Gaps have been identified in terms of the impact that the Hilton-Mondi development project will have on job creation and skills development, which could be explored in the near future. The analysis reveals that development of water infrastructure in uMngeni Local Municipality contributed to job creation and skills development.
- Background
- Demographics
- Education
- The economy
- Motivation
- The purpose of the research
- Objectives of the study
- The importance of the study
- Questions to be answered
- The case study-Hilton-Mondi Development Project
- Key stakeholders in the project
- The Memorandum of Understanding
- The project location
- Research methodology
- The structure of the study
- Conclusion
The aim of the National Infrastructure Plan is to unleash infrastructure development along these eighteen corridors to unlock economic development. The purpose and objective of the National Infrastructure Development Plan was described by President Jacob Zuma during the State of the Nation Address on February 9, 2012 as follows: “The massive investments in infrastructure must leave more than just power stations, railways, dams and roads. .
Many research studies have been conducted to examine the impact of infrastructure development on economic development and most of these studies point to two distinct characteristics of infrastructure development. All of these studies share findings that argue that there is a link between investment in infrastructure development and economic development.
The roles of infrastructure development
Improving water resources and responsive economic infrastructure networks are important strategic objectives of the National Infrastructure Development Plan and water and sanitation is Strategic Integrated Project (SIP) 18 of the National Infrastructure Development Plan (Umgeni Water, 2014).
Infrastructure development and job creation
It was emphasized that investments in infrastructure would improve the competitiveness of the European Union and its potential for job creation. The aim of the program was to create employment and provide income to rural households.
Water and sanitation infrastructure and economic development
Because of the important role that water and sanitation play in economic development, every three years the World Water Assessment Programme, a program of the United Nations, prepares reports that emphasize the important role of water in development and economic growth (Landers, 2009). ). The United Nations Millennium Task Force on Water and Sanitation recommended that water and sanitation should be part of the development agenda (Anand, 2006).
The social implications of water and sanitation infrastructure
It is known that the provision of running water relieves women from non-paying jobs or collecting water for income-earning jobs and ultimately increases personal and family income and ultimately the Human Development Index (HDI) (Kusharjano and Kim, 2011, p .122). The United Nations held a conference on water and sanitation in 1977 and the conference was followed by the declaration of the International Drinking Water Supply and Sanitation Decade in 1980. Shortly after water and sanitation was placed on the international agenda by the United Nations, between In 1981, people were provided with clean water and 119,000 people with sanitary facilities (van Imschoot, 1992).
Studies show that infrastructure acts as a catalyst for economic development resulting in job creation, while the Human Development Index (HDI) improves as people earn higher incomes, eat good food and live healthy lives due to the employment opportunities that arise from economic development (Kusharjanto and Kim, 2011).
This relationship between infrastructure development and the Human Development Index was validated in a study conducted in Java which concluded that a 1% increase in water supply leads to a 0.03% increase in the Human Development Index. The positive impact starts from the construction phase throughout the project life cycle (Koo et al., 2008). All programs ensured that between 3% and 5% of construction costs went to local manufacturers (van Imschoot, 1992, p. 130).
As the impact of water and sanitation infrastructure on job creation is very dynamic, in Branenburg, East Germany after 1990, 50 billion euros were invested in the transformation of water supply and waste water disposal systems and 930 million euros were spent on sewage disposal systems.
Size of the scheme
Other possible employment opportunities created during the development of water infrastructure include trenching for pipelines, cleaning and rehabilitation of canals, etc. In Madagascar, for example, water infrastructure facilitated the construction of irrigation systems and created jobs, but additional employment opportunities were created when small-scale irrigation schemes were maintained, and 180 days of work per hectare per year were then created (van Imschoot, 1992). . By 2005, US$41 billion had been allocated to infrastructure development, and according to the Bureau of Labor Statistics in 1994, it was estimated that 833,000 new jobs would be created (Andreassen and Berman, 1994).
During the construction phase, labor intensive methods were used and only local labor was involved in the project.
Water and sanitation infrastructure and skills development
Umgeni Water built a scheme in the Vezokuhle Tribal Authority in the Sisonke District Municipality, in KwaZulu-Natal. The program was able to achieve the development objectives of increasing employment per unit of expenditure, but also contributed to the development of individual skills while building assets (McCutcheon, 2001). Due to the success of the project, it was scaled up to Soweto where the service provider was appointed to upgrade the water network for the Soweto City Department of Engineers using the same method used in Ilinge in the Eastern Cape.
In the 2003/4 financial year the program received a budget of R50 million from the provincial government and in that year each contractor employed between 60 and 100 workers and their payment was task-based in accordance with EPWP guidelines.
Public Works Programme and job creation
In Limpopo, the Gundo Lashu program, which started in 2001, selected 24 small contractors, thirteen of whom were women. The program was so successful in creating employment, but especially in increasing the skill level of the small contractors (du Toit, 2005). In South Africa, unemployment reached crisis levels in 2003 and the government was under pressure to tackle high levels of unemployment.
The government responded with a strategy that proposed halving unemployment between 2003 and 2014 and the Public Works Program to play a leading role in responding to the unemployment challenges.
Labour intensive method
While many private contractors claimed to have accepted the use of labour-intensive methods, there were no committed contractors and many did not have the capacity to handle labour-intensive work. Twelve years later, in 1992, the South African Federation of Construction Contractors (SAFCEC) recognized that the industry could use labor-intensive methods and recommended that the approach be aligned with the design. The association further recommended that training and capacity building are needed because new skills need to be relearned to ensure the success of labour-intensive methods as technology has taken over most functions.
The application of labour-intensive methods in countries such as Botswana and Kenya has shown positive results.
Expanded Public Works Programme
The South African government has allocated R15 billion to implement the Expanded Public Works Program (EPWP), which is expected to create 1 million jobs between 2004 and 2009. Without going into the details of the success and failure of the Expanded Public Works Program (EPWP), in the end 1 069 819 temporary jobs were created through the Expanded Public Works Program but the actual expenditure of the entire program was R42 billion, which more than double the original budget of R15 billion (McCutcheon and Parkins, 2012). . It is also important to consider briefly the limitations of the expanded public works program and the community public works program that were recognized after implementation.
Most of the data and reports on the Expanded Public Works Program and Community-Based Public Works Program focus only on job creation.
Water infrastructure and entrepreneurship development
Sewer treatment plant and the environment
Water infrastructure and revenue generation
Conclusion
- Qualitative method
- Data collection
- Primary data
- Secondary data
- Documented data
- Literature review
- Sampling method
- Purposive data
- Procedure
- Interview schedule
- Data analysis
- Challenges during the research
- Conclusion
The purpose of the interview was to obtain information on how the Hilton-Mondi development project could contribute to job creation and skills development during and after the construction of water and sanitation infrastructure. An introduction was made and the purpose of the interview was explained, and a consent form was signed. He is one of the respondents who were targeted for an interview because he participated during the start of the project.
Agreements were made prior to the interview, but it was difficult for many respondents to keep their agreements.
- History of the project
- The analysis of the research study
- Hilton-Mondi Development Project
- Water and sanitation infrastructure and job creation
- Nature of jobs to be created
- Desirability of the jobs created
- Source of labour
- Skills development
- Lessons learnt from infrastructure development
- Consultation
- Local benefits
- Skills development
- Infrastructure as an economic development vehicle
- Other benefits
- Further comments
- Stakeholders
- Conclusion
Most interviewees believed that the project would result in economic growth in the Midlands. These comments from the interviewees indicate their understanding of the links the project has with national and provincial programmes. The project also reflected lessons learned from other projects, and the comparative analysis of HMDP was told by interviewee H.
Although the project was well received by many respondents, objections were raised to part of the development project during the rezoning application.
- Infrastructure development and economic development
- Water and sanitation infrastructure and job creation
- Nature of jobs
- Source of labour
- Hilton-Mondi development Project and skills development
- Lessons learnt from the Hilton-Mondi Development Project
- Job creation
- Skills development
- The benefits of the Hilton-Mondi Development Project
- Comments
- Conclusion
Phase one of the project involves the provision of bulk water supply to the Hilton area. So the new contractor should acquire skills at the end of the contract from the main contractor”. There was also no indication that an accredited trainer was available during the construction of the bulk water supply of the Hilton-Mondi Development Project.
However, a follow-up survey in the near future could be useful to shed some light on the trainees' future prospects.
The findings
- Job creation
- Skills development
The assumption of the study is that there was an unskilled workforce that was employed during the construction phase and that they were trained according to the responses received from some of the interviewees. It therefore follows that there has been job creation and skills development during the first phase of the Hilton-Mondi Development Project and that the second phase will result in more employment opportunities as demonstrated by the construction of the Hilton Hospital. Eight of the nine interviewees who understood the Hilton-Mondi Development Project was that the project is intended to stimulate economic development in the Hilton area.
All interviewees believed that more jobs still need to be created as a result of the Hilton-Mondi development project.
Recommendations
- Job creation
- Skills development
- Recommendations for further studies
A Simultaneous equation approach" Journal of Urban Economics, 30 (3) p. 2004) “Infrastructure and Regional Economic Development in Rural China”. Technological Forecasting and Social Change, p. 2013) "Transport infrastructure and employment growth in the metropolitan peripheries of Paris.". Review of Development Economics, 9 (2) p. 2012) "On the economic effects of investments in railway infrastructure in Portugal.".
Annals of Regional Science, Spring, pp. 1997) China's Infrastructure and Economic Development in the 21st Century Telecommunications Infrastructure and Economic Development: A Simultaneous Approach.'.
Interview schedule
Consent letter
