The establishment of Salvokop, in Tshwane, as a mixed-use development by the Department of Public Works and Infrastructure (DPWI) would drive integration and act as a catalyst for private sector investment, Public Works and Infrastructure Minister Patricia de Lille announced on Wednesday.

She noted that the project would form part of the Tshwane Inner City Regeneration Programme and that it was aligned to the City of Tshwane’s Spatial Development Framework.

Speaking to media, she explained that the Salvokop development would result in new government offices being developed and located closer to communities to bring about greater integration.

“It will also generate hope for the construction sector and for our communities,” she noted.

She reiterated her department’s commitment to “reversing the legacy of apartheid spatial planning” by stopping urban sprawl and building compact, mixed-use developments that will bring communities closer to government services by using its property and land as a catalyst for public good.

The precinct is one of five identified within the inner city that will serve as a benchmark development where citizens can live, work and play in a central location.

The 56 000 m² flagship development of Statistics South Africa’s head office, in 2016, was the first property to be completed in the precinct.

Phase 1 of the Salvokop development will accommodate an additional four government head offices namely that of the departments of Correctional Services, Higher Education and Training, Social Development and Home Affairs.

This phase is expected to contribute an estimated R6.5-billion of blended financing.

The National Treasury is assisting the DPWI with accessing government grants and the department will also apply for funding from the R100-billion Infrastructure Fund established by President Cyril Ramaphosa. 

The DPWI procured the land in Salvokop, Pretoria, for this first precinct development from State-owned logistics company Transnet for R79-million.

In addition to the support provided by the National Treasury, the planned commercial and residential development component will attract private sector investment, De Lille said on Wednesday, adding that a DPWI tender for the provision of bulk and internal services was currently in the market.

This is expected to support and effect the land-use rights for market release and investment opportunities.

A contractor will be appointed by March 2020, with construction of bulk and internal services to start in April 2020. This will be completed in December 2022.

The total current development opportunity of 524 000 m² is valued at an estimated R18-billion and will include provision for office, commercial, residential, retail and open space, in addition to schools and healthcare facilities, besides others.

The DPWI is acting both as the land owner and the developer on behalf of the State.

Occupation of the four government departments in their new offices as part of Phase 1 is set for 2025. 

The rest of the mixed-use precinct will allow for the development of commercial and residential bulk of about 240 000 m².

All planning processes and preparation work is aligned towards having the sites ready for construction by 2022.

Going forward, the DPWI will make announcements on the progress of the Tshwane Inner-City Regeneration Precinct development and similar plans for other cities, De Lille said, highlighting that “these projects present a massive opportunity to effect a new planning regime which is indicative of an integrated society where residents are located close to economic opportunities in affordable housing and close to government services”.

Next year, consultation will continue with other cities, including the likes of the City of Cape Town, the Buffalo City municipality and the City of eThekwini for similar developments.

Additionally, within the DPWI, the Planning and Precinct Development unit aims to guide the location of government infrastructure development for the State through integrated planning that will be sustainable, inclusive and accessible to communities. 

However, to achieve integrated development for the State, collaboration is required across all spheres of government and with the private sector, and this project will involve significant intergovernmental work with the local municipality being a key partner during this process, De Lille elaborated.

De Lille’s announcement follows the signing of a memorandum of understanding between the DPWI and the City of Tshwane to establish principles of cooperative planning and development of the government estate within Tshwane towards achieving an African capital city of excellence.

An institutional framework was then established between the DPWI and the City of Tshwane to ensure alignment of both national and local government priorities.

The City of Tshwane also approved the Integrated Development Plan roadmap to creating a capital city of excellence.