DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NCOP
QUESTION FOR Oral REPLY
QUESTION NO.: 220
DATE OF PUBLICATION: 16 October 2013
(220. Mr R J Tau (ANC-NC) to ask the Minister of Public Enterprises:
Whether, with regard to the implementation of the infrastructure programme
led by Eskom and Transnet, any progress has been made to (a) strengthen his
departmentâs capacity to oversee the programme, (b) facilitate the creation
of a supportive policy environment for state-owned companies (SOCs) to
increase investment into the economy, (c) promote increased localisation of
procurement and (d) explore ways to support SOCs that are facing financial
challenges; if not, (i) why not and (ii) what are his departmentâs plans in
this regard; if so, what are the relevant details in each case? CO608E
Reply:
(a) The Department has established the office of the Chief Director:
Project Oversight. The Directorate is presently putting in place policies
and systems to enhance the rigour of the DPE oversight of the build
programme. This includes the establishment of an information technology-
based reporting system which will highlight progress and risks relating to
all SOC strategic projects. The DPE is planning to establish a dedicated
Projects Office.
(b) The Department has established an internal task team that is
systematically reviewing the policy and regulatory environment relating to
our SOC portfolio with the objective of making clear recommendations as to
how the environment can become more supportive in relation to the SOC
delivering on their strategic mandates, particularly regarding their
investment programs.
(c) The Department has a Chief Director: Strategic Relationships who is
responsible for driving the Competitive Supplier Development Programme,
which is a comprehensive programme that is built around the scale of demand
created by the SOC investment programs. Presently, the Department is
focussing on ensuring that the locomotive fleet procurement is optimally
leveraged, that an enabling policy environment for supplier development and
localisation is established and that a SOC Supplier Development Association
is established made up of SOC suppliers ranging from large international
Original Equipment Manufacturers to small emerging national suppliers.
(d) The Department is investigating ways to support the infrastructure
build programme and the Strategic Integrated Projects through the design of
specialised funding structures potentially involving development finance
institutions, big SOC customers and pension funds. The Department is part
of the National Treasury Infrastructure Task team that is busy with a
diagnostic exercise that will inform the process of enhancing SOC balance
sheet capacity.