CAV Annual Report 2021

“SUPPORT THE GROWTH OF THE AEROSPACE, DEFENCE AND ADVANCED MANUFACTURING INDUSTRIES”

-- Review the Head-Lease Agreement with DPWI. -- Extend/Renew PoA to continue with the CAV Township Proclamation process. • Assessment of the impact of Covid-19 on the CAV in respect of: -- Financial impact. -- Operational impact. • Operations Functional Area (Implementation): -- Extend the Section 7 (6) for temporary occupation of ATCC Building. • Complete all the external works to service the Landside Development site -- General Authorisation and Water Use License Application for external works. -- Complete the actual physical implementation of providing an external water & sewer pipes to cater for the ATCC Building. -- Signing of the addendum & approval of the drawings for roads upgrades. -- Complete the actual physical implementation of upgrading the access roads with the CAV’s Park as required by CoT. • Construct of the Aerosud Gatehouses: -- Gatehouse 1 construction as per the agreement with Aerosud. • Park Perimeter Fencing: -- Installation Park perimeter fence of 856m length. • Financial modelling of business case: -- Start of programme cash flow projection for services -- Proof of concept of the shared services including determination of levy fees. -- Financial projections -- Update infrastructure investment projections. -- Update pipeline of tenants with a 5-year outlook. -- Financial model scenarios -- Rent through Build to Lease Model (BTL Model). -- Build Operate Transfer Model (BOT Model). -- Funding/finance. • CAV and Aerosud contractual matters: -- Review and Conclude SLA for the use of utilities between CAV and Aerosud to be concluded.

development of tenant facilities within the CAV. Cluster programmes that were identified for the CAV includes; 1) Central Shared Logistics Centre; 2) Incubation Centre and Programme; 3) Skills Development and Training Centre and 4) a Shared SMME Multi-Tenant Facility. The intention is to solidify the CAV as an Advanced Manufacturing Cluster and Industrial Park Development as the entity conclude on all of its township establishment processes including the finalisation of bulk earth works, infrastructure and utility services that are required to start full scale development. The future outlook is that the CAV will be ready to address the needs of its tenants in order to create an environment that is considered an ideal place in which to do business and to work. A challenge would be to transition the CAV from a virtual organisation to a more conventional operational structure with an implementation mind-set that will require additional capital funding to address the needs of its potential tenants. 8. IMPLEMENTATION PLAN The past financial year saw a renewed increase in interest from role players from both the Aerospace and Defence industry in the CAV project. The CAV will continue to create awareness of the project in the market. An increase in awareness will undoubtedly lead to an increase in potential tenants interested to locate within the CAV. The biggest constraint for the CAV is access to Capital Funding. It is the intention that the CAV request Capital Funding to service the current tenant requirements for which Letters-of-Intent (LOI) were received. These projects can only materialise if capital funding is made available to so that LOI’s can be migrated to full-blown pre-lease and lease agreements. The following Focus Areas were identified for the next reporting period: • Confirm incorporation with the Gauteng Growth Development Agency (GGDA). Run in parallel: -- Establish appetite for incorporation process to Continue. -- Way forward between the respective BoDs. -- Initiation of resolution from GGDA board and process by the executive authority the dtic. • Finalise the Township establishment process and Review the Head-Lease Agreement with Department of Public Works and Infrastructure (DPWI):

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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