portion of erf 12380 durban (being a portion of icc site ... tenders/icc.pdf · proposed portion of...

bb/icc hotel ver2

TENDERTENDER

PORTION OF ERF 12380 DURBAN (BEING A PORTION OF ICC SITE)PORTION OF ERF 12380 DURBAN (BEING A PORTION OF ICC SITE)

SPECIAL ZONE 57 RESTRICTED TO HOTELSPECIAL ZONE 57 RESTRICTED TO HOTEL

OROR

PORTION OF ERF 11727 DURBAN (BEING A PORTION OF DEC SITE) TOPORTION OF ERF 11727 DURBAN (BEING A PORTION OF DEC SITE) TO

BE REZONED SPECIAL ZONE 57 RESTRICTED TO HOTELBE REZONED SPECIAL ZONE 57 RESTRICTED TO HOTEL

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1. GENERAL INSTRUCTIONS TO TENDERERS

SALE IN FREEHOLD BY PUBLIC TENDER

OF

PROPOSED PORTION OF ERF 12380 DURBAN (BEING A PORTION OF ICC SITE)

OR PROPOSED PORTION OF ERF 11727 DURBAN (BEING A PORTION OF THE DEC SITE)

A proposed Special Zone 57 site within the ICC/DEC site is offered for sale at the upset price indicatedin the Tender Form –Annexure 3.

The sale is subject to acceptance and confirmation by and at the discretion of the Municipality in termsof the provisions of Ordinance 25 of 1974 and the Municipal Supply Chain Policy adopted in terms of theLocal Government : Municipal Finance Management Act, 2003 (Act 56 of 2003).

Tenders in sealed envelopes addressed to the Head : Procurement and clearly marked “Tender Notice.____" must be placed in the Tender Box located in the Foyer, Ground Floor, Rennie House, 41 VictoriaEmbankment, Durban, not later than 11:00 on Friday 2005, when they will be opened in public.

1. FORM OF TENDER AND CLOSING DATE

Sealed tenders made out on the Tender Forms annexed hereto, which shall be signed by the Tenderer,addressed to the Head : Procurement, Ground Floor, Rennie House, 41 Victoria Embankment, Durban,and marked with the appropriate tender number, which is stated in public advertisement invitingtenders. TENDERS WILL BE REJECTED unless they are made out on the official Tender Form.

2. TENDER REQUIRED

Tenderers shall tender for the Land at a price not less than the upset price set out in the Tender Form –Annexure 3.

3. ACCEPTANCE TENDER

The Municipality shall not bind itself to accept the highest or any tender.

4. DEPOSIT REQUIRED

4.1 Tenderers are required to lodge a deposit of 10 (TEN PERCENT) of the upset price with eachtender submitted. The deposit shall be in the form of a bank guaranteed cheque made payable

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bb/icc hotel ver2to the “eThekwini Municipality”, and the deposit shall be used as a safeguard against withdrawalof the tenders submitted. This deposit shall not be interest bearing.

4.2 In the case of the successful Tenderer, the deposit lodged shall be used as a payment of portionof the purchase price.

4.3 The deposit lodged by unsuccessful Tenderers shall be refunded to such Tenderers.

4.3 Failure to lodge the required deposit with the tender submitted shall automatically render thetender invalid.

5. WITHDRAWAL OF TENDERS

TENDERS MUST HOLD GOOD FOR A PERIOD OF TWENTY - FOUR (24) WEEKS FROM THE DATE OFOPENINGShould a Tenderer withdraw his tender during the period for which it is to be held, he shall, at theMunicipality’s sole discretion, either forfeit the amount deposited by him or, in the event of this amountbeing insufficient to cover all damages and loss suffered, pay to the Municipality the actual amount ofall damages and loss suffered by it and all costs incurred by it as a result of such withdrawal.

6. INFORMATION

Tenderers must acquaint themselves with the situation of the Land to be sold and generally obtain theirown information and/or clarification insofar as the sale conditions, bylaws and all matters affectingsubmission of tenders for the sites/properties concerned, and must satisfy themselves as to what usethe sites/properties may be put.

7. DIFFERENCES AND DISCREPANCIES

Should there by any difference or discrepancy between the prices or particulars contained in the officialTender Form and those contained in any covering letter from the Tenderer, then the prices orparticulars contained in the official Tender Form shall prevail.

Every Tenderer shall be deemed to have waived, renounced and abandoned any conditions printedupon any stationery used by him for the purposes of, or in connection with, the submission of histender, which are in conflict with the Municipality’s Conditions of Tender and Conditions of Sale.

TENDERERS ARE WARNED THAT ANY MATERIAL DIVERGENCE FROM THE OFFICIAL CONDITIONSSHALL RENDER THEIR TENDER LIABLE TO DISQUALIFICATION

8. COMMUNICATION WITH COUNCILLORS AND MUNICIPAL OFFICIALS

No Tenderer shall offer, promise or give any person or persons any gratuity, bonus or discount, or anyother form of inducement with the object of securing acceptance of his tender or other object relatedthereto, or communicate with any Councillor or any Municipal Official on a question affecting the subject

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bb/icc hotel ver2of tenders and the date of notification of the successful tender.

9. PROHIBITION ON AWARDS TO PERSONS WHOSE TAX MATTERS ARE NOT IN ORDER

No tender shall be accepted if the Tenderer fails to submit a valid Clearance Certificate, issued by theSouth African Revenue Services prior to the adjudication of the tenders, declaring that the person’s taxmatters are in order.

10. PROHIBITION ON AWARDS TO PERSONS IN THE SERVICE OF THE STATE

No tender shall be accepted from any person:-1) Who is in the service of the state; or2) If that person is not a natural person, of which any director, manager, principal shareholder

or stakeholder is a person in the service of the state; or3) A person who is an advisor or consultant contracted with the municipality or municipal entity.

11. AWARDS TO CLOSE FAMILY MEMBERS OF PERSONS IN THE SERVICE OF THE STATE Any Tenderer who is a spouse, child or parent of a person in the service of the state, or has been in theservice of the state in the previous twelve months must complete the Declaration annexed heretoheaded “Declaration of Close Family Members of Persons in the Service of the State”. Failureto complete the required form at the time of evaluation of the tender shall result in the disqualificationof the tender.

12. MUNICIPAL FEES

All tenderers are to sign a declaration wherein they declare that their municipal fees are in order, orproper arrangements have been made with the Municipality, and include the relevant account numbersin the declaration The declaration is annexed hereto headed “Declaration of Municipal Fees”. Failureto complete the required form at the time of evaluation of the tender shall result in the disqualificationof the tender.

13. UNINCORPORATED COMPANIES

13.1. If a person signs this tender acting as an agent or trustee for a company not yet incorporatedand if the company is not incorporated and does not receive a certificate entitling it tocommence business within sixty (60) days of the acceptance of this tender by the Municipality,or if, within fourteen (14) days after the issue of a certificate entitling the company tocommence business, the company fails to ratify, adopt and confirm the contract and furnish theMunicipality with a certified copy of its resolution or such nominee fails at any time and in anyrespect to comply with the Terms and Conditions of the Sale, then the signatory of this tendershall be personally liable to the Municipality for the fulfilment of all the terms and conditions ofthe sale.

13.2. Proof that application has been made to the Registrar of Companies for the registration of a

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bb/icc hotel ver2company / incorporation of a Close Corporation shall be provided to the Municipality within 30days of acceptance of the tender by the Municipality.

13.3. The provisions of this clause shall apply, with appropriate changes, to any person signing thisoffer as agent or trustee of a close corporation to be formed.

13.4. No tender will be accepted :-- Where the signatory/agent purports to act for a Trust not yet in existence;- Where a Tenderer acts as a nominee for an unnamed purchaser.

14. AGENTS

Tenders signed by an agent shall be accompanied by a properly executed power of attorney and thosesigned on behalf of a company, close corporation or Trust by a certified extract from theCompany/Close Corporation/Trust’s minutes authorising signature of the offer on behalf of the Companyor Close Corporation/Trust.

15. BROKERS

The purchase price does not include Property Brokers or Estate Agents Commission and the Tendererindemnifies the Municipality against any claims, which may be made in this regard

16. ADJUDICATION OF TENDERS BASED ON THE MUNICIPALITY’S EMPOWERMENTPRINCIPLES IN TERMS OF PREFERENTIAL ADJUDICATION SYSTEM

Tenders will be adjudicated in terms of the Preferential Adjudication System applicable to the Sale orLease of Municipality-owned immovable property in accordance with the Municipality’s EmpowermentProtocol. In terms hereof tenders will be adjudicated based on a point system and points will beawarded to the price tendered and to the empowerment status of the Tenderer. The allocation ofpoints will be on the following basis:-

Rent or purchase price tendered a maximum of 90 pointsEmpowerment Status a maximum of 10 points

The definitions and adjudication process to the Preferential Adjudication System is set out in Annexure“5” titled “Special Conditions Pertaining to the Sale or Lease of Municipality-owned Immovable Propertyby Tender in terms of the Preferential Adjudication System.”

In addition to the Tender Form annexed marked “3”, Tenderers claiming preference must include thefollowing in their tenders:-

Declaration Affidavit for Targetted Person/s (Part A)must be completed by all persons tendering in their individual capacity who claim preference on thebasis of either being a member of the Priority Population Group, or a Woman or Black or Disabled.

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bb/icc hotel ver2Declaration Affidavit for Targetted Enterprise (Part B)must be completed and submitted by organisations claiming Priority Enterprise status.

DECLARATION AFFIDAVIT PART A OR PART B MUST BE ATTACHED TO AND SUBMITTED WITH THETENDER FORM (ANNEXURE “5”)

NOTE:

FAILURE TO CLAIM PREFERENCE BY THE COMPLETION AND SUBMISSION OF THE RELEVANTFORMS WILL PRECLUDE A TENDER FROM BEING ADJUDICATED IN TERMS OF THE PREFERENTIALADJUDICIATION SYSTEM

NOTWITHSTANDING THE APPLICABILITY OF THE PREFERENTIAL ADJUDICATION SYSTEM, THETENDER PRICE MUST BE AT, OR EXCEED THE UPSET PRICE.

WHERE THE UPSET PRICE IS R500 000,00 OR GREATER, THEN THE PREFERENTIAL ADJUDICATIONSYSTEM IS STILL APPLICABLE, HOWEVER THE TENDERS WILL BE ADJUDICATED ON 90/10 SPLIT.

FAILURE TO COMPLY WITH CONDITIONS

Any failure on the part of the Tenderer to comply with any of the requirements as regards the form andsubmission of the tender and the lodging of the required deposit shall automatically disqualify thetender from any further consideration by the Municipality.

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2. SPECIAL INSTRUCTIONS TO TENDERERS IN RESPECT OF ICC/DEC SITES(SPECIAL ZONE 57 RESTRICTED TO HOTEL)

TENDER NO. SALE IN FREEHOLD BY PUBLIC TENDER

OFPROPOSED PORTION OF ERF 12380 DURBAN (BEING A PORTION OF ICC SITE)


1. GENERAL

The Council’s June 2004 Hotel Study showed that the City would need to bring on-stream a further 600hotel beds in 3 years and 2 600 hotel beds in 5 years to meet the projected 5% growth in demand overthese periods (ie. Approximately 4 and 9 hotels respectively).

This Study identified a number of Council-owned sites for hotel development and it is accordinglyproposed that the Council release 3 (three) specific opportunities in the short term, including anopportunity on the ICC/DEC Campus. (This having been recorded as one of top 20 locations for a hoteldevelopment serving the MICE (meetings, incentives, conventions & exhibitions) and business markets.)

Both the ICC and Exhibition Centre Sites form part of the Council’s strategic land holdings and theirdevelopment and use are vital to the City if it is to retain its market share and status as Africa’spreferred conference venue. However, both Centres (on 5,8ha and 4,7ha respectively) are capable ofconsiderable further development when assessed in terms of the ICC’s Special Zone 57 and surroundingGeneral Business

(Central Area) Planning Regulations.It is accordingly proposed to rezone the Exhibition Centre Site to accord with the current ICC zoningand dispose of up to 20 000m2 of this ‘spare’ capacity (or permissible floor area) for the purpose of a220 bed tourist/deluxe (3/4 star) hotel development.The tender (and upset price) to be based on an initial 15 000m2 of Development Bulk, with theremaining 5 000m2 being available to the successful purchaser on a pro rata basis. (This will allow for alevel of flexibility in the hotel design and development.)Development Bulk is defined in terms of clause 23(7) of the Town Planning Scheme Regulations.

Tenders on two separate opportunities located on the ICC and DEC properties, details of which areprovided in the Guidelines forming Annexures A and B to this instruction will be considered.

Only one tender will however be accepted.

The location of the hotel on the Exhibition Centre site, which ‘activates’ the east-west pedestrian link ispreferred and offers on this site be weighted by a factor of 1,25. (ie. An offer of 8 units on this sitewould be equivalent to an offer of 10 units on the ICC Site.)Development rights, including access to the existing ICC parkade and possible linkages across WalnutRoad (in respect of the Exhibition Centre location) will then be sold/granted, following the detaileddesign of the hotel.

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It is recorded that the Durban Infrastructure Development Trust hold a lease over the land occupied bythe ICC/DEC and the disposal of the aforementioned rights will require an amendment to the LeaseAgreement.Given the high levels of physical and operational integration of the hotel development with the ICC/DECparties who intend submitting a tender on either of these two opportunities are required to attend acompulsory briefing session to be held in the 3rd week of the Tender Period. (This will also provideprospective tenderers with the opportunity to clarify technical, operational and planning issues.)

The Guidelines for Hotel Proposals forming Annexures A and B provide an overview only andprospective tenderers must familiarize themselves with the detail of design issues which will be faced inintegrating a hotel and/or underground/overhead linkages with the existing ICC structure. Accordingly,a ‘package’ of detailed drawings relating to the ICC development will be made available to prospectivetenderers at a cost of R 500,00.

The ICC/DEC Development Package is obtainable, giving two (2) days notice, from the Municipality’sArchitectural Department, off Old Fort Road. Contact: Mr Ken Froise – Tel.: 311 7133.

The Tender Form should specifically provide for tenderers to acknowledge that they have had sight ofand understand the design issues outlined in 5. and 6. above.The successful tenderer will be required to develop detailed (sketch) plans in consultation with theCouncil’s Design Team demonstrating the levels of integration, prior to transfer being effected.(Consideration should also be given at that time for the conclusion of a Co-operation agreement.)

Such plans must be approved by the Head : Strategic Projects within 3 months of the award of thetender and the subsequent development is to be substantially in accordance with the approved sketchplans.

The Exhibition Centre is currently reserved for Government and Municipal purposes and the Council is toundertake the rezoning of the site to Special Zone 57, as currently applies to the ICC Site.

The Council’s interests are to be safeguarded in the event of the rezoning not being successful.

The existing improvements located on the DEC Site are listed in terms of the Town Planning Schemeand the development will accordingly need to respond to this, as detailed in the Guidelines. Theimprovements are also over 60 years old and AMAFA consent will accordingly also be necessary in theevent of proposals which impact on these buildings.

The definition, registration and transfer of the necessary land rights will proceed immediately followingthe approval of the detailed sketch plans referred to in paragraph 8 above.Traffic/parking: A traffic impact study is to be undertaken and the full parking requirements are to beprovided/secured by the development. In this regard there is spare capacity within the ICC Parkade andit is accordingly envisaged that the Purchaser will conclude a ‘Parking Agreement’ with regard to theshared use of these facilities. Such agreement will then need to form part of the plan submissionreferred to in 8. above.

The existing Municipal services network has adequate capacity to accommodate the development of thetwo sites and they are accordingly fully serviced.

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2. GEOTECHNICAL OVERVIEW:The Inner City area is underlain by silty fine sand with sandy clay layers being part of the estuarinesediments of the Harbour Beds. With increasing depth the sands become medium to coarse in layers,containing small but variable quantities of silt and clay.The thicknesses of individual sand beds vary over short distances, lensing out to become more clayey orsilty. The sands vary from loose to very dense, depending on depth, particle size distribution and grainangularity. The Harbour Beds range from about 15 m depth at Warwick Avenue to about 40 m alongthe Beachfront, being underlain by silt or siltstone of the St. Lucia Formation. Thick layers of mixedgranular fill with rubble, deposited over the original estuarine sands and black peaty clays, covers muchof the Warwick Avenue and Hoy Park areas. These were the historical “Western Vlei” and Eastern Vlei”respectively.In wet seasons most of Central Durban is underlain by at least two groundwater tables, the upper onebeing perched in the rubble and fill on lower permeability, clayey sands. This watertable tends todissipate during dry periods, whereas the deeper water level lies permanently some metres belowground. Excavations below this water level collapse rapidly, due to strong seepage inflow. Theseconditions are worst in the two old vlei areas and present a major constraint to development belowground level. Basement construction below the water table requires full dewatering with temporarylateral support by sheet piling and is an expensive operation, although commonly done. Some boreholeinformation is available on Corporate GIS, but detailed geotechnical investigations need to be carriedout for each site prior to design and construction. Most high-rise structures need to be founded on piles,but normal foundations are commonly used in most areas for single or double-story buildings.

3. DEVELOPMENT PROPOSALS

In accordance with the policies of the eThekwini Municipality as the landowner, the Land is beingoffered for sale by way of a public tender calling for the submission of tenders at or above the upsetprices.The award of this tender is suspensive on the eThekwini Municipality approving the details of theproposed development of the site within four months of being requested to do so by the eThekwiniMunicipality. The date of sale shall be determined as the date upon which the eThekwini Municipalitynotifies the successful tenderer of the approval of the development proposal.

4. CLARIFICATION DURING THE TENDER PERIOD

A compulsory briefing session will be held for interested parties during the third week of the tenderbeing open

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ANNEXURE AGUIDELINES FOR HOTEL PROPOSAL : ICC SITEDEFINITION & ASSESSMENT OF OPPORTUNITIES

The release by public tender of an opportunity for the construction, ownership and operation for a 220roomed, 3-4 Star tourist / deluxe hotel with a direct linkage to the ICC and existing basement parking.

DESCRIPTION OF DEVELOPMENT ENVELOPE

The proposed hotel is to be considered as an extension of the existing ICC facilities located westof the existing Concourse at the junction between the existing building and the new ICC Arenacurrently under construction.

The public interface will be via Walnut road with independent access to the existing ICCbasement for parking.

The design must respect the visual outlook from the existing ICC Concourse at ground and firstfloor levels while further maintaining the existing courtyards, security and associatedlandscaping.

The design must respect and integrate fully with the existing ICC, Arena and future expansionproposals.

Conceptually, components of the building are envisaged to include:

BASEMENT LEVEL : Back of house facilities, Mechanical & Electrical Service components, storageand staff change rooms.

GROUND FLOOR LEVEL : Porte Cochere, Foyer, Reception, Back of House facilities. Direct publiclinkage with the ICC Concourse at ground level with a passenger lift and escalator links to theConcourse first level as a minimum.

FIRST FLOOR LEVEL : Pub / Coffee Shop and hotel conference facilities.

SECOND TO NINTH FLOORS : Hotel rooms in double loaded slab configuration with a maximumof 30 rooms per floor.

ROOF : Speciality Restaurant, Stress Management Centre, etc.

The architecture should respect the Architectural precedents that exist on site whilesimultaneously striving to create it’s own unique identity.

The proposed hotel is to be designed as a stand-alone business, but through it’s planning it muststrive to maximize the synergy between the ICC Meeting’s industry and Hotel publicinfrastructure.

Controlled common use of courtyards, public access and shared parking & drop-off facilitieswould be encouraged.

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PHYSICAL CONSTRAINTS & SITE BOUNDARY LIMITSReference is made to the attached ground floor drawing.

BASEMENT LEVEL The proposed hotel will extend partially over the existing ICC Basement (between grid lines 00 &

03 / Outer wall to grid line D) and beyond up to the western boundary line. Existing Structure & Services: The existing piles, columns and floor slab are not designed for additional loading above ground

floor. Extensive structural demolitions are envisaged and piles & caps will have to be added to. Services within the basement that will require rerouting include cable trays for electrical and

electronic services, fire services, water supply pipes and lighting. A 900 diameter live storm water pipe just beyond the basement retaining wall has to be

maintained and protected during piling operations. The fibre optic cable feed to the ICC enters the building in this zone and will have to be rerouted

/ protected during construction. All existing ICC services will have to be fully operational during hotel construction activities. This

includes basement mechanical ventilation systems.

A technical information pack relating to the ICC structure which details inter alia the above, is availableat a cost of R500.00.

Tenderers interested in submitting a bid in response to this enquiry, will be required to attend thecompulsory tenderers’ meeting.

Access, Parking & Circulation: Vehicle access to the basement will be retained from existing points in Commercial and

Ordnance Roads. New vehicle access for the hotel will be off Walnut Road to facilitate the use ofexisting ICC parking. The location of ingress and egress ramps would have to be agreed with theEthekwini Transport Authority.

Servicing of back-of-house facilities may not take place in the basement. Existing basement fire escape points would have to be maintained in the design. Loss of existing parking must be kept to the minimum and primary driveway paths maintained. No additional parking is envisaged; bays will be shared by management agreement.

Development Area: A maximum of 850 sq m is available within the existing basement for hotel integration. Area located between grid lines 00 & 03; A & D.

GROUND FLOOR LEVELThe proposed Hotel development area is to be strictly confined to a zone bounded by grid lines 6 & 04in the north south, and D (the existing glass line of the ICC Concourse) to the boundary line in the eastwest direction.

Development Area: A maximum site area of 3050 sq m is available for future hotel development with a frontage of

78 m to Walnut Road and a depth of 39 m. Restrictions at this level will include: The planned future expansion of meeting rooms in the form of a ground level Pod having a

coverage of 780 sq m between grid lines 4 & 00. The hotel development must include the

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external envelope for the pod as per the design intention, to enable it to be fitted outindependently by the ICC. This accommodation will belong to the ICC.

West façade integration with Pod podium and full height glazed elevation. Hotel built form restricted to a footprint of 585 sq m between grid lines 00 & 03 and A & D. To maintain the existing courtyards to the north and south, including all landscaping and

basement fire escapes.

To maintain visual links through the site, from the ICC concourse to Walnut Road between gridlines 4 & 6, 00 & 04 minimum.

FIRST FLOOR LEVELRestrictions will include:

Built form restricted to a footprint of 1 365 sq m between grid lines 00 & 03 and A & D. To maintain visual links through the site, from the ICC Concourse to Walnut Road between grid

lines 4 & 6, 00 & 04 minimum.

PLANNING REGULATIONSThe site is zoned “Special Zone 57 : Convention Centre” Development to comply with the schemerelating to General Business (Central Area) where the following restrictions apply:Maximum PAR: 8Coverage: N/AMaximum height: 110 meters with a setback of 5 m after first 15 m or 59º from opposite side of

street.Parking: 1 bay per 100 sq m or 1 bay per room

The parameters for the hotel development proposal are as follows: Development site area: 3 050 sq mGross basement floor area: 850 sq mGross ground floor area: 585 sq mGross first floor area and above: 1 365 sq mGross total development area: 20 000 sq m

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ANNEXURE BGUIDELINES FOR HOTEL PROPOSAL : DEC SITEDEFINITION & ASSESSMENT OF OPPORTUNITIESThe release by public tender of an opportunity for the construction, ownership and operation for a 220roomed, 3-4 Star tourist / deluxe hotel with a direct linkage across Walnut Road to the ICC and existingbasement parking.

DESCRIPTION OF DEVELOPMENT ENVELOPE The proposed hotel is to be considered as an extension of the existing ICC / DEC facilities

located on the DEC site where Hall 6 and the Aliwal Suite are currently located. The public interface will be via Walnut road and the east west corridor linking the ICC to the

Centrum, with limited servicing through the existing ICC basement. Conceptually, components of the building are envisaged to include:

BASEMENT LEVEL : Back of house facilities, Mechanical & Electrical Service components, storageand staff change rooms.

GROUND FLOOR LEVEL : Porte Cochere, Foyer, Reception, Restaurant, Back of House facilitiesand accommodation for existing DEC activities.

FIRST FLOOR LEVEL : Pub / Coffee Shop over foyer area and accommodation for existing DECactivities. Direct public linkage with the ICC Concourse at first floor level with a passenger liftand escalator links to the Concourse ground floor level as a minimum.

SECOND TO NINTH FLOORS : Hotel rooms in double loaded slab configuration with a maximumof 30 rooms per floor.

ROOF : Speciality Restaurant, Stress Management Centre, etc.

The architecture should respect the Architectural precedents that exist on site whilesimultaneously striving to create it’s own unique identity.

The proposed hotel is to be designed as a stand-alone business, but through it’s planning it muststrive to maximize the synergy between the ICC Meeting’s industry and Hotel publicinfrastructure.

Controlled common use of courtyards, public access and shared parking & drop-off facilitieswould be encouraged.

PHYSICAL CONSTRAINTS & SITE BOUNDARY LIMITSReference is made to the attached ground floor drawing.

BASEMENT LEVELThe basement level could be developed to the full extent of the proposed development area of 3000 sqm extending from the eastern boundary at Walnut Road 60 m into the site and from the northern edgeof the existing Aliwal Suite building 50 m south.

Access, Parking & Circulation: Access can be either independent directly off Walnut Road or via a link under Walnut Road to

the existing ICC basement.

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In the case of an independent access, the location of ingress and egress ramps would have tobe agreed with the Ethekwini Transport Authority. Use of the road reserve area and granting ofservitude development rights for the provision of access would be considered.

A link to the existing ICC basement could occur between grid lines 00 & 4. Cognizance wouldneed to be taken of existing services in the area which include the following (refer to drawingshowing section through Walnut Road):

150 ø sewer pipe running north south in Walnut Road at an average depth (invert level) ofapprox 3.2m below existing road surface.

300ø stormwater pipe running north south in Walnut Road at an average depth (invert level) of3.3m below existing road surface.

300ø AC water main running north south in Walnut Road at depth of approximately 500mm The fibre optic cable feed to the ICC enters the building in this zone. A 900 diameter live storm water pipe just beyond the existing ICC basement retaining wall Gradients and levels on Walnut Road may need to be adjusted at the developer’s cost to enable

sufficient clearance for the basement link. A link to the ICC would enable parking bays to be shared by ICC management agreement. Loss of existing ICC parking must be kept to the minimum and primary driveway paths

maintained.

Development Area:The maximum development area for the hotel basement is 3000 sq m.1GROUND FLOOR LEVEL

A maximum site area of 3000 sq m is available for future hotel development with a frontage of50 m to Walnut Road and a depth of 60 m. Restrictions at this level will include:

Existing structures comprising Hall 6 and the Aliwal Suite form an integral part of the DurbanExhibition Centre facilities and 780m2 of this space will need to be replaced by the eThekwiniMunicipality or the Developer (possibly within the development), to compensate for the loss ofthese structures. In this regard, tenderers may elect to submit offers on both options(with or without the development of the 780m 2 for the Proposed Portion of Erf 11727 Durban (being a portion of the DEC Site)’s use)

FIRST FLOOR LEVEL Foyer and a possible overhead link across Walnut Road to the ICC west foyer where the

following would apply (refer to Annexure B):o Minimum clearance to underside of overhead link – 5.1 m from top of road surface.o A servitude across Walnut Road to be registered in favour of the hotel developer.o In the event the Tenderer elects to provide the 780m2 conference facilities, the overhead

link should be architecturally integrated with the planned future expansion of meetingrooms in the form of a two level Pod having a coverage of 780 sq m between grid lines 4& 00 of the ICC development

PLANNING REGULATIONSThe site is currently zoned “Government and Municipal Reservation” and is to be rezoned “Special Zone57” to accord with the Convention Centre zoning.

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It is recorded that in terms of the National Environmental Management Act the change in land use mayrequire that an Environmental Impact Assessment be undertaken and this will be commissioned by theCouncil as part of the rezoning process. Tenderers attention is specifically drawn to Clause 11.3 of theConditions of Sale [Part 4] in the event that the eThekwini Municipality is unable to successfully rezonethe site.

The parameters for the hotel development proposal are as follows: Development site area: 3 000 sq mGross basement floor area: 3 000 sq mGross ground floor area: 1 500 sq mGross total development area: 20 000 sq m

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3. TENDER FORM

TENDER NO.

PROPOSED PORTION OF ERF 12380 DURBAN (BEING A PORTION OF ICC SITE)


Head : ProcurementFoyer Area, Ground FloorRennie House41 Victoria EmbankmentDURBAN

I, (Please print fullname and identity number)

in my capacity as_____________________________________________________________

and duly authorised thereto by___________________________________________________(delete where not applicable)

having:-

Inspected and acquainted myself with the Land;

Read and completed the General Instructions to Conditions of Tenderers, Annexure 1 andinitialled each page;

Read and completed the Special Instructions of Tenderers, attached hereto markedAnnexure ‘2’ and initialed each page, if applicable;

Read and completed the Terms and Conditions of Sale, attached hereto marked Annexure“4” and initialed each page.

Read and completed all other documentation required in respect of this tender

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Hereby offer to purchase from the eThekwini Municipality (hereinafter referred to as ‘the Municipality’)the following:

SITE BULK UPSET PRICE (EXCL.VAT)

TENDERED PRICE –(NUMERICAL AND WORDS)excl. VAT

PROPOSEDPORTION OF ERF12380 DURBAN

(BEING APORTION OF ICC

SITE)

15 000 squaremetres

R9 750 000,00(R650/bulk sqm)

OR

PROPOSEDPORTION OF ERF11727 DURBAN(BEING APORTION OF THEDEC SITE)

15 000 squaremetres with a780m2conference facilityto be provided forthe ProposedPortion of Erf11727 Durban(being a portionof the DEC Site)

R 9 000 000,00(R600/bulk sqm)

AND/OR

PROPOSEDPORTION OF ERF11727 DURBAN(BEING APORTION OF THEDEC SITE)

15 000 squaremetres

R 9 000 000,00(R600/bulk sqm)

* The purchase price may not be less than the upset price.

upon the following terms and conditions and the Terms and Conditions of Sale annexed hereto markedAnnexure “4”.

I hereby acknowledge that:

1. This offer shall be irrevocable for a period of 24 weeks from the date fixed for theopening of tenders and may be accepted in writing by the Municipality at any timeduring that period, which acceptance, together with the documents contemplated inclause 7, shall constitute a binding agreement of purchase and sale between theMunicipality and myself.

1

2a

2b

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2. If I sign this tender acting as an agent or trustee for a company not yet incorporatedand if the company is not incorporated and does not receive a certificate entitling itto commence business within sixty (60) days of the acceptance of this tender by theMunicipality, or if, within fourteen (14) days after the issue of a certificate entitlingthe company to commence business, the company fails to ratify, adopt and confirmthe contract and furnish the Municipality with a certified copy of its resolution or suchnominee fails at any time and in any respect to comply with the Terms andConditions of the Sale, I shall be personally liable to the Municipality for the fulfilmentof all the terms and conditions of the sale. I shall be required to furnish proof to theMunicipality within 30 days of acceptance of the tender by the Municipality thatapplication has been made to the Registrar of Companies for the registration of acompany / incorporation of a Close Corporation.

The provisions of this clause shall apply, with appropriate changes, to any personsigning this offer as agent or trustee of a close corporation to be formed.

3. Tenders signed by an agent shall be accompanied by a properly executed power ofattorney and those signed on behalf of a company, close corporation or Trust by acertified extract from the Company/Close Corporation/Trust’s minutes authorisingsignature of the offer on behalf of the Company or Close Corporation/Trust.

4. No tender will be accepted :-

Where the signatory/agent purports to act for a Trust not yet in existence; Where a tenderer acts as a nominee for an unnamed purchaser.

5. * I am not in the service of the state; or* If the Tenderer is not a natural person that any director, manager, principal

shareholder or stakeholder is not a person in the service of the state; or* I am not an advisor or consultant contracted with the municipality or municipal

entity.

6. The Municipality shall not be bound to accept the highest tender or any tender, whichit may receive.

7. Tenders will be adjudicated in terms of the Preferential Adjudication Systemapplicable to the Sale or Lease of Municipality-owned immovable property. In termshereof tenders will be adjudicated based on a point system and points will beawarded to the financial offer tendered and to the empowerment status of theTenderer as set out more fully in Annexure 5 – Special Conditions of Pertaining tothe Sale and Lease of Immovable.

8. The following documents will form part of the Agreement between the Municipalityand myself :

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Annexure 1 - General Instructions To Tenderers

Annexure 2 - Special Instructions To Tenderers In Respect Of Hoy Park GeneralBusiness 3 Site restricted to Hotel

Annexure 3 - Tender Form

Annexure 4 - Conditions Of Sale

Annexure 5 - Special Conditions Pertaining To The Sale And/Or Lease OfImmovable Property In Terms Of The Municipality’s EmpowermentProtocol

Annexure 6 – Checklist.

Annexure 7 – Code of Conduct

(hereinafter referred to as the ‘Agreement’)

9. The purchase price tendered shall be equal to or greater than the upset price. Anytender to purchase at a price below the aforesaid figures shall ipso facto bedisqualified.

10. I hereby waive and abandon any terms and conditions contained in any stationery,which may accompany the submission of this tender.

11. I may not effect additions and/or alterations to the terms and conditions hereof savewhere express provision therefor has been made herein by the Municipality. Tendersmay be submitted by completing, signing and returning Annexures 1 - 6 andattachments thereto in accordance with the Tender Notice and by placing them in asealed envelope marked Notice : Sale of Land – in the Tender Box, Foyer, GroundFloor, Rennie House, 41 Victoria Embankment, Durban. Tenders will be openedpublicly at 11:00 on 1

I enclose a cheque in the sum of R _____________ in respect of the required deposit withthe following conditions being noted; The deposit will be held in a municipal account for the duration of the period which it is toremain open for acceptance by the Municipality, all interest accruing thereon will be for theMunicipality's benefit; The deposit may be forfeited to and retained by the Municipality, in the event of the tenderbeing withdrawn by me before the end of the period during which it is to remain open foracceptance by the Municipality.

1 Insert dates

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In the event of my tender being accepted, I hereby acknowledge that the depositsubmitted shall be used as payment of portion of the purchase price.

In the event of my offer being unsuccessful, I hereby acknowledge that my deposit will berefunded to me, without interest, in terms of the current business practices of theMunicipality.

Any tender which does not comply with the aforegoing general conditions shall be liable fordisqualification.

For all purposes connected with this tender and with the agreement and any legal proceedings arisingtherefrom or written notice to be given thereunder, I hereby choose the addresses given below as mydomicilia citandi et executandi (address to which correspondence or notices should be sent):-

1. Physical Address :

2. Postal Address :

3. Telephone Number: Code ( ) Cellular Number: Code ( ) Facsimile Number: Code ( )

SIGNATURE/S

CAPACITY/IES (where applicable)

ADDRESS:

PRINT NAME/S IN FULL

Identity No(s)/ Registration No. of Company/ Close Corporation/Trust

_________________________________________________________________________

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TELEPHONE NO. CODE ( )

FACSIMILE NO. CODE ( )

CELLULAR NO.

DATE 2005

NAME OF COMPANY/CLOSE CORPORATION:

PRINCIPAL (where applicable)

ADDRESS:

TELEPHONE NUMBER:

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ANNEXURE - Declaration of Close Family Members of Persons in the Service of the State

I hereby declare that:

1. I am a close family member of a person in the service of the state; or

2. I am a close family member who has been in the service of the state in the previous twelve

months

(delete whichever is not applicable)

3. State nature of relationship _________________________________

4. State the name of that person _______________________________

5. State the capacity in which that person is in the award of the state

_______________________________________________________

6. State amount of Tender offered ______________________________

_____________________Signature

________________________Full Names

__________________________ Identity Number

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ANNEXURE - DECLARATION OF MUNICIPAL FEES

I/We do hereby declare that my / our / the company’s Municipal fees, are, as at the date of the tender

closing, fully paid up, or arrangements have been concluded with the Municipality to pay the said fees :

Account Account number

Electricity _____________________________ }

Water _____________________________ }

Rates _____________________________ }

to be completed by tenderer

JSB levies _____________________________ }

_________ _____________________________ }

I/We acknowledge that should it be found that the Municipal fees are not up to date, the Council may

take such remedial action as is required, including termination of contract, and any income due to the

contractor shall be utilised to offset any monies due to the Council.

____________________________ _____________________

Name Signature

____________________________ __________________

Designation Date

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4. TERMS AND CONDITIONS OF SALE

DEFINITIONS AND INTERPRETATION

In this Agreement, unless the context indicates a meaning to the contrary:-

DEFINITIONS

"CONVEYANCERS" means a Conveyancer appointed by the Municipality;

“DATE OF SALE” means the date as determined in terms of Clause 1.1.

"DATE OF SIGNATURE" means the date upon which the last signatory signs this Agreement;

"DATE OF TRANSFER" means the date upon which transfer of the Land is registered in the name of the Purchaser;

“DATE OF OCCUPATION” means the DATE OF TRANSFER

"VAT" means Value Added Tax;

INTERPRETATION

1. This Agreement constitutes the sole memorandum of the Agreement between the partiesrelating to the subject matter hereof and no variation or addition hereto or consensualcancellation hereof shall be of any force or effect unless reduced to writing and signed by theparties.

2. Clause headings in this Agreement are inserted purely for convenience and shall not berelevant in the interpretation of the contents of the clauses to which they relate.

3. In this Agreement, reference to the singular shall be deemed to include the plurals and viceversa, reference to one gender shall be deemed to include the other gender and reference toan individual shall be deemed artificial persons.

4. In this Agreement reference to " City Treasurer; Head: Real Estate; Head: EngineeringServices; Head: Electricity and Head: Waste Water Management; City Medical Officer ofHealth; Director: Parks and Director: Fire", shall mean those officials in the service of theMunicipality or their duly authorised representatives, acting in that capacity.

5. Should any office referred to above become defunct after the commencement of thisAgreement, any reference to such officials shall mean the officer designated by theMunicipality to carry out the duties of the previously defined official.

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6. No indulgence granted by either party in regard to the enforcement of its rights under thisAgreement, shall be construed as a waiver of such rights (unless expressed as such in awritten document signed by the indulgent party) nor shall such indulgence prejudice theindulgent party from strictly enforcing its rights in the event of the subsequent breachthereof.

NOW THEREFORE THE PARTIES HERETO AGREE

1. DATE OF SALE

1.1 The date of sale shall be the date of the registered letter addressed to the Purchaser by theHead: Strategic Projects advising the Purchaser of the fulfilment of the suspensive conditionscontained in clause 12 of this agreement.

1.2 If this sale is not approved this contract shall be deemed to be void ab initio and neither partyshall have any claim against the other in respect thereof.

1.3 For the purposes of the Transfer Duty Act the Purchaser shall pay transfer duty within six (6)months from the date of final signature hereof or such other period as may be determined bythe said Act.

2. PURCHASE PRICE

2.1 The purchase price payable by the Purchaser to the Municipality in respect of the Land shall bethe amount tendered by the Purchaser exclusive of the payment of Value Added Tax (VAT).

2.2 It is recorded that the purchase price does not attract the payment of Value Added Tax.However, should such tax be imposed at any time, the Purchaser shall be liable therefor,notwithstanding that the tax is imposed after conclusion of the sale.

3. PLACE OF PAYMENT

All payments shall be made to the eThekwini Municipality, City Treasurer’s Department, FlorenceMkhize, Smith Street, Durban, or such other place as may be specified in writing by theMunicipality and shall include any exchange payable thereon where applicable.

4. METHOD OF PAYMENT

4.1 The balance of purchase price shall be paid in full or guaranteed to the satisfaction of theMunicipality within thirty (30) days of the date of the sale.

4.2 Should the Purchaser fail to pay the balance of the purchase price within thirty (30) days of thedate of the registered letter or provide a guarantee, as provided for in clause 4.1 above, thePurchaser shall be in breach of this Agreement and the Municipality may proceed in terms of thebreach clause. Interest shall accrue at the rate of eleven percent (11%) per annum from the

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date of sale, to the date of payment, both days inclusive.

4.3 Interest shall not be payable should the balance of the purchase price be paid in full within thirty(30) days of the date of the sale.

4.4 Notwithstanding that a guarantee is furnished within the period stipulated in 4.1 above intereston the balance of the purchase price shall be payable at the rate of eleven percent (11%) perannum from the date of sale to the date of payment, both days inclusive.

4.5 The Municipality shall have the right to vary the rate of interest stipulated in clauses 4.2 and 4.4above in accordance with the rate of interest applicable to land sale transactions as determinedby the Municipality from time to time calculated in the manner prescribed by the Municipality.

4.6 The accrual/payment of interest as provided for in clauses 4.2 and 4.4 above shall not prejudicethe Municipality's right to cancel the sale and retain all monies paid to the date of cancellation.

5. RISK AND RATES

Occupation of the Land shall be given to the Purchaser on the date of transfer, from which datethe Purchaser shall acquire the risk and profit in the Land and shall be liable for all rates, taxesand other charges recoverable from the Land.

6. VOETSTOOTS6.1. The Land is sold voetstoots, without any guarantee whatsoever, and subject to all conditions

and servitudes contained in the Title Deed/s or which have otherwise been imposed on the Landin terms of any law. The Purchaser acknowledges that he has inspected the Land, and that hetakes the Land as it stands and, with full understanding of all his legal rights, hereby waives,renounces and abandons for himself, his heirs, executors, administrators and assigns and allpersons claiming through him and any claims which he or they may have now or at any timehereafter against the Municipality, arising out of any defect, latent or patent, or any fault orshortcoming in the Land and hereby agrees that he and not the Municipality shall be liable forany loss, injury or damage of whatsoever nature or kind, whether direct or indirect, to anyperson or property whatsoever, arising from the Land or out of any such defect, fault and/orshortcoming. The Purchaser shall be deemed to have made himself acquainted with thebeacons, nature, condition, extent and locality of the Land, the Municipality being entirely freefrom all liability in respect thereof.

6.2. The precise area, boundaries and limits of the subdivisions shall be determined in terms ofclause 6.3 hereof and approved by the Surveyor General, which determination and approval shallbe binding upon the parties. The Purchaser agrees to accept the subdivisions as finally surveyed,determined and approved, in discharge of the Municipality’s obligation to deliver thesubdivisions.

6.3 For the purposes of clause 6.2 hereof, the Municipality’s Town Planning Consultant and LandSurveyors conducting the subdivisions and survey shall fix and determine the extent andboundaries of the subdivisions so as to accord as near as practically possible with the location of

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the boundaries and the area shown on the Plan DWG No 25036/SP1 prepared by ZAIArchitecture and Urban Design.

7. TRANSFER

Transfer of the Land shall be given only after payment of the purchase price of the Land in full,together with any interest due thereon or the lodging of a satisfactory guarantee provided thatthe Municipality shall not call for the payment of the outstanding balance of the purchase priceuntil all the suspensive contained herein have been fulfilled.

8. COMPENSATION

In the event of the sale being cancelled the Purchaser shall not be entitled to any compensationfor improvements to the Land whether necessary or otherwise.

9. SERVITUDES

The Land shall be subject to the servitudes as shown on the Subdivisional Diagram onceapproved and the Title Deed of the Land.

10. BEACONS

The Municipality shall give the Purchaser at least seven (7) days notice in writing, sent byregistered post, of the time and date when a Surveyor nominated by the Municipality will be inattendance on the Land for the purpose of pointing out the beacons. Should the Purchaser failto attend at the time and on the date so notified, the Purchaser will be required to pay a fee forthe Surveyor's attendance on any subsequent day and costs of replacing any beacons, all inaccordance with the Land Survey Tariff.

11. DEVELOPMENT /USAGE/TOWN PLANNING ZONING

11.1. The Land shall only be used or developed in accordance with all relevant Municipal By-Laws andTown Planning Scheme Regulations in force from time to time. In this connection it is recordedthat the Land is / is to be rezoned Special Zone 57 in terms of the Town Planning Scheme.

11.2. In the event that the Municipality is unable for any reason whatsoever to procure the successfulrezoning of the Land, where applicable, this agreement shall lapse and be of no further forceand effect. The Purchaser hereby indemnifies and holds the Municipality harmless against allactions, claims and demands, brought or made by it or any other person arising out of thisagreement and against any legal any other costs or expenses that may in it’s discretion beincurred by the Purchaser in examining, resisting or compromising such claims or actions.

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12. CONDITIONS

12.1. SUSPENSIVE CONDITIONS

This agreement is subject to the following suspensive conditions:-

12.2.1. The Purchaser submitting details of the proposed development of the site to the eThekwiniMunicipality and obtaining approval thereof by the eThekwini Municipality’s Head: StrategicProjects within three months of the date of award of the tender.

12.1.1. The Purchaser undertaking a Traffic Impact Study in respect of the envisaged development andfull parking requirements are to be accommodated on site.

12.1.2. It is recorded that a lease exists between the eThekwini Municipality and the DurbanInfrastructure Development Trust in respect of Erven 12380 and 11727 Durban and thisagreement is subject to the eThekwini Municipality successfully amending the existing lease toallow for the unencumbered sale of the Land to the Purchaser.

12.1.3. The conclusion of a Co-Operation Agreement between the Purchaser and the DurbanInstrastructural Development Trust in respect of the sharing and provision of infrastructure andreciprocal servitudes that may be required in order to give effect to the proposed development,including but not limited to the issues surrounding design, implementation and the futureinteraction between the Durban Infrastructural Development Trust and the Purchaser or suchother appropriate agreement that may be envisaged in order to give effect to the proposeddevelopment, including but not limited to the an Agreement of Right of Usus, A LeaseAgreement and / or the registration of an appropriate servitude in respect of the 780m2 podcomprising a conference facility to be provided as contemplated in page 18 of the tender pack, ifapplicable.

The conditions contemplated in 12.1.1 to 12.1.3 inclusive shall be fulfilled by the delivery to theConveyancers of written notification by the eThekwini Municipality and endorsed by the Purchaser,recording fulfilment of the relevant conditions. If any or all of the conditions listed in above are notfulfilled within four months of the award of this tender or within such further period as the parties mayagree in writing then this agreement shall lapse and be of no further force or effect.

12.3. CONDITIONS OF SALE

12.3.1. Except as may otherwise be authorised by the eThekwini Municipality’s Head: Engineering Unitin writing, no cutting or filling shall be permitted on the Land.

12.3.2. Any building erected upon the Land shall be erected in accordance with the National BuildingRegulations and the Building Standards Act 1977, Act No. 103 of 1977 and in accordance withany relevant bylaws.

12.3.3. The Purchaser shall ensure that any building erected on the Land does not encroach over theboundaries of the Land. In the event of any building encroaching onto the neighbouring

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property, the eThekwini Municipality as the Local Authority shall be entitled to demolish theportion of the building which encroaches onto the adjacent property, without payment ofcompensation to the Purchaser. For the purposes hereof, the word “building” shall include“fence” or “wall”.

12.3.4. The Purchaser acknowledges and understands that no buildings shall be erected on the Landwithout being duly approved by the eThekwini Municipality’s Head : Planning and Development.Failure to comply with this condition shall constitute a material breach of this agreement entitlingthe Municipality to cancel this agreement forthwith, without prejudice to any other right which itmay have arising out of this agreement or legislation or to any claim that it may have fordamages arising out of such breach or otherwise.

12. 3. CONDITIONS OF TITLE

13.3.1. The Purchaser’s attention is specifically drawn to certain restrictive conditions of title in the TitleDeed of the Land relating to the use of the Land. It shall be the responsibility of the Purchaserto familiarise himself with such restrictive conditions and, if applicable, to apply at his own riskand cost for the removal of such restrictive conditions of title.

13.3.2. The Land shall be subject to the following condition or any variation thereof as may beconsidered necessary by the Municipality’s Conveyancers, which condition shall be constituted infavour of and shall be enforceable by the Municipality, namely:-

13.3.2.1. The Purchaser shall be required to develop the Land within a period of 2years calculated from the date of sale of the Land.

13.3.2.2. If after a period of 2 years, no such building has been erected on the Land,the Municipality may elect to retain the purchase price paid in respect of theLand and re-take transfer of ownership of the Land at the cost of thePurchaser. The Purchaser undertakes to sign all documentation required togive effect to this clause

If the Council is satisfied that good reasons, beyond the control of the Purchaser, existfor failing to comply with these conditions, the Council shall have the right;

(a) to extend the period of 2 years for such further period as the Council, in itsdiscretion, deems fit; or

(b) to waive application of this condition.

13.3.3. The Land shall be restricted to be used and developed exclusively for Hotel premises In theevent of the this use restriction being amended or removed at a future date, the Municipality hasthe right to claim compensation determined as the fair market value of the Land as at the date ofsuch use being amended or removed.

13.3.4. Subject to any other conditions of title that may be deemed necessary by the eThekwiniMunicipality and / or the Purchaser flowing as a natural consequence of the approveddevelopment of the Land, including any approved SG Diagrams in respect of the Land and the

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conclusion of the Co-Operation Agreement as contained in clause 12.1.6.

13. COSTS

13.1 The Purchaser shall bear all costs incurred in the transaction including those of transfer, TransferDuty, and any costs to endorse the Title Deed in the name of the Municipality, and allconveyancing shall be undertaken by the Municipality's Attorneys.

13.2 In the event that any Value Added Tax or similar tax is imposed on any amounts payable interms of this Agreement the Municipality shall be entitled to recover the amount in questionfrom the

13.3 Purchaser from time to time with effect from the date on which such tax or levy becomespayable.

14. BREACH

14.1 Should the Purchaser fail to pay any sum due under any of these conditions or should he commitany other breach of the Terms and Conditions of Sale hereof the Municipality shall be entitled,by notice posted to the Purchaser, to require him within fourteen (14) days after the date ofposting of such letter, to pay the amount due or to remedy such other breach, as the case maybe.

14.2 Should the Purchaser fail to comply with the terms of the notice posted to him, in accordancewith the provisions of the immediately preceding paragraph within the time specified, theMunicipality may either:

14.2.1 declare the sale cancelled, and retain all monies paid by the Purchaser for its own useand benefit and recover from the Purchaser the balance on the purchase price as may bedue and unpaid at the date of cancellation and such further loss or damage which theMunicipality may be entitled to by reasons of the cancellation.

OR

14.2.2 institute a claim for specific performance in terms hereof against the Purchaser andrecover any loss or damage which the Municipality may have suffered.

14.3 In the event of a cancellation of the sale, in terms of sub-paragraph 14.2.1 above, the Purchasershall not be entitled to claim any compensation from the Municipality in respect of anyimprovements or additions made to the Land or from whatsoever other cause arising, and thePurchaser shall give the Municipality immediate possession of the Land and, should he fail to doso the Municipality shall be entitled by due process of law to eject from the Land the Purchaserand/or any person claiming occupation or possession thereof through the Purchaser.

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15. DOMICILE

15.1 The Purchaser declares that the address

___________________________________________________________________ (NOT A BOX NUMBER) shall be his domicilium citandi et executandi for all purposes inconnection with this sale. In this regard an "address" shall mean an address within the Republicof South Africa.

15.2 Any notice required to be given to the Purchaser in terms hereof shall be deemed to have beenduly served upon him if sent to him by registered post to the address given by him in clause15.1 above.

15.3 The Purchaser's address for service of notices in terms of this paragraph may be varied upon thewritten acknowledgement by the Municipality of a notice in writing by the Purchaser of suchvariation.

16. LEGAL ACTION

The Purchaser agrees that in the event of it being necessary for the Municipality to take legalaction as a result of any breach of the terms of this Agreement, the Purchaser shall be liable topay all the Municipality's legal costs, including attorney and client costs.

17. MAGISTERIAL JURISDICTION

The Purchaser consents and agrees in terms of section 45 of the Magistrates' Courts Act, 1944(Act 32 of 1944) as amended, to the Magistrate's Court which has jurisdiction in terms of section28(1) of the said Act having jurisdiction in respect of any action or proceedings the Municipalitymay institute against him in terms of this Agreement notwithstanding that such action orproceeding may be otherwise beyond the jurisdiction of the said Court.

18. WAIVER

Failure by the Municipality to timeously enforce any of its rights in terms hereof shall not beconstrued as a waiver and all the Municipality's said rights are reserved in this regard.

19. REPRESENTATIONS

This Agreement constitutes the whole and only Agreement between the parties, and norepresentations, express or implied which are not recorded herein shall be binding, and novariation of this Agreement shall be of any force or effect until recorded in writing and signed onbehalf of both parties by a person deemed to be or duly authorised to do so.

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5. SPECIAL CONDITIONS PERTAINING TO THE SALE AND/OR LEASE OFIMMOVABLE PROPERTY IN TERMS OF THE MUNICIPALITY’S EMPOWERMENTPROTOCOL

Special Conditions of TenderPertaining to the Sale or Lease of Immovable Property

by Tender in terms of the Preferential Adjudication System

PARTICIPATION AND CONDITIONS PERTAINING TO TARGETED PROCUREMENT FORCONTRACTS

The eThekwini Municipality has committed itself to the following key priorities with respect to allprocurement dealings.

Increased usage of local resourcesRedressing of skewed employment and ownership patterns through black economic empowermentCreation of Opportunities for job creation and poverty alleviation (Community participation)Stimulation of Skills Development and TransferFast tracking the Growth and ensuring sustainability of SMME’s

For the purposes of determining the degree of preference to be accorded, tenderers are required tocomplete the declaration affidavit for targeted enterprises.

DEFINITIONS

Historically Disadvantaged Individual (HDI): The definition includes Black, Women, and DisabledIndividuals and preference has been given to all these target groups who, due to the apartheid policythat had been in place, had no franchise in national elections prior to the introduction of theConstitution of the Republic of South Africa, 1983 (Act no 110 of 1983) or the Constitution of theRepublic of South Africa, 1993 (Act No 200 of 1993) (the Interim Constitution). Provided that a personwho obtained South African citizenship on or after the coming to effect of the Interim Constitution, isdeemed not to be an HDI.

Disabled Person (DP): means, in respect of a person, a permanent impairment of a physical,intellectual, or sensory function, which results in restricted, or lack of, ability to perform an activity inthe manner, or within the range, considered normal for a human being.

Woman (W): A female person who is a South African citizen and a female at birth.

Priority Population Group (PPG): Black Individuals who fall into population groups that were notoffered a franchise in the national elections before or after the introduction of the 1984 tri-cameralparliamentary system and only received a franchise during 1994.

Black Business Enterprise (BBE): At least 26% Black Owned in terms of equity and votingrights/powers, with a corresponding management representation at all levels.

Priority Business Enterprise (PBE): At least 26% Owned by individuals which are from the PriorityPopulation Group in terms of equity and voting rights/powers, with a corresponding managementrepresentation at all levels.

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Women Business Enterprise (WBE): At least 26% Women Owned in terms of equity and votingrights/powers, with a corresponding management representation at all levels.

Disabled Persons Business Enterprise (DPBE): At least 26% Disabled Owned in terms of equityand voting rights/powers, with a corresponding management representation at all levels.“Disablity” means, in respect of a person, a permanent impairment of a physical, intellectual, or sensoryfunction, which results in restricted, or lack of, ability to perform an activity in the manner, or within therange, considered normal for a human being.

SMMEs: Small, Medium and Micro Enterprises.

Influenced Enterprise: 'Influenced' in a category is when ownership in that particular category isbetween 26 and 50 percent, with corresponding management representation at Board, Executive andOperational levels.

Empowered Enterprise: 'Empowered' in a category is when ownership in that particular category isbetween 51 and 75 percent, with corresponding management representation at Board, Executive andOperational levels.

Substantially Owned Enterprise: 'Substantially owned' in a category is when ownership in thatparticular category is between 76 and 100 percent, with corresponding management representationat Board, Executive and Operational levels.

Local Content/Resources: Preference points shall be allocated in terms of the location of theenterprise/individual where applicable in the following order of preference: eThekwini Municipality Area(EMA); Kwa Zulu Natal (KZN); South Africa (SA)

Commercially Useful Function: The possession and exercise of legal authority and power tomanage the assets , goodwill and daily operations of a business and the active and continuous exerciseof appropriate managerial authority and power in determining the policies and directing the operationsof the business.

Direct Preference: A preference points system which awards tenders on the basis of points for priceand/or the procurement developmental objectives of the eThekwini Municipality.

Executive Director: A partner in a partnership, a director of a company established in terms of theCompanies Act, 1973 (Act 61 of 1973) or a member of a close corporation registered in terms of theClose Corporation Act, who, jointly and severally with their other partners, co-directors or co-members,as the case may be, bears the risk of business and takes responsibility for the management andliabilities of the partnership, company, or close corporation.

Municipality : The eThekwini Municipality

Owned: Having all the customary incidents of ownership, including the right of disposition, andsharing all the risks and profits. Commensurate with the degree of ownership interest’s as demonstratedby an examination of the substance, rather than the form of ownership arrangements.

Preferential Procurement Policy: A procurement policy which uses procurement as an instrument of

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social policy in South Africa to affirm the changed environment, government’s socio-economic objectivesand the principals of the Preferential Procurement Policy Framework Act (2000).

Purchaser: Any person, body, or legal entity who enters into a contract with the Municipality for theacquisition of property, both movable and immovable. A Tenderer whose tender has been acceptedbecomes a Purchaser.

Targeted Procurement: A system of procurement which provides employment and businessopportunities for marginalised individuals and communities, enables procurement to be used as aninstrument of social policy in a fair, equitable, competitive, transparent and cost-effective manner andpermits and social objectives to be quantified, measured, verified and audited.

Terms and Conditions of Sale : A legally binding agreement between the Municipality and thePurchaser for the acquisition of property, both movable and immovable by the later.

SMME InformationAs defined in the table below (Source : Small Business Act no 102 of 1996).

COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5

Sector or sub-sectorsin

accordance with theStandard IndustrialCouncil

Size of class

Total full timeequivalent of paidemployees

< & =

Total annualturnover

< & =

Total gross assetvalue(fixed propertyexcluded)

< & =

Agriculture Medium 100 R5m R5m

Small 50 R3m R3m

Very Small 10 R0.50m R0.50m

Micro 5 R0.20m R0.10m

Mining andQuarrying

Medium 200 R39m R23m

Small 50 R10m R6m

Very Small 20 R4m R2m


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Manufacturing Medium 200 R51m R19m

Small 50 R13m R5m



Electricity, Gasand Water


Small 50 R13m R5m

Very Small 20 R5.10 R1.90m


Construction Medium 200 R26m R5m

Small 50 R6m R1m

Very Small 20 R3m R0.50m


Retail and MotorTrade andRepair Service

Medium 200 R39m R6m

Small 50 R19m R3m



WholesaleTrade,CommercialAgents andAllied Services


Small 50 R32m R5m



Catering,Accommodationand other Trade

Medium 200 R13m R3m

Small 50 R6m R1m



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Transport,Storage andCommunications

Medium 200 R26m R6m

Small 50 R13m R3m



Finance andBusinessServices

Medium 200 R26m R5m

Small 50 R13m R3m



Community Social andPersonalServices

Medium 200 R13m R6m

Small 50 R6m R3m



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ADJUDICATION OF TENDERS ON A POINTS SYSTEM

The following shall be the system of Adjudicating tenders on a preference point allocation system.

Examination of Tenders and Determination of Responsiveness

Prior to the detailed evaluation of tenders, the Employer/Municipality shall determine whether eachtender:

meets the requirements of these Conditions of Tender; has been properly signed; is responsive to the requirements of the procurement documents; provides any clarification and/or substantiation that the Employer/Municipality may require; complies with the tender submission requirements in all other respects.

A responsive tender is one which conforms to all the terms, conditions and Specifications of the tenderwithout material deviation or qualification. A material deviation or qualification is one which, in theMunicipality's opinion:

changes the Municipality's or the Tenderer’s risks and responsibilities under the Contract; or would affect the competitive position of other Tenderers presenting responsive tenders, if it were to berectified.

If the tender does not meet the requirements or is not responsive, it will be rejected by the Municipality,and may not subsequently be made acceptable to the Municipality by correction or withdrawal of thenon-conforming deviation or reservation.

Adjudication Using a Points System

Responsive tenders will be adjudicated by the Municipality using a system which awards points on thebasis of :

the tendered price (Np) the status of the person/enterprise in terms of ownership. (No)

The Municipality will normally award the Contract to the Tenderer obtaining the highestnumber of points, but will not bind itself to do so.

The preference points in the adjudication methods used for tenders for acquisition of Land, shall be :

For tenders with a Rand value below (<) R500 000 a maximum of 20 points may be allocated forspecific goals provided that the highest acceptable tender scores 80 points for price.

For contracts with a Rand value above (>) R500 000 a maximum of 10 points may be allocatedfor specific goals provided that the highest acceptable tender scores 90 points for price.

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Participation goals and preferences will be set for companies who meet the minimumrequirements in terms of a Balanced Score Card as stipulated in the Department of Tradeand Industry’s Broad Based Black Economic Empowerment Strategy. This will apply mainlyto major contracts and/or engagements.

No preference points, in respect of equity ownership, will be allocated to public companies and tertiaryinstitutions.

Points Awarded for Price (Np)

The following formula must be used to calculate the points for price. A maximum of 80/90 points isallocated to Price on the following basis;

, for values below R500 000, and

, for values above R500 000.

Points Awarded in respect of the Status of the Person/Enterprise (No)

A maximum of 20 (twenty) points in respect of tender values (upset price) less than R500 000, and 10(ten) points in respect of tender values (upset price) more than R500 000 may be awarded to

persons who comply with the criteria set out below for HDI Status ;or businesses which comply with the criteria set out below, are legal entities registered with the

South African Revenue Service, are continuing and Independent Enterprises for profit whichperform

Commercially Useful Functions and have been operating as such for at least 3 months prior tothe closing date for tenders.

Tender adjudication points relating to an enterprise's or person's status will be granted only if theMunicipality is fully satisfied that the enterprise meets the relevant criteria; such credits will be grantedat the Municipality's sole discretion and will be based on the information presented.

80/20 (<R500 000)Status of IndividualBlack PPG Women Disabled Total/Max4.00 8.00 4.00 4.00 20.00Note:Where individuals married in Community of Property to each other, the points for each of the spousesare to be added together and divided by two

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80/20 (<R500 000)

Status of Enterprise Ownership

% Ownership Black PPG Women Disabled Total

26 to50

Influenced 0,50 1,00 0,75 0,50

51 to75

Empowered 1,50 3,00 1,50 1,25

76 to100

Substantial 2,50 5,00 2,50 2,00

Status/Size

SMME Total

General

2,00

BBE At least Empowered (>50%) 1,00

PBE At least Empowered (>50%) 1,00

WBE At least Empowered (>50%) 1,00

DPBE At least Empowered (>50%) 1,00

Sub Total 6,00

Location

LocalContent

Total

SA 0,50

KZN 1,00

EMA 2,00

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90/100 (>R500 000)Status of IndividualBlack PPG Women Disabled Total/Max2.00 4.00 2.00 2.00 10.00Note:Where individuals married in Community of Property to each other, the points for each of the spousesare to be added together and divided by two

90/10 (>R500 000)

Status of Enterprise Ownership

% Ownership Black PPG Women Disabled Total

26 to 50 Influenced 0,25 0,50 0,38 0,25

51 to 75 Empowered 0,75 1,50 0,75 0,68

76 to 100 Substantial 1,25 2,50 1,25 1,00

Status/Size

SMME Total

General 1,00

BBE At least Empowered(>50%)

0,50

PBE At least Empowered(>50%)

0,50

WBE At least Empowered(>50%)

0,50

DPBE At least Empowered(>50%)

0,50

Sub Total 3.00LOCATION

Local Content Total

SA 0,50

KZN 1,00

EMA 2,00

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Total Tender Adjudication Points

The total number of tender adjudication points awarded (N), is the sum of :

Np + No (not to exceed 100)

Process to be confidential

The following notes pertain to process confidentiality

Information supplied by Tenderers and information relating to the clarification, evaluation and adjudication of tenders and the award of a contract will not be disclosed to Tenderers or any otherperson not officially concerned with such process.

Any effort by a Tenderer to influence the Municipality's processing of tenders or the award of the tendermay result in the rejection of his/her tender.

Documentation to be Submitted in support of tender:

The following documents must be submitted in support of tender

PART A - Tenderers who wish to claim points in respect of their individual status must complete anApplication Form for the Award of Points in respect of the Status of an Targetted Persons(bound in this document), and shall, as relevant, include in their tender submissions thefollowing duly completed forms:

Declaration affidavit for a targeted enterprise/s Copy of Identity Book – page 1

PART B - Tenderers who wish to claim points in respect of their enterprise status must complete anApplication Form for the Award of Points in respect of the Status of an Enterprise (bound inthis document), and shall, as relevant, include in their tender submissions the following dulycompleted forms:

Declaration affidavit for a targeted enterprise/s The BEE scorecard (in respect of the relevant adjudication method)

Failure to :- submit completed forms; and / or the submission of incomplete forms referred to above; or sign the appropriate Declarations

shall be deemed to imply that the Tenderer is not claiming points in respect of his enterprise status, inwhich case points will be awarded only on the basis of the tendered price. Preference points will notbe awarded in that case.

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Documentation to be submitted by the successful tenderer or tenderers underconsideration

Tenderers shall submit any other document (s) that may be required by the Municipality which is / arerelevant to the tender and which may be required for tender adjudication purposes.

Penalties for Falsifying the Tender Declaration Affidavit

The following shall be the method of calculating penalties for falsifying the tender declaration Affidavitor change in enterprise status after award of tender without written consent from theEmployer/Municipality.

Where a Purchaser was awarded tender adjudication points in respect of HDI parameters or enterpriseparameters and the information given in the Tender Declaration Affidavit is found to be false, thePurchaser shall forfeit his/her deposit lodged in terms of the General Conditions of Tender.

In addition the tenderer will be liable to prosecution and disqualification from futureMunicipality tenders.

Validity of Declaration Affidavits for Targeted Persons/Enterprises

That should a tenderer claim HDI status, whether incorrectly and/ or fraudulently on anytender, such tenderer shall immediately be disqualified from tendering.

That should a tender be found to be fraudulent, the tenderer shall be disqualified from all futuretenders for a minimum period of 24 months, or as otherwise decided by the eThekwiniMunicipality.

THAT IT IS PRIMARILY THE RESPONSIBILITY OF THE TENDERER TO UNDERSTANDTHE RELEVANT CRITERIA, DEFINITIONS AND INTERPRETATIONS THAT ARENECESSARY TO COMPLY IN CLAIMING SUCH STATUS.

IT SHOULD BE NOTED THAT THE FINAL DECISION TO ACCREDIT ANY BUSINESS FORPREFERENCE POINT AWARD RESTS WITH THE PROCUREMENT MONITORINGDEPARTMENT.

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DECLARATION AFFIDAVIT FOR A TARGETED PERSON/S

NOTE TO TENDERERS

This form must be completed by all individuals claiming preference on the basis of being aHistorically Disadvantaged Individual (Priority Population Group) or being a Black personor a woman or a disabled person) and must be signed before a Commissioner of Oaths.

All tenderers wishing to claim points on basis of preferential adjudication system mustattach a photo copy of page one of their identity document.

Failure to do will result in the non - award of preferential points to the tender.

Name of Person:

.............................................................................

Identity Number :

.......................................................................

1. Category of Targeted Person/s[NOTE: Persons may be classified in more than one category]

Priority Population Group (PPG) Woman (W) Disabled Person (DP)

Black Person (B)

Marital Status

in Community of Property to each other out of in Community of Property

Traditional Marriage

Single/ Divorced/Widowed

PART A

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DECLARATION AFFIDAVIT FOR TARGETED PERSONS

I/WE, THE UNDERSIGNED, CERTIFY THAT THE INFORMATION SUPPLIED IN TERMS OF THISDOCUMENT WITH ADDITIONAL INFORMATION IS CORRECT AND ACCURATE AND ACKNOWLEDGESTHAT

1. I comply with all requirements for recognition as a Black / Priority Population Group / Woman /Disabled Person as defined, and

2. The contents of this Affidavit are within my personal knowledge, and save where statedotherwise are to the best of my belief both true and correct.

3. The person will be required to furnish documentary proof the claims if requested to do so.

4. If the information supplied is found to be incorrect then the eThekwini Municipality in addition toany remedies, it may have; may

a. Recover from the person all costs, losses or damages incurred or sustained by theMunicipality as a result of the award of the contract, and/or

b. Cancel the contract and claim any damages which the Municipality may suffer by havingto make favourable arrangements after such cancellations, and/or

c. Impose a penalty on the person as provided in the Tender Documents, and/ord. Take any other action as may be deemed necessary

Signature .............................................................................................

Name ...................................................................................................

I.D Number ..........................................................................................

Address ................................................................................................

.............................................................................................................

Telephone ............................................................................................

Signed and sworn to before me at...........................................................on this the ..........................day of .............................................by the Deponent, who hasacknowledged that he/she knows and understands the contents of this document, that it is true andcorrect to the best of his/her knowledge and that he/she has no objection to taking the prescribed oath,and that the prescribed oath will be binding on his/her conscience.

Commissioner of Oaths .....................................................

NOTE: All pages of this Affidavit must be initialed by both the Deponent and theCommissioner of Oaths

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DECLARATION AFFIDAVIT FOR A TARGETED ENTERPRISE/S

Name of Enterprise

................................…………………………..................................................................

Trading as :

......................................................................................................................................

1. Category of Targeted Enterprise (tick appropriate box(es)[NOTE: Enterprise may be classified in more than one category]

Black Business Enterprise (BBE) Substantially Owned Enterprise (BBE 1) Empowered Enterprise (BBE 2) Influenced Enterprise (BBE 3) Priority Business Enterprise (PBE) Substantially Owned Enterprise (PBE 1) Empowered Enterprise (PBE 2) Influenced Enterprise (PBE 3) Woman Business Enterprise (WBE) Substantially Owned Enterprise (WBE 1) Empowered Enterprise (WBE 2) Influenced Enterprise (WBE 3) Disabled Person Business Enterprise (DPBE) Substantially Owned Enterprise (DPBE 1) Empowered Enterprise (DPBE 2) Influenced Enterprise (DPBE 3) Small, medium or micro enterprise (SMME) Empowered Enterprise (SMME 1) General (SMME 2)

2. Date on which enterprise was established ? .......................(ccyy/mm/dd)

3. Nature of enterprise (tick appropriate box(es)):

Enterprise for profit Non-profit enterprise Non-governmental organisation Co-operative enterprise

PART B

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Describe all property agreements relating to facilities used by the enterprise and the nature of theagreements indicating whether facilities are owned or leased by the enterprise:

FACILITY MONTHLYRENTALAMOUNT

OWNER AGREEMENT TYPE(VERBAL/WRITTEN)

5. Complete the following information for each partner, proprietor, shareholder, director and officerof the enterprise (viz, chairman, secretary, director etc.

TITLE NAME I.D. NUMBERStatus (tick if applocable)

BlackPerson

Woman DisabledPerson

priority

Nonpriority

priority

Nonpriority

priority

Nonpriority

OWNERSHIP %

VOTING %

% OFTIMEDEVOTED TO THEENTERPRISE

HOMEADDRESS

6. Identify any owner or management office bearer who has an ownership interest inanother firm.

OWNER /MANAGER

I.D NUMBER NAME ANDADDRESS OFOTHER FIRM

TITLE IN OTHERFIRM

% OFOWNERSHIP

TYPE OFBUSINESS OFOTHER FIRM

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NOTE: - where owners are themselves a company or partnership, identify the ownership of the holdingfirm. - Where owners are themselves disabled a medical certificate is required to be attached for

verification purposes.

7. Identify any owner or management official who is an employee of or has duties in another businessenterprise.

NAME I.D NUMBER DUTIES AS EMPLOYEE IN OTHER FIRM

NAME AND ADDRESSOFOTHER FIRM

TYPE OFBUSINESS OFOTHER FIRM

8. List the major items of equipment and vehicles owned by the enterprise.

ITEM QUANTITY PRESENT VALUE (Rands) AMOUNT OWING (Rands)(If not freehold)

8.1 State the enterprises’ total gross asset value (fixed property excluded) R _______________

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9.Identify by name, status and length of service, those individuals in the enterprise (including ownersand non-owners) responsible for day-to-day financing decisions.

NAME I.DNUMBER

HOMEADDRESS

STATUS (tick as applicable)

Black Person


Priority

Non Priority

Priority

Non Priority

Priority

Non Priority

LENGTHOFSERVICE(YEARS)

FinancingDecisions

ChequeSigning

Signing &Co-SigningFor Loans

AcquisitionOf Lines OfCredit

Sureties

MajorPurchaseOrAcquisitions

SigningContracts

10. Identify by name, status and length of service, those individuals in the enterprise (includingowners and non non-owners) responsible for day-to-day management decisions.

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NAME I.DNUMBER

HOMEADDRESS

STATUS (tick as applicable)

Black Person


Priority

Non Priority

Priority

Non Priority

Priority

Non Priority

LENGTHOFSERVICE(YEARS)

ManagementDecisions

Estimating

MarketingAnd SalesOperations

Hiring AndFiring OfManagementPersonnel

Hiring AndFiring OfNonManagementPersonnel

SupervisionOf OfficePersonnel

SupervisionOfField/ProductionActivities

11. How many full time (FT) and part time (PT) staff members are employed by the enterprise :

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Historically Disadvantaged Individuals

PRIORITY NON PRIORITY

OTHER

FT PT FT PT FT PT

Male

Female

12. How many full time (FT) and part time (PT) Disabled members are employed by theenterprise :

Historically Disadvantaged Individuals

PRIORITY NON PRIORITY

OTHER

FT PT FT PT FT PT

Male

Female

13. How many staff members have joined the enterprise in the last 6 months :

Full time : ..............................................

Part time : ..............................................

14. List the personnel or firms who provide the following services :

SERVICE NAME CONTACT PERSON TELEPHONE

ACCOUNTING

LEGAL

AUDITING

INSURANCE

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15. Identify any amounts of money loaned to your enterprise, indicating the loan source, date andamount.

LOAN SOURCE ADDRESS DATE OFLOAN

LOANAMOUNT

AMOUNT PAIDTO DATE

16. List a maximum of five contracts that your enterprise is engaged in and have not yet completed.

CONTRACT DESCRIPTION LOCATION FOR WHOM CONTRACTAMOUNT

EXPECTEDCOMPLETION(MONTH ANDYEAR)

17. List the four largest assignments completed by your enterprise in the last three years.

WORK PERFORMED FOR WHOM CONTACT PERSON &TELEPHONE NUMBER

CONTRACTAMOUNT

18. What is the enterprise's average annual turnover (excluding VAT) during the lesser of the periodfor which the business has been operating or the previous three Financial Years.

R.......................................................

19. SMME Information The following table must be completed in order to establish whether a business can be classified

as an SMME in terms of the National Small Business Act 102 of 1996. Indicate the Sector byticking the appropriate block in column 1 and then tick the corresponding information blocks in

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columns 2, 3, 4 and 5.

COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5

Sector or sub-sectorsin

accordance with theStandard IndustrialCouncil

Size of class

Total full timeequivalent of paidemployees

< & =

Total annualturnover

< & =

Total gross assetvalue(fixed propertyexcluded)

< & =

Agriculture Medium 100 R5m R5m

Small 50 R3m R3m



Mining andQuarrying


Small 50 R10m R6m



Manufacturing Medium 200 R51m R19m

Small 50 R13m R5m



Electricity, Gasand Water


Small 50 R13m R5m

Very Small 20 R5.10 R1.90m


Construction Medium 200 R26m R5m

Small 50 R6m R1m



Retail and MotorTrade andRepair Service

Medium 200 R39m R6m

Small 50 R19m R3m



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WholesaleTrade,CommercialAgents andAllied Services


Small 50 R32m R5m



Catering,Accommodationand other Trade

Medium 200 R13m R3m

Small 50 R6m R1m



Transport,Storage andCommunications

Medium 200 R26m R6m

Small 50 R13m R3m



Finance andBusinessServices

Medium 200 R26m R5m

Small 50 R13m R3m



Community Social andPersonalServices

Medium 200 R13m R6m

Small 50 R6m R3m



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DECLARATION AFFIDAVIT FOR TARGETED ENTERPRISE STATUS

I/WE, THE UNDERSIGNED, WHO WARRANTS THAT HE/SHE IS DULY AUTHORISED TO DO SO ON BEHALF OF THEENTERPRISE, CERTIFIES THAT THE INFORMATION SUPPLIED IN TERMS OF THIS DOCUMENT WITH ADDITIONALINFORMATION IS CORRECT AND ACCURATE AND ACKNOWLEDGES THAT

1. The enterprise complies with all requirements for recognition as a Black / Priority Population Group / BlackBusiness Enterprise / Priority Business Enterprise / Woman Business Enterprise / Disabled PersonEnterprise / SMME (Delete as applicable) as defined, and

2. The contents of this Affidavit are within my personal knowledge, and save where stated otherwise are tothe best of my belief both true and correct.

3. The enterprise will be required to furnish documentary proof the claims if requested to do so.

4. If the information supplied is found to be incorrect then the eThekwini Municipality in addition to anyremedies, it may have; may

a. Recover from the Enterprise all costs, losses or damages incurred or sustained by the Municipalityas a result of the award of the contract, and/or

b. Cancel the contract and claim any damages which the Municipality may suffer by having to makefavourable arrangements after such cancellations, and/or

c. Impose a penalty on the Enterprise as provided in the Tender Documents, and/ord. Take any other action as may be deemed necessary

Signature ....................................................................

Name .................................................................

I.D Number .............................................................

Duly Authorised to sign on behalf of .........................

Address ................................................................

.....................................................................................

Telephone....................................................................

Signed and sworn to before me at ..................................................... on this the ..........................dayof .............................................by the Deponent, who has acknowledged that he/she knows and understands thecontents of this document, that it is true and correct to the best of his/her knowledge and that he/she has noobjection to taking the prescribed oath, and that the prescribed oath will be binding on his/her conscience.

Commissioner of Oaths ..............................................

NOTE: All pages of this Affidavit must be initialed by both the Deponent and the Commissioner ofOaths

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6. CHECKLIST

Tenderers are requested to complete the following checklist to assist in ensuring that all therequisite information required in terms of this document has been included

ITEM CHECKHas each page of the Tender Pack been initialed and signed

where applicable?Is the Cheque in the amount of the required deposit attached to

the Tender Pack?Is the requisite valid Tax Clearance from SARS attached to the

tender pack?Has the Declaration of Close Family Members of Persons in the

Service of the State been completed, if applicable?If signing this tender as an agent, is a properly executed power

of attorney attached to the Tender Pack? If signing on behalf of Company/CC or Trust is a certified extract

of authority attached to the Tender Pack?Has preference been claimed in terms of the Preferential

Adjudication System?Natural Persons

Is a copy of the fist page of my Identity Book attached to

the Tender Pack?

Have I completed the requisite Affidavit (Part A)?Companies/CCs

Has the Affidavit (Part B) been completed?

Has all the requisite company/CC/Trust documentation

been attached to the Tender Pack?

Signature _____________________________________________

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7. Code of Conduct for Supply Chain Management Practitioners and Other RolePlayers

1. INTRODUCTION

Section 217.(1) of the Constitution of the Republic of South Africa reads asfollows:

“When an organ of state in the national, provincial or local sphere of governments, or anyother institution identified in national legislation, contracts for goods or services, it must doso in accordance with a system which is fair, equitable, transparent, competitive and cost-effective”.

It goes without saying that, in addition to the foregoing requirements, it is essential that theprocurement of goods and services, including engineering and construction works as well asdisposals of assets, by eThekwini Municipality should not be affected, or tainted, by illegalaction, or default, at any stage of the process, by any party involved.

The foregoing serves to establish the broad framework within which an action, or default, byany party to the procurement process should be judged. Any action, or default, whichconflicts with the objectives of section 217.(1) of the Constitution, or which is illegal, isunacceptable.

A party to the procurement process, who wittingly, commits an unacceptable action, ordefault, renders itself liable to the appropriate sanction, or even, in the case of an illegalaction, or default, to prosecution.

This document contains general principles to be followed and examples ofactions, or defaults, by parties to the public procurement process, which areunacceptable. The lists of examples are, however, not exhaustive and each

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party must, itself, assess whether an action, or default, would beunacceptable in the light of section 217.(1) of the Constitution, or be illegal.

In addition, Municipal Supply Chain Management Regulation 46(4) statesthat the Supply Chain Management Policy of a municipality has to take into

account the National Treasury’s code of conduct for supply chainmanagement practitioners and other role players. Alternatively a municipalitymay adopt the National Treasury code of conduct. When adopted, this codeof conduct becomes binding on all officials and other role players involved in

the implementation of the supply chain management policy of themunicipality or municipal entity

Apart from the fulfillment of the above legislative requirement, this Code ofConduct serves to promote mutual trust and respect and an environment wherebusiness can be conducted with integrity and in a fair and reasonable manner.

2. CORPORATE GOOD PRACTICE

2.1 General Principles

2.1.1. The municipality commits itself to a policy of fair dealing and integrity in theconducting of its business. Officials and other role players involved in supply chainmanagement (SCM) are in a position of trust, implying a duty to act in the publicinterest. Officials and other role players should not perform their duties to unlawfullygain any form of compensation, payment or gratuities from any person, orprovider/contractor for themselves, their family or their friends.

2.1.2. Officials and other role players involved in SCM should ensure that they perform theirduties efficiently, effectively and with integrity, in accordance with the relevantlegislation, policies and guidelines. They should ensure that public resources areadministered responsibly.

2.1.3. Officials and other role players involved in SCM should be fair and impartial in theperformance of their functions. They should at no time afford any undue preferentialtreatment to any group or individual or unfairly discriminate against any group orindividual. They should not abuse the power and authority vested in them.

2.2. Conflict of interest

2.2.1. An official or other role player involved with supply chain management –

must treat all providers and potential providers equitably; may not use his or her position for private gain or to improperly benefit another person;

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may not accept any reward, gift, favour, hospitality or other benefit directly or indirectly,including to any close family member, partner or associate of that person, of a valuemore than R350;

must declare to the accounting officer details of any reward, gift, favour, hospitality orother benefit promised, offered or granted to that person or to any close family member,partner or associate of that person;

must declare to the accounting officer details of any private or business interest whichthat person, or any close family member, partner or associate, may have in anyproposed procurement or disposal process, or in any award of a contract by themunicipality ;

must immediately withdraw from participating in any manner whatsoever in aprocurement or disposal process or in the award of a contract in which that person, orany close family member, partner or associate, has any private or business interest;

must declare any business, commercial and financial interests or activities undertakenfor financial gain that may raise a possible conflict of interest;

should not place him/herself under any financial or other obligation to outside individualsor organizations that might seek to influence them in the performance of their officialduties; and

should not take improper advantage of their previous office after leaving their officialposition.

2.3. Accountability

2.3.1 Practitioners are accountable for their decisions and actions to the public.

2.3.2. Practitioners should use public property scrupulously.

2.3.3. Only accounting officers or their delegates have the authority to commit themunicipality to any transaction for the procurement of goods and / or services.

2.3.4. All transactions conducted by a practitioner should be recorded and accounted for inan appropriate accounting system. Practitioners should not make any false ormisleading entries into such a system for any reason whatsoever.

2.3.5. Practitioners must assist the accounting officer in combating fraud, corruption,favouritism and unfair and irregular practices in the supply chain managementsystem.

2.3.6. Practitioners must report to the accounting officer any alleged irregular conduct in thesupply chain management system which that person may become aware of,including

(i) any alleged fraud, corruption, favouritism or unfair conduct;(ii) any alleged contravention of the policy on inducements, rewards, gifts and

favours to municipalities or municipal entities, officials or other role players; and(iii) any alleged breach of this code of conduct.

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2.3.7. Any declarations made must be recorded in a register which the accounting officermust keep for this purpose. Any declarations made by the accounting officer must bemade to the mayor who must ensure that such declaration is recorded in the register.

2.4. Openness

2.4.1. Practitioners should be as open as possible about all the decisions and actions thatthey take. They should give reasons for their decisions and restrict information only ifit is in the public interest to do so.

2.5. Confidentiality

2.5.1. Any information that is the property of the municipality or its providers should beprotected at all times. No information regarding any bid / contract / bidder / contractormay be revealed if such an action will infringe on the relevant bidder’s / contractor’spersonal rights.

2.5.2. Matters of confidential nature in the possession of officials and other role playersinvolved in SCM should be kept confidential unless legislation, the performance ofduty or the provisions of law requires otherwise. Such restrictions also apply toofficials and other role players involved in SCM after separation from service.

2.6 Bid Specification / Evaluation / Adjudication Committees

2.6.1. Bid specification, evaluation and adjudication committees should implement supplychain management on behalf of the municipality in an honest, fair, impartial,transparent, cost-effective and accountable manner.

2.6.2 evaluation / adjudication committees should be familiar with and adhere to theprescribed legislation, directives and procedures in respect of supply chainmanagement in order to perform effectively and efficiently.

2.6.3 All members of bid adjudication committees should be cleared by the accountingofficer at the level of "CONFIDENTIAL" and should be required to declare theirfinancial interest annually.

2.6.4 No person should-

(a) interfere with the supply chain management system of the municipality; or

(b) amend or tamper with any price quotation / bid after its submission.

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2.7. Combative Practices

2.7.1 Combative practices are unethical and illegal and should be avoided at all cost. Theyinclude but are not limited to:

(i) Suggestions to fictitious lower quotations;(ii) Reference to non-existent competition;(iii) Exploiting errors in price quotations / bids;(iv) Soliciting price quotations / bids from bidders / contractors whose names appear

on the Register for Tender Defaulters.

3. THE PARTIES TO THE PROCUREMENT PROCESS

The various parties that could be involved in the procurement and disposal public process arethe following, which are denoted by capital initial letters in this document.

Employer :Any Output Unit or Department within eThekwini Municipality procuringgoods, services or engineering and construction works, including otherpublic bodies/ partners assisting in, or exercising control over, theprocurement process e.g. BID COMMITTEES.

Official :An employee of the Employer.

Agent :One who acts on behalf of the Employer.

Consultant :A professional service provider engaged by the Employer.

Tenderer :One who submits a competitive bid for the supply of goods, services, orengineering and construction works to the Employer.

Contractor :The successful Tenderer to whom the Employer awards the contract forthe supply of goods, services, engineering or construction works.

Subcontractor :One who contracts to a Contractor to assist the latter in the execution ofhis/her contract by supplying certain goods, services, or works.

Representative :Any member of the public, or of the private sector, who may serve on theAppeal Authority or an Advisor who may serve in any of the other BIDCommittees established in terms of the Supply Chain ManagementRegulations., on appointment by the Accounting Officer.

4.UNACCETABLE ACTIONS AND ESSENTIAL PRACTICES

Examples of actions which are unacceptable and essential practices, which would constituteunacceptable defaults if not observed, are given below. The schedules are not exhaustive, but

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serve to highlight unacceptable actions and defaults which are more commonly encountered.

4.1. The Employer

The Employer should, himself, or through his officials, or agents :-

4.1.1. Not invite tenders without having a firm intention to proceed with the procurement.4.1.2. Ensure that the basis on which tenders will be adjudicated is clearly set out in the

tender documents and that tenders are adjudicated and awarded accordingly.4.1.3. Ensure that the tender documents are clear and comprehensive and set out the

rights and obligation of all parties.4.1.4. Not breach the confidentiality of information, particularly intellectual property,

provided by Tenderers in support of their tenders.4.1.5. Not attempt to “trade off” Tenderers against each other in an attempt to obtain better

offers.4.1.6. Ensure that all Tenderers are fairly treated and that tenders are adjudicated without

bias.4.1.7. Ensure that, except when extra ordinary circumstances dictate otherwise,

transparency is maintained in the tendering process. This implies, inter alia, invitingtenders as widely and publicly as possible, opening tenders in public and reading out/making available key information, such as tender prices, basic award criteria andtimes required for completion, and, in due course, making known to unsuccessfulTenderers the outcome of the adjudication process.

4.1.8. Ensure that his/her obligations in terms of contracts with Contractors and Consultantsare scrupulously and timeously met, particularly in regard to making payments andgiving decisions.

4.2. Officials

An Official should:-

4.2.1. Strictly observe all code of conduct laid down by the Employer.4.2.2. Ensure that he is not responsible for an unacceptable action, or default, being

attributed to the Employer.4.2.3. Not allow himself/herself to be influenced in the execution of his/her duties by any

consideration other than the legitimate and reasonable interests of the Employer.4.2.4. Not accept any gifts, favours or other considerations, of anything more than token

value from any other party to the procurement process.4.2.5. Administer contracts in an evenhanded manner.4.2.6. Disclose any circumstance which may possibly be construed as constituting a conflict

of interest and excuse himself/herself from deliberations in such matters

4.3. AgentsAn Agent should, insofar as is relevant, act in the same way as the Official is expected to act interms of Section 3.2.

4.4. Consultants

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A Consultant should:-

4.4.1. Strictly observe the code of conduct laid down by the body governing his/herprofession.

4.4.2. Act in an impartial manner towards all other parties in the procurement process andtake account of the legitimate and reasonable interests of them all.

4.4.3. Not accept gifts, favours or other considerations, of anything more than token valuefrom any other party to the procurement process.

4.4.4. Not undermine the development objectives of the Employer through tokenism,fronting or any other misrepresentation.

4.4.5. Disclose any circumstance which may possibly be construed as constituting a conflictof interest and excuse himself/herself from deliberations in such matters.

4.5. Tenderers

A Tenderer should:-

4.5.1. Not, except for the purpose of joint venture formation, become involved in collusionwith other Tenderers, or potential Tenderers.

4.5.2. Not exchange information regarding tenders with any other Tenderer prior to theclosing date for tenders.

4.5.3. Not knowingly price his/her tender in such a way as to gain an unfair advantage froman obvious error, or oversight, in the tender documents.

4.5.4. Not attempt, in any way, to influence the tender adjudication process.4.5.5. Not approach any Representative or Official directly in connection with a tender,

subsequent to the closing of all tenders.4.5.6. Tenders only on projects for which they are capable of executing with the resources

they are able to marshal in accordance with the terms and conditions of contracts.

4.6. The Contractor

The Contractor should:-

4.6.1. Undertake the contract with the objective of fulfilling it in accordance with the needsof and in the best interests of the Employer and, in pursuit of this objective, co-operate with all other parties in the procurement process.

4.6.2. Aim to meet all statutory and contractual obligations fully and timeously in regard to,inter alia, conditions of employment, occupational safety, training, employment ofsubcontractors and fiscal matters.

4.6.3. Not attempt to influence the judgement, or actions, of Consultants, Officials/Agents,or Representatives by inducements of any sort.

4.6.4. Employ Subcontractors only on the basis of fair, unbiased, written subcontracts.4.6.5. Not engage in unfair, or unethical, practices in order to drive subcontract prices

down.4.6.6. Not make unwarranted claims for additional payment, or time, in the belief that

“nothing venture, nothing gain”.4.6.7. Not approach any Representative directly in connection with a contract.4.6.8. Not undermine the development objectives of the Employer through tokenism,

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fronting or any other misrepresentation.

4.7. Subcontractors

A Subcontractor should, insofar as is relevant, act in the same way as the Contractor isexpected to act in terms of Section 3.6.

4.8. Representatives

A Representative should:-

4.8.1. Perform his duties in an unbiased and conscientious manner, bearing in mind thelegitimate interest of all parties to the procurement process and the public.

4.8.2. Not entertain representations, except through the Employer or such person as maybe delegated by the Employer, from any Consultant, Tenderer, Contractor, orSubcontractor, in regard to a tender, or contract.

4.8.3. Not allow himself to be unduly influenced by, or accept any gifts, favours or otherconsiderations from any party which might have an interest in the procurementprocess.

4.8.4. Disclose any circumstance which may possibly be construed as constituting a conflictof interest and excuse himself/herself from deliberations in such matters.

5. PENALTIES

Where there is non-compliance with this code of conduct, sanctions and/or penalties will beapplied as follows:

5.1A breach of the Code of Conduct

A breach of conduct must be dealt with as follows :-

(a) In case of an employee, in terms of the disciplinary procedures of the Municipalityenvisaged in section 67(1)(h) of the Municipal Systems act.

(b) In case of a contractor, depending on the severity of the breach, a contractor may bedisqualified as a registered contractor for a period not less than six months. Over andabove that, financial penalties may be imposed in terms of the general terms of contract.

(c) In all other cases, financial misconduct must be dealt with in terms of chapter 15 of theMunicipal Finance Management act.

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