Four NC projects to create jobs, revitalise ailing infrastructure

THE DEPUTY Minister of Public Works and Infrastructure, Noxolo Kiviet, identified four strategic integrated projects (SIPS) in the Northern Cape, valued at over R25 billion, that could be used to create jobs and revitalise ailing local infrastructure.

Delivering the keynote address on the first day of the provincial infrastructure summit, which started at the Mittah Seperepere Convention Centre on Wednesday, Kiviet indicated that the funds would be allocated to improve the water, transport and human settlements sectors in the Province.

“The Northern Cape SIPS include replacing aging infrastructure at the Vaal Gamagara Water Scheme, at a cost of R8.7 billion,” said Kiviet. “Once completed, the scheme will be able to meet the increased demand for mining operations and for domestic and agricultural users.

“The second phase of the project is estimated to cost R8.7 billion. ISA (Infrastructure South Africa) is working with Sedibeng Water to identify potential funders for project preparation work to improve the bankability of the project, including a commercial feasibility study and the development of a financial model.”

She indicated that R4 billion would be used to refurbish and increase the capacity for potable water and irrigation at the Vaalharts-taung irrigation scheme.

“The scheme covers about 30 000 hectares and provides water to 300 000 people, including emerging farmers and land restitution developments, agro-industrial developments and supports high-value horticulture crops – mainly pecan nuts.

“ISA is working with the Department of Water and Sanitation and the Vaalharts Water User Association to secure funding to complete the master plan for the irrigation scheme, conduct a feasibility study and determine potential revenue for possible debt finance.”

Kieviet pointed out that the Northern Cape had significant mining and agricultural commodities that were sold in other provinces as well as on the export market.

“Their quantities are significant enough to warrant the development of a deep-water commercial port in the Northern Cape. In this regard, the R11.8 billion Boegoebaai port and rail project is a greenfield deep-water port and rail infrastructure project that included the construction of the port authority infrastructure, dry bulk terminal, multi-purpose terminal, liquid bulk terminal and the construction of the breakwater supported by a 550 kilometre railway line. ISA is working with the multilateral development banks and departmental finance institutions to explore funding for the project.”

She said that a new harbour in Port Nolloth was also on the cards.

“The Hull Street social housing project in Kimberley will consist of 372 units and is expected to create over 1 000 jobs during the construction phase that is expected to start in February next year,” Kiviet added.

“ISA is working closely with the Social Housing Regulatory Authority to address key outstanding issues including bulk infrastructure, outstanding approvals and confirmation of funding.”

Kiviet acknowledged that government had witnessed a rapid deterioration of public infrastructure in recent years

She said that only 13 percent of the total 2019 National Treasury budget was spent on infrastructure.

“Some of the most critical state assets declined due to a lack of prudent asset management and a solid maintenance plan.

“A shortage of skills in the public sector has led to a decline in the construction sector and the associated disinvestments from the country.”

Kiviet stated that the government would explore innovative ways to fund municipal infrastructure, particularly the provision of bulk infrastructure.