Vaal to get major Aerotropolis after major financing deal announced
In a potential economic game-changer for the Vaal, the American Citibank SA has pledged almost R1,4 billion in financing for the building and development of an aerotropolis in the economically-depressed region.
Other major infrastructure plans are also in the pipeline for multi-decase projects in the Vaal and Southern Gauteng, the bank announced.
The proposed new Aerotropolis is set to be built south of the Grasmere Toll Plaza on the western side of the N1 highway, sources said.
An additional R200 million has also been earmarked for the development of black industrialists in the Vaal region, Citibank SA said.
Citibank SA said in Cape Town on Thursday that the project will include a sizeable new international airport and that it has applied to have the project declared a Special Economic Zone (SEZ) and for rezoning.
And that’s not all – the Vaal Aerotropolis will also be the catalyst for broader economic growth in southern Gauteng, with a similar project in pipeline for Heidelberg, sources close to the projects told Vaalweekblad..
These projects will also bring additional agricultural and manufacturing hubs to the Vaal.
These projects will include limiting the impacts of trucking on the region’s roads, which have been degraded by massive overuse by trucks moving products out of the region due to collapsed ral services, sources tol Mooivaal Media.
Citibank addressed the media on the subject at an event with the Department of Trade, Industry and Competition (Ditc).
Major work has already gone into the project said Stan Taylor, Citibank’s Chief Country Officer in South Africa.
An aerotropolis is an airport where most of the supporting infrastructure and supplies are built around the airport, thus generating investment and economic growth.
The Dtcic is the main administrator of the funding, which will mainly go to black industrialists and be administered by the Department of Trade and Industry (DTI).
“Citibank also envisages that social housing, student accommodation and other services will follow once rezoning is done.
“We love the fact that its happening in an area that has been previously uderserved and we believe that the initial investment will be a catalyst to further envisaged investment over a multi-decade period and could total more than 30 times our initial investment,” said Citibank’s Taylor.
