Public Works and Infrastructure Minister Patricia de Lille says R24 billion has been allocated to the Infrastructure Fund for blended finance projects that will, among other things, include student accommodation and social housing.
De Lille said this when she held a media briefing to update journalists on progress made over the past year on various projects in the Infrastructure Investment Plan.
“In August 2019, following a Cabinet approval, the Infrastructure Fund was announced as a ring-fenced division of the Development Bank of Southern Africa (DBSA).
“The Infrastructure Fund was operationalised in 2020 with a commitment of R100 billion from government over a 10-year period and has been capacitated with the requisite skills and capacity to enable it to achieve its blended financing mandate.
“Over the next three years, R24 billion has been allocated to the Infrastructure Fund for blended financed projects.”
De Lille said projects are approved by the Infrastructure Fund for blended finance with contributions from the fund and the remainder to come from the private sector.
Among the Infrastructure Fund pipeline projects that were submitted for Budget Facility for Infrastructure (BFI) consideration, include:
- For the 2021 Adjustment Budget, four student housing infrastructure projects delivering 9 500 beds at a cost of over R3 billion was considered. The BFI approved amount was R900 million from the Infrastructure Fund over two financial years.
- For the 2022 Budget, the following projects were considered by the relevant BFI committees: a social housing programme worth R1.1 billion. The Budget Facility for Infrastructure approved an amount of R304.5 million over the next two financial years from the Infrastructure Fund.
- Lepelle Northern Water with a total project cost of R4.5 billion. The Budget Facility for Infrastructure approved an amount of R1.4 billion over the next three financial years from the Infrastructure Fund.
“The Infrastructure Investment Plan forms a central part of the Economic Reconstruction and Recovery Plan (ERRP) aimed at stimulating economic growth and job creation as announced by President Cyril Ramaphosa in October 2020.
“The projects within the Infrastructure Investment Plan were gazetted as Strategic Integrated Projects (SIPs), in line with the Infrastructure Development Act, in July 2020 enabling them to follow an expedited path to ensure implementation.
“The projects have been gazetted as SIPs to contribute to economic growth by reviving the construction sector and creating much needed jobs for people.
“The Infrastructure Investment Plan was highlighted as the ‘flywheel to economic growth’ by the President and contains 62 projects across the country in various sectors which are at various stages,” she said.