Johannesburg - President Jacob Zuma says workers should refrain from demanding higher salary increases and instead tighten their belts as his government had done.
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We can’t have workers demanding higher salaries if the companies are not making profits. Workers should be tightening their belts to protect their jobs. If they lose their jobs, they become the burden of the government,” he said on Sunday.
The president was speaking during the opening of unit 6 of the Medupi power station in Lephalale, Limpopo.
The Medupi project, which began in May 2007, was hampered by intermittent labour strikes and contractual disputes, among others.
Zuma said the opening of unit 6 of the power station would result in massive benefits to the economy, including growth of 0.35 percent to the gross domestic product.
He said the Medupi project, which he described as “a living example of the pervasive impact and potential of our infrastructure projects”, would give much-needed impetus to economic growth,
starting with the economy in Lephalale.
“The construction of this site jerked the economy of this area very significantly, in terms of job creation mainly, infrastructure development and social investment,” Zuma said.
Medupi is the largest coal-powered power station in the country and is set to be the fourth largest in the world, once completed in 2019.
The opening of unit 6 will bring much-needed relief to the overburdened power grid, which has seen intermittent power outages, which has partly been blamed for job losses.
While the opening of the Medupi project was eagerly awaited, Zuma’s speech could also be construed as a charm offensive to win over the confidence of big business and investors in the face of an ailing economy and job losses on a large scale.
He used yesterday’s event to list a range of successes by his administration, starting with boosting energy supply, job creation, skills development and huge investments in Lephalale and its neighbouring communities and across Limpopo.
Zuma acknowledged that load shedding was costly to the economy.
“Our country has experienced serious energy challenges in recent times. The shortage doesn’t only cause enormous inconvenience to our people; it is a serious impediment to economic growth,” he said.
Zuma reiterated that the ailing economy was exacerbated by the “difficult global economic conditions”.
He again blamed apartheid for the country’s power problems.
“People ask why we only started this (the government decided to construct power stations). This is because energy was structured on a racial basis only for some. We said everyone needs energy. We were not lazy or sleeping – it was our peculiar history that caused this,” he said.
Apart from Medupi, Eskom is building power stations at Kusile in Mpumalanga and Ingula in KwaZulu-Natal.
Zuma said the opening of unit 6 at Medupi was “a light at the end of the tunnel”.
That unit would add 794 megawatts to the national grid.
“In this regard, its impact is already being felt countrywide. Pressure is being alleviated on the national electricity system to prevent or minimise load shedding.
“This is a very important milestone in Eskom’s growth trajectory towards the 4 800MW capacity that must be achieved at the completion of the other five units,” he said.
Zuma added that Medupi’s contribution, along with the 1 800MW supplied by independent power producers, would further strengthen the electricity supply and stimulate the economy.
Unit 6 first started contributing intermittently to the national grid on March 2 this year, and while undergoing regular optimisation tests and during this period, helped to minimise or avert load shedding altogether.
All the project statistics
* The town of Lephalale’s gross domestic product has increased by about 95 percent a year as a result of the power station’s construction.
* At its peak, about 18 000 construction workers and 2 000 support staff were employed, sourced mostly from the area, thus contributing to the improvement of local skills.
* There are more than 13 000 workers on site at Medupi.
* In all the projects, South African companies were prioritised for procurement and obtained 62 percent of the R75 billion worth of contracts for the new build programme.
* About 90 percent of the candidates at this facility come from Limpopo.
* A total of 28 local business owners and agricultural co-operatives were trained, mentored and coached.
* Since its inception, the project has invested in excess of R2.3bn in infrastructure as well as socio-economic development initiatives in Lephalale.
* An amount of R113.6m has been invested in building the D1675 provincial road as the diversion road from the site, and R190m was spent on construction of the Kuipersbult Road and the expansion of Nelson Mandela Road.
* An amount of R31m was invested in sewerage plants in adjacent places such as Marapong.
* Other added benefits of the Medupi project included skills development, training, upgraded clinics and schools and the Seleka Community Hall and Traditional Offices.
* Upgrading of SAPS facilities in Lephalale.
THE STAR