Question NW223 to the Minister of Public Works and Infrastructure
07 March 2023 - NW223
Van Staden, Mr PA to ask the Minister of Public Works and Infrastructure
1)Whether, with regard to the establishment of Infrastructure South Africa in November 2019, the set target to raise an amount of $100 billion (USD) investments was achieved; if not, what is the position in this regard; if so, what are the relevant details; (2) what (a) amount was actually received by Government from international investors and (b) are the details of how the investments will be utilised?
Reply:
The Minister of Public Works and Infrastructure
The targeted $100 billion is inclusive of all investments. Infrastructure South Africa (ISA) provides oversight over the Infrastructure Fund, a blended finance fund to leverage private sector finance for public sector infrastructure investment projects and programmes. A commitment of R 100 billion capitalisation of the fund over ten (10) years was made. The blended finance vehicle is intended to catalyse $55 billion of infrastructure delivery within the country.
Projects that are potentially suited for blended financing solutions are appraised according to the ISA methodology and channelled to the Infrastructure Fund for project structuring. Of the R21 billion, R2.6 billion was approved from the 2021 Budget Facility for Infrastructure window 5, with the remainder to be sourced from project owners’ equity and a significant component from the debt capital markets. For projects and programmes considered in the 2022 Budget Facility for Infrastructure window 6 (2022), of the R39.8 billion, R19.1 billion was approved for fiscal allocation, with the remainder to be sourced from project owners’ equity and a significant component from the debt capital markets.