Johannesburg - The construction sector plays a vital role in how governments spend their money, accounting for about 40% of the country’s total infrastructure budget.
According to the Department of Public Works and Infrastructure, at least R117.5 billion in the recent budget was allocated to infrastructure in the 2022/23 financial year, and it is estimated that government expenditure will total R903bn over the next three years.
Public Works Minister Patricia de Lille said her department, through its entity, the Construction Industry Development Board (CIDB), has prioritised the capacity-building of the public sector to deliver infrastructure better and with greater urgency and efficiency. The government spent 70.6% of the total allocated infrastructure budget in 2019/20 and by 2020/21 this figure had improved slightly to 73%.
CIDB chairperson Bongani Dladla that the CIDB held capacitation training for at least 163 public sector clients across all three spheres of government in the 2021/22 fiscal year to impart critical skills, particularly planning and procuring for infrastructure, which is an Achilles heel of infrastructure.
“This included training of officials in 15 national and 45 provincial departments, 44 local governments, eight metropolitan municipalities, and 40 state-owned entities, including Eskom, Transnet and ACSA, among others. The target audience included SCM practitioners, technical departments, CFOs and legal departments. In the current financial year 2022/23 CIDB has completed 52 capacitation training,” Dladla said.
De Lille said that more than 50 DPWI senior officials took part in this capacitation training, including regional managers, SCM and finance officials, officials in the construction management branch, and project managers.
According to a department statement, at the centre of the training is the need to improve public sector compliance with the CIDB Standard for Uniformity in Procurement of Engineering and Construction Services, which establishes best practices for construction procurement and standardises documentation, systems and practices.
“Poor retention of skills due to the movement of key personnel out of government and within departments and institutions is one of the key factors affecting efficient and effective delivery of infrastructure, which necessitates ongoing capacitation by the CIDB,” read a department statement.
De Lille said that the government recognises the importance of construction as an ideal catalyst for economic growth and social development and a key creator of work opportunities, particularly for the emerging sector, which is one of the main generators of employment in the country.
“Every cent that goes back to the national coffers in unspent infrastructure budgets is an opportunity lost to the emerging sector and a threat to their survival and sustainability,” said De Lille.
“Over 150 000 of these emerging enterprises are registered on the CIDB Register of Contractors to position themselves for business opportunities with the government.
“By capacitating public sector clients to deliver infrastructure, the DPWI through the CIDB aims to curb government underspending to increase its contribution to the growth of this sector and to improve the industry’s potential to catalyse the country’s economic growth,” added the department.
With the construction industry contributing about 3% to the national gross domestic product, the department said that it facilitates the achievement of the government’s goal to improve health, education, transport, communication, sanitation and other social needs.
The Star