CDC sees SoNA commitments as a way to continue developments in the Coega SEZ

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The Coega Development Corporation (CDC) reports that it is encouraged by the political interventions announced by the President Cyril Ramaphosa in his State of the Nation (SoNA) address on February 10, as these could help expand developments in the Coega Special Economic Zone (SEZ).

These interventions will unlock economic development for inclusive and sustainable growth, forming part of the economic reconstruction and recovery plan as a common program for rebuilding the economy.

The CDC adds that Ramaphosa’s interventions will accelerate structural reforms to modernize and transform industries, unlock investment, reduce costs, and increase competitiveness and growth.

As the developer and operator of the 9,003 ha Coega SEZ, unlocking investment is important to CDC’s sustainability.

To take advantage of so-called “big frontier” investment opportunities, the CDC is creating investment-ready platforms and recently announced major major investment projects that it believes will improve socio-economic development.

These projects include the R206 million Aquaculture Development Zone, which is part of the Provincial Ocean Economy Master Plan – a catalytic infrastructure project resulting from the stimulus fund for the development of the first 100 ha.

This project is expected to create 500 jobs in the construction sector, while approximately 5,600 operational jobs could be created through private sector investment over the next few years.

ENERGY PROJECTS

Developments in the energy sector were also welcomed by the CDC. This includes the development of 800MW of capacity under the Risk Mitigation Independent Power Producer Procurement Program (RMIPPPP), which is ready to start.

Some of these projects are proposed to be located in Coega. The Mulilo Total Coega project includes the construction and operation of a 200 MW gas-fired power plant in zone 13 of the Coega SEZ, using reciprocating engines to generate electricity.

The CDC says the 800MW RMIPPPP projects are expected to reach financial close by the end of March.

Together with the 342 MW Dedisa peaking power plant, the Coega SEZ compound will have a power generation capacity of approximately 1,000 MW, improving energy security and enhancing investor confidence in the SEZ .

On the liquid natural gas-to-electricity project — achieving 3,000 MW of gas-generated electricity under the 2019 Integrated Resource Plan — the CDC reports that progress is underway.

In this regard, the CDC has entered into a joint development agreement with the Central Energy Fund and Transnet, as well as through the Eastern Cape Provincial Economic Investment Stimulus Fund.

The CDC reports that it also carries out other enabling activities for the development of the gas sector.

In terms of renewable energy, the CDC reports that it is excited about Ramaphosa’s ventures into the sector, as the CDC focuses on solar and wind power generation as part of Coega SEZ’s transformation into a sustainable and resilient investment location for the future.

As such, the organization is in the process of rolling out a solar PV rooftop project in the Coega SEZ – a project that is currently at an advanced stage and will soon see the deployment of the first 5 MW of capacity.

The CDC also welcomes Ramaphosa’s comments on water security and highlights his efforts to address local water issues.

Water restrictions in the Nelson Mandela Bay Metropolitan Municipality (NMBM) are a critical factor influencing the attraction of investors.

The CDC explains that water desalination has been identified as an option to mitigate recurrent droughts to prevent water crises.

To that end, the CDC and NMBM have worked together over the past several years to develop a program that could increase the mixing of water in the NMBM with desalinated water.

As such, the CDC is working with its partners, including the NMBM, to deliver a desalination plant capable of delivering 15 million liters per day in zone 10 of the Coega SEZ.

INFRASTRUCTURE

The CDC reports that, in line with Ramaphosa’s infrastructure development commitments, it is creating “investment-ready” infrastructure in the Coega SEZ, which has enabled the growth of operational investors in more than 50 companies.

Recently, the CDC successfully completed the commissioning of investment projects, including a R362 million investment in the Seraphim solar cell manufacturing facility, a R180 million investment by African Port Logistics and Infrastructure and a R17.9 million investment by DHL and Mondelez. .

Additionally, the CDC points out that it is a “trusted implementer” in South Africa for complex mega-projects and is responsible for one of Gauteng’s largest projects – the Tshwane Automotive SEZ. , in which the Ford Motor Corporation of South Africa is investing more. greater than R15.8 billion.

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