The Infrastructure South Africa (ISA) is currently preparing and packaging 34 projects with an estimated capital value of R259-billion, according to ISA Acting Head, Mameetse Masemola, with these projects “hopefully coming to market” over the next 12 to 18 months.
During the yearly Sustainable Infrastructure Development Symposium South Africa (SIDSSA) held in Cape Town, Masemola noted that these projects cut across all spheres of government. She said the feasibility studies and related business case studies had been completed on ten of the 34 projects currently being prepared, with some of these also unlocking additional fiscal support from the National Treasury.
These ten projects are valued at R93-billion and include the expansion of the Tygerberg Hospital in Cape Town, the rollout of the Dr Kenneth Kaunda District Water and Sanitation Programme in the JB Marks local municipality and the implementation of Project uKuvusela with Transnet, valued at R9.4 billion.
Project uKuvusela aimed to create a high-capacity, cost-effective rail link between the Gqeberha port and Gauteng for the transport of cars and related automotive goods. The Eastern Cape and Gauteng are two of the country’s main vehicle assembly nodes, with an improved railway link line to especially benefit high-volume manufacturers such as Ford, in Pretoria and Volkswagen, in Kariega.
“On the whole, ISA’s main goal was to select strategic infrastructure projects and prepare and package these projects so that they were “viable and bankable” undertakings”, explained Masemola. The State agency currently oversees a total 305 projects on an ongoing basis, with most of these in the energy (171 projects), water and sanitation (54) and transport (32) sectors.
All ISA projects must be valued at R1 billion and above and must be able to leverage private-sector involvement, blended finance or be commercially viable on their own.“Our work includes ensuring that projects are assisted with the multiple authorisations, permits and licences, et cetera, that are required across government. We know, for example, that one renewable-energy project requires almost 85 types of permits, licences and authorisations, whether it is from the Civil Aviation Authority, the South African National Defence Force and the Department of Public Works and Infrastructure,” added Masemola.
Furthermore, Masemola noted that projects to the value of R13.52-billion were completed last year, while projects valued at R51.9-billion were currently under construction. She also provided an update on the 12 priority infrastructure projects announced during SIDSSA 2024, valued at an estimated R180-billion. In addition, she said seven of the 12 projects had been contracted already, with private-sector participation and that they were in various stages of completion.
The 12 projects include the Rooiwal Wastewater Treatment Works (Phase 2), in Pretoria; the Amatola Water Bulk Supply Augmentation Project, the Eskom Tubatse Storage Scheme, the Port of Ngqura Liquified Natural Gas project and the development of the Namakwa and Nkomazi special economic zones. “The goal is clear, we must accelerate delivery, stimulate growth and turn South Africa into a construction site,” said Dean Macpherson, Minister of Public Works and Infrastructure.
He further shared that one of the biggest reforms they have made is to prioritise project preparation funding. Through ISA, they are ensuring public-sector projects no longer fail at the first hurdle due to weak planning, poor structuring or lack of compliance.
“Over R600-million is now being committed to prepare strategic infrastructure projects. That means real funding for feasibility studies, regulatory compliance, bankable designs and community consultations are now taking place at pace and with a hands-on approach. Projects are now moving from planning to procurement and from procurement to breaking ground,” concluded Macpherson.