http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

Game changers?

Back
Construction|Components|Eskom|Flow|PROJECT|Project Management|Projects|Public Enterprises|Transnet|Building|Flow|Infrastructure|Harman On Time Radio|The FIFA World Cup
Construction|Components|Eskom|Flow|PROJECT|Project Management|Projects|Transnet|Building|Flow|Infrastructure||
construction|components|eskom|flow-company|project|project-management|projects|public-enterprises|transnet|building|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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Editorial Insight News
The relationship between economic growth and development and stable and affordable electricity supply is not only strong, but also indisputable. The link is reaffirmed in the Africa Energy Outlook publication, which was released by the International Energy Agency...
In his concluding remarks during the release the latest World Economic Outlook (WEO), International Monetary Fund (IMF) chief economist Olivier Blanchard argued that the challenge for national policymakers was to “re-establish confidence, through a clear plan to deal...
If South Africa is going to attain the twin goals of reindustrialising while transforming the racially skewed composition of its economy, it is common cause that black economic-empowerment policy will need to be more closely aligned with industrial policy. This means...
More
 
 
Latest News
Updated 1 hour 15 minutes ago Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Updated 1 hour 34 minutes ago Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
Updated 1 hour 35 minutes ago The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
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
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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