Reforming procurement standards in order to effectively deliver public infrastructure: Rethinking the regulatory environment in post-pandemic South Africa

Abstract

strategic and developmental approach into South Africa’s public procurement policy regime and applying such an approach specifically in implementing investment in new infrastructure post-COVID19. A strategic and developmental approach to public procurement would represent a major advance beyond the administrative paradigm currently dominating the procurement regime. This study’s focus upon the regulatory framework in terms of which a pipeline of megaprojects can be delivered is crucial. As is broadly admitted across various government levels, it is not the availability of money but the ‘regulatory and policy environment’ that is weak in regard to infrastructure delivery (Planting 2020). This sentiment is confirmed in a recent National Planning Commission (NPC) background paper which found significant underspending of infrastructure budgets in all spheres of government and state-owned entities, as well as many differences in the understanding and interpretation of infrastructure regulation, policy and practice which undermine the effective and efficient procurement of public infrastructure (Watermeyer & Phillips 2020). Research has shown government policies are one of the significant factors exerting influence on supply chain flexibility. In turn, supply chain flexibility exerts a positive influence on the performance of the public supply chain (Mhelembe & Mafini 2019). This research study identifies a specific layer of regulation within the governance regime which is a key factor impeding the procurement and delivery of public infrastructure in South Africa. We first identify current weaknesses of conflict and confusion at the level of soft law in the procurement and delivery of public infrastructure projects. Then we present a detailed case study of a successful South African megaproject (the procurement and delivery of the public infrastructure for two new universities, the New Universities Project) to demonstrate that these weaknesses can be avoided. The research note’s regulatory account focuses on the key element of quality in the South African public procurement regime, distinguishing that concept from the often conflated notion of value-for-money. We discuss how the problems identified could be addressed by means of changes to soft law prior to the finalisation of the current and ongoing public procurement legislative reform process. Contribution: Through a case study of the on-time and with-budget public procurement and delivery of two new universities for South Africa, the article demonstrated that national policy on public infrastructure can be successfully implemented, with attention to the key soft law layer of regulation.