Civil projects keep industry alive
DESPITE SA's economy taking a knock from higher inflation and an accompanying increase in interest rates this year, the building industry's civil engineering sector has shown robust growth. The growth was not experienced throughout the industry though, with the residential sector showing pedestrian growth. Building Industries Federation SA GM Pierre Fourie said although residential construction was "moving sideways" the sector was not in negative territory.
(©www.bday.co.za)

Durban gearing up for new development projects
DURBAN is gearing up for massive new development in the city itself and in the northern region of the eThekwini Unicity. Construction has started at last on the Point waterfront, in which the council is investing R657m. It will include a marine theme park with facilities for swimming with dolphins and having a "shark experience", a state of the art aquarium and retail and entertainment centres. Development in Umhlanga, Umdhloti and Ballito is being spurred by the prospect of the long-awaited King Chaka international airport at La Mercy being completed by 2006.
(©www.bday.co.za)

Taxpayers foot bill for Buthelezi home repairs
DURBAN More than R740000 of taxpayers' money has been spent over the past eight years on upgrading, maintaining and beautifying the Ulundi home of Home Affairs Minister Mangosuthu Buthelezi. This has been revealed in the auditor-general's report now before the KwaZulu-Natal legislature's standing committee on public accounts, which is chaired by Mike Tarr.
(©www.bday.co.za)

Acsa rises to the challenge in turbulent conditions
THE drastic deterioration of global airline market conditions over the past year has posed big challenges for the Airports Company of SA (Acsa), forcing the organisation to develop new markets and revenue streams. The company's response to these challenges has played a key role in allowing Acsa to post solid financial results for 2001-02. In the year to March 31, net profit grew 15% to R409,8m on a 16% rise in revenue to R1,3bn against predictions late last year that the organisation would post stagnant profit, at best.
(©www.bday.co.za)

Murray & Roberts impresses market
THE share price of engineering group Murray & Roberts rocketed 10,22% to close at a new year-high of R10,25 yesterday, after the company announced an impressive surge in profit for the year to June, and as the benefits of an internal overhaul became clear.
(©www.bday.co.za)

Murray & Roberts plans to go shopping
ENGINEERING group Murray & Roberts had a war chest of R1,4bn and was on the acquisition trail, finance director Roger Rees said yesterday. He was briefing analysts on the remarkable rebound in the group's fortunes, which led to impressive financial results for the year to June, including a doubling of headline earnings from 76c to 155c a share.
(©www.bday.co.za)

Group confirms construction sector recovery
Construction giant Murray and Roberts believes prospects for its major project capabilities in South and southern Africa have improved in line with higher levels of fixed investment. This, M&R says, also offers increased levels of opportunity to its supplies and services businesses, all of which hold leading market positions in the region
(©www.engineeringnews.co.za)

New niche opened by small firms
SMALL to medium-sized companies seeking an up-market address have largely been neglected by property developers. Residential conversions to offices have filled the gap to some extent, but these inevitably involve something of a compromise.
(©www.bday.co.za)

Absa to open property office in the UK
AS PART of Absa's drive to reduce its risk exposure by entering overseas markets, the banking group said yesterday that it would be opening up a commercial property office in the UK. Absa said it wanted to derive more than 30% of its income from foreign operations within five years, and the commercial property division would be one platform which Absa would use to meet this longerterm objective. At the moment, the group derived only 10% of its earnings from offshore operations.
(©www.bday.co.za)

Depression in office market seen as worldwide phenomenon
SA IS not alone in experiencing depression in the office market it appears to be a worldwide phenomenon according to the latest office property market index for Europe, Middle East, and Africa compiled by consulting group CB Richards Ellis. "The trend in prime office rents throughout the region remains firmly downwards," says the index. "It is a tenant's market and will remain so for some time," says CB Richards Ellis associate director Michael Haddock. "We expect rents to continue falling for about the next 18 months, but at a slower rate," says Haddock.
(©www.bday.co.za)

Oversupply of space no good news to Martprop
PROPERTY fund Martprop increased revenue to R178,6m from R173,3m, but saw headline earnings drop to R146,3m from R147,9m for the year to June. Martprop, which is managed by Marriott Property Fund Managers, said continuing market weakness due to poor economic growth, high real interest rates and the extensive oversupply of space in certain sectors of the property market saw it only maintaining its distributions to unit holders.
(©www.bday.co.za)

Subdevelopers move onto Royal Ascot
THE first subdeveloper has moved onto Investec's new Royal Ascot residential development at Milnerton race course in Cape Town. Ishmael Essa's property developing company, Asrin Property Developers, is to roll out 57 freestanding homes in the first phase of the project and 50 in the second. Asrin purchased 4ha of land alongside the proposed entrance boulevard to Royal Ascot, a development project managed by Rabie Property Projects and expected to deliver 1300 residential units in a gated community.
(©www.bday.co.za)

Mortgage originators tying in with agencies
SA's major lenders expect mortgage originators will be generating more than half of all new home loan business within the next year despite the decline in the number of originators. When the National Association of Mortgage Originators (Namo) was formed last year, there were more than 80 origination companies on the banks' lists, says Rudi Botha, MD of BetterBond.
(©www.bday.co.za)

Brookrail project goes ahead
THE 16-year wait for a consortium led by JHI Real Estate for the green light to develop the 16ha Brookrail site near Cape Town's harbour is over. The delay was due mainly to the inaccessibility of the site. Development rights depended on a road being built to link the site to the nearest main thoroughfare. For all these years Western Cape's administration was not in a position to contribute to road construction costs, and the land owners were not prepared to foot the multimillion-rand bill alone.
(©www.bday.co.za)

The killing of Cenprop
A property scandal is breaking. Property unit trust (PUT) Cenprop has lost R120m - 23% of its net asset value - in six months. Has Cenprop's property manager, JHI, been incompetent? Or has the value been engineered down to favour the companies that will now buy Cenprop's portfolio? Or both?
(©www.fm.co.za)

Women want room in the building industry
Women want a bigger piece of the building industry's pie. This was the message from women attending a "building industry summit" at Peninsula Technikon on Tuesday. Technikon vice-rector Brian Figaji and Tasneem Essop, Western Cape MEC for transport, public works and property management, opened the gathering. Essop said that last year South Africa had 14 900 professional engineers, of whom only 252 were women. "The picture becomes even more bleak if one tries to establish what percentage of them are black women," she said.
(©www.iol.co.za)

Consani grows in tough conditions
CONSANI Engineering has grown its share of the world tank container market to 37% from 25% last year, despite tough market conditions. It is now the world's largest manufacturer of tank containers, which are used mainly to transport specialised chemicals. The company also increased its turnover about R200m in the past year.
(©www.bday.co.za)

Australian subsidiary of Aveng posts sound results
THE Australian pipeline subsidiary of SA engineering firm Aveng reported a healthy set of financial results yesterday, suggesting that it is becoming more of an asset than a liability.
(©www.bday.co.za)

Terminal will be ready for titanium exporter
The R54-million expansion of the Kusasa bulk terminal at Richards Bay, in Kwazulu-Natal, will be completed in October, well before Ticor South Africa’s new furnace at Hillendale starts producing titanium slag, which will take up all the additional capacity.
(©www.engineeringnews.co.za)

Construction sector building skills base
South Africa’s construction industry is preparing to roll out a R50-million project to fast-track thousands of experienced workers in the construction industry to formal trade qualification standards – and better paying jobs.
(©www.engineeringnews.co.za)

Project to flatten SA's tyre mountain
The project to solve the increasingly serious waste (scrap) tyre problem in South Africa is expected to be launched early next year, with an aim to support the local tyre industry’s bid to ensure a cleaner environment and increase tyre safety on South African roads
(©www.engineeringnews.co.za)

Southern African banks in big gas-project deal
Petrochemicals giant, Sasol, has announced the appointment of the Development Bank of Southern Africa (DBSA) and the Standard Bank Group as joint lead arrangers for the debt financing of the Mozambique natural gas project.
(©www.engineeringnews.co.za)

Gautrain enviro study ready for public comment
A series of public meetings will be held in Midrand, Sandton, Rosebank, Kempton Park, Pretoria and Centurion, during September, to present the findings of the Environmental Impact Assessment (EIA) undertaken for the proposed Gautrain rapid rail link.
(©www.engineeringnews.co.za)

SAFCEC NEWS

CPAF INDICES – JULY 2002

The CPAF Indices for July 2002 have been published by the STATSSA and an amended schedule is available here.

SAFCEC PRESIDENTIAL AWARD
Members are reminded that each year the President of SAFCEC makes an award for some outstanding achievement by a Member company during the year. The award is made on the personal recommendation of the President but the conditions for consideration are fairly open.
THE CLOSING DATE FOR THE RECEIPT OF NOMINATIONS IS FRIDAY, 13 SEPTEMBER 2002
Get more information here.

ENERGY ACCESS PROJECT
General Procurement Notice Publication Date: 23 August 2002
ETHIOPIA
Loan No. N/A
Government of the Democratic Republic of Ethiopia has received a loan from the International Development Association in the amount of USD 132,700,000 equivalent toward the cost of the Energy Access Project, and it intends to apply the proceeds of this loan to payments for goods, works, related services and consulting services to be procured under this project. Bidding for contracts financed by the International Development Association will be governed by the procurement rules of the World Bank. Procurement of contracts financed by the loan will be conducted through the procedures specified in Procurement under IBRD Loans and IDA Credits of the World Bank, and is open to all bidders from eligible source countries as defined in the guidelines. Consulting services will be selected in accordance with Selection and Employment of Consultants by World Bank Borrowers of the World Bank. Specific procurement notices for contracts to be bid under international competitive bidding (ICB) procedures will be announced, as they become available, in the Development Gateway Market. Interested eligible bidders can contact the implementing agency directly at the address below, to obtain additional information, or to be included in the mailing list.
EEPCO. Ethiopian Electric Power Corporation.
Mulumabet Dema
Project Coordinator
Degualle Square. Second Floor, Room No. 207.
PO Box 1233
Addis Ababa,
Ethiopia
Tel: (251-1) 560 288/112 077
Fax: (251-1) 552 345

(©www.safcec.org.za)

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Southgate puts R75m into upgrading project
SOUTHGATE Mall, a regional retail centre south of Johannesburg, is set for a R75m upgrade. The work is intended to help the centre keep up with the radical demographic change in the make-up of its visitors. Many centres around SA, especially in major cities, have been altered amid tightening competition, often in the form of massive retail developments such as Gateway in KwaZulu-Natal, Canal Walk in Cape Town, and The Zone in Rosebank and Campus Square in Johannesburg. The increased retail space chases an unchanged number of retailers, some of whom have expressed concern about the expansion when they are already stretched.
(©www.bday.co.za)

Upgrade at Bedford Centre
THE new owners of Bedford Centre, an upmarket retail development in Bedfordview, have lined up R100m for the refurbishment of the centre. Win Twice Properties acquired the centre a few months ago from property unit trust company Allan Gray Property Trust (Grayprop). According to Win Twice Properties project manager Gareth Paul, the refurbishment is intended to enhance the centre's attractiveness to the higher end of the consumer market. Paul says that it is not meant to compete with nearby retail developments such as Eastgate. The refurbishment is geared to give the centre "a Hyde Park touch".
(©www.bday.co.za)

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The landless take to the streets of Sandton
THE summit has opened. Amid the host president's call for the "end of global apartheid", an SA-led group, the Landless Peoples Movement (LPM) is deliberating ways to demonstrate its alienation by the government. "We cannot accept that given how far SA democracy has come, and despite the fact that we have a democratic government in power, that people are still being forcibly evicted, or are under threat of eviction," says Florence Cairncross, finance manager of the National Land Committee (NLC).
(©www.bday.co.za)

Futuregrowth may provide further funding
THE Futuregrowth Infrastructure Bond Fund, which has facilitated the building of more than 100000 homes valued at R1,5bn across SA in the past five years, could extend its obligation with additional funding for another number of years. Futuregrowth's participation in financing houses stems from the call made by Housing Minister Sankie Mthembi-Mahanyele for "innovative" ways to finance the building of lowcost housing.
(©www.bday.co.za)

Land bill no closer to resolution
THE Communal Land Rights Bill, which was gazetted last week, is not any closer to reaching a resolution on key issues regarding the administration and control of communal land despite being five years in the making. At the heart of the debate is a highly political issue revolving around the role of traditional leaders and authorities in controlling "tribal" land, mainly in the former homeland areas.
(©www.bday.co.za)

Dukuduku land claimants intend taking land commission to court
LAND claimants of the Dukuduku Forest in KwaZulu-Natal plan to take the Land Claims Commission to court after their claim was turned down earlier this year. The Association for Rural Advancement said yesterday that the claimants, with its help, served court papers on commissioner Thabi Shange on August 13. The association's director Sihle Mkhize said that a court date had not been set and they were still awaiting a response from Shange.
(©www.bday.co.za)

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We have nothing to gain by shooting messenger
NEW Mail & Guardian proprietor Zimbabwean Trevor Ncube went to the heart of the debate concerning the events in neighbouring Zimbabwe. For pointing out what he regards as worrying political parallels he was attacked this week by African National Congress (ANC) MP Naledi Pandor as being an Afro-pessimist. Making comparisons between political tendencies of the ANC government in SA and the tyranny of the Zanu (PF) government is bound to hit a raw nerve. President Thabo Mbeki's economic world view is light years away from that of Zimbabwean President Robert Mugabe.
(©www.bday.co.za)

Namibian farmers could have land taken
NAMIBIAN President Sam Nujoma warned his country's white farmers yesterday that they should co-operate with the government's voluntary land redistribution programme or have their land taken away from them. Nujoma said that, following a resolution passed at the congress of his ruling Swapo party at the weekend, the Namibian government planned to seize, in accordance with the law, 192 farms belonging to absentee landlords.
(©www.bday.co.za)

Zimbabwean court rules land evictions illegal
ZIMBABWE's high court dealt a severe blow to President Robert Mugabe's continuing land seizures yesterday after ruling that the government's eviction orders against farmers were illegal. Delivering judgment in a case involving 54 farmers, Judge Benjamin Paradza said the expulsions of farmers were unlawful and they should be reversed.
(©www.bday.co.za)

US pledges $30m for Malawi projects
The US on Wednesday gave $30,7-million in aid to Malawi, one of Africa’s least developed countries, to finance projects in agriculture, security and health.
(©www.engineeringnews.co.za)

Japan pledges to boost aid to Africa in 2003
Japan is to substantially increase aid to Africa next year, Foreign Minister Yoriko Kawaguchi said on Monday at the start of a visit to Ethiopia.
(©www.engineeringnews.co.za)

Shetlands, Angola create novel oil alliance
Community groups from the Shetland Islands off Scotland set up a novel partnership with Angola on Monday to show the war-racked African nation how to tap big oil for prosperity rather than conflict.
(©www.engineeringnews.co.za)

Engineering group’s finance unit to be sold
Industrial engineering group ABB will announce the sale of most of its Structured Finance activities later this week, as final details need sorting out, industry sources said yesterday.
(©www.engineeringnews.co.za)

Malawi set for rare-earth prospecting
Malawi: Prospecting work for a strontianite and rare-earth minerals project, which is expected to lead Malawi into the group of the world's leading producers of rare-earth minerals, is ready for commencement.
(©www.engineeringnews.co.za)

...strategic review of projects under way
The world’s leading platinum producer, Anglo Platinum (AngloPlat), was undertaking a 'complete strategic evaluation' of its expansion project portfolio, which was designed to lift its yearly production to 3,5-million ounces by 2006.
(©www.miningweekly.co.za)

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Mining in spotlight at Joburg Summit
Today mining comes under the spotlight at World Summit for Sustainable Development (WSSD), with a series of sessions, both at the Business Forum in Sandton, as well as at the Civil Society gathering at Nasrec.
(©www.miningweekly.co.za)

Tanzanite miners died by suffocation - probe
An investigation into the deaths of 39 tanzanite miners found that the men suffocated after inhaling carbon monoxide produced by a dynamite explosion in the mine shaft, Commissioner of Mines Gray Mwakalukwa said.
(©www.miningweekly.co.za)

Coal giant in KZN empowerment move
Global diversified miner Anglo American said on Friday its Anglo Coal unit had sold its coal reserves in South Africa's KwaZulu-Natal province (KZN) to black-owned Leeuw Mining and Exploration.
(©www.miningweekly.co.za)

Gold-miner’s spat with steel giant heats up
South Africa’s third-largest gold-miner, Harmony, is expected to lodge its official complaint against steel company, Iscor, with the Competition Commission either this week or next.
(©www.miningweekly.co.za)

Hopes of tighter gold-mine supply may be in vain
Investors in gold, who are counting on a sharp fall in mined bullion supplies to raise prices, may be disillusioned, metal analyst Kamal Naqvi said on Tuesday.
(©www.miningweekly.co.za)

Platinum giant signs landmark wage deal
A wage agreement between South African mining giant Anglo Platinum and eight unions has been hailed as a “historic triumph”, by both the mine’s management, as well as union representatives.
(©www.miningweekly.co.za)

Commissioning of gem treatment plant well advanced
A mere 29 months after project approval and 23 months since construction started, work on the De Beers Kimberley Mines Combined Treatment Plant (CTP) is nearing completion and commissioning is well advanced with the first material scheduled for treatment by the end of this month. The official opening of the CTP is scheduled for early in 2003. Capital investment in the project now stands at more than R800-million.
(©www.miningweekly.co.za)

SA resources group mulls 17 projects
Newly-formed South African resources company, Kumba Resources, has released details of a multi-commodity project pipeline, which is designed to help grow its iron-ore, coal, base-metals and heavy-minerals businesses and diversify its geographic spread.
(©www.miningweekly.co.za)

Marula platinum project to start next month
World number-two platinum producer Impala Platinum’s (Implats’) Marula mine project, on the eastern limb of the Bushveld Complex, will come on stream next month, ramping up to 103 000 ounces of platinum a year in 2005.
(©www.miningweekly.co.za)

Platinum group's capex surges . . .
The world’s largest platinum producer, Anglo Platinum, spent R2,5-billion on capex during the six months to June, up 1,5-billion for the comparable period last year.
(©www.miningweekly.co.za)

SA iron-ore giant poised for growth
Currently the world’s fourth biggest seaborne trading iron ore producer, South Africa’s Kumba Resources is positioning to grow its global position.
(©www.miningweekly.co.za)

Gem miner to empower through procurement
Diamond-mining giant De Beers this year intends to outsource goods and services worth R170-million to small and medium-sized businesses owned by previously-disadvantaged people, up from R80-million in 2001.
(©www.miningweekly.co.za)

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Durr Holdings plans expansion drive
DURR Holdings is planning an aggressive expansion drive, hoping to reclaim its position as one of Western Cape's leading real estate brands. Shareholders Herschel Jawitz, Eskel Jawitz and Keith Wakefield plan to expand the company by 50% in the next year through acquisitions. Wakefield, chairman of Durr Holdings, which was formed in November after the liquidation of the international brand, Durr Estates International, says: "We are emerging from a six-month consolidation phase, during which we focused on strengthening our existing licensees by growing the licence network and referral system and by improving professionalism and sales techniques."
(©www.bday.co.za)

Interest rate rises spell opportunity'
HOME loan interest rate increases should always spell "opportunity" for home owners looking to upgrade to better properties, says Johannesburg estate agency principal Lew Geffen. Rate increases generally lower demand, increase the supply of homes for sale and make sellers rethink their asking prices. "And once that shift has taken place, it is time for upgraders to seize their opportunities."
(©www.bday.co.za)

Pricing requires fine-tuning
Once the big decision to sell the family home has been made, the next most critical move is to decide on the asking price.
(©www.property24.co.za)

EAAB may appoint licence' inspectors
The Estate Agency Affairs Board is investigating the feasibility of appointing consultants to act as inspectors in all provinces to 'deal with and root out' the problem of unregistered estate agents.
(©www.property24.co.za)

Market poised for upgraders
Homeloan interest rate increases such as those experienced this year should always spell 'opportunity' for homeowners looking to upgrade to a bigger or better property.
(©www.property24.co.za)

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The World Summit for Sustainable Development
The World Summit for Sustainable Development, billed as the biggest in the world, takes place in Johannesburg from August 26 to September 4. A popular conception of the summit is that it is about "green" issues - and it is. But the summit goes much further. It has come to be seen both as a barometer of the state of earth and humanity, and as the single most important forum for negotiating corrective action. IOL brings you all the coverage from the Independent groups writers, as well as international views on the most important gathering yet to take place on South African soil.
(©www.iol.co.za)

Cementing the future
THE FUNDAMENTAL goal of sustainable development has been grasped by the majority of construction companies — but not necessarily acted upon. The ability to meet the needs of the present, without compromising the ability of future generations to be able to meet their own needs, is a mission which is proving to be more a dream than a reality.
(©www.industryclick.com)

South African Property Report 2002
Download and print out this glossy and detailed report on the South African property scene published annually by JHI Real Estate Limited. Please note that this report is published in PDF format.
This week the final downloads:
Section 4 - Commercial Sector and Property Market (cont) - Gauteng Market, Johannesburg and Pretoria - Cape Town Market
Section 5 - Cape Town Market (cont) - Greater Durban Market
(©www.jhi.co.za)

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Burden of proof
THERE is an old legal principle that ‘he who alleges must prove’ — which is not very politically correct but nonetheless has passed the test of time. Simply, it means that if it is claimed that a legal right has been infringed which has resulted in a financial loss, then the right of recovery is dependent upon an ability to prove that what is being alleged has occurred. It is not for the accused to prove his innocence. This principle is relevant to contractors who submit claims. In providing the necessary proof, contractors are required to show a proper link between the matters which it is alleged have caused the loss and the loss itself. Arguments with regard to whether the link between cause and effect has been properly forged is never-ending and has again raised its head in John Doyle Construction v Laing Management (Scotland), a case which came before the courts in Scotland. Click here to read on...
(©www.industryclick.com)

Building a forcefield to deflect competitors
IF CONSTANT innovation in your industry has destroyed the stability that used to provide profitability, you are not alone. Chaotic change can be creative, but it can also be wasteful. Many perceptive top managers have concluded that it is time to create order in their competitive environments. But how? The answer is to build a strong and rational sphere of influence. Throughout history spheres of influence have been used in managing political relations between countries, and nations continue to try to create them. They are also the best way for successful businesses to establish and maintain order and create profitable industries.
(©www.bday.co.za)

Conference on Construction and Engineering Excellence
The theme of this conference is that the building process needs to be streamlined with all essential parties coming together to ensure success and will be held from 30 September to 1 October 2002 at the Balalaika Hotel in Sandton. Full details available on the ASAQS website.

Golf Day
Join us for the 2002 Pretoria Golf Day on 3 September 2002

CPD Seminar
Join the Gauteng Chapter for a special CPD Seminar entitled "The Commonwealth's Values and Assets" on 2 September 2002 and earn 13 CPD points. Click on this link to get further details and view the program.

Remember: Visit the ASAQS website for new updates!

New members to the CUG

Dickson Mahlabane
John Fourie
Paul Gondwe
Dries Laubscher
Rickus Gerber

Please note : Only paid-up members of the Association of South African Quantity Surveyors are allowed entrance to the CUG. We still receive a number of applications every month from non-members. If you have any questions regarding membership contact Mrs Barbara Morgan on 011-3154140

Also note that your registration to the CUG will remain in force as long as you remain a member of ASAQS and there is no need to register every year. If you have not received an e-mail confirming your registration contact ASAQS.

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