Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

DATE

MATTER RAISED BY PORTFOLIO

HOW THE DEPARTMENT ADDRESSED THE MATTERS Infrastructure development at the Mpumalanga International Fresh Produce Market is scheduled to be completed by the end of November this year. In the meantime, it can be reported that work completed is at 80%. The approved contract value was R1 561 087 271.75; however, due to pending variation Orders, it is anticipated that the final contract value will increase to R1 632 717 598.60. The project is implemented by the Department of Public Works, Roads and Transport on behalf of MEGA which is representing the Department of Economic Development and Tourism. As indicated above, it is anticipated that the project will be completed by end of November 2023. The progress to-date is 80% completed.

01 June 2023 The department must expedite the process of completing the construction of the

Mpumalanga International Fresh Produce Market (MIFPM) within the allocated budget and projected timeframe; and provide an updated progress report to the Committee, before the end of the second quarter of the current 2023/24 financial year. The department must submit a corrected report on the completion date and achievement of completion in terms of percentage recorded on the Mpumalanga International Fresh Produce Market (MIFPM) within five (05) days of tabling of this report. Furthermore, the department must clearly report on who the lead department of the market is, considering the concern over working relations between the other involved departments in operating the market. The department must submit more information to the Committee, on the Hybrid Model to be utilised in operating the Mpumalanga International Fresh Produce Market (MIFPM) before 15 June 2023. Moreover, the department must submit the Operationalisation Plan of the market as soon as it is approved by Executive Council. The department must submit a summary of the projects that are prioritised for implementation in the 2023/24 financial year to the Committee by 15 June 2023. Furthermore, the department must report on detection and prevention strategies on any financial irregularities that may occur from the expenditure of the said projects, during the financial year under review.

The Department is planning to appoint an interim transaction advisor, who will, in addition to normal transaction advisory services, take the project to bankability, and also perform the functions of an implementing agent until such time that a permanent market operator has been appointed. The Operationalisation Plan will be submitted to the Committee once it has been approved by the Executive Council. The Department will prioritise the finalisation of the Interim Phase of the Nkomazi SEZ, as well as the completion of the construction of the Mpumalanga International Fresh Produce Market. Furthermore, the Department will also endeavour to finalise the statutory compliance for the Petro-chemical Industrial Technology Park, as well as the Forestry Industrial Technology Park. The Department will also continue to support the incubation programme by providing financial support to the Middelburg Stainless Steel Initiative in Middelburg and the Furntech in White River.

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