Agro-Logistics and Rural Infrastructure Development

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











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


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


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%


34

BOOK 2

SIP 11

Northern Cape Vineyard Development:

Construction Phase

Year to March 2012 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


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%


% spend changed due to revised project cost


35

Elundini Wool Processing Hub – Eastern

Cape: Post Feasibility Phase




Quarter to September 2013 R’m

Quarter to December 201’3 R’m


% Spend to Date

- - 0% 1% No change

No change

Quarter spend (R'm)

- - 0.57 0.57 No change

No change


N/A N/A 0.57 1 No change

No change


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


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% 100%


Country Wide: National Red Meat Development

Project




Quarter to Sep 2013 R’m



% Spend to Date

- - 0% 1% 3% 3%

Quarter spend (R'm)

- - 1 2 2 1


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%


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.


BOOK 2

SIP 11


3% 97%


37

Country Wide: Agricultural Colleges: Construction

Phase




Quarter to September 2013 R’m



% Spend to Date

- - 0% 1% 2% 3%

Quarter spend (R'm)

- - 0 12 12 8


N/A N/A

0 12 24 32


N/A

N/A

0 0 0 2

Localisation (%)

N/A

N/A

100% 100% 100% 100%


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


BOOK 2

SIP 11


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


20% 80%

SIP 11: Agri-logistics and rural infrastructure – Mpumalanga Fresh Produce Market

BOOK 2

SIP 11


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%


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%


*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 .


http://www.google.co.za/url?sa=i&source=images&cd=&cad=rja&docid=1D5UK6HrFys31M&tbnid=NdESO7kCvg8h5M:&ved=0CAgQjRwwAA&url=http://showme.co.za/tourism/day-trip-from-kimberley-to-vaalharts-irrigation-scheme/&ei=F-cNUo3HFsqAhQe1oYDQBw&psig=AFQjCNHRJFp_prcB1CSEPIJ6cp-byOyA5Q&ust=1376729239435166

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


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

BOOK 2

Karsten Table Grape & Processing Facility, NC & WC


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 numbers)

- N/A

100 50 2 51

Localisation (% of local

spend)

- N/A

100 100 100 100


SIP 11

BOOK 2

Green Valley Nuts, Northern Cape


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


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 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

BOOK 2

Berekesaneng Citrus & Table Grapes, Northern Cape


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


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


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


spend)

Not Available

N/A 100% 100%

Performance


100%


Project Completed

SIP 11: Agri-logistics and rural infrastructure – Russellstone Soya Processing Plant

BOOK 2

SIP 11


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


spend)

100% 100% 100%

Performance


100%


Project Completed

http://www.google.co.za/imgres?imgurl=http://img.21food.com/20110609/product/1306409263651.jpg&imgrefurl=http://www.21food.com/products/soya-beans-and-soya-bean-oil-419294.html&docid=wCSqetQii7c0yM&tbnid=0LITu4uXkarYNM&w=1146&h=981&ei=vBMOUsmzBaqr0QWukICIBg&ved=0CAQQxiAwAg&iact=c

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

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:

Documents

Agro-Logistics and Rural Infrastructure Development