NMBM)||The Nelson Mandela Bay Municipality is considering taking possession of all of the land parcels within the Kings Beach precinct and required an economic evaluation and cost-benefit analysis of the development opportunities which could be realised within the precinct as well as the costs to achieve the development components over time.||R16 bn|
RENEWABLE ENERGY ORIENTATED
|Year||Appointment and Client||Brief & Deliverables||Project Value|
|2014||CEF I GW Solar Park in Upington. In collaboration with Arup Engineers.||Perform an economic impact assessment on both the construction and operation of the proposed 1 GW Solar Park near Upington. Undertake a socio-demographic study of the area to determine the service delivery and demographic benchmarks. Perform a detailed Cost-Benefit Analysis for the technology mix of both Photo Voltaic (PV) and Concentrated Solar Power (CSP) within the Solar park. Investigate the potential for this Solar Park and solar energy in South Africa to create localised business opportunities in the solar energy value chain. Provide a series of financial models for the six technology options evaluated and provide economic and financial indicators for evaluation and comparison. Undertake a risk analysis of the scenarios.||R90 bn|
|2006 to 2007||NMBM renewable energy projects.||Lereko Energy formulated a winning bid to provide renewable energy projects to the Nelson Mandela Bay Municipality and we were appointed as project managers to facilitate the process, which entailed coordinating the private sector service providers, designing financial structures and potential carbon credit regimes and the conclusion of Power Purchase Agreements. The projects investigated were Land Fill Gas, Solar Water Heaters, Wind Farms, waste incineration and bio-digestion, and Demand Side Management together with Energy Efficiency. The project was ultimately sold and transferred to the Central Energy Fund (CEF)||R1.5 bn|
|2009||Photo Voltaic 30MW project at Prieska.(Ikwezi Power)||Assist the financial modelling and project finance structures, including carbon credits in terms of the Kyoto Protocols Clean Development Mechanism (CDM), in order to develop the business case and secure the required partners and funding.||R210 m|
|2009 to 2010||East London IDZ and Eastern Cape DEDEA Renewable Energy Strategy (DEDEA & ELIDZ)||We were part of a consortium led by AGAMA Energy which completed an analysis of the renewable energy opportunities within the Eastern Cape, and more specifically for the East London Industrial Development Zone. The strategy included an analysis of the manufacturing and Independent Power Producing (IPP) opportunities in order to mitigate the energy security threat in the province.||R10 bn|
|2010 to 2011||Red Cap 300MW wind farm in the Kouga District.||Prepare the Economic Impact Assessment for a 300 Mega Watt wind farm in three phases for the towns of St Francis Bay, Cape St Francis and Oyster Bay on behalf of the Independent Power Producer, Red Cap Investments in terms of their Environmental Impact Assessment requirements. This analysis included a demographic overview of the affected region and an assessment of the socio-economic activities and opportunities that the project would provide within the region.||R4.5 bn|
|2011 to 2012||Langa Energy and ELIDZ Photo Voltaic 300MW project at Berlin, Eastern Cape.||Langa Energy has formed a joint venture with the East London IDZ and is planning to establish a 300 Mega Watt Photo Voltaic energy farm alongside the industrial area of Berlin. We have been assisting with the project finance, financial modelling and economic impact aspects of the project, including carbon credits and positioning the project within the Department Of Energy’s current competitive procurement programme for Independent Power Producers (IPP).||R2.1 bn|
|1998||Green Charcoal production facility near Kareedouw using Black Wattle as input.||Prepare a business plan and bankable document in order to raise finance from the Industrial Development Corporation in order to fund a greenfields charcoal production facility at Two Streams in the Langkloof Valley. The project collaborated with the Working For Water projects to eradicate Black Wattle from the valley and used self-fuelling vapour incinerators and continuous retorts. A community programme for biomass collection and transport was initiated to stimulate SMME development.||R25 m|
|2009||East London Waste Transfer Station to be established on the West Bank within the ELIDZ with Gibb Engineers.||
Due to increased waste volumes on the East Bank of East London and the long delivery distances to the existing landfill sites, and investigation and business plan was undertaken by Gibb Engineers on behalf of the East London Industrial Development Zone (ELIDZ) to investigate the viability of the establishment of a Waste Transfer Station (WTS) with the ELIDZ.RIC assisted Gibb Engineers with the study which investigated current and future waste flows, the nature of these flows and their origins, capital and operating costs and the optimum tariff structure that could be used to render the operation financially viable.
The WTS was found to be financially viable and has been constructed and is operating on the West Bank.
|2015||ADM Landfill Waste site location analysis and economic impact assessment with Gibb Engineers.||The report compares the economic and financial scenarios for three Transfer Stations to service a landfill site for three small towns in the Eastern Cape, with a view to determining the most optimum capital cost, operating cost and tariff structures for the preferred option selected. RIC assisted Gibb Engineers with the financial and economic assessment based upon the engineering scenarios generated and the capital, operating and tariff structures formulated. The sites are in Alice, Peddie and Adelaide within the Amatole District Municipality (ADM)|
PUBLIC SECTOR FINANCE ORIENTATED
|Year||Appointment and Client||Brief & Deliverables||Project Value|
|2016||Review and adjudicate the bids received from the private sector for a PPP Waste Park for the NMBM and National Treasury.||
The Nelson Mandela Bay Municipality (NMBM) has undertaken a detailed feasibility study on the establishment of a modern and fully functional ‘Waste Park’ to include recycling and waste-to-energy and ultimately lead to a ‘zero-waste to landfill’ situation on a Public Private Partnership (PPP) basis.The NMBM has issued a Request For Proposals (RFP) and received seven private sector bid responses. RIC has been appointed by the NMBM to assist in the assessment of these bids together with National Treasury, who will underwrite the financial undertakings of the NMBM to the private sector.
RIC has been working closely with the appointed engineers and other professionals to evaluate the bids in terms of the technical, legal and financial specifications contained in the Public Sector Comparator (PSC) feasibility study for the Waste Park.
|2012||Mandela Bay Development Agency (MBDA): Finance raising strategy.||The MBDA is a municipal entity of the Nelson Mandela Bay Municipality (NMBM) and receives the majority of its funding from the NMBM. The brief was to develop a finance-raising strategy which will make the MBDA less reliant on the parent entity, the NMBM. This entailed scanning the national and international development finance institutions (DFI) for various funds, their requirements and eligibility criteria. The MBDA projects were aligned to these DFIs and then specific business plans written in order to secure finance for current MBDA projects.||R150 m|
|2012||Nelson Mandela Bay Municipality (NMBM) Long Term Financial Sustainability Plan.||Long-term financial planning forms a key element of the legislatively prescribed Integrated Development Plan (IDP) required by all municipalities. The Nelson Mandela Bay Municipality (NMBM) enlisted the support of a firm of engineers to evaluate the various directorates capital and operating plans, with RIC coordinating these studies into a long-term financial planning tool to provide strategies, assumptions and indicators that will enable Council to make informed decisions to ensure financial sustainability, and at the same time meet the increasing service delivery demands of all communities with limited available financial resources. The financial analysis has required a full investigation of the employment, capital and operating budgets in the context of the rates and tariff structures for the various directorates.||R8 bn|
|2009||Review of the Eastern Cape Inter-Governmental Games and a future Business Plan.
|The Eastern Cape Government participates in regional Inter-Governmental Games between neighbouring provinces and countries and required a review of the past year’s participation and a new business plan and budget for the forthcoming Games. RIC performed a review of the past Games finances and uncovered certain inconsistencies and procurement issues, and provided a coherent business plan which allowed for closer budget adherence and improved procurement for the following Games.||R7.6 bn|
|2011||Nelson Mandela Bay Municipality Nature Reserve Partnerships. (NMBM)||The Nelson Mandela Bay Municipality (NMBM) has embarked upon a process whereby it will enter into long-term lease arrangements with the private sector for the operation and management of eleven municipally owned nature reserves and parks. The Development Bank of South Africa (DBSA) has indicated a willingness to fund the infrastructure upgrades required by the appropriate private sector partners. We engaged with the DBSA to understand their funding requirements and criteria and drafted a funding overview report to be used by the municipality and the private operators for their funding applications.||Varied|