By Roux Van Zyl
Financial Reporter

A FLOOD of funds for capital infrastructure development will flow into the Eastern Cape in the next financial year.
Coega’s deep water harbour project is leading the pack as billions of rands were yesterday allocated to the province by Finance Minister Trevor Manuel in his 11th Budget speech.
The harbour and industrial development project will this year get R510 million, an increase of R295m from last year’s budget of R215m.
Within the next three yeas Coega’s total budget will increase to R866m – a rise of 59’1 percent from last year – to get the Port of Ngqura running.
An earmarked R300m has also been made available in the coming year to build the Alcan aluminum smelter.
Already, more than R800m had been spent on establishing road, water and electrical infrastructure at the Coega Industrial Development Zone (IDZ).
Another big winner is East London’s IDZ, which will receive R251,1m by 2009, an increase of R60m on last year’s budget.
This year the ELIDZ will receive R88,8m.
Critical Infrastructure Programme (CIP) claims for the Eastern Cape’s two IDZs will marginally increase from last year’s R79,9m to R80,8m in 2009.
There has also been a large focus on local government infrastructure development in Manuel’s budget.
Local governments alone will receive an additional R15,4bn to boost basic service and gear up their infrastructure for the World Cup. Most of the money will be channeled through the Municipal Infrastructure Grant which augments municipalities’ own resources.
The R7,5bn grant is also expected to boost local economic development and job creation through labour-intensive construction methods.
Municipalities also have access to a newly formed Neighborhood Development Partnership Grant that gives technical assistance and project funding transfers to a range of projects.
The grant has received R500m and will help municipalities to identify new projects in target areas where improvements in municipal infrastructure have the potential to attract private capital into historically disadvantaged areas.
The aim is to release the economic potential of townships, while improving access to government services – similar to the Njoli Square and Ngangelizwe upgrades in Kwa-Zakhele and Mthatha respectively.
A new water services bulk infrastructure grant has been introduced to scale-up municipal bulk water supplies. Only R300m had been made available this year, but the figure is expected to rise to R650m by 2009.
The biggest single allocation to a project is R8,8bn for the Gautrain rapid rail link over the next three years, while about R1,2bn will be distributed to other host cities for upgrades to public bus and rail transport.
Significant further spending is earmarked for scaling up the expanded public works programme, focusing mainly on rural access roads.
Meanwhile, provinces plan to spend R64,8bn on capital assets in roads, health, education and agriculture over the next three years, with an increased focus on job creation.
The total grant for housing over the next three years will be R29,6bn.
Touching on the Fifa 2010 world Cup, Manuel said the Prince Alfred Park in the Nelson Mandela Metropole would receive the highest World Cup stadium grant allocation in the country at R435m.
Overall World Cup stadium development grants have quadrupled to R2,7bn this year, peaking in next year’s budget as 2010 looms.
Last year R600m was spent across the country on stadium construction and upgrades, o which R110m flowed into Prince Alfred Park.
This year, R485m will be spent on the stadium which will host the Eastern Cape’s only World Cup match – ahead of Cape Town’s R434m grant for Green Point Stadium.
“I am happy to announce that the Local Organizing Committee for the Fifa World Cup has reached agreement with municipalities on the budgets for the construction and upgrading of stadiums and that these agreements are within the R8,4bn set aside for stadiums (up to 2010),” he said.
Port Elizabeth’s Mandela Bay Municipality will receive an additional R132m to develop transport infrastructure ahead of the World Cup, after R69m was budgeted for the previous year.
This compares favorably with the other host cities which Johannesburg will receive the most (R329m), followed by Cape Town (R230m). The City of Tshwane will receive R105m and eThekwini R125m.
Johannesburg’ Ellis Park, Royal Bafokeng in Rusternburg, Prince Alfred Park, and Tshwane’s Loftus Versfeld stadiums are expected to be completed by September 2009 in time for the Confederations Cup.
The SA National roads Agency and Rail Commuter Corporation receive a further R1,7bn to upgrade roads and stations for the World Cup.