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Date : 03/11/2005
Source: Department of Transport
Title: Radebe: Free State Inter-governmental Infrastructure Development Summit


  Keynote address by the Minister of Transport, Mr Jeff Radebe, MP at the Free State Province Inter-governmental Infrastructure Development Summit, Bloemfontein

INFRASTRUCTURE CHALLENGES CONFRONTING THE COUNTRY

During the past year I have on occasion addressed Africa's infrastructure strengths, shortcomings and needs at a range of meetings and conferences here in South Africa and abroad, including Addis Ababa. Although my concerns have largely been defined largely by the interaction of the transport dimensions of air, land, seas and rivers, it has become patently clear that the frequent injunction to seek integrated planning and development must move from theory to practice if we are to achieve any of the socio-economic goals we have set ourselves over the years.

South Africa is not unique in the general challenges it faces. One of these is the need to integrate across sectors such as energy, communications, sanitation, construction and transport. Another is the need to integrate planning across and between sectors or spheres of government administration and responsibility without stifling one or the other. In this process it is imperative that we not only allow but indeed encourage local communities to voice their opinions loudly opinions that must range from expressions of wants and needs, to criticisms of how we develop and implement plans and proposals. The instruments of implementation must be subject to the same democratic motivation and responsibility as the planning processes themselves. In a nutshell, development for development's sake, or in the worst-case scenario, development for interests other than those of communities and the search for a better life for all must be avoided at all costs.

I would go further to suggest that infrastructure development in particular is not a socially neutral activity: what we plan, how we plan, where we plan, and how we implement those plans will have far-reaching effects on local communities that we cannot ignore. And so, in the quest for a developmental state approach to infrastructure implementation we must not be dazzled by the brilliance of plans if they do not reflect the legitimate desires of ordinary people. The oft-quoted statement by the great African revolutionary Amilcar Cabral that we should "tell no lies, and claim no easy victories" remains as forceful today as it when he first stated it in the teeth of the anti-colonial struggle of Guinea-Bissau.

Fortunately, we are not at the moment of inventing the wheel all over again when it comes to discussions of infrastructure development in our country. At the macro level, we are guided and assisted by the vision and programmes of action of the United Nations (UN) Millenium Development Goals adopted at the World Summit on Sustainable Development (WSSD) in Johannesburg in 2002, and more recently by the assessments of progress, or the lack thereof, towards achieving these goals by similar summits. Earlier this year, at the South African Transport Conference, I outlined how the African Ministers responsible for Transport and transport infrastructure had agreed in April on a detailed set of proposals to align the whole transport community behind the implementation of the Millennium Declaration Goals (MDGs).

In summary, the programme of action that emerged from that meeting integrates and builds on a number of transport development programmes that are being carried out by countries, regional and continental blocs, including New Partnership for Africa’s Development (NEPAD). The importance of improving, upgrading and expanding transport infrastructure and services is key to success. But we identified in particular "the eradication of physical and non-physical barriers along transport corridors, maritime ports and inland waterways" and the need to pay attention to "enhancing the access of rural and remote areas to markets, inputs and social services." Critically, the continent is also committed to the principles of good governance in all its aspects, from procurement, through resource mobilisation and the effective management of activities, regulation, and provision of affordable services.

We believe that we can meet a range of practical steps by 2015. These include the need to halve the proportion of people in rural areas who live beyond 2km from an all-season mode of transport; to cut in half the difference in transport costs within Africa as compared to Asia; to provide safe and reliable transport to learners and school kids in rural and urban areas; affordable access for all households everywhere to access to health and medical facilities; to ensure adequate access in times of natural disaster or emergencies.

We need to halve the number of road accident fatalities; radically improve environmental sustainability, secure an end to the use of leaded petrol; to dismantle physical and no-physical transport barriers to shorten journey times, customs clearance and border delays; reduce by half the transport costs of landlocked and transit countries; to place axle load limits and harmonise technical standards across regions; actively promote gender as an integral component of all transport policies and programmes; and to ensure compliance with and adherence to all international conventions on safety, security and trade facilitation.

We also committed to a shorter timeframe, 2010, when the transport sector should cease to be an agent for spreading HIV/AIDS. A moment's reflection on the above list of tasks should reveal that South Africa is well placed to meet most if not quite all within the set timeframes. We often we talk frequently about "South Africa" almost as if it is a monolithic unit. But let us not forget that when our Constitutional Assembly discussed the thorny question of provincial powers, responsibilities and, critically, boundaries and territorial subdivisions within provinces, it did so in the shadow of uneven apartheid development and the glare of huge disparities in our own country that are more easily discerned as the differences and divisions between our first and second economies.

It is in this context, then, that this Free State Province Inter-governmental Infrastructure Development Summit has its place. As the Premier has already outlined, the main task of your two days of deliberation is to locate the specific needs of the whole Free State region within the nation's integrated development framework, using the limited resources you have to the best opportunity for the good of all.

In order to do so, your discussions will focus on a number of critical questions too that will influence your practical conclusions one way or another. Let me suggest just a few examples. Does wealth create roads, or in this case infrastructure; or do roads actually create wealth instead? Although this is something of a "what came first, the chicken or the egg?" type of question, it is pertinent because it requires us to reflect on the role that infrastructure such as roads, play in the development agenda and programme of communities at large, and in so doing to find sustainable solutions to the challenges that we face as a country in developing and maintaining our infrastructure. To make sure, to summarise, that we don't become dazzled by the brilliance of our plans as I outlined earlier.

It has become a truism that infrastructure is vital for the achievement of economic growth and social development objectives of any country. This view is now supported by organisations like the World Bank, in its World Development Report: Infrastructure for Development, for example and it has reaffirmed that there is a strong association between the availability of certain infrastructure - telecommunications, power, paved roads, and access to safe water - and per capita Gross Domestic Product (GDP).

Looking around South Africa, and for those living with their eyes open, know that it does not take rocket science to notice the clear link between remoteness of communities and high levels of poverty, including access to basic infrastructure. It also seems clear that not only is inadequate infrastructure a major barrier to growth and poverty reduction but infrastructure development in itself is necessary for growth and development. The challenge of remoteness of communities puts a further cost pressure in the provision of infrastructure and service delivery. But, and this is an important but, the question then becomes, what is the most appropriate form of infrastructure development that is needed to overcome the internal barriers to a better life for all our people? Similar questions must be asked, too, of how the urban poor and marginalised must be integrated with the urban privileged and those who do have access to resources.

There are a number of issues here too that delegates must keep in mind. There are at least two which in many ways are two sides of the same coin. The one relates to the costs of doing business in our country in general; and the other, frequently ignored by those who should know better, relates to the social costs of living and impediments to human development for ordinary people.

Inadequate and inappropriate provision of infrastructure contributes negatively to the social development and economic growth of a country by lowering the competitiveness of the country because of high transport and transaction costs. We all know that the competitiveness of a country, a region or sub-region is one of the indicators for investors when they make their investment decisions.

The provision of infrastructure encourages investment, allows for wider movement of people and goods, better flow of information and investments and facilitates the diversification in the economy. The existence of adequate rural infrastructure is a requirement for successful rural and agricultural development. But again the question of appropriate investment must be raised. Just two rhetorical questions: whilst a highway that shortens the travelling time between major centres may do wonders for businesses in those centres, what about the smaller towns and villages that are now by-passed? Or, if a major irrigation scheme is designed to boost the export of agricultural products but results in the displacement of people, how are the supposed statistical benefits translated into improvements in peoples' daily lives?

A number of challenges arise from a consideration of these issues, and most of these require more active interventions than we have done till now. One of the ways to overcome the problems is to go beyond the promotion of integrated infrastructure planning to the actual conduct of integrated infrastructure planning. In reality we should not be posing this as a proposal, but should in fact be reflecting on how well we have done ever since we have been advocating integration at this level. But the difficulties we face at all levels of administration and particularly at a local level cannot simply be wished away.

I am sure the summit will agree on a practical way forward to improve spatial planning of the regional and local economies, to address the outcomes of skewed policies of the past on human settlements, the challenge of urban sprawl of the past decade as well as appropriate investment informed by growth potential of our space economy. We must recognise that much local unhappiness that sometimes spills into frustrated anger most of the time is the result not of mischief but of an all-too-human rebellion against deprivation and poverty. We in the African National Congress (ANC) have been there, we know the symptoms, we cannot sidestep our own responsibilities in this regard.

This Summit will no doubt also address very local and regional issues such as how to incorporate the experience of, for example, the goldfields District of Lejweleputswa which has been experiencing negative growth rates, at -4%, due to mine closures, within the province's macro plan to achieve growth rates of over 6%. As we are all aware, targeting of infrastructure provision during the life of the mine is usually for the sustenance of mining activity with very limited connectivity to surrounding towns or deliberate planning to meet the needs of the poor. With the closure, access becomes expensive and unsustainable posing a challenge for the municipalities as to how continue providing water, sanitation and electricity without the economic ability of the population to pay or the local authority to maintain the infrastructure.

Another related challenge is with regard to forward planning and the design of major infrastructure programmes. Requisite planning times for economic infrastructure often require at times up to ten years of lead-time before such projects can be implemented. If we, in the infrastructure sector in particular, do not plan for expansion the country, will not realise the kind of sustainable growth that will support the realisation of sustainable livelihoods for our people.

I believe that part of the answers for some of these questions are in the development of spatial development plans for the national, provincial and municipal space economy. Such plans are critical in isolating and targeting interventions that will allow the province and its regions/district to develop in areas where they have competitive advantage whilst ensuring that the necessary complementarities are built for comprehensive service delivery.

A recent report, particularly in Engineering News for example, closely linked to planning is the question of capacity to deliver, including the technical engineering skills. We all have responsibilities to beef up our capacities in this regard, not only rely on Sector for Education and Training Authorities (SETAs). The points I raised earlier indicate improvements in infrastructure delivery that are underpinned by increases in investment on infrastructure both by public and private sector. However, more needs to be done and can be done. A quick glance at government's spending trends over the past few years as well as the recent Medium Term Budget Policy Statement the commitment our government has in investment in infrastructure, with the increases we see.

These include an amount of R78,3 billion is added to governments spending over the next three years. The bulk of this goes to housing and municipal infrastructure relative to social services, justice and police services. Allocations of about R42 billion over a five-year period were made for the refurbishment of transport infrastructure and operations under the State Owned Enterprises in last years budget allocations.

At provincial level, allocations for transport infrastructure alone have been growing by an average of 11%, though accounting on average for between 4 and 5% of provincial expenditure. Allocations for infrastructure development to municipalities have also been growing strengthened by the implementation of the Municipal Infrastructure Grant.

However, there is still a challenge of finding alternative funding sources for local infrastructure delivery projects that are still heavily reliant on fiscal allocations. Most of our municipalities across the country, with the exception of the metropolitan ones, do not have strong economic bases to generate own income, which together with equitable share and grant funding allocation must comprise revenue for service delivery.

We need more private sector involvement to expand sources of revenue for municipalities as well as improve service delivery efficiencies. But a worrying trend, deserving of attention in this conference, is that of spending inefficiencies. This is evidenced by roll-overs and under expenditure in infrastructure projects. Expenditure trends across the spheres of government and at municipalities indicate that even with insufficient funds being allocated for infrastructure. It goes without saying that we interrogate our service delivery models to see how and where improvements can be effected to ensure that services budgeted for are actually provided to the people.

Provinces will shortly engage with the Department of Transport on the provincial and more local dimensions of the National Freight Logistics Strategy, the National Household Travel Survey and, early in the new-year, the Integrated Rural Transport Strategic Framework. Alongside reviews of the Extended Public Works Programme, and the Municipal Infrastructure Plans, the basis has been laid for concrete and constructive work to proceed without delay.

The increase in fiscal allocation of infrastructure has created a positive environment for creation and expansion of infrastructure. Central to our thinking must be how we manage to stretch our limited resources to rehabilitate existing infrastructure whilst developing new projects. Delayed maintenance of some of our stock of infrastructure, for example tarred roads, often in a ten-fold increase in the cost of rehabilitation at a later stage or even more if reconstruction becomes necessary.

The meaningful empowerment of our communities, small businesses and emerging contractors must remain part of our strategies as well. Labour intensive construction methods work well and must not be restricted to the public works department alone. Skills-training is necessary in ensuring that our people are gainfully employed during the construction phase of projects and are also provided with skills that improve their marketability post-project participation. My previous deployment as Minister of Public Works makes me very aware of the challenges and difficulties associated with achieving these goals, but I believe that they must be pursued, not as a panacea to the larger problem, but as a contributor to change.

Infrastructure investment on its own is not sufficient to generate sustained increases in economic growth. The demand for infrastructure services is itself sensitive to economic growth, which is notoriously difficult to predict. The efficiency with which infrastructure services are provided is also a key to realising potential returns. Overcoming these challenges is therefore a must if infrastructure is to play a critical role in social and economic growth.

Finally, ladies and gentlemen, I do not want to pre-empt any of your discussion, and so will conclude only to remind you that it is surely not necessary to re-invent the wheel. Locate your discussions within the frameworks that we have developed through thorough consultation, but do not feel shy to interrogate these from the local perspective. I am more than confident that the recommendations and proposals that the summit will raise for the transport sector, for example, will be thoroughly considered by all concerned. And I am sure the same holds for all infrastructure departments as a whole.

With those few thoughts, please allow me to wish the summit every success.

Thank you.

Issued by: Department of Transport
3 November 2005

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