Gauteng Finance and Economic Development MEC, Lebogang Maile, has announced that the province will invest R36.6-billion in infrastructure development over the next three years.
Maile delivered the provincial budget speech at the Gauteng Legislature on Tuesday.
The investment is expected to create 13, 436 jobs on infrastructure projects, while 12 653 jobs will be created on road and infrastructure projects.
Flawed infrastructure spending
Maile acknowledged the challenges previously experienced in infrastructure spending, citing late project approvals, community disruptions, poor contractor performance, and inadequate planning capacity.
The underspending, he said, has left critical projects incomplete, and has worsened unemployment.
“To accelerate infrastructure roll-out and address the persistent delays that have stalled the province’s development, we are fully leveraging the reconfigured budget facility for infrastructure.
“The introduction of multiple bid windows will ensure that priority projects spanning roads, energy, water and urban renewal, are submitted, approved, and implemented without unnecessary bureaucratic delays,” said Maile.
Maile said Gauteng is also considering credit guarantee vehicle. This aims to de-risk projects and unlock private capital without overburdening the public purse.
Sustainable projects
He said focus is being shifted to infrastructure projects that are both sustainable. Ones that directly increase the revenue stream of GPG and contribute to economic growth and development.
This was motivated by research findings conducted on infrastructure projects. I showed that not all infrastructure projects in the province are economically viable.
“Gauteng Provincial Treasury will not shy away from stepping up and taking leadership in addressing the issues. These… are numerous infrastructure challenges that we are faced with. Gauteng Provincial Government departments, entities, implementing agents, contractors and professionals shall be held accountable as the key role players in the infrastructure value chain,” said Maile.
Maile emphasised that Gauteng is also tightening oversight. This to ensure better planning, improved delivery, and stronger governance in infrastructure projects.
He said key role players in the infrastructure value chain will be held accountable in challenges experienced.
Reducing waste
New infrastructure performance and cost guidelines will be implemented. This with the aim of improving efficiency and reducing waste.
“We have introduced measures to control the debt being incurred. This in terms of financial commitments entered into for infrastructure projects.
“Just like any individual, our provincial government can only spend within the available financial means,” said Maile.
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