Page 68 - Provincial Treasury Estimates.pdf

Overview of the Provincial Revenue and Expenditure (OPRE) Financial Year 2023/24

delivery model needs to be revisited to take into account the move towards the single provincial

economic revitalization plan.

The recent Executive Council Legkotla has identified three strategic focus areas for economic
intervention to maximise job creation, economic growth and transformative development in the

province, as a basis of a single provincial economic revitalization plan. The identified focus areas

for provincial development in addition to Infrastructure Development are Agriculture and
manufacturing sectors of the economy. Other complimentary sectors in the province that give

support to agriculture and construction such as roads construction and water infrastructure etc.
must also be prioritised as critical complementary sectors.

In addition SANRAL is implementing works on major infrastructure roads projects however, this
must be accelerated as well as monitored and reported on so that the Province is able to

maximise the employment and related infrastructure spin offs to be realised from them.
Currently SANRAL is implementing five key projects in the Province i.e. the N2 Msikaba Bridge,

N2 Nqadu to Mbokotwana, R 63 Fort Beaufort to Alice, N2 Green River to Buffalo River, R58

Lady Grey to Barkley East and R61 Baziya to Mthatha Airport. Over and the South African
Defence force is constructing bridges on behalf of the Province.

The province has been fortunate to receive funding through the Budget Facility for Infrastructure

(BFI) for the construction of a new bulk sewer connection pipeline, upgrading of bulk infrastructure

to accommodate the expected increase in demand and construction of critical bulk water (return
effluent) infrastructure to support economic growth and enable a human settlement development

in Motherwell. This project will contribute towards realization of the single provincial economic
revitalization plan. To this end, the Province has received amounts of R298 million, R632 million

and R848 million for the 2023/24, 2024/25 and 2025/26 financial years respectively.

2022/23 INFRASTRUCTURE PERFORMANCE

The Provincial Infrastructure spending as at the end of January 2022 is t R6.013 billion
(65.89 per cent), against a projected amount of R6.360 billion, of the infrastructure adjusted

budget of R9.126 billion. The underspending against projections amounting to R346.874 thousand
and the recurring provincial underperformance in Infrastructure is mostly attributable to challenges

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