Nearly R5 billion for infrastructure in provincial budget. The Eastern Cape Government has allocated just under R5 billion for infrastructure in the 2012/13 budget tabled by Finance MEC Phumulo Masualle today. The allocation will increase to R5.7 billion by 2014/15. The bulk of the infrastructure allocations go to Education (R1 billion), Health (R1.2 billion) and Roads and Public Works (R2.5 billion). The departments of Health, Education and Public Works, he said, would spend R16.2 billion on infrastructure over the next three years. Masualle said that the province’s current efforts were geared “to strategically position the Eastern Cape at the core of the national economy”. Presenting a R56.2 billion budget, the MEC pointed to the “significant gains” that had already been made that included multi-billion Rand investment by Transnet in ports and rail infrastructure that would create 21 000 jobs, and oth-er initiatives by Eskom and South African National Roads Agency in the province.
R9.6 billion invested in the Coega IDZ. A total of R9.6 billion had been invested in the Coega Industrial Development Zone by the end of the 2010/11 financial year, Trade and Industry Minister Rob Davies has told the National Assembly. Replying to a written question, the Minister said by the end of the last financial year 12 investors had set up business in the IDZ and a further eight in the Nelson Mandela Bay Logistics Park creating a total of 27 412 jobs. The East London IDZ had secured 23 investors with a value of R1.5 billion creating 5 524 jobs. Davies said only one company had closed down its operations in the IDZ as at the end of the last financial year. Sea Ark, a company in the aquamarine sector had started a pilot project in shrimp production in 2007 for which a positive Record of Decision had been issued following an Environmental Impact Assessment.
The use of new technology from the USA had also been improved. Green light for 13-storey apartment block in summerstrand. Proposals requested for feasibility study on Apple express. The Mandela Bay Development Agency has issued a request for proposals for the conducting of a feasibility study on the “utilisation of the narrow gauge railway line (the Apple Express) between Humewood and Avontuur in the Western Cape”. The line is one of a number of branch lines throughout the country that is being considered for concessioning by Transnet Freight Rail as they no longer form part of its core business. The first concessions are expected to be announced shortly. A previous study that looked at the line in terms of its tourist potential as well as the possibilities with regard to a passenger and freight service concluded that operating the line would not be viable without a subsidy from the state.
METRO MINUTES is an electronic up-to-date daily newsletter (Monday to Friday) covering decisions taken by the Nelson Mandela Bay Council and its committees, in addition to business developments within the Metro and occasionally in other parts of the Eastern Cape. Buffalo City budgets R1 million for easter festival. R500 million cement production plant planned for Markman. Eastern Cape R4 billion roads grant. KWT mooted as site for cooperative development centre. 19 sites investigated for Umzimvubu water scheme. Bayworld to get R10 million in provincial budget. The Eastern Cape Department of Sport, Recreation, Arts and Culture is to make R10 million available in the next financial year for the “refurbishment and restoration” of Bayworld. The money will be used to fund the second phase of the programme, a medium-term intervention that will focus on “key infrastructure improvements, renovations and additions” to enhance the successful educational, scientific and conservation and tourism aspects of the facility.
This will include the revamping of the Snake Park and museum and further improvements “on the smaller footprint of the aquarium”. The third phase of the project that will involve a request for proposals from the private sector is “the redevelopment of Bayworld into a modern and world-class tourist attraction and flagship museum”. The R10 million will be allocated for: *Revitalisation of the Snake Park, that will include alterations to the enclosures and acquisition of animals, at a cost of R500 000.
Government looking at smaller refinery for Coega. A feasibility study is currently underway for a smaller-sized oil refinery that originally planned for the Coega Industrial Development Zone. The Budget Review, tabled with the National Budget yesterday, puts the cost of the original project that would have produced 360 000 b/p/d, including related infrastructure, at R200 billion. Dubbed Project Mthombo, the refinery is one of an estimated R3.2 trillion worth of projects that are at various stages of development.
PetroSA has stated that further studies are required to strengthen the business case for the project before a decision is taken to proceed with the Front End Engineering Design. METRO MINUTES is an electronic up-to-date daily newsletter (Monday to Friday) covering decisions taken by the Nelson Mandela Bay Council and its committees, in addition to business developments within the Metro and occasionally in other parts of the Eastern Cape. N2 resealing work to be completed by May this year. Political intervention to resolve Njoli Square challenges. Infrastructure, Engineering, Electricity and Energy portfolio chairman Andile Mfunda is to intervene to try and persuade seven property owners to agree to sell their properties so that the Njoli Square Development can get underway.
Mfunda confirmed this morning that he would be engaging with the property owners as there was an understandable reluctance to expropriate the properties. In addition, there is also a dispute over one erf that is registered in the name of the municipality but is used by a taxi organisation that states that it bought the property from the erstwhile Ibhayi City Council in 1993 for R15 631.00. A report to the Infrastructure, Engineering, Electricity and Energy Committee last week, said that in addition to resolving challenges around the “problem properties” immediate action was required to construct 11 alternative houses and relocate 21 backyard dwellers.
In addition, approval of the preliminary design was required and a start made to the detailed design. Optical fibre will produce more stable and secure electricity supply in NMB. The Infrastructure, Engineering and Energy Directorate is in the process of replacing copper pilot cables with optical fibre that it states will “produce a more stable and secure electricity supply”.
In a report to be presented at the Infrastructure, Engineering and Energy Committee meeting on Friday, the directorate states these copper pilot cables “are aging and nearing the end of their useful lives resulting in frequent faults”. In addition, sections of the cables are frequently stolen resulting in the disruption of communications and subsequent loss of supply. The report says that to date about 130 kilometres of underground optical fibre has been laid connecting some 35 sub-stations. Approximately 15 sub-stations have also been fitted with optical fibre disconnection control units (relays). These units control the disconnection of high voltage overhead lines or underground cables in the event of a fault on the line or the cable. Team in place to drive intergrated public transport system in NMB. A dedicated project team to run the Integrated Public Transport System will be in place by January next year at the latest. A report to the Infrastructure, Engineering and Energy Committee on Friday on spending of the directorate’s capital budget, states that the R200 million for post-World Cup projects could not be spent because of one of the taxi associations had obtained a court interdict that halted work.
The interdict was only lifted on October 6 with the result that only R2.4 million of the R200 million had been spent by the end of September. The projects include those connected with the Bus Rapid Transport system. The report shows that of the R984.7 million capital budget, the directorate had only spent R76.2 million, or 8% by the end of September. A further reason for the underspending was that Mayor Zanoxolo Wayile only signed off the ward-based budget on October 7. Intergrated NMB public transport system budget cut by R123million.
The initial budget for the Integrated Public Transport System for the current financial year has been cut by R125 million to R75 million as a result of delays in the implementation of the system. The Adjustments Budget reveals that the biggest cuts are for the Bus Rapid Transport System (R69 mil-lion) and Modal Interchanges (40 million). The projects are linked to funding provided for the 2010 World Cup. Other major changes in the Capital Budget are: *An additional R7 million for internal reticulation services for new housing projects *An increase of R11 million to R21 million for the development of waste disposal facilities *The provision of R6 million for Missionvale Bulk Sewerage Reticulation *An additional R7.3 million for the redevelopment of Njoli Square and R4.8 million for the Fountain Road Precinct redevelopment *R8.6 million less for Helenvale nodal and precinct development, *An additional R1.1 million for traffic calming measures.
NMB contractors will have to submit labour reports before being paid. The Infrastructure and Engineering Directorate has recommended that the payment certificates of consultants and contractors who do not attach a report on labour working on sites should not be processed. In a report to the Infrastructure, Engineering, Electricity and Energy Committee, the directorate says there is a need to set up “processes on how to collect local labour statistics created by all NMBM projects”. The report notes that on October 27 last year Council adopted the Expanded Public Works Programme (EPWP)/Socio-Economic Policy.
In terms of the policy all Council projects are subject to “labour-based design modalities to maximise local supplier development and maximise the absorption of labour”. The report points out that the second phases of the EPWP being implemented between 2009 and 2014 aims to create two million full time equivalent jobs. The data must then be reported to EPWP on a monthly basis. NMBM gets tough over fibre optic installation. The Municipality has warned telecommunications companies installing fibre optic cables in the Metro that unless they address issues relating to poor workmanship and non-compliance with policy, standards and legislation, it will request the Department of Labour to take action. In a letter dated December 15 to the MTN Contracts Manager for the installation, the Infrastructure and Engineering Directorate states that “very little progress” has been made in addressing the concerns expressed by the Metro.
Stating that the company will be held responsible for all costs associated with the rectification of work which “does not meet the municipality’s standards, even if such work is identified after the completion of the contract”, the Directorate singles out: *Fibre optic services not being laid within the 1 metre to 1.5 metre standard offset from the property boundary – this may have an impact on future road widening and installa-tion of municipal services.
Action plan outlined to promote NMB social housing. The Human Settlements Plan for Nelson Mandela Bay has proposed identifying derelict land and buildings in the inner city areas of Port Elizabeth, Uitenhage and Despatch that are “suitable for recycling” for social housing. The Plan was drawn up by Metro-plan as part of the process for achieving Accreditation Level 2. In terms of the plan, the Human Settlements Directorate must ensure that at least three sites are identified, approved by Council and project funding applications submitted for social housing each year and approximately 800 units delivered. In addition, it must allocate a rolling budget for feasibility studies of potential sites and approach National Government for funding to acquire land and buildings. The Directorate must also “advertise the municipality’s intention to acquire land and buildings in the inner city and thus attract land owners to offer their properties for redevelopment”.
UDDI plants to build on success of Despatch eco-hub. The Uitenhage, Despatch Development Initiative (UDDI) is planning to build on the success of the Despatch Eco Hub that has seen an illegal dump site in Khayamnandi transformed into “a sustainable job creation cluster, using the natural and waste resources in the surrounds”. A joint initiative with the Department of Economic Development, Environmental Affairs and Tourism, to date the Eco Hub has created more than 150 temporary jobs and 15 full-time jobs for local communities in clearing and cleaning and the setting up of the hub. The elements of the hub include: *a compost production area, a communal vegetable-in-a-tyre production area and a fruit and indigenous tree seedlings nursery, and *A tyre composting unit as an informal manufacturing venture where recycled tyres and wood are used to manufacture the units for composting and gardening.
The UDDI is looking to used plastics to manufacture a variety of fashion accessories such as bags and hats. NMBM housing demand projected to be 120 000 bt 2020. The demand for housing in Nelson Mandela Bay is expected to have increased to approximately 120 000 by the year 2020 and to have reached 140 000 ten years later. The Human Settlements Plan for Nelson Mandela Bay says in 2009 the municipality estimated the back-log to be approximately 84 266 units made up of 35 257 households living in informal settlements and 49 009 households in backyard shacks in existing formal areas. It says that these households were largely families with an income of less than R3 500. The backlog is estimated to be growing at a rate of approximately 6 000-7 000 households a year.
The estimated backlog of 84 266 does not include rectification of pre-1994 housing stock built as part of the pre-1993 National Rental Housing Stock, the site and service scheme under the Independent Development Trust and post-1994 housing subsidy scheme. Gap/Affordable housing market not being addressed in NMBM. The so-called GAP/Affordable segment of the housing market in Nelson Mandela Bay for people earning between R3 500 and R15 000 a month and require properties ranging in price from R80 000 to R306 000 was “still not being addressed”. The Human Settlements Plan drafted by Metroplan for the Human Settlements Directorate and completed in November last year states that the Metro is still focused on providing RDP houses costing less than R80 000 for low-income earners (R3 500 or less) The plan says that the Metro has lagged behind other metropolitan areas in housing development “for fully or partially bonded products and needs to ‘catch up’ to meet the needs of the emerging and unserviced middle class”.
The study, conducted for the MBDA, also revealed that there was a low vacancy rate as far as flats are con-cerned (3%), particularly in the Port Elizabeth CBD “and this was seen to indicate high demand for flat accommodation”. CDC to expand recruitment centre. NMB to introduce stormwater services development levy. Bitumen shortage hampers road resurfacing. SRA voting overwhelmingly positive. R4.4 billion required to meet 2014 housing and sanitation targets. R100.4 million spent on housing rectifcation programme. AGNI-steel on track to start operation at Coega in June. Chinese chamber chief says Eastern Cape a "go-to" location. Shipping giant casts net into Port Elizabeth. R4, 2 billion smelter to boost investment in Eastern Cape. Fashion adds colour to the world. Nelson Mandela Bay's optical fibre to produce more stable and secure electricity supply.
Waterfront not ruled out for Port Elizabeth. Government wants Coega refinery operating by end of 2019.