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State spends trillions on infrastructure

Jul 04 2013 15:32
Johannesburg - The Economic Development Minister Ebrahim Patel, says the Zuma administration is “on course” to break the R1 trillion spending barrier before the end of its administration.

Patel was referring to a meeting of the Presidential Infrastructure Co-ordinating Commission and went on to say: "Infrastructure is the kind of thing that if you don't plan now for the next 30 years, and each year you are simply trying to catch up, then you will not be capable of launching your major programmes," he said.

"This is an attempt to break beyond one electoral cycle and plant the seeds of long-term growth and prosperity.

"By the end of March next year, over the five-year period, the administration would have managed projects across the three spheres of government where spending... would be in the order of a R1 trillion," Patel said.

"That is double the amount of money that was spent in the previous five years."

He said under-spending in municipalities had also been discussed, as had the lag in implementation on that level of government for the first part of the financial year.

"We've been asked us to put together a piece of work to change the model so that we have more effective implementation," Patel said.

"This means looking at multi-year capital budgets."

He said innovative and "alternative" building technologies were being considered.

This entailed using new building materials which would reduce the cost of building for social infrastructure, like schools.

He said the recent findings of the Competition Commission on collusion in the construction industry were also discussed.


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ebrahim patel  |  johannesburg  |  infrastructure


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