A first of its kind project preparation bid window that will allow state owned entities, public entities and municipalities to apply for project preparation support has been announced.
Public Works and Infrastructure Minister, Dean Macpherson and Acting Head of Infrastructure South Africa (ISA), Mameetse Masemola launched the project preparation bid window in Johannesburg on Tuesday.
‘As we unveil the first-of-its-kind project preparation bid window, we are taking a decisive step towards achieving the economic growth and job creation that our country so desperately needs,’ said the Minister.
The bid window invites submissions from national and provincial governments including state owned entities, public entities, municipalities and private sector projects to apply for project preparation support.
Macpherson said the initiative was a crucial step toward expanding infrastructure investment in the country adding that the announcement represents an important moment for South Africa and an evolution in the wo
rk that Infrastructure South Africa does.
‘No longer are we talking about the pipeline of infrastructure projects, we are building.
‘This initiative will enable us to move beyond the talking phase and focus on action-on laying the foundations for sustainable infrastructure that will support long-term development.
‘It is not just about bricks, mortar, or steel. It is about creating a solid foundation for our economy to thrive, for our people to prosper, and for our nation to rise.
‘Infrastructure development touches every aspect of our lives, from the water we drink to the roads we drive on and it has the power to transform not only our economy but our society as a whole. The project preparation bid window we are unveiling today is therefore a game-changer.’
Macpherson said for far too long, one of the major barriers to infrastructure development in South Africa has been the lack of sufficient project preparation support.
‘We are providing the tools necessary to ensure that infrastructure projects are sh
ovel-ready, so they can be implemented efficiently and effectively,’ he said.
Working together with ISA at the helm, government will see more cranes in the sky, more roads being built and more renewable energy projects coming online.
Masemola said one of the major contributing factors to under investment in infrastructure is the lack of sufficient project preparation support for infrastructure projects.
‘To address these challenges and unlock the potential of infrastructure investments in South Africa, the National Treasury has granted ISA a project preparation fund to support project development to accelerate the pace and quality of infrastructure delivery,’ she said.
Masemola said in future, ISA seeks to catalyze seed funding to blend with other project preparation facilities available to develop viable and bankable infrastructure projects.
The project preparation support is set to extensively expand the ability of construction projects to be implemented in South Africa. This as one of the major contri
buting factors to under-investment in infrastructure is the lack of sufficient project preparation support.
The new bid window builds on the 12 infrastructure initiatives President Cyril Ramaphosa previously announced at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) in March this year which already benefits from the first R179 million in project preparation funding allocated by the National Treasury to ISA to support catalytic projects that otherwise would not progress to implementation stage.
Applications
Applications for the next phase of project preparation bid window announced by the Minister today can made at ISA.
Applications close on 06 December 2024 and is specifically for projects valued at more than R1 billion which have the potential to crowd in investment from alternative sources such as Multilateral Development Banks and Development Finance Institutions other than the national fiscus.
Successfully selected projects will receive comprehensive project preparation a
ssistance including funding structuring support, technical support, legal support, institutional and governance arrangements, capacity deployment and regulatory compliance studies.
The following priority sectors will be considered for project preparation financing:
Energy
Water and Sanitation
Transport (major roads, airports, ports and freight transport)
Human Settlements (excluding student accommodation)
Social Infrastructure (Education and Health)
Municipal Infrastructure (focus will be on infrastructure projects that have potential to leverage private sector financing)
Industrial Development Zones and amp, Special Economic Zones (IDZs and amp, SEZs).
Guidelines for the project preparation bid window can be found on www.infrastructuresa.org.
Source: South African Government News Agency