President Cyril Ramaphosa delivered his state of the nation address on Thursday 10 February. With a focus on infrastructure development, we are looking for guidance as to where the country is heading in terms of infrastructure rollout programmes promised over the years. As expected Ramaphosa again reiterated the importance of infrastructure being central to the country’s economic reconstruction and recovery, again stating a “massive rollout of infrastructure throughout the country”, his exact words in the SONA 2021, which has unfortunately so far failed to materialise.
He further stated that infrastructure projects were prioritised to support economic growth in energy, roads and water management. The R100bn Infrastructure Fund, at the centre of these efforts, is working with state owned enterprises to prepare a pipeline of projects with an investment value of approximately R96bn in student accommodation, social housing, telecommunications, water and sanitation and transport. Catalytic projects worth R21bn are (apparently) expected to start construction this year, of which government contributed just over 12 percent, or R2.6bn. The balance will come from the private sector and developmental financial institutions. Ramaphosa further stated that government will make an initial investment of R1.8bn in bulk infrastructure which is hoped will unlock seven private sector projects worth R133bn. The Welisizwe Rural Bridges Programme (of which the SA National Defence Force is the implementing agency) will get more attention this year, to increase delivery of bridges to 95 a year from the current 14. The use of block paving in road construction may become more frequent as this method is found to be build durable roads faster and more cost-effectively. The rural roads programme (using labour intensive methods) will upgrade 685 kilometres of rural roads over the next 3 years. The need for private sector investment in critical infrastructure is, as expected, on the forefront of Ramaphosa’s action plan. Transnet will shortly be asking for proposals from private partners for the Durban and Nqgura Container Terminals with the aim to have partnerships in place by October 2022.
In terms of water infrastructure, government has initiated the process of delivery with regards to the uMzimvubu Water Project made of the Ntabelanga Dam and Lalini Dam, irrigation infrastructure and hydro-electric plant, Ntabelanga water treatment works and bulk distribution infrastructure to reticulate neighbouring communities. The preferred bidder for the first stage of this two-stage procurement process is expected to be announced in September.
To enhance delivery of school infrastructure, government is introducing an “innovative” social infrastructure delivery mechanism that will introduce a Special Purpose Vehicle, to address issues associated with delivery of school infrastructure. This mechanism however will also rely on DFI’s and the private sector to deliver school education infrastructure. This is currently being tested in schools in Northern Cape and Eastern Cape.
The highly debated and controversial Expropriation Bill is expected to be approved during 2022, after failing to pass through Parliament in 2021. The department of Public Works and Infrastructure will finalise the transfer of 14,000 hectares of state land to the Housing Development Agency.
The South African construction sector has been battered by the so-called Construction Mafia that has caused damage to infrastructure projects, and intimidated workers. According to Ramaphosa, government has established specialised mutli-disciplinary units to address economic sabotage, extortion at construction sites and vandalism of infrastructure. Vandalism of critical infrastructure has been an ongoing plague, costing the taxpayer billions of rands and delaying further infrastructure development. Measures include the recruitment and training of additional police personnel, 12 000, to increase police capacity and the re-establishment of community policy forums.
Not much was further elaborated on the R340bn infrastructure investment project pipeline announced in the 2021 SONA, where it was said construction has started and progress is being made. Through 2021 we have seen little to no evidence of these projects, with construction turnover continuing to decline and confidence levels amongst building and civil contractors remaining at an all-time low. Nothing was mentioned about the Lanseria Smart City for which the masterplan was completed in November 2020. Promises in 2021 of a “revival of the construction industry”, was left empty. Where are the 300 000 student beds that were part of an approved project pipeline announced in 2021? What progress was made to strengthen and support municipalities to address inadequate and inconsistent service delivery, which was said would include the appointment of properly qualified officials at local level? And so the list goes on.
We have learnt through hard experience over the years to not give much attention to the SONA, as it is all too often filled with empty promises, simply spoken in the hope to encourage a nation, but in the end leads to great disappointment and a loss of trust.
