Remarks by Honourable TSP Makwetla, The  Premier of the Mpumalanga Province
Project Bravo Sod Turning Ceremony

5 August 2008

 Programme Director, Mr Fani Zulu,

The Honourable Minister of Public Enterprises, Minister Alec Erwin,

The Executive Mayor of the Nkangala District Municipality and the Honourable Mayor of Delmas Municipality, Clrs SK Mashilo and Jack Rapatsa respectively,

Members of the Executive Council present and the Mayor of Emalahleni Municipality,

Mr Bobby Godsell, Chairman of Eskom Holdings and Members of the Board of Directors,

Mr Jacob Maroga, Chief Executive, Eskom Holdings and Executives,

Executives of the different divisions of Eskom,

The management of Kendall Power Station,

Team members of Project Bravo,

Senior Government officials from the Departments of Public Enterprises and the Minerals and Energy; DWAF, DFI, National Treasury and GCIS,

Provincial Departments officials and the municipal manager of Delmas municipality,

Business and Labour leaders

Investors (Project Partners),

Traditional Leaders present,

The Community of Delmas, Community in the Province,

Colleagues, ladies and gentlemen.

 

It is an honour and a privilege to address you on behalf of the Mpumalanga province at this inspirational ceremony, the sod turning for Project Bravo. This sod turning is an important marker of the progress we are making in enhancing South Africa’s electricity generation capacity. It also signals government’s commitment to development through public investment in infrastructure.

 

From the perspective of the Mpumalanga province, the energy sector plays a dominant role in the provincial economy. This province is home to 11 of Eskom’s 13 coal fired power stations. Mpumalanga, which accounts for a mere 6.8% of South Africa’s gross-generates a staggering 66% of Eskom’s electricity. It would not be inappropriate to call the Mpumalanga province South Africa’s powerhouse.

 

Project Bravo, which will add a substantial 4,800 megawatts of installed capacity to the existing 38,000 megawatts, is not the only initiative by Eskom in the Mpumalanga province to increase the supply of electricity for the country as we all know. Eskom has also recommissioned three mothballed power stations in the province: the Komati Power Station between Middelburg and Witbank, the Grootvlei Power Station near Balfour, and the Camden Power Station near Ermelo. Collectively, these power stations will add 3,600 megawatts to existing electricity generating capacity.

 

Ladies and gentlemen, it is of historical interest that Mpumalanga is home to the first ever power station designed by Eskom engineers, clear evidence of the ‘pioneering spirit’ of the province. The erection of Malieveldspruit hydro station was a temporary measure undertaken by Eskom to ease the electrical power demands of the gold mines in Mpumalanga in the 1920s. This station was replaced by a hydro station in the Sabie River which came into commercial operation in mid-1927. It was the first station ever to be designed by Eskom engineers in South Africa.  

 

For the Mpumalanga provincial government, which has an obligation to drive the socio-economic development of the province, the critical question is: how does the construction and operation of Project Bravo contribute to an inclusive growth trajectory for the province? How does it address the 2014 targets of halving poverty and unemployment and poverty and achieving an annual growth rate of 6%? What is the environmental impact of this power station? Perhaps, most importantly, what can the provincial administration do to maximise the developmental impact of the project?

 

Ladies and gentlemen, these questions are asked within the context of a province where the apartheid legacy weighs heavily on the poor. A recent study on poverty and inequality in Mpumalanga, commissioned by the provincial government, found that 61.6% of households in the Mpumalanga province fall below the poverty line, compared to 53.7% for South Africa. In addition, the study illustrated that inequality has been growing in the province, both within race groups and between race groups. This is a formidable challenge, which the provincial administration is addressing through a process to refine our provincial growth and development strategy in a way that creates a framework for an inclusive provincial growth trajectory.

 

Against this background, with respect to Project bravo, the imperative for the provincial government is to engage with Eskom to ensure that we maximise the development impact of the project and that the communities in this area benefit from this important development. Given the capital intensive nature of the Bravo plant, we need to think creatively about how we can enhance its developmental impact.

 

According to Eskom, approximately 5,000 people will be employed during the construction of the Bravo plant, and 600 people will be permanently employed when it is fully operational. To achieve the desired developmental impact for the provincial economy during the construction phase, it is important that local communities are involved in the construction of the plant and provided with training that will enhance their prospects for finding employment once the project is completed, a challenge I know the leaders of this project, being developmental economists themselves, are grappling with and have already factored into their plans.

 

Furthermore, I believe capacity will be developed both within local communities and the broader province to provide the goods and services that will be required by this power plant, both during the construction phase and once it is fully operational. The provincial government welcomes the intention to establish a dedicated task team with Eskom to better understand the nature of the goods and services this power plant will require and to develop an action plan to create the capacity within the province to supply them. This will not only create employment, but will expand the SMME sector and promote economic transformation through BBBEE.

 

Ladies and gentlemen, another important avenue which we should explore together is whether Mpumalanga can participate in the Competitive Supplier Development Programme, which aims to maximise the local content of Eskom’s capital programme. This is a logical development trajectory for Mpumalanga, because a very large proportion of the electricity supply chain is located here, including stainless and carbon steel, human capital and the power plants themselves.  

 

The provincial administration is committed to exploring these opportunities together with Eskom and the Departments of Public Enterprises and Trade and Industry. We want to support Eskom in its stated ambition of maximising the local content of its capital programme, by providing support to develop this capacity within the Mpumalanga province.

 

Ladies and Gentlemen, my remarks would be incomplete without reference to the extra-ordinary geology and topography of this part of South Africa, Mpumalanga, and the environmental impact of Project Bravo on the province and its developmental objectives. The provincial administration is currently grappling with the fact that many of the key economic sectors in the province are both capital intensive and generate pollution. Both coal fired power plants and mining - including the mining of coal which is essential for electricity generation by the 11 power stations in the province – generate substantial pollution. This pollution compromises the environmental sustainability challenge of Mpumalanga’s unique and delicate ecosystems and biodiversity, which are the foundation of our tourism industry.  We are encouraged by the fact that national DEAT has isolated this region of the country as priority number 1 in addressing the challenge of air pollution.

 

For this reason, I wish to commend Eskom for making the Bravo plant the first power station in South Africa to have flue gas desulphurization technology installed.  I am told that this is the state-of-the art technology to remove oxides of sulphur from the exhaust flue gases in power plants that burn coal or oil. The implementation of this technology at the Bravo plant will ensure compliance with air quality standards, particularly as the power station is located in a priority air-shed. In the light of the formidable environmental challenges we are grappling with, it is a great comfort to the provincial government that we will not have to add this power plant to these challenges.

 

Ladies and Gentlemen, in closing, the sod turning for Project Bravo is a cause for celebration, because it advances South Africa’s developmental objectives. The provincial administration is committed to maximising its impact on Mpumalanga’s developmental goals and will leave no stone unturned to achieve this outcome.  To the Minister we wish to take this opportunity to say congratulations and to also wish the Project Bravo Team all the success on their journey to the final conclusion of this assignment.

 

I thank you.

 

Issued by: Office of the Premier, Mpumalanga Provincial Government