Engineering News — December 08, 2017

RA ENGINEERING NEWS | December 8–14, 2017 43

G

overnment-contracted construction

company Sakhisizwe broke ground

on the first phase of the multibillion-

rand Florida Heights integrated housing devel-

opment, in Nelson Mandela Bay, last month.

According to Sakhisizwe, more than 10 000

direct and indirect jobs will be created during

the five-year roll-out of the first integrated

development housing scheme in the Eastern

Cape, which is on vacant land overlooking

Despatch.

The government-backed scheme – one of

the catalytic projects identified by the national

Department of Human Settlements across

South Africa – is also set to be an economic

injection for Despatch and neighbouring

Uitenhage.

Attracting low- to middle-income residents,

Phase 1 will see 1 020 housing units developed

alongside community and mixed-use facilities,

with Phase 2 – which is in the planning stages

and is set to be completed in about 15 years’

time – to include a further 12 030 residential

opportunities.

Human Settlements Minister Lindiwe

Sisulu announced the funding last year

during her Budget Vote address for the

2016/17 financial year.

Of the total provincial allocation for housing

(R25-billion), more than R20-billion was

allocated to the Nelson Mandela Bay Metro

(NMBM), with the balance split between the

King Sabata Dalindyebo municipality and the

Buffalo City Metro.

In the NMBM, the money will be used to

construct 64 342 houses, which will be spread

across the metro, with Coega Ridge allocated

38 000 units, Walmer 12 800 units, Algoa Park

1 512 units and Florida Heights 12 030 units.

These residential units are meant for low-,

middle- and high-income earners and will

include a work-and-play development. At the

time, the provincial African National Congress

said the allocation of funds would help address

the NMBM’s crippling housing backlog and

unemployment.

The NMBM has a total housing backlog of

over 80 000 units, according to the national

Housing Development Agency’s technical

assessment framework report for the Florida

Heights scheme.

The Florida Heights development will be

located on 50 ha of land – 23 ha of which

will remain undeveloped. Of the Phase 1

units, 740 will be social housing apartments

or ‘walk-ups’ for rent; 100 will be Finance-

linked Individual Subsidy Programme

residential units – homes sold to residents

with government subsidies on the bonds; and

180 will be Reconstruction and Development

Programme (RDP) homes and military

veteran units for those living below the

poverty line.

Sakhisizwe says integrated developments

such as Florida Heights are the province’s

first concrete moves away from government’s

RDP housing schemes – a result of the Social

Housing Act of 2009.

Whereas RDP developments were relegated

to the outskirts of cities – far from clinics,

major employment hubs and convenience

stores – integrated developments include such

convenience and social facilities, as well as

secure access, public transport nodes and

landscaped public spaces.

According to one of the urban designers

on the project, Clayton Johnson-Goddard,

the move was a seismic shift in government’s

approach to addressing the housing backlog,

as well as maximising limited resources

within cities.

“At all times, integrated developments

should focus on the users it serves. This

approach is fundamentally different from

previous planning notions,” he said.

“Integrated develop ments should create

neighbourhoods and communities that serve

and benefit each aspect of a person’s livelihood

• whether it be work, live or play,” Johnson-
  Goddard concluded.

CEMENT producer PPC pro-

duced double-digit earnings for

the first half of the 2018 financial

year, with the JSE-listed group’s

cement operations in the rest

of Africa delivering a shining

performance.

For the six months ended

September 30, net profit attribu-

table to PPC shareholders

increased by 188% to R294-

million.

Earnings per share increased

by 54% to 20c, while headline

earnings per share rose by 36%

to 19c during the half-year under

rev iew.

Group earnings before

inter est, taxes, depreciation and

amortisation (Ebitda) expanded

by 4% to R1.2-billion, supported

by 25% growth to R422-million

in Ebitda from the rest of Africa,

said CEO Johan Claassen.

The Southern Africa cement

division maintained its Ebitda of

R740-million.

Ebitda of R63-million and R40-

million were generated by the

lime and aggregate and readymix

divisions respectively.

Corporate action and other

nonrecurring expenses amounted

to R53-million, while the impact

of a stronger exchange rate

reduced Ebitda by R43-million

on a comparable basis.

Excluding these impacts, group

Ebitda would have risen by 12%.

Group revenue increased by 1%

to R5.2-billion, with total cement

volumes up 2% to about three-

million tonnes.

Revenue for the Southern

Africa cement division, which

includes Botswana, was margin-

ally down at R2.9-billion, with

the segment achieving 2% higher

realised average selling prices but

a 1% reduction in volumes.

Revenue from the rest of Africa

was R1.25-billion in the first half

of the finan cial year, up from the

R1.1-billion recorded in the prior

corresponding period.

In the materials divisions, the

lime segment produced reve nue of

R390-million, while the aggregate

and readymix unit delivered

revenue of R646-million.

PPC also reported a decline in

net debt from R4.7-billion in

March to R4.4-billion by

September. The group further

improved its balance sheet by

slashing finance costs by 44% to

R285-million after a rights issue.

“The decrease was due to the

benefits of the rights issue and the

liquidity and guarantee facility

agreement fees incurred in the

previous reporting period,” the

company said last week.

Improvements

The group posted the improve-

ments following a period of

‘transformation’ as new invest-

ments in Zimbabwe and Rwanda

contributed posi tively to growth

during the half-year under review.

“PPC Zimbabwe grew volumes

by more than 25%, compared with

last year, achieving new sales

records in the process,” explained

Claassen, noting that the com-

missioning of the Harare mill

supported volume growth in the

CONSTRUCTION

FINANCIAL RESULTS

Catalytic Project

African operations shine for

PPC during interim period

Phase 1 of Nelson Mandela Bay housing project under way

NEWS&INSIGHT

NATASHA ODENDAAL

CREAMER MEDIA DEPUTY

EDITOR ONLINE

• To page 45

NADINE JAMES | CREAMER MEDIA STAFF WRITER

ENGINEERING NEWS COUPON ON PAGE 42 E472529