National Agricultural Marketing Council
Agro-Logistics and Rural Infrastructure Development
2
• Infrastructure Development: Guiding Policies & Acts
• Overview of SIP 11
• Overview of SIP 11 Quarter Report: PICC approved
• Success/Challenges
• Reporting timelines for 2014/2015 year
Outline
3
Infrastructure Development in South
Africa:
Guiding Policies and Acts
4
• 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
SIPs Guiding Policies and Acts
5
Identify 5 year priorities
Develop 20 year project pipeline
Development Objectives: skills, localisation, empowerment,
research & development
Expand maintenance: new and existing infrastructure
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
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
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
Infrastructure Book
Infrastructure is critical to:
PICC’s mandate is to ensure systematic selection, planning and monitoring of large projects
and its Terms Of Reference include the objectives outlined below
Governance Structure of PICC
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
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
7
Geographic SIPs
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 1: Unlocking the northern mineral belt with Waterberg
as catalyst
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
SIP 2: Durban-Free State-Gauteng Logistics
and Industrial Corridor
8
New dam at Mzimvubu with irrigation systems
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 3:
South-Eastern node and corridor development
Geographic SIPs
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 4:
Unlocking the economic opportunities in the
North-West Province
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
SIP 5:
Saldanha-Northern-Cape development
corridor
9
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.
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.
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 8:
Green Energy in support of the South African
economy
SIP 9:
Electricity Generation to support socio-
economic development
SIP 10:
Electricity Transmission and Distribution for all
10
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 6:
Integrated Municipal Infrastructure Project
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.
SIP 7:
Integrated Urban Space and Public Transport
Programme
SIP 11:
Agri-Logistics and Rural
Infrastructure
11
Social Infrastructure SIPs
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.
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.
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.
SIP 12:
Revitalisation of Public Hospitals and other Health Facilities
SIP 13:
National School Build Programme
SIP 14:
Higher Education Infrastructure
12
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.
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 co-
invest 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.
Local Municipal Network
Infraco national
network
Districts
connected into
provincial
backbone
Infraco capacity on WACs.
SIP 16:
SKA & Meerkat
SIP 15:
Expanding access to Communication Technology
Social Infrastructure SIPs
13
Regional SIPs • Population: 1 bn
• Arable land
• Water resources
• Oil, gas and mineral resources
• Growing economies
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.
Bulk water resources:
Lesotho Highlands Hydro Power: DRC
(Grand Inga),
Zambia Lesotho
and Mozambique
(Mphanda Nkuwa)
Electricity
Transmission:
Mozambique
(Cesul)
Transport: Regional
interconnectors
SIP 17:
Regional Integration for African cooperation and development
14 12 November 2012 Status: Confidential
Water and Sanitation SIP
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.
SIP 18:
Developing a sustainable water supply-chain: “Source-to-tap-to-
source
National project covering all nine provinces
15
SIP 11
Agro-Logistics and Rural
Infrastructure
16
The Problem with Agro-Logistics and Rural Infrastructure and SIP 11 aims to address this problem
17
Objectives of SIP 11
• 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
#1
Maximise the use of communal land and productivity of land reform projects
#2
Expand irrigated agriculture by 500 000 Ha
#3
Support agricultural sectors and regions with high productive potential
18 18
AN
INTEGRATE
D AND
INCLUSIVE
RURAL
ECONOMY
Irrigated
agriculture
expanded
Use of communal
land & land reform
farms maximised
Value chains &
regions with high
potential
supported
Rural areas
connected with
rest of the
economy
Port congestion
reduced
Rail capacity
expanded
Rural
agriculture,
including
irrigation,
infrastructure
expanded
Border post,
export control &
bio-security
capacity
expanded
Integrated post-
harvest handling
infrastructure
erected
Other SIPs:
•SIP 2
•SIP 3
•SIP 4
•SIP 6
•SIP 9
•SIP 15
•SIP 18
SIP 11
Ancillary infrastructure Crop storage
Horticulture
infrastructure
Crop & livestock
processing
Irrigation schemes
Fisheries
infrastructure
Forestry
infrastructure
Bio-security &
inspections
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
Ancillary infrastructure
Ancillary infrastructure
Ancillary infrastructure
Ancillary infrastructure
Ancillary infrastructure
Ancillary infrastructure
Anchor projects Relevant SIPs Rural agro-logistics
elements
NDP rural
objectives
NDP rural goal Ancillary projects
SIP 11 Macro Plan and linkages with other SIPs
19
SIP 11: Agri-logistics and rural infrastructure
▪ 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
Components and interconnections with other SIPs
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
21
SIP 11: Anchor Projects Locations: per value chain element
Legend
Crops
Irrigation
Livestock
Horticulture
Fisheries
Forestry
Biosecurity
R&D
Legend
Located within 23 distressed districts
Located outside of 23 distressed districts
SIP 11: Anchor Project locations: relative to 23 distressed districts*
*These districts are
all experiencing high
levels of poverty,
service constraints,
high unemployment
and low levels of
economic
development
(DRDLR, 2013)
23
Overview of the SIP 11 Quarter
Report (To March 2014): PICC
Approved
24
SIP 11 Reporting System to PICC
All Provinces: Ancillary
& Anchor Projects
DAFF: only Anchor (not
covered by Provinces
&
DRDLR: Ancillary &
Anchor
SOE: Anchor Projects
Reporting Organs
NAMC
Process
data &
compile
reports
PICC TTT
PICC Mancom
PICC
Secret
ariat
PICC Council
Cabinet
Lekgotla
DAFF & DRDLR
SIP11 Cordinator
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
26
1. Summary Slides:
Anchor & Ancillary projects
27
Table 1: SIP 11 Projects per Construction Phase
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 Total Jobs Planned
Completed
195
1 975 907 7 236
Construction
320
15 391 932 21 080
Planning
373
8 667 755 26 422
Grand Total
888
26 035 594 54 738
Row Labels Project
Number
Project
Value: R'000
Expenditure to Marc 2013:
R’000
Expenditure to March
2014: R’000
Actual Spent in Q4:
R’000 Total Jobs Planned
Jobs Created in Q4
(Jan-Mar 14)
Anchor Anchor
27 18 837 851 438 965 1 127 931 151 599 34 643
Ancillary Ancillary
861 7 197 743 1 831 767 2 769 497 337 931 20 095
Grand Total Grand Total
888 26 035 594 2 270 732 3 897 428 489 530 54 738
28
Table 2: SIP 11 Projects per Reporting Organ
Row Labels
Project
Number
Project Value:
R'000
Expenditure to Marc
2013: R’000
Expenditure to March
2014: R’000
Actual Spent in Q4:
R’000 Total Jobs Planned
Jobs Created
in Q4 (Jan-Mar
14)
ARC
1 400 000 - -
DAFF
11 6 418 967 63 540 123 337 6 796 19 817
DRDLR
340 3 291 046 863 830 1 353 112 183 587 10 150
128
Eastern Cape - DRDAR
378 424 184 45 507 103 972 12 958 2 206
109
Elundini Local Municiplaity
1 132 160 - 570 -
Free State - DARD
22 592 541 199 597 399 194 - 142
Fruit SA
1 423 000 - -
Gauteng - GDARD
7 27 000 5 000 7 000 - 178
IDC
17 3 874 300 817 290 1 096 634 61 144 6 878
78
KwaZulu Natal - Dept of Agric & Envir
1 857 000 - 63 464 15 866 5 500
130
Limpopo -DoA
16 491 953 58 055 83 454 396 1 705
Mpumalanga - DARDLA
13 2 181 533 53 185 170 141 70 718 1 014
248
NAMC
1 200 000 - 4 395 - 20
North West - DARD
13 624 782 1 450 37 127 15 308 20
246
Northern Cape - ALR&RD
6 899 800 68 101 140 333 16 508 1 884
1 892
Northern Cape - ALR&RD & North West - DARD
1 4 000 000 62 225 113 867 18 295 1 840
247
OBP
1 514 900 - 104 295 57 325 133
-
SAFCOL
1 590 000 - - 600
Western Cape - DoA
57 92 428 32 952 96 533 30 629 2 651
Grand Total
888 26 035 594 2 270 732 3 897 428 489 530 54 738
3 078
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-March 2013
R'000
Sum of Expenditure
To-March 2014 R'000
Sum of Actual
Spent in Q4 of
2013/2014 R'000
Sum of Jobs:
Total
Sum of Q4: 2013
- Jobs: Total
Agricultural & Rural Transport
Sysytems 22 800 960 136 619 230 764 15 202 1 494 5
Electricity Projects 3 2 160 - - - -
Fencing 208 403 739 92 418 186 937 17 777 4 434 165
Marketing & Storage Facilities 70 3 859 810 79 527 223 304 70 594 2 799 66
Other Primary Agricultural
Infrastructure 185 4 781 715 221 637 444 587 76 580 22 134 2 111
Processing Facilities 100 5 771 833 1 105 864 1 614 762 64 267 9 119 107
R&D, College, Schools &
Houses Projects 53 2 286 764 41 341 252 058 101 404 473 73
Recapitalisation &
Development 30 47 927 16 677 42 769 9 415 514
Rural & Agro Tourism 1 40 000 500 500 - - -
Sanitation Projects 22 71 274 19 003 38 677 8 800 504
Social Relief Projects 3 5 836 5 836 6 372 - 25
Soil Rehabilitation Projetcs 38 326 453 276 027 287 964 2 415 1 125 61
Water & Irrigation Projects 153 7 637 124 275 283 568 734 123 076 12 117 490
Grand Total 888 26 035 594 2 270 732 3 897 428 489 530 54 738 3 078
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-March 2013
R'000
Sum of Expenditure
To-March 2014
R'000
Sum of Actual
Spent in Q4 of
2013/2014 R'000
Sum of Jobs:
Total
Sum of Q4:
2013 - Jobs:
Total
Cross Provinces
11
9 956 909
77 265
172 495
25 091
16 393
247
Eastern Cape
456
3 203 507
366 430
534 687
44 945
10 237
194
Free State
48
1 870 785
911 053
1 186 731
705
1 475
Gauteng
25
759 531
154 759
342 771
96 895
438
10
KwaZulu Natal
86
1 544 245
89 802
295 063
95 711
10 337
158
Limpopo
43
705 679
77 890
111 727
3 573
2 319
-
Mpumalanga
40
2 923 240
104 300
252 792
73 219
2 456
248
North West
49
732 632
16 693
74 183
18 835
368
246
Northern Cape
41
3 464 532
317 823
652 679
72 652
6 321
1 970
Western Cape
89
874 533
154 717
274 299
57 903
4 394
5
Grand Total
888
26 035 594
2 270 732
3 897 428
489 530
54 738
3 078
31
2. Detailed Reporting on Anchor
Projects
32 32
Table 5: SIP 11 Anchor Projects at Conceptual Phase Project Project Value
Planned
Jobs Project Phase Infrastructure Type
Status Quos in Q4:
Jan – March 2014
Project Rebirth 1,626,233 Conceptual Fresh Produce Market DAFF applied for Funding at National
Treasury
Afforestation 1,177,000
12,283 Conceptual Forestry
DAFF applied for Funding at National
Treasury.
Storage Infrastructure to Support
Fetsa Tlala 744,000 Conceptual Silo & Storage Facility
NAMC & DAFF applied for Funding at
National Trasury
Lemon oil processing plant 650,000
1,800 Conceptual
Fruit Production &
Processing Plant
Land availability issues. Construction yet
to commence
Cape Malting 600,000
27 Conceptual Processing Plant
Feasibility Phase. Negotiating marketing
off-take agreement with Heineken
Lowveld Sawmill 590,000
600 Conceptual Sawmil No change
Recommissioning of Plantations 561,600
887 Conceptual Forestry
DAFF applied for Funding at National
Treasury.
Vaalharts Citrus project 425,000
1,300 Conceptual Fruit Production
Water tights issues delaying the project
start.
One Stop Shop Fruit & Vege
Handling Facility 423,000 Conceptual Packhouse & Coldstore
NAMC & Fruit SA developing business
case
Integrated Community Based
Poultry Value Chain 400,000 Conceptual
Chicken House &
Processing No change
Mbazwana Forest Rehabilitation 303,458
2,200 Conceptual Forestry
DAFF applied for Funding at National
Treasury.
Qolora Acquaculture 90,000
2,000 Conceptual Fishery NAMC & DAFF developing business case
Port Nolloth Acquaculture 32,500
150 Conceptual Fishery
NAMC & DAFF developing business case
Grand Total 7 622 791 21 247
SIP 11: Agri-logistics and rural infrastructure – Selected Anchor Projects
33
BOOK 2
SIP 11
Makhathini Flats Development Program:
Construction Phase
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter
to June
2013
R’m
Quarter
Septemb
er 2013
R’m
Quarter
to
Decemb
er 2013
R’m
Quarter
to March
2014
R’m
%spend to date N/A N/A 0% 4% 6% 7%
Quarter spend
(R’m)
N/A N/A 13 21 14 16
Total spend to
date (R'm)
N/A N/A 13 34 48 64
Jobs created
(direct jobs)
N/A N/A N/A N/A 5 500
Created
130
constructi
on + 5
550
operation
Localisation % N/A N/A 100% 100% 100% 100%
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 14 570 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 70 000 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 2009 2016
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 March 2014. KZN MEC for
agriculture and environmental affairs will be handing over sites to
contractors in March 2014
Performance
Target or catalytic effect
Aims to revitalize and expand the irrigation systems to
produce crops from 14 570 hectares. More than 70 000
people are anticipated to benefit from the program.
7% spent to date of estimated R857m
Total spent may be higher than reported figures since an unknown amount has been spent since project inception in 2009. Historic expenditure and jobs figures are unavailable.
7% 93%
SIP 11: Agri-logistics and rural infrastructure – Selected Anchor Projects
34
BOOK 2
SIP 11
Northern Cape Vineyard Development:
Construction Phase
Year to March 2012 R’m
Year to March 2013 R’m
Quarter to June 2013 R’m
Quarter September 2013 R’m
Quarter to December 2013 R’m
Quarter to March 2014 R’m
%spend to date
4% 6% 6% 8% 10% 11%
Quarter spend (R’m)
- - 1 18 19 8
Total spend to date (R'm)
34 49 50 68 88 96
Jobs created (direct jobs)
103 107 N/A 1756 48 84
Localisation % 100% 100% 100% 100% 100% 100%
Target / catalytic effect Total project cost Funder Project commence Project complete
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 2013/2014 financial year)
NCDARD 2007 2023
Current status To date over 302.64 ha have been developed and further 500 ha are under development. There is also expansion and maintenance of infrastructure already developed.
Performance
Target or catalytic effect
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)
•There was very little spent for quarter
June 2013 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
2007.
11% 89%
11% spent to date of estimated R870m
% spend changed due to revised project cost
SIP 11: Agri-logistics and rural infrastructure – Selected Anchor Projects
35
Elundini Wool Processing Hub – Eastern
Cape: Post Feasibility Phase
Year to March 2012 R’m
Year to March 2013 R’m
Quarter to June 2013 R’m
Quarter to September 2013 R’m
Quarter to December 201’3 R’m
Quarter to March 2014 R’m
% Spend to Date
- - 0% 1% No change
No change
Quarter spend (R'm)
- - 0.57 0.57 No change
No change
Total spend to date (R'm)
N/A N/A 0.57 1 No change
No change
Jobs created (direct jobs)
N/A
N/A 0 0 No change
No change
Localisation (%)
N/A
N/A 100% 100% No change
No change
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 435 000 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 March 2013 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 2013/2014 financial year.
Performance
Target or catalytic effect
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)
Construction funding has not yet been secured
beyond the funding for feasibility.
Feasibility study completed on October 2013
BOOK 2
SIP 11
1% spent to date of estimated R132m
1% 100%
SIP 11: Agri-logistics and rural infrastructure – Selected Anchor Projects
Country Wide: National Red Meat Development
Project
Year to March 2012 R’m
Year to March 2013 R’m
Quarter to June 2013 R’m
Quarter to Sep 2013 R’m
Quarter to December 2013 R’m
Quarter to March 2014 R’m
% Spend to Date
- - 0% 1% 3% 3%
Quarter spend (R'm)
- - 1 2 2 1
Total spend to date (R'm)
Not Availabl
e
Not Availabl
e
1 3 5 6
Jobs N/A
N/A 16 8 11 160
Localisation (%)
N/A
N/A 100% 100% 100% 100%
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 March 2012 Ongoing
Current status Gxwalubomvu CFP is 100 % complete, and was opened for
operation on March 2014. 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.
Target or catalytic effect
BOOK 2
SIP 11
3% spent to date of estimated R200m
3% 97%
SIP 11: Agri-logistics and rural infrastructure – Selected Anchor Projects
37
Country Wide: Agricultural Colleges: Construction
Phase
Year to March 2012 R’m
Year to March 2013 R’m
Quarter to June 2013 R’m
Quarter to September 2013 R’m
Quarter to December 2013 R’m
Quarter to March 2014 R’m
% Spend to Date
- - 0% 1% 2% 3%
Quarter spend (R'm)
- - 0 12 12 8
Total spend to date (R'm)
N/A N/A
0 12 24 32
Jobs created (direct jobs)
N/A
N/A
0 0 0 2
Localisation (%)
N/A
N/A
100% 100% 100% 100%
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 March 2012 Ongoing
Current status Construction work on 12 agricultural colleges has commenced
Performance
Target or catalytic effect
BOOK 2
SIP 11
3% spent to date of estimated R1200m
3% 97%
SIP 11: Agri-logistics and rural infrastructure – OBP Animal Health
38
BOOK 2
SIP 11
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.
•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 25° 39’ 04.16” South 28° 11’
0.54” East
•EIA is done
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter
to
June
2013
R’m
Quarter
to
Septemb
er 2013
R’m
Quarter
to
Decembe
r 2013
R’m
Quarter
to March
2014
R’m
% Spend to
Date
- - 3% 7% 9% 20%
Quarter 1
spend
- - 16 19 27 57
Total spend to
date Not
Available
Not Available
16 35 47 104
Jobs created
(direct jobs
numbers)
Not Availabl
e
Not Available
N/A N/A 7 2
Localisation
(% of local
spend)
Not Availabl
e
Not Available
N/A N/A 0% 0%
Performance
20% Spent of R514m project cost
Target or catalytic effect
20% 80%
SIP 11: Agri-logistics and rural infrastructure – Mpumalanga Fresh Produce Market
BOOK 2
SIP 11
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 2013/2014 which entails bulk market infrastructure. R595m DRDLR budgeted R216m, additional funding will be sourced through MEGA strategic investors. April 2012 March 2016
Current status 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.
•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.
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter to
June
2013
R’m
Quarter
to
Sep
2013
R’m
Quarter
to Dec
2013
R’m
Quarter
to March
R’m
% Spend to Date - - 9%
9% 9% 10%
Quarter 1 spend - - 21 1 1 5
Total spend to date N/A 30 51 52 53 58
Jobs created (direct
jobs numbers) N/A N/A N/A
N/A N/A N/A
Localisation (% of
local spend) Not
Available
Not Availabl
e
100% 100% 100% 100%
10% pent of R595m project cost
Performance
10% 90%
Target or catalytic effect
EIA application and Eskom power supply deal are delaying the commencement of construction
SIP 11: Agri-logistics and rural infrastructure – Vaalharts and Taung Irrigation Scheme
BOOK 2
SIP 11
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:
March 2008
March 2018
Current status 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.
•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
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter
to June
2013
R’m
Quarter to
Septembe
r 2013
R’m
Quarter
to Dec
2013
R’m
Quarter
to March
2014
R’m
% Spend to Date - - 2% 2% 2% 3%
Quarter 1 spend - - 1 15 17 19
Total spend to
date
- - 62 77 94 113
Jobs created
(direct jobs
numbers)
- - 35 107 163 247
Localisation (% of
local spend)
- - 100% 100% 100% 100%
3% spent to date of estimated R4000m
*The project has funding challenges hence the slow
progress.
Performance
3% 97%
*Northern Cape Department of Agriculture and Rural
Development
**North West Department of Agriculture and Rural
Development .
Target or catalytic effect
41
SIP 11: Agro Processing Projects (IDC)
SIP 11
Noble Resources Soya crushing plant, Mpumalanga
Target / catalytic effect Total project cost Project commence Project complete
Soya Crushing Plant will require 2 000 tons of soya a day. From this, the plant will produce 3 products: Meal (70%), Oil (20%) and Hull (10%) R600m 2011 October 2013
Current status Construction work is about 85% complete, with the major outstanding work, electrical installation, having just started
Jobs 120
Target or catalytic effect
Soya crushing plant, Standerton
1 of 2 Day Silos (front left) and 6
Storage Silos (rear) at the Soya
Crushing Plant
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter
to June
2013
R’m
Quart
er to
Septe
mber
2013
R’m
Quarter
to
Decembe
r 2013
R’m
Jan to
March 2014
% Spend to Date - N/A - - - No change
Quarter 1 spend - N/A
- - - No change
Total spend to
date
- N/A
- - - No change
Jobs created
(direct jobs
numbers)
- N/A - - - No change
Localisation (% of
local spend)
- N/A
- - -
We struggled to get any information from the Project Manager. PICC (Mahomed Vawda) attempted to assist. He has better information on this project
42
SIP 11: Agro Processing Projects (IDC)
SIP 11
BOOK 2
Karsten Table Grape & Processing Facility, NC & WC
Target / catalytic effect Total project cost Project commence Project complete
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
2013
2015
Current status About 30% of project targets has been achieved including new vineyards and processing facilities
Jobs 1 150 Jobs planned
Target or catalytic effect: export products
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter to
June
2013
R’m
Quarter to
September
2013
R’m
Quarter to
December
2013
R’m
Quarter to
March
2014
R’m
% Spend to Date - N/A
4% 20% 20% 24%
Quarter 1 spend - N/A
23 81 0 23
Total spend to date - N/A
23 103 103 127
Jobs created (direct
jobs numbers)
- N/A
100 50 2 51
Localisation (% of local
spend)
- N/A
100 100 100 100
SIP 11: Agro Processing Projects (IDC)
SIP 11
BOOK 2
Green Valley Nuts, Northern Cape
Target / catalytic effect Total project cost Project commence Project complete
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
2011
2018
Current status Processing plant completed. One of the first pecan nut processing plants in the country. Over 30% plantations achieved.
Jobs 118 Jobs planned
Target or catalytic effect: export products
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter to
June
2013
R’m
Quarter to
September
2013
R’m
Quarter to
December
2013
R’m
Quarter to
March
20114
R’m
% Spend to Date - N/A 48%
Quarter 1 spend - N/A 3 13 11 10
Total spend to date - N/A 36
Jobs created (direct
jobs numbers)
- N/A 2 8 5 2
Localisation (% of
local spend)
- N/A 100% 100% 100% 100
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
SIP 11: Agro Processing Projects (IDC)
SIP 11
BOOK 2
Berekesaneng Citrus & Table Grapes, Northern Cape
Target / catalytic effect Total project cost Project commence Project complete
Establish 650 ha of citrus and table grapes for
international markets.
R314 mil
2011
2016
Current status More than 40% of project targets have been achieved. Plantations and construction of facilities progressing.
Jobs 650 Jobs planned
Target or catalytic effect: export products
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter
to June
2013
R’m
Quarter
to
Septem
ber
2013
R’m
Quarter
to
Decembe
r 2013
R’m
Quarter
to March
2014
R’m
% Spend to Date - N/A 23%
Quarter 1 spend - N/A 11 24 10 23
Total spend to
date
- N/A 68
Jobs created - N/A 159 8 6 25
Localisation (%
of local spend)
- N/A 100% 100% 100% 100%
SIP 11: Agri-logistics and rural infrastructure – Tshivhase Tea Estate
BOOK 2
SIP 11
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 2 000 tons of tea from smallholder farmers per annum. R360 m Limpopo Department of Agriculture and Private Funder 2006 April 2013
Current status The plant has been constructed and is operational. Production capacity is 2000 tons of black tea per annum
•Project now at operational phase and has created 2
400 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 23° 57’ 64 7 South 30° 24’ 26 2
East.
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter to
June
2013
R’m
Quarter to
September
2013
R’m
% Spend to Date - N/A 83% 100%
Quarter 1 spend - N/A 0 60
Total spend to date Not Available
N/A 300 360
Jobs created (direct jobs) Not Available
N/A 539 2 400
Localisation (% of local
spend)
Not Available
N/A 100% 100%
Performance
100% spent to date of estimated R360m
100%
Target or catalytic effect
Project Completed
SIP 11: Agri-logistics and rural infrastructure – Russellstone Soya Processing Plant
BOOK 2
SIP 11
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 240 000 tons per annum. R140m IDC May 2012 August 2013
Current status Construction of the soyabean crushing plant was completed in July 2013
Jobs created 50 construction jobs, 1040 indirect jobs
•The project construction was completed in July 2013
Year to
March
2012
R’m
Year to
March
2013
R’m
Quarter to
June
2013
R’m
% Spend to Date 72% 87% 100%
Quarter 1 spend 19 1 18
Total spend to date 102 122 140
Jobs created (direct jobs
numbers)
- 2 50 direct jobs
Localisation (% of local
spend)
100% 100% 100%
Performance
100% spent to date of estimated R140m
100%
Target or catalytic effect
Project Completed
Description Chicken Abattoir
Project Location Reitz, Free State
Project Cost (R’m) R350m
Project commence 2011
Project Phase Completed in 2013
Jobs 1 000 Created Jobs
Grainfield Chickens (Pty) Ltd: Completed Phase
SIP 11: Agro Processing Projects (IDC)
SIP 11
BOOK 2
This project was completed in early 2013. It can not be transform into a new format (historic data not readily available)
48
Success/Challenges
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
50
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 2013
• Two Cabinet Reports: Feb 2014 & June 2014
• SIP 11 Business Plan (draft)
General Challenges and Success
51
Reporting timelines for
2014/2015 year
52
SIP 11 Quarterly Report Submission for 2014/2015
2014/2015 Quarters Final Date for Province
to Submit to NAMC Final Date for NAMC to
Submit to PICC TTT
Quarter One: April – June 2014 30 July 2014 15 August 2015
Quarter Two: July – Sept 2014 30 October 2014 15 November 2014
Quarter Three: Oct – Dec 2014 30 January 2015 15 February 2015
Quarter Four: Jan – Mar 2015 30 April 2015 15 May 2015
53
Thank you: