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Preferred partner for Coega project
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Speeches and Media Releases
 Premier's Office

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 EASTERN CAPE PROVINCIAL GOVERNMENT
 STATEMENT BY THE PREMIER  MAKHENKESI STOFILE,
 REGARDING A PREFERRED PRIVATE PARTNER FOR THE COEGA PROJECT
 13 APRIL 2000


The extent to which South Africa can create sustainable jobs is crucial to our ability as a nation to work towards a better life for all 
citizens.

Government's macro-economic policy has job-creation as a primary objective, identifying opportunities for resurgent economic activity 
centred on various industrial sectors in geographically-defined Spatial Development Initiatives.

Hence the Coega Industrial Development Zone initiative aims to position South Africa and, particularly, the Eastern Cape, as a destination 
for investment in manufacturing infrastructure intended to produce goods for export.

Government has been committed to the Coega Project since it was first formally mooted in 1996 and two years ago took over full 
responsibility for implementing the project.

Apart from setting in place an enabling legislative and regulatory framework to attract investment, Government has played the role, through 
national and provincial departments, other agencies and the Coega Development Corporation, of being a catalyst for the initiative to 
happen.

There has been legitimate concern in many quarters about the perceived tardiness with which the project - and its prospects for huge job-
creation in the Eastern Cape and elsewhere - was moving forward.

For this reason, Government mandated the Coega Development Corporation to identify those strategies which could ensure implementation of 
the Coega Project in the shortest possible timeframe.

The Coega Development Corporation's response was to embark on an international solicitation for a Private Partner which has the financial 
strength and existing or potential sources of funding or infrastructural capital to develop aspects of the Coega Project.

The prospective Private Partner also had to provide evidence of investment opportunities they could leverage over and above the offset 
investments identified by Government through the Defence Procurement Programme. In addition, Government was concerned that those bidding to 
partner the Coega Development Corporation had an established track record in rolling out similar projects in other parts of the world.

The Coega Development Corporation subjected the qualifying submissions received from international consortia to a painstaking adjudication 
process and a recommendation was made to Government.

Government is able to confirm today, that it has accepted the Coega Development Corporation's recommendation that an Anglo-Dutch consortium 
comprising P & O Nedlloyd and TCI be appointed as the Preferred Private Partner for the project.

In addition, Government is pleased to announce that the Board of Transnet has agreed that the Coega Port, which is an integral part of the 
Coega Industrial Development Zone, will be developed by Portnet.

The Preferred Private Partner's proposal includes the development of a container terminal and trans-shipment hub in the Coega Port, 
together with an industrial park, logistics centre and electronic commerce (e-commerce) business park.

Portnet's investment of R1,5 billion will include developing the common infrastructure for the Coega deepwater port such as the 
breakwaters, quay walls, navigational instruments and all other elements necessary to discharge the functions of a port authority in 
accordance with international best practice.

Portnet's commitment to the project confirms the Coega Port's strategic significance within South Africa's overall marine infrastructure 
and its critical role in industrial development.

Government has a plan for the economic development of our country.

Government has a plan to protect and create jobs.

Government has a plan for the successful implementation of the Coega Project, which can start the economic regeneration of our historically 
under-developed province.

There is still much hard work which lies ahead, but the commitment which has brought us to this point, should be a pointer to what is 
required for this project to begin to make a difference in the lives of ordinary people.

The details of the Private Partner arrangement and Portnet's development of the Coega deepwater port will be provided later today and in 
the weeks ahead.

I would like to thank all our colleagues in national Government for the support they have shown for our persistence in seeking a speedier 
implementation of the Coega Project.

And, in particular, I would like to congratulate the Coega Development Corporation in its achievement in taking the Coega Project far down 
the road, compared to where we have come from. We are encouraged by the fact that the Coega Development Corporation has developed the 
requisite capacity to ensure the successful implementation of the Coega Project.

I will now hand over to the representatives of the Coega Development Corporation management who will join MEC Godongwana and I in answering 
your questions.

Thank you

Ends

For further information, contact Raymond Hartle, communications manager for the CDC, at telephone 041-5079111 or 0836566808 or on fax 
5855445 or email  hartler@coega.co.za.

Issued by the Coega Development Corporation, Libra Chambers, corner of Oakworth Road and Carnarvon Place, Humerail, Port Elizabeth.


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