Gross fixed-capital formation by the public sector expanded at a yearly rate of 11% during the first nine months of 2012 and this Project in Progress update reflects most of the key infrastructure programmes being undertaken.
While the project economy is still some way off from being strong, R827-billion has been earmarked over the next three years for spending by government departments and State-owned companies on a range of capital projects.
State-owned companies (SoCs) will pursue the development of growth-facilitating economic infrastructure. Many SoC developments are large in scale, for example the Medupi and Kusile coal-fired power stations, which form part of Eskom’s R337-billion programme. They are expected to add an additional 17 000 MW of electricity generation by 2018, while the transmission network will also be expanded and strengthened.
In the transport milieu, the main freight-focused rail and harbour investments being undertaken by Transnet also feature prominently. However, there are also several emerging public-transport programmes. The Passenger Rail Agency of South Africa, for instance, is moving ahead with a major recapitalisation programme, while several of South Africa’s metropolitan councils have approved bus rapid transit systems.
Among government’s so-called mega infrastructure projects are water developments, such as the Olifants River Water Resources Development Project and the Lesotho Highlands Water Project Phase 2; and renewable-energy projects that emerged from the first two bidding rounds under the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme.
Project activity is also continuing across most of the mining subsectors and in some pockets of industry. This publication features a range of coal, diamonds, gold, ferrous minerals, uranium, petrochemicals and platinum developments.
This report is a summary of information published in Engineering News and Mining Weekly, as well as information available in the public domain.
The report does not purport to provide analysis of market trends.
Published on: 10 April 2013.