The latest addition to the Crowie Holdings stable, Crowie Concessions, was established in early 2009 to take advantage of public private partnership (PPP) opportunities.
Crowie Concessions participates in PPP opportunities either through a build, operate, transfer (BOT) or build, own, operate, transfer (BOOT) basis. It is through this system of procurement that government has implemented a number of large infrastructural projects. Crowie Concessions is poised to participate in these transactions as a shareholder in the private parties who forge PPP agreements with government.
Siyabonga Mbanjwa
Headed by MD Siyabonga Mbanjwa, the company is a wholly owned subsidiary of Crowie Holdings. Mbanjwa says that though Crowie Holdings has already been participating in PPPs, the establishment of Crowie Concessions is aimed at increasing the number of PPPs with which the company is involved. This will also allow it to have a more focused approach towards these types of projects.
"Not only will Crowie Concessions take a share of the project, but it will also create downstream opportunities for Focus Project Management, Enza Construction and our other subsidiaries," he says. "In spite of the economic recession, government projects will continue to receive priority and embarking on PPPs is therefore a strategic imperative as it will enable us to ride out the downturn."
He says that PPPs are an alternative way for government to deliver on its infrastructural mandate to the country, particularly with regard to high expenditure projects. The group has already participated in a number of PPPs, such as the R170m Cradle of Humankind project, with Focus Project Management, as well as a bid for the department of trade & industry's new head office in Pretoria. More recently, the company has been involved in bidding for a project for new correctional centres to be launched throughout the country as well as a new KwaZulu Natal Legislature.
PPPs are a lucrative option for private companies that are able to raise sufficient capital to finance the project as the bid also includes operating the facilities for a set period. The challenge for many companies, however, is the high transaction costs required. But, through its holding company, Crowie Holdings, Crowie Concessions is well positioned to take advantage of PPP opportunities.
