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<td align="left" valign="top"><h1><a><strong>The urgency to overcome the trust deficit</strong></a></h1>
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<td><p>While there has long been a great deal of talk about how to more effectively enable infrastructure projects in SA, the talk has not traditionally translated into action. It was anticipated that the establishment of the Infrastructure Fund in 2018 would start to galvanise more activity around infrastructure when its establishment was announced by President Cyril Ramaphosa. </p>
<p>Even prior to the Covid-19 crisis, government had recognised the need to prioritise infrastructure investment as a vehicle to speed up sluggish economic growth. At the same time, it also recognised that due to limited fiscal space it would need to partner with the private sector. The economic fallout as a result of the Covid-19 pandemic puts the state’s finances in an even more precarious position. Essentially, therefore, the only way government can invest in infrastructure projects is if it partners with the private sector to provide the necessary funds. </p>
<p>“Covid-19 and a double credit ratings downgrade combined to form a perfect storm for an already ailing economy,” points out Chris Campbell, CESA CEO. “Added to this is a growing realisation within government that the only option left to the country is to use infrastructure as lever to kick-start the economy.”</p>
<p>He says he is encouraged by a renewed willingness from government to interact with the private sector, and a realisation on both sides that we cannot do this alone. He also believes the head of the Investment and Infrastructure Office (IIO) in the presidency, Kgosientso Ramokgopa – a qualified engineer by profession – is the right person to be leading the initiative. </p>
<p>Infrastructure investment has to be done with value for money in mind and by establishing the total cost of ownership, including maintenance. “For too long SA has not factored maintenance into the total cost of ownership of infrastructure assets. However, without the necessary maintenance - or if poorly specified - the asset will require even higher costs and possibly even need to be replaced earlier than it should have been.”</p>
<p>SA can no longer afford to adopt counter-intuitive approaches. “We should rather be paying top dollar for an optimal solution that will last than settling for the cheapest option which ends up costing the country more in the long run.”</p>
<p>On several occasions in the past, CESA has offered to assist in engineering capacity building processes for municipalities – an offer that has never been taken up. Despite a critical shortage of engineering expertise within the public sector, the private sector does have engineering capacity. </p>
<p>Earlier this year, the Minister of Public Works and Infrastructure, Patricia de Lille requested that CESA share its database of unemployed engineers. The list currently consists of well over 200 engineering practitioners which include a mix of graduates, experienced individuals and retired engineers. </p>
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<h2 align="left">Disclaimer</h2>
<p align="left" class="Disclaimer">This publication is an attempt to share information of interest with members and readers. Articles on products and ideas featured in this publication from other sources do not of necessity carry the endorsement of CESA unless explicitly so indicated. </p>
<p class="Disclaimer">CE-news Contributions <br />
• Email or phone Bonolo Nkgodi at bonolo@cesa.co.za or 011 463 2022 to contribute news, comment etc. <br />
• Email Wally Mayne at wallym@cesa.co.za if you work for a member firm and would like to receive a copy of this newsletter direct.<br />
• News of member firms is usually provided by the firms themselves or copied from their newsletters or the media.</p>
<p class="Disclaimer">Copyright © CESA 2020</p></td>
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