Cancelled Foreshore Freeway project RFP (Request for proposals) does not mean the project is dead and buried
Last week the City Manager informed me that the formal Request for Proposals for the future of the Foreshore Freeway Precinct was to be cancelled following consideration of the appeals against the identification of one qualifying bidder.
The City Manager, as the appeal authority, cancelled the RFP based on the appeals he received and after taking legal advice.
In July 2016 we launched the Request for Proposals for the future development of the Foreshore Freeway Precinct. The commencement of a formal process to address the unfinished freeways, and the future development of the 6-hectare precinct, followed decades of uncertainty and inaction.
Growing traffic volumes in and out of the city centre has resulted in intolerable congestion which needs to be addressed. The 6 hectares of prime City-owned land, sterilised by the uncertain future of the unfinished freeways, presented an opportunity for traffic congestion to be addressed without burdening the ratepayers with the costs of what was always viewed as unaffordable infrastructure.
The land also presented an opportunity for us to deliver on one of our key pillars – building an inclusive city – by ensuring that affordable housing was included in any development proposal.
Our approach to addressing traffic congestion and the need for inner-city affordable housing was unique and innovative and we were excited to receive six compelling and innovative proposals. We are extremely grateful to the bidders for their proposals and their efforts.
It is disappointing that our first attempt did not work out. However, the cancellation of the RFP does not mean that the project is cancelled. The need to address the future of the unfinished freeways remains. So too does the need ensure access to affordable housing in our city centre.
The 6ha Foreshore Freeway Precinct is the last remaining undeveloped land in our inner city and the response to our RFP demonstrates a market appetite to develop this land even with the conditions we imposed:
1. Address traffic congestion
2. Include affordable housing
3. Deal with apartheid spatial planning
4. Ensure integration of different communities and income levels and establish inclusive communities as committed to in the DA’s national manifesto
5. Provide inclusive spaces to be funded by partnerships with private sponsors and leveraging City assets and optimisation of these assets to drive economic benefits for the City in line with the DA’s manifesto for Cape Town.
Leveraging City-owned land to address service delivery needs is also consistent with our Integrated Development Plan.
The City Manager has agreed that the RFP will be redrafted to address concerns raised during the appeal process and reissued. A project team has already been assembled to ensure that this can happen as soon as possible.
I wish to thank the developers who participated in our first RFP. I trust that they will understand that in trying something innovative and unique we had no precedent to reply upon and I hope that they will be in a position to participate again when the new RFP is issued.
Statement issued by Executive Mayor Patricia de Lille, 22 July 2018
Earlier statement on this matter (18 July 2018):
City cancels Request for Proposals for Foreshore Freeway Precinct development
The City of Cape Town has cancelled the Request for Proposals for the development of the Foreshore Freeway Precinct. Read more below:
The City of Cape Town’s City Manager has, upon receiving legal advice, taken the decision to cancel the Request for Proposals (RFP) for the development of the Foreshore Freeway Precinct.
The six bidders were notified of the decision in writing on Friday, 13 July 2018.
The Stage 1 bid evaluation process was concluded in February 2018. Several appeals and objections were lodged that contested the application of the evaluation criteria as set out in the RFP documentation.
Having received legal advice, the City concluded that a lack of sufficient clarity in the RFP documentation rendered the evaluation criteria vague.
‘Procurement processes must be compliant with the rule of law, in particular with Section 217 of the Constitution which governs public procurement. There must be no doubt about the integrity of these processes and, as such, I have decided to cancel the RFP.
‘Furthermore, the economic outlook for the country has become significantly weaker since the issuing of the RFP two years ago. This change, together with the additional burdens that the City, its ratepayers, and residents are facing at the moment, cannot be ignored. The City is, therefore, reconsidering the future of this project, and we will communicate further once a decision has been made.
‘In the meantime, I want to express my sincere gratitude to all of the bidders who submitted proposals and representations,’ said Mr Lungelo Mbandazayo, the City Manager.
Statement issued by the City of Cape Town, 18 July 2018
