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BULK INFRASTRUCTURE LEVERAGING ECONOMIC

GROWTH AND DEVELOPMENT- PRODUCING NEW JOBS AND

ALLEVIATING POVERTY

2

A PRIVATE SECTOR PERSPECTIVERORY WILKINSON

TONGAAT HULETT DEVELOPMENTS

An Integrated Agriculture and Agri-Processing Business• SADC wide – HQ in Durban, KZN

• > 35 000 Employees

• Sugarcane supply supports further

• 41 500 farmers and workers

• 14th Largest employer listed on JSE

• Largest private employer in Zimbabwe and Mozambique

• BBBEE - Level 2 Contributor

• Land footprint in SADC >620 000 ha

• SA Sugar operations – focus on increasing sugar production

• 6 operations in KZN

• Ethanol and cogen opportunities

• 34 675 new hectares planted to cane

since 2009/10

• Maize/corn

• 6 operations - 600 000 ton maize p.a.

• Land conversion and development in KZN

Stakeholder Value Creation from an all inclusive approach to Growth and Development around –

• Agricultural and rural development contributing to rural livelihoods and creation of new black farmers

• Partnering with government on rural development and agriculture, infrastructural development and integrated human settlement development

• Enabling urban growth and development in line with provincial and municipal strategic objectives and spatial plans – housing, employment, economic development

• Promoting and facilitating new investment into the region in key competitive sectors

• Empowering and enabling community development through Social Sustainability and Innovation Programme

Stakeholder Value Creation from an all inclusive approach to Growth and Development around –

Strategic positioning in the region is underpinned by the inextricable link between agriculture, sugar production, rural jobs and community development, government and local authorities, unlocking infrastructure investment and the conversion of cane land to development

DURBANPORT

UMHLANGA

BALLITOZINKWAZI

THUKELAMOUTH

MAPHUMULO

NDWEDWE

TONGAAT

HILLCREST

CATORIDGE

TONGAAT HULETT OWNED

EXISTING URBAN

N2

R102

N3

INANDA DAM

HAZELMERE DAM

50 km0 km

INDIAN OCEAN

DTP/ACSA OWNED AIRPORT PRECINCT

LAND DEVELOPMENT WITHIN THE PRIMARY GROWTH AND DEVELOPMENT CORRIDORS OF THE PROVINCE

7

LAND DEVELOPMENT WITHIN THE PRIMARY GROWTH AND

DEVELOPMENT CORRIDORS OF THE ETHEKWINI

MUNICIPALITY

N2 NORTHERN CORRIDORAND N3 INDUSTRIAL AND

LOGISTICS CORRIDORIND

IAN

OC

EA

N

DURBAN AEROTROPOLIS

FOCUSING ON THE NORTHERN SUBREGION OF DURBAN

MASSIVE INFRASTRUCTURAL INVESTMENT IN DUBE TRADEPORT AND KING SHAKA INTERNATIONAL AIRPORT

LAND USE AND BULKS      General Business   4 000 000m2Industrial   1 200haResidential (All types)   160 000UnitsResort   1 200RoomsOpen Space   4 000ha

INDIAN OCEAN

UMHLANGA

BALLITO

N2

R102

“PLAN OF HOPE”COLLABORATIVE PARTNERSHIP

BETWEEN ETHEKWINI MUNICIPALITY AND TONGAAT HULETT

COVERING SOME 7000 HECTARES OF LAND

BULK INFRASTRUCTURE

WATER RESERVOIRS

SEWER TREATMENT WORKS

MAJOR ELECTRICAL SUBSTATIONS

“PLAN OF HOPE”

INDIAN OCEAN

UMHLANGA

BALLITO

N2

R102

INDIAN OCEAN

UMHLANGA

BALLITO

R102

MAJOR TRANSPORTATION

upgrades/new interchanges

upgrades/new major roads

N2

“PLAN OF HOPE”

INDIAN OCEAN

KEY BULK INFRASTRUCTURAL REQUIRED INVESTMENT

• Water• R2.5 billion

• Wastewater• R4 billion

• Electrical• R3.2 billion

• Road Infrastructure• R13 billion

TOTAL – R23 BILLION

Socio Economic Benefits leveragedCONSTRUCTION PHASE• During Construction period (over some 20 years)

• Revenue to fiscus via VAT, company and payroll taxes – R35 billion

• Construction Employment• 160 000 new jobs sustained for 20 years

PERMANENT PHASE• Annual Rates

• R3,6 billion• Annual Revenue to Fiscus

• R30 billion• New, direct permanent jobs (excluding indirect and induced)

• 180 000 new jobs

TOTAL TO UNLOCK THISONLY R23 BILLION

Challenges to providing infrastructure timeously

• Responsibility for infrastructure (specifically roads)• Prioritisation within the municipality (including economic infrastructure vs

social infrastructure balance)• Funding and financing (including cashflow) (municipal gearing limitations)• Planning and EIA approvals• Procurement• Bulk water supply (Umgeni)• Bulk electrical supply (Eskom)• Electrical, water and wastewater are trading services so not a major issue

(is more around cashflow issues)• Major challenge – road infrastructure

Opportunities• Clear leveraging benefits – and long term revenue generation

far exceeds capital requirements – how do we harness this?• Partnerships – public and private and funding organisations• Private sector led• Off balance sheet financing• SPV opportunities utilizing future rates and tariffs

• Key message – there should be no reason why solutions can’t

be found

• Willing private sector partner and capable and determined

public sector – through investment into infrastructure….

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The “Plan of Hope” can be become the “Plan of Delivery” that unlocks dreams

Thank You