CENTURION
CAV
AEROSPACE VILLAGE
an initiative of the dti
2020
2021
ANNUAL
PERFORMANCE PLAN
CENTURION AEROSPACE VILLAGE NPC
CENTURION
CAV
AEROSPACE VILLAGE
an initiative of the dti
CENTURION AEROSPACE VILLAGE NPC
ANNUAL
PERFORMANCE PLAN
2020 – 2021
CONFIDENTIALITY AND DISCLAIMER
The text in this document may be reproduced free of charge in any format or medium providing that
it is reproduced accurately and not used in a misleading context or used for commercial gain. The
material must be acknowledged as CAV copyright and the title of the document specified.
Any enquiries relating to the copyright in this document should be addressed to the CAV
© CAV Copyright, 2020
2 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
TABLE OF CONTENTS
CONFIDENTIALITY AND DISCLAIMER 2
TABLE OF TABLES 5
TABLE OF FIGURES 5
GLOSSARY OF TERMS 6
1 OFFICIAL SIGN OFF 8
2 THE MANDATE OF THE CAV 9
3 FOREWORD BY THE DEPUTY DIRECTOR-GENERAL (DDG: IDD) OF the dti 10
4 OVERVIEW BY THE ACCOUNTING AUTHORITY 11
5 GOVERNANCE STRUCTURE 12
6 ORGANISATION STRUCTURE 13
7 STRATEGIC OVERVIEW 14
7.1 Linking the CAV Vision, Mission and Objectives 14
7.2 Vision Statement 14
7.3 Mission Statement 14
7.4 Strategic Objectives 14
7.5 Our Values 15
7.6 Company Profile 15
7.6.1 The Company 15
7.6.2 Location 16
8 SITUATIONAL ANALYSIS 17
8.1 Contextual Environment 17
8.1.1 The Aerospace and Defence Industry: Global Context 17
8.1.2 Aerospace and Defence Industry: African context 18
8.1.3 Aerospace and Defence Industry: South African context 19
8.1.4 The Aerospace and Defence Industry: Clusters and Industrial Parks 21
9 LEGISLATIVE MANDATE 23
9.1 Institutional Arrangements 23
9.2 CAV’s incorporation into the Gauteng Provincial Government 23
10 OVERVIEW OF PAST AND FUTURE DEVELOPMENT ACTIONS 24
10.1 Infrastructure, Services’ and Facility Development 24
10.2 Strategic Partnership and interested tenants 24
11 PROGRAMMES PLANS 25
PROGRAMME 1: ADMINISTRATION 25
1.Purpose 25
1.1 Description of the Functional Areas 25
1.1.1 Strategy Planning, Monitoring and Evaluation 25
PROGRAMME 2: CORPORATE SUPPORT SERVICES 25
2. Purpose 25
2.1 Description of the Functional Areas 26
2.1.1 Financial Management 26
2.1.2 Company Secretariat and Legal Services 26
2.1.3 Human Resources Management 26
2.1.4 Internal Audit Services 26
2.1.5 Risk Management 26
2.1.6 Information and Communication Technology Management 26
PROGRAMME 3: BUSINESS DEVELOPMENT 27
3. Purpose 27
3.1 Description of the Programme 27
3.1.1 The CAV Value Proposition 27
3.1.2 Funding Options 28
3.1.3 Cluster Programmes 28
3.1.4 Stakeholder Management 29
3.1.5 Investment Management 29
3.1.6 Communications, Media and PR 29
3.1.7 Events and Conferences 30
PROGRAMME 4: INDUSTRIAL PARK DEVELOPMENT AND OPERATIONS MANAGEMENT 30
4. Purpose 30
4.1 Description of the Programme 30
4.1.1 Landside Development (Short, Medium and Long term) 30
4.1.2 Airside Development (Long Term) 30
4.1.3 Property and Facilities Management Services 30
12 QUARTERLY PERFORMANCE TARGET 2020/21 40
13 RISK MANAGEMENT AND MITIGATION
14 FINANCIAL PLAN 50
15.1. Introduction 52
15.2. CAV Budget Allocation for 2020/21 to 2022/23 52
15.3. CAV Funding Shortfall for 2020/21 financial year 53
15.4. CAV Budget Allocation per programme for 2020/21 to 2022/23 54
15.5. CAV Budget Allocation per Quarter for 2020/21 Financial Year 54
15.6. Capital Funding Projection for 2020/21–2022/23 55
56
15 IMPLEMENTATION PLAN 58
Operational Actions for 2020/21 58
4 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
TABLE OF TABLES 15
38
TABLE 1: Values of the CAV Team 48
TABLE 2: Programmes and Sub-programme 51
TABLE 3: Quarterly Target per programme and sub programme 53
TABLE 4: Risk Management and Mitigation 54
TABLE 5: CAV Current Expenses 55
TABLE 6: Expenditure per Programme 57
TABLE 7: CAV Quarterly Operational Expenses’ Projection
TABLE 8: Capital Funding Requirements
TABLE OF FIGURES 12
13
FIGURE 1: CAV Governance Structure 14
FIGURE 2: CAV Organisational Structure
FIGURE 3: The Vision, Mission and Objective Statement
TABLE OF TABLES AND FIGURES 5
GLOSSARY OF TERMS
A&D AEROSPACE AND DEFENCE (INDUSTRIES)
AFB WTKLF AIR FORCE BASE WATERKLOOF
AG AUDITOR GENERAL
ASDP AEROSPACE SECTOR DEVELOPMENT PLAN
AISI AEROSPACE INDUSTRY SUPPORT INITIATIVE
AM ADDITIVE MANUFACTURING
AMD S OUTH AFRICAN AEROSPACE, MARITIME AND DEFENCE
INDUSTRIAL ASSOCIATION
A&RC AUDIT AND RISK COMMITEE
ASP AUTOMOTIVE SUPPLIER PARK
ATC AIR TRAFFIC CONTROL
ATCC AEROSPACE TRAINING AND CERTIFICATION CENTRE
B-BBEE BROAD-BASED BLACK ECONOMIC EMPOWERMENT
BEWI BULK EARTHWORKS AND INFRASTRUCTURE
BOD BOARD OF DIRECTORS
BOT BUILD OPERATE TRANSFER
CAPEX CAPITAL EXPENDITURE
CAV CENTURION AEROSPACE VILLAGE
CEO CHIEF EXECUTIVE OFFICER
CGS COUNCIL FOR GEO-SCIENCES
COT CITY OF TSHWANE
CSIR COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH
DDG DEPUTY DIRECTOR GENERAL
DOD DEPARTMENT OF DEFENCE
DPE DEPARTMENT OF PUBLIC ENTERPRISES
DPW DEPARTMENT OF PUBLIC WORKS
DST DEPARTMENT OF SCIENCE AND TECHNOLOGY
the dti DEPARTMENT OF TRADE AND INDUSTRY
EIA ENVIRONMENTAL IMPACT ASSESSMENT
ERP ENTERPRISE RESOURCE PLANNING
GDED GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT
GDP GROSS DOMESTIC PRODUCT
GGDA GAUTENG GROWTH DEVELOPMENT AGENCY
GPG GAUTENG PROVINCIAL GOVERNMENT
HR HUMAN RESOURCES
6 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
HR&REMCO HUMAN RESOURCES AND REMUNERATION COMMITTEE
IATA INTERNATIONAL AIR TRANSPORT ASSOCIATION
ICT INFORMATION AND COMMUNICATION TECHNOLOGY
IDC INDUSTRIAL DEVELOPMENT CORPORATION
IDD INDUSTRIAL DEVELOPMENT DIVISION
IDZ INDUSTRIAL DEVELOPMENT ZONE
IPAP INDUSTRIAL POLICY ACTION PLAN
JASC JOINT AEROSPACE STEERING COMMITTEE
MOA MEMORANDUM OF AGREEMENT
MOI MEMORANDUM OF INCORPORATION
MOU MEMORANDUM OF UNDERSTANDING
MRO MAINTENANCE, REPAIR AND OVERHAUL
MTEF MEDIUM TERM EXPENDITURE FRAMEWORK
NEF NATIONAL EMPOWERMENT FUND
NIPF NATIONAL INDUSTRY POLICY FRAMEWORK
NPC NOT FOR PROFIT COMPANY
OEM ORIGINAL EQUIPMENT MANUFACTURER
OPEX OPERATIONAL EXPENDITURE
PFMA PUBLIC FINANCIAL MANAGEMENT ACT
PPP PUBLIC PRIVATE PARTNERSHIP
PPPFA PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT
Q QUARTER
R&D RESEARCH AND DEVELOPMENT
ROI RETURN ON INVESTMENT
SAAF SOUTH AFRICAN AIR FORCE
SANDF SOUTH AFRICAN NATIONAL DEFENCE FORCE
SADI SOUTH AFRICAN DEFENCE INDUSTRY
SAMI SAUDI ARIABIA MILITARY INDUSTRY
SDP SECTOR DEVELOPMENT PLAN
SEDA SMALL ENTERPRISE DEVELOPMENT AGENCY
SEZ SPECIAL ECONOMIC ZONE
SMME SMALL MICRO AND MEDIUM ENTERPRISE
SPD SUPPLIER PARK DEVELOPMENT
SPV SPECIAL PURPOSE VEHICLE
TEDA TSHWANE ECONOMIC DEVELOPMENT AGENCY
TIA TRAFFIC IMPACT ASSESSMENT
UAV UNMANNED AERIAL VEHICLES
USD UNITED STATES DOLLAR
VR VIRTUAL REALITY
WTTC WORLD TRAVEL & TOURISM COUNCIL
GLOSSARY OF TERMS 7
1 OFFICIAL SIGN OFF
It is hereby certified that this Annual Performance Plan:
• was developed by the management of the CAV under the guidance of the Board of Directors;
• was prepared in line with the current strategic plan of CAV; and
• accurately reflects the performance targets which the CAV endeavour to achieve given the
resources made available in the budget for 2020/21 to 2022/23
ZIRK JANSEN
CHIEF EXECUTIVE OFFICER (ACTING)
SIMPHIWE HAMILTON
CHAIRPERSON OF THE BOARD
THANDI PHELE
DDG (ACTING), IG & D (the dti)
8 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
2 THE MANDATE OF THE CAV
Our Mandate
The Centurion Aerospace Village (CAV) is the mandated implementation arm of the Department
of Trade and Industry (the dti) in developing a sustainable Aerospace, Defence and Advanced
Manufacturing Industrial Park to attract small and new entrants to contribute to making South Africa
a Global Player in the Aerospace, Defence and Advanced Manufacturing Industry value chains.
THE MANDATE OF THE CAV 9
3 FOREWORD
By the Deputy Director-General (DDG:IG & D)
of the dti
THANDI PHELE I am delighted to write the foreword for this edition of Centurion Aerospace
Village (CAV) Annual Performance Plan. the dti recognised the need
DEPUTY DIRECTOR- for an aerospace and defence industrial park to be a key component
GENERAL (ACTING) in the industrialization plan, hence the birth of the CAV. The CAV is
intended to offer a complete array of industrial real estate solutions to
INDUSTRIAL GROWTH hand-picked selection of national and global industrial aerospace and
AND DEVELOPMENT defence leaders.
DEPARTMENT OF TRADE I am proud to state that the CAV Value Proposition approach has already
AND INDUSTRY yielded some results where at least pre-lease agreements and letters of
intents were signed. This renewed interest is as a result of increased
marketing activities combined with bulk infrastructure construction
activities taking place on the Landside Development site. The CAV will
welcome several advanced precision companies, as new tenants, in its
soon to be finished Aerospace Training and Certification Centre building.
the dti will continue to devote increased resource and policy support in
pursuit of the huge ambitions we all have for the CAV. In the coming
year, focus will be given to the incorporation of the CAV into the Gauteng
Growth Development Agency. This process is critical to support the CAV to
secure Capital Funding to service the growing needs of interested tenants.
It is my expectation that the experienced CAV board and management
team will continue to make 2020/21 another year of great achievements.
THANDI PHELE
10 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
4 OVERVIEW
By the Accounting Authority
As an initiative of the dti, the CAV has been established to conceptualize, SIMPHIWE
develop and operationalize SA first and only Aerospace and Defence HAMILTON
Industrial Park with the primary aim of facilitating the optimal integrating
South African sub-tier suppliers into the global supply chains by bringing CHAIRPERSON
them in proximity to one another and close to Tier 1 suppliers. OF THE BOARD
Conceptualized as a strategic high-tech and advanced manufacturing
as well as MRO (manufacturing, repair & overhaul) industrial park, the
CAV will develop the landside over the short, medium and longer-term
and I am happy to say that the BEWI for internal utility services and
infrastructure, as well as the external core bulk services on the landside
developments that is envisaged to be completed in the 2020/21 financial
year. We continue to work with the dti, the DPW and the DOD to firm
up the requirements for the activation of the airside access as a second
phase of the project for the benefit of those tenants who require such
airside access as part of their offering.
The aspirations of South Africans for a better life rest on the effectiveness
of our collective efforts to facilitate enterprise development and
encourage the private sector to create jobs. The CAV intends to act as a
catalyst to aerospace and defence industrial development by creating an
environment that enables equitable transformation, trade and investment.
I would like to thank the dti, CoT, DPW, GGDA and other stakeholders
for their invaluable cooperation and support. In order to realise our
potential, we recognise the importance of a highly performing and
motivated staff and over the next decade, we intent to put people at the
centre of our strategy.
SIMPHIWE HAMILTON
OVERVIEW BY THE ACCOUNTING AUTHORITY 11
5 GOVERNANCE STRUCTURE
The CAV Board is accountable for the strategic direction as well as for the governance and oversight
of the CAV project whilst the CAV Management is responsible for the day-to-day operations of the
entity. The CAV reports to the Executive Authority, the Minister of the dti, through the Industrial
Development Division (IDD) division.
The CAV currently has two governance committees, the Audit and Risk Management Committee
and the Human Resources and Remuneration Committee. These established committees advise
the Accounting Authority, the Board, on matters assigned to them as per their respective Terms of
References. The Accounting Authority functions by way of a formal Board Charter.
Due to the size of the CAV as an entity the responsibilities of the Social and Ethics committee
are incorporated in the Audit & Risk Committee and those of the Nominations Committee are
incorporated in the Human Resources & Remuneration Committee.
The following structure represents the governance structure of the CAV:
MINISTER: THE dti EXECUTIVE
AUTHORITY
BOARD OF DIRECTORS ACCOUNTING
AUTHORITY
GOVERNANCE
Audit & Human Resources GOVERNANCE
Risk Committee & Remuneration COMMITTEE
Committee
*A&RC also includes Social, Ethics & Governance Responsibilities
**HR&Remco also includes Nominations Responsibilities
FIGURE 1: CAV GOVERNANCE STRUCTURE
12 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
6 ORGANISATION STRUCTURE
The CAV organisation structure is shown below:
BOARD OF DIRECTORS
*Audit and Risk Commitee **HR & Remuneration Commitee
CHIEF EXECUTIVE OFFICER
Executive Assistant HR Officer
Receptionist
Monitoring & Cleaner
Evaluation Officer Interns
Legal Counsel
Company Secretary
FINANCIAL BUSINESS OPERATIONS
MANAGER DEVELOPEMENT MANAGER
Financial Assistant MANAGER Facilities Officer
Procurement Officer Dev & Cons Officer
Investment Specialist Technology Officer
Financial Clerk Project Administrator
General Administrator Investment Analyst
Marketing &
Com Officer
LEGEND: CAV ORGANISATIONAL STRUCTURE
Board of Directors Managers Filled Positions
Interns
Sub Committees Vacant Positions
Executive Management
*A&RC also includes Social, Ethics & Governance Responsibilities
**HR&Remco also includes Nominations Responsibilities
FIGURE 2: CAV ORGANISATIONAL STRUCTURE
ORGANISATION STRUCTURE 13
7 STRATEGIC OVERVIEW
7.1 Linking the CAVVision, Mission and Objectives
The CAV’s Vision, Mission and Objective statements are displayed here:
VISION
Is to develop a world-class industrial park promoting competitiveness
and sustainability.
MISSION
To support the growth of a sustainable aerospace, defence and advanced
manufacturing industry and to contribute to making South Africa a global
player in the aerospace, defence and advanced manufacturing industry
value chains
OBJECTIVE
To stimulate economic development through the establishment and
operation of an Industrial park
FIGURE 3: THE VISION, MISSION AND OBJECTIVE STATEMENT
7.2 Vision Statement
To develop a world-class industrial park promoting competitiveness and sustainability of the Aerospace,
Defence and Advanced Manufacturing Sectors.
7.3 Mission Statement
To support the growth of a sustainable aerospace, defence and advanced manufacturing industry
and to contribute to making South Africa a global player in the aerospace, defence and advanced
manufacturing industry value chains.
7.4 Strategic Objectives
The strategic objectives of the CAV, in order to stimulate economic development through the
establishment and operation of an Industrial park, are as follows:
• To become a hi-tech advanced manufacturing industrial park in support of the Aerospace,
Defence and advanced manufacturing industry; and
• To provide facilities, services and a technical environment to complement and promote the
common interests of the Aerospace, Defence and Advanced Manufacturing industries in
South Africa.
14 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
7.5 OurValues
The Values of the CAV team are as follows:
RESPECT We respect one another’s views, opinions, cultures and
work ethics.
TEAMWORK Dedicated teamwork is core to our culture.
OPEN AND HONEST We uphold open, candid and honest two-way
COMMUNICATION communication that fosters relationship building between
the CAV employees.
CLIENT FOCUSED Seek to add value to our partners and clients through
innovation, synergies and partnerships.
WORK WITH We are passionate about the aerospace, defence and
PURPOSE advanced manufacturing industries and consciously seek
to improve and develop our sector to ensure its continued
success.
BELIEVE IN OUR Strive for excellence and international best practice in all
ABILITIES aspects of our business.
TABLE 1: VALUES OF THE CAV TEAM
7.6 Company Profile
7.6.1 The Company
The CAV is an initiative of the Department of Trade and Industry (the dti). It was incorporated as a
company not for gain in 2006 in terms of section 21 of the Companies Act, Act 61 of 1973, which
now is a Non-Profit Company in terms of the new Companies Act, Act 71 of 2008.
This Industrial Park is aimed at strengthening the supply chain by bringing aerospace and defence
industry suppliers in proximity to one another and to co-locate them next to tier 1 supplier companies
and anchor partners.
The CAV is being developed on State-owned land provided by the Department of Public Works
(DPW) for which a Head Lease Agreement was signed between the dti and DPW with agreed terms
and conditions.
STRATEGIC OVERVIEW 15
The CAV was designed to unlock the growth potential of the aerospace and defence sectors in order
to contribute to the above objectives in a meaningful way, amongst others, the following:
• The local (national) aerospace and defence Industry will benefit from the development of the
CAV that will contribute to the industry remaining internationally competitive.
• Local Original Equipment Manufacturer (OEM) representatives: OEM suppliers of components,
parts and tools, as well as service providers will likewise benefit from synergistic and economy
of balanced applications; and
• The Small, Medium and Micro-sized Enterprise (SMME) sector will likewise benefit from a
numerous opportunity that will be identified for further development.
The project consists of two areas mainly: Landside Development and Airside Development.
• Landside Development
CAV Landside is envisaged to house industry sub-tier suppliers who do not require runway
access that specifically conduct design and manufacturing operations; and
• Airside Development
CAV Airside is envisaged to house industry sub-tier suppliers who require runway access
that specifically do upgrades, aircraft maintenance, repair and overhaul (MRO) and aircraft
refurbishments.
Both Landside and Airside developments are planned to be implemented in phases. Both developments
are to be made possible by the application of sourced funding that would be supportive of the
industrial policy of the dti, and will accordingly be aligned with the following key elements thereof:
• Plan, develop and operate the Landside Development Phase of the CAV as an Industrial
Park: The CAV strives to balance the pursuit and achievement of business objectives and
compliance with the principles of good governance.
• Unlock the Airside Development Phase to be developed in collaboration with the South
African Air Force (SAAF) and the Air Force Base Waterkloof (AFB Wtklf).
• Ensure transformation through the participation and development of B-BBEE entities
• Skills Development and Training is part of the CAV’s support programmes.
• Focused on the encouragement of new small and medium (SMME) sized entrants; and
• Directed towards innovation, technology development and support for associated
infrastructure development.
7.6.2 Location
CAV is located along the eastern boundary of the Waterkloof Air force Base (Farm Waterkloof
378 JR: portion 11, 97,98,34,29 and the remainder of portion 28) in Centurion.
16 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
8 SITUATIONAL ANALYSIS
8.1 Contextual Environment
8.1.1 The Aerospace and Defence Industry: Global Context
Hamburg Aviation. Global and African Aerospace and Defence (A&D) Industry trends1 are of
significant importance for the South African aerospace and defence industry and will influence the
strategic outlook for CAV as it opens up new opportunities to provide support to the South African
Aerospace and Defence sectors.
The key findings of the report reveal that:
• The commercial aircraft order backlog is at its peak of more than 14,000 with approximately
38,000 aircraft expected to be produced globally over the next 20 years. Manufacturers are
ramping up production to accommodate growing aircraft demand and as OEMs increase
production rates, suppliers are at risk to fail in ramping up production.
• Geopolitical tensions are continuing to intensify and demand for military equipment is on
the uptick, driving defence spending across the globe.
• Changes in international trade agreements are likely to disrupt the global supply chains
and increase costs. OEMs are seeking new solutions to develop international best-of-breed
suppliers. Many of the latest breakthroughs and the most adaptable advances in new
technologies are driven by and available not from A&D companies, but from the innovation
clusters that are expanding their influence in virtually every large global seat of power.
• Mergers and Acquisitions (M&A) activity remains strong as pressure on suppliers to reduce
costs and increase production rates continues.
• Though A&D industry growth is primarily led by the United States, few other regions
including China, France, India, Japan, the Middle East, and the UK, will be contributing
to the industry’s performance in the near term. Africa is predicted by the International Air
Transport Association (IATA) to become one of the fastest growing aviation regions in the
next 20 years with an annual expansion rate of nearly 5%.2 Other regional A&D trends
include3: China’s defence industry spend projected to grow by 9%-10% in the future;
France intends to increase military spending by 5% per annum; India has a demand for more
than 2000 single-aisle aircraft; Japanese air traffic projected to grow sluggishly by 3,2% per
annum; Middle East air traffic projected to grow by 5,2% creating a demand for almost 3,000
new wide-body aircraft; in the United Kingdom Brexit is expected to disrupt supply chains and
the country’s aviation industry would seek new trade agreements with supplying countries.
1 https://www2.deloitte.com/global/en/pages/manufacturing/articles/global-a-and-d-outlook.html 17
2 https://www.africanaerospace.aero/african-carriers-see-fastest-growth-of-any-region-in-august-for-air-freight.html
3 Deloitte: 2019 global aerospace and defense industry outlook: Robin Lineberger; 2018
SITUATIONAL ANALYSIS
8.1.2 Aerospace and Defence Industry: African context
Over4 the recent years, opportunities in the dynamic African aviation industry is steadily rising,
thanks to the continent’s growing political stability and tourism potentials. The International Air
Transport Association (IATA) has predicted that Africa will become one of the fastest growing
aviation communities in the world over the next 20 years at a yearly increase of almost 5%.
The continent continues to strengthen its aviation industry as it is considered one of the key drivers
of Africa’s future economic development. Today, Africa accounts for around 3% of the global air
transport sector, running 731 airports and 419 airlines. Aviation, to date, supports around 6.9
million jobs and USD 80 billion in economic activities. Commercial airlines, in particular, can
capitalize and attain a significant market share in this vast market by taking advantage of the
booming leisure and business travel and tourism. In 2018, the World Travel & Tourism Council
(WTTC) declared Africa as the second-fastest growing tourism region next to Asia-Pacific.
Challenges in the African Aerospace Industry
• While5 it is evident that aviation in Africa has the potential to fuel economic growth,
several barriers exist. Weak infrastructure, high ticket prices, poor connectivity and lack of
liberalisation rank amongst the many challenges.
• Safety and security. Safety is the most pressing challenge facing the aviation industry.
• Airport infrastructure in most African countries is outdated and not built to serve the growing
volume of passengers or cargo. Airlines and airports are often managed by government
entities or regulatory bodies and foreign investment is discouraged. Modernising infrastructure
and operations requires investment and expertise, ideally from public-private partnerships.
Africa needs to open its doors for private capital investment.
• Regulation and government actions: Despite growing awareness of the role that the aviation
industry could play in the development of the continent, this industry is still not a priority of
Africa governments. Liberalisation will bring strong outcomes – new routes, more frequent
flights, better connections and lower fares. These improvements will increase the number of
passengers, which will have both direct and indirect positive effects on trade, business travel
and tourism. In turn, this has impacts for the broader economy, generating more tourism
revenues, jobs and productivity. They will enhance the GDP of African countries and uplift
the welfare of ordinary Africans. According to an IATA survey, if just 12 key African countries
opened their markets and increased connectivity, an extra 155,000 jobs and USD 1.3 billion
in annual GDP would be created in those countries. A study by InterVISTAS Consulting shows
that in South Africa, liberalisation could yield an estimated 15,000 new jobs and generate
USD 284 million contribution to national GDP’s.
In the African A&D industry, the Leonardo and Airbus are challenging the Hercules tactical airlift
supremacy in Africa and making their presence felt in North Africa. Chinese military equipment is
growing in Africa with two thirds of African countries operating some Chinese equipment. USA,
Russia and Israel as well as Europe are the other key players in the African A&D industry.
4 https://www.atqnews.com/ng/opportunities-and-challenges-in-african-aviation-industry/
5 https://oecd-development-matters.org/2018/10/29/unlocking-africas-aviation-potential/
18 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
8.1.3 Aerospace and Defence Industry: South African context
A case for South African MRO: The growing African aerospace industry raises the question on
whether the airline operators can continue to afford spending their maintenance budgets abroad while
establishing their own MRO facilities is prohibitively expensive. It is evident from the aforementioned
that Africa embodies great potential in aircraft MRO and a number of international operators are
moving in to provide in the continents needs by investing in facilities and skills development.
• Nigeria’s Aero Contractors is engaged with the Nigerian government to attract private
sector partners in a build-operate-transfer (BOT) MRO facility in Nigeria;
• Ghana is proceeding with a US$400 million MRO project in Kumasi;
• ST Engineering (Singapore) has announced contracts with national airline customers in
Ivory Coast, Senegal and Mauritania;
• Estonia-based MRO is expanding in Africa through Direct Maintenance (Dutch) with bases
in Kenya, Zambia, Zanzibar, Tanzania and Kenya; and
• Kenya MRO is supported by most west African countries for the maintenance of their
Boeing 737 and Embraer aircraft. Kenya Airways does line maintenance in a growing
number of other African airports.
Commercial Aerospace movements in South Africa:
• Solenta Aviation is moving into freight conversions with Swiss specialist IPR conversions.
Solenta is looking at establishing a freight conversion facility in Johannesburg;
• Canadian airframer, Bombardier, plans to get closer to its customers in SA by relocating is
Q Series regional support to Airways Park, close to OR Tambo International Airport;
• Lufthansa Technik (LHT) is the first foreign MRO provider to set up shop in South Africa to
support the Comair fleet. LHT has set-up bases in Johannesburg and Cape Town in 2019
with plans for further expansion to other national airports; and
• The Paramount Group is active in the South African A&D industry and is engaged with the
Saudi Arabian Military Industries (SAMI) to develop technologies and capabilities across
land, sea and air-based based platforms and systems integration.
In terms of technologies, Additive Manufacturing (AM) is seen as having great application in MRO.
This disruptive technology, also known as 3D printing, holds promise as a cost-effective way to
reproduce legacy spares, reduce inventory and manufacture parts in situ. Lufthansa Technik has
already embraced the technology and set up a facility in Hamburg to expand its MRO competence
and experience in this technology.
These trends highlight some immediate opportunities for the South African A&D
industry such as:
• The opportunity for South Africa to become a supplier country to the world A&D OEMs. The
South African A&D industry is ranked 40th in a geographic assessment of manufacturing
attractiveness by PwC6, above countries such as Turkey (41st), Saudi Arabia (45th) and
Brazil (53rd). The attractiveness of South Africa as an investment destination for A&D players
opens the opportunity to attract international OEMs and Tier 1 suppliers to CAV;
6 https://www.pwc.com/us/en/industrial-products/publications/assets/pwc-aerospace-manufacturing-attractiveness-rankings-2019.pdf
SITUATIONAL ANALYSIS 19
• The increased demand for air traffic in Africa increases the demand for MRO and maintenance
of aircraft at a suitable destination on the continent. South Africa is ideally positioned with its
good infrastructure and skills base to provide such a service to a number of African airlines.
The strategic plan of CAV is therefore also focussed on the establishment of supporting
infrastructure (runway access) to MRO companies wishing to establish in South Africa;
• The increased use of digital technologies, such as blockchain and Additive Manufacturing,
artificial intelligence, virtual reality and other visualisation technologies creates an opportunity
for CAV to reach out to high technology start-ups and create an enabling environment for
these companies to engage with the OEM suppliers and MRO companies in the local and
international A&D industries; and
• The introduction of new technologies in manufacturing (e.g. AM) and digitalisation (e.g. VR
and autonomous platforms, cyber security etc.) could be an opportunity for CAV to establish
the high tech industrial park to support the industry by providing support for high bandwidth
communication using broadband fibre optic network, incubation centres for high technology
start-ups and conference and training facilities geared to support high tech entrepreneurs
and engineers, IT specialists and material scientists.
Challenges of the South African Aerospace and Defence Industry
The previously mentioned Aerospace Industry Sector Development Plan (the AISDP) is characterised
by specific challenges that will be addressed in the formulation of a future strategy for the CAV. The
development of CAV Landside and Airside facilities and services will allow CAV to capitalise on
some challenges that are mentioned below:
• The SA market for aerospace services is too limited to offer marketable justification
for the existence of an SA industry, and the industry must thus position itself for global
participation. The most accessible clients, and those that are best accessed through the
Industrial Participation strategy of the dti, are the major aerospace OEMs;
• The OEMs are all attempting to reduce costs and to simplify their supply chain logistics through
outsourcing functions that are niche and do not have an economic justification to retain them
to the SMMEs. The SMME-type companies could successfully establish direct supply to these
OEMs by physical positioning themselves closer to the OEMs and share supply chain logistics,
thus rationalising the establishment of an industrial park such as the CAV;
• The aerospace industry is characterised by the necessity for most stringent regulatory
controls, mainly as a consequence of safety standards. Global supply requires of suppliers
major investment in quality and process approvals and specialist training. The costs of such
approvals sometimes act as a barrier for smaller companies operating in isolation;
• The aerospace industry is exceedingly dependent upon specialized competencies. These
competencies are strongly dependent upon track record and established experience base.
It is not realistic to base a strategy upon new entrants to immediately acquire the core
competency necessary for participation in the higher tiers of supply. Core competency is
historically presently vested in a few existing companies, not all of which can presently be
considered B-BBEE-compliant, hence the need to support and create such SMMEs and B-BBEE
compliant companies to achieve broadening economic participation and equity in the sector;
• The industry is competing in the international arena and for it to be able to make inroads
in this global industry, the local industry requires an Industrial Park Development of scale
that should be able to allow a supplier competing in the local industry to market itself as an
international role player;
20 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
• Further to the above challenges, the limited government stewardship in the South African
industry is currently perceived to be the biggest issue by aerospace industry players,
followed by sporadic demand. Accordingly, government should strengthen its participation in
supporting the aerospace industry by various means, including leveraging on Public Procurement
and other methods of funding. In this regard, the Joint Aerospace Steering Committee (JASC)
has been established to coordinate the aerospace industry for collective gain;
• The aerospace industry also requires a significant investment in terms of machinery plant
and equipment. In order for South Africa to be able to deepen its manufacturing capabilities
and move into knowledge-intensive value chain, a tremendous amount of industry upgrading
will be necessary. The various governmental incentive schemes such as the Industrial Policy
Action Plan (IPAP), the Black Industrialist Program, Invest SA, the Aerospace Industry Support
Initiative (AISI) as well as, financing opportunities offered by agencies such as Industrial
Development Corporation (IDC) and National Empowerment Fund (NEF) at national,
provincial and local government levels are very handy in strengthening and upgrading the
technological and industrial manufacturing capabilities;
• Slow progress within the made toward transformation. The sector is not representative of the
South African population and the new B-BBEE codes require a more aggressive approach
to Broad-Based Black Economic Empowerment.
• High barriers to entry for new entrants into the market due to various reasons such as
access to funding, high complexity vs. low volume-based sector, sector in South Africa is
relatively small, etc.; and
• Finally, there is an insufficient pipeline of incubated sub-tier supplier companies and
skilled personnel to absorb current knowledge and experience, and an insufficient intra-
governmental co-ordination for industry-specific and structured support.
The limited availability of funding for the development of infrastructure, bulk services and facilities
at CAV needs to be evaluated and challenged for the CAV Landside and Airside Developments to
succeed in contributing to the selected sectors of the economy meeting the mentioned challenges.
8.1.4 The Aerospace and Defence Industry: Clusters and Industrial Parks
Cluster type developments in South Africa include the development of Industrial Development Zones
(IDZs), e.g. Coega and East London IDZ as established IDZs, as well as the new generation IDZs at
Saldanha in the Western Cape, Dube Trade Port in Kwa-Zulu Natal (KZN) and the Maluti-A-Phofung
(MAP) IDZ in the Eastern Free State.The IDZs are expected to migrate to Special Economic Zones
(SEZs). The Aerotropolis (Aerospace + Metropolis) type developments that are being undertaken
at Ekurhuleni (around the OR Tambo Airport) and the Dube Trade Port seek to leverage off the
combined and synergistic economic and demographic developments in a particular area.
The development of industrial parks across a variety of industries and areas have taken place to attract
investors, tenants and users of facilities and to leverage off local and foreign investment, availability
of shared services and phased development of infrastructure and utility services. Benchmarked
industrial park type developments are the Automotive Supplier Park in Rosslyn (Northern part of the
City of Tshwane’s geographical Area) and the Nelson Mandela Bay Logistics Park at Uitenhage
(near Port Elizabeth in the Eastern Cape).
SITUATIONAL ANALYSIS 21
A cursory glance at experiences both locally and internationally indicate that there is more scope
of commercial sustainability of cluster and industrial park developments if projects of this nature
are operated outside of government administration structures albeit with government initiation and
even funding of the process, at least initially with infrastructure and services’ development funding.
The following examples of global industrial parks of cluster concept developments with comparable
mandates and similar goals were identified as follow:
• Hi-Tech Industrial Parks with a similar focus on the Aerospace, Defence and Advanced
Manufacturing Sectors:
|| Aeropolis, Aerospace Technology Park of Andalusia in the province of Seville,
in the South of Spain,
|| Aerospace cluster in Chihauhau, Mexico,
|| Aerospace Valley in Toulouse, France and
|| Midparc Casablanca Free Zone in Morocco.
• Hi-Tech Industrial Parks where a close working relationship exists between a private
development and the Department of Defence or Country’s Airforce7:
|| Northolt Airforce Base, and
|| Edward’s Airforce Base.
• Aerospace Cluster Concepts as a Value-Added service to the Aerospace, Defence
and Advanced Manufacturing Sectors8:
|| PIEMONTE AGENCY,
|| LAZIO CONNECT,
|| Moravian Aircraft Cluster, and
|| Hamburg Aviation.
7 Both these Industrial Parks were developed by the military with a strong focus on supporting the strengthening of military supply chains –
both are good supporting developments in support of the CAV’s future Airside Development Phase.
8 These clusters are often structures in support of infrastructure developments and operate autonomously as in the case of Piemonte
and Lazio.
22 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
9 LEGISLATIVE MANDATE
9.1 Institutional Arrangements
CAV is a Non-Profit Company in terms of the new Companies Act, Act 71 of 2008. It applies
the governance principles encapsulated in the King Report on Corporate Governance in South
Africa, (“King IV”) and continues to further entrench the recommended practices in its governance
structures, systems, processes and procedures.
The CAV strives to balance the pursuit and achievement of business objectives and compliance
with the principles of good governance. In determining good corporate governance and business
practices, the Board is guided by:
• Companies Act, 71 of 2008 and supporting Regulations.
• The Public Finance Management Act, No. 1 of 1999 (PFMA) and supporting Treasury
Regulations; and
• King IV report on corporate governance.
9.2 CAV’s incorporation into the Gauteng Provincial Government
The Centurion Aerospace Village (CAV) has been unsuccessful in its attempts to access funding due
to its current form as a Non-Profit Company under the Department of Trade and Industry (the dti).
For the CAV to fast track development a request was by the Minister of the dti to the Premier of
Gauteng requesting that consideration be given to the transfer of the CAV from the dti to the
Gauteng Provincial Government (GPG).
The intention of incorporation of the CAV as a Schedule 3C entity under the Gauteng Provincial
Government is to support the entity to secure Capital Funding as it will then be able to tap into the
suite of incentives that is available under the dti.
The incorporation of the CAV into the GPG structures require a Due Diligence exercise be undertaken
to define a roadmap that addresses the following processes:
• Technical processes,
• Financial requirements,
• Legal processes, and
• Institutional requirements.
The most appropriate vehicle that was identified is the Gauteng Growth Development Agency
(GGDA) as a GPG structure under the Department of Economic Development (DED). The due
diligence process has defined the roadmap that will have to be followed to implement the
incorporation. Incorporation is expected to take place during 2020.
LEGISLATIVE MANDATE 23
10 OVERVIEW OF PAST AND FUTURE
DEVELOPMENT ACTIONS
10.1 Infrastructure, Services’ and Facility Development
CAV’s Management has formed close working relationships with the City of Tshwane’s (CoT) Utility
Services Department, CoT Electricity Services Department, CoT Roads & Storm-water Department,
CoT Planning Department, CoT Development Compliance and Legislation Department, CoT Bridge
Management Department, CoT Trade & and Investment Department and the office of the MMC for
Economic Development to expediently execute required township establishment processes.
During the last financial year, CoT issued the following to CAV
• Section 101 (1) certificate of township planning and township ordinance 15 of 1986
• (the ordinance): Proposed Township: Pierre van Ryneveld: Extension 33; and
• Section 7 (6) approval for 6-months, renewable occupation of the ATCC Building prior
to township proclamation.
The following facilities are planned for construction in the next 3-years subject to the availability of
funding as part of industrial park development:
• Gatehouse(s).
• Three (3) SMME Mini-Factory Buildings.
• Skills Development and Training Centre.
• Central Hub & Multi-Tenant Office Block.
• Build Operating Transfer (BoT) Tenant Platform.
• Incubation Centre.
• Two (2) Tenant Buildings.
10.2 Strategic Partnership and interested tenants
A significant amount of tenant interest was generated in the CAV over the past two (2) years.
This renewed interest is as a direct result of increased marketing and business development
activities combined with bulk earth works and infrastructure activities taking place on the Landside
Development site. Several Letters-of-Intent (LOI’s) were signed with industry partners interested to
explore the CAV as a potential investment destination.
During the coming year focus will be given to initiate the process for the incorporation of the CAV
into the GGDA. This process is critical to support the CAV to secure Capital Funding to service the
growing needs of interested tenants.
24 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
11 PROGRAMMES PLANS
In order to achieve the CAV’s objectives, the following programmes are identified below:
PROGRAMME 1: ADMINISTRATION
PURPOSE
Provide the organisation with strategic direction, leadership and management, as well as overall
administration and performance oversight.
The purpose of this programme is to ensure that effective leadership and administrative support
continues to refine the organisational strategy and structure in compliance with the appropriate
legislation and international best practice.
This programme will cover the following:
• Strategy planning, Monitoring and Evaluation.
1.1 Description of the Functional Areas
1.1.1 Strategy Planning, Monitoring and Evaluation
The Board of Directors of CAV, as the Accounting Authority, is responsible for providing strategic
direction to CAV, in keeping with the Memorandum of Incorporation (MoI), Memorandum
of Agreement (MoA) concluded between the dti and CAV, and all other applicable laws and
regulations governing the organisation. Through its Chief Executive Officer (CEO), as accounting
officer, CAV’s management is responsible for the day-to-day implementation and control of the
organisation’s strategic plan.
PROGRAMME 2: CORPORATE SUPPORT SERVICES 25
PURPOSE
The purpose of this programme is to oversee the provision of good governance, financial
management, legal and company secretariat and human resources management function.
This programme will cover the following:
• Financial Management.
• Company Secretariat & Legal Services.
• Human Resources Management.
• Internal Audit Services.
• Risk Management.
• Information & Communication Technology Management.
PROGRAMMES PLANS
2.1 Description of the Functional Areas
2.1.1 Financial Management
The financial management will continue to focus on ensuring compliance with all relevant financial
standards and regulations, as well as overseeing the supply chain management function. It will also
focus on the financial planning, capital budgeting, financial reporting, treasury & working capital
management.
2.1.2 Company Secretariat and Legal Services
Legal services provide legal support to CAV on a regular basis on contractual, litigation, operational
and managerial legal matters. Legal service also adopts a proactive approach by ensuring that the
legal implications of proposed decisions are examined in order to mitigate any future risks.
The Company secretariat function, as the overseer of corporate governance, is responsible for
assisting the Board of Directors to ensure adherence to sound corporate governance principles.
This function continues to provide guidance to the Board on governing legislation, regulations and
policies that affect CAV, as well as providing secretariat services to the Board and its subcommittees.
2.1.3 Human Resources Management
Human Resources Management is responsible for ensuring that CAV has the human resources
capacity to deliver on its mandate. Its activities will focus on staffing, development, remuneration,
health and safety and talent management.
2.1.4 Internal Audit Services
Internal audit is an independent, objective assurance and consulting activity designed to add
value and improve the organisation’s operations. It helps the organisation accomplish its objectives
by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.
The primary objectives of the internal audit function is to provide a comprehensive service to
ensure adequate measures and procedures are in place for sound economic, effective and efficient
management as required by the, PFMA and Treasury Regulations, International Standards for the
Professional Practice of Internal Auditing and King IV.
2.1.5 Risk Management
The Company has adopted a continuous, systematic Enterprise Risk Management Process, which aims
to ensure that material risks are identified, evaluated and addressed. The risk management policy and
strategy set out the responsibilities and duties of the Board, Management and Staff in the identification,
monitoring and mitigation of risks affecting the CAV and having the potential to affect the future roll
out of the CAV. The Board set the risk appetite of the Company, which lead to the development of key
risk indicators, which are monitored regularly to assess the Company’s risk exposure.
2.1.6 Information and Communication Technology Management
The ICT sub-programme is responsible for enabling CAV’s operations by aligning the ICT goals with
the organisation’s strategic objectives through the identification of appropriate technologies, as well
as by designing, developing, implementing and maintaining the ICT infrastructure. The tasks of the
sub-programme include the provision of reliable ICT infrastructure through the on-going refinement
of support services and delivering business value in compliance with legislation and best practices.
26 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
During this three-year period, the ICT Programme will focus on ICT strategy, design Implement and
configuration of server client network datacentre to house the CAV critical IT infrastructure and
communication systems ; core network appliances inclusive of network patch panels, core network
and distribution switches, internal and external network routers, servers for domain controllers,
disaster recovery plan for business continuity for on-site and off-site, Enterprise application and
enterprise antivirus and firewall for network infrastructure security, Enterprise storage and back-up,
migration and/or implementation of a new integrated Enterprise resource planning (ERP) system,
migration of exchange mail service, intranet and internet services to cloud hosting platform.
PROGRAMME 3: BUSINESS DEVELOPMENT
PURPOSE
The purpose is to provide the organisation with business development management that is focused
on the sustainability of the CAV as well as marketing and communication activities that are focused
on building a best in class brand of the CAV in the marketplace.
The programme will cover the following:
• CAV Value Proposition.
• Alternative Funding Options.
• Cluster Programmes.
• Stakeholder Management.
• Investment Management including Tenant Acquisition and Retention.
• Marketing Management including Communications, Public relations, Events and Conferences.
3.1 Description of the Programme
3.1.1 The CAV Value Proposition
The CAV Value Proposition captures a basket of services offered to potential investors and/or
tenants to consider when developing an investment business case to present to decision makers and
funders. These services can be broken down into various categories of services aimed at providing
a strong business case to potential investors and/or tenants.
Whilst the investment decision of a domestic investor might be slightly biased towards a specific
region identified as an investment destination of choice, the decision-making process for a Multi-
National Organisation is vastly different. Multi-national organisations interested in either investing
in infrastructure or manufacturing or service provision, not only compare different Industrial Parks
within a specific region of a country, they also compare Industrial Parks in other regions of the
country as well as other countries (global offerings) before defining their decision where (global
location) to invest.
PROGRAMMES PLANS 27
These investors and/or tenants considers various factors that ranges from:
• The macro economic environment of the country including the economic stability of the
country, value of the Rand, exchange rates, import and export duties, taxes, etc.
• The political stability of the country.
• The Industrial Park’s ability and readiness to deliver facilities in a short space of time.
• The strategic location of the Industrial Park with regards to access to supply routes.
• and rebates on offer through national and provincial government Incentives or local municipalities.
• Shared services on offer that will enhance their operations.
• Any other support initiatives that positively impact on their cost of doing business.
The CAV process will follow a needs assessment, followed by soliciting a Letter of Intent, Non-
Disclosure Agreements, negotiations that will follow to craft Pre-lease and Lease Agreements and
lastly Service Level Agreements for the provisioning of shared services. Both Domestic and Foreign
Direct Investment will be targeted.
3.1.2 Funding Options
Currently two funding options exists for interested tenants and these options are described below:
• BOT – Build-Operate-Transfer Option: This option will allow an interested tenant to fund
the top structure for their operations themselves. On this model a longer-term land lease
agreement will be affected and all levy fees including a park management levy fee will be
applied. After the lease expiration date, the property will be transferred to the CAV (landlord)
and a normal lease agreement for the facilities will then be applicable. This option will allow
the tenant the flexibility to reap the benefit from a longer-term land lease agreement.
• BTL – Build-To-Lease Option: This option will allow the CAV to fund the top structure and recuperate
the investment through a monthly rental price/m². The lease duration is typically between 10–12
months and normal levy fees will apply. There will not be a management levy fee.
3.1.3 Cluster Programmes
The CAV is committed to support the continuous development of the broader aerospace, defence
and advanced manufacturing sector. To this end various cluster programmes will be conceptualised
and developed to be established in the CAV. The idea is to allow the market to own and operate
these facilities and for the CAV to keep focused on our core strength namely landlord services. The
cluster programmes will include:
• Incubation Centre – Focused on the following services: 1) The development of new black
owned businesses to enter the aerospace and defence markets, 2) To offer Research and
Development equipment and services to CAV tenants interested in developing new service
offerings and 3) To incubate new concepts that stems from the Tshwane based Universities
from concept generation through to commercialisation.
• Skills Development and Training Centre – To develop a skills development and training centre
to focus on technical and vocational training services to both the sector and the CAV tenants.
• Central Shared Logistics Centre – For the provision of logistics services such as contract logistics
including warehousing, freight consolidation and forwarding services as well as a milk-run
service inside the park for collection and delivery of raw material and finished goods.
• Shared SMM facility (mini factory) – Based on a flexible lease model where SMME share
common infrastructure such as warehousing space, central reception desk, shared office
space, shared boardroom facilities, shared ablution facilities as well as shared services. The
model will allow for flexibility in the space rented from the CAV.
28 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
3.1.4 Stakeholder Management
The purpose of this programme is to ensure institutional arrangements provides for all of the
strategic stakeholders to engage, interact and inform the strategic direction of the CAV and to play
a meaningful role in respect of the provision of equity, support or the attraction of the requisite
investment. Stakeholders can be classified as Key Accounts ranging from our shareholder, strategic
partners, tenants, service providers through to CAV internal accounts.
3.1.5 Investment Management
Investment Management for an Industrial Park Development such as CAV is of the utmost importance
to ensure the long-term success and sustainability of the development. In order to achieve long term
sustainability, the CAV Industrial Park Development is dependent on Capital Investment required
and investment from Tenants taking up facilities and shared services.
All investment management activities such as:
• Investment Promotion – Investment promotion is linked to international and national
promotion activities that promote the CAV as an investment destination for consideration.
• Investment Attraction – In order to successfully attract an investor into the Park consideration
must be given to investor and/or tenant requirements and challenges. These requirements
are addressed by focusing attention on the investment support offered by all spheres of
government (incentive schemes, one-stop-shop offerings, etc.) and to offer a competitive
advantage to an investor and/or tenant through the CAV Value Proposition.
• Investment Facilitation – Entails all the activities from the first (1st) point of contact and
discussions through to all four decision gates and stages to formulating contractual agreements
and ultimately signing of the final lease agreement.
• Investment Retention and Aftercare – Investment retention and aftercare is as important
to the development as closing the deal and signing up investments or tenants. A happy
tenant is a long-term tenant. Our approach will be to forge partnerships rather than having
a landlord/tenant relationship. It is important that tenants remain cost competitive and the
way that the CAV can influence this is to continuously look at how they can reduce the cost
of doing business for its tenants.
3.1.6 Communications, Media and PR
Media and Public Relations plays a critical and important role to ensure that the correct messages
are communicated to various stakeholders within CAV’s target market. It is vital that the CAV’s brand
equity and image is improved from the negative publicity in the past to a positive image for the
future. The CAV will focus on using media platforms and partners to our advantage to position and
promote the CAV to foreign and domestic direct investors.
It is imperative that the strategic objectives of the Marketing Department are executed diligently to:
• Support Business Development and growth of the CAV through focused Media and PR Activities.
• Promote the CAV as a strategic location and investment destination of choice to investors/
tenants in the Aerospace, Defence and Advanced Manufacturing Sectors through targeted
Communication Activities.
• Instil excellence in business and resource management of the CAV.
PROGRAMMES PLANS 29
3.1.7 Events and Conferences
Conferences and Events are used as important tools to ensure that the CAV’s brand receives as
much exposure as possible. Conference and Event Management as part of the Marketing and
Communications Strategy will assist in guiding the Marketing Department activities to ensure that
the CAV brand gains much needed exposure in the marketplace that will restore confidence.
These activities are aligned to the objectives of the Conference and Event Management Strategy
which include:
• Support Business Development and growth of the CAV through participation at targeted
Conferences and Events;
• Promote the CAV as a strategic location and investment destination of choice to investors/
tenants in the Aerospace, Defence and Advanced Manufacturing Sectors through targeted
Communication Activities; and
• Instil excellence in business and resource management of the CAV.
PROGRAMME 4: INDUSTRIAL PARK DEVELOPMENTAND
OPERATIONS MANAGEMENT
PURPOSE
The purpose is to provide the organisation with industrial park development, construction, operations’
management and performance oversight:
The sub-programmes that fall under this programme include the following:
• Landside Development (short, medium and longer term); and
• Airside Development (longer term)
4.1 Description of the Programme
4.1.1 Landside Development (Short, Medium and Long term)
This programme covers the Bulk Earthwork and Infrastructure, Bulk Utility services and Infrastructure
work, township establishment process as well as development and construction of buildings on CAV
Landside.
4.1.2 Airside Development (Long Term)
This programme covers Bulk Earthwork and Infrastructure, Bulk Utility services and Infrastructure
work, township establishment process, runway development as well as development and construction
of buildings on CAV Airside.
4.1.3 Property and Facilities Management Services
This programme covers the operations and maintenance of the existing infrastructure.
30 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
PROGRAMME 1: ADMINISTRATION
STRATEGIC GOAL: Lead and monitor organisational performance
GOAL STATEMENT: Optimise organisational performance through the establishment
of strategic direction, compliance monitoring and evaluation,
as well as efficient integrated risk management system and
ICT governance.
STRATEGIC PERFORMANCE BASELINE MEDIUM TERM TARGETS
OBJECTIVES INDICATOR TARGET
2020/21 2021/22 2022/23
2019/20
STRATEGY PLANNING, MONITORING AND EVALUATION
Establishment Annual Annual Annual Annual Annual
and Performance Plan Performance Performance Performance Performance
Implementation approved by Plan for Plan for Plan for Plan for
of Strategic the Board and 2020/21 2021/22 2022/23 2023/24
Direction for the submitted to the approved by approved by approved by approved by
organisation dti as per statutory the Board and the Board and the Board and the Board and
time frames submitted to submitted to submitted to submitted to
the dti: Q4 the dti: Q4 the dti: Q4 the dti: Q4
2019/20 2020/21 2021/22 2022/23
Business case 1* Key Business case
for Public Entity document for Public Entity
listing to initiate submitted to listing to initiate
the CAV’s the Board for the CAV’s
incorporation approval and incorporation
into the GGDA the dti for the into the GGDA
approved by facilitation approved by
the Board and of CAV to be the Board and
submitted to the incorporated submitted to the
dti: Q2 2020 into GGDA, and dti
to become a
Public Entity.
This key
document9is:
1.Business case
for Public
Entity listing
drafted and
submitted to
the Board and
the dti: Q4
2019/20
9 These documents will only be presented to the CAV BoD if the final report on the Due Diligence process showed a case in favour of
incorporation and incorporation is approved by the GGDA BoD.
PROGRAMMES PLANS 31
PROGRAMME 2: CORPORATE SERVICES
STRATEGIC GOAL: Good governance and efficient administration
GOAL STATEMENT: T o foster good governance within CAV through ethical behaviour,
socially responsible environment, transparent financial management,
adequate and appropriate legal and HR support.
STRATEGIC OBJECTIVES PERFORMANCE INDICATOR BASELINE TARGET
2019/20
GOVERNANCE
Build capacity to deliver good Number of Board Charters and Terms of 1* Board Charter and
governance and effective References reviewed and approved on an 2* Terms of References Annual review and
administration annual basis. approval for (1) Audit & Risk Committee, (2)
HR & Remuneration Committee by the Board:
FINANCIAL MANAGEMENT Q4 2019/20.
Ensure Sound financial
management and compliance Percentage achievement of B-BBEE 75% of the procurement spend to black
procurement target as reported to the CEO participants (Level 4 or higher) as reported to
on an annual basis. the CEO: Q4 2019/20.
Percentage of management action plans 100% management action plans for Internal
for Internal Audit & External Audit findings Audit & External Audit findings implemented
implemented by management as reported to by management as reported to the A&RC:
the A&RC on a biannual basis. Q3 2019/20 & Q4 2019/20.
Achieve clean audit outcome on annual –
financial statements.
COMPANY SECRETARIAT & LEGAL SERVICES
Ensure effective legal support to Number of reports (quarterly CAV reports 5* reports (quarterly reports and annual
optimise business performance and annual report) in line with the timeframes report) in line with the timeframes prescribed
prescribed by PFMA to relevant authorities: by PFMA to relevant authorities: A&R
A&R Committee, Board and the dti. Committee, Board and the dti.
4* Quarterly reports within 30 days after the
quarter ended to relevant authorities
1* Annual report for the period 2018/19 to
relevant authorities: Q2 2019/20
HUMAN RESOURCES MANAGEMENT
Build Capacity to deliver Number of Human Resources strategy and 1* Human Resources strategy and plan
Operational Excellence plans approved by the Board/ HR & Remco approved:
or the CEO in line with the delegation of
authority (DoA) on an annual basis 1* Human Resources strategy and plan
for 2020/21 recommended by HR &
Remuneration Committee and approved by
Board: Q4 2019/20
INFORMATION AND TECHNOLOGY MANAGEMENT
Harness the use of technology for Develop or review disaster recovery and Reviewed disaster recovery and business
effective and efficient operations. business continuity plan for approval by the continuity plan approved by the CEO:
CEO on annual basis Q3 2019/20
RISK MANAGEMENT
Efficient integrated risk Number of risk management reports 4* Risk management reports submitted to the
management system submitted in line with the approved risk Board on a quarterly basis
management strategy to the Board on a
quarterly basis
32 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
2020/21 MEDIUM TERM TARGETS 2022/23
2021/22
1* Board Charter and 1* Board Charter and 1* Board Charter and
2* Terms of References Annual review and 2* Terms of References Annual review and 2* Terms of References Annual review and
approval for (1) Audit & Risk Committee, (2) approval for (1) Audit & Risk Committee, (2) approval for (1) Audit & Risk Committee, (2)
HR & Remuneration Committee by the Board: HR & Remuneration Committee by the Board: HR & Remuneration Committee by the Board:
Q4 2020/21. Q4 2021/22. Q4 2022/23.
75% of the procurement spend to black 75% of the procurement spend to black 75% of the procurement spend to black
participants (Level 4 or higher) as reported to participants (Level 4 or higher) as reported to participants (Level 4 or higher) as reported to
the CEO: Q4 2020/21. the CEO: Q4 2021/22. the CEO: Q4 2022/23.
100% management action plans for Internal 100% management action plans for Internal 100% management action plans for Internal
Audit & External Audit findings implemented Audit & External Audit findings implemented Audit & External Audit findings implemented
by management as reported to the A&RC: by management as reported to the A&RC: by management as reported to the A&RC:
Q3 2020/21 & Q4 2020/21. Q3 2021/22 & Q4 2021/22. Q3 2022/23 & Q4 2022/23.
Clean audit outcome achieved on annual Clean audit outcome achieved on annual Clean audit outcome achieved on annual
financial statement for 2019/20 financial financial statement for 2020/21 financial financial statement for 2021/22 financial
year..Q2 of 2020/21. year. Q2 of 2021/22 year. Q2 of 2022/23
5* reports (quarterly reports and annual 5* reports (quarterly reports and annual 5* reports (quarterly reports and annual
report) in line with the timeframes prescribed report) in line with the timeframes prescribed report) in line with the timeframes prescribed
by PFMA to relevant authorities: A&R by PFMA to relevant authorities: A&R by PFMA to relevant authorities: A&R
Committee, Board and the dti. Committee, Board and the dti. Committee, Board and the dti.
4* Quarterly reports within 30 days after the 4* Quarterly reports within 30 days after the 4* Quarterly reports within 30 days after the
quarter ended to relevant authorities quarter ended to relevant authorities quarter ended to relevant authorities
1* Annual report for the period 2019/20 to 1* Annual report for the period 2020/21 to 1* Annual report for the period 2021/22 to
relevant authorities: Q2 2020/21 relevant authorities: Q2 2021/22 relevant authorities: Q2 2022/23
1* Human Resources strategy and plan 1* Human Resources strategy and plan 1* Human Resources strategy and plan
approved: approved: approved:
1* Human Resources strategy and plan 1* Human Resources strategy and plan 1* Human Resources strategy and plan
for 2021/22 recommended by HR & for 2022/23 recommended by HR & for 2023/24 recommended by HR &
Remuneration Committee and approved by Remuneration Committee and approved by Remuneration Committee and approved by
Board: Q4 2020/21 Board: Q4 2021/22 Board: Q4 2022/23
Reviewed disaster recovery and business Reviewed disaster recovery and business Reviewed disaster recovery and business
continuity plan approved by the CEO: continuity plan approved by the CEO: continuity plan approved by the CEO:
Q3 2020/21 Q3 2021/22 Q3 2022/23
4* Risk management reports submitted to the 4* Risk management reports submitted to the 4* Risk management reports submitted to the
Board on a quarterly basis Board on a quarterly basis Board on a quarterly basis
PROGRAMMES PLANS 33
PROGRAMME 3: BUSINESS DEVELOPMENT
STRATEGIC GOAL: Investment management to attract and retain tenants.
GOAL STATEMENT: T o provide effective and efficient business development activities
to support the sustainability of the CAV and to contribute towards
the development of the aerospace and defence industry supply
chain by focusing on the CAV’s value proposition, alternative
funding options, cluster programme development, stakeholder
management and investment management including tenant
acquisition and retention.
STRATEGIC OBJECTIVES PERFORMANCE INDICATOR BASELINE TARGET
2019/20
TENANT ACQUISITION AND RETENTION
Signed Pre-Lease Agreements with
Establishment of an efficient business Sign Pre-Lease Agreements to affect new tenants covering a total of
development strategy and plan the following cumulative Landside cumulative 9%10 of available lettable
Development Phase completion space in the landside development
as a cumulative % calculated on phase. Q4 2019/20
27000m2 of available lettable
building space. 75% conversion of signed Pre-Lease
Year 2020/21 = 17,1% Agreements of 2018/19 to Lease
Year 2021/22 = 35,5% Agreements. Q4 2019/20
Year 2022/23 = 49,8%
75% conversion of Pre-Lease
Agreements to Lease Agreements on
an annual basis.
10 Subject to the availability of Capital Funding (Cannot create expectation with tenants without available funding).
34 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
2020/21 MEDIUM TERM TARGETS 2022/23
2021/22
Signed Pre-Lease Agreements with Signed Pre-Lease Agreements with Signed Pre-Lease Agreements with
new tenants covering a total of new tenants covering a total of new tenants covering a total of
cumulative 17,1% of available cumulative 35,5% of available cumulative 49,8% of available
lettable space in the landside lettable space in the landside lettable space in the landside
development phase. Q4 2020/21 development phase. Q4 2021/22 development phase. Q4 2022/23
75% conversion of signed Pre-Lease 75% conversion of signed Pre-Lease 75% conversion of signed Pre-Lease
Agreements of 2019/20 to Lease Agreements of 2020/21 to Lease Agreements of 2021/22 to Lease
Agreements.Q4 2020/21 Agreements. Q4 2021/22 Agreements. Q4 2022/23
PROGRAMMES PLANS 35
PROGRAMME 4: INDUSTRIAL PARK DEVELOPMENTAND
OPERATIONS MANAGEMENT
STRATEGIC GOAL: Develop and operate the industrial park.
GOAL STATEMENT: To develop a sustainable Aerospace, Defence and Advanced Manufacturing
Industrial Park Development to attract small and new entrants to contribute
to making South Africa as a Global Player in the Aerospace and Defence
Industry value chain.
STRATEGIC OBJECTIVES PERFORMANCE INDICATOR BASELINE TARGET
2019/20
LANDSIDE DEVELOPMENT
Industrial Park Development, Conclude the CAV external utility services for Conclude (issuing of Final Acceptance
Construction and Operations the Landside Development Phase by issuing Certificate signed off by CAV) construction
Management of a practical completion certificate by the for External work for the following bulk
CAV Technical team upon concluding works utility services for Landside phase 1A:
for water and sanitation, roads and storm 1. Roads and Storm water Services
water and electricity by 2020/21
(Q2 2019/20)
2. Water and Sanitation Services
(Q2 2019/20)
Conclusion of the township establishment for The following township establishment
the CAV Landside Development phase by milestones are achieved from the CoT for the
obtaining the Section 82 certificate from the Landside development:
Deeds office by 2020/21 1. Section 101 Certificate11 (Q2 2019/20)
2. Section 82 Certificate12 (Q4 2019/20)
11 Certification by the Municipality that the applicant has fulfilled all pre-proclamations as set out in the conditions of Establishment and that the
attorneys may submit the township register documentation to the Deeds Office
12 Certification by the municipality that all conditions have been met with regards to the establishment of the township, including the proclamation
ant the arrangements for the installation of service. This certificate has the effect to transfer of stand being authorised and building plans being
accepted for approval.
36 CENTURION AEROSPACE VILLAGE NPC | STRATEGIC PLAN | 2020/21 – 2024/25
2020/21 MEDIUM TERM TARGETS 2022/23
2021/22
-–
Conclude all external utility services that is roads & -–
storm-water services as well as water & sanitation -–
services
1.Roads & Stormwater will be concluded through:
• Drawings & Wayleave approved by City of
Tshwane Municipality (Q1)
• Environmental Authorisation (EA) approved by
Gauteng Department of Environmental Affairs (Q3)
• Construction commencement by Jodan Konstruksie
(Q3)
• Practical Completion certificate issued by the
technical team upon the completion of the works
by Jodan Konstruksie (Q4)
2.Water & Sanitation will be concluded through:
• General Authorisation and Water Use License
Application approval by Department of Water
and Sanitation (Q3)
• Environmental Authorisation approval by Gauteng
Department of Environmental Affairs (Q3)
• Construction commenced by Jodan Konstruksie (Q3)
• Practical Completion certificate issued by the
technical team upon the completion of the works by
Jodan Konstruksie (Q4)
Obtain a Section 82 certificate which mean that -–
all conditions have been met with regards to
the establishment of the township, including the
proclamation and the arrangements for the installation
of services for the Aerospace Training and Certification
Centre:
• Renewal of the Section 7 (6) approval for
conditional occupation of the Aerospace Training
and Certification Centre by the City of Tshwane
Municipality (Q1).
• Roads & Storm-water services Practical Completion
certificate issued by the technical team upon the
completion of the works by Jodan Konstruksie (Q4)
• Water & Sanitation services Practical Completion
certificate issued by the technical team upon the
completion of the works by Jodan Konstruksie (Q4)
• Obtaining a Section 82 Certificate from Deeds
Office for all Aerospace Training and Certification
Centre (ATCC) internal utility services being
connected to the CAV external utility services (Q4).
37
STRATEGIC OBJECTIVES PERFORMANCE INDICATOR BASELINE TARGET
Industrial Park Development, Number of infrastructure and building 2019/20
Construction and Operations projects implemented in accordance
Management with tenant requirements by concluding 5* Milestones commenced with or concluded
construction and issuing of a practical for the following:
completion certificate by the CAV Technical 1. Concept and design development
team for the Gatehouses and buildings A to
E over a period of three (3) years. approved by CAV for the following
buildings:
a. Building A (Q2 2019/20)
b. BoT Platform construction
(Q1 2019/20)
c. Perimeter Fence (Q3 2019/20)
d. Office Block (Q3 2019/20)
2. Procurement of the building contractors
completed, SLA signed off by CAV and the
Contractors for the following buildings:
a. Building A (Q3 2019/20)
b. Gatehouse: (Q2 2019/20)
c. Perimeter Fence (Q4 2019/20)
d. Office Block (Q4 2019/20)
3. Commenced construction:
a. Building A (Q4 2019/20)
b. Gatehouse (Q3 2019/20)
c. BoT Platform construction (
Q2 2019/20)
4. Concluding construction of buildings:
a. Gatehouse (Q4 2019/20)
b. BoT Platform construction
(Q3 2019/20)
5. Concluded post construction
(Occupation Certificate):
a. (ATCC) including Services
(Q4 2019/20)
b. Gatehouse (Q4 2019/20)
AIRSIDE DEVELOPMENT Seek approval for the development of the -–
CAV Airside Phase from the Department of
Property Development and Defence, the South African Air Force, the Air
Construction Force Base Waterkloof and the Department
of Public Works during 2020/21 and
develop a joint business case and master
plan to be approved by the CAV Board and
the Steering Committee by 2021/22.
TABLE 2: PROGRAMMES AND SUB-PROGRAMME
38 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
MEDIUM TERM TARGETS
2020/21 2021/22 2022/23
Construction and completion of the first gatehouse. The Construction and completion of Building A (SMME Construction and completion of
access gate construction will be achieved through the Facility). Construction will be achieved through the Building B & C. Construction will be
following: following: achieved through the following:
• Approval of the geotechnical engineering dolomite • Practical Completion certificate issued by the • Approval of the geotechnical
stability report by Council of Geo-Sciences (Q1) technical team upon the completion of the works engineering dolomite stability
by the appointed service provider. (Q3) report by Council of Geo-Sciences
• Commencement of construction by Jodan Rekopane (Q1)
• Construction and completion of the second
(JV) (Q1) • Provision of BEWI services by the
gatehouse. The access gate construction will be
• Practical Completion certificate issued by the achieved through the following: appointed service provider (Q2)
technical team upon the completion of the works by • Commencement of construction by Jodan • Commencement of top structure
Jodan Rekopane (JV) (Q2)
Rekopane (JV) (Q2) construction by the appointed
Construction and completion of Building A (SMME service provider (Q3)
Facility). Construction will be achieved through the • Practical Completion certificate issued by the
following: Construction and completion of
technical team upon the completion of the works Building D & E. Construction will be
• Approval of the geotechnical engineering dolomite by Jodan Rekopane (JV) (Q3) achieved through the following:
stability report by Council of Geo-Sciences (Q2) Construction and completion of the taxi drop off • Approval of the geotechnical
zone with hawkers’ stalls. Construction will be
• Provision of building A (SMME) Bulk Earth achieved through the following: engineering dolomite stability
report by Council of Geo-Sciences
Works and Infrastructure by Jodan Rekopane • Commencement of construction by Jodan (Q2)
(JV) services (Q3)
Rekopane (Q2) • Provision of Bulk Earth Works and
• Commencement of top structure construction –
• Practical Completion certificate issued by the Infrastructure by the appointed
Appointment of service provider to commence service provider (Q3)
construction work (Q4) technical team upon the completion of the works
by Jodan Rekopane (JV) (Q3) • Commencement of top structure
Installation of a perimeter fence to secure the industrial
park: Provision of Bulk Earth Works and Infrastructure construction – Appointment of
services for a tenant facility platform (Build- service provider to commence
• Commencement of construction by Jodan Rekopane Operate-Transfer Option): construction work (Q4)
(Q4) • Approval of the geotechnical engineering
• Practical completion certificate issued by the dolomite stability report by Council of Geo-
Sciences (Q3)
technical team upon the completion of the works by
Jodan Rekopane (JV) (Q4) • Commencement of Bulk Earth Works and
Infrastructure by Jodan Rekopane (JV) services
(Q4)
• Practical Completion certificate issued by the
technical team upon the completion of the works
by Jodan Rekopane (JV) (Q4)
2* Milestones to be achieved in support of the CAV 3* Milestones to be achieved in support of the -–
Airside development. CAV Airside development.
The milestones are: The milestone is:
1.To seek approval for the development of a business 1.Development of a joint Business case to be
case from the Department of Defence, the South approved by the Steering Committee (Q2
African Air Force, the Air Force Base Waterkloof 2021/22)
and the Department of Public Works (Q3 2020/21). 2.Design and develop CAV Airside Master Plan to
2.To establish a Steering Committee and Working be approved by the CAV Board (Q4 2021/22).
Committee represented by the Department of 3.Airside Master Plan to be approved by the
Defence, the South African Air Force, the Air Force Steering Committee (Q4 2021/22).
Base Waterkloof and the Department of Public Work
for the development of a joint business case (Q4
2020/21).
PROGRAMMES PLANS 39
12 QUARTERLY PERFORMANCE TARGET 2020/21
PROGRAMME 1: ADMINISTRATION
PERFORMANCE INDICATOR ANNUAL TARGET
2020/2021
Q1 (APRIL–JUNE 2020)
STRATEGY PLANNING, MONITORING AND EVALUATION
–
Annual Performance Plan approved Annual Performance Plan for –
by the Board and submitted to the 2021/22 approved by the Board
dti as per statutory time frames and submitted to the dti:
Q4 2020/21
Business case for Public Entity listing Business case for Public Entity listing
to initiate the CAV’s incorporation to initiate the CAV’s incorporation
into the GGDA approved by the into the GGDA approved by the
Board and submitted to the dti: Board and submitted to the dti:
Q2 2020 Q2 2020
40 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
QUARTERLY TARGETS
Q2 (JULY–SEP 2020) Q3 (OCT–DEC 2020) Q4 (JAN–MAR 2021)
–– Annual Performance Plan for
2021/22 approved by the Board
Business case for Public Entity listing – and submitted to the dti
to initiate the CAV’s incorporation
into the GGDA approved by the –
Board and submitted to the dti
QUARTERLY PERFORMANCE TARGET 2020/21 41
PROGRAMME 2: CORPORATE SERVICES
PERFORMANCE ANNUAL TARGET Q1 (APRIL–JUNE 2020)
INDICATOR 2020/2021
GOVERNANCE
Number of Board Charter and 1* Board Charter and 2* Terms of –
Terms of References reviewed and References Annual review and approval
approved on an annual basis for (1) Audit & Risk, Committee, (2) HR &
Remuneration Committee by the Board:
Q4 2020/2021
FINANCIAL MANAGEMENT
Percentage achievement of B–BBEE 75% of the procurement spend to black –
procurement target as reported to participants (Level 4 or higher) as
the CEO on an annual basis. reported to the CEO: Q4 2020/21.
Percentage of management action 100% management action plans for –
plans for Internal Audit & External Internal Audit & External Audit findings
Audit findings implemented by implemented by management as reported
management as reported to the to the A&RC: Q3 2020/21 & Q4
A&RC on a biannual basis. 2020/21.
Achieve clean audit outcome on Clean audit outcome achieved on annual –
annual financial statements. financial statement for 2019/20 financial
year.Q2 2020/21
COMPANY SECRETARIAT & LEGAL SERVICES
Number of reports (quarterly CAV 5* reports (quarterly reports and annual 1* report (quarterly report) in line with the
reports and annual report) in line report) in line with the timeframes timeframes prescribed by PFMA to relevant
with the timeframes prescribed by prescribed by PFMA to relevant authorities: A&R Committee, Board and the
PFMA to relevant authorities: A&R authorities: A&R Committee, Board and dti:
Committee, Board and the dti the dti:
1* Quarterly Report within 30 days after
4* Quarterly reports within 30 days after the quarter ended to A&R Committee, Board
the quarter ended to relevant authorities and the dti.
1* Annual report for the period 2019/20
to relevant authorities: Q2 2020/21
HUMAN CAPITAL MANAGEMENT
Number of Human Resources 1 * Human Resources strategy and plan –
strategy and plans approved by the approved:
Board/ HR & Remco or the CEO in
line with the delegation of authority 1 * Human Resources strategy and plan
(DoA) on an annual basis for 2021/22 recommended by HR &
Remuneration Committee and approved
by Board: Q4 2020/21
INFORMATION AND TECHNOLOGY MANAGEMENT
Develop or review disaster recovery Reviewed disaster recovery and business –
and business continuity plan for continuity plan approved by the CEO: Q3
approval by the CEO on an annual 2020/2021
basis
RISK MANAGEMENT
Number of risk management reports 4* Risk management reports submitted to 1* Risk management report submitted to the
submitted in line with the approved the A&RC Audit & Risk Committee
risk management strategy to the
A&RC on a quarterly basis
42 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
QUARTERLY TARGETS
Q2 (JULY–SEP 2020) Q3 (OCT–DEC 2020) Q4 (JAN–MAR 2021)
–– 1* Board Charter and 2* Terms of
References Annual review and approval
for (1) Audit & Risk, Committee, (2) HR &
Remuneration Committee by the Board.
– – Report submitted to the CEO on procurement
spend 75% to black participants (Level 4 or
higher)
– 50% management action plans for Internal 100% management action plans for Internal
Audit & External Audit findings implemented Audit & External Audit findings implemented
by management as reported to the A&RC by management as reported to the A&RC
Clean audit outcome achieved on annual – –
financial statement for 2019/20 financial
year.
2* reports (quarterly report and annual 1* report (quarterly report) in line with the 1* report (quarterly report) in line with the
report) in line with the timeframes prescribed timeframes prescribed by PFMA to relevant timeframes prescribed by PFMA to relevant
by PFMA to relevant authorities: A&R authorities: A&R Committee, Board and authorities: A&R Committee, Board and
Committee, Board and the dti: the dti: the dti:
1* Quarterly Report within 30 days after 1* Quarterly Report within 30 days after 1* Quarterly Report within 30 days after
the quarter ended to A&R Committee, Board the quarter ended to A&R Committee, Board the quarter ended to A&R Committee, Board
and the dti. and the dti. and the dti.
1* Annual reports for the period 2019/20
to relevant authorities.
– – 1 * Human Resources strategy and plans
approved:
1* Human Resources strategy and plan for
2021/22.
– Reviewed disaster recovery and business –
continuity plan approved by the CEO
1* Risk management report submitted to the 1* Risk management report submitted to the 1* Risk management report submitted to the
Audit & Risk Committee Audit & Risk Committee Audit & Risk Committee
QUARTERLY PERFORMANCE TARGET 2020/21 43
PROGRAMME 3: BUSINESS DEVELOPMENT
PERFORMANCE INDICATOR ANNUAL TARGET
2020/2021
Q1 (APRIL–JUNE 2020)
TENANT ACQUISITION AND RETENTION
Sign Pre–Lease Agreements to affect Signed Pre–Lease Agreements with –
the following cumulative Landside new tenants covering a total of
Development Phase completion as a cumulative 17,1% of available lettable
cumulative % calculated on 27000m2 space in the landside development
of available lettable building space. phase. Q4 2020/21
Year 2020/21 = 17,1%
Year 2021/22 = 35,5%
Year 2022/23 = 49,8%
75% conversion of Pre–Lease 75% conversion of signed Pre–Lease –.
Agreements to Lease Agreements on Agreements of 2019/20 to Lease
an annual basis. Agreements.Q4 2020/21
44 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
QUARTERLY TARGETS
Q2 (JULY–SEP 2020) Q3 (OCT–DEC 2020) Q4 (JAN–MAR 2021)
– – Signed Pre–Lease Agreements with
new tenants covering a total of
cumulative 17,1% of available lettable
space in the landside development
phase.
– – 75% conversion of signed Pre–Lease
Agreements of 2019/20 to Lease
Agreements
QUARTERLY PERFORMANCE TARGET 2020/21 45
PROGRAMME 4: INDUSTRIAL PARK DEVELOPMENTAND
OPERATIONS MANAGEMENT
PERFORMANCE ANNUAL TARGET Q1 (APRIL–JUNE 2020)
INDICATOR 2020/2021
LANDSIDE DEVELOPMENT
Conclude the CAV external Conclude all external utility services that Conclude all external utility services that
utility services for the Landside is roads & storm–water services as well as is roads & storm–water services as well
Development Phase by issuing water & sanitation services as water & sanitation services Roads &
a final acceptance certificate Stormwater will be concluded through:
upon concluding works for Roads & Stormwater will be concluded
water and sanitation, roads and through: • Drawings & Wayleave approved by
storm water and electricity by
2020/21. • Drawings & Wayleave approved by City of Tshwane Municipality
City of Tshwane Municipality (Q1)
• EA approved by Gauteng Department of
Environmental Affairs (Q3)
• Construction commencement by Jodan
Konstruksie (Q3)
• Practical Completion of the works by
Jodan Konstruksie (Q4)
Water & Sanitation will be concluded
through:
• General Authorisation and Water Use
License Authorisation approval by
Department of Water and Sanitation
(Q3)
• Environmental Authorisation approval by
Gauteng Department of Environmental
Affairs (Q3)
• Construction commenced by Jodan
Konstruksie (Q3)
• Practical Completion of the works by
Jodan Konstruksie (Q4)
Conclusion of the township Obtain a Section 82 certificate which Obtain a Section 82 certificate which
establishment for the CAV mean that all conditions have been met mean that all conditions have been met
Landside Development phase with regards to the establishment of the with regards to the establishment of the
by obtaining the Section 82 township, including the proclamation and township, including the proclamation and
certificate from the City of the arrangements for the installation of the arrangements for the installation of
Tshwane by 2020/21 services for the Aerospace Training and services for the Aerospace Training and
Certification Centre: Certification Centre:
• Renewal of the Section 7 (6) approval • Renewal of the Section 7 (6) approval
for conditional occupation of the for conditional occupation of the
Aerospace Training and Certification Aerospace Training and Certification
Centre by the City of Tshwane Centre by the City of Tshwane
Municipality (Q1). Municipality
• Roads & Storm–water services practical
completion by Jodan Konstruksie (Q4)
• Water & Sanitation services practical
completion by Jodan Konstruksie (Q4)
• Obtaining a Section 82 Certificate from
Deeds Office for all Aerospace Training
and Certification Centre (ATCC) internal
utility services being connected to the
CAV external utility services (Q4).
46 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
QUARTERLY TARGETS
Q2 (JULY–SEP 2020) Q3 (OCT–DEC 2020) Q4 (JAN–MAR 2021)
– Conclude all external utility services that Conclude all external utility services that
is roads & storm–water services as well is roads & storm–water services as well
as water & sanitation services Roads & as water & sanitation services Roads &
Stormwater will be concluded through: Stormwater will be concluded through:
• EA approved by Gauteng Department of • Practical Completion of the works by
Environmental Affairs Jodan Konstruksie (Q4)
• Construction commencement by Jodan Water & Sanitation will be concluded
through:
Konstruksie
Water & Sanitation will be concluded • Practical Completion of the works by
through: Jodan Konstruksie
• General Authorisation and Water Use
License Authorisation approval by
Department of Water and Sanitation
• Environmental Authorisation approval by
Gauteng Department of Environmental
Affairs
• Construction commenced by Jodan
Konstruksie
– – Obtain a Section 82 certificate which
mean that all conditions have been met
with regards to the establishment of the
township, including the proclamation and
the arrangements for the installation of
services for the Aerospace Training and
Certification Centre:
• Roads & Storm–water services practical
completion by Jodan Konstruksie
• Water & Sanitation services practical
completion by Jodan Konstruksie
• Obtaining a Section 82 Certificate from
Deeds Office for all Aerospace Training
and Certification Centre (ATCC) internal
utility services being connected to the
CAV external utility services
QUARTERLY PERFORMANCE TARGET 2020/21 47
PERFORMANCE ANNUAL TARGET Q1 (APRIL–JUNE 2020)
INDICATOR 2020/2021
Number of infrastructure and Construction and completion of the first Construction and completion of the first
building projects implemented gatehouse. The access gate construction gatehouse. The access gate construction
in accordance with tenant will be achieved through the following: will be achieved through the following:
requirements by concluding
construction and practical • Approval of the geotechnical • Approval of the geotechnical
completion of buildings A to E
over a period of three (3) years. engineering dolomite stability report by engineering dolomite stability report by
Council of Geo–Sciences (Q1) CGS (Q1)
• Commencement of construction by • Commencement of construction (Q1)
Jodan Rekopane (Q1)
• Practical Completion by Jodan
Rekopane (Q2)
Construction and completion of Building
A (SMME Facility). Construction will be
achieved through the following:
• Approval of the geotechnical
engineering dolomite stability report by
Council of Geo–Sciences (Q2)
• Provision of building A (SMME) Bulk
Earth Works and Infrastructure by Jodan
Rekopane services (Q3)
• Commencement of top structure
construction – tender process to be
concluded and service provider to
commence work (Q4)
Installation of a perimeter fence to secure
the industrial park:
• Commencement of construction by
Jodan Rekopane (Q4)
• Practical Completion by Jodan
Rekopane (Q4)
AIRSIDE DEVELOPMENT
Seek approval for the 2* Milestones to be achieved in support of –
development of the CAV Airside the CAV Airside development.
Phase from the Department
of Defence, the South African The milestones are:
Air Force, the Air Force Base 1. To seek approval for the development
Waterkloof and the Department
of Public Works. of a business case from the Department
of Defence, the South African Air Force,
the Air Force Base Waterkloof and
the Department of Public Works
(Q3 2020/21).
2. To establish a Steering Committee and
Working Committee represented by
the Department of Defence, the South
African Air Force, the Air Force Base
Waterkloof and the Department of Public
Work for
the development of a joint business case
(Q4 2020/21).
TABLE 3: QUARTERLY TARGET PER PROGRAMME AND SUB PROGRAMME
48 CENTURION AEROSPACE VILLAGE NPC | ANNUAL PERFORMANCE PLAN | 2020 – 2021
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