R250bn set aside for infrastructure

2012-10-25 15:00
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Parliament - Government will spend R250bn over the next three years on infrastructure projects that are "shovel ready", Finance Minister Pravin Gordhan said on Thursday.

In his 2012 medium-term budget policy statement tabled in parliament, he said the projects formed part of a 20-year, R3.2 trillion infrastructure programme announced by President Jacob Zuma earlier this year.

Gordhan said the bulk of the programme would be financed from the balance sheets of state-owned enterprises, either from retained earnings or through the issue of debt.

"The costs of this infrastructure, which supports profitable economic activity, will be recovered by charges levied on users."

Over the next decade, most of the projects would focus on social and community facilities such as schools and hospitals, as well as on secondary roads.

In this instance, the bulk of infrastructure would be provided to citizens without a direct charge or at highly subsidised rates, Gordhan said.

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