South Africa’s government plans to introduce a financing facility for social infrastructure, which will also clarify the requirements for public-private and public-public partnerships.
According to the Medium Term Budget Policy Statement (MTBPS),the facility would fund large infrastructure projects, such as hospitals, that require national budget allocations. The facility would focus onprojects with good social or economic returns, backed by independent project appraisals.
It would include:
- A technical support unit, with expertise to appraise, recommend and monitor large projects.
- A financing facility that allocates resources to projects on development finance principles.
- The involvement of concessional lenders to provide funds and technical assistance.
The facility would be on government’s balance sheet and fully integrated into the national budget system.
