Issued by: North West Communication Service
North West Premier Mr Popo Molefe, on an official visit to Beijing in China announced a major investment deal which could be worth more than 12 billion US dollars in the next six years. The idea is to build a mini-city near Potchefstroom where hundreds of factories, warehouses, shopping malls etc, a hotel and casino will be built.
The project is aimed at creating more than 500 000 jobs in the North West province alone. But there will be considerable spinoffs for other provinces.
Potentially, it could be the biggest single investment in South Africa. Attached is a memorandum.
EXPLANATORY MEMORANDUM TO PREMIER POPO MOLEFE'S ANNOUNCEMENT AT AN INVESTORS' CONVENTION IN BEIJING, PEOPLE'S REPUBLIC OF CHINA.
RE: DRAGON CITY PROJECT
1. AIMS OF PROJECT:
To establish an industrial park of the same name near Potchefstroom, North West Province.
1.1. It is a private initiative to be funded entirely by private capital which is currently in USA and Switzerland.
2. SCOPE
The proposed mini-city is to be established on an additional 4430 hectares side adjoining the city with options for expansion on an additional 10 000 hectares.
2.1 By the end of about six years, it is anticipated that the mini-city will comprise more than 550 housing units, about 500 factories, warehouses, shopping malls, schools, creches, a hospital, a hotel and casino, a cultural centre, sporting facilities and clubs, a trade and exhibition centre, a railway station, offices and administrative centres.
2.2 Second tier support service for this complex will result in employment for over 500 000 local people.
2.3 It is the intention of the investors to relocate 500 plus factories together with 50 000 skilled personnel from the People's Republic of China, Of these, 90% will be on a two year contract, and will be repatriated back to PRC after transferring the necessary skills to local people.
2.4 The construction of the development will create opportunities for local small enterprises to supply building material, foodstuffs, labour, etc.
3. SOURCE OF FUNDING:
Local investors and developers have initiated the proposal and expended funds at their own risk.
3.1 The Chinese inhabitants will pay an agreed price for the land from their own private funds, and will pay all costs of construction, roads and services.
3.2 The total value of the investment is envisaged to exceed 6 billion US dollars in real estate and infrastructure development, plus approximately 12 US billion dollars in direct foreign investment in plant and equipment.
26 August 1996