Infrastructure Development Bill Presentation

1. 20 PRESENTATION TO THE PORTFOLIO COMMITTEE FOR ECONOMIC DEVELOPMENT ON THE INFRASTRUCTURE DEVELOPMENT BILL, 2013

2. Transnet participates in a number of existing SIPs and is the SIP2 Coordinator Unlocking the Northern Mineral Belt (Waterberg) 1 11 Agri-logistics and rural infrastructure (nationwide) Unlock Economic Opportunities in the North West Province 4 Regional Integration for African cooperation and development 17 2 Durban-Free State-Gauteng Logistics and Industrial Corridor 5 Saldanha-Northern Cape Development Corridor South Eastern node and corridor development 3

3. SIP2 Portfolio Pyramid South Aerotropolis Sentra-Rand Northern Region City Deep West Rand Hub Tambo Springs Rural Development (SIP 11) NSC (SIP 17) DFSG Rail Corridor NMPP N3 Highway Central Region Electricity Transmission Harrismith Logistics Hub Cato Ridge Dube Trade Port Port of Durban Port and Rail Expansions Southern Region Cornubia Integrated Settlement Durban Dig-Out Port • 2

4. SIP2 Steering Committee and Sponsors Ministers of Public Enterprises and Transport SIP2 Coordinator Transnet National Government Departments Provincial Government Departments and Agencies Local Government SOCs and Agencies Transport KZN Office of the Premier Department of Transport Department of Economic Development and Tourism eThekwini Municipality Transnet Public Enterprises Maluti-A-Phofung Municipality SANRAL Trade and Industry City of Johannesburg ACSA Free State Office of the Premier Department of Transport Economic Development Agriculture, Forestry and Fisheries City of Tshwane Eskom Presidency Ekurhuleni Metropolitan Municipality RTMC Gauteng Office of the Premier Department of Roads and Transport Economic Development National Treasury Rural Development Economic Development • 3

5. Key Concerns • The management of the National Infrastructure Plan • The roles and responsibilities of the SIP Chairperson versus the roles and responsibilities of the Secretariat • SIP identification and procurement processes • Expropriation of land • Timelines and processes for approvals

6. SIP Identification and Procurement Process • The role of the commission with regard to the identification of strategic international partners with which to conclude agreements (ad clause 4(f)). Is it intended that the Commission would identify international entities as service providers to be utilized at the discretion of the organ of state or is it intended that it would be a prescriptive list of entities that organs of state are to contract with. • Infrastructure development and maintenance activities (ad clause 4(i)). Paragraph (i) may be construed as implying that all proposals for infrastructure development and maintenance initiatives have to be considered by the Commission. If this was not intended, consideration may be given to the recommended rewording of the paragraph. • Clarity regarding the meaning of capacity when determining whether or not an organ of state can implement a project and the applicable process (ad clause 8). It is recommended that this section be amended to include the requirement that the Commission must, in consultation with the relevant organ of state, determine whether the organ of state has capacity to implement the project or whether the project must be put to tender. This is particularly relevant having due regard to the origination of a SIP.

7. Expropriation of Land • The role of the commission in the expropriation of land is unclear. • Is it envisaged that the Commission would be expropriating land or any right in respect of land in its own name or on behalf of another entity? In this regard, clarity is required regarding the legal standing and legal personality of the Commission and the current provisions of this clause would not allow the Commission to expropriate land on behalf of a public entity. • 6

8. Processes and timelines for approvals • “Simultaneous” submissions of applications. (ad clause 15) • The current wording of subclause (1) may be interpreted to mean that all applications must be simultaneously submitted to the steering committee for scrutiny (cf. subclause (2)(a)) before the applications are forwarded “for consideration by the persons authorised by the relevant laws to take applicable decisions”. If, on the other hand, subclause (1) is intended to require the simultaneous submission of applications to all the regulators involved, it should be borne in mind that, in principle, the Bill as a law of general application cannot override a specific law that requires consecutive actions for the processing of an application. • Application and authorisation processes usually require their own (and separate) public consultation processes. Where a project requires more than one application and authorisation process, it follows that the concomitant public consultation processes have a cumulative time delay effect on the roll-out of the project in question. In consequence, it is proposed that the provisions of this clause be strengthened by deeming a comprehensive public consultation process required under one law to satisfy the public consultation process requirements under other laws that apply to the same designated strategic integrated project. Further, clarity is required regarding the framework referring to in subclause (2), as Schedule 2 only refers to “Process and periods of time” (ad Clause 17).

9. Processes and Timelines for Approvals • Any regulations made regarding the criteria that must be applied in the implementation of a strategic integrated project, relating to skills development, green economy, employment creation, rural development and Broad- Based Black Economic Empowerment (B-BBEE) must take into account the strict evaluation framework prescribed by the regulations issued in terms of the Preferential Procurement Policy Framework Act (PPPFA). Secondly, the Minister’s power to make regulations with regard to B-BBEE must be reconciled to both the B-BBEE Act and the PPPFA as these two pieces of legislation have been aligned in this regard (ad clause 21(b)). • Key Concerns: • The timelines reflected in Schedule 2 appear to be unrealistic. • 8

10. 20 THANK YOU