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Date : 02/08/2004
Source: Department of Public Works
Title: S Sigcau: Opening of R61 and T158 roads


SPEECH BY MINISTER OF PUBLIC WORKS, MS STELLA SIGCAU, DURING THE OPENING OF ROADS R61 AND T158, EASTERN CAPE PROVINCE, Port St Johns, 2 August 2004

INFRASTRUCTURE AS CATALYST FOR JOB CREATION AND POVERTY ALLEVIATION

We are here today to celebrate the birth of a road that we see as a catalyst for the further development of the communities of Pondoland and the greater part of the Eastern Cape Province.

We are doubly blessed because this occasion is not just for the opening of one, but of two roads, which will in years become so much a part of our lives we will wonder how we ever lived life without them.

Many of us know the time it took to travel from one end of the road to another before this road was upgraded. Others remember the cost to their properties and businesses as the gravel road accelerated the ageing of their vehicles and dust spoiled the merchandise in the various businesses. Today we are reaping the fruits of development, as this new road will save us time and money. Most importantly it should bring us new opportunities as tourists instead choose to travel on this beautiful infrastructure.

Indeed I want to stress today the critical role that infrastructure occupies in the economic development of communities but also of countries, the role infrastructure plays in the economic emancipation of continents but also of sub-regions such as the Southern African Development Community (SADC).

I also want to stress the critical role that infrastructure such as roads plays at a broader level in the creation and perpetuation of civilisations.

It is said that the modern state of the Roman road network enabled the Romans and their armies to mobilise faster, travel quicker and conquer nearly the whole of Europe, Asia and North Africa. Their superior military tactics were greatly assisted by advanced and sophisticated infrastructure.

First of all what is infrastructure and how does it affect our lives? The National Infrastructure Investment Report, a report government commissioned after liberation in 1994, indicated that South Africa faced a backlog in infrastructure of at least R170 billion. In other words for South Africa to be on par with other developing countries, the new government in 1994 had to find innovative ways to build infrastructure including houses, schools, hospitals, clinics, roads and others. Other economic infrastructure such as dams, bridges, airports and ports were improved to cope with the increasing traffic in human and trade activities as South Africa was accepted into the international arena and our country became one of the preferred tourist destinations of the world.

I am saying "innovative" because remember when the ANC took over in 1994 it inherited a multi billion Rand debt from successive apartheid governments. With hard work and innovation, this government managed in less than 10 years to drastically reduce that debt. Today government can boast of a people- friendly budget that allows the state to intervene in poverty alleviation measures such as old age, children and disability grants. Feeding schemes in our schools and free basic services such as water and electricity are the indicators of this government's compassion for the people but also its prudent management and leadership abilities.

In 1994, our rural areas presented us with the best illustration of the backlog that we are talking about today. A study by the University of Potchefstroom in the North West province concluded very strongly that underdevelopment tends to be closely associated with a lack of basic infrastructure. The study found a negative correlation between economic development and absence of infrastructure.

In our own department we estimate that in the coming years we will have to find close to R13 billion in order to take care of the very existing infrastructure of government. This forms one of the mandates of the Department of Public Works which is to manage the life cycle of state owned fixed properties including public infrastructure such as police stations, prisons, courts of justice and many government offices which render essential services in the mould of home affairs, trade & industry and labour. I am giving you this background so that when we talk of the backlog in infrastructure we all appreciate the enormity of the task ahead of us.

We know that many millions of people are surviving below the minimum living level in South Africa. Of these several millions live in rural areas of the Eastern Cape, KwaZulu-Natal, Free State, Mpumalanga and Limpopo. Government is committed to basic levels of infrastructure development, for instance in water availability, sanitation, access to schools and clinics, road development and energy provision. All of these will reduce the burden of poverty in rural areas, and allow rural people to use their time more productively and so contribute to national growth.

Talking of national growth let me demonstrate what I mean. Today we are officially opening two roads, namely Road T158 stretching from road R sixty-one (R61) to Bambisana Hospital as well as road R six one (R61) from Ntafufu to Lusikisiki. Total costs for both projects amounted to one hundred and twenty five million, two hundred and sixteen thousand Rand (R125 216 624). This is the money the government invested in the hand s of private sector to boost economic activity including growth and create jobs.

During its construction, the thirty six million rand (R36 274 378) T one five eight road (T158) created 336 job opportunities of which 138 went to women and 194 to youth. There were also four (4) disabled people on the project. Seventy four (74) of those received ABE Training in construction management (13) and introduction to civil construction (61). The finished road is expected to:
* Improve all weather access to Bambisana hospital from both the Lusikisiki and Port St. Johns ends
* Connects numerous villages and communities 500 km regions north west of Lusikisiki
* Reduce inaccessibility often brought by wet weather and flooding
* Reduce roads accidents caused by bad road conditions
* Establish a new soccer field adjacent to the road using donated (unused) material

On the other hand, the construction of the R six one road cost in total eighty eight million and nine hundred and forty one thousand Rands (R88 941 857) and yielded six hundred and forty job opportunities to among others women (289), youth (347) and the disabled (4). Two hundred and thirty two (232) people received ABET training in concrete block making, gabion construction, laying storm water pipes, construction of catch pits and head wall fencing as well as construction management. One hundred and forty three (143) of them were women.

Future and other anticipated impact of this project include:

* Improved and safer facility for local communities and the province
* Socio-economic corridor improvement for access and deliveries for business and tourism (commerce)
* Development of emerging contractors
* In terms of linkages, the road will improve access to Agate Terrace, Poenskop, and farms along northern banks of Umzimvubu River and several communities and villages

Accelerated economic growth associated with stronger employment creation is the key to continued progress towards an equitable distribution of income and improved standards of living for all. Employment creation provides a powerful vehicle for redistribution, as it is embodied in government programmes such as housing, water supply and sanitation, health, education, welfare social security services and expanded public works programme (EPWP).

Expanded Public Works Programme is a government-wide initiative to facilitate and create employment opportunities for the poor, vulnerable and alienated groups through integrated and co-coordinated labour-intensive approaches to government infrastructure delivery and provision of other services.

The 1995 Framework Agreement between business, labour and government on conditions of Employment and Skills Development provided a foundation for an expanded Public Works Programme. This agreement took recognition of the fact that infrastructure development is a key driver of economic growth and social development with outcomes that lead to job creation, poverty eradication and income generation through an approach of labour-intensive methods of construction, development and maintenance

Provinces and Municipalities will set aside fifteen billion Rands (R15billion) out of their allocation by the Department of Provincial and Local Government for conditional infrastructure grants over the next five years.

We are in constant contact with the provinces and municipalities, which are the implementing arms of the EPWP.

The construction sector will receive the biggest boost from the Expanded Public Works Programme, which was launched in May this year by President Thabo Mbeki.

The potential for the construction industry is huge. Japan's construction industry is the second largest in the world and contributes approximately 15% of Japan's GDP. In China it is about 10% while our construction sector contributes less than 5% to GDP. It is hoped that policy interventions, the industry's initiatives and the opportunities such as the Soccer World Cup in 2010 and the hosting of the Pan African Parliament will stimulate growth in the construction industry and help it to realise some of government's socio-economic goals.

Our challenge lies in an increased ratio of delivery of infrastructure and services with a strong emphasis on job creation, promotion of small, medium and micro enterprises, human resource development, capacity building, community participation and institutional development.

I Thank You.

Issued by: Department of Public Works
2 August 2004

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