Produced by SANRAL N2 WILD COAST ISSUE 1 JUNE Province of the EASTERN CAPE REPUBLIC OF SOUTH AFRICA. Vul indlela

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N2 WILD COAST ISSUE 1 JUNE 2017 Produced by SANRAL U P DA T E Vul indlela Province of the EASTERN CAPE REPUBLIC OF SOUTH AFRICA

PROJECT NAME The N2 Wild Coast Toll Road Project PROJECT MANAGERS Craig McLachlan Fezekile Duze Rob Damhuis Edward Kruger Gcobani Socenywa Marlize Nel-Verwey Dr Mongezi Noah *Dr Noah is not a project manager but works on the project REGION Southern Region (Eastern Cape) COMPLETED N2 ROAD UPGRADE PROJECT; EASTERN CAPE, NEAR KOKSTAD. PICTURE: BRETT ELOFF PAGE 2

When will the construction start? What is the progress? While we won t always agree, willingness to compromise will ensure that the interest of the people of the Eastern Cape and Mpondoland in particular, are prioritised ahead of any specific group interests. MSIKABA BRIDGE SITE MTENTU BRIDGE SITE NTAFUFU TO LUSIKISIKI: THE BLUE LINE REPRESENTS THE BROWNFIELDS SECTION, WHILE THE RED SHOWS THE GREENFIELDS. Yes, work has started. Since 2011, SANRAL has been upgrading existing sections between Mthatha and Port St Johns, and between East London and Mthatha. This is because the required Environmental Impact Assessment (EIA) Record of Decision was upheld in that year. On the greenfields section this means areas where there has been no development - between Ndwalane outside Port St Johns and the Mthamvuna River near Port Edward, some preliminary work for the two mega-bridges have begun. So far, haul roads to the sites, as well as, the relocating of affected households adjacent to the two bridges, have been started. Construction of the Msikaba and Mtentu bridges is expected to start in earnest during the second half of 2017. Final designs for the greenfield road section will be done during 2017 with construction projected to begin in 2018. SANRAL will have a project office in Flagstaff to maintain continuous presence in the Wild Coast area to ensure that those affected or who are interested are able to get information and interact without having to go to SANRAL s Port Elizabeth regional office. SANRAL is commited to work with all people, communities and businesses in the Wild Coast area. PAGE 3

What does this mean? Job opportunities New jobs, growth of small businesses, a huge cash injection. All of this will come the way of the communities living near the N2 Wild Coast Toll Road. The annual increase in income in the service area of the road during and after construction will be: Wages, salaries to locals: R481 million Income increase to industry: R360 million Retailers: R240 million Service providers: R120 million We are committed to boosting local small businesses. In 2016 SANRAL hosted an SMME workshop where we engaged 250 SMMEs, the private sector and government support agencies about job opportunities for the N2WC project. SANRAL also hosts training programmes for local SMMEs. Sipelele Msindwana (37), a small business owner of a construction company in Lusikisiki, is a co-founder and co-partner of Nkungu Investments CC. He and business partner Khayakazi Nkungu started the company in 2004. They are one of 30 business owners who have received a full scholarship from SANRAL. This forms part of an integrated community development programme valued at R120 million. Upon completion of theoretical training in 2017, each SMME will have an opportunity to tender for work packages on the community access roads and learn how to apply their theoretical training into practical application. DID YOU KNOW? During the entire upgrade of the N2 between East London and Durban it is estimated that 6 800 direct and close to 28 000 indirect jobs will be created during the construction period and 900 direct and some 18 500 indirect jobs during the operational period. PAGE 4

As SANRAL, we value dialogue with the people affected good or bad - by our projects and to us the meeting was productive as it helped clarify the areas of concern for the community both within and outside of SANRAL s mandate. Traditional leaders kept informed SANRAL CEO Skhumbuzo Macozoma met with the Mgungundlovu traditional leaders, business and community members in April (2017) to discuss the road. The meeting helped to address their concerns about the project. It was a necessary step to help with a better understanding of the importance of the road to the region. There is general support from the majority of stakeholders who SANRAL met, but the Mgungundlovu community was very clear in their rejection of the project. In the engagements held, several concerns were raised that SANRAL will address in the interest of both the people of Mpondoland and the aspirations of Government. SANRAL will continue to speak with and listen to everyone who believes that the road will impact them. The development of the N2 Wild Coast road is an important project endorsed by the Presidential Infrastructure Coordinating Committee. Eastern Cape Premier Phumulo Masualle says: As we implement the Presidential Strategic Integrated Projects in the Province, we are moving ahead with plans for the development of the N2 Wild Coast route from East London to the Mthamvuna River. This project includes the construction of two mega-bridge structures on the Msikaba and Mthentu Rivers, as well as seven additional major river bridges and three interchanges. The project will be a force for good and bring about positive change. PAGE 5

How will the road benefit the community? The benefits of this project will amount to reduced travel times, improved access as well as increased tourism for the community. The new route will be shorter and flatter. It will reduce travel time and cost, thereby reducing carbon emissions, and lessen road fatalities and crashes. 250m Short Route Full Route 90km 165m 56km 85m ACCESS GRANTED The new route will give access to schools, clinics, churches, sports facilities and municipal offices. It will make economic opportunities possible for the residents of the municipalities of Port St Johns, Ingquza Hill and Mbizana, currently three of the poorest municipalities in the country. Through its community development programme, SANRAL will identify and implement various community projects as part of the delivery of the N2 Wild Coast. This will be done in consultation with provincial and local government, traditional leadership and community structures. It will boost conventional tourism, eco-tourism, agriculture and other business opportunities both locally and regionally. PAGE 6

Who is paying for this road? The National Treasury (in essence, government s wallet) recently announced that funding for the road including the nine bridges will be from taxes and the road upgrades will be tolled. This is because the road will reduce travel time between East London and Durban by up to three hours. To make sure that there are jobs, that the economy grows, government must invest in projects that will promote local and national economic growth in the medium and long term. This road has been identified as such, a key economic driver in the National Development Plan and forms part of one of the identified national Strategic Infrastructure Plan (SIP) projects. Investment in the local road network as an alternative to the Wild Coast road would have a very low economic rate of return due to: the very low traffic volumes on these roads, the high cost of construction of these local roads, and the only limited and purely local growth such an investment would bring. DID YOU KNOW? In 2015, a survey by the Human Sciences Research Council found 98.8% support from over 3 000 respondents in or from the Pondoland region. When speaking with all kinds of different groups and communities, SANRAL has found that this is true. Even amongst persons initially opposed to the project, when the facts were shared, there is now support or at least acceptance. PAGE 7

Big, bigger, 2 MEGA-BRIDGES Architectural representations of the Mtentu River Bridge just outside Xolobeni. The concrete structure some 1 130m long, with a 260m main span constructed as a balanced cantilever with main piers approximately 160m high, plus approach viaducts constructed using incremental launching methods. The Msikaba River Bridge will be a 580m single span cable-stayed bridge. It is a unique, spectacular structure that crosses a deep, forested gorge with high sandstone cliffs flanking its sides. No work will be done in the gorge and construction will start from each bank to eventually be joined in the centre. The bridge is 192m above the river and constructing at these heights requires specialised techniques. WHAT ABOUT THE MINING? The N2WC Road has been identified as a national Strategic Infrastructure Project and forms part of the National Development Plan. The economic and social development of South Africa for all its citizens is much bigger than mining. Concerns over the Xolobeni sand dune mine have been expressed with reference to the N2WCR project, but these are the facts: The N2WCR has no direct link to the proposed Xolobeni sand dune mine There is currently no Xolobeni mine There is no mining licence SANRAL does not give mining licences. THE SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD SOUTHERN REGION 20 Shoreward Drive, Bay West, Port Elizabeth, 6025 P.O. Box 24210, Bay West, Port Elizabeth, 6034 SANRAL FRAUD HOTLINE 0800204558 Remember, SANRAL is in the business of developing and maintaining roads; and in doing so making sure that the natural environment is preserved and protected. @sanral_za @sanralza @sanral_za SANRAL SANRAL Corporate