Construction World November 2017

"Both the consulting and construction industries have been affected by

behind schedule, such as the regulation of minibus taxis, roll out of IPTN/BRT systems, and light rail. What will the impact of this be? This may well lead to economic stagnation, socio-political dissatisfaction, service delivery protests, infrastructure failure (e.g. wastewater treatment), roads serviceability problems and power issues. Does government have a masterplan for rapidly escalating urbanisation? There are plans in place for each of the metros, but they do not all share the same level of success. The broader National Development Plan touches on this, but the current progress and status of the roll- out is currently unknown. How is procurement of consulting services doing in the current climate? Recent changes to the Preferential Procurement Regulations have made conditions restrictive. In terms of delivery there are delays in getting the procurement process going, and delays in appointments. Capacity within many authorities is limited, resulting in poor project scoping and documentation, required levels of compliance are high, not to mention some of the high profile revelations of corruption and fraud. All of these are costly for the industry. In general the market is considered to be quite volatile at present. Slippage and cancellation of projects are becoming more common. Given current procurement practices, based on price and BBBEE, there is increasingly very little focus on quality/competency, which in the long run will be costly to clients as well as the taxpayers of South Africa. How can this be improved? Skilled technical personnel to be involved in the procurement process. In addition, the process needs clear and consistent procurement practices. There are instances where legislated procurement practices are not applied consistently. Where is the activity in the rest of Africa? There is continued activity in East Africa: Kenya, Uganda, Rwanda, Tanzania, Ethiopia, as well as West Africa: Ghana, Ivory Coast, and Senegal, with Nigeria showing signs of recovery. Activity includes power, oil and gas, transportation and infrastructure related to urbanisation. Is South Africa still a major player in infrastructure development on the continent? With many global firms moving into Africa in both the consulting and contracting arenas, less so. In addition, one of the most significant aspects remains the Chinese links into Africa. How does industry assist the government in improving systems and speeding up processes? This is done through secondment of personnel into government to raise skill levels and assist in delivering projects. In some quarters this has been welcomed but in many areas this has not been taken up. In addition, this is done though the transfer of skills and knowledge from industry. This needs to be rolled out on a larger scale: For example, government employees working within businesses will obtain experience and on-the-job-training.  transformation, local participation, community involvement, more complex delivery, lost skills, and the fact that there is just not enough work at present."

A recent project that AECOM was involved in: Construction of Boy Retief Bridge. Formwork is being placed for construction of new bridge deck, the realignment of the road will be undertaken once the bridge is completed.

government-to-government level. The entities involved in the design and construction are, to a large degree, subsidised and funding is often part of the project package. Is there anything on the horizon in South Africa that will help to change the situation? There are a number of projects that are in the planning stages that will make a significant impact on the status quo. But, in unlocking these opportunities, key stumbling blocks will be funding and the capacity to deliver these projects. There also needs to be alignment (political will and leadership) to deliver mega projects. How has the current status quo changed the industry from 10 years ago? Even though it was the start of the global recession, the current financial outlook was much stronger a decade ago: South Africa had secured the 2010 World Cup and significant infrastructure spending associated with that was being undertaken. To achieve the targeted 3-5% growth targets to improve the South African economy, the level of infrastructure project roll out post the 2010 level must be maintained. There has been a change in the consulting industry over this time with the globalisation of businesses, which has resulted in smaller/ medium sized consultancies being created as many of the larger entities were acquired by global companies. In the construction sector there is not a lot of work now, which means tighter margins, and a more competitive industry as a whole. Both the consulting and construction industries have been affected by transformation, local participation, community involvement, more complex delivery, lost skills, and the fact that there is just not enough work at present. What is the status of infrastructure construction in South Africa? SANRAL’s biggest challenge is source of funding, specifically around e-tolls, which has affected the roll out of Phase 2 of GFIP. Transnet is also facing funding issues with significant capex being curtailed, which is related to demand and resources prices. The Eskom coal fired power station roll out continues, whereas renewables/IPP seem to have been curtailed and put on the back burner. The nuclear programme also appears to be in question in some quarters. In general there are concerns around operation, maintenance and capacity upgrades of water supply and water/wastewater treatment infrastructure. From the roads and bridges maintenance and upgrading point of view, there is a known backlog with long term underspending on these assets which should have supported economic growth. In many instances public transit initiatives are

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CONSTRUCTION WORLD NOVEMBER 2017