THE COEGA industrial development zone and deep-water project outside Port Elizabeth is boosting confidence in the Eastern Cape and the Nelson Mandela Metro. Confidence in the future of the metro has grown as work started on Coega development, which will create thousands of job opportunities in the Nelson Mandela Metro. It will also create new opportunities for small and medium businesses in the metro and the rest of the Eastern Cape. Companies can register their interest in becoming a supplier to Coega by filling in a form which is available on the Coega web site at www.coega.co.za Existing manufacturers in the Nelson Mandela Metro are also feeling the benefits of the Coega project in the form of improved services. Eskom has announced that it will be investing some R1,8-billion rand in upgrading the power supply to the Nelson Mandela Metro. Telkom has already upgraded the telephone network in the metro. Port Elizabeth was the first city in South Africa to convert fully to digital exchanges. While Coega provided the spark for the investment, the increase in power supply to the metro will benefit industries outside the zone, as well as those which build new factories inside the Coega IDZ, according to Trade and Industry minister Alec Erwin. "The upgrade creates exciting opportunities. At present, there is insufficient electricity supply for major expansion of the industrial base of the metro," minister Erwin told journalists at a news conference to announce the Coega Development Corporation (CDC) as the provisional operator of the Coega IDZ. The CDC is responsible for the development of a high-tech, environmentally friendly and duty-free manufacturing zone covering some 12 000 hectares. Work has already started on the project which is South Africa's first Industrial Development Zone. Motorists driving on the national road to East London can see the haul road, which will be used by the trucks carrying rocks from the Coega Kop quarry to build the breakwater for the port. Drinking water supplies to the area have also been upgraded by the Nelson Mandela Metro and the CDC, while tenders for the provision of bulk electricity to the zone are currently being evaluated. The establishment of IDZs is part of government's plans to promote and stimulate export-oriented manufacturing. The Eastern Cape provides an ideal base for the implementation of this strategy as it is already a major exporter of vehicles and vehicle components. These include high-tech vehicles such as the Golf 4 and Mercedes Benz C-Class, modern Ford RoCam engines and catalytic converters. It is estimated that factories in the Nelson Mandela Metro supply up to 11 per cent of the world's motor car catalytic converters. The opening up of the Coega IDZ creates opportunities for further investment in the automotive and related sectors, as well as the establishment of new industries in the Eastern Cape. The Coega IDZ will be served by the deep-water port of Ngqurha at the mouth of the Coega river. Ngqurha is the world's newest deep-water port, and the only one in Africa to be surrounded by an Industrial park. Tenders have been called by the National Ports Authority for the first phases of the development of the R2,65-billion port. Both national and international companies have attended site briefings. Construction is scheduled to start later this year. Exciting opportunities are being created for the existing Port Elizabeth harbour by the Coega development. According to public enterprises minister Jeff Radebe, the decision to have a deep-water port at the mouth of the Coega river would open up the existing port to tourism development. A wide range of investments are already being considered. These will include the creation of new facilities for the fishing fleet and for tourists. Portnet has already been busy upgrading facilities for the Eastern Cape's fishing fleet. There are also plans to build a washing and de-waxing facility at the port's motor vehicle terminal. Tourism projects will enhance Port Elizabeth's beach-front, which is already rated as one of the finest in the world. One of the practical indicators of this confidence is house prices. According to the annual ABSA survey, house prices in certain categories rose by more than 20 per cent in 2001. This increase in prices for large homes was the second-highest in South Africa. Metro estate agents report that demand is growing, and that there is a shortage of good quality houses on the market. Much of this demand is driven by Coega, as well as by the successes of existing exporters in the metro.