The Gauteng government has set aside R10-billion of its R95.3-billion 2015/16 budget to fund its five development corridors, which are being pursued across the so-called ‘City Region’.

Gauteng, which is South Africa’s smallest province by area, is also the country richest, contributing R1-trillion, or 34%, of the country’s gross domestic product (GDP) and almost 10% of Africa’s GDP.

Releasing the budget in the provincial legislature on Tuesday, Finance MEC Barbara Creecy said the corridors, while dependent on each other, would seek to tap into their respective comparative advantages.

She indicated that, over the next three years, the province and the various Gauteng municipalities would spend just over R100-billion on physical assets and capital transfers in the City Region.

Gauteng itself would allocate R38.2-billion for the delivery of infrastructure over the period.

The Central Development Corridor, embracing much of Johannesburg and Soweto, would focus on the financial sector, information and communications technology and pharmaceutical industries.

It had been allocated R3.1-billion for infrastructure funding, including R979.9-million for human settlement that includes provision of housing in Diepsloot, Fleurhof, Lion Park, Malibongwe Drive, Goud Rand and Lufhereng; hostel upgrades in Alexandra, Meadowlands, Orlando West, Rethabile and Sephiwe; as well as the rectification of houses in Kliptown.

A further R789.9-million had been allocated for new schools and refurbishment of existing classrooms, while R453.4-million and R263.4 million was set aside respectively for rehabilitating and building new roads and renovating and constructing new health facilities.

The Eastern Development Corridor, which embraced much of Ekurhuleni, was basing its growth and development on manufacturing, logistics and transport industries.

“Our provincial spend in the Eastern Corridor amounts to R2-billion. Human Settlement has set aside R983.9-million towards the provision of housing units in Chief Albert Luthuli, John Dube Extension 2, Tsakane Extension 22, Germiston South, Leeuwpoort, Rietfontein and Claysville Extension 45 and the redevelopment of hostels in Springs and Tembisa,” Creecy announced.

In the Northern Development Corridor, which was anchored around South Africa's capital city Tshwane, the automotive sector and the knowledge-based economy were seen as the main drivers.

Creecy said R2-billion had been set aside for the corridor, with human settlements again absorbing the lion’s share of R964.2-million, of which over R400-million had been set aside for the Soshanguve and Hammanskraal vicinity.

The balance of the budget had been set aside for education, transport, healthcare and heritage developments.

For the Western Corridor, which was focusing on new blue and green economic initiatives, as well as tourism, agro-processing and logistics, R1.4-billion had been allocated for 2015/16.

“The Department of Human Settlements has allocated R956.3-million in this region. R250-million for planning and design of Syferfontein phases 1 and 2, a development with the potential to deliver over 60 000 units. We will continue construction at Kagiso Extension 13, Chief Mogale, Leratong, Khutsong South Extension 1, 2 and 3, Kokosi and on a bulk water reservoir in Droogenheuvel.  Over R200-million is set aside towards planning and construction of houses in Mohlakeng, Khutsong, Bekkersdal and Krugersdorp,” Creecy announced.

The rest of the allocation would be directed towards health, education, transport and the develoment of so-cllaed ‘agri-parks’ to support the agro-processing sector.

For the Southern Corridor, which is anchored around river tourism and agro-processing, just over R1.5-billion had been set aside for housing, services, new schools, rehabilitation and upgrade of roads, in particular R82 Phase 2 between Walkerville and Vereeniging, and maintenance and rehabilitation of health facilities.

The Department of Human Settlement had set aside R892-million, with R689.9-million to go towards the provision of houses and installation of services in Boikhutsong, Golden Highway, Evaton, Vereeniging, Ratanda and Savanah City. 

The Department of Agriculture would also establish an agri-park linked to township revitalisation near Sebokeng Zone 10 Industrial Area.

The corridor plan was also aligned to the province’s transformation, modernisation and re-industrialisation programme, towards which R7.3-billion had been directed for the coming fiscal year.

Through the initiative, Gauteng aims to invest in economic infrastructure as the key stimulator of growth, while also pursuing infrastrucure partnerships with the private sector.

GAME CHANGERS

Creecy said that the Gauteng Infrastructure Financing Agency (GIFA) would be the province’s key vehicle for sourcing alternative funding for strategic investments and that, in the coming financial year, GIFA would engage with the private sector and development funding agencies on some “game changer projects”.

A request for proposals for a roof-top solar panel project had already been issued and a tender would follow for Gauteng’s tri-generation projects.

Creecy also unveiled several other projects that would be pursued in partnership with the private sector, including:
• A Sedibeng/West Rand waste-to-energy project and City of Johannesburg waste technology project.
• freight and logistics hubs targeting the Vaal, West Rand and Rosslyn areas.
• The Gauteng ICT Smart City project near Soweto.
• The Jewellery Manufacturing Precinct in Ekurhuleni.
• And the Kopanong Precinct and Gauteng Planning House.

“The Premier [David Makhura] announced the establishment of the Gauteng Infrastructure Coordination Commission which will be responsible for the coordination of infrastructure development and investment programmes across the City Region.”