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Public-private Partnerships in Infrastructure Development
Public-private Partnerships Key To Infrastructure Development
By Shumirai Chimombe
A total of 12 major infrastructure projects were launched at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) 2024 which took place in Cape Town from 17 to 19 March. parity. Despite some progress A total of 12 major infrastructure projects were launched at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) 2024 which took place in Cape Town from 17 to 19 March.
The event brought together key stakeholders in the infrastructure investment space for discussions around the key goal of investing in public infrastructure projects to grow the economy and, in particular, to explore partnership opportunities between the public and private sectors.
The projects that have been earmarked for project preparation span the transport, storage and communication; electricity, gas and water; community, social and personal services; mining and quarrying; agriculture, forestry and fishing sectors, and fall under South Africa’s 2024/2025 infrastructure pipeline.
They were launched to accelerate public and private-led development in the country, and will receive extensive support from Infrastructure South Africa (ISA), the single point of entry and focal point for driving infrastructure planning, management, and delivery in the country.
In his keynote address at the launch of the projects on 19 March during the event, President Cyril Ramaphosa indicated that the symposium was an important part in the government’s effort to close the infrastructure funding gap in the country. He said that the symposium was initiated to bring together the great minds from government and private sector to participate in finding solutions for, among other things, the funding of infrastructure.
“If we are able to do that, we will be able to solve a major problem because it is estimated that to achieve our infrastructure goals, we need almost R4.8 trillion to address the challenges that we face as a country. And we need that from both the public sector, and the private sector to a much larger extent. And that is why many of you are here because the people with the money are here.”
Some of the projects in the pipeline include:
Lng Import Terminal - KwaZulu-Natal
Transnet National Ports Authority (TNPA) appointed the Dutch private company Vopak Terminal Durban & Transnet Pipelines (TPL) Consortium Venture to develop and operate the country’s first liquefied natural gas (LNG) terminal at the port of Richards Bay. The total investment value of the terminal is at R2.1 billion and is expected to generate about 4 500 jobs. It aims to import between 1 and 5 million tons of LNG per annum. The operator will run the LNG terminal for 25 years in a public-private partnership with the private sector as the lead investor.
Project Ukuvuzela - National
Project Ukuvuzelela is a transnational, high-capacity rail corridor for automotive volumes. The project will involve upgrading the rail line from Gauteng to the Eastern Cape and will serve to take the pressure off the KwaZuluNatal corridor and Durban as the sole port for imports and exports in the area. The overarching target is to have bi-directional rail transportation of a minimum of 150,000 fully built units per year by 2026. The project is envisaged to result in nearly 4000 construction jobs and just over 1000 permanent operations jobs according to Gauteng Premier Panyaza Lesufi.
Refurbishment Of Health Facilities - National
In the community, social and personal services sector, the government will launch an infrastructure strategy aimed at refurbishing 104 health facilities throughout South Africa, valued at R16 billion. Furthermore, the Department of Public Works and Infrastructure has laid out plans to improve school building and education-related infrastructure to pave the way towards increasing access to the internet and libraries for school children throughout the country.
Special Economic Zones - Mpumalanga and The Northern Cape
Multi-billion-dollar Special Economic Zones (SEZs) in the municipalities of Nkomazi and Namakwa are expected to significantly stimulate economic activity, industrial development, trade and job creation in the Mpumalanga and Northern Cape provinces. The Nkomazi SEZ is planned to develop primary agricultural production and agroprocessing. and the Namakwa SEZ will stimulate economic growth and job creation in the Northern Cape which is one of South Africa’s most mineral-rich areas.
Closing The Funding Gap
The 12 projects form part of the government's vision and strategy to place infrastructure at the heart of sustained economic growth and job creation through its Infrastructure Investment Plan. Two of the pillars of this plan which is coordinated by Infrastructure South Africa include:
Closing the infrastructure investment gap by building private sector confidence in the capability of the state to deliver bankable public infrastructure projects.
Closing the infrastructure funding gap through strategic public-private partnerships, generating innovative funding models, and blended finance among other strategies.
The 12 Infrastructure Priorities For Project Preparation Launched At The SIDSSA In March Include:
LNG Import Terminal; KwaZulu-Natal
Durban Container Terminal Pier 1; KwaZulu-Natal
Berth A100 for Liquid Bulk; Eastern Cape
Refurbishment of Health Facilities; National
Schools Project; National and KwaZulu-Natal
Eskom Mossel Bay Gas; Western Cape
Eskom Tubatse Pumped Hydro Storage; Limpopo
Rooiwal Phase 2 Waste Water; Gauteng
Amathole Water Bulk Supply Augmentation; Eastern Cape
Nkhomazi SEZ; Mpumalanga
Namakwa SEZ; Northern Cape
