In this year's state of the Nation Address (SoNA) President Jacob Zuma announced several initiatives to boost infrastructure development in the next three years in South Africa. He declared 2012 as the year for massive infrastructure development to address the triple challenge of poverty, inequality and unemployment, with government committing up to R3.2-trillion to spend over the next three years on over 40 major infrastructure projects with clear intensions to industrialise the country, generate skills and boost much needed job creation.
The Presidential Infrastructure Coordinating Commission is already making progress in drawing up South Africa's infrastructure implementation master plan, which will be unpacked at the Municipal Infrastructure Summit, which outlines the geographically-defined strategic projects announced by President Jacob Zuma at the Opening of Parliament earlier this year.
The geographically-defined strategic projects include massive integrated rail, road and water infrastructure in Limpopo province, and improvement in the movement of goods between Durban, Free State and Gauteng.
The plan also includes boosting industrial and agricultural development and export capacity of the Eastern Cape, as well as expanding the province's economic linkages with KwaZulu-Natal and the Northern Cape. In North-West province, the plan highlights the need for the roll-out of water, roads, rail and electricity infrastructure, with 10 priority roads earmarked for upgrade.
Municipalities and Metros have been invited to further unpack their plans and challenges in Infrastructure Development Background Increase in Municipal Infrastructure Spending R3.2-trillion projects under consideration will be approved for implementation and government will choose the most cost-effective ones that offer optimal long-term benefits. All public sector infrastructure projects will be subjected to rigorous assessment to determine their feasibility.
Government is of the view that the country's public sector capacity to implement major projects is presently inadequate, and that steps must betaken to strengthen planning and implementation capacity at all levels. National Treasury outlined a range of measures to boost planning and monitoring capacity in government departments and municipalities to ensure that they carry out major projects and allocate the necessary spending on them in an efficient way. National Treasury further indicated that only about 68% of the R178-billion made available to departments and municipalities to spend on infrastructure in 2010/11 was actually spent.
Government and state enterprises are expected to allocate funding estimated at R262-billion over the next three years to transport and logistics infrastructure, including Transnet's spending on pipelines. As part of the reforms in the rail sector, the acquisition of new passenger coaches will be prioritised in the next 20 years into two 10-year batches, with 3 600 vehicles expected to be purchased in each batch. Government wants to further replace the entire existing fleet over this period, with a feasibility study to explore the project scope already done last year.
National Treasury has set aside R1-billion for the upgrade of signaling and the building of depots ahead of the arrival of the new fleet. A minimum of five new depots would be required for the new trains at a total cost of R4.6-billion. Furthermore, infrastructure interventions amounting to R13.5-billion will be made on the existing networks to enhance the technological benefits of the new coaches.
The Municipal Infrastructure Summit 2012
The Local Government Business Network, supported by the Department of Public Enterprises, Public Works and National Treasury will be hosting municipalities, government departments and state-owned enterprises in an intense two-day summit to unpack, review, consult and address current issues facing municipalities and government in further investments on Infrastructure development, the application of labour intensive technologies, methods and programmes, the second phase of the expanded public works programme, public private partnerships as well as partnerships with other government agencies to create jobs and accelerate service delivery. This summit will take place on 25-26 October 2012, during Transport Month at Birchwood Hotel and OR Tambo International Conference centre Ekurhuleni
Gauteng, themed The Road to Economic Recovery Local Government is Ready for Partnerships where senior government and municipal officials, business and civil society will network, unpack challenges, engage and share ideas on the way forward.
Major Drivers and Insights for this year's summit will include:
- Stirring developmental duties to the right path to structure and manage infrastructure development in the local governments
- Addressing municipal funding model and how it affects the national economic picture
- Develop a capacity building process to sustain economic growth for available infrastructure
- Evaluating situational analysis to determine level of development and priorities
- Foreseeing social and economic issues before hand to prevent public unrest and interruption to infrastructure programmes.
For more info contact phumzile at 011 039 1810/011 039 1815, fax 086 751 9688, e-mail phumzilef@lgbn.co.za
Date: 25 October 2012
to 26 October 2012
Time: 09:09 - 16:00
Venue: Birchwood Hotel and OR Tambo International Conference Centre, Johannesburg
