Budget Speech 2014Government Expenditure ProgrammesInfrastructure Investment |
Mister President, under your leadership of the Presidential Infrastructure Coordination Commission, coordinated by Minister Patel’s department, we are now making progress in overcoming infrastructure backlogs and investing for more inclusive growth and development. Public infrastructure investment will amount to R847 billion over the next three years.
| • | The first unit of the Medupi power station is expected to be completed towards the end of this year. |
| • | Transnet has increased capacity on its coal line. Plans are in place to further expand the coal, iron ore and manganese lines. |
| • | The Passenger Rail Agency of South Africa refurbished 500 metrorail coaches last year, and its new rolling stock procurement programme will get under way this year. |
| • | Spending on social infrastructure – which includes health, education and community facilities – will increase from R30 billion in 2012/13 to R43 billion in 2016/17. Priority will be given to programmes to eradicate school infrastructure backlogs and to refurbish clinics and hospitals. |
| • | A programme to rehabilitate 35 dams has been completed, and work is in progress on the country’s five large water transfer schemes. |
| • | In 2014/15, a total of R40 billion in infrastructure grants will be transferred to local governments for their water, sanitation, energy and environmental functions. |
The private sector is also making an increasing contribution to infrastructure investment. Contracts for 47 renewable energy projects were concluded in 2012 and 2013, many of which are already under construction. These will add 2 460 MW of power capacity, and investment of R70 billion. A further R45 billion in investment will be contracted this year.