First phase of Pretoria’s Salvokop precinct to be developed
The construction industry is to receive a much-needed boost, with the first phase of the Salvokop Precinct Development in Pretoria to be developed as a public-private partnership (PPP), at an estimated cost of R6.5 billion.
Minister of Public Works and Infrastructure Patricia de Lille announced the initiative on Wednesday and indicated that the development has the potential to create more than 5 000 jobs during the construction of the first phase and the bulk infrastructure.
De Lille said the development will generate hope for the construction sector, which is currently in dire straits, and for communities.
“We look forward to the completion and delivery of this integrated development, that will contribute significantly to the economic stimulus and will be a catalyst to stimulate the construction sector in a very substantive way,” she said.
De Lille said consultation will continue next year with other cities, including the City of Cape Town, Buffalo City Municipality and the City of eThekwini, for similar precinct developments.
Webster Mfebe, CEO of the SA Forum of Civil Engineering Contractors (Safcec), said such investment in infrastructure will bring much-needed confidence to the already-depressed construction industry. The FNB/BER Building Confidence Index edged higher to 25 in 2019 Q4, after receding to a 20-year low of 22 in 2019 Q3.
Mfebe said it will also underscore the point Safcec has made in the past: that government has not sufficiently utilised the PPP model, which is the way to go because government does not have infinite resources due to the competing demands placed on the fiscus.
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