An Analysis of the Marcroeconomic and Sectoral Impact of the Capital Expenditure Programmes of Eskom and Transnet over the Period 2005 to 2010

Description

The trend in SOE investment expenditure is set to be reversed in coming years, particularly through the massive R134 billion capital expenditure programmes of Eskom and Transnet planned for the next five to seven years in South Africa’s energy and transport infrastructure, respectively. This will be the largest infrastructure development programme in many years and will provide a major stimulus for industrial development in the country. The importance of this capital expenditure (capex) becomes even more significant considering that total fixed investment in the country amounted to R226 billion in 2004, with public corporations contributing just over R24 billion to this amount in the same year.

Eskom’s infrastructure investment is aimed at increasing the utility’s generation capacity by 5 300 megawatts to 41 500 megawatts. The objective is to re-commission mothballed power stations such as Camden, Komati and Grootvlei, whilst also creating new generation capacity and increased transmission capacity in many areas of the country, including Johannesburg, Bloemfontein, Richards Bay and the Cape Peninsula, as well as supply lines to Coega (Budget Review 2005).

Transnet’s capital expenditure programme is aimed at improving the quality and efficiency of the country’s rail network, major ports and harbours. A substantial portion of this investment will be directed towards locomotives, wagons, signalling equipment and various types of cargo handling equipment (cranes, straddle carriers, etc.).

The investment plans of Eskom and Transnet are intended to address existing backlogs and capacity constraints, whilst creating a solid foundation for increased private sector fixed investment to expand its productive capacity and thus enabling the South African economy to achieve a substantially higher and sustainable pace of economic growth over the medium to long term.

Information

Evaluation Number:
37
Score:
3.8
Report Approval:
13 December 2005
Published:
25 January 2013
Initiated By:
Industrial Development Corporation (IDC)
Undertaken By:
Gerhard Kuhn, Jorge Maia, Lumkile Mondi, Charles Morolo, Xolile Mose, Neo Ramakoae
Evaluation Period:
2005
Evaluation Area:
Economic planning and development
Public finance, financial management
National Outcome:
National Outcome 6: An efficient, competitive and responsive economic infrastructure network.
Commissioned By:
Evaluation Type:
Impact
Economic
Evaluation Subject:
Programme
Geographic Scope:
National

Evaluation Documents

File Name
Analysis of ESKOM and TRANSNET CAPEX Pgms 2005 to 2010.pdf 37.pdf
37 EQAT 20130320 tm_mb.pdf

Similar Evaluations

Evaluation of Budget Support in South Africa

This is an exceptionally good quality evaluation, scoring 4.02 using the assessment tool. In terms of the phases of the evaluation, the planning and design of the project was particularly strong...
Evaluation Number:
418
Report Approval:
30 September 2013
Published:
04 February 2014
Initiated By:
European Commission

Pricing and Access to Consumer Credit: A review of the impact of the National Credit Act one year after its implementation

A little more than a year after the implementation of the National Credit Act (NCA) in June 2007, FEASIBILITY conducted research for the National Credit Regulator (NCR) on the impact the NCA was...
Evaluation Number:
106
Report Approval:
30 June 2009
Published:
22 February 2013
Initiated By:
National Credit Regulator

An Evaluation of the Market Access Programme

The overall score of this evaluation has been rated at 3.46 out of 5 on the Likert-type scale applied to assess the quality of government evaluations. This rating has been assigned to the evaluation...
Evaluation Number:
438
Report Approval:
30 June 2014
Published:
14 October 2014
Initiated By:
Western Cape Government: Department of Agriculture

FIFA 2010 World Cup Legacy Audit

The purpose of the audit is to document legacy projects across all sectors, including those initiated by government, non-governmental and private business organisations in both South Africa and the...
Evaluation Number:
36
Report Approval:
03 May 2011
Published:
29 January 2013
Initiated By:
Department of Sport and Recreation

Fiscal incidence of social spending in South Africa, 2006

The objectives of the present study were to investigate expenditure incidence in education, tertiary education, health, social assistance, housing, water provision and electricity, and in particular...
Evaluation Number:
63
Report Approval:
28 February 2009
Published:
13 January 2013
Initiated By:
National Treasury