Billions pumped on public transport, energy

Wednesday, February 22, 2012

Cape Town - The government plans to speed up the expansion of the country's mega infrastructure programme by continuously increasing the budgets for rail transport, energy and communications services.

Finance Minister Pravin Gordhan announced during his Budget Speech that these sectors are to get a combined budget of R84 billion this year, with this expected to increase to R98 billion in the next three years - in line with the country's infrastructure programme unveiled by President Jacob Zuma in his State of the Nation Address.

Gordhan said the transfer of public transport services to metropolitan areas will be phased in to allow for a better, more integrated public transport network, including rail and bus rapid transit systems.

He said an additional R4 billion will be given to the Passenger Rail Agency of South Africa to begin purchasing new coaches. The agency also receives R1 billion to build three depots and upgrade signalling in Gauteng, KwaZulu-Natal and the Western Cape.

The move is expected to go a long way in addressing the country's struggling rail services which are in a dire state due to age. A Cabinet-approved programme to replace the current fleet of passenger trains will be phased in over 20 years.

State-owned satellite company Sentec will receive funding over the next three years towards ensuring a successful migration from analogue to digital television.

In energy, an addition R4.7 billion will be allocated to Eskom for the installation of one million solar water geysers while R600 million goes to municipalities to install energy lighting equipment. R300 million will be set aside to electrify informal settlements.

Gordhan said the focus over the next few years will also be on managing demand for energy to address the impact of limited supply until Eskom completes its capacity generation programme.