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DEVELOPMENT NEWS February/March 2013 Issue

Trompsburg community gets state of the art hospital by: Architect: Archi-M Studio

Contractors: Basil Read Goldfields Development Tsima

HOSPITAL BUILDINGS

HOUSING

EXTERNAL WORK

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Comair turnaround gains traction JSE-listed aviation company Comair has boosted its profit after tax to R79.1million for the six months to December 2012, after reporting a loss of R34million in the corresponding six-month period in the prior year. Comair generated revenue of R2.4billion in the period under review – a 20% jump from the R2.05-billion recorded in the first half of the 2012 financial year. The JSE-listed group attributed the rise in revenue to the addition of four new Boeing 737-800s, which combined fuel efficiency with increased revenue per flight, a fuel surcharge on British Airways tickets and a new inventory management system that improved Kulula's pricing capability and revenue integrity processes.

optimistic of further improvements to profitability and cash generation in the second half of the 2013 financial year as it optimised its new enterprise-wide information technology platform and the new fleet – which would provide improved revenue and operating efficiency – over the next few years. Further, Comair expected to start flights from Johannesburg to East London on the Kulula brand on March 1, followed by flights from Johannesburg to Maputo on the British Airways brand from May 2013. Comair declared an interim dividend of 5c a share.

Cost saving initiatives, such as in-house catering, resulted in earnings and headline earnings a share increasing to 16.4c in the six months to December 2012, after a loss of 7.1c and headline loss of 4.9c during the corresponding period the year before. The group remained cautiously

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PPC to build $250m cement plant in Zim Portland Holdings MD Zak Limbada added that the investment would address the expected future increase in cement demand in Zimbabwe.

OR Tambo to see R300m spend, passenger numbers to remain flat

JSE-listed PPC's Zimbabwean subsidiary Portland Holdings on Thursday announced it would build a new one-million-ton-a-year cement plant.

Mashonaland province was at an advanced stage, with significant investment already having been made in exploration drilling at various locations.

He said the money would largely go towards refurbishments and maintenance work, as well as procuring additional X-ray processing capacity.

At its centenary celebration, in Harare, the cement producer said the new plant would service the Harare and central Mozambique markets.

The company would now start a full-scale feasibility study, including the selection of an equipment supplier.

Mekgoe also noted that he expected 2013 passenger numbers to remain flat at what the Airports Company South Africa (Acsa) described as “Africa's biggest and busiest airport”.

“A benchmark cost figure for a greenfield cement plant in Africa is around $250/t of yearly capacity, which would translate into a cost of $250-million for the proposed plant,” PPC corporate strategy and communications executive Kevin Odendaal told Engineering News Online. While funding had not yet been finalised, PPC said this would most likely come from a combination of debt raised on the company's balance sheet and project financing. “We still have headroom on our balance sheet to raise funds. Our current debt to earnings before interest, tax, depreciation and amortisation ratio is 1.5 and we are comfortable with a ration of up to 2.5,” Odendaal noted.

PPC CEO Ketso Gordhan said that the company's investment in Zimbabwe had shown strong growth on the back of a more buoyant and stable economy. “This, coupled with the fact that PPC has received an indigenisation certificate, makes us optimistic about the future of the economy and the country as a whole.”

from flights schedules to retail opportunities and car rental options. Mekgoe said Acsa was looking at developing this app across all of its airports.

Passenger numbers last year reached around 18million, with the peak set in 2007 at just over 19million. ORTIA handled around 6-million passengers in 1993.

Not-yet-approved capital expenditure of R300-million would be spent on sprucing up the OR Tambo International Airport (ORTIA), said ORTIA GM Tebogo Mekgoe on Wednesday.

He added that the construction of additional cement capacity would ensure that PPC continued to remain a key player in the development of infrastructure in Zimbabwe and neighbouring countries. “It is in line with our stated strategy of growing our nonSouth African revenue from the current 21% to at least 40% by 2016,” said Gordhan.

The establishment of the plant would coincide with the construction of a separate grinding facility in the neighbouring territory of Tete, in Mozambique. The preliminary study for the cement plant in the

On-time departures at ORTIA was also expected to increase in 2013, improving from 75% in 2009 to 88% at the beginning of this year.

Mekgoe attributed the lack of growth to tough economic circumstances. He added that airlines' schedules indicated that they too expected zero growth for 2013.

Mekgoe said the remaining 12% were largely related to planes leaving their destinations late, causing rotational delays; inclement weather and technical faults.

He did not ascribe the stagnant growth to the surge of passengers moving through Lanseria Airport, to the west of Johannesburg, although he also acknowledged that the airport, which was being redeveloped and expanded, was luring traffic away from ORTIA in the short term.

“Some opposition, No Competition!”

In the longer term, Acsa was still mulling the development of a new mid-field terminal between ORTIA's two existing runways, as well as expanding its property offering by adding several new buildings around its terminals. A new road would then also need to split from the R24 to enter this new property precinct.

“We get the same questions about Nairobi. Lanseria is not a particular worry to us.” Mekgoe noted that increasing air traffic in South Africa served as an indication of economic growth, which benefited everyone in the aviation industry.

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The land targetted for this development, still in a concept phase, belonged to South African Airways, the South African National Roads Agency Limited and Acsa.

ROQSTEEL KIMBERLEY Owner: Riaan Roets Owner: Jan Venter Mobile: 076 792 9409 Mobile: 082 566 0955 Email: riaan.roqsteel@gmail.com Email: roqsteel@absamail.co.za P.O. Box 2203 Kimberley 8300 Tel: 053 832 1074 Fax: 086 660 8665

Something new passengers at ORTIA could look forward to in 2013 would be the launch of an app that would provide a range of information on the airport,

By adding the mid-field terminal to ORTIA, the airport could grow its capacity by 40-million passengers a year. 3

AFDB to boost geothermal power development in East Africa The AfDB was leading the development of scaling-up the renewable-energy programme of the World Bank's Climate Investment Funds, which would include the financing of a geothermal development project. This formed part of the development finance institution's geothermal development programme for Africa, which saw it working on a series of small-scale geothermal units, adapted to the specific context of each country of the East African Rift Valley that had geothermal potential. The AfDB was also currently busy with the development of a 50 MW power plant, in the Lac Assal region of Djibouti, while playing a central role in defining a geothermal development roadmap in Ethiopia.

Building on the success of its 400 MW Menengai geothermal project, in Kenya, the African Development Bank (AfDB) is focusing on developing Tanzania's geothermal potential, with the required institutional

Additionally, the bank had started the identification process of a site for a 20 MW geothermal plant in the Comoros. “Our ambition is to support the accelerated development of the large untapped geothermal resource potential in the Eastern Africa region. Geothermal development has been relatively limited in this region in the past. “Only about 217 MW of geothermal energy has been developed so far, most of it in Kenya. This is insignificant compared with the region's huge potential, estimated at 10 000 MW in Kenya alone,” AfDB resident representative in Tanzania Tonia Kandiero said.

A new model had emerged to fast-track the development of geothermal resources in the East African Rift Valley and the financing of the early stage and high-risk activities mainly related to drilling by development finance institutions using concessional financing. The financing would go to a special purpose company in charge of undertaking the drilling activities and taking most of the drilling risk. “An eloquent illustration of this new model is the Menengai geothermal development project in Kenya, which the AfDB has recently supported with about $150-million highly concessional financing from its own resources blended with climate investment funds,” AfDB senior power engineer Thierno Bah explained. Once completed, the Menengai project was expected to created significant development opportunities for Kenyan citizens by increasing the energy supply in the country by an amount equivalent to the current consumption needs of 500 000 Kenyan households, 300 000 small businesses and some 1 000 GWh for other businesses and industries. The project would displace around two-million tons of carbon dioxide a year, significantly contributing to the fight against climate change.

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Gecko Namibia proposes development of new deep-water port A new deep-water port is being proposed for development some 25 km north of Swakopmund, in Namibia, with the primary focus on the import and export of bulk materials.

Project developer Gecko Namibia MD Phillip Ellis said a dedicated bulk handling facility was fast becoming essential for the country. The Port of Walvis Bay focused on containers and was developing that line of imports and exports, with a tender recently awarded for a new container terminal. Further, the Port of Walvis Bay is surrounded by residential areas and cannot be easily extended. “The surface area for bulk commodity exports and imports is simply not available [at the Port of Walvis Bay] and Namibia needs a facility that can handle the current and future bulk requirements of the region. It is expected that the region will require capacity of around six-million tons a year in the next decade,” said Ellis. The port would form part of Vision Industrial Park, a 700 hectares development. Its construction was expected to be completed by the second quarter of 2016. It would be constructed in four phases, with the first phase consisting of a 2.5-km-long breakwater and a specialised fuel and gas terminal with a draft of 16 m. The final phase will increase the draft to 23 m. Vision Industrial Park itself would be constructed in two

phases, with the first phase to be completed by December 2015. Central here is a sulphuric acid plant to meet the requirements of the uranium industry. This plant would be energy positive and a desalination and power plant would also be constructed.

Zimbabwe water infrascture status to be surveyed The organisation, which closed off expressions of interest (EOI) in early February, aimed to appoint an institutional consultancy services company by March or April to undertake a baseline survey of the infrastructure.

The high-pressure steam generated by the manufacture of sulphuric acid would be used to generate power, while the low-pressure steam would provide the energy for a thermal vapour compression desalination plant. The plant would produce around 1 500 t/d of acid.

“With ageing superstructures, full latrine pits, [and the] unavailability and unaffordability of cement, about 48% of people in rural communities have resorted to open defecation,” Chinyama said.

Gecko Namibia had finalised the terms of reference for the scoping study and would soon move to a full environmental-impact study for the first phase of Vision Industrial Park.

Unicef Zimbabwe chief of communications Victor Chinyama told Engineering News Online that the survey would form the basis of a $57-million largescale water, sanitation and hygiene (Wash) project in selected rural areas in Matabeleland North, Matabeleland South, Midlands, Masvingo and Mashonaland West. “The objective is to reduce the proportion of people without access to safe water and sanitation in the 33 districts by 25%,” he said. However, the extent of water and sanitation infrastructure deterioration over the past few years was relatively unknown and Unicef aimed to assess the sector to ensure any corrective action was sustainable. The current status of water and sanitation services and coverage in Zimbabwe was unclear; however, the Ministry of Health and Child Welfare estimated that 46% of Zimbabweans had access to safe drinking water and only 30% to basic sanitation facilities. Last year, the Department for International Development (DFID) indicated that 98% of those currently without a safe and reliable drinking water source resided in rural areas.

“Many community water point committees, who manage water points at a local level, have stagnated and pump minders are no longer employed. A 2004 inventory of water and sanitation services estimated that 75% of the 47 000 hand pumps in the country were not functional,” he explained.

The United Nations Children's Fund (Unicef) has moved to have the status of the existing water, sanitation and hygiene infrastructure within 33 rural districts in Zimbabwe reviewed.

Further, subsidies for the sanitation sector had “dried up”, hampering the construction of new facilities.

The second phase of the park would consist of a phosphoric acid and granular fertiliser plant.

The land had been secured and permission granted by the Namibian Cabinet for the project, which would go a long way towards enhancing bulk commodity trading and ease the flow of Namibia's bulk mining products to international markets.

ten years, resulting in a sharp deterioration of the facilities.

Chinyama added that the maintenance and repair of water and sanitation facilities had ceased over the past

The Wash project, which was launched in June last year and would run until June 2016, would provide year-round equitable and sustainable access to safe water supply and sanitation for 2.3-million people. Together with the government of Zimbabwe, and funded by the DFID and the Swiss Development Cooperation, Unicef planned to drill 1 500 new boreholes, as well as rehabilitate 7 300 nonfunctioning boreholes and 33 piped water schemes in each of the districts. The Wash programme would also result in the construction of 15 000 latrines at 1 150 primary and 350 secondary schools in rural areas, as well as a further 500 000 latrines for the most vulnerable 10 000 communities in the provinces. About 10 000 water points and 33 rural piped schemes would be sustainably managed through public–private partnerships. The project would also work to promote the adoption of key sanitation and hygiene practices, such as the regular washing of hands, safe water handling and the proper use of sanitation facilities, by four-million people, including 620 000 school children. Unicef also hoped to establish private supply chains for water supply commodities in the 33 districts, develop back-up systems for operations and maintenance, update the national inventory for rural water and sanitation infrastructure and strengthen rural water and sanitation institutions.

Africa responds to aviation needs

D&B ROBERTS INVESTMENT SERVICES CC CK 89/207/18/23 TA

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mpemoyeni professional engineering 86 Kirby Beller Road GLENVISTA JOHANNEBSURG

011 682 2759 (Office & Fax) 082 579 6249 (Brian's cell) moyeni.mpe@telkomsa.net

PO BOX 14 GLENVISTA 2058

As air traffic to and within Africa increased, many countries on the continent had embarked on airport construction, expansion and upgrading initiatives to boost its aviation infrastructure and capacity, said Airport Council International (ACI) Africa project manager for membership, communication and strategy Tebello Mokhema.

KEY QUALIFICATIONS:

PERSONAL DETAILS: Name: Brian Roberts Date of Birth: Nationality:

13-04-1954 South African

Profession:

Traffic Engineer & Transportation planner Development realization (transportation)

POSITION WITH COMPANY: Managing Director ACADEMIC QUALIFICATIONS: BSc Eng Pr Eng, MSc Eng, MBA REGISTRATIONS: Member of SAICE Member of ECSA

EMPLOYMENT RECORD: 1 March Moyeni 2010 Professional Engineering 2002 - 2010 PDNA Consulting Engineers 1988 - 2002 Brian Roberts & Associates 1986 - 1988 Stanway Edwards Associates Inc

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LANGUAGES: Excellent Average

Traffic Engineer for the impact, access, parking and road safety studies for the full range of development types. Expert witness at tribunal and township appeal board hearings. Transportation planner for rail, road-based private and public transport, nonmotorized transport, freight; including facilities and operations thereto. Input into land use frameworks from strategic to development plans. Project director relating to the road upgrading projects. MAJOR PROJECT EXPERIENCE: Over thirty-three years experience in traffic impact, access, parking and security areas restriction studies for all land use types in urban and rural areas, including housing developments. Projects range from local studies to mega projects of over 1 million m2 GLA. Road Safety audits in metropolitan and rural areas. Blue IQ projects including -The Johannesburg Development Agency – Kliptown redevelopment and Supplier Park (Rosslyn) transportation services.

Speaking at the African Airports Expansion Summit, in Sandton, on Thursday, she commented that, while many African countries were facing political unrest, the majority were settling and hoping to maximise the benefits of growth and meet the rising demand in the tourism industries and grow investments. ACI predicted that from 2012 to 2016, the continent would achieve the fourth-highest air passenger growth rate in the world, averaging about 5.4% a year. Munich Airport Company senior airport adviser Reinhard Zeiler added that Africa's aviation industry, which currently employed about 56million people, would carry three-billion passengers in its airspace this year.

Kopanong (Gauteng Provincial District in the Johannesburg CBD), King George V Hospital Ethekwini and Inotech (Uitenhage Development Initiative) – transportation services.

However, despite this, only 1% of global aviation investment was directed into Africa. This compared with 29% each into North America and the Asia Pacific and 24% into Europe.

ITP, PTP, OLS, RATPLAN and CPTR for Metropolitan and District Municipalities.

While South Africa had mostly completed its airport expansion plans and now had to focus on maintaining and stressing those assets, several countries, including Mozambique, Nigeria, Morocco, Egypt and Libya were undertaking significant expansion programmes, most of which were expected to be completed by next year.

Traffic modelling from intersections to strategic modelling. Extensive traffic data collection including classified traffic counts for pavement design purposes. Project director for development projects covering road upgrading implementation.

Further, Egypt's Cairo Airport, in 2010, kicked off a five-year $436-million rehabilitation and expansion programme; Nigeria was currently remodelling 11 of its 22 airports, which would be completed by June 2014; and Mozambique kicked off a three-year $450-million expansion programme in 2011.

North America and Europe were expected to lag with growth rates of 2.66% and 3.38% a year respectively during the period. Mokhema said Africa hosted seven of the world's ten fastest-growing economies, namely Ethiopia, Mozambique, Congo, Tanzania, Zambia, Nigeria and Ghana.

Traffic engineering and public transportation planning studies along routes and corridors including the Maputo Development Corridor flagship project.

Kenya, in efforts to progress to a category 1 status and boost Nairobi as the commercial and financial hub of East and Central Africa, embarked on two key projects – a $72.3-million and a $1.14-billion upgrade and expansion of the Manda Airstrip and the Jomo Kenyatta International Airport respectively, which would be completed by yearend.

The Asia Pacific and the Middle East were expected to record passenger growth rates of 7.34% and 6.32% a year respectively. Passenger growth in Latin America would reach 6% a year.

Transportation Engineer to Intersite regarding station upgrades including the Shosholoza Meyl facilities at all metropolitan stations as well as the Luxury Coach facilities at Stations.

Transportation planning input into Strategic Development Frameworks, nodal revitalization and upliftment planning; and local Development Plans.

Meanwhile, Libya, which experienced significant unrest in 2011, was “getting back to business” and aimed to increase air traffic by expanding, rehabilitating and upgrading 19 airports over the next two to three years. Zambia, in a $450-million project, was completing many airport renewals, including the construction of the new Harry Mwaanga Nkumbula International Airport, formerly Livingstone; developing the current infrastructure into a domestic terminal and reconstructing the Simon Mwansa Kapwepwe Airport, which was built in 1938 and formerly known as Ndola International Airport.

Traffic Engineer and Transportation Planner Development realization (Transportation) Brian Roberts is a Director of Moyeni Professional Engineering (Pty) Ltd and currently serves as the Managing Director and specializes in Traffic Engineering and Transportation Planning.

was replacing into a commercial centre, and extend its cargo capacity by another 35 000 t.

Morocco targeted a number of its airports in a collective $565-million rehabilitation and expansion programme targeting, besides others, the Oujda, Marrakech-Menara and Mohammed V International airports, which would be completed by year end.

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Togo, owing to its own rapid aviation growth, last year embarked on a $150-million project to construct a new airport hub, convert the airport it 9

HI-TECH ENGINEERING

Trompsburg community Project The Trompsburg hospital is expected to bring the muchneeded health services closer to the local community, when it gets completed in 2013. The hospital is situated next to the N1 South and Xhariep District Municipality and Kopanong Local Municipality offices. This makes it easily accessible as it is within walking distance for sick people and those who will be visiting ill relatives. With the hospital being government-owned, community members will receive free medical treatment, while unemployed health professional will benefit from being employed there. The construction of the hospital started in 2010, and the safety and health officer of the project, Elias Mabaso, revealed that 442 local men and women have been employed since the project’s inception. Mabaso said the new hospital will have first-grade emergency services and will boast a paramedics’ helicopter and ambulances, which will be accommodated within the hospital’s premises. It also provides accommodation for nurses and doctors, which means they will be available to patients round the clock. The ward councillor, Tebello Phafudi, was ecstatic about the project, saying it will change the lives of the poor people in the community. “It is not only the Trompsburg community that is going to benefit from this intervention, but those from neighbouring towns will also be assisted here.” A local community member, Lindiwe Mabusa, said she had waited all her life for the privilege of the hospital, adding that the hospital comes at a crucial time when sick people are forced to travel painstakingly long distances for medical attention.

EASTERN CAPE BRANCH Tel/Fax: 082 824 2562 Cell: 082 824 2562 Cell: 083 308 8389 GONUBIE 2 ANGLE ROAD

Cnr Beta & No 1 Street, Old East End, Bloemfontein P O Box 32280 Fichardtpark Bloemfontein 9317 E-mail: heila@hitechengineering.co.za T: 051-430 0125/7 F: 051-430 0120 BEE Status : Level 4

We are specialised on:

Block A Ground floor: Admission Block A First floor: Administration Block B: Pharmacy Block C: Dentistry Block D: Outpatients clinic Block E: X Ray department

. Maintenance, repairs and new installation on all types of air conditioning commercial and industrial. . Maintenance, repairs and new installation on Cold, Freezer Rooms and mortuary cabinets . Maintenance, repairs and new installation on all types of pumps, fans, plate heat exchangers and heat pumps. . Maintenance, repairs and new installation on Boilers coal, electrical or fuel and prepare boiler for IET. . Maintenance, repairs and new installation on Hot and Cold water reticulation and central heating. . Maintenance, repairs and new installation to electrical controls, starters, switch gear, electrical motors and components.

Portion B Consists of the following Blocks;

HEAD OFFICE Tel: 051 522 6409 Fax: 051 522 8813 Cell: 082 824 2562 Cell: 083 308 8389 28 Lister St, Hospital Park, Bloemfontein, 9301 P.O. Box 32073, Fichardt Park, Bloemfontein, 9317

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Block F: Male ward Block G: Female ward Block H: Sub Acute Block I: Maternity Block M: Theatre Area

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Blocks J: Pediatric ward Block K: Mortuary Block L: Kitchen Block N: Emergency unit Block O: Bulk stores EMS Building

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(b) HOUSING Housing consists of 3 different types of building. Block A and B: Bachelor flats. One building has flats on ground floor and 4 on first floor Block C, D, E and F: 1 Bed room flats. One building has 2 flats on ground floor and 2 on first floor. Block G, H, I, J and: Bed room houses. One building is divided in two houses with 2 bedrooms in each house. (c) EXTERNAL WORKS The external works consists of roads and parking areas. Various Building like Gate house, transformer and generator rooms, water tank and helistop. The external works are programmed not to interfere with the construction of the building.

Some of Our Products:

Method of Construction PROJECT TEAM The Trompsburg hospital will be divided into 3 major parts namely: - Hospital Buildings - Housing - External Work

Trompsburg is a small township which falls under the Xhariep District Municipality, which has always faced a serious healthcare challenge, leading to sick people having to travel either 65 kilometres to Jagersfontein or 100 km’s to Bloemfontein to access medical care 10

(a) HOSPITAL The Building is divided into 3 portion and will be constructed simultaneously. Each portion consists of bases, stub columns, suspended reinforced concrete columns and ring beams, brickwork, aluminium shop fronts with structural steel roof structures and sheeted roof coverings. External brickwork is face bricks and internal plaster and paint. The platform was constructed by a direct contractor before the commencement of our contract. portion A Consists of the following Blocks:

Architect: Archi-M Studio Brass Door Furniture

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Uganda expresses interest in playing role in South Sudan-to-Kenya pipeline The current plan is to build the pipeline from South Sudan's oilfields to Kenya's Port of Lamu, which is currently under construction and should be completed in 2015. Routing the pipeline through Uganda will increase the distance to 435 km. “We should form a joint venture to build the pipeline in order to benefit the whole region because many countries would contribute towards its construction and also use it,” says Uganda Prime Minister Amama Mbabazi. Hitherto, Uganda has been indifferent to the project, but the East African country now wants to be incorporated in the South Sudan and Kenya pipeline project after it became apparent another pipeline project involving Uganda, Kenya and Rwanda had come a cropper. The contract for the Kenya–Uganda–Rwanda pipeline was awarded to Tamoil East Africa back in 2006 but the company has been unable to implement it owing to financial constraints.

Uganda has expressed interest in becoming party to a planned oil pipeline project linking South Sudan and Kenya in a bid to secure a means of transporting its own oil to the coast. 12

Tamoil East Africa is a subsidiary of Libyan African Investment Portfolio, whose assets were frozen following the collapse of the former regime of Muammar Gaddafi. Landlocked Uganda was banking on the 320 km line from Eldoret, in Kenya, to Kampala, the Ugandan capital city, with an extension to Kigali, in Rwanda. However, failure by Tamoil East Africa to implement the

project has forced the country to explore other means of transporting its oil. Uganda is preparing to start commercial oil production. Tullow Oil, the British company that discovered vast oil resources in the country, estimated at two billion barrels, and its partners, Total South Africa and CNOOC, have announced their intention to embark on the production of small quantities of crude. The quest by Uganda to be integrated into the South Sudan and Kenya pipeline project comes at a time when the two countries are seeking financing for the 2 000 km pipeline, which has a $3-billion price tag. South Sudan and Kenya have already signed a bidding memorandum of understanding for the project, whose construction is scheduled to start in June next year. The project is expected to free landlocked South Sudan from depending on infrastructure in its northern neighbour, from which it seceded in July 2011 and with which it does not enjoy cordial relations. South Sudan, controls over 75% of the oil wealth of the formerly unified country, with a daily production capacity of 350 000 bbl.

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QUAKE SEAL cc P.O. Box 176 Honeydew 2040. Tel: 011 022 8211, Cell: 082 936 2669 Fax: 086 687 4500, Member: C Langmore, Reg. No. CC 2007/106200/23 Email: info@quakeseal.co.za Website: www.quakeseal.co.za

Harare/Beitbridge road to be upgraded, tolled The study – which would be carried out in association with five Zimbabwean partner firms – involved traffic studies, development of a toll strategy, engineering analysis and concept design, environmental-impact scoping, an economic feasibility study, financial modelling and preparation of a draft project information memorandum for investors. The cost of rehabilitating and improving the road was estimated to be in excess of $600-million, some of which would be funded as a loan against revenue from the tolls. The feasibility project was urgently required to provide an indication of viability as interested funders – the Development Bank of Southern Africa and the African Development Bank – needed to make a decision about committing funding by March 2013. The Harare to Beitbridge road comprised a portion of the trunk road network of Zimbabwe, as well as the North to South Corridor – one of the major arterial links in the regional road network. The Road was the most direct link between the capital cities of Harare, in Zimbabwe, and Pretoria, in South Africa, and provided landlocked Zambia access to the Indian Ocean ports of Durban and Richards Bay. “The road carries between 1 000 and 5 000 vehicles a day, with the heavier flows in the proximity of Harare. Of significance is the fact that a high proportion of this traffic are trucks carrying goods, equipment and machinery

that support the Zimbabwean economic recovery,” Royal HaskoningDHV project manager Phil Hasluck explained. The 580-km long road project, which started just outside Harare and ended at the Beitbridge border post, was a single carriageway, two-lane road with numerous bridges. Although well maintained in the past, the road was over 40 years old and was rapidly deteriorating under increased heavy vehicle traffic. Alternatives to improve it as a single carriageway road or to add certain sections as dual carriageway would be assessed.

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The Department of Roads in Zimbabwe has commissioned Royal HaskoningDHV to conduct a feasibility study to determine the viability of construction and tolling to improve the road between Harare and the Beitbridge border post. 13

Africa needs $50bn rail investment over next ten years Coca-Cola Canners of Southern Africa, a subsidiary of Coca-Cola Southern Africa, expected to deliver its range of beverages in the new cans to the Gauteng market later this year and to the rest of the country during 2014.

South Africa's sole beverage can manufacturer Bevcan has been awarded a five-year, R5.6-billion contract to produce and supply lightweight aluminium cans for CocaCola's portfolio of beverages. Bevcan was in the process of replacing its production line of tin-plated steel beverage cans with aluminiumbodied cans – in line with global trends – with the first locally produced all-aluminium cans set to hit the market in mid-2013. “Our infrastructure investment for this project includes the installation of a new high-speed line at one of our Gauteng plants, which is due for commissioning in May 2013,” Bevcan MD Erik Smuts said.

South Africa's beverage cans, both soft drinks and beer cans, are currently produced with a steel body and aluminium can-ends and tabs. “The new aluminium can is in line with best global practice and trends in packaging. It is also light and easy-to-carry and will appeal to today's environmentally conscious consumer,” Coca-Cola Southern Africa president Therese Gearhart commented, adding that less fuel and energy would be required for transportation owing to the lightweight properties of aluminium cans. JSE-listed Hulamin, which supplies the aluminium products for can-ends and tabs, last year signed a twoand-a-half-year aluminium sheeting supply deal with Bevcan.

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MM&G Mining and Engineering Services MM&G overall winner at 2012 Steel Awards MM&G Mining & Engineering Services walked away as the overall winner at the 2012 Steel with the first items of diameter studies, and the first trial assembly done in our Boksburg Awards. The giant chimney flues and platform steelwork project the company completed at the Workshop,” said Human. Medupi Power Station in Lephalale, Limpopo, also won the Mining and Industrial category prize. All the components for the first three flue gas ducts, for the South Chimney, were due for completion by 20 March 2011, a date to which MM&G kept as a result of excellent planning and The annual Steel Awards, presented simultaneously in Johannesburg, Durban and Cape execution of the project, said Vos. The completion date for the second delivery of flue gas Town on 6 September, serve to recognise and applaud exceptional achievements within the ducts, for the North Chimney, had been set for 20 October 2011, and was completed early on 9 steel industry and aim to recognise and promote excellence and entrepreneurial development September 2011. in the industry, principally in South Africa, by profiling innovative thinking and successes from the industry, both locally and internationally. The total design of the interior stiffening and fabrication methodology for the flue gas ducts was done by MM&G, and was monitored by a computer programme specifically written and Boksburg based MM&G competed with entries from local as well as international individuals developed for this project in-house. Just in time delivery of value added raw material from the and companies involved in the production, conversion, distribution, use of recommendation of Aveng Trident Steel group contributed to the successful delivery of the entire project. carbon and stainless steel. “The strategy was developed around a definite goal with handpicked individuals to deliver the MM&G received the order for a fast track project on the Medupi Power Station in December project. The fact that the same project team worked on the project from commencement to 2009, said CEO Dawie Vos. completion, played a considerable role in our success. The same key people who designed and planned the project, also brought it to a successful conclusion, and are still with the “The project entailed the supply and fabrication of flue gas ducting for two 220 meter high company today,” said Vos. chimneys, each containing three flues. This was the largest project MM&G had ever attempted and completed successfully in its 34 year history. The timely construction and handover of 120 MM&G did face some safety challenges on the South Chimney with two lost time injuries steel units, consisting of 18 stainless steel units (316L material), 102 mild steel units (S355JR during November 2010. They learned from the mistakes made, and after that MM&G material) and the remainder of 24 mild steel lobsters (S355JR material) are evidence that maintained an excellent safety record throughout the project. The fabrication and erection of MM&G can compete with the best,” said a proud Vos. the flue gas ducts was completed without fatalities to the workforce, consisting of an average of 80 workers, increasing to a work crew of 107 at peak production times. The judges stated that in spite of strong competition from the other four category winners, the fabrication of the complex platforms and flue cans for the world-class Medupi chimneys truly MM&G is particularly proud of the fact that the project was completed with local content and showed the “wow” factor that separates the 2012 Steel Awards winner from the rest. workforce. The total weight of all the units was approximately 2400 tonnes, of which the stainless steel component accounted for 330 tonnes and the mild steel components, including lobster, accounted for 2070 tonnes. Jurie Human, project director, said there seemed to be a perception that MM&G would be unable to complete the project within the agreed upon time frame.

“There were challenges to overcome, some delays due to labour strikes and xenophobic unrest, as well as the harsh weather circumstances in which the project had to be completed. Our workforce endured and persevered in temperatures that had the mercury rising to up to 54°C. Despite these potential stumbling blocks MM&G managed to complete the work within the agreed upon time frame,” said Vos.

MM&G maintained an excellent quality record: The company experienced no quality rejections “We proved the nay-sayers wrong. We fabricated our own workshop in record time on the throughout the project, and to date there have been no rejections due to any defects. This Medupi site during January and March 2010, and the project started in all earnest in May 2010 success can be attributed to MM&G's 100% ISO compliant Quality system, said Vos.

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DoE to release baseload IPP procurement documents in Q3 The Department of Energy (DoE) expects to release procurement documents for a baseload independent power producer (IPP) programme during the third quarter of 2013, and has confirmed that the programme will be in accordance with a determination released by Energy Minister Dipuo Peters on December 19, 2012.

the schedule for that particular programme. It is important to note though that the megawatts should be on grid as indicated in the different determinations.”

The determination, which was published with the concurrence of National Energy Regulator of South Africa chairperson Cecilia Khuzwayo, outlines the DoE's intention to procure from IPPs generating power from coal, natural gas and hydroelectric facilities.

In December, the department also postponed the third bid-window submission deadline for the renewables procurement programme from May 7 to August 19, to incorporate lessons from the first two bid windows.

Envisaged is the introduction of 2 500 MW of private coal-fired capacity between 2014 and 2024, 2 652 MW of new natural gas and diesel-fuelled power generation between 2021 and 3025, and 2 609 MW of mostly imported hydropower between 2022 and 2024.

The DoE tells Engineering News Online that the documents are still under development and it is, thus, difficult to outline any precise timeframe for the process.

The IPP electricity will be procured through one or more procurement programmes and will be purchased either by Eskom, or by any successor entity designated by the Energy Minister.

The DoE has also not scheduled a bidders' conference, but says that one might be necessary for the new technologies.

The approach to be taken will be presented in the form of a new request for proposals, which should be published in February and will be based on a separate Ministerial determination covering renewables, which was also published on December 19. The Department has already announced that it will procure at least 1 000 MW of renewables capacity yearly and has allocated a further 3 200 MW to various technologies. This figure is additional to the 3 625 MW currently being procured.

“The procurement documents will be released with

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The newly independent nation is also inviting multinational companies in the oil industry to partner with it in the implementation of the projects. “The hostility from our neighbour– Sudan– has made it paramount for us to build our own pipelines and we are talking with international lenders to raise the funds,” says Deputy Telecommunications Minister Khamisa Wani-Ndah.

9, 2011, giving it custody of 75% of the oil wealth. The two neighbours have been feuding over transportation fees, with South Sudan accusing its neighbor of economic sabotage after Khartoum imposed a $22.80/bl transit fee. South Sudan also claims that Sudan has seized oil worth $850-million in the Port of Sudan and prevented the sale of oil worth more than $400-million by restricting vessels from entering or leaving the port.

South Sudan is banking on international lenders for the $4billion needed to build oil pipelines and end its dependence on facilities in its antagonistic northern neighbour.

For its part, Sudan is demanding $1 billion in unpaid transit fees since July last year.

A deal has also been signed for another pipeline to the Port of Djibouti, on the Red Sea, through neighbouring Ethiopia.

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A senior government official says the country is already in negotiations with various international lenders with a view to raising the funds needed for oil pipelines to ports in Kenya and Djibouti.

South Sudan, which has been forced to halt oil production owing to altercations with Sudan over transit fees, has signed a memorandum of understanding with Kenya for the construction of an oil pipeline connecting the two countries.

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Building whisperer set to help African cities wise up Experts are saying that South African cities have the

According to Innov8 Africa Group CEO Anthony Nartey,

potential to be the first truly “smart” cities on the African

recent studies by Pike Research shows that the market for

continent and develop significant competitive advantage

commercial building automation systems will double over

in this regard, if the conversation starts now.

the next decade, from 72.5 billion dollars in 2011 to 146.4

In South Africa, World Bank statistics show that 62% of South Africa's population live in urban areas. This is predicted to grow by 1.2% annually. With more of the population living and working in urban areas across the country, and the energy demand expected to double by 2030, the need to create sustainable cities is becoming non negotiable.

billion dollars in 2021 and if South Africa is quick on the uptake in adopting smart building technology it will be at the vanguard of a new global movement.

Concept to closure

“We are at the tipping point. There is vast potential in South Africa to become a global hub of expertise in this area,” he said. “The country has the intellectual resources

With the unprecedented proliferation of smart sensors

necessary and there is significant investment interest.”

and control systems over the last decade, many buildings have the ability to measure, sense and see the exact

Director of the UCT GSB Walter Baets agrees: “We need

condition of practically everything in them. But these

to move in this direction if we are committed to

systems often operate independently; understanding a

sustainability that is also inclusive,” he said. “You can't

building from a holistic point of view requires collaboration

have true sustainability unless it involves people, and

between facilities and IT organisations at new levels and

urban infrastructure is a critical part of this.”

creates the need for new transformational skills in organisations and business.

“Smart buildings is not only about saving energy, natural

“The ultimate smart city, building or campus is one where

of life. David Bartlett is the perfect person to talk about

resources and money, but it's also about improving quality

According to David Bartlett, head of IBM's Smarter Buildings initiative, there is a global urgency to create smarter cities, corporate buildings and campuses. Buildings currently consume over 40% of the world's energy and emit more carbon dioxide into the environment than cars. By 2025, buildings will be the largest energy consumers on earth with energy costs alone representing about 30% of an office building's total operating costs. What's more, up to 50% of energy and water used in buildings is wasted on a v e r a g e . W h i l e 85% of companies say they are focused on sustainability, only 30% collect data with enough frequency to make changes needed to improve their building's efficiency. 18

all the systems share information with each other,” says

what exists, what's available, what is still to come, and to

Bartlett, who adds that smarter buildings can save as

get this very important conversation going,” says Baets.

much as 40% on energy costs, 50% on water, and up to 30% on building maintenance.

Bartlett, who has worked with numerous university and cities in the US and Europe to implement smarter systems

Bartlett has been heralded as the “building whisperer” by

– often resulting in radical savings and improved quality of

the likes of Forbes and Facilities Engineering on account

life – says that he was inspired to make the trip to South

of his insight into smarter infrastructure solutions, how

Africa because he thinks there is an opportunity to do the

wasteful energy practices affect the bottom line and the

same at UCT and in Cape Town.

enormous potential of sustainability practices for businesses of all sizes. Both organisations are leading the charge in developing expertise and capacity in sustainable cities and solutions. Innov8 Africa is investing heavily in building a sustainability solutions practice and UCT is the first university on the continent to sign the International Sustainable University Network Charter. The two are in discussions to launch a first-of-its-kind postgraduate diploma in smart building innovation in order to lay the groundwork for an expected surge of interest in this area. UCT has also recently partnered with Innov8 Africa to make its campuses smarter by building on its existing IT infrastructure to introduce sustainability controls, of utilities and buildings.

“Universities are the natural game changer (towards more sustainable cities) because they are able to think horizontally and they hold a trusted position in cities. Their agenda is to help move things forward,” he said. “I see the University of Cape Town and the City of Cape Town as being the next big story.”

Kenya plans to replace Mombasa–Nairobi oil Pipeline Kenya Pipeline Company (KPC) said on Wednesday it was inviting proposals for the design of the 450 km pipeline from east Africa's trade gateway to feed landlocked growing economies which rely on Kenya's Mombasa Port for fuel imports. "The new pipeline is designed to meet petroleum products demand for the Eastern Africa region up to the year 2044," the company said in a statement. KPC said the new pipeline would complement and eventually replace the existing pipeline linking Mombasa to Nairobi that has outlived its 30-year life span and is prone to ruptures.

which is slow and unreliable owing to breakdown of trucks and damaged roads. The new pipeline is expected to ease some of the burden. KPC's existing pipeline runs From Mombasa to Nairobi, and onwards to the town of Nakuru in the west, and then forks to two other towns in the region Eldoret and Kisumu. Kenya and Uganda also hope to revive plans to extend the pipeline past Eldoret to Uganda's capital Kampala, a distance of about 350 km, to give Uganda an option for accessing its fuel, much of which is transported by road.

Kenya plans to construct a new $300-million fuel pipeline from the port of Mombasa to the capital to replace an older one, and possibly extend it to Uganda.

Many of the products from Kenya's only refinery in Mombasa have to be trucked to countries in the region, 19

Suez canal rate hike risks diverting ships round Cape - industry Tolls paid by ships using the strategic waterway are an important foreign currency earner for Egypt, bringing in around $5 billion a year at a time when the country faces political unrest and economic turmoil. "Most international ship operators are trading in the worst shipping markets in living memory due to there being too many ships chasing too few cargoes," Peter Hinchliffe, secretary general of the International Chamber of Shipping (ICS), said on Monday. "This is not the time for the SCA to be announcing increases, which for some trades seem very dramatic indeed, and which many shipowners will find impossible to pass on to their customers," said Hinchliffe, whose association represents over 80 percent of the world's merchant fleet. Canal officials could not be immediately be reached for comment. The 192-km (120-mile) Suez Canal is the quickest sea route between Asia and Europe, saving an estimated 15 days of journey time on average. "The effect of these increases will be to give a spur to those owners who may already be considering the Cape route as a serious alternative," said Hinchliffe.

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slow their speed to cut fuel consumption. At the same time unrest in Egypt is causing unease.

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"Recent events in Egypt ... are generating concerns about the security of the canal itself," the ICS said. Almost 60 people have been killed in violence that has flared on and off since January 24. The protests have been fuelled by anger at what activists see as President Mohamed Mursi's attempt to monopolise power, as well as a sense of social and economic malaise in Egypt. A state of emergency remains in force in three cities near the Suez Canal that have also been the scene of protests against Mursi and the Muslim Brotherhood, the Islamist group that propelled him to power in a June election. "We are also disappointed by the lack of consultation that preceded these (latest toll) increases. To the SCA's credit, the canal has so far continued to function smoothly," Hinchliffe added. "We recognise that, with pressure on Egypt's tourism and its other economic problems, there is increased pressure on the SCA to maintain what is now the country's biggest source of foreign revenue.â&#x20AC;?

The SCA said last week it would raise fees by between 2 and 5 percent starting on May 1. Last year tolls were raised by 3 percent for all ships passing through the canal starting March 2012. The SCA said at the time it had not raised fees in the three previous years.

The decision by Egypt's Suez Canal Authority (SCA) to raise toll fees could force ship owners, already battling a deep slump in their sector, to re-route vessels around the Cape of Good Hope, a major industry association

"They (Egypt) are in desperate need of funds," said Alan Fraser, Middle East analyst with security firm AKE. "Mostly because the IMF (International Monetary Fund) loan they are looking to get, they are waiting for agreement on that." Egypt's government signed a preliminary agreement for a $4.8 billion loan from the IMF in November, but the formal signing was delayed due to political strife.

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SLOW STEAMING ROUND THE CAPE The ICS said the route around Africa via the Cape was becoming relatively less expensive as ships have resorted to slow steaming - a method where ships

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Fedusa to engage World Bank, IMF on labour issues The Federation of Unions of South Africa (Fedusa) would be part of a high-level delegation of international trade union leaders meeting with the World Bank and International Monetary Fund (IMF) next week, the organisation reported on Friday. The delegation, led by International Trade Union Confederation (ITUC) general-secretary Sharan Burrow, would engage with World Bank head Jim Yong Kim and IMF chief Christine Lagarde, as well as several international financial institutions. The meetings took place in Washington from February 12 to 14. “It was imperative for Fedusa to be part of this delegation because the discussions was focus on how the policies of the World Bank and the IMF – such as IMF loan conditionality and programmes – impact on workers across the globe,” said Fedusa generalsecretary Dennis George. The consultations would also look at measures to ensure that 'decent work' was incorporated in the international agenda, he noted.

issues to prevent intensified poverty as a result of market and government failure,” said George. Fedusa would further call for safeguards in World Bank projects and would press for special World Bank assistance for South Africa to achieve a just transition to a 'green' economy.

“It would be unfair to expect South Africa to close all our coal mines, which would result in massive retrenchments,” noted George.

Fedusa would also be meeting with representatives of the American Federation of Labour and Congress of Industrial Organisations to discuss the Future of Worker Representation project that sought to investigate new models for growing trade union membership and the representation of workers. Global trade unions recognised that the global labour movement offered innovative approaches to building worker power, Fedusa said. “It is essential that we learn from our labour colleagues how to organise and build grassroots movements in a changing global context, where there are different configurations of employment in the workplace,” George added.

“It is of great importance that the IMF and World Bank place a stronger programme focus on job creation, labour standards and the meaningful impact of gender

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Solar energy to become cheaper than electricity – PPA Energy While solar energy was currently cheaper than energy derived from diesel plants and generators that were often used as a substitute to conventional coal-fired power, it remained more expensive than coal-fired electricity generation. “This scenario is set to change,” said energy management consultancy firm PPA Energy South Africa executive director Graeme Chown.

MegChem executes small to medium sized projects engaging with clients in various contracting strategies including EPCm, EPC and Turnkey. Our contribution could involve any portion of the typical project life cycle ranging from Concept Design, Basic Design, Detail Design, Procurement, Construction through to Commissioning. However, our main focus is on projects where the design component is substantial. Project Managers are appointed to take control of the execution of each project and to ensure that the client's project objectives are accomplished in terms of Cost, Schedule, Quality and Safety. A project office team executes all daily project activities in accordance with our ISO certified Quality Management System using Prolog® as backbone. Due to our emphasis on projects involving multi-disciplinary design, we assign Engineering Managers to control design integrity and to manage inter-disciplinary design interfaces.

He noted that solar panel prices in South Africa were decreasing at around 10% a year and predicted that it would take between three and five years for solar electricity to become cheaper than coal-fired electricity, should Eskom be granted its requested 16%-a-year tariff hike for the next five years. Pretoria-based solar electricity development firm Subsolar Energy owner and MD Dick Berlijn added that medium-sized businesses with high-energy needs were most vulnerable to price increases and the proposed tariff escalations. "These businesses would, in particular, benefit from solar systems, owing to lower energy demand than larger businesses,” he said. During the public hearings on Eskom's tariff hike application in January, the National Union of Metalworkers (NUM) said that 37.5% of energyintensive companies in South Africa would, in due course, have to close down if the tariff increases were granted. Berlijn said that, while the NUM had primarily referred to heavy industry and mining, other segments of the economy would also be hard hit. Chown believed that solar energy could help South African companies to overcome the future financial

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implications of electricity price hikes should the solar energy industry market the energy technology as a practical solution.

“It is time for solar to be seen as a practical solution and it is up to the industry to market solar as such, so that people start to see it as a necessity," Rice said.

Brand expert Andrew Rice added that, while it was true that the South African private sector was increasingly viewing solar as a viable solution, perceptions were lagging behind the capabilities of the technology. He noted that the marketing of solar energy should not revolve around the 'green' element of its powergeneration capability, but rather around its practicalities. The Solar Future South Africa conference, to be held at the Cape Town International Convention Centre on February 12, was set to address the issue of solar marketability, along with several other key themes. The event further aimed to provide insight into South Africa's solar-power generation capacity, the impact of global solar developments on the cost of solar energy, the position of solar in Eskom's future energy mix and the intricacies involved in the development of solar photovoltaic (PV) plants. Besides Chown, Rice and Berlijn, the speaker lineup for the conference included Eskom electricity planning and market development GM Callie Fabricius, international solar PV expert Jigar Shah, investment banker Bhavtik Vallabhjee and the National Treasury's Karen Breytenbach, as well as various representatives from the Department of Energy and global energy contractors and developers.

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Africa responds to aviation needs As air traffic to and within Africa increased, many countries on the continent had embarked on airport construction, expansion and upgrading initiatives to boost its aviation infrastructure and capacity, said Airport Council International (ACI) Africa project manager for membership, communication and strategy Tebello Mokhema. Speaking at the African Airports Expansion Summit, in Sandton, on Thursday, she commented that, while many African countries were facing political unrest, the majority were settling and hoping to maximise the benefits of growth and meet the rising demand in the tourism industries and grow investments. ACI predicted that from 2012 to 2016, the continent would achieve the fourth-highest air passenger growth rate in the world, averaging about 5.4% a year. Munich Airport Company senior airport adviser Reinhard Zeiler added that Africa's aviation industry, which currently employed about 56-million people, would carry three-billion passengers in its airspace this year. The Asia Pacific and the Middle East were expected to record passenger growth rates of 7.34% and 6.32% a year respectively. Passenger growth in Latin America would reach 6% a year.

Mokhema said Africa hosted seven of the world's ten fastest-growing economies, namely Ethiopia, Mozambique, Congo, Tanzania, Zambia, Nigeria and Ghana.

North America and Europe were expected to lag with growth rates of 2.66% and 3.38% a year respectively during the period., despite this, only 1% of global aviation investment was directed into Africa. This compared with 29% each into North America and the Asia Pacific and 24% into Europe. While South Africa had mostly completed its airport expansion plans and now had to focus on maintaining and stressing those assets, several countries, including Mozambique, Nigeria, Morocco, Egypt and Libya were undertaking significant expansion programmes, most of which were expected to be completed by next year.

targeting, besides others, the Oujda, Marrakech-Menara and Mohammed V International airports, which would be completed by the end of the year. Togo, owing to its own rapid aviation growth, last year embarked on a $150-million project to construct a new airport hub, convert the airport it was replacing into a commercial centre, and extend its cargo capacity by another 35 000 t. Meanwhile, Libya, which experienced significant unrest in 2011, was “getting back to business” and aimed to increase air traffic by expanding, rehabilitating and upgrading 19 airports over the next two to three years. Zambia, in a $450-million project, was completing many airport renewals, including the construction of the new Harry Mwaanga Nkumbula International Airport, formerly Livingstone; developing the current infrastructure into a domestic terminal and reconstructing the Simon Mwansa Kapwepwe Airport, which was built in 1938 and formerly known as Ndola International Airport.

Lonrho 'well positioned' for 2013 – board Throughout 2012, the group continued to develop its operational businesses and Lonrho remained confident that these were aligned with the strongest growth opportunities in Africa. CEO Geoffrey White highlighted that the group's strategic decision to focus on improving margins across the group had not had a demonstrable impact on the latter part of 2012 but had positioned the group to approach 2013 from a stronger and more reliable base with much improved budgeting. “Each business division has, during the year, transitioned to become cash generative for the group and the balance sheet is satisfactory to support the group and the board's plans,” he stated.

had been slower than expected in the fourth quarter of the year, impacting on revenue and profitability for the full year. The board expected to report a net operating loss of between £3-million and £5-million for the full year. “Quarter four has been demanding in several areas of the business where the lead times on delivering new product lines have proven longer than previously expected. While the reporting of a net operating loss in 2012 is disappointing, the shortfalls have largely reflected delays in the timing of delivery of major contracts or project implementationand not any weakness in the underlying business models, which remain very positive,” said White.

Lonrho noted, however, that progress in certain areas

JSE-listed Lonrho on Monday said it believed the strategic action taken by it in the third and fourth quarters of 2012, to focus on increasing margins through operational efficiencies and to build long-term sustainable customer relationships, coupled with its decision to withdraw from less profitable lines of business, had positioned it well for 2013.

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Further, Egypt's Cairo Airport, in 2010, kicked off a fiveyear $436-million rehabilitation and expansion programme; Nigeria was currently remodelling 11 of its 22 airports, which would be completed by June 2014; and Mozambique kicked off a three-year $450-million expansion programme in 2011.

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Zambia warns oil firms on licences: use them or lose them Zambia's mines and energy said on Monday the government would revoke oil exploration licences of companies that had been awarded them but had not started probing for crude. A hydrocarbon scramble is underway in central and eastern Africa, sparked by oil finds in Uganda and promising gas discoveries off the coasts of Tanzania and Mozambique.

"We will find oil. Democratic Republic of Congo has it. Angola has it. Tanzania has found gas. God cannot be unfair, we are at the centre," he said. Companies that have been granted oil exploration licences in Zambia include Glint Energy, Oando Energy Resources, Majetu, and Barotse Petroleum Company.

"For those who don't give us results, we'll take their licences," Yamfwa Mukanga told Reuters on the sidelines of a mining conference in Cape Town. He did not say which companies risked losing their permits. "The law is very clear. When you have been given a licence within 90 says you are supposed to start reporting. But some companies were given licences in 2008 and nothing is happening," he said. Mukanga said discoveries in neighbouring countries raised hopes that oil would also be found in Zambia, which is Africa's top copper producer. 29

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Zambia says will not slide back into debt trap Zambia will be careful not to fall back into unsustainable levels of debt as state-owned firms look to borrow from international markets to invest in infrastructure projects, deputy finance minister Miles Sampa said on Tuesday. The fast-growing southern African nation's debut $750million bond was 15 times oversubscribed last year and State-owned companies now want to ride on the goodwill to borrow, Sampa said.

State-owned power company Zesco plans to borrow $2billion from investors in Britain and the US to build new power stations.

International lenders including the International Monetary Fund and the World Bank wrote off about $7-billion of Zambia's debt in 2006. Since then, Africa's top copper producer has posted annual economic growth in excess of 6%.

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The Road Development Agency is also planning a $1.5billion bond and state railway operator Zambia Railways and a municipality also want to issue $500 million bonds, Sampa said. "These are very healthy plans because the companies need to expand but we will ensure that everything remains within our debt structure," Sampa told Reuters.

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Work on Kenya–South Sudan oil pipeline expected to start in June 2013 Just days after South Sudan announced it would resume oil production in September after reaching a deal with Sudan on transit fees, the country signed an agreement with Kenya for the construction of the 2 000 km pipeline.

Construction of an oil pipeline linking landlocked South Sudan and Kenya will start in June next year and is expected to cost $3- billion. 30

The pipeline will link South Sudan's oil fields with the Port of Lamu, which is under construction in Kenya and is expected to offer a permanent solution for South Sudan to export its oil when it is completed in 2015. The agreement was signed in Nairobi by South Sudan Petroleum and Mining Minister Stephen Dhiew Dau and Kenya Energy Minister Kiraitu Muriungi. “This is a project we are both relying on for the transportation of our crude oil through the Port of Lamu,”

said Dhiew. South Sudan, which separated from Sudan in July 2011, controls over 75% of the oil wealth of the formerly unified country, with a daily production capacity of 350 000 barrels

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Construction materials supplier WG Wearne reduced its comprehensive loss by 85.34% or R21.1-million, to R3.6-million during the six months ending August, driven by increased revenues and margins, as well as reduced operating expenses. The group’s revenue grew by 20.87% to R212.7-million, up from the R175.9-million in the previous corresponding period, boosted by the ready-mixed concrete division, which posted a R38.1-million, or 66.69% year-onyear increase in revenue. While WG Wearne’s aggregates division remained consistent, contributing R354.75million to its turnover, its precast division showed a 21.76% or R1.8-million decrease in revenue.

possible going-concern issue,” it stated. The group's earnings before interest, tax, depreciation and amortisation increased by 134.5% to R27.8-million and it continued to maintain a solvent position with a net asset value of R48.7-million, or 17.82 c a share. This was a 22.9% increase from the previous corresponding period’s 14.5c a share. As previously, no dividend was declared for the period. WG Wearne said its prospects continued to improve on a monthly basis, but that the general market conditions remained challenging for the construction industry.

The company said its increased revenues, along with its focus on efficiencies resulted in a 1.9% increase in its gross profit margin and consequently an increase in gross profit of 38.98%, or R8.8-million, to R31.56-million. Meanwhile, the company succeeded in lowering its operating costs by 34.96% from R34.2-million to R22.2-million by streamlining overhead structures and implementing cost-monitoring processes during the previous year. However, WG Wearne expressed concern over its persisting, although improved, lossmaking position. “This, coupled with the negative liquidity position highlights a

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Twelve South African companies had voluntarily committed to the United Nations Global Compact (UNGC), in the 2013 financial year to date, the National Business Initiative (NBI) said in a statement on Wednesday. The twelve signatories were Transnet, Allegiance Air, Oceana Group, Millennium Management, South African Express, South African Airways, Initio Earth Sciences, MTN Group, Investec Group, Netcare, the South African Post Office and Inala Technologies. The UNGC was a strategic policy initiative for businesses committed to aligning their strategies and operations with ten universally accepted principles in the areas of human rights, labour, environmental protection and anticorruption.

South Africa,” she said. UNGC Local Network chairperson and Public Investment Corporation CEO Elias Masilela added that the Local Network intended to establish a UNGC CEO Forum this year, bringing together business leaders for sustainability championing in South Africa and to position the UNGCs ten principles at the core of corporate strategies.

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Masilela replaced long-standing UNGC Local Network chairperson Futhi Mtoba, who served concurrently at the global board of the UNGC in New York until early last year.

This was against a backdrop of over 8 000 signatories globally.

The UNGC Local Network still has a seat at the global board through Masilela, who started his tenure by representing South Africa in New York in December 2012.

They joined parastatal Eskom, which was one of the first global signatories of the UNGC in 2000.

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JSE-listed Allied Technologies (Altech) on Tuesday said it had sold its loss-making East African operations to Mauritius-headquartered telecommunications group Liquid Telecommunications. As part of the transaction, Altech would acquire an initial 8.6% stake in Liquid for $16.5-million, exchanging, in effect, its losses for returns, Altech Group CEO Craig Venter said on Tuesday.

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NBI CEO Joanne Yawitch said several of the challenges currently facing the country were being dealt with through the ten UNGC principles.

More SA companies commit to UN Global Compact

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“I am not a believer in forcing behaviour through regulation. I am a believer in entities and individuals that take it upon themselves, in a voluntary fashion, to do the right things, to do things for the good of the economy,” he said.

The UNGC, with the NBI as its national partner, offered a platform for collaboration, with 72 South African entities having thus far signed their commitment to the UNGC principles.

Government had also indicated its support, with Public Enterprises Minister Malusi Gigaba committing six State-owned enterprises to signing the UNGC in July last year.

INTERSPRAY

The deal would boost the Altech group's performance, which had been weighed down during the past year by the underperforming Altech East Africa, as well as its West African unit, which Altech was also attempting to shed.

mobile operators, ISPs, homes, financial institutions and businesses of all sizes. “Altech's East African operation has built the largest fibre network in the region, which has huge potential. I strongly believe that its people, its network and its customers will all add value and opportunity to our current operations,” Liquid CEO Nic Rudnick said.

Altech disposes of East Africa operations

The transaction remained subject to conditions, including board and regulatory approvals.

In September, Altech initiated formal processes to find a partner for the challenged Altech East Africa, as Venter believed this would accelerate the turnaround for the once profitable division. The operation had brought in profits of R30-million in the first year of entry and another R100-million the year thereafter, but the “wheels came off” in the third year. Liquid Telecommunications would absorb ownership of Altech's 61% stake in Kenya Data Networks, Democratic Republic of Congo- (DRC-) based Africa Data Networks, voice, data and mobility solutions company Swift Global, Rwanda-based service provider Stream and Uganda-based Internet service provider (ISP) InfoCom. The deal expanded Liquid Telecommunications' single fibre network assets from Southern and Central Africa into East Africa, spanning Kenya, Uganda, Rwanda, Zambia, Zimbabwe, Botswana, the DRC, Lesotho and South Africa, enabling the company to provide reliable, high-speed, cost-effective connectivity to carriers, 35

countries]. Egypt and Nigeria are quite advanced in Africa.” (Egypt and Nigeria already have operational research reactors – as do Algeria, Ghana, Morocco and South Africa, while Libya has a research reactor in temporary shutdown; the Democratic Republic of the Congo's research reactors have been permanently shut down.) At a function of the Institute for Security Studies on Friday, Amano observed that “African countries are very eager to use nuclear technology for development. African ambassadors frequently see me and ask me how they could use nuclear technology for development. South Africa can play a key role and is already playing an important role. South Africa is a recipient of technology but is also a donor of technology.”

African countries are seriously considering adopting nuclear energy, International Atomic Energy Agency (IAEA) director-general Yukiya Amano has confirmed, in reply to a question from Engineering News Online. “We are working with Egypt, Kenya, Nigeria.” The IAEA is, of course, also working with South Africa, which already has nuclear power but is currently planning to considerably expand its nuclear generating capacity. “Other [African] countries are considering or preparing for nuclear,” he stated. “We have a milestone document. This provides guidance. We are recommending that they use it – it is also [a form of] assistance.” (The document is 'Milestones in the Development of a National Infrastructure for Nuclear Power'.)

Growing African interest in nuclear power – IAEA DG

“Nigeria is preparing [for nuclear power],” he reported. “The levels of progress are different [in different

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Speaking of developing countries more generally, he noted to Engineering News Online that the “countries that embark on nuclear power give us their reasons. One of the reasons is to enhance economic competitiveness, development and energy security. Many countries believe nuclear power is economically competitive.” He pointed out that the United Arab Emirates had started construction of a nuclear power plant while Belarus and Turkey had signed contracts. Jordan is one of the countries considering nuclear power – because the country has no indigenous sources of energy.

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“We respect the decisions about nuclear power,” he affirmed. “If they want to embark on nuclear power, we want them to do it safely; 67 nuclear power plants are under construction [around the world]. By our calculations the production of electricity by nuclear [worldwide] will increase by 23% by low projection and 100% by high projection by 2030.”

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They are not talking about phasing out nuclear power by [the] 2030s. This is not the policy being considered by the Abe government. But it will take them time to establish a new energy policy. I don't think that a new energy policy will be announced shortly.”

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In an address to the Institute for Security Studies, in Johannesburg, on Friday, Amano noted that Japan had 55 nuclear power reactors of which only two were currently in operation. “Because of this, Japan has to buy oil. For the first time in 30 years, the country recorded a deficit [because it had to import oil]. The deficit is increasing. Pollution is increasing [because of the great increase in the use of oil, to fuel reactivated old power plants]. Japan is seriously considering changing course.” International Atomic Energy Agency (IAEA) directorgeneral Yukiya Amano is of the opinion that the new Japanese government of Shinzo Abe (elected by a landslide vote in December) will not phase out the country's use of nuclear power. Following the accident at the Fukushima Daiichi nuclear power plant in March 2011, caused by a devastating earthquake and tsunami (which left more than 15 000 people dead and nearly 5 000 missing), the previous Japanese government decided to phase out all nuclear power by the 2030s. In his election campaign, Abe stated he would retain nuclear power.

Japan now unlikely to phase out nuclear power

“In January I went to Japan and had meetings with Prime Minister Abe and other Ministers,” Amano said in response to a question from Engineering News Online. “My impression is that the leaders of the new government are more supportive of nuclear power.

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He also reported that the IAEA will soon be sending a mission to Japan to help with the decontamination of the area affected by the Fukushima accident. He added that there were now more than 60 technologies available for decontamination.

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“The Fukushima accident was a very strong wake-up call on safety,” affirmed Amano. “The IAEA is implementing an action plan to increase safety. Nuclear power is safer now than before Fukushima. All countries with nuclear reactors have conducted stress tests.” The ability of existing nuclear power plants to survive extreme events has been reviewed worldwide and additional safety features have been introduced. “Fukushima Daiichi was crippled by a great earthquake and tsunami. But there were also human

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Nissan South Africa (SA) would not start production of a new one-ton pick-up range in 2014, as the local arm of the Japanese manufacturer had stated it would, in September last year. “Nissan can confirm that the development of the oneton pick-up truck allocated to Rosslyn plant, Pretoria has been postponed,” Nissan SA spokesperson Veralda Schmidt said.

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“The decision represents a normal part of our programme-management process and it is not uncommon for model schedules to change during the planning phase, for a variety of business reasons,” she noted. She said, however, that Nissan remained committed to producing the new pic-kup model at the Rosslyn plant.

Tel: 011 608 1312 Fax: 011 608 1287 Cell: 083 379 3065 Email: foddern@mweb.co.za next 12 months. We have no more detail to share at this time.” Nissan SA MD Mike Whitfield said in September last year that NIssan has officially signed off on the Rosslyn plant as a production hub for the new pick-up, in a project valued at more than R1-billion.

Nissan SA postpones new pickup production at Rosslyn plant

“We need to grow the plant to the 100 000-unit-a-year level now,” Whitfield said at the time. The Nissan SA plant in 2011 produced 54 000 vehicles – including the current NP200 half-ton bakkie, the Hardbody one-ton pick-up and the Renault Sandero models – up from 25 000 units in 2008. Whitfield said production volumes of the new one-ton pick-up would include exports, especially into Africa, but also other markets.

“The sourcing process is expected to restart within the 39

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AltX-listed steel retailer Alert Steel has agreed to undertake a clawback offer of 48-million shares at 200c a share to raise R96-million, as part of the beleaguered company's turnaround strategy to return to profitability. In terms of a heads of agreement, the offer would be underwritten by Southern Palace 265 on the basis that the recently acquired loan claim of Southern Palace and AKM Sons Property Trust against Alert would be converted into 37.5-million newly issued shares in Alert at an aggregate value of R75-million. The remaining R21-million would be paid in cash upon subscribing for the balance of 10.5-million shares. Alert also agreed to sell its shares in Aquarella Investments 454, which owned the office building the company operated out of, in East Lynne, Pretoria, to AKM for R1. Alert agreed to waive its loans against Aquarella and to rent the property from Aquarella, subject to the entering into of a formal lease agreement. Further, as per the agreement, Southern Palace undertook to lend on or before February 12, an amount of R10-million to Alert, free of interest. The loan would

have to be repaid within 30 calendar days of demand. Should the conditions precedent be fulfilled, and up to the fulfilment date, Alert agreed to not place itself or its subsidiaries in liquidation or business rescue, nor would it encourage other parties to take steps in pursuance of liquidation or business rescue against Alert or its subsidiaries.

Alert Steel to raise R96m through share clawback offer

Meanwhile, Alert's nonexecutive chairperson Malcolm McCulloch had resigned with effect from February 9 and would be replaced by Mitesh Patel from February 11. This followed the exit of the company's CEO Johan du Toit, announced last week, who would be replaced by current international wholesaler Metro Cash & Carry CEO Peter Dodson, also with effect on February 11. Other new additions to the board of directors was Alert founder and former CEO Wynand Schalekamp, who would take up the position as steel operations executive director, as well as chartered accountant Afzal Loonat, who had been appointed as a nonexecutive director.

MTN Uganda commissions fibre network at Katuna border

MTN Uganda has commissioned its fibre network at the Katuna border, in the Kabale district.

said Information Communication Technologies Minister Ruhakana Rugunda.

The fibre system would complement two existing cables between Kabala and Mombasa, which provide Uganda with unique redundancy and a backup structure for secure and reliable connectivity.

MTN CEO Mazen Mroué added that the commissioning of the new fibre system would substantially improve the connectivity between Uganda and its neighbouring countries by connecting the country to an additional submarine cable.

“The extension of the MTN Uganda fibre will act as a catalyst for economic development and will support the Ugandan government to further leverage on the existing

In 2012, MTN Uganda's capital expenditure in the country exceeded $80-million, mainly towards the expansion of network infrastructure, the establishment of modern switching and data centres, as well as the rol lout of fibre infrastructure to boost the quality of voice and data services. The company also rolled out 600 km of fibre backbone last year, closing the year with over 2 800 km of fibre, providing the capacity for high-speed data connectivity and a wider national coverage of third-generation mobile data services. In addition, MTN Uganda had completed the installation of an additional 81 network coverage sites and had also added another batch of capacity sites to enhance the quality of network services across Uganda. The company recently announced a plan to deploy a long-term evolution network in Uganda during the coming months, which would enable MTN customers to access the Internet with bandwidth speeds of up to 100 Mb/s.

regional partnerships in the areas of trade and industry,”

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expectations could lead to further unrest in key emerging markets.

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South Africa's increasing youth unemployment, a lack of opportunities, social tensions and unrest in the labour market could stifle the country's potential growth.

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“A fully expanding middle class is more demanding in terms of law, anticorruption measures, freedom and transparency. Political institutions in emerging countries are being challenged to adapt to this new situation,” Zlotowski stressed. While certain emerging markets, such as India, the Philippines, Indonesia, Thailand, Malaysia and Korea, besides others, were expected to deliver significant gross domestic product (GDP) growth, others, including Russia, Turkey, Romania, Ukraine, Croatia and Hungary would fail to produce GDP growth above 4%.

Despite significant growth being forecast for emerging markets this year, challenges remained, particularly around societal changes, credit insurance solutions firm Coface Group chief economist Yves Zlotowski said. “Society is changing and institutions need to adapt accordingly, but many governments are not addressing changing social needs,” he said, adding that the issues were amplified when citizens – particularly the middle class – actively voiced their opposition to challenges such as corruption and poor governance.

Growing middle classes demanding better governance - Coface

Coface estimated growth for sub-Saharan Africa to be between 4.4% and 5.2% in 2013. China was expected to boost its growth from 7.7% in 2012, to 8.5% in 2013, while India's expected growth was expected to increase from 5.5% last year, to 6% this year. Russia's GDP growth was expected to fall from 3.5% in 2012 to 3% in 2013

While governance remained a challenge for emerging markets, South Africa was said to have one of the highest ratings in government effectiveness in combating corruption – leading China, India, Mexico and Russia.

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Nigeria's Flour Mills to borrow to double cement capacity – CFO

Flour Mills of Nigeria plans to borrow between $400million to $500-million to construct a new cement plant which will double its existing 2.5-million metric tons capacity, its chief finance officer said on Friday.

Flour Mill's rival recently re-opened its Gboko cement plant after it was shut two month ago due to over-supply in the market, bringing back a fifth of its 20-million tones capacity.

Jacques Vauthier told Reuters the conglomerate had appointed financial advisers and banks to raise a term loan from the local market for the construction of the plant. He said the details of the loan were still being finalised.

Vauthier acknowledged last year's glut caused by cheap imports from Asia but said sales were picking up again and he expected its cement subsidiary Unicem to end the year with growth in double-digits over the previous year.

The new cement plant will be completed by the first quarter of 2016, Vauthier said.

Nigeria has a huge infrastructure need, which will fuel a construction boom and cement companies are gearing up by scaling up capacity.

Nigeria's biggest cement firm Dangote Cement and 44

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Zim needs billions to bring infrastructure to acceptable levels It would take several years and at least $15-billion to bring Zimbabwe's basic infrastructure back to an acceptable level, said Frost & Sullivan environmental and building technologies research analyst Derrick Chikanga. He said the infrastructure in the country had endured a decade of neglect and was in urgent need of refurbishment, but funding for infrastructure development projects remained elusive as the country attempted to revive its economy. The economic difficulties between 1999 and 2009 had a severe impact on the overall quality of the country's infrastructure, with the transport and energy sectors worst hit. A recent report by the African Development Bank (AfDB) noted that coverage and quality of infrastructure had fallen from being the best in the Southern African region in the early 1990s, to in line with that of its peer countries by 2009.

That development banks, such as the DBSA or AfDB, were increasingly looking to Zimbabwe for infrastructure development projects, was a positive sign, Chikanga commented.

Further, by 2020, Zimbabwe could ensure that over 80% of the roads were in a good condition, 100% urban and 80% rural areas had sufficient water supply and sanitation coverage and about 15-million tons of road freight shifted onto rail.

Last week, the Department of Roads in Zimbabwe commissioned Royal HaskoningDHV to undertake a feasibility study determining the viability of construction and tolling to improve the road between Harare and the Beitbridge border post.

The 391 000 km2 country, with a population of 13-million, had seen signs of improvement in recent years as the government attempted to set aside 13% of its total yearly budget for infrastructure development projects.

The cost of rehabilitating and improving the 580-km-long single carriageway was estimated to be in excess of $600-million.

The formation of public–private partnerships would be critical in ensuring reasonable infrastructure development in the country, he commented. Zimbabwe established the Zim-Fund in 2010 to lobby for development finance from major European and Asian countries and secured commitments of about $100million from seven countries. Further, several development banks, including the AfDB and the Development Bank of Southern Africa (DBSA), had directed funds to Zimbabwe. ROAD AND RAIL Meanwhile, Zimbabwe's 88 133 km road network was in a dire state as over ten-million tons of rail freight had shifted to roads over the past decade. In the mid-1990s, the AfDB said, rail carried about 14million tons of freight, but this fell to 2.7-million tons – 15% of the design capacity – in 2009, owing to limited available locomotive and rolling stock capacity, as well as deterioration in the quality of the rail network. Chikanga commented that, currently, only about 50% to

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Earlier reports indicated that $200-million was required for road maintenance in 2012, but only $35-million was allocated, while only $209-million was set aside for a $2billion road rehabilitation programme.

The AfDB estimated that focusing on infrastructure development could see the country gain 7% growth, with a jump in gross domestic product from $4.7-billion to $9.5-billion in the next eight years.

The government needed to partner with external funders to obtain strong financial assistance for projects, after which the country should be able to position itself to maintain and further improve on the assets once in place.

The 3 109 km rail network, which was supposed to be the backbone of the country's economy, was expected to take about $4.5-billion to revamp over the next ten years – excluding locomotives and wagons.

Last year, the DBSA had granted a R1.4-billion loan to Infralink, a 70:30 joint venture between the Zimbabwe National Road Administration and South Africa-based construction firm Group Five, for the rehabilitation and implementation of tolling on a 801 km national road network linking Harare and Bulawayo, as well as Mutare, near the Mozambique border, and Plumtree, on the Botswana border.

However, the country faced a shortfall in its attempt to inject $430-million into infrastructure projects last year, further emphasising the fact that the country would not be able to develop sufficient infrastructure without external support, said Chikanga.

The past few months have seen TSX- and Aim-listed Caledonia Mining's Zimbabwe-based Blanket gold mine, as well as Anglo American Platinum's Unki mine and Impala Platinum's Zimbabwe subsidiary Zimplats, concluding indigenisation deals with the Zimbabwe Ministry of Youth

60% of the rail network was currently functional and only 40% to 50% of the locomotives were operational.

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ENERGY Meanwhile, the development of Zimbabwe's energy sector had been hampered as uncertainty surrounding the country's 51% in-local-hands indigenisation legislation restricted investment.

Laos-based Sunlabob Renewable Energy on Friday announced it has been awarded two contracts for the design, supply, installation and training of locals for 13 turnkey solar photovoltaic (PV) power plants in off-grid areas of Sierra Leone.

Chikanga said there was no clear indication of how the legislation would be enforced and how it would apply to energy producers.

The installations – funded by the United Nations Industrial Development Organisation (Unido) – would provide reliable electricity supply to universities, training facilities and community centres to facilitate local enterprise development and improve Internet access.

Many of the current licensed independent power producers, which were expected to play a key role in increasing the country's energy generation capacity, had halted many projects until this became clear. The indigenisation law, while finding its feet – with difficulty – in the mining sector, created uncertainty in the energy sector, he said. Earlier it was reported that the Zimbabwe Investment Authority recorded a fall in approved new investments in all industries, falling to $930-million in 2012, from $6.6billion in 2011, on the back of uncertainty arising from the indigenisation programme. Zimbabwe had approved 172 projects in 2012, a decrease from the 227 projects approved in 2011.

“Providing off-grid areas with renewable energy not only enables dependable and affordable electricity, but also opens the door to positive, long-term social and economic development,” said Sunlabob founder and CEO Andy Schroeter.

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its engineering team alongside local partners to undertake the design, installation, testing and commissioning of the systems.

Sierra Leone awards off-grid solar PV project contracts

The company would also provide hands-on operation and maintenance training with community members to build awareness and understanding to enable longevity of the solar systems. “Without local capacity building, development of offgrid energy cannot be sustainable,” said Schroeter. Sunlabob had previously designed, installed and provided community training for three solar PV plants totalling 53 kWp in three industrial growth centers in the villages of Bo, Kpandebu and Pujehun, in Sierra Leone.

“The efforts from Unido to electrify, through decentralised solar PV, are a prime example of how public–private partnerships can squarely address objectives such as improved education, increased job opportunities and greater communications access.” The company asserted that fewer than 10% of Sierra Leone's population had access to electricity and, for the portion of the population that did, prices were significantly high, owing to inefficient and costly generators. To complete the 13 solar-powered local enterprise development projects – twelve 5 kWp plants and one 16 kWp plant – Sunlabob would embed members of 47

Telecoms boom leaves rural Africa behind Poor or no reception outside the towns helps explain why the continent's mobile penetration, in terms of the percentage of the population using the service, is far lower than previously thought, and the cost of providing that service to impoverished, sparsely populated areas remains prohibitive. In rural Sierra Leone, a country where GDP per capita is less than $400 a year, money doesn't grow on trees, but mobile reception can, says street trader Abass Bangura in Freetown, the West African country's capital. In parts of Tonkolili, a district in the centre of the country, or Kailahun to the east, it's the only way you can get reception, he said. "You climb stick, like mango tree, before you have network," he said. In South Sudan, the world's newest state, it's a similar story. Less than a year old, the country already has five mobile operators, and its capital, Juba, is teeming with giant billboards advertising mobile phones, but go just a few kilometres beyond a handful of fastgrowing towns, and cell phones become useless. Multiple SIM cards help users navigate patchy network coverage and take advantage of price promotions from rival operators. That is typical of much of the continent. With a population of just over a billion people, Africa has over 700 million SIM cards, but with most users owning at least two cards, penetration is only about 33 percent, according to a study released in November by industry research firm Wireless Intelligence. "If we look at the fact that the rural population of Africa is about 60-70 percent of the population, and if we look at the degree of penetration into the rural market, it's very, very low," said Spiwe Chireka of advisory firm IDC. In Nigeria, Africa's most populous country, there are more than enough SIM cards for everyone, but penetration is only 61 percent, according to a 2012 study by research firm Informa. The average mobile phone user in Nigeria owns an average of 2.39 SIM cards. Globally, only Indonesia is higher, with an average of 2.62 SIM cards per user. Even in Africa's biggest economy, South Africa, SIM numbers comfortably exceed the population, but given the number of people using multiple devices, actual population penetration is closer to 80 percent, says market leader Vodacom.

While mobile phone usage has exploded across Africa over the last decade, transforming daily life and commerce for millions, it's a revolution that has left behind perhaps two thirds of its people. 48

"You've got a lot of people buying SIMs, but maybe not enough phones to put it in," said Olayemi Jinadu, an executive with the Sierra Leone arm of Indian telco Bharti Airtel. COST VERSUS BENEFIT The unserved rural millions could represent another growth opportunity for Africa-focused telcos like South Africa's MTN Group, Bharti Airtel and Kuwait's Zain, but first they have to figure out a cost-effective way to push into sub-Saharan Africa's remote corners. "There's great potential, but the big concern for us is operational costs," said Andre Claasson, chief

operating officer at Zain South Sudan. In rural Africa, the cost of running a network tower often exceeds the revenue it reaps. Fuel is typically about 40 percent of a tower's operating cost, and in remote areas companies burn more diesel by bringing fuel to towers than is used powering them. Although roughly 73 percent of Africa's land has cell phone coverage, according to market research firm IDC, that still leaves vast tracts of rural Africa without network access.

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Average revenue per user is also low. It can vary between $1 and $10 per month, much lower than in developed markets such as the United States, which delivered ARPU of $51 in 2012 or Britain, $27. Bharti, sub-Saharan Africa's third-largest telecom group, says it makes $6.40 per user in Africa, which is higher than its home Indian market, where it makes only $3.30 a month, but the cost of operating in Africa is much higher and there isn't a comparable middle class ready and able to spend more. "You either have a handful of people in the affluent part of the society or you have lots of people who can't afford the services," its Chairman Sunil Mittal said last year. Operators can save money by sharing towers, but even then, some sites will never make sense without government subsidies, analysts say. African expansion has not been cheap for telcos. Over the past five years, mobile operators have spent a combined $16.5 billion on capital expenditure in the key markets of South Africa, Nigeria, Kenya, Senegal and Ghana, according to Wireless Intelligence.

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Spare cash is increasingly rare for debt-strapped European telecoms operators, which are cutting their dividends to cope with falling revenues and network upgrade costs in their home markets.

In Sierra Leone, the Universal Access Development Fund (UADF) is yet to subsidise the cost of putting up a single mast, though it has been active for several years. The regulator complains networks do not contribute the fees they should. "If we can't subsidise, they'll never erect towers there," said Bashir Kamara, Project Manager at UADF.

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Bharti has earmarked $1.5 billion for capex this year, while fourth-placed France Telecom is spending $9.3 billion between 2010 and 2015.

Some African regulators have set up funds to promote coverage, to which operators are expected to contribute.

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SA needs policy discussion on stagnant unemployment rate – Stats SA

South Africa needed to get into a policy dialogue regarding its high unemployment rate, which has remained stagnant for more than a decade, Statistics South Africa (Stats SA) statistician-general Pali Lehohla said on Tuesday. He was commenting at the release of Stats SA's latest Quarterly Labour Force Survey (QLFS), which revealed that the country's unemployment rate improved marginally to 24.9% in the fourth quarter of 2012, compared with the unemployment rate of 25.5% in the third quarter. Lehohla stated that the numbers prompted the question of how effectively South Africa's policies were addressing unemployment. Stats SA population and statistics deputy director-general Kefiloe Masiteng told media at the launch of the latest QLFS that a decline in employment was mainly driven by the 48 000 decrease in the number of employed persons in private households, the 41 000 loss in the trade sector and the 18 000 fall in the number of persons employed in the transport sector. Meanwhile, of the sectors in which employment was created, the agricultural sector led at 24 000 jobs, with the construction sector creating 15 000 jobs and the mining sector adding 8 000 jobs during the fourth quarter of the year. The decrease in employment was the first to be recorded in the fourth quarter of any year since the inception of the QLFS and was attributable to 52 000 job losses experienced in the formal sector and 8 000 job losses in the private households sector. Reflecting on the figures, banking group Nedbank's economic unit said in a note to clients that, although the reduction in the country's unemployment rate was good news, it mainly reflected the large number of discouraged work seekers, which increased by 87 000 between the third and fourth quarters of 2012, while other 'not economically active' persons increased by 259 000. “Overall, economic activity remains generally sluggish, while upside risks to inflation have increased due to a weaker rand,” Nedbank stated. Compared with the fourth quarter of 2011, employment increased by 0.6%, while unemployment grew by 6.1%. Masiteng said, despite the strikes observed in the local mining industry in recent months, no job losses were observed in this industry in the fourth quarter of 2012. However, there was a sharp increase in temporary absence from work from 5 358 to 23 787 people between the third and fourth quarters. Asked if she anticipated job losses in the mining sector during the first quarter of 2013, Masiteng stated that this

would be subject to retrenchments and a decline in the number of people working in the sector in the near future.

of turbines, and will also maintain the turbines for a 10-year period.

Anglo American Platinum announced last month that it would restructure its operations, resulting in 14 000 job losses; however, the mining company had since agreed to a 60-day delay in implementing the Section 189 process.

Work has officially started on the 138 MW Jeffreys Bay wind farm, in the Eastern Cape, which is the second-largest wind project to have advanced through the first bidding round under South Africa's competitive Renewable Energy Independent Power Producer Programme (REIPPP).

She added that job losses in the agricultural sector would also depend on the industry's response to Labour Minister Mildred Oliphant's announcement on Monday that the minimum wage for farmworkers would go up to R105 a day from the current R69 a day.

The 20-year power purchase and implementation agreements for these first projects were signed on November 5, and State-owned power utility Eskom will buy the power arising from the initial eight wind farms for R1.14/kWh.

Globeleq senior business development director Jonathan Hoffman says the project adds to the group's already extensive African power generation portfolio.

Meanwhile, the unemployment rate remained highest among youth aged 15 to 24, at 50.9%.

In total, 1 415 MW of capacity was allocated to 28 wind and solar projects after the first bid window, with 633.99 MW allocated to wind developments.

The company, which was launched in 2002 from within the UK's CDC Group, has developed a 4 000 MW power portfolio in more than 20 emerging markets.

The Jeffreys Bay project, which spans 3 700 ha and eight farms between the towns of Jeffreys Bay and Humansdorp, in the Kouga local municipality district, will involve the deployment of 60 Siemens SWT 2.3 MW wind turbines, which each have a rotor diameter of 101 m.

Mainstream Renewable Power's CEO Eddie O'Connor says South Africa's has “extraordinary” wind and solar resources and that the company is in the process of developing over 4 000 MW of renewable-energy projects in a bid to harness those resources.

Crucially, the wind farm is also within close proximity to a 132 kV Eskom transmission line and is, therefore, expected to begin supplying energy to the national grid by mid-2014

The Jeffreys Bay development is expected to generate 200 jobs during construction and 11 permanent operation and maintenance jobs over the 20-year life of the facility.

Masiteng warned that this group was likely to place more pressure on the labour market, as about 3.3-million or 31.6% of the 10.4-million people in this age group, were not employed, studying or receiving training of any kind. Nedbank's economic unit further stated that local and international economic conditions were not expected to improve significantly during 2013 and that weak confidence and high wage settlement would make firms more cautious to expand capacity and employ more people during the year. It noted that, although government was likely to be the main driver of employment, as it rolled out its infrastructure and job creation plans, South Africa's unemployment rate was expected to remain high in the short term. "We believe this will compel the Monetary Policy Committee to keep monetary policy neutral over an extended period, with interest rates remaining unchanged for most of 2013. A reversal in policy easing is likely only late in the year or even in 2014. However, deterioration in both the global and domestic economies would increase the chance of another cut,” the firm warned.

The civil and electrical works, including construction of a new substation, will be completed by a joint venture between Murray & Roberts Construction and Consolidated Power Projects.

Work gets under way at 138 MW Jeffreys Bay wind farm

A consortium comprising Globeleq, Mainstream Renewable Power, Old Mutual, Thebe Investment Corporation, Enzani Technologies and Usizo Engineering, as well as a local community trust is developing the project. The development reached financial close with the support of a syndicate of lenders led by banking group Absa. Siemens Wind Power will provide expertise and technology for the supply, installation, and erection

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