The Department of Trade and Industry (the dti) through its Critical Infrastructure Programme (CIP) has committed R18.4 million towards the new Steytlerville water treatment works in the Eastern Cape. The water treatment plant will be launched tomorrow, 31 May 2016 at Steytlerville outside Port Elizabeth starting at 11:00. Members of the media are invited to attend.
According to the Minister of Trade and Industry, Dr Rob Davies, the Steytlerville water treatment works project is in line with the CIP’s key objectives to enhance and develop the country’s infrastructure for investment purposes, and the establishment of strategic investments in the country.
“CIP supports the construction of infrastructure that enables the establishment or continuing operation of industrial projects. Its key objectives are to improve competitiveness by lowering costs and risks, leverage strategic investments and stimulate linkages,” added Davies.
He said the expectation is that government expenditure through CIP will eventually translate into job creation and meaningful contribution to economic growth. Davies also said job creation was at the core of government objectives in all spheres of government with the aim of improving the standard of living of the people in the country.
He highlighted that the total grant amount approved for CIP in 2014/15 amounted to R85.9 million of which R18.4 million went to the Eastern Cape for one project.
“The low uptake in other provinces including the Eastern Cape was due to many of the proposed projects not meeting the CIP criteria,” said Davies.
He said corrective action for this low intake would be to broaden the CIP application horizon to include state-owned industrial parks, as well as to apply targeted marketing of the projects with funding institutions.
CIP is a cost sharing grant for projects designed to improve critical infrastructure in South Africa. The grant covers qualifying development costs from a minimum of 10% to a maximum of 30% towards the total development costs of qualifying infrastructure up to a maximum of R50 million, based on the achieved score in the Economic Benefit Criteria. Registered private entities and Municipalities also qualify for the grant.
CIP was approved by Cabinet in 2000 as one of a suite of incentive programmes designed to leverage high level investments in employment and wealth creating industries.
Source: Department of Trade and Industry Republic of South Africa