Page 67 - Provincial Treasury Estimates.pdf

Estimates of Provincial Revenue and Expenditure (EPRE) -2023/24 Financial Year

4. INFRASTRUCTURE

INTRODUCTION

The Province is experiencing recurring under performance and disinvestment on Infrastructure

as evidenced in the gross capital formation of the province, which is well below the 25 per cent

norm for a developing country, which results in pressure placed on service delivery.

In addition, whilst the Infrastructure budget has been allocated to departments, the recurring
under performance on both the Provincial and Municipalities points to the challenges of the

capacity to respond to the implementation of infrastructure i.e. project implementation capacity to
monitor the project to ensure that there is value for money, no sense of project management

efficiencies, ineffective of project implementation, lack of accountability and responsibilities. In

additions in the Eastern Cape, the capacity in respect of contractors in the province, as per the
CIDB grading, reflects that the bulk of the contractors are in grade 1 contractor grading level whilst

remainder of the grades (grades 2 - 9) are limited in terms of the numbers. Over and above there
is the mobility of the level 9 grades across the province and internationally.

The Eastern Cape Province is continuing with the exploring of areas of integration and linkages
within the three sphere of government with special focus on provincial projects, municipal projects,

programmes and plans. The Province has been making strides towards joint and collaborative
planning initiatives and endeavours to push the alignment across all spheres and within the

Infrastructure value chain through the institutional structures including the sitting of the SUB

Cabinet Budget Committee Meeting and the technical Provincial Infrastructure Working Group
(PIWG).

The focus is on to ensure that the infrastructure funds are utilised such that there is value created
on the ground as well as the integration and rural development within the regions utilising the

District Development Model (DDM) approach. As such, the province is institutionalising the

prioritization of infrastructure development in rural districts within the context of urban renewal as
to maximise integrated development.

Currently, there is no correlation between the number of professionals and contractors required

as compared with the number of projects implemented in the Province. Hence, the service

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