Final EIAR - Aurecon AME Environmental | Environmental Projects

Proposed Wind and Solar (Photovoltaic) Energy Facilities on Kangnas Farm near Springbok in the Northern Cape: Draft EIR 88
the population is semi- and unskilled. This will not change or improve unless education levels
are improved. The more skilled people become the more income they will earn.
The employment profile of the study area is an important indicator of human development, but
also of the level of disposable income and therefore the expenditure capacity of the residing
population. Nama Khoi LM is largely populated by potentially economically active and young
people. During 2009 38.6 % were employed. This implies that there is a large amount of human
capital available for any kind of work, but also that there is space for training and developing
young and economically active people in highly qualified occupations in the relevant fields
needed. Furthermore development projects need to take into consideration the mode of
transport utilized by the labour force. New industrial developments should not be situated far
away from the pick-up or drop-off points of various means of transportation. The level of
employment and the type of occupations taken up by the population of the LM directly affects
the income levels of its people. 57.7% of households fall within the poverty level. The high
poverty level has social consequences.
b) Impact assessment
Note that construction phase impacts on the local and regional economy are assessed under
Section 4.3.
The main economic effects that were measured were employment numbers, Gross Geographic
Product (GGP) and new business sales in order to determine the impact of the proposed
projects on the local residents. These impacts were quantified in terms of direct, indirect and
induced impacts. Descriptions of these measures are as follows:
• Impact on employment numbers: The number of additional jobs created or jobs lost as a
result of the change in the economic growth of the local economy. This is the most
popular measure of economic impact because it is easier to comprehend than large,
abstract Rand figures.
• GGP: This measures the broader impact of the full income effect and essentially reflects
the sum of wage income and corporate profit generated in the region.
• New Business Sales: This measures the impact on Business Output (also referred to as
revenue or sales volume) and is the broadest measure of economic activity as it
generates the largest numbers. It includes the gross level of business revenue, which
pays for cost of materials and cost of labour, as well as generating net business income
profits.
o Additional New Business Sales:
The cost implications for the proposed projects for the annual operations are less than that of
the construction phase and as a result the impacts on new business sales will be less than the
impacts analysed in the construction phase. However the impacts from the construction phase
are a once off and the impacts during the operational phase would accrue each year during
operation therefore the total impacts from the operational phase would in time surpass those of
the construction phase, provided the projects operate for a number of years. The total impact
that the proposed wind farm should have on new business sales during the operational phase is
R185 500 000 (summation of direct, indirect and induced impacts). These new business sales
should accrue to businesses that are directly involved in the maintenance, security and other
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or adaptation, in whole or in part, may be made.
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