SA National Infrastructure Plan
OFFICE OF THE ACCOUNTANT-GENERAL
Presenter: Jonas Shai
| Director, National Treasury
| August 2014
Agenda
• Background
• Global Risks
• Strategic Infrastructure Projects
• Risks
• Opportunities
• Conclusion
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“IT IS CLEAR THAT WE NEED TO CHANGE GEAR. ALL SOUTH
AFRICANS NEED TO WORK TOGETHER IN A CONCERTED EFFORT
TO IMPROVE SERVICE DELIVERY, BOLSTER JOB CREATION AND
EXPEDITE ECONOMIC TRANSFORMATION.”
» President J. Zuma
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Background
• NDP and New Growth Path
• PICC >>>National Infrastructure Plan
– Poor Coordination
– Weak Integration
– Plans that go beyond 5 year terms
• 645 projects
• 18 Strategic Integrated Plans (SIP’s)
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Global Risk 2014
• Financial Crises in Key Economies
• Structurally High Unemployment
• Water Crises
• Severe Income Disparity
• Greater incidents of Extreme Weather Events
• Global Governance Failure
• Food Crises
• Failure of Major Financial Mechanisms/Institutions
• Profound Political and Social Instability
Source: World Economic Forum
Global Risks Perception Survey
2013-2014
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Strategic Integrated Projects
• 5 Geographically-focused SIPs
• 3 Spatial SIPs
• 3 Energy SIPs
• 3 Social Infrastructure SIPs
• 2 Knowledge SIPs
• 1 Regional Integration SIP
• 1 Water and Sanitation SIP
Source: A Summary of the South African
National Infrastructure Plan
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The 18 Strategic Infrastructure Projects
• SIP 1: Unlocking the northern mineral belt with Primary Mineral Reserves
Waterberg as the catalyst
• SIP 2: Durban-Free State-Gauteng logistics and
industrial corridor
• SIP 3: South-Eastern node & corridor development
• SIP 4: Unlocking the economic opportunities in
North West Province
• SIP 5: Saldanha-Northern Cape development
corridor
• SIP 6: Integrated municipal infrastructure project
• SIP 7: Integrated urban space and public
transport programme
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The 18 Strategic Infrastructure Projects - Contd
• SIP 8: Green energy in support of the South
African economy
• SIP 9: Electricity generation to support socioeconomic
development
• SIP 10: Electricity transmission and distribution
for all
• SIP 11: Agri-logistics and rural infrastructure
• SIP 12: Revitalisation of public hospitals and
other health facilities
• SIP 13: National school build programme
• SIP 14: Higher education infrastructure
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The 18 Strategic Infrastructure Projects - Contd
• SIP 15: Expanding access to communication
technology
• SIP 16: SKA & Meerkat
• SIP 17: Regional integration for African cooperation and development
• SIP 18: Water and sanitation infrastructure
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Project Management Place Mat
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Inherent Risks and the CRO
• Poor planning: Well-defined specifications and project scope
• Poor quality of execution
• Poor project controls (schedule, cost, quality, safety, health and
environment)
• Fraud and corruption
• Scope Creep
Problem of Induction
• Poor management of industrial relations
• Late authorizations and approvals
• Key dependencies
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Inherent Risks and the CRO
• Assumptions made are significantly misstated
• Ambiguous communication
• http://management.simplicable.com/management/new/130-project-risks
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Opportunities
• Reporting efficiencies: Risk Monitoring activities
• Predictive nature: Emerging risks to projects e.g. overruns
• Insurance :2011-2014
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Conclusion
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Questions and Answers
Technical Consultations
Jeets Hargovan
GTAC
Jeets.hargovan@treasury.gov.za
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