Infrastructure & Utilities
R24bn allocated to Infrastructure Fund blended finance projects
R24bn has been allocated to the Infrastructure Fund for blended finance projects that will, among other things, include student accommodation and social housing.
Source: albertus engbers © 123RF.com
This is according to public works and infrastructure minister Patricia de Lille who held a media briefing recently to update journalists on progress made over the past year on various projects in the Infrastructure Investment Plan.
The Infrastructure Fund was announced in 2019 as a ring-fenced division of the Development Bank of Southern Africa (DBSA) and operationalised in 2020 with a commitment of R100bn from government over a 10-year period.
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 R3bn was considered. The BFI approved amount was R900m 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 R1.1bn. The Budget Facility for Infrastructure approved an amount of R304.5m over the next two financial years from the Infrastructure Fund.
- Lepelle Northern Water with a total project cost of R4.5bn. The Budget Facility for Infrastructure approved an amount of R1.4bn over the next three financial years from the Infrastructure Fund.