http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.91Change: -0.03
R/$ = 12.56Change: 0.01
Au 1097.25 $/ozChange: 1.90
Pt 987.00 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Aug 16, 2012

Game changers?

Back
Construction|Building|Components|Eskom|Flow|PROJECT|Project Management|Projects|Public Enterprises|Transnet|Flow|Infrastructure|Harman On Time Radio|The FIFA World Cup
Construction|Building|Components|Eskom|Flow|PROJECT|Project Management|Projects|Transnet|Flow|Infrastructure||
construction|building|components|eskom|flow-company|project|project-management|projects|public-enterprises|transnet|flow-industry-term|infrastructure|harman-on-time-radio|the-fifa-world-cup
© Reuse this



It was interesting to learn recently that the Department of Public Enterprises is moving to collect and disseminate ‘best practices’ relating to the management of the complex procurement and implementation processes associated with megaprojects being pursued by State-owned companies such as Eskom and Transnet.

A dedicated office is being set up to conduct the monitoring and to provide strategic support for the roll-out of the R850-billion-plus infrastructure programme.

The aim is to foster on-time and on-budget delivery, while more fully exploiting the developmental impacts associated with a project pipeline government hopes will stimulate growth, job creation and industrialisation at a time when the economy is facing serious headwinds.

Such benchmarking could become significant if it is indeed used to reverse the current tendency of price escalation, poor project management and schedule slippage.

As importantly, though, it implies that government is gearing up for a megaproject investment cycle that is more continuous, and less stop/start in nature.

The idea, it seems, is to create certainty in demand – certainty that has been absent ever since the conclusion of the FIFA World Cup projects. Sadly, that earlier project-economy momentum was all but lost, leaving the construction sector in deep trouble and causing infrastructure-linked businesses to think twice about building further capacity.

There is little question that without this demand certainty, government will be unable to transform the megaproject pipeline into what is being termed an economic ‘game changer’.

If the private sector is to truly believe that the programme is credible this time round, plans and pronouncements need to be matched closely with implementation. Announcements will also need to be backed by comprehensive and realistic funding plans – something that was absent when Eskom first embarked on its big expenditure initiatives.

Even further credibility will be built if key State-owned companies begin investing in line with yearly budgets, which means that these budgets need to be strongly aligned with the internal capacity to deliver.

To be sure, unless these components are in place, the credibility of the infrastructure programme will continually be brought into question.

But there is also an additional component that has to be deployed, and deployed with ruthless efficiency for the sake of credibility: procurement processes need to be entirely corruption free.

Currently, the morale of South Africans is being undermined daily by the seemingly relentless flow of revelations of maladministration, mismanagement and corruption. The country needs visible proof that these much-needed projects can be delivered on time, within budget and in the absence of influence pedlars, money-grubbing bureaucrats and colluding contractors.

If these large projects also fail the integrity test, they will also fail to live up to their promise of being game changing catalysts for growth and development.

Edited by: Terence Creamer
Creamer Media Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Editorial Insight News
The trade-off currently being considered in the steel industry is relatively straightforward. The country’s largest steel producer, supported by some smaller companies, is seeking greater protection from steel imports, as well as regulations stipulating that locally...
With tongue firmly in cheek, political commentator JP Landman empathised strongly recently with an audience of mostly male professionals for having to bear the infuriating insistence of their fathers-in-law that the entire country was being kept solvent by a small...
More
 
 
Latest News
Transnet National Ports Authority CIO Mmutle Lentle
State-owned enterprise Transnet National Ports Authority’s (TNPA’s) new Web-based integrated port management system (IPMS) went live on July 26 at the Port of Durban, with crude oil tanker Colorado being the first vessel to be brought into the port using the new...
South Africa’s automotive industry is not in crisis – but there is a very real danger that inertia could see it regress into lightweight assembly rather than claim its place as a globally competitive vehicle manufacturer. Speaking at the National Localisation Indaba,...
Ahead of the start of construction of the Gibela Rail Transport Consortium’s R1-billion modern manufacturing facility and ancillary supplier business park, in Dunnottar, on the East Rand, the company gathered in excess of 450 aspiring contractors at a sector-specific...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics. As a member of the Structa Group, Structa Technology proudly...
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96