InfrAstructure & Development - Trademax Publications

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Infrastructure development PPC CEO calls for infrastructure CODESA Ketso Gordhan, CEO of the leading supplier of cement in southern Africa, PPC Ltd., has called for the creation of an infrastructure negotiation body similar to that of the Convention for a Democratic South Africa (CODESA) as a critical step to kickstart implementation of much needed infrastructure development in South Africa. “It is clear that infrastructure bottlenecks by both the public and private sectors need to be addressed, not through agreeing to generic accords but rather through implementable plans with clear roles, responsibilities and deadlines. The methodology is simple. Before 1994 people wanted a democratic South Africa. The National Party and the ANC both raised issues that were preventing them from moving forward in this regard. So, they put together a working group on each of those issues and came back with solutions. All the things that we see today were compromises that emerged from discussions and negotiations,” said Gordhan. Speaking at an International Project Finance Association (IPFA) event in Sandton, Mr Gordhan was adamant that negotiations between the national government and the private sector would substantially increase the number of infrastructure developments completed. “Moves like this are where we can make the most significant impact on our global competitiveness as a country. We continue to score poorly in the World Economic Forum’s Global Competitive Index and we have to come to terms with the fact that we cannot boost the competitiveness of our economy, boost sustainable infrastructure growth and boost job creation by doing more than agreeing to the ideals of a plan,” he said. By getting the national government and private sector together in one room, Gordhan said that many problems currently facing the industry would be solved. One of the biggest issues government has is that they believed they overpaid on previous public–private partnerships (PPP). “Let’s use the prison example. Government had a description of the sort of prison it wanted to have; if you had a look at the description it looked like a 5-star hotel. Instead of the private sector coming back and saying that it is not very functional, now we have something that is way too expensive. It costs us around R75,000 a year for one prisoner per year; a pensioner gets R1,200 a month. If you weigh up those two things; here is a guy who has done something wrong so we lock him up. Ketso Gordhan, CEO of PPC Ltd. The reality is it is costing us that much money each year, it just doesn’t sound right,” he said. Regarding previous sectors in the PPP arena, Gordhan believes there are three reasons why success has been experienced in the last 15 years. Firstly, it was due to a strong political will to get the job done. “If there is a strong political will to get something done, the chances of success are much higher. We saw that with the Gautrain project; it was because the MEC, Premier and the national government really wanted the project to get done,” he explained. Secondly, the existence of strong officials on projects was crucial. “They knew how to get the decisions through the various mechanisms in government, how to interact with the private sector, and how to get the best advice to make things to happen. A strong official makes a huge difference.” Gordhan believes that the third reason was the combination of all of these and the existence of a very simple transparent process with a clear allocation of risk. “If all these things are present there will be no debates about who should be doing what. Once you have a clearcut mechanism for dealing with the project, the chances of success improve immensely.” 28 august 2013
sahf Conference Public Private Partnerships International Conference, Exhibition & Housing Awards 15 - 19 September 2013 Southern Sun, Cape Sun, Strand Street, Cape Town Zou Kota-Fredericks Deputy Minister: National Department of Human Settlements, SA Mr Xolile George CEO: South African Local Government Association (SALGA) Mr Olebogeng Mojaki Strategic Housing Planner: Mangaung Metropolitan Municipality Mr Preston Prince Senior Vice President: National Association of Housing & Redevelopment Officials (NAHRO), USA Now is the time for the public service to act decisively and implement Public Private Partnerships to a much greater degree in support of the sustainable development of human settlements. With urban areas straining under greater pressure from the rapid growth of informal settlements, local authorities need to implement a range of housing options which can only succeed with joint ventures. “With distressing statistics about rising cost burdens, increasing foreclosure rates, rising unemployment, falling wages, and widespread homelessness, building affordable housing is one of our most pressing social policy problems.” – Nestor M. Davidson and Robin Paul Malloy This four-day accredited, peer reviewed conference will expose delegates to the latest housing information, will focus on ‘Public Private Partnerships’ and will be attended by 400 delegates, including government ministers, provincial and local authority officials, as well as private organisations involved in building a more prosperous South Africa. The conference will highlight the development of housing associations, public services, innovation and green policies, social and rental housing, the built environment, education and training and the Cape Town for World Design Capital 2014 initiative. PROGRAMME Sun, 15 Sept 2013 • Welcome Cocktail Function and opening of Exhibition 18h00 Mon, 16 Sept 2013 Tue, 17 Sept 2013 Wed, 18 Sept 2013 • Official opening of Conference - Speaker Sessions • Wine Tasting of premier South African Wines • Conference - Speaker Sessions • African Evening Experience Gala Dinner & Housing Awards - moyo, Spier Wine Estate • Conference - Speaker Sessions • Official visit to the Houses of Parliament 09h15 - 17h00 17h00 09h00 - 16h00 19h00 09h00 - 13h00 14h00 - 16h00 Thurs, 19 Sept 2013 • Technical Housing Tour of Public and Private <strong>Development</strong>s 09h00 - 15h00 Contact: events@sahf.org.za; Tel: +27 (0) 21 987 7950; Fax: 086 528 1398 august 2013 29
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