ICC/FISH ON COURSE FOR E1.6 BILLION MORE

MBABANE – The extended completion date for the International Convention Centre (ICC) means this facility ‘may be poised’ for another funding.

The completion date is now April 2025. It coincides with a new financial year. Government’s financial year begins on April 1. The taxpayer has so far spent E3 324 669 000 on the construction of the ICC. In the current financial year, which began on April 1, 2024, the project was allocated funding amounting E749 667 693 for interior works, professional services, payment of value-added tax (VAT) and levy for the Construction Industry Council (CIC).

In the next financial year beginning April 2025, government financial records indicate that a sum of E4 190 983 000 will be reflected as an actual expenditure for the project. The E4 190 983 000 is the amount of money government is expected to have exhausted by April 31, 2024. It is not precisely certain how much the facility will receive as funding for the next financial year, but it has since been established that the estimated project total cost currently stands at E5 300 983 000.

Therefore, government has not yet reached the current budget limit or estimate of E5 300 983 000. This means the ICC costs can still be within budget if the Ministry of Economic Planning and Development is to get an additional allocation of E1.1 billion. The ministry is the custodian of the project. It falls under the millennium projects introduced by His Majesty the King about 22 years ago. In other words, government needs to spend E1.1 billion in order to reach the estimated total project cost. Observers say now that government has extended the completion date for the project, there is a possibility for the taxpayer to spend more funds on it.

On the other hand, the Five-Star Hotel’s (FISH) estimated total project cost stands at E2 800 067 000. Government financials indicate that a sum of E2 153 635 000 has already been recorded as having been utilised as at March 31, 2023. What does that mean? It means, in order for the ministry to exhaust the current financial year’s estimated total project cost, a sum of E646 432 000 must be allocated for FISH. Since government allocated a sum of E175 250 000 for FISH in the current financial year, the balance for the budgeted costs for the project is E471 182 000.

In order to exhaust the estimated budgeted costs for the two projects, there would have to be a need to release E1.6 billion. In the 2024/2025 financial year, the ministry was allocated E140 250 000 from loan funds to complete the buildings and E35 million for professional services, payment of VAT and CIC levy of the hotel structure.  While the completion date for the ICC is slated for April 2025, His Majesty the King had commanded government to prioritise the completion of the ICC/FISH in the current financial year.  

Minister of Finance Neal Rijkenberg also assured the nation that projects such as the ICC are going to be prioritised this year. Rijkenberg said in line with the National Development Agenda, this year’s budget would address social challenges, building infrastructure and provide for economic growth. He said, to attain this growth, government will be prioritising the completion of existing capital projects and spending in excess of E1 billion more on capital infrastructure, compared to the previous years.

Eswatini News reported that the overall completion rate is now 84 per cent, including the interior fit out. It is mentioned in the second quarter performance report for the Ministry of Economic Planning and Development that the justification for revised practical completion date on the ICC is that the interior sub-contractor for the high-end finishes of the ICC is based in Italy, where production is also done in Italy. The completion date has been recommended so that work in the interior onsite can be done proficiently. In terms of progress, the report states that works on both the high-end and general areas are progressing well.

These include the ceiling boards installation, plastering, mouldings, ceiling decorative detailing and applying of base paint. It is also stated in the report that the installation of the wall cladding/boiserie by Turri in the small conference rooms and other important rooms is complete. In terms of the ministry’s report, the wall and floor marble polishing is also complete in most of the high end areas. Fittings, including sanitary and building services, are almost complete in all the rooms.

With regard to challenges, the report lamented late payments by government, resulting in accumulation of interest charges. Another challenge highlighted is the inadequate budget allocation to the project resulting in increased costs and time overruns. Eswatini News reported that, in terms of background, the purpose of the ICC is to provide a world-class conferencing facility along with an associated five-star hotel.  The long-term goal, according to government, is to provide facilities that will be used by the private sector including regional and international organisations such as the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), World Health Organisation, World Trade Organisation (WTO), Southern African Customs Union (SACU) and Commonwealth meetings in which the country is a member. Government has always emphasised that the ICC will accommodate a range of government, public and corporate activities including theatre, conferences, exhibitions and private functions.
In the report, it is highlighted that the ICC’s multipurpose hall, theatre and exhibition space have also been designed to allow flexibility in usage.

The whole building has been designed according to Leadership in Energy and Environmental Design (LEED). The ICC consists of the following -
Basement level for storage and utilities;

• Theatre for 1 800 patrons on two levels – ground and balcony, meeting, conference and multipurpose rooms over two levels;
• VIP reception rooms, exhibition hall with refreshment and coffee shop, chamber hall –sufficient to house African Union and other conferences;
• Multipurpose hall for 1 500 people in ballroom seating and 3 000 persons in classroom seating, restaurant for 340 diners and catering facilities for banquet receptions.

It was also disclosed that the ongoing works onsite were primarily focused on the interior fit out of the facility, which includes trades such as ceiling works, wall (acoustic padding, tiling and painting), floors, tiling and carpets, fitting including sanitary and building services and supply of furniture, decorative fitting and chandeliers.
FISH is situated on the northern end of the site and is linked to the ICC by a pedestrian bridge.

The hotel comprises a total area of 51 000 square metres. FISH consists of the following -

• Seven floors, including the basement with a total of 299 rooms;
• Central foyer, all-day café, shopping and coffee shop, restaurant/ballroom, gymnasium, multipurpose rooms, outdoor decks;
• Entertainment plus a large swimming pool.

In terms of achievements, the report states that the hotel’s grey box is substantially complete and that the focus of works is on the swimming pool and the cladding. Last month, Minister of Finance Neal Rijkenberg hoped to see the ICC opening sometime next year. This was reported by the Times of Eswatini. In his mid-year budget review, Rijkenberg said the total expenditure for 2025/26 financial year is projected to reach 35.8 per cent of gross domestic product (GDP) of which recurrent is at 27 per cent of GDP and capital at 8.8 per cent of GDP.
Rijkenberg said the increase was mainly as a result of inflationary pressure on goods and services and the wage bill as implementation of the salary review was anticipated.
He said, in the 2025/26 financial year, total expenditure is expected to reach E32.8 billion, of which E26.2 billion is budgeted for recurrent expenditure and E6.6 billion is capital expenditure.

The minister of finance said assumptions underlying these projections include the following -

• Inflation rate for goods and services, implementation of salary review for the wage bill,
• Employment growth of two per cent;

Continued implementation of big projects like Mkhondvo-Ngwavuma 1A&1B, Parliament Building, Water Projects (Manzini and Shiselweni) ICC/FISH. He said the Planning and Budgeting Committee (PBC) remains alive to the need to raise more revenue in order to finance the programme of action and grow the economy. The minister said this would be a mammoth task needing collaboration within government and engaging development partners to fulfil the development mandate.

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