Student Housing Infrastructure Programme

Cost Optimisation Model 

• In October 2021, the DBSA introduced an order of magnitude cost optimisation model to determine the optimal cost per bed for greenfield student housing projects and a rental cost per bed was launched for use by the DHET and institutions for planning purpose
• The updated model will include options for brownfield sites and expand functionality for alternative building technologies

Outcomes

Socio-economic Impact

The qualitative impact analysis concluded that there are many benefits of undertaking student housing developments, both during the construction and operations phases. It should be noted that this contributes to the DBSA’s purpose: ‘Build Africa’s Prosperity’. These benefits are summarised as: 

• Growth of local labour market and small, medium, and micro enterprises opportunities;
• Institutional standing and pride;
• Contribution to social amenities;
• Skills and training improvement;
• Student quality of life improvement;
• Construction sector, student housing and general property sector improvement; and
• Bulk services improvement.

Cost Benefit Analysis

 A cost benefit analysis was completed for all institutions. It is more beneficial for students to stay on-campus than off-campus. Some of the benefits include: 

• Improved living and learning environments that increase the chances of students completing their academic training. A study was done by Cape Peninsula University of Technology which showed over a 10-year period, a 77.4% pass rate on off-campus students vs. 83.4% pass rate of on campus students;
• Eliminates travelling and use of public transport to access the targeted campus, thereby reducing travel costs. This also diminishes the likelihood to be engaged in a fatal vehicle crash. Travel saving also contributes to lower carbon emissions;
• Provides students a safety aspect that limits their propensity to fall victim to crime;
• Invokes a sense of place for students far from their homesteads;
• Increased student success as a result of enhanced social interactions;
• The development of essential skills typically gained as a result of social interactions;
• Improved access to institutional infrastructure • Participation in recreational, cultural and spiritual activities.

Job Creation 

• Over 3 000 temporary job opportunities created during the construction of SHIP Phase 1 developments (five projects) 

Enterprise Development 

• For North West University residences, throughout the construction period, the contractor achieved employment of 45% local labour on site
• For University of the Western Cape residences, the developer had set a target to achieve a minimum of 85% local labour on site and this was achieved

Individuals Benefitted

 For the SHIP Phase 1 developments, there are six facilities (from five institutions) which are currently operational, which amounts to 9 407 student beds. Students are benefiting as they have eliminated travelling time and the use of public transport to access the campuses, thus providing effortless access to institutional infrastructure (e.g. libraries, sports facilities, etc.). In addition, these new facilities are safe for students, as each institution has provided security personnel to limit student’s propensity to fall victim to crime.

Environmental Impact

Some of the new facilities are equipped with storage water tanks for fire water and back-up water supply. Gauges have been provided for tanks to ensure that once a minimum water level has been reached, the municipal water system is able to replenish water to required capacity. New facilities comply with the National Building Regulations with regards to glazing, solar control, insulation, rainwater harvesting and orientation. All sustainability and green aspects were incorporated, where feasible, in accordance with the minimum requirement of the regulations.

Challenges 

• Lack of bulk infrastructure in Post-School Education and Training (PSET) institutions and municipalities where these institutions are located. This is further exacerbated by uncoordinated planning between the municipalities and universities;
• Delays due to some institutions not having title deeds, rezoning and land claims on rural campuses;
• Land availability for proposed developments to some of the institutions;
• Limited planning capacity in institutions resulting in poorly structured commercial agreements;
• Limited capacity in government to support project preparation;
• Protracted ministerial approval process to enable development at PSET institutions, leading to project delays;
• Uncoordinated sequencing of funding caused project delays;
• Investors deterred by onerous procurement processes, including poorly structured request for proposal documents, unclear timelines and extended bidding stages due to insufficient bids;
• On conclusion of feasibility studies, some institutions indicated that they are unable to raise require equity to support the project, thus leading them to pull out of the programme; and
• Protracted ministerial approval process to enable development at PSET institutions, leading to project delays.