Telkom Towers part of R4.5bn Pretoria CBD revival plan

The Department of Public Works and Infrastructure (DPWI) is set to revitalize the vandalised Telkom Towers precinct and two other government buildings in Pretoria's central business district (CBD) at a cost of R4.56 billion. This project, delivered through a public-private partnership (PPP), is expected to generate over 12,700 construction jobs and unlock 212,000m² of gross leasable area for income generation.

Minister of Public Works and Infrastructure, Dean Macpherson, clarified that the government will not bear the full financial burden of the project. Instead, it will be delivered through a PPP model where private investors will operate, develop, and manage the infrastructure, generating revenue through lease payments to the state. Macpherson emphasized that the private sector will benefit from the project over time, primarily through lease payments from government departments occupying the area.

The Telkom Towers precinct development is estimated to cost between R1.8 billion and R2.2 billion and will create 5,300 construction jobs. The refurbishment of the Public Works House (PWH), which houses the DPWI's head office, is projected to cost R2.2 billion and generate 5,700 construction jobs. The Central Government Offices (CGO) project, encompassing 41,739m² of gross leasable area, is expected to cost R560 million and create 1,600 construction jobs.

Macpherson reiterated the government's commitment to bringing more government departments back to the CBD, citing a cabinet resolution that has been pending for a long time. He highlighted the immense private-sector interest in participating in such large-scale redevelopment projects, with the private sector eager to rejuvenate and operate the precincts for a period of 20 to 25 years.

The Department of Public Works will issue a request for information (RFI) to gauge private-sector involvement and test a broader precinct-scale approach, which includes the PWH and Central Government Offices buildings.