The use of concession model to acquire and manage public office accommodation
Date
2015
Authors
Xaba, Siyabonga Lindelani
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Abstract
It has been noted with concern that in past 20 years of governing, the South African
government still owns few office buildings to accommodate its departments. These
government departments are accommodated in leased office buildings that are mostly
poor maintained, have limited space, the budget to rehabilitate buildings is limited, and
the Department of Public Works as custodian of state immovable assets has no
effective internal control systems to manage leased buildings. The purpose of this
research was to explore whether the concession model is the best in procuring and
managing public office accommodation in South Africa, and to determine whether the
use of PPP could reduce the costs of leasing buildings. The DIRCO PPP building was
used as a case study. The methodology used was qualitative research strategy. The
findings of the research indicated that PPP could indeed accelerate acquiring and
management of office buildings by the state. However, the research also established
that PPPs are costly but the return on investment is worth it, in a long term.
Description
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Keywords
Public-private sector cooperation, Office buildings,Public buildings -- South Africa -- Finance.