THE COEGA PROJECT

1
THE COEGA PROJECT

• PRESENTATION TO THE
• SELECT COMMITTEE ON SOCIAL SERVICES
• 08 April 2003

2
FORMAT OF PRESENTATION

• History of the Coega Project
• Overview of CDCs Objectives
• Infrastructure Roll-out
• Socio Economic Impact
• Safety Health Environment
• Key Successes
• Future Programmes

3

• THE COEGA PROJECT
• Generic, colloquial name for new Industrial
  Development Zone and deepwater port located 20
  km from Port Elizabeth in Nelson Mandela Bay

4

• COEGA IDZ
• Vision
• A world-class Industrial Development Zone in
  South Africa, with purpose-built infrastructure
  and a deepwater port
• IDZ covers 12 000 hectares
• 6 400 hectares, first phase

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PORT OF NGQURHA Common Infrastructure Breakwate
rs, quays, dredging, navigational equipment
Cost of common infrastructure R2.4
billion Developer National Port Authority
6
CDC MANAGEMENT TEAM

• Diverse professional backgrounds
• International mega project experience
• Planning and engineering
• Project and construction management
• SHE management
• Human resource development
• Financial management
• Business development
• Legal

7
CDCs CORPORATE OBJECTIVES

• Advance Socio-Economic Upliftment and
  Transformation in EC
• Ensure Sustainable Economic Development
• Develop and Operate Competitive W/Class IDZ
• Ensure seamless Integration with Port and other
  parastatals

8
CDCs CORPORATE OBJECTIVES(Contd)

• Good Corporate Governance
• Ensure W/Class SHE practices in IDZ
• Promote positive national and international image
• Ensure positive Stakeholder Relations

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CDCs MEASURABLES TO ACHIEVE OBJECTIVES

• Job creation
• Promote Targeted Procurement
• SMME Opportunity Creation
• Attract investments into IDZ

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CDCs MEASURABLES TO ACHIEVE OBJECTIVES (Contd)

• Economic interaction between investors and local
  business
• Develop capacity
• Ensure environmental sustainability
• Implement robust risk management systems

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• SOCIO ECONOMIC IMPACTS

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LBMS System
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RECRUITMENT AGE DISTRIBUTION JOB SEEKERS
14
RECRUITMENT ContdPer Education
15
TRAINING Training per Race
16
Training per Age Group
17

TE
TRAINING Contd Training Courses
18
EMPLOYMENT BY GENDER
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EMPLOYMENT BY RACE
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Employment Contd Disabled Individuals
Seconded ZLA Labour
Total 1612 955
Disabled 1 2
of Total 0.06 0.21
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Recruitment per Age Group
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SMME DEVELOPMENTSupport Systems

• MONITORING
• Pre-award verification
• Monitoring of compliance
• SUPPORT SERVICES
• SMME Unit
• Construction Management Services
• Financial Institutions Interface

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SMME Development ServicesContd
24
SMME SUPPORT Contd Achievements
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Safety, Health Environment (SHE)

• World Best Practice
• SHE component in Zone Induction
• SHE Management Systems
• Health Safety OSHAS 18001
• Environment ISO 14001
• SHE Specifications
• Method Statements
• Health Safety Plans HIRA

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• SHE Contd
• Mentoring
• Developmental Conventional
• Legal Compliance
• Ongoing Monitoring and training
• HIV/AIDS Strategy
• Internal
• Policy, Programme Working Group
• External
• Addressed in tender documentation
• Awareness Training

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PROCUREMENT POLICY FRAMEWORK

• Constitution
• PPPFA
• King II

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PROCUREMENT SYSTEM

• Transparent process
• Fitness for purpose
• Value for money
• Economic Transformation Targetted Groups
• BEE Black Economic Empowerment Businesses in
  which historically disadvantaged individuals hold
  equity
• WEO Women Equity Ownership in which females
  hold equity
• ABE Affirmable Business Enterprises which can
  be classified as small, medium and micro
  enterprises in which historically disadvantaged
  individuals hold at least 51 equity and which is
  controlled and managed by them
• LEP Local Enterprise Participation which means
  businesses with permanent infrastructure in the
  NMMM
• HDIM Salaried Management Staff utilized during
  the performance of a contract.

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PROCUREMENT CHALLENGES

• Implementation
• Definition of Local
• Untransformed Industries
• Balancing expectations
• Public sector integration

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PROCUREMENT PROPORTION OF DIFFERENT CONTRACTS
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CONVENTIONAL CONTRACTS AWARDED
Conventional Contracts Qty
Number of Contracts 10
Number of Main Contractors 10
Number of Sub-contractors 92
Number of Contracts Completed 0
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EMPOWERMENT ACHIEVEMENTS
33
Empowerment Targets Contracted Rand Values
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KEY SUCCESSES

• Relocation of the Coega Community
• Empowerment Targets (Internal Ext)
• Auditor Generals Report
• Strategic Partnerships
• Positive Public Sentiments
• Environmental permits incl.ISO 14001
• Recruitment Retention of Staff
• Zone Port Labour Agreements

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FUTURE PROGRAMMES

• Infrastructure rollout
• Pechiney
• Targeted Focused Investment Promotion
• Certainty of Funding
• Smart Partnerships
• CDC Corporate objectives
• Internship Programme

36
THANK YOU