PPC CEO Ketso Gordhan has reiterated his call for the creation of a negotiation body to add momentum to the execution of South Africa’s multibillion-rand infrastructure programme.

Gordhan, who leads South Africa’s largest cement producer, first canvassed that idea in May, when the group released its interim results.

However, speaking at a recent International Project Finance Association event, he went further in calling for the creation of a body with characteristics similar to those adopted at the Convention for a Democratic South Africa (Codesa) political negotiations, which facilitated South Africa’s transition from apartheid to democracy about 20 years ago.

He said generic accords, a number of which had been signed under the aegis of government’s New Growth Path, were insufficient to deal with the prevailing constraints. Instead, a structure with implementable plans, clear responsibilities and deadlines should be developed.

This ‘infrastructure Codesa’ plea came amid an atmosphere of mistrust between government and the construction industry, owing to the unearthing of widespread construction sector bid rigging relating to projects concluded since 2006, including projects associated with the 2010 FIFA World Cup.

Following a fast-track process, the Competition Commission reached settlements in late June with 15 construction firms for collusive tendering. These companies agreed to penalties collectively totalling R1.46-billion, while three other firms rejected the settlement terms.

Nevertheless, Gordhan argued that many of the current problems confronting the infrastructure programme could be overcome “by getting the national government and private sector together in one room”.

It is not apparent how the proposed structure would relate to the Presidential Infrastructure Coordinating Commission (PICC), established by President Jacob Zuma in September 2011.

Through the PICC, government is keen to accelerate a range of economic and social infrastructure programmes, having outlined 18 strategic infrastructure projects, or Sips.

The initiatives are being undertaken as South Africa’s main response to the economic crisis and many of the projects are being pursued to deal with the country’s prevailing power and transport bottlenecks, which are viewed as key constraints to growth.

Barclays affiliates Absa Capital estimate that government and its State-owned companies are poised to spend R1.1-trillion on infrastructure programmes over the coming three years, with a target of R3.6-trillion over the coming ten years.

Gordhan argues that political will, project leadership and transparent processes will improve the implementation of Sips and also facilitate the development of new public–private partnerships.

“Once you have a clear-cut mechanism for dealing with a project, the chances of success improve immensely,” he argued.