COEGA seeks international partner

18 Feb 2000 - By Staff reporter

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ED RICHARDSON

AFTER MORE than three years of trying to go it alone, the Coega Development Corporation (CDC) is looking for an international partner.
Following what it terms a number of unsolicited bids from private consortia, the CDC has advertised in South Africa and abroad for a private partner to join it in completing the development.
There is also renewed pressure to deliver. Coega's new anchor tenants are part of the contra conditions in the newly-signed arms procurement deal.
If the CDC cannot meet the deadlines set by the deal the investors - Ferrostaal, ABS/Danielle and Thyssen - will be forced to invest in developments elsewhere.
Given these critical timeframes, the solicitation of a partner with access to development capital and international industrial networks will ensure that the project comes on stream in the shortest possible time, says CDC chief executive officer Pepi Silinga.
The fresh approach is also in line with government's Public-Private Partnerships (PPP) policy for infrastructural investments, and follows calls for the Coega process to be privatised.
We have embarked on this process as we do not want the people in this province to go through another year of waiting for Coega, emphasises
Raymond Hartle, Communications Manager of the CDC. More importantly it is essential that we meet the time constraints as required by the investors.
We aim to open up the process to the international arena, while at the same time attracting serious players to the table, says Eugene Heeger, Technical Manager of Coega.
The players are going to have to be extremely serious. It will cost R10 000 to obtain a Soliciting Document from the CDC in Port Elizabeth.
It will cost a further R250 000 to submit a proposal to the CDC.
On conclusion of the evaluation process the winning bidder will have to pay a further R750 000 to the CDC.
All deposits are non-refundable, unless the CDC fails to appoint a private partner.
An indication of the urgency is the fact that the deadline for identifying a preferred private partner is March 7 this year.
Hartle says the CDC is not just looking at securing financial muscle.
The process is about entering into an arrangement with a suitable partner who has national and international networks in place and boasts the intellectual know how. Government is not a static administration. We aim to look at all opportunities available and establish a suitable flexible structure!
Silinga adds Establishing a legal commercial partnership with the private sector is an integral part of making Coega happen.
He says the CDC has been in discussion with Government and other stakeholders for some time in an effort to determine the most effective procurement option to ensure that the Coega Project becomes a reality.