R865.4b to be spent on public sector infrastructure
Government and state-owned companies (SOCs) are set to spend R865.4 billion on public sector infrastructure in housing, roads, rail, public transport, water,
electricity and community infrastructure, over the next three years.
According to the budget, public-sector infrastructure spending remains a cornerstone of government’s commitment to building a more agile, competitive economy.
Tabling the budget in Parliament, Minister Gordhan said investment in energy will amount to R70 billion in 2016 and over R180 billion over the next three years, as construction of the Medupi, Ingula and Kusile power plants is completed.
In addition, there is R3.7 billion set aside to upgrade the Moloto Road, R30 billion for provincial roads maintenance, R18 billion for bus rapid transit projects in cities and the refurbishment of over 1700 Metrorail and Shosholoza Meyl coaches.
Minister Gordhan added that R62 billion is allocated for the housing subsidy programmes of the Department of Human Settlements and R34 billion for bulk infrastructure and residential services in metropolitan municipalities.
The Department of Water and Sanitation’s work on the next phase of the Olifants River water scheme is in progress, completion of the supply to Lukhanji Municipality in the Eastern Cape, completion of the Wolmaransstad wastewater treatment works and construction of the Polihali Dam as part of the Lesotho Highlands project, is also in progress.
Minister Gordhan said the Industrial Development Corporation continues to play a leading role in financing manufacturing and beneficiation.
It plans to invest R100 billion over the next five years, including R23 billion set aside to support black industrialists.
The Minister announced that the New Development Bank will open its Africa Regional Centre in Johannesburg, in March.
South Africa’s first instalment of R2 billion was paid last December, and the Budget makes provision for further commitments over the medium term.
Government has a range of targeted incentives to support industrialisation.