Coega's IDZ investors will be named by the year-end

Top government official gives assurance that Coega is still on track

A HIGHLY-placed government official has made a special trip to Port Elizabeth to reassure local business that the Coega project is still on track.
Moss Ngoasheng, economic advisor to the office of deputy president Thabo Mbeki, held talks earlier this month with a special Coega business forum set up by the Port Elizabeth Regional Chamber of Commerce and Industry (Percci).
"Government has shown us that Coega is a priority," says Percci ceo Alfred da Costa. The CDC, or Coega Development Corporation, will replace the present Coega Implementation Authority. Another sign that Coega is getting back on track is that the board has advertised for a public relations consultancy.
With the Billiton refinery stalled until a new technology partner is found the best hope for an early start to building in the Coega Industrial Development Zone lies with the defence counter-trade deal, according to da Costa.
"Moss Ngoasheng has assured us that the government is pursuing this option. Negotiations should be completed by the end of the year and by then we will all have a good idea as to which investors will be coming to the IDZ," he says.
Ngoasheng, who specially flew down to Port Elizabeth to meet with business, is upbeat about the project's future.
"We have already completed the first round of negotiations with investors. We have indicated to them which issues we may not be happy with and where they can firm up in this regard. "This leads us to believe that by the middle of the year we should have firm offers of investment and commitment from the relevant anchor tenants," he says.
The likely scenario of the military counter-trade deal, is that a metallurgical cluster will be established at Coega.
This cluster will include stainless steel factories, iron and steel plants and other metallurgical industries. Other smaller projects are also likely to be included in the deal says Ngoasheng.
"The Ministry of Trade and Industry is working hard to make sure Coega happens. The budget is there with the necessary working capital already being put aside for the project," he says.
Portnet will proceed with the construction of the port once it has customers.
By Ed Richardson