The budget of R12.26-billion, which was allocated this financial year for the Gauteng Provincial Government (GPG) infrastructure programme to provide additional capacity and to improve the condition of the existing stock of infrastructure assets, has been adjusted downwards by R487.8-million to R11.77-billion, Gauteng Finance MEC Jacob Mamabolo revealed during the presentation of Gauteng’s 2022 Medium-Term Budget Policy Statement (MTBPS) on November 24.

The downwards adjustment reflects infrastructure programmes that did not perform as expected, he said, which resulted in the cash flows being aligned with the possible activities that can be completed during the remaining months of the current financial year.

“Our infrastructure delivery programme is still characterised by continuous underexpenditure on both conditional and equitable share funding and lack of multi-year planning, resulting in the province losing significant opportunity gains derived from infrastructure investments,” he said.

To address these challenges and ensure projects are delivered within budget and on time, including in the special economic zones (SEZs), Mamabolo said the Gauteng Provincial Treasury would subject every project contained in the Estimates of Capital Expenditure (ECE) to the Project Readiness Matrix or Project Readiness Lab.

“We are worried about not spending money and having to return money back into the fiscus. Infrastructure remains a key policy priority and modernising the Infrastructure Project Readiness Matrix is more than necessary,” Mamabolo said.

He said this modernisation of the Infrastructure Project Readiness Matrix or Lab would help to ensure the establishment of a rigorous process to assess infrastructure plans and ensure that project lists are submitted to Treasury in a more timely fashion, which would allow sufficient time for credible planning to be carried out.

Moreover, it would address some of the unrealistic timeframes and land issues – such as ownership, appropriateness, zoning and services – which must be resolved before projects can proceed.

“All infrastructure departments will have to finalise designs before projects can be put in the list of infrastructure programme to be implemented,” he said, noting that there would be a move away from lengthy procurement processes so that implementation could begin in earnest.

“Simply put, if departments cannot demonstrate readiness on the implementation of infrastructure, the budget will not be allocated,” Mamabolo said.

He highlighted the development of several SEZs to crowd in significant investment, grow the economy and create jobs. Mamabolo said the GPG would also use its infrastructure spend to improve on the delivery of services to the public and to develop more integrated human settlements.

Mamabolo drew attention to a R4.3-billion investment, which has been secured for the Tshwane Automotive SEZ (TASEZ). He estimated that, once completed, the TASEZ would generate 20 000 jobs, although only 344 permanent jobs and 219 temporary construction jobs have been created so far.

Mamabolo also mentioned that he had personally visited the OR Tambo International Airport SEZ to assess work being done at that project.

“I can therefore confirm that progress is being made on this multi-site development project, focusing on different sectors including, jewellery and diamonds, agroprocessing, pharmaceuticals, advanced manufacturing and capital equipment,” he said.