(AsgiSA) Annual Report 2008 - South African Government Information

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Accelerated and Shared Growth Initiative for South Africa ANNUAL REPORT 2008 Phase Two of the EPWP lends support to the DBSA (2008) Infrastructure Barometer analysis which, in modelling the macroeconomic impact of national infrastructure expenditure, concluded that: a) infrastructure was important for growth and poverty b) the quantum of financial resources allocated to infrastructure was not proportional to its benefits for growth and poverty c) poverty was impacted on more significantly by increasing the employment levels associated with such infrastructure delivery. 5.3 2009/10 Accelerated and Shared Growth Initiative for South Africa infrastructure priorities 2009/10 infrastructure priorities should centre around four thematic areas: planning and co-ordination, improving operational efficiencies of existing infrastructure, ensuring infrastructure projects are completed on time and within budget and leveraging infrastructure investment to maximise backward economic linkages and the employment potential of the projects. 5.3.1 Infrastructure planning and co-ordination In 2007, Cabinet tasked the Economic Cluster to consult entities across government and to extract an integrated infrastructure plan (IIP) and investment framework. The departments of transport and of water affairs and forestry were tasked with this and, over the past 18 months, came to the following conclusions: • institutional structures to support integrated planning do not yet exist • communication and information sharing in its broadest sense has been found to be the single biggest impediment to government achieving integration in planning • the lack of spatial platforms and data-sets to complement sector plans has proven to be a continuing shortcoming in the execution of the integrated planning process • concerns regarding the commercial sensitivity of infrastructure plans, particularly for stateowned enterprises (SOEs) has led to difficulties in sourcing vital information for the IIP. 58
Accelerated and Shared Growth Initiative for South Africa ANNUAL REPORT 2008 Although there has been steady improvement in the systems by which infrastructure provision and operation is monitored, the absence of an appropriately located planning capability in government has constrained more effective integration of infrastructure provision. In this regard, The Presidency-led Programme of Action initiative on planning function options for government could provide a solution to this impediment. The review of constitutional powers and functions that is being conducted by government (DPLG process) will have a significant impact on infrastructure delivery. As outlined above (particularly in the areas of electricity distribution, water and housing), the capacity and willingness of the respective constitutionally designated authorities to allocate adequate resources to deliver the respective infrastructure service is often a constraint to accelerated infrastructure delivery. National Treasury’s recent and pragmatic adoption of a differentiated approach towards the provision of grants to municipalities, which exhibit different capabilities and capacities, may point to the need for more flexibility and pragmatism in dealing with infrastructure backlogs and challenges. Depending on the outcome of the DPLG’s review of the role of provinces, the different tiers of government may unite to defend what they regard as their constitutional rights – but with regard to infrastructure, it is clear that the rationale on which 1994’s constitutional decisions were taken, were done on a basis that does not reflect the realities and challenges of policy implementation in 2009. 5.3.2 Improving operational efficiencies The problems of maintenance and professional and efficient operation and maintenance of existing infrastructure have been alluded to across the spectrum of infrastructure. Such inefficiencies are not only confined to social infrastructure at local government level but extend to some of the country’s largest SOEs. Indeed, improvement in SOE infrastructure efficiencies are core components of the key performance measures listed in the shareholder compacts and should be given greater prominence. 59
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(AsgiSA) Annual Report 2008 - South African Government Information

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