Electricity and Control January 2024

WRITE @ THE BACK

Maintaining South Africa’s infrastructure – a public-private approach Dr Chris von Holdt, Director Asset Management at Zutari, a leading consulting engineering and advisory firm, here emphasises the critical importance of maintaining infrastructure, South Africa’s biggest asset.

O ur national infrastructure, which carries an asset value of trillions of rands, is owned by all South African citizens and can either support or hold back the economy. South Africa does not have the money to let infrastructure break and then fix it again, so it is critical that we understand that prevention is better than cure. The South African Institution of Civil Engineering (SAICE) 2022 Infrastructure Report Card for South Africa gave the country a ‘D’ grade, the lowest on record, indicating that most of the country’s infrastructure is ‘at risk of failure’ or ‘unfit for purpose’. Economic and social infrastructure such as water, sanitation, roads, health, and education continue to deteriorate across our provinces, cities and towns. We have seen maintenance delivery fail nationwide. It is clear we need to adopt a different approach in managing our infrastructure to that we have followed so far. South Africa, as a country, needs to balance the money and attention we are giving to building new infrastructure with the need to look after what we already have. I believe we will benefit from a national approach, and that the private sector can manage the complexity and apply the controls needed for correct execution, effectively. The current maintenance challenge is an opportunity for us to create jobs. We can advance the skills of people practically, through structured training, and build local businesses with effective supplier development programmes. This is being done in small pockets of success but needs to be done at a national scale. We are spending money on infrastructure, but we need to make sure that what we must spend is spent wisely. Minister of Public Works and Infrastructure, Sihle Zikalala announced in May 2023 that the department has a budget of R8.782 billion for the 2023/24 financial year. It is the department’s mandate to oversee the implementation of infrastructure projects to stimulate economic growth. Infrastructure South Africa (ISA) has completed R21.4 billion worth of projects to date, mainly in the roads, energy, and human settlement sectors. There is R313.5 billion worth of projects currently under construction and R295.2 billion worth of projects in procurement. In addition, R300 billion worth of green hydrogen projects are in the pipeline; the first feasibility reports were anticipated by end 2023. South Africa is rolling out the largest programme for the procurement of renewable energy and resource efficiency in Africa – the Integrated Renewable and Resource Efficiency Programme (iREREP). However, Minister Zikalala noted: “As a country, we cannot always be building. We will introduce innovative approaches to ensure that infrastructure maintenance, by

all spheres of government, is proactively planned and that budget ringfenced for infrastructure is spent on what it is earmarked for.” Research has shown that proactive and preventive maintenance provides a positive economic return on investment and is labour intensive, which represents low hanging fruit for the country, suffering from unreliable infrastructure and poor performance problems as well as high unemployment. At Zutari, with our asset management capability, we add value to many of the largest asset owners on the continent. Our experience has shown that managing existing infra structure requires a systematic and sustained effort, under pinned by technical capacity and tight management con trols – and this is why I believe a national-scale programme that leverages private sector capability is urgently needed. It is evident that government in general, and local gov ernment in particular, has struggled with the implementa tion of effective maintenance programmes and the likeli hood that this situation will improve in the near term is low. The private sector requires basic infrastructure to be in place and to be properly maintained for it to operate and grow the country’s economy. Mining, for instance, has recently seen substantial revenue losses due to the current dysfunctional logistics network. The situation can be turned around with the application of expertise and technical capacity that exists in the private sector, but we need a strategic approach, led by government, and we need to take action. As part of its contribution to develop a skills pipeline for the industry, Zutari runs a graduate programme that brings in 120 to 150 graduate engineers a year. We are committed to nurturing young talent, assisting young graduates to obtain their professional certification and encouraging them to have a positive impact in shaping the future as engineers.

Dr Chris von Holdt, Director Asset Management at Zutari.

For more information visit: www.zutari.com

32 Electricity + Control JANUARY 2024