Six Municipalities: Project Preparation
To support the six municipalities with project preparation to bring identified projects to the implementation stage.
The DBSA has been given the responsibility to manage the Project Preparation funds for potential Infrastructure Fund (IF) projects and programmes. The Bank will utilise the programmatic approach for addressing the selected projects in six municipalities and mobilising private sector participation.
The IF has been established to leverage private and public sector investment in public infrastructure and ensure more efficient and effective use of resources.
The IF is established as a ring-fenced fund under the interim care and maintenance of the DBSA.
The IF will transform public infrastructure finance through the use of “blended finance” in combining capital from the public and private sectors, DFIs, Multilateral Development Bank, and institutions such as the New Development Bank (NDB) established under BRICS.
It is also envisaged that the IF will harness skills and capacity from the private sector to improve the investment appeal of these projects.
Six municipalities (Sekhukhune District Municipality, Vhembe District Municipality, Ugu District Municipality, iLembe District Municipality, Ray Nkonyeni Local Municipality and Sol Plaatje Local Municipality) have applied to the DBSA for assistance with project preparation for projects in various sectors, namely water and sanitation and electricity.
To support the six municipalities with project preparation to bring identified projects to the implementation stage. The Bank evaluates bankability, considers blended finance and how to attract multiple private sector investors. The total value of project preparation support to these municipalities is R50 million.
This project is still underway with its main programme activities being:
- Project registration for grant funding
- Bankable feasibility studies (technical, finance, economic, environmental and socio-economic viability)
- Explore blended finance opportunities
- Implementation model (considering suitable type of contracting)
- Private Sector Participation – PSP model
- Project finance structuring
- Build capacity for operations and maintenance
R50 million.
The bank will be combining capital from the public and private sectors, DFIs, Multilateral Development Bank, and institutions such as the New Development Bank (NDB) established under BRICS.
Sekhukhune District Municipality, Vhembe District Municipality, Ugu District Municipality, iLembe District Municipality, Ray Nkonyeni Local Municipality and Sol Plaatje Local Municipality