Dr Kgosientsho Ramokgopa, head of the Infrastructure Investment Office in the Presidency, has announced 51 Infrastructure projects that should be ready for commencement within three months.
“Infrastructure is now for the first-time part of a department as we are attempting to deal with the fragmentation in infrastructure delivery once and for all,” Ramokgopa recently told the media. “I have always believed that government must lead in infrastructure-led investment and economic growth that can lead to the crowding in effect from the private sector.”
Given the severity of the Covid lockdown and an estimated loss of 3 million jobs in South Africa, government is pulling out all the stops to revive economic activity.
This is also an opportunity for accountants to assist in the management of these funds.
It is estimated that R340 billion will be needed to develop the projects, while funding will be sourced from a combination of private and public sector sources.
The biggest alloication of funding will go to affordable housing (R139 billion), and water and sanitation more than R100 billion).
More than R100 billion is earmarked for water and sanitation, with 11 projects aimed at alleviating critical water shortages in key parts of the country, and creating 25,000 jobs.
In the Transport sector, a total of 15 projects to the value of R47 billion have been gazetted. The potential for direct job creation in this sector is estimated at 50,000.
In the Human Settlement sector, projects worth R138 billion have been gazetted, expected to create up to 190,000 direct jobs.
According to a statement released from the Office of the Presidency, the digital sector has a single project gazetted worth R4 billion with the potential to create an estimated 700 direct jobs. The space infrastructure Hub for National Development will allow for the development of satellite infrastructure, satellite-based augmentation systems, and earth observation satellites.
Planned housing projects include:
- Phola Heights – Tembisa Social Housing Project: Gauteng
- Sondela Phase 2: Gauteng
- Willow Creek Estate: Mpumalanga
- Joe’s Place Social Housing: Gauteng
- Jeppestown Social Housing Project (Unity House): Gauteng
Water and sanitation
Here are some of the water and sanitation projects:
- Vaal River System including Phase 2 of the Lesotho Highlands Water Project: Gauteng
- Phase 2A of the Mokolo Crocodile River (West) Augmentation Project: Limpopo (water will also be used as a second source for the Medupi and Matimba Power Stations)
- Mzimvubu Water Project: Eastern Cape
- Rehabilitation of the Vaalharts-Taung Irrigation Scheme: Northern Cape & North West
- Groot Letaba River Water Development Project – Nwamitwa Dam: Limpopo
Roughly R50 billion has been earmarked for projects in both energy and transport, likely to create close to 60,000 jobs.
Some of the key transport routes and projects to be developed include:
- N1 Ventersburg to Kroonstad: Free State
- N2 Mtunzini Toll Plaza to Empangeni T-Junction: KwaZulu-Natal
- N3 Cato Ridge to Dardanelles: KwaZulu-Natal
- N3 Dardenelles to Lynnfield Park: KwaZulu-Natal
- N3 Mariannhill Toll Plaza to Key Ridge: KwaZulu-Natal
- N2 EB Cloete Interchange: KwaZulu-Natal
- Small Harbours Development: National
Three projects from the Energy sector have been gazetted, with a total investment value of R58 billion creating an estimated 6,000 direct jobs.
Included in this is an emergency power programme involving the development, installation, and operation of a total aggregate of up to 2 000 Megawatts new generation capacity in South Africa from independent power producers (“IPP”) projects.
A full list of the projects can be viewed here.