T Mhlahlo: Opening of road between Adelaide and Fort Beaufort

11 October 2007

Today we are making a visible advancement towards the realisation of our
objective of linking small towns of our province with bigger towns in an effort
to boost local economic activity through road infrastructure investment. As we
are currently busy with the planning process for the resuscitation of the
Dimbaza Industries, we have identified the need to link the rural towns such as
Bedford, Adelaide, Fort Beaufort and Alice with such economic activity and many
other opportunities within Buffalo City.

The R63 route has been identified as one of the economically strategic
provincial routes that facilitate mobility and access to markets.
The Nxuba area is well known about its agricultural potential, especially goat
farming and cotton production; while Nkonkobe has been doing well in Orange
Fruit Production and tourism. The road that we are opening today will enhance
this economic potential and improve connection with international markets
through the East London Harbour.

Over the past five years the Department of Roads and Transport has pumped
more than R640 million in the Nxuba and Nkonkobe Municipalities in capital
investment. We started with the section between Bedford and Adelaide at a cost
of R100 million, which was then followed by the section between Dimbaza and
Middledrift at a cost of R165 million. Today, we are opening the third phase of
this project, which involved the reconstruction of the road between Adelaide
and Fort Beaufort at a cost of R176 million.

As we speak, the department is reconstructing the section of road between
Middledrift and Alice at a cost of R202 million, which has already employed 470
people and is scheduled for completion in December 2008, but there are
indications that it may be finished by September 2008. We will then direct our
attention to the section between Alice and Fort Beaufort.

Ladies and gentlemen, the department is fully committed to provide the
people of this region and the province as a whole, with the necessary
infrastructure to facilitate growth and development, while simultaneously
eradicating poverty through massive employment of our people using
labour-intensive methods. It is gratifying to note that the people of both
Nxuba and Nkonkobe Municipalities have benefited handsomely as either Local
Enterprises or as Local Labour employees in this project that we are officially
opening today.

During the construction process, we deployed a limited number of our
internal construction unit staff members from Graaf-Reinet, who worked with the
contractor, in order to create jobs for local communities. As a result, the
local community provided 166 labourers of which 54 were women. An amount of R51
million was directly spent on the communities of the two municipalities. The
locals received training in slurry work, construction of brick headwalls and
erection of gabion baskets. A total of seven sub-contractors were used to carry
out work on this contract. Now that the road is complete and in magnificent
condition, the department will make sure that it is maintained by locals when
the need arises.

Road Maintenance in Nkonkobe Municipality

Maintenance of gravel and tarred roads will also receive priority in the
coming years. We have already invited tenders for an Area Wide Maintenance
Contract for Nkonkobe Municipality. It is anticipated that the successful
contractor will commence work on site in February 2008. The Area-Wide Roads
Maintenance contract is for routine maintenance on all proclaimed Provincial
roads within the Nkonkobe Local Municipal Area from February 2008 to February
2010.
There are approximately 200 kilometres (km) of tarred roads and 1 150 km of
gravel roads in Nkonkobe to be maintained under this contract and between R12
million and R18 million will be spent per annum. In terms of the Area-Wide
Roads Maintenance model, the contractor must utilise the departmental employees
who are based in Nkonkobe and the departmental plant is also made available for
use by the contractor.

However, the contractor needs to bring in a considerable amount of his own
plant as the department does not have sufficient plant to cope with all the
required maintenance work. The contractor also provides contract management
skills and key supervisory personnel. Where there is insufficient departmental
labour to carry out the required activities, the contractor must employ Local
Labour and Local small, medium and micro enterprises (SMMEs) as
sub-contractors. It is estimated that approximately R3,6 million will be spent
on local resources within Nkonkobe during the period of this contract. Local
resources include payment to local labour and purchasing of fuels and road
works materials. The prioritisation of roads for maintenance will be done by
the Nkonkobe Municipality, the Department of Roads and Transport and the local
Transport Forum.

Sakha Isizwe

Since 2006, the Department of Roads and Transport has introduced a new
Programme called Community Based Transportation. The main aim of Sakha Isizwe
Community Based Transportation Programme is to institutionalise and guarantee a
more balanced transportation system throughout the Eastern Cape province and at
the same time, to create new work and business opportunities for the
disadvantaged communities.

Through the Sakha Isizwe Household Contractors Programme, more than 2 500
households have been appointed, of which 655 are based in the Amathole
District. Of this number, fulltime 65 households are from the Nkonkobe
Municipality.
Their work entails road maintenance, upgrading, construction, focus on roadside
animal management, fencing, pedestrian safety, footpaths, non-motorised
transport, gabion basket manufacturing, rangers etc. The targeted roads will
assist in improving accessibility to economic activities, tourism
opportunities, schools, clinics and other government services.

Last year, there were temporary employment opportunities for 180 households,
who worked on the stretch of road between Fort Beaufort and Seymour. They were
paid R60 a day for three months and were tasked to do grass cutting and tree
felling.
This financial year, we shall double this figure to 360 household contractors
and add fencing as part of the project. We hope that by next month, this
project will take off.

When the project is finished after the three months period, we intend to
leave about 40 of those household contractors to continue maintaining that
stretch and increase our number of local fulltime households to 105. Through
this programme, we remain committed to upgrade the 63 kilometres road from Debe
Nek to Glenmore Road Project (1st Phase) at a cost of R16,3 million. This
programme is a prompt response to our declaration that "2007 is the year to
intensify the struggle against poverty."

Back to rail

Last year, I made a commitment to the people of Nkonkobe Municipality that
the Department of Roads and Transport will revive the railway operations
between East London, King Williams Town, Middledrift and Alice. Refurbishment
programme is underway and designs are being completed for the Alice Station
reconstruction to support the service. The train service will commence before
the end of March 2008 and will be run by South Africa Rail Commuter Corporation
(SARCC)-Metrorail.

Maths and Science

Technical skills shortage continues to haunt our young democracy and
government has embarked vigorously on programmes that seek to attain such
skills. The situation is worse in the fields of engineering, rail, aviation,
maritime and transport economics. The Department of Roads and Transport has
established partnerships with various stakeholders, particularly institutions
of higher learning and business, for building and growing transportation
skills.

Since 2003, we have been running a Maths and Science Project with
institutions of higher learning, including the Nelson Mandela Metropolitan
University in Nelson Mandela Bay Metro and Walter Sisulu University in King
Sabata Dalindyebo.
The project has enabled us to award more than 400 bursaries towards transport
related studies with more emphasis on civil and mechanical engineering. This
week, the Department of Roads and Transport has published 64 bursaries for
Grade 12 learners, who would like to study Civil Engineering (15), Mechanical
Engineering (five), Mechatronics (three), Aeronautical Engineering (three),
Aviation Technician (two), Transport Economics (three), Surveying (two),
Traffic Air Controller (one) Time and Shipment (four), Rail Engineering
(three), Port Engineering (one), Pilot studies (two), traffic law enforcement
diploma (20).

This year, the Maths and Science project has expanded to the Nkonkobe area
in partnership with the University of Fort Hare and Engen, and 100 learners are
benefiting. I would like to appeal to local schools to use this opportunity in
order to improve the performance of learners in Mathematics and Science, so
that they can be able to access our bursaries.

In conclusion, it is through working together between government and our
communities that we can be able to develop and implement inclusive
interventions that will ensure that our people are actively participating in
the reconstruction and development of this country.

I thank you.

Issued by: Department of Safety, Liaison, Roads and Transport, Eastern Cape
Provincial Government
11 October 2007