Aug 17, 2012
Construction|Components|Eskom|Flow|PROJECT|Project Management|Projects|Public Enterprises|Transnet|Building|Flow|Infrastructure|Harman On Time Radio|The FIFA World Cup
© Reuse this
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 (150 word limit)
Other Editorial Insight News
Article contains comments
Updated 7 hours ago Increased maintenance costs, poor rolling mill yields and strike action have widened Evraz Highveld Steel’s operating loss, from R149-million in the nine months ended September 30, 2013, to R483-million for the comparative 2014 period. The company added on Monday...
Updated 7 hours ago Energy Minister Tina Joemat-Pettersson has misled Parliament and should be suspended pending an investigation, the DA said on Monday. "Reports indicate that the minister was involved in recommending and appointing Mr Tshepo Kgadima as chairman of the board of...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.