Cape Town -
State-owned companies are still failing to spend enough of their budgets on key infrastructure projects.
According to the 2013 Budget Review, tabled by Finance Minister Pravin Gordhan on Wednesday, SOEs (state-owned enterprises) spent 70 percent of the R131.7 billion committed to infrastructure in 2012 (2011/12).
This was an improvement on the previous year, where only 62 percent of that budget was spent.
“The shortfall against budget, however, was substantial, resulting largely from procurement and project implementation delays.”
The document says that over the next three years, capital expenditure by SOEs is expected to reach R377.5 billion.
The majority of these infrastructure projects are in the energy (Eskom), transport (Transnet) and water sectors.
“Over the next three years, 43 percent of the funding required for infrastructure development by state-owned companies is expected to be raised in the debt markets, with the remainder coming from internally generated cash.”
The need for private companies to “co-invest and bring technical expertise” to massive infrastructure projects is emphasised.
“An example of this approach has been the renewable energy independent power producer programme, which attracted R46.6 billion worth of investments from the private sector in 2012/13.” - Sapa