MAJOR infrastructure development projects worth trillions of rands are at risk of being stalled by government entities and municipalities that fail to spend the allocated budget.
Finance Minister Pravin Gordhan revealed in his budget speech yesterday that only 68% of money intended for large infrastructure projects had been spent in the last financial year. This amounts to R178-billion of the allocated R260-billion.
Municipalities especially have battled to attract managers with the right skills as well as the requisite technical experts to run the projects.
"Government departments and municipalities that do not spend, underspend or mis-spend their allocated funding, will be at risk of losing the allocations. The relevant officials will also be held liable for such misdemeanours," he said.
Government is undertaking an ambitious R3.2-trillion infrastructure development programme to expand the country's electricity, transport, water and telecommunications networks.
The presidential infrastructure coordinating commission has identified key projects that require long-term investment. These include more than R300-billion for Transnet to improve rail connectivity between Mpumalanga and Limpopo.
About R824-billion has been set aside over the next three years for major infrastructure projects.
Several measures have now been put in place by National Treasury to ensure that projects are planned for properly, money is spent and projects are completed on time.
Specialists are being brought in from the private sector and from the Development Bank of Southern Africa to take over the running of projects.
The Municipal Infrastructure Support Agency is to be established by the Department of Cooperative Governance and Traditional Affairs to assist rural municipalities that lack capacity.
About 150 graduate interns specialising in spatial planning and those with engineering qualifications are being seconded to 43 municipalities to assist.
A number of notable projects are also at their beginning phase. These include R4-billion allocated to the Passenger Rail Agency of South Africa over the next three years to renew its fleet and to upgrade train stations nationwide.
An amount of R75-billion has been set aside to upgrading water infrastructure and augment water supply for industrial and domestic users.
Transnet has just completed phase one of a R23-billion pipeline to carry liquid fuels between Johannesburg and Durban.
"We will find money. There is money in the system.
"Over the next three years government as a whole has a total resource of over R4-trillion and it's within and around that resource package that we will find ways to fund the infrastructure projects," said Gordhan.
Projects at risk of being stalled
MAJOR infrastructure development projects worth trillions of rands are at risk of being stalled by government entities and municipalities that fail to spend the allocated budget.
Finance Minister Pravin Gordhan revealed in his budget speech yesterday that only 68% of money intended for large infrastructure projects had been spent in the last financial year. This amounts to R178-billion of the allocated R260-billion.
Municipalities especially have battled to attract managers with the right skills as well as the requisite technical experts to run the projects.
"Government departments and municipalities that do not spend, underspend or mis-spend their allocated funding, will be at risk of losing the allocations. The relevant officials will also be held liable for such misdemeanours," he said.
Government is undertaking an ambitious R3.2-trillion infrastructure development programme to expand the country's electricity, transport, water and telecommunications networks.
The presidential infrastructure coordinating commission has identified key projects that require long-term investment. These include more than R300-billion for Transnet to improve rail connectivity between Mpumalanga and Limpopo.
About R824-billion has been set aside over the next three years for major infrastructure projects.
Several measures have now been put in place by National Treasury to ensure that projects are planned for properly, money is spent and projects are completed on time.
Specialists are being brought in from the private sector and from the Development Bank of Southern Africa to take over the running of projects.
The Municipal Infrastructure Support Agency is to be established by the Department of Cooperative Governance and Traditional Affairs to assist rural municipalities that lack capacity.
About 150 graduate interns specialising in spatial planning and those with engineering qualifications are being seconded to 43 municipalities to assist.
A number of notable projects are also at their beginning phase. These include R4-billion allocated to the Passenger Rail Agency of South Africa over the next three years to renew its fleet and to upgrade train stations nationwide.
An amount of R75-billion has been set aside to upgrading water infrastructure and augment water supply for industrial and domestic users.
Transnet has just completed phase one of a R23-billion pipeline to carry liquid fuels between Johannesburg and Durban.
"We will find money. There is money in the system.
"Over the next three years government as a whole has a total resource of over R4-trillion and it's within and around that resource package that we will find ways to fund the infrastructure projects," said Gordhan.
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