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

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