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

These interventions will unlock economic development for inclusive growth and sustainability, forming part of the Economic Reconstruction and Recovery Plan as a common programme to rebuild the economy.

The CDC adds that Ramaphosa’s interventions will accelerate structural reforms to modernise 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 for the sustainability of the CDC.

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

These projects include the R206-million aquaculture development zone, which is part of the Provincial Oceans 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 construction jobs, while an estimated 5 600 operational jobs could be realised as private sector investments are made over the next few years.

ENERGY PROJECTS

Developments in the energy sector have also been welcomed by the CDC. This includes the development of 800 MW of capacity under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) which is ready to proceed.

Some of these projects are proposed to be located at Coega. The Mulilo Total Coega project entails the construction and operation of a 200 MW gas-powered station in Zone 13 of the Coega SEZ, using reciprocating engines to generate electricity.

The CDC states that the 800 MW of 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 precinct will have about 1 000 MW power generation capacity, thereby improving energy security and boosting investor confidence in the SEZ.

Regarding the liquid natural gas-to-power project – realising 3 000 MW of gas-generated power as per the Integrated Resource Plan of 2019 – the CDC reports that progress is being made.

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

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

In terms of renewable energy, the CDC reports that it is enthused by Ramaphosa’s undertakings in the sector, as the CDC is focusing on solar and wind energy generation as part of making the Coega SEZ a sustainable and future-resilient investment location.

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

The CDC also welcomes Ramaphosa’s comments on water security, and points out its endeavours to address local water issues.

Water restrictions in Nelson Mandela Bay metropolitan municipality (NMBM) is a critical factor influencing investor attraction.

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

To this end, the CDC and the NMBM have worked together over the past few years to develop a programme that could augment the water mix 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 litres a 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 to more than 50 companies.

Recently, the CDC successfully completed the commissioning of investment projects which include a R362-million investment into the Seraphim – Solar Cell Manufacturing facility, an R180-million investment by African Port Logistics and Infrastructure and a R17.9-million investment by DHL and Mondelez.

Further, the CDC points out that it is a “trusted implementing agent” in South Africa for complex megaprojects and is responsible for one of the biggest projects in Gauteng – the Tshwane Automotive SEZ, in which the Ford Motor Corporation of South Africa is investing more than R15.8-billion.