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Implementation of National Infrastructure Plan 2050 Underway

May 26, 2022

Department of Public Works and Infrastructure

Implementation of the first three years of the National Infrastructure Plan 2050 (NIP2050) is underway.

The public works and infrastructure minister, Patricia de Lille, confirmed this in her department’s 2022 Budget Vote speech in parliament.

According to the minister, the drafting, approval and gazetting of the NIP2050 was completed by March 2022.

The minister described the NIP2050 as a “long term plan for infrastructure development across the country to ensure that there is the necessary long-term view regarding infrastructure to drive economic and social transformation to achieve NDP goals and beyond”.

She pointed out that an “additional R1.6 trillion in public sector infrastructure investment is required by 2030, over and above that is forecasted for current public sector entities”.

“This will be achieved, by, amongst other efforts, building private sector confidence in the capacity and capability of the state to deliver bankable public infrastructure projects”, she said.

The minister also announced that the drafting of the second phase of NIP is underway.

The second phase will focus on social infrastructure and related municipal services and strengthening coordination through the District Development Model approach.

It will be finalised in the 2022/23 financial year.

In terms of leases, the minister confirmed that the public works and infrastructure department has started “engaging landlords on the overcharging rentals to bring costs aligned to per square metre rates as informed by the Rode Report, an independent market report for the property industry providing an index of pricing per square metre across South Africa”.

She pointed out that the department has evidence of overcharging compared to the rates in the Rode Report.

“We intend to finalise this process of reaching an agreement with landlords on the new pricing as soon as possible as some of the rates government is being charged are astronomical and way above acceptable market rates”, she said.