Issued by: Office of the Deputy Presidency
24 April 2001
Chairperson,
Ministers and MECs
Members of Parliament
Representatives of the Diplomatic Corps
Leaders of the Construction Industry locally and from other SADC countries
Distinguished Guests
It gives me great pleasure to be with you this evening, to witnesses the culmination of an inspiring process that has engaged the entire construction industry.
The launch of the Construction Industry Development Board (CIDB) tonight commit themselves to change that is pivotal to the growth and competitiveness of our economy.
It is the kind of process that brings life into our task of democratising society and gives meaning to the concept of "Unity in Action". For democracy to be sustained and enhanced it is important that the economy of the country grows. The construction industry is usually a key indicator of economic activity.
It is appropriate that tonight's launch of the CIDB coincides with a regional conference on "Developing the Construction Industries of Southern Africa", as this conference is part of the related process of enhancing the Millennium Africa Renaissance Programme.
The establishment of the CIDB, together with the resources necessary for its operation, is critical because the construction industry is central in the delivery of basic infrastructure. The CIDB Act equips the CIDB with statutory functions and instruments to drive implementation and to promote the outcomes that we want.
Through the Task Team process we have developed this law together, and I would like to summarise some of the objectives, which we all believe are fundamental to the CIDB's purpose:
The CIDB Act empowers us to fulfil these objectives through the various instruments such as the Register of Contractors and the Register of Projects. It empowers the Board to enlist the broader expertise of industry through the establishment of a Stakeholder FORUM.
The CIDB will be funded by the Department of Public Works and will have a first year budget allocation of 11,5 million Rand. Projections anticipate that this may rise to approximately 20 million Rand by its third year of operation, when its capacity and business operations should begin to peak.
To ensure that the public is receiving value for this financing, the Act entrenches Government's right to carry out independent evaluations of the CIDB's impact on Construction Industry Development - and from time to time we will do so.
Ladies and Gentlemen, the establishment of the CIDB is the beginning of a new phase in our epic journey towards construction industry development. Our launch of the CIDB is more than just a celebration, it is a display of our commitment to deal with the challenges ahead.
There is a lot that still needs to be done and we do not have time to waste. We therefore need to move swiftly to establish concrete targets for performance improvement in terms of such indicators as:
We must also establish targets for improved public sector delivery management. The public sector needs to seriously look into shortcomings such as the slow processing of payments for work done, which affects small and medium enterprises which need constant cash flows. We need to establish realistic, but definite targets for remedying this situation.
To achieve these objectives will require the full support and participation of clients and investors. A vehicle for achieving this should be the establishment of a Client Forum by the CIDB, through which we can determine client, investor, and financier expectations of the industry - and mobilise the support.
These are some of the immediate challenges from the perspective Government. Concrete improvement targets will enable all of us to measure the performance and value added by the new CIDB.
Ladies and Gentlemen, in establishing the CIDB, we have arrived at base camp. Our partnership is intact but the mountain of implementation looms before us. Together, we must pursue the systematic industry development and improvement path that we have mapped out. We must do so in a way that ensures benefits to investors and clients of the industry, industry participants and South African society in general, through the strong economic multiplier effects of construction.
In negotiating the route ahead, we will rely on the CIDB for guidance and direction. Our success depends on the input and support of all role-players. Together we will succeed.
I thank you.