Hon Deputy Speaker, honourable President, hon Deputy President and colleagues, in his 2012, state of the nation address, the President outlined the social and economic growth story of South Africa, which was about linking communities to small towns, from small towns to metropolitan areas and connecting provinces, as well as the movement of goods to facilitate economic transaction. This growth story recognised that we needed to change apartheid's development patterns, skewed as they were, towards a few but big cities and provinces.
In this regard, the 2012 state of the nation address recognised public sector spending as an important response to a shrinking global economy and sluggish domestic growth. Quite clearly, the 2012 state of the nation address was about outlining a new vision for inclusive growth and shared wealth, based on the progress of the previous 18 years of our democracy and the new socioeconomic challenges we faced as a nation in light of both the global economic recession, which had constrained our growth, as well as the persistent and pestilent challenges of poverty, unemployment and inequality, which had continued stubbornly to dog our social transformation.
As you, Mr President, stated it, this year's state of the nation address was about reporting on the progress made since the 2012 state of the nation address, when you outlined the new vision and also to discuss our programme of action for 2013. It would have been total folly to present a new vision again in 2013 on top of the vision the President unveiled in 2012, which has only just started being implemented. [Applause.]
But, of course, the opposition wants us to be stuck on endless visions so that they turn around and ask the question: Where is the implementation? When you implement the vision, they then turn around again and ask: Why is there no new vision?
The infrastructure investment the President unveiled in 2012 is a moral imperative for South Africa given the multidimensional nature of our social and economic challenges. It is pivotal to shift gear towards intensifying the struggle for social and economic freedom as we begin to usher the second transition towards the national democratic society characterised by high levels of equality, all-round development and a better life for all.
The President's government has chosen a policy approach predicated on three core developmental values, which are: to increase the availability and widen the distribution of wealth and income in South Africa; to raise the social living standards through employment and enhance the material wellbeing of the majority, which will generate national self-esteem; and to expand the range of economic and social choices available to citizens. These core values are achieved through the provision of social and economic infrastructure investment to drive economic development and growth.
In the last 12 months, under the leadership of the President, through the Presidential Infrastructure Co-ordinating Commission, PICC, we launched the intergovernmental forums of the 18 strategic integrated projects.
We have seen that continued investment spending by public corporations and the broader public sector has contributed positively to the economic growth and development.
The key drivers are the ongoing public sector expenditure programmes, particularly the new transport infrastructure roll-out by Transnet, and new power generation capacity by Eskom.
The concrete progress that has been achieved as a result of the heightened co-ordination, integration and focus - to which the President referred in his address on Thursday - has been admirable and clearly demonstrating that the vision unveiled by the President last year is finding resonance in concrete practice.
Yet, the challenges ahead are mammoth, not least among which is the need to secure the future funding of the infrastructure programme, both through the fiscus and the balance sheets of state-owned companies, as well as through unlocking domestic and foreign direct investments just to make concrete reference to the infrastructure roll-out so as to make our people aware of the progress that has been made.
Firstly, the strategic integrated project one, SIP1, is aimed at unlocking the Northern Mineral Belt with Waterberg as the catalyst, and despite recent labour unrest challenges, the Medupi Power Station is 58% complete, with a total spend of R60,4 billion, a total of 15 837 jobs. The Mokolo Crocodile Water Augmentation Project is 30% complete, with a total spend of R526,1 million, 300 jobs created and most of the components of the dam have been manufactured in South Africa. This project will increase water delivery by 37% at the end of February 2013. The De Hoop Dam and Pipeline Project are 15% complete, with a total spend of R505 million and 400 jobs created. The Komati Water Scheme is over 60% complete, with a total spend to date of R807 million, with over 300 jobs created. The Majuba heavy-haul line will commence construction this year, as the President announced last Thursday.
Secondly, strategic integrated project two, SIP2, focuses on the Durban- Free State-Gauteng Logistics and Industrial Corridor; the new multiproduct fuel pipeline is on schedule, with the quantum spend on this project to date being Rl6,9 billion, with 2 490 jobs created. The procurement of rolling stock for general freight is at 73% completion, with a total spend to date of R2,7 billion and 159 jobs created. Fifty four per cent of local content on the manufacturing of locomotives has been secured and will strengthen Transnet engineering's manufacturing capabilities, contribute to job creation, skills development and the creation of downstream linkages.
A feasibility study and an environmental impact assessment on the Durban Port Terminal's Pier 1 upgrade will be completed in 2014, and R70 million has to date been spent on this project. The old Durban International Airport has been acquired and transferred to Transnet for the construction of the dug-out port. Cornubia, the first integrated human settlement, will deliver almost 24 320 housing units - 15 000 of whom will be subsidised - has seen total spend to date of R94 million and created 554 jobs.
Thirdly, strategic integrated project three, SIP3, the South-Eastern Node Corridor Development, the manganese ore rail to the Ngqura Project intended to increase rail capacity to increase the South African export of manganese from 5 to 16 million tons has not yet commenced, but is in its final planning stage. The manganese sinter plant in the Northern Cape reached cold commissioning stage in 2012. The Ngqura Port was officially opened by the President in 2012, with further investment earmarked for a fully fledged trans-shipment hub. The President has already reported on Mthatha Airport.
Fourthly, with regard to the strategic integrated project four, SIP4, the focus is on unlocking the economic opportunities in the North West province. The Taung Naledi Bulk Water plant is at 50% completion, with R272 million spent and 45 jobs created. Eskom has committed to an electrification programme of 20 000 houses. The government is revitalising the hospital, clinics and schools in the province. The S'hamba Sonke Road Repair Programme has seen Rl27 million spend to date, with a R892 million spend on the provincial road construction, and both projects are 20% complete.
Fifthly, with regard to the strategic integrated project five, SIP5, which is the Northern Cape Development Corridor, R682 million has thus far been spent on the procurement of locomotives and wagons, with 38% local content and 734 jobs created. The Sishen-Saldanha Phase 2 Rail and Port Expansion will commence in 2014 and current spend to date is Rl40 million.
Sixthly, with regard to the strategic integrated project six, SIP6, the integrated municipal infrastructure projects, 177 facilities have been revitalised in the Eastern Cape and the project spend to date is at 22%. Five facilities have been revitalised in the Free State and 166 in KwaZulu- Natal, 150 in Limpopo, 37 in Mpumalanga, 7 in the Northern Cape and 26 in the North West. The S'hamba Sonke Road Repair and Maintenance Project has thus far created 32 324 jobs, with a total spend to date of R2,5 billion.
Seventhly, with regard to the strategic integrated project seven, SIP7, the integrated urban space and public transport system, Johannesburg Rea Vaya has created 1 185 jobs, with a spend to date of R1,218 million. Cape Town's MyCiTi has created 635 jobs, with a spend of R2,923 million. The eThekwini has created 45 jobs, with a spend of R397 million. Nelson Mandela Bay has created 735 jobs, with a spend of R83 million. Rustenburg has created 141 jobs, with a spend of R34l million and Tshwane has created 49 jobs, with a spend of R262 million.
Eighthly, with regard to the strategic integrated project eight, SIP8, the green energy, the solar water heater roll-out has created 813 jobs, with a total spend of Rl,49 billion. The solar park to be located in the Northern Cape at an estimated cost of R150 billion is undergoing feasibility study. The construction has commenced on a number of Green Energy projects. The Cradock Ethanol Plant intended to produce 90 million litres of ethanol from sorghum and sugar beet as a feedstock has gone beyond feasibility study and will go into detailed design, followed by construction, in the second quarter of this year.
Ninthly, with regard to the strategic integrated project nine, SIP9, the electricity generation, Camden, Komati and Grootvlei have been completed and commissioned, whilst Kusile has resulted in about 11 000 jobs and is at 19% completion to date. The Ingula is at 58% completion and has resulted in 2 939 jobs and the total spend to date is Rl27 billion.
Tenthly, with regard to the strategic integrated project fifteen, SIP15, expanding access to information and communications technology, ICT, 798 schools and 26 Dinaledi Schools have been connected and R61 million have thus far been spent on the township and rural access to broadband and on e- government, school and health connectivity, creating 100 jobs.
Lastly, with regard to the Square Kilometre Array, SKA, a total of R23l million has been spent to date on this catalytic project, creating 177 jobs and achieving 93% local content.
The honourable President already reported last Thursday on the progress of some of these projects and some of my colleagues will further comment on progress of other projects. What have just been done was picking some examples of very detailed progress achieved in implementing these massive projects that Inkosi Buthelezi suggested won't be implemented in his lifetime. [Applause.]
On a point of correction, Baba uShenge, these projects are actually being implemented in your lifetime and I think you should applaud us for that. [Applause.]
As part of enhancing this co-ordination, integration and focus, we have submitted the Draft Infrastructure Development Bill to Parliament for public consultation and engagement by both Houses.
From the lessons that co-ordination, integration and focus are pivotal to infrastructure development and roll-out, two further lessons have been learned. Firstly, we must never cease building new infrastructure and planning future capacity so that we never have to build new capacity under pressure when the need is urgent. Secondly, we must properly maintain existing infrastructure so that we can ensure that it has a longer lifespan. Of paramount importance is that we cannot allow this massive investment programme to be impacted by the global economic slowdown or derailed by lack of funding. We need to find ways of strengthening the balance sheets of the state-owned companies in order to reignite the private sector investment and private equity required to drive our economy both now and in the future.
We have made significant strides in positioning our stateowned companies to drive a holistic economic growth and development process through the infrastructure investment programme. We have built significant capability both to plan ambitiously and rigorously to implement those plans.
With regard to the Rl billion port rebates announced by the President in 2012 in order to support and bolster our manufacturing sector, R796 million were claimed and Transnet remains committed to disbursing the full R1 billion discounts. We invite the private sector to take up these incentives.
Hon Speaker, this programme that was reported in detail is not simply about erecting cranes and lowering the cost of doing business, but it is, more importantly, about inclusive growth and shared wealth.
As compared to 2010, when infrastructure roll-out was taking place in inner cities, this time round we can see infrastructure roll-out even in rural areas, distributing the wealth, income, jobs and spreading the better life to all. [Applause.]
As we continue with the roll-out, the youth is going to be absorbed into employment and skills development programmes across the country in order to address their very urgent plight.
I would like to quote what the President said during the 2012 state of the nation address, that:
The massive infrastructure investment in infrastructure must leave more than just power stations, railway lines, dams and roads. It must industrialise the country, generate skills and boost much needed job creation.
With regard to skills, it is noteworthy that the skills development occupies a place of pride in the infrastructure roll-out and that state- owned companies have been training more artisans in the past year than they have done in many decades. This programme, hon President, is about getting South Africa working, growing and moving.
Joseph Stiglitz argued in his book The Price of Inequality, and I quote:
America's inequality, and that of many other countries, did not arise spontaneously from abstract market forces but was shaped and enhanced by politics. Politics is the battleground for fights over how to divide nation's economic pie. It is a battle that one per cent of the wealthiest Americans won. That isn't how it's supposed to be in a democracy.
Quite clearly, all over the world, people are realising the intricate link between the political and the economic system and the important fact that the political as well as economic systems need to be both fair and just.
Now, turning back to some of the issues that were raised earlier by some hon members, on your watch, Mr President, we have seen the National Health Insurance being promulgated and it is going to start to be piloted in over 500 schools, with 600 health professionals being trained for this programme. [Applause.] We thank the President for ensuring that being poor is no longer a death sentence. [Applause.]
On your watch, Mr President, the National Development Plan has been adopted. We now have a plan for the future and we know the type of South Africa our children will live in when we are gone. [Applause.] We have seen the largest infrastructure roll-out programme in the history of South Africa. [Applause.] Nobody, no matter how much they may want to lie about it, will deny the fact that this infrastructure project is a real game changer in terms of the socioeconomic situation of our people. [Applause.] In 2009, without pontificating, you introduced new HIV and Aids policies in this country - the largest in sub-Saharan Africa. [Applause.] Today, people living with HIV or Aids will have a real shot at long and productive lives.
Under your leadership, Mr President, we have seen greater focus on rural development and radical changes in land reform policies. The anger from some on our left emanates exactly from this fact that they were comfortable with the Natives Land Act of 1913 remaining intact in South Africa. [Applause.] We have also seen for the first time a woman, one of the best among South African women, who could occupy any office in this country, including the Presidency, taking over the seat of the Chairperson of the African Union, AU, and commission for the first time in 59 years. [Applause.] Mr President, what we have here is not a difference about whether your speech had content or not; we have a fundamental ideological difference about what South Africa should be like and the future we need to build. [Applause.]
Our opposition outdo themselves each time with their lack of content. The hon Leader of the Opposition is very tall on insults and eloquent English, but very short on content. Thank you. [Applause.] [Interjections.]