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Northern Cape Business 2018-19 edition

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Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the Northern Cape Province. In addition to comprehensive overviews of sectors of the economy, this publication has several special articles which focus on transformative projects, such as the solar and wind farms rapidly coming on line and the massive potential represented by the Square Kilometre Array radio telescope, a multi-billion rand international project already taking shape in the vast open plains of the Karoo. Updated information on Northern Cape is also available through our monthly e-newsletter, which you can subscribe to online at http://www.globalafricanetwork.com/subscribe/, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

FOCUS Farm both have 61

FOCUS Farm both have 61 wind turbines. The wind farms were developed by Lekela Power, a joint venture between Actis and Mainstream Renewable Power. There are several other partners and the respective communities are represented by a trust. Noblesfontein was one of the earliest wind farms to be constructed in the Northern Cape, about 40km from Victoria West. Spanish company Gestamp Wind was an early investor. The Loeriesfontein project is valued at R3.5-billion. Mainstream and various partners have won approved bidder status for wind and solar projects in each of the bidding windows. In the early bidding rounds, Mainstream’s three Northern Cape wind projects amounted to 360MW, including the 80MW Noupoort wind farm. Another 140MW project at Kangnas (Springbok) has subsequently been given the green light. The 147MW Roggeveld wind farm, which has 47 Nordex wind turbines and was developed by G7 and then taken over by Building Energy, was one of projects which was signed off in April. The Power Purchase Agreement (PPA) signing followed shortly after financial closure was reached. The project is expected to operate commercially in the first quarter of 2021. Altogether, Northern Cape has had 12 wind farms and one small (10MW) hydro-electric project on the Orange River approved in the REIPPPP process. Community and government Investment by black people into the RE programme is not limited to community trusts. Pele Green Energy has been engaged for some time with a photovoltaic plant at Touwsrivier in the Western Cape as a shareholder and as a provider of construction management services. Once the facility starts generating power, Pele will operate and maintain the plant. In the Northern Cape, Pele Green Energy is involved with three wind farms and a CSP plant. The 102MW Copperton wind farm is located south-west of Prieska. The two other wind projects in which Pele is invested, Garob and Kangnas, will both generate 140MW. Most of the projects approved in the Northern Cape are on a large scale. The provincial government is giving attention to smaller ventures, in the 1.5MW range, with the aim of bringing local investors and communities on board. To support this goal, a Renewable Energy Conference was held in 2016. A concrete example of this on a small scale is the solar energy plant established at the rooibos tea factory in Nieuwoudtville by the Department of Agriculture, Land Reform and Rural Development. Any excess power generated is sent on to the Hantam municipality. The Provincial Government of the Northern Cape is using clean energy production, supported by the procurement strategy of the REIPPPP, to boost economic growth and development. Green energy forms part of one of national government’s Strategic Infrastructure Projects (SIP 8), and the Northern Cape is actively participating in that. This includes the inclusion of green energy principles in the design of all major new buildings and the construction of major buildings. The provincial government is also participating in the Shared Water Efficiency Programme set up by National Public Works which will encompass 30 properties. The Northern Cape Provincial Government has applied to partner with the Central Energy Fund to roll out solar energy solutions at public schools across the province. Schools with poor electricity infrastructure will be prioritised. It is hoped that this will become a national pilot project. Another project, with the National Department of Energy, involves the second phase of the rollout of solar water heaters in the Sol Plaatje Municipality. Training of young people to maintain and repair the geysers will take place. NORTHERN CAPE BUSINESS 2013 2018/19 16

De Aar Logistics Hub CAPEX Project Estimated project description The Estimated development Vehicle jobs Storage be created Yard. of a Logistics Project Hub status in the town of De Aar that will offer the following infrastructure to identified Estimated tenants: project PROJECT DESCRIPTION CAPEX freight/products by small miners and farmers • the following Container infrastructure Terminal to identified which tenants: will act Northern Cape as a Trans-Shipment Inland (Dry) Revitalize the rail line to and from De Aar Port Influence as well economic as development consolidation point Ensure creation of jobs in the area. for Vehicle freight Storage Yard. Further to the above, the Inland Dry Port will: • Agricultural Warehouse and Facilitate road to rail migration Storage Facilities Port(s) of Export • Vehicle Storage Yard. The objectives Revitalize the for rail the line to development and from De Aar specifically Influence the economic Pixley ka Seme development District Community include but are not limited to: Reducing Ensure the creation cost of moving of jobs cargo in the area. • Provide a sustainable transport Stimulating regional socio-economic development Further to the above, the Inland Dry Port will: network for the transportation of Facilitate road to rail migration freight/products by small miners to be a minimum and Port(s) farmers of R1.7 of Export billion. • Provide relief from road-based PROJECT COMMODITY MIX freight Energy market transportation segment Volume in the Commodity Northern Cape (mtpa) Container Terminal 400 000 • Agricultural Revitalise Commodities Reducing the cost rail of line 100 moving 000 to cargo and from Break-Bulk 7 000 Vehicles De Aar • Influence economic development • Ensure creation of jobs in the area. The Inland Dry Port will: Project Sheet 21 June 2018 Centrally located hub will reduce costs. Project Sheet 21 June 2018 PROJECT INFORMATION Project De Aar Logistics Hub Owner Northern Cape Department of Transport, Safety and Liaison (NCDTSL) Key stakeholders Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial Treasury Transaction PROJECT INFORMATION advisor TM and Nelutha Consulting JV (TM) Technical Project consultants PSP Logistics, De Aar Fasken, Logistics Aurecon Hub and NAKO ILISO The project status is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors Project Owner status Northern Cape Department of Transport, Safety and Liaison Project (NCDTSL) Sheet Roadshow. Issue an RFQ in November 2018 21 June 2018 CAPEX Logistics Transnet, Hub = ~R2.5 National billion Department of Transport, Department of Public Enterprises, National and Provincial Key stakeholders Treasury Estimated project Financial close and award estimated to be in March 2020 development Transaction start advisor date TM and Nelutha Consulting JV (TM) PROJECT INFORMATION Estimated Technical jobs consultants to be created 2 500 permanent PSP and 15 000 indirect jobs Project Logistics, Fasken, Aurecon and De Aar NAKO Logistics ILISO Hub Funding PROJECT model DESCRIPTION Public Private Partnership to be adopted. Multi-tiered sub concessions The Project status Owner project status is at Feasibility Northern Study Stage. Cape Department The next of steps Transport, will be Safety to conduct and Liaison a Study (NCDTSL) Tour and Investors The development of a Logistics Hub in the Roadshow. town of De Issue Aar that an will RFQ offer in November Transnet, 2018 National Department of Transport, Department of Public Enterprises, National and Provincial the following infrastructure to identified tenants: Key stakeholders Logistics Hub = ~R2.5 billion Treasury Container Terminal which will act as a Trans- Shipment Inland Transaction advisor TM and Nelutha Consulting JV (TM) (Dry) Port as well as consolidation point for Freight Financial close and award estimated to be in March 2020 development Agricultural start Warehouse date and Storage Technical Facilities consultants The project status is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors 2 500 permanent and 15 000 indirect jobs • PSP Facilitate Logistics, Fasken, road-to-rail Aurecon and NAKO migration ILISO • Provide a more efficient logistics route for manganese to Roadshow. Issue an RFQ in November 2018 Logistics the Hub Port(s) = ~R2.5 of billion Export • Financial Potential close and of award a Fuel, estimated Oil to and be in Gas March storage 2020 facility • 2 500 Serving permanent the and transport 15 000 indirect and jobs logistics needs of the Renewable • Energy market segment • Economic catalyst for the Northern Cape Province and specifically the Pixley ka Seme District community • Reducing the cost of moving cargo • Optimising the cargo distribution to the SA port system • Stimulating regional socio-economic development • Securing a competitive advantage regionally for SA ports. The objectives for the development include but are not limited to: Provide a sustainable transport network for the transportation The development of a Logistics Hub in the town of De Aar that will offer development start date Provide relief from road-based freight Estimated transportation jobs to be in created the Container Terminal which will act as a Trans- Shipment Inland (Dry) Port as well as consolidation PROJECT point DESCRIPTION for Freight Agricultural Warehouse and The Storage development Facilities of a Logistics Hub in the town of De Aar that will offer the following infrastructure to identified tenants: Container Terminal which will act as a Trans- Shipment Inland (Dry) Port as well as consolidation point for Freight The objectives for the development include but Agricultural are not Warehouse limited to: and Storage Facilities Provide Provide a more a sustainable efficient logistics transport route for network manganese Vehicle for Storage the the transportation Yard. freight/products by small miners and farmers Potential of a Fuel, Oil and Gas storage The objectives Provide relief from road-based freight facility for the development include but are not limited to: transportation in the Serving Northern transport Cape and logistics needs of the Provide Renewable a sustainable transport network for the transportation Energy market segment freight/products by small miners and farmers Economic catalyst for the Northern Cape Province Provide and relief from road-based freight transportation in the Northern Cape Revitalize the rail line to and from De Aar Optimizing the cargo distribution to the SA port Influence systemeconomic development Ensure creation of jobs in the area. Securing a competitive advantage regionally for SA ports. Further to the above, the Inland Dry Port will: Provide a more efficient logistics route for manganese to the The envisaged impact on the economy in Year 1 of Operation Facilitate is road estimated to rail migration Provide a more efficient logistics route for manganese to the Potential of a Fuel, Oil and Gas storage Port(s) facility of Export Potential of a Fuel, Oil and Gas storage facility Serving the transport and logistics needs of the Renewable Serving the transport and logistics needs of the Renewable Energy market segment Comment Economic catalyst for the Northern Economic Cape Province catalyst and for the Northern Cape Province and specifically the Pixley ka Seme District specifically Community the Pixley ka Seme District Community Reducing the cost of moving cargo Optimizing the cargo distribution to the SA port system Optimizing the cargo distribution to the SA port system 8 500 Vehicles Stimulating per annum regional (Base socio-economic data: 2015) development Stimulating regional socio-economic development Securing a competitive advantage regionally for SA ports. Securing a competitive advantage regionally for SA ports. The envisaged impact on the economy in Year 1 of Operation is estimated The envisaged impact on the economy to in be Year a minimum 1 of Operation of R1.7 billion. is estimated to be a minimum of R1.7 billion. PROJECT COMMODITY MIX Volume PROJECT COMMODITY MIX Commodity (mtpa) Volume Container Terminal 400 000 Commodity Comment (mtpa) Agricultural Commodities 100 000 Break-Bulk 7 000 Container Terminal 400 000 Vehicles 8 500 Vehicles per annum (Base data: 2015) Agricultural Commodities 100 000 Break-Bulk 7 000 Vehicles 8 500 Vehicles per annum (Base data: 2015) The envisaged impact on the economy in year one of operation is estimated to be a minimum of R1.7-billion. Comment Contact details: Northern Cape Department of Transport, Safety and Liaison | Tel: +27 53 8391743 or +27 53 8391835 E-mail: mdichaba@ncpg.gov.za

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