The Coega Industrial Development Corporation (CDC) announced on Thursday that it had over R100 billion worth of investments in the pipeline within the next two years.
Khwezi Tiya, executive manager for business development at the CDC, said numerous projects under feasibility studies amounted to R117 billion in total investment value.
These projects involve businesses ranging from automotive, energy, bio-fuel and manganese.
The $11 billion Project Mthombo, PetroSA's crude oil refinery, accounts for a big chunk of the R117 billion. The refinery will have the capacity of 400 000 barrels per day, making it the largest refinery in Africa.
Two companies in the automotive sectoR, one Chinese vehicle assembler and a parts supplier, intended to invest about R1.2 billion in the next 12 months, Tiya said.
Another project under feasibility study is the $4 billion gas-turbine power-generating plant, Tiya said.
The construction of these multi-billion rand projects could commence in 18 months to two years, he said.
The CDC, Tiya said, was receiving a high number of enquiries as was the case at the same time last year from potential foreign investors that are keen on locating their operations at the Coega industrial development zone near Port Elizabeth.
He said these investors were not much concerned about a wave of industrial actions.
Investors are more interested in issues such as transport infrastructure, tax regime, skills andaccess to markets.
"They are sending positive messages about South Africa," Tiya said.
As of August 3, 2010, Tiya said the value of investments by operating businesses amounted to R900 million, while the value of investments being implemented stood at R1.2 billion.
He said the value of investments that were signed and secured but delayed was at R9.8 billion.
The zone had led to the creation of 31,092 direct and indirect jobs as of August 3, 2010.
On the planned PetroSA refinery, Tiya said the government supports the construction of this plant.
Energy Minister Dipuo Peters reiterated in April that the government supported the plans for a new crude oil refinery at the Coega industrial development zone, which is situated near the deepwater Ngqura Port.
Construction of the Project Mthombo is expected to start after 2012.
Tiya said the CDC expected the government to make a decision on the final study within three months.
He said about R2.4 billion is required to carry out the front-end engineering and design study, which details of the construction on the project. The final study is expected to last for about 18 months.
Both the location and pre-feasibility studies had been completed and these jointly cost about R200 million, Tiya said.
Coega CDC, Tiya said, is ready to proceed with the strategic facilitation of the PetroSA project.
Tiya said government had not approved the construction of the Project Mthombo and indicated he was hopeful government would give the project the green light, paving the way for the construction to begin after 2012.
The construction would last for three year, he said. - I-Net Bridge