The Infrastructure Investment Plan approved by the cabinet in May 2020 is the cornerstone of the ERRP. Infrastructure projects are vital to our economic recovery due to their multiplier effect on restoring growth, creating new jobs and protecting livelihoods.
We are building critical network infrastructure such as ports, roads, bridges and rail that are key to our economy’s competitiveness. The projects within the Infrastructure Investment Plan cover the human settlements, energy, transport, water & sanitation, digital infrastructure, and agriculture & agro-processing sectors.
To expedite our programme we pulled together 62 projects from all three spheres of government, state-owned entities and the private sector. These projects have been gazetted as Strategic Infrastructure Projects (SIPs) in line with the Infrastructure Development Act, to speed up regulatory approval and implementation.
Many of these projects are in the construction phase, such as: the N3 road upgrades in KwaZulu-Natal; the Lufhereng Integrated Mega Housing project in Johannesburg; the Mooikloof and Green Creek mega-housing developments in Tshwane; the raising of the Clanwilliam Dam wall in the Western Cape; bridges in rural areas in KwaZulu-Natal and the Eastern Cape; and small harbour upgrades such as at Hout Bay and Saldanha.
The R20bn investment in the N3 national road upgrade is being implemented by the Department of Transport and SA National Roads Agency in KwaZulu-Natal. Widening a section of the N3 for the construction of the Camperdown interchange in KwaZulu-Natal commenced earlier this year. About R82.5m has already been spent on this project, which has also created 237 jobs so far.
Another N3 project currently under construction is the road upgrade between Dardanelles and Lynnfield Park in KwaZulu-Natal. The investment so far stands at R126m, while 248 people from surrounding areas have been employed on this project, which is progressing on budget and on time.
This arterial is also known as the Durban-Free State-Gauteng Logistics & Industrial Corridor, as the road upgrade project will strengthen the logistics and transport corridor between SA’s main industrial hubs, improve access to Durban’s export and import facilities, and raise efficiency along the corridor.
It also advances our transformation imperatives. To date, 31 subcontractors have been contracted on these two important projects. This brings the objectives of the Infrastructure Investment Plan to life and help revive the struggling construction sector.
Three weeks ago I also visited the Lufhereng mega-housing project being implemented by the Gauteng human settlements department, the City of Johannesburg and its contractors. So far 1,319 units have been completed and 2,093 houses are under construction. This R22bn project is being implemented in 10 phases to develop more than 30,000 households, and is expected to be completed in 2029.
This project includes government subsidised housing, “Gap” housing and social housing, and will go a long way to address the needs of people living in informal settlements in Soweto. It has a far-reaching impact on job creation in the community, having already created 7,244 jobs.
Another key project is the Salvokop Precinct Development in Tshwane. It is being implemented by the department of public works & infrastructure and includes the construction of offices for four government departments, namely correctional services, higher education & training, social development and agencies (Sassa and the National Development Agency) as well as home affairs.
The appointment of a contractor to install bulk and internal services at Salvokop is being finalised, which will facilitate development of Phase 1, constituting 350,000m² of office space. Four public-private partnerships have been registered for this project and are currently in feasibility and budget approval stages with National Treasury.
The Infrastructure Investment Plan also includes various private sector projects such as the Mooikloof and Green Creek housing developments in Tshwane. These integrated projects are well under way, with many of the residential units already completed.
The Mooikloof Mega Residential City is a catalytic project that promotes integration, corridor and transit node densification. This was gazetted as an SIP as it responds to some of the seven National Key Priorities of spatial justice and social transformation.
Unique to this project is the assistance by government for the Gap market, which can access housing opportunities through the Financial Linked Individual Subsidy Programme subsidy. This applies to the affordable or Gap market segment of individuals who earn between R3,501 and R22,000 per month.
The first phase of the project consists of about 14,500 sectional title units, which will increase to 50,000 units, and the development will also lead to the creation of some 41,000 jobs at a time when they are sorely needed.
Another key infrastructure project is the raising of the Clanwilliam Dam wall. I visited this project last week and engaged with department of water & sanitation officials. The Clanwilliam Dam is part of the Olifants-Doorn River Water Resources Project, which has a value of about R4bn. Work on the dam has not yet started, but other support infrastructure works have been completed such as the construction of roads.
The project entails raising the dam wall by 13m, while the feasibility study also found that the dam needs to be strengthened. The raising of the wall will increase the dam’s capacity to 345-million m³ from 125-million m³, providing existing water users a more assured supply and additional water for new irrigation purposes by emerging farmers, and facilitate future growth of domestic and industrial water supply.
There are 68 local labour appointments on the project. The total programme could possibly create more than 10,500 job opportunities directly related to the capital projects.
Other infrastructure projects that are part of our National Infrastructure Investment Plan include 15 transport projects valued at R47bn, 11 water and sanitation projects valued at R106bn and 18 human settlements developments valued at R138bn that will produce more than 190,000 housing units.
There are also two agricultural and agro-processing projects valued at R7bn, three energy projects at R58bn, a digital infrastructure initiative valued at R4bn and 15 transport projects valued at R47bn.
Our infrastructure projects are being prepared and packaged for investors by Infrastructure SA (ISA), which is also carrying out preparation to reduce the risk of projects upfront and eliminate key risks at early as possible. We have also requested more assistance from National Treasury to assist us with project preparation.
We are addressing concerns of corruption and maladministration in infrastructure development through an anti-corruption strategy designed specifically for the sector. It sets out to detect and prevent malfeasance and we are working closely with the Special Investigating Unit and civil society organisations such as Corruption Watch to execute the strategy.
As more projects come on stream and we gather pace on our infrastructure development we are sure to see the benefits to the economy and job creation. The foundation has been set to thrust us forward to a brighter future.
Infrastructure development by the government is an important signal to the market that we are creating a conducive environment for investment and job creation by the private sector. By leading the way with infrastructure investment we are creating the crowding-in effect for the private sector. Together we will revive our economy and build it back up, better.
This article was written for
Business Day by Patricia De Lille - Minister Public Works & Infrastructure.
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