S Ndebele on La Mercy Airport

Premier of KwaZulu Natal: Tighten your seat belts

13 September 2006

We have just returned from an aerial visit of the La Mercy site. The site is
ideally suited for the establishment of the new international airport and the
Dube TradePort (DTP). All the bulk earthworks have been already undertaken some
several decades ago which provides a consolidated platform for the construction
of the 3.7 kilometre (km) runway, passenger terminal and its associated support
buildings; as well as the first phase of the Dube TradePort, which includes the
Cargo terminal, TradeZone and two airport linked property support zones to
include hotels and office developments.

I am also happy to announce that after more than 40 years the project is now
entering the implementation phase, after certainty was secured from the
Airports Company of South Africa (ACSA) on the timeframes for the relocation
and its role in the project. We have now secured a clear Co-operation Agreement
between ACSA and the DTP based on the principles that:

* ACSA would own, pay for and operate the new airport
* DTP would own, pay for and operate the cargo terminal, trade zone and
AgriZone activities
* the development of the remaining property would be the joint responsibility
of both ACSA and the DTP through the establishment of a joint venture
company.

Negotiations on the details of the agreement regarding the land,
procurement, commercial, technical and legal issues are at an advanced stage of
being concluded between the parties who have committed themselves to start
construction by March 2007. Construction will be completed by October 2009
after which cold and hot commissioning will be undertaken. We expect to have
the Airport and TradePort ready for operations by the first quarter of 2010,
well in time for the Soccer World Cup.

The Co-operation Agreement means that the province will benefit from a
direct infrastructure investment of R2,5 billion funded by ACSA. This has
significantly reduced the expenditure that was budgeted for by province in its
medium term expenditure framework. Provincial government, however, will still
fund the Dube
TradePort estimated at R700 million over the construction period.

ACSA has now joined the procurement process for the project. Two consortia
Indiza (led by Grinaker-LTA) and Illembe (led by Group Five and Wilson Bailey
Holmes) are expected to submit their final bids by the end of October 2006.
During the month of November these bids will be technically evaluated and
adjudicated. Recommendations for a preferred bidder will then be made to the
respective Boards of ACSA and the DTP. After which a winning bidder will be
announced. This should happen by the end of the year. Contractual negotiations
would then commence for the final design, construct, fixed price, turnkey
contract.

All regulatory approvals required are also underway simultaneously including
the Environmental Impact Assessment (EIA), planning approvals, aerodrome
planning, customs and border controls. The second round of public consultations
on the EIA started yesterday. In this stage the public may comment on all the
issues identified thus far in the process. We are confident that there are no
issues at this stage of the process that have been raised that threaten to stop
the project from going ahead. All issues identified by the EIA process can be
managed and mitigation measures will be put into place to address them. As
premier of the province, I want to urge the public to actively participate in
the remaining EIA process and raise valid concerns. It is the first time in
over 50 years that a new greenfield international airport is being built and it
is an opportunity to plan it carefully, and proactively avoid making the
mistakes of the past, in particular conflicting land uses.

We expect more than 50 000 international soccer supporters to arrive
directly at the new airport international airport for the event in 2010. This
would not be possible without the new airport. Together with the new soccer
stadium, the province and city will be well placed to host a successful event
and provide the platform to market our provincial tourism and business assets
on the international stage.

The provincial government is also going to support the name of the airport
as King Shaka International Airport. All political parties in KwaZulu-Natal
have long agreed on this. I will therefore take the necessary steps to apply to
the National Minister of Arts and Culture and the Minister of Transport to have
the new airport named the King Shaka International Airport.

The Province of KwaZulu-Natal is experiencing one of its most exciting
infrastructure investment periods in its history which will lay a growth and
development platform for decades to come. This is the result of the hard work
our government has been undertaking tirelessly and with a commitment to achieve
tangible results. Together, with our social partners we need to continue
putting our shoulders to the wheels of the implementation of such critical
infrastructure projects in order to achieve the 6% growth target and
beyond.

KwaZulu-Natal is a province of untapped opportunity, where imminent growth
initiatives are destined to irrevocably alter the economic landscape. Our own
renaissance is upon us, and hence onwards it will be displayed the world over �
from our football fields, our new airport, our harbours, our vibrant townships
and our pristine beaches to the activities of our diverse communities on an
international stage.

For further enquiries, please contact:
Selby Khumalo
Chief Director, Office of the Premier
KwaZulu-Natal Provincial Government
Cell: 083 633 9404
Email: khumaloms@premier.kzntl.gov.za

Issued by: Office of the Premier, KwaZulu-Natal Provincial Government
13 September 2006
Source: KwaZulu-Natal Provincial Government (http://www.kwazulunatal.gov.za/)

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