Agro-Logistics and Rural Infrastructure Development. National Agricultural Marketing Council

Transcription

1 Agro-Logistics and Rural Infrastructure Development National Agricultural Marketing Council

2 Outline Infrastructure Development: Guiding Policies & Acts Overview of SIP 11 Overview of SIP 11 Report: PICC approved Success/Challenges Reporting timelines for 2014/2015 year 2

3 Infrastructure Development in South Africa: Guiding Policies and Acts 3

4 SIPs Guiding Policies and Acts National Development Plan Infrastructure Development Plan Infrastructure Development Act, 2014 Presidential Infrastructure Development Commission (PICC) SIPs categorised into: Geographical SIPs including 1,2,3,4 and 5 Energy SIPs including 8,9 and 10 Spatial SIPs including 6,7 and 11 Social SIPs including 12,13,14,15 and 16 Regional SIPs including 17 Water and Sanitation SIPs including 18 4

5 PICC s mandate is to ensure systematic selection, planning and monitoring of large projects and its Terms Of Reference include the objectives outlined below Identify 5 year priorities Develop 20 year project pipeline Development Objectives: skills, localisation, empowerment, research & development Expand maintenance: new and existing infrastructure Infrastructure is critical to: Promote balanced economic development Unlock economic opportunities Promote mineral extraction and beneficiation Address socio-economic needs Promote job creation Help integrate human settlements and economic development Improve infrastructure links: rural areas and poorest provinces Address capacity constraints and improve coordination and integration Scale up investment in infrastructure Address impact of prices Support African development and integration Infrastructure Book An Infrastructure Book has been compiled, which contains more than 645 infrastructure projects across the country An Infrastructure Plan with 18 Strategic Integrated Projects (SIPs) has been developed and adopted by Cabinet and the PICC 5

6 Governance Structure of PICC PICC Council comprises Cabinet Ministers, Premiers and Executive Mayors and consider the performance dashboards for every SIP, Report into Cabinet, Recommend policy changes to Cabinet PICC Manco comprises a number of key ministries and unblocking challenges; monitor the development plan; ensure coordinated regulatory approvals PICC Secretariat is supported by ministers, deputy ministers and oversee day-to-day work of technical team PICC Task Team comprises skills and competence drawn from public agencies and government SIP Coordinators - support the PICC Task Team

7 Geographic SIPs SIP 1: Unlocking the northern mineral belt with Waterberg as catalyst Unlock mineral resources Rail, water pipelines, energy generation and transmission infrastructure Thousands of direct jobs across the areas unlocked Urban development in Waterberg first major post-apartheid new urban centre will be a green development project Rail capacity to Mpumalanga and Richards Bay Shift from road to rail in Mpumalanga Logistics corridor to connect Mpumalanga and Gauteng SIP 2: Durban-Free State-Gauteng Logistics and Industrial Corridor Strengthen the logistics and transport corridor between SA s main industrial hubs Improve access to Durban s export and import facilities Integrate Free State Industrial Strategy activities into the corridor New port in Durban Aerotropolis around OR Tambo International Airport 7

8 New dam at Mzimvubu with irrigation systems Geographic SIPs SIP 3: South-Eastern node and corridor development N2 Wildcoast Highway which improves access into KZN and national supply chains Strengthen economic development in Port Elizabeth through a manganese rail capacity from Northern Cape A manganese sinter (Northern Cape) and smelter (Eastern Cape) Possible Mthombo refinery (Coega) and transshipment hub at Ngqura and port and rail upgrades to improve industrial capacity and performance of the automotive sector. SIP 4: Unlocking the economic opportunities in the North-West Province Acceleration of investments in roads, rail, bulk water, water treatment and transmission infrastructure Enabling reliable supply and basic service delivery Facilitate development on mining, agricultural activities and tourism opportunities Open up beneficiation opportunities in the North West Province SIP 5: Saldanha-Northern-Cape development corridor Integrated rail and port expansion Back-of-port industrial capacity (including an industrial development zone) Strengthening maritime support capacity for oil and gas along African West Coast Expansion of iron ore mining production and beneficiation 8

9 SIP 8: Green Energy in support of the South African economy Energy SIPs Support sustainable green energy initiatives on a national scale through a diverse range of clean energy options as envisaged in the Integrated Resource Plan (IPR2010) and to support bio-fuel production facilities. SIP 10: Electricity Transmission and Distribution for all Expand the transmission and distribution network to address historical imbalances, provide access to electricity for all and support economic development Align the 10-year transmission plan, the services backlog, the national broadband roll-out and the freight rail line development to leverage off regulatory approvals, supply chain and project development capacity SIP 9: Electricity Generation to support socioeconomic development Accelerate the construction of new electricity generation capacity in accordance with the IRP2010 to meet the needs of the economy and address historical imbalances. Monitor implementation of major projects such as new power stations: Medupi, Kusile and Ingula. 9

10 SIP 6: Integrated Municipal Infrastructure Project Spatial SIPs Develop national capacity to assist the 23 least resourced Districts (18.9 million people) to address all the maintenance backlogs and upgrades required in water, electricity and sanitation bulk infrastructure. The road maintenance programme will enhance the service delivery capacity thereby impacting positively on the population. SIP 11: Agri-Logistics and Rural Infrastructure SIP 7: Integrated Urban Space and Public Transport Programme Coordinate planning and implementation of public transport, human settlement, economic and social infrastructure and location decisions into sustainable urban settlements connected by densified transport corridors. This will focus on the 12 largest urban centres of the country, including all the metros in South Africa. Significant work is underway on urban transport integration. 10

11 Social Infrastructure SIPs SIP 12: Revitalisation of Public Hospitals and other Health Facilities Build and refurbish hospitals, other public health facilities and revamp 122 nursing colleges. Extensive capital expenditure to prepare the public health care system to meet the further requirements of the National Health Insurance (NHI) system. The SIP contains major builds for 6 hospitals. SIP 14: Higher Education Infrastructure Infrastructure development for higher education focusing on lecture rooms, student accommodation, libraries and laboratories as well as ICT connectivity. Development of university towns with combination of facilities from residence, retail and recreation & transport. Potential to ensure shared infrastructure such as libraries by universities, FETs & other educational institutions. Two new universities will be built in Northern Cape and Mpumalanga. SIP 13: National School Build Programme A national school build programme driven by uniformity in planning, procurement, contract management & provision of basic services. Replace inappropriate school structures and address basic service backlog & provision of basic services under the Accelerated School Infrastructure Delivery Initiative (ASIDI). In addition address national backlogs in classrooms, libraries, computer labs and admin buildings. Improving the learning environment will go a long way in improving outcomes especially in the rural schools as well as reduce overcrowding. 11

12 Social Infrastructure SIPs SIP 15: Expanding access to Communication Technology Infraco capacity on WACs. Local Municipal Network Provide for broadband coverage to all households by 2020 by establishing core Points of Presence (POP s) in district municipalities, extend new Infraco fibre networks across provinces linking districts, establish POP s and fibre connectivity at local level, and further penetrate the network into deep rural areas. While the private sector will invest in ICT infrastructure for urban and corporate networks, government will coinvest for township and rural access as well as for e- government, school and health connectivity. The school rollout focus initially on the 125 Dinaledii (science and math focussed) schools and 1525 district schools. Part of digital access to all South Africans includes TV migration nationally from analogue to digital broadcasting. SIP 16: SKA & Meerkat SKA is a global mega science project, building an advanced radio-telescope facility linked to research infrastructure and high speed ICT capacity & provides an opportunity for Africa and South Africa to contribute towards global advance science projects. Infraco national network Districts connected into provincial backbone 12

13 Regional SIPs Population: 1 bn Arable land Water resources Oil, gas and mineral resources Growing economies Bulk water resources: Lesotho Highlands Electricity Transmission: Mozambique (Cesul) Hydro Power: DRC (Grand Inga), Zambia Lesotho and Mozambique (Mphanda Nkuwa) Transport: Regional interconnectors SIP 17: Regional Integration for African cooperation and development Participate in mutually beneficial infrastructure projects to unlock long-term socio-economic benefits by partnering with fast growing African economies with projected growth ranging between 3% and 10%. The projects involving transport, water and energy also provide competitively-priced, diversified, short and medium to long-term options for the South African economy where for example, electricity transmission in Mozambique (Cesul) could assist in providing cheap, clean power in the short term whilst Grand Inga in the DRC is long term. All these projects complement the Free Trade Area (FTA) to create a market of 600 million people in South, Central and East Africa. 13

14 Water and Sanitation SIP SIP 18: Developing a sustainable water supply-chain: Source-to-tap-tosource A 10-year plan to address the estimated backlog of adequate water to 1.4 million households and 2.1 million households to basic sanitation. The project will involve the provision of sustainable supply of water to meet social needs and support economic growth. Projects will provide for new infrastructure, rehabilitation and upgrading of existing infrastructure, as well as improve management of water infrastructure. National project covering all nine provinces 12 November 2012 Status: Confidential 14

15 SIP 11 Agro-Logistics and Rural Infrastructure 15

16 The Problem with Agro-Logistics and Rural Infrastructure and SIP 11 aims to address this problem 16

17 Objectives of SIP 11 #1 Maximise the use of communal land and productivity of land reform projects #2 Expand irrigated agriculture by Ha #3 Support agricultural sectors and regions with high productive potential The SIP11 Business Plan lists 25 different high-impact infrastructure development projects, which have been grouped into 8 different value chain areas, namely Crops, Irrigation, Livestock, Horticulture, Fisheries, Forestry, Biosecurity and R&D. SIP 11 also monitor and reports on +800 low impact ancillary projects that are funded by CASP and CRDP 17

18 SIP 11 Macro Plan and linkages with other SIPs NDP rural goal NDP rural objectives Rural agro-logistics elements Relevant SIPs Anchor projects Ancillary projects AN INTEGRATE D AND INCLUSIVE RURAL ECONOMY Irrigated agriculture expanded Use of communal land & land reform farms maximised Rural agriculture, including irrigation, infrastructure expanded Border post, export control & bio-security capacity expanded Integrated postharvest handling infrastructure erected SIP 11 Crop storage Horticulture infrastructure Crop & livestock processing Irrigation schemes Fisheries infrastructure Forestry infrastructure Bio-security & inspections Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Value chains & regions with high potential supported Rail capacity expanded Port congestion reduced Rural areas connected with rest of the economy Other SIPs: SIP 2 SIP 3 SIP 4 SIP 6 SIP 9 SIP 15 SIP 18 R&D and agric colleges Other rural econ infrastructure Ports infrastructure Rail infrastructure Rural access roads Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure Ancillary infrastructure 18 18

19 SIP 11: Agri-logistics and rural infrastructure Components and interconnections with other SIPs Storage (fresh produce depots, silos, packing houses) Freight transport (rail, road & ports) SIPs 2; 5 & 7 Fencing including for Kruger Park Irrigation schemes - SIP 3 R&D (agricultural colleges) SIP 14 Processing facilities (abattoirs) Aquaculture incubation Rural tourism infrastructure Border post facilities Facilities to manage foot & mouth disease Rural human settlement and urban development (revival of small towns) SIPs 6 & 7 Links to schools & health care infrastructure Universal access to electricity and solar water heaters SIPs 9 & 10 Municipal infrastructure SIP 6 Expansion of broadband SIP15 Sustainable farming methods, soil rehab programmes Skills development SIP 14 Infrastructure for the zero-hunger programme 19

20 SIP 11: Anchor Projects The NAMC in consultation with DAFF and DRDLR have identified the following Anchor projects: 1. Grain storage to support Fetsa Tlala initiative 8 Provinces EC, FS, GP, KZN, LP, MP, NW & NC 2. Cape Malting Processing Plant Northern Cape 3. Wheat Processing Plant Northern Cape 4. Standerton Soya Crushing Plant Mpumalanga 5. Elundini Wool Processing Hub Eastern Cape 6. National Red Meat Development Project Country Wide EC, KZN & NC prioritized 7. Integrated Community Based Poultry Value Chain 23 Poorest Districts Municipalities 8. Northern Cape Vineyard Development Scheme Northern Cape 9. Sunday s River Lemon Oil Processing Plant Eastern Cape 10. Mbombela Fresh Produce Market Mpumalanga 11. One Stop Shop Fruit Handling Facility Free State, Limpopo and Western Cape 12. Xhariep Aquaculture Free State 13. Qolora Aquaculture Eastern cape 14. Port Nolloth Habour Acquaculture Northern cape 15. Coastal Afforestation Eastern Cape and KwaZulu Natal 16. Sabie Lowveld Sawmill Mpumalanga 17. Recommission of Plantations Western Cape 18. Mbazwane Forest Rehabilitation KwaZulu Natal 19. Vaalhart Taung Irrigation Scheme Northern Cape and North West 20. Makhathini Development Program KwaZulu Natal 21. Ncorha Irrigation Scheme Eastern Cape 22. OBP Animal Vaccines Gauteng 23. Kruger National Park FMD Fence Mpumalanga and Limpopo 24. Rehabilitation of Agricultural Colleges Country Wide 25. Project Rebirth Country Wide 20

21 SIP 11: Anchor Projects Locations: per value chain element Legend Crops Irrigation Livestock Horticulture Fisheries Forestry Biosecurity R&D 21

22 SIP 11: Anchor Project locations: relative to 23 distressed districts* Legend Located within 23 distressed districts Located outside of 23 distressed districts *These districts are all experiencing high levels of poverty, service constraints, high unemployment and low levels of economic development (DRDLR, )

23 Overview of the SIP 11 Report (To 2014): PICC Approved 23

24 SIP 11 Reporting System to PICC Reporting Organs All Provinces: Ancillary & Anchor Projects SIP11 Cordinator PICC TTT PICC Secret ariat SOE: Anchor Projects NAMC Process data & compile reports PICC Mancom DAFF: only Anchor (not covered by Provinces & DRDLR: Ancillary & Anchor Cabinet Lekgotla PICC Council DAFF & DRDLR 24

25 SIP 11 Project Composition 25 Anchor Projects: Account 60% total budget Bulk at concept phase +800 Ancillary Projects: Account 40% total budget Theoretical all funded by CASP or CRDP 25

26 1. Summary Slides: Anchor & Ancillary projects 26

27 Table 1: SIP 11 Projects per Construction Phase Row Labels Project Number Project Value: R'000 Total Jobs Planned Completed Construction Planning Grand Total Note: Conceptual and Planning Phase include all projects that are at concept, planning, tendering, advertising, re-advertising no funding, on hold and feasibility stages Row Labels Project Number Project Value: R'000 Expenditure to Marc : R 000 Expenditure to 2014: R 000 Actual Spent in Q4: R 000 Total Jobs Planned Jobs Created in Q4 (Jan-Mar 14) Anchor Ancillary Grand Total Anchor Ancillary Grand Total

28 Table 2: SIP 11 Projects per Reporting Organ Row Labels Project Number Project Value: R'000 Expenditure to Marc : R 000 Expenditure to 2014: R 000 Actual Spent in Q4: R 000 Total Jobs Planned Jobs Created in Q4 (Jan-Mar 14) ARC DAFF DRDLR Eastern Cape - DRDAR Elundini Local Municiplaity Free State - DARD Fruit SA Gauteng - GDARD IDC KwaZulu Natal - Dept of Agric & Envir Limpopo -DoA Mpumalanga - DARDLA NAMC North West - DARD Northern Cape - ALR&RD Northern Cape - ALR&RD & North West - DARD OBP SAFCOL Grand Total Western Cape - DoA

29 Table 3: Summary of SIP 11 Projects: Infrastructure Category and Type Row Labels Count of Project Value'R000 Sum of Project Value'R000_2 Sum of Expenditure To- Sum of Expenditure R'000 To R'000 Sum of Actual Spent in Q4 of /2014 R'000 Sum of Jobs: Total Sum of Q4: - Jobs: Total Agricultural & Rural Transport Sysytems Electricity Projects Fencing Marketing & Storage Facilities Other Primary Agricultural Infrastructure Processing Facilities R&D, College, Schools & Houses Projects Recapitalisation & Development Rural & Agro Tourism Sanitation Projects Social Relief Projects Soil Rehabilitation Projetcs Water & Irrigation Projects Grand Total

30 Table 4: Summary of SIP 11 Projects: Infrastructure Location & Value Chains Row Labels Count of Project Value'R000 Sum of Project Value'R000_2 Sum of Expenditure To- R'000 Sum of Expenditure To R'000 Sum of Actual Spent in Q4 of /2014 R'000 Sum of Jobs: Total Sum of Q4: - Jobs: Total Cross Provinces Eastern Cape Free State Gauteng KwaZulu Natal Limpopo Mpumalanga North West Northern Cape Western Cape Grand Total

31 2. Detailed Reporting on Anchor Projects 31

32 Table 5: SIP 11 Anchor Projects at Conceptual Phase Project Project Value Planned Jobs Project Phase Infrastructure Type Project Rebirth 1,626,233 Conceptual Fresh Produce Market Afforestation 1,177,000 Storage Infrastructure to Support Fetsa Tlala Lemon oil processing plant 650,000 Cape Malting 600,000 Lowveld Sawmill 590,000 Recommissioning of Plantations 561,600 Vaalharts Citrus project 425,000 One Stop Shop Fruit & Vege Handling Facility Integrated Community Based Poultry Value Chain Mbazwana Forest Rehabilitation 303,458 12,283 Conceptual Forestry 744,000 Conceptual Silo & Storage Facility 1, ,300 Conceptual Conceptual Fruit Production & Processing Plant Processing Plant Conceptual Sawmil No change Conceptual Conceptual Forestry Fruit Production 423,000 Conceptual Packhouse & Coldstore 400,000 Conceptual 2,200 Conceptual Chicken House & Processing Forestry Status Quos in Q4: Jan 2014 DAFF applied for Funding at National Treasury DAFF applied for Funding at National Treasury. NAMC & DAFF applied for Funding at National Trasury Land availability issues. Construction yet to commence Feasibility Phase. Negotiating marketing off-take agreement with Heineken DAFF applied for Funding at National Treasury. Water tights issues delaying the project start. NAMC & Fruit SA developing business case No change DAFF applied for Funding at National Treasury. Qolora Acquaculture 90,000 2,000 Port Nolloth Acquaculture 32, Grand Total Conceptual Fishery NAMC & DAFF developing business case Conceptual Fishery NAMC & DAFF developing business case 32

33 SIP 11 SIP 11: Agri-logistics and rural infrastructure Selected Anchor Projects BOOK 2 Makhathini Flats Development Program: Construction Phase Aims to revitalize and expand the irrigation systems to produce crops from hectares. More than people are anticipated to benefit from the program. Target or catalytic effect Target / catalytic effect Total project cost Funder Project commence Project complete The Makhathini Development Program is focused on revitalizing and expanding the irrigation systems to produce crops from hectares. The program also aim to promote livestock production and create market (i.e. Fresh Produce Market) and processing (e.g. Abattoir, Oil and Amarula processing) facilities. More than people are anticipated to benefit from the program. R857 million (R532.6 million for agricultural infrastructure irrigation systems, packhouses, fresh produce hubs and livestock abattoirs. R324 million is planned for roads and other basic rural infrastructure). KwaZulu Natal Dept of Agriculture & Environmental Affairs Current status Irrigation canal complete moved from 40% to 60%; Water dams complete moved from 60% to 93%. 20% of agricultural input store and Amarula processing plant completed. Construction of abattoir, Amarula processing plant and redline fence will commence in KZN MEC for agriculture and environmental affairs will be handing over sites to contractors in 2014 Performance 2012 to June Septemb er to Decemb er to % spent to date of estimated R857m 7% 93% Total spent may be higher than reported figures since an unknown amount has been spent since project inception in Historic expenditure and jobs figures are unavailable. %spend to date N/A N/A 0% 4% 6% 7% spend () Total spend to date (R'm) Jobs created (direct jobs) N/A N/A N/A N/A N/A N/A N/A N/A Created 130 constructi on operation Localisation % N/A N/A 100% 100% 100% 100% 33

34 SIP 11 SIP 11: Agri-logistics and rural infrastructure Selected Anchor Projects BOOK 2 Northern Cape Vineyard Development: Construction Phase This project aims to establish grape production (raisins, wine and table grapes) along the Orange River in the Northern Cape to benefit black farmers (at Kai Gariep Local Municipality, Siyanda District, Northern Cape Province) Target or catalytic effect Target / catalytic effect Total project cost Funder Project commence Project complete Current status To integrate black farmers into the grape value chain assisted through provision of primary production and processing and marketing infrastructure such as irrigation equipments, trellising equipments for vineyards, mechanization, packhouses, packaging equipments and drying facilities. Changed from R150m to R870m (an unknown amount has been spent since 2007 and R40m is allocated for /2014 financial year) NCDARD To date over ha have been developed and further 500 ha are under development. There is also expansion and maintenance of infrastructure already developed. There was very little spent for quarter June because budget was not available (budget allocation was late). Spend may be much higher than the reported figures since an unknown amount has been spent since project inception in % spent to date of estimated R870m 11% 89% % spend changed due to revised project cost Performance %spend to date spend () Total spend to date (R'm) Jobs created (direct jobs) 2012 to June September to December to % 6% 6% 8% 10% 11% N/A

35 SIP 11 SIP 11: Agri-logistics and rural infrastructure Selected Anchor Projects BOOK 2 Elundini Wool Processing Hub Eastern Cape: Post Feasibility Phase This project aims to erect wool processing facilities to benefit communal wool growers in the Eastern Cape (at Elundini Local Municipality, Joe Gqabi District Municipality, Eastern Cape Province) Target or catalytic effect Target / catalytic effect Total project cost Project funder Project commence Project complete The overall objective is to enhance the participation of black small-holder farmers in the commercial wool value chain. The plant will produce kg scoured wool per year. Changed from R50m to R132m (R82m for infrastructure and rest for production assistance in the first 3 years) Elundi Local Municipality December 2014 (Provided funding is available) Current status NAMC and relevant stakeholders are developing the business case to attract funding and private partners. The process started in quarter 4 of /2014 financial year. Performance 2012 to June to September to December to 2014 % Spend to Date - - 0% 1% No change No change Construction funding has not yet been secured beyond the funding for feasibility. Feasibility study completed on October 1% spent to date of estimated R132m 1% 100% spend (R'm) Total spend to date (R'm) Jobs created (direct jobs) No change N/A N/A No change N/A N/A 0 0 No change No change No change No change Localisation (%) N/A N/A 100% 100% No change No change 35

36 SIP 11 SIP 11: Agri-logistics and rural infrastructure Selected Anchor Projects BOOK 2 Country Wide: National Red Meat Development Project Target or catalytic effect Target / catalytic effect Total project cost Project funder Project commence Project complete The project aims to create feedlot capacity for subsistence farmers in the rural areas. The projects enhance the productivity of livestock in the communal areas and enhance farmers return. R200m DAFF and Provincial Departments 2012 Ongoing Current status 2012 Gxwalubomvu CFP is 100 % complete, and was opened for operation on The Mhlumayo & Nchora CFP is 100% completes. Elliot CFP construction is 100% complete as was officiall launch by the President of SA. The Kamastone and Lahlangubo CFP are 75% completes while the of lower Hukuwa is 90% complete. to June to Sep to December to 2014 % Spend to Date spend (R'm) - - 0% 1% 3% 3% % spent to date of estimated R200m 3% 97% Total spend to date (R'm) Not Availabl e Not Availabl e Jobs N/A N/A Localisation (%) N/A N/A 100% 100% 100% 100%

37 SIP 11 SIP 11: Agri-logistics and rural infrastructure Selected Anchor Projects BOOK 2 Country Wide: Agricultural Colleges: Construction Phase Target or catalytic effect Target / catalytic effect Total project cost Project funder Project commence Project complete To revitalize 12 agricultural colleges across the country. The project is anticipated to elevate the standard and conditions of South African academic institutions. R1 200m DAFF and Provincial Departments 2012 Ongoing Current status Construction work on 12 agricultural colleges has commenced 3% spent to date of estimated R1200m 3% 97% Performance % Spend to Date spend (R'm) Total spend to date (R'm) Jobs created (direct jobs) Localisation (%) 2012 to June to Septembe r to December to % 1% 2% 3% N/A N/A N/A N/A N/A N/A 100% 100% 100% 100% 37

38 SIP 11 SIP 11: Agri-logistics and rural infrastructure OBP Animal Health BOOK 2 This project aims to refurbish and construct new labs that conform to modern technology and health standards in Pretoria, Tshwane District, Gauteng Province GPS Coordinates are South East EIA is done Target or catalytic effect Target / catalytic effect Total project cost Project Funder Project commence Project complete The Bio-Security Stimulus Projects (OBP) with laboratory equipments which are imported from Germany and the refurbishment of building structures and floors will increase the efficiency ( i.e. amount of vaccines produced per hour) and standards (conform with international animal bio-security standards). R514m OBP through MTEF April 2012 Sept 2015 Current status Ordered machines starting to arrive and installation in progress. construction of lab will commence next. Performance 2012 to June to Septemb er to Decembe r to 2014 % Spend to Date 1 spend - - 3% 7% 9% 20% % Spent of R514m project cost 20% 80% Total spend to date Jobs created (direct jobs numbers) Not Availabl e Not Availabl e Not Available Not Available N/A N/A 7 2 Localisation (% of local Not Availabl Not Available N/A N/A 0% 0% 38

39 SIP 11 SIP 11: Agri-logistics and rural infrastructure Mpumalanga Fresh Produce Market BOOK 2 The MPDARDLA purchased the Boschrand Farm at a cost of R51.3 million for 248 hectares. This was done over 2 financial years. It is in Mbombela Local Municipality in Ehlanzeni District Municipality in Mpumalanga Province. The EIA is in process Project still in initial construction phase. Target or catalytic effect Target / catalytic effect Total project cost Project Funder Project commence Project complete The construction of Mpumalanga Fresh produce Market aims to increase marketing and storage opportunities for small-holder farmers as well as commercial farmers. The project will develop 100 hectares of land. The 30 hectares will be developed in /2014 which entails bulk market infrastructure. R595m DRDLR budgeted R216m, additional funding will be sourced through MEGA strategic investors. April % pent of R595m project cost 10% 90% Current status Performance 2012 The feasibility study has been completed. Process for applications of the EIA and Bulk Services has commenced. Awaits on Eskom power supply deal to be finalised before construction commences. to June to Sep to Dec to % Spend to Date - - 9% 9% 9% 10% EIA application and Eskom power supply deal are delaying the commencement of construction 1 spend Total spend to date N/A Jobs created (direct jobs numbers) N/A N/A N/A N/A N/A N/A Localisation (% of local spend) Not Availabl e Not Availabl e 100% 100% 100% 100%

40 SIP 11 SIP 11: Agri-logistics and rural infrastructure Vaalharts and Taung Irrigation Scheme BOOK 2 The following items need to be revitalised in order to get the scheme working in full capacity. 122km of main canal, 625 km of feeder canal, drainage to the main off farm system, 5 overnight dams and balancing dams and electricity connection in the area Location: Pokwane Municipality in Frances Baard District in Northern Cape Province. GPS Coordinates are 28 34'24' South ; 24 33'25''E ast EIA is done Target or catalytic effect Target / catalytic effect Total project cost Project Funder Project commence Project complete Rehabilitation of the Vaalharts-Taung irrigation scheme to benefit creation of rural communities through agriculture. The revitalization of the schemes will create employment and boost agricultural production in NC and NW. R 4000m *NCDARD **NWDARD DAFF: DRDLR: % spent to date of estimated R4000m 3% 97% *Northern Cape Department of Agriculture and Rural Development **North West Department of Agriculture and Rural Development. *The project has funding challenges hence the slow progress. Current status Performance 2012 Four overnight and balancing dams as well as sub-surface drainage systems are under construction. Funding constrains have affected the construction progress. Irrigation scheme funded by DAFF and NW & NC provinces operating. Rehabilitation of water canal has not commenced. to June to Septembe r to Dec to 2014 % Spend to Date - - 2% 2% 2% 3% 1 spend Total spend to date Jobs created (direct jobs numbers) Localisation (% of local spend) % 100% 100% 100%

41 SIP 11 SIP 11: Agro Processing Projects (IDC) Soya crushing plant, Standerton Noble Resources Soya crushing plant, Mpumalanga Target or catalytic effect Target / catalytic effect Total project cost Project commence Project complete Current status Jobs 120 Soya Crushing Plant will require tons of soya a day. From this, the plant will produce 3 products: Meal (70%), Oil (20%) and Hull (10%) R600m 2011 October Construction work is about 85% complete, with the major outstanding work, electrical installation, having just started 2012 to June Quart er to Septe mber to Decembe r Jan to 2014 % Spend to Date - N/A No change 1 spend - N/A No change 1 of 2 Day Silos (front left) and 6 Storage Silos (rear) at the Soya Crushing Plant We struggled to get any information from the Project Manager. PICC (Mahomed Vawda) attempted to assist. He has better information on this project Total spend to date Jobs created (direct jobs numbers) Localisation (% of local spend) - N/A No change - N/A No change - N/A

42 SIP 11 SIP 11: Agro Processing Projects (IDC) BOOK 2 Karsten Table Grape & Processing Facility, NC & WC Target or catalytic effect: export products Target / catalytic effect Total project cost Project commence Project complete Current status Promote table grape production and exports to international markets. Expansion and new developments taking place in the Northern Cape and Western Cape Provinces R526 mil 2015 About 30% of project targets has been achieved including new vineyards and processing facilities Jobs Jobs planned 2012 to June to September to December to 2014 % Spend to Date - N/A 4% 20% 20% 24% 1 spend - N/A Total spend to date - N/A Jobs created (direct jobs numbers) Localisation (% of local spend) - N/A N/A

43 SIP 11 SIP 11: Agro Processing Projects (IDC) BOOK 2 Green Valley Nuts, Northern Cape Target or catalytic effect: export products Target / catalytic effect Total project cost Project commence Project complete Current status Jobs Establish 2000 ha nut farm and develop nuts packaging, grading and storage facilities. Focus is on Pecan Nuts a niche and highly profitable product R75 mil Processing plant completed. One of the first pecan nut processing plants in the country. Over 30% plantations achieved. 118 Jobs planned 2012 to June to September to December to The project is progressing well. Ni major challenges reported. Projected started exporting first crop to international markets. It is at a learning curve and positive growth is anticipated % Spend to Date - N/A 48% 1 spend - N/A Total spend to date - N/A 36 Jobs created (direct jobs numbers) Localisation (% of local spend) - N/A N/A 100% 100% 100% 100

44 SIP 11 SIP 11: Agro Processing Projects (IDC) BOOK 2 Berekesaneng Citrus & Table Grapes, Northern Cape Target or catalytic effect: export products Target / catalytic effect Total project cost Project commence Project complete Current status Establish 650 ha of citrus and table grapes for international markets. R314 mil More than 40% of project targets have been achieved. Plantations and construction of facilities progressing. Jobs 650 Jobs planned 2012 to June to Septem ber to Decembe r to 2014 % Spend to Date - N/A 23% 1 spend - N/A Total spend to date - N/A 68 Jobs created - N/A Localisation (% of local spend) - N/A 100% 100% 100% 100%

45 SIP 11 SIP 11: Agri-logistics and rural infrastructure Tshivhase Tea Estate BOOK 2 Target or catalytic effect Target / catalytic effect Total project cost Project Funder Project commence Project complete The marketing and processing plant have been created to ensure farmers have sustainable and profitable businesses to procure their produce. The project has capacity to produce and process tons of tea from smallholder farmers per annum. R360 m Limpopo Department of Agriculture and Private Funder 2006 April Project now at operational phase and has created jobs through the tea value chain. The project aimed to establish 1077ha of tea plantation as well as processing and packing facility in Vhembe District in Limpopo. GPS Coordinates are South East. 100% spent to date of estimated R360m 100% Project Completed Current status Performance The plant has been constructed and is operational. Production capacity is 2000 tons of black tea per annum 2012 to June to September % Spend to Date - N/A 83% 100% 1 spend - N/A 0 60 Total spend to date Jobs created (direct jobs) Localisation (% of local spend) Not Available Not Available Not Available N/A N/A N/A 100% 100%

46 SIP 11 SIP 11: Agri-logistics and rural infrastructure Russellstone Soya Processing Plant Target or catalytic effect BOOK 2 The project construction was completed in July Target / catalytic effect Total project cost Project Funder Project commence Project complete This projects aims to create soya processing capacity in the country. The Russellstone Protein Processing Plant has a potential capacity of tons per annum. R140m IDC May 2012 August Current status Jobs created Construction of the soyabean crushing plant was completed in July 50 construction jobs, 1040 indirect jobs Performance 2012 to June % Spend to Date 72% 87% 100% 1 spend Total spend to date % spent to date of estimated R140m 100% Jobs created (direct jobs numbers) Localisation (% of local spend) direct jobs 100% 100% 100% Project Completed

47 SIP 11 SIP 11: Agro Processing Projects (IDC) BOOK 2 Grainfield Chickens (Pty) Ltd: Completed Phase Description Project Location Chicken Abattoir Reitz, Free State Project Cost () R350m Project commence 2011 Project Phase Completed in Jobs Created Jobs This project was completed in early. It can not be transform into a new format (historic data not readily available)

48 Success/Challenges 48

49 Main Issues with SIP 11 SIP 11 is one of the few (if not only one) whose anchor projects are not funded by National Treasury Therefore SIP 11 needs to develop bankable business cases per each project in order to attract private funding This is additional work over and above SIP 11 draft business (operational) plan Lack of public funds has delayed progress on SIP 11 anchor projects We are developing working group for each anchor project: Strengthens the business cases Attract private investors Raise public funding Improve coordination and implementation 49

50 General Challenges and Success Challenges Inconsistency on reported projects Late provincial report submission Poor jobs and expenditure figures Two many gaps on provincial reports (Ancillary Projects) Success Certain Provinces are doing well PICC recognition for most improved SIP in Two Cabinet Reports: Feb 2014 & June 2014 SIP 11 Business Plan (draft) 50

51 Reporting timelines for 2014/2015 year 51

52 SIP 11 ly Report Submission for 2014/ /2015 s Final Date for Province to Submit to NAMC Final Date for NAMC to Submit to PICC TTT One: April June July August 2015 Two: July Sept October November 2014 Three: Oct Dec January February 2015 Four: Jan Mar April May

53 Thank you: 53