Finance Minister Pravin Gordhan announced in his budget speech yesterday that only 68% of the money intended for large infrastructure projects had been spent in the past financial year. This amounted to only R178-billion of the R260-billion available.

Municipalities especially have battled to attract managers with the skills and technical expertise needed to run projects.

Gordhan said state departments and municipalities could lose money earmarked for infrastructure development if they misused or failed to spend it.

"Government departments and municipalities that do not spend, underspend or misspend their allocated funding will be at risk of losing the allocations. The relevant officials will also be held liable for such misdemeanours," he said.

The government is undertaking a R3.2-trillion infrastructure development programme to expand the electricity, transport, water and telecommunications networks.

The Presidential Infrastructure Coordinating Commission has identified key projects that require long-term investment. These include the R300-billion improvement project for the railway between Mpumalanga and Limpopo.

Transnet will explore the possibility of establishing a high-speed passenger and freight line between Johannesburg and Durban.

About R824-billion has been set aside over the next three years for major infrastructure projects. The Treasury has put several measures in place to ensure that money is properly spent and that projects are completed on time.

Specialists will be brought in from the private sector and from the Development Bank of Southern Africa to take over the running of projects that have stalled because of a lack of capacity in government departments or municipalities.

The Municipal Infrastructure Support Agency is to be established to assist rural municipalities that lack capacity.

About 150 graduate interns specialising in spatial planning, and people with engineering qualifications, are being seconded to 43 municipalities to assist them.

A number of projects are in their infancy. These include the Passenger Rail Agency of SA's R4-billion project to renew its fleet and upgrade railway stations nationwide over the next three years. The refurbishment of rolling stock and the upgrading of stations will cost R80-billion over the next 20 years.

The government has provided R75-billion to upgrade water infrastructure and augment industrial and domestic water supply.

Transnet has just completed phase one of a R23-billion pipeline to carry liquid fuels between Durban and Johannesburg.

Speaking at a press briefing before delivering his budget speech, Gordhan said he was confident that the government would find the money to fund the projects.

"We will find money. There's money in the system. Over the next three years the government as a whole . has a total resource of over R4-trillion and it's within that resource package and around that resource package that we will find ways to fund the infrastructure projects," Gordhan said.