Euphorbia The Godene Project
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The Project today: The development of a new textile industry in Namibia
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The Project today: Proposed project structure for the development of a new textile industry in Namibia:

In February 2000, the Industrial Development Corporation of South Africa (IDC) compiled a proposal outlining the development of a Godene fibre industry by identifying the steps required to lead to a bankable project.

Proposed project milestones:

In developing a project from a conceptual idea to implementation, an approach whereby incremental levels of certainty are achieved through the most cost effective application of effort and funds, is proposed. It is thus proposed that the development of Godene Fibre be undertaken in the following phases:

Exploratory study: This will comprise a study of the raw material source, the sustainability thereof, a preliminary assesment of the environmental impact of the exploitation of the plant, preliminary assessment of processing methods and their environmental impact, the determination of fibre characteristics and the identification of the best potential commercial application of the fibre. This technical study should identify and quantify the operating parameters of an envisaged production facility. The output of this study will thus provide clarification on the complications of industrialisation of the project.

Preliminary Commercial Assessment: This assessment will assume a volume to be produced for which the market for the fibre, both in terms of quality, price and volume, will be investigated. Furthermore, based on the outputs of the exploratory study, a cost structure for a potential production facility will be deduced and refined to a confidence level of roughly 70% or better. The outputs of the exploratory study will be used as a guideline in determining market areas to focus on and to set targets for the cost structure of the project. From this, a preliminary financing requirement will be determined and a risk/benefit analysis will be done.

Pre-Feasibility study: Should the previous two phases indicate sufficient economic merit, a Pre-feasibility Study will commence which will:

  • Produce product samples of various fibre applications on a laboratory scale for market testing purposes, by utilising various technologies and processes;
  • Establish the best technology/process for each application.
  • Conduct an environmental impact study in sufficient detail to at least enable the compiling of a Project Scoping Report as described in South African legislation. Due consideration should be given to the equivalent Namibian legislation in this regard and if requirements of the Namibian legislation are more stringent, the study should be adapted accordingly.
  • Establish the cost of equipment, other infrastructure and operating costs to a 90% or better level of confidence; The output of the study will thus provide further clarification on the complications of industrialisation of the project and propose solutions to problems identified in the exploratory study and preliminary commercial assessment.

Advanced commercial assessment: In this phase, the assumptions of the preliminary commercial assessment will be reviewed. The assessment will:

  • Confirm or refine the cost structure assumptions made during the preliminary commercial assessment by incorporating the results of the Pre-feasability Study. Parameters used may be inferred or extrapolated from test results;
  • Refine the risk/benefit analysis;
  • Identify and confirm potential participants in the implementation phase of the project; The study will thus provide clarification on the commercialisation aspects of the project and propose a commercial structure.

Feasibility Study: Given that the technology involved in the extraction method, processing and application of the fibre has been confirmed to a 90% level of confidence, one or more Industrialisation routes will be chosen and proposed for further development. A Feasibility study will then:

  • Produce product samples of chosen fibre applications, on a pilot scale, for market confirmation purposes;
  • Establish the repeatability of the technologies and processes proposed;
  • Conduct a full scale environmental impact assessment (EIA) as required by Namibian legislation which may include detailed scientific studies on aspects of concern as described in the Project Scoping Report as well as a full Public Participation Programme;
  • Establish the cost of equipment and other infrastructure on the basis of written quotations for the bulk of required investments;
  • Finalise the proposed fibre application, target markets, processes and extraction methods, cost structures and investment requirements ie compiling a bankable project proposal.
  • Negotiate, agree and confirm the basis of participation for the implementation of the project;
  • Propose financial structure and implementation plan for the project.

Project Implementation: Should the Feasibility Study indicate sufficient economic merit, willing participants will appoint an operating partner to implement the project according to the guidelines prescribed by the feasibility study. A more comprehensive description of the different phases proposed will be developed by the various participants before commencement of each phase.

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Godene Fibre Corporation 2010
Email: info at godenefibre dot com