Incentives
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Land Price Incentives . Sewerage . Water Incentives . Electricity Incentive . Incentives for Bigger Investment


Draft Incentive Schemes

The following standard incentives be delegated to the Municipal Manager and offered to small and medium enterprises with normal water and electricity requirements subject to a labour component of 15 employees (provided that 66% of employees are local) and if labour is outsourced a local agency who wish to establish themselves in any developed industrial/commerical area of the Local Council of Lekw must be utilized.

A 40% rebate on the purchase price of serviced land provided that negotiated stage of development is reached within a specific time frame (Rebate will bein the form of additional property tax concessions on top of those mentioned below).

Rates:  
Year 1 100% rates rebate (from date of signing lease or purchase contract
Year 2 a 75% rates rebate
Year 3 a 50% rates rebate
Year 4 a 25% rates rebate
Year 5 a 0% rates rebate

Refuse Removal
Year 1 100% rates rebate (from date of signing lease or purchase contract
Year 2 a 66% rates rebate
Year 3 a 33% rates rebate
Year 4 a 0% rates rebate
(Cap of 2 refuse bins per day and limited to normal household type of refuse)

Regular inspections must be carried out by the Department of Health to ensure that the requirements are complied with during the first 3 years

Land Price Incentives
A 40% rebate will be allowed on the purchase price of serviced land provided that a negotiated stage of development is reached within a specific time frame. No standard rebate is allowed when land is developed for the needs of the investor. A price needs to be negotiated and submitted to the Executive Committee for approval.

A 20 year lease agreement be offered to potential developers of a commercial site, subject to the following;
The lease agreement must yield a market-related return on capital (negotiable).
Improvements on the site will revert to Council when the lease expires.
Property rates will come into effect 1 year after signing of the agreement or when an Occupation Certificate has been issued, whichever is the earliest.

Sewerage
Sewerage disposal differs throughout the municipal area and incentives in this regard will be difficult to implement or manage, therefor no incentives are offered for both small and large investors.

Water Incentives
The price of water has a major effect on teh operating budget of large consumers. It is suggested that investors with a requirement or mmore than 3 mega liters lper month at a maximum flow rate of 1.2 litres be considered for the following phased water tariff.

The investor will be responsible for the installation fee based on actual cost, but the installation cost of water will be deemed to be part of the contribution made in terms of water directives.

Year 1 The investor will pay 70% of the applicable tariff (calculated from date of signing of purchase/lease agreement).
Year 2 The investor will pay 80% of the applicable tariff.
Year 3 The investor will pay 90% of the applicable tariff.
Year 4 Normal tariff will apply.
 

Electricity Incentive

Year 1 The investor will pay 100% of the applicable ESKOM tariff (calculated from date of signing of purchase/lease agreement).
Year 2 The investor will pay 100% of the applicable ESKOM tariff plus 33% of operating cost to Council (i.e. cost plus 33% of difference between cost and negotiated electricity tariff).
Year 3 The investor will pay 100% of the applicable ESKOM tariff plus 66% of operating cost to Council (i.e. cost plus 66% of difference between cost and negotiated electricity tariff).
Year 4 Normal promulgated hour charges will continue.
 
Incentives for Bigger Investments

The following standard incentives be offered by the Municipal Manager to investors that wish to establish in amy developed industrial/commercial area or where a piece of land is developed to the specific needs of the investor and the minimum requirements as set out below are met.

A minimum of 1 MVA load is required, minimum 9 hour production, ability to effect at least 30% load shedding, and/or capacity to co-generate 3 mega watts (minimum) lectricity required to qualify.

Year 1 The investor will pay 100% of the applicable ESKOM tariff (calculated from date of signing of purchase/lease agreement).
Year 2 The investor will pay 100% of the applicable ESKOM tariff plus 33% of operating cost to Council (i.e. cost plus 33% of difference between cost and negotiated electricity tariff).
Year 3 The investor will pay 100% of the applicable ESKOM tariff plus 66% of operating cost to Council (i.e. cost plus 66% of difference between cost and negotiated electricity tariff).
Year 4 Normal promulgated hour charges will continue.