Infrastructure central economic recovery- 11 February 2022

Office of the Premier 2022/02/10 - 22:00



Thembisa Shologu

Through innovative funding and improved technical capabilities, government is prioritising infrastructure projects in energy, roads and water management to support economic growth and better livelihoods.

The Infrastructure Fund is at the centre of this effort, with a R100 billion allocation from the fiscus over 10 years.

"The Infrastructure Fund is now working with state entities to prepare a pipeline of projects with an investment value of approximately R96 billion in student accommodation, social housing, telecommunications, water and sanitation and transport," Presidency Cyril Ramaphosa announced in his State of the Nation Address (SONA, on Thursday evening.

Several catalytic projects valued at R21 billion are expected to start construction this year. 

Of this, R2.6 billion is contributed by government and the balance from the private sector and developmental finance institutions.

Government will make an initial investment of R1.8 billion in bulk infrastructure, which will unlock seven private sector projects to the value of R133 billion. 

"For millions of South Africans in rural areas, roads and bridges provide access to markets, employment opportunities and social services. 

"Yet, many children still have to brave overflowing rivers to reach schools and motorists have to battle impassable roads to reach the next town," said Ramaphosa. 

In this regard, Ramaphosa said plans are in place to upscale the Welisizwe Rural Bridges Programme to deliver 95 bridges a year from the current 14.

The rural roads programme, on the other hand, will use labour-intensive methods to construct or upgrade 685 kilometres of rural roads over the next three years.

This social enterprise programme will include access roads in Limpopo and Eastern Cape, gravel to surface upgrades in the Free State and North West, and capacity and connectivity improvements in the Western Cape.

Water projects

In water, inroads have been made on the delivering of the uMzimvubu Water Project.

The project includes Ntabelanga Dam and Lalini Dam, irrigation infrastructure and hydro-electric plant, Ntabelanga water treatment works and bulk distribution infrastructure to reticulate to neighbouring communities.

The closing date for the first of the two-stage procurement process is scheduled to close later this month, with the preferred bidder likely to be announced in September 2022.

School infrastructure

Government is also introducing a social infrastructure delivery mechanism to improve the delivery of school infrastructure.

According to the President, the mechanism will address the speed, financing and funding, quality of delivery, mass employment and maintenance. This approach is being piloted in schools in the Northern Cape and Eastern Cape.

"The new delivery mechanism will introduce a Special Purpose Vehicle, working with prominent Development Finance Institutions and the private sector, to deliver school education infrastructure."

Rail network

President Ramaphosa said the theft of scrap metal and cable has caused "immense damage" to infrastructure such as trains, electricity and other essential services.

"We will take decisive steps this year both through improved law enforcement and by considering further measures to address the sale or export of such scrap metal," he stated

Work is underway to rehabilitate the passenger rail network in 10 priority corridors.

Thus far, the Southern Line in Cape Town and the Mabopane Line in Pretoria have been re-opened. These will be followed by the remaining lines in the next year.

Load shedding 

While load shedding continues to impact the lives of all South Africans, Ramaphosa announced that several new energy generation projects are on the pipeline.  These include;

  • Over 500 MW from the remaining projects in Bid Window 4 of the renewable energy programme, which are at advanced stages of construction.
  • 2 600 MW from Bid Window 5 of the renewable energy programme, for which the preferred bidders were announced last year,
  • up to 800 MW from those risk mitigation power projects that are ready to proceed,
  • 2 600 MW from Bid Window 6 of the renewable energy programme, which will soon be opened,

Eskom has also established a separate transmission subsidiary and is on track to complete its unbundling by December 2022.

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