Development corporation chairman Des Halley said in a statement that Power Construction had been awarded the tender to build major roads and other works to support the first stage of the industrial development zone.

The contract, which stipulates the use of local enterprises, suppliers and manufacturers, will pump nearly R13.5 million into the East London economy.

Work is expected to start in May and continue for 14 months. It involves constructing roads, storm-water systems and a bridge, installing street lighting, and landscaping the major roads leading into and out of the zone.

IDZ chief executive Peter Miles said the extent of the external infrastructure showed that the zone would be a great boost for the economic development of East London, the Buffalo City metropole and the greater Eastern Cape.

Consultants Ninham Shand, Lukhozi, Taylor and Associates Consortium were appointed in 2002 to plan all external and internal infrastructure in detail

Tenders to build the internal infrastructure would be invited before the middle of the year.

Miles said the project was on track to support the start of manufacturing operations in the Customs Secure Area and the associated industrial park by August 2004, which would make it South Africa's first operating IDZ.

The announcement follows news last week that the Coega IDZ had moved a step closer to signing up its first tenant, when aluminium multinational Pechiney concluded a vital agreement with the National Ports Authority (NPA).

The deal will ensure that the Port of Ngqurha, which is being built from scratch to service the Coega IDZ, has enough harbour facilities, roads and bridges to import the raw materials for Pechiney's proposed $1.6 billion smelter and export aluminium.

Construction of the deep-water port began last October.
According to NPA chief executive Siyabonga Gama, R2.7 billion will be invested in the port over the next five years.

Spoornet will spend R500 million on a rail link to Port Elizabeth. Eskom will invest an additional R2.3 billion on electrical infrastructure.