The designation of the East London Industrial Development Zone (IDZ) is expected to be made early this month.
The East London Development Zone Corporation (ELDZC), the IDZ implementing agent, is currently canvassing joint venture equity and operation partners.
In addition, expressions of interest from engineering companies are soon to be called for with a view to undertaking the detailed engineering design for infrastructure.
Proposals will be called for and possible service providers will be evaluated and shortlisted.
Once the design is completed, earthworks for phase 1A and 1B will begin, involving R270- million-worth of infrastructure development, including internal services to the tune of R165-million.
Investments of R400-million have been con cluded for phase one of the IDZ, and earthworks and site clearing are currently under way for two manufacturers.
Phase one comprises a 20 ha site which already has services, whereas phases 1A and 1B are large sites that still need basic services to be installed.
Phase 1A, a 250 ha site, is due to become the duty-free area, while phase 1B is earmarked for a 110 ha open-industrial park.
While the ELDZC is disappointed at the fact that designation of the IDZ is now only expected to take place this month, CEO Peter Miles adds that there is no doubt that progress is being made.
The Department of Trade and Industry project manager Thapelo Makheta has coordinated all the responses to the designation public opinion process and had been supplied with further motivation for designation.
This has been put before the DTI's Manufacturing Development Programme Board (MDPB) which has taken a decision on designation and made a recommendation to Trade and Industry Minister Alec Erwin who, after due consideration, will take a proposal to cabinet for approval, following which the East London IDZ designation will be gazetted.
The MDPB decision was made at the board's meeting in January and an announcement is expected from Erwin early this month.
On designation the ELDZC will apply for a one- year provisional operators licence.
Miles says that, if the ELDZC obtains the provisional operator's licence, it will aspire to apply for and obtain the full operator's licence within the first year.
Importantly the transfer of all the land falling within the IDZ is in its final stages.
This process has been relatively smooth as there is no private land within the bounds of the IDZ.
'This is a major advantage to us,' states Miles.
In the interests of development in the region, the land has been made available to the ELDZC by the municipality at a reasonable rate, which means that the sale or lease prices will be very attractive.
This sets the East London IDZ apart from other IDZ initiatives in South Africa states Miles.
The ELDZC has identified 42 projects for the IDZ and, of these, 12 pre-feasibility studies have been completed.
Projects identified include motor component manufacturing, optical fibre manufacturing, auto glass manufacturing, metal press stamping, aluminium and magnesium high-pressure moulding, pharmaceuticals, ceramics, wood products and textiles.
An agreement on the package of local incentives that will be offered by the ELDZC is expected to be finalised shortly; negotiations with the Buffalo City Municipality are under way.
The local government incentive packages will revolve around discounted service costs, as well as reduced rates.
'National government incentives are applicable throughout the country, so if we are going to set ourselves apart from other IDZ initiatives and attract investors, we must offer attractive local incentives,' stresses Miles.
The ELDZC has developed an environmental management system according to the internationally recognised ISO 14001 standard.
The first external audit is due to take place next month to evaluate compliance
Publisher: Engineering News
Source: Engineering News
The designation of the East London Industrial Development Zone (IDZ) is expected to be made early this month.
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