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       	<br><br><br><br><br><br><br><br><br><br><br><br><br><br>          providing advice on planning and design and its impact   infrastructure spending and the infrastructure spending<br>          on construction operating and maintenance costs.    based on the NDP target of 10% of GDP. Part of this<br>                                                              spending  gap  will  have  to  be  funded  by  the  private<br>          As  an  interim  measure  CESA  calls  on  Government   sector.  The  NDP  also  intends  to  raise  the  private<br>          to reintroduce quality as part of the total procurement   sector  infrastructure  contribution  from  10%  to  20%  of<br>          points  calculation  alongside  price  and  BBBEE  points.   GDP  to  drive  the  intended  growth.  A  clearer  project<br>          At the same time challenging Government to conduct   pipeline, more standardisation of deal structures, policy<br>          a  comprehensive  research  and  review  of  the  current   stability and better information about the performance<br>          procurement  system  to  determine  its  impact  on  the   of projects at their various stages would all encourage<br>          consulting  engineering  industry  and  infrastructure   infrastructure debt investment. SA business has further<br>          development in the country.                         identified  regulatory  uncertainty,  inclusive  growth,<br>                                                              education  and  skills  and  labour  relations  as  affecting<br>          Access to Opportunities for Emerging and            investor confidence.<br>          Small Firms<br>          There  is  a  strong  outcry  from  emerging  and  small   CESA  is  committed  to  working  with  Government<br>          consulting engineering firms, particularly those who are   to  address  these  constraints  where  they  affect  the<br>          not specialist, over the lack of access to large projects   consulting  engineering  sector.  The  potential  of  PPPs<br>          from  government  and  public  entities.  These  firms   to  entice  private  sector  investors  into  infrastructure<br>          provide an important vehicle for empowerment within,   development is not fully appreciated in SA.  Government<br>          and  transformation  of,  the  industry.  CESA  believes   needs to address regulatory constraints to unlock this<br>          that  the  participation  of  emerging  and  small  firms  in   potential.<br>          large projects can be best facilitated by using targeted<br>          procurement procedures by either specifying minimum   Call for Changes to the Regulatory<br>          participation  goals  as  a  percentage  of  the  contract   Environment<br>          amount or specifying portions of services which must   CESA  supports  BBBEE  as  necessary  to  transform<br>          be subcontracted to targeted enterprises.           business and contribute to the eradication of inequality –<br>                                                              a NDP objective. However, the current requirement for a<br>          Infrastructure Investment                           consolidated / joint BBBEE scorecard for joint ventures<br>          KPMG  estimated  an  infrastructure  spending  gap  of   discourages the formation of joint ventures which are<br>          R6.5  million  between  the  planned  MTEF  and  PICC   crucial for skills transfer between large and small firms,<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>          4<br>
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