Kulu Civils

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State-owned companies to spend R403bn on infrastructure in the next three years
Finance Minister Malusi Gigaba estimated that over the medium-term expenditure framework, government would spend R948bn, or 5.9% of gross domestic product (GDP), on infrastructure in a bid to boost growth and employment.

This is less than the R987.4bn Gigaba’s predecessor, Pravin Gordhan, announced in the 2016 medium-term budget policy statement.

Tabling his first medium-term budget policy statement in Parliament on Wednesday, Gigaba said the majority of economic infrastructure would be provided by state-owned companies, which would spend R402.9bn in the medium term.

He said municipalities were projected to spend R197bn and provincial governments R208bn in the medium-term period.

Education was projected to spend R44bn building and refurbishing schools, libraries and laboratories.

"Government is embarking on a number of initiatives in infrastructure in order to improve the quality of our infrastructure spending. This includes maintenance of existing infrastructure, improved procurement of infrastructure projects, and better conditional grant terms to eliminate inefficiencies and underspending," Gigaba said.

He said Cabinet had approved a budget facility for infrastructure, which aimed to overcome the shortcomings in the planning and ex*****on of large infrastructure projects.

The facility had already started considering proposals for construction in water, rail, broadband and court buildings, he said

State-owned companies to spend R403bn on infrastructure in the next three years This is the lion’s share of the total infrastructure spending projected for the medium term, with provincial and local governments the other big spenders

South Africa needs to revamp its new public transport system

Over the past eight years, the South African government has spent more than R130bn on public transport projects in the country's main cities. The projects included the refurbishment of rail services and the establishment of a new rapid rail and bus rapid transit (BRT) systems.

KIM Ludbrook/EAP
KIM Ludbrook/EAP
This is a lot of money by any standards. As a percentage of gross geographic product, South African cities devote about twice as much money to transport as other developing countries and as much as four times more than some regions of the world.

The country should by now be celebrating the success of this investment. But sustaining the systems, especially the BRT systems, is proving to be difficult.

Even high-ranking government officials have expressed doubts about the way things are going. The MEC for transport in Gauteng province, Ismail Vadi, recently asked whether government was getting value for money from the BRT systems. His concerns have been echoed by Joe Maswanganyi, the national minister of transport.

Maswanganyi suggested that it was time to rethink and redesign the systems to “stop draining money from the fiscus”. The BRT has been called a “mammoth flop” and “a white elephant” in some media.

Those are exaggerations. But there are serious problems with the BRT.

Fixing them must focus on reducing costs and growing income. Running costs should automatically decline as the system matures. But to raise revenue levels, BRT must become better integrated with housing and other transport services so that more people use them and help pay for them. In particular, the BRT should work with minibus-taxis to help widen the net of BRT usage. The country needs better planning and funding to make this happen.

South Africa needs to revamp its new public transport system South Africa needs to review its approach to rolling out Bus Rapid Transit systems as the current model is proving to be too expensive and unsustainable.

Our Civils division progressing well with the upgrading of Gqolweni access road to blacktop. Community participation is the key to a successful ex*****on of any project, as we shape the future to be a better one.

https://www.youtube.com/channel/UCT_hmEocGQMQVBZfcceZ-2Q Follow our YouTube page for more updates. Moving towards Economic transformation

Kulu Civils Group Of Companies

Sanral releases draft empowerment policy it hopes will have snowball effect:The South African National Roads Agency Limited (Sanral) on Friday launched a draft transformation policy that seeks to have a “snowball effect” on the larger South African construction industry, says CEO Skhumbuzo Macozoma.
“This policy is going to trigger a review of our supply chain management policy, which, in turn, is going to change our procurement strategy. It will also change other strategies, such as human resources.

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South African miners swing to R17bn profit
The South African mining industry has swung to a net profit of R17-billion this year, compared with a R46-billion loss in 2016, PwC has revealed in ninth ‘SA Mine’ report.
The report, which covers 29 South African mining companies, states that spot price increases for bulk commodities supported the industry and contributed to the return to profitability.

However, a decrease in dividends and market capitalisation, retrenchments across the industry and marginal increases in taxes paid showed that the industry was still facing many challenges in the year.
PwC assurance partner Andries Rossouw pointed out that the industry’s revenue had increased by 13% year-on-year to R43-billion, which was the “first substantial increase in more than five years”.

Operating expenses, however, increased by R13-billion, while continued low commodity prices resulted in another year with significant impairments in the industry, with a total of R22-billion in impairment provisions.
More than R100-billion has been impaired over the last three years, more than wiping out the last two years of capital expenditure in the industry, the report showed.
The report also outlined that the market capitalisation of the companies analysed decreased nearly to the low levels recorded in 2015.
ref:

South Africa’s mining companies return to profitability, but sustainability remains a concern Despite wading through what is being dubbed the year of regulatory conflict, South Africa’s mining industry in 2017 has seen a turnaround in financial performance and the first substantial increase in revenue in five years, the latest PwC SA Mine report has shown. Spot price increases for bulk commo...

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