Radebe awards three Coega tenders

Ed Richardson PUBLIC AFFAIRS minister Jeff Radebe has stepped in to fast-track the Coega port development by awarding tenders worth over R2-billion for the construction of the deep-water harbour. The first ship is expected to call in September 2004 Ð 516 years after Portuguese explorer Bartholomew Diaz sailed into Algoa Bay and anchored off St Croix Island near the mouth of the Coega River. Speaking during a briefing after cabinet had approved the tenders, Radebe told the media that the first phase of port construction had been given to three consortia. The contract includes breakwaters, earthworks and the construction of quay walls to accommodate five berths consisting of one for liquid bulk, two for dry bulk, and two for containers, as well as nominated contracts for dredging and the construction of a sand bypass system. All three consortia include a minimum of 30 black empowerment partners, with some R571-million worth of work going to empowerment companies, he said. Radebe's announcement follows criticism of the National Ports Authority (NPA), which announced earlier this month that the contracts for the port would only be awarded on August 24. Port Elizabeth Regional Chamber of Commerce and Industry (Percci) ceo Alfred da Costa described the NPA announcement as "not good enough". Radebe had earlier called on the NPA to speed up delivery on the Coega port during the presentation of Transnet's budget. His awarding of the tenders means that construction should start within the next two months. NPA project head for the Port of Ngqura Development, Kgoadi Malatse, earlier told the media that earthworks would begin four to six weeks after the awarding of the tender. Confirmation of tender and construction dates will boost investor confidence in the Coega Industrial Development Zone (IDZ), which will be served by the new harbour. One of the biggest potential investments to date is a R16-billion aluminium smelter by French group, Aluminium Pechiney, which is currently conducting viability studies at Coega. Another potential investor which recently expressed an interest in the Coega IDZ zone is India's steel giant Tata Iron & Steel which plans to establish a R600-million worth ferrochrome plant in South Africa.