Finance minister Enoch Godongwana on Wednesday announced “fundamental and far-reaching” reforms to infrastructure financing and delivery.
He said the reforms were meant to optimise the infrastructure value chain to be effective and efficient, to strengthen public investment management and attract private sector participation.
The Treasury had gazetted amendments to the public-private partnership framework for public comments earlier this week. These seek to reduce the procedural complexity of undertaking public-private partnerships, create capacity to support and manage them, formulate clear rules for managing unsolicited bids, and strengthen the governance of fiscal risk, he said.
“We are reviewing institutional arrangements and governance for catalytic infrastructure. The intention is to create clear mechanisms for accountability, co-operation and co-ordination,” Godongwana said.
“We are also consolidating similar functions to reduce duplication and inefficiencies. The intention is to fast-track delivery, particularly of blended finance arrangements.”
The minister said the Treasury was introducing several new financing instruments, such as infrastructure bonds and concessional loans. “As part of this, a flow-through tax vehicle for specific infrastructure projects similar to trusts and other investment vehicles is being considered.”
A new funding window for proposals under the new dispensation of financing instruments would be opened to public institutions shortly. Godongwana said the reforms would benefit network sectors, social infrastructure, public-private partnerships and blended finance projects.
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