http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.06Change: -0.14
R/$ = 11.66Change: -0.12
Au 1213.36 $/ozChange: -4.14
Pt 1189.50 $/ozChange: -1.00
 
 
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
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 28, 2012

Urgent need to close SA’s infrastructure funding, regulatory gaps – report

Back
Construction|Africa|Development Bank Of Southern Africa|Environment|Ports|Projects|Resources|Roads|Systems|Water|Africa|South Africa|Delivery Systems|Economic Infrastructure|Electricity|Energy|Finance|Information Communication Technologies|Maintenance|Systems|Telecommunications Sectors|Infrastructure|Jim Yong Kim|Pravin Gordhan|Rail|Water|Operations|Southern Africa|Information Communication Technologies
Construction|Africa|Environment|Ports|Projects|Resources|Roads|Systems|Water|Africa||Energy|Maintenance|Systems||Infrastructure|Rail|Water|Operations||
construction|africa-company|development-bank-of-southern-africa|environment|ports|projects|resources|roads|systems-company|water-company|africa|south-africa|delivery-systems|economic-infrastructure|electricity|energy|finance|information-communication-technologies-industry-term|maintenance|systems|telecommunications-sectors|infrastructure|jim-yong-kim|pravin-gordhan|rail|water|operations|southern-africa-region|information-communication-technologies-technology
© Reuse this



For South Africa to raise the developmental impact of its large-scale economic infrastructure investment programme, there is a need not only for improved planning within the energy, transport, water and telecommunications sectors, but also integrated planning across sectors, a new report argues.

The ‘State of Infrastructure Report’ has been produced jointly by the Development Bank of Southern Africa (DBSA) and The Presidency’s Department of Performance Monitoring and Evaluation and was released at the biannual Cabinet lekgotla held in early September.

Integrated planning, it says, is necessary to ensure that the right investment choices are made, which, together with effective delivery, has been proved to “distinguish high-growth economies from low-growth ones”.

To illustrate the point, the authors argue that the water sector cannot operate without electricity, which, in turn, cannot operate without water. Similarly, they argue that the use of information communication technologies across, rail, roads and harbours will be “imperative” for enhancing management capability and increasing efficiencies.

“In short, a systematic infrastructure development planning process is required to prioritise, sequence and resource projects, including the mobilisation of private sector participation,” the reports avers.

It is also incumbent on structures such as recently instituted Presidential Infrastructure Coordination Commission (PICC), to facilitate alignment between the deployment of economic infrastructure and the country’s national socioeconomic objectives.

Finance Minister Pravin Gordhan has indicated that South Africa plans to develop a 10- to 20-year pipeline of projects so as to move away from the current stop/start dynamic that has been so debilitating for the construction profession in recent years.

“What we need in South Africa is efficient delivery systems so that intentions and policies begin to be converted, very efficiently, into actions on the ground that make a positive impact on our economy,” Gordhan said at a recent briefing held after government met with new World Bank president Dr Jim Yong Kim.

The DBSA study says it is also critical to urgently “reform” the financing mechanisms available, to ensure that finance is available for the infrastructure priorities that are selected through integrated infrastructure planning.

“Government budgets are often underspent and opportunities are missed to crowd-in the private sector. Importantly, resources are not targeted at high-impact priorities,” the report says.

It warns there are few dedicated funding streams for operations and maintenance and that planning processes have historically neglected to build these costs into infrastructure plans. “The priority is, therefore, to create ring-fenced resource streams for infrastructure rehabilitation and maintenance, notably at the municipal level.”

It is also important to monitor the elimination of backlogs as a separate stream of delivery, while ensuring that the life cycle of the asset is fully taken into account and not just the delivery. “If you can’t afford the life-cycle cost, do not build it,” the authors say.

The regulatory framework for the six economic infrastructure sectors reviewed – electricity, rail, roads, ports, water and telecommunications – is also in need of an overhaul. In some instances, such as rail, an economic regulator remains absent, while in others, such as roads, there is a failure to effectively regulate issues such as overloading.

“South Africa will benefit from improving the regulatory environment in all six economic infrastructure sectors examined in this report. In particular, enhancing the capacity of regulators and giving them the ability to impose sanctions for uncompetitive behaviour must be a policy priority,” the study says, while calling for the regulatory gaps to be closed as a matter of urgency.

Writing in the foreword, Minister in The Presidency for Performance Monitoring and Evaluation as well as Administration Collins Chabane says the PICC has clustered, sequenced and prioritised 17 strategic integrated projects and the issues raised in the report will assist government in “thinking outside our existing paradigm”

.

The report concludes that the review highlights the need for a consolidated governance framework for infrastructure delivery so as to ensure projects are aligned with the country’s socioeconomic needs, respond to real demand and that the costs are equitable. It also stresses that implementation capacity needs to be developed and enhanced, particularly given South Africa’s chronic skills shortages.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
More
 
 
Latest News
Salani Sithole
International consulting engineering company Royal HaskoningDHV (RHDHV) has appointed Salani Sithole as South African MD, effective March 1. Sithole has been with the company for six years and, prior to joining RHDHV, held various positions in engineering consulting,...
The Gauteng Provincial Government has outlined plans to develop a handful of “mega” human settlements as part of an ambitious long-term housing development strategy aimed at narrowing the housing backlog, with plans afoot to replace informal settlements with...
Eskom power stations
While State-owned power utility Eskom was unable to cut off electricity supply to some of its neighbouring trade partners, it was able to reduce energy exports by 10% when load shedding was implemented locally. The Department of Public Enterprise explained that Eskom...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
 
 
 
 
 
This Week's Magazine
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
In a recent letter to the editor that I sent to Engineering News (Concerns regarding South African portion of Square Kilometre Array) and in a follow-up article elaborating further (We must start preparations to build our own synchrotron light source), I stated my...
 
 
 
 
 
 
 
 
 
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