Government spending on infrastructure amounted to R1 trillion over the past five years and will be R847 billion over the next three years.

In his 2014 budget speech Finance Minister Pravin Gordhan said the Presidential Infrastructure Coordination Commission is now making progress in overcoming infrastructure backlogs and investing for more inclusive growth and development.

The private sector is also making an increasing contribution to infrastructure investment and contracts for 47 renewable energy projects were concluded in 2012 and 2013. These will add 2 460 MW of power capacity and investment of R70 billion. A further R45 billion in investment will be contracted this year.

Gordhan said the private sector is also making increasing contributions to infrastructure investment. Contracts for 47 renewable energy projects were concluded in 2012 and 2013, and many of which are already under construction. These will add 2 460 MW of power capacity, and an investment of R70 billion. A further R45 billion in investment will be contracted this year.

The minister mentioned several positive infrastructure projects and investments:

• the first unit of the Medupi power station is expected to be completed towards the end of this year
• Transnet has increased capacity on its coal line and plans to further expand the coal, iron ore and manganese lines
• spending on social infrastructure will increase from R30 billion in 2012/13 to R43 billion in 2016/17. Priority will be given to programmes to eradicate school infrastructure backlogs and to refurbish clinics and hospitals
• a programme to rehabilitate 35 dams has been completed, and work is in progress on the country’s five large water transfer schemes
• in 2014/15 a total of R40 billion in infrastructure grants will be transferred to local governments for their water, sanitation, energy and environmental functions.

City development and service delivery

An integrated city development grant has been introduced to strengthen long-term city planning and encourage private investment in urban development. It will amount to R814 million over the medium term.

Government will allocate R105 billion to municipalities over the next three years for free basic water, sanitation, electricity and refuse removal services.

R3.9 billion has been allocated to capacity building programmes, targeted at small towns and rural municipalities. Special initiatives include: R857 million for the Municipal Infrastructure Support Agency; R276 million for the human settlements Upgrading Support Programme; R300 million a year to assist metropolitan municipalities in managing the human settlements function; and R180 million for settlement upgrading in mining towns.