Infrastructure development within a regulated environment: Concerns for regulators

Abstract

Poor delivery of infrastructure leads to inefficient pricing of these assets, which is passed through to consumers. Inefficient pricing is caused by a poor selection of a funding and financing method as well as project overruns. This article used a case-study approach to investigate if South African (SA) infrastructure projects were executed efficiently. It was found that the procurement method was not a reason for inefficient infrastructure delivery. Further, SA projects overran significantly by between 5 and 58%. The case of Transnet’s pipeline project was highlighted. Two case studies (Gautrain and e-tolls) are presented to highlight issues around funding. It was found that the user-pays mechanism of funding is efficient only if there is complete transparency and communication between the user of the infrastructure and other stakeholders. Given the findings, this paper ends with policy recommendations for regulators of utilities that will ensure that consumers are protected.

Control and accountability in supply chain management: Evidence from a South African metropolitan municipality

“…(Sharma et al, 2019, p. 947) Supply Chain Management encompasses acquisition, contracting, buying, renting, leasing and purchasing (Sharma et al, 2019, p. 950), and it places emphasis on the principles of equity, integrity, economy and efficiency. Thus, as a process, SCM is predicated on prudent planning, implementing and controlling operations of the supply chain, subject to the values of cost-effectiveness, fairness, competitiveness and transparency (Ismail et al, 2014;Manzini et al, 2019;Simangunsong et al, 2016). The core SCM principles/pillars are, therefore, value for money, open competition, ethics, fair dealing, accountability, prudent reporting and equity (Dlova & Nzewi, 2014;Enderle, 2015, p. 60;National Treasury [Republic of South Africa], 2012, pp.…”

Modelling the link between supply chain risk, flexibility and performance in the public sector

“…It is widely acknowledged that public SCM is an important tool for the development of society through its contribution to both micro-and macroeconomic developments in the country (Dzuke & Naude 2015;Gurría 2016;Harland, Telgen & Callender 2013). Public SCM involves the spending of monetary resources by non-financial public enterprises such as stateowned enterprises, provincial and local governments (Ismail et al 2014). For instance, it was projected that the South African government's total expenditure would be at least R1.5 trillion between 2016 and 2019, across all spheres of government (South African National Treasury 2016).…”