​GAUTENG DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT | 2024/25 BUDGET VOTE SPEECH TABLED BY MEC JACOB MAMABOLO AT THE GAUTENG PROVINCIAL LEGISLATURE ON

01 AUGUST 2024

Honourable Speaker and Deputy Speaker,

Honourable Premier and Members of the Executive Council,

Chief Whip of the Majority Party,

Leaders of Political Parties represented in the Legislature,

Honourable Members,

MMCs and Councillors,

Senior Officials of the Department led by the HOD,

Distinguished Guests,

Ladies and Gentlemen,

Allow me, Madame Speaker, to preface my address by outlining our approach to delivering infrastructure in our province for the seventh term of the Gauteng Provincial Government. Our approach is simple: Getting the Basics Right. Throughout the end-to-end management of government assets—from building new infrastructure, maintaining it, to its eventual disposal—we believe in adhering to fundamental principles. These basics ensure that our assets play a catalytic role in growing the economy and guaranteeing a better life for the citizens of our beautiful province.

Honourable members, our project delivery has been plagued with costly delays, often resulting in infrastructure being delivered at nearly double the budgeted cost, and some projects being abandoned, leaving our communities poorer. To address this, we must expedite the delivery of infrastructure and streamline our processes to avoid back-and-forth delays. By strictly adhering to tools such as the Project Readiness Matrix and leveraging smart technologies, we believe we are on the cusp of significant improvement.

The Department is allocated a budget of R 3,221 billion of which the total of R 2,499 billion is allocated to Public Works programme. R 446 million is allocated to Administration programme and R 275 million will fund our Expanded Public Works Programme (EPWP). Departmental expenditure is driven by rates and taxes, compensation of employees, leasing of office accommodation, infrastructure projects, EPWP stipends, legal costs and security services which are classified as cost drivers. The remaining budget is allocated to other operating costs which include soft services, provision of tools of trade, ICT systems, G-Cars and others. An amount of R961.5 million is allocated for payment of rates and taxes to the municipalities. For infrastructure rehabilitation and maintenance of public properties an amount of R 169.9 million has been budgeted. A total of R200 million has been set aside for office space leasing, R144 million for save-guarding our assets. A total of R194. million is allocated towards poverty relief through our short-term employment EPWP programmes carried out through the National Youth Service (NYS) programme, Vacant Land as well as health maintenance programmes.

Audit Outcomes

I am pleased to report that our Public Works and Expanded Public Works Programme (EPWP) obtained a clean audit outcome. On the annual financial statements, we received an unqualified audit opinion with no material misstatements. In the interim the Department is implementing remedial controls to address internal control deficiencies identified by the Auditor-General. The Department is developing measures to address inadequate compliance management as this will ensure improved service delivery and strengthen our relationship with client departments and ultimately improve audit outcomes.

30 Days payment

The Department has consistently achieved 100% payment of service providers within 30 days and aims for 100% within 15 days. We are committed to ensuring financial compliance, strengthening financial stewardship, and improving financial sustainability. We are working towards better audit outcomes with the Provincial Treasury and the Auditor General as key stakeholders.

Infrastructure Delivery Platform (iDEP)

We are introducing the Infrastructure Delivery Platform to ensure our projects comply with all stages as stipulated by the Infrastructure Delivery Management System. The iDEP is a long-term initiative aimed at enhancing traditional project delivery methods through innovative technology. This platform provides a "single source of truth" for managing and distributing project information and documents, ensuring real-time, reliable data throughout the project lifecycle.

Key goals of the iDEP include:

• Project Readiness Matrix (PRM): To ensures compliance as well as to foster collaboration for project success.
• Infrastructure Governance Lab (IGL): To develop turnaround interventions or solutions to drive distressed projects to completion, while keeping under review, to fostering high levels of good governance in the implementation of projects turnaround plans.  
• Smart Technologies: To integrate advanced technologies for enhanced compliance, productivity, and sustainability.
• Project Finance Compliance: To addresses financial challenges to prevent project delays and failures.
• Project Site Compliance: To utilises technology to ensure standardised, compliant site management.

Creation of a New Project Pipeline

The department is currently managing an infrastructure project portfolio which consists of 341 capex projects. The education infrastructure branch has 241 capex projects under management. Therefore, given our vast project pipeline, the management of our project pipeline must be aligned to priorities of the seventh administration. We need to make sure that each project which is prepared to hit the ground is the right project, it is delivered to the most deserving community, it delivers the best value, and it is delivered within the right time and budget.

Acceleration of Project Planning

We need to make sure that our project preparation period is streamlined and fast-tracked to increase the number of shovel-ready and shovel-worthy projects. Shovel-ready projects will include projects that could be prepared quickly for implementation such as those that have gone through the Project Readiness Matrix, projects with committed funding, or projects which do not require many approvals.

School Infrastructure

The department will be actively working to deliver a total of 25 education facilities by the end of the financial year. About 10 of the facilities will be new schools, nine will consist of school renovation projects and six schools are earmarked for upgrades and additions.

Health Infrastructure Projects

The construction of the Johannesburg Forensic Pathology laboratory will be completed in the 2024-2025 financial year. The renovation of Helen Joseph Hospital and the Diepkloof FPS will also be completed within this period. Additionally, the department will also commission electro-mechanical projects at health facilities and the Bekkersdal Social Integrated Facility. Phase 2 rehabilitation, renovation, and refurbishment projects will also commence at various facilities.

Incomplete Infrastructure

The department is currently leading the Gauteng Incomplete Infrastructure Task Team and managing a total of 62 incomplete provincial projects which has been delayed over an extended period of time. About 21 projects are under the DID portfolio. These projects include schools, health as well as social development facilities. Some of the projects, within the health infrastructure, have been fully completed but have not yet officially handed over to clients due to outstanding town planning issues. Through the iDEP programme we will work towards ensuring that all the delayed projects are prioritised and completed in this financial year. 

Infrastructure Maintenance

Ensuring that DID has functional, reliable, and compliant infrastructure through effective and timely maintenance of facilities remains a top priority. We aim to increase the ratio of preventative to reactive maintenance to 80:20 over the MTEF period. Collaboration with GPHEALTH and Provincial Treasury ensures that ongoing maintenance occurs at our health facilities.

For the 2024-2025 financial year, the Department will complete condition-based assessments at 8 health facilities and 228 state facilities across the province.

Empowering Black Emerging Firms

The department targets to continue to empower emerging black firms over the next five years, with 40% being women-owned, 30% youth-owned, and 30% allocated to other categories.

Property and Asset Management

As the primary custodian of government immovable assets in the province, with a portfolio valued at approximately R54 billion, the department is strategically placed to change lives, boost the provincial economy, and transform the socio-economic landscape. The Gauteng Property Optimisation Strategy and the planned Commercialisation Strategy will provide a much-needed revenue stream for GPG through rapid land release and asset disposal programmes. The Department plans to verify 6,256 immovable assets in the Immovable Asset Register (IAR) during the 2024-2025 financial year.

Infrastructure Summit

As we continue to accelerate infrastructure, we will not tolerate the ongoing violence, intimidation, extortion taking place in our project sites. For service delivery to escalate we need a peaceful and harmonious development environment. It is within this context that we will convening infrastructure summit to bring all key stakeholder and interest groups such as business forums, contractors, police, community organizations and many others across the province openly engage on how to bring stability in all our active project sites affected by violence.

Revitalisation of Johannesburg CBD as the Seat of the Provincial Government and the Legislature

Honourable Members, as the provincial government's landlord, we are heavily invested in the revitalisation of the Johannesburg CBD. This iconic city centre is not just the heart of our province but a symbol of our cultural and economic strength. We recognise the challenges faced by the CBD following the divestment by large mining firms and banks, but we also see immense potential.

We will be partnering with our sister Departments, COGTA, the Department of Environment, civil society, and the private sector to restore the city and attract significant investment. The provincial government and this legislature have been among the few steadfast entities maintaining the vibrancy of this city centre. Our commitment is unwavering, and we view the revitalisation of Johannesburg CBD as a crucial endeavour that extends our influence and reputation globally.

This initiative will not only enhance the city's aesthetic and functional appeal but also create a conducive environment for business, tourism, and daily life. We are aligning with other stakeholders who have joined the campaign to restore the city, and we will be making further announcements on this front.

In conclusion, our commitment to getting the basics right, leveraging smart technologies, and fostering collaboration will ensure that we deliver on our promises, improve service delivery, and positively impact the lives of Gauteng's citizens.

I would like to thank the Head of Department Ms Masabata Mutlaneng, the Executive and Senior Management of the department as well as every staff member for their commitment as we begin on a new journey for a better Gauteng.

Thank You.

Issued by Gauteng Department of Infrastructure Development

For media enquiries contact Theo Nkonki (Spokesperson, Gauteng Department of Infrastructure) Cell: 082 719 6404 or e-mail: Theo.Nkonki@gauteng.gov.za

For media releases, speeches and news visit www.gauteng.gov.za