Post on 16-Aug-2020
Infrastructure
Report
Card
August 2014
Malcolm Pautz
2
YEAR PEOPLE (bln)
1950 2.52010 6.82050 9
Global Population Increasing Aging Infrastructure
Aging Population and
UrbanizationNatural Disasters
3
Budget $40 000 000 000 000
Global needs/challenges
3
4
Budget $40 000 000 000 000
Global needs/challenges
5
YEAR PEOPLE (bln)
Global Population IncreasingEnergy infrastructure needs
Water infrastructure needsIncreasing Urbanization
195020102050 0.20.952.00
6
Budget $1 000 000 000 000
Africa needs
Who is saice?
The South African Institution of Civil Engineering (SAICE) represents the
foremost body of professional expertise in:
• water,
•sanitation,
•solid waste management,
•roads,
•rail,
•airports,
•harbours,
•stormwater and flood management,
•bridges and buildings
- our infrastructure.
Established in 1903, it is the largest of the engineering "learned societies", with
approximately 12 000 members who enhance the welfare of humanity by
advancing the science and profession of civil engineering.
History - IRC 2006
• In 2006 the South African Institution of Civil Engineering (SAlCE) released the
first ever Infrastructure Report Card (IRC) on the state of engineering
infrastructure in South Africa
• The report highlighted “the observations of the professionals responsible for
the planning, construction, operation and maintenance of our nation’s life-
support system”.
• The report is a collective opinion by civil engineering professionals in the
manner of “expert witness”, on the current condition of these assets.
• SAICE is uniquely placed to do this because its membership is drawn from all
sectors of the civil engineering community: all tiers of government, the private
sector designers and constructors, suppliers of equipment and materials, and
even suppliers of finance.
• Moreover, it is a learned society and operates as a non-profit organisation
• Skills shortages and lack of maintenance emerged as the two key themes
across all sectors.
• Overall, it gave the nation’s infrastructure a D+ grade.
History - IRC 2011
• To ensure independence, SAICE chose to not seek sponsorship for this
undertaking, but it would not have been possible without the considerable
investment in research made by the CSIR Built Environment unit.
• At SAICE, many volunteers, in particular, the members of the SAICE Divisions,
the Steering and Reference Groups and the Moderating Panel, volunteered
many hours of their time. Finally, the sanction and continuous support of
SAICE’s Executive Board endorsed the authenticity and continuity of the IRC.
• SAICE is an NGO and depends upon subscriptions from its approximately 12
000 members for its operation. Their contribution to furthering awareness and
dialogue around infrastructure made this project possible.
• The two main themes from 2006 still pertain; two new important themes have
emerged in 2011, viz. holistic systems and sustainability.
Date Launched Involvement Related products Summary
2006 SAICE Saice, CSIR,
industry experts
9 broad categories, 21 sub-
categories
Scoring reflective of the current status, D+
2011 SAICE Saice, CSIR,
steering comm,
industry and
divisional experts
10 broad categories, 27
sub-categories
Scoring reflected of the current status and trends, C-
Trend
• Saice found that nine subsectors (2006) showed improvement, twelve remain
unchanged and a further four had deteriorated.
• The Schools sector and the Fishing Harbours sub-sector are new and
therefore do not have trend indicators.
• The improvement from a grade of D+ in 2006 reflected marginal improvement
in the overall condition of our nation’s infrastructure over the past five years,
influenced by the heavy investment in, especially, national assets: ports, rail,
airports and national roads.
• The quality and reliability of basic infrastructure serving the majority of our
citizens is poor and, in many places, getting worse.
• The IRC’s do not grade the absence of infrastructure, where there is deficiency
is clearly a government priority.
A B C D E
World - Class Fit for the
future
Satisfactory
for now
At risk Unfit for purpose
Infrastructure is
comparable to the
best
internationally in
every respect.
It is in excellent
condition and well
maintained, with
capacity to endure
pressure from
unusual events.
Infrastructure is
in good condition
and
properly
maintained. It
satisfies current
demands and is
sufficiently robust
to deal with
minor incidents.
Infrastructure
condition is
acceptable
although stressed
at peak periods. It
will need
investment in the
current
Medium-term
Expenditure
Framework
period to avoid
serious
deficiencies.
Infrastructure is
not coping with
demand and is
poorly
maintained. It is
likely that the
public will be
subjected
to severe
inconvenience
and even danger
without prompt
attention.
Infrastructure has
failed or is on the
verge of failure,
exposing the public to
health and safety
hazards. Immediate
attention is required.
Please note:
• A + or – is sometimes used to indicate a grade which lies at the extremes of the range.
• The trend in the score since the 2006 IRC is denoted by an arrow: upward, horizontal or downward pointing to
indicate improvement, no change or deterioration respectively.
Importance and legacy
• In the global economy, profitable economic activity requires efficient and
functioning systems of transport, energy, water and waste management and
social infrastructural services.
• There is also a positive relationship between buildings, infrastructure and
human well-being. Well-designed and maintained public buildings and
infrastructure contribute very significantly to good social relationships,
reduced crime and increased productivity.
• In short, good infrastructure improves the quality and length of human life: a
fact acknowledged by the medical fraternity.
• In recognition of its critical importance, the right to basic services is enshrined
in South Africa’s Constitution. In 2001, government went further by instituting
the Free Basic Services Policy, committing to providing free services to
indigent households.
• Since 2006, the public profile of deteriorating or dysfunctional infrastructure
has increased significantly, leaving some owners highly sensitive to criticism
and making data collection problematic.
Importance and legacy (cont...)
• On the other hand, in the past year the water services sector has received
close attention in political circles, the media, and the public domain. The
sterling efforts of the Department of Water Affairs (DWA) in undertaking the
Blue Drop and Green Drop analysis processes, and releasing the reports to the
public, have set a good example to the leaders of other infrastructure sectors
and rightly, have been highly praised.
• The critical importance of the local government sphere, with its considerable
service delivery and infrastructural responsibilities has been recognised by
national government, as has the need to overhaul many municipalities.
• Since 1994, massive strides have been achieved, nonetheless, until now this
provision has too often been made on a flawed basis, through an isolated
focus on capital expenditure rather than through life-cycle costing models.
Importance and Africa
• Expenditure framework on infrastructure in South Africa and in the rest of the
continent lags that of other developing nations.
• 2012 Annual Budget Review, the National Treasury indicates that in 2010,
public and private sector investments on infrastructure in South Africa stood at
a combined 19.6% of the Gross Domestic Product (GDP), with the public
sector investing 7.4% and private sector putting in 12.2%.
• The National Treasury further explains that based on experience from other
developing countries, capital investments would need to be equivalent to at
least 25% of the GDP in order to spur a rise in per capita income
2006 to 2011
• 2006 IRC, two key themes thread all the grades, still persist today:
1. The severe shortage of skills and the impact on planning, procurement,
design, construction and care of infrastructure.
2. The second was the inadequate funding of maintenance for existing and new
assets.
• 2011 IRC, two new themes emerged:
3. Systems and maintenance
4. Sustainability
• Both these themes emphasise the need for a holistic approach to infrastructure
and its use.
• South Africa has, by proportion of population, up to twenty times fewer
engineers than Australia, America, Western Europe, and even India or China.
• A technique to improve the delivery capability of a network is to improve the
systems and efficiency of application of limited resources. A systems-based
approach will enhance the integration of services and maximise the use of
scarce human and infrastructural resources.
2006 to 2001 (cont...)
• There is a need for departments to communicate with one another more
effectively through better systems, in order for infrastructure to be more
efficiently and cost-effectively managed.
• There is an extreme absence of awareness regarding the true or user costs of
infrastructure and its environmental impact.
• The practice of charging true costs to infrastructure users is an eminently fair
one, to both human beings (as non-users do not subsidise users) and the
general environment (as users pay for their environmental impact).
• In the absence of user-pay, high levels of wastage and civic disrespect for and
neglect of infrastructure is evidenced, which encourages avoidable
squandering of natural resources and burdens future generations with the
costs of our currently subsidised services.
• This practice discourages users and suppliers from seeking alternative or more
economical long-term outcomes regarding natural resource constraints
Summary
• THE PRESIDENTIAL Infrastructure Commission (PICC) is planning to address
the pace of infrastructure development in the country, which is lagging behind
expectations.
• The PICC’s mandate is to develop a 20-year infrastructure pipeline of projects
to ensure that the country can plan ahead and start earnestly with accelerating
the building of infrastructure.
• This will allow the country to ensure better financial mobilisation, provide
greater certainty to the construction industry, give educational institutions a
framework around which to plan their skills development strategies, and also
provide a roadmap for investors and communities.
• The infrastructure plan needs to include a focus on maintenance, so that not
only are new structures built, the existing ones must also be kept in good
shape.
Summary (cont...)
• The PICC has developed an Infrastructure Plan with 19 Strategic Integrated
Projects (SIPs), covering more than 150 specific infrastructure interventions.
They cover key platforms such as
o rail, road and port;
o dams, irrigation systems and sanitation;
o new energy generation plants, transmission lines and distribution of electricity to
households;
o communication and broadband infrastructure;
o social infrastructure in the form of hospitals, schools and universities as well as
regional infrastructure.
Application
Functions of the Council:
4(g) identify
(i) the current and future needs
and related priorities in relation to
infrastructure development of the
Republic, or in the region as it
relates to the Republic.
(v) financial matters that may
impact on infrastructure
development and maintenance
4(h) evaluate existing infrastructure
with a view to improving planning,
procurement, construction,
operations and maintenance
Summary (cont....)
• Infrastructure, once created, is unrelenting in its demand for maintenance and
this demand will increase the longer it is ignored.
• From our evaluation, skills constraints notwithstanding, bold leadership and
effective management are irreplaceable ingredients for successful and
sustainable infrastructure provision.
• South Africa has achieved remarkable strides in the past twenty years; it has
provided infrastructural services to millions of citizens at a pace unrivalled in
its history. Government deserves recognition for the ongoing progress in this
regard, reflected in the difference between the 2006 and current IRC.
• As a developing nation, South Africa’s engagement in the global economy is
constrained by its infrastructural capabilities. The challenges posed in the
IRC’s are no less acute because they are chronic, but they can be overcome
given the same dedication and ingenuity applied to the challenge achieved for
the World Cup.
• It is saice’s intention that the current and future IRC’s will evoke discussions
that provide impetus for the required leadership and action for a better
sustainable lifestyle for all of South African citizens.
Further information
• This detailed Infrastructure Report Card for South Africa document and the
abbreviated report card may be downloaded from the SAICE website, along
with previous report cards, relevant papers and presentations.
• Visit the website at www.saice.org.za/IRC2011
• SAICE is the professional home for more than 12 000 civil engineering
practitioners . The Institution provides a variety of services, including:
o Continued Professional Development for registered and candidate practitioners
o Interactive networking with stakeholders and participants in the profession and the
industry
o The development of technical guidelines and documentation
o Community Outreach programmes through career guidance, awareness
campaigns and capacity building for decision makers
o Support and input into government concerning all aspects of civil engineering
o Promotion and upholding of appropriate standards and an ethical approach