South Africa: Infrastructure Development Projects in Special Economic Zone

A summary of infrastructure development projects in and around the Maluti-a-Phofung Special Economic Zone in the Free State Province of South Africa.

Roll out of phase 2 of bulk earthworks at the Maluti-a-Phofung Special Economic Zone

Project location: Maluti-a-Phofung Special Economic Zone

Region: Free State Province, South Africa

Economic sector: Infrastructure Development

Project description:

Roll out of phase 2 of the fitting of bulk earthworks at the Special Economic Zone (SEZ)

Maluti-a-Phofung Special Economic Zone was designated as brownfield with most of the park being without essential services like water, sewage, roads and electricity

Phase 2 of the bulk earthworks project aims to install these services in alignment with the establishment of new investors and their top structures within the SEZ

Phase 2 will be a multi-year bulk earthworks project focusing on installing new bulk services and new road networks

This phase will also focus on water reticulation and upgrading existing water infrastructure

This project will allow the development of new serviced sites for the housing of potential investors in precincts 2 and 4 of the SEZ

Investment value:

R450-million

Sources of funding:

Department of Trade and Industry or relevant funding partner

Funding gap:

R450-million for bulk infrastructure

Number of jobs to be created (direct and indirect):

300 temporary jobs

Empowerment:

Employment of previously disadvantaged persons (including youth)

Partnerships:

Department of Trade and Industry

Free State Development Corporation

Maluti-a-Phofung Special Economic Zone

To discuss, please contact the Project Manager.

NB: Kindly use subject line: MAP SEZ - Phase 2 of bulk earthworks

Municipal infrastructure upgrades

Project location: Maluti-a-Phofung Special Economic Zone

Region: Free State Province, South Africa

Economic sector: Infrastructure Development

Project description:

The Maluti-a-Phofung Special Economic Zone (SEZ) is located within the Maluti-a-Phofung Municipality.

The infrastructure that immediately surrounds this SEZ is in desperate need of upgrades and refurbishments.

These include upgrades to the water and power reticulation systems and refurbishment of the water treatment plant.

The municipality is expected to repair the water treatment plant for the treatment of effluent water.

This treatment plant has not been operational for a year and must be brought back on-line with immediate effect. This is the most crucial infrastructure project at present.

The municipality, in partnership with Eskom and the SEZ, are expected to upgrade the sub-station in order for it to accommodate the required 80 MVA for the SEZ.

The municipality currently receives 10 Megaliter (ML) of water per day for the area. This needs to increase by 40 ML per day to accommodate the SEZ's 20 ML per day requirement and the estimated 20 ML per day that is now required for the residential area.

Funding gap:

Estimated amount of R70-million funding over two financial years required.

Sources of funding:

- Department of Trade and Industry and/or relevant funding partner.

Number of jobs to be created (direct and indirect):

The number of jobs will be determined by the Municipality's scope of work.

Empowerment:

The project will seek to employ previously disadvantaged persons, including the youth.

Project schedule:

Projects to commence as soon as funds are available.

Project status:

The municipality does not have the funds to undertake the urgently required repairs of the waste water treatment plant.

Eskom is to be presented with the power requirements of the area in order to upgrade the power supply. This can only be done through municipality as the power supply runs from Eskom to the municipality and then to MAPSEZ.

Unblocking issues needed to be resolved:

Funding required as the municipality is currently under administration and as a result is not functioning at its full capacity.

Partnerships:

Maluti-a-Phofung Municipality

MAPSEZ

Eskom

MAP Water

To discuss, please contact the Project Manager.

NB: Kindly use subject line: MAP SEZ - Municipal infrastructure upgrades

Upgrade and redevelopment of roads within and leading to SEZ

Project location: Maluti-a-Phofung Special Economic Zone

Region: Free State Province, South Africa

Economic sector: Infrastructure Development

Project description:

Re-align the intersections on the N5 that leads to entrances into the MAP SEZ

Redevelop the main road of the SEZ. This is the responsibility of the Department of Police Roads and Transport, as it is a provincial road.

Repair the municipal road leading to the SEZ from the Tshiame Township (located adjacent to the SEZ). This road has reached its life span.

Sources of funding:

Department of Police, Roads and Transport, SANRAL, Department of Trade and Industry and/or relevant funding partner

Funding gap:

R65-million funding required

Empowerment:

The project will seek to employ previously disadvantaged persons, including the youth.

180 temporary jobs will be created.

Project schedule:

Project planned for 2020/2021 financial year

Project status:

MAPSEZ has requested meeting with SANRAL to present Traffic Impact Assessment that will determine the extent of realignment needed on the N5 intersections

MAPSEZ has sent a request to Department of Police, Roads and Transport for a meeting to plan and formulate budget for road of the construction

Municipality currently does not have funds for the road construction.

Current partnerships:

MAPSEZ

Maluti-a-Phofung Municipality

SANRAL

Department of Police, Roads and Transport

To discuss, please contact the Project Manager.

NB: Kindly use subject line: MAP SEZ - Road infrastructure upgrades

Funding required for new railway lines within MAPSEZ

Project location: Maluti-a-Phofung Special Economic Zone

Region: Free State Province, South Africa

Economic sector: Infrastructure Development

Project description:

Following Gateway Review 2, Transnet Freight Rail will begin with Front End Loading 3 (design stage) process

Funding for professional work for Front End Loading 3 required by Transnet

Sources of funding:

Transnet, Department of Trade and Industry or relevant funder

Funding gap: R50-million

Incentives available:

Preferential 15% Corporate Tax

Building Allowance

Employment Incentive

12I Tax Allowance

Empowerment:

The project will seek to employ previously disadvantaged persons including the youth. 80 direct / indirect jobs to be created.

Project schedule:

10-month construction program

Project status:

Transnet currently does not have the funds to finance the Front End Loading 3 Project

Transnet has elected to first access the freight demand in the area before commencing with Front End Loading 3 process

Current partnerships:

Transnet

MAPSEZ

To discuss, please contact the Project Manager.

NB: Kindly use subject line: MAP SEZ - Rail infrastructure upgrades

Construction of office buildings in Special Economic Zone

Project location: Maluti-a-Phofung Special Economic Zone

Region: Free State Province, South Africa

Economic sector: Construction, Property Development

Project description:

Construction of the SEZ office building to house full staff of the Special Economic Zone

This office includes a One-Stop-Shop (SARS, Department of Home affairs, Department of Trade Industry, Fire Brigade, Police Station)

Investment value:

R80-million

Sources of funding:

Department of Trade and Industry and/or potential funder

Funding gap: R80-million

Project schedule:

18 month construction period

Empowerment:

The project will seek to employ previously disadvantaged persons including the youth. 50 temporary work opportunities.

Partnerships:

Department of Trade and Industry

Free State Development Corporation

MAP SEZ

To discuss, please contact the Project Manager.

NB: Kindly use subject line: MAP SEZ - Construction of office buildings

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