Methodology pertinent to economic growth

16th July 2021

By: Nadine Ramdass

Creamer Media Writer

     

Font size: - +

The Sustainable Infrastructure Development System (SIDS) project methodology is important for development in South Africa because the country cannot afford to fund projects that do not have a good return, particularly from an economic and/or a social perspective, says Consulting Engineers South Africa CEO Chris Campbell.

The SIDS methodology was introduced in June last year to identify projects that contribute to sustainable infrastructure development and have bankability.

The methodology also aims to ensure that projects have a positive economic and social development impact.

Campbell points out that it is important to subject projects to a life cycle evaluation process that evaluates various facets of a project to determine if it is a worthy investment, rather than develop a project that does not contribute to the economy or benefit the public.

To assist in identifying projects that meet the sustainability criteria according to the SIDS methodology, the Department of Public Works and Infrastructure has established an Infrastructure South Africa unit, led by Dr Kgosientso Ramokgopa.

“The unit’s workstreams are intended to manage the processing of projects. It puts the projects through a multilevel filtering process to determine whether they are at a point where funding can be made available for further development, culminating in construction and operations.”

The project lifecycle starts with the project concept, then progresses to the prefeasibility stage, the feasibility stage and, provided that enough optioneering has been done, the bankability stage.

The prefeasibility stage involves assessing the viability of the various project solutions at a high level and whether there are immediate identifiable potential fatal flaws that would render such options not worth further consideration.

Campbell notes that there have been many projects in South Africa that have not been as successful as they were promised to be because they were not subjected to all the stages.

The projects were not evaluated on their applicability or relevance in the South African context. This involved a lot of funding essentially being wasted on projects that did not have a good return because it was not suitable for South Africa and its specifications, he adds.

At the bankability stage, developers should be confident in determining the cost benefits of a project. If the project is part of economic infrastructure, the cost benefit needs to be determined. Additionally, a level of confidence is required with regard to the budget and the timeframe for the final delivery.

Once a project has been deemed bankable, it progresses to the preliminary design stage, the final design stage and then the implementation stage.

The SIDS methodology prioritises the evaluation of projects to ensure that they are subjected to all the required stages and can deliver positive growth.

While it is still early to determine the effectiveness of the methodology and its impact on infrastructure development, Campbell says if the methodology is used correctly, and according to what it has been mandated to do, it can have a positive impact on infrastructure development and growth.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION