: CONTEXTUALISING THE PROPOSED PROJECT WITHIN THE NATIONAL AND LOCAL ENVIRONMENT
CONTENTS 4. CONTEXTUALISING THE PROPOSED PROJECT WITHIN THE NATIONAL AND LOCAL ENVIRONMENT 4-1 4.1 Introduction to the Coega IDZ and Port of Ngqura 4-1 4.2 The biophysical and socio-economic context 4-3 FIGURES Figure 4.1: Location map showing the proposed Coega Integrated Power Project in relation to the Port of Ngura, Coega IDZ and Greater Addo Elephant National Park 4-5 page i
4. CONTEXTUALISING THE PROPOSED PROJECT WITHIN THE NATIONAL AND LOCAL ENVIRONMENT This section contextualises the proposed Coega Integrated Power Project (CIPP) by highlighting the key environmental aspects relevant to its location at the Port of Ngqura, in the Eastern Cape province. Implications for the project proponents in further developing the CIPP in alignment with the objectives of sustainable development are identified. More detailed descriptions of the specific aspects of the environment (e.g. socio-economic, biophysical, ecological and economic), that are of relevance to the CIPP are provided in the chapters assessing the environmental impacts of the project. 4.1 Introduction to the Coega IDZ and Port of Ngqura The CIPP is proposed within the Port of Ngqura which is currently being constructed as an integral component of the Coega IDZ. This IDZ is the first to be established in South Africa, and forms part of the South African government s vision for the country to become one of the world s key manufacturing centers, thereby stimulating national economic growth and increasing foreign exchange earnings. Through the provision of serviced land and worldclass infrastructure, the Coega Development Corporation (the operators of the Coega IDZ) aims to attract international investors to the IDZ. The Port of Ngqura is being constructed as an industrial deepwater port, which is capable of accommodating Panamax size ships for importing and exporting materials to and from the IDZ. The development of the Coega IDZ and the Port of Ngqura follows extensive economic feasibility and environmental assessment studies. The most significant environmental studies for the IDZ and relevant outcomes are mentioned below: A Strategic Environmental Assessment (SEA) was completed in 1997 to assess the opportunities for, and constraints to, developing the IDZ and deepwater port at Coega (CSIR, 1997a). The objective was to ensure that environmental issues were focussed on early in the planning and decision-making process, in order to avoid the shortcomings of project-specific EIAs. This provided an early identification of sensitive vegetation and habitats which has informed subsequent EIAs and informed the development of the CDC s Open Space System which has been established for the Coega IDZ and Port of Ngqura. An Environmental Impact Assessment (EIA) for the rezoning of the core development area from agricultural to an industrial development zone was conducted in 1999. The finding of this EIA was that, subject to the implementation of an Environmental Management System for the IDZ and the implementation of the page 4-1
recommendations suggested in the EIA, the positive impacts of the proposed IDZ outweigh the negative impacts (CES, 2000). Authorisation for the rezoning of the land to allow the creation of the Coega IDZ was granted in May 2002 in a revised Record of Decision issued by the national Department of Environmental Affairs and Tourism (DEAT). The authorization stipulates a number of conditions that must be met, some of which also apply to tenants in the IDZ, including those located within the Port of Ngqura (refer to Chapter 10). Infrastructure for the IDZ is currently being constructed. Of relevance is the fact that this rezoning EIA did not include the coastal property bordering the National Port Authority property to the east of the eastern breakwater. The CDC is currently in the process of acquiring this property from the 8CR Trust which will subsequently need to be rezoned as industrial. As required by the Record of Decision for rezoning, the CDC have recently finalized their Open Space System which aims to create an effective system for managing the open spaces within the IDZ and the Port of Ngqura to protect cultural and ecologically sensitive areas and the associated fauna and flora, as well as provide opportunities for passive (low intensity) and active recreation (Metroplan & CES, 2003). This OSS and the associated Coega Open Space Management Plan has been submitted to the national Department of Environmental Affairs and Tourism (DEAT) for approval. Tenants of both the port and IDZ will therefore need to take into account these guidelines and the OSS when planning their developments as activities which impact on the primary network of the OSS may, in some circumstances, be subject to approval by Department of Economic Affairs Environment and Tourism (DEAE&T). The OSS is described in more detail in Chapter 10. An Environmental Impact Assessment for the Port of Ngqura was undertaken by Coastal & Environmental Services during 2001 (CES, 2001a). This project was authorised in May 2002 by the national DEAT, subject to the adherence to the conditions in the revised Record of Decision and the recommendations in the EIA. In order for the National Port Authority to remain in compliance with the Record of Decision, a number of these conditions automatically apply to potential tenants wishing to develop within the Port of Ngqura (refer to Chapter 10). In August 2002, a R2.2 billion tender was awarded for the construction of the port and excavation works are currently underway. An Environmental Impact Assessment for the Aluminium Pechiney smelter was conducted during 2002 (CSIR, 2002). This was the first EIA undertaken for a prospective tenant within the Coega IDZ subsequent to the authorization of the rezoning of the core development area from agriculture to special purposes. A key feature of this EIA process was the establishment of an Environmental Liaison Committee for developments associated with the Coega IDZ and the Port of Ngqura. This committee includes key authorities involved in the environmental authorization process or in page 4-2
subsequent permitting and monitoring of the conditions attached to the Record of Decision, as well as the National Ports Authority and CDC as landlords of the Coega IDZ and Port of Ngqura. The Record of Decision from the provincial DEAE&T was issued on 20 December 2002, providing environmental authorization for the aluminium smelter. Various Environmental Impact Assessments for constructing additional transmission lines to the IDZ have been undertaken by Eskom over the past 2-3 years. These include transmission lines from the interior (Poseidon at Cookhouse) to the IDZ, as well as a current assessment of a transmission line from KwaZulu-Natal to the IDZ. The need for the KwaZulu-Natal line in the short-term may fall away if the CIPP proceeds. An Environmental Impact Assessment for a new regional general and hazardous waste processing facility is currently being undertaken for the NMMM area by Bohlweki Environmental. The development of this facility is critical to the IDZ given the imminent closure of the Aloes High Hazardous landfill site. As operators of the IDZ the CDC have established an Environmental Management System for the IDZ and, apart from the OSMP, have developed noise, visual and architectural guidelines for prospective tenants. In addition they have established a comprehensive Labour and Business Management System (LBMS) to assist tenants with recruitment, skills development, procurement and to establish an industrial relations policy and labour agreements for the IDZ. The NPA have chosen to adopt many of these guidelines and policies for application within the Port of Ngqura and to utilize the CDC s LBMS. The CDC has also started baseline environmental monitoring of surface and groundwater and ambient air quality. 4.2 The biophysical and socio-economic context The Coega IDZ is located within the Nelson Mandela Metropolitan Municipality (NMMM) in the Eastern Cape Province, approximately 20 km north-east of Port Elizabeth (Figure 4.1). It is located within the Subtropical Thicket Biome which serves as an important buffer between the northern and southern rainfall flora and has thereby contributed to the evolution of the biodiversity rich Cape Floristic Kingdom in the western and southern Cape. Subtropical Thicket has, however, come under pressure through anthropogenic influences such as agricultural, industrial and infrastructural development and the rapid expansion of urban areas. Its conservation is being promoted through bioregional conservation initiatives such as the Subtropical Thicket Ecosystem Planning (STEP) project, the establishment of the NMMM Municipal Open Space System (MOSS) and the Coega IDZ s Open Space System (OSS), as well as through the expansion of the Addo Elephant National Park which will conserve a page 4-3
wider diversity of habitats (refer to Figure 4.1 for a map of the Greater Addo Elephant National Park including the proposed Marine Protected Area, and Chapter 10 for a map of the Coega OSS). Any developments within this region therefore need to take cognisance of the importance of this habitat and ensure that their projects minimize the extent and severity of their impacts. The Eastern Cape province is characterized by high levels of poverty, illiteracy and unemployment. While the IDZ is being promoted by government as a vehicle to increase economic growth and employment, the development of an IDZ is not without its own socioeconomic problems. Although many urban areas in South Africa are experiencing inmigration of job seekers from surrounding rural areas, the expectations for employment creation associated with the development of the IDZ is contributing to a steady influx of jobseekers from the rest of the province. This is increasing pressure on social services and infrastructure. Individual projects located within this context should be sensitive to these socio-economic needs and pressures and establish systems and programmes which enhances the socio-economic benefit associated with their proposed development and minimizes the negative socio-economic impacts. The development and expansion of conservation and ecotourism initiatives to the north-east of the Coega IDZ between Colchester and Grahamstown serves the dual purpose of conserving natural vegetation, habitats, animal species and ecological processes, as well as contributing significantly to employment creation and revenue generation for the province. In order for industrial development not to stifle the development of this key economic sector, projects should be developed with due consideration to their potential impacts on the continued marketability of the surrounding region as a prime tourist destination. page 4-4
Figure 4.1: Location map showing the proposed Coega Integrated Power Project in relation to the Port of Ngura, Coega IDZ and Greater Addo Elephant National Park CONTEXTUALISING THE PROPOSED PROJECT WITHIN Coega Integrated Power Project LNG terminal and CCGT power plant page 4-5