THE COEGA Development Corporation says Eskom has not contacted it about proposed electricity rationing and investment delays due to the growing power crisis. If proposed investments in an aluminium foundry, steel works, a petroleum refinery, a chlorine plant, downstream plastics manufacturing and other projects materialise, the Coega Industrial Development Zone will be one of the biggest power users in Africa. Alcan’s proposed aluminium smelter on its own will require almost as much power as the Eastern Cape currently consumes. “We have not heard any official communiqué from Eskom or government asking CDC to stop taking up ‘big business’, says Coega Development Corporation spokesperson Ongama Mtimka. Cheap and plentiful power has been one of the main incentives offered by Coega to investors, and analysts are concerned that the likelihood of power cuts and price hikes over the next five to ten years will force potential tenants to look elsewhere. “We are watching developments around the availability of power closely as we have always done to make sure we provide a total business solution to investors. “The CDC remains committed to servicing its investors and will continue engaging all relevant stakeholders to provide necessary services to investors including power and other utility services,” he said.
