Not all infrastructure projects to be built

Posted On Thursday, 23 February 2012 02:00 Published by eProp Commercial Property News
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Not all of the R3.2-trillion of infrastructure projects under consideration would be built, says the National Treasury in its 2012 Budget Review

Pravin-GordhanReleased during Finance Minister Pravin Gordhan’s Budget Vote Speech, the review said that over the three-year medium term expenditure framework (MTEF) budgeted and approved public sector projects totaled R844.5 billion – an amount similar to that announced in the 2011 Budget Vote Speech.

The establishment of the Presidential Infrastructure Coordinating Commission headed by President Jacob Zuma would give new impetus to the planning and implementation of major capital projects.

National Treasury said that the public sector capital investment stood at 7.4% of GDP in 2010, while investment by private companies amounted to 12.2%.

“The experience of other developing countries shows that capital investment equivalent to around 25% of GDP is generally needed for a substantial rise in per capita income. In recent years, government has sought to accelerate pubic infrastructure investment, while also encouraging greater private sector investment,” the review stated.

According to a table presented in the Budget Review, there were a total of 3,204 “mega-projects” under consideration for the 2012 to 2015 period.

In terms of the table, electricity projects comprised the bulk under consideration at 1,945 of which 72 projects were at concept stage, 268 were undergoing pre-feasibility studies, another 314 were at the feasibility stage, 95 were at the detailed design stage, 103 projects were out to tender and 345 projects were under construction and there were also 101 ongoing electricity programmes.

Transport projects were second in terms of numbers at 583 with 310 projects at the concept stage, 78 at the feasibility stage, 17 were being prepped for financing, 12 were at the detailed design stage, 88 projects were out to tender, another eight were being constructed and there were 71 ongoing projects.

Some of the big spend projects listed in the Budget Review were Eskom’s Kusile power stated with a cost of R121 billion, followed by the Medupi power station at R99 billion and then the Grootvlei power station at R7.8 billion.

 

Last modified on Monday, 28 October 2013 16:25

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