INF R A S T RUC T URE
DID YOU KNOW?
The Infrastructure Fund creates an opportunity for more partnerships between government and the private sector through the use of blended finance. To fast-track these projects, government has committed R100-billion to this fund over the next 10 years. It will support projects in the energy, water, transport, ICT and social sectors. Source: National Treasury
BREAKING GROUND
PAVING THE ROAD
TO RECOVERY Just how crucial is infrastructural development to South Africa’s sustained economic recovery? ANÉL LEWIS reports on government’s Sustainable Infrastructure Development System
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De Lille confirms that the projects are at various stages of implementation. “Timelines for the start of construction are dependent on securing funding and financing for the projects from the fiscus or financial markets. These are ongoing and very positive discussions.” Work has started on some of the projects, including Mooikloof, Green Creek, Joe’s Place, and the Sondela Phase Two (45 per cent in construction) human settlement development projects. Construction on the upgrade of the N3 between the Dardanelles interchange and the Lynnfield Park interchange between Cato Ridge and Pietermaritzburg, which will create an estimated 700 job opportunities, is also imminent, she says.
FAST FACT
By the end of June 2020, Patricia de Lille, 276 projects, with an investment Minister of Public SHOW ME THE MONEY value of R2.3-trillion, formed Works and Government’s vaccine part of the Economic Reconstruction Infrastructure, explains roll-out plan, expected and Recovery Plan. The following that the methodology to cost over month, 50 strategic integrated applies specific R20-billion, is projects and 12 special projects, admissions criteria that likely to have little enabling over R340-billion in new focus on the economic, material impact investment, were gazetted. social and strategic on its infrastructure Source: Department of importance of each development targets, as Public Works and Infrastructure project. “Social facilitation financing has been allocated is a key component linked to specifically for these projects, the engagement with surrounding says De Lille. “Government has communities where the project is to be committed to a R791.2-billion infrastructure implemented. This identifies the skills investment drive. We are already partnering and training needed to ensure local with the private sector and other players to roll community members benefit from the out infrastructure through initiatives, such as infrastructure development.” the blended finance through the Infrastructure The DPWI last year opened a skills portal Fund, which was operationalised in where unemployed graduates could register for August 2020.” work opportunities created by the infrastructure Other finance models include blended investment plan projects. “We have to financing, public-private partnerships, and recognise that we do have the skills in our build-operate-transfer (BOT) or build-owncountry, we just need to pull them together to operate-transfer (BOOT) for large-scale achieve our infrastructure development goals.” infrastructure projects. Green bonds are also De Lille says the department is also tapping an option for projects that meet the criteria, into the expertise of the private sector. adds De Lille. “The National Treasury has also provided R440-million for project preparation – a key area we need to get right to ensure that projects are de-risked from the start and implemented on time and within budget,” concludes De Lille. – PATRICIA DE LILLE, MINISTER OF PUBLIC WORKS AND INFRASTRUCTURE
IMAGES: SUPPLIED
OVID-19 has been devastating for many sectors of the economy, but it has also provided an opportunity to deal with challenges already evident before the pandemic. Billed as a “reset for the South African economy”, the national government’s Economic Reconstruction and Recovery Plan, launched in October 2020, aims to “create an environment supportive for sustained and accelerated economic recovery”. As such, infrastructure has been identified as a key driver of investment and growth, and Treasury has set out a pipeline of projects that will create jobs and address spatial inequality. These will also be used to transform social planning by integrating communities and making employment opportunities more accessible. Patricia The Infrastructure and Investment de Lille Office in the Presidency, together with the Department of Public Works and Infrastructure (DPWI), has therefore developed a new method of planning and implementation, known as the Sustainable Infrastructure Development System (SIDS).
“GOVERNMENT HAS COMMITTED TO A R791.2-BILLION INFRASTRUCTURE INVESTMENT DRIVE. WE ARE ALREADY PARTNERING WITH THE PRIVATE SECTOR AND OTHER PLAYERS TO ROLL OUT INFRASTRUCTURE THROUGH INITIATIVES.”
MANUFAC TURING
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