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SA National Infrastructure Plan

This presentation, led by Jonas Shai from the National Treasury, outlines South Africa's National Infrastructure Plan and its 18 Strategic Integrated Projects (SIPs) aimed at improving service delivery, job creation, and economic transformation. Highlighting the urgency for collaboration among South Africans, it addresses global risks such as financial crises, unemployment, and climate change that could impact infrastructure development. The presentation emphasizes the need for efficient project management and risk monitoring to ensure the successful execution of these ambitious projects.

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SA National Infrastructure Plan

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Presentation Transcript

  1. SA National Infrastructure Plan OFFICE OF THE ACCOUNTANT-GENERAL Presenter: Jonas Shai | Director, National Treasury | August 2014

  2. Agenda • Background • Global Risks • Strategic Infrastructure Projects • Risks • Opportunities • Conclusion

  3. “IT IS CLEAR THAT WE NEED TO CHANGE GEAR. ALL SOUTH AFRICANS NEED TO WORK TOGETHER IN A CONCERTED EFFORT TO IMPROVE SERVICE DELIVERY, BOLSTER JOB CREATION AND EXPEDITE ECONOMIC TRANSFORMATION.” • President J. Zuma

  4. Background • NDP and New Growth Path • PICC >>>National Infrastructure Plan • Poor Coordination • Weak Integration • Plans that go beyond 5 year terms • 645 projects • 18 Strategic Integrated Plans (SIP’s)

  5. Global Risk 2014 • Financial Crises in Key Economies • Structurally High Unemployment • Water Crises • Severe Income Disparity • Greater incidents of Extreme Weather Events • Global Governance Failure • Food Crises • Failure of Major Financial Mechanisms/Institutions • Profound Political and Social Instability Source: World Economic Forum Global Risks Perception Survey 2013-2014

  6. Strategic Integrated Projects • 5 Geographically-focused SIPs • 3 Spatial SIPs • 3 Energy SIPs • 3Social Infrastructure SIPs • 2 Knowledge SIPs • 1 Regional Integration SIP • 1 Water and Sanitation SIP Source: A Summary of the South African National Infrastructure Plan

  7. The 18 Strategic Infrastructure Projects • SIP 1: Unlocking the northern mineral belt with Primary Mineral Reserves Waterberg as the catalyst • SIP 2: Durban-Free State-Gauteng logistics and industrial corridor • SIP 3: South-Eastern node & corridor development • SIP 4: Unlocking the economic opportunities in North West Province • SIP 5: Saldanha-Northern Cape development corridor • SIP 6: Integrated municipal infrastructure project • SIP 7: Integrated urban space and public transport programme

  8. The 18 Strategic Infrastructure Projects - Contd • SIP 8: Green energy in support of the South African economy • SIP 9: Electricity generation to support socioeconomic development • SIP 10: Electricity transmission and distribution for all • SIP 11: Agri-logistics and rural infrastructure • SIP 12: Revitalisation of public hospitals and other health facilities • SIP 13: National school build programme • SIP 14: Higher education infrastructure

  9. The 18 Strategic Infrastructure Projects - Contd • SIP 15: Expanding access to communication technology • SIP 16: SKA & Meerkat • SIP 17: Regional integration for African cooperation and development • SIP 18: Water and sanitation infrastructure

  10. Project Management Place Mat

  11. Inherent Risks and the CRO • Poor planning: Well-defined specifications and project scope • Poor quality of execution • Poor project controls (schedule, cost, quality, safety, health and environment) • Fraud and corruption • Scope Creep • Poor management of industrial relations • Late authorizations and approvals • Key dependencies Problem of Induction

  12. Inherent Risks and the CRO • Assumptions made are significantly misstated • Ambiguous communication • http://management.simplicable.com/management/new/130-project-risks

  13. Opportunities • Reporting efficiencies: Risk Monitoring activities • Predictive nature: Emerging risks to projects e.g. overruns • Insurance :2011-2014

  14. Conclusion

  15. Questions and Answers Technical Consultations JeetsHargovan GTAC Jeets.hargovan@treasury.gov.za

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