Infrastructure SA launches book of projects worth R158bn
Infrastructure SA launched on Tuesday the first construction book setting out the 153 infrastructure projects valued at R158.54bn that the government and state-owned enterprises will procure in the 2024/25 fiscal year on Wednesday.
The launch took place at the Sustainable Infrastructure Development Symposium SA in Cape Town and brought together government and private sector representatives involved in infrastructure development.
President Cyril Ramaphosa and public works and infrastructure minister Sihle Zikalala addressed the symposium. The president stressed the need for proper project preparation from a technical, financial and community engagement angle.
He said the state was working on reforms to facilitate the building of sustainable infrastructure, including an amendment to the Division of Revenue Act to enable provincial governments to use their budgets and infrastructure grants to crowd in the private sector to participate in infrastructure projects.
Proposed regulations to amend public-private partnerships had also been published, with the aim of mobilising public and private resources for infrastructure projects.
Focus had also been given to unblocking the granting of permits, licences and exemptions to overcome delays. These reforms, the president said, were beginning to bear fruit and were encouraging investments.
Ramaphosa said the steady growth in blended finance projects — which include government and private sector funding — demonstrated the confidence of the private sector and the value of SA as an investment destination, despite what the doomsayers said.
Eleven projects worth R45bn were expected to reach financial close this financial year, Ramaphosa said, noting that achieving financial close had proved a challenge in the past.
The projects in the construction book are concentrated in the network sectors, including transport, electricity, water and port logistics. It provides the construction sector with a view of the projects in the pipeline to assist with planning. They will provide hundreds of thousands of jobs and provide a boost to the construction industry, which has been in decline.
“The projects showcased in this publication would create much-needed job opportunities while stimulating SA’s construction sector and the broader economy. In future, additional sectors will be included in the book,” the foreword said.
“The book provides the project name, description and the potential procurement date for each project, highlighting the potential quarter the project may go to market. There are currently 153 projects included with a total capital expenditure of R158.54bn across the network sectors.
“The potential impact of these projects is significant, with several beneficial effects once these projects are in construction, which include job opportunities and the additional benefit of improving income levels.”
The construction book includes 18 energy projects with a cost value of R38.32bn and a potential of 144,045 jobs created; three water projects with a cost value of R32bn and job creation potential of 120,667 jobs; 123 road projects with a value of R60.4bn; three rail projects with a value of R10bn; three port projects valued at R9.8bn; and four airport projects valued at R7.8bn. The total value of projects in the transport sector is R88bn with a job creation potential of 596,101.
Also announced were the top 12 infrastructure priorities for project preparation in the 2024/25 fiscal year.
These included a liquefied natural gas import terminal (R2.1bn); the Durban Container Terminal (R38bn); refurbishment of health facilities (R16bn); schools projects (R8.5bn); the Eskom Mossel Bay gas project (R30bn); the Eskom Tubatse pumped hydro (R35.8bn); the Rooiwal wastewater treatment plant (R35.8bn); and the Nkomazi Special Economic Zone (R8.4bn).