PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES 08 April 2003 THE COEGA PROJECT PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES 08 April 2003

FORMAT OF PRESENTATION History of the Coega Project Overview of CDC’s Objectives Infrastructure Roll-out Socio – Economic Impact Safety Health & Environment Key Successes Future Programmes April 19

‘THE COEGA PROJECT’ Generic, colloquial name for new Industrial Development Zone and deepwater port located 20 km from Port Elizabeth in Nelson Mandela Bay COEGA IMPLEMENTING AUTHORITY Presentation to THE NETWORK: AUGUST 11, 1999 Thank you, chairperson Ladies and gentleman A key factor in any business initiative is having a vision. Tonight I want to ask you to join me in saluting the people of vision at Telkom, in particular Mandla Tyala and his team, and the people of vision at the Evening Post, Lakela Kaunda and her associates, for this wonderful initiative. I believe these Network gatherings can play a very important role in identifying and promoting business opportunities in our city and our region. Please join me in paying tribute to those who have had the foresight to bring us together in this manner. In the six months that I have been living in Port Elizabeth, I have been a happy recipient of the friendliness and hospitality which sets PE apart as “the Friendly City”. April 19

PORT OF NGQURHA Common Infrastructure Breakwaters, quays, dredging, navigational equipment Cost of common infrastructure R2.4 billion Developer National Port Authority April 19

CDC’s 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 April 19

CDC’s CORPORATE OBJECTIVES (Cont’d) Good Corporate Governance Ensure W/Class SHE practices in IDZ Promote positive national and international image Ensure positive Stakeholder Relations April 19

CDC’s MEASURABLES TO ACHIEVE OBJECTIVES Job creation Promote Targeted Procurement SMME Opportunity Creation Attract investments into IDZ April 19

CDC’s MEASURABLES TO ACHIEVE OBJECTIVES (Cont’d) Economic interaction between investors and local business Develop capacity Ensure environmental sustainability Implement robust risk management systems April 19

SOCIO – ECONOMIC IMPACTS April 19

LBMS System April 19

AGE DISTRIBUTION: JOB SEEKERS RECRUITMENT: AGE DISTRIBUTION: JOB SEEKERS April 19

RECRUITMENT Cont’d: Per Education April 19

TRAINING: Training per Race April 19

Training: per Age Group April 19

TE TRAINING Cont’d: Training Courses April 19

EMPLOYMENT: BY GENDER April 19

EMPLOYMENT: BY RACE April 19

Employment Cont’d: Disabled Individuals Seconded ZLA Labour Total 1612 955 Disabled 1 2 % of Total 0.06% 0.21% April 19

Recruitment per Age Group April 19

SMME DEVELOPMENT: Support Systems MONITORING Pre-award verification Monitoring of compliance SUPPORT SERVICES SMME Unit Construction Management Services Financial Institutions Interface April 19

SMME Development Services Cont’d April 19

SMME SUPPORT Cont’d Achievements April 19

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 CDC has adopted a system to address and achieve the SHE World Best Practices which some of the main components are: Addressing SHE issues at an early stage (induction). The advantage is to set a level of awareness and highlight what could be done in case of any SHE related problem. Going the Management System Route was one of the best practices used world wide: The systems do not only address Legal Compliance but also the day to day issues which impacts on people and environment e.g prevention of incidents and injuries. SHE Specifications which are April 19

SHE Cont’d Mentoring HIV/AIDS Strategy Developmental & Conventional Legal Compliance Ongoing Monitoring and training HIV/AIDS Strategy Internal Policy, Programme & Working Group External Addressed in tender documentation Awareness Training April 19

PROCUREMENT POLICY FRAMEWORK Constitution PPPFA King II April 19

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. April 19

PROCUREMENT CHALLENGES Implementation Definition of Local Untransformed Industries Balancing expectations Public sector integration April 19

PROCUREMENT PROPORTION OF DIFFERENT CONTRACTS April 19

CONVENTIONAL CONTRACTS AWARDED Qty Number of Contracts 10 Number of Main Contractors Number of Sub-contractors 92 Number of Contracts Completed April 19

EMPOWERMENT ACHIEVEMENTS April 19

Empowerment Targets – Contracted Rand Values April 19

KEY SUCCESSES Relocation of the Coega Community Empowerment Targets (Internal & Ext) Auditor General’s Report Strategic Partnerships Positive Public Sentiments Environmental permits incl.ISO 14001 Recruitment & Retention of Staff Zone & Port Labour Agreements April 19

FUTURE PROGRAMMES Infrastructure rollout Pechiney Targeted & Focused Investment Promotion Certainty of Funding Smart Partnerships CDC Corporate objectives Internship Programme April 19

THANK YOU April 19