Transnet's R93bn infrastructure drive
5 February 2010
South African state transport company Transnet, which has spent R74-billion in the past five years on projects such as upgrading ports and building pipelines, plans to spend R93-billion on infrastructure development over the next five years.
Speaking in Cape Town on Wednesday, Transnet acting CEO Chris Wells told Parliament's portfolio committee on transport that Transnet's infrastructure drive had created hundreds of thousands of jobs for South Africa.
"Some studies we are engaged in show this infrastructure programme has had a significant benefit effect to SA, both on employment and creating industries," Wells said. "We believe hundreds of thousands jobs have been created. It could be as many as 500 000."
"Early indications" were that a new five-year plan to be finalised by the end of February would increase investment to R93.4-billion.
"It is exciting that we have the capacity to do that," he said.
Wells said Transnet had managed to raise R19-billion "very cost-effectively" in the debt capital markets.
It was important for South Africa to develop foreign sources of funding, as there was a "limited capacity" in South Africa. "Particularly as the total South African infrastructure programme gains traction, there is going to be a need for offshore funding," he said.Transnet has secured R4-billion in offshore investment for its infrastructure programme. The parastatal also recently listed its global medium term notes bond programme.
"This will enable us to issue in the US and European markets anytime going forward as the circumstances are advantageous for us," he said.
Sapa
