REPORT ON THE

HERITAGE CITY
PROJECT

Table of Contents
1. Introduction .................................................................................................. 2
2. The site .......................................................................................................... 2
3. Appointment of consultants for the project ............................................... 7
4. Project Cost................................................................................................. 10
5. Planning process ......................................................................................... 10
6. The master plan .......................................................................................... 13
7. Project Implementation and Governance ................................................ 18
8. Project Funding .......................................................................................... 20
9. Concluding Remarks and Way Forward ................................................. 21

Page | 1

1. Introduction
While the principles and wish of Government, especially that of the Prime Minister, to
develop the Heritage City is not being questioned at all, the purpose of this report is to
draw urgent attention to major flaws in the way the Heritage City Project is currently
being conceived and developed through the Heritage City Company Ltd. The report
highlights key parameters, conditions and assumptions that have been omitted and
understated in the site identification and location, conceptual and architectural design as
well as the current process adopted for its implementation. It is meant to alert policy
makers of the risks, loopholes and costs associated with the current development
approach adopted by Heritage City Company Ltd. If unaddressed at this stage, it can lead
to major cost escalation, result in a poorly planned development for such a prestigious
and landmark project and finally become a major embarrassment for Government.

2. The site
The selection of the site for the Heritage City project is a key issue that needs to be
carefully analyzed. The site chosen lies between 2 rivers and is adjacent to the Bagatelle
Dam under construction. To give access to the site, land will need to be compulsory
acquired, though SLDC owns over 2000 acres of land. Land will need to be acquired for
water supply and sewerage disposal.
The site slopes from 367m in the East to 296m in the East, which is a 71m drop. This will
require significant cuts and fills and will have incidence on the cost of the project.
Furthermore, storm water management could be a serious issue if these aspects are not
properly considered. The proximity of Bagatelle Dam is another issue that needs to be
closely looked into when dealing with storm water management. Overflow can create
serious flooding issues if the storm water management plans are not properly designed
and engineered.
Surprisingly, the concept engineering plan clearly specifies that:
i.

River flood levels are not available, and therefore a free outfall is assumed; and

ii.

Flooding due to potential failure of the dam is not accounted in the design.

Page | 2

We would have assumed that such basic characteristics and prevalent conditions of
the site would have been taken on board before formulating advice to Government on
the suitability and relevance of the site for such a landmark development.

In addition, it is important to underscore the concerns associated with the current master
plan of the Heritage City Project. These include the limitations associated with scope of
integration with other developments such as the Highlands Smart City, the risk of
flooding owing to the topography of the current site identified and proximity of Bagatelle
Dam, the extensive offsite road works associated with the current site as well as costs
associated with land acquisition to allow accessibility. These are morefully described
below.
(a) The layout of Heritage City is more inward looking rather than outward looking
which is better suited for a site with Government Services. It means that it eliminates
any linkages with other developments such as the Highlands City development. The
master planner also advised that the site is enclaved by rivers Cascade and Terre
Rouge and the Bagatelle Dam acts like a man made barrier making integration into
Page | 3

the larger Highlands City precinct difficult. It is the view of the masterplanners that
Heritage City at its current location will function as an island site with an autonomous
self-contained character rather than as a government/civic component of the larger
Highlands Smart City development.
(b) Risk of flooding due to Bagatelle Dam exists. The risk can only be quantified through
a comprehensive risk assessment of the dam design and construction. Mauritius has
no prescribed guidelines on dam and/or dam spillway sizing with regards to Probable
Maximum Flood (PMF) or Regional Maximum Flood (RMF). The guidelines of
South African National Committee on Large Dams (SANCOLD) are usually relied
upon for fixing such design criteria and only a detailed review of the design of the
dam can conclude if the possibility of having human settlements downstream of the
dam has been considered in the design process of the dam. There seem to be no
evidence of such a study having been commissioned for the development downstream
of the dam.

River

Heritage City Site

Bagatelle Dam
River

Page | 4

(c) The current location of the Heritage City will require extensive offsite works for
access to the site. The traffic level of service on the M1 motorway at Reduit from
traffic generated by Heritage City will considerably worsen and this will require
extensive infrastructure works to mitigate such traffic impact. In reply to the question
about locating the Heritage City at the location originally foreseen in the SLDC
masterplan for the New Administrative City next to Aurea development at
Highlands with frontage on the M3 (Ebene Verdun Terre Rouge Link Road), the
masterplanner and the traffic engineer have confirmed that this will be a better option
from a traffic impact perspective and will require less offsite infrastructure works.
The initial capital costs for offsite works at Highlands will also be considerably less
than at its currently planned location.

(d) The current location of the Heritage City will require land acquisition of private lands
for the construction of roads to access the site of Heritage City. No such acquisition is
foreseen if the Heritage City is constructed at Highlands, at the site of the originally
planned New Administrative City.

The Correspondence from SLDC and LUXCONSULT is at Annex 1.

Page | 5

The selection of site for the Heritage City project is questionable, taking into
consideration site grading, the 2 rivers bordering the site, and most importantly the
proximity with Bagatelle Dam.
The Conceptual Engineering Plans does not take into consideration any potential failure
of the dam.

Page | 6

3. Appointment of consultants for the project

The process for appointment of main consultants for the master planning and design of
the Heritage City project raises serious doubts as to whether the right process has been
followed. For a project of the scale, magnitude and scope of Heritage City (over 300
Arpents), the selection of the project team is critical to ensure the successful planning,
design and implementation of the project. It is critical to assess the credentials of the
project team members and past projects designed and implemented.
The project team should not be limited to master planners and engineers, but the
contributions of economists, financial analysts, quantity surveyors and other relevant
trades in the planning process are critical to evaluate the financial viability of the project.
In the case of the Heritage City, the process of hiring STREE Consulting as the principal
agent is completely opaque and dubious. Below is a sequence of events that induces
anyone to question whether the proper process of hiring the right consultants has been
followed:
1. On 12 February 2016, the Directors of Heritage City were informed that the services
of BDO were retained by the Ministry of Financial Services for the financial
modelling of the proposed Heritage City project and that BDO had submitted
proposals for a concept master plan for the project in collaboration with STREE
contracting, an engineering firm based in Dubai.
2. On 17 February 2016, BDO presented Saeed Ahmed Saeed, CEO of STREE to the
Board of Heritage City and BOO and STREE did a joint presentation of Heritage City
concept master plan.
3. On 4 March 2016, the Board was informed that pursuant to the High Powered
Committee recommendation, which was approved by Cabinet on 2 March 2016,
Government has agreed to procure the services of STREE for:
i. The detailed masterplan and engineering design for infrastructure works
ii. The government offices schematic design on a Government to Government
basis with the Government of Dubai.
4. STREE'S fee proposal is as follows:

Page | 7

i.

Detailed masterplan for 300 arpents and engineering - USD 1,840,000 (sent on
12 Feb 2016). This fee proposal had a list of major exclusions e.g. landscaping,
preparation of architectural guidelines, visuals etc. This was approved by the High
Powered Committee.

ii.

Fee for doing the detailed landscaping design (excluded from master planning
fee) - USD 1, 912, 000, which is more than their fee for doing the detailed
masterplan and engineering itself. Their fee for the detailed master plan and
detailed landscaping design altogether comes to 3,752, 000 in total. (Note:
LUXCONSULT has been appointed for the master planning and detailed
engineering design for SLDCs Highland Project, over 2000 Arpents of land,
for approximately USD 2 million).

iii.

Thereafter, STREE consulting has been sending several proposals for:

a. Schematic design for Government Offices USD 2.5m
b. Detailed design and preparation of tender documentation for Government
Offices
c. Detailed design of Parliament Building
d. Schematic Design for Townhomes and Villas
e. Detailed design and preparation of tender documentation for townhomes
and villas
f. Detailed design for Heritage Square and Mixed-Use Complex, including
interior design

iv.

Total fees quoted by STREE, including concept master plan, works out to
approximately USD 18,657,000 (MUR 664m), and the fees have major exclusions
such as site supervision and reimbursable expenses (flights, accommodations,
etc.)

v.

No local consultants are involved in the project and STREE has refused to enroll
any

Based on the above, there is no visibility on the professional fees that will be incurred on
the Heritage City Project.
Page | 8

Only STREEs fees is known to be nearly USD 19m. On top, there will be need to
include other professional fees for site supervision, project management, legal and notary
fees, survey fees, compulsory acquisition of land, finance costs and others.
Projects in the scale of Heritage City require multi-disciplinary skills. It is key that all the
trades are not allocated to the same consultant, otherwise there is no control on design
quality and costs.
It is imperative to confirm if a letter of engagement has already been awarded to STREE
consulting for the above services.

Page | 9

4. Project Cost
STREE has estimated the total project cost for Heritage City to be USD 800m and this
does not include major off-site works such as CEB sub-stations, water connection, access
road connecting Heritage City, compulsory acquisition of land.
STREE has no knowledge of the local context, be they in terms of planning and
constructions costs.
The feasibility of the project, including market analysis, cost, revenue expectations, and
financing are not clearly defined; not to say unknown.

5. Planning process
Planning is a highly iterative process whereby plans are designed, reviewed, redesigned
and validated by the client in line with the objectives and financial sustainability of the
project, before a plan is finalized and accepted.
A master planning process has 5 key stages, as illustrated in the below table:

Page | 10

Stages
1 Project
Definition
2 Analysis /
Site
Reconnaiss
ance

3 Conceptual
Masterplan
workshops

4 Preliminary
Master
Plan
Refinemen
t

Final
Illustration
Master
Plan

Physical Planning
Designation of prime consultants for the
project, including land planners,
architects, engineers, etc
Boundaries, Access and Views
Topography, slope, drainage
Vegetation Cover and Characteristics
Environment and Geological Features
Historical, Archaelogical & Cultural
attributes
Wind, temperature, rainfall, sun path, &
humidity
Zoning, land use, & permitting issues
Water, sewage,power, communications

Land use suitability and capacity studies of

gross area available for development
Site development diagram and density
studies
Preliminary Phasing Plans
Preliminary quantity take-offs relating to the
site infrastructure and special features
Review plans with planning authorities &
address comments
Refine masterplan and develop specific site
plans
Architects document architectural styles,
alternatives, and establish design criterial
Architectural massing studies are conducted
Engineers study soil suitability, water &
sewer, stormwater management & erosion
control, alternatives for water supply, waster
treatments, power supply, traffic impacts,
etc
Illustration of special characteristics of the
project
Detail location of facilities
o Residential
o Commercial
o Recreational
o Circulation Pattern (Vehicular
systems, parking, service areas,
trails, pedestrian systems)
Landmarks, Vistas, Historical Sites
Utilities & Maintenance (water supply,
sewage
treatment,
surface
water
management, electrical supply/distribution,
solid waste disposal)

Economic Planning
Economists, Financial Analyst

Review & inventory of existing market

conditions
Define target market and project elements
Identification & benchmarking of competing
and comparable projects, size, types, pricing,
etc
Specify development programme, product
types, and amenities
Timing of market support for various products

Work with planners to refine initial

programme
Preliminary development costs
Project revenues on early master plan concept
Alternative cash flow analysis (to derive the
highest and best use from the site)

Refinement of financial analysis

Review cash flows
Alternative development strategies

Detailed project parameters (mix of

components, pricing, etc)
Revised cash flow, costs and revenue
projections
Absorption sensitivities
Key cost variables
Documentation of market and financial
reports

Page | 11

Below is a list of fundamental questions that need to be answered to ascertain whether the
proper planning process was followed:
i.

Was there a project brief given to STREE consulting and who prepared the
project brief?

ii.

Was there a real estate market analysis carried out before defining the
components, notably the residential real estate, mixed use and commercial
components, to support the project brief?

iii.

Was there a proper site due diligence out prior to the master planning?

iv.

Were there design workshops held, and if yes, who formed part of the workshops?

v.

Were the financial aspects validated at each stage of design?

vi.

With whom STREE has been validating the plans at each stage of design?

In the case of the Heritage City project, there is no sign of the planning process being
diligently followed. it seems that the project has been purely consultant driven. As a
matter of fact, as at to date there is no management structure in place at the Heritage
Company Limited.
A project of this size, scope and magnitude requires that the process of the concept
and design plans are adopted in line with normal international standard. There are
serious question marks currently on the methodology, approach, planning,
development and implementation processes adopted so far by Heritage City Co Ltd.
Fundamental aspects of master planning that such a development project warrants
have simply been omitted, ignored or under-evaluated. If these issues are not
addressed at the initial stage, it may seriously compromise the whole development.

Page | 12

6. The master plan

A preliminary analysis of the masterplan prepared by STREE Consulting reveals a
number of shortcomings, that are not deemed to be in line with sound urban planning
practices.
Below is a non-exhaustive list of 10 weaknesses found in the master plan:
i.

Syndrome of suburbia

The master plan, in its actual form, depicts a syndrome of suburbia type development,
which the new generation of urban planners are normally against. There is only one
square in a 336-acre development.
336 acres of development gives the opportunity of creating several squares if the quartermile rule is applied. Based on this rule, a 145ha development can easily yield around 3
squares. In this development, there is planned only one square within the elliptical zone.
In urban planning, if the street and walkways are well defined, they become excellent
open spaces. One should not rely solely on squares.
ii.

Land Parceling Plan Vs Master Plan

The plan looks like a land parceling plan, on which uses have been superimposed. The
ellipse looks to be at the centre of the attraction and the remaining seems to have been
given less importance.

Page | 13

iii.

Street networks

The network of streets is not properly defined in the master plan. This is an essential
component of a good master plan. In the conceptual engineering plan, I read that there
will be 8 types of streets:

A 32m, 6 lane entry boulevard from M2 to the Parliament House Speed limit
70km/hr

A 30m, 4 lane boulevard as the main peripheral Speed limit 40km/hr

12 to 16m local access roads Speed limit 30km/hr

The hierarchy of streets needs to be properly established and the circulation flow/pattern
defined, based on proper traffic impact assessments, the moreso that the project is almost
next to existing developments.
A proper network of streets should also show the interaction between vehicular and
pedestrian accesses. Nothing in this respect is shown in the masterplan, including
streetscapes.
Page | 14

Mixed-Use development is not only about having many uses in one developments. In
fact, in it more about how each use will be interacting with each other
The master plan does not show a proper vehicular and pedestrian circulation plan. The
pathways are not defined. All these are fundamental elements of a master plan. This
raises question on the process for approving the master plan.
iv.

Access to site

The masterplan and Concept Engineering Plans show 3 accesses to the development.
However, this is not supported by proper Traffic Impact Assessment; not only within the
project, but on the roads/highway to which the site will be connected.

v.

Floor Area Ratio (FAR)

Based on the figures provided, it can be seen that a Floor Area Ratio of around 0.5 is
derived for the project. This may not be the most efficient planning if this is the case.
According to urban planners, a walkable urban development should aim for an FAR in
the region of 1.5 to 3, and yet have many open spaces.
vi.

Parking

As per the master plan, 4 spaces are earmarked for parking spaces in the development. In
addition, provision is made for a single-storey basement parking under each building.
The masterplan, however, does not provide a detailed analysis of parking requirements
taking into consideration the carrying capacity of the master plan. If this is not done,
there is a possibility of ending up like Ebene City where poor parking provision has been
made and this generates an eyesore with reckless parking.
Page | 15

Furthermore, the geotechnical survey of the site was conducted much after the
conceptualization of the master plan. The results of the survey and the topography should
be considered, prior to finalizing the parking plans.
vii.

Architectural vernacular

Defining the Architectural style (or styles) is key in a master planning exercise. Nothing
as such is defined in the master plan. The scope of work of STREE, surprisingly,
excludes architectural coding.
This may lead to different design styles which may not be in harmony with each other.
viii.

Landmark and Vistas

The master plan gives no consideration to any landmark and vistas that could otherwise
have been possible. These are key elements in a development of this scale which, in fact,
give a sense of direction.
ix.

Sustainability natural lighting and ventilation

Unless done but not presented, there is no analysis and consideration given in the master
plan to sustainable development principles. Sustainability is not only about having green
spaces and renewable energy. It should be first and foremost embedded in the design,
such as natural lighting, natural ventilation, etc.
x.

Phasing

As planned, the 1st phase will have the Government buildings, private commercial
buildings (yet to be defined) and some residential components. The square will not be
developed and the retail mixed-use is not found in the first phase. The private commercial
spaces are yet to be defined.

Page | 16

It is important to know what will be the retail offerings, including retail F&B and retail
services, when the Government offices, parliament, convention centre, and residential
units are completed. Otherwise, users of Heritage City will be amidst a field, with not
access to retail facilities.
The above is a non-exhaustive list of planning issues found in the master plan, which
again raises question on the experience of the master planner and the planning process in
terms of review and validation.

In short, the current approach is flawed and revealed a total lack of expertise available to
lead such a project. Ideally, the development of such a project as Heritage City should
have adopted an integrated planning approach which is depicted below.

Methodology Integrated Planning Approach

Discussions with
stakeholders

Information collection
- Site location characteristics, existing
topography
- Site and neighborhood context
- Constraints

- Video conference
with international
city
planners/develope
rs

- Workshops
- Focus groups
- One to one
meetings

- Vision for the

development of
Highlands Project

- Project scope
- Definition of clear
objectives and goals
- Implementation
timeframe

Urban
design brief
Approval of cabinet
Funding

Appointment of
consultant
RFP for
Consultancy
services

Master Plan Process

Selection &
Appointment
process

Concept Plan

Draft Master
Plan

Public
Exhibition

Finalise
Masterplan

Approved
Master Plan

Development Model, Marketing and

Implementation

Page | 17

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, it is 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 detailed 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 governance, 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 a 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.
Page | 18

Page | 19

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. It is
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?

Page | 20

9. Concluding Remarks and Way Forward

It is to be reiterated that the aim of this report is not question Governments 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 a 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.

vi.

Review of the Master Plan with industry experts to assess the best location and
best use of the land.

vii.

Site selection

viii.

Uses and real estate mix

ix.

Architectural design criteria

x.

Phasing

Page | 21

xi.

Setting up the management structure of Heritage City Co Ltd 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.

Methodology Integrated Planning Approach

Discussions with
stakeholders

Information collection
- Site location characteristics, existing
topography
- Site and neighborhood context
- Constraints

- Video conference
with international
city
planners/develope
rs

- Workshops
- Focus groups
- One to one
meetings

- Vision for the

development of
Highlands Project

- Project scope
- Definition of clear
objectives and goals
- Implementation
timeframe

Urban
design brief
Approval of cabinet
Funding

Appointment of
consultant
RFP for
Consultancy
services

Master Plan Process

Selection &
Appointment
process

Concept Plan

Draft Master
Plan

Public
Exhibition

Finalise
Masterplan

Approved
Master Plan

Development Model, Marketing and

Implementation

Page | 22