HomeIndustry SectorsFinance and PolicyConcern over SA government's infrastructure under spend

Concern over SA government’s infrastructure under spend

Graham Pirie,
14 February 2012 – In a joint industry statement the South African Federation of Civil Engineering Contractors (SAFCEC) and Consulting Engineers South Africa (CESA) have said they are appalled by the recent announcement by government of the R12.4 billion under spend budgeted for municipal infrastructure projects.

Graham Pirie CEO of CESA, states, “CESA considers this very disturbing as it has had a negative impact on communities struggling with service delivery issues, and the construction industry relies heavily on municipal expenditure to survive.”

SAFCEC executive director, Neville Gurry, says the under spend was a tragedy and that there are numerous reasons for this, but one of the biggest contributing factors was the lack of capacity and expertise in government departments to both implement new projects and to maintain existing infrastructure.

Both associations through their Business Unity South Africa (BUSA) affiliation, are interacting with the stakeholders in government’s New Growth Path (NGP) initiative to create jobs through infrastructure spend.  New delivery models were being considered which would assist with the implementation of numerous projects.