IDZs remain priortity for DTI

Ed Richardson
THE DEPARTMENT of Trade and Industry (DTI) says in its 2007 budget vote that its “infrastructure spending relates primarily to the critical infrastructure programme and the industrial development zones (IDZs)”. And, in order to encourage private sector partnerships, finance minister Trevor Manuel said a further R300 million would be allocated to the critical infrastructure programme to leverage private sector investment, especially into the industrial development zones. According to the department, R850 million has been spent on infrastructure development in the Coega IDZ, including water, sewers, electricity, facilities and services. In return for this investment to date, “11 796 people have been employed and three investors will be involved in the textiles, chemicals and automotive sectors with a total combined investment value of R3.2 billion.” A power supply deal has been signed between Alcan and Eskom for a 25-year period for an aluminium smelter. An estimated investment of R20 billion is expected for this smelter project, it says. The allocations to Coega will increase from R215 million in 2006/07 to R866 million in 2009/10, an average annual increase of 59.1%. An amount of R300 million has been made available in 2007/08 for constructing the Alcan aluminium smelter. Turning to the East London
IDZ, the DTI says “19 infrastructure projects have been undertaken with
a combined value of R220 million in the East London IDZ, including internal storm water systems, electrical power lines and underground electrical cables, fencing and walling, water and sewerages systems”. Two investors will put
R156 million into the IDZ and 380 jobs have been created so far. The East London IDZ received R188.2 million in 2006/07, which will increase to R251.1 million in 2009/10, an average annual increase of 10.1%. Basic infrastructure such as water and sewerage systems, telecoms and power lines “already exist in the Richard’s Bay IDZ,” according to the DTI. One foreign investor has already signed up and the first custom controlled area investor is to locate to the IDZ (Tata ferrochrome smelter). The value of the investment is R650 million. Richards Bay IDZ will receive R29.2 million in 2007/08, increasing over the MTEF period to R68.9 million in 2009/10.