D Peters: Opening of Mamatwane-Kathu Road Project

1 February 2007

Programme Director,
Honourable mayors and councillors,
Members of the Executive Council (ExCo),
Vice President of SAMANCOR Manganese, Mr Bernard Katompa
Members of the provincial legislature,
General-Manager of Hotazel Manganese Mines, Mr Jeff Leader,
Traditional leaders of our people,
Officials from provincial and local government,
Ladies and gentlemen,
The community at large,

During October 2006, we celebrated October Transport Month as part of our
efforts to assess and highlight challenges that our people throughout the
province are faced with in terms of the efficiency of our road network
system.

The activities during the month were meant to highlight some of the
achievements of this government in its efforts to improve the road network and
transport system but also to afford us an opportunity to identify areas where
access to government services and economic opportunities still remain a
challenge to our people, especially rural communities as a result of lack of
public transport services and facilities and road infrastructure.

The Northern Cape road network provides the dominant mode of freight and
passenger transport and plays an absolutely vital role in the economy of the
province which has a significant impact on the country's wealth. The provincial
Department of Transport, Roads and Public Works has an obligation to preserve,
upgrade and if necessary to expand the existing network.

It must also ensure the safety of traffic on the roads and to provide a
reliable, effective, efficient and integrated transport system that will
support the sustainable economic and social development of the province.

Thus during August 2005 the Department held the Infrastructure Summit, which
attracted participants from national, provincial and local spheres of
government, the private sector, development funding institutions and other
relevant stakeholders.

The aim of the indaba was to consult with stakeholders from across the
transport sector.

Delegates to the indaba had an opportunity to give inputs to the proposed
strategies.

Emanating from our summit is a draft action plan that identifies a number of
action areas for our government to focus on these issues includes some of the
following resolutions:

* The province needs to define strategic secondary road network and to
ensure the promotion of comprehensive road network systems that are aligned
with the government's socio-economic objectives and priorities. Ladies and
gentlemen, this process is 35% complete. The Department has appointed five
consultants, one for each district municipality to carry out a thorough road
network analysis so as to identify the gaps within our road network. The
process will be completed in 2008.
* The development of a clear access roads plan that will ensure that
communities have access to main roads linking them with economic centres.
* The development of an alternative funding strategy for maintenance and
construction of new roads in conjunction with private sector partnership.
* Access for persons with disabilities in terms of public transport services,
facilities and economic opportunities.

Programme Director, we believe that this draft action plan is crucial in
ensuring that municipalities begin to play a more active role in infrastructure
development initiatives and public transport promotion in their areas of
jurisdiction.

As we gather here today, we are reminded of the very transport challenges
that face communities throughout this region. Of these challenges the issue of
access stands out as a real obstacle to the economic growth and development of
this region.

In this region, Programme Director, we have a road network that is unable to
link the many villages and communities that need access to government services,
economic activities and recreational facilities and activities. We have a
public transport system that is struggling to keep up with the needs of its
users due to the lack of road infrastructure.

In 2002 the management of Samancor at Hotazel approached the Department with
a proposal to surface 20 kilometres of road (MR 938) between Hotazel and their
other mine at Mamatwane.

Ladies and gentlemen, this proposal was motivated by safety considerations
as their personnel is transported over this road and its condition was
considered to be unsafe as it was very slippery during the wet seasons.
Samancor was willing to help with the funding.

After discussions it was agreed that the Department would contribute an
amount of R3 000 000 towards the project and Samancor the rest. (The amount of
R3 000 000 was later adjusted to R3,6 million after the tenders received were
higher than the estimate).

This project was completed in January 2004 at a total amount of R9,4 million
with 36 jobs created for the local communities.

It has thus become important that the remaining 22 kilometres of the road
between Mamatwane and Dibeng should now also be surfaced, quite apart from any
safety considerations.

After further negotiations aimed at acquiring other funding partners, which
unfortunately were not successful, it has been agreed in principle that the
remaining 22 kilometres will be funded equally by Samancor and the Department
with Samancor again acting as client.

The agreement was concluded in March 2005 and the construction commenced in
November 2005. The road was completed in August 2006 at the total cost of R14
300 000 and 37 jobs created.

It should also be noted that except the financial contribution, the Samancor
mines supplied material (stones) for the construction of phase one and phase
two.

The BHP Billiton has shown what we may call the true public-private
partnerships (PPPs) which begin by identifying the central problem, then asking
who should help solve it.

This may be initiated from the private, government or civil society sector
but they are not about the narrow plan of any one partner. PPPs are about
shared agendas and combined resources, risks, rewards and linkages that can
magnify scale.

True PPPs:

* are voluntary and build on the respective strengths of each partner
* optimise the allocation of resources
* achieve mutually beneficial results over a sustained period
* involve written agreements that specify the purpose and duration of the
partnership, governance as well as exit arrangements.

True partnerships exist on a spectrum from "regulated privatisation", where
governments turn certain activities largely over to private sector or community
partners, all the way to altruistic arrangements in which there is no direct
profit motive.

The construction of this surfaced road has the benefit to the public and the
mine workers that will travel on a safe, dust free, all weathered road and the
chance of accident occurring will be reduced drastically.

Today, Programme Director, we launch an initiative that we believe will open
more opportunities for the development of this region.

We say this, ladies and gentlemen, because this project is one of very few
infrastructure development projects where government and the private sector
have combined resources to benefit both business and the community at
large.

This project serves as an important link between Kathu, Mamatwane mine and
Hotazel for people living in Kathu and Hotazel and working at the Mamatwane
mine.

The social and economic importance of the road cannot be overemphasised as
we know that the benefits in terms of road safety, reduction in pollution and
quicker access for both business and social reasons, will be realised for many
more years to come.

The enthusiasm showed by BHP Billiton Trust and the Samancor Manganese
Foundation in ensuring the success of this project, since its first phase, is
proof that indeed these partnerships are possible and do yield positive
results.

We take this opportunity to thank BHP Billiton Trust and Samancor Manganese
Foundation for this bold initiative. Motswana o rile, "le kamoso!"

Allow me to also to invite other private sector companies to work with
government as we jointly take on the challenges of poverty, joblessness, lack
of basic services and low levels of mobility among our people.

It is through such partnerships that we will be able to achieve the
objectives of the Provincial Growth and Development Strategy (PGDS), which is
also a strategy developed in conjunction with the private sector and other
stakeholders.

During the month of March 2007, the Kgalagadi District Municipality will
play host to the region's first ever growth and development summit.

We wish to urge all stakeholders to take part in the summit so as to ensure
that the strategy that will be developed by the region will reflect the inputs
of all stakeholders.

We also wish to take this opportunity to encourage the summit to engage on
the challenges faced in terms of:

* access
* public transport
* freight logistics
* road infrastructure development.

We believe that resolving the above challenges will form the basis of
dealing with joblessness and poverty in this region.

Allow me, Programme Director, to conclude by expressing our gratitude to BHP
Billiton Trust and Samancor Manganese Foundation for the role they played in
this particular project as well as the Kgalagadi District Municipality for
their continued participation in the project.

We further wish to encourage the said parties to engage further and identify
other projects that will ensure the growth and development of this region.

Infrastructure development is essential to development in any particular
area. Road infrastructure development in particular is even more important as
it ensures that economic activity both in terms of passenger and freight
movements is sustained.

I thank you, baie dankie, ke a leboga.

Issued by: Office of the Premier, Northern Cape Provincial Government
1 February 2007