THE Infrastructure Fund has submitted four projects, collectively valued at R21-billion, for National Treasury approval and is finalising four more, valued at nearly R85-billion, for submission in 2022.
Infrastructure Fund head Mohale Rakgate reports that the fund itself will contribute R5.4-billion to “catalyse” the four initial projects, which are being funded using blended finance mechanisms that incorporate both public and private resources.
The projects include both social and commercial components, with the user-pays principle applying to the commercial elements, while the social aspects are funded through fiscal transfers.
The initial projects seeking approval under the National Treasury’s Budget Facility for Infrastructure (BFI) include:
- the long-delayed R12.4-billion Mokolo-Crocodile River Water Augmentation Project Phase 2, which is required to supply the water needed at Eskom’s Medupi power station once flue gas desulphurisation is installed on its six units;
- a R4.5-bilion upgrade and refurbishment of Lepelle Northern Water’s Olifantspoot and Ebenezer water supply
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