Cape Town – The New Build Programme, led by state-owned enterprises, has to date created thousands of jobs.
Transnet and Eskom are set to invest billions of rands in infrastructure programmes in a bid to create an enabling environment for private sector investment, bolstering localisation and supporting small and medium enterprises.
This came out when the Department of Public Enterprises briefed their Parliamentary counterparts to account and give progress on the impact of the Build Programme as far as support to small businesses, skills development, job creation and beneficiation is concerned.
Matsietsi Mokholo, the department’s Acting Director General, said the Build Programme has also helped government address infrastructure backlogs that have hindered investment in the economy.
“The state of our electricity, ports and rail infrastructure is a clear sign that there has not been enough investment in our infrastructure and we have had to play catch up.
“The Build Programme has been helping us do just that."
Eskom powered up to create jobs
As part of the Build Programme, Eskom has since 2005 been expanding its generation and transmission capacity to meet the country’s growing demand for energy.
In his State of the Nation Address (SONA), President Jacob Zuma said electricity supply security is a catalyst to growth and job creation.
Makgola Makololo, the department’s chief director responsible for energy, said Eskom has contributed to its developmental mandate through the creation of direct and indirect jobs.
While the direct jobs have been created within the power utility’s business environment, the indirect jobs have come from contractors servicing Eskom, especially through the build projects.
“Over the past three financial years, Eskom suppliers have committed to create 7000 jobs and retain 700 jobs when they are awarded a contract.
“As a direct result of Eskom business in the New Build projects, there were 24 251 jobs created by suppliers in Medupi, Kusile, Ingula and Power Deliver Project at the end of December 2014,” she said.
She said Eskom had set a target to create more jobs through the New Build Programme in its corporate plan – 16 334 in the 2014/ 15 financial year, 8 317 in 2016, 4 750 in 2017 and 2 000 in 2018.
Makololo told MPs that Eskom’s contribution to industrialisation, the programme has had a significant impact in local development as a result of the New Build Programme through the Competitive Supplier Development Programme (CSDP), which encompasses the supplier’s investment in manufacturing facilities.
“Three major New Build vendors – Hitachi, Alstom and Voith Siemens have committed to a target value of R1.4 billion in terms of local development plans.
“These commitments are specific to the Boiler, Turbine as well as the Generator Packages.
“Since the inception of the Competitive Supplier Development Programme in June 2008, the total actual investment in plant by Eskom’s supplier network has been R1.12 billion, which is 82% of the R1.37 billion committed value over the life of the respective contracts,” she said.
Transnet on track to create half a million jobs
Transnet - in a bid to contribute to skills development, job creation, localisation, empowerment and transformation – has set a goal to roll-out a capital investment programme over a seven year period.
Kgomotso Modise, the department’s Deputy Director-General responsible for transport, said with the vision of moving freight from the road to rail, while the investments will go towards ports and pipeline infrastructure, a bulk of it will go towards rail.
She said most of these projects would be fast-tracked as part of Operation Phakisa, a model which President Zuma introduced in June last year to fast-track the delivery of services in the oceans economy and in clinics as part of the first two phases.
Modise said Transnet aimed to create R1 million jobs by 2022.
“Transnet will create approximately 540 000 direct and indirect job opportunities over the next seven year period.
“Through the build programme, procurement spend will be leveraged to increase localisation and therefore maximise job creation.
“In addition, it is also expected that another 480 000 job opportunities will be induced through Transnet spend.”
With an overall investment of R1 billion per annum to be spent on training over the next seven years, Transnet will train 3 000 artisans and 1 600 engineers over the same period. – SAnews.gov.za
