CHAPTER 1 INTRODUCTION

CHAPTER 1 INTRODUCTION 1.1 Project Background Hermes Properties Ltd, hereinafter referred to as the project promoter or Smart City Company, is a duly registered private company in Mauritius. It has been founded by a group of local investors. The promoter is proposing the construction of a mixed-use development under the Smart City Scheme at Trianon, currently known as Trianon City. The site owned by the promoter aggregates a total of 84 A 36.36 P or 356, 087.79 m 2. The motorway M3 crosses the property such that the promoter finds itself with two main portions land. The land referred to as the Lots I, II, III and V on the location plan in figure 1 overleaf, is defined as the project site for this landmark undertaking. The site is adjacent to the Port Louis Plaisance (M1) motorway.access to and from the site would be via the M1 with another connectivity on the M3 motorway. The site is located just opposite the Ebene Cybercity. In the near future the Heritage City, a Government owned project, would be implemented in its immediate vicinity. A location plan and a site plan are enclosed in ANNEX 1. 1

Lot III & Lot V Site Lot II Lot I Figure 1: Site Location 2

Unlike a conventional residential or commercial development, the proposed undertaking is conceived as a self-contained city that would basically consist of all features contained in the general framework for Smart City Development. The general planning of the proposed development rests on a mixed-use concept which offers a range of essential business and social components harmoniously packaged that sets the benchmark for future Smart Cities developments. A cluster approach has been devised in order to incorporate the essential functional units. The broad components of the proposed undertaking are mainly:- (a) (b) (c) (d) (e) (f) (g) (h) Office blocks, including Technology & Innovation office Residential units Commercial Business hotel Retail, commercial and office Mixed-use (inter-alia Commercial, medical, educational, office, residential and Technology & Innovation) Sports Club and Jogging track State of the art infrastructural components and landscaping Each cluster would be contained within a quarter. One of the core aspirations of the project is to provide a unique strategy for a mixed-use development that would be designed and implemented in phases. In that context a grid system has been conceived which provides a seamless connectivity across the site and that would ensure fluidity from one quarter to another. A masterplan showing the overall features is enclosed in ANNEX 2. Hermes Properties Ltd will act as the strategic master developer of Trianon City and undertakes to carry out the conceptualisation, planning, marketing and development of the land. Trianon City will be Tailored to the Mauritian market. The project promoter is targeting foreign and local investors to be partners of the project. The project promoter will target buyers mainly from Mauritius, Europe and other countries such as South Africa, China and India. Moreover, people buying the residences would have the option of renting it to third parties when they are not occupying it. This would be facilitated by a Smart City Management Company who will act as an administrative body. The promoter has spared no efforts in setting up a team of professionals, both local and abroad that have been assigned the duty to design and supervise the project in accordance with the requirements of the developers as well as the local authorities. 3

This project would have significant positive impact in terms of the much needed direct investment. It is estimated that this project would provide up to 7,500 direct and indirect job opportunities during the operation phase. Direct job opportunities would accrue from the various business and commercial centres; the tenants of the office complexes, shops and food courts among others. There would also be the creation of indirect jobs at all stages of the implementation of this project. Apart from low-skills jobs and trades, the indirect services such as suppliers, import agencies, cleaning agencies, security services, landscape maintenance agencies, sports and fitness coaches, pharmaceutical products suppliers, waste collection and disposal agencies, events makers among a lot of others, would be created. 1.2 Aims and Objectives The project promoter aims at setting up a Smart City that is currently known as Trianon City. This project aims at creating a self-contained city set to become a prime business, commercial, retail, leisure and residential address. Trianon City would have high rise residential buildings in the form of apartments that would be sold to local residents and noncitizens as allowed under the Smart City Scheme. Besides the business, commercial, retail and residential components, Trianon City would offer facilities in the education, technology & innovation and in the medical sectors. This goal will be performed in line with the following objectives: (a) Selection of material and infrastructures appropriate for the small island setting. (b) The design philosophy is to use the best available technologies. Each quarter will have its own scale, architectural character and language. (c) Scrupulous practice regarding the day-to-day management services such as security, maintenance, gardening and household services. (d) Good environment practices such as smart wastewater, energy and solid waste management including maintenance of landscaped environment and the use of green technologies such as rainwater harvesting, solar water heaters, solar panels and energy efficient devices e.g. air conditioning units. (e) Digital platform and technologies, e.g, mobile and wireless cloud for city-wide connectivity and e-services. (f) Best educational institutions. (g) State-of-the art medical services. (h) Good sanitary practices, healthy food, restaurants that meet the HACCP criteria and services that exceed the satisfaction of clients. 4

(i) Enhanced safety and security to end users. 1.3 Brief on project proponent The project promoter is recognised legally as Hermes Properties Ltd (HPL), a company that has been incorporated on 18 September 2012. A Certificate of Incorporation is provided in ANNEX 3. The Business Registration Card of the latter is also enclosed in ANNEX 3. Hermes Properties Ltd is a member of Chantier de Plaisance, a company involved in the building materials, property investment and development businesses since 1977. Chantier de Plaisance is owned and managed by the Wong Chin family, with Mr Ah Soo Sen Wong Chin as the Chairman and Mr Laval Wong Chin as the Managing Director. The promoters are known in the construction industry as reliable building materials suppliers. HPL will form strategic alliance with local and foreign partners and investors to participate in the development through equity and SPV partnerships. The promoter has also engaged the services of leading professionals in the designs of the project, its marketing and its administration at all stages of the implementation. HPL will also appoint key professionals to execute and manage the project. The proposed project site for the construction of the Smart City is a freehold land that belongs to HPL and which was purchased from Trianon Estates Ltd and Alteo Ltd. The following documents are enclosed in ANNEX 4: (a) Proof of ownership of land (b) A copy of Notice for land acquisition by State of Mauritius for Portion no.1 (PIN 1721660235) dated 3 rd June 2013. (c) A copy of Notice for land acquisition by State of Mauritius for Portion no.2 (PIN 1721660232) dated 3 rd June 2013. The promoter now intends to construct on the site a Smart City as explicitly defined in the Smart City Scheme Guidelines and the Regulations made under the Investment Promotion Act (Sections 12 and 28). Other similar Smart Cities have been proposed to the Government by different promoters and hence the proposed undertaking would be among the pioneers for this type of mixed-use development. 5

1.3.1 Particulars of the Promoter and Consultants The promoter has entrusted the services of the following professionals to carry out the proposed project:- Table 1: Project Team Promoter Hermes Properties Ltd Suite 107 Ebene junction Ebene T: +230 466 3088 E: info@hermesprop.com Project Manager and Civil/Structural Engineer Mechanical & Electrical Engineer Quantity Surveyor EIA consultant Limbada & Limbada Consulting Engineers Ltd 16 Conal Street Beau Bassin T: +230 454 7566 F: +230 464 4402 E: limbaba@intnet.mu Merits Consulting Engineers Ltd 4 Barkly Asylum Street Beau Bassin T: +230 467 7119 E: contact@merits.mu Matrix Project Services Ltd 18 Meldrum Street Beau Bassin T : +230 5950 3654 E : admin@matrix.mu VYYAASS Consulting Engineer Ltd 2 nd Floor Diva Building 26, Brabant Street Port Louis T: +(230) 212 1757 F : +(230) 208 4551 E: dagonig@intnet.mu / environment.vyyassconsulting@orange.mu 1.4 Project justification Mauritius which is already a well-established and popular tourism destination is now faced with an increasing demand from non-citizens to purchase residential properties on the 6

island. The Government has also set up new incentives and strategies that would change Mauritius to an International Financial Centre where business would occur in all transparency. The opening of an air corridor is yet another initiative that would position Mauritius as the hydraulic arm between Asia and Africa. All these initiatives would generate and promote commutation of people along with their businesses in a regional context. The Smart City Scheme was presented under the Investment Promotion Act and Investment Promotion (Smart City Scheme) Regulations 2015- GN Notice 128 of 2015. Under this scheme, landowners or developers owning at least 50A (21.105 ha) are permitted to develop and sell any mixed-use project with components adhering to the live, work and play concept to citizens of Mauritius, non-citizens and members of the Mauritian Diaspora. The uniqueness of this type of development is that its implementation is monitored at the highest level of Government and through the Investment Project Fast Track Committee which guarantees fast processing of applications in relation to permits, licences or authorisation for projects complying with the scheme. The Smart City type of development is gaining momentum in Mauritius and 15 similar types of projects have already been presented to Government. The Board of Investment (BOI) has prepared a set of guidelines that assist future developers and land owners in dealing with such type of projects. The BOI has carried out several missions overseas and conducted high level interactions with potential investors in order to motivate them to set up businesses within the context of Smart Cities that would work and live in this type of development in Mauritius. The BOI is also a member of the Investment Project Fast Track Committee IPFTC and has all the latitude to expedite the approval process. Government has also earmarked a budget to the tune of MUR 52 Billion to revamp Port Louis into a Smart City. There is Government intention to move their offices from Port Louis and re-locate at Heritage City in the region of Trianon/Ebene hence this present undertaking fits the above context. Apart from converting Port Louis into a Smart City there is a planned strategy to transformport Louis into a modern port hub and this would span between the GRNW estuary and the Baie du Tombeau. More importance would be provided to transform the capital city into the most important port in the region and bridging South East Asia to Africa. The projects such as Fishing Port, Oil Tank Farms, extension of the container terminal and new container handling equipment (portiques) are vivid examples that Government is taking in the delocalisation process. 7

Government themselves are relocating the House of Parliament from Port Louis to the Heritage City. This new ambitious project would be implemented over a site adjacent to the existing one (as shown in the land use map) and have a similarity in terms of master planning and functionality. Therefore the present undertaking has all the merits to be implemented in that area. The site, by virtue of its location next to Ebene Cybercity, is positioned in the centre of the island, with ease of connectivity to the existing road network. Trianon City will be the natural extension of the Ebene Cybercity and will further contribute to the development of the latter in its role as a financial and technological hub. Trianon City will also offer proximity with nearby public and private schools and universities as well as hospitals and clinics. Traffic congestion has remained a major problem to be solved despite the implementation of the projects earmarked in the National Decongestion Programme. Studies have shown that delays in attending work have serious financial implications apart from stress on road users. Therefore new alternative means of reducing travel time of workers need to be encouraged. This present project responds to that need by offering work place next door to residences or through short walking distance. Hermes Properties Ltd will develop a prime site of about 343,823.78 m 2. The proposed Trianon City project meets with the requirement for the development of a Smart City. The selected land exceeds the minimum extent of land required for this type of development. Trianon City will provide a quality living and modern environment that would promote livability, safety, security and sustainability. Upon its completion, Trianon City is set to attract business and talent in Mauritius. A number of facilities will thus be offered; a mobile and wireless cloud for a city-wide connectivity, smart waste and energy management as well as e-services. The proponent has already presented the project to the BOI. The proposed project has been designed in line with the government policy that aims at attracting more foreign direct investments to the country. The Trianon City project is estimated to generate a gross development value of MUR 17 Billion over the next 12 years. FDI would come through businesses, namely, financial services companies, multinational companies, local corporates, technology companies and support businesses and residential units. Moreover, Trianon City will focus on the creation of jobs and it is projected that 7,500 jobs will be directly and indirectly created during its implementation. Therefore the proposed Smart City is the infrastructure that would allow those businesses to be implemented. The setup of the pristine physical environment of the site, makes it 8

conducive to the intended project. The development promises many direct and tangible social and economic gains for the country. 1.4.1 Environment Impact Assessment A Smart City development is not a scheduled undertaking in accordance with sub-section 18 of the First Schedule Part B Regulation 3 section 15(2) of the Environment Protection (Amendment of Schedule) Regulations 2006. However, with regard to its scale and by virtue of the inherent requirement of the Smart City Guidelines an Environment Impact Assessment (EIA) licence is mandatory. Moreover, the Ministry of Environment, Sustainable Development, Disaster and Beach Management has informed the proponent that an EIA has to be prepared and submitted to the Ministry. The project promoter has commissioned Messrs. VYYAASS Consulting Engineer Ltd to prepare and submit an EIA to the Ministry of Environment, Sustainable Development, Disaster and Beach Management. The report has been prepared according to the guidelines set by Department of Environment on EIA s and portrays an assessment that encompasses the evaluation of the environmental impacts and the proposed mitigating measures to be implemented. Besides the EIA component the Consultant carried out a Social Impact Assessment (SIA) as expressly required by the BOI. The SIA forms an integral part of the EIA. 9