KoGae Consortium – a multi-disciplinary conglomerate of local and international companies that put together a P1.7 billion bid to deliver the Gaborone Civic Park – has been left in the lurch with bills running into millions after Gaborone City Council (GCC) cancelled the billion Pula tender in a controversial move that many suspect was meant to favour one of the bidders.
“GCC has since taken a decision to cancel the tender,” was the curt response from City Clerk Lebuile Israel when asked about progress made in awarding the tender. This was after bidders complained that GCC had been giving them the silent treatment over four years since they submitted their bids. The matter dates back to May 2016 when the City Council issued an Expression of Interest (EOI) for the mixed-use development and refurbishment of City Hall and the adjacent plot 54334. In issuing the EOI, GCC was concerned that the city lacked a distinctive image and local character. GCC also noted a conspicuous absence of landmarks to promote and preserve the cultural heritage of the city. After finding that the solution lay in the application of urban design concepts and principles, GCC invited property developers to refurbish and develop City Hall into a mixed use development.
The aim was to provide interesting amenities, establish a stronger urban core and turn City Hall into a diverse and lucrative business area. The mixed use development would include a convention centre, theatre, gallery, library, restaurant and retail space. While it agreed to the refurbishment of its internal aspects to improve appearance and functionality, GCC insisted on preserving the architectural element of City Hall as an important part of the historic fabric of Gaborone. Adjacent to City Hall is the 800 square meter plot 54334, which was to house a world-class mixed-use development that would harness Gaborone’s urban renewal with an innovative mix of commercial offices, retail, hotel, residential, civic and community developments.
After responding to the EOI, Kogae Consortium was shortlisted for the Invitation to Tender, along with Time Projects. The Consortium submitted its detailed proposal on 24 September 2017. The Consortium comprised of among others KC Architects; Price Waterhouse Coopers as Public Private Partnership (PPP) specialists; Pula Rain as environmental specialists; DSP Holdings as lead engineers; G & C Consulting as lead quantity surveyors and JS Planning & Design Studio as physical planning lead. Also in the picture was Letlole la Rona as development partners; Citizen Entrepreneurial Development Agency (CEDA), National Development Bank (NDB) and BancABC as finance partners.
For over four months, 40 citizen professionals from 20 mostly youth owned companies worked around the clock to prepare the Kogae Consortium bid, amassing P24 million in consultancy costs. The consortium proposed a run, operate and transfer Public Private Partnership (PPP) model that would cost P1.7billion, to be raised through local funders and international investors. The P1.7 billion was to be paid back during the operate period of 20-30 years, after which GCC would assume full ownership of the property. The consortium also undertook to empower locals through business and professional mentorship, employment creation and provision of world class amenities. It was estimated that the project would create 300 direct jobs pre-contract, 2500 jobs during construction and 700 full time jobs during operation.
Time Projects and KoGae Consortium made a presentation to GCC in May 2018. After a prolonged silence from the City Council, the Consortium wrote to the Minister of Local Government urging him to make sure that the adjudication process was fair and transparent. The consortium also warned that delays in adjudication were making prospective investors wary. The Ministry did not respond. The Consortium then wrote to GCC in January 2019 asking about progress in awarding the tender. “The decision to invite companies to express interest, submit proposals and subsequently present cannot be taken unsystematic. An organisation such as GCC cannot and should not take such decisions randomly and abandon them. The amount of investment required to prepare a response for a project of this magnitude is quite significant,” wrote KoGae Consortium. Because GCC required proof of finance, the bidders had to mobilise financiers, and the delay was impacting on their future relations with the Consortium. Still the City Clerk did not respond.
The Sunday Standard sent a ten-point questionnaire to GCC asking about a myriad of issues relating to the tender. City Clerk Lebuile Israel responded with a paragraph, saying: “All procurement procedures were followed to the letter. No procurement processes were flaunted and all companies that were invited for the presentation had participated in the Expression of Interest. GCC has since taken a decision to cancel the tender.” Interestingly, the bidders have claimed ignorance of any cancellation of the tender.
