The DBSA aims to provide a full package of support to development initiatives within South Africa and the Southern Africa Development Community (SADC) region, in the realization that infrastructure delivery has broader socio-economic and cross-border implications and impacts. The Bank is primarily concerned with promoting the economic integration of the SADC economies, enabling individual economies to use internal resources more effectively and the region to become more competitive in the global economy.
Funding Criteria
To qualify for funding, projects must meet certain key criteria. In the first instance, a project must be consistent with the DBSA’s sectoral and geographic mandate, i.e. in support of infrastructure development within South Africa and the SADC region. Projects must deliver impact on the lives of the communities and areas they will serve. This implies that projects must be financially and economically viable and must benefit the economy of the host country. They must be socially responsible, environmentally sustainable, technically appropriate, and legally and contractually sound. The implementing agency must have the institutional capacity to plan, implement and manage the project. All risks must be clearly identified, thoroughly analyzed and prudently mitigated. Overall, the development impact of the project should be maximized and should be sustainable.
Project Life Cycle
Whilst the DBSA adopts a rigorous approach to project appraisal, we strive to ensure that the process is streamlined and user-friendly. Although it is not possible to specify standard process times, the entire project appraisal and decision-making process may be completed within two or three months, provided that the project is at an advanced stage of preparation and the required information is available.
The appraisal process begins with the receipt of a project information memorandum or business plan that identifies the nature and scope of the project; the structure of the sponsor or institution responsible for the project and its technical and financial ability to plan and implement the project. During the appraisal process, the DBSA will evaluate the technical, financial, economical, environmental, social, institutional and legal aspects of the project and the applicant/ project owner. This is a highly interactive process that culminates in the project appraisal report and term sheet. Should DBSA’s participation be approved, negotiations will commerce with the client regarding proposed terms and conditions. This process is concluded by the finalization of the relevant legal documentation and disbursement of funds.
Catalyzing Operations and Maintenance
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Water Demand Management Project
The Water Demand Management Programme, hosted by the DBSA, and supported by the Swedish International Development Cooperation Agency (Sida), is a Southern Africa Development Community (SADC) region Programme. The development objective of the Programme is “to entrench a Water Demand Management (WDM) culture in Southern Africa that contributes to the SADC goals of regional integration and poverty alleviation through pro-poor, efficient and sustainable utilisation of water in the SADC region.”
The Programme intends to build on the two previous phases of a Sida financed WDM project, implemented between 1997 and 2004. The principle objectives of the Programme include: garnering greater acceptance and consolidation of pro-poor WDM practices in Southern Africa; implementing WDM activities and creating confidence among credit institutions to finance WDM projects.
All activities the Programme will undertake can be categorised into one, or a combination of three different types of services: namely, support services, project development service and finance facilitation services. Support services will assist in promoting a favourable environment in which WDM actions can take place. Project development services are largely grant-based. It is one of the objectives of the WDM Programme that services move from being grant-based to loan based.
It is envisaged that the support services will create a well informed demand. The project development and finance facilitation services will be offered in response to a demand for actual implementation of WDM practices. In order to find out more about how to request assistance with implementation on WDM activities through the Demand-Response system, please contact the Project Implementation Unit (PIU) directly.
WDM Project Contact Details
Dr Themba Gumbo (Project Manager), Joanne Cowell (Communications Specialist), Nontokozo Mhlanga (Project Administrator).
Tel: +27 11 313 3362
Fax: +27 11 206 3362
Email: NontokozoM@dbsa.org
Demand Response Mechanism and Procedure Illustration
Renewable Energy Market Transformation (REMT)
The Renewable Energy Market Transformation Project (REMT) is a GEF/World Bank funded project launched to help South Africa eliminate barriers to renewable energy development as it strives to reduce the country’s GHG emissions and reach the renewable energy target of at least 10,000 GWh contribution to final energy consumption by 2013. The project has two main components namely the Renewable Energy Power Generation (REPG) sub-component and the Commercial Solar Water Heating (CSWH) sub-component.
Both sub-components offer matching grants (MG) for capacity-building to assist beneficiaries to identify, prepare, and finance investments and improve their business and market development capabilities. The CSWH sub-component, has in addition to the MG, a performance grant (PG) which supports capacity-building in such areas as will contribute to demonstrable performance improvements (e.g. design, installation, etc).
For more information on the REMT project please visit the REMT website: www.remtproject.org