Cape Town - The Coega development, which will be a huge injection for economic progress in the Eastern Cape, is now unstoppable following Transnet's granting of contracts to the value of more than R2bn for the construction of the deep harbour.

The building of the harbour represents the largest maritime civil engineering project in Africa for a long time. It is the biggest single government-sponsored infrastructure development of recent decades in South Africa.

It is expected the first ship will enter the Ngqura harbour in September 2004, 516 years after Portugal's Bartholomew Diaz dropped anchor as the first European near St Croix Island in Algoa Bay close to the Coega beach in 1488.

Public Enterprises Minister Jeff Radebe announced in Parliament on Wednesday that the Cabinet had been informed about the awarding of three contracts for the building of the Ngqura harbour.

According to him, expenditure on infrastructure by important State institutions is evidence of the government's commitment to making a practical contribution to economic development.

It also shows the government's commitment to the development of the Coega industrial development zone, which should satisfy prospective investors, he said.

The biggest of the three contracts, for maritime civil engineering work to the value of about R1.4bn, was awarded to a consortium called the Ngqura Harbour Contractors (NHC). The contract involves installing wave breakers and harbour protection, the building of quays and related groundworks.

NHC is a joint venture between Hochtief Construction AG of Germany, Concor of South Africa and the Ngqura empowerment contractors. The latter consist of four black empowerment companies, namely Africa Construction of Johannesburg and three Port Elizabeth companies. They are Siyaya Civils and Building Contractors, Sakhisizwe Construction and Matota Macingwane, Pambo Civil Engineering Contractors and Consultants.

The second contract, for controlling current and sand movements, is worth about R100m, and was awarded to Connec Joint Venture, a joint venture between Concor and Ngqura Empowerment Contractors.

The third contract, for about R500m, for digging an entrance channel and turning circle for large ships of up to 80 000 tons was awarded to Belgian company Jan de Nul.

Radebe says the contract work will create about 900 jobs over the next three years. The contracts also include considerable black empowerment, because a minimum of 30% participation by empowerment groups is required by the first two contracts.

The fuel used by Jan de Nul will be bought from empowerment groups.

Black empowerment expenditure will amount to about R571m.

With acknowledgements to Jaco Leuvennink and Sake Burger.