N Hangana: Institute for Local Government Management Conference

29 May 2006

Programme Director
President of the Institute for Local Government Management
Executive Council of the Institute for Local Government Management
Mayors Municipal Managers
Representatives of the Corporate Sector
Members of the Media
Ladies and Gentlemen

The 2010 World Cup is one of those achievements that makes us as South
Africans, from all walks of life, proud and hold our heads up high with
confidence. However, we also have to think about the demands if not pressures
that the process of hosting the World Cup will place on our existing
infrastructure insofar as its capacity and ability to sustain all the pressures
exerted on it by this event. Seeing that the event is only four years away, we
should ensure the existence of a holistic monitoring and evaluation programme
that will be utilized to audit the exact status of each of the structures that
are bound to be affected by the World Cup. Furthermore, we should already be in
a position to assess the capacity of our own service providers within the
construction sector to supply the necessary materials required for such a
mammoth construction task so that we can demonstrate our ability to deliver not
only on time but quality products that will be steadfast beyond the 2010 World
Cup.

I am sure that the conference will agree with me that in specific terms, we
will not have carried out a successful event of the airports and stadium
infrastructure is not given top priority, as these are the areas where the most
activity during the World Cup will take place the most. The airports are the
windows to the country in general and the provinces in particular and therefore
need to be in step with global aviation standards. Our stadium, as well all
know, do require quite a lot of revamping if they are to reflect the same
standards that have been demonstrated by the countries that have hosted this
even before us.

As such, we would be doing an injustice if we did not cast an eye on the
state of our road and rail infrastructure as these are the most widely used
linkages between two points, but also taking into account the fact that if in
good condition, and used interchangeably, the two could provide us with a very
effective and efficient transportation system. This would ensure taking the
burden off the one system and create some form of balance in terms of the
pressure that would otherwise be borne by one if the other were either
malfunctioning or totally dysfunctional.

If we are to look at this event as a programme with various projects, then
we have to locate the critical role that local government has to play to ensure
not only the success of the World Cup itself but also the direct material
benefits to the communities within those municipalities. This therefore calls
for a very clear and specific master plan borne out of a high level of
strategic thinking to help provide the necessary guidance on how roll-out such
a plan to ensure that it impacts on poverty eradication and ensure the
promotion of the Millennium Development Goals (MDGs) through the various
implementation strategies that they have in place.

We therefore need to admit that quite a number of stakeholders, especially
business, would seek to make profits from the event, but equally, we also need
a mechanism through which to ensure that business also plays a prominent role
in poverty eradication.

South Africa is projected to at least scoop some R21 billion in terms of
World Cup generated income, which is a sum of money that should go a long way
in contributing towards the development of our poor communities. However, we
need to take stock of the fact that as a country with two economies, the first
and the second economy, we have to constantly seek to ensure that there is
fairness and equity in the resources allocation and distribution to ensure that
an impact is made in the development of the second economy to reduce the gap
that currently exists between the two.

This further places the responsibility on municipalities to adopt effective
intervention strategies in terms of supporting job creation through tourism as
we are expecting some visitors in the region of close to a half-a-million and I
am sure that there is enough capacity at municipal level to deliver on this
goal. We need to remember that the economic spin-offs of tourism will not only
be short term as the facilities will likely develop and expand significantly
through to financial injection generated from the World Cup.

What will determine the strength and impact of the master plan though will
not be just how much the various sectors have generated and ploughed back to
communities but the sustainability of these sectors in conducting their
business and thereby contributing to the development of local government
through revenue collection.

The master plan will also have to be specific about the different role
players in the planning process. For instance, economic development,
development planning, social development and transportation and roads
management could be some of the components of local government earmarked to
participate in this exercise.

Turning to infrastructure, I must point out that this is one area that is
quite close to my heart in regard to the World Cup. Some of the questions that
one ponders in relation to infrastructure are:

* what is the state of readiness of our local government to address the
infrastructural deficiencies that we are faced with especially in relation to
stadia, airports, and road networks?
* what is the capacity of the country’s construction industry to deliver on
these deficiencies if called upon?
* do we need foreign skills in addition to the skills that we have in the
country so that we can deliver on this mandate?
* how will the infrastructural revamping and development programme respond to
the various challenges in the various municipalities, will there be a central
coordination point or will this be dealt with in silos?

I am raising more questions than discussion points on this matter due to the
fact that a lot of money, R242 billion to be precise, has been set aside for
infrastructural development in relation to the 2010 World Cup. Once such funds
have are released to drive programmes and projects, we need to have carefully
thought of not only how we will spend it but concern ourselves more with the
quality of infrastructure that we would like delivered. Furthermore, as we all
understand, where construction is involved, there are bound to be risks of
various magnitudes. Are we well prepared to respond to these if and when they
arise and have we looked at and reviewed our by-laws where possible to ensure
that there are loopholes that lend us in court due to either injuries or
fatalities that could have been avoided?

It is important however that I should recognize the fact that our
construction industry is one of the fastest growing in Africa and throughout
the world. With this in mind therefore, we have to tap on this industry not
only to create the actual buildings but seek advice and opinion on how best we
can build structures that are not only sustainable beyond 2010 but those that
would be depicted as timeless monuments of an ANC led government.

In locating the role of local government in the 2010 FIFA World Cup, we
obviously need to start thinking about what would serve as the strategic
pillars towards succeeding in achieving our targets in relation to the
eradication of poverty and addressing infrastructure services backlogs. We
could see the 2010 World Cup as one of the mechanisms through which there could
be a measure of accelerating the achievement of these targets however we need
to also confront the capacity of local government to realize the achievement of
such targets through their strategic and insightful participation in the World
Cup.

We need to be able to understand the extent to which all the cities
identified to host the World Cup have planned and prioritised their budgets to
ensure that they cater for the 2010 World Cup infrastructural demands.

On the other hand, the municipalities in which those cities are located need
to have a broader vision of how the various positive spin-offs will translate
to material benefits in the rural communities that are at the periphery of such
cities. As the issue was raised in relation to the first and second economy
challenges, we need to increasingly think about how such once-off opportunities
such the World Cup can assist us to close the gap in the rural-urban divide, to
ensure that rural areas are developed into sustainable and self-sufficient
areas with their own resource base to continue with their customized
programmes.

In conclusion therefore, let me point out that we will have failed ourselves
as public officials but even worse, as the South African public, if we did not
take cognisance of the following pivotal areas of focus, namely:

* creating a central coordination point for planning, strategizing and
implementing the 2010 World Cup programmes
* giving attention to infrastructural development that covers an extensive area
to benefit local communities in relation to services that are not yet provided
for, e.g. water, sanitation, etc
* ensure broader stakeholder participation both at project planning and
implementation levels to anticipate any from of resistance from local
communities that could hamper progress or even initiation of some of the World
Cup related projects
* ensure that a sustainable maintenance plan with specific resources, is
developed that will address post 2010 World Cup demands on the
infrastructure
* utilise both the relevant Sectoral Education and Training Authorities (SETA)
(construction industry, engineering, etc.) and internships and through
partnerships, channel these skills towards local government to ensure the
broadening and development of the current skills base and therefore
capacity.

I thank you.

Issued by: Department of Provincial and Local Government
29 May 2006
Source: Department of Provincial and Local Government (http://www.dplg.gov.za)