RMIPPPP to accelerate economic growth, not frustrate it

RMIPPPP to accelerate economic growth, not frustrate it

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ECMBC started this petition to South African citizens and

                                                                                                       Date:  03 July 2021

FOR IMMEDIATE RELEASE: 

Eastern Cape Maritime Business Chamber (ECMBC) Perspective on the Karpowership SA Projects

…organisation says the deal will unlock opportunities for empowerment and access to commercial maritime ventures that accelerate economic growth in South Africa… 

The Eastern Cape Maritime Business Chamber (ECMBC), the vanguard of the maritime industry with a clear focus on the inclusion of SMMEs and previously disadvantaged people in industry opportunities, publicly endorses the Karpowership SA's project for the Port of Ngqura in the Coega Industrial Development Zone.  The project, which will be up and running in 12 months from financial close, will provide 450 MW of cleaner, reliable, and affordable electricity to South Africa - helping reduce load shedding by generating enough electricity to power 47% of all Eastern Cape (and South Africa at large) homes and businesses.

Karpowership has committed to the Eastern Cape, a dedicated R630 million for socio economic development for the life of the project.  This community investment will be allocated in consultation with local stakeholders and in alignment with critical needs in the region.  Furthermore, the project in Coega is expected to deliver over 170 construction jobs, with at least 150 of these allocated to South Africans, and over 200 operations and management jobs, with at least 140 of these allocated to South Africans.  A further R31 million has been allocated to local skills development programs.

Karpowership SA shared with the chamber that, “For the 20 years operation period, they are committing to invest circa R5 Billion directly into the local economy for the course of the project through local procurement, enterprise development, skills development, socio economic development and supplier development contributions.  They believe that it is critical to ensure that all businesses based in and around the ports to have the opportunity to apply to be part of the local supply chains – and to build sustainable value chains of their own.  This is how they will ensure Karpowership SA contributes to the creation of thriving communities that are sustainable beyond their presence there.”

ECMBC, says, “Billions of Rands in investments have been attracted to maritime opportunities in South Africa through Operation Phakisa, however, they are not being deployed to benefit emerging small businesses and particularly, black-owned businesses. Karpowership SA has committed to investing in local communities and businesses to drive economic change and foster partnerships for the success of all involved.  Specifically, the company intends to invest R270 million in local businesses as enterprise and supplier development contributions, as well as spending in over R4 billion on local procurement over the course of the project.”

This is the kind of commitment the Eastern Cape needs to ensure our people and businesses are positioned to leverage the emerging opportunities in maritime, power, transport and new gas industries in South Africa. We have engaged with Karpowership SA on the wider opportunity and also note the scale of local investments planned for Saldahna Bay and Richards Bay. The delivery of Karpowership SA’s three projects will see an important step-change not just in our ability to deliver energy security to an economy in dire straits, but also a critical boost as we work towards a more inclusive maritime economy that unlocks opportunities for black empowerment and access to commercial maritime ventures in South Africa.”

Karpowership SA has ensured that the projects are fully environmentally compliant and in addition have gone through a vigorous and robust public participation process.  The company was in Gqeberha in June 2021 to engage the broader small business delegation and committed to continue its engagements with local stakeholders to ensure that all local players are given a voice in the process. 

There can be strategic relations or partnerships with environmental groups, scientists, municipalities, and communities in implementing programs that will create a win-win situation for the SA economy and the environment.

Karpowership presented the following:

  • Karpowership SA LNG-to-Power projects utilises Powership technology and use liquified natural gas (LNG) to generate stable, cleaner power. Global experts agree that natural gas is the ideal bridging fuel to transition an economy to green power, allowing more renewable power projects to come online by stablising South Africa’s grid in the interim. LNG will be used to generate power in all three of Karpowership SA’s projects, as well as in Mulilo Total’s Coega facility. It will be instrumental in achieving goals laid out in South Africa’s energy roadmap, including cutting reliance on coal by 50% by 2030.
  • Their three Powerships projects in Saldanha Bay, Coega and Richards Bay will provide over 1.2 GW of power – enough electricity to power 800,000 homes and eliminate an entire stage of loadshedding when dispatched fully. Karpowership SA said their ready to help resolve South Africa’s loadshedding challenges. Their projects will be operating in under a year from financial close and we look forward to supporting the  South African economy with cleaner, reliable electricity,

Our perspective as the ECMBC, bolstering the maritime economy is a critical priority for the province. Operation Phakisa, though commendable, has not yet entirely delivered on its mandate in the province pending the roll-out of the Oceans Economy’s Master Plan. It is anticipated that the identified areas including the Marine Transport and Manufacturing, Offshore Oil and Gas Exploration, Aquaculture and Marine Protection Services and Ocean Governance will also unlock the economic potential of Eastern Cape coastline.

Although large-scale financial investments had been attracted to maritime opportunities in South Africa through Operation Phakisa, they have not been deployed to benefit emerging small businesses and particularly, black-owned businesses. Karpowership SA has, however, committed to investing in local communities and businesses to drive economic change and foster partnerships for the success of all involved.  Specifically, the company intends to invest R270 million in local businesses as enterprise and supplier development contributions, as well as spending in over R4 billion on local procurement over the course of the project.

This is the kind of commitment the Eastern Cape needs to ensure our people and businesses are positioned to leverage the emerging opportunities in maritime, power, transport and new gas industries in South Africa. The delivery of Karpowership SA’s three projects will see an important step-change not just in our ability to deliver energy security to an economy in dire straits, but also a critical boost as we work towards a more inclusive maritime economy that unlocks opportunities for black empowerment and access to commercial maritime ventures in South Africa.

-ends-

Unathi Sonti

Chairperson

Eastern Cape Maritime Business Chamber (ECMBC)

Cell:    +27 (0) 82 516 4618

Tel:      +27 (0) 41 587 5855

Email: chambercomms@ecmaritimechamber.co.za or sontiu@ecmaritimechamber.co.za

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