Tag Archive | Infrastructure Development Bill

Infrastructure Development Bill now law

 Reducing bottlenecks

The Infrastructure Development Bill has now been signed into law by President Zuma, but controversy still surrounds the aims and objectives of Minister Ebrahim Patel he stated when originally introducing the Bill.

When presented by Minister Patel in Parliament, the idea of the Bill was ostensibly to reduce the number of problems caused by administration bottlenecks delaying the implementation of infrastructure projects. Now there is an extensive body of criticism surrounding the proposals, indicating that the very nature of the Bill will undermine what the Minister wants to achieve.

The main purpose of the new law seeks to empower the Presidential Infrastructure Coordinating Committee (PICC) to designate the Strategic Integrated Projects (Sips) and ensure their implementation. The purpose of the Bill is to direct the PICC to identify Sips of economic or social importance and ensure that infrastructure development is given priority in planning.

Enabling legislation

Government says the Act will “facilitate” legislative structures that affect government’s goal of focusing on infrastructure development and of providing the necessary facilities to prevent conflicting projects being pursued.

“The idea is to create steering committees to provide technical support and oversight and institute procedures to ensure that infrastructure development is not undertaken in a transactional manner, but in an integrated and consistent manner”, said Fulbright director, Andrew Robinson at the stage of parliamentary debate on the Bill when it was tabled..

“This Bill not only acknowledges the many weaknesses and challenges we face in implementation but provides the legal tools to overcome them so that we can do more to achieve our national goals”, he added.

Busa worried

Business Unity South Africa (Busa) stated its doubts about this.

Busa said such legislation will introduce too many additional layers of bureaucracy.    The South African Chamber of Commerce added that the legislation would simply make the smooth implementation and development of Sips difficult, leading to projects becoming increasingly expensive.

Busa pointed to the confusion between private-sector projects existing in the areas where Sips will take place and the fact that the explanatory memorandum of the Bill confirmed the intention to restrict the Bill’s application to the implementation of public projects only in the Sips.

Accordingly, said Busa in a statement, “At this stage, the perception of the Bill is that government aims to intervene in or regulate private-sector infrastructure projects. This causes uncertainty for investors and may reduce investment.”

Three tiers

The regulations will enable the President to nominate members of cabinet, premiers and local-government representatives for the coordinating structures within the PICC to ensure that all three spheres of government are part of the commission, said Minister Patel.

The new law contains clear mechanisms to avoid conflicts of interest between decision-makers and the underlying projects, all part of government’s anti-corruption drive.   It provides for tough penalties for corruption, including imprisonment for up to five years, says Patel, thus introducing criminalisation.

Petition to President

The opposition in the form of the Democratic Alliance petitioned President Jacob Zuma, under section 79 of the Constitution, to include this legislation, amongst four other Bills rushed through Parliament before it closed, to review the Infrastructure Development Bill.

“The broad and largely unfettered discretionary powers afforded to the Minister in section 21 create much uncertainty,” James Selfe of the DA said.   “There are problematic clauses that remove the powers of all organs of state responsible for planning in their area and the Bill ignores the constitutionally mandated functions of provinces and local authorities.”

Once the new government is formed one has to assume that clearer action plans will be established if the Bill is translated into becoming an Act with regulations to drive its purpose but controversy still remains amongst the private sector community regarding clarity of purpose and the posture of the state towards private projects underway or planned.

Other articles in this category or as background
http://parlyreportsa.co.za//cabinetpresidential/land-expropriation-modified-infrastructure-development-bill/
http://parlyreportsa.co.za//finance-economic/infrastructure-development-bill-possibly-altered/
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-to-cut-red-tape-2/

Posted in Facebook and Twitter, Finance, economic, LinkedIn, Special Recent Posts, Trade & Industry0 Comments

Infrastructure Development Bill modified and passed

Minister responds on land issue….

ebrahim patelThe Infrastructure Development Bill recently tabled by Ebrahim Patel, minister of economic development, appears to have avoided major confrontation as a result of re-wording of the provisions it contained regarding expropriation of land for major projects, the Bill having originally granted the state the right to expropriate land where a development project, declared as a Special Infrastructure Project (SIP), was concerned.

The Bill was passed by the National assembly and recently went to the NCOP for concurrence. Recent reports indicate it was passed.

Most submissions criticising the Bill said that the new proposals completely overstepped the mark on the question of expropriation but minister Patel has now assured all parties that such expropriation, if it took place because of a SIP, would be in terms of existing legislation when it came to the acquisition of land needed.

PICC oversight will cost project

In terms of the Bill, each SIP is to have a steering committee which will put in place time frames; attempt to deal with regulatory delay challenges; address project management and ensure the coordinated issuing of permits and licences but the PICC budget for the particular SIP would have to be funded out of the departmental budgets or those of the state-owned companies responsible for managing a project.

The Bill also gives the stamp of approval to PICC, the body which has adopted the National Infrastructure Plan of 2012 that intends to “transform the SA economic landscape while simultaneously creating significant numbers of new jobs, and to strengthen the delivery of basic services by planning and developing enabling infrastructure that fosters economic growth.”

Expropriation to be as presently defined

But the Bill as introduced into Parliament overstepped the mark on the question of expropriation when it came to ensuring that a SIP became a national priority and the minister has indicated that a new cause has been drafted to make it clear that any expropriation required in terms of the strategic integrated projects will be carried out in accordance with the provisions of current legislation.

Minister Patel told parliamentarians that all thirty written submissions had been received and noted and the Infrastructure Development Bill had, as a result of these public hearings, strengthened the constitutionality of the work of PICC, reduced ambiguity on the subject of SIPs whilst ensuring that public consultation had led to transparency.

He said the Bill was important as it involved some R1-trillion on infrastructure since 2009 and the Bill in giving legal standing to the work of PICC was a “milestone in South Africa’s economic development”.

Environmental impact overlooked by Bill

Another complaint was that despite the fact that, if passed, the Bill would co-ordinate some of the biggest infrastructure projects in South Africa’s history, the provisions  make no reference to the need for infrastructure development to be environmentally sustainable other than a clause acknowledging that the SIPs will still need environmental authorisation under the National Environmental Management Act (NEMA).

South Africa has a comprehensive environmental impact assessment (EIA) regime and the department of water and environmental affairs, over the past five years, had spent time and parliamentary effort to improve, streamline and speed up EIA processes, the minimum period for such clearances going no faster than 300 days for clearance on EIAs as far as NEMA is concerned, under any circumstances, in the national interest.

The idea of PICC being allowed to reduce this environmental clearance to 250 days, or even shorter time frames for mega-projects, has the environmental world in a stir it seems, the shortening process, they say being impossible to manage to and which renders EIAs meaningless.

Environmentalists say that decisions about big projects that will affect the whole nation for generations to come must be made using comprehensive information about social and environmental impacts in compliance with NEMA and this takes time, the minimum possible being 300 days as envisaged by NEMA.

It seems that minster Patel has solved the land expropriation issue but has not satisfied the environmentalists who still complain that in its present form the Infrastructure Development Bill will not achieve its aim as far as fully integrated development in the national interest is concerned.

The Bill is headed for promulgation sometime in the mid year, and was passed before the end of the present session in an extended session of the NCOP.
Earlier articles on this subject:
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-legislates-growth-path/
http://parlyreportsa.co.za//cabinetpresidential/gigaba-answers-critics-infrastructure-build/
http://parlyreportsa.co.za//cabinetpresidential/gigaba-answers-critics-infrastructure-build/

Posted in Cabinet,Presidential, Earlier Stories, Enviro,Water, Facebook and Twitter, LinkedIn, Trade & Industry0 Comments

Infrastructure Development Bill possibly to be altered

Infrastructure Development Bill gets SALGA, BUSA criticism….

The Infrastructure Development Bill, tabled in Parliament during November 2013 just before Parliament closed, has had three days of public hearings, the Bill being an empowerment document for the presidential office to realise the New Build programme for South Africa.

The Bill was published for comment and the hearings over three days represented by an early opening of parliamentary portfolio committee activity. The Bill was tabled by minister of economic development, Ebrahim Patel.

The majority of those presenting before Parliament with submissions regarding the Bill, mainly state utilities and entities such as the Institute of Municipal Engineers, pointed to what many realise is the actual crisis facing South Africa – that of lack of skills at local government level and a lacking of will to get projects even underway, let alone completed, being the main hurdles.

Objectives of Bill

According to the cabinet statement released at the time, the Bill aims to:

•    Implement integrated projects of significance for South Africa and the region
•    Promote public-private partnership making use of private sector skills
•    Set up steering committees for each project
•    Put in place time frames for implementation of strategic integrated projects (SIP)
•    Address project management and regulatory delays challenges
•    Ensure coordinated issuing of permits and licences

The Bill pledges support for the Presidential Coordinating commission (PICC) set up by cabinet in July 2011 to bring together the three spheres of government to drive increased levels of infrastructure development. A number of bodies presenting gave examples of the complete lacking of any knowledge of the maintenance of national assets, particularly an infrastructure project was completed and handed over.

SIPS are to be driven by PICC

PICC interventions will be carried out, it is planned and a number of the presentations to Parliament will go to the PICC as examples of where cross-cutting and mobilisation across all levels of government is badly needed with specific regard to the 18 Strategic Infrastructure Projects (SIPs) identified by the Commission.

Each SIP comprises a large number of specific infrastructure components and programmes. Such infrastructure development is seen as a key jobs driver in the new growth path planned for the country. The new Infrastructure Development Bill is thus the anchor document behind the presidential process, even as far as allowing for the acquisition of land where an SIP may require this option.

Environmental issues “ignored”

In contrast, the constitutionality of, and the need for the Infrastructure Development Bill was questioned in a presentation by the South African Local Government Association (SALGA) who clearly felt “toes were being trodden upon”. University of KwaZulu Natal warned that a clause in the new Bill imposing that any delay process that goes over 250 days will be over-ridden was totally discounted on the basis that an environmental impact assessment cannot be completed within 300 days.

Also Business Unity South Africa (Busa) whilst agreeing with the whole idea of the need to get projects going expressed the view that rather than trying to ‘cut through’ through bureaucratic problems that might be causing delays, the new Bill may add yet another layer of red tape on government project managers and confuse the roles and responsibilities of the three spheres of government.

They cautioned that the department of economic development, with all the goodwill in the world, may add confusion and further congestion and that no amount of legislation could add value to the actual problem; lack of skills at local government level and an inability of one department to talk to another.

Bill driven by ANC to empower PICC

Lack of consultation in the preparation of the Bill was also cited as having been insufficient on the bill but the Bill is known to have the support of the ANC, service delivery and infrastructure build projects that create jobs being their manifesto promise.

COSATU, Telkom and Transnet were all in favour of the Bill in broad principle but most expressed concern that the Bill might add rather than detract from bureaucratic delays and great care that this did not happen, they said.

Telkom also raised queries with regard to the granting of rights to PICC to expropriate land but minister Ebrahim Patel, minister of economic development who was present for most of the submissions, chose not to debate the issue presumably because such matters were separately under debate with other legislation.

There was little disagreement amongst opposition members that minister Patel would have to make considerable revisions to the Bill as presented, particularly on the issue of land acquisition in terms of existing law.

Further reports on this Bill in later meetings have been published for clients and will be posted on this website in due course
Previous articles on this subject
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-legislates-growth-path/
http://parlyreportsa.co.za//cabinetpresidential/infrastructure-development-bill-to-cut-red-tape-2/
http://parlyreportsa.co.za//energy/global-shockwaves-must-not-stop-infrastructure-programme/
http://parlyreportsa.co.za//uncategorized/president-zuma-calls-for-2012-as-year-of-infrastructure/

Posted in Facebook and Twitter, Finance, economic, Labour, LinkedIn, Public utilities, Special Recent Posts, Trade & Industry0 Comments

Infrastructure Development Bill legislates for growth path

 New Infrastructure Bill gives muscle to PICC….

An Infrastructure Development Bill was tabled in Parliament during November 2013 just before Parliament closed which is the empowering document for the presidential office to realise the New Build programme for South Africa. The Bill is published for comment.

According to the cabinet statement released at the time, the bill will aim to:

•    Implement integrated projects of significance for South Africa and the region
•    Promote public-private partnership making use of private sector skills
•    Set up steering committees for each project
•    Put in place time frames for implementation of strategic integrated projects (SIP)
•    Address project management and regulatory delays challenges
•    Ensure coordinated issuing of permits and licences

The bill will also allow for the continued existence of the presidential infrastructure coordinating commission (PICC). The PICC was set up by cabinet in July 2011 to bring together the three spheres of government to drive increased levels of infrastructure development.

Kgalema Motlanthe, deputy Vice-President, said at time,  “PICC interventions are cross-cutting yet targeted, seeking to crowd-in investment and mobilise efforts. We are integrating and phasing investment plans across 18 Strategic Infrastructure Projects (SIPs) which have five core functions: to unlock opportunity, transform the economic landscape, create new jobs, strengthen the delivery of basic services and support the integration of African economies.”

The PICC document describes eighteen Strategic Integrated Projects (SIPs) which have been identified and approved to support economic development and address service delivery in the poorest provinces. The new bill also sets down the requirements for SIPs.

Each SIP comprises a large number of specific infrastructure components and programmes. Such infrastructure development is seen as a key jobs driver in the new growth path planned for the country.

The new Infrastructure Development Bill is thus the anchor document behind the presidential process, even to allow for the acquisition of land where an SIP, one of the sixteen, has  a necessity to acquire such.

The document sketches the integrated approach embarked upon to create an enabling environment for faster infrastructure development and contains key elements of the PICC plan.

Posted in Cabinet,Presidential, Facebook and Twitter, Finance, economic, LinkedIn, Public utilities, Special Recent Posts, Trade & Industry0 Comments

Infrastructure Development Bill to cut red tape

Land expropriation tool….

BS000318Armed with a new tool, the Infrastructure Development Bill, government is hoping to speed up infrastructure projects by cutting red tape; shorten approval times; hit the corruption chain; force quicker decision making; and change the system by which expropriation of land takes place observing correct ground rules.

The new Bill with all of these objectives in mind has been tabled by economic development minister, Ebrahim Patel, and will grant statutory powers to a special Presidential Infrastructure Co-ordination Commission to address project management and regulatory delays challenges; coordinate the issuing of permits and licences; deal with resolution of land servitudes; bring the three tiers of government into better working relationships; improving co-ordination between public entities and improving cooperative governance in an overall sense.

Cracking down on corruption

The Bill was described by President Zuma in his state of the nation address.   He said, “We are cracking down on corruption, tender fraud and price fixing in the infrastructure programme. The state has collected a substantial dossier of information on improper conduct by large construction companies. This is now the subject of formal processes of the competition commission and other law enforcement authorities.”

Minister Patel’s statement, when tabling the Bill, said that “focused project management systems and clear performance dashboards” were being built up so that projects in hand could be monitored. Opportunities for the private sector were now being investigated and a conference would be held by government to bring about such a processes with business and industry.

Constitutional process

On the issue of expropriation of land, the Bill states it is being careful to follow constitutionally accepted procedures but Minister Patel said that bearing in mind expropriation can only occur for a public process, in order to speed matters up the process will be taken as a “given” and where such an action is involved, this will be handled on a “post development basis”, the state taking the risk of losses or losing cases.

The actual workings of the Bill envisage a statutory process led by a steering committee that can override and intervene in statutory matter affecting development, the principle being to cut down on time lag and legal obstacles.

No frills

The Bill is relatively telegraphic in its preamble and simply states the Bill is intended to “provide for the facilitation and co-ordination of infrastructure development which is of significant economic or social importance to the Republic; to ensure that infrastructure development in the Republic is given priority in planning, approval and implementation; and to ensure that development goals of the State are promoted through infrastructure development.

The Bill immediately gets down to the business of forming the Presidential Infrastructure Co-ordination Commission and the first issue to be dealt with under “objectives” is the question of the acquisition of land, making it relatively transparent where infrastructure development delays might have been occurring.

Top team

The makeup of the commission also leaves little doubt on the intent that the Commission has to exercise its powers, its body made up of the President, the Deputy President; ministers designated by the President; the premiers of the provinces and the
chairperson of SALGA.

The President, or in his or her absence the Deputy President, is the chairperson of the Commission and a decision by the majority of the members present at a meeting of the Commission is a decision of the Commission.

The Bill will enable the Commission to tie in various government department to binding decisions. One has to assume that by giving such powers to the commission over the department of public enterprises, all state utilities therefore be subject to common actions.

Posted in Cabinet,Presidential, Energy, Enviro,Water, Health, Land,Agriculture, Mining, beneficiation, Trade & Industry, Transport0 Comments

Sovereign rating time after budget and SONA

SONA and Budget 2013/4 beat the pundits…   

zuma2With budget behind us, the script for the state of nation address (SONA) becomes a little clearer.

At the time SONA wasn’t what was expected and represented to many a total let down insofar as direction, information and inspiration was concerned.   President Zuma’s speech was really quite remarkable for the subjects it didn’t touch upon or skirted around.   Perhaps that’s what happens when a majority party is half way through its current tenure of office.

In all fairness, however, there is so much that is about to happen in South Africa on infrastructure development and so much “in the pipeline”, that there was little the current government could do other than recycle the list of eighteen major projects that the twenty seven government departments and sixteen utilities having been talking about for months, sometimes years, all of which seem in a pretty embryonic stage. The hope is that when it all comes together, it won’t be too late.

NERSA played a trump card

On energy, little was said – in fact practically nothing at all that was not patently obvious such as the fact that Medupi and Kusile are being built. In fact nothing was said on electricity at all, the reason for which was to become evident in the NERSA decision the following week when Eskom’s multi year price determination call of 16% was toned down to 8%.

Dangerous budget

pravon gordhanAlso the following week and following SONA came Pravin Gordhan’s budget with its surprising nil increase on income tax, severe budget cuts, the introduction of carbon tax and an increased fuel levy. Once again the National Development Plan was heavily emphasised and perhaps at last government is going to get on with it with a new presidential infrastructure co-ordination commission to support the initiative.

The Budget was in some ways masterful but still frightens the credit rating agencies, with Gordhan trying to balance the books after an increased deficit over the previous year, something the new government used to pride itself on not needing under finance minister Trevor Manuel – but times change and the global recession arrived.

Executive powers

Interesting for Parliament is the introduction of the draft Infrastructure Development Bill giving extraordinarily wide powers to an all-powerful commission to be known as the presidential infrastructure co-ordination commission, as stated above, with all nine premiers, the President and Deputy President steering the ship in an effort to cut red tape and speed things up.

This can only be good, if only for the fact that the captain of the ship can speak alone to the twenty seven departments and sixteen utilities described above.

Public Service too big

Which leads to the issue of a somewhat bloated public service which has had the benefit of above-inflation increases this year, so it was pleasing to see that a skills audit of public servants is about to be commenced amongst the 1.2m public servants, which in a country of only 51m, is totally disproportionate.

Public Service and administration minister Lindiwe Sisulu told Parliament that the increase of 1% per year in salaries has to be turned into a decrease of 1% next year.

Encouragingly also, planning minister Trevor Manuel (who has but ten staff) has clearly indicated that he is relying on the parliamentary oversight system to beef up his programme to wake up to the National Development Plan.  How well Parliament scrutinizes the national budget in the coming weeks in every parliamentary portfolio committee demanding both value for money and delivery on time, every time, is now the critical issue.

Posted in Cabinet,Presidential, Energy, Finance, economic, Fuel,oil,renewables0 Comments


This website is Archival

If you want your publications as they come from Parliament please contact ParlyReportSA directly. All information on this site is posted two weeks after client alert reports sent out.

Upcoming Articles

  1. MPRDA : Shale gas developers not satisfied
  2. Environmental Bill changes EIAs
  3. Border Mangement Bill grinds through Parliament

Earlier Editorials

Earlier Stories

  • Anti Corruption Unit overwhelmed

    Focus on top down elements of patronage  ….editorial….As Parliament went into short recess, the Anti-Corruption Unit, the combined team made up of SARS, Hawks, the National Prosecuting Authority and Justice Department, divulged […]

  • PIC comes under pressure to disclose

    Unlisted investments of PIC queried…. When asked for information on how the Public Investment Corporation (PIC) had invested its funds, Dr  Daniel Matjila, Chief Executive Officer, told parliamentarians that the most […]

  • International Arbitration Bill to replace BITs

    Arbitration Bill gets SA in line with UNCTRAL ….. The tabling of the International Arbitration Bill in Parliament will see ‘normalisation’ on a number of issues regarding arbitration between foreign companies […]

  • Parliament rattled by Sizani departure

    Closed ranks on Sizani resignation….. As South Africa struggles with the backlash of having had three finance ministers rotated in four days and news echoes around the parliamentary precinct that […]

  • Protected Disclosures Bill: employer to be involved

    New Protected Disclosures Bill ups protection…. sent to clients 21 January……The Portfolio Committee on Justice and Constitutional Affairs will shortly be debating the recently tabled Protected Disclosures Amendment Bill which proposes a duty […]