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SA has R30bn infrastructure gap

Mar 02 2011 13:24 Sapa

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Johannesburg - South Africa must urgently address its R30bn infrastructure gap, Deputy Minister of Energy Barbara Thompson said on Wednesday.

“The country faces a maintenance and refurbishment backlog, which currently stands at R30bn and which is growing at R2.5bn per annum,” she said.

This needed to be addressed to support growth targets and protect against further infrastructure deterioration.

Electricity generation and distribution infrastructure had come under strain because of rapid economic growth in recent years, but the department would work with the Treasury to find funding solutions, said Thompson.

She said the department would take over the electricity distribution industry restructuring process from April, following the closure of Electricity Distribution Industry Holdings.

South Africa needed to diversify its energy sources for environmental reasons, Thompson said.

This, in conjunction with a review of strategic fuel reserves, would secure the country against “future oil challenges“.
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