Tabling the Department of Public Works and Infrastructure’s budget vote yesterday in a National Assembly (NA) mini-plenary, the Minister Ms Patricia de Lille pointed out that the department has a critical role to play in growing the economy and in the wellbeing of South Africa’s citizens.
The department is processing the final report on the cost of the work to restore Parliament to its former self after the fire that damaged buildings in January. As for rebuilding after the floods in KwaZulu-Natal (KZN) and the Eastern Cape, Ms De Lille said that the department is focussing on 53 damaged government-owned buildings in KZN and 12 in the Eastern Cape.
She noted that the floods have alerted the department to the importance of building and maintaining infrastructure to withstand climate change. The Infrastructure Investment Plan is at the heart of the department’s interventions in this regard, the Minister reported, in which the transport sector has completed five construction projects and four in procurement, while the social housing sector has completed three projects, two are in construction, two are in procurement, while the rest are in the planning stages.
One such project was the Small Harbours Repairs and Maintenance programme, which created 925 jobs and empowered 142 local small, medium and micro enterprises worth over R116 million, of which 73 were level one black economic empowerment companies.
As part of building a capable state, the department awarded 173 bursaries in the past financial year to students to study in the field of the built environment, while 129 internship opportunities were created.
To get the Public Infrastructure Plan going, an additional R1.6 trillion in public sector infrastructure investment is required by 2030, over and above what is forecast for current public sector entities. This will be achieved, by building private sector confidence in the capacity of the state to deliver bankable public infrastructure projects.
Giving a breakdown of her department’s budget vote of R8.5 billion, over R7.4 billion of which is allocated to transfers and subsidies to the department’s entities and the Extended Public Works Programme.
On debt the department owes to municipalities, Ms De Lille confirmed an amount of R502 million, of which R337 million was paid in April. The remaining R165 million is still being processed for payment.
Ms Madeleine Hicklin of the Democratic Alliance commended the Minister’s bold move to place infrastructure at the centre of economic growth but said the government had failed to achieve this.
The Chairperson of the Portfolio Committee on Public Works and Infrastructure, Ms Nolitha Ntobongwana, said the department’s budget will improve people’s lives and stimulate growth. The committee also welcomes the department’s strategic development, which will drive its culture of change. Nonetheless, the department requires people of skill to enhance the impact of its infrastructure mandates, which are critical in resuscitating economic development and inclusive growth.
The committee encourages collaboration between the state and the private sector to provide blended finance for infrastructure projects. The committee also urges the department to enhance its capacity to mitigate risks associated with the awarding contracts to ensure that the state derive value for money from them.
Ms Naledi Chirwa of the Economic Freedom Fighters said the department has descended into chaos over the past years and is holding productive land for no apparent reason. She alleged that the state said in 2019 that it will release over 3 000 land parcels for redistribution, but today most of this land lies fallow and has not been released to black farmers.
Even worse, she said, is the fact that the department still leases private property to government departments, at huge cost, despite the government’s extensive property portfolio. Compounding the error, the department also fails to maintain its property register and allows its properties to fall into ruin, as it has no record of them.
Abel Mputing
25 May 2022
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