SCHEDULE 5
This is Schedule 5 comprising Broad Based Black Economic Empowerment referred to in the Public
Private Partnership Agreement entered into
between
the City of Tshwane Metropolitan Municipality
and
[Private Party (Proprietary) Limited]
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 1 of 52
27 February 2014
ANNEXURES
Annexure 1: Detailed Description of Core Components and Elements
Annexure 2: BBBEE Matrix
Annexure 3: Ownership Element Obligations
Annexure 4: Management Control Element Obligations
Annexure 5: Employment Equity Element Obligations
Annexure 6: Skills Development Element Obligations
Annexure 7: Preferential Procurement Element Obligations
Annexure 8: Enterprise Development Element Obligations
Annexure 9: Socio-Economic Development Element Obligations
Annexure 10: BBBEE Weights and Scaling Factors
Annexure 11: Quarterly Obligations of the Private Party and Material Sub-Contractors
Annexure 12: BBBEE Plans
Annexure 13: Form of Reporting Regime and Proof to be Submitted
Annexure 14: RFP Commitments on BBBEE
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 2 of 52
27 February 2014
WHEREBY IT IS AGREED AS FOLLOWS:
1.
INTERPRETATION AND RECORDAL
1.1
In this schedule, unless the context otherwise requires, words and expressions defined in
the PPP Agreement and not redefined in this schedule shall have the same meaning
when used herein.
1.2
The following words and phrases shall when used in this Schedule 5 and typed in “Title
Case” have the meanings assigned to them hereunder, and cognate expressions shall
have corresponding meaning, namelyWords and Phrases
Meaning
Actual Total Quantum
has the meaning attributed to it in Annexure 1 of this Schedule 5;
Adjusted Local People
means people who have obtained citizenship of the Republic of
South Africa by birth, decent or naturalisation in terms of the
South African Citizen Act, Act No 88 of 1995, and who reside in
within the borders of the City of Tshwane Municipality;
Adjusted Recognition of
Gender
means the Adjusted Recognition for Gender calculation, as
follows:
A = B/2 + C
where:
A is the Adjusted Recognition of Gender;
B is the percentage of Employees in the measurement category
who are Black People;
C is the percentage of Employees in the measurement category
who are Black Women. C is limited to a maximum of 50% of the
applicable target;
Amended BBBEE
Codes
means the amended BBBEE Codes of Good Practice issued
under Government Gazette No. 36928 on 10 October 2013 in
terms of section 9(1) of the BBBEE Act;
BBBEE
means broad-based black economic empowerment;
BBBEE Act
means the Broad Based Black Economic Empowerment Act,
2003 (Act 53 of 2003);
BBBEE Codes
means the BBBEE Codes of Good Practice issued under
Government Gazette No. 29617 on 9 February 2007 in terms of
section 9(1) of the BBBEE Act;
BBBEE Elements
has the meaning attributed to it in Annexure 1 of this Schedule 5;
BBBEE Obligations
means the undertakings and/or obligations in relation to BBBEE
with regard to the Works and the Services, as detailed in this
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Schedule 5: Broad Based Black Economic Empowerment Obligations
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27 February 2014
Words and Phrases
Meaning
Schedule 5;
BBBEE Penalty
Deductions
means those BBBEE penalty deductions determined using the
BBBEE Performance Regime;
BBBEE Performance
Credits
means those performance credits determined using the BBBEE
Performance Regime;
BBBEE Performance
Regime
means the performance regime referred to in clause 9 of this
Schedule 5 utilised to determine the BBBEE Penalty Deductions
and BBBEE Performance Credits;
BBBEE Plans
means the final negotiated plans and BBBEE Programmes that
the Private Party and its Material Subcontractors will implement
to achieve the BBBEE Obligations in this Schedule 5 to the PPP
Agreement;
BBBEE Procurement
Spend
means the monetary spend from Vendors adjusted according to
BBBEE Recognition Levels;
BBBEE Recognition
Levels
means those levels which are based on the overall performance
of a Vendor, in respect of BBBEE measured in terms of the
BBBEE Codes and/or the Amended BBBEE Codes, which levels
are indicated in section 8.2 of Code Series 000: Framework for
Measuring Broad-Based Black Economic Empowerment,
Statement 000: General Principles and the Generic Scorecard (BBBEE Recognition Levels) and in section 8.2 of Amended Code
Series 000: Framework for Measuring Broad-Based Black
Economic Empowerment, Statement 000: General Principles and
the Generic Scorecard (B-BBEE Recognition Levels),
respectively;
BBBEE Verification
Certificate
means the certificate to be issued by a South African National
Accreditation System accredited verification agency, a chartered
accountant registered with the South African Institute of
Chartered Accountants or an auditor registered with the
Independent Regulatory Board for Auditors;
Black Designated
Groups
means Black People participating in employee ownership
schemes and Black People participating in co-operatives;
Black Enterprise
means a legal entity with at least 50.1% ownership and Control
by Black People and in which Black People have substantial
Management Control. Such beneficial ownership may be held
directly or through other Black Enterprises;
Black People
is a generic term, which refers to Africans, Coloureds and
Indians, including natural persons who are citizens of the
Republic of South Africa by birth or descent; or are citizens of the
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Words and Phrases
Meaning
Republic of South Africa by naturalisation:
(a) occurring before the commencement date of the Constitution
of the Republic of South Africa Act of 1993; or
(b) occurring after the commencement date of the Constitution
of the Republic of South Africa Act of 1993, but who, without
the apartheid policy would have qualified for naturalisation
before then;
Black Women
means Black People who are women;
Board
means the board of directors or similar body, irrespective of its
name;
Category B, C and D
Programmes
means the following programmes –
Certificate of Assurance
Committed Obligations
Contract Month
(a)
Category B – which is institution-based theoretical
instruction as well as some practical learning with an
employer or in a simulated work environment – formally
assessed through the institution;
(b)
Category C – which is recognised or registered structured
experiential learning in the workplace that is required after
the achievement of a qualification – formally assessed by a
statutory occupational or professional body; and
(c)
Category D – which is occupationally-directed instructional
& work-based learning programme that requires a formal
contract formally assessed by an accredited body;
means the certificate to be issued by a South African National
Accreditation System accredited verification agency, a chartered
accountant registered with the South African Institute of
Chartered Accountants or an auditor registered with the
Independent Regulatory Board for Auditors, which shall indicate
the following:
(a)
the points for BBBEE which would have been scored by the
Vendor had such a Vendor been rated in terms of the
BBBEE Codes; and
(b)
the BBBEE Recognition Level of the relevant Vendor
measured in terms of the BBBEE Codes;
means the BBBEE Obligations, as stated in Annexures 3, 4, 5, 6,
7, 8 and 9;
means a calendar month save that:
(c)
the first Contract Month shall be the period from and
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Schedule 5: Broad Based Black Economic Empowerment Obligations
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27 February 2014
Words and Phrases
Meaning
including the Effective Date up to and including the last day
of the month during which the Effective Date occurs; and
(d)
Contract Quarter
the final Contract Month shall be the period from and
including the first day of the month during which the Expiry
Date occurs up to and including the Expiry Date;
means the periods –
(a)
January to March;
(b)
April to June;
(c)
July to September; and
(d)
October to December,
during the Project Term, within a calendar year, commencing
from the first full month in a calendar year after the Effective
Date. Should the Effective Date fall between any of the periods
referred to above, then the first Contract Quarter shall be deemed
to be the remaining portion of the relevant Contract Quarter;
Core Component
means each of the Ownership, Management Control,
Employment
Equity,
Skills
Development,
Preferential
Procurement, Enterprise Development and Socio-Economic
Development components of BBBEE
Disabled Employees
means those Employees with a long-term or recurring physical or
mental impairment, which is substantially limiting, in terms of the
Employment Equity Act;
Economic Interest
means a claim against an Measured Entity representing a return
on ownership of the Measured Entity similar in nature to a
dividend right, measured using the Flow Through Principle;
Employees
means people engaged on various activities in the Project,
whether seconded or employed directly by the Private Party or
the Material Subcontractors and the Tier 3 Subcontractors, where
applicable;
Employee Ownership
Schemes
means a worker or employee scheme devised for the purpose of
and holding ownership in the Measured Entity;
Employment
means the Employees of the Private Party and/or the
Construction Subcontractor and/or the Operations Subcontractor
or and/or Vendors, as applicable;
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Words and Phrases
Meaning
Employment Equity Act
means the Employment Equity Act, 1998 (Act 55 of 1998);
Employment Equity
Obligations
means the Employment Equity element of the BBBEE Obligations
as contained in Annexure 4 – Employment Equity Element
Obligations;
Enterprise Development
means initiatives (which include monetary and non-monetary
initiatives), carried out by a Measured Entity to assist and
accelerate the development and sustainability of other
enterprises, as well as the financial and operational
independence of other enterprises, as more fully indicated in
Annexure 7 – Enterprise Development Obligations;
Enterprise Development
Contributions
means monetary or non-monetary contributions carried out for
the following beneficiaries who are based or are carrying on a
business within the municipal area of the City of Tshwane, the
Gauteng area as well as the rest of the Provinces of the Republic
of South Africa, with the objective of contributing to the
development sustainability and financial and operational
independence of those beneficiaries -
Exempted Micro
Enterprise
(a)
Exempted Micro Enterprises or Qualifying Small Enterprises,
which is 50% owned and Controlled by Black People or
Black Women; or
(b)
any other enterprise that is 50% owned and Controlled by
Black People or Black Women, with a BEE status of between
Level One and Level 4, as determined by the Amended
BBBEE Codes;
means:
(a)
for entities measured in terms of the BBBEE Codes, an
entity with a turnover of between 0 and R5 million at the
time of the award of a contract to it for goods and services
by a Measured Entity; or
(b)
for entities measured in terms of the Amended BBBEE
Codes, an entity with a turnover of between 0 and R10
million at the time of the award of a contract to it for goods
and services by a Measured Entity,
also called an EME;
Exercisable Voting
Rights
means a voting right of a participant, whether a shareholder,
director, senior management and/or representative of the
aforementioned, who each is entitled to exercise a voting right at
a meeting, that is not subject to any limit;
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Words and Phrases
Meaning
Flow Through Principle
means the measurement of ownership flowing through the chain
of ownership to determine equity in the hands of Black People;
Learnerships
means a programme of learning and skills development offered
by a Measured Entity;
Learning Programmes
means any learning programme set out in the Learning
Programme Matrix;
Learning Programmes
Matrix
means the table contained in BBBEE Codes and/or the Amended
BBBEE Codes with the title “Learning Programme Matrix”, setting
out the Learning Programmes for purposes of the Skills
Development Core Component, at the discretion of the Private
Party;
Leviable Amount
means:
(a)
in relation to the Private Party the amount of the Unitary
Payment attributable to Employees of the Private Party,
during the Service Period;
(b)
in relation to the Construction Subcontractor in the
Construction Period, the amount of the capital costs
attributable to Employees during the Construction Period
(excluding the capital costs with respect to the Early Works);
and
(c)
in relation to the Operations Subcontractor in the Service
Period, the amount of the Unitary Payment attributable to
Employees of the Operations Subcontractor, during the
Service Period;
Management Control
means the Management Control element of the BBBEE
Obligations as contained in Annexure 4 – Management Control
Element Obligations;
Material
Subcontractor(s)
means the Construction Subcontractor and the Operations
Subcontractor;
Measured Entity
means an entity, being any company, close corporation or any
other juristic person or other corporate entity, trust, partnership or
joint venture, including the Private Party and/or the Material
Subcontractors which is subject to measurement in respect of
any one or more of the BBBEE Obligations in terms of this
Schedule 5;
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Words and Phrases
Meaning
Operations
Subcontractor’s
Contract Value
means, that the value includes the total Operations
Subcontractors operating costs and Maintenance Reserve
Account Costs during the Service Period as defined in Schedule
13 (Payment Mechanism);
Ownership
means the Ownership element of the BBBEE Obligations as
contained in Annexure 2 – Ownership Element Obligations;
Person Months
means the total number of Employees adjusted using the
Adjusted Recognition for Gender in each of the Contract
Quarters, within the Construction Period and the Service Period,
as applicable, which are adjusted for actual working time,
compared to normal working time in accordance with the Basic
Conditions of Employment Act, 1997 (Act 75 of 1997);
Preferential
Procurement
means the extent to which a Measured Entity procures goods and
services from Vendors contained under the Preferential
Procurement Element of the BBBEE Obligations as contained in
Annexure 6 – Preferential Procurement Element Obligations;
Qualifying Small
Enterprise
means:
(d)
for entities measured in terms of the BBBEE Codes, an entity
with a turnover of between turnover of R5 million and R35
million, at the time of the award of a contract to it for goods
and services by a Measured Entity; or
(e)
for entities measured in terms of the Amended BBBEE
Codes, an entity with a turnover of between turnover of R10
million and R50 million, at the time of the award of a contract
to it for goods and services by a Measured Entity,
also, called a QSE;
Quarterly Fee
means the total gross monthly Unitary Payment paid to the
Private Party in the Contract Months that fall within the Contract
Quarter in question;
Quarterly Obligations
means, in relation to the BBBEE Obligations, the levels of the
Committed Obligations for each Contract Quarter, denoted in
Annexure 11 of this Schedule 5, in respect of the BBBEE
Elements;
Recognition for Local
Enterprises
means expenditure allocated to enterprises; adjusted for
localness; in the following manner–
(a)
Black Enterprises based in the City of Tshwane Municipality
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Words and Phrases
Meaning
– 100%; and
(b)
all other – 0%;
Reporting Obligations
means the reporting obligations of the Private Party and the
Material Subcontractors for the submission of reports in terms of
this Schedule 5, specifically as stated in clause 8 of this Schedule
5;
Senior Top
Management
means employees of a Measured Entity who are –
(a) members of the occupation category of "Top Management"
as determined using the Regulations to the Employment
Equity Act; and
(b) appointed by or on the authority of the Board to undertake
the day-to-day management of that Measured Entity and
who:
(i)
have individual responsibility for the overall
management and/or for the financial management of
that Measured Entity; or
(ii)
are actively involved in developing and implementing
the Measured Entity's overall strategy;
Skills Development
means the Skills Development element of the BBBEE Obligations
as contained in Annexure 6 – Skills Development Element
Obligations;
Skills Development Act
means the Skill Development Act, 1998 (Act 97 of 1998);
Skills Development
Expenditure
means the money that a Measured Entity spends on the
development of skills. It excludes the skills development levy
payable by the Measured Entity under the Skills Development
Levies Act, 1999 (Act 9 of 1999);
SMME
means a small, medium, micro enterprises;
Socio-Economic
Development
means the initiatives carried out by a Measured Entity towards
broad social and economic advancement of Black People in
underdeveloped communities, which includes, without limitation,
initiatives focusing on education, healthcare and programme(s),
infrastructure
development,
enterprise
creation
within
communities,
reconstruction
of
underdeveloped
areas,
community training as contained in Socio-Economic Development
Element of the BBBEE Obligations as contained in Annexure 9 –
Socio-Economic Development Obligations;
Socio-Economic
Development
means those contributions by the Private Party and the Material
Contractors as contemplated in Annexure 9 – Socio-Economic
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Words and Phrases
Contributions
Sub-contracting
Tier 3 Employees
Tier 4 Employees
Tier 4 Subcontractors
Meaning
Development Obligations;
means an entity or individuals with whom the Private Party, or the
Material Subcontractors, or any sub-contracting entity performing
the obligations of the Private Party or those of the Material
Subcontractors, enters into a contract for performance of any of
the obligations of the Private Party under the PPP Agreement
with regard to the design, construction and/or operation and
maintenance of the Facilities, “Sub-contracting” and “Contractors”
have corresponding meanings;
means the entities comprising the shareholders of the Material
Subcontractors providing goods and/or services;
means people engaged on various activities in the Project,
whether seconded or employed directly by the Tier 4
Subcontractors;
means those entities providing goods and/or services to the
shareholders of the Material Subcontractors;
Top Management
has the meaning which corresponds to the occupational level of
"Top Management" in the Regulations to the Employment Equity
Act, as defined in Annexure 2 to the Regulations of the
Employment Equity Act;
Total Measured
Procurement Spend
means the monetary spend on the procurement of goods and
services, excluding imported goods and services, taxation,
salaries and wages:
(a)
Total Project Value
in relation to the Private Party, the aggregate Unitary
Payment less the Operations Subcontractor’s cost;
(b) in respect of the Construction Subcontractor, the values to
be entered would be for goods and services from
enterprises
that
the
Construction
Subcontractor
subcontracts to or sources components from, excluding the
Private Party and the Operations Subcontractor, being those
entities
directly
contracted
to
the
Construction
Subcontractor;
(c) in respect of the Operations Subcontractor, the values to be
entered would be for goods and services from enterprises
that the Operations Subcontractor subcontracts to or
sources components from, excluding the Private Party and
the Construction Subcontractor, being those entities directly
contracted to the Operations Subcontractor;
means:
(a)
(b)
in relation to the Private Party, the aggregate Unitary
Payment less Operations Subcontractor’s Contract Value;
in relation to the Construction Subcontractor in the
Construction Period, the capital costs for the Project
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Words and Phrases
(excluding the capital costs with respect to the Early Works);
and
(c) in relation to the Operations Subcontractor in the Service
Period, the Operations Subcontractor’s Contract Value;
means subcontractors, on any tier, which have taken over or are
earmarked to take certain responsibilities of the Private Party and
its Material Subcontractors; and suppliers, on any tier, who assist
in supplying certain materials and other supplies to the Private
Party and its Material Subcontractors.
Vendors
2.
GENERAL OBLIGATIONS
2.1
2.2
3.
Meaning
The Private Party undertakes that it, and the Material Subcontractors will without
derogating from any of the obligations contained in this Schedule 5, to achieve the
BBBEE objectives of CoT by:2.1.1
complying with the BBBEE Obligations and to meet the Quarterly Obligations;
2.1.2
complying with its Reporting Obligations, in respect of all the Quarterly
Obligations;
2.1.3
bringing to CoT’s attention to any non-compliance with BBBEE Obligations by, or
a change in the Private Party and/or the Material Subcontractors that may impact
on the BBBEE Obligations under this Schedule 5 which the Private Party and/or
the Material Subcontractors are aware of;
2.1.4
not doing, or causing to be done anything that can result in non-compliance with
the BBBEE Obligations as contained in this Schedule 5;
2.1.5
meeting the minimum thresholds in respect of the Committed Obligations, as
stated in Annexure 10 this Schedule 5.
Non-compliance with the Committed Obligations may result in the application of the
regimes referred to in clause 9 (BBBEE Performance Regime) and in clause 10 (Warning
Letters).1
IMPLEMENTATION AND DURATION
3.1
The BBBEE Obligations contained in this Schedule 5 shall, where applicable, be
implemented in accordance with the Quarterly Obligations as set out in Annexure 10 of
this Schedule 5.
3.2
The Private Party shall procure that its chief executive officer or senior management
reports to its board of directors at regular intervals and to the CoT and the CoT’s
independent BBBEE monitor as part of its reporting in terms of the PPP Agreement the
progress made in achieving the goals and Quarterly Obligations.
1
Please note the insertion that all elements would be interpreted in line with the BBBEE Codes is not necessary, as we have
agreed that the only core component adversely impacted by the Amended BBBEE Codes is Preferential Procurement.
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3.3
4.
The Private Party shall allow the CoT access to all the information on which the monthly
BBBEE achievements of the Private Party and the Material Subcontractors were based.
GENERAL
4.1
No extension of time or waiver or relaxation of any of the provisions or terms of this
Schedule 5 and/or any agreement or other undertaking made or executed pursuant to or
in terms of this Schedule 5, shall operate as an estoppel against any party in respect of its
rights under this schedule, nor shall it operate so as to preclude such party thereafter
from exercising its rights in accordance with this Schedule 5 and the PPP Agreement.
4.2
The provision made in this Schedule 5 of any of the BBBEE Obligations in Annexures 3,
4, 5, 6, 7, 9 and 9 are not intended to relieve the Private Party and/or the Material
Subcontractors from complying with the undertakings made by them in the BBBEE Plans.
The BBBEE Obligations of the Private Party in Annexures 3, 4, 5, 6, 7, 8 and 9 to this
Schedule 5, are independent obligations to those in the BBBEE Plans, and in particular
the fact that the Private Party has complied with the BBBEE Plans shall not be a defence
to an averment that the Private Party has not complied with the BBBEE Obligations.
4.3
Status of BBBEE Plans
The Parties agree and record that nothing contained in the BBBEE Plans or Updated
BBBEE Plans, in relation to the commitments contained in this Schedule 5 shall qualify or
in any manner reduce or increase or be construed to be qualifying or in any manner
reducing or increasing the obligations in respect of BBBEE. In the event of any conflict
between the BBBEE Plans or Updated BBBEE Plans and any other obligations in relation
to BBBEE contained in this Schedule 5, then the provisions of this Schedule 5 shall apply
without reference to the BBBEE Plans or Updated BBBEE Plans, it being recorded that
the BBBEE Plans and Updated BBBEE Plans are simply to show the steps that the
Private Party, or a Material Subcontractor, intends taking in order to achieve its BBBEE
Obligations and shall not be used in the determination of any BBBEE Penalty Deductions.
4.4
Subsequent BBBEE Codes of Good Practice Issued in terms of the BBBEE Act
In the drafting of this Schedule 5 (BBBEE Obligations), the BBBEE Codes as well as the
Amended Codes were taken into account. In the event of amendments to the Amended
BBBEE Codes being introduced ("Change in BBBEE Framework"), after Signature Date
of this PPP Agreement, and resulting in an adverse impact on the Private Party and/or
the Material Contractors, then:
4.4.1
then the Private Party and/or the Material Contractors shall submit a report to
the CoT indicating how the Change in the BBBEE Framework has adversely
impacted the commitments in this Schedule 5 (BBBEE Obligations) and indicate
which Core Components have been impacted by the Change in BBBEE
Framework and demonstrate the adverse impact on such Core Components,
within thirty (30) Business Days ("BBBEE Change in Framework Report"). The
BBBEE Change in Framework Report should also contain the proposed
updated Schedule 5 (BBBEE Obligations) which should place the Private Party
and/or Material Contractors in the same overall position as they would have
been in but for such Change in BBBEE Framework ("Updated B-BBEE
Commitments"); and
4.4.2
The CoT and the Private Party and/or the Material Subcontractors shall meet,
within seven (7) Business Days from date of submission of the BBBEE Change
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in Framework Report, to discuss and reach agreement on the Core
Components impacted, it being agreed that all penalties arising from the impact
shall be suspended until such time as the parties have reached agreement.
5.
SCHEDULES FOR EACH OF THE BBBEE ELEMENTS
5.1
The BBBEE requirements to be met by the Private Party and its Material Subcontractors,
are as per this Schedule 5.
5.2
Quarterly Obligations will be the monetary or quantum values for each quarter, as
expressed in the Quarterly Obligations of the Private Party and its Material
Subcontractors, as stated in Annexure 11.
5.3
The Private Party and its Material Subcontractors will –
5.3.1
be measured for compliance with the minimum BBBEE Elements based on the
measuring mechanisms in this Schedule 5;
5.3.2
earn warning letters for not meeting certain outcomes flowing from the
measurement;
5.3.3
be monitored for compliance with the Quarterly Obligations, as non-compliance
which attract BBBEE Penalty Deductions, which may also result in the award of
warning letters.
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6.
RECORDAL
It is recorded that –
6.1
BBBEE is intended to address the marginalized Black People in the economic arena by
the previous dispensation. This marginalization resulted in Black People being deprived
of the opportunity to gain skill and access to financial resources;
6.2
BBBEE is an intervention strategy through which the Government of the Republic of
South Africa, seeks to economically empower both Black People and Black Enterprises;
6.3
CoT intends on maximising and entrenching the optimal involvement of Black People and
Black Enterprises in the entire life cycle of the Project, meeting and exceeding CoT’s
BBBEE targets and promoting sustainable local economic development within the site
are, CoT, Gauteng Province and South Africa. Thus the Project is focused to meet the
following requirements of the strategic priorities of CoT, namely –
6.4
7.
6.3.1
economic growth and development;
6.3.2
achieve effective service delivery, management and implementation of CoT’s
institutional obligations;
6.3.3
management of the physical integration of Tshwane and improvement for the
quality and liability of the urban and rural environment;
6.3.4
accessibility, availability and affordability of essential services and facilities;
6.3.5
achievement of a range of CoT’s objectives, such as the promotion of job
creation, SMME development, private sector participation and BBBEE; and
6.3.6
private sector investor investment in major capital project within CoT; and
the Parties wish to record the terms of the Private Party and Material Subcontractors
commitments with regard to the BBBEE Obligations in this Schedule 5, with the intention
that they be contractually binding on the Private Party and the Material Subcontractors.
PRIVATE PARTY’S UNDERTAKINGS
The Private Party undertakes to meet, comply, and procure compliance by the Material
Subcontractors, Vendors with the following BBBEE levels -
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7.1
Ownership
7.1.1
The Private Party undertakes to the CoT that, during the Project Term, it will
promote ownership and meet the commitments specified in Annexure 3. The
Private Party undertakes to the CoT that the Construction Subcontractor shall,
during the Construction Period, meet the commitments set out in Annexure 3.
The Private Party undertakes to the CoT that the Operations Subcontractor
shall, during the Service Period, meet the specified commitments set out in
Annexure 3.
7.1.2
The Private Party shall on the Effective Date comprise as part of the equity of
the Private Party and the Material Subcontractors, shares owned and controlled
by Black Enterprises and/or Black People, of not less than 25%.
7.1.3
The Private Party undertakes to CoT that as at Signature Date not less than:
(a)
50% of the Exercisable Voting Rights of the Construction Subcontractor in
the Constructions Period; and
(b)
55% of the Exercisable Voting Rights of the Operations Subcontractor in
the Service Period,
shall be held by Black Enterprises and/or Black People who will throughout the
Contract Term be involved in the operational and the management activities of
the Private Party, or the Material Subcontractors or those that otherwise relate to
the Project implementation as the case may be.
7.2
7.1.4
Subject to clause 7.1.3 above, the Private Party undertakes to CoT that it, and the
Material Subcontractors, shall procure that the control of the Private Party, or the
control of the Material Subcontractors (as the case may be) reflects a participation
by Black People of not less than the pro-rata shareholding required to be held by
the Black Enterprises and/or Black People in the Private Party or the Material
Subcontractors pursuant to the provisions of this Schedule 5.
7.1.5
The table detailing the Committed Obligations in relation to the Ownership
element of the BBBEE Obligations, is annexed hereto as Annexure 2.
7.1.6
The Quarterly Obligations, in respect of the Ownership Core Component, are
contained in Annexure 11. The Private Party shall procure that the Quarterly
Obligations referred to in Annexure 11 with regard to the Ownership Core
Component of the Committed Obligations, are attained or exceeded by it, and
its Material Subcontractors in the appropriate periods.
7.1.7
The Private Party warrants to CoT that the legal and beneficial ownership of the
Private Party, at the date of this PPP Agreement is as set out in Schedule 3 to
the PPP Agreement (Beneficial Ownership of the Private Party).
Management Control
7.2.1
The Private Party undertakes to the CoT that it, and the Material
Subcontractors, in undertaking the Works in the Construction Period and
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Services in the Service Period, will promote Management Control and meet the
commitments specified in Annexure 4.
7.3
7.4
7.2.2
The table detailing the Committed Obligations in relation to the Management
Control element of the BBBEE Obligations, is annexed hereto as Annexure 4.
7.2.3
The Quarterly Obligations, in respect of the Management Control Core
Component, are contained in Annexure 11. The Private Party shall procure that
the Quarterly Obligations referred to in Annexure 11 with regard to the
Management Control Obligations, are attained or exceeded by it, and its
Material Subcontractors in the appropriate periods.
Employment Equity
7.3.1
The Private Party undertakes to CoT that it, and the Material Subcontractors, in
the undertaking of the Works in the Construction Period and the Services in the
Service Period, will promote Employment Equity and meet the commitments
specified in Annexure 5.
7.3.2
Subject to the provisions of clause 4.3 of this Schedule 5 the Private Party
undertakes to CoT that, during the Project Term it, and the Material
Subcontractors shall comply with their statutory obligations in respect of the
Employment Equity Act in the undertaking of the Works by the Construction
Subcontractor and the Services by the Operations Subcontractor, provided that
all plans submitted by the Private Party and/or the Material Subcontractors to
comply with their respective obligations in terms of the Employment Equity Act,
or any other legislation relevant to employment equity, must meet the minimum
requirements as set out in this Schedule 5, and must be presented to CoT for
prior consideration and comment before submission to the relevant authority in
terms of applicable legislation, if any such submission is required, and shall
amend such plans to the extent that CoT reasonably requires so as to ensure
that such plans are providing equity participation which is not less than the one
required in terms of this Schedule 5.
7.3.3
The table detailing the Committed Obligations in relation to the Employment
Equity element of the BBBEE Obligations, is annexed hereto as Annexure 5.
7.3.4
The Quarterly Obligations, in respect of the Employment Equity Core
Component, are contained in Annexure 11. The Private Party shall procure that
the Quarterly Obligations referred to in Annexure 11 with regard to the
Employment Equity Obligations, are attained or exceeded by it, and its Material
Subcontractors in the appropriate periods.
Skills Development
7.4.1
The Private Party undertakes to the CoT that it, and the Material
Subcontractors, in the undertaking of the Works in the Construction Period and
Services in the Service Period, will promote Skills Development and meet the
commitments specified in Annexure 6.
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7.5
7.4.2
The table detailing the Committed Obligations as well as the Quarterly
Obligations in relation to the Skills Development element of the BBBEE
Obligations, is annexed hereto as Annexure 6.
7.4.3
The Quarterly Obligations, in respect of the Skills Development Core
Component, are contained in Annexure 11. The Private Party shall procure that
the Quarterly Obligations referred to in Annexure 11 with regard to the Skills
Development Obligations, are attained or exceeded by it, and its Material
Subcontractors in the appropriate periods.
Preferential Procurement
7.5.1
During the Works in the Construction Period and the Services in the Service
Period, the Private Party undertakes that it, and the Material Subcontractors will
utilise Black Enterprises, Black People and Black Women, to the extent that it
can reasonably attain their utilisation and without derogating from the
commitments as set out in Annexure 7 of this Schedule 5.
7.5.2
The table detailing the Committed Obligations in relation to the Preferential
Procurement element of the BBBEE Obligations, is annexed hereto as
Annexure 7.
7.5.3
The Quarterly Obligations, in respect of the Preferential Procurement Core
Component, are contained in Annexure 11. The Private Party shall procure that
the Quarterly Obligations referred to in Annexure 11 with regard to the
Preferential Procurement Obligations, are attained or exceeded by it, and its
Material Subcontractors in the appropriate periods.
7.5.4
Impact of Amended BBBEE Codes on the Preferential Procurement Core
Component
(a)
The Parties anticipate that the introduction of the Amended BBBEE
Codes may have an impact on their ability to, meet and/or interpret the
Committed Obligations in relation to Preferential Procurement.
(b)
The Parties therefore wish to regulate how Preferential Procurement will
be recognised during the Construction Period as well as the Service
Period.
(c)
Construction Period
(i)
Claims and/or achievements on Preferential Procurement made
by the Private Party and the Construction Subcontractor in the
Construction Period shall be evidenced by the submission of
valid BBBEE Verification Certificates which will indicate the
BBBEE Recognition Level of the Vendors concerned, which are
anticipated to be based on the BBBEE Codes.
(ii)
Where claims and/or achievements on Preferential Procurement
made by the Private Party and the Construction Subcontractor
in the Construction Period are evidenced by the submission of
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valid BBBEE Verification Certificates which will indicate the
BBBEE Recognition Level of the Vendors concerned, based on
the Amended BBBEE Codes, then the Private Party and the
Construction Subcontractor shall submit a Certificate of
Assurance in respect of each Vendor, which will indicate the
potential BBBEE rating in terms of the BBBEE Codes. For
purposes of determining compliance with the Committed
Obligations in relation to Preferential Procurement, the BBBEE
Recognition Level indicated in the Certificate of Assurance shall
be used by CoT.
(iii)
(d)
Where no Certificate of Assurance is submitted in respect of a
Vendor(s), the BBBEE Recognition Level indicated in the valid
BBBEE Verification Certificate based on the Amended BBBEE
Codes shall be used by the CoT to determine compliance with
the Preferential Procurement requirements.
Service Period
(i)
Claims and/or achievements on Preferential Procurement made
by the Private Party and the Operations Subcontractor in the
Construction Period shall be evidenced by the submission of
valid BBBEE Verification Certificates which will indicate the
BBBEE Recognition Level of the Vendors concerned, which are
anticipated to be based on the Amended BBBEE Codes.
(ii)
Six Contract Months prior to the Service Commencement Date,
the Private Party and the Service Subcontractor shall indicate
the following to the CoT:
(iii)
(aa)
outline the goods and services to be procured by the
Private Party and the Operations Subcontractor in the
Service Period;
(bb)
outline the procurement process to be undertaken by
the Private Party (if any) and the Operations
Subcontractor; and
(cc)
submit the fully developed procurement documents to
be used in the procurement of the goods and services;
and
(dd)
outline the timelines within which the procurement of
the goods and services will occur.
Two Contract Months prior to the Service Commencement
Date, the Private Party (where applicable) and Operations
Subcontractor shall provide:
(aa)
the goods and services to be subcontracted;
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(bb)
the Vendors identified for such subcontracting;
(cc)
the values anticipated to be subcontracted by the
Private Party (where applicable) and the Operations
Subcontractor;
(dd)
the most recent BBBEE Verification Certificates of the
Vendors including that of the Private Party and the
Operations Subcontractor, issued in accordance with
the Amended BBBEE Codes; and
(ee)
an analysis in Microsoft EXCEL or another similar
software format, demonstrating the following:
(1)
(iv)
the goods and services to be procured by the
Private Party and the Operations Subcontractor
in the Service Period;
(2)
Vendors identified for subcontracting;
(3)
BBBEE Recognition Levels of the Vendors,
including that of the Private Party and the
Operations Subcontractor measured in terms of
the Amended BBBEE Codes, demonstrated by
the
submission
of
BBBEE
Verification
Certificates;
(4)
BBBEE Recognition Levels of the Vendors,
including that of the Private Party and the
Operations Subcontractor measured in terms of
the BBBEE Codes. For purposes of compliance
with this requirement, it is sufficient for
Certificates of Assurance to be issued in relation
to the Vendors as well as the that of the Private
Party and the Operations Subcontractor;
In the event of the comparison of the BBBEE Recognition
Levels of Vendors based on the Amended BBBEE Codes, as
demonstrated by the BBBEE Verification Certificates with the
BBBEE Recognition Levels based on the Certificates of
Compliance, yielding a lower BBBEE Procurement Spend, in
respect of those Elements derived from using BBBEE
Procurement Spend, than that indicated in Annexure 2 (BBBEE
Matrix) in relation to Preferential Procurement, then the
commitment of Private Party (where applicable) and the
Operations Contractor shall be reduced by the CoT in line with
such reduction. Similarly, in the event of the comparison of the
BBBEE Recognition Levels of Vendors based on the Amended
BBBEE Codes, as demonstrated by the BBBEE Verification
Certificates with the BBBEE Recognition Levels based on the
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27 February 2014
Certificates of Compliance, yielding a higher BBBEE
Procurement Spend, in respect of those Elements derived from
using BBBEE Procurement Spend, than that indicated in
Annexure 2 (BBBEE Matrix) in relation to Preferential
Procurement, then the commitment of Private Party (where
applicable) and the Operations Contractor shall be increased by
the CoT in line with such increase.
7.6
7.7
8.
Enterprise Development
7.6.1
The Private Party undertakes to the CoT that it, and the Material
Subcontractors, in the undertaking of the Works in the Construction Period and
Services in the Service Period, will promote enterprise development and meet
the commitments specified in Annexure 8.
7.6.2
The table detailing the Committed Obligations in relation to the Enterprise
Development element of the BBBEE Obligations, is annexed hereto as
Annexure 8.
7.6.3
The Quarterly Obligations, in respect of the Enterprise Development Core
Component, are contained in Annexure 11. The Private Party shall procure that
the Quarterly Obligations referred to in Annexure 11 with regard to the
Enterprise Development Obligations, are attained or exceeded by it, and its
Material Subcontractors in the appropriate periods.
Socio-Economic Development
7.7.1
The Private Party undertakes to the CoT that it, and the Material
Subcontractors, in undertaking the Works in the Construction Period and the
Services in the Service Period, will promote Socio-Economic Development and
meet the commitments specified in Annexure 9.
7.7.2
The table detailing the Committed Obligations in relation to the Enterprise
Development element of the BBBEE Obligations, is annexed hereto as
Annexure 9.
7.7.3
The Quarterly Obligations, in respect of the Ownership Core Component, are
contained in Annexure 11. The Private Party shall procure that the Quarterly
Obligations referred to in Annexure 11 with regard to the Socio-Economic
Development Obligations, are attained or exceeded by it, and its Material
Subcontractors in the appropriate periods.
REPORTING OBLIGATIONS
SUBCONTRACTORS
8.1
OF
THE
PRIVATE
PARTY
AND
ITS
MATERIAL
Planning Reports
8.1.1
The Private Party undertakes to submit upfront planning reports in the form
agreed with CoT in relation to itself and the Material Contractors, which will set
out the following:
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27 February 2014
(a)
the activities intended to be undertaken in that particular Contract Quarter
to achieve the commitments made in this Schedule 5;
(b)
the entities which are intended to undertake the activities;
(c)
information which will indicate how the commitments are intended to be
met; and
(d)
the anticipated levels of achievement in relation to the different BBBEE
Elements,
(“Planning Reports”).
8.1.2
8.1.3
8.2
2
The Planning Reports are to be submitted by the Private Party in the:
(a)
Construction Period on a quarterly basis, 15 (fifteen) calendar days prior
to the commencement of the Contract Quarter in respect of which the
Planning Report is being submitted (other than the first Contract
Quarter)2; and
(b)
Service Period on an annual basis, 30 (thirty) calendar days prior to the
commencement of the Contract Year in respect of which the Planning
Report is being submitted.
The Planning Report is a planning document, intended to provide information to
CoT on how the commitments made in this Schedule 5 are intended to be met
and is not a mechanism to be used to amend the commitments made in this
Schedule 5.
Reporting Obligations
8.2.1
The Private Party, undertakes to submit reports in such form as may reasonably
be required by CoT initially anticipated to the in the form of Annexure 13 to CoT
within 15 (fifteen) calendar days after the end of each Contract Month to detail
its interim compliance with the BBBEE Obligations as defined in this Schedule
5 from in the case of the first report, 15 (fifteen) calendar days after the Effective
Date and thereafter 15 (fifteen) calendar days after the end of the following
Contract Month since the previous report. For the avoidance of doubt, the
reports of the Private Party include its performance and those of its Material
Subcontractors. 20 (twenty) calendar days after the end of each Contract
Quarter, the Private Party undertakes to submit a consolidated report, which
details the performance in relation to the Committed Obligations in Annexure 11
("Quarterly Report"), which will form the basis of the application of the BBBEE
Performance Regime.
8.2.2
The Private Party must include as part of their report details of the Actual Total
Quantum for each of the BBBEE Elements.
Proposed insertion has been accepted.
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Page 22 of 52
27 February 2014
8.2.3
9.
In the event of there being changes to the BBBEE Plans, the Private Party shall
submit an updated or amended version of the BBBEE Plans in the form agreed
by CoT, with the Quarterly Report (“Updated BBBEE Plans”). The Updated
BBBEE Plans must:
(a)
indicate the events that have triggered the need to change the current
BBBEE Plans and identify the BBBEE Elements affected by such events
(b)
clearly demonstrate the activities that will be implemented and timelines
on how those activities will be used to achieve the relevant BBBEE
Obligations; and
(c)
be accompanied by a document, indicating the changes or amendments
made during the period of time since last update of the BBBEE Plans or
from a date requested by CoT.
BBBEE PERFORMANCE REGIME
9.1
This BBBEE Performance Regime referred to in this paragraph 9 will be applied at the
end of each Contract Quarter.
9.2
The following formula will be applied to determine the BBBEE Penalty Deductions
(“BEEPD”) and BBBEE Penalty Credits (BEEC) that the City of Tshwane may levy on the
Private Party depending on the performance of the Private Party and its Material
Subcontractors in exceeding, meeting, or failing to meet the Committed Obligations as
specified in 9.2.1
Annexure 2: Ownership Element Obligations;
9.2.2
Annexure 3: Management Control Element Obligations;
9.2.3
Annexure 4: Employment Equity Element Obligations;
9.2.4
Annexure 5: Skills Development Element Obligations;
9.2.5
Annexure 6: Preferential Procurement Element Obligations;
9.2.6
Annexure 7: Enterprise Development Element Obligations; and
9.2.7
Annexure 8: Socio-Economic Development Element Obligations.
BBBEE Performance =
25
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑜𝑓 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 𝑃𝑎𝑟𝑡𝑦 = (𝑃 ∗ ∑ 𝑊𝑛 ∗ 𝑆𝐹𝑛) − 𝑃
𝑛=1
PLUS
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Page 23 of 52
27 February 2014
25
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑜𝑓 𝐶𝑜𝑛𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛 𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑜𝑟 = (𝑃 ∗ ∑ 𝑊𝑛 ∗ 𝑆𝐹𝑛) − 𝑃
𝑛=1
OR
25
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑜𝑓 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑜𝑟 (𝑃 ∗ ∑ 𝑊𝑛 ∗ 𝑆𝐹𝑛) − 𝑃
𝑛=1
Where:
P Private Party in the Construction Period and Service Period = R [***]3, which is based on 10% of 10%
of the Indexed Unitary Payment for the relevant Contract Quarter in respect of the
Private Party, prior to any deductions
P Construction Subcontractor in the Construction Period = R [***]4, which is based on 40% of 10% of
the Indexed Unitary Payment for the relevant Contract Quarter in respect of the
Construction Subcontractor, prior to any deductions
P Operations Subcontractor in the Service Period = R [***]5, which is based on of 50% of the 10%
of the Indexed Unitary Payment for the relevant Contract Quarter in respect of the
Operations Subcontractor, prior to any deductions
n = BBBEE Element.
Wn = Weight of BBBEE Element extracted from the Table 10.1 in Annexure 10 of
this Schedule 5.
SFn = Scaling Factor, in respect of each BBBEE Element, for each Contract
Quarter, is determined as follows:
∑𝑚
𝑐=1 𝑄𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝐴𝑐ℎ𝑖𝑒𝑣𝑒𝑚𝑒𝑛𝑡
∑𝑚
𝐵𝐵𝐵𝐸𝐸
𝑄𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦
𝑂𝑏𝑙𝑖𝑔𝑎𝑡𝑖𝑜𝑛
𝑖𝑛𝑑𝑖𝑐𝑎𝑡𝑒𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑄𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑂𝑏𝑙𝑖𝑔𝑎𝑡𝑖𝑜𝑛𝑠
𝑐=1
Drafting Note – - this includes any and all amounts to be paid by the CoT, without deducting any other penalties which may
have been incurred by the Private Party and Material Subcontractors. This amount is to be extracted from the base case
financial model of the Tsela Tshweu.
4
Drafting Note – this includes any and all amounts to be paid by the CoT, without deducting any other penalties which may
have been incurred by the Private Party and Material Subcontractors. This amount is also to be extracted from the base case
financial model of Tsela Tshweu.
5
Drafting Note - this includes any and all amounts to be paid by the CoT, without deducting any other penalties which may
have been incurred by the Private Party and Material Subcontractors. This amount is also to be extracted from the base case
financial model of the Tsela Tshweu.
3
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 24 of 52
27 February 2014
Where:
m = Contract Month.
c = number of Contract Months in a Contract Quarter.
9.2.8
If the "BBBEE Performance" as defined in the formula in paragraph 9.2 above
results in a positive value, it should be considered a BEEC, and if the BBBEE
Performance results in a negative value, it should be considered an BEEPD.
9.2.9
Quarterly Element Performance respect of each BBBEE Element (QEPn) shall
be determined as follows:
Core
Compone
nt
BBBEE Element
Formulae
100. OWNERSHIP
100-01
Voting Rights held
by Black People
∑𝑚
𝑐=1 𝐸𝑥𝑒𝑟𝑐𝑖𝑠𝑎𝑏𝑙𝑒 𝑉𝑜𝑡𝑖𝑛𝑔 𝑅𝑖𝑔ℎ𝑡𝑠 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑡ℎ𝑒 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑥𝑒𝑟𝑐𝑖𝑠𝑎𝑏𝑙𝑒 𝑉𝑜𝑡𝑖𝑛𝑔 𝑅𝑖𝑔ℎ𝑡𝑠
100-02
Voting Rights held
by Black Women
∑𝑚
𝑐=1 𝐸𝑥𝑒𝑟𝑐𝑖𝑠𝑎𝑏𝑙𝑒 𝑉𝑜𝑡𝑖𝑛𝑔 𝑅𝑖𝑔ℎ𝑡𝑠 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑊𝑜𝑚𝑒𝑛 𝑖𝑛 𝑡ℎ𝑒 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑥𝑒𝑟𝑐𝑖𝑠𝑎𝑏𝑙𝑒 𝑉𝑜𝑡𝑖𝑛𝑔 𝑅𝑖𝑔ℎ𝑡𝑠
Economic Interest
held
by
Black
People
Economic Interest
held
by
Black
Women
Economic Interest
held by Designated
Groups
∑𝑚
𝑐=1 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑡ℎ𝑒 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
100-03
100-04
100-05
∑𝑚
𝑐=1 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑊𝑜𝑚𝑒𝑛 𝑖𝑛 𝑡ℎ𝑒 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
∑𝑚
𝑐=1 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 𝐷𝑒𝑠𝑖𝑔𝑛𝑎𝑡𝑒𝑑 𝐺𝑟𝑜𝑢𝑝𝑠 𝑖𝑛 𝑡ℎ𝑒 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
200. MANAGEMENT CONTROL
Black
People
Participation
in
Board
Black
Executive
Directors
Black Senior Top
Management
Black other Top
Management
200-01
200-02
200-03
200-04
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑃𝑎𝑟𝑡𝑖𝑐𝑖𝑝𝑎𝑡𝑖𝑛𝑔 𝑖𝑛 𝐵𝑜𝑎𝑟𝑑
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝐵𝑜𝑎𝑟𝑑 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝐸𝑥𝑒𝑐𝑢𝑡𝑖𝑣𝑒 𝐷𝑖𝑟𝑒𝑐𝑡𝑜𝑟𝑠
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑁𝑢𝑚𝑏𝑒𝑟
𝑜𝑓
𝐸𝑥𝑒𝑐𝑢𝑡𝑖𝑣𝑒 𝐷𝑖𝑟𝑒𝑐𝑡𝑜𝑟𝑠 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
𝑐=1
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑆𝑒𝑛𝑖𝑜𝑟 𝑇𝑜𝑝 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
𝑚
∑𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑆𝑒𝑛𝑖𝑜𝑟 𝑇𝑜𝑝 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑂𝑡ℎ𝑒𝑟 𝑇𝑜𝑝 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑁𝑢𝑚𝑏𝑒𝑟
𝑜𝑓
𝑃𝑒𝑜𝑝𝑙𝑒
𝑖𝑛 𝑂𝑡ℎ𝑒𝑟 𝑇𝑜𝑝 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
𝑐=1
300. EMPLOYMENT EQUITY
Years 0 to 5
300-01A
300-02A
300-03A
300-04A
Black
Disabled
Employees
Black People in
Senior
Management
Black People in
Middle
Management
Black People in
Junior
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝐷𝑖𝑠𝑎𝑏𝑙𝑒𝑑 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑁𝑢𝑚𝑏𝑒𝑟
𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
𝑐=1
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑆𝑒𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
𝑚
∑𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑆𝑒𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑀𝑖𝑑𝑑𝑙𝑒 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑀𝑖𝑑𝑑𝑙𝑒 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝐽𝑢𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑁𝑢𝑚𝑏𝑒𝑟
𝑜𝑓
𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
𝑖𝑛 𝐽𝑢𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
𝑐=1
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 25 of 52
27 February 2014
Core
Compone
nt
BBBEE Element
Formulae
Management
300-05A(1)
300-05A(2)
Adjusted
Local
People
Adjusted
Local
People at Tier 4
Subcontractors
∑𝑚
𝑐=1 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝐿𝑜𝑐𝑎𝑙 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑
𝐿𝑜𝑐𝑎𝑙
𝑃𝑒𝑜𝑝𝑙𝑒 𝑎𝑡 𝑇𝑖𝑒𝑟 4 𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑜𝑟𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
𝑐=1
∑𝑚
𝑇𝑖𝑒𝑟
4 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
𝑐=1
Black
Disabled
Employees
Black People in
Senior
Management
Black People in
Middle
Management
Black People in
Junior
Management
Adjusted
Local
People
Adjusted
Local
People at Tier 4
Subcontractors
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝐷𝑖𝑠𝑎𝑏𝑙𝑒𝑑 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑁𝑢𝑚𝑏𝑒𝑟
𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
𝑐=1
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑆𝑒𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
𝑚
∑𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑆𝑒𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
Years 6 to
End
of
Contract
term
300-01B
300-02B
300-03B
300-04B
300-05B(1)
300-05B(2)
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑀𝑖𝑑𝑑𝑙𝑒 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑀𝑖𝑑𝑑𝑙𝑒 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝐽𝑢𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑁𝑢𝑚𝑏𝑒𝑟
𝑜𝑓
𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
𝑖𝑛 𝐽𝑢𝑛𝑖𝑜𝑟 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
𝑐=1
∑𝑚
𝑐=1 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝐿𝑜𝑐𝑎𝑙 𝑃𝑒𝑜𝑝𝑙𝑒 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
𝑚
∑𝑐=1 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝐿𝑜𝑐𝑎𝑙 𝑃𝑒𝑜𝑝𝑙𝑒 𝑎𝑡 𝑇𝑖𝑒𝑟 4 𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑜𝑟𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝑐=1 𝑇𝑖𝑒𝑟 4 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
400. SKILLS DEVELOPMENT
Learning
Programmes
Black People
Learning
Programmes
Disabled
Employees
400-01
400-02
400-03
for
for
Black Learnerships
∑𝑚
𝑐=1 𝑆𝑘𝑖𝑙𝑙𝑠 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑜𝑛 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑤ℎ𝑜 𝑎𝑟𝑒 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
∑𝑚
𝑐=1 𝐿𝑒𝑣𝑖𝑎𝑏𝑙𝑒 𝐴𝑚𝑜𝑢𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝑆𝑘𝑖𝑙𝑙𝑠 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑜𝑛 𝐵𝑙𝑎𝑐𝑘 𝐷𝑖𝑠𝑎𝑏𝑙𝑒𝑑 𝑃𝑒𝑜𝑝𝑙𝑒 𝑤ℎ𝑜 𝑎𝑟𝑒 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
∑𝑚
𝑐=1 𝐿𝑒𝑣𝑖𝑎𝑏𝑙𝑒 𝐴𝑚𝑜𝑢𝑛𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
∑𝑚
𝑐=1 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑙𝑎𝑐𝑘 𝑃𝑒𝑜𝑝𝑙𝑒 𝑤ℎ𝑜 𝑎𝑟𝑒 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑖𝑛 𝐿𝑒𝑎𝑟𝑛𝑒𝑟𝑠ℎ𝑖𝑝𝑠 𝑖𝑛 𝑃𝑒𝑟𝑠𝑜𝑛 𝑀𝑜𝑛𝑡ℎ𝑠
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝐺𝑒𝑛𝑑𝑒𝑟
500.
PREFERENTIAL
PROCUREMENT
Years 0 to 5
500-01A
BBBEE
Procurement
500-02A
QSE
&
EME
Procurement
500-03A
500-04A
Black
Owned
Enterprise
Procurement
Adjusted
Local
Enterprise
Procurement
∑𝑚
𝑐=1 𝐵𝐵𝐵𝐸𝐸 𝐸𝑚𝑝𝑜𝑤𝑒𝑟𝑒𝑑 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑄𝑆𝐸 𝑎𝑛𝑑 𝐸𝑀𝐸 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑇𝑜𝑡𝑎𝑙
𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
𝑐=1
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑂𝑤𝑛𝑒𝑑 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝑓𝑟𝑜𝑚 𝐿𝑜𝑐𝑎𝑙 𝐶𝑜𝑚𝑚𝑢𝑛𝑖𝑡𝑖𝑒𝑠 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
Years 6 to
End
of
Contract
term
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 26 of 52
27 February 2014
Core
Compone
nt
BBBEE Element
500-01B
BBBEE
Procurement
500-02B
QSE
&
EME
procurement
Black
owned
Enterprise
procurement
Adjusted
Local
500-04B
Enterprise
Procurement
600.
ENTERPRISE
DEVELOPMENT
Enterprise
600-01
Development
Contributions
Local
Enterprise
600-02
Development
Contributions
700.
SOCIO-ECONOMIC
DEVELOPMENT
Socio-Economic
700-01
Development
Contributions
Formulae
∑𝑚
𝑐=1 𝐵𝐵𝐵𝐸𝐸 𝐸𝑚𝑝𝑜𝑤𝑒𝑟𝑒𝑑 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑄𝑆𝐸 𝑎𝑛𝑑 𝐸𝑀𝐸 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙
∑𝑚
𝑐=1 𝐵𝑙𝑎𝑐𝑘 𝑂𝑤𝑛𝑒𝑑 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
500-03B
∑𝑚
𝑐=1 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝑓𝑟𝑜𝑚 𝐿𝑜𝑐𝑎𝑙 𝐶𝑜𝑚𝑚𝑢𝑛𝑖𝑡𝑖𝑒𝑠 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑇𝑜𝑡𝑎𝑙 𝑀𝑒𝑎𝑢𝑠𝑢𝑟𝑒𝑑 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑆𝑝𝑒𝑛𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛𝑠 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑃𝑜𝑟𝑡𝑖𝑜𝑛 𝑜𝑓 𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑗𝑒𝑐𝑡 𝑉𝑎𝑙𝑢𝑒 𝑖𝑛𝑐𝑢𝑟𝑟𝑒𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛𝑠 𝑓𝑜𝑟 𝐸𝑛𝑡𝑒𝑟𝑝𝑟𝑖𝑠𝑒𝑠 𝑖𝑛 𝐿𝑜𝑐𝑎𝑙 𝐶𝑜𝑚𝑚𝑢𝑛𝑖𝑡𝑖𝑒𝑠 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑃𝑜𝑟𝑡𝑖𝑜𝑛 𝑜𝑓 𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑗𝑒𝑐𝑡 𝑉𝑎𝑙𝑢𝑒 𝑖𝑛𝑐𝑢𝑟𝑟𝑒𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑆𝑜𝑐𝑖𝑜 − 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛𝑠 𝑓𝑜𝑟 𝐿𝑜𝑐𝑎𝑙 𝐶𝑜𝑚𝑚𝑢𝑛𝑖𝑡𝑖𝑒𝑠 𝑖𝑛 𝑅𝑎𝑛𝑑
∑𝑚
𝑐=1 𝑃𝑜𝑟𝑡𝑖𝑜𝑛 𝑜𝑓 𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑗𝑒𝑐𝑡 𝑉𝑎𝑙𝑢𝑒 𝑖𝑛𝑐𝑢𝑟𝑟𝑒𝑑 𝑖𝑛 𝑅𝑎𝑛𝑑
9.3
The outcome of the application of the BBBEE Performance Regime referred to in this
paragraph 9 will be reconciled at the end of the Construction Period and during the
Service Period at the end of each Contract Year to determine compliance with the
Committed Obligations. In the event of the reconciliation of the regime determining
BEEPD are payable to CoT, then the BEEPD shall be due and payable to the CoT by the
Private Party within 20 (twenty) calendar days of demand of such payment by the CoT to
the Private Party and in the event of the reconciliation of the regime determining BEEC,
no amounts will be due and payable to CoT by the Private Party. In the event that the
Committed Obligations have been met, at the end of the Construction Period and during
the Service Period at the end of each Contract Year, but the reconciliation of the BBBEE
Performance Regime determines that BEEPD are payable to CoT, no such BEEPD will
be payable to CoT.
9.4
The BBBEE Performance Regime will not be applied for the period of 3 (three) Contract
Months from the commencement date of the:
9.4.1
Construction Period; and
9.4.2
Services Period.
9.5
The BBBEE Performance Regime will be applied thereafter.
9.6
Should the Private Party exceed the BBBEE Obligations, the benefits of such overperformance will be capped at 135% of BBBEE Performance per Contract Quarter.
Similarly, in the event of under-performance, the consequences of such
underperformance will be capped at:
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 27 of 52
27 February 2014
9.7
10.
9.6.1
10% of 10% of the Indexed Unitary Payment for the relevant Contract Quarter in
respect of the Private Party, prior to any deductions;
9.6.2
40% of 10% of the Indexed Total Project Value attributable to the Construction
Subcontractor for the relevant Contract Quarter in respect of the Construction
Subcontractor, prior to any deductions;
9.6.3
50% of the 10% of the Indexed Unitary Payment for the relevant Contract
Quarter in respect of the Operations Subcontractor, prior to any deductions.
In respect of the BBBEE Elements indicated in Annexure 14 (RFP Commitments on
BBBEE), BEEC can only be earned by the Private Party and/or the Material Contractors
for performance on BBBEE above the levels indicated in the same annexure. This means
that no BEEC can be claimed for performance between the levels indicated in Annexures
3, 4, 5, 6, 7, 8 and 9, and in Annexure 14 (RFP Commitments on BBBEE).
WARNING NOTICES
10.1 In the event of the performance of the Private Party and/or the Material Contractors, being
determined in accordance with the provisions of clause 9 to be less than 75% (seventy
five per cent) determined separately in respect of each of the Private Party, Construction
Subcontractor and Operations Subcontractor in respect of:
10.1.1
Annexure 2: Ownership Element Obligations;
10.1.2
Annexure 3: Management Control Element Obligations;
10.1.3
Annexure 4: Employment Equity Element Obligations;
10.1.4
Annexure 5: Skills Development Element Obligations;
10.1.5
Annexure 6: Preferential Procurement Element Obligations;
10.1.6
Annexure 7: Enterprise Development Element Obligations; and
10.1.7
Annexure 8: Socio-Economic Development Element Obligations,
then CoT shall be entitled to issue an “M” Warning Notice within 20 (Twenty) Business
Days of such determination.
10.2 Where there is no commitment (or zero commitment) in a particular Contract Quarter for a
particular BBBEE Element in the Quarterly Obligations (Annex 11), no BEEC can be
claimed by the Private Party and/or the Material Contractors nor can BEEPD be levied on
the Private Party and/or the Material Contractors. The Scaling Factor of that BBBEE
Element will be deemed to be equal to one, for purposes of calculating the BBBEE
Performance.
10.3 In the event of the CoT issuing 2 (Two) "M" Warning Notices in 2 (two) consecutive
Contract Quarters, the CoT shall be entitled, within 10 (Ten) Business Days of issuing the
last such "M" Warning Notice, to issue an "H" Warning Notice.
10.4 If the CoT issues 2 (two) "H" Warning Notices in any 12 (twelve) Contract Month period,
the CoT shall be entitled to issue a Final Warning Notice which notice must be issued
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 28 of 52
27 February 2014
within 10 (Ten) Business Days of the date upon which the CoT became so entitled or on
such a date as determined by the CoT. The Final Warning Notice entitles the CoT, at its
sole discretion, to terminate the PPP Agreement.
10.5 Each "M" Warning Notices will lapse 12 (twelve) Contract Months after the date on which
it was incurred.
10.6 The Private Party shall in respect of each report submitted for a Contract Month in which
an event giving rise to Warning Notices occurs, provide CoT with a rectification
programme detailing the steps and time period it will take to rectify any event that does
result in or which would entitle the award of Warning Notices.
10.7 In the case where the Private Party has not provided the rectification programme with the
report submitted for a Contract Month, it shall submit such a rectification programme
within ten (10) Business Days of the end of a Contract Month in which an event giving rise
to or entitling the award of Warning Notice occurs, or such longer period as the Parties
may agree.
10.8 Upon the Parties reaching agreement on the proposed rectification programme, the
Private Party will be exempted from incurring further Warning Notices in respect of that
same event provided the Private Party complies with the rectification programme. Such
exemption shall lapse and Warning Notices may be incurred in the event the Private Party
deviates from the rectification programme, unless the Private Party agrees otherwise or
upon the expiry of the time period agreed within which the rectification programme is to
be implemented.
10.9 Should the time period suggested by the Private Party to rectify such an event exceed
sixty (60) Business Days for all the Core Components with the exception of Ownership,
CoT shall in its absolute discretion, be entitled to reject the rectification programme
concerned, in which event the Private Party will not be exempted from incurring further
Warning Notices. In respect of the Ownership, CoT shall be entitled in its absolute
discretion, to reject the rectification programme in as far as it relates to Ownership should
the period suggested to rectify the event exceed (120) Business Days, and in which
event, the Private Party will not be exempt from incurring further Warning Notices.
10.10 Should the Parties not reach agreement on the proposed rectification programme, such a
disagreement can be referred to dispute resolution in terms of clause 55 of the PPP
Agreement (Dispute Resolution) for determination as to whether the proposed rectification
programme will rectify the event that does result in or which will entitle the award of
Warning Letters and whether the time period suggested is suitable for the rectification of
such event and whether such Warning Letters will be levied by CoT on the Private Party.
11.
COT BBBEE VERIFICATION
11.1 CoT shall have the entitlement, in its sole discretion, to appoint a BBBEE Verification
person from time to time with the powers and duties referred to in clause 11.3 below (the
“BEEM”). The costs of such appointment shall be borne by CoT.
11.2 The appointment of the BEEM shall initially be for the duration of the Construction Period
but may be extended to the Service Period.
11.3 The BEEM shall, subject to the terms of his appointment, be appointed to –
11.3.1
review the Private Party and its Material Subcontractors’ records including any
monitoring or audits conducted by the Private Party and its Material
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 29 of 52
27 February 2014
Subcontractors, to verify compliance with the requirements of Schedule 5
(BBBEE Obligations); and
11.3.2
prepare reports in relation to any of the review or monitoring carried out by it in
terms of its functions pursuant to the provisions of this Schedule 5;
11.4 The Private Party shall and shall ensure that its Material Subcontractors shall 11.4.1
monitor, audit, and record in an auditable manner, its own implementation and
compliance with Schedule 5 (BBBEE Obligations);
11.4.2
provide the BEEM with such information as the BEEM reasonably requests
concerning the implementation by the Private Party and its Material
Subcontractors of Schedule 5 (BBBEE Obligations);
11.4.3
invite the BEEM to all meetings at which material issues in relation to the
implementation by the Private Party and its Material Subcontractors of
Schedule 5 (BBBEE Obligations) are to be discussed; and
11.4.4
take account of the opinions expressed by the BEEM.
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 30 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 1
DETAILED DESCRIPTION OF CORE COMPONENTS AND ELEMENTS
[refer to separate attachment]
BBBEE Core
Component
Ownership
Management
Control
BBBEE Element
Code
100-PP-01
100-CS-01
100-OS-01
100-PP-02
100-CS-02
100-OS-02
100-PP-03
100-CS-03
100-OS-03
100-PP-04
100-CS-04
100-OS-04
100-PP-05
100-CS-05
100-OS-05
200-PP-01
200-CS-01
200-OS-01
200-PP-02
200-CS-02
200-OS-02
200-PP-03
BBBEE Elements
Measurement Indicator
Voting Rights held by Black People
Voting Rights held by Black Women
Economic Interest held by Black People
Exercisable Voting Rights of Black People in
the Enterprise *100 / Total Exercisable
Voting Rights
Exercisable Voting Rights of Black Women
in the Enterprise in t *100 / Total Exercisable
Voting Rights
Economic Interest of Black People in the
Enterprise *100 / Total Economic Interest
Economic interest held by Black Women
Economic Interest of Black Women in the
Enterprise *100 / Total Economic Interest
Economic Interest held by Designated
Groups
Economic Interest of Designated Groups in
the Enterprise *100 / Total Economic
Interest
Number of Black People Participating in
Board *100 / Total Number of People
Participating in Board using the Adjusted
Recognition for Gender
Number of Black Executive Directors *100 /
Total Number of Executive Directors using
the Adjusted Recognition for Gender
Number of Black People in Senior Top
Black People Participating in Board
Black Executive Directors
Black Senior Top Management
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 31 of 52
27 February 2014
Quantum
Percentages
Person Months
BBBEE Core
Component
Employment
Equity
B-BBEE
Skills
Development
BBBEE Element
Code
200-CS-03
200-OS-03
BBBEE Elements
Measurement Indicator
200-PP-04
200-CS-04
200-OS-04
Black other Top Management
300-PP-01
300-CS-01
300-OS-01
Black Disabled Employees
300-PP-02
300-CS-02
300-OS-02
Black People in Senior Management
300-PP-03
300-CS-03
300-OS-03
Black People in Middle Management
300-PP-04
300-CS-04
300-OS-04
Black People in Junior Management
300-PP-05
300-CS-05
300-OS-05
Adjusted Local People
300-PP-05A
300-CS-05A
300-OS-05A
Adjusted Local
Subcontractors
400-PP-02
400-CS-01
Learning Programmes for Black People
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
People
at
Tier
Management *100 / Total Number of People
in Senior Top Management using the
Adjusted Recognition for Gender
Number of Black People in other Top
Management *100 / Total Number of People
in other Top Management using the
Adjusted Recognition for Gender
Number of Black Disabled Employees
employed in Person Months *100 / Total
Number of Employees in Person Months
using the Adjusted Recognition for Gender
Black People in Senior Management *100 /
Total Number of Employees in Senior
Management
using
the
Adjusted
Recognition for Gender
Black People in Middle Management *100 /
Total Number of Employees in Middle
Management
using
the
Adjusted
Recognition for Gender
Black People in Junior Management *100 /
Total Number of Employees in Junior
Management Adjusted Recognition for
Gender
Adjusted
Local
People
in
Person
Months*100 / Total Employees in Person
Months
4
Quantum
Person Months
Adjusted Local People at Tier 4
Subcontractors in Person Months *100 / Tier
4 Employees in Person Months
Skills Development Spend on Black People
who are Employees*100 / Leviable Amount
Page 32 of 52
27 February 2014
Rand Value
BBBEE Core
Component
Preferential
Procurement
Enterprise
Development
Socio-Economic
Development
BBBEE Element
Code
400-OS-01
400-PP-02
400-CS-02
400-OS-02
BBBEE Elements
Learning Programmes
Employees
for
Measurement Indicator
Disabled
400-PP-03
400-CS-03
400-OS-03
Black Learnerships
500-PP-01
500-CS-01
500-OS-01
500-PP-02
500-CS-02
500-OS-02
500-PP-03
500-CS-03
500-OS-03
500-PP-04
500-CS-04
500-OS-04
600-PP-01
600-CS-01
600-OS-01
600-PP-02
600-CS-02
600-OS-02
BBBEE Procurement
Local
Enterprise
Contributions
Development
700-PP-01
700-CS-01
700-OS-01
Socio-Economic
Contributions
Development
QSE & EME Procurement
Black Owned Enterprise Procurement
Adjusted Local Enterprise Procurement
Enterprise Development Contributions
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
using the Adjusted Recognition for Gender
Skills Development Spend on Black
Disabled People who are Employees *100 /
Leviable Amount using the Adjusted
Recognition for Gender
Number of Black People who are
Employees in Learnerships in Person
Months *100 / Total Employees using the
Adjusted Recognition for Gender
BBBEE Empowered Enterprise Procurement
Spend in Rand *100 / Total Measured
Procurement Spend in Rand
QSE and EME Spend in Rand *100 / Total
Measured Procurement Spend in Rand
Black Owned Enterprise Procurement
Spend in Rand *100 / Total Measured
Procurement Spend in Rand
Enterprise
from
Local
Communities
Procurement Spend in Rand *100 / Total
Measured Procurement Spend in Rand
Enterprise Development Contributions in
Rand * 100 / Portion of Total Project Value
incurred in Rand
Enterprise Development Contributions for
Enterprises in Local Communities in Rand
*100 / Portion of Total Project Value incurred
in Rand
Socio-Economic Development Contributions
for Local Communities in Rand*100 / Portion
of Total Project Value incurred in Rand
Page 33 of 52
27 February 2014
Quantum
Rand Value
Rand Value
Rand Value
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 34 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 2
BBBEE MATRIX
[refer to separate attachment]
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 35 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 3
OWNERSHIP ELEMENT OBLIGATIONS
1.
Committed Obligations
1.1
The Private Party and its Material Subcontractors shall procure that the Committed
Obligations referred to in clause 1.2 below, with regard to the Ownership Obligations,
are attained or exceeded by it, and/or the Material Sub-Contractors in the applicable
periods.
1.2
The Committed Obligations with regard to the Ownership Obligations are provided in
Tables 5.1 below.
TABLE 5.1 – Committed Obligations with regard to Ownership
TABLE 5.1.1 – Private Party
ELEMENT
COMMITTED OBLIGATIONS
(OWNERSHIP BBBEE
OBLIGATIONS)
No.
Description
100-PP-01
Voting Rights held by Black People
55%
100-PP-02
Voting Rights held by Black Women
25%
100-PP-03
Economic Interest held by Black People
26%
100-PP-04
Economic interest held by Black Women
10%
100-PP-05
Economic Interest held by Designated Groups
2.5%
TABLE 5.1.2 – Construction Subcontractor
ELEMENT
COMMITTED OBLIGATIONS
(OWNERSHIP BBBEE
OBLIGATIONS)
No.
Description
100-CS-01
Voting Rights held by Black People
100-CS-02
Voting Rights held by Black Women
100-CS-03
Economic Interest held by Black People
36.25%
100-CS-04
Economic interest held by Black Women
10%
100-CS-05
Economic Interest held by Designated Groups
3.4%
50%
25%
TABLE 5.1.3 – Operations Subcontractor
ELEMENT
No.
Description
100-OS-01
Voting Rights held by Black People
100-OS-02
Voting Rights held by Black Women
100-OS-03
Economic Interest held by Black People
COMMITTED OBLIGATIONS
(OWNERSHIP BBBEE
OBLIGATIONS)
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
55.4%
25%
55.4%
Page 36 of 52
27 February 2014
ELEMENT
No.
Description
100-OS-04
Economic interest held by Black Women
100-OS-05
Economic Interest held by Designated Groups
COMMITTED OBLIGATIONS
(OWNERSHIP BBBEE
OBLIGATIONS)
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
25%
12.5%
Page 37 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 4
MANAGEMENT CONTROL ELEMENT OBLIGATIONS
1
Committed Obligations
1.1
The Private Party shall procure that the Committed Obligations referred to in clause
1.2 below, with regard to the Management Control Obligations, are attained or
exceeded by it, and/or the Material Subcontractors in the applicable periods.
1.2
The Committed Obligations with regard to the Management Control Obligations are
provided in Tables 5.2 below.
TABLE 5.2 – Committed Obligations with regard to Management Control
TABLE 5.2.1 – PRIVATE PARTY
BBBEE ELEMENT
COMMITTED
OBLIGATIONS
(MANAGEMENT
CONTROL BBBEE
OBLIGATIONS)
No.
Description
200-PP-01
Black People Participating in Board
200-PP-02
Black Executive Directors
N/A
200-PP-03
Black Senior Top Management
50%
200-PP-04
Black other Top Management
N/A
200-PP-05
Black People who are independent Non-executive Board members
N/A
56.3%
TABLE 5.2.2 – CONSTRUCTION SUBCONTRACTOR
BBBEE ELEMENT
COMMITTED
OBLIGATIONS
(MANAGEMENT
CONTROL BBBEE
OBLIGATIONS)
No.
Description
200-CS-01
Black People Participating in Board
200-CS-02
Black Executive Directors
200-CS-03
Black Senior Top Management
25%
200-CS-04
Black other Top Management
N/A
[200-CS-05]
Black People who are independent Non-executive Board members
N/A
50%
62.5%
TABLE 5.2.3 – OPERATIONS SUBCONTRACTOR
BBBEE ELEMENT
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
COMMITTED
Page 38 of 52
27 February 2014
OBLIGATIONS
(MANAGEMENT
CONTROL BBBEE
OBLIGATIONS)
No.
Description
200-OS-01
Black People Participating in Board
75%
200-OS-03
Black Executive Directors
75%
200-OS-03
Black Senior Top Management
65%
200-OS-04
Black other Top Management
N/A
200-OS-05
Black People who are independent Non-executive Board members
N/A
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 39 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 5
EMPLOYMENT EQUITY ELEMENT OBLIGATIONS
1
Committed Obligations
1.1
The Private Party shall procure that the Committed Obligations referred to in clause
1.2 below, with regard to the Employment Equity Obligations, are attained or
exceeded by it, and/or the Material Subcontractors in the applicable periods.
1.2
The Committed Obligations with regard to the Employment Equity Obligations are
provided in Tables 5.3 below.
TABLE 5.3 – Committed Obligations with regard to Employment Equity
TABLE 5.3.1 – PRIVATE PARTY
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(EMPLOYMENT EQUITY
BBBEE OBLIGATIONS)
(YEARS 0 – 5)
No.
Description
300-PP-01
Black Disabled Employees
2%
300-PP-02
Black People in Senior Management for
N/A
300-PP-03
Black People in Middle Management
N/A
300-PP-04
Black People in Junior Management
N/A
300-PP-05
Adjusted Local People
75%
300-PP05A
Adjusted Local People at Tier 4 Sub-contractors
BBBEE ELEMENT
N/A
COMMITTED OBLIGATIONS
(EMPLOYMENT EQUITY
BBBEE OBLIGATIONS)
(YEARS 6 TO END OF
CONTRACT TERM)
No.
Description
300-PP-01
Black Disabled Employees
N/A
300-PP-02
Black People in Senior Management for
N/A
300-PP-03
Black People in Middle Management
N/A
300-PP-04
Black People in Junior Management
N/A
300-PP-05
Adjusted Local People
N/A
300-pp05A
Adjusted Local People at Tier 4 Sub-contractors
N/A
TABLE 5.3.2 – CONSTRUCTION SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
COMMITTED OBLIGATIONS
(EMPLOYMENT EQUITY
BBBEE OBLIGATIONS)
(YEARS 0 – 5)
Page 40 of 52
27 February 2014
300-CS-01
Black Disabled Employees
2.10%
300-CS-02
Black People in Senior Management for
50.72%
300-CS-03
Black People in Middle Management
51.82%
300-CS-04
Black People in Junior Management
75.7%
300-CS-05
Adjusted Local People
88.10%
300-CS05A
Adjusted Local People at Tier 4 Sub-contractors
BBBEE ELEMENT
50%
COMMITTED OBLIGATIONS
(EMPLOYMENT EQUITY
BBBEE OBLIGATIONS)
(YEARS 6 TO END OF
CONTRACT TERM)
No.
Description
300-CS-01
Black Disabled Employees
N/A
300-CS-02
Black People in Senior Management for
N/A
300-CS-03
Black People in Middle Management
N/A
300-CS-04
Black People in Junior Management
N/A
300-CS-05
Adjusted Local People
N/A
300-OS05A
Adjusted Local People at Tier 4 Sub-contractors
N/A
TABLE 5.3.3 – OPERATION SUBCONTRACTOR
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(EMPLOYMENT EQUITY
BBBEE OBLIGATIONS)
(YEARS 0 – 5)
No.
Description
300-OS-01
Black Disabled Employees
300-OS-02
Black People in Senior Management for
61%
300-OS-03
Black People in Middle Management
63%
300-OS-04
Black People in Junior Management
83.33%
300-OS-05
Adjusted Local People
300-OS05A
Adjusted Local People at Tier 4 Sub-contractors
BBBEE ELEMENT
3.70%
80%
60%
COMMITTED OBLIGATIONS
(EMPLOYMENT EQUITY
BBBEE OBLIGATIONS)
(YEARS 6 TO END OF
CONTRACT TERM)
No.
Description
300-OS-01
Black Disabled Employees
300-OS-02
Black People in Senior Management for
300-OS-03
Black People in Middle Management
80.4%
300-OS-04
Black People in Junior Management
77.5%
300-OS-05
Adjusted Local People
300-OS05A
Adjusted Local People at Tier 4 Sub-contractors
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
3.70%
70%
90%
60%
Page 41 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 6
SKILLS DEVELOPMENT ELEMENT OBLIGATIONS
1
Committed Obligations
1.1
The Private Party shall procure that the Committed Obligations referred to in clause
1.2 below, with regard to the Skills Development Obligations, are attained or
exceeded by it, and/or the Material Subcontractors in the applicable periods.
1.2
The Committed Obligations with regard to the Skills Development Obligations are
provided in Tables 5.4 below.
TABLE 5.4 – Committed Obligations with regard to Skills Development
TABLE 5.4.1 – PRIVATE PARTY
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(SKILLS DEVELOPMENT
BBBEE OBLIGATIONS)
No.
Description
400-PP-01
Learning Programmes for Black People
3%
400-PP-02
Learning Programmes for Disabled Employees
0%
400-PP-03
Black Learnerships
0%
TABLE 5.4.2 – CONSTRUCTION SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
400-CS-01
Learning Programmes for Black People
400-CS-02
Learning Programmes for Disabled Employees
400-CS-03
Black Learnerships
COMMITTED OBLIGATIONS
(SKILLS DEVELOPMENT
BBBEE OBLIGATIONS)
3%
0.3%
5%
TABLE 5.4.3 – OPERATIONS SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
400-OS-01
Learning Programmes for Black People
400-OS-03
Learning Programmes for Disabled Employees
400-OS-03
Black Learnerships
COMMITTED OBLIGATIONS
(SKILLS DEVELOPMENT
BBBEE OBLIGATIONS)
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
3%
0.3%
5%
Page 42 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 7
PREFERENTIAL PROCUREMENT ELEMENT OBLIGATIONS
1
Committed Obligations
1.1
The Private Party shall procure that the Committed Obligations referred to in clause
1.2 below, with regard to the Preferential Procurement Obligations, are attained or
exceeded by it, and/or the Material Subcontractors in the applicable periods.
1.2
The Committed Obligations with regard to the Preferential Procurement Obligations
are provided in Tables 5.5 below.
TABLE 5.5 – Committed Obligations with regard to Preferential Procurement
TABLE 5.5.1 – PRIVATE PARTY
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(PREFERENTIAL
PROCUREMENT BBBEE
OBLIGATIONS) (YEARS 0 –
5)
No.
Description
500-PP-01
BBBEE Procurement
45%
500-PP-02
QSE and EME Procurement
10%
500-PP-03
Black Owned Enterprise Procurement
10%
500-PP-04
Adjusted Local Enterprise Procurement
0%
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(PREFERENTIAL
PROCUREMENT BBBEE
OBLIGATIONS) (YEARS 6
TO END OF CONTRACT
TERM)
No.
Description
500-PP-01
BBBEE Procurement
N/A
500-PP-02
QSE and EME Procurement
N/A
500-PP-03
Black Owned Enterprise Procurement
N/A
500-PP-04
Adjusted Local Enterprise Procurement
N/A
TABLE 5.5.2 – CONSTRUCTION SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
500-CS-01
BBBEE Procurement
500-CS-03
QSE and EME Procurement
500-CS-03
Black Owned Enterprise Procurement
500-CS-04
Adjusted Local Enterprise Procurement
BBBEE ELEMENT
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
COMMITTED OBLIGATIONS
(PREFERENTIAL
PROCUREMENT BBBEE
OBLIGATIONS) (YEARS 0 –
5)
56.19%
10%
15.1%
23%
COMMITTED OBLIGATIONS
Page 43 of 52
27 February 2014
(PREFERENTIAL
PROCUREMENT BBBEE
OBLIGATIONS) (YEARS 6
TO END OF CONTRACT
TERM)
No.
Description
500-CS-01
BBBEE Procurement
N/A
500-CS-03
QSE and EME Procurement
N/A
500-CS-03
Black Owned Enterprise Procurement
N/A
500-CS-04
Adjusted Local Enterprise Procurement
N/A
TABLE 5.5.3 – OPERATIONS SUBCONTRACTOR
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(PREFERENTIAL
PROCUREMENT BBBEE
OBLIGATIONS) (YEARS 0 –
5)
No.
Description
500-OS-01
BBBEE Procurement
50%
500-OS-03
QSE and EME Procurement
30%
500-OS-03
Black Owned Enterprise Procurement
15%
500-OS-04
Adjusted Local Enterprise Procurement
70%
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(PREFERENTIAL
PROCUREMENT BBBEE
OBLIGATIONS) (YEARS 6
END OF CONTRACT TERM)
No.
Description
500-OS-01
BBBEE Procurement
70%
500-OS-03
QSE and EME Procurement
30%
500-OS-03
Black Owned Enterprise Procurement
20%
500-OS-04
Adjusted Local Enterprise Procurement
70%
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 44 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 8
ENTERPRISE DEVELOPMENT ELEMENT OBLIGATIONS
1
Committed Obligations
1.1
The Private Party shall procure that the Committed Obligations referred to in clause
1.2 below, with regard to the Enterprise Development Obligations, are attained or
exceeded by it, and/or the Material Subcontractors in the applicable periods.
1.2
The Committed Obligations with regard to the Enterprise Development Obligations
are provided in Tables 5.6 below.
TABLE 5.6 – Committed Obligations with regard to Enterprise Development
TABLE 5.6.1 – PRIVATE PARTY
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(ENTERPRISE
DEVELOPMENT BBBEE
OBLIGATIONS)
No.
Description
600-PP-01
Enterprise Development Contributions
N/A
600-PP-02
Local Enterprise Development Contributions
N/A
TABLE 5.6.2 – CONSTRUCTION SUBCONTRACTOR
BBBEE ELEMENT
COMMITTED OBLIGATIONS
(ENTERPRISE
DEVELOPMENT BBBEE
OBLIGATIONS)
No.
Description
600-CS-01
Enterprise Development Contributions
2% of Total Project Value
600-CS-02
Local Enterprise Development Contributions
1% of Total Project Value
TABLE 5.6.3 – OPERATIONS SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
COMMITTED OBLIGATIONS
(ENTERPRISE
DEVELOPMENT BBBEE
OBLIGATIONS)
600-OS-01
Enterprise Development Contributions
3% of Total Project Value
600-OS-02
Local Enterprise Development Contributions
1% of Total Project Value
City of Tshwane
New Municipal Headquarters Project
Schedule 5: Broad Based Black Economic Empowerment Obligations
Page 45 of 52
27 February 2014
SCHEDULE 5
ANNEXURE 9
SOCIO-ECONOMIC DEVELOPMENT ELEMENT OBLIGATIONS
1
Committed Obligations
1.1
The Private Party shall procure that the Committed Obligations referred to in clause
1.2 below, with regard to the Socio-Economic Development Obligations, are attained
or exceeded by it, and/or the Construction Subcontractor, and/or the Operations
Subcontractor in the applicable periods.
1.2
The Committed Obligations with regard to the Socio-Economic Development
Obligations are provided in Tables 5.7 below.
TABLE 5.7 – Committed Obligations with regard to Socio-Economic Development
TABLE 5.7.1 – PRIVATE PARTY
BBBEE ELEMENT
No.
Description
700-PP-01
Socio-Economic Development Contributions
COMMITTED OBLIGATIONS
(SOCIO-ECONOMIC
DEVELOPMENT BBBEE
OBLIGATIONS)
0.05% of Total Project Value
TABLE 5.7.2 – CONSTRUCTION SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
700-CS-01
Socio-Economic Development Contributions
COMMITTED OBLIGATIONS
(SOCIO-ECONOMIC
DEVELOPMENT BBBEE
OBLIGATIONS)
0.05% of Total Project Value
TABLE 5.7.3 – OPERATIONS SUBCONTRACTOR
BBBEE ELEMENT
No.
Description
700-OS-01
Socio-Economic Development Contributions
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Schedule 5: BBBEE Obligations
COMMITTED OBLIGATIONS
(SOCIO-ECONOMIC
DEVELOPMENT BBBEE
OBLIGATIONS)
0.05% of Total Project Value
Page 46 of 52
Final
2 February 2014
SCHEDULE 5
ANNEXURE 10
BBBEE WEIGHTS
TABLE 10.1 BBBEE CORE COMPONENT AND ELEMENT WEIGHTS
Core Component and Code of
BBBEE Element
Core Component And
Element Weights
BBBEE Element
20%
100. OWNERSHIP
100-02
Exercisable Voting Rights held by Black
People
Exercisable Voting Rights held by Black
Women
100-03
Economic Interest held by Black People
6.6%
100-04
100-05
Economic Interest held by Black Women
Economic Interest held by Designated
Groups
3.4%
100-01
5%
3.4%
1.6%
8%
200. MANAGEMENT CONTROL
200-01
Black People Participation in Board
2.4%
200-02
Black Executive Directors
1.6%
200-03
Black Senior Top Management
2.4%
200-04
Black other Top Management
1.6%
17%
300. EMPLOYMENT EQUITY
300-01
Black Disabled Employees
1%
300-02
Black People in Senior Management
2%
300-03
Black People in Middle Management
2%
300-04
Black People in Junior Management
1%
300-05(1)
Adjusted Local People
Adjusted
Local
People
Subcontractors
5%
300-05(2)
at
Tier
4
6%
15%
400. SKILLS DEVELOPMENT
6%
400-02
Learning Programmes for Black People
Learning
Programmes
for
Disabled
Employees
400-03
Black Learnerships
6%
400-01
3%
20%
500. PREFERENTIAL PROCUREMENT
500-01
BBBEE Procurement
2%
500-02
QSE & EME Procurement
5%
500-03
Black Owned Enterprise Procurement
3%
500-04
Adjusted Local Enterprise Procurement
10%
15%
600. ENTERPRISE DEVELOPMENT
600-01
Enterprise Development Contributions
6%
600-02
Local Enterprise Development Contributions
9%
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Schedule 5: BBBEE Obligations
Page 47 of 52
Final
2 February 2014
Core Component and Code of
BBBEE Element
BBBEE Element
Core Component And
Element Weights
700. SOCIO-ECONOMIC DEVELOPMENT
5%
700-01
5%
Socio-Economic Development Contributions
Schedule 5: BBBEE Obligations
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Page 48 of 52
Final
2 February 2014
SCHEDULE 5
ANNEXURE 11
MONTHLY OBLIGATIONS OF THE PRIVATE PARTY AND MATERIAL
SUBCONTRACTORS
[refer to separate attachment]
Schedule 5: BBBEE Obligations
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Page 49 of 52
Final
2 February 2014
SCHEDULE 5
ANNEXURE 12
BBBEE PLANS
[refer to separate attachment]
Schedule 5: BBBEE Obligations
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Page 50 of 52
Final
2 February 2014
SCHEDULE 5
ANNEXURE 13
FORM OF REPORTING REGIME AND PROOF TO BE SUBMITTED
[refer to separate attachment]
Schedule 5: BBBEE Obligations
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Page 51 of 52
Final
2 February 2014
SCHEDULE 5
ANNEXURE 14
RFP COMMITMENTS ON BBBEE
[refer to separate attachment]
Schedule 5: BBBEE Obligations
New Municipal Headquarters Project
New Municipal Headquarters Project PPP Agreement
Page 52 of 52
Final
2 February 2014