Over 100 CEOs from various corporate organisations attended and engaged with government. The business delegation was led by the Co-Chair of the KZN Growth Coalition, Moses Tembe while the government delegation included Economic Development, Tourism and Environmental Affairs MEC Ravi Pillay as well as Arts, Culture, Sport and Recreation MEC Hlengiwe Mavimbela.
Business raised a number of issues constraining the growth prospects of the province.
These include:
•Business Forums & Construction Sites
•Corruption
•Energy
•Cost of Doing Business
•Crime and Grime
•Water sustainability and security
In response, Premier Zikalala assured the business community that government is committed to partnering with business in retaining and attracting investments to the province.
The Premier invited business to be ambassadors for investment in the province.
Provincial Police Commissioner Lieutenant-General Nhlanhla Mkhwanazi presented on the KZN crime trends and modus operandi of criminals on business premises and sites.
Tactical approaches will be undertaken to root-out criminals targeting businesses and the community.
Premier Zikalala gave business an update on key catalytic projects to drive economic development.
On the issue of water provision, Premier Zikalala announced that municipalities will ring-fence more than 8% of their budgets towards operations and maintenance.
UPDATE ON CATALYTIC PROJECTS
Ladies and Gentlemen, in their letter, the Durban Chamber of Commerce and Industry needed an update on progress on some of our catalytic projects.
Update on Point Waterfront
• Start and finish date: 2016-2030
• Investment value – R 3.5 billion (City – R600 million & Developer, R3 billion)
• Watermains upgrade along Mahatma Gandhi Rd and Anton Lembede St almost complete. Work rate slowed down due to funding challenges, with investment value of R300 million.
• MSC Cruise Terminal officially opened in December 2021, with investment value of R200 million.
Next Steps (12 months)
• City to address budget shortfall of R50 million to complete point watermains by June 2022.
• City to urgently meet with Malaysian investor regarding the latter’s investment commitment (Hotel & Retail).
Update on Cato Ridge Freight and Logistics (Investment Value is R18-billon)
Start & Finish Date:2021-2026
Non-financial Performance:
✓ for Transnet RFP for CatCon Site
✓ EIALease agreement with Engen to operate interim truck staging for SANRAL during N3 upgrades.
✓ Submission ROD for KwaXimba I/C issued.
Financial Performance:
✓ R0 spent by City as capital budget reprioritized to fund other projects at implementation stage;
✓ No feedback on BFI application since submission of application in July 2021
✓ Funding by Developer towards completion of Intermodal Facility.
Next Steps
Procurement of consultants and completion of Rapid Assessment on funding options, through World Bank and CSP. Comprehensive bulk services planning once phasing finalized. Phasing finalization delayed by lack of certainty over CatCon.Challenges
Lack of decision-making by Transnet regarding CatCon RFP which was advertised in March 2021. Lack of funding availability for bulk infrastructure, especially kwaXimba I/C.Update on Automative Supply Park (Investment Value = R3-billion)
Start Date and Finish Date: 2021-2023
Non-financial Performance:
✓ Conclusion of MOA with Transnet over Durban Logistics Hub (“DIA”) site;
✓ Appointment of consultants to conduct land due diligence on DIA site;
✓ Appointment of consultants to conduct additional wetland and estuarine studies;
✓ Extension of consultant appointment to cater for unforeseen delays at Illovo South.
Financial Performance:
✓ R0 capital spend thus far by City;
Funding by Developer towards consultant fees
Next Steps:
Resubmission of DBAR for Illovo South Conclusion of SLA Funding Commitment LettersChallenges:
Timeous agreement over offset approach with authorities to enable DBAR; Ability to conclude servicing and platforming within Toyota’s timeframes; Lack of funding for bulk infrastructure for Phase 1A.Update on Durban Film City (R7.5 billion investment)
Start date and Finish Date: 2022-2030
Non-financial Performance
Completed all planning applications: rezoning, subdivision and consolidation.Next Steps / Key Future Actions
Finalise the issuing of A&B certificates and responsibility of service provision Transfer of land from municipality to developer (May 2022) Complete detail project programme Commence with detailed design for phase 1 Prep to commence with constructionChallenges Requiring Unblocking
Clarification of who is responsible for service provision in terms of the sale agreement and thereafter issue the A &B certificates in order to complete the planning application and enable transfer of land from municipality to developer.Update on Virginia Airport & Centrum Sites Redevelopment (Investment Value R10 billion)
Start & Finish Date: 2025 - 2030
Progress to Date
• In March 2021 Council resolved to proceed with RFP inviting potential investors in order to complete MFMA Section 14 (2).
• Draft ToR for RFP completed, however awaiting appointment of Transactional Advisors.
Review and assist with finalization of ToR for RFP Assist with tender evaluation process Assist with finalizing agreement with preferred bidder• Engagement with GTAC currently in progress:
Draft ToR for Transactional Advisors completed Dec 2021 MOPA to be signed in Jan 2022Next Steps
• Complete appointment of Transactional Advisors with GTAC by March 2022.
• Start SCM process for RFP inviting potential investors by July 2022.
Update on Beachwood
Investment value : R2.8 billion
Start and Finish: 2024 - 2030
Progress to Date
Environmental Authorisation for the larger northern development issued on 12 October 2021.
The Developer is busy with the environmental amendment application for the smaller southern development and this will be ready for submission In June 2022.
The SPLUMA application for the larger northern development was submitted to eThekwini Municipality on 31st January 2022.