Budget Vote 10 – Western Cape Department of Infrastructure
Honourable Speaker;
Premier;
Fellow Members of the Executive & Provincial Parliament;
Members of the Consular Corps;
Mayors & MMCs;
Private Sector Partners;
Future Distinguished Investors; and
Citizens of the Western Cape
It is an honour for me to deliver to you today our infrastructure budget to shape our future together.
Our province is a place of immense opportunity, rich in potential, and driven by a vision to enable economic growth that will create job opportunities and empower our residents to seize these opportunities.
And infrastructure development plays a central role.
Speaker,
Infrastructure is more than bricks and mortar - it is the enabler of economic growth, the driver of social development, and the key to unlocking new investment opportunities.
We envision infrastructure that is resilient – that can endure the elements and withstand budget uncertainties;
Infrastructure that is sustainable – that provides alternative, future-fit and innovative solutions; and
Infrastructure that is inclusive – that addresses past injustices and grows an economy that benefits all.
To make this vision real, we must maintain what we have and lay the foundations to build strong, smart, and sustainable infrastructure that connects, empowers, and uplifts.
My five key ministerial priorities are Partnership, Acceleration, Delivery, Finance, and Innovation. They demonstrate that we are committed to fostering an environment that encourages collaboration, reduces red tape, and ensures that investments in infrastructure are both socio-economically profitable and impactful.
We recognise that government alone cannot meet the demands of a growing and dynamic region.
That’s why we place strong emphasis on forging strategic partnerships - with diplomatic and consular missions, municipalities, the private sector, investors both local and international, and the communities we serve.
It is common cause that the country simply doesn't have the money from a government point of view to keep up with the demands for services.
That is why, we are also seeking to contract in the form of pledges, front loading loans, and blended financing, to name but a few, leveraging our Immovable Asset Portfolios In order to accelerate Human Settlement delivery, maintenance and construction of roads, including the gravel road network, to unlock economic growth and create jobs.
Speaker,
Our strategy, our vision, our project pipeline, our budget, are all guided by the Western Cape Infrastructure Framework 2050.
It is the beacon of innovation, sustainability, and resilience, that guides the Western Cape towards a future where infrastructure not only supports economic growth and development but also contributes to the well-being of all residents and the health of our natural environment.
Through collaborative effort and a shared vision, this framework will help shape a Western Cape that is prosperous, inclusive, and sustainable for generations to come.
Speaker,
To this end, I am pleased to table today the Western Cape Department of Infrastructure’s R27.9 billion budget over the Medium-Term, of which R9.83 billion is allocated to the 2025/26 financial year.
Of the nearly R10 billion infrastructure budget, R365 million is allocated to Administration which includes our bursary programmes, skills development, enhancement tools, digital infrastructure and energy projects.
Speaker,
We are allocating over R15.3 million towards the Masakhi’iSizwe Bursary programme, which has for the 2025 academic year already awarded 151 bursaries to students studying within sectoral aligned fields, such as, architecture, civil, electrical, and mechanical engineering, mechatronics, quantity surveying and others.
By empowering these young people, Speaker, we are looking to the future of infrastructure in the Western Cape.
We are not only equipping these individuals to step into specialized jobs, but we are also absorbing the necessary skills and knowledge to shape our future together.
In terms of our own staff at the Western Cape Department of Infrastructure, this financial year, we will upskill 20 staff members who are on salary level 1 to 4, through our Professional Development Programme.
Speaker,
Included in this programme, I am also very excited to announce our investment of R14.897 million towards the Western Cape Infrastructure Implementation Plan 2050 – commonly known as the Singular Project Pipeline.
The Singular Pipeline will revolutionise infrastructure delivery in the Western Cape, that goes beyond this financial year, beyond the MTEF, and towards the future.
The pipeline identifies and gives an overview of existing infrastructure pipelines, which includes national, provincial, municipal and private sector projects, representing a cohesive set of projects, strategically designed to attract investment and meet the needs of the province.
The existing singular pipeline contains projects to the value of a gigantic R200 billion.
This, Speaker, is how we will shape our future together!
I wish also to announce that we are investing over R11 million in digital infrastructure that will transform the way we deliver infrastructure, how we attract investment, and interact with residents.
My department is embracing cutting-edge technology like Digital Twins and Artificial intelligence to revolutionise how we plan, fund, and manage infrastructure.
We will soon launch a real-time, interactive 3D digital twin of the province.
This advanced tool will allow us to visualise key pipeline projects more effectively, helping to attract investment and secure funding with greater ease.
By integrating AI-driven analytics, we can accurately forecast infrastructure needs, optimise resource allocation, and enhance decision-making - ensuring that every rand is invested where it will deliver the greatest impact.
I will also soon introduce you all to EVE.
EVE, our Enhanced Virtual Experience, is a decentralised AI-powered assistant designed to enhance residents’ interactions with the department.
We chose a decentralised model for its versatility and flexibility in handling various data types. In addition to being cost-effective, the model offers robust capabilities in data analytics, automation, and communication.
EVE will be accessible through multiple platforms, including WhatsApp, email, and a dedicated mobile app.
The first iteration, Toddler EVE, will be ready for testing within the next two weeks
Our Transport Infrastructure Branch has launched an initiative to modernise and upgrade its IT systems and business tools.
This effort aims to enhance our ability to collect, manage, and utilise data effectively - enabling better decision-making and more efficient spending across the province’s 30 000 km road network.
A key highlight of this programme is the development of a new public query app, designed to improve service delivery and community engagement.
This app will provide a user-friendly platform for public engagement, offering a centralised hub where citizens can report issues and share feedback related to the provincial road network.
The goal is to enhance operational efficiency by enabling residents to log road-related concerns directly from their mobile devices, while equipping Western Cape Government officials with the tools and information needed to track, manage, and resolve reported issues efficiently.
This will improve responsiveness and promote a citizen-centric approach to infrastructure management.
The app is currently in development and is planned to be launched for public use in November this year.
In the energy space, Speaker, we are allocating R38.462 million towards energy resilience.
The Western Cape Government is actively advancing Gas-to-Power initiatives as a strategic response to our energy security challenges and the growing demand for lower-carbon technologies.
The development and promotion of a robust gas-to-power industry hold significant potential to drive socio-economic growth and job creation across the province.
With abundant gas reserves, the Western Cape is well-positioned to harness both indigenous and imported gas supply options. Current assessments indicate the potential to add up to 6.7 GW of new gas-fired power generation capacity - complementing the existing 2.1 GW capacity at Ankerlig and Gourikwa.
Furthermore, gas-fired power generation, along with associated natural gas supply infrastructure, presents major investment opportunities across the entire value chain - upstream, midstream, and downstream - stimulating local economic growth and generating substantial employment opportunities.
We are also making significant strides in installing solar geysers in housing units at several of our housing developments across the province.
And our efforts in this regard already show huge success.
Over the last financial year, we have installed a total of 1 623 solar geyser at several of our human settlement developments.
In Ebenhaeser we have delivered 179 solar geysers;
190 at Metro Grounds in George;
300 at Melkhoutfontein in Hessequa;
340 at Railton in Swellendam;
379 at Vredebes in Ceres;
36 at Vlakkeland in Paarl; and
199 at Klawer in Vredendal.
Funded through the Asset Reserve Fund, our efforts will continue and in this financial year we will install a further,
196 solar geysers at Metro Grounds;
40 at Melkhoutfontein;
6 at Vlakkeland, besides the 30 solar geysers that come standard on the Military Veteran units; and
110 is ready for implementation at Vredebes.
Speaker,
We are also looking to pilot our own Human Settlements microgrids, in partnership with relevant stakeholders, such as the private sector.
This will go a long way in empowering communities that otherwise wouldn't be able to afford electricity, specifically given the most recent repetitive electricity hikes.
Speaker,
Ten opsigte van ons Openbare Werke-program bewillig ons meer as R2,5 miljard vir instandhouding, tariewe, huurkontrakte, munisipale dienste en konstruksie.
'n Sleutelvennoot in ons Openbare Werke-omgewing is ons Susterdepartement van Gesondheid en Welstand. Tesame met die Departement van Infrastruktuur, wat as die implementeringsagent optree, is ons besig om verskeie megaprojekte binne die gesondheidsektor te ontplooi.
Ek sien uit na die aankondigings wat my kollega, Minister Wenger, binnekort sal maak wanneer sy haar departement se begroting ter tafel lê.
Wat Openbare Werke-infrastruktuur betref, is 625 werksgeleenthede gedurende die 2024/25-boekjaar geskep, en ons beoog om altesaam 2 255 werksgeleenthede oor die mediumtermyn te skep, met meer as 810 werksgeleenthede wat in die huidige finansiële jaar geskep sal word.
Speaker, for Community Based Programmes, we are allocating nearly R80 million for the 2025/26 financial year.
This significant investment is aimed at ensuring that communities benefit directly from infrastructure projects - through the creation of temporary job opportunities and by equipping individuals with the skills needed for long-term, sustainable employment.
Specifically:
R6.383 million is allocated for artisan development;
R20.518 million for the National Youth Service;
R4.781 million for contractor development; and
R2.873 million for empowerment impact assessments.
Through the Expanded Public Works Programme, the Western Cape aims to create over 313,000 work opportunities between 2024 and 2029.
Of these, 91,677 will be in the infrastructure sector, directly supporting our Department’s core mission.
These opportunities are not only a vital source of income for many but also a pathway to skills development, with a strong focus on training and long-term empowerment.
Speaker,
While I am eager to discuss our human settlements programme, I must first address a significant issue that cannot be ignored.
I am referring to the unfortunate and misguided decision by the National Department of Human Settlements to reduce our 2024/25 human settlements budget by an alarming R300 million.
I raise this issue now, during the 2025/26 financial year, because it impacts our baseline over the Medium-Term Expenditure Framework.
The National Department justified this cut by citing our expenditure on the Informal Settlements Upgrading Partnership Grant, which they reported as being at 20%, and the Human Settlements Development Grant, which they stated was at 41%.
Speaker, this assessment is completely inaccurate.
Firstly, these figures were taken from the second quarter of the 2024/25 financial year.
For the hundredth time, Speaker, how can data from the second quarter of the financial year reasonably inform decision-making in the fourth quarter, when a department has a full 12 months to spend its budget?
In reality, by February of this year, when these claims were made by the National Minister, our ISUPG expenditure had already reached 59%, and the HSDG was at 84%.
Moreover, on the day the budget cut was gazetted, the Western Cape Department of Infrastructure had already spent 84% of the total human settlements budget against the original allocation.
So, why would our budget be cut when we were clearly on track to spend 100% of our grant allocation?
This decision defies logic and has had severe consequences.
As a result of the budget cut, we were forced to operate with a reduced budget, R300 million less, leaving invoices for work already completed and certified unpaid - amounting to R243 million at the time.
Speaker, not only is it challenging to explain to the national department that their decision was based on outdated and irrelevant data, but it is equally difficult to convey the devastating impact this decision has had on the people of the Western Cape, especially our housing beneficiaries.
However, Speaker, the Western Cape Government is focused on serving its people.
We are committed to protecting the interests of those we serve.
That is why the HOD and I initiated an Intergovernmental Dispute - to safeguard our beneficiaries, ensure future budget security, and ensure that data-driven decision-making is at the heart of all critical budget decisions.
Despite these challenges, Speaker, we are moving forward in this province.
Hiérdié provinsiale regering stel sy inwoners eerste en bewillig byna R6,4 miljard vir menslike nedersettings oor die mediumtermyn, waarvan R2,243 miljard in die 2025/26-boekjaar toegeken is.
R1,634 miljard word toegewys aan die ontwikkeling van menslike nedersettings;
R325,7 miljoen vir die opgradering van informele nedersetting;
R45 miljoen vir die versnelling van behuisingslewering;
R55.324 vir batebestuur; en
Meer as R30 miljoen vir titelaktes.
On title deeds, Speaker – ownership is the cornerstone of our human settlements efforts because it restores dignity and creates generational prosperity.
I am, therefore, incredibly proud of the strides we have made, and this in partnership with the private sector.
As part of First National Bank’s housing subsidy initiative for financially distressed customers, approved housing subsidies are utilised to settle outstanding loan amounts, enabling the cancellation of bonds and the issuance of title deeds.
This intervention provides financial relief to beneficiaries, ensuring they gain unencumbered original title deeds.
Tomorrow, we will hand over these 71 title deeds to beneficiaries from key areas within the City of Cape Town, including Bellville, Blue Downs, Goodwood, Grassy Park, Khayelitsha, Kleinvlei and Mitchells Plain, as well as areas outside the metro, including Worcester, Pacaltsdorp, Riversdale, Stellenbosch and Wellington.
I use this platform today to challenge other banks also to join us in shaping our future together, and to help us accelerate the delivery of title deeds in the Western Cape.
But, Speaker,
I am particularly excited about our housing delivery plans in partnership with the private sector, especially inner-city, mixed-use, affordable housing.
As it stands, I can announce that three inner-city housing projects are currently bankable and will go to market in this calendar year. Not financial year, calendar year.
They include,
The Leeuloop Precinct Development which will yield over 850 housing opportunities – in fact, the tender to procure a developer will be advertised before the end of this month;
Founders Garden Artscape – a R1 billion high-rise mixed-use development, prioritising social housing development that will yield over 2 340 housing opportunities; and
The Prestwich Precinct which is a mixed-use development, including 310 residential opportunities, as well as retail and office space.
But this is not all.
Speaker,
Currently, in the planning and approvals phase, are the;
Amandel Place housing development in Belhar, that will yield 326 housing opportunities;
The Ode Molen Precinct, another mixed-use development, including residential, retail and office space, will yield 1 364 residential opportunities - 34% of these will be affordable housing including social housing;
The Stikland Mixed Housing development will yield 6 963 opportunities, of which 25% are allocated for social housing;
The development in Grassy Park which will yield 319 BNG housing units; and
as many of you know, we are in the process of working on the concept options for the Tafelberg development in Sea Point, which we plan to present to the Interested and Affected Parties in May.
Together these human settlements projects will bring private sector investment to the Western Cape estimated at just over R1 billion.
Another set of properties in the metro, which are at the initial stages of enablement, de-risking, analysis of best use and delivery mechanism; are Plantation Road, De Novo, the Government Garage Precinct,
Mandarin Court and Hout Bay.
Weereens, dit is nie al nie, Speaker,
Van Langebaan tot Knysna is ons tans besig met die evaluering van die ontwikkelingspotensiaal van 23 hoëwaarde-grondpersele, met ’n gesamentlike oppervlakte van 85 hektaar en ’n beraamde waarde van ongeveer R340 miljoen, wat die volle spektrum van maatskaplike dienste sal insluit.
Die Wes-Kaapse Regering en sy vennote werk doelgerig saam om die toekoms van menslike nedersettings te help vorm en om bates só te gebruik dat dit tot voordeel van ons gemeenskappe strek.
Speaker,
As I mentioned earlier, our main focus as the Western Cape Government is growing the provincial economy to enable the creation of more job opportunities.
And the role transport infrastructure plays in this regard cannot be overstated.
Through transport infrastructure alone, over 2 800 jobs opportunities were created since the fourth quarter of the last financial year to date, and 980 full-time equivalent opportunities.
That is why we are allocating the majority of our budget towards this programme.
Speaker,
A massive R12.345 billion is allocated towards Transport Infrastructure over the MTEF, of which R4.63 billion is allocated for the current financial year.
For the 2025/26 financial year we aim to create 3 247 job opportunities through transport infrastructure, and over the MTEF the figure is over 9 740 job opportunities, with a major focus on creating job opportunities for young people.
This allocation will go towards maintaining, upgrading and expanding our road networks, making the movement of people and goods faster and more efficient.
In the Western Cape, there are 7 349 kilometres of paved roads and over 24 800 kilometres of gravel roads – all of which are crucial to achieve our goals.
To enhance our transport infrastructure delivery, I am pleased to announce a new Provincial Roads Delivery Model.
Speaker, in a time of fiscal constraints and uncertainties, this model will be an absolute game changer.
Through my department, the Western Cape Government will have more control over projects, that will dramatically enhance delivery and ensure that we get value for our money.
It will also allow for massive savings.
To reap the benefits of this model, it needs to be rolled out as soon as possible.
Therefore, our Districts Municipalities will receive letters today, giving them one year’s notice to prepare for this important shift.
Roll-out will also be done in different processes – The Cape Winelands, Central Karoo and Garden Route District Municipalities will form part of Process 1a; while the Overberg and West Coast District Municipalities will form part of Process 1b.
I am also taking this opportunity, Speaker, to announce key roads infrastructure projects in the Western Cape.
These include the Wingfield Southern Upgrade Scheme, the R300 Extension, and the improvement and upgrading of the Gravel Road Network.
The Wingfield Project, which forms part of the Southern Growth Scheme, will be delivered over 12 implementation packages at a budget of R11 billion.
The first package was already completed in March 2024, and you know it as the Refinery Interchange Upgrade.
At R1.05 billion, the first phase of the R300 Extension, will link De Bron to Wellington, unlocking phase two which will link Wellington to Melkbosstrand.
Why are these projects necessary? Let’s take Wingfield for example.
Currently, the peak hour average speed is 44 km/h.
On a trip which should take 60 minutes to complete, Capetonian commuters spend 101 minutes. This equates to almost one month’s working hours lost to travel time per commuter each year.
If we abandon the Wingfield project, modelled peak hour speed in 2032 will drop to 14 km/h. This includes a modal shift toward public transport and a fully operational Metro Rail.
But with this intervention, peak hour speed will increase to 51 km/h in 2032.
And the benefit of this is significant.
Improved mobility leads to better access to jobs, schools, healthcare, and recreational facilities.
It improves safety and contributes to a more inclusive and connected region.
Without these interventions, congestion will worsen dramatically, even with improved public transport, which threatens the long-term sustainability of our transport system and the well-being of our residents.
Speaker,
'n Program waaroor ek besonder opgewonde is, en ons Minister van Landbou sal hiermee saamstem, is die verbetering en opgradering van 50% van ons grondpadnetwerk.
Die eerste fase van hierdie projek fokus op die verbetering en opgradering van 5%, oftewel 1 200 kilometer, van hierdie netwerk.
Ons sal met die landbousektor as geheel en in besonder met boere en gemeenskappe in vennootskap tree om sleutelroetes te identifiseer en te prioritiseer om hierdie belangrike onderneming uit te voer.
Hierdie verbeterings sal nie net beter toegang ontsluit nie, maar ook plaaslike ekonomieë, veral die landbou-ekonomie, versterk en help om inklusiewe, klimaatsbestande gemeenskappe te bou.
But more specifically, our key goals are:
To ensure that every household, school, clinic, and business in targeted areas can be reached reliably and safely, in any weather, at any time;
To lay the groundwork for future growth corridors, new housing developments, and integrated service delivery;
To use road construction and maintenance as a platform for employment, contractor development, and technical upskilling, especially for youth and SMMEs;
To build roads that last, with drainage, erosion control, and green design principles built in;
To reduce inequality by improving connectivity between historically underserved areas and the urban economy; and
To position roads as the first step in attracting further private and public sector investment, in housing, retail, transport, tourism, and logistics.
Again, we are investing heavily in our transport infrastructure because the broader social and economic impact is shaping a future Western Cape that is rich with opportunity, that promotes dignity and well-being, and creates prosperous communities.
Speaker,
In terms of major procurements for this financial year, there are a total of 360 infrastructure projects at a value of over R5.3 billion, of which 36 are high-value projects, at R4 billion.
4.37% of these projects are human settlements projects;
16.95% are health infrastructure projects;
23.81% are construction projects; and
54.51% are maintenance projects.
Speaker,
As I conclude, I cannot fail to mention my department’s Corporate Social Investment efforts.
What started out as 67 minutes for Mandela Day, has now become almost institutionalised within our department.
The initiative incudes the donation of laptops, furniture, care packages, and much, much more.
And I am proud to say that this initiative is driven by our staff, and many of these donations are made from their own pockets.
I want that record to show that I thank them all today. You really make me proud.
- Wayne Amsterdam
- Glenville Naidoo
- Chadley Brown
- Brian De Wee
- Mogamat Cooper
- Dillin Golden
- Yazeed Naidoo
At Cloetesville, Malibu High School, Mamre Primary, Pieter Langeveldt, Shiloh, Soneike High School and Vergenoegd Primary, we have handed over in total 52 laptops, 79 desks, and 93 office furniture items.
Speaker,
This goes beyond our mandate; beyond politics and race, and it speaks to what really matters.
And that is who we are as the Western Cape Department of Infrastructure.
Our efforts go beyond bricks and mortar, beyond roads and bridges.
Speaker,
I also want to thank our Head of Department, Advocate Chantal Smith, her team of DDGs and every official who made this budget possible.
I have no doubt that they will leave these chambers today and jump straight into making what I presented today, a reality for the millions of residents we serve.
To my team in the Ministry, under the leadership of Carmen Hartnick – thank you for aligning my vision with the work our department does. It is tough work, but your efforts do not go unnoticed.
En laastens, aan die mense van die Wes-Kaap – ek het vroeër vna vennootskap verwys.
Júlle is die vennoot waarrondom dit alles wentel, en ons kan dit nie sonder julle doen nie.
Hierdie is júlle begroting.
Thank you to the people of the Western Cape for taking our hands and for helping us shape our future together.
Thank you.