Basic Assessment Report - SRK

Basic Assessment Report- ACSA is a public entity and is bound by regulations in the PFMA, and fair and equitable procurementforms part of this. DTP would like ACSA to explain why none of the retailers operating in the passengerterminal of the old Durban International Airport were relocated, yet ACSA feel the need to relocate thisservice provider. ACSA went out on procurement to attract retail tenants to operate in the newpassenger terminal at KSIA, yet regarding the service station ACSA appear to have followed a closedprocess. DTP would like to know what rights have been accorded to Sasol in this regard.2. Inconsistent with the Dube Tradeport Master Plan- By way of background, there are three separate land owners on the Dube Tradeport site, namely ACSA,Dube Tradeport Corporation (DTPC), and a Joint Venture Company comprising of the two parties. Thevarious landholdings are shown on Attachment marked 1. The service station as indicated on Figure1a and 1b of the BID document indicate that the proposed site for the service station is positioned onthe current staff parking on the aviation precinct, owned by ACSA.- ACSA and DTC are organs of state. They are co-developers of the Dube Tradeport site and haveagreed to co-operate with one another and structure their relationship to ensure the success of theTradeport.- In the spirit f this interrelationship DTPC and ACSA have co-operated with one another on matters ofmutual interest (such as the environmental and planning processes), and have also concluded a Co-Operation Agreement and a Shareholders Agreement to regulate the relationship.- In the Co-Operation Agreement DTPC and ACSA agreed to plan and co-ordinate the rezoning of thewhole of the Tradeport site for future development, and agreed to make all decisions concerning thedevelopment, construction, management and operation of the Tradeport in line with the master planningdocuments.- DTPC and ACSA have committed themselves to the Master Plan for Phase 1 of the Dube Tradeportdevelopment, and have agreed to review the Master Plan in five year cycles. The Master Plancontemplated a fuel station, and stated that it would be situated in such a way as to serve the variousTradeport Zones (i.e. not only the airport).The Master Plan has not been changed in this regard. ACSA were fully involved in the master planningprocess. The relocation of the service station at the old Durban International Airport was never raised.Nowhere in the current approved master plan has a site been designated for a service station. If ACSAwere so concerned with a relocation DTP would like ACSA to explain why ACSA did not cater for this inthe master plan, which was approved jointly by both ACSA and DTPC.3. Economic Concerns- From an economic point of view, a fuel station is obviously a desirable land use and has the potential togenerate significant income for the land owner in question. However, should ACSA pursue thisdevelopment it is unlikely that more than one fuel station would be approved on the Dube Tradeport sitein the foreseeable future, due to the viability of a second petrol filling station.- As mentioned above, both ACSA and DTP are shareholders in a joint venture Company, known as LaMercy JV Property Investments (the JV). The shareholders agreement for this company clearly states:(a) That DTPC and ACSA would avoid a conflict between their own interests and the interests of the JVCo;(b) That their own interests are subservient to those of the JV Co;(c) That if DTPC or ACSA were approached to conduct in their individual capacities the same or similarbusiness to that conducted by the JV Co then they would notify the JV Co of the proposed opportunity,and the JV Co would be entitled to negotiate and take up the business opportunity.- In accordance with this, the following due process, the idea of a service station on JV land wasdiscussed by the board of directors, and a decision was made to request proposals and procure aninvestor. ACSA, as shareholders in the JV Company, were involved with this process. The requests forproposals document, as well as the adjudication of bids, was done jointly by ACSA and DTP- asshareholders of the JV. ACSA are now seeking to undermine this by relocating the service provider fromthe old Durban International Airport site.Department of Agriculture,Environmental Affairs & RuralDevelopment, KwaZulu-NatalBasic Assessment Report 2010Version 2: August 2010Page 37 of 46