KZN infrastructure revolution to change the face of the province - create massive employment and curb chronic unemployment.
Statement by MEC for Human Settlements and Public Works Jomo Sibiya on the construction of Provincial Government Precinct which will strengthen service delivery and ensure better co-ordination of government work._
We have taken a decision to respond, formally, to the media statement presented by Inkatha Freedom Party during their press briefing in Durban this morning.
First and foremost, we wish to state that as the Department of Public Works, we appreciate guidance from all leaders of society, captains of industry and the public at large as we execute our work of the rollout of socio-economic infrastructure. We remain focused on creating job opportunities for the unemployed and marginalized members of society.
Importantly, the oversight role played by the Portfolio Committee on Public Works, under the leadership of the Chairperson Mbali Fraser, has ensured that we reengineer the department to be a catalyst for socio-economic development.
It should be noted that members of different political parties including the IFP form part of the Portfolio Committee on Public Works.
Naturally, it should be expected and appreciated that the IFP, as an opposition political party, will always oppose any programme championed by the governing party - the African National Congress. This is part of democracy that we ushered in 1994.
The ANC, as a governing party, has identified government infrastructure as one of the most important sectors in ensuring economic recovery and job creation.
It is for these reasons that the department’s investments in social infrastructure are packaged in such a way that we grow the economy of the province for the benefit of ordinary members of society.
We have stated in the past that all categories of staff in the department are now fully aware that the approach this country has adopted is that which is utilised by developmental states that lifted their countries out of deep depression. In these countries, massive investment was poured into infrastructural projects to stimulate development.
By and large, massive investments consequently encourages partnership between the public and the private sectors to maximise investments and grow the economy together. Undoubtedly, the Provincial Government Precinct, as a catalytic project will help stimulate many sectors of our economy in UMgungundlovu District Municipality and surrounding areas.
Historical context
In as much as we respect the IFP President Velenkosini Hlabisa, we will be abdicating our responsibilities if we do not respectfully remind him and the people of KwaZulu-Natal that a decision to relocate legislative capital from Ulundi to Pietermaritzburg dates back to 2002.
This decision was adopted after the recommendations of a multi-party committee of all political parties, including the IFP in the legislature in 2002.
We recall that on the 31st May 2002 , the IFP staged a walkout from Ulundi Parliament resulting in other political parties voting in favour of the relocation to UMgungundlovu with Pietermaritzburg becoming the Capital of this province.
In addition, as it was stated by the ANC in KZN yesterday through its spokesperson Nhlakanipho Ntombela, after the general elections in 2004, the Premier of the Province Sbu Ndebele declared Pietermaritzburg as both Legislative and Executive Capital of the Province. This declaration resulted in the need for some Provincial Departments to relocate their Head Office components to Pietermaritzburg.
Currently, KZN Government Departments are located in various locations in Pietermaritzburg and Durban.
The proposed Provincial Government Precinct forms part of a resolution of the Executive Council of KZN to make Pietermaritzburg the Capital City of KZN province and to bring together all the different head offices of KZN Government in a cost effective and efficient manner.
Critically, as pointed out before, Provincial Government Precinct will not only stimulate other sectors of the economy, but will also strengthen service delivery.
Thousands of people will be employed with other sectors of the economy being stimulated with many more job opportunities created.
*Projected Cost of KwaZulu-Natal Provincial Government Precinct*.
Currently, projected total cost of paying rent for government offices over the next 20 years is R 5,865 billion. On the other hand, projected total cost of the construction of provincial government precinct is R 6,817 billion, with the market value of the precinct after construction valued around R11 billion.
It needs to be emphasized that alternative funding models are being interrogated to find the most efficient funding model in order to reduce the burden on the state to fund this project.
To this end, the department, as directed by the Executive Council under the leadership of Premier Sihle Zikalala, is undertaking critical processes which will pave the way for the construction (this is outlined in the attached fact-sheet).
It is anticipated that the Statutory Compliance processes will be completed in Jan 2023 with the financial modelling completed by March 2023. The process of engaging financial institutions and other funders will than begin in earnest.
The National Treasury and Provincial Treasury are providing much needed guidance in this regard.
Linked to the Provincial Government Precinct, Public Works is establishing the State Infrastructure Development Agency (SIDA). This will be the Province's Infrastructure Nerve Centre.
Our focus is to ensure that this Agency enables KwaZulu-Natal to coordinate effectively every infrastructure project that in this province irrespective of the sphere of government that is the custodian of the plans in question.
As we re-engineer our work as the department, we are on the lookout for opportunities that will benefit the people of this province.
We are constantly alerting industry stakeholders to the fact that the national government, together with the private sector, identified 276 projects with a total investment value of more than R2.7 trillion.
Government went on to gazette 50 of these Strategic Integrated Projects with a value of R340 billion.
As we have reported in the past, the projects are in the areas of human settlements, water and sanitation, energy, transport, digital infrastructure, harbour development and maritime in general. Some of the projects are located in KwaZulu-Natal.
As Public Works, we remain alert to take full advantage of the rollout of all infrastructure projects as guided by the Provincial Growth and Development Strategy and Plan; and the National Development Plan.
We reiterate our position that the requirement of a developmental state is the capacity to provide credible plans to unlock the potential of the economy based on a long- term vision.
We do not want the people of KwaZulu-Natal to be left behind.
We want to use infrastructure development to leapfrog stages of development.
As we move forward, we undertake to engage with industry role-players, ordinary members of society and leaders of society at all levels around the Provincial Government Precinct.
We will also engage with leaders of political parties as we understand that they represent the aspirations of the people.
In conclusion, the people of this province and the country will judge the performance of elected leaders on the basis of the extent to which they exert an honest effort to take this province forward. Honesty, speed and efficiency are the hallmark of our work this term of office.
Our success, as public representatives, will also depend on the extent to which, despite our weaknesses, are able to pull together and usher in a new era of prosperity.
Ideally, the leadership collective has a responsibility to unite around the prescripts of the constitution and the programme for advancement of the country and use their strength to minimise each other’s' weaknesses and collectively score major achievements for the country.
Let us hold hands and embark on the infrastructure revolution to change the face of this province for many years to come.
We are the generation that stands between poverty and prosperity. As the department we choose prosperity for the benefit of future generations.
Enquiries:
Ndabezinhle Sibiya
Cell: 082 375 4742
Mbulelo Baloyi
Cell: 083 320 0274 / 0833200274
