http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.59Change: -0.01
R/$ = 10.53Change: 0.03
Au 1297.64 $/ozChange: -5.22
Pt 1433.00 $/ozChange: -3.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

Game changers?

Back
Eskom|Flow|Public Enterprises|Transnet|Flow|Harman On Time Radio|The FIFA World Cup
eskom|flow-company|public-enterprises|transnet|flow-industry-term|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
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Editorial Insight News
Article contains comments
Besides frighteningly frank warnings (which some have disparaged as being apocalyptical) about the threat posed by climate change to everything from food security to human health and ecosystems, one of the stand-out themes from the latest Intergovernmental Panel for...
With South Africa poised to open the way for shale gas exploration, it was interesting the gain insight into the issue of hydraulic fracturing (fracking) from UK special representative on climate change Sir David King. King, who was born in Durban in 1939 and...
Business Unity South Africa (Busa) is mobilising a high-level team to pursue a “strategic national response” to the problems associated with South Africa’s electricity shortages, which came into sharp focus again on March 6, when Eskom resorted to 14 hours of...
Article contains comments
More
 
 
Latest News
Updated 3 minutes ago Major changes have been announced at PSA Peugeot Citroën as it continues the fight to return to profitability and increase sales. It is especially the overseas markets that have taken a pummelling for the French manufacturer at the beginning of 2014, with the...
Updated 2 hours 43 minutes ago More than 600 engineering students from the University of Cape Town (UCT) have come up with suggestions for what do with the city's infamous unfinished Foreshore freeway, together with the Foreshore precinct.  They range from demolishing the unfinished freeway to...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Updated 3 hours ago The power and water sector will come together in May to discuss challenges and celebrate successes at the annual African Utility Week and Clean Power Africa in Cape Town. More than 5 000 power and water professionals, including utility heads from Nigeria, Uganda,...
There is enough water in South Africa to supply communities and the economy, even if some activities may be constrained, such as agriculture in the Limpopo, says National Planning Commission commissioner Mike Muller. 
Muller was also the director-general from 1997...
South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom),...
Industrial automation giant Festo has been displaying some of the its ongoing research projects and latest automation developments and products at the Hannover industrial fair from April 7 to 11, as part of its Integrated Automation – The Next Steps theme. The...
South African retail companies are responding to the way in which e-commerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle...
 
 
 
 
 
 
 
 
 
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