Gauteng government announces R37bn infrastructure budget

9th March 2022 By: Tasneem Bulbulia - Creamer Media Reporter

Gauteng Finance and e-Government MEC Nomantu Nkomo-Ralehoko has announced that R36.8-billion will be allocated to infrastructure in the province over the next three years.

She said this money would be used to build and maintain public infrastructure, with the aim to also create job opportunities.

Nkomo-Ralehoko was presenting the 2022/23 Gauteng provincial budget to the legislature on March 9.

She emphasised that the construction industry could play a key role in the South African and Gauteng economies in terms of providing and or maintaining infrastructure that is pivotal to the country’s development.

Nkomo-Ralehoko noted that R12.2-billion had been allocated for the 2022/23 financial year, R12.3-billion for the 2023/24 financial year and R12.3-billion for the 2024/25 financial year.

Projects that will be funded as part of the infrastructure programme over the 2022 Medium-Term Expenditure Framework (MTEF) include roads and transport, with several upgrades planned in the province, as well as the construction of two new roads.

Moreover, in health, there are refurbishments planned for the Dr Yusuf Dadoo, Edenvale, Jubilee, Kopanong, Leratong and Chris Hani Baragwanath Academic hospitals.

In terms of human settlements, the construction of housing units is planned, as is the servicing of stands. The Gauteng Department of Human Settlements has also received an additional R177-million of the 2022 MTEF for the eradication of the backlog in registration of pre-1994 and post-1994 title deeds.

For education, new schools will be built, including Rustervaal Secondary School, Braamfischerville Primary School, Dr WK du Plessis Skool for Leaners with Special Education Needs and EW Hobbs Primary School.

Nkomo-Ralehoko also highlighted that the procurement process for Kopanong Precinct was at the final phase for appointing preferred bidders.

Moreover, she said the Gauteng Infrastructure Financing Agency would identify and prepare relevant infrastructure projects within the Gauteng special economic zones that require funding from the private sector.

Nkomo-Ralehoko mentioned other key projects funded in the infrastructure allocation as including the maintenance of existing health facilities and the Occupational Health and Safety and refurbishment programme.

Nkomo-Ralehoko called on departments to improve efficiencies in managing infrastructure projects, to avoid cost overruns and wastage of public funds.

She also pointed out that underspending remained a challenge.

To address issues of underspending on infrastructure, Nkomo-Ralehoko said the provincial government had introduced the concept of starting with the preparation of a business case as a minimum requirement for infrastructure projects that are funded from the province's equitable share.

This would ensure that key strategic planning issues, cost estimates, risks and related matters were given adequate considerations before allocating funding to a project, she said.