Public private partnership opportunities
An opportunity for public private partnership (PPP) investment in infrastructure in South Africa has arisen through the government's Budget Facility for Infrastructure (BFI).
The closing date for submissions is 30 April. Dennis Farrell of Business Café in George encourages civic and business organisations to use this opportunity to engage and codrive related development with all governmental spheres. "Should there be interest in a discussion regarding this, I invite interested people to let me know and I will set up a meeting."
Government has a focus on infrastructure investment to promote growth and social development in a sustainable manner. The BFI is a budget reform initiative established to support priority infrastructure projects through a more rigorous project planning, appraisal, and selection process. It requires that projects have sustainable financial arrangements and effective development and execution capacity.
National Treasury intends to utilise the BFI mechanism to develop a pipeline of projects to test alternative financing and funding models. These include private sector financiers and funders, development finance institutions and international finance institutions
and funders.
Two types of proposals will be considered:
A. Projects and programmes that can or have already secured private, development or related financing, but require additional funding to address a viability gap
B. Projects and programmes that have not yet secured private, development or related financing and require support to structure a financing arrangement.
The submissions may include blended finance initiatives that require a capital contribution for the social component and/or
debt instrument(s) to enhance the transaction.
Further, submissions under private sector participation frameworks including PPPs (concessions and special purpose vehicles) that have a viability gap will be considered. Social interventions that want to use alternative delivery mechanisms (such as output-based contracts) to accelerate delivery, but have a capital expenditure funding gap or do not have access to debt markets, may also be submitted.
For more information, contact Dennis Farrell on 082 453 5840.