By Nangamso Mabindla
3 September 2004

THE construction of the sub-station in East London's Industrial Development Zone in the West Bank has contributed to economic growth and job creation in the province, says Eskom Southern Region general manager Peter Craig.

Eskom partnered with local businesses to construct the newly opened R26,5-million substation that will supply electricity to the IDZ and residents in the West Bank area.

"We really wanted this to be a truly South African project," Craig said.

"During the construction, R15,8-million went to distribution; R4-million to black empowerment, R3-million to SMMEs, R300 000 to local labour, and R400 000 to local contractors," he said.

East London IDZ Chief Executive, Simphiwe Kondlo, said much was done to ensure local people were involved in the building of the substation.

"This project was completed in just over 11 months with 42 jobs created in the process. We'd like to thank Eskom for using locals in the project," said Kondlo.

The project, which began in April 2003, was a joint venture carried out by Eskom, the IDZ and Buffalo City.

The sub-station will enable the IDZ to be in a better position to lure investors into the city. "We have the cheapest electricity in the world. This puts us in a much better position to sell the city, we now have a new sub-station to supply this area."

Buffalo City mayor Sindisile Maclean welcomed the IDZ and Eskom's efforts to assist government in creating jobs, adding that their efforts will go a long way towards alleviating poverty and creating jobs in the province.

Without strong partnerships like the one the municipality had with its stakeholders it would not have been able to achieve this feat, he added.

The municipality and its partners, including businesses, needed to consolidate their efforts into partnerships that would lead the city into the right direction.

"It has been estimated, during our Reconstruction and Development Programme, that it will cost R53-billion to address the entire infrastructure backlog throughout the country," Maclean said, "If municipalities undertake the task alone, they will only achieve their goals in 2050."