The Construction Management Foundation has noted the announcement by the Presidency to host inaugural Sustainable Infrastructure Development Symposium of South African on 23 June 2020. This symposium will unveil an infrastructure project pipeline from six priority sectors. In addition to this, the Presidency led by Dr. Kgosientsho Ramokgopa hosted market sounding exercise between 28 and 29 May 2020 in a form of pitching sessions.
The pitching sessions gave major infrastructure project sponsors an audience from national and international funding institutions that included multilateral development banks, development finance institutions, asset managers and commercial banks to present projects that have been identified as potentially bankable and those that require project preparation funding. The Foundation welcomes this move as it reinforces our call for an infrastructure and construction led economic recovery from COVID19. The creation of de-risked and reliable pipeline of bankable projects is exactly what the South African construction needs to boost market confidence and further allow construction firms to invest in skills and capacity to play a role in the delivery of these infrastructure projects.
In the context of a constrained public finances, our view has been that government should make use of public private partnerships to design, finance, build, and operate public infrastructure. This has numerous benefits that could help advance socio-economic transformation in South Africa. The Gautrain project is exemplary of what this approach can achieve. It is therefore encouraging that government has made progress in developing capabilities to prepare, procure, and manage such projects.
The R635m advanced to set up the R100bn Infrastructure Fund managed by the Development Bank of South Africa demonstrates that there has indeed been tangible investments to this regard. We are however concerned by the lack of transparency from the Development Bank of South Africa on the progress is has made since this initiative was announced in the 2018 Budget Speech.
Issued by the Construction Management Foundation NPC
For more information, contact Mr Ronnie Siphika, Chief Executive Officer on 079 135 9884 via email address on Ronnie.Siphika@cmfounation.org.za