Russian deal pumps up Coega confidence

CDC optimistic about signing 10 investors by year end ED RICHARDSON THE RECENT signing of a memorandum of understanding with a Russian company, Renova, for the building of a ferro-alloy plant at the Coega IDZ affirms the growing confidence among investors in its suitability as an investment location, says spokesperson Vuyelwa Qinga-Vika. In order to feed the Renova plant, the line between the Northern Cape and the Coega IDZ will need to be upgraded. This will support transportation logistics and access to markets for other tenants in the zone, she says. In addition to the R2 billion invested in the development of the Coega IDZ, a further R350 million is expected to be spent in enabling and investor-required infrastructure for the current financial year. The infrastructure construction includes the second tier of bulk services in strategic zones which will improve the operational readiness of the Coega IDZ. gAll investor facilities would be serviceable within six months of the construction period by the end of 2007,h says Qinga-Vika. This means that investors will be able to start operations immediately after the construction of superstructures. The second phase of the upgrading of the N2 from the Coega area towards East London, and road linkages between the Coega IDZ zones as well as the deepwater port of Ngqura, including a Coega River bridge project, are currently under way. According to Qinga-Vika, the recent developments in infrastructure will further reduce the costs of doing business in Coega for any potential investor. Government recently announced a further R2.5 billion investment in phase two of the development of the Port of Ngqura, which is expected to be fully operational with the docking of the first ship in 2008. Information systems are also being installed in the zone. As part of its safety campaign, the CDC has installed a state-of-the-art IP-based Surveillance Camera System in the Coega IDZ with mechanisms, processes and technologies that will ensure that the facility provides investors with world-class telecommunications and security systems that are a requirement in global trade. With regard to tenant facilities, construction of various manufacturing facilities is currently under way and, after fierce competition, a tenant has been secured for the site initially constructed for a textiles investor whose project ran aground. Various investment projects are at EIA stages. The Ferrostaal-backed stainless steel precision strip mill recently got its environmental green light, while EIAs for Cerebos and two other projects - which are still in confidential stages until the investors move on site - are pending. All indications are that the CDC will reach its ambitious target of signing 10 investors from its list of 14 accelerated projects by the end of the current financial year. Four investments have been signed thus far while two others will be signed shortly. A number of them are still due to be announced to the public. Investments signed by CDC: œ R85-m in expansion and relocation project by Cerebos œ R1.1bn in chlorine and water desalination plants œ R1.6bn in steel precision strip mill œ Alcan to decide shortly on R14bn smelter