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News Article - Economics
East Cape project to create a million jobs
Posted on: Monday, 05 March 2007. Article source: The Herald
By Patrick Cull Political Editor
AN ambitious project to develop the Umzimvubu catchment area will create 10 000 jobs in the rehabilitation of the catchment area and 897 000 in forestry and agriculture, with a potential income of at least R3,8-billion.
The Eastern Cape government believes the development will “create thousands of sustainable jobs, changing this impoverished rural area into a thriving, modern economic zone”.
The Umzimvubu Basin Development Project will cost R28,2-billion over 10 years, with the Eastern Cape government wanting to spent R245-million in the first year, R520-million in year two and more than R1-billion the following year.
A document presented to Bhisho‘s finance committee by the provincial director-general, Sibongile Muthwa, states that the Umzimvubu River is able to deliver 600-million cubic metres to the Orange, Fish and Sundays Rivers, as well as Nelson Mandela Bay, and “at least” 2 000MW of hydroelectric power to the national grid.
The document stresses that while previous studies have been geared towards power generation, “this proposal brings a special focus for economic and social productivity and the development of a modern economy in an impoverished rural area”.
It states that agriculture in the catchment area has the potential to generate annual income of R3,4-billion and create close to 300 000 jobs within five years and forestry the potential to create 600 000 jobs within 12 years.
The document says it envisages that 244 000ha will be earmarked for forestry, 346 000ha for arable agriculture, 102 000ha for irrigable agriculture and that the area can support 978 000 mature livestock.
There will also be opportunities for the tourism industry around the dams and the Port St John‘s estuary development.
The document recommends an immediate expanded public works programme investment to stabilise the catchment environment.
This will cost R3,8-billion over 10 years and create 10 000 jobs.
Noting that it is “not feasible” for any sphere of government to develop and manage a project of such magnitude, the document proposes that an Umzimvubu development corporation be created to manage the development.
AN ambitious project to develop the Umzimvubu catchment area will create 10 000 jobs in the rehabilitation of the catchment area and 897 000 in forestry and agriculture, with a potential income of at least R3,8-billion.
The Eastern Cape government believes the development will “create thousands of sustainable jobs, changing this impoverished rural area into a thriving, modern economic zone”.
The Umzimvubu Basin Development Project will cost R28,2-billion over 10 years, with the Eastern Cape government wanting to spent R245-million in the first year, R520-million in year two and more than R1-billion the following year.
A document presented to Bhisho‘s finance committee by the provincial director-general, Sibongile Muthwa, states that the Umzimvubu River is able to deliver 600-million cubic metres to the Orange, Fish and Sundays Rivers, as well as Nelson Mandela Bay, and “at least” 2 000MW of hydroelectric power to the national grid.
The document stresses that while previous studies have been geared towards power generation, “this proposal brings a special focus for economic and social productivity and the development of a modern economy in an impoverished rural area”.
It states that agriculture in the catchment area has the potential to generate annual income of R3,4-billion and create close to 300 000 jobs within five years and forestry the potential to create 600 000 jobs within 12 years.
The document says it envisages that 244 000ha will be earmarked for forestry, 346 000ha for arable agriculture, 102 000ha for irrigable agriculture and that the area can support 978 000 mature livestock.
There will also be opportunities for the tourism industry around the dams and the Port St John‘s estuary development.
The document recommends an immediate expanded public works programme investment to stabilise the catchment environment.
This will cost R3,8-billion over 10 years and create 10 000 jobs.
Noting that it is “not feasible” for any sphere of government to develop and manage a project of such magnitude, the document proposes that an Umzimvubu development corporation be created to manage the development.
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