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NATIONAL BUSINESS CONFERENCE 2012 Francistown, Botswana Infrastructure Development How are we Doing? Botsile Gubago G4 Consulting Engineers Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Presentation Outline: 1. Definition of Infrastructure 2. Linkage – Infrastructure Development and Economic Growth 3. Examples of Economic & Social Infrastructure in Botswana 4. Brief Chronicle of Botswana’s Infrastructure Achievement 5. How have we faired so far – Comment 6. What have been the challenges – Interrogating our implementation 7. Overall Assessment – How is Botswana poised? 8. Way Forward – Proposals/Suggestions Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure; • Is capital stock that provides public goods and services. • Is essential for the achievement of; economic growth, industrialisation, and equitable income distribution. • Contributes to economic growth; – – – – As a direct input into the production process As a stimulus to other factors of production A stimulus to aggregate demand and thus supply opportunities Indirectly by boosting accumulation of other factors, human capital, etc. • Directly contributes to economic growth – this is an established theory of economics. Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Economic Infrastructure Transport (Rail, Road, Air) Power (Generation, Transmission, Distribution) Water Supply (Potable, Irrigation) Sanitation (Waste Water, Municipal Solid Waste) Information + Communication Technology (ICT) Social Infrastructure Educational Buildings Health Care Facilities Public Buildings Other Social Amenities Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Botswana’s Infrastructure Achievement Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Measurement of Achievement can be: – Financial and/or Physical – Requires time, extensive data and analysis – Academic and not necessary for our current purposes Propose to only demonstrate achievement – By a chronicle of current infrastructure stock – Review and borrow from recent economic studies This should be sufficient for; – Discussion/comment on current challenges – Formulation of broad proposals and suggestions Road, Rail & Air Infrastructure ICT Infrastructure Power Infrastructure Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Health Care Referral Hospitals 1. Princess Marina Hospital, Gaborone 2. Nyangabgwe Hospital, Francistown 3. Sbrana Psychiatric Hospital, Lobatse District Hospitals 1. Letsholathebe II Memorial Hospital, Maun 2. Selebi Phikwe Government Hospital, Selebi Phikwe 3. Mahalapye Hospital 4. Sekgoma Memorial Hospital ,Serowe 5. Deborah Retief Memorial Hospital, Mochudi 6. Bamelete Lutheran Hospital, Ramotswa 7. Athlone Hospital, Lobatse 8. Seventh Day Adventist Hospital, Kanye 9. Scottish Livingstone Hospital, Molepolole Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Primary Hospitals 1. Bobonong Hospital 2. Goodhope Hospital 3. Gweta Hospital 4. Kasane Hospital 5. Masunga Hospital 6 Palapye Hospital 7. Sefhare Hospital 8 Tsabong Hospital 9. 10. 11. 12. 13. 14. 15. 16. Ghanzi Hospital Gumare Hospital Hukuntsi Hospital Lethakane Hospital Mmadinare Hospital Rakops Hospital Thamaga Hospital Tutume Hospital Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Educational Facilities Tertiary Education 1. University of Botswana (13,000 Enrolment) 2. Botswana International University of Science & Technology (BIUST) 3. Botswana College of Agriculture 4. Botswana Accountancy College 5. Institute of Health Sciences 6. Colleges of Education 7. Vocational & Technical Colleges 8. College of Applied Arts & Technology 9. Roads Training College 10. Botswana Institute of Administration & Commerce Primary & Secondary Schools 1. Primary Schools 810 2. Junior Secondary Schools 212 3. Senior Secondary Schools 27 4. Private Secondary Schools 30 Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Public Buildings 1. Office Accommodation 2. Institutional Accommodation – Administration of Justice – Botswana Police – BHC Housing – Other Other Public Facilities 1. Sports Stadia – Maun, Molepolole, Masunga, Lobatse, Francistown, Gaborone 2. Botswana National Library 3. Botswana National Museum Infrastructure Development How are we Doing ? How have we faired? • Is the infrastructure provided in strategic sectors to stimulate economic growth? • Are the physical assets so developed ‘fit for purpose” • Have the physical assets lived to ‘expected service life’ Infrastructure Development How are we Doing ? Infrastructure Development How are we Doing ? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Infrastructure Planning • Must leverage our advantages – (you have coal, plan for its evacuation to market) • Must aim to stimulate growth – (growth doesn’t happen by default) • Must be aligned with the growth strategy e.g for; – Mineral Development – Economic Diversification – Development of Manufacturing – Development of the Agric Sector My Assessment : Infrastructure planning has been fair, but could have been more strategic. In particular, Agric, Electrical Power, Rail transport, Serviced Land are lagging Infrastructure Development How are we Doing ? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Fit for Purpose “That the facility will meet the function for which it was designed” Physical Asset Assessment Comment Roads Fair provision Poor design Drainage failure common during rainy season Early pavement failure resulting in potholes Use of round-abouts causing peak hour traffic jams Air Transport Fair New terminal buildings are a big enhancement New runways should stimulate growth in traffic Focus on tourist hubs necessary Rail Fair New strategy necessary to stimulate growth in mining ICT Good Rates need to come down to stimulate wider usage Power Poor planning Unmaintained Morupule A never reached its 120MW installed capacity. Transmission/distribution prone to instability Water Supply Poor planning Poor Design Supply only better in urban areas. Rates need to come down for industry to be competitive Infrastructure Development How are we Doing ? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Fit for Purpose “That the facility will meet the function for which it was designed” Physical Asset Assessment Comment Sanitation Fair Provision of sanitation facilities better in urban areas MSW disposal costly and needs improvement Poor landfill management Health Facilities Poor Inappropriate design is a common feature Over specification of equipment is common No trained staff provided to operate the facilities Public Buildings Poor Poor and inappropriate design common Over specification and provision of facilities common No trained staff provided to operate the new facilities Infrastructure Development How are we Doing ? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Service Life “That the facility will be adequately maintained and operated resulting in sustained service delivery for its planned economic life” Physical Asset Assessment Comment Roads Early Failure Early failure resulting in high maintenance costs. Early rehabilitation and replacement Air Transport Fair Teething problems with commissioning Rail Fair Extensive investment required to stimulate growth in mining ICT Good Power Early Fairlure Water Supply Could be better Major and costly maintenance issues with NSC I Poor maintenance resulted in early failure for Morupule A Nearly out of commission, requiring extensive rehabilitation Morupule B undergoing commissioning now Infrastructure Development How are we Doing ? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Service Life “That the facility will be adequately maintained and operated resulting in sustained service delivery for its planned economic life” ”Physical Asset Assessment Comment Sanitation Early failure Poor and inappropriate design has resulted in early failure. Early rehabilitation and replacement necessary Costly MSW disposal leading to indiscriminate littering Health Facilities Early failure Lack of maintenance resulting in early failure & replacement Lack of skilled personnel results in under utilisation Public Buildings Early failure Lack of maintenance resulting in early failure & replacement Lack of skilled personnel results in under utilisation Infrastructure Development How are we Doing ? What are the Causes of the above – Interrogating Implementation Poor Planning – Observations _______________________________________________________________________________________________________________________________________________________________________ • Direct causal effect between strategic aspiration and social infrastructure need. • Therefore achievement higher for Social compared to Economic Infrastructure • “Health for all by the Year 2000” is easier to plan for and even to monitor progress • “Diversify the Economy away from Mining” much more difficult to plan, and requires: – Higher level of analysis, – Higher level of skill and diligence – Multi mode teams, economics, scenario planning, strategy and industry specialists Botswana lost focus and has stayed behind the curve Infrastructure Development How are we Doing ? Poor Project Management _______________________________________________________________________________________________________________________________________________________________________ • Refers to the structure adopted to implement and deliver the physical assets • The structure includes the; planning, design, and construction teams • Typically physical assets are delivered late, over budget with poor fit to purpose • Typical causes of this observed as: – Poor project planning and inadequate project definition – Poor outdated project structures and procedures resulting insufficient monitoring – Low skill and competency levels among project team members – Low levels of integrity and diligence among project team members – Unethical practice among team members generally not penalised Accounting Officers took their eye off the ball and we are paying the price Infrastructure Development How are we Doing ? Operation & Maintenance _______________________________________________________________________________________________________________________________________________________________________ • New facilities not provided with trained operators • Poor take-over procedures for new facility by maintenance staff • No familiriasation for maintenance staff before take-over • No additional maintenance training provided for new installations • No additional budget provision to cater for new facilities • No provision for planned and/or preventive maintenance No provision for maintenance – facilities run into the ground Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Overall Assessment • We are not doing too badly. • We have good stock of physical assets • We only need to improve our approaches • And to keep our eye on the ball. Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Africa Infrastructure Country Diagnostic Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Infrastructure Development How are we Doing ? _______________________________________________________________________________________________________________________________________________________________________ Way Forward 1) Improve planning for Infrastructure Development 2) Institute National Infrastructure Development Strategy 3) Institute National Infrastructure Maintenance Strategy 4) Establish National Infrastructure Strategy Development Team 5) Restructure and improve project management structures 6) Restructure and reorganise Project Development Teams 7) Promote Private Sector participation in the form of PPP’s NATIONAL BUSINESS CONFERENCE 2012 Francistown, Botswana THANK YOU Botsile Gubago [email protected]