Black-empowered JSE listed civil engineering and construction group Sanyati said on Friday that the 2010 budget was good news for its industry and most importantly confirmed government's commitment to the infrastructural spend program of R846 billion for the next 3 years.

"The R52 billion wage subsidy plan is a bold step and will provide further impetus to our existing obligation and commitment to create as many employment opportunities as possible," said Sanyati CEO, Malcolm Lobban.

"The country's infrastructural needs are well understood, namely water, roads, power, rail, bulk infrastructure, housing, etc.

The budget has been allocated and the acid test will now be the speed and effectiveness applied by Government departments, agencies, local governments etc in converting the spend program to the multitude of project awards that will ultimately deliver infrastructural improvements," he said.

Sanyati said it was confident that its strong positioning in these markets, together with well-established partnerships with a number of emerging contractors would ensure that the group secures a fair share of these awards in the months and years ahead.

"We are optimistic and confident that there is growth around the corner. It is a question of timing. "We aren't betting the farm on government, we would be foolish to do that," the chief executive said.

Lobban said there is growth activity in the private sector, particularly in mining infrastructure. "We are bullish," he said. "We do have more than enough work to keep us busy," he said adding that tenders in the past week had amounted to R900 million, although 80% of this was within government projects.

Sanyati said that currently 80% of its income relied on government sector projects, having historically been 60/40 in favour of government projects.

"We would like to get it back to that level," Lobban said. "It would appear that there is greater sense of optimism on capex spending coming back into the market. "There are far more tenders, and more activity now than last quarter," he added.

The group pointed to its black empowerment structure, being 43% black owned as a competitive advantage in the market, along with a host of entrepreneurs on its payroll.

Sanyati said that the industry had taken a knock, and the group had suffered the usual challenges in a bear market.

"Our job is to keep our heads down, and the share price will take care of itself," Lobban said. "Addressing cross border work, Lobban said: "This time next year I would feel disappointed if we were not active in at least one or two countries."

In January Sanyati announced the appointment of two new independent non-executive directors, Zohra Ebrahim as the non-executive chairperson and Lesibana Fosu (who will also chair the audit committee).

In October 2009, the group signalled its intention to dispose of its roads surfacing business in KZN, which consists of a non-core asphalt manufacturing and supply plant.

"The sale of this business to Aqua Trans was concluded last week and the effective date (28 February 2010) has been timed to coincide with the completion of our supply and paving contract at the King Shaka Airport," Lobban said.

He said the Western Cape was an area in which the group was not represented, and it would look at opportunities there.

The group said it was also looking at mining infrastructure as an opportunity.

"Roads throughout the country remain a key focus for us, but maintaining a primary focus on civils infrastructure," he said.

The chief executive highlighted a lack of engineering skills hampering the market, particularly in local government, and provincial departments.

Lobban also noted whilst KZN continues to be a vital geographic market for Sanyati, "we have identified the need to relocate the head office to Johannesburg.

This relocation will mean that the corporate office is better aligned to existing and prospective national clients, partners and service providers," he said.