The Eastern Cape government has committed more than R9bn towards public infrastructure projects, including upgrading schools, modernising hospitals and fixing roads.
Delivering his budget speech in the Bhisho legislature on Friday, finance MEC Mlungisi Mvoko said the province’s commitment to public infrastructure “remains unwavering”.
He said the R9bn would be shared across all critical sectors to strengthen service delivery, expand access to essential services and stimulate growth in the Eastern Cape.
As part of the R9bn infrastructure allocation, R155m in the 2026/2027 financial year will be allocated to premier Oscar Mabuyane’s office for the small towns revitalisation programme, together with a R1.3bn investment over the next three years for broadband infrastructure to improve connectivity from Bhisho to Mthatha, KuGompo City, Komani and Qonce.
“In the education sector, infrastructure receives a total allocation of R2.3bn in 2026/2027, rising to R6.5bn over the medium-term expenditure framework to construct, upgrade and maintain schools.
“Such funding covers new classrooms, essential maintenance, sanitation upgrades and support for over 1.5-million learners, ensuring safe, conducive and modern learning environments.”
The provincial government will allocate more than R1.7bn to the public health sector in the new financial year and more than R5.1bn in the next three years.
This would be used to modernise hospitals, expand rural clinics and strengthen emergency services, with key projects including new maternity wards, theatres, mortuaries and staff accommodation at the Madwaleni and Greenville hospitals, the upgrade of Livingstone Hospital’s emergency facilities and the construction of a new clinic in Cebe Village.
“This includes the health facilities revitalisation grant of R818.9m allocated for maintenance, upgrades and new facilities.”
An additional R40m, Mvoko said, had been set aside for a disaster and climate change response programme to repair storm-damaged facilities and strengthen climate resilience across the health system.
An amount of R145.7m had been allocated to the public works and infrastructure department to deliver modern government service facilities, including the completion of the Mqanduli cluster offices, support progress on the Emaxesibeni cluster offices, and support renovations at the KD Matanzima building, the Botha Sigcau building in Mthatha and the Wilton Mkwayi building in Qonce.
“This work will ensure functional workspaces for public servants and support service delivery in surrounding communities,” Mvoko said.
Financial leakages continue to arise from termination of contracts, unjustified variation orders and excessive standing time claims
— Mlungisi Mvoko, finance MEC
The provincial government would also invest in agricultural infrastructure to support food security, commercialisation and rural livelihoods.
Mvoko said transport infrastructure remained a cornerstone for connectivity and economic integration, adding that road maintenance and upgrades would be prioritised, with R2.7bn allocated in the new financial year, which would increase to R6.6bn over the medium term to rehabilitate, reseal and improve the province’s roads.
The human settlements department would get a cash injection of R1.6bn for social infrastructure, to deliver nearly 4,800 housing units, including serviced sites, rectifications, first-home subsidies and informal settlement upgrades, “prioritising vulnerable communities and ensuring dignified living conditions”.
“We are also investing in cultural and recreational infrastructure, with over R22m allocated to the department of sport, recreation, arts and culture in 2026/2027 to modernise libraries and museums, including the Fingo library, Ntabankulu library and Uitenhage Museum, ensuring communities have safe, functional and vibrant spaces for learning, heritage and social development.”
Despite all the investments, Mvoko said, “weaknesses remain within parts of the infrastructure value chain”.
“Financial leakages continue to arise from termination of contracts, unjustified variation orders and excessive standing time claims.
“These practices inflate project costs, delay delivery and erode limited resources.
“The provincial treasury will therefore intensify oversight and strengthen contract management across departments and implementing agents.
“Gateway review sessions will be conducted for major infrastructure projects by built environment professionals in line with the Framework for Infrastructure Delivery and Procurement Management in South Africa to ensure projects proceed only once they meet the required standards of preparation, cost estimation and procurement readiness.”
Mvoko said strengthening the monitoring of infrastructure procurement for major capital projects remained essential to achieving value for money.
“Departments must ensure that procurement plans are credible and aligned with approved planned infrastructure budgets.”
The provincial government vowed to deal decisively with non-performing service providers and contractors.
“Poor planning, cost escalations and contractor underperformance will not be tolerated,” Mvoko said.
Daily Dispatch
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.