Reforms to support public infrastructure investment
Government is introducing fundamental and far-reaching reforms to infrastructure financing and delivery in an effort to optimise the infrastructure value chain to be effective and efficient.
“In this way, we will strengthen the public investment management and the associated value chain. We will also attract private sector participation,” Finance Minister Enoch Godongwana said on Wednesday in Parliament.
According to the 2024 Budget Review, over the next three years government plans to invest R943.8 billion in infrastructure.
This includes investments of R486.1 billion by state-owned companies and public entities, R213.8 billion from municipalities and R224.8 billion from provincial and national government.
Consolidated spending on buildings and other fixed structures will increase by an average of 15.9 per cent over the next three years.
“We gazetted the amendments public-private partnership (PPP) regulatory framework for public comments earlier this week. The amendments seek to reduce the procedural complexity of undertaking PPPs, create capacity to support and manage PPPs, formulate clear rules for managing unsolicited bids, and strengthen the governance of fiscal risk.
“We are reviewing institutional arrangements and governance for catalytic infrastructure. The intention is to create clearer mechanisms for accountability, cooperation and coordination. We are also consolidating similar functions to reduce duplication and inefficiencies. The intention is to fast-track delivery, particularly of blended finance arrangements,” the Minister said.
Government is also introducing several new financing instruments, such as infrastructure bonds and concessional loans.
“As part of this, a flow-through tax vehicle for specific infrastructure projects, similar to trusts and other investment vehicles, is being considered. A new funding window for proposals under the new dispensation of financing instruments will be opened to public institutions shortly.
“Through these reforms, greater efficiency gains and infrastructure delivery will be fast-tracked. This will benefit network sectors, social infrastructure, PPPs and blended finance projects,” the Minister said.–SAnews.gov.za
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Wed, 02/21/2024 – 14:45
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