7. Project Implementation and Governance
As at date, Heritage City Company Limited does not have any permanent staff or an
organization structure in place. There is only a Board of Directors, meeting on a monthly
basis. Serious concerns are raised on the way the project is being handled and managed
In the absence of management staff and a CEO, itis clear that the project is being driven
blindly by Stree Consulting with no due diligence or checks being exercised on the
proposals being put forward by the consultants. Government, through cabinet, is therefore
being called upon to endorse the recommendation of Stree with no assurance that the
proposals have stood the test of minimum scrutiny,
On 02 August 2016, a Board Meeting is convened with defined agenda wherein one of
the items is for STREE consulting to present the detsiled plans of one of the components
of the project. During the same meeting, the Board is requested to resolve the
implementation of the landscaping plan for the Heritage City project; while this was not
part of the Agenda. In addition, the Board is requested to appoint Stree for the detailed
design works with no formal board papers being circulated. This clearly flouts basic
principles of good govemance, accountability and transparency. It is evidently clear that
the Chairman of the Board and most members of the board are being instructed to act
simply as rubber stamp directors with no possibility of questions being asked.
A copy of the Agenda is at Annex 2.
This is a clear indication that the project is not being managed properly and will lend the
Board, the Government, and the project into serious troubles.
The Heritage City Co Ltd has & duty to advise and make recommendations to
Government on the implementation of such‘a project. The current mode of operation is
that Government (Cabinet- considered as shareholder) seems to direct the Board, which
does not have any management staff. The Board is seen as a rubber stamp of
recommendations made by STREE Consulting. This is dangerous as an approach and
flouts all principles of governance, The Board should be fully satisfied with the proposal
and thereafter make its recommendation properly to Government on the best design and
concept plan having regards to all aspects of master planning,8. Project Funding
It was initially understood that a G to G arrangement was proposed on the basis that the
Dubai Government was going to advance funds for the construction of Heritage City. Itis,
now almost clear that the Dubai Government will not be funding the project.
At its Board Meeting on 2 June 2016, the Directors were informed that the Government
of India will fund the construction cost of the parliament as well as the infrastructure
works; not the consultancy fees. However, the condition is that only Indian contractors
will have a right to tender for the works.
The cost of Heritage City has been broadcast as being USD800m with not a cent being
contributed by the Government of Mauritius so as not to increase public debt.
Based on the above, if Government is not receiving any funds from Dubai Government,
should STREE consulting be appointed for’ almost all consultancy services for the
project?
9. Concluding Remarks and Way Forward
It is to be reiterated that the aim of this report is not question Government’s decision for
the implementation of the Heritage City project.
However, for the proper implementation of the project, it is critical that all the issues
flagged in the report are addressed at outset to avoid any future surprises, which can
‘occur financially and from a planning perspective,
‘Any mishap can compromise the implementation of the project and can become @ serious
nuisance factor for Government.
i. It is being recommended that Government takes a few more weeks to properly
analyze all issues, set up the appropriate management structure at Heritage City
Co Ltd or alternatively vest the project in State Land Development Company
which is already properly staffed for the implementation of the Heritage
City project.
and take the required decisions, before breaking grounds for the Heritage City project.As a way forward, it is proposed that the following are assessed without undue delay;
ii, A Due Diligence on STREE Consulting.
iii, An evaluation of the technical and financial proposals of STREE consulting and
the agreements signed.
iv. Review of the Planning Process followed by STREE Consulting.
v. A proper site due diligence to assess adequacy of site and alternative locations.
Review of the Master Plan with industry experts to assess the best location and
best use of the land.
Site selection
viii, Uses and real estate mix
ix. Architectural design criteria
x. Phasing
xi. Setting up the management structure of Heritage City Co Lid or alternatively
using State Land Development Company which is already well staffed for the
implementation of the Heritage City project .
xii, Financial modelling for the project and financing plan.
Ideally, the development of such a project as Heritage City should have adopted an
integrated planning approach which is depicted below.