SOUTH AFRICAN INSTITUTION OF CIVIL ENGINEERING (SAICE)

INFRASTRUCTURE REPORT CARD FOR SOUTH AFRICA: 2006

This report is a reflection on the current state of South Africa’s built environment infrastructure, i.e. that part of the nation’s capital stock that produces services that are consumed by households, such as hospital services, drinking water, sanitation, electricity, or facilitates economic activity, such as electricity, roads and ports. We have only looked at infrastructure that is in the ownership of the public sector. This infrastructure is a public asset. All South Africans have a stake in its upkeep and operation, and all of us share in the expense of its construction and its ongoing maintenance.

Well-maintained infrastructure underpins quality of life and economic development. If maintenance is inadequate, social and economic growth in South Africa will be impeded – something that just cannot be afforded. This report and its subsequent versions is intended as an instrument to contribute to better-informed decisions for infrastructure development and maintenance. It is therefore in line with government’s recently-approved NIMS (National Infrastructure Maintenance Strategy) and the recent SPAID (Strategic Partnership for Accelerated Infrastructure Delivery).

We have not commented on the legacy that gave us such an imbalanced infrastructure distribution. The inherited backlogs are unfortunate, but we cannot manage the past. We can only manage the present in the hope and with the objective of creating an even brighter future. Since 1994, huge strides have been made by the democratic government to correct this balance. Ambitious plans have been made and implemented. Drinking water, sanitation, energy, transportation access have received focused attention, and, acting on its mandate, the government is continuing to invest at rapid pace in infrastructure for disadvantaged communities.

Neither have we emphasised the stated intentions of many agencies to improve infrastructure in the future. We trust that these will be reflected in improved grades in future report cards. We are really focusing on the present condition of infrastructure.

It would be useful to mention the background to this report. The production of an Infrastructure Report Card was a stated Presidential project for my term of office. During his term as SAICE President in 2001, Dr Wall first proposed that a report card be done for South African infrastructure along the lines of the report cards which the American Society of Civil Engineers and the British Institution of Civil Engineers have both been producing since the late 90s.

Earlier this year, I was fortunate enough to spend some time with both those institutions and received much advice and encouragement from them. On returning from America and London, we consolidated the available research into the current Report Card. It was then moderated by a panel of experts and the final grades allocated. The result is in front of you. It reflects the expert perception of eminent professionals in the civil engineering field, backed up by considerable existing research.

The grades relate to our usual understanding. A grade of C is fair or satisfactory, or let’s say fit for purpose, but only just. On the one side of C is unsatisfactory, on the other side, good. But it is only through trends reflected in future reports that we will see whether we are heading towards excellence or breakdown.

Ladies and gentlemen, you will notice two key themes in this report. The first is the extreme shortage of skills and the terrible impact this is having on planning, procurement, design, construction and care of infrastructure. The second is the lack of adequate funding for the maintenance of the existing asset base and the new assets that come on-stream each day.

For let us be clear – construction is booming. After decades of decline, we seem set for decades of growth, with construction forming the fastest growing sector of the economy. Construction also generates more jobs per rand spent than almost any other sector of the economy. It is imperative that we do not continue to build only to permit decay. Neither can we continue the culture of ‘patch and pray’ that typifies too many of our maintenance activities. We need adequate budgets and maintenance management plans for existing and new additions to the infrastructure asset base. And what ambitious new additions are on the way! Major work is scheduled at Transnet, the airports, Eskom, the 2010 World Cup, Gautrain, and so on.

Maintenance delayed for one year could cost three to six times more. We cannot afford this premium. Civil infrastructure, ladies and gentlemen, serves people in their daily living and working. The economy registers this activity as growth. Not focusing on maintenance is like buying a suit and never cleaning it, or buying a car and never servicing it – sooner, rather than later, it will begin to trouble, and break down. Except that the consequences are far more severe here. We would affect the quality of life and even the very lives of people, through outbreaks of water-borne disease, reduced safety on roads and rail, inconvenience and inefficient commercial activity. We should spend more time with our families, and less in traffic jams.

The answers to many issues posed in the report are neither simple nor easy. All the more reason for the public to be better informed about the serious decisions that must be taken about our infrastructure and, where appropriate, to change our behaviour.

South Africa suffers an acute skills shortage in the civil engineering sector. Just two illustrations should highlight how serious this is. Firstly, a recent survey by SAICE showed that more than one-third of all 231 local municipalities did not have a single civil engineer, technologist or technician. Vacancies in local government for engineering practitioners exceed 1000, and it’s not improving. Secondly, while the link between engineering infrastructure and economic growth may be clear, it is not always clear that a similar link exists with social health. If we consider for a moment though, it becomes obvious that cleaner drinking water, proper sanitation, better shelter, access to transport and electricity, improve the quality of life. To millions in South Africa quality may be equated with viability. Indeed, our research indicates that, in general, developing countries have more doctors than engineers, whereas the opposite is true in developed countries. The reason is obvious: engineers prevent disease and sickness.

It is concerning then, that South Africa has only half as many engineers as doctors. By comparison, Australia, America, Western Europe and even China or India, have a similar number of engineers to doctors, or more engineers than doctors. Furthermore, the ratio of population to engineer in South Africa is of the order of 3,200 to 1, twenty times less than some of the countries just mentioned. Furthermore, while the average population to engineer is 3 200 to 1, the ratio amongst the white population is approximately 300 to 1, similar to America and Western Europe, while the ratio in the black population is in the order of 50 000 to 1, amongst the worst in the world. The case for transformation cannot be clearer. But even here initiatives are under way to address the disparity.

And so on to the Report Card proper.

Water

The management of water resources and the provision of raw water in bulk is the responsibility of the Department of Water Affairs and Forestry. Many of the dams, weirs, canals, pump stations, pipelines, siphons and tunnels are old and in need of major refurbishment or replacement. Although DWAF has conducted regular maintenance, certain portions of the infrastructure have reached the end of their useful life. Of particular concern is the estimate that 43% of dams have safety problems and require urgent refurbishment. DWAF is doing what it can, including engaging in partnerships with users of water. Its major constraint appears to be the size of the available budget. This appears to be forcing DWAF to focus on its most strategic infrastructure, with the result that the remainder will continue to decline. It gets a grade of D+.

South Africa remains one of the few countries in the world where, in most urban areas, water can be drunk with confidence directly from the tap. Major strides have been taken towards the Millennium Development Goals by bringing water to every household by 2008. However, there remains erratic compliance with water quality requirements in most other municipalities. The wastage of water is also, in many cases, above the international average, in some cases by a factor of 2 or more. As in the other aspects of infrastructure managed by local councils and municipalities, the dire skills shortage mentioned earlier is a primary constraint. For major urban areas, the grade is C+, and for all other areas, a D-.

Sanitation (including wastewater)

As with the provision of water, improvements in sanitation since 1994 have been very significant. However, there remain serious problems with the management of many wastewater sewage treatment works. Wastewater leakage and spillage remains far too high and there are frequent problems with on-site sanitation. Of the sanitation projects completed since 1994, more than a quarter have failed or are in the process of failing, and almost half of all municipalities do not have adequate operations and maintenance capacity. The threat of water-borne diseases remains significant in many of the small to medium municipalities.

Major urban areas get a C-, and the grade for all other areas is a E.

Solid waste management

Waste management practices have improved over the past thirty years, although there remain many municipalities with uncontrolled dumpsites and the attendant health risks. National initiatives on solid waste management to reduce generation of waste and to encourage recycling have not been successful as hoped.

The grade is C- for major urban areas and D for all other areas.

Roads

National roads are the responsibility of the South African National Roads Agency Ltd, which has a network of 16 000 km. The acquisition of key strategic roads from provincial departments is ongoing, but some of these roads are in relatively poor condition. A serious concern is that 72% of the national road network is nearing the end of its design life, and funding remains a challenge. The condition of roads managed by provinces and municipalities varies greatly, and a massive backlog exists with respect to access roads for the poorest part of the population. Overloading and neglect of routine maintenance is a serious cause of reduction in road life, with the associated premium in repair costs. With the exception of Gauteng province, the general condition continues to decline, mostly owing to inadequate budgets and shortage of skilled personnel.

National roads gets a grade of C. Please note that this is for national roads and not for major urban areas as reflected in the report, and all other areas get a grade D-.

Aiports

The transformation of South Africa’s principal airports over the past eight years has been nothing less than remarkable. The ACSA-owned and operated facilities are world-class in both condition and performance. However, the high rate of demand growth has resulted in continuous expansion and refurbishment, resulting in considerable inconvenience to users. ACSA does not meet its target service levels during peak periods for international travel at OR Tambo in Johannesburg and for domestic travel at Cape Town. Nevertheless, it continues to implement a strong maintenance management strategy and extension of the existing asset to meet apparently insatiable demand.

The airports get a B.

Ports

Notwithstanding the congestion at many ports, the seven commercial ports owned by Transnet generally maintain ageing infrastructure in an operationally serviceable condition. There is a strict regime of condition monitoring to schedule maintenance interventions and for long-term planning. There has also recently been an increased emphasis on maintenance, upgrading and replacement. It appears that significant expenditure is imminent on Transnet infrastructure that should address the deterioration, ageing and obsolescence.

Transnet-owned ports get a C+.

Rail

Most of the rail network is owned and operated by Spoornet, a subsidiary of Transnet. The heavy haul freight lines: that is the iron-ore line operating between Sishen and Saldanha Bay, and the coal line operating between Witbank and Richard’s Bay, are both maintained and operated in a manner comparable with best practice internationally. Capacity upgrades are programmed for the next five years.

The second category of freight lines is for general freight. The condition of these freight lines has declined in recent years owing to maintenance backlogs and skills reduction. Traffic volumes are increasing and upgrading is urgently required.

The third category is those general freight lines that are seen to be uneconomical. This infrastructure is maintained at a minimal safety and environmental standard, and is not seen as part of Spoornet’s core business.

The fourth category of lines is the passenger lines under the jurisdiction of the South African Rail Commuter Corporation. Indifferent maintenance in the past has resulted in these lines deteriorating. Services have also been affected adversely by high levels of theft and vandalism.

In all these instances, Spoornet has indicated a significant increase in investment over the next five years to improve the condition, with the exception of those uneconomical lines just mentioned. Rail receives grades of:

B for heavy haul freight lines; C for general freight lines that are being retained; E for uneconomical general freight lines, and D+ for passenger lines.

Electricity

Eskom’s bulk generation and transmission capacity is nearing peak demand levels. Although some power stations previously mothballed will return to service over the next two years, this will only provide temporary relief. A further risk is the length of the transmission corridors between generation sites in Mpumalanga and demand locations in Gauteng and the coast. This leaves little in reserve for maintenance or for failures in the generation or transmission grid. It is expected that between now and 2011, when new base-load stations come on-stream, further power cuts can be expected. Furthermore, a concern is that almost all of Eskom’s supply is from coal-fired power stations. Even the new cleaner burning power stations have a considerable adverse effect on the environment, owing to the high emissions from coal burning.

There have been major strides in the provision of distribution networks of electricity since 1994, both from Eskom and from municipal networks in major urban areas. However, a shortage of skilled personnel and ageing or overloaded infrastructure, combined with inadequate operation and maintenance, are a problem. Improvements are clearly discernible.

In areas other than the major urban areas, the problems are aggravated. The grades are C+ for Eskom’s bulk generation, transmission and distribution, C- for major urban municipalities and D- for other areas.

Hospitals and clinics

In general, the allocation of maintenance budgets for hospitals and clinics has been below the required levels to maintain the facilities adequately. As a result, the maintenance backlog in some provinces is escalating. A further concern is that emphasis is being placed on capital works to construct new facilities, without adequate measures to maintain these once they are built. Inadequate skills and experience to plan and implement maintenance programmes is a further shortcoming. An encouraging sign is that some provinces, notably Kwa-Zulu Natal and Limpopo, have improved their healthcare facilities over the past ten years. Hospitals get a C and Clinics a D+.

Ladies and gentlemen, that concludes the detailed Report Card. As you know by now, the overall grade that we offered South Africa’s built environment infrastructure is a D+, less than satisfactory, but not poor. As mentioned, this grade is largely because of a lack of attention to adequate maintenance, aggravated by a shortage of skills and funds. There are strong indications that these challenges are being addressed. This report reinforces the need to expedite those efforts.

Thank you and we would be glad to take your questions.