Public sector challenges halt private sector involvement in infrastructure ambitions
A lack of public sector capacity, poor procurement and project implementation, as well as corruption were the main impediments for the roll-out of the public sector’s infrastructure programme, said Consulting Engineers South Africa CEO Graham Pirie.
He commented in a statement on Tuesday that the private sector traditionally “followed” the public sector’s investment in infrastructure.
However, the sluggish economic climate resulted in the sluggish roll-out of infrastructure by the public sector.
“The private sector requires an environment of economic and policy certainty to work efficiently,” he stressed.
Despite the signs of some delivery manifesting, it was at a “very slow rate”, owing to the long lead-times of mega projects.
As projects slowly moved towards the feasibility stages, industry confidence was expected to be restored, after expectations during 2012 failed to materialise and depressed overall confidence for 2013.
Conditions in the final six months of 2012 were more difficult than expected, knocking overall confidence in the industry down 14%, from an index level of 81.8 in the first six months of 2012, to 70 in the last six months – the lowest level since the second half of 2003.
“Due to low industry capacity use, the skills shortage has all but disappeared and the majority of firms now have under-utilised engineering skills capacity,” he said, adding that turmoil in the labour market had also impacted industry confidence.
“Expectations are for conditions to improve in the next 12 months, but more so in the second half of 2013 when confidence levels in respect of working conditions are expected to be restored to a level of 82.1,” he concluded.
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