Mauritius: Growth Sectors and Projects
In general best prospects for exports are in capital goods, grains, and services. Of particular note are:
PUBLIC INFRASTRUCTURE: In its 2009 Budget, the Mauritius Finance Minister announced massive investments in infrastructure to remove bottlenecks on the roads, at the sea port, airport, energy, and water and sanitation which threaten to slow down economic growth. He indicated that public infrastructure will need an investment estimated at $4.6 billion over the next decade. The Minister estimates $790 million will be spent on several road projects, including a new Ring Road and a Link Road around Port Louis as well as a Harbor Bridge and a Bus Rapid Transit System. Works on these projects are expected to start by 2010.
In addition, the Government plans to invest $667 million in other major infrastructure projects to remove bottlenecks at the airport and in sea port. Between 2009 and 2011, about $330 million will be invested in a new modern airport catering for four million passengers. Also, a feasibility study for an emergency runway will soon be launched. Regarding the port, the Mauritius Ports Authority will invest in (i) new port equipment to cater for the increase in container traffic (ii) 3 tug boats (iii) construction of a Cruise Terminal, and(iv) a flood wall at the Container Terminal. Also, the Cargo Handling Corporation will be looking for a strategic partner with the assistance of the World Bank.
The Government is also moving ahead with the Public Private Partnership projects. For example, construction works on the Chinese Tianli new modern trading city near Port Louis are scheduled to start in September 2009. This $600 million project, supported by the Chinese government, will involve 40,000 persons and be a gateway for companies to invest in and trade with Africa. The Minister of Finance also announced the construction of a new city at Highlands which will require an investment of $3.7 billion over the next 10 years. The project has reached the stage of final selection of the master developer to implement the project. The new city will be a hub for knowledge services based industries, including tertiary education, financial services, healthcare, and information technology.
RENEWABLE ENERGY: In 2008 the Government provided for a $40 million Maurice Ile Durable (Sustainable Island) Fund to support measures to increase reliance on renewable energy, protect the environment through recycling, and encourage more efficient use of energy. Replacement of imported fossil fuel by local renewable sources will involve the production of electricity through (i) two wind farms (ii) two new hydro units (iii) use of cold sea water for air conditioning by the upcoming Land Based Oceanic Industries Park, (iv) burning of solid waste and (v) development of the Mare Chicose Landfill Gas project. In its 2009 Budget, the Minister of Finance announced that a 100 MW power plant project that will require an investment of $152 million over three years will be undertaken on the basis of a tender for the best technology that will meet specified environmental standards. Moreover, a 25 to 40 MW Wind Park at Bigara, estimated at $30 million will be implemented in the next three years.
The Government recently approved a coal power project to be undertaken by a Malaysian firm and is currently considering a waste-to–energy power plant proposed by a joint venture between U.S. and Mauritian firms.
